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Thursday 5 September 2013
Mississippi Woman Sentenced for Submitting Fraudulent Tax ReturnsRead the Press Release
Natchez, Miss - Margaret Turner, 54, of Hermanville, Mississippi, was sentenced in U.S. District Court today to 12 months and 10 days in federal prison followed by three years of supervised release for submitting fraudulent tax returns to the IRS, announced U. S. Attorney Gregory K. Davis and Gabriel Grchan, Special Agent in Charge, IRS Criminal Investigation. Turner was also ordered to pay $122,465 in restitution to the IRS.
Turner entered a guilty plea on March 08, 2012, admitting that she prepared and submitted false income tax returns which resulted in the payment of earned income tax credits to which neither she nor the filers were entitled.
Turner is the fourth person indicted, convicted and sentenced on tax fraud charges this year in the Claiborne County area. These cases represent the continuance of an increased effort to stop the victimization of the nation’s tax paying citizens. The United States Attorney’s Office in the Southern District of Mississippi has recently announced several indictments, arrests, and criminal prosecutions related to ongoing investigations of tax fraud.
“Today’s sentencing sends a clear message that those who choose to defraud our tax system will be caught and held accountable for their actions,” said U.S. Attorney Gregory K. Davis.
Gabriel Grchan, Special Agent in Charge, IRS, stated “The willful filing of false tax returns is a serious crime, punishable under federal law. Turner’s prosecution is evidence that IRS is committed to the aggressive pursuit of individuals who intentionally violate the public trust and engage in this type of criminal activity."
This case was investigated by Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorney Harold Brittain.
###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:
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Midway Woman Sentenced to 24 Months for Preparing and Filing Fraudulent Tax ReturnsRead the Press Release
TALLAHASSEE, FLORIDA– Monique Yvette Kimble, 39, of Midway, was sentenced Wednesday in federal court to 24 months in prison for preparing and filing fraudulent tax returns and for identity theft. The sentences were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Kimble was sentenced for conduct that occurred from February through April 2009, when she acted as a certified tax preparer for a Tallahassee-area tax preparation business. On at least nine occasions, Kimble prepared tax returns seeking fraudulent credits, which resulted in improper tax refunds. In addition, on at least two occasions, Kimble filed tax returns using stolen identity information from persons who did not authorize, nor realize, that Kimble had filed returns seeking tax refunds on their behalf.
“These tax preparers committing fraud and stealing identities have hit Florida like a tsunami,” said U.S. Attorney Marsh. “We are investigating, indicting, and prosecuting these cases at a steadily increasing pace. Our law enforcement partners at every level are on top of the schemes and the technology, and we could not do these cases without their efforts.” In particular, Ms. Marsh praised the work of the Internal Revenue Service, whose investigation led to the convictions in the case.
U.S. District Judge Robert Hinkle ran the sentences for each of the thirteen counts of conviction concurrent to one another for a total of 24 months imprisonment, and a total of five years of supervised release.
“This sentence should send a message to tax professionals about their duty to prepare accurate and truthful tax returns and the consequences of not doing so” stated James D. Robnett, Special Agent in Charge of IRS Criminal Investigation. Robnett added “IRS will continue to aggressively investigate unscrupulous tax professionals and hold them accountable in order to insure the integrity of the income tax system.”
This case was investigated by the Internal Revenue Service, and was prosecuted by Assistant U.S. Attorney Eric K. Mountin.
Miami Resident Sentenced for Taking Migratory Birds and Unlawful Possession of A FirearmRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and David Pharo, Resident Agent in Charge, U.S. Fish and Wildlife Service (USFWS), Office of Law Enforcement (OLE), announce that on September 4, 2013, Jose Valladares, 56, of Miami, pled guilty to charges of taking migratory birds and unlawful possession of a firearm. Valladares was sentenced immediately following his guilty plea by U.S. District Judge Kathleen M. Williams to one year probation and a $125 special assessment.
According to Court documents and statements at the hearing, Valladares established a bird trap on his property which captured a turkey vulture (Cathartes aura), a species of migratory bird protected pursuant to the convention between the United States of America and the then existing Union of Soviet Socialist Republics concerning the conservation of migratory birds and their environment. The case also involved the capture and possession of three painted buntings (Passerina ciris), and four indigo buntings (Passerina cyanea).
During the operation to recover the painted and indigo buntings, Valladares was found to be in possession of a firearm and ammunition. Valladares was prohibited from possessing the same pursuant to a court order issued on or about January 22, 2004, by the Eleventh Judicial Circuit in Miami-Dade County.
Mr. Ferrer commended the investigative efforts of USFWS-OLE and ATF. This case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Antonia Barnes.
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.
Mescalero Apache Man Pleads Guilty to Federal Sexual Assault ChargeRead the Press Release
ALBUQUERQUE – James Darius Caje, 21, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., pleaded guilty yesterday afternoon to a sexual assault charge under a plea agreement with the U.S. Attorney’s Office.
Caje was arrested in March 2013, on a criminal complaint alleging that he sexually assaulted a Mescalero Apache woman on July 27, 2012, in a location within the Mescalero Apache Reservation. He subsequently was indicted on that same charge.
During yesterday’s proceedings, Caje pleaded guilty to the indictment and admitted engaging in a sexual act with the victim who was lapsing in and out of consciousness and was thus incapable of appraising the nature of the conduct. Caje further admitted that he committed this crime on July 27, 2012, on the Mescalero Apache Reservation.
Caje is in federal custody and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Caje will be sentenced to a term of 51 months to 63 months in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Maverick County Commissioner Cesar Flores Pleads GuiltyRead the Press Release
In Del Rio, Texas this morning, Maverick County Precinct Four Commissioner Cesar Flores, age 46 of Eagle Pass, Texas, pleaded guilty to his role in a bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez. This is the third Maverick County Commissioner to plead guilty as part of this investigation.
Flores pleaded guilty to count one of his indictment, which charged him with receiving bribes. Flores admitted that he agreed to be influenced and rewarded for using his position to ensure that certain contractors were awarded construction contracts in Maverick County Precinct 4 in 2010 and in 2011—those contracts involved in excess of $5,000.
Flores faces up to ten years in federal prison, a $250,000 fine, three years of supervised release, and, pursuant to his plea agreement, he will pay restitution as ordered by the Court at sentencing. Flores will appear before Judge Alia Moses for sentencing at a date to be determined.
Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.MS-13 Gang Member Pleads Guilty to Charges of Transporting A Minor to Engage in ProstitutionRead the Press Release
ALEXANDRIA, Va. –Rene Ulises Quinteros Gaitan, 24, of Gaithersburg, Maryland, pled guilty today to charges of transporting a minor to engage in prostitution.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge, United States Department of Homeland Security, Homeland Security Investigations (HSI), Washington, D.C., made the announcement after Gaitan’s hearing before United States District Court Judge Gerald Bruce Lee.
According to court documents and court proceedings today, during late July, 2011, Gaitan prostituted a 16-year-old juvenile female, first in Frederick, Md. and then in Richmond, Va. Gaitan transported the juvenile victim back to Maryland, this time to Prince George’s County, where he again prostituted her.
Gaitan pled guilty to one count of transporting a minor in interstate commerce to engage in prostitution and faces a mandatory minimum sentence of 10 years and maximum sentence of life in prison at sentencing, which is scheduled for November 22, 2013.
The investigation was conducted by Homeland Security Investigations. Assistant United States Attorney Mary K. Daly, and Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, are prosecuting the case on behalf of the United States, with assistance from William E. Nolan, a Trial Attorney with the Human Trafficking Prosecution Unit of the Justice Department’s Civil Rights Division.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.Lower Brule Woman Pleads Guilty to Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that Monica Quilt, age 41, of Lower Brule, South Dakota, appeared before U.S. Magistrate Judge Mark A. Moreno on September 4, 2013, and pled guilty to the Information that charged her with Assault by Striking, Beating and Wounding.
The maximum penalty upon conviction is 1 year of imprisonment and/or a $100,000 fine, 1 year of supervised release, an additional year of supervised release upon revocation, and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident between May 8, 2013, and May 9, 2013, wherein Quilt and the victim, who were involved in an intimate, dating relationship, had both been out drinking, but separately. During the morning hours of May 9th, Quilt went to her home and the victim arrived later. A physical assault occurred between Quilt and the victim, which resulted in the victim suffering injuries to his neck and face that required medical treatment.
The investigation was conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Quilt was released on bond pending sentencing which has been set for November 8, 2013.Leicester Man Sentenced to 24 Years for Producing Child PornographyRead the Press Release
BOSTON – A Leicester man was sentenced today for various child pornography crimes.
Jason Clark, 31, was sentenced by U.S. District Judge Richard G. Stearns to 24 years in prison to be followed by 10 years of supervised release. In May 2013, Clark pleaded guilty to five counts of sexual exploitation of a child, distribution of child pornography, transportation of child pornography and possession of child pornography.Between October 2010 and October 2011, Clark used a five-year-old minor to produce child pornography and disseminated child pornography on the internet by trading it with other collectors and by posting it to websites.
Clark took pictures of his own sexual abuse of the five-year old girl that he gained access to because he was close friends with the child’s mother and the mother’s fiancé. Clark would stay overnight at their house and sleep in a room adjacent to the child’s room. He would also babysit the child, and lead the parents to believe that he was a caring friend. Clark, in e-mails and in a message he posted on the internet, expressed a desire to sexually abuse other young children, including a toddler. While addressing the Court, Clark admitted that he betrayed the trust of the child who looked up to him, and his best friend, the mother’s fiancé.
In addition, Clark cooperated with the government which resulted in the conviction of Anthony Hanifan, in Florida State Court on numerous charges including sexual battery of a two-year old girl. Hanafan faces a mandatory minimum sentence of life in prison in Florida.
“This case shows how the sexual abuse of children is often driven by the desire to feed the market for online child pornography,” said United States Attorney Carmen M. Ortiz. “People who produce, solicit, trade, and collect child pornography can cause a lifetime of pain for children and those closest to the young victims.”U.S. Attorney Ortiz; Mark G. Mastroianni, Hampden County District Attorney; and Colonel Timothy B. Alben, Superintendent of the Massachusetts State Police made the announcement today. The case was prosecuted by Assistant United States Attorney Alex J. Grant of Ortiz’s Springfield Branch Unit.
Leader of ‘Ghost Riders’ Motorcycle Gang Pleads Guilty to Illegal Weapons Possession ChargesRead the Press Release
A leader of the Ghost Riders motorcycle gang in Pierce County pleaded guilty today in U.S. District Court in Tacoma to possession of an unregistered short-barreled shotgun and being a felon in possession of explosives, announced U.S. Attorney Jenny A. Durkan. KARL TWILLEAGER, a/k/a “King Karl”, 66, of Spanaway, Washington, has been in custody since his property was searched on June 13, 2013. When sentenced by U.S. District Judge Ronald B. Leighton on December 6, 2013, prosecutors and the defense will jointly recommend a five year prison term. However, Judge Leighton may impose any sentence up to the ten year maximum allowed by law.
According to the plea agreement signed today, on June 11, 2013, ATF agents searched a Spanaway storage locker belonging to TWILLEAGER and found more than two sticks of Emulsion explosives and four blasting caps. They also recovered six firearms, including three rifles, two shotguns, and a handgun, as well as additional ammunition and empty ammunition magazines. Two days later they searched TWILLEAGER’s home and a shed on the property that was used as the Ghost Rider’s clubhouse. They seized multiple rounds of different calibers of ammunition, and six more firearms, including four handguns, a rifle, and a J.C. Higgins model 20 12-gauge short-barreled shotgun, with a barrel length of approximately 15.5 inches with no serial number. TWILLEAGER was convicted of second degree murder in Grant County, Washington in 1994 and is therefore prohibited from possessing firearms and explosives.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Pierce County Sheriff’s Office Bomb Squad, the Washington State Patrol SWAT Team, and the South Sound Gang Task Force, and was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Kirtland, N.M., Man Sentenced to Ten Years in Federal Prison for Discharging a Firearm During a Crime of Violence Defendant Prosecuted as Part of Federal Initiative to Address the Epidemic Incidence of Violence Against Native WomenRead the Press Release
ALBUQUERQUE – Harold Pete, 29, an enrolled member of the Navajo Nation who resides in Kirtland, N.M., was sentenced this afternoon to ten years in federal prison followed by three years of supervised release for discharging a firearm during a crime of violence. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and John Billison, Director of the Navajo Nation Division of Public Safety.
