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18 October 2013
Former Corrections Officer Sentenced to 37 Months in Prison on Federal Bribery Charge-Admitted Taking Money in Return for Smuggling Drugs into D.C. Jail-Read the Press Release
WASHINGTON – Jonathan Womble, 37, a former corrections officer at the District of Columbia Jail, was sentenced on Oct. 9, 2013 to 37 months in prison on a federal charge of conspiracy to commit bribery for accepting $400 in cash in return for smuggling drugs and other contraband into the facility, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Womble pled guilty in June 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Reggie B. Walton. Upon completion of his prison term, Womble will be placed on three years of supervised release.
According to the government’s evidence, the FBI received information in January 2013 that a corrections officer was providing narcotics and other contraband to an inmate at the D.C. Jail. An investigation revealed that the inmate was working with co-conspirators outside the jail to assemble, deliver, receive and distribute narcotics intended for inmates at the jail, and that they were paying an individual to get the drugs into the facility.
On Jan. 27, 2013, Womble met with one of the co-conspirators in the parking lot of a carry-out restaurant in the District of Columbia. The co-conspirator gave Womble a plastic bag, which contained a powdery substance consistent with heroin and marijuana. The bag also contained a cellphone, cellphone charger and $400 in cash. Womble understood that the cash was in exchange for him getting the drugs, cell phone and charger to the inmate in the jail. Two days later, he smuggled the items into the jail and provided them to the inmate.
Plans were subsequently made for another delivery of contraband. However, on Feb. 12, 2013, multiple bags of marijuana were discovered and intercepted inside Womble’s locker at the jail by the District of Columbia Department of Corrections and one of its K-9 dogs. The marijuana had been provided to Womble by a person who wanted it delivered to another inmate.
Womble is among four corrections employees convicted of bribery since December 2012.
In December 2012, Daishawn Goodson, a former corrections officer employed by the Corrections Corporation of America (CCA), pled guilty to taking money to smuggle contraband into the District’s Correctional Treatment Facility. She was sentenced to eight months of home detention. In March 2013, Jeremiah Moorman, a former corrections officer, was found guilty of accepting money under the promise of bringing contraband into the District of Columbia Jail. He was sentenced to two years of probation. Also in March 2013, April Johnston, a former corrections officer for the District of Columbia Jail, pled guilty to taking money to smuggle contraband into the facility. She was sentenced to three months in jail and six months of home detention and ordered to perform 100 hours of community service.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the three agencies who jointly worked the case, including agents from the FBI’s Washington Field Office, an FBI task force officer from Metropolitan Police Department (MPD) and investigators from the District of Columbia Department of Corrections Office of Investigative Services and the Department of Corrections K9 Unit. Finally, they commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lenisse Edloe, Legal Assistant Angela Lawrence, and Assistant U.S. Attorneys Richard E. DiZinno and Christopher R. Kavanaugh, who prosecuted the case.
13-347Former Administrator of Union's Benefits Plan Charged with EmbezzlementRead the Press Release
The former administrator of a group of International Brotherhood of Electrical Workers (IBEW) Local 38 employee benefit plans was charged in a one-count information with embezzling approximately $32,000 from the company that administered the plans, United States Attorney Steven M. Dettelbach said.
John Dietz, age 56, of Twinsburg, Ohio, was employed as Administrator of the IBEW Local 38 Fringe Benefit Funds, Inc. (the “Funds, Inc.”), located in Valley View, Ohio. The Funds, Inc. administers three benefit plans for members of IBEW Local 38: the IBEW Local 38 Health & Welfare Plan, the IBEW Local 38 401(k) Retirement Plan, and the IBEW Local 38 Pension Fund.
The information alleges that from approximately February 21, 2009, through August 5, 2011, Dietz embezzled monies from the Funds, Inc. through various devices, including: (a) paying for personal expenses through charges to the Funds, Inc.’s two credit cards; (b) receiving expense reimbursement checks for personal expenses; and (c) issuing himself mileage reimbursement checks for personal automobile travel.
If convicted, the defendant’s sentence will be determined by the Court after reviewing 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 violation. 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 handled by Assistant United States Attorney John M. Siegel following investigation by the Department of Labor’s Employee Benefits Security Administration and Office of Inspector General – Office of Investigations.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Florissant Woman Pleads Guilty to Tax and Fraud ChargesRead the Press Release
St. Louis, MO – EVELYN SILAS, Florissant, MO, pled guilty to 13 counts of tax and fraud charges. Silas appeared before United States District Judge Catherine Perry. Sentencing has been set for January 14, 2014.
According to court documents, Silas prepared twenty tax returns for friends and members of her family during the 2009, 2010 and 2011 tax years while employed full-time at the St. Louis Office of the Equal Employment Opportunity Commission (EEOC). Silas added phony information about educational expenses and business income and losses to obtain tax credits for those taxpayers. In all, Silas caused more than $90,000 in tax loss. Silas kept a large percentage of the refunds generated by the fraudulent returns for herself
Each count carries a maximum penalty of three years imprisonment and a $100,000 fine or both. The government will also seek restitution of all tax losses. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by IRS Criminal Investigation with assistance from the EEOC Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
First Independence Bank and Federal Authorities Reach AgreementRead the Press Release
US Attorney Barbara McQuade announced today that her office reached an agreement regarding First Independence Bank’s compliance procedures under the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Under the Agreement the Bank will pay a fine of $250,000 and ensure that its BSA/AML policies and procedures will comply with all applicable laws and regulations. The Agreement requires the Bank to maintain procedures regarding customer identification and customer due diligence in order to obtain, analyze and maintain sufficient customer information to allow effective suspicious activity monitoring. It also requires guidelines to reasonably ensure identification and timely, accurate reporting of known or suspected criminal activity as required by law.
US Attorney McQuade said that “It is vital that banks perform the required level of customer identification and due diligence and possess the ability to monitor transactions so that they can report properly to authorities when there is any suspicious criminal activity. The banks are one of our country’s first lines of defense against, and identification of, certain financial crimes. We are intent on vigorously enforcing their obligations to perform these obligations effectively.”
The agreement indicates that, prior to 2009, First Independence Bank had unsatisfactory BSA and AML compliance programs and practices. US Attorney McQuade noted that, “since the time the deficiencies were discovered in 2009, First Independence has hired a significant number of new officers and staff, including in its BSA department, purchased sophisticated monitoring software, implemented several enhanced projects to identify possible money laundering in customer accounts, filed suspicious activity reports and devoted considerable resources to improved its BSA and AML compliance policies and procedures and controls.” The Bank has agreed to maintain its systems and procedures and to comply with all applicable laws and regulations regarding AML and BSA.
Federal Jury Finds Three Guilty of Charges Related to Shipping More Than 35 Tons of Marijuana to CharlotteRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal jury delivered guilty verdicts today against three defendants charged with marijuana trafficking conspiracy and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Evelyn LaChapelle, 28, Natalia Wade, 30, and Corvain Cooper, 33, all from California, were convicted following a four-day trial before U.S. District Court Judge Robert J. Conrad, Jr, which ended today.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department.
According to court records, LaChapelle, Wade, and Cooper were initially charged on January 15, 2013 with marijuana trafficking conspiracy and money laundering conspiracy in a multiple-defendant criminal bill of indictment. The indictment was later superseded to include a third charge of structuring financial transactions through banking institutions to avoid reporting requirements. According to evidence presented at trial, the marijuana was shipped to the Charlotte area in commercial crate shipments and overnight packages. Trial evidence revealed that the conspiracy involved more than 35 tons of marijuana being shipped to Charlotte and millions of dollars of laundered proceeds funneled back to the sources of supply in California.
