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Thursday 29 August 2013
Chicago Area Man Indicted for Allegedly Obstructing Justice and Soliciting the Murder of an Undercover FBI AgentRead the Press Release
CHICAGO ― A Hillside man was indicted today on federal charges for allegedly soliciting the murder of an undercover FBI agent after the defendant was arrested last September and charged with attempting to detonate a purported bomb outside a bar in downtown Chicago. The defendant, ADEL DAOUD, was charged with one count each of solicitation of murder or attempted murder of a federal agent, murder-for-hire, and obstruction of justice in a three-count indictment returned by a federal grand jury.
Daoud, 19, will be arraigned on today’s charges on a date to be determined in U.S. District Court. He has pleaded not guilty to terrorism-related charges stemming from his arrest on Sept. 14, 2012, when he allegedly attempted to detonate a purported explosive device. His trial on those charges is scheduled for April 7, 2014.
According to today’s indictment, in July 2012, Daoud was introduced to Individual A, an undercover FBI agent posing as a terrorist residing in New York, who would supply Daoud with an explosive device to use in a terrorist attack in Chicago. After he was arrested, Daoud learned that Individual A was an FBI agent. Between Oct. 26 and Nov. 29, 2012, Daoud allegedly solicited another person to use physical force to murder or attempt to murder the undercover agent.
The murder-for-hire count alleges that on Nov. 28, 2012, Daoud caused another person to use a telephone with the intent of committing the murder Individual A in return for payment. The obstruction count alleges that between Oct. 26 and Nov. 29, 2012, Daoud attempted to kill Individual A to prevent the agent from attending and testifying in court.
The indictment was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorneys Barry Jonas and William Ridgway.
The solicitation count carries a maximum penalty of 20 years in prison; murder-for-hire carries a maximum of 10 years; and the obstruction of justice count carries a maximum of 30 years, and each count carries a maximum fine of $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Charlotte Man Sentenced to More Than 24 Years in Prison for Armed Robbery of Auto Parts StoreRead the Press Release
CHARLOTTE, N.C. – A Charlotte man was ordered to serve more than 24 years in prison in connection with the armed robbery of an auto parts store, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. On Wednesday, August 28, 2013, U.S. District Judge Max O. Cogburn, Jr., sentenced Lavonte Lamont Hallman, 25, of Charlotte to 294 months in federal prison, to be followed by 3 years of supervised release.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Tompkins in making today’s announcement.
In March 2012, a criminal indictment charged Hallman with conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; possession of firearm in furtherance of the Hobbs Act Robbery; and possession of a firearm by a felon. In July 2012, a federal jury found Hallman guilty of all charges following a four-day trial. According to trial evidence and court documents, on December 26, 2011, Hallman entered an O’Reilly’s Auto Parts Store located on Old Statesville Road, in Charlotte, with a yellow cloth covering his face and carrying a loaded .25 caliber pistol. Court records indicate that Hallman pointed the firearm at store employees, told them they had ten seconds to empty their cash drawers and proceeded to count down from ten. The employees complied and Hallman obtained a total of $336.00 from two registers. Hallman ran out of the store and hid in the bushes across the street until his getaway driver, Ronald Demetrius Campbell, picked him up in a white Mercury Marquis. Court records show that law enforcement spotted and stopped the getaway vehicle shortly thereafter and Campbell was arrested at the scene of the traffic stop. Hallman fled the Marquis on foot with his pistol in hand, but was apprehended and arrested by law enforcement after a brief footchase.
In June 2012, Campbell, 37, also of Charlotte, pleaded guilty to conspiracy to commit Hobbs Act robbery and was sentenced to 41 months in prison and to three years of supervised release in March 2013.
Hallman had two prior felony convictions for armed robberies of other auto parts stores in the Charlotte area. In issuing the sentence, Judge Cogburn recognized the serial nature of Hallman’s criminal conduct, and emphasized the need for a sentence which would protect the community from this repeated violent behavior.
Hallman has been in local federal custody in the Western District of North Carolina since his arrest in April of 2012. Upon designation of a federal facility he will be transferred into custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
U.S. Attorney Tompkins thanked CMPD and ATF for conducting the investigation and the North Carolina Highway Patrol for their assistance in locating and stopping the getaway vehicle.
The prosecution for the government was handled by Assistant U.S. Attorney George Guise and Special Assistant United States Attorney Erin Comerford of the U.S. Attorney’s Office in Charlotte.
Erin Comerford, a state prosecutor with the Mecklenburg County District Attorney’s Office, was assigned by District Attorney Andrew Murray to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte. Ms. Comerford is duly sworn in both state and federal courts, and prosecutes gang, violent crime and high level drug trafficking cases in federal court. Funded by the Governor’s Crime Commission, the goal of this partnership is to make Mecklenburg County safer through a coordinated enforcement effort.
Cambridge Man Indicted for Making False Statements in the Boston Marathon Bombing Terrorism InvestigationRead the Press Release
BOSTON – A federal grand jury returned an indictment today against a Cambridge man previously charged with making false statements during the Boston Marathon bombing terrorism investigation.
Robel Phillipos, 19, was indicted after having been previously charged via complaint in May with making a series of materially false statements to federal law enforcement officials during a terrorism investigation. Phillipos is charged with two counts of making false statements. The indictment also charges Dias Kadyrbayev, 19, and Azamat Tazhayakov, 19, both of New Bedford with conspiring to obstruct justice and obstructing justice with the intent to impede a terrorism investigation. Kadyrbayev and Tazhayakov are both nationals of Kazakhstan who were temporarily living in the United States pursuant to student visas.
As alleged in the indictment, on April 18, 2013, after the FBI posted photographs of the two men suspected of carrying out the Marathon bombings (who were later identified as Tamerlan Tsarnaev and Dzhokhar Tsarnaev), Kadyrbayev received a text message from Dzhokhar Tsarnaev suggesting that he go to Tsarnaev’s “room and take what’s there.” Kadyrbayev, Tazhayakov, and Phillipos, according to the indictment, went to Tsarnaev’s dormitory room and removed several items, including Tsarnaev’s laptop computer and a backpack containing fireworks, and brought them to Kadyrbayev and Tazhayakov’s apartment in New Bedford. Later that night, Kadyrbayev, with Tazhayakov’s knowledge and agreement, placed Dzhokhar Tsarnaev’s backpack, which contained several items, including fireworks, in a garbage bag and placed it in a dumpster outside their New Bedford apartment.
The indictment further alleges that between April 19 and April 25, 2013, law enforcement officials assigned to the Joint Terrorism Task Force interviewed Phillipos concerning material facts related to the terrorism investigation into the Boston Marathon bombing and one of the suspected bombers, Dzhokhar Tsarnaev. During these interviews, Phillipos concealed the fact that he, Kadyrbayev and Tazhayakov had gone into Dzhokhar Tsarnaev’s dormitory room on the evening of April 18 and removed Dzhokhar Tsarnaev’s backpack from his room. In so doing, he made numerous false and misleading statements to the agents.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation was conducted by the FBI's Boston Division, the Massachusetts State Police, and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies. The University of Massachusetts Dartmouth Department of Public Safety, the City of New Bedford, New Bedford Police Department, Dartmouth Police Department, U.S. Department of Transportation – Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), Essex County Sheriff’s Office, and Internal Revenue Service, Criminal Investigations provided assistance to this investigation.
If convicted, Phillipos faces a maximum penalty of up to eight years in federal prison on each of the two counts. Kadyrbayev and Tazhayakov face a maximum penalty of 20 years in prison on the obstruction of justice count and five years on the conspiracy count. All face up to three years of supervised release and a $250,000 fine for each charge. Kadyrbayev and Tazhayakov also face the possibility of being deported at the conclusion of this prosecution.
The case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit with the assistance of the Counterterrorism Section of the Justice Department’s National Security Division.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Businessman Pleads Guilty to Conspiracy to Conceal Israeli Bank AccountsRead the Press Release
Aaron Cohen of Encino, Calif., pleaded guilty today in the U.S. District Court for the Central District of California to conspiracy to defraud the United States, the Justice Department and Internal Revenue Service-Criminal Investigation (IRS-CI) announced.
According to court documents, Cohen, a U.S. citizen, maintained undeclared bank accounts at two international banks headquartered in Tel Aviv, Israel, identified in court documents as Bank A and Bank B. One of Cohen’s undeclared accounts was maintained at a branch of Bank A located in the Cayman Islands. The accounts were held in the names of nominees in order to keep them secret from the U.S. Government. In or about 2000, Cohen began using the funds in his undeclared account in the Cayman Islands as collateral for back-to-back loans obtained from another branch of Bank A located in Los Angeles. Cohen’s ownership of the funds in the Cayman Islands accounts was not identified in the loan records maintained at the Los Angeles branch, thus concealing the fact that he was borrowing his own money, paying tax-deductible interest on the loans and not reporting the interest income he was earning in the Cayman Islands on his U.S. tax returns.
According to the plea agreement, in or about 2009, Cohen transferred approximately $2 million from his Cayman Islands account at Bank A to a new offshore account at Bank B in Israel. Cohen then used the funds in the new account as collateral to obtain a back-to-back loan from the Los Angeles branch of Bank B. Cohenfailed to report any income from the accounts on his individual income tax returns that were filed with the IRS. For tax years 2006 through 2009, Cohen failed to report interest income of approximately $238,000. The highest balance in the undeclared accounts was approximately $3,450,000.
“Today’s guilty plea is but the latest example that attempting to hide income and assets from the United States in offshore accounts is a bad gamble,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “The Internal Revenue Service will find the hiding places and the Department of Justice will criminally prosecute these tax cheats, who face potential jail time, still owe the taxes due and may lose those hidden assets and more to severe civil penalties."
“Mr. Cohen is yet another taxpayer caught using anonymous offshore accounts to avoid paying his fair share of taxes,” said IRS Criminal Investigation Chief Richard Weber. “Through IRS-CI’s efforts, we are gaining access to more and more information on institutions and individuals involved in offshore tax fraud, and you can expect us to use all of our enforcement tools to fight offshore tax evasion.”
Cohen is the latest in a series of defendants charged in the U.S. District Court for the Central District of California with failing to report income from undeclared accounts in Israel.
On March 29, 2013, Zvi Sperling of Beverly Hills, Calif., pleaded guilty to conspiring to defraud the United States in connection with back-to-back loans obtained in Los Angeles at branches of Bank A and Bank B that were secured by funds in undeclared bank accounts in Israel. For tax years 2005 through 2008, Sperling failed to report income of approximately $381,563. The highest balance in Sperling’s undeclared accounts was approximately $4 million.
On May 21, 2013, Guity Kashfi of Los Angeles, Calif., pleaded guilty to conspiring to defraud the United States in connection with back-to-back loans obtained from branches of Bank A and Bank B in Los Angeles that were secured by funds in undeclared bank accounts in Israel and Luxembourg. For tax years 2005 through 2011, Kashfi failed to report interest income of approximately $221,306. The highest balance in Kashfi’s undeclared accounts was approximately $2.5 million.
U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. Additionally, U.S. citizens and residents must file a Report of Foreign Bank and Financial Reports (FBAR) with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.
Cohen faces a potential maximum prison term of five years and a maximum fine of $250,000. In addition, Cohen has agreed to pay a civil penalty to the IRS in the amount of 50 percent of the high balance of his undeclared accounts for failing to file FBARs.
Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and André Birotte Jr., U.S. Attorney for the Central District of California thanked special agents of IRS-CI, who investigated the case, and Tax Division Senior Litigation Counsel John E. Sullivan and Assistant Chief Elizabeth C. Hadden, who prosecuted these cases, and Assistant U.S. Attorney Sandra A. Brown of the U.S. Attorney’s Office, who assisted with the prosecutions.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Business Owner Pleads Guilty in Employment Tax Fraud and Obstruction CaseRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –John H. Gregory, 57, of Reynoldsburg, Ohio pleaded guilty to one count of failing to account for and pay over employment taxes to the Internal Revenue Service (IRS) and to one count of obstruction of federal investigations. The total tax loss in this case is approximately $1,136,292.34. Gregory faces a maximum of 20 years in prison and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the guilty plea entered before U.S. District Judge Gregory L. Frost.
According to court documents, between July 2007 and October 2010 Teach Tec was a corporation doing business in Columbus, Ohio. Gregory exercised control over all of Teach Tec’s business affairs, including approving payments made by Teach Tec and having control over Teach Tec’s bank accounts. Gregory was responsible for collecting, truthfully accounting for, and paying over Teach Tec’s payroll taxes to the IRS.
Teach Tec withheld payroll taxes from its employees’ paychecks, including federal income taxes and Federal Insurance Contributions Act taxes (FICA), but made only one small payment to the IRS, despite such payments being required on a quarterly basis.