Pete was arrested on Jan. 1, 2013, and was charged in a criminal complaint with assault with a dangerous weapon, use of a firearm during and in relation to a crime of violence, and aggravated burglary. He has been in federal custody since his arrest.
In April 2013, Pete entered a guilty plea to a criminal information charging him with the use and discharge of a firearm during and in relation to an assault with a dangerous weapon. In his plea agreement, Pete admitted discharging a firearm during an assault on Dec. 30, 2012. Pete admitted firing a shotgun at the door of his estranged wife’s residence in Ojo Amarillo, N.M., which is in the Navajo Indian Reservation, and discharging the shotgun again after he was inside the residence. At the time, two women, including his estranged wife, and four minor children were in the residence.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Special Assistant U.S. Attorney David M. Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Keller Woman Sentenced to Probation for Aiding and Abetting the Violation of A Lawful Court OrderRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Lisa M. Gabriel, age 35, of Keller, Washington, was sentenced on Wednesday, September 4, 2013 after having previously pleaded guilty on June 5, 2013 to one count of Aiding and Abetting the Violation of a Lawful Court Order. United States District Court Judge Lonnie Suko sentenced Gabriel to a one year term of probation. Judge Suko also prohibited Gabriel from applying for jobs in law enforcement or corrections for one year.
According to information disclosed during the court proceedings, Gabriel was employed as a Corrections Officer at the Colville Tribal Corrections Center in Nespelem, Washington. On March 14, 2011, Gabriel allowed an inmate, who was charged with domestic violence, to call the victim of that domestic violence on Gabriel's cell phone, even though the Colville Tribal Court had issued a no-contact order in that case. On April 20, 2011, Gabriel, using a telephone in the Corrections Center, called the same victim and handed the phone to the inmate, again violating the no-contact order. During both telephone calls, the inmate attempted to coerce the victim into not testifying in his domestic violence cases. The April 20, 2011 telephone call was being audio and video recorded, but Gabriel turned off the audio recording device part-way into that call.
Michael C. Ormsby stated: "The justice system in this country, be it in Federal, state, or tribal court, only functions if those entrusted to enforce the law do so diligently. The United States Attorney's Office for the Eastern District of Washington will prosecute law enforcement and corrections officers that violate that trust when such violations occur within Federal jurisdiction, including the Indian reservations in the District.
This investigation was conducted by FBI and the Colville Tribal Police Department. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CR-12-00242-LRS
Jury Convicts Bryan Woman in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Yolanda Nowlin, 42, has been convicted of conspiracy to commit health care fraud, four counts of health care fraud, conspiracy to commit kickback fraud and aiding and abetting Social Security fraud, United States Attorney Kenneth Magidson announced today. The verdicts were returned late yesterday afternoon following seven days of trial and less than three hours of deliberations.
Nowlin, of Bryan, ran two durable medical equipment companies - Yellabone Medic Care Express Equipment Supply Company and Yellabone Medical Equipment Inc. Nowlin was arrested in December 2012 along with co-defendant Carla Parnell, 50, also from Bryan. Parnell pleaded guilty earlier this year to Social Security fraud and testified against Nowlin at the jury trial.
The evidence at trial showed that between July 2003 and December 2009, Nowlin engaged in a scheme to defraud Medicare and Medicaid. Nowlin submitted claims to Medicare and Medicaid for durable medical equipment (DME) and incontinence supplies that were not delivered, not wanted and not needed by Medicare or Medicaid beneficiaries and were often the result of illegal kickbacks. During the alleged conspiracy, Nowlin submitted approximately $3,391,771.90 in claims to Medicare and Medicaid and received $1,108,316.82 for those claims. Approximately $750,000 was identified as fraudulently paid.
The evidence at trial also showed that Nowlin paid kickbacks to a large number of recruiters over the course of the scheme in return for the referral of beneficiaries to Yellabone.
Nowlin was additionally convicted of aiding and abetting the theft of government money from the Social Security administration. Nowlin and Parnell concealed Parnell’s employment with Yellabone in order to continue Parnell’s receiving Social Security disability benefits to which she was not entitled.
Nowlin faces up to 10 years for aiding and abetting Social Security fraud, up to 10 years for each count of health care fraud, up to 10 years for conspiracy to commit health care fraud and a maximum of five years for conspiracy to commit kickback fraud. She could also face the possibility of up to a $250,000 fine.
Nowlin’s sentencing hearing is set for Dec. 13, 2013, while Parnell is scheduled to be sentenced Dec. 20, 2013. Both women were permitted to remain on bond pending their respective hearings.
The United States is additionally seeking forfeiture of approximately $750,000 to be paid as restitution to Medicare and Medicaid.
The case was the result of a joint investigation conducted by agents from Texas Attorney General’s Office – Medicaid Fraud Control Unit and the Department of Health and Human Services-Office of the Inspector General, Office of Investigations. Special Assistant United States Attorneys Adrienne E. Frazior and Suzanne Bradley prosecuted the case.
Joplin Man Sentenced for Disaster Fraud in Failed Attempt to Get Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for disaster fraud and making false statements to FEMA in a failed attempt to get federal disaster benefits following the May 22, 2011 tornado.
Scott Bradley Olsen, 58, of Joplin, was sentenced by U.S. District Judge Dean Whipple to 18 months in federal prison without parole, followed by two years of supervised release.
Olsen was convicted of two counts of a federal indictment in a trial that concluded on April 23, 2013.
Olsen originally filed for disaster assistance on May 26, 2011, claiming a Joplin residence was his secondary residence where he stored property that was damaged in the tornado, but FEMA found him ineligible for disaster assistance. After being denied, Olsen twice submitted documents to FEMA in an attempt to prove that the property was his primary residence. Olsen was again denied assistance on July 27, 2011.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Department of Homeland Security-Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Jewelry Store Robber Sentenced to 11 Years’ ImprisonmentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge James M. Munley sentenced Huby Ramkissoon, age 38, of New York, New York, to 11 years’ imprisonment for the May 14, 2008 robbery of Dunay Jewelers, Wilkes-Barre, Pennsylvania.
According to United States Attorney Peter J. Smith, the sentence imposed by Judge Munley is the result of an investigation into a 2008 scheme to rob Luzerne County jewelry stores. To date, four other individuals have been charged in connection with that scheme in either federal or state court. Devon Nash and Jerry Smith were charged and convicted in federal court in connection with the May 5, 2008 robbery of the Steve Hydock Diamonds in Kingston, Pennsylvania. Jerry Smith and Jason Soto were charged and convicted in connection with the May 14, 2008 robbery of Dunay Jewelers, a jewelry store located in Wilkes-Barre, Pennsylvania. Smith was convicted in federal court, and Soto was convicted in state court. Finally, Kirk Robinson is presently pending trial on charges of conspiracy to use firearms in connection with both robberies.
Huby Ramkissoon was originally charged by a Complaint in 2008 by the Wilkes-Barre Police for the robbery. At the time the Complaint was filed in 2008, Ramkissoon was a fugitive. On October 16, 2012, a federal grand jury in Scranton returned an Indictment against Ramkissoon charging him with the robbery scheme.
On December 18, 2012, the Federal Bureau of Investigation located and arrested Ramkissoon in New York City.
On May 30, 2013, Ramkissoon pleaded guilty to two counts associated with the Dunay Jewelers robbery; interference with commerce by robbery; and using and brandishing a firearm in furtherance of the robbery.
In addition to the 11-year term of imprisonment, Judge Munley ordered that Ramkissoon be placed on supervised release for a period of three years following the service of his prison sentence. Judge Munley also ordered that Ramkissoon pay restitution in the amount of $89,285 representing the value of money and jewelry stolen during the Dunay Jewelers robbery.
The case was investigated by the FBI, the Kingston Police Department, and the Wilkes-Barre Police Department. Prosecution was assigned to Assistant United States Attorney John C. Gurganus.
Jefferson County Woman Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 38-year-old Beaumont woman has been sentenced to federal prison for bank fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jeanie Marie Smith Henges pleaded guilty on Nov. 20, 2012 to seven counts of bank fraud and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, in March 2011, April 2011, April 2010, May 2010, March 2010, February 2010, and November 2008, Henges devised a scheme to fraudulently obtained funds from the following federally insured financial institutions: Anahuac National Bank, Eastex Federal Credit Union (FCU), Community Bank, MidSouth Bank, Education First FCU, Mobile Oil FCU and Wachovia Bank. Henges executed the scheme by presenting one or more fraudulent checks for deposit. According to the seven-count Information, the intended losses amount to approximately $72,419, and the actual losses amount to approximately $32,445.
Henges was also fined $4,000. A hearing has been set for Sep. 21, 2013 to determine restitution.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Husband and Wife, Two Others Convicted at Trial for $3 Million South Jersey Time Share Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A federal jury convicted a husband and wife and two others today for conspiring in a $3 million conspiracy to scam customers by offering phony consulting services to owners of timeshares through the New Jersey-based Vacation Ownership Group LLC, U.S. Attorney Paul J. Fishman announced.
The jury returned the verdict after two days of deliberation following a seven-week trial before U.S. District Judge Noel L. Hillman in Camden federal court.
Four defendants – Adam Lacerda, 28, and Ashley Lacerda, 32, both of Egg Harbor Township, N.J.; Ian Resnick, 37, of Abescon, N.J.; and Genevieve Manzoni, 46, of Lake Worth, Fla. – were convicted of one count of conspiracy to commit mail and wire fraud. Adam Lacerda was also convicted of nine counts of mail fraud and three counts of wire fraud. Ashley Lacerda was convicted of one count of mail fraud and four counts of wire fraud. Resnick was convicted of three counts of mail fraud and three counts of wire fraud. Manzoni was also convicted of one count of mail fraud.
A fifth defendant, Joseph Diventi, 32, of Somers Point, N.J., was acquitted of the two counts with which he was charged.
According to documents filed in this case and the evidence presented at trial:The defendants schemed to defraud hundreds of timeshare owners by offering fraudulent consulting services through their company, the Vacation Ownership Group (now VO Financial). Adam Lacerda, the company founder, president and chief executive officer, devised the company’s fraudulent sales pitches. He directed his sales force to tell numerous lies to VO customers, including that VO worked with the banks holding the customers’ loans, would use money sent by customers to pay off the customers’ loans on their timeshares, and could cancel customers’ timeshares with money back. His wife Ashley Lacerda, the company vice president and chief operating officer, sent fraudulent contracts to customers and managed the office.
Resnick, a convicted bank robber, started as a salesman giving the fraudulent sales pitch but became Adam Lacerda’s enforcer, with the title “director of compliance.”
Genevieve Manzoni was a top VO sales representative who falsely told one victim she worked with a bank, another victim that she worked with a timeshare developer.
The 14 victims who testified at trial – including business executives, veterans, senior citizens, a lawyer and a professor – were defrauded out of a total of tens of thousands of dollars by the defendants’ sophisticated scheme.
Each count of which the defendants were convicted carries a maximum potential penalty of 20 years in prison $250,000 fine, or twice the gain or loss caused by the offense. Sentencing before Judge Hillman is scheduled for Dec. 12, 2013 for Resnick and Manzoni and Dec. 13, 2013, for the Lacerdas.
To date, 13 other members of the VO Group have pleaded guilty to conspiring to commit mail fraud and wire fraud in connection with the scheme.
U.S. Attorney Fishman credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Assistant Special Agent in Charge Michael Mikulka, Newark Field Office, New York Region, for the investigation. He also thanked the N.J. Department of Labor and Workforce Development for its assistance.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel:
Adam Lacerda: Mark E. Cedrone Esq., Philadelphia
Ashley Lacerda: Charles Nugent Esq., Marlton, N.J.
Ian Resnick: Michael E. Reilly Esq., Philadelphia
Genevieve Manzoni: Ralph A. Jacobs Esq., Philadelphia
Joseph Diventi: Brian Stephen O'Malley, Haddon Heights, N.J.South Jersey Mortgage Fraud Fact Sheet Final
Houma Man, Arlen B. Cenac, Jr., Sentenced for Making False Statements to the Federal Elections CommissionRead the Press Release
ARLEN B. CENAC, JR., age 57, a resident of Houma, LA, was sentenced today in federal court before U.S. District Court Judge Carl J. Barbier to one year probation, a $5,000 fine and a $100 special assessment for Making False Statements to the Federal Elections Commission, announced U.S. Attorney Dana Boente and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division. CENAC had previously pleaded guilty to a one-count Bill of Information.