The defendants were convicted of all three charges. At sentencing, LaChapelle and Wade face a mandatory minimum of five and a maximum of 40 years in prison and a $4 million fine for the marijuana trafficking conspiracy charge. Because of his prior conviction and the drug weight for which he has been held liable, Cooper faces a mandatory minimum of 20 years and a maximum of life in prison and a $20 million fine for the same charge. All three defendants face a maximum of 20 years in prison for the money laundering conspiracy charge and the greater of $500,000 or twice the value of the property laundered as a monetary fine. For the structuring of financial transactions offense in a pattern exceeding $100,000 in a 12-month period, all three defendants face a maximum of 10 years in prison and a $250,000 fine. The defendants will remain in federal custody until their sentencing hearing which will be scheduled by the court at a later date.
This prosecution is part of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation that has resulted in the conviction of more than 50 defendants for marijuana trafficking, money laundering, and firearms violations over the past four years.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation was led by HSI and CMPD, with the assistance of several other law enforcement agencies, to include the Gastonia Police Department, the Concord Police Department, the Mooresville Police Department, the Pineville Police Department, the Huntersville Police Department, the Kannapolis Police Department, the Cornelius Police Department, the Waxhaw Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Bureau of Investigation, the Iredell County Sheriff’s Office, the Union County Sheriff’s Office, and the Beverly Hills and Culver City, California Police Departments. The prosecution for the government was handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Federal Jury Finds Three Guilty of Charges Related to Shipping More Than 35 Tons of Marijuana to CharlotteRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal jury delivered guilty verdicts today against three defendants charged with marijuana trafficking conspiracy and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Evelyn LaChapelle, 28, Natalia Wade, 30, and Corvain Cooper, 33, all from California, were convicted following a four-day trial before U.S. District Court Judge Robert J. Conrad, Jr, which ended today.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department.
According to court records, LaChapelle, Wade, and Cooper were initially charged on January 15, 2013 with marijuana trafficking conspiracy and money laundering conspiracy in a multiple-defendant criminal bill of indictment. The indictment was later superseded to include a third charge of structuring financial transactions through banking institutions to avoid reporting requirements. According to evidence presented at trial, the marijuana was shipped to the Charlotte area in commercial crate shipments and overnight packages. Trial evidence revealed that the conspiracy involved more than 35 tons of marijuana being shipped to Charlotte and millions of dollars of laundered proceeds funneled back to the sources of supply in California.
The defendants were convicted of all three charges. At sentencing, LaChapelle and Wade face a mandatory minimum of five and a maximum of 40 years in prison and a $4 million fine for the marijuana trafficking conspiracy charge. Because of his prior conviction and the drug weight for which he has been held liable, Cooper faces a mandatory minimum of 20 years and a maximum of life in prison and a $20 million fine for the same charge. All three defendants face a maximum of 20 years in prison for the money laundering conspiracy charge and the greater of $500,000 or twice the value of the property laundered as a monetary fine. For the structuring of financial transactions offense in a pattern exceeding $100,000 in a 12-month period, all three defendants face a maximum of 10 years in prison and a $250,000 fine. The defendants will remain in federal custody until their sentencing hearing which will be scheduled by the court at a later date.
This prosecution is part of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation that has resulted in the conviction of more than 50 defendants for marijuana trafficking, money laundering, and firearms violations over the past four years.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation was led by HSI and CMPD, with the assistance of several other law enforcement agencies, to include the Gastonia Police Department, the Concord Police Department, the Mooresville Police Department, the Pineville Police Department, the Huntersville Police Department, the Kannapolis Police Department, the Cornelius Police Department, the Waxhaw Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Bureau of Investigation, the Iredell County Sheriff’s Office, the Union County Sheriff’s Office, and the Beverly Hills and Culver City, California Police Departments. The prosecution for the government was handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Federal Judge Rules That Local Businessman Liable for over $20 Million in RestitutionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that U.S. District Court Judge Sylvia H. Rambo ruled in favor of the Government on its request for restitution in the case against developer David R. Dodd, II.
In her 37-page opinion filed on October 15, Judge Rambo awarded $20,943,635.13 in restitution as follows: H&R Mechanical, $1,255,468.62
Weaver Glass, $594,890.00
Stone Fire Protection, $308,755.40
Scheadler Yesco, $390,767.05
Stewart-Amos Steel, $622,146.52
Ciesco, $118,218.11
Macri Concrete, $323,057.70
H.W. Nauman, $31,672.47
Herre Brothers, Inc., $1,265,237.50
Metro Bank, $9,489,864.88
Dauphin County, $2,752,450.64
City of Harrisburg, $3,512,777.70
City of Harrisburg, $308,328.54Judge Rambo concluded that Dodd was responsible for the projects demise and the loss to the contractors.
According to United States Attorney Peter J. Smith, Dodd was charged in two separate indictments returned by federal grand juries in June 2010 and January 2011, both involving fraudulent real estate and business deals associated with the Capital View Commerce Center (CVCC).
Dodd utilized a business known as Industrial Design and Construction, Inc. (IDC) as part of the Capital View Commerce Center (CVCC) project to purchase pre-cast concrete forms for use in the construction of the building.
Dodd concealed his own personal interest in IDC in violation of federal conflict of interest requirements and, through that concealment, wrongfully obtained over one million dollars of funds from HUD through programs administered by the City of Harrisburg and Dauphin County. These funds were placed into a brokerage account at Dodd’s direction to conceal the existence and ownership of the misappropriated funds.
Dodd was also paid $860,454.00 in HUD funds through programs administered by the City of Harrisburg and Dauphin County to pay contractors who performed and completed work on the CVCC project. Although Dodd, through his business Cameron Real Estate, LP, received that money, Dodd kept the money and did not pay the contractors as he was obligated to do.
Dodd pleaded guilty in November 2011 to misappropriation of funds and money laundering based on this conduct. The second indictment will be dismissed as part of the plea agreement but the court can consider the conduct underlying the dismissed charges when arriving at an appropriate sentence. A sentencing date has not been scheduled.
The joint investigation was conducted by the HUD’s Office of Inspector General, Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation and the Dauphin County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney William A. Behe. Support is being provided by the U.S. Attorney’s Office Victim Rights and Asset Recovery Unit.
Executive Director of Non-Profit Sentenced to 2 ½ Years in Prison for Wire Fraud, Admitted Using More Than $200,000 in Grants for Personal Use- Used Money Meant for Youth Programs for Gambling, Other Personal Expenses-Read the Press Release
WASHINGTON - Keely E. Thompson Jr., 48, executive director of Keely’s District Boxing and Youth Center, was sentenced on Oct. 9, 2013 to a 2 ½-–year prison term on a federal charge of wire fraud stemming from a scheme in which he spent District of Columbia and private grant funds, meant for youth programs and activities, on personal goods, entertainment, and services. The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Charles J. Willoughby, Inspector General of the District of Columbia.
Thompson, of Accokeek, Md., pled guilty in June 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Emmet G. Sullivan. Thompson must pay $205,000 in restitution to the entities that granted the misspent funds and forfeit a money judgment in the amount of $205,000. Upon completion of his prison term, Thompson will be placed on three years of supervised release. During that time, he must complete 500 hours of community service.
According to a statement of offense, signed by the defendant as well as the government, Keely’s District Boxing and Youth Center was a non-profit organization based at locations in Northwest and Northeast Washington. The operations were funded with grant money. The funds were to be used to carry out the boxing program’s mission of promoting youth development.
Thompson admitted improperly using $205,000 in funds from 2004 to 2009. The spending included $105,000 for gambling at a casino in Atlantic City, N.J. and on a cruise ship; $50,000 for meals at restaurants, purchases at grocery stores, concerts, speeding tickets and clothing, and an additional $50,000 on other unauthorized expenditures.