Gregory willfully failed to account for and pay over to the IRS nearly all of the payroll taxes due and owing on behalf of Teach Tec and its employees. Specifically, Gregory failed to pay any of the payroll taxes due and owing to the IRS for the Second Quarter of 2010. Records reflect that for that quarter, Teach Tec owed $17,148.37 in Tax due and owing, however Teach Tec made no payment of taxes for that quarter. As a result of this scheme, the Department of Treasury, Internal Revenue Service, suffered a total tax loss of $1,136,292.34.
In December 2011 Gregory knowingly falsified and made a false entry in the employment records with the intent to impede, obstruct, and influence the investigation and the proper administration of a grand jury investigation.
Gregory provided false documents to the grand jury pursuant to a subpoena request in the investigation of Kevin Hightower. The false documents Gregory provided to the grand jury purported to explain several payments totaling $66,865.00 from Teach Tec to several entities controlled by Kevin Hightower and his associates. The records provided to the Grand Jury fraudulently claimed Teach Tec was paying Hightower and his associated companies for employing Teach Tec clients. In fact, none of the individuals named on the documents produced by Gregory to the Grand Jury were ever employed by Kevin Hightower or his related entities. Gregory in fact falsified these records to conceal the fact that he had assisted Kevin Hightower in withdrawing funds from the Fred D. Hightower Charitable Trust for his own personal use, rather than for charitable purposes.
“Business owners have an inescapable obligation to withhold income taxes for employees and remit those taxes to the IRS,” said Kathy A. Enstrom, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. "The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
This case is being prosecuted by Assistant U.S. Attorney Laura M. Fulton and was investigated by special agents of IRS-Criminal Investigation.
Brother of Former Country Club Hills Police Chief Pleads Guilty to Money Laundering, Obstruction of JusticeRead the Press Release
SPRINGFIELD, Ill. – Ricky McCoy, brother of Regina R. Evans, former police chief for Country Club Hills., Ill., appeared in federal court in Springfield today to enter pleas of guilty to one count each of money laundering and obstruction of justice in the federal investigation of a grant fraud scheme involving his sister. McCoy appeared this afternoon before U.S. District Judge Sue E. Myerscough in Springfield. Sentencing for McCoy is scheduled on Jan. 4, 2014.
McCoy was charged in March 2013, along with his sister, Regina Evans, 50. Regina Evans pled guilty last week, on Aug. 19, 2013, to obstruction of justice, witness tampering and conspiracy to obstruct justice and witness tampering. In addition, Evans pled guilty on June 17, 2013, to charges of fraud related to a $1.25 million state grant awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program that Evans owned with her husband, Ronald W. Evans, Jr. Ronald Evans has also pleaded guilty to the fraud scheme and is scheduled to be sentenced on Dec. 2, 2013. Regina Evans is scheduled to be sentenced in both cases on Oct. 15, 2013.
McCoy, who assisted the Evanses in the management of We Are Our Brother’s Keeper, admitted that he engaged in money laundering related to the grant funds in November 2009. McCoy admitted that he issued a check payable to himself, in the amount of $16,249, on behalf of We Are Our Brother’s Keeper, with the proceeds of the check deposited to an account controlled by the Evanses. Further, McCoy issued two additional checks, totaling $19,888, on behalf of We Are Our Brother’s Keeper, made payable to an associate of the Evanses, and $17,888 of the check proceeds were deposited to a bank account controlled by the Evanses.
McCoy further admitted that he participated with his sister Regina, and others to have a person identified as Individual A create a false story for law enforcement, the grand jury, and as a witness in a court proceeding, to falsely represent that the individual performed actual work under the grant awarded to We Are Our Brother’s Keeper. In fact, Individual A performed no such work and the checks issued to Individual A were merely a means to conceal grant funds converted to cash and returned to the benefit of the Evanses. The false story created for Individual A falsely represented that Individual A worked as a teacher under the grant, and instructed students on “soft skills,” to include manners, how to dress for an interview, how to groom themselves, how to behave in interviews and how to write a resume, when in fact, the story was false and intended to obstruct the investigation of the grant fraud.
At sentencing, the maximum statutory penalty for obstruction of justice and for money laundering is up to 20 years in prison.Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The ongoing investigation is being conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Berlin Man Charged with Marijuana Trafficking, Money Laundering and Tax EvasionRead the Press Release
BOSTON – A Berlin man was charged today with conspiring to distribute more than 1,000 kilograms of marijuana, as well as money laundering and tax evasion.
Eric W. Sliwa, 32, was indicted for conspiracy to possess with intent to distribute and to distribute more than 1,000 kilograms of marijuana, 29 counts of money laundering, filing false tax returns and corruptly endeavoring to impede the administration of the IRS.
The indictment alleges that from 2001 to 2012, Sliwa and others distributed large quantities of marijuana. In June 2006, Sliwa set up a company, EWS Gem Corp., for the purpose of concealing his drug proceeds and making it appear as though he had legitimate income. While Sliwa filed personal tax returns for the tax years 2008 through 2010, he failed to report all of the proceeds from his drug trafficking business. During the time period of the conspiracy, Sliwa purchased several assets including his home in Berlin, Mass., a condominium in Killington, Vt. and multiple vehicles. Sliwa also possessed nearly $500,000 in cash as well as a coin and precious metal collection worth approximately $370,000.
If convicted, Sliwa faces a minimum mandatory sentence of 10 years in prison and a maximum of life, a minimum of five years and up to a lifetime of supervised release, a fine of $500,000 or twice the value of the property involved in the money laundering transactions, and forfeiture of multiple assets including, but not limited to, his home in Berlin, multiple vehicles, nearly $500,000 in cash and his coin/precious metal collection.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Cory Flashner of Ortiz’s Worcester Branch Office.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Beardstown Man to Serve 12 ½ Years in Federal Prison for Methamphetamine Manufacturing ConspiracyRead the Press Release
Springfield, Ill. – Senior U.S. District Judge Richard Mills last week sentenced Clay Lewis, 38, of Beardstown, Ill., to 151 months (12 years, 7 months) in prison for conspiracy to manufacture methamphetamine, to be followed by eight years of supervised release. At the time of the offense, September 2012, Lewis was on probation for a prior state felony drug charge.
Lewis pled guilty on Apr. 23, 2013, to a single count of conspiracy to manufacture 50 grams or more of methamphetamine. In court documents and court hearings, Lewis admitted that on Sept. 14, 2012, when Illinois probation officers administered a drug test at his home, in the 200 block of Clay Street, there was an active meth lab in his garage along with various remnants of prior meth manufacturing activity as well as items commonly used to manufacture meth. Lewis admitted that he had frequently manufactured methamphetamine in his garage for a year, and that he used and sold the meth he cooked.
Lewis was arrested on Sept. 14, 2012, and has remained detained in the custody of the U.S. Marshals Service. Lewis was sentenced on Aug. 22, 2013.
On Sept. 19, 2013, Lewis’s co-defendant, Kyle Hogan, 30, also of the 200 block of Clay Street, Beardstown, Ill., is scheduled to be sentenced. On May 31, 2013, Hogan entered a plea of guilty to conspiracy to manufacture methamphetamine. Hogan has remained in the custody of the U.S. Marshals Service since his arrest, on Sept. 14, 2012.
The investigation was conducted by the Illinois State Police, the Beardstown Police Department, and the Drug Enforcement Administration with assistance from the Illinois Department of Corrections’ Probation Division. The case was prosecuted by Assistant U.S. Attorney Bryan D. Freres in cooperation with the Cass County State’s Attorney’s Office.
Bank Employee Charged in Fraud SchemeRead the Press Release
Horng Dai, a/k/a “James Dai,” 46, of Newtown, PA, was charged today by Indictment1 with seven counts of receipt of commissions or gifts for procuring loans, announced United States Attorney Zane David Memeger.
If convicted on all counts, the defendant faces a maximum possible sentence of 65 years imprisonment, a $2.5 million fine, not more than five years of supervised release and a $325 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Click here to view the indictment
1 An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525B. Todd Jones Sworn in as ATF DirectorRead the Press Release
B. Todd Jones received the ceremonial oath-of-office as Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) administered by Vice President Joe Biden at the White House today at 10:00 a.m. EDT. With his confirmation, Jones becomes the agency’s first permanent director in seven years. Jones takes over the law enforcement agency responsible for enforcing firearms and explosives laws that protect communities from violent criminals and criminal organizations.
“I congratulate Todd on being sworn in as the first-ever Senate-confirmed Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives,” said Attorney General Eric Holder. “I can think of no one better qualified to lead this critical agency, and to reinforce our shared commitment to the highest standards of professionalism and integrity in federal law enforcement. For decades, Todd’s career has been shaped by a remarkable dedication to public service, and a steadfast determination to do that which is just and right. I am confident that he will be a superb ATF Director, and look forward to continuing to work with him to protect the American people from violent crime.”
“Today is a historic day for ATF,” said ATF Director Jones. “The agency is now in line with its sister components and has been given the respect it deserves as a federal law enforcement agency with a permanent director. I want Americans to know, ATF is full of hard-working, devoted public servants who are committed to the mission of professional law enforcement. I will lead with the same enthusiasm and dedication that I see daily from the team tasked with protecting our communities from the most violent criminals.”
Jones has served as the acting ATF director since being appointed to the post on Aug. 31, 2011. While serving as the acting director of ATF, Jones was also the U.S. Attorney for the District of Minnesota, a post he held since Aug. 7, 2009. Jones served as both ATF Acting Director and U.S. Attorney until his confirmation as ATF Director.
ATF’s primary mission is to protect Americans from violent criminals and criminal organizations from the illegal use and trafficking of firearms and the illegal use and storage of explosives. ATF is also responsible for licensing persons engaged in manufacturing, importing, and dealing in firearms and explosives. Additionally, ATF investigates acts of arson and criminal bombings and the illegal diversion of alcohol and tobacco products.
In fiscal year 2012, ATF recommended 17,366 defendants for prosecution resulting in 7,210 convictions. Also in 2012, ATF industry operations investigators conducted 13,100 federal firearms licensee inspections and 5,390 federal explosives licensee inspections.
For more information about ATF and its programs, please visit: www.atf.gov.Attleboro Man Charged with Securities FraudRead the Press Release
BOSTON – Federal charges against an Attleboro man were unsealed today after his arrest this morning on securities fraud charges.
Robert Burton, 36, the Managing Director of Pinnacle Financial Consulting LLC, Pinnacle Strategic Investments LLC, and the Pinnacle Asset and Capital Management Group LLC, was arrested this morning after being charged yesterday for promoting various high-yield investments through Promissory Notes and Offering Memoranda. According to the complaint, Burton represented that he would return the principal invested within approximately 30 days, along with an interest payment equal to 100% of the amount invested. Burton did not make the promised payments and, in some instances, provided investors with checks that ultimately bounced.
The statutory maximum penalties for the securities fraud charges are 20 years in prison, followed by five years of supervised release and a $5 million fine. Burton made an initial court appearance today and will appear for a detention hearing on September 4 at 11:30 a.m.
U.S. Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Massachusetts Attorney General’s Office, which has a civil case pending against Burton, cooperated with the investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters of Ortiz’s Economic Crimes Unit.The details contained in the Complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in coordination with 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.
Army Soldier Pleads Guilty in Kentucky to Bribery Charges for Facilitating Thefts of Fuel in AfghanistanRead the Press Release
U.S. Army Sergeant Kevin Bilal Abdullah pleaded guilty today to bribery charges for his role in the theft of fuel at Forward Operating Base (FOB) Fenty, near Jalalabad, Afghanistan.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Kentucky David J. Hale.
Abdullah, 30, of Fort Campbell, Ky., pleaded guilty before U.S. District Judge Thomas B. Russell in the Western District of Kentucky to one count of conspiracy to commit bribery and one substantive count of bribery.
According to court documents, in approximately May and June 2010, Abdullah was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. As part of this process, documents generally described as “transportation movement requests” (TMRs or mission sheets) were created to authorize the movement of fuel.
According to court documents, Abdullah created fraudulent TMRs that purported to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. After the trucks were filled with fuel, the fraudulent TMRs were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint in order to justify the trucks’ departures from FOB Fenty. In truth, the fuel was simply stolen.
Abdullah pleaded guilty to receiving payments from a representative of the trucking company in exchange for facilitating the theft of approximately 25 truckloads of fuel. According to court documents, the loss to the United States as a result of the theft was in excess of $400,000.
Abdullah’s plea is the third guilty plea arising from this investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Abdullah, pleaded guilty to similar charges. On Oct. 10, 2012, Christopher Weaver also pleaded guilty to fuel theft charges. A fourth individual, Stephanie Charboneau, was indicted April 9, 2013, and is pending trial on fuel theft-related charges.