According to court documents, between February 16, 2008 and May 24, 2008, CENAC, who is the president and owner of Cenac Towing, submitted cashier’s checks that he purchased in the names of individuals other than himself to the campaigns of two United States Senate candidates. The money CENAC used to purchase these cashier’s checks came from personal and corporate accounts. In submitting these contributions to the campaigns CENAC, neither obtained nor sought the knowledge, permission or authority of the individuals he listed as remitters on the cashier’s checks. CENAC’s provision of the cashier’s checks caused a knowing and willful “submission of a materially false, fictitious, and fraudulent statement and representation, that is the submission by unwitting authorized campaign committees of candidates for the United States Senate to the Federal Election Commission of a report that was materially false in reporting the source and amount of contributions to the campaigns.”
The case was investigated by the Federal Bureau of Investigation, the Criminal Division’s Public Integrity Section, and the United States Attorney’s Office.
The case was prosecuted by Department of Justice Trial Attorney Tracee Plowell and Assistant U. S. Attorney Dan Friel.
Hogsett Announces Federal Indictment of Methamphetamine Scheme Involving “smurfing”Read the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Dawn Davis, age 44, of Mount Vernon, has been charged by federal indictment with multiple counts related to an alleged methamphetamine conspiracy across the tristate area. Hogsett said these charges come as the U.S. Attorney’s Office continues efforts to combat the manufacture and sale of methamphetamine in southwestern Indiana.
“Methamphetamine is a dangerous drug that destroys lives and has torn apart too many families across our state,” Hogsett said. “By targeting this deadly trade in all of its forms, from one pot labs to large-scale cartel activities, federal law enforcement is committed to ending this cycle of tragedy and violence.”
According to the indictment, Davis acted as an organizer and leader of a multi-state methamphetamine manufacturing and distribution conspiracy that operated in Indiana, Kentucky and Illinois. Davis allegedly enlisted individuals to obtain cold medication for her, a scheme referred to as “smurfing.” She would then allegedly use these materials to produce quantities of methamphetamine. The indictment charges that Davis would direct and assist these individuals in their “smurfing,” trading cash and/or manufactured methamphetamine for their cooperation.
The indictment describes the process by which the methamphetamine was produced, which involves pseudoephedrine, lithium extracted from batteries, ammonia, camping fuel, and drain cleaner. These highly volatile chemicals were then combined within a plastic soda bottle in what is often referred to as a “one pot” methamphetamine lab. This is an extremely dangerous production technique, creating substantial risks to the health and safety of people and property.
Court documents indicate that a search of the defendant’s residence allegedly revealed a number of items associated with the production of methamphetamine, along with two handguns, three shotguns, and various firearms ammunition.
According to Assistant U.S. Attorney Matthew P. Brookman, who is prosecuting the case for the government, Davis was charged with one count of conspiring to produce and distribute methamphetamine, one count of distributing methamphetamine, and one count of maintaining what prosecutors describe as a “drug involved premises” at a residence on Graddy Road in Mount Vernon. If convicted, she faces up to life in federal prison.
This investigation was the result of a collaborative investigation involving the
Information, indictments, and criminal complaints are only a charge and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Harrisburg Man Convicted for the Illegal Possession of A FirearmRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that following a two-day trial before Senior U.S. District Court Judge William W. Caldwell in Harrisburg, Jerome Mario Britton, age 34, was convicted late Wednesday on one-count of possession of a firearm by a convicted felon.
According to United States Attorney Peter J. Smith, Britton was serving a parole term on state charges when state Parole agents did a parole check/search after Britton’s brother, Dion Britton, was murdered on December 15, 2012. Parole agents entered Britton’s home on December 17, 2012. The initial search revealed contraband, including ammunition, drugs and drug paraphernalia. Parole agents contacted the Harrisburg Police Department and a search warrant for the residence was obtained. As a result of the executed search warrant, two firearms were recovered.
Britton was indicted in January 2013 on two counts of possessing a firearm as a convicted felon, one count of possession a stolen firearm and one count of possession with the intent to distribute a controlled substance, crack cocaine. After deliberating two hours, the jury convicted Britton of one count of possession of a firearm by a convicted felon and found him not guilty of the remaining charges.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Bureau. This case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Britton faces a mandatory minimum of 15 years’ imprisonment and a statutory maximum of life imprisonment for the firearms offense. A sentencing date has not been scheduled.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Gretna Man, Keith Joseph Mcgee, Charged with the Sexual Exploitation of ChildrenRead the Press Release
KEITH JOSEPH MCGEE, age 29, of Gretna, Louisiana, was charged today in a three-count Indictment by a federal grand jury for crimes involving the sexual exploitation of children, announced United States Attorney Dana J. Boente. MCGEE was charged with one count of attempting to coerce a minor to produce images of sexually explicit conduct, one count of receiving sexually explicit images of a 14-year-old boy, and one count of receiving sexually explicit images from a 15-year old boy.
MCGEE faces a mandatory minimum term of imprisonment of 15 years and a maximum penalty of 70 years, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
United States Attorney Boente 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 brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case is being investigated by agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorneys Jordan Ginsberg.
(Download Indictment )
Greater Harrison Drug Task Force Investigations Lead to Federal IndictmentsRead the Press Release
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(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II, announced that investigations by the Greater Harrison Drug & Violent Crime Task Force have led to federal indictments being returned this week in Clarksburg.
LEROY ROUSSEAU a/k/a “BLACK,” of Clarksburg and formerly of Washington, D.C. was charged with four counts of “Distribution of Crack Cocaine within 1,000 Feet of the Clarksburg City Park Playground,” one count of “Distribution of Crack Cocaine within 1,000
Feet of Pierpont Community and Technical College,” one count of “Possession with Intent to Distribute Heroin within 1,000 Feet of the Clarksburg City Park Playground,” one count of “Employment and Use of a Person Under 18 Years of Age in Drug Operations,” one count of “Possession with Intent to Distribute Crack Cocaine,” and, one count of “Felon in Possession of a Firearm.”The U.S. Attorney’s Office is seeking to forfeit a Haskell .45 caliber pistol as property used or intended to be used to commit the charged offenses.
ROUSSEAU faces up to forty years in prison on the sales and possession with intent to distribute charges that occurred near a protected location; twenty years imprisonment on the possession with intent to distribute charge; and, 10 years imprisonment on the felon in possession charge.
In a separate case, JUSTIN ZACHARY ROSA a/k/a “PEE WEE,” age 19 and NICHOLE NIKKI PIERCE, age 21, of Clarksburg were named in a nine-count Indictment charging them with“Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.”
ROSA faces a total of nine counts and PIERCE faces a total of four counts.
In addition to the conspiracy charge, other charges include “Distribution and Possession with Intent to Distribute Heroin”, “Distribution and Possession with Intent to Distribute Heroin within 1,000 Feet of Nutter Fort Elementary School,” “Possession of a Firearm in Furtherance of Drug Trafficking Offenses,” “Felon in Possession of a Firearm;” and “Uttering Counterfeit Obligations.”
The U.S. Attorney’s Office is seeking to forfeit $4,822.46 in United States currency which constitutes proceeds obtained from the illegal activity as well as a cellular phone and a Smith and Wesson revolver.
ROSA and PIERCE each face up to twenty years on the conspiracy, distribution and possession with intent to distribute charges; up to forty years in prison on the sales and possession that occurred near a protected location; five years to life on the possession of a firearm to further the drug activity; and, ten years on the felon in possession charge.
The ROUSSEAU, ROSA, and PIERCE cases were investigated by the Greater Harrison County Drug and Violent Crime Task Force consists of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service; and, the United States Marshals Service. The cases will be prosecuted by Criminal Chief Shawn A. Morgan, and the United States Secret Service also assisted with the ROSA and PIERCE investigations.
A California man was also indicted by the grand jury this week. CHARLES EVERETTE LEVINE, age 36, of Oakland, California, was named in a three-count Indictment charging him with two counts of “Bank Fraud” and one count of “Access Device Fraud.” The U.S. Attorney’s Office is seeking to forfeit a $25,000 money judgment which constitutes proceeds obtained from the illegal activity.
LEVINE faces up to thirty years on the bank fraud charges and up to ten years on the access device fraud charge. The case will be prosecuted by Assistant United States Attorney Andrew R. Cogar and was investigated by the United States Secret Service.
The charges contained in the indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Fourth Georgia Corections Officer Pleads Guilty in Inmate Beating CaseRead the Press Release
Today, the Civil Rights Division of the Justice Department and the U.S. Attorney for the Middle District of Georgia announced that Kadarius Thomas, a former member of the Correctional Emergency Response Team (CERT) and a former supervisor at Macon State Prison (MSP), in Oglethorpe, Ga., pleaded guilty to obstruction of justice. Thomas is the fourth former MSP officer to enter a guilty plea in connection with an ongoing federal investigation into staff assaults of inmates at the prison.
In connection with his plea, Thomas admitted that he and other CERT members escorted an inmate to the gym, where CERT members hit the handcuffed inmate in retaliation for his prior assault on an MSP supervisor. Thomas saw that the inmate had been injured by the unjustified use of force by CERT members. Thomas knew from past experience that the CERT members would not report the force used on the inmate. In keeping with directions from a supervisor, Thomas knowingly omitted from his report any reference to the unjustified force used on, or injuries inflicted upon, the inmate. Thomas submitted his false MSP witness statement even though he understood it was inaccurate, incomplete, and untruthful.
Thomas, 26, from Americus, Ga., faces a maximum penalty of 20 years in prison.“Mr. Thomas, by his statements, attempted to conceal the CERT team’s practice of using force to punish an inmate they swore an oath to protect,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Such actions have no place in our corrections system and the Department of Justice will continue to vigorously prosecute those who try to cover up such crimes.”
Michael J. Moore, the U.S. Attorney for the Middle District of Georgia, stated: “Today’s guilty plea is another example of the zero tolerance the Department of Justice has for correctional officers who use their position to try to cover up official misconduct.”
This case is being investigated by the FBI and is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Tona Boyd of the Civil Rights Division of the Department of Justice, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia and the support of the Georgia Bureau of Investigation.
Fourteen Area People Charged with First-Degree Felony Fraud for Stealing Unemployment BenefitsDefendants Submitted Claims Even Though They Were WorkingRead the Press Release
WASHINGTON – Fourteen people from the Washington, D.C. metropolitan area have been charged separately with fraudulently obtaining thousands of dollars each in unemployment benefits from the District of Columbia Department of Employment Services. All told, the defendants are alleged to have generated more than $250,000 in fraudulent benefits.
The charges were announced today by U.S. Attorney Ronald C. Machen Jr., Bill Jones, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Washington Regional Office of Labor Racketeering and Fraud Investigations, and Charles J. Willoughby, Inspector General for the District of Columbia.
The defendants, who were arrested today, are charged in the Superior Court of the District of Columbia with first-degree felony fraud. The charge carries a statutory maximum of 10 years in prison and financial penalties.
Each defendant is accused of submitting fraudulent claims for unemployment compensation to the D.C. Department of Employment Services. In fact, according to the charging documents, they were not entitled to the benefits because they were employed. The amounts they received ranged from $13,343 to $23,220, the charging documents stated.
“Unemployment benefits provide basic assistance to people who have fallen on hard times while they search for new work,” said U.S. Attorney Machen. “Cheaters who lie to obtain those benefits undermine our ability to help those who are truly in need. The arrests and charges announced today demonstrate our resolve to protect the taxpayer from abuse of critical public programs.”
“Today’s numerous arrests highlight the Office of Inspector General's commitment to safeguarding the Department of Labor's Unemployment Insurance Programs. We will continue to work with our law enforcement partners to investigate these types of alleged schemes,” said Special Agent in Charge Jones.
“I am proud of the role that the District of Columbia Office of the Inspector General has played and continues to play in conjunction with its law enforcement partners in the protection of the District’s fisc as well as in the maintenance of the integrity of District operations,” stated Inspector General Willoughby.