Thompson was arrested in November 2010 and has been free on personal recognizance while the case remained pending. In November 2012, a federal grand jury returned an indictment charging him and his wife, Bianca Thompson, the non-profit’s deputy director, with wire fraud and other offenses. The plea agreement in Keely Thompson’s case called for the indictment against Bianca Thompson to be dismissed at the time of his sentencing.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Inspector General Willoughby commended the efforts of those who worked on the case from the FBI’s Washington Field Office and the District of Columbia Inspector General’s Office. They also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Nicole Wattelet, Krishawn Graham and Diane Hayes, and Victim/Witness Advocate Yvonne Bryant, and Jelahn Stewart, Chief of the Victim Witness Assistance Unit. Finally, they praised the work of Assistant U.S. Attorneys Seth B. Waxman and Lionel André, who prosecuted the case.
13-348Drug and Firearms Charged Filed on Salineville ManRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury sitting in Cleveland, Ohio, returned a two-count indictment charging Anthony Cunningham, age 56, of Salineville, Ohio, with maintaining a drug-involved premises and being a felon in possession of a firearm and ammunition.
Count 1 of the indictment charges that on or about June 2013, through July 2013, Cunningham maintained a place on State Route 39 in Salineville, Ohio, for the purpose of distributing heroin and cocaine.
Count 2 of the indictment charges that on or about August 2, 2013, Cunningham possessed an American Derringer, model 1, .40 Derringer and Federal .40 caliber ammunition, after he had been previously convicted of Bank Robbery in the U.S. District Court for the Northern District of Ohio, and of Felonious Assault with a Firearm Specification in the Stark County, Ohio, Court of Common Pleas.
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 investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbiana County Task Force. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in 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.
District Man Sentenced to 38-Year Prison Term for Conspiracy to Commit Murder and Other Charges for Role in Gun Battles Between Rival Crews - Second Defendant Sentenced Earlier to 12 Years in Prison-Read the Press Release
WASHINGTON – William Spriggs, 25, was sentenced today to 38 years in prison for conspiracy to commit murder and other charges stemming from a violent rivalry between two street crews in Southeast Washington, announced U.S. Attorney Ronald C. Machen Jr.
Spriggs and Raymond Davis, 21, were found guilty of conspiracy charges in April 2013, following a two-month trial in the Superior Court of the District of Columbia. Spriggs also was convicted of charges of first-degree murder while armed, assault with intent to kill while armed, and other gun-related offenses. He was sentenced by the Honorable John Ramsey Johnson.
Davis also was found guilty of assault with intent to kill while armed and weapons offenses. He was sentenced in June 2013 to a 12-year prison term for his role in the case.
A third defendant, Deante Harding, 25, was found guilty in April 2013 of conspiracy to assault. Harding was sentenced to time served. All three men are from Washington, D.C.
The case centered on a series of shootings that occurred in 2010 in the Benning Terrace neighborhood of Southeast Washington. The rivalry involved individuals from the Avenue, an area in Benning Terrace west of 46th Street SE, and individuals from the Circle, a cul-de-sac in the 600 Block of 46th Place SE. Both crews dealt narcotics, possessed firearms, and sought to evade law enforcement. Spriggs, Davis and Harding were part of the Avenue group.
According to the government’s evidence, during the spring of 2010, individuals from the Avenue traded retaliatory shootings with individuals in the Circle. Davis, for example, on one occasion shot at an individual coming from the Circle. Also, on May 14, 2010, three Avenue members, including Spriggs and Davis, ran into the Circle and fired multiple gunshots, hitting a Circle crew member.
Then, on May 30, 2010, Circle members armed themselves and went to the Avenue and shot at individuals. Several minutes later, several Avenue crew members ran up into the Circle, firing their weapons, where they encountered multiple Circle crew members who fired at them. During the shooting, a bystander from the Circle, Antwan Buckner, 32, was shot and killed.
In its verdict, the jury convicted Spriggs of first-degree murder while armed in the killing of Mr. Buckner, and acquitted Davis of that charge. Harding also was acquitted of some offenses. Harding was arrested in March 2011 and until November 2012 was serving time for a probation violation.
In separate proceedings, other individuals from the Circle were tried and convicted or pled to crimes related to the murder of Mr. Buckner and an additional murder.
In announcing the sentence, U.S. Attorney Machen praised those who worked on the case from the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick, Sharon Newman, and Meridith McGarrity; Litigation Technology Specialists Thomas Royal and Kimberly Smith; Victim/Witness Advocate Marcia Rinker and the entire staff of the Victim Witness Assistance Unit, and Assistant U.S. Attorneys Jeff Pearlman and Laura Bach, who investigated and prosecuted the case.
13-354District Man Sentenced to 24 Years in Prison for 2011 Slaying in Northwest Washington-Defendant Stabbed Victim in the Neck-Read the Press Release
WASHINGTON Devon Holmes, 30, also known as “Jamaica,” of Washington D.C., was sentenced today to 24 years in prison for the August 2011 slaying of a man in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Holmes was found guilty by a jury in July 2013 of a charge of second-degree murder while armed, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Ronna L. Beck. Upon completion of his prison term, Holmes will be placed on five years of supervised release.
According to the evidence at trial, at about 2:45 a.m. on Aug. 3, 2011, in the area of 8th and Jefferson Streets NW, Holmes slashed the victim, Marcellus T. Bailey, 24, in the neck with a sharp object, causing a gaping wound and loss of blood. Holmes fled the scene. Mr. Bailey died a short while later. The motive for the attack is unknown. Holmes was arrested on Sept. 9, 2011, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Machen commended those who worked on the case from the Metropolitan Police Department (MPD), including detectives, mobile crime technicians, and others. He also expressed appreciation for the work of Special Agent Kevin R. Horan of the FBI’s Cellular Analysis Survey Team (CAST). In addition, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick and Mia Beamon; Litigation Support Services Specialists Jeanie Latimore-Brown, Kimberly Smith, Claudia Gutierrez, Joshua Ellen, and Joseph Calvarese; Victim/Witness Advocates Marcia Rinker and Tamara Ince; Victim/Witness Services Supervisor David Foster; Witness Security Specialists M. Laverne Forrest and Michael Hailey; Criminal Investigators Mark Crawford and Christopher Brophy, and Intelligence Research Specialists Zachary McMenamin, Sharon Johnson, and Shannon Alexis.
Finally, U.S. Attorney Machen commended the work of Assistant U.S. Attorneys Robert J. Feitel and Kathryn L. Rakoczy, who prosecuted the case at trial.
13-352Disbarred Attorney and Her Ex-Husband Sentenced to Prison for Stealing $2.8 Million from Clients in Medicaid Planning Fraud SchemeRead the Press Release
Orlando, FL – Chief U.S. District Judge Anne Conway sentenced Ross Littlefield (48, Kissimmee) and Linda Littlefield (41, Kissimmee) yesterday for money laundering. Ross Littlefield was sentenced to four years in federal prison. Linda Littlefield was sentenced to five years in prison. As part of their sentence, the court also entered a restitution order in the amount of $2,888,418.05 and a money judgment in the amount of $155,739.93. The Littlefields pleaded guilty on June 11, 2013.
Linda Littlefield, a former attorney, formed The Littlefield Law Group, P.A which ultimately matured to specialize in Medicaid planning. In 2007, Ross Littlefield, Linda Littlefield, and others created a non-profit organization called the JNN Foundation, Inc. and represented that a JNN Special Needs Asset Preservation Pooled Trust could shelter a client’s assets and not affect the beneficiary’s Medicaid or Social Security Income eligibility. Ross Littlefield served as the trustee.