This case is being prosecuted by Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael A. Bennett of the Western District of Kentucky. This case was investigated by the Special Inspector General for Afghanistan Reconstruction; Department of the Army, Criminal Investigations Division; Defense Criminal Investigative Service; and FBI.
Angel Food Ministries Founder Wesley Joseph Wingo and His Son, Andrew Wingo, Each Sentenced to Seven Years in Federal PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Angel Food Ministries (AFM) Founder Wesley Joseph (Joe) Wingo, his son, Andrew (Andy) Wingo and his wife, AFM Co-Founder Linda Wingo were sentenced today by the Honorable C. Ashley Royal, Chief United States District Judge, for illegal financial activities involving AFM.
AFM, based in Monroe, Walton County, Georgia, was a nonprofit tax exempt 501(c) organization founded in 1994 by Defendants Joe and Linda Wingo. AFM’s primary stated mission was to provide food to the nation’s needy at discounted prices. After receiving almost $7 million in a low-interest community facilities direct loan from the United States Department of Agriculture in 2005, AFM purchased a large distribution center in Monroe, Georgia, and used its considerable purchasing power and its tax-exempt status to gain volume discounts from various food vendors. In the process of growing from a local, to a regional, to a national nonprofit organization, AFM utilized churches from around the country, known as host sites, to coordinate the charitable efforts of thousands of volunteers to distribute food to the needy in over forty states. The fact that AFM was tax exempt, that it was able to purchase in large volume at a discount, and that its distribution network was in large part manned by volunteer labor, resulted in a large amount of annual revenue, an amount well in excess of expenses.
Joe Wingo entered a plea of guilty on February 25, 2013, to one count of conspiracy to commit money laundering. As an AFM Founder, and its former President, Chief Operating Officer, and member of the Board of Directors, Joe Wingo oversaw all of the operations of AFM, which included his involvement in all aspects of the financial operations of AFM. Joe Wingo admitted that he used his position and control over AFM to make several purchases and expenditures for his personal benefit, including a classic car, without the knowledge and approval of the AFM Board of Directors. Mr. Wesley Joseph Wingo also permitted other members of his family to do the same on many occasions, only later to issue “bonuses” to family members in an effort to conceal misapplied AFM funds used to pay for personal expenses.Joe Wingo, age 64, of Good Hope, Georgia, was sentenced today by the Honorable C. Ashley Royal, Chief United States District Judge, in Macon, Georgia to serve 84 months in prison for conspiracy to commit money laundering. As a part of his sentence, he was ordered to forfeit $1,503,285.00 and to pay a $15,000.00 criminal fine.
Andy Wingo also entered a plea of guilty on February 25, 2013, to one count of conspiracy to commit money laundering. During his tenure with AFM, Andy Wingo held various titles including Chief Operating Officer and Head of Procurement. Andy Wingo admitted that while serving in these positions he used various illegal schemes to convert funds that belonged to AFM to his own personal benefit, including purchasing a new home for himself.
Andy Wingo, age 40, of Good Hope, Georgia, was sentenced today by the Honorable C. Ashley Royal, Chief United States District Judge, in Macon, Georgia to serve 84 months in prison for conspiracy to commit money laundering. As a part of his sentence, he was ordered to forfeit $2,400,000.00.
Mrs. Linda Wingo likewise entered a plea of guilty on February 25, 2013, to one count of misprision of a felony (having knowledge of but concealing the commission of a crime). Mrs. Wingo, along with her husband, Joe Wingo, was an AFM Founder. In her plea of guilty, she admitted that she was aware that AFM was generating more money than was needed to meet its overhead as the result of the illegal financial transactions that were being made by her son, Andy Wingo. She admitted to having knowledge that her son was obtaining money illegally from specific vendors doing business with AFM, and using it for personal benefit instead of providing services to the needy. Additionally, she admitted that when a search warrant was executed on AFM during the investigation, she attempted to conceal facts relating to these financial crimes.
Mrs. Linda Wingo, age 64, of Good Hope, Georgia, was sentenced today by the Honorable C. Ashley Royal, Chief United States District Judge, in Macon Georgia to a term of 5 years of probation for misprision of a felony. She was ordered to pay a $25,000.00 criminal fine.
United States Attorney Michael Moore said, “pure and simple, this case is about greed. The Wingos solicited donations of time from kind, goodhearted people in the name of God’s call for us to feed the hungry and help those in need. Then, instead of using that generosity to fill the pantries of the people they claimed to be called to minister to, the Wingos filled their garage with a classic automobile, their hangar with a private plane, and their pockets with cash. When people gave their volunteer labor to Angel Food Ministries because they believed they were supposed to help their fellow man, little did they know that they were supporting the Wingos’ lavish lifestyle. When I think about the people who didn’t get food because Mr. Wingo wanted a new car and a new plane, it is both sad and troubling that these individuals preyed on the goodness of the many God-fearing folks around the country who made donations of their time simply to enrich themselves.”
“The Wingos exploited family, friends and neighbors by perpetrating a scheme that was based on lies,” stated Veronica Hyman-Pillot, Special Agent in Charge, Internal Revenue Service, Criminal Investigation. “IRS-CI is committed to unraveling financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money. The sentences announced today reinforce the commitment by law enforcement and the United States Attorney’s Office that individuals who line their pockets with profits from fraudulent schemes will be held accountable.”
Mark F. Giuliano, Special Agent in Charge, Federal Bureau of Investigation Atlanta Field Office, stated "today's sentencings bring to a close an extensive and complex federal investigation involving, at its core, abuses of charitable activities related tax laws and diversion of funds derived from those charitable activities. In order for these various non-profit based laws to be able to provide benefit and relief to groups and organizations as intended, the FBI, in conjunction with its various law enforcement partners, is duty bound to investigate these types of allegations of criminal conduct within those organizations operating under non-profit status as Angel Food Ministries claimed to be."
The case was investigated by the Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Sharon T. Ratley, Danial E. Bennett, and Graham A. Thorpe.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Alleged Drug Traffickers IndictedRead the Press Release
PHILADELPHIA - A superseding indictment, filed August 21, 2013, was unsealed today charging Joseph Torres, 31, Bertin Sanchez, 29, Euddy Izquierdo, 31, and Frank Felix-Herrera, 49, all of Philadelphia, with membership in a conspiracy to distribute one kilogram or more of heroin, announced United States Attorney Zane David Memeger. All four defendants are charged as members of a conspiracy that allegedly distributed more than 500 kilograms of heroin produced by a Mexico-based heroin distribution organization. The drugs were sold and distributed in Philadelphia between the Spring of 2010 and July 19, 2013. Torres, Sanchez and are further charged with possession with intent to distribute, and aiding and abetting possession with intent to distribute 12 kilos of heroin, which was seized from the organization’s heroin stash house located at 3901 City Line Avenue. Izquierdo is charged with possession to distribute 21 kilos of heroin; and Felix-Herrera is charged with possession with intent to distribute 2 kilos of heroin.
The indictment further charges that defendant Torres coordinated and supervised the transportation and delivery of the from Mexico to Philadelphia where he oversaw distribution of kilogram quantities of heroin by defendant Sanchez. Torres also allegedly collected and supervised the storage, transportation and laundering of drug proceeds for the organization, accounted to the leaders of the organization, and ensured that drug proceeds were laundered transmitted, and transported to the leadership in Mexico using various money laundering techniques. It is further charged that Sanchez received, arranged and supervised the storage and distribution of kilogram to multi-kilogram quantities of heroin distributed by the Mexico-based organization’s Philadelphia distributors. It is alleged that at the time of defendant Sanchez’s arrest on July 19, 2013, Sanchez had recently distributed approximately 39 kilograms of heroin for the organization and was awaiting cash payments from Philadelphia area heroin distributors.
The indictment also alleges that defendant Izquierdo and Felix-Herrera served as distributors for the Mexico-based heroin trafficking organization and was responsible for the distribution of kilogram to multi-kilogram quantities of heroin in the Philadelphia area. At the time of Izquierdo’s arrest, he was found in possession of $105,118.56 representing alleged drug proceeds. The indictment further charges that Izquierdo also coordinated the transfer of heroin from Mexico and Chicago, Illinois to the Philadelphia region, using vehicles with concealed compartments intended for carrying drugs and drug proceeds.
According to the indictment, at the time of Torres’ arrest on July 19, 2013, at an apartment at 7801 Roosevelt Boulevard, agents found $19,319 in alleged drug proceeds, as well as a smashed electronic money counter and a heat sealer used in the packaging of drug proceeds. In addition, Torres was found to be in possession of a black Saturn automobile which contained a hidden, electronically controlled compartment that contained $89,920 in United States currency.
If convicted of all charges, each of the defendants faces a maximum penalty of life in prison with a mandatory minimum term of 10 years, at least five years of supervised release, and a fine of up to $20 million.The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alleged Colombian Drug Kingpin Extradited to the United States to Face Drug ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the extradition of Diego Perez Henao, a/k/a “Diego Rastrojo.” Perez Henao, 42, a Colombian national who has been in custody awaiting extradition since his capture in Venezuela in June 2012, was extradited from Colombia on Wednesday, August 28, 2013. He made his initial appearance in federal court in Miami on Thursday, August 29, 2013.
Perez Henao was indicted by a federal grand jury on February 8, 2011, and is charged with conspiring with others to manufacture and distribute five or more kilograms of cocaine from 1993 until February 2011, knowing that the cocaine would be unlawfully imported into the United States. If convicted, Perez Henao faces a statutory mandatory minimum sentence of ten-years in prison and a potential maximum sentence of life.
On January 30, 2013, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Perez Henao as a Specially Designated Narcotics Trafficker (SDNT). According to OFAC, Perez Henao’s drug trafficking organization was responsible for both supplying and shipping numerous multi-ton loads of cocaine from South America to Central America and Mexico with an eventual destination of the United States. In addition, Perez Henao is identified as one of the primary leaders of one of the largest and most influential narco-trafficking organizations which has filled the power void following the fall of the Norte Valle Cartel and the dissolution of the Autodefensas Unidas de Colombia.
U.S. Attorney Wifredo A. Ferrer stated, “Perez Henao’s extradition not only demonstrates our unwavering commitment to stemming the flow of cocaine into the United States at the source, but also illustrates the strong partnerships we have maintained with our law enforcement counterparts around the world.”
“The collaboration between the United States and the Colombian government has been essential in the arrest and extradition of the notorious Rastrojos leader, Diego Perez-Henao, to the United States,” said DEA Special Agent in Charge Mark R. Trouville. “The DEA will continue to join forces with our foreign law enforcement partners to bring high level narco- traffickers to justice.”
“This is an outstanding example of an international partnership, this time with the Colombian National Police, that disrupted a major drug organization,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “Henao’s drug trafficking enterprise knew no boundaries reinforcing the FBI’s commitment to working with law enforcement agencies around the world.”
The indictment of Perez Henao is the result of Organized Crime Drug Enforcement Task Force (OCDETF) led by the DEA and FBI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commends the outstanding investigative efforts of DEA, FBI and their Colombian law enforcement partners. The case is being prosecuted by Assistant United States Attorney Adam Fels.
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Advance Pay Scheme Defendant Pleads Guilty to Multi-million Dollar Fraud of EntrepreneursRead the Press Release
PHILADELPHIA - Andrew Bogdanoff, 66, of Scottsdale, Arizona, pleaded guilty today to charges stemming from an advance fee scheme that defrauded hundreds of victims searching for commercial financing. The scheme defrauded more than 800 victims out of more than $10 million. Bogdanoff pleaded guilty to conspiracy to commit mail and wire fraud, mail fraud, wire fraud, money laundering, conspiracy to defraud the United States, and filing false tax returns. He faces an advisory sentencing guideline range of at least 121 months to 151 months in prison. A sentencing hearing is scheduled for December 4, 2013.
Charged in the 33-count indictment with Bogdanoff were Matthew McManus, 44, of Glenside, Pennsylvania, Shayne Fowler, 28, of Scottsdale, Arizona, Joel Nathanson, 26, of San Diego, California, Frank Vogel, 48, of Rochester Hills, Michigan, and Aaron Bogdanoff, 25, of Scottsdale, Arizona.
Andrew Bogdanoff was the founder and chairman of Remington Financial Group (later renamed Remington Capital) and ran the company with defendant McManus until 2008 in Arizona and Pennsylvania. After McManus left the company in 2008, defendant Fowler replaced McManus as Bogdanoff’s right-hand man. Defendant Nathanson was one of Remington’s most proficient employees and helped Remington defraud many victims. Defendant Vogel was a Michigan-based broker who referred numerous victims to Remington in exchange for large kickbacks.