Those charged include: Charlene Adams, 48, of Stafford, Va.; Jeffrey Barton, 46, of Washington, D.C.; Joyce Garnes, 63, of Hyattsville, Md.; Crystal Hamlin, 41, of Washington, D.C.; Alhagi Jabbie, 36, of Silver Spring, Md.; Shaunte Kent, 31, of Middle River, Md.; Laurence Liggins, 46, of Washington, D.C.; Karentina McCoy, 39, of Suitland, Md.; Sean Pettus, 44, of Washington, D.C. ; Donna Queen, 35, of Washington, D.C.; Joseph Sackie, 53, of Silver Spring, Md.; Cherylene Smith, 54, of Suitland, Md.; Erica Smith, 44, of Silver Spring, Md., and Anthony White, 48, of Washington, D.C.
The fraudulent claims covered various time periods, depending on the defendant. Overall, the time-frame includes benefits sought from 2007 through 2012. The amount of fraudulent unemployment benefits alleged in the charging documents varied among defendants:
Adams: $17,214
Barton: $18,000
Garnes: $19,147
Hamlin: $15,825
Jabbie: $17,760
Kent: $19,752
Liggins: $13,343
McCoy: $23,220
Pettus: $20,861
Queen: $18,203
Sackie: $16,259
Cherylene Smith: $17,664
Erica Smith: $18,052
White: $17,899The filing of a criminal charge is merely an allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The arrests followed an investigation by the U.S. Department of Labor’s Office of Inspector General and the District of Columbia Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Stephanie G. Miller of the U.S. Attorney’s Office for the District of Columbia.
13-305Fourteen Area People Charged with First-Degree Felony Fraud for Stealing Unemployment BenefitsDefendants Submitted Claims Even Though They Were WorkingRead the Press Release
WASHINGTON – Fourteen people from the Washington, D.C. metropolitan area have been charged separately with fraudulently obtaining thousands of dollars each in unemployment benefits from the District of Columbia Department of Employment Services. All told, the defendants are alleged to have generated more than $250,000 in fraudulent benefits.
The charges were announced today by U.S. Attorney Ronald C. Machen Jr., Bill Jones, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Washington Regional Office of Labor Racketeering and Fraud Investigations, and Charles J. Willoughby, Inspector General for the District of Columbia.
The defendants, who were arrested today, are charged in the Superior Court of the District of Columbia with first-degree felony fraud. The charge carries a statutory maximum of 10 years in prison and financial penalties.
Each defendant is accused of submitting fraudulent claims for unemployment compensation to the D.C. Department of Employment Services. In fact, according to the charging documents, they were not entitled to the benefits because they were employed. The amounts they received ranged from $13,343 to $23,220, the charging documents stated.
“Unemployment benefits provide basic assistance to people who have fallen on hard times while they search for new work,” said U.S. Attorney Machen. “Cheaters who lie to obtain those benefits undermine our ability to help those who are truly in need. The arrests and charges announced today demonstrate our resolve to protect the taxpayer from abuse of critical public programs.”
“Today’s numerous arrests highlight the Office of Inspector General's commitment to safeguarding the Department of Labor's Unemployment Insurance Programs. We will continue to work with our law enforcement partners to investigate these types of alleged schemes,” said Special Agent in Charge Jones.
“I am proud of the role that the District of Columbia Office of the Inspector General has played and continues to play in conjunction with its law enforcement partners in the protection of the District’s fisc as well as in the maintenance of the integrity of District operations,” stated Inspector General Willoughby.
Those charged include: Charlene Adams, 48, of Stafford, Va.; Jeffrey Barton, 46, of Washington, D.C.; Joyce Garnes, 63, of Hyattsville, Md.; Crystal Hamlin, 41, of Washington, D.C.; Alhagi Jabbie, 36, of Silver Spring, Md.; Shaunte Kent, 31, of Middle River, Md.; Laurence Liggins, 46, of Washington, D.C.; Karentina McCoy, 39, of Suitland, Md.; Sean Pettus, 44, of Washington, D.C. ; Donna Queen, 35, of Washington, D.C.; Joseph Sackie, 53, of Silver Spring, Md.; Cherylene Smith, 54, of Suitland, Md.; Erica Smith, 44, of Silver Spring, Md., and Anthony White, 48, of Washington, D.C.
The fraudulent claims covered various time periods, depending on the defendant. Overall, the time-frame includes benefits sought from 2007 through 2012. The amount of fraudulent unemployment benefits alleged in the charging documents varied among defendants:
Adams: $17,214
Barton: $18,000
Garnes: $19,147
Hamlin: $15,825
Jabbie: $17,760
Kent: $19,752
Liggins: $13,343
McCoy: $23,220
Pettus: $20,861
Queen: $18,203
Sackie: $16,259
Cherylene Smith: $17,664
Erica Smith: $18,052
White: $17,899The filing of a criminal charge is merely an allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The arrests followed an investigation by the U.S. Department of Labor’s Office of Inspector General and the District of Columbia Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Stephanie G. Miller of the U.S. Attorney’s Office for the District of Columbia.
13-305Four Individuals Sentenced for Their Roles in Large, Multi-state Identity Theft RingRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, four individuals were sentenced for their roles in a large, multi-state, identity theft ring. United States District Judge Paul A. Magnuson sentenced Jerome Davis, Jr., Jemall Ronta Williams, Tierra Samantha Catrina House, and Shanell Collette Brewer each on one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
Davis, age 44, no known address, was sentenced to 50 months of imprisonment, Williams, age 38, no known address, was sentenced to 36 months of imprisonment, House, age 23, of St. Paul, was sentenced to 32 months of imprisonment, and Brewer, age 34, of Minneapolis, was sentenced to 27 months of imprisonment.
These individuals, along with more than 100 others, were involved in a conspiracy, from 2006 through December of 2011, to defraud banks, bank customers, and businesses. The co-conspirators used victim information to create counterfeit checks and false identification documents to conduct fraudulent transactions at retail establishments, where expensive merchandise was purchased and returned for cash. At banks, the conspirators posed as customers and withdrew money from victims’ bank accounts. The members of the conspiracy conducted these fraudulent transactions in Minnesota and at least 13 other states. Victim information was obtained by members of the conspiracy through multiple sources, including from individuals who stole information from their places of employment, from people employed at area banks, from those who stole information from mail, during vehicle break-ins, and through business burglaries, among other sources.
In his plea agreement, Davis admitted that from 2010 through 2011, he, too, was part of the conspiracy. For his part, Davis recruited individuals to conduct fraudulent transactions at financial institutions and retail establishments. He provided those individuals with false identification documents and counterfeit checks that he had received from other members of the conspiracy. Davis also drove individuals to retail stores, where the co-conspirators conducted fraudulent transactions in excess of $140,000.
In his plea agreement, Williams admitted that he joined the conspiracy in 2009, and from that time forward, he obtained victim information from a co-conspirator who worked at Wells Fargo. Williams also admitted providing that information to others, who then used it to create false and fictitious identification documents and counterfeit checks. In addition, Williams admitted recruiting individuals to pass those counterfeit checks at banks and retail establishments. Williams was responsible for approximately $40,000 in fraudulent transactions.
In her plea agreement, House admitted that between July and November 2008, while employed as a bank teller at the St. Paul Postal Employees Credit Union (“PCU”), she provided co-conspirators with customer information, including names, dates of birth, Social Security numbers, account numbers, and account information. The co-conspirators used that information to create false identification documents, which were then used by other co-conspirators to conduct fraudulent transactions using counterfeit checks. House admitted responsibility for approximately $22,000 in fraudulent transactions involving money stolen from the accounts of others.
In her plea agreement, Brewer admitted that in 2009, while employed at Sonus, a Plymouth-based business, she provided co-conspirators with customer information, including names, addresses, and bank account numbers. The co-conspirators used that information to create counterfeit checks and false identification documents, which were then used by other co-conspirators to conduct fraudulent transactions at various businesses. Brewer admitted responsibility for at least $18,000 in attempted fraudulent transactions and purchases through the use of counterfeit checks.
To date, 28 other members of the conspiracy have been sentenced. The remaining co-conspirator, Gordon Lamarr Moore, awaits sentencing, which has not yet been scheduled. Moore was convicted in April 2013, following a jury trial. During the trial, Moore fled from the jurisdiction. On July 8, 2013, he was arrested in at a hotel in Milwaukee, Wisconsin. Moore then attempted to flee again but was apprehended without incident.
These prosecutions resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the IRS-Criminal Investigations. The defendants were prosecuted by Assistant U.S. Attorney Karen B. Schommer and Assistant U.S. Attorney Michelle E. Jones.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.Former Wellington Resident Charged in Investment Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Drew J. Breakspear, Commissioner, Florida’s Office of Financial Regulation, announced the return of a 27-count indictment charging Joseph Paul Zada, 55, of Grosse Pointe Shores, Michigan, with mail fraud, wire fraud, interstate transportation of stolen property, and money laundering in connection with an investment fraud scheme.
According to the indictment, in order to attract investors to his fraudulent scheme, Zada projected an image of great wealth, portraying himself as a successful businessman and investor with connections to Saudi Arabian oil ventures. In this regard, Zada hosted extravagant parties, drove expensive luxury vehicles, and maintained expensive homes in Wellington, Florida and Grosse Pointe, Michigan. The indictment alleges that Zada told investors that he would invest their monies in oil related ventures. Instead of being used to invest in oil ventures, the investor monies were used to support Zada’s lavish lifestyle and to make purported returns on investments to prior investors. According to the indictment, Zada caused over twenty investors to invest over $20 million in his fraudulent scheme.
If convicted, Zada faces a statutory maximum penalty of 20 years in prison for each count of mail fraud and wire fraud, and a statutory maximum of 10 years in prison for each count of interstate transportation of stolen property and money laundering.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorney Rolando Garcia.
An indictment is only an accusation, and the defendant is presumed innocent 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.
Former Virginia Beach Probation Officer and Husband Plead Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
NORFOLK, Va. – Charles M. Kephart, 43, of Norfolk, Va., pleaded guilty today to conspiracy to distribute and possess with intent to distribute five grams or more of methamphetamine, commonly known as “ice.”
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by Senior United States District Judge Henry Coke Morgan, Jr.
Charles Kephart was indicted by a federal grand jury in Norfolk on May 23, 2013. His wife, Katherine M. Kepart, a former Virginia Beach state probation officer, waived indictment and pled guilty to the conspiracy on August 13, 2013. Both are facing a maximum penalty of forty years in prison. Katherine Kephart is scheduled to be sentenced on December 13, 2013. Charles Kephart is scheduled to be sentenced on December 12, 2013.
According to court documents, the Kepharts regularly used methamphetamine and associated with known methamphetamine traffickers. In November 2012, law enforcement authorities received information that Kephart and his wife were obtaining quantities of methamphetamine from sources in the Asheville, North Carolina area and trafficking in the Eastern District of Virginia. On February 28, 2013, Charles Kephart was arrested during a controlled sale with an undercover police officer. FBI Norfolk then executed a federal search warrant on the Kepharts’ residence in Norfolk. The search yielded drug paraphernalia. Katherine, who at the time was employed by the Virginia Beach probation office, utilized the facilities of her office by “running” names and license plates of prospective conspirators to determine whether they might be under court supervision, or whether they were working for law enforcement.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Darryl J. Mitchell is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former San Bernardino County Police Officer Arrested on Federal Civil Rights Charges Stemming from Alleged Sexual AssaultsRead the Press Release
RIVERSIDE, California – A former officer with the San Bernardino Police Department was arrested today after being indicted yesterday on federal civil rights charges for allegedly forcing two prostitutes to perform sex acts while he was in uniform and/or carrying a gun.
Jose Jesus Perez, 46, of Menifee, was arrested without incident today in Denton, Texas, by officers with the Denton Police Department at the request of the Federal Bureau of Investigation. Perez is expected to make his initial court appearance tomorrow in United States District Court in Sherman, Texas.
“The charges in this case describe disgraceful abuses of police authority that simply cannot be tolerated in our society,” said United States Attorney André Birotte Jr. “The San Bernardino Police Department understands that this type of conduct deserves sure and swift action, and I thank them for promptly referring the matter to us and working with us to obtain this indictment. We are committed to ensuring that the public is lawfully served by its peace officers.”
A federal grand jury in Riverside yesterday returned under seal a four-count indictment that named Perez. The indictment, which was unsealed following Perez’s arrest, alleges that he forcibly had sex with two women who told investigators that they engaged in the sex acts demanded by Perez only because they feared for their well-being because he was a police officer.
“Mr. Perez allegedly violated the civil rights of victims he vowed to protect, instead of gaining their trust and providing them with the basic respect all members of a community deserve,” said Bill L. Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “By his alleged actions, Mr. Perez also violated the trust of his fellow officers and the community he swore to serve as a police officer in the city of San Bernardino. The FBI values its relationship with partnering local police and appreciates the support provided by the San Bernardino Police Department in this case.”