Between 2007 and 2010, Ross and Linda Littlefield fraudulently induced approximately 27 clients to contribute more than $4.7 million to the JNN Foundation. Once the client funds were received by the foundation, the Littlefields transferred the money to other accounts under their control. The Littlefields used the money for their own personal benefit. They purchased property, vehicles, and made personal loans to their other business. As part of their fraudulent scheme, the Littlefields sent false quarterly statements to their clients showing fictitious balances. Consequently, the Littlefields stole more than $2.8 million from their clients.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney David Haas.Daytona Beach Man Sentenced to 5 ½ Years for Possession of Child PornographyRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II today sentenced Carlos Manuel Cruz (40, Daytona Beach) to five years and six months in federal prison for possession of child pornography. Cruz pleaded guilty on April 15, 2013.
According to court documents, the investigation began when an Internet website reported to the National Center for Missing and Exploited Children (NCMEC) that a specific Internet Protocol (IP) address was engaged in distributing child pornography. Law enforcement officials determined the location of the IP address and interviewed Cruz. During the interview, Cruz admitted that he downloaded and viewed child pornography. Search warrants were executed upon computers located at Cruz’s home, revealing that Cruz possessed more than 27 images and 6 videos containing visual depictions of sexually exploited children.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
This is another case 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.
Columbus, Ohio, Tax Return Preparation Firmwith Large Portion of Elderly Customers Shut DownRead the Press Release
A federal court in Columbus, Ohio, has permanently barred Tobias Elsass and his companies, “Fraud Recovery Group Inc.” and “Sensible Tax Services Inc.,” from preparing federal tax returns, promoting the availability of theft loss deductions, or engaging in any other tax-related business in the future. The Court found that Elsass and Fraud Recovery Group have continually and repeatedly promoted a nationwide scheme falsely informing their customers that they were entitled to claim large theft loss tax deductions, and then preparing the tax returns that improperly claimed such deductions. The civil injunction order was signed yesterday by Judge Peter C. Economus of the U.S. District Court for the Southern District of Ohio.
Elsass serves as president and founder of Fraud Recovery Group and Sensible Tax Services. The district court found that Elsass and his companies promoted a scheme that preyed largely on elderly investors across the United States who had suffered financial losses. Elsass and his companies told the investors that they could deduct their financial losses on their federal income tax returns in an advantaged way and receive large refunds. Under federal tax law, victims of truly fraudulent investment schemes, such as a Ponzi scheme, may properly deduct their financial losses as thefts only if they can substantiate that the losses were, among other things, the product of criminal conduct.
In its opinion, the court concluded that Elsass misled his elderly investor customers into believing that they had valid theft loss deductions, thereby inducing them to pay him and his companies to prepare and file amended tax returns. The opinion notes that hundreds of theft loss deductions claimed on tax returns prepared by Elsass and his companies were improper, because the financial losses they sought to deduct were merely the result of company mismanagement instead of criminal conduct – as Elsass knew. Elsass and his companies were also aware that the Internal Revenue Service (IRS) was disallowing such claims, but filed similar claims for other investor customers in any event, in the hope that the later filings would escape IRS scrutiny. The court found that, as a result of such egregious conduct, Elsass and his companies potentially left their investor customers subject “to audits and scrutiny from the IRS.”
The court also determined that Elsass had intentionally engaged in “incompetent or disreputable” behavior not becoming a tax professional. Based on the record before it, the court found that Elsass seemed “perfectly willing to lie and deceive, even to the extent of possibly committing perjury, in order to advance his own interests.” Accordingly, the “sheer magnitude and variety of the Defendants’ transgressions” made permanent injunctive relief appropriate.
The court directed that FRG be closed and its operations terminated. The court’s injunction order permanently bars Elsass from engaging in any business relating to providing tax advice or the preparation of tax returns. Elsass and his companies are also prohibited from owning any interest in, operating, incorporating, working for or having any other association with any tax-related business in the future, and they must immediately divest any ownership interest they presently have with any such entities. The court’s order also requires Elsass and his companies to advise their existing customers of the injunction’s terms, and to provide the Government with a list of all current customers.
In the past decade, the Justice Department’s Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Department of Justice website at www.justice.gov/tax/taxpress2013.htm .
Related Materials:
United States v. Tobias H. Elsass, et. al.
Complaint for Permanent Injunction
Opinion and OrderCharleston Man Sentenced to 5 Years in Federal Prison for Selling Crack CocaineRead the Press Release
CHARLESTON, W.Va. – A Charleston man who sold crack cocaine to a police informant was sentenced on Oct. 17 to five years in federal prison, announced U.S. Attorney Booth Goodwin. Calvin Lee Boswell, also known as “Boo” and “Big Boy,” previously pleaded guilty in June to seven counts of distribution of crack cocaine. On three separate occasions in October 2011, Boswell sold crack cocaine to a confidential informant working in cooperation with the Special Enforcement Unit of the Charleston Police Department.
Boswell, 25, also sold crack cocaine to a confidential informant working for the Metropolitan Drug Enforcement Network Team (MDENT) on November 26, 2012. Boswell distributed crack cocaine three times in December 2012. Each illegal drug transaction was completed in and around Charleston.
This case was investigated by MDENT and the Special Enforcement Unit of the Charleston Police Department. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.California Man Pleads Guilty to Unlawful Possession of Pipe BombsRead the Press Release
ALBUQUERQUE – Yesterday Lloyd Jonathon Fry, 28, a resident of Hollywood, Calif., who was in the process of relocating to Piqua, Ohio, when he was arrested in May 2013, pleaded guilty in Las Cruces federal court to unlawful possession of pipe bombs.
Fry and his co-defendant Rona Ma-Rey Milan Antipatia, 29, a legal permanent resident from the Philippines who resides in Redondo Beach, Calif., were arrested on May 27, 2013, by Border Patrol agents at the U.S. Border Patrol Checkpoint west of Alamogordo, N.M. The arrests were made after the agents discovered four pipe bombs, a fully-loaded subcompact pistol with a 30-round magazine, and marijuana in their vehicle and the small trailer it was towing during a routine inspection at the checkpoint. Fry and Antipatia were then charged in a criminal complaint with possession of marijuana with intent to distribute and using a firearm in relation to a drug trafficking crime.
Yesterday afternoon, Fry pled guilty to a felony information charging him with unlawfully possessing firearms, the four pipe bombs, that were not registered to him in the National Firearms Registration and Transfer Record. At sentencing, Fry faces a maximum penalty of ten years in prison. Fry has been in custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
Antipatia has pleaded not guilty to the charges against her. The charges against Antipatia are merely accusations and she is presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Las Cruces office of Homeland Security Investigations, the U.S. Border Patrol and the Bomb Squad from the Doña Ana County Sheriff’s Office and is being prosecuted by Supervisory Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.Boeing Procurement Officer and Three Contractors Indicted on Federal Bribery and Fraud ChargesRead the Press Release
St. Louis, MO – Former Boeing Procurement Officer Deon Anderson and three Boeing sub-contractors were indicted on multiple counts of mail and wire fraud in connection with a bribery/kickback scheme involving Boeing military aircraft parts. They appeared this morning in federal court in St. Louis to answer an indictment returned October 2, 2013.
Boeing Company Defense Space and Security Division is a defense contractor providing military-style aircraft to the United States Department of Defense and the United States armed services with offices and procurement operations located in St. Louis. Deon Anderson was a Procurement Officer for Boeing, residing in the St. Louis area.