Between 2005 and 2011, the defendants fraudulently induced hundreds of people to pay Remington fees in excess of $10,000 a piece, based on false representations that Remington had lenders and/or investors ready to provide financing for the victims’ projects. To facilitate this fraud the defendants issued each victim a “letter of interest,” commonly referred to as an LOI. Almost every LOI Remington issues stated that Remington had a lender or investor interested in financing the victim’s project. Remington issued an LOI to every victim even though no Remington employee had spoken to any funding source and Remington knew that it was unlikely to find funding for the project.
The LOI was written to fraudulently lead victims to believe that Remington was either a lender or had spoken to lenders that had already expressed interest in the customer's project when neither was true. Additionally, the financing terms Remington included in the LOI were unrealistic and were used solely to induce customers to pay Remington's advance fees. In addition to the false representations in the LOI, the defendants and other Remington employees allegedly also told victims the following lies to further induce victims to pay Remington’s fees: a) Remington had five investors or lenders interested in their project; b) Remington was the actual lender for the project; c) Remington funded or “closed” 80 percent of its deals; d) the victim would get funding for the project once the advance fee was paid and/or; e) Remington would provide funding through its funding source Northbridge.
After a customer paid Remington’s fee, McManus and Andrew Bogdanoff instructed Remington employees to find problems with the projects so that Remington could blame its failure to provide financing on the victim. The defendants did this to help protect Remington from civil and criminal complaints.
Some of the defendants used sophisticated means to perpetuate the fraud. For instance, in 2010, defendants Fowler and Andrew Bogdanoff used Remington’s website to advertise an anti-fraud policy and stated falsely that Remington had recently provided information to the Federal Bureau of Investigation and local law enforcement authorities about a suspected email scam. Remington posted this information to ensure that if potential customers used an internet search engine to search for allegations about Remington's fraud they would be directed to Remington's website, rather than third-party internet sources that contained negative information about Remington.
Co-defendants Joel Nathanson and Shayne Fowler have pled guilty and are awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division with assistance from the Pennsylvania Securities Commission. It is being prosecuted by Assistant United States Attorney David Axelrod.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Abercia and Other Former Officials ConvictedRead the Press Release
HOUSTON – Former long-time Harris County Precinct One Constable Jack Abercia has been convicted on 11 counts of exceeding authorized computer access, United States Attorney Kenneth Magidson announced today along with FBI Special Agent in Charge Stephen L. Morris. Also entering guilty pleas today were Weldon Kenneth Wiener, his former chief lieutenant, and Michael Butler, his former office chief. Weiner and Butler were convicted on one count of conspiracy.
The three Houston residents were charged in an indictment returned Tuesday, Jan. 10, 2012.
Today, Abercia admitted as part of his plea that he unlawfully accessed the National Crime Information Center (NCIC) database on multiple occasions for private financial gain at the time he served as Harris County Precinct One Constable. NCIC is restricted to genuine law enforcement purposes. Users must undergo training and screening, have passwords that are monitored and are instructed that the database is not to be used for non-law enforcement reasons nor beyond in the performance of their official duties. Abercia was convicted of 11 specific acts of unauthorized access or access in excess of official authority in November 2011, but court documents allege the practice had been occurring in the office for a longer period of time.
The investigation revealed Abercia performed background checks for various contractors in return for money. Weiner and Butler admitted they conspired to perform those background checks. On one occasion, Abercia was approached and offered $3000 for having computer searches conducted on four prospective employees. Weiner was also at that meeting. After receiving the money, Abercia said, “God willing, this money will go towards my elevator.” The factual basis in support of the plea indicated he had been considering having an elevator installed in his residence for health reasons, but never did so.
Abercia offered to arrange for more searches but stated that Weiner must be paid as well.In total, Abercia received $9000, while Weiner was paid $1000 for his part in having the NCIC searches conducted.
Butler admitted as part of his plea that he was informed of an improper search and had a duty to report, but failed to do so.
U.S. District Judge Keith P. Ellison, who accepted the guilty pleas, has set sentencing for Nov. 26, 2013. At that time, Abercia faces up to five years in federal prison for each count of exceeding authorized computer access. For their conspiracy convictions, Weiner and Butler also face up to five years imprisonment. All counts also include a possible fine of $250,000.
They were permitted to remain on bond pending their sentencing hearing.
This case was investigated by the FBI Houston Law Enforcement/Border Corruption Task Force with special assistance from the Houston Police Department - Internal Affairs Division and the Texas Rangers and is being prosecuted by Assistant U.S. Attorney Michael Wynne.
Wednesday 28 August 2013
York Man Sentenced to 20 Years in Prison for Violent Armed Carjacking That Left the Victim ParalyzedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ronald Darnell Sweeney, Jr., age 21, was sentenced today to 240 months’ (20 years) imprisonment by U.S. District Court Judge John E. Jones, III, for the violent armed carjacking that left the victim paralyzed below the waist. Judge Jones further ordered that Sweeney serve three years of supervised release. The request for restitution has been deferred for 90 days.
According to United States Attorney Peter J. Smith, on October 5, 2011, Sweeney entered the passenger side of a vehicle parked a few blocks away from an elementary school in which the victim was awaiting the dismissal of a school child. Sweeney pointed a handgun at the victim and instructed the victim to give up the vehicle. The victim fled the vehicle with the vehicle keys in-hand, and ran down the street calling for help. Sweeney chased the victim, then pushed the victim face down onto the ground, grabbed the vehicle keys and shot the victim in the back. Sweeney then fled the scene.
The victim is now a paraplegic due to the injuries sustained from this shooting.
At the sentencing hearing, Assistant U.S. Attorney Joseph J. Terz said, “On October 5, 2011, Mr. Hernandez left his home in York to pick up his grandson at school. When his grandson left school that day, Mr. Hernandez was not there to greet him. Instead, a few blocks from the school, Mr. Hernandez lay face down on a concrete sidewalk bleeding, a bullet in his back and paralyzed. Today, Ronald Sweeney, appears before this court to be sentenced to a term of imprisonment of 20 years. The bitter reality is that Mr. Hernandez has already been sentenced. On October 5, 2011, the defendant, Ronald Sweeney, sentenced Mr. Hernandez to life in a wheelchair.”
Sweeney was indicted in June 2012 and entered a binding plea agreement in January 2013 in which he agreed to plead guilty and serve a 240 month prison sentence.
The case was investigated by the FBI and the York Police Department. Prosecution was handled by Assistant U.S. Attorney Joseph J. Terz.
Woodstock, Vermont Restaurant Mon Vert Cafe Takes Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that the owners of Mon Vert Café and the building in which it is located at 67 Central Street Woodstock, Vermont have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of Mon Vert Café.
An onsite survey of Mon Vert Café performed by United States Department of Justice architects revealed ADA compliance issues related to the restaurant’s entrance and toilet room. Mon Vert Café will remedy the agreed upon ADA compliance issues by November 30, 2013.
Mon Vert Café’s owners and the owner of the building in which Mon Vert Café is located recognized their obligation to address the issues identified in the onsite survey. Laura Miller and Cameron Reed, owners of Mon Vert Café, and John Reed, owner of 67 Central Street, are to be commended for their cooperation with the Office of the United States Attorney.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Woodbridge Doctor Pays $45,000 to Settle Allegations Under the Controlled Substances ActRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that AVIJIT MITRA, M.D., with an office at 270 Amity Road in Woodbridge, has entered into a civil settlement agreement with the government in which he will pay $45,000 to resolve allegations that he violated civil provisions of the Controlled Substances Act.
The allegations against MITRA involve claims that he wrote 13 prescriptions that were outside the normal scope of his medical practice. The prescriptions were for Opana and Oxycontin, both Schedule II controlled substances.
Congress, with the passage of the Controlled Substances Act, took steps to attempt to create “a closed system” of distribution for controlled substances in which every facet of the handling of the substances, from their manufacture to their consumption by the ultimate user, was to be subject to intense governmental regulation. This mission was taken against the backdrop of trying to prevent the diversion and abuse of legitimate controlled substances while at the same time ensuring an adequate supply of those substances needed to meet the medical and scientific needs of the United States.
This investigation was conducted by investigators from the Drug Enforcement Administration’s Office of Diversion Control in Rocky Hill, the Drug Control Division of Connecticut’s Department of Consumer Protection, and the Clinton Police Department. The prosecution was led by Assistant U.S. Attorney Alan M. Soloway.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Wood County Man Guilty of East Texas Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 40-year-old Mineola, Texas man has pleaded guilty to drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Larry James Hooks, Jr., pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, on July 19, 2012, Hooks conspired with others to acquire and distribute methamphetamine in the Eastern District of Texas and elsewhere. Hooks admitted to being responsible for assisting in the distribution of more than 34.8 grams of pure methamphetamine. A federal grand jury returned an indictment on Mar. 27, 2013, charging Hooks and two others with drug trafficking violations.
Hooks faces a minimum of five years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Drug Enforcement Administration and the Canton Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Wood County Gun Dealer Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 45-year-old Yantis, Texas woman has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lucretia Beth Brown pleaded guilty on Feb. 14, 2013, to conspiracy to deal firearms without recording the without keeping records and was sentenced to 24 months in federal prison today by U.S. District Judge Leonard Davis.
Co-defendant Andrea Jaine Burns London, 51, of Yantis, pleaded guilty on Apr. 9, 2013, to the same charges and is awaiting sentencing.
Brown and London were indicted on July 11, 2012, and charged with gun trafficking violations. Federal agents executed search warrants at their home and business in November 2011. A warrant was issued for their arrest, but it was soon discovered that the pair had left the United States for the Philippines in February 2012. Assistance was requested from the International Investigations Branch and a lead was sent to the Diplomatic Security Service in Manila. On Oct. 9, 2012, Philippine Immigration Agents arrested London and Brown in Cebu without incident. Both subjects were transported to Manila to begin the deportation process. On Nov. 8, 2012, London and Brown were escorted by Philippine Immigration Agents from Manila to Los Angeles where they were taken into custody by the Pacific Southwest Regional Fugitive Task Force.
According to information presented in court, from January 2011 to July 2011, London and Brown transported guns from the inventory of Lake Fork Gunslinger & Outdoors in Emory, Texas, to gun shows in Oklahoma, Missouri, and Arkansas, and then sold the guns without properly recording the name, age, and place of residence of the buyers. Brown was also ordered to forfeit approximately 140 firearms from the dealership’s inventory.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Jim Noble.West Plains Man Sentenced to 12 Years in Prison for Receiving Child Porn over the InternetRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a West Plains, Mo., man was sentenced in federal court today for receiving child pornography over the Internet and for possessing child pornography.
Scott Allen Johnson, 26, of West Plains, was sentenced by U.S. District Judge Greg Kays to 12 years in federal prison without parole. The court also ordered Johnson to pay $5,000 in restitution to two of the victims portrayed in the images of child pornography (or $3,000 in restitution if the amount is paid within 30 days). Johnson, who pleaded guilty on Jan. 17, 2013, must also forfeit to the government the laptop computer that was used to commit the offenses.
An officer with the Southwest Missouri Cyber Crimes Task Force identified Johnson’s computer as sharing images of child pornography on a peer-to-peer file-sharing network on Dec. 30, 2011. The officer connected with Johnson’s computer on the network again on Jan. 9, 2012 and was able to determine that he had 322 files available for sharing, of which 139 were identified as known files depicting child sexual abuse. Officers executed a search warrant at Johnson’s residence on Feb. 9, 2012 and seized a laptop computer, four computer towers and 42 optical media disks.
Investigators found approximately 219 images and 46 movie files of child pornography on the laptop computer. The ages of the child victims ranged from 2 to 12, and the images depicted scenes of sexual intercourse, oral sex, anal sex, child bondage, bestiality and nudity.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force (SWMCCTF), the Cassville, Mo., Police Department and the Howell County, Mo., Sheriff’s Department.
Project Safe Childhood
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."Wakpala Woman Sentenced on Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wakpala, South Dakota, woman convicted of Assault Resulting in Serious Bodily Injury was sentenced on August 23, 2013, by U.S. District Judge Charles B. Kornmann.
Adrienne Kills Small, age 36, was sentenced to 15 months of imprisonment, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Kills Small was indicted by a federal grand jury in February of 2013. She pled guilty on May 20, 2013.
The conviction stems from an incident on January 20, 2013, when Kills Small was home socializing with the victim, among others. Kills Small and the victim had previously been in a dating relationship and they have two children together. A fight broke out between the victim and Kills Small’s current boyfriend and Kills Small grabbed a knife and stabbed the victim multiple times. As a result of the assault, the victim sustained serious bodily injury.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The case is being prosecuted by Assistant U.S. Attorney Troy R. Morley.