The indictment alleges that on April 25, 2011, Perez groped a woman and caused her to perform oral sex by using force against her. According to the indictment, the attack resulted in bodily injury to the victim, constituted aggravated sexual abuse, involved the use of a dangerous weapon (Perez’s service weapon), and resulted in the kidnapping of the victim.
The remaining three counts in the indictment charge Perez with unlawfully having sexual intercourse with a woman on three occasions in August and September 2011. According to a criminal complaint filed last month and also unsealed today, this victim “feared that if she refused Perez’s sexual advances he could and would make her life difficult.” She told investigators that she believed she would experience “problems” if she did not cooperate with Perez’s requests, according to the complaint.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Each of the four counts in the indictment carry a statutory maximum penalty of life in federal prison.
Perez became a police officer in 1997, when he was hired by the Los Angeles Police Department. Perez worked for the LAPD until 2008, when he went to work for the San Bernardino Police Department. Perez was released from employment by SBPD in December.
The investigation into Perez was conducted by the San Bernardino Police Department and the FBI.
Release No. 13-111
Former Massachusetts Man Pleads Guilty in Robbery and Shooting Death of Woonsocket, R.I., Gas Station Manager; Faces up to Life in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Jose A. Santiago, 36, formerly of Springfield, Mass., pleaded guilty in federal court in Providence today to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting, for his participation in a conspiracy that resulted in the armed robbery and murder of David D. Main of Woonsocket on September 20, 2010. Mr. Main was chased, shot to death at close range and robbed as he approached the doorstep of a Woonsocket, R.I., bank where he was preparing to deposit receipts belonging to a gas station he managed.
Santiago, who has been identified in court records as the getaway driver following the robbery and murder of Mr. Main, was scheduled to go on trial on Monday, September 9, 2013. Santiago’s guilty plea was entered prior to the beginning of the second day of jury empanelment. At sentencing on November 22, 2013, pursuant to federal sentencing guidelines, Santiago faces between 30 years to life in federal prison. No plea agreement was filed in this matter.
Santiago’s guilty plea before U.S. District Court Judge William E. Smith was announced by United States Attorney Peter F. Neronha; Rhode Island Attorney General Peter F. Kilmartin; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; Woonsocket Police Chief Thomas S. Carey; and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
Jason Wayne Pleau, 35, pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting. At the time of his guilty plea, Pleau admitted to the court that he robbed and murdered David Main as Mr. Main approached the bank. Pleau admitted to the court that he fled from the area in a vehicle which was parked on a nearby side street near the bank and was being driven by Jose Santiago.
Pleau faces up to life in federal prison when he is sentenced by U.S. District Court Judge William E. Smith on October 25, 2013.
Kelly Marie Lajoie, 35, pleaded guilty on December 9, 2011, to Hobbs Act conspiracy; aiding and abetting a Hobbs Act robbery; and use of a firearm during a federal crime of violence. She is detained while awaiting sentencing. A sentencing hearing has not yet been scheduled.
The defendants are being prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland.
The matter was investigated by the FBI, Woonsocket Police and Rhode Island State Police, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
###
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]Former Kinston City Council Member Sentenced for Child Pornography ChargeRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today, WILLIAM WALTER BARKER 44, of Kinston, North Carolina was sentenced by Senior United States District Judge James C. Fox to 78 months imprisonment, followed by a lifetime of supervised release and a $10,000.00 fine on the charge of one count of Receipt of Child Pornography, in violation of Title 18, United States Code, Section 2252 (a)(2).
Investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Freemont Police Department. Assistant United States Attorney Ethan A. Ontjes prosecuted the case.
According to the investigation, the Freemont Police Chief received a USB thumbdrive found in the Freemont Town Hall Board of Alderman meeting room near where BARKER was sitting during a meeting he attended. BARKER was employed by a CPA firm in Kinston and attended the meeting to present and discuss the town audit. The thumbdrive contained images of child pornography along with other documents belonging to BARKER. Subsequently, a search warrant of BARKER’S residence in Kinston was executed on November 29, 2012. BARKER was home at the time and admitted to possessing a thumb dive that matched the description of the thumb drive found in Freemont’s Town Hall. A laptop computer recovered during the search of BARKER’S home contained 11,025 images and 1,022 videos of child pornography.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.Former Joplin Man Pleads Guilty to Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Joplin, Mo., man pleaded guilty in federal court today to his role in a wire fraud scheme following the May 22, 2011 tornado.
Christopher L. Smith, 36, of Memphis, Tenn., formerly of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a June 11, 2013, federal indictment.
Smith admitted that he assisted another person to defraud the Economic Security Corporation of Southwest Area in Joplin. The not-for-profit corporation administered a rental assistance program, the Missouri Housing Trust Fund (MHTF) Disaster Relief Program. This program disbursed funds to landlords who rented to clients who had been displaced by natural disasters, including the May 22, 2011 tornado that struck Joplin.
Smith assisted in the wire fraud scheme in two fraudulent transactions. In June or July 2012, Smith signed two MHTF program applications as landlord/property manager/mortgagee, which was false and fraudulent in that Smith then knew he was not a landlord, property manager, or mortgagee entitled to receive MHTF program funds. Based on the false application, the Economic Security Corporation issued a $1,850 check to Smith on June 21, 2012, and a $2,085 check to Smith on July 26, 2012. The financial loss resulting from Smith’s conduct and for which Smith must pay restitution totals $3,935.
On Aug. 21, 2013, co-defendant John L. Williams, 31, of Memphis, Tenn., formerly of Joplin, pleaded guilty to his role in the scheme. Williams, who was not a landlord or property manager of Economic Security Corporation clients, conspired with others to submit fraudulent applications for rental assistance. Williams assisted in the scheme by serving as a purported landlord on two fraudulent applications for rental assistance, and also by accompanying other check recipients to the bank to cash their checks, in order to collect the proceeds of the fraud.
The Economic Security Corporation issued two rental assistance checks to Williams totaling $3,050. The total financial loss from the wire fraud conspiracy totaled $8,565.
Under federal statutes, Smith and Williams are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Missouri State Highway Patrol.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Former Bend Area Mortgage Broker and Others Sentenced for $7 Million Mortgage Fraud SchemeRead the Press Release
EUGENE, Ore. – This week U.S. District Court Judge Ann Aiken sentenced Peter Wilkinson and six others for their roles in a $7 million mortgage fraud scheme. Wilkinson, 43, of Eugene, Oregon, received the largest sentence: 57 months in prison and five years of supervised release. The court has not yet ruled on restitution.
According to court records, Wilkinson was a former state-licensed mortgage broker and owned and operated Deschutes Mortgage Group in Bend, Oregon, during the housing boom. As part of his scheme, Wilkinson knowingly submitted almost 60 bad loans for more than 30 properties, causing lenders to lose between $2.5 million and $7 million. Wilkinson pocketed more than $500,000 from these loans. He also involved six of his client-borrowers in his scheme: Cary Martinez, Barry Seaton, Kurtis Israel, Sean Bart, Jason Hoby, David McNulty, and Amy Ridley.
To convince lenders to approve the loans, Wilkinson and his client-borrowers falsely inflated their monthly incomes on home loan applications, omitted their liabilities from home loan applications, falsely claimed on home loan applications that the financing was for a primary residence rather than an investment property, or used straw borrowers to obtain financing for real estate. Additionally, Wilkinson and his client-borrowers deposited large amounts of money, often $100,000 or more, into their checking accounts to falsely prove cash reserves needed for the loan approval process.
U. S. Attorney Amanda Marshall noted, “The defendants fraud was extensive, involving at least eight individuals, more than 30 properties, more than 50 loans, money laundering, numerous victims, countless financial transactions, straw borrowers, millions of dollars in losses, and potentially millions of dollars in restitution. These defendants, members of the finance and real estate industries, and home buyers need to understand that fraud will not be tolerated. Such selfish choices affect more than a few individuals. They affect entire industries and communities. The defendants’ conduct, when taken with similar fraudsters, contributed to the housing bubble that left our great state and nation reeling when it burst.”
Cary Martinez, 41, of Boulder, Colorado, was sentenced to 36 months of prison, 200 hours of community service, and three years of supervised release; Barry Seaton, 50, of Long Beach, California, was sentenced to 24 months in prison, and three years of supervised release. Aside from their role in Wilkinson’s scheme, they were also sentenced for laundering drug proceeds through real estate and financial transactions. Kurtis Israel, 40, of Portland, Oregon, Sean Bart, 43, of Bend, Oregon, Jason Hoby, 40, of Albany, Oregon, and David McNulty, 40, of Bend, Oregon, were each sentenced to five years of probation and 500 hours of community service.
Kenneth Hines, Special Agent in Charge of IRS-Criminal Investigation in the Pacific Northwest, stated, “Mortgage fraud continues to be a burden on our economy and affect our daily lives. When so-called professionals lie and cheat to pay for an elaborate lifestyle that includes expensive cars and tickets on the 50-yard line, it may bring an illusion of success. However, the ultimate outcome may be serving time in jail.”
“The main defendant put hundreds of thousands of dollars into his own pockets while defrauding more than 20 banks and businesses out of millions of dollars,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon. “This case represents a systematic and deliberate attempt to undermine the ground on which the housing market in the Bend region is built. The fraud has a direct impact on the health of our economy and, therefore, on the financial well-being of all people in Central Oregon."
The last charged defendant in these cases, Amy Ridley, 54, of Kentucky, pled guilty on Wednesday, September 04, 2013, for her role in the scheme and is scheduled to be sentenced on January 22, 2014, at 9 a.m. before U.S. District Chief Judge Ann Aiken. The maximum penalty for conspiracy to commit wire fraud is 20 years in prison and a $250,000 fine.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Scott E. Bradford.
Former Bank Employee Sentenced to 41-Month Prison Term for Embezzling More Than $2 Million-Defendant Was A Private Banking Associate, Stole from Client Accounts-Read the Press Release
WASHINGTON – Jonathan Weir, 45, a former bank employee, was sentenced today to 41 months in prison on a federal mail fraud charge stemming from his embezzlement of more than $2 million from client accounts, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Weir, of Laurel, Md., pled guilty in May 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rudolph Contreras. The judge also ordered Weir to pay $2,166,500 in restitution and forfeit $1,469,510 in a money judgment. Upon completion of his prison term, Weir will be placed on three years of supervised release, and, during that time, he must perform 200 hours of community service.
According to the statement of offense signed by the defendant at the plea hearing and agreements made at the sentencing hearing, from 1992 to 2012, Weir was employed at a bank as a private banking associate, assisting with the management of high net-worth clients and their bank accounts. At least from 2000 to 2012, Weir worked with various clients, among them a married couple with accounts at the bank where Weir worked.
From May 2005 to August 2012, Weir withdrew a total of $2,166,500 from bank accounts belonging to the married couple without their permission or authority. Primarily, Weir would debit the clients’ accounts and issue a cashier’s check to one of three individuals, who would ordinarily deposit the money and then return a portion of the money to Weir. On occasion, Weir took cash or money orders, in addition to the cashier’s checks.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the Special Agents from the FBI’s Washington Field Office who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Paralegal Specialist Donna Galindo, Assistant U.S. Attorney Arvind K. Lal of the Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
13-306Former Bank Employee Sentenced to 41-Month Prison Term for Embezzling More Than $2 Million-Defendant Was A Private Banking Associate, Stole from Client Accounts-Read the Press Release
WASHINGTON – Jonathan Weir, 45, a former bank employee, was sentenced today to 41 months in prison on a federal mail fraud charge stemming from his embezzlement of more than $2 million from client accounts, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Weir, of Laurel, Md., pled guilty in May 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rudolph Contreras. The judge also ordered Weir to pay $2,166,500 in restitution and forfeit $1,469,510 in a money judgment. Upon completion of his prison term, Weir will be placed on three years of supervised release, and, during that time, he must perform 200 hours of community service.
According to the statement of offense signed by the defendant at the plea hearing and agreements made at the sentencing hearing, from 1992 to 2012, Weir was employed at a bank as a private banking associate, assisting with the management of high net-worth clients and their bank accounts. At least from 2000 to 2012, Weir worked with various clients, among them a married couple with accounts at the bank where Weir worked.