J. L. Manufacturing of Everett, Washington, is an aerospace job machine shop specializing in hard metals, with the capability of producing small to medium sized complex parts of ferrous and non-ferrous materials, and was a sub-contractor to Boeing on numerous United States government contracts. Jeffrey Lavelle, owner and operator of J. L. Manufacturing, directed the day-to-day operations of the company, and oversaw all financial aspects of the company.Inland Empire and Associates, Inc., Las Vegas, Nevada, is engaged in consulting to defense aircraft manufacturers and parts suppliers, including consulting for J. L. Manufacturing. Robert Diaz, Jr. was the owner and operator of Inland Empire, and personally consulted to J. L. Manufacturing and Jeffrey Lavelle relative to numerous Boeing sub-contracts.
Globe Dynamics International, Inc., Santa Ana, California is a leader in producing small to large, close tolerance precision machined parts and the assembly of complex components. Globe Dynamics was a sub-contractor to Boeing on numerous United States government contracts. William Boozer, owner and operator of Globe Dynamics, directed the day-to-day operations of the company, including the submission of contract bids.
According to the indictment beginning in May 2011 and continuing through April 2013, Deon Anderson provided J.L. Manufacturing, through Lavelle and Diaz, non-public competitor bid information and historical price information in connection with one and more Boeing military aircraft part purchase order requests for quotes. Lavelle used that information in preparing and submitting bids on behalf of J.L. Manufacturing to Boeing for approximately nine different Boeing requests for quotes relative to those various purchase orders. Of the nine, J.L. Manufacturing was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of $2,000,000. The indictment states that in exchange for that information, they made cash payments to Anderson in St. Louis and in California.
Additionally, according to the indictment, between November 2009 and February 2013, Boozer requested Anderson provide him with non-public competitor bid information and historical price information in connection with Boeing military aircraft part purchase order requests for quotes. They communicated by telephone and e-mail between California and St. Louis in code on a regular basis. Boozer frequently requesting “Isle 5," a coded reference to a “price check on aisle 5," understood by Anderson to be a request for historical price information and competitor bid information. Anderson gave the information to Boozer to be used in preparing and submitting bids on behalf of Globe Dynamics in response to approximately sixteen different Boeing requests for quotes relative to those various purchase orders, in exchange for cash payments. Of the sixteen bids, Globe Dynamics was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of $1,500,000.
- DEON ANDERSON, St. Louis, MO
- JEFFREY LAVELLE, Mukilteo, WA
- ROBERT DIAZ, JR., Alta Loma, CA
- WILLIAM P. BOOZER, Hacienda Heights, CA
If convicted, each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service and Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Bergen County, N.J. Man Sentenced to 100 Months in Prison for Separate Fraud ScemesRead the Press Release
Former Investment Advisor ran Multimillion-dollar Ponzi Scheme, Swindled Elderly, Disabled Widow
CAMDEN, N.J. – A Bergen County, N.J., man who claimed to run New Jersey-based hedge funds using a secret computer program to invest in foreign currency was sentenced today to 100 months in prison for defrauding victims of millions of dollars, conning an elderly, disabled widow out of her life savings and evading his tax obligations, U.S. Attorney Paul J. Fishman announced.
George Sepero, 40, of Glen Rock, N.J., previously pleaded guilty to a superseding information charging him with wire fraud conspiracy, wire fraud and tax evasion before Chief U.S. District Judge Jerome B. Simandle in Camden federal court. Sepero has been remanded to federal custody since July 16, 2012, after violating the conditions of his supervised release through a continuing pattern of fraud.
“George Sepero stole millions in a Ponzi scheme and perpetrated a monstrous fraud on an elderly woman who was the definition of vulnerable,” said U.S. Attorney Fishman. “Blowing fortunes of other people’s money, he continued to commit scam after scam until he was locked up. It is fair that he spend his next years away from the society he victimized.”
According to documents filed in this case and statements made in court: The Currency Investment Scheme
Beginning in 2009, Sepero – along with conspirators Carmelo Provenzano, 31, of Garfield, N.J., and Daniel Dragan, 43, of Lebanon, N.J. – claimed to run a series of hedge funds in New Jersey, luring investors with the prospect of extraordinary profits in foreign currency trading. The trio made numerous misrepresentations and omissions to induce their victims to invest in Caxton Capital Management and ACCP Pro Consulting Inc. Sepero claimed that he and his conspirators owned and controlled a proprietary computer algorithm for trading foreign currencies; that they had used the algorithm to achieve returns of more than 170 percent in the prior two years; and that any investment funds would be highly liquid and could be withdrawn on days’ notice.
Investors sent the defendants a total of more than $3.5 million. Sepero and the others invested little or no money in foreign currency or any other investment vehicle, instead diverting the vast majority of victims’ investments to pay prior victims in Ponzi-scheme style and to finance extravagant personal expenditures.
Sepero and his conspirators spent investor money on credit card bills averaging $25,000 per month; bar tabs of $18,241, including a $4,000 tip; $14,034 on separate nights at Drai’s Hollywood nightclub in Los Angeles; and flights to Paris and elsewhere. Sepero bought a custom Ford pickup truck for more than $80,000.
The defendants emailed victims fake statements showing their principal had been invested in the foreign currency markets and was achieving substantial results. Many of these e-mails were purportedly sent by an individual named “Mel Tannenbaum,” a fictional character of Provenzano’s invention.
The defendants also e-mailed to several investors screen shots of a computer-based trading program, which they claimed represented the investors’ funds being traded in the currency markets. In reality, the shots reflected trading in fictional accounts set up by the conspirators to dupe investors.
Provenzano and Dragan have also pleaded guilty before Judge Simandle and await sentencing.
The Annuity Account Scheme
Sepero worked as a financial planner at a financial institution for several years, but was fired in 2006 because of investigations into his churning of clients’ accounts. While at the institution, Sepero took control of the annuity account of one of his clients – an elderly, paraplegic woman with dementia – which was her sole means of providing for her retirement and nursing expenses.
After his termination, Sepero lied to the woman and her family, telling them he was still authorized to manage the annuity account. When his victim had money to add to the account, Sepero directed her to give him checks made payable to his company Casa Nostra Enterprises. Instead of transferring the money to the annuity account, Sepero spent it on his own expenses: credit card and other bills, mortgage payments and car payments, among other things.
To hide the fraud, Sepero fabricated a bogus account statement showing that the annuity account was worth more than $700,000, when, for the period covered by the statement, it actually contained $16.57.
Sepero placed recorded phone calls to the administrator of the annuity account, during which he impersonated both his victim’s son and her husband. Her husband died more than three years before Sepero made the calls.
Sepero also pleaded guilty to tax evasion for the tax year 2010, as he derived income from his fraudulent activities, but did not file a tax return and deposited his victims’ money into his companies’ accounts.
In addition to the prison term, Judge Simandle sentenced Sepero to three years of supervised release and ordered him to pay restitution of $4,985,361. In imposing the sentence, Judge Simandle considered Sepero’s criminal behavior while out on supervised release in this case.
According to the government: During his supervised release, Sepero engaged in a fraudulent “lease to own” agreement with his tenant at the Maywood, N.J., property Sepero was using to secure his bail. When the tenant became suspicious of the arrangement and discovered Sepero’s pending charges, Sepero fabricated an email from PNC Mortgage that made it appear there was a legitimate sale agreement.
Prior to his remand, Sepero also used a relative’s credit card to run up more than $9,000 in unauthorized charges.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation. He also thanked the Commodity Futures Trading Commission’s New York Regional Office, under the direction of David Meister.