Kills Small was immediately turned over to the custody of the U.S. Marshals Service.Wakpala Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Juan A. Valadez, Jr., age 20, of Wakpala, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on August 23, 2013, and pled guilty to a Superseding Information that charged him with Assaulting, Resisting and Impeding a Federal Officer.
The maximum penalty upon conviction is 8 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident wherein a Bureau of Indian Affairs (BIA) officer received a call regarding a high speed pursuit which had originated in Mobridge, South Dakota, and was heading onto the Standing Rock Sioux Tribe Reservation. The officer located the vehicle and joined in the pursuit at speeds in excess of 90 miles per hour. The Defendant eventually turned onto a field and was pursued by the BIA officer, where the the Defendant’s car and the officer’s car came into physical contact with one another.
The investigation was being conducted by the BIA Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Valadez was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for November 18, 2013.United States Settles False Claims Act Allegations Against Billing ManagerRead the Press Release
SAN FRANCISCO – A billing manager, her billing company, and her son have agreed to pay $1.7 million to settle allegations that they violated the civil False Claims Act in connection with claims submitted to the Department of Labor, Office of Workers’ Compensation Programs (DOL-OWCP), United States Attorney Melinda Haag announced.
The settlement resolves a whistleblower lawsuit filed in the United States District Court for the Northern District of California. In July 2012, the United States settled with six other defendants for $3.15 million -- Advanced Physical Medicine & Rehab Group Inc. (located in Oakland, Calif. and Rhonert Park, Calif.), Advanced Occupational Rehabilitation, Inc. (located in Oklahoma), Advanced Medicine and Rehabilitation of Texas, Inc. (located in Texas), Advanced Medicine and Rehabilitation of Texas, P.A. (located in Texas), and the two physicians located in Oakland who own these clinics. The remaining three defendants – Farideh Heidarpour, her billing company A.B.C. Billing Inc., and her son Ali Heidarpour (who was also her employee) – will pay an additional $1.7 million.
The United States alleges that, from 2005 through 2008, Heidarpour, her company, and her son submitted or caused to be submitted to DOL-OWCP false claims by the clinics for supplies and services not provided, not supported by medical documentation and/or not medically necessary, resulting in millions of dollars of damages to the United States. The majority of the patients at issue were United States Postal Service (USPS) employees claiming work-related injuries.
“This settlement demonstrates this office’s continued commitment to protecting the federal health care programs from fraud and false claims,” U.S. Attorney Haag, said.
A physician who formerly worked at the clinic in Texas filed the case pursuant to the qui tam provisions of the False Claims Act. Under those provisions, private citizens, called “relators,” may file lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment. The relator will receive $323,000 as her share of the government’s recovery from the three defendants. This is in addition to the relator’s share of $598,000 from the earlier settling defendants.
Assistant U.S. Attorneys Sara Winslow and Melanie Proctor handled the matter on behalf of the U.S. Attorney’s Office for the Northern District of California, with assistance from Financial Fraud Investigator Michael Zehr and Legal Assistants Yvette Baird and Kathy Terry. The matter was investigated by DOL-OWCP and the USPS Office of Inspector General.
(Settlement Agreement Heidarpour Executed )
(Settlement Agreement Heidarpour Exhibits )
Two Individuals Charged in Fraudulent Invoice SchemeRead the Press Release
Wifredo A Ferrer, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Francis Maikisch, 49, of Pembroke Pines, and Angel Moran, 46, of Miami, were charged in a 23-count indictment with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, wire fraud, in violation of Title 18, United States Code, Section 1343, and money laundering, in violation of Title 18, United States Code, Section 1957. The indictment also seeks the forfeiture of up to $1,999,414.14, the amount of currency involved in the wire fraud and money laundering offenses.
According to the indictment, Maikisch worked for TracFone Wireless, Inc., as a freight supervisor from June 2008 through November 2012. And, between November 16, 2010 and August 28, 2012, Maikisch intentionally caused TracFone to pay, by wire transfer, Moran’s freight company for false and fraudulent invoices submitted by Moran for fictitious shipments. As further alleged in the indictment, TracFone paid Moran’s freight company $1,999,414.14 for the false and fraudulent invoices.
If convicted, the defendants face a possible statutory maximum sentence of up to 20 years in prison as to each count of wire fraud and conspiracy to commit wire fraud, and 10 years as to each count of money laundering.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Elijah A. Levitt.
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.
Two Former New Jersey Residents Plead Guilty to Multiple Armed Robberies in Luzerne, Schuylkill and Carbon CountiesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that two former New Jersey residents pleaded guilty today before Magistrate Judge Karoline Mehalchick and admitted to participating in multiple armed robberies of stores and businesses located in Luzerne, Schuylkill and Carbon Counties between December of 2011 and February of 2012.
According to United States Attorney Peter J. Smith, Tysheed Hargrove, age 20, also known by the "street-name" "Sincere," formerly of Newark, New Jersey, admitted to 11-counts of interference with commerce by robbery and aiding and abetting.
Specifically, Hargrove admitted to robbing the following institutions:
- Convenient Mart, 51 West Juniper Street, Hazleton, on December 21, 2011;
- Turkey Hill, 70 Station Circle, Hazle Township, on December 24, 2011;
- Unimart, Route 940, Foster Township, on January 5, 2012;
- Turkey Hill, 800 Alter Street, Hazleton, on January 6, 2012;
- Turkey Hill, 800 Alter Street, Hazleton, on January 10, 2012;
- Fegley's Mini-Mart, 30-32 Center Street, Tamaqua, on January 20, 2012 ;
- Fegley's Mini-Mart, 146 South Kennedy Drive, McAdoo, on January 26, 2012;
- Wawa, SR 940, White Haven, on January 29, 2012;
- Turkey Hill, 205 Claremont Avenue, Hometown, on February 3, 2012;
- Unimart/Exxon, 541, Altamont Boulevard, Frackville, on February 3, 2012; and
- Fegley's Mini-Mart/Dunkin Donuts, 30-32 Center Street, Tamaqua on February 5, 2012.In addition, Jose Nunez, age 20, also known by the "street-name" "Skillz," formerly of Newark, New Jersey, pleaded guilty to aiding and abetting Hargrove in the following seven robberies:
- Convenient Mart, 51 West Juniper Street, Hazleton, on December 21, 2011;
- Turkey Hill, 70 Station Circle, Hazle Township, on December 24, 2011;
- Unimart, Route 940, Foster Township, on January 5, 2012;
- Fegley's Mini-Mart, 146 South Kennedy Drive, McAdoo, on January 26, 2012;
- Wawa, SR 940, White Haven, on January 29, 2012;
- Turkey Hill, 205 Claremont Avenue, Hometown on February 3, 2012; and
- Unimart/Exxon, 541, Altamont Boulevard, Frackville on February 3, 2012;Magistrate Judge Mehalchick ordered that presentence investigations be conducted by the United States Probation Office. Sentencing will be scheduled at a future date before Senior United States District Judge Richard P. Conaboy.
The investigation was conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, and numerous local law enforcement agencies, including the Hazleton, Tamaqua, McAdoo, Kidder Township, Rush Township and Nesquehoning Police Departments, and the Luzerne County, Schuylkill County and Carbon County District Attorney's Offices.
Prosecution has been assigned to Assistant U.S. Attorney Robert J. O'Hara.
****Twenty-month Sentence for Westerville Jewelry Store Owner for Tax EvasionRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Elie J. Hannoush, 41, of Westerville, Ohio was sentenced in U.S. District Court today to 12 months and one day in prison followed by eight months of home confinement and ordered to pay $91,140.46 in restitution to the IRS for failing to report income he received from the jewelry stores he owns, Farah Jewelers, from 2005 through 2008.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office announced the sentence handed down today by Senior U.S. District Judge George C. Smith.
Hannoush pleaded guilty in November 2012 to one count of tax evasion and one count of failure to report cash payments greater than $10,000 received in a business.
According to court documents, Hannoush often accepted large cash payments from his customers, but failed to report the cash he received as income. Hannoush also admitted he kept a separate accounting system for the cash receivables. Hannoush also admitted he would structure cash receipts by breaking receipts greater than $10,000 into small receipts in order to evade federal cash reporting requirements.
Hannoush admitted that he did not report almost $300,000 in cash from the business. When he filed his federal income tax return for 2006, he reported an income of $27,054 and claimed he was due a $30 refund. His real taxable income for 2006 was $194,817.10 and he owed taxes of $35,188.79 for that year.
U.S. Attorney Stewart commended the investigation by IRS Special Agents and Financial Crimes Chief Brenda Shoemaker, who prosecuted the case.
# # #Texas Man Pleads Guilty in Idaho Federal CourtRead the Press Release
Admits Conspiring to File False Claims for IRS Tax Refunds Agreed to Pay Restitution of $1,466,799
POCATELLO – Lawrence Sikutwa, 34, of Dallas, Texas, pleaded guilty today in United States District Court to conspiracy to file false claims for a refund, U.S. Attorney Wendy J. Olson announced. Sikutwa entered his plea before U.S. Magistrate Judge Ronald E. Bush at the federal courthouse in Pocatello.
According to the plea agreement, Sikutwa operated a tax preparation business in Dallas. He entered into an agreement with various co-conspirators in Pocatello and elsewhere to solicit clients for him. The co-conspirators contacted persons who needed tax preparation services, obtained their tax documents from them, and then shipped the information to Sikutwa to prepare the tax returns. Sikutwa added false dependents and false income, falsely claimed head-of-household status, and made other entries to increase the amount of the refund. According to the plea agreement, Sikutwa distributed a small portion of the actual refund to the taxpayer, representing it was the entire refund, and failed to provide copies of the returns to the taxpayers. Sikutwa admitted that he was aware the tax returns were false.
According to the plea agreement, during 2006, Sikutwa filed 168 tax returns for tax year 2005, resulting in refunds of $654,368. In 2007, he filed 124 tax returns for tax year 2006, resulting in refunds of $588,982. Under the name of Harris Tax Services, Sikutwa prepared and filed 99 returns for tax year 2007, resulting in refunds of $456,888. According to the plea agreement, Sikutwa will pay $1,466,799 in restitution to the Internal Revenue Service.
The charge of conspiracy to file false claims for refund is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sikutwa is set for sentencing on November 18, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by Internal Revenue Service-Criminal Investigation.
Tax Preparer, Lekeith Robinson, Sentenced for Filing False Income Tax ReturnsRead the Press Release
LEKEITH ROBINSON, age 31, of New Orleans, Louisiana, was sentenced in federal court today by U.S. District Judge Susie Morgan for filing false claims against the United States, announced U. S. Attorney Dana Boente. The defendant was sentenced to 21 months incarceration, 2 years of supervised release, and ordered to pay $93,804.13 in restitution to the IRS.
According to court documents, ROBINSON owned and operated a tax preparation business called Solid Rock II, Inc. Between February 2009 and May 2010, the defendant prepared fraudulent tax returns in the names of others seeking tax refunds totaling approximately $93,804.43. The tax returns were false in that they contained false dependent information and false household income.
The case was investigated by the Internal Revenue Service and prosecuted by Assistant U.S. Attorney G. Dall Kammer.
Sweetwater Police Detective Arrested for Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the arrest of William Garcia, a detective with the Sweetwater Police Department, for alleged use of a counterfeit access device and aggravated identity theft.
The complaint charges Garcia with a single count of use of a counterfeit access device, in violation of Title 18, United States Code, Section 1029(a)(1), and a single count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). If convicted, Garcia faces a possible maximum sentence of five years’ imprisonment as to the counterfeit access device violation, and a two year mandatory minimum sentence of imprisonment as to the aggravated identity theft violation.
According to the facts alleged in the complaint, Garcia participated in a counterfeit credit card scheme in late 2010 through 2011. Garcia’s criminal activities included providing his own credit card for use in manufacturing fraudulent credit cards, hiding evidence when he learned a co-conspirator had been arrested, and ultimately possessing and using counterfeit cards that Garcia claimed had been seized during the course of his duties.
Mr. Ferrer commended the investigative efforts of the FBI led Miami Area Corruption Task Force. This case is being prosecuted by Assistant U.S. Attorney Anthony LaCosta.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
St. Francis Woman Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Racine Whirlwind Soldier, a 28-year-old woman from St. Francis, South Dakota, pled guilty to Assault by Striking, Beating and Wounding and Simple Assault and was sentenced on August 26, 2013, by U.S. Magistrate Judge Mark A. Moreno. She was sentenced to 18 months of probation on each count, to be served concurrently; $239.70 in restitution; and a $35 assessment to the Federal Crime Victims Fund.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
On August 3, 2012, Whirlwind Soldier’s co-defendant, Kelcey Andrews, reached into the front passenger window of a car in which the victim, a minor, was located and punched the victim in the face and grabbed the victim by the hair. Whirlwind Soldier threw a beer bottle into the car and cut the victim below her eyebrow, which required four sutures. The victim was injured as a result of the unlawful conduct of Whirlwind Soldier and Andrews.Slidell Woman, Nicole Nicholas, Guilty of ForgeryRead the Press Release
NICOLE NICHOLAS, age 39, a resident of Slidell, Louisiana, pled guilty today in federal court before U.S. District Court Judge Jay C. Zainey to forgery, announced U. S. Attorney Dana Boente.