From May 2005 to August 2012, Weir withdrew a total of $2,166,500 from bank accounts belonging to the married couple without their permission or authority. Primarily, Weir would debit the clients’ accounts and issue a cashier’s check to one of three individuals, who would ordinarily deposit the money and then return a portion of the money to Weir. On occasion, Weir took cash or money orders, in addition to the cashier’s checks.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the Special Agents from the FBI’s Washington Field Office who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Paralegal Specialist Donna Galindo, Assistant U.S. Attorney Arvind K. Lal of the Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
13-306Former Bank Employee Charged with EmbezzlementRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of a Criminal Information in U.S. District Court in Scranton Wednesday charging Patricia A. Tokash, age 42, of Kingston, Pennsylvania, with bank embezzlement.
According to United States Attorney Peter J. Smith, Tokash was an employee of the M & T Bank located at 15 South Franklin Street, Wilkes-Barre, Pennsylvania. While employed at the bank, Tokash worked in the Government Loan Department and was responsible for administering and processing applications for M & T Bank loans to counties, townships, and municipalities. The Criminal Information alleges that between April 2011 and April 2012, Tokash embezzled approximately $62,995.66 in bank funds from fees paid in connection with loan applications, and/or from accounts at the M & T Bank, and converted the funds to her own use.
The case was investigated by the Federal Bureau of Investigation. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Federal Prison Terms Handed Down in Multi-Million Dollar Money Laundering Conspiracy Involving Los Zetas Drug Trafficking Proceeds, Extortion and BriberyRead the Press Release
In Austin this afternoon, three men including Jose Trevino Morales, the brother of purported Los Zetas leaders, Miguel Trevino Morales (aka “40”) and Oscar Omar Trevino Morales (aka “42”), were sentenced to lengthy federal prison terms for their roles in a complex conspiracy to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, Richard Weber, Chief, Internal Revenue Service Criminal Investigation and DEA Special Agent in Charge Javier Pena.
United States District Judge Sam Sparks sentenced Jose Trevino Morales, age 46, of Balch Springs, TX, and Francisco Colorado Cessa, a 52-year-old Veracruz, Mexico businessman, each to 240 months in federal prison followed by three years of supervised release. Judge Sparks also sentenced Fernando Solis Garcia, a 30-year-old horse trainer and purchasing agent from Ruidoso, NM, to 160 months in federal prison followed by three years of supervised release. Judge Sparks also remanded Garcia into federal custody following today’s hearing.
“The activities of Mexican drug cartels have taken a terrible toll within Mexico. This prosecution and the sentences imposed today should send a clear message to those who would attempt to import their brand of corruption and violence into the United States. We will find you, we will prosecute you and we will seek the most severe consequences the law allows,” stated United States Attorney Robert Pitman.
On May 9, 2013, a federal jury convicted Jose Trevino Morales, Francisco Colorado Cessa, Fernando Solis Garcia, and Eusevio Maldonado Huitron of one count of conspiracy to commit money laundering. Evidence presented during trial revealed that Los Zetas are a powerful drug cartel based in Mexico and generate multi-million dollar revenues from drug trafficking. Since 2008, Miguel and Oscar Trevino Morales would direct portions of the bulk cash generated from the sale of illegal narcotics to Jose Trevino and his wife, 39-year-old Zulema Trevino, for purchasing, training, breeding and racing American quarter horses in the United States.
Testimony also revealed a shell game by the defendants involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate. Furthermore, the defendants implemented a scheme to structure cash deposits in amounts under $10,000 in order to circumvent mandatory bank reporting requirements.
“Today’s sentencing marks the successful culmination to a complex, intensive investigation where the FBI, working together with U.S. Attorney’s Office and our law enforcement partners, has demonstrated the ability to dismantle the financial arm of a violent and ruthless drug cartel which has attempted to influence and control legitimate U.S. enterprises and threatened the safety of our community,” stated FBI Special Agent in Charge Armando Fernandez.
Drug Enforcement Administration Special Agent in Charge Javier F. Peña stated, “DEA is satisfied with today’s sentencings. Each sentence handed out today represents the relentless hard work and unyielding dedication DEA and its counterparts utilized to bring the defendants to justice.”
Over 400 quarter horses (which were seized by federal authorities in June 2012 as part of the above-mentioned money laundering operation) have been sold for approximately $9 million. Most of the horses were sold at Heritage Place Auction Facility in Oklahoma City, Oklahoma in the past year including A Dash of Sweet Heat, which sold for $1 million. Approximately 100 broodmares were sold prior to auction for approximately $35,000. The federal government still retains possession of five quarter horses, including Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, Texas, on October 24, 2009; Mr. Piloto, $1 million All American Futurity winner at Ruidoso Downs on Labor Day 2010; Dashin Follies; Separate Fire; Y516, a yearling seized in Lexington, OK; and four embryos transferred from donor mares, Dashin Follies and Separate Fire.
U.S. Attorney Pitman noted that the proceeds from the sale of these quarter horses are being held in escrow pending the resolution of a forfeiture action. The Government also seeks the forfeiture of real property in Lexington, OK; farm and ranch equipment located at that site; and funds contained in multiple bank accounts allegedly used in the defendants’ scheme. The Government also seeks a monetary judgment in the amount of $60 million representing property involved in and derived from the conspiracy.
“Today’s sentencing of top leaders of the Los Zetas crime syndicate is a decisive blow against its drug trafficking and money laundering network. It also sends a clear message to those who attempt to hide their ill-gotten gains through investment in legitimate businesses,” said Richard Weber, Chief, IRS Criminal Investigation. “All financial transactions leave a trail and we have the unique expertise to follow those leads. The special agents of IRS Criminal Investigation are committed to taking the profit away from drug traffickers and putting those individuals in jail. IRS Criminal Investigation was proud to provide this financial expertise as we worked alongside our law enforcement partners and bring these brutal criminals to justice.”
Authorities continue to seek the apprehension of seven co-defendants in this case including purported leaders of the Los Zetas, Miguel Trevino Morales (aka “40”) and his brother, 39-year-old Oscar Trevino Morales (aka “42”), as well as 32–year-old Victor Manuel Lopez, 41-year-old Sergio Guerrero Rincon, 41-year-old Luis Gerardo Aguirre, Erick Jovan Lozano Diaz and Gerardo Garza Quintero. Co-defendants Zulema Trevino, Jose Trevino Morales’ daughter Alexandra Garcia Trevino, age 22, of Oceanside, CA, 33-year-old horse trainer Adan Farias of Norco, CA, 27-year-old Carlos Miguel Nayen Borbolla of Santa Anna, CA, 29–year-old Felipe Alejandro Quintero of Los Alamitos, CA, Eusevio Maldonado Huitron, a 50-year-old horse trainer residing in Austin; and 21-year-old Raul Ramirez of El Paso, TX, are scheduled to be sentenced tomorrow beginning at 9:00am before Judge Sparks in Austin.
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Customs and Border Patrol, as well as local law enforcement agents in Irving, TX, Lorena, TX, Bruceville-Eddy, TX, Fort Worth, TX and Laredo, TX. The investigation received assistance from the Texas Army National Guard, Cleveland County (OK) Sheriff’s Office, and the Oklahoma and New Mexico Racing Commissions. The U.S. Attorney’s Office for the Eastern District of Texas prosecuted several members of the Los Zetas drug cartel on drug trafficking charges related to this conspiracy and provided substantial assistance to this investigation. The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) provided assistance with the forfeiture action in this case.
Federal Grand Jury Returns 11-Count Indictment Charging Roman with Killing Local Law Enforcement Officer Engaged in Performance of Official DutiesRead the Press Release
Other Counts Allege Firearms, Drug ViolationsSALT LAKE CITY – A federal grand jury returned an indictment Thursday morning charging Roberto Miramontes Roman, age 41, a citizen of Mexico, with intentionally killing Millard County Deputy Sheriff Josie Greathouse Fox while she was engaged in the performance of her official duties.
The indictment alleges that Roman, during the commission of, in furtherance of, and while attempting to avoid apprehension, prosecution, and service of a prison sentence for a felony drug violation, intentionally killed Deputy Fox on Jan. 5, 2010.
The first six counts of the indictment allege distribution of methamphetamine (three counts); possession of a firearm in furtherance of a drug trafficking crime (one count); and carrying a firearm(s) during and in relation to a drug trafficking crime (two counts).
Roman also faces one count of use, carry and discharge of a firearm in relation to a crime of violence. This count of the indictment relates to the alleged use of an AK-47 in the shooting death of Deputy Fox.
Two counts of the indictment allege Roman was restricted from possessing firearms under federal law because of a conviction of a crime punishable by imprisonment for a term exceeding one year and his illegal status in the country. The final count of the indictment alleges Roman, who was deported from the United States around Sept. 23, 2005, illegally re-entered the country.
The potential maximum penalty for each count of distribution of methamphetamine is 20 years in prison, although prosecutors intend to file a notice of intent to seek an increase in the statutory maximum to 30 years.
The four firearm counts related to the possession of a firearm in furtherance of a drug trafficking offense and the use, carry, and discharge of a firearm during the commission of a drug trafficking offense or a violent crime carry potential penalties of life in prison. The mandatory minimum for possession of a firearm in further a drug trafficking crime and carrying a firearm during and in relation to a drug trafficking crime are also five-year mandatory minimums. The mandatory-minimum for the discharge of a firearm during and in relation to a crime of violence is 10 years. Each conviction following the first one is a mandatory minimum of 25 years. Any of these sentences must run consecutively to any other sentence of imprisonment on other counts.
The potential penalty for each count of possession of a firearm by a restricted person and re-entering the country after a previous deportation is 20 years.
The potential maximum penalty for the count alleging intentionally killing a local law enforcement officer engaged in the performance of official duties in this case is life in prison with a statutory mandatory minimum sentence of 20 years.
Federal prosecutors anticipate Roman will be scheduled for arraignment on the charges in the next few weeks. He is currently serving a state prison sentence.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Utah and investigated by the ATF. U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) also has contributed to the case.
(Follow the U.S. Attorney’s Office on Twitter @DUTnews)Federal Grand Jury Indicts Six, Three Others Set to Plead Guilty, 5 Businesses Identified in Food Stamp Fraud Investigation in Rhode IslandRead the Press Release
PROVIDENCE, R.I. – A two-year criminal investigation conducted by the United States Attorney’s Office; the U.S. Department of Agriculture, Office of Inspector General; U.S. Department of Agriculture, Food and Nutrition Service, Retailer Investigations Branch; Internal Revenue Service Criminal Investigation; and the Rhode Island State Police has resulted in federal indictments charging six individuals and the filing of federal criminal charges against three others who are set to plead guilty for their alleged roles in various conspiracies and actions to defraud the federally funded Supplemental Nutrition Assistance Program (SNAP), commonly referred to as the food stamp program, of more than $3 million dollars.
At a news conference to announce the findings of the investigation to date and resulting federal charges, United States Attorney Peter F. Neronha identified five Providence area businesses named in court documents where it is alleged that store owners and/or employees allowed SNAP benefit recipients to use their Electronic Benefit Transfer (EBT) cards to exchange their SNAP benefits for cash, a violation of the program’s laws and regulations. It is alleged that in return, the defendants added a surcharge to the recipients’ withdrawal of SNAP benefits, usually an amount equal to that of the amount of cash benefit received by the recipient. SNAP benefit funds are transferred electronically directly to accounts managed by the retailer.
United States Attorney Peter Neronha announced that over the past two years, a pattern of alleged conspiracies and SNAP benefits abuse was revealed when federal law enforcement undercover investigators visited area convenience stores; examined thousands of documents, bank records and tax filings; and reviewed information and evidence seized during the execution of court authorized search warrants at several businesses on April 1, 2013.
Among the individuals named in federal grand jury indictments returned on Wednesday, and in informations and plea agreements filed with the U.S. District Court on Wednesday, are owners, managers and/or employees of the Corner Store, Regency Mart, Stop & Go, Dugout and Cristina’s Market, all located in Providence.
In addition to the ongoing criminal investigation and resulting criminal charges announced today, over the past two years the USDA Food and Nutrition Service, administrators of SNAP, permanently disqualified 37 Rhode Island retailers from participating in the food stamp program and sanctioned 15 others for violating the program's laws and regulations. Violations ranged from allowing the purchase of unauthorized merchandise to trafficking cash.