The government is represented by Unit Chief Christopher Kelly and Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Evan Weitz of the Office’s Asset Forfeiture Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.13-404
Defense counsel: John Weischel Esq., Hackensack, N.J.Baltimore Car Dealer Owner Sentenced to 30 Months for Structuring Deposits of over $2 Million to Evade Bank Reporting RequirementsRead the Press Release
Businesses that Break Up Cash Transactions to Avoid Paper Trail Face Prosecution
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Amefika Gray, age 39, of Baltimore, today to 30 months in prison followed by two years of supervised release for structuring bank deposits totaling over $2 million over a two year period to avoid bank reporting requirements. Judge Hollander also ordered that Gray forfeit $800,000, a Mercedes Benz vehicle and three residential properties located in Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“Federal law requires large currency transactions to be reported in order to deter money laundering, tax evasion and other criminal conduct,” said U.S. Attorney Rod J. Rosenstein. “Businesses that break up their cash deposits to avoid currency reporting requirements face federal criminal prosecution.”
According to his plea, Gray owns Network Auto Group, a car dealership operating at 2631 Gwynns Falls Parkway in Baltimore. Between January 15, 2010 and April 28, 2012, Gray made regular deposits of $10,000 or just under $10,000 into his personal and business bank accounts, including at least 25 instances in which Gray made multiple deposits under $10,000 the same day into the same bank or into different banks. The amount of the structured deposits over this two year period totaled $2,017,205.23. Gray deposited the money in such amounts because he knew that the banks were required to report to the Internal Revenue Service all deposits over $10,000.
The government presented evidence to the court that the cash that Gray structured was the proceeds of drug trafficking activity.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Evan T. Shea, who prosecuted the case.
Apollo Woman Sentenced to 42 Months in Prison for Massive Mortgage Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Apollo, Pa., has been sentenced in federal court to 42 months of incarceration and three years of supervised release on her conviction of mail and wire fraud conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Bonnie Gardner, 56.
According to information presented to the court, Gardner participated in a massive fraud scheme involving more than $15 million in losses to more than 100 victims. The investigation has subsequently determined that Gardner and Frank Guzik, Jr., through various investment and development groups, such as East Haven Investments, East Haven Development, East Haven Realty, etc., devised and implemented an elaborate Ponzi scheme through which they successfully solicited investors.
The purported business of East Haven was to purchase properties, make various improvements to the properties, and then to sell them. In order to secure the investments, Guzik and Gardner made a series of misrepresentations to the investors. As collateral for the investments, Guzik and Gardner provided the investors mortgages on various properties. The investors believed that East Haven would be unable to sell the properties on which they held mortgages unless the mortgages were satisfied. Many of these mortgages were never filed, which the investors later learned.
The investigation has also revealed that the satisfaction pieces on some of the mortgages were forgeries. Guzik and Gardner also provided multiple investors with mortgages on the same properties. Thus, the purported value to the mortgagees was well in excess of the property's value. The investors were, of course, unaware that other investors held mortgages on the same properties.
Some of the investors received, if requested, monthly interest payments on their investments. Others chose to roll their monthly interest over into the investment, having been erroneously told by Guzik and Gardner that no tax was due on the accrued interest if it was rolled over. The investment never really earned any interest, despite the investor statements indications to the contrary and despite the payment of interest payments. In other words, Guzik and Gardner used new investor funds to pay interest to individual who had invested earlier, and also to support the lifestyles Guzik and Gardner were living.
Beginning in April of 2005, Guzik and Gardner needed to sell some of the properties to generate cash flow and to show investors that East Haven was profitable, but they could not sell the properties. Thus, Guzik and Gardner convinced a number of individuals to act as straw purchases of the properties. The mortgage documents falsely reported that the purchasers made substantial down payments from their own funds to purchase the properties. In fact, Guzik and Gardner deposited investor funds into the straw purchasers' bank accounts and then the straw purchasers would withdraw the money in the form of a certified check that they would bring to the closings as if they had made the down payment from their own funds. In addition, Guzik and Gardner paid the straw purchasers, using investor funds, the mortgage and utility payments for those properties. Guzik and Gardner then prepared a glossy pamphlet reporting the sales of the properties for use in inducing further investors.
Beginning around November 2007 and continuing until in or around March 2008, Guzik began withdrawing funds from the East Haven accounts by cash and check. By the end of March 2008, East Haven's National City accounts, into which investor checks had been deposited and from which investor interest checks had been drawn, had minimal or zero balances. During the same time period, Guzik withdrew $200,000 to purchase untraceable gold coins from International Precious Metals in Texas. Guzik also received two- short term loans totaling $475,000 in early March 2008, promising to repay them at 20% interest by March 18, 2008.
On or about March 17, 2008, Guzik disappeared, and has not been heard from since. He did not repay the loans, stopped making interest payments on investments totaling approximately $15 million, and never accounted for the principle investments. His whereabouts are still unknown.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service, the Criminal Investigation Division of the Internal Revenue Service, and the Monroeville Police Department for the investigation leading to the successful prosecution of Gardner.
Annandale Accountant Sentenced to 36 Months in Prison for Tax Fraud and Making False Statements to the GovernmentRead the Press Release
ALEXANDRIA, Va. – Mohammad T. Al-Suqi, 55, of Annandale, Va., was sentenced today to 36 months in prison, followed by two years of supervised release, for preparing and filing false tax returns and making false statements to federal agents when interviewed about the activities. He was also ordered to pay restitution to the Internal Revenue Service.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by United States District Judge James C. Cacheris.
Al-Suqi was indicted by a federal grand jury on April 25, 2013, and was convicted of nineteen counts of aiding the preparation of a false income tax return, two counts of filing his own false income tax returns, and one count of making false statements to federal agents following a jury trial on July 12, 2013.
According to court records and evidence at trial, the defendant owned and operated the tax preparation businesses Ideal Accounting Solution and Mass Accounting and Tax Corp. in Falls Church, Va. For the tax years 2007 through 2010, the defendant prepared and filed on behalf of his taxpayer clients federal income tax returns that contained materially false and fraudulent information, including false itemized deductions on Schedule A and fraudulent education credits on Form 8863, all of which resulted in large federal income tax refunds for the taxpayers and at least $4 million in losses to the IRS. For his part, the defendant received fees of between $100 and $250 per return and prepared thousands of federal income tax returns during the relevant time period.
As part of the government’s investigation, the defendant also prepared a fraudulent tax return in 2011 for an undercover IRS agent posing as a taxpayer. The episode, which was recorded by the undercover agent and presented to the jury at trial, showed the defendant falsifying expenses and deductions in order to produce an income tax refund and indicating that his success as a tax preparer was associated with his ability to manufacture large refunds for his clients.
The defendant also included false and fraudulent expenses and credits on his own 2008 and 2009 federal income tax returns. In 2013, after the IRS revoked his ability to file electronic tax returns, the defendant continued to prepare and electronically file tax returns using an electronic filing number assigned to his wife, and the defendant lied to IRS agents when he was questioned about the activities.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorneys Jasmine H. Yoon and Paul J. Nathanson and former Assistant United States Attorney Charles F. Connolly prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Annandale Accountant Sentenced to 36 Months in Prison for Tax Fraud and Making False Statements to the GovernmentRead the Press Release
ALEXANDRIA, Va. – Mohammad T. Al-Suqi, 55, of Annandale, Va., was sentenced today to 36 months in prison, followed by two years of supervised release, for preparing and filing false tax returns and making false statements to federal agents when interviewed about the activities. He was also ordered to pay restitution to the Internal Revenue Service.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by United States District Judge James C. Cacheris.
Al-Suqi was indicted by a federal grand jury on April 25, 2013, and was convicted of nineteen counts of aiding the preparation of a false income tax return, two counts of filing his own false income tax returns, and one count of making false statements to federal agents following a jury trial on July 12, 2013.