According to court documents, NICHOLAS was employed by Company "A" from 1999 until June 22, 2010. NICHOLAS was in charge of the accounting, banking and finances, including the accounts payable, of the business conducted by Company "A." On May 22, 2009, the defendant intentionally possessed a $3,398.09 counterfeit check of Company “A” and used it to pay for private school tuition.
NICHOLAS faces a maximum term of imprisonment of ten years, as well as a fine of $250,000 and three years of supervised release following any term of imprisonment.
The case was investigated by the Special Agents of the Federal Bureau of Investigation and the prosecution is being handled by Assistant U.S. Attorney Jon Maestri.
(Download Factual Basis )
Six Face Federal Charges in Bank Fraud Scheme Using Car BurglariesRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – Six individuals have been indicted in connection with a bank fraud scheme operating in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
An 11-count indictment was returned by a federal grand jury on Aug. 15, 2013, charging six individuals in the scheme. The indictment specifically charges one count of conspiracy to commit bank fraud and 10 counts of aggravated identity theft. Those named in the indictment include:
Craig Dwayne Tobias, 33, of Fort Lauderdale, Florida;
Keevan Iszeal Coney, 22, of Fort Lauderdale;
Makeisha Ann Williams, 36, of Garland, Texas;
Antonio Perez Barfield, 29, of Fort Pierce, Florida;
Atamian Rajuan Johnson, 31, of Rivera Beach, Florida; and
Misty Dawn Hendrix, 37, of Seagoville, TexasAccording to the indictment, the defendants are alleged to have devised a scheme in which they stole bank checks, bank cards, and personal identification cards from locations such as daycare facilities, gyms, and public parks throughout the Metroplex area and elsewhere. The thefts were typically from motor vehicles and were made via forcible entry. The stolen bank cards were usually used within minutes of the theft, often at gas stations, convenience stores, or retail stores. The bank checks were cashed at banks in Denton, Irving, Bedford, Grapevine, Mesquite, Garland, and Dallas using drive thru teller lanes and rented vehicles.
Hendrix and Williams appeared before U.S. Magistrate Judge Don Bush for an initial appearance on Aug. 26, 2013. Tobias, Johnson and Coney appeared before Judge Bush on Aug. 27, 2013. Barfield remains at large.
If convicted of the conspiracy charge, the defendants face up to 30 years in federal prison. They face an additional two years in federal prison for each of the aggravated identity theft charges.
This case is being investigated by the Federal Bureau of Investigation and the Plano Police Department with assistance from various agencies throughout the area. This case is being prosecuted by Assistant U.S. Attorney Chris Eason.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of lawRegistered Sex Offender Charged with Producing Child PornographyRead the Press Release
HOUSTON – Donald Post, of League City, 68, has been indicted for production and distribution of child pornography involving a four-year-old minor female, United States Attorney Kenneth Magidson announced today. The indictment was returned late this morning by a Houston federal grand jury.
Post was arrested on Aug. 8, 2013, based on a criminal complaint and appeared before U.S. Magistrate Judge John Froeschner in Galveston on Aug. 13 for a detention hearing. At that time, the court found there to be probable cause he committed the crimes and that Post, allegedly a registered sex offender, was a danger to the community and a flight risk. He was subsequently ordered into custody pending further criminal proceedings.
The criminal complaint alleges the four-year-old female victim was photographed in lewd and lascivious poses. Post then allegedly distributed these images via the Internet. According to the charges, Post authored a document which not only detailed the production of the child pornography but chronicled his molestation of this very young victim. The account of the incident is incredibly graphic, according to allegations, and makes references to his prior acts of molestation for which he was convicted and subsequently ordered to register as a sex offender.
If convicted, Post faces a minimum of 15 and up to 50 years imprisonment for the production charge as well as a minimum of 10 and up to 40 years imprisonment for distribution of child pornography. If convicted on either of these charges and the court finds he was in fact a registered sex offender at the time of the offense, he may also face another 10-year prison term that must be served consecutively to any other sentence imposed. Both convictions also carry as possible punishment a maximum fine of $250,000. Upon completion of any prison term imposed, he also faces a maximum of life on supervised release and he will again be required to register as a sex offender.
This case, investigated by the FBI and prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.RPM International, Inc. and Tremco Inc. Pay Nearly $61 Million for Failing to Provide Government Discounts Provided to OthersCompanies Allegedly Submitted False Claims Under Defectively-Priced Roofing ContractsRead the Press Release
WASHINGTON – Ohio-based RPM International Inc. and its subsidiary, Tremco Inc., have paid $60.9 million to resolve allegations that Tremco filed false claims in connection with two Multiple Award Schedule (MAS) contracts with the General Services Administration (GSA) for roofing supplies and services, the Justice Department announced today.
Tremco failed to provide the government with price discounts provided to non-federal government customers. Tremco also allegedly marketed expensive materials to government purchasers without disclosing the availability of the same materials at lower cost that were manufactured and sold by the company. Tremco is a manufacturer of construction products and services and is a subsidiary of the RPM Building Solutions Group.
“Companies that knowingly skirt the rules for securing government business undermine the integrity of the procurement process and create an unfair advantage against companies that are playing by the rules,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “We are committed to ensuring a level playing field and protecting taxpayer dollars.”
Allegedly, from January 2002 to March 2011, Tremco knowingly violated its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, to report changes in discounts to comparable commercial customers and to pass those discounts on to government customers. As a result, the government allegedly paid more than it should have for Tremco’s services and products. In addition, Tremco allegedly improperly marketed generic products as a superior line of the same product and used a defective adhesive formula in its roofing systems.
The GSA MAS program provides government purchasers with a streamlined process for procurement of commonly used commercial goods and services. To be awarded a MAS contract, and thereby gain access to the broad government marketplace and ease of administration that comes from selling to hundreds of government purchasers under one contract, contractors must agree to disclose commercial pricing policies and practices.
The settlement resolves a qui tam, or whistleblower, lawsuit filed on behalf of the government by former Tremco vice president Gregory Rudolph, who will receive more than $10.9 million as his share of the recovery in the case. Under the whistleblower provisions of the False Claims Act, private citizens can bring lawsuits on behalf of the government and share in any recovery. Rudolph’s lawsuit also includes allegations on behalf of several states under their false claims statutes. The settlement with the federal government does not resolve the state actions.
“These companies are paying the price for trying to cheat the American taxpayer out of a fair deal,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “We thank this whistleblower for coming forward to reveal this wrongdoing. Other contractors who are considering bilking the government should take heed: false and fraudulent claims on the U.S. Treasury will not be tolerated.”
GSA Inspector General Brian Miller said, “GSA OIG auditors and investigators worked diligently to make sure the taxpayers got the benefit of required price reductions, and received a fair price for the products and services purchased with taxpayer funds.”
This settlement was the result of a coordinated effort by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia and GSA’s Office of Inspector General to investigate the allegations and resolve the case. The claims settled by this agreement are allegations only, and there has been no determination of liability.
The case is captioned United States, the States of California, Delaware, Florida, Illinois, Indiana, Massachusetts, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Tennessee, Virginia and the City of Chicago, ex rel. Gregory Rudolph v. Tremco Inc. and RPM International Inc., Case No. 1:10-cv-01192 (D.DC).
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RPM International Inc. and Tremco Inc. Pay Nearly $61 Million for Failing to Provide Government Discounts Provided to OthersRead the Press Release
Ohio-based RPM International Inc. and its subsidiary, Tremco Inc., have paid $60.9 million to resolve allegations that Tremco filed false claims in connection with two multiple award schedule (MAS) contracts with the General Services Administration (GSA) for roofing supplies and services, the Justice Department announced today. Tremco failed to provide the government with price discounts provided to non-federal government customers. Tremco also allegedly marketed expensive materials to government purchasers without disclosing the availability of the same materials at lower cost that were manufactured and sold by the company. Tremco is a manufacturer of construction products and services and is a subsidiary of the RPM Building Solutions Group.
“Companies that knowingly skirt the rules for securing government business undermine the integrity of the procurement process and create an unfair advantage against companies that are playing by the rules,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “We are committed to ensuring a level playing field and protecting taxpayer dollars.”Allegedly, from January 2002 to March 2011, Tremco knowingly violated its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, to report changes in discounts to comparable commercial customers and to pass those discounts on to government customers. As a result, the government allegedly paid more than it should have for Tremco’s services and products. In addition, Tremco allegedly improperly marketed generic products as a superior line of the same product and used a defective adhesive formula in its roofing systems.
The GSA MAS program provides government purchasers with a streamlined process for procurement of commonly used commercial goods and services. To be awarded a MAS contract, and thereby gain access to the broad government marketplace and ease of administration that comes from selling to hundreds of government purchasers under one contract, contractors must agree to disclose commercial pricing policies and practices.
GSA Inspector General Brian Miller said, “GSA OIG auditors and investigators worked diligently to make sure the taxpayers got the benefit of required price reductions, and received a fair price for the products and services purchased with taxpayer funds.”
“These companies are paying the price for trying to cheat the American taxpayer out of a fair deal,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “We thank this whistleblower for coming forward to reveal this wrongdoing. Other contractors who are considering bilking the government should take heed: false and fraudulent claims on the U.S. Treasury will not be tolerated.”The settlement resolves a qui tam, or whistleblower, lawsuit filed on behalf of the government by former Tremco vice president Gregory Rudolph, who will receive more than $10.9 million as his share of the recovery in the case. Under the whistleblower provisions of the False Claims Act, private citizens can bring lawsuits on behalf of the government and share in any recovery. Rudolph’s lawsuit also includes allegations on behalf of several states under their false claims statutes. The settlement with the federal government does not resolve the state actions.
This settlement was the result of a coordinated effort by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia and GSA’s Office of Inspector General to investigate the allegations and resolve the case. The claims settled by this agreement are allegations only, and there has been no determination of liability.
The case is captioned United States, the States of California, Delaware, Florida, Illinois, Indiana, Massachusetts, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Tennessee, Virginia and the City of Chicago, ex rel. Gregory Rudolph v. Tremco Inc. and RPM International Inc. , Case No. 1:10-cv-01192 (D.DC) .
Puerto Rico Man Sentenced to Life in Prison <br /> for 2009 Mass ShootingRead the Press Release
Alexis Candelario-Santana, 42, was sentenced today to life in prison for murdering eight people and an unborn child and attempting to murder 19 others during a mass shooting at a Puerto Rico nightclub in 2009.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez made the announcement.“The horrifying massacre at La Tómbola came just nine months after Candelario-Santana’s release from prison for committing 12 murders. During his rampage, he brutally killed or injured dozens of other innocent victims, including children and the elderly,” said Acting Assistant Attorney General Raman. “Our thoughts are with the victims and their families, and we hope that today’s life sentence brings some measure of comfort to them. As this prosecution and today’s life sentence shows, we will not waver in our commitment to bringing violent criminals to justice.”
“With the sentencing of this career criminal we have made our community a safer place. The U.S. Attorney’s Office will continue working along with other law enforcement agencies to prosecute criminals who deprive our communities of a peaceful and safe environment,” said U.S. Attorney Rodríguez-Vélez. “I commend our prosecutors and investigative agencies who have demonstrated, once again, that our efforts continue to provide positive results to the community.”
Candelario-Santana and his co-defendant David Oquendo-Rivas were convicted by a federal jury on March 8, 2013. Candelario-Santana was convicted of 28 counts of committing violent crimes in aid of racketeering activity, one count of racketeering conspiracy, nine counts of using a firearm in relation to a crime of violence, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possessing a firearm as a convicted felon. Oquendo-Rivas was convicted of 28 counts of committing violent crimes in aid of racketeering activity and nine counts of using a firearm in relation to a crime of violence. These offenses occurred on Oct. 17, 2009, in what became known as the “La Tómbola Massacre.”
Based on the government’s charging documents, only Candelario-Santana was potentially eligible for the death penalty. On March 23, 2013, the same jury that determined the guilt of Candelario-Santana and Oquendo-Rivas was unable to reach a unanimous verdict on the question of whether Candelario-Santana should be sentenced to death or life in prison. As a result, under the Federal Death Penalty Act, Candelario-Santana was required to be sentenced to life in prison.