United States Attorney Peter F. Neronha commented, “The conduct alleged in the charging documents removed a tremendous amount of money from the food stamp benefit program that could otherwise go to feed a hungry adult or a hungry child. Such conduct on the part of some food stamp recipients is plainly improper, and subject to administrative action. Such alleged conduct on the part of retailers, motivated only by greed, is outrageous, and warrants the full attention of this Office and our law enforcement partners.”
USDA Office of Inspector General, Special Agent in Charge William G. Squires Jr.said“The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigative effort in Rhode Island has successfully uncovered and brought to justice several individuals and stores who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our Federal, State and local law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud.”
John Collins, Acting Special Agent in Charge of IRS Criminal Investigation stated, “The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has abused our system of providing for our citizens who have the greatest needs. Supplemental Nutrition Assistance Program benefits are designed to help individuals with the most basic of human necessities. Fraud in the system takes our limited resources away from those in need and erodes confidence in the system. With both law enforcement and financial investigation expertise, Special Agents of IRS Criminal Investigation are uniquely qualified to assist state and federal law enforcement agencies with these types of cases by following the money. We are pleased with the developments in these investigations due to the cooperative efforts of our law enforcement partners---the U.S. Attorney’s Office, the U.S. Department of Agriculture, the Rhode Island Attorney General’s Office and the Rhode Island State Police.”
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, “EBT Fraud affects the legitimate food stamp process, the economy, and confidence of the public with the proper distribution of funds to those who really need it.”
“I applaud the initiative of the law enforcement agencies present here today to address fraud in the EBT system,” said Rhode Island Attorney General Peter F. Kilmartin. “Since being briefed on this initiative by the United States Attorney many months ago, our goal has been to ensure that there is a coordinated effort to address those who defraud the system, and who therefore deprive our most needy citizens of the benefits they are entitled to. This case is yet another reminder of the fact that law enforcement functions best when the efforts of federal, state, and local agencies are coordinated towards a common goal, and we will continue to work together in the weeks and months ahead to ensure that those who have attempted to cheat the system are held accountable.”
The cases are being prosecuted in U.S. District Court in Providence by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.
An indictment and information are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Mustafa Al Kabouni, 52
Cranston, RI
Counts 1, 3, 5, 8-30Mohamad Barbour, 53
North Providence, RI
Counts 1, 5, 11, 13Mohamad Amir Al Kabouni, 43
North Providence, RI
Counts 1-4, 6, 9, 10, 12, 14Mohamad Eid Al Kabouni, 22
Cranston, RI
Counts 1, 6, 7, 14-16Count I: Conspiracy to defraud the United States
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCounts II, III, IV, V, VI, VII: SNAP benefit fraud - $100 or more
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount VIII: SNAP benefit fraud - $5,000 or more.
Max Penalties: 20 years imprisonment; $250,000 fine; 3 years supervised releaseCounts IX-XVI: Wire fraud
Max Penalties: 20 years imprisonment; $250,000 fine; 3 years supervised releaseCounts XVII-XXII: Money laundering
Max Penalties: 20 years imprisonment; $500,000 fine; 3 years supervised releaseCounts XXIII-XXX: Structuring
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release
Amir Rasheed, 33
Flushing, NY
Counts 1-22Karuna Mehta, 43
North Smithfield
Counts 1-8Count I: Conspiracy to defraud the United States
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCounts II, III, IV, V, VI, VII: SNAP benefit fraud - $100 or more
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCounts XVIII-XXII: Money laundering
Max Penalties: 20 years imprisonment; $500,000 fine; 3 years supervised releaseContact: 401-709-5357
[email protected]Federal Grand Jury Charges Two Dallas-Area Residents with Defrauding Investors in Gold Purchase SchemeRead the Press Release
Defendant Arrested at JFK International Airport Prior to
Boarding Flight to GhanaDALLAS — A federal grand jury in Dallas returned an indictment yesterday afternoon charging two recent, Dallas-area residents, Annetta Lou Smith, aka “Annette Crawford,” 49, and Warren Michael Hills, 54, with felony offenses related to a gold purchase investment fraud scheme they ran. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
On August 27, 2013, according to the criminal complaint filed in the case, Smith was informed that an indictment charging Smith and Hills with fraud would be presented to a federal grand jury on Wednesday, September 4, 2013. On Sunday evening, September 1, 2013, Smith was arrested by FBI agents at JFK International Airport where she was awaiting a flight she had booked to Ghana that was scheduled to depart later that evening. She made her initial appearance in federal court in the Eastern District of New York on Tuesday, September 3, and remains in custody; a date has not been set for her to appear in federal court in Dallas. A warrant has been issued for Hills’ arrest.
The indictment charges each defendant with one count of conspiracy to commit wire fraud and two substantive counts of wire fraud. A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count of the indictment carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. In addition, restitution could also be ordered.
The indictment alleges that beginning in July 2010 and continuing at least to December 2010, Smith and Hills represented to investors that they were in the business of buying gold at a discount price in Ghana. This gold, according to the defendants, came from small gold mines in Ghana that did not produce enough gold to sell to large gold refining companies. The defendants invited investors to travel to Achimoto, Ghana, and other locations in Ghana, so that they could further explain the discount gold purchase program and convince investors that the investment program was a legitimate investment opportunity.
When investors arrived in Ghana, the defendants had them open bank accounts where one account was used for investor funds, in U.S. dollars, and the other was used to deposit and transfer Ghana currency. In fact, to build each investors’ trust, the defendants encouraged each investor to conduct a “test transaction” or “test purchase” in which the defendants had a particular investor wire a relatively small amount of funds from a bank in the U.S. to the defendants to purchase one kilogram of gold. This was done with the understanding that if the investor was satisfied with this initial small purchase, the investor would later agree to send additional funds to an account he had opened.
Defendants, however, fraudulently transferred investor funds to accounts they controlled in Ghana and they fraudulently retained all of the investor funds even though they well knew that they did not make all of the gold shipments which they had promised to investors. The defendants tried to keep the scheme going by making false statements to investors to explain why all the promised gold had not been shipped. When investors demanded that all their invested funds be returned, the defendants refused and kept the money for themselves.
Smith and Hills caused substantial monetary losses to many investors. For example, one investor, M.W., transferred $586,833 to Hills’ account in Ghana. After the test transaction of one kilogram of gold, Smith and Hills falsely promised another 12.5 kilograms of gold would be delivered to M.W. However, Smith and Hills only shipped a total of six kilograms to M.W., fraudulently retaining approximately $325,000 of M.W.s funds.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case is being investigated by the FBI. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Dubuque Man Convicted of Unlawful Possession of FirearmsRead the Press Release
A felon who unlawfully possessed two firearms was convicted by a jury today after a two-day trial in federal court in Cedar Rapids.
Daniel Lee Campbell, age 30, from Dubuque, Iowa, was convicted of one count of possession of a firearm by a felon. The verdict was returned this morning following about 50 minutes of jury deliberations.
The evidence at trial showed that around 11:00 p.m. on June 10, 2013, officers from the Dubuque Police Department responded to a 911 call regarding a man with a firearm on Bluff Street. As officers approached the area, they spotted Campbell who matched the description provided in the 911 call. When an officer asked Campbell to stop, Campbell ran away and pulled two guns from his pants. Campbell tossed one gun as he ran through an alley behind a church. Campbell took the second gun and fired a shot over his shoulder at the pursuing officers before tossing the gun into a fenced-in area behind the church. Campbell hid from officers in a trash pile a couple of blocks away before being apprehended around 12:30 a.m. Campbell had previously been convicted in United States District Court in 2007 of providing a false statement to a federal firearms licensee, a felony offense.
Sentencing before United States District Court Chief Judge James Gritzner will be set after a presentence report is prepared. Campbell remains in custody of the United States Marshal pending sentencing. Campbell faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-1010.
Donna Schneeberger Sentenced in Utica to Probation and FineRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the imposition of sentence in United States District Court in Utica on Donna Schneeberger for the offense of filing a false tax return.
Donna Schneeberger, 53, of Clayton, NY pled guilty in April, 2013, to a single count of subscribing and filing a false tax return, relating to income earned by her husband’s dental business. On September 4, 2013, District Judge David N. Hurd sentenced the defendant to a term of probation of three years and a fine of $25,000. Ms. Schneeberger admitted that the joint income tax return that she had signed and filed for tax year 2007 had failed to include income earned by the dental practice, for which she maintained the books and records. She admitted that between 2005 and 2007, she had failed to report over $700,000 in income, and the District Court found that she had deprived the United States of taxes in excess of $230,000.
The Court imposed a sentence of a fine and probation, stating its reliance, in part, upon its recognition of the defendant’s extensive civic contributions in Watertown and Clayton. The defendant, who prior to sentencing had paid the unreported taxes, was ordered by Judge Hurd to pay all interest and penalties resulting from the criminal behavior as part of her probation.
This case is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division in Syracuse, NY. Further questions or inquiries may be directed to Executive Assistant United States Attorney John Duncan, at (315) 448-0672.
Distributing Methamphetamine and Selling Firearms Illegally Sends Unicoi Market Operator to Federal Prison for 46 MonthsRead the Press Release
GREENEVILLE, Tenn.- Billy Joe Rice, 55, of Unicoi County, was sentenced on September 5, 2013, to serve 46 months in federal prison by the Honorable Leon Jordan, U.S. District Judge. Rice pleaded guilty in August 2012 to a federal indictment charging him with distribution of methamphetamine and dealing firearms without a license. Upon his release from prison, Rice will serve three years of supervised release.
A three year investigation revealed that Rice was buying and selling firearms, some of which were stolen, from a market he operated in Unicoi, Tenn. He did not have a federal firearms license. Investigators learned that Rice was also acquiring materials for the manufacture of methamphetamine and distributing methamphetamine.
Law enforcement agencies participating in this investigation which lead to the indictment and subsequent conviction of Rice included the Unicoi County Sheriff’s Department, Erwin Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert Reeves represented the United States.
U.S. Attorney Bill Killian praised the law enforcement agencies involved for eliminating an outlet for stolen firearms, and reducing the possibilities that the firearms will fall into the hands of felons and other drug dealers.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crimes face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Department of Justice Reaches Settlement with Virginia School District to Ensure Equal Opportunites for English Language Learner StudentsRead the Press Release
The Department of Justice’s Civil Rights Division has reached a comprehensive settlement agreement with the Prince William County School District in Virginia to improve services for approximately 13,000 students who are English Language Learners (ELLs) and provide language access for Limited English Proficient (LEP) parents district-wide. With the district’s cooperation, the department conducted an extensive examination of the ELL programs offered by all 93 schools in the district to determine whether ELL students were receiving adequate services as required by the Equal Educational Opportunities Act of 1974 (EEOA). This examination was prompted by compliance issues identified during the department’s earlier EEOA investigation of a complaint regarding the ELL program at a district middle school.
The department identified several issues in its review, including inadequate ELL services for ELL students, an insufficient number of properly qualified teachers and administrators, inadequate ELL materials, gaps in the district’s communications with LEP parents, insufficient procedures for identifying and serving ELL students with disabilities and ensuring nondiscriminatory discipline of ELL students, an incomplete process for families to opt out of ELL services, and a lack of effective monitoring and evaluation of the district's ELL programs.
The agreement requires the district to address these compliance issues identified beginning in the 2013-14 school year and continuing for at least a three-year period. Specifically, the district agrees to:
• Provide all ELL students, including students with disabilities, at all 93 schools with adequate English Language Development (ELD) and sheltered content instruction provided by teachers with appropriate qualifications or training;
• Monitor the progress of ELL teachers and administrators towards obtaining required training, and ensure that administrators account for the use of appropriate ELD and sheltering techniques in teacher evaluations;
• Require principals or other designated administrators to receive training regarding their ELL program-related responsibilities, including but not limited to establishing meaningful communications with parents of ELL students and LEP parents, ensuring that parents’ decisions to opt their children out of ELL services are informed and monitored, reviewing current and former ELL student performance and recommending program adjustments as needed and providing ELL students with adequate instructional materials;
• Modify the district’s registration and enrollment practices to ensure that students are able to access its programs regardless of race, national origin or immigration status;
• Provide ELL students and LEP parents with meaningful access to discipline and special education forms, codes, notices, procedures and meetings;
• Institute cultural responsiveness training for teachers to promote effective engagement with students from diverse cultural and linguistic backgrounds; and
• Collect and review data to identify and address any student disparities and to evaluate the effectiveness of ELL programs.“We applaud the Prince William County school district for working cooperatively with the United States to ensure that all English language learner students have access to the services to which they are entitled,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “We will continue to work cooperatively with the district to monitor its compliance with the agreement.”