According to court records and evidence at trial, the defendant owned and operated the tax preparation businesses Ideal Accounting Solution and Mass Accounting and Tax Corp. in Falls Church, Va. For the tax years 2007 through 2010, the defendant prepared and filed on behalf of his taxpayer clients federal income tax returns that contained materially false and fraudulent information, including false itemized deductions on Schedule A and fraudulent education credits on Form 8863, all of which resulted in large federal income tax refunds for the taxpayers and at least $4 million in losses to the IRS. For his part, the defendant received fees of between $100 and $250 per return and prepared thousands of federal income tax returns during the relevant time period.
As part of the government’s investigation, the defendant also prepared a fraudulent tax return in 2011 for an undercover IRS agent posing as a taxpayer. The episode, which was recorded by the undercover agent and presented to the jury at trial, showed the defendant falsifying expenses and deductions in order to produce an income tax refund and indicating that his success as a tax preparer was associated with his ability to manufacture large refunds for his clients.
The defendant also included false and fraudulent expenses and credits on his own 2008 and 2009 federal income tax returns. In 2013, after the IRS revoked his ability to file electronic tax returns, the defendant continued to prepare and electronically file tax returns using an electronic filing number assigned to his wife, and the defendant lied to IRS agents when he was questioned about the activities.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorneys Jasmine H. Yoon and Paul J. Nathanson and former Assistant United States Attorney Charles F. Connolly prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Additional Charges Brought Against Tax Return Preparers Previously Charged with Helping Clients Hide Millions in Offshore Israeli BanksRead the Press Release
David Kalai and Nadav Kalai face additional charges after a federal grand jury in the Central District of California returned a second superseding indictment yesterday. The superseding indictment charged each with two counts of willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR). In June 2012, the grand jury charged David Kalai, Nadav Kalai, and David Almog with conspiring to defraud the United States, the Department of Justice and Internal Revenue Service (IRS) announced today.
As alleged in the June 2012 superseding indictment, David Kalai and Nadav Kalai were principals of United Revenue Service Inc. (URS), a tax preparation business with 12 offices located throughout the United States. David Kalai worked primarily at URS’ former headquarters in Newport Beach, Calif., and later at URS’ location in Costa Mesa, Calif. Nadav Kalai, who is David Kalai’s son, worked out of URS’ headquarters in Bethesda, Md., as well as URS locations in Newport Beach and Costa Mesa. David Almog was the branch manager of the New York office of URS and supervised tax return preparers for URS East Coast locations.
U.S. citizens, resident aliens and legal permanent residents have an obligation to report to the IRS on Schedule B of the U.S. Individual Income Tax Return, Form 1040, whether they had a financial interest in, or signature authority over, a financial account in a foreign country in a particular year by checking “Yes” or “No” in the appropriate box and identifying the country where the account was maintained. They further have an obligation to report all income earned from the foreign financial account on the tax returns. Separately, U.S. citizens, resident aliens and permanent legal residents with a foreign financial interest in, or signatory authority over, a foreign financial account worth more than $10,000 in a particular year, must also file a FBAR with the Treasury disclosing such an account by June 30 of the following year.
The superseding indictment further alleged that the co-conspirators prepared false individual income tax returns which did not disclose the clients’ foreign financial accounts nor report the income earned from those accounts. In order to conceal the clients’ ownership and control of assets and conceal the clients’ income from the IRS, the co-conspirators incorporated offshore companies in Belize and elsewhere and helped clients open secret bank accounts at the Luxembourg locations of two Israeli banks referred to as Bank A and Bank B in court documents. Bank A is a large financial institution headquartered in Tel-Aviv, Israel, with branches worldwide. Bank B is a mid-size financial institution headquartered in Tel-Aviv, with a worldwide presence on four continents.
The indictment also alleged, the co-conspirators incorporated offshore companies in Belize and elsewhere to act as named account holders on the secret accounts at the Israeli banks. The co-conspirators then facilitated the transfer of client funds to the secret accounts and prepared and filed tax returns that falsely reported the money sent offshore as a false investment loss or a false business expense. The co-conspirators also failed to disclose the existence of, and the clients’ financial interest in, and authority over, the clients’ secret accounts and caused the clients to fail to file FBARs with the Department of the Treasury.
In addition to the earlier charges, yesterday’s superseding indictment alleges that David Kalai and Nadav Kalai each failed to file a FBAR for calendar years 2008 and 2009 concerning a foreign account held at Bank A in Luxembourg. The second superseding indictment alleges that both David Kalai and Nadav Kalai had a financial interest, signature or other authority over a foreign financial account that had an aggregate value of more than $10,000 during 2008 and 2009.
If convicted, each defendant faces a maximum of five years in prison for each count and a maximum fine of $250,000 for each count. The charges contained in the indictment are only allegations. The defendants are presumed innocent and it is the government’s burden to prove guilt beyond a reasonable doubt.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked Tax Division Trial Attorneys Christopher S. Strauss and Ellen M. Quattrucci, who prosecuted the case, and Assistant U.S. Attorney Sandra A. Brown of the U.S. Attorney’s Office for the Central District of California, who assisted with the prosecution. The case was investigated by special agents of IRS – Criminal Investigation.
14 Defendants Indicted in Meth Trafficking ConspiracyRead the Press Release
AUGUSTA, GA - A federal indictment, unsealed yesterday in federal court, has charged 14 defendants conspiring to traffic large amounts of methamphetamine from Mexico to Richmond, Columbia, and McDuffie Counties in Georgia, and to areas of South Carolina.
The charges result from a joint investigation by the FBI’s Safe Streets Task Force, the DEA, the Richmond County Sheriff’s Office, State of Georgia Pardons and Parole Office, and the Georgia Bureau of Investigation.
United States Attorney Edward Tarver said, ASuccessful investigations such as these are the result of great cooperation between federal and local law enforcement agencies. We are committed to bringing justice to those who profit from the scourge of illegal narcotics trafficking, and to seizing and forfeiting their ill-gotten gains.@
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “ This Mexico-based criminal enterprise is alleged to have established its methamphetamine distribution base of operations within the Central Savannah River area and, after an intensive investigation culminated in an extensive law enforcement action this week, those operations have come to a sudden end. The FBI’s Safe Streets Task Force (SSTF) operating out of the Augusta area brought in additional resources from the Richmond County Sheriff’s Office, the DEA, the Georgia Bureau of Investigation (GBI), as well as officers from the Georgia State Pardons and Parole Office in order to better neutralize this organized and structured international drug distribution enterprise.”
If convicted of the drug trafficking conspiracy charge, each defendant faces a maximum of life in prison and a potential fine of $10,000,000. Tarver noted that the United States is also seeking to forfeit various items of personal property involved in the offenses, including $2 million as the alleged proceeds of the defendants= drug trafficking.
Of the 14 defendants charged, 11 have been arrested :
- Florentino Binzha- Elisa, 46, of Warrenville, SC; - Gilberto Fabona Gaona, 38, of Augusta, GA; - Jesus Avala Lombera, 32, of Augusta, GA; - Oscar Piedra, aka Oscar Hernandez, 39, of Augusta, GA; - Fidel Sanchez Garcia, 32, of Augusta, GA; - Henri Vertez Travis, 38, of Hephzibah, GA; - Tyler James Barcenas, 21, of Augusta, GA; - Naun Padilla, 34, of Augusta, GA; - Huber Romero, 37, of Augusta, GA; - Victor Eduardo Ovalle, Jr., 20, of Harlem, GA; and, - Jose Ines Davila, 34, of North Augusta, SC.
The 3 remaining defendants still at large are:
- Eduardo Juarez Gallegos, 44, of Ridgeland, SC; - Jorge Perez Rodriguez, 31, of Harlem, GA; and, - Maximo Moreno, aka Maximo Castillo, 70, Harlem, GA.
Anyone with information as to the whereabouts of these 3 defendants are asked to call the FBI at: (706) 722-3702.