According to the evidence presented at trial, from approximately 1993 through 2003, Candelario-Santana was a leader of the drug trafficking organization that operated principally in Sabana Seca, Toa Baja, Puerto Rico. The organization purchased drugs in bulk, processed and packaged the drugs, and sold them at Sabana Seca through numerous sellers, runners and enforcers under Candelario-Santana’s control. The organization sold crack, cocaine, heroin and marijuana, and members of the organization routinely possessed firearms to protect its drug points. In addition, the evidence introduced at trial established that, between 1995 and 2001, Candelario-Santana either personally killed, or ordered others to kill, 13 individuals whom he viewed as threats to his drug trafficking organization or as being disloyal members of the drug trafficking organization.
In approximately 2002, Candelario-Santana was arrested and charged in the Commonwealth of Puerto Rico with numerous murders. Candelario-Santana was eventually convicted of 12 murders in the local courts, and was sentenced to a total of 12 years in prison. Sometime after Candelario-Santana’s arrest, co-defendant Carmelo Rondón-Feliciano took charge of the day-to-day operations of the organization, but Candelario-Santana continued to direct the organization from prison until approximately 2006, when he was marginalized by co-conspirator Wilfredo Semprit-Santana and Rondón-Feliciano. According to evidence presented at trial, Candelario-Santana was infuriated at being removed from power within the drug trafficking organization.
On Sept. 25, 2006, Rondón-Feliciano was arrested and charged in the District of Puerto Rico with federal drug trafficking crimes, for which he was eventually convicted. These charges stemmed, in part, from Rondón-Feliciano’s distribution of narcotics in Sabana Seca. After Rondón-Feliciano’s arrest, co-conspirator Semprit-Santana took charge of the organization.
In February 2009, Candelario-Santana was released from prison.
On Oct. 17, 2009, Semprit-Santana held the grand opening of a nightclub he had rented and refurbished called La Tómbola, located in Toa Baja, Puerto Rico, complete with a popular live band and a festive Paso Fino horse parade, known as a “cabalgata.” The event was heavily attended, with families congregating inside and outside the establishment, most of whom had nothing to do with the drug trafficking organization and merely resided in the general area. At approximately 11:50 p.m., Candelario-Santana, co-defendant David Oquendo-Rivas, and others, all of whom were heavily armed, drove to La Tómbola. When they arrived, they immediately opened fire indiscriminately on all the patrons located outside, many of whom were women, children and elderly people. Candelario-Santana and Oquendo-Rivas stormed into the La Tómbola, and Candelario-Santana was heard to yell, “no one gets out alive,” as they opened fire on the people inside.
In all, eight people and an 8-month unborn child were killed as a result of the gunfire at La Tómbola, and 19 other victims were shot and injured. The individuals killed included Candelario-Santana’s godson, Rondón-Feliciano’s stepson, and Candelario-Santana’s cousin. The evidence introduced at trial demonstrated that 335 expended shell-casings were recovered from the La Tómbola crime scene. The ballistics evidence established that three AK-47-type assault rifles, one AR-15-type assault rifle, eight .9 mm semi-automatic pistols, three 40-caliber semi-automatic pistols, and two 45-caliber semi-automatic pistols were used in the attack.
Oquendo-Rivas is scheduled for sentencing on Sept. 20, 2013.The case was investigated by the FBI and the Puerto Rico Police Department, with the collaboration of the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; Instituto de Ciencias Forenses; and the Puerto Rico Department of Justice. The case was prosecuted by First Assistant U.S. Attorney María Dominguez-Victoriano and Assistant U.S. Attorney Marcela C. Mateo of the U.S. Attorney’s Office for the District of Puerto Rico and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Unit.
Puerto Rico Man Sentenced to Life in Prison for 2009 Mass ShootingRead the Press Release
WASHINGTON – Alexis Candelario-Santana, 42, was sentenced today to life in prison for murdering eight people and an unborn child and attempting to murder 19 others during a mass shooting at a Puerto Rico nightclub in 2009.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez made the announcement.
“The horrifying massacre at La Tómbola came just nine months after Candelario-Santana’s release from prison for committing 12 murders. During his rampage, he brutally killed or injured dozens of other innocent victims, including children and the elderly,” said Acting Assistant Attorney General Raman. “Our thoughts are with the victims and their families, and we hope that today’s life sentence brings some measure of comfort to them. As this prosecution and today’s life sentence shows, we will not waver in our commitment to bringing violent criminals to justice.”
“With the sentencing of this career criminal we have made our community a safer place. The U.S. Attorney’s Office will continue working along with other law enforcement agencies to prosecute criminals who deprive our communities of a peaceful and safe environment,” said U.S. Attorney Rodríguez-Vélez. “I commend our prosecutors and investigative agencies who have demonstrated, once again, that our efforts continue to provide positive results to the community.”
Candelario-Santana and his co-defendant David Oquendo-Rivas were convicted by a federal jury on March 8, 2013. Candelario-Santana was convicted of 28 counts of committing violent crimes in aid of racketeering activity, one count of racketeering conspiracy, nine counts of using a firearm in relation to a crime of violence, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possessing a firearm as a convicted felon. Oquendo-Rivas was convicted of 28 counts of committing violent crimes in aid of racketeering activity and nine counts of using a firearm in relation to a crime of violence. These offenses occurred on Oct. 17, 2009, in what became known as the “La Tómbola Massacre.”
Based on the government’s charging documents, only Candelario-Santana was potentially eligible for the death penalty. On March 23, 2013, the same jury that determined the guilt of Candelario-Santana and Oquendo-Rivas was unable to reach a unanimous verdict on the question of whether Candelario-Santana should be sentenced to death or life in prison. As a result, under the Federal Death Penalty Act, Candelario-Santana was required to be sentenced to life in prison.
According to the evidence presented at trial, from approximately 1993 through 2003, Candelario-Santana was a leader of the drug trafficking organization that operated principally in Sabana Seca, Toa Baja, Puerto Rico. The organization purchased drugs in bulk, processed and packaged the drugs, and sold them at Sabana Seca through numerous sellers, runners and enforcers under Candelario-Santana’s control. The organization sold crack, cocaine, heroin and marijuana, and members of the organization routinely possessed firearms to protect its drug points. In addition, the evidence introduced at trial established that, between 1995 and 2001, Candelario-Santana either personally killed, or ordered others to kill, 13 individuals whom he viewed as threats to his drug trafficking organization or as being disloyal members of the drug trafficking organization.
In approximately 2002, Candelario-Santana was arrested and charged in the Commonwealth of Puerto Rico with numerous murders. Candelario-Santana was eventually convicted of 12 murders in the local courts, and was sentenced to a total of 12 years in prison. Sometime after Candelario-Santana’s arrest, co-defendant Carmelo Rondón-Feliciano took charge of the day-to-day operations of the organization, but Candelario-Santana continued to direct the organization from prison until approximately 2006, when he was marginalized by co-conspirator Wilfredo Semprit-Santana and Rondón-Feliciano. According to evidence presented at trial, Candelario-Santana was infuriated at being removed from power within the drug trafficking organization.
On Sept. 25, 2006, Rondón-Feliciano was arrested and charged in the District of Puerto Rico with federal drug trafficking crimes, for which he was eventually convicted. These charges stemmed, in part, from Rondón-Feliciano’s distribution of narcotics in Sabana Seca. After Rondón-Feliciano’s arrest, co-conspirator Semprit-Santana took charge of the organization.
In February 2009, Candelario-Santana was released from prison.On Oct. 17, 2009, Semprit-Santana held the grand opening of a nightclub he had rented and refurbished called La Tómbola, located in Toa Baja, Puerto Rico, complete with a popular live band and a festive Paso Fino horse parade, known as a “cabalgata.” The event was heavily attended, with families congregating inside and outside the establishment, most of whom had nothing to do with the drug trafficking organization and merely resided in the general area. At approximately 11:50 p.m., Candelario-Santana, co-defendant David Oquendo-Rivas, and others, all of whom were heavily armed, drove to La Tómbola. When they arrived, they immediately opened fire indiscriminately on all the patrons located outside, many of whom were women, children and elderly people. Candelario-Santana and Oquendo-Rivas stormed into the La Tómbola, and Candelario-Santana was heard to yell, “no one gets out alive,” as they opened fire on the people inside.
In all, eight people and an 8-month unborn child were killed as a result of the gunfire at La Tómbola, and 19 other victims were shot and injured. The individuals killed included Candelario-Santana’s godson, Rondón-Feliciano’s stepson, and Candelario-Santana’s cousin. The evidence introduced at trial demonstrated that 335 expended shell-casings were recovered from the La Tómbola crime scene. The ballistics evidence established that three AK-47-type assault rifles, one AR-15-type assault rifle, eight .9 mm semi-automatic pistols, three 40-caliber semi-automatic pistols, and two 45-caliber semi-automatic pistols were used in the attack.
Oquendo-Rivas is scheduled for sentencing on Sept. 20, 2013.
The case was investigated by the FBI and the Puerto Rico Police Department, with the collaboration of the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; Instituto de Ciencias Forenses; and the Puerto Rico Department of Justice. The case was prosecuted by First Assistant U.S. Attorney María Dominguez-Victoriano and Assistant U.S. Attorney Marcela C. Mateo of the U.S. Attorney’s Office for the District of Puerto Rico and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Unit.
Progreso Mayor and Other Public Officials Charged in Conjunction with Bribery SchemeRead the Press Release
McALLEN, Texas - Jose Guadalupe Vela Jr., 64, Omar Leonel Vela, 35, and Michael Vela, 29, have been arrested on charges of conspiracy, mail fraud, violations of the Travel Act, theft and bribery, United States Attorney Kenneth Magidson announced today.
The sealed indictment, returned in Houston Aug. 21, 2013, was unsealed upon the arrest of Jose Vela and his sons Omar and Michael Vela today in Progreso. They are expected to make their initial appearances before a U.S. Magistrate Judge Dorina Ramos in McAllen tomorrow morning.
The three men are charged based on their alleged participation in a scheme to create a “pay to play” public contracting system in Progreso. According to the indictment, they used their control of Progreso municipal government and the Board of Trustees of the Progreso Independent School District (PISD) to extract bribes and kickbacks from service providers to PISD and the city. PISD receives more than $1 million per year in federal funds from the U.S. Department of Education.
The 10-count indictment alleges that from June 2004 until the date of indictment, the Vela family members conspired to obtain bribes and kickbacks from several service providers. Those allegedly include a construction company and an architectural firm hired as contractors by the city and PISD, an attorney hired as local counsel to advise PISD and a company that supplied PISD and the city with electrical and plumbing supplies.
According to the indictment, Jose Vela, the maintenance and transportation supervisor for PISD, maintained political control in Progreso through his sons Omar Vela, the mayor of Progreso, and Michael Vela, president of the PISD Board of Trustees. The indictment charges that Jose Vela controlled members of the PISD Board of Trustees through a system of reward and retaliation. That is, board members who voted as directed by Jose Vela were allegedly rewarded with bribe money, but those who did not follow his direction were faced with retaliation.
According to the Indictment, from 2004 to 2006, the construction company paid Omar Vela approximately $85,000 in bribes in order to be hired on projects in Progreso, including the construction of an elementary school, a school gymnasium and a municipal park. The indictment further indicates that in 2008 and 2009 the attorney paid nearly $10,000 to the three defendants in order to be hired as local counsel for PISD.
The Indictment also alleges that from 2009 to 2012, Omar Vela instructed the owner of the electrical and plumbing supply company to provide fraudulent invoices to PISD and the City of Progreso for products that were not supplied. When the invoices were paid, Omar Vela allegedly instructed the owner of the supply company to return the funds to Omar Vela as kickbacks. Through this scheme, Omar Vela is alleged to have stolen more than $14,000 from the City of Progreso and PISD.
If convicted, each face up to 20 years in prison for mail fraud, five years for the conspiracy, 10 years for each of the bribery and theft involving federal programs, and five years for each of the six counts of violations of the travel act. All charges also carry a possible maximum fine of $250,000.
The investigation was conducted by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Pearland Septuagenarian Convicted in Child Pornography CaseRead the Press Release
GALVESTON, Texas – A federal jury in Galveston has returned a guilty verdict against David Paul Roetcisoender, 72, of Pearland, for distribution and possession of child pornography, United States Attorney Kenneth Magidson announced today. The verdict was returned late yesterday following a two-day trial and approximately two hours of deliberation.
During the trial, the jury testimony from a detective with the Pearland Police Department who explained how he discovered several videos of child pornography over the Internet which were later traced to a computer used by Roetcisoender.
Evidence proved that on June 4, 2012, officers executed a search warrant at Roetcisoender’s residence in Pearland. At that time, an officer conducted a computer forensic preview which resulted in the discovery of thousands of images and videos of child pornography on a computer Roetcisoender used.