The enforcement of the Equal Educational Opportunities Act is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Related Materials:
Agreement
Defendant in Children Charity Fraud Case Sentenced to PrisonRead the Press Release
Nehemiah Muzamhindo Sentenced for Bilking W.K. Kellogg Foundation of $629,000
GRAND RAPIDS, MICHIGAN – Nehemiah Muzamhindo, a resident of Grand Rapids, Michigan and citizen of Zimbabwe, was sentenced to a total of six years (72 months) in prison on federal charges of money laundering and filing a false tax return. In addition to ordering the prison time, the Hon. Janet Neff, U.S. District Court Judge, also ordered Muzamhindo to pay over $629,000 in restitution and over $79,000 in back taxes.
While the Diplomatic Security Service (DSS) was investigating Muzamhindo for his role in a scheme to obtain fraudulent U.S. passports, agents discovered evidence that Muzamhindo had received large wire transfers from bank accounts held by the W.K. Kellogg Foundation (“WKKF”) in the Republic of South Africa. WKKF has its headquarters in Battle Creek, Michigan and is one of the world’s largest children’s charities. Further investigation revealed that Muzamhindo was part of a scheme to submit bogus invoices for payment to WKKF. WKKF paid members of the scheme a total of approximately $800,000 between 2006 and 2008 before learning that it was being swindled. As part of his sentencing, Muzamhindo was ordered to pay restitution to the WKKF for the amount directly attributable to his role in the scheme. Because Muzamhindo did not report to the IRS any of the money he received from WKKF during those
years, the IRS also investigated Muzamhindo, leading to his conviction for filing a false tax return and the order to pay the amount he owed in unpaid taxes as part of his sentence.U.S. Attorney Patrick Miles commented that “This sentence of prison time and restitution holds Muzamhindo accountable for the full measure of his deceit to both the charity that he swindled and the government. That should be a lesson for others; crime does not pay in this district.”
IRS Criminal Investigation Acting Special Agent in Charge Carolyn Weber added: “Muzamhindo and his accomplices stole money that was meant for the world’s underprivileged children. IRS, DSS and our Federal law enforcement partners will continue to fervently seek justice for the victims of this kind of inexcusable fraud.” Scott Collins, Assistant Special Agent in Charge of the Chicago Field Office of the Diplomatic Security Service, noted “Those who fraudulently acquire U.S. travel documents often do so in order to commit other crimes. Aware of this trend, we were able to uncover the connections to South Africa and the underlying scheme to defraud a charity. DSS takes very seriously our charge to protect the integrity of the U.S. passport and visa programs.”
END
CorrectedRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Local Chiropractor Sentenced on
Health Care Fraud and Tax Evasion ChargesWHEELING, WEST VIRGINIA - A local chiropractor was sentenced on September
5, 2013, in United States District Court in Wheeling by Judge Frederick P. Stamp, Jr.The United States Attorney’s Office announced that:
JOSEPH J. YURIGAN, age 62, of New Alexandria, Pennsylvania, was sentenced to 18 months imprisonment to be followed by two years of supervised release. YURIGAN entered pleas of guilty on October 9, 2012, to one count of Health Care Fraud by submitting a fraudulent claim to a health care benefit program and one count of Income Tax Evasion for the calendar year 2008. YURIGAN a doctor of chiropractic medicine and licensed to practice in the State of West Virginia operated two chiropractic clinics in the Northern District of West Virginia. One clinic is located in Weirton, West Virginia and is operated under the name Weirton Chiropractic Clinic. The other clinic was operated under the name Wheeling Spine Center.
As part of his plea, YURIGAN will make restitution of $513,373.92 for the health care violation and $322,692.03 for the tax evasion violation.
YURIGAN, who is free on bond, will self-report to the designated Federal institution on October 7, 2013.
This case was prosecuted by Assistant United States Attorneys Randolph J. Bernard and Alan G. McGonigal and investigated by the Federal Bureau of Investigation, the Ohio Bureau of Workers Compensation-Special Investigations Department, the West Virginia Insurance Commission-Fraud Investigation Unit and the Internal Revenue Service-Criminal Investigations.
Complaint Filed in Joint Investigation of Sex Offenses Involving Children: Acting Director of CNMI Division of Fish and Wildlife Charged with Coercion and EnticementRead the Press Release
Saipan, MP – United States Attorney for the Districts of Guam and the Northern Mariana Islands Alicia A.G. Limtiaco, together with the Federal Bureau of Investigation (FBI), Commonwealth of the Northern Mariana Islands (CNMI) Attorney General’s Office, and CNMI Department of Public Safety announced today the filing of a federal charge stemming from a joint investigation of sex offenses involving children:
- RAYMOND BORJA ROBERTO, acting Director of the CNMI Division of Fish and Wildlife, was charged in a federal criminal complaint with Coercion and Enticement, in violation of Title 18, United States Code, Section 2422(b). A conviction carries a statutory minimum of at least ten years and a maximum sentence of life imprisonment.
U.S. Attorney Limtiaco stated that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood initiative, a nationwide initiative to protect children from sexual predators.
The investigation originated with the CNMI Department of Public Safety and was investigated jointly by DPS Criminal Bureau of Investigations and the FBI. The case is being prosecuted by Assistant United States Attorneys Rami Badawy and Ross Naughton.
The charge is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Copies of the complaints are attached.
Cocke County Drug Dealer Who Threatened TBI Agent Sentenced to 135 Months in Federal PrisonRead the Press Release
GREENEVILLE, Tenn. – Clayton Carroll Owenby, 45, of Newport, Tenn., was sentenced on September 5, 2013, to serve 135 months in prison, by the Honorable Leon Jordan, U.S. District Judge. Owenby pleaded guilty to a March 2013 federal indictment charging him and nine others with conspiracy to distribute oxycodone. Additionally, Owenby pleaded guilty to a separate federal indictment, filed in May 2013, charging him with threatening to retaliate against a witness.
The conspiracy for which Owenby was convicted of being a part, involved conspirators obtaining prescriptions for oxycodone from various pain clinics and physicians across the state of Tennessee and then redistributing the drug in the Eastern District of Tennessee. Owenby admitted that he obtained 5,718 total dose units (totaling 176,240 milligrams) of oxycodone from multiple physicians.
While in federal custody during the pendency of his drug case, Owenby made numerous phone calls to his mother, Kathleen Garrett, wherein he threated to physically retaliate against the lead case agent and his family. Owenby admitted to making these threats in response to the agent’s role in the investigation. Garrett also pleaded guilty to threatening to retaliate against a witness and is scheduled to be sentenced on September 19, 2013.
“This sentence reflects, not only the defendant’s serious original crime, but the totally unacceptable threats of physical harm to the federal agent and his family,” said U. S. Attorney William C. Killian.
This case is the result of a joint investigation by the Cocke County Sheriff’s Office and Tennessee Bureau of Investigation. Assistant U.S. Attorney Suzanne Kerney-Quillen is representing the United States.
Chicago Man Sentenced on Mortgage Fraud and Identity Theft ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Julius Willard, 55, of Chicago, Il., who was convicted of bank fraud and aggravated identity theft, was sentenced to 94 months in prison by U.S. District Judge Richard Arcara, and ordered to pay over $7,000,000 in restitution.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant submitted fraudulent mortgage applications to various financial institutions, including HSBC Bank, while he worked as a mortgage broker in the Atlanta, Georgia, area. Willard's conduct resulted in a loss of over $7,000,000 to the victim financial institutions.
The defendant was part of a scheme that recruited individuals to apply for mortgages and purchase income properties. Willard then submitted mortgage applications on behalf of the borrowers, which included false information as to borrowers' employment, salary, and residency; and fraudulent pay stubs, employment verification forms, and bank statements as supporting documentation.
At the time he engaged in this conduct, the defendant was ineligible to work as a licensed mortgage broker, due to his criminal record. Willard utilized identifying information of another individual to gain employment with a mortgage brokerage firm and to carry out his scheme to defraud the financial institutions.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama 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.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Steven L. Lanser, along with Special Agents of the Housing and Urban Development Office of Inspector General, Atlanta, Georgia Office, and the United States Attorney's Office for the Northern District of Georgia.Canadian nationals charged in $9 million tax refund schemeRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. and Assistant Attorney General Kathryn Keneally of the U.S. Department of Justice, Tax Division, announced today that a federal grand jury in Rochester has returned a 19-count superseding indictment charging Daveanan Sookdeo, Kevin Cyster, Jonathan Neufeld, Christina Starkbaum, Renee Jarvis, Jose Compuesto, all of Ontario, Canada, and Timothy Johnston, of Nova Scotia, Canada with conspiring to defraud the Internal Revenue Service, stealing government funds, filing false claims against the United States and transporting money taken by fraud in foreign commerce. The charges each carry a maximum penalty of between five and 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the superseding indictment, the defendants conspired to defraud the United States by filing at least 18 false non-resident federal income tax returns, claiming more than $9,000,000 in false federal income tax refunds. In response to the false returns, the IRS sent Treasury Checks totaling more than $3.5 million to the defendants in Canada.
"We've said before that both individuals and companies in this country must play by the rules," said U.S. Attorney Hochul. "This is particularly true for foreign nationals who would seek to defraud the American public out of their hard earned tax dollars."
According to the indictment, the defendants are Canadian citizens and residents. Daveanan Sookdeo served as a middleman between the other Canadian defendants and Ronald Brekke, a previously convicted California fraud promoter. Brekke made false IRS Forms 1099-OID for the defendants and electronically transmitted them to the IRS. The Forms 1099-OID reported that the defendants creditors, such as banks and mortgage companies, had withheld large amounts of federal income taxes and paid the taxes over to the IRS. In fact, there were no such withholdings or payments to the IRS. The defendants then filed individual income tax returns with the IRS, attaching copies of false Forms 1099 and fraudulently claiming refunds of the nonexistent tax withholdings.
The indictment further states that during 2009 and 2010, the defendants crossed the border from Canada into the United States and opened bank accounts in Niagara Falls, Rochester, Brockport, and Kenmore, N.Y. The defendants deposited the tax refund checks in those accounts and then transferred funds to financial institutions in Canada and the United States.
According to court filings, the grand jury previously returned a one count indictment against Kevin Cyster in November 2012, charging him with filing a false claim to the United States, after Cyster was arrested while attending the "2012 Family Reunion" of the Global Information Network in Nashville, Tennessee.
This case is just the latest in a continuing series of multi-million dollars tax cases prosecuted by the Western District of New York in the last 45 days. On July 30, 2013, defendant John Gizzi pleaded guilty to filing false tax returns and agreed to pay $11,000,000 to the Government in criminal restitution and to settle civil claims.
The superseding indictment is the result of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigation, under the direction of Special Agent In Charge Toni Weirach. The evidence was presented to the Grand Jury by Assistant U.S. Attorney Marisa J. Miller and Jeffrey A. McLellan, Tax Division Trial Attorney, who will handle the trial of the case.
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.
Buffalo Woman Pleads Guilty to Tax Evasion and Falsifying a Passport ApplicationRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Diane Abram, 61, of Buffalo, N.Y., pleaded guilty before U.S. District Court Chief Judge William M. Skretny, to tax evasion and making false statements in a passport application. The charges carry a maximum penalty of 15 years in prison, a fine of $350,000 or both.
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that in January, 2013, the defendant applied for a U.S. Passport, in the name Diane Ballard, at the U.S. Passport Office in Buffalo. On the application, the defendant failed to disclose that she had previously utilized the name Diane Abram, and had previously obtained passports in the name Diane Abram. The passport office detected the fraud and Abram admitted that she lied on the application and intentionally attempted to obtain passports in two separate names and social security numbers to avoid collection of outstanding taxes.
Further investigation revealed that the defendant owed the Internal Revenue Service approximately $25,000 and that she ignored and evaded collection efforts by using an alternate name and social security number, and by failing to notify the IRS of this alternate name and social security number.
The plea is the culmination of a joint investigation on the part of Special Agents of the Internal Revenue Service, under the direction of Special Agent-In-Charge Toni Weirauch, and Agents of the U.S. Department of State Diplomatic Security Service, under the direction of Special Agent in Charge Roy Stillman.
Sentencing is scheduled for January 13, 2014 at 9:00 a.m. before Judge Skretny.