Mr. Tarver emphasized that the indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government=s burden to prove guilt beyond a reasonable doubt.Assistant United States Attorney Patricia Green Rhodes is prosecuting the case for the Government. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
17 October 2013
Wichita Falls Man Sentenced to 97 Months in Federal Prison for Role in Major Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas— Dewey Wells, 45, of Wichita Falls, Texas, was sentenced by U.S. District Judge Reed C. O’Connor on October 7, 2013, to 97 months in federal prison following his guilty plea in April 2013 to his role in a major methamphetamine distribution conspiracy operating in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Wells pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and to manufacture methamphetamine.
According to documents filed in the case, Wells admitted that on multiple occasions between November 2011 and September 4, 2012, he received multi-ounce quantities of methamphetamine from co-conspirators Steve Ysasaga, David Calandreli and others in Wichita Falls. Wells further admitted that he distributed the methamphetamine to co-conspirators Tommy Vasquez, Frankie Hubbard and others in the Wichita Falls area.
Wells also admitted that on March 8, 2012, he sold approximately 2.5 grams of methamphetamine to an undercover Texas Department of Public Safety (DPS) agent. During the transaction, Wells told the undercover agent that his supplier went by the name of “Joker,” which is co-conspirator Ysasaga’s nickname.
In addition, Wells admitted that he sold methamphetamine to an undercover DPS agent on two other occasions that same month.
To date, 36 of the 39 defendants charged in this conspiracy have entered guilty pleas; a total of 28 defendants have been sentenced. The case against three defendants has not been resolved.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas DPS; and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Western Michigan U.S. Attorney’s Office Seeks to Identify Victims in Cases Against Kentwood Pharmacy PharmacistsRead the Press Release
GRAND RAPIDS, MICHIGAN – The U.S. Attorney’s Office for the Western District of Michigan is handling criminal cases involving various individuals in connection with their employment at Kentwood Pharmacy. From approximately 2004 through November 2010, Kentwood Pharmacy operated retail pharmacies in Grand Rapids (formerly Eastgate Pharmacy), Shepard, Alma, and St. Louis, Michigan. Additionally they serviced nursing homes, adult foster care homes, and other long term care facilities throughout Michigan and Northern Indiana.
To date, three pharmacists have pled guilty to misbranding prescription drugs during their employment at Kentwood Pharmacy and are scheduled to be sentenced, in Federal Court, on November 13 and 14, 2013, before District Court Judge Janet T. Neff. Individual patients may have received drugs from Kentwood Pharmacy as early as 2004, and continuing through 2010, which were misbranded or adulterated. Examples of such misbranded or adulterated drugs include mislabeled drugs, discolored drugs, or expired drugs. Persons who believe they may have been victims of this crime because they received or paid for drugs supplied by Kentwood Pharmacy between 2004 and November 2010, which were misbranded or adulterated are asked to contact the U.S. Attorney’s Office for the Western District of Michigan.
Potential victims may contact the Western District of Michigan U.S. Attorney’s Office by visiting the office’s website and accessing a form related to this case at: http://www.justice.gov/usao-wdmi/victim-and-witness-assistance-program.html Alternatively, potential victims may call the office’s Victim Witness Unit at (616) 808-2034 and provide the information over the phone.END
Westbrook Woman Sentenced to 70 Months in Prison for Role in Killingworth Bank RobberyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JENNIFER JACQUES, 32, of Westbrook, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 70 months of imprisonment, followed by three years of supervised release, for her role in the August 2012 robbery of the TD Bank in Killingworth.
According to court documents and statements made in court, in the afternoon of August 6, 2012, JACQUES drove Marcus Dwyer and Dario Pabey to the TD Bank on Route 81 in Killingworth. Dwyer and Pabey then entered the bank wearing masks and demanded that everyone lie on the floor. Dwyer pointed a gun at bank employees and customers and then jumped over the teller door and ordered the employees to open the vault. He accompanied the employees to the vault while Pabey controlled the lobby area. Pabey used zip ties to tie the hands of one bank employee and demanded that the customers give him their wallets, mobile phones and car keys. As Pabey was starting to restrain a second person with zip ties, Dwyer ran past him with a bag of money that he had taken from the vault. Pabey followed and grabbed a patron who had surrendered his car keys to him and forced him out of the bank.
Dwyer and Pabey fled in the customer’s vehicle, which was abandoned a short distance from the bank at a pre-planned location where JACQUES was waiting. JACQUES then drove Dwyer and Pabey away from the bank while they changed out of the clothes they had worn during the robbery.
The investigation revealed that $43,573 was stolen from the bank and its patrons during the robbery.
In September 2012, after an indictment charging Dwyer and Pabey had been returned, JACQUES, without the knowledge of law enforcement, traveled to New York to meet Dwyer, who was a fugitive from justice, and drove him to Connecticut. On September 19, 2012, Dwyer was apprehended by the FBI and Connecticut State Police in New London.On October 17, 2012, JACQUES pleaded guilty to one count of bank robbery. Dwyer and Pabey previously pleaded guilty to the same charge and were sentenced to prison terms of 188 months and 180 months, respectively.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorneys Ray Miller and Sarala Nagala.
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(203) 821-3722 [email protected]Washington, Missouri, Man Sentenced for Role in 2011 Murder ConspiracyRead the Press Release
St. Louis, MO – SCOTT ALAN COMPTON, of Washington, MO, was sentenced to five years imprisonment for his actions that resulted in the April 22, 2011, death of Jamie Benson of Houston, TX. In February, Compton pleaded guilty to one count of conspiracy to possess with the intent to distribute over 500 grams of cocaine. Compton was sentenced October 9 by United States District Court Judge Audrey G. Fleissig
According to court documents, in early April 2011, Compton, along with co-defendants Lodgy Jackson and Andreus O’Bryant, among others, joined in a conspiracy that included robbing and murdering victim Benson within the City of St. Louis after luring Mr. Benson from Houston to St. Louis. Compton was recruited by O’Bryant to act as an individual interested in purchasing over 500 grams of cocaine from Mr. Benson for an inflated price. Compton played that role. In doing so, Compton, along with O’Bryant and Jackson, convinced Mr. Benson that a drug transaction was going to occur when, in reality, O’Bryant, Jackson and others intended to rob Mr. Benson of the cocaine and murder him.In the early morning hours of April 22, 2011, Jackson shot and murdered Benson inside O’Bryant’s vehicle that was parked in a St. Louis alley. Jackson and others abandoned Benson's body in the alley where it was later discovered by the St. Louis Metropolitan Police Department. O’Bryant, Jackson and others undertook significant efforts to cover-up the conspiracy and destroy evidence of the crime -- but were ultimately unsuccessful.
O’Bryant and Jackson have previously pleaded guilty for their crimes and await sentencing. Each faces a term of imprisonment of up to life. In determining the actual sentences, a judge is required to consider the United States Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshals Service; the Franklin County Sheriff's Department and the St. Charles County Police Department.United States Attorney Announces City-wide Drug Bust, Arrest of More Than 20 DefendantsRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today a city-wide operation that dismantled a massive drug trafficking organization in the Indianapolis area. The arrests are part of “Operation Five Dollar Footlong,” which targeted a group that allegedly imported thousands of pounds of marijuana into the city. As a result of the search and arrest warrants executed early this morning, 21 defendants have been charged (10 federally, 11 in state court) and significant quantities of drugs and guns have been seized.
“In two years, this federal operation has resulted in the seizure of more than 15,000 pounds of marijuana and nearly $5 million in suspected drug proceeds,” Hogsett said. “Thanks to the tireless work of our law enforcement partners, we can say today that another dangerous criminal organization has been dismantled in Indianapolis.”
Background on “Operation Five Dollar