At the time of the search, testimony further revealed Roetcisoender admitted to downloading and viewing child pornography since the 1990s.
The jury also heard that more than 2000 videos and more than 100,000 images of child pornography were found on computers, hard drives and other storage devices seized by officers and used by Roetcisoender.
Further, the government proved that he not only possessed the child pornography but distributed it on at least two separate occasions. A Pearland computer forensic officer testified that the file sharing program used by Roetcisoender contained data that specified which specific files had been downloaded by others over the Internet from Roetcisoender’s computer.
Roetcisoender attempted to convince the jury that he did not knowingly distribute child pornography.
The jury disagreed and found him guilty on two counts of distribution of child pornography and one count of possession of child pornography.
U.S. District Judge Gregg Costa, who presided over the trial, has set sentencing for Nov. 13, 2013. At that time, Roetcisoender faces a sentence of up to 10 years imprisonment for the possession charge as well as at least five and up to 20 years on each of the two counts of distribution. The convictions also carry as possible punishment a $250,000 fine. Upon completion of any prison term imposed, Roetcisoender also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Roetcisoender was arrested on the federal charges on Nov. 14, 2012. He has and will remain in custody pending further criminal proceedings.
The Pearland Police Department investigated the case as part of the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, 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."
Parmelee Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man convicted of Involuntary Manslaughter and Aiding and Abetting was sentenced on August 26, 2013, by U.S. District Judge Roberto A. Lange.
Nathaniel Red Bird, age 33, was sentenced to 15 months of custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Red Bird was indicted by a federal grand jury on January 16, 2013, and pled guilty to Involuntary Manslaughter and Aiding and Abetting on June 4, 2013.
In the early morning hours of August 14, 2011, in Mission, South Dakota, Red Bird and a co-defendant were highly intoxicated and went to sleep in the same bed with the victim, their 7-month-old child. The next morning, Red Bird awoke and realized the child was not breathing. A medical opinion indicated the child died of asphyxia due to parental overlaying while co-sleeping with the intoxicated parents.The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Red Bird was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.Parma Man Charged with CounterfeitingRead the Press Release
Counterfeiting charges were filed against a Parma man, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
A grand jury returned a two-count indictment charging Joshua A. McKnight, 25, with conspiracy to possess and pass counterfeit obligations of the United States and possessing counterfeit obligations of the United States.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorneys Margaret A. Sweeney and Edward F. Feran, following an investigation by the United States Secret Service and the Ohio State Highway Patrol.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owner of West Fargo Tanning Salon Sentenced for Failure to Register as a Sex OffenderRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Aug. 28, 2013, Jared Holland, 28, of Fargo, N.D., was sentenced before U.S. District Judge Ralph R. Erickson for failing to register as a sex offender. Holland pleaded guilty to the charge on April 1, 2013.
Judge Erickson sentenced Holland to seven months and 15 days in prison to be followed by 10 years of supervised release with a condition that he be placed in home confinement for a period of seven months. Holland was also ordered to pay a $100 special assessment to the Crime Victims Fund.
On March 31, 2012, officers from the Fargo Police Department were dispatched to Holland’s residence in South Fargo on a domestic complaint. Thereafter, law enforcement discovered that Holland was a convicted sex offender. Specifically, Holland was convicted of second degree rape in Brown County, South Dakota, on September 23, 2003.
Following an investigation, law enforcement discovered that Holland, a Tier III sex offender, and his wife had moved to Fargo to operate Exclusive Tan, a tanning solon located in the Eagle Run Plaza in West Fargo. After the move, Holland failed to notify authorities of this employment, which he is required to do as a registered sex offender.
The case was investigated by the U.S. Marshals Service and the West Fargo Police Department.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
North Dakota Man Sentenced for Transportation of Child PornographyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bismarck, North Dakota, man charged with transportation of child pornography was sentenced on August 23, 2013, by U.S. District Court Judge Charles B. Kornmann.
Quentin Edward Doerr, age 41, was sentenced to 60 months in custody to run concurrently to any sentence imposed by the State Court in North Dakota, followed by 5 years on supervised release, and a special assessment of $100.
Doerr was indicted for Production of Child Pornography by a federal grand jury on August 14, 2012. In 2012, Doerr possessed video-recorded depictions of himself engaged in sexually explicit conduct with a minor female. He traveled from South Dakota to his home in North Dakota with the video file of child pornography in his computer. He pled guilty to the charge of Transportation of Child Pornography on April 23, 2013.
The investigation was conducted by the Spink County Sheriff's Office, the Bismarck Police Department, the Federal Bureau of Investigation, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Doerr was immediately turned over to the custody of the U.S. Marshals Service.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.North Carolina Man Charged with Making False Internet Bomb Threat to Federal PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an Information was filed today in U.S. Middle District Court in Williamsport against Matthew Mitchell Wilson, age 22, of Indian Trail, North Carolina. The Information charges Wilson with e-mailing a false bomb threat to the Low Security Correctional Institution at Allenwood on March 31, 2012.
According to United States Attorney Peter J. Smith, the Information alleges that on March 31, 2012, during a trip to visit his brother at the prison, Wilson sent an e-mail to the prison stating that there was a bomb in that facility.
The case was investigated by the Federal Bureau of Investigation. Prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel.Indictments and 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 case, the maximum penalty under the federal statute is 10 years’ 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.
Normangee, TX Police Chief Arrested in Connection with Methamphetamine Trafficking InvestigationRead the Press Release
Normangee Police Chief Joseph Ray “Jody” Navarro, age 40, is in federal custody charged with allegedly using a law enforcement computer system to aid a methamphetamine trafficker announced United States Attorney Robert Pitman, Texas Department of Public Safety (DPS) Director Steven McCraw and Leon County Sheriff Kevin Ellis.
A criminal complaint, filed last Thursday and unsealed today, charges the Madisonville, Texas, resident with one count of intentionally exceeding authorized access to a protected computer. According to the criminal complaint, in May 2013, Navarro ran a background check on a name supplied to him by suspected methamphetamine trafficker and Normangee resident Brenda Antanette Evans, age 45.
A separate, but related, criminal complaint filed last Thursday and unsealed today, charges Evans and 25–year-old Joshua Troy Thomas of Normangee with one count of possession with intent to distribute methamphetamine. According to that complaint, on April 26, 2013, during an undercover investigation, Evans purchased close to one ounce of methamphetamine from Thomas on behalf of an undercover agent for approximately $1,200.
Authorities arrested Navarro and Thomas yesterday without incident. Both had their Initial Appearances in Federal court this morning and are scheduled to have a detention hearing on September 3, 2013, before United States Magistrate Judge Jeffrey C. Manske in Waco. Evans has yet to be apprehended. Upon conviction, Navarro faces up to five years in federal prison and a maximum $250,000 fine; Thomas and Evans, up to 20 years in federal prison and a maximum $250,000 fine.
This ongoing investigation is being conducted by the Texas Department of Public Safety Criminal Investigation Division, Leon County Sheriff’s Office and the Federal Bureau of Investigation. Agents with the Drug Enforcement Administration as well as Deputy U.S. Marshals assisted with the arrests. Assistant United States Attorney Mary Kucera is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Norcross Woman Stole More Than $398,000 in Federal Retirement BenefitsRead the Press Release
ATLANTA - Deborah West has been sentenced to 18 months in federal prison for stealing federal retirement benefits.
“Federal employees work hard to earn retirement benefits to support them during their golden years,” said United States Attorney Sally Quillian Yates. “For fifteen years this defendant shamelessly stole from the federal retirement system, taking what she never worked for and never earned.”
“Fraudulently obtaining annuity payments is a crime of opportunity,” said Office of Personnel Management Inspector General Patrick E. McFarland. “It is all too easy for individuals to take advantage of an aging relative, neighbor, or ward – and even easier to do so once they have passed away. This conviction demonstrates that we are dedicated to holding these individuals accountable for their crimes.”
According to United States Attorney Yates, the charges and other information presented in court: The defendant’s parents were both federal employees who received federal retirement benefits. The defendant’s father passed away in 1980 and his benefits were legitimately transferred to West’s mother. The defendant’s mother, also a federal employee, collected her benefits and her husband’s benefits until 1993, when she died. At that time, all of the benefits should have ended. However, the federal government never learned of the death and continued to pay the benefits directly to the mother’s bank account. The defendant stole those benefits by writing checks to herself from her deceased mother’s account, forging her mother’s signature and keeping the money for herself. In sum, between 1993 and 2008 the defendant stole more than $398,000 of federal benefits to which she was not entitled.
West, 64, of Norcross, Ga., was sentenced to one year, six months in prison to be followed by three years of supervised release by United States District Judge Thomas W. Thrash, Jr. She was also ordered to pay restitution in the amount of $398,773.96. West was convicted on these charges on June 10, 2013, after she pleaded guilty.This case is being investigated by the Office of Personnel Management, Office of Inspector General.
The case was jointly prosecuted by Assistant United States Attorneys Christopher C. Bly in Atlanta and Kristi O’Malley of the District of Maryland.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
New York Man Pleads Guilty to Conspiring with Family Members to Commit Tax Fraud by Hiding over $12 Million in Secret Swiss Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HENRY SEGGERMAN pled guilty today in Manhattan federal court to charges related to his participation in a scheme with family members to hide in secret Swiss bank accounts, and not reveal to the Internal Revenue Service (“IRS”), over $12 million that had been left to SEGGERMAN and his family members by SEGGERMAN’s father. SEGGERMAN pled guilty before U.S. Magistrate Judge James C. Francis IV.
Manhattan U.S. Attorney Preet Bharara said: “Henry Seggerman and three of his siblings inherited and continued a family tax fraud scheme. Now, four members of this family stand convicted of tax crimes. We will continue to aggressively investigate and prosecute U.S. taxpayers, and those that assist them, in evading their obligations by hiding money in secret offshore accounts.”
According to the Information, statements made during the plea proceedings, and other documents filed in Manhattan federal court:
SEGGERMAN was the son of a prominent New York businessman (“the Businessman”) who, upon passing away in May 2001, left an estate valued in excess of $24 million, more than half of which was maintained in secret and undeclared foreign bank accounts. Working with a Swiss lawyer and others, the Businessman arranged for over $12 million in the undeclared accounts to be left to his surviving spouse and five of his children, including SEGGERMAN. As a result of the successful implementation of that plan, and to hide the undeclared funds from the IRS, SEGGERMAN, who, together with three of his siblings, was an executor of his father’s estate, signed a tax return for his father’s estate that falsely under-reported the gross assets of the Businessman’s estate. In particular, the estate tax return fraudulently failed to report over $5 million left to the Businessman’s wife and over $7.5 million to be split among five of his children.
In addition, the Swiss lawyer thereafter assisted SEGGERMAN’s siblings, including Suzanne Seggerman, Yvonne Seggerman, and Edmund Seggerman, in setting up undeclared Swiss bank accounts to hold the money left to them by their father. SEGGERMAN assisted his brother in surreptitiously transferring funds from the brother’s Swiss account to a bank account for a foundation controlled by SEGGERMAN, who thereafter filtered the funds to the brother in the United States, labeling the transfer as “loans.”
SEGGERMAN, 60, of New York, New York, and Los Angeles, California, pled guilty to one count of conspiracy to defraud the United States, one count of subscribing to a false and fraudulent estate tax return, and one count of aiding and assisting in the preparation of false tax returns for his brother. He faces a total maximum sentence of 11 years in prison. The case is assigned to U.S. District Judge Alvin K. Hellerstein, and no sentencing date has been set. In addition, SEGGERMAN agreed as part of his guilty plea to make a payment of approximately $600,000 at the time of his sentencing, in partial satisfaction of the ultimate restitution obligation he faces at sentencing.
Suzanne Seggerman, Yvonne Seggerman, and Edmund Seggerman each previously pled guilty to one count of conspiracy to defraud the United States, and two counts of subscribing to false and fraudulent tax returns. Each faces a maximum sentence of 11 years in prison. Suzanne Seggerman, 51, of New York, New York, pled guilty before U.S. District Judge Kevin Thomas Duffy on October 14, 2010 and awaits sentencing. Yvonne Seggerman, 58, of Cumberland, Rhode Island, pled guilty before U.S. District Judge Paul A. Engelmayer on March 14, 2013 and awaits sentencing. Edmund Seggerman, 50, of Washington, D.C., pled guilty before U.S. District Judge Thomas P. Griesa on March 21, 2013 and awaits sentencing.
Mr. Bharara praised the investigative efforts of the Internal Revenue Service, Criminal Investigation.
The case is being prosecuted by the Office’s Complex Frauds Unit. Assistant United States Attorney Stanley J. Okula, Jr. is in charge of the prosecution.
U.S. v. Henry Seggerman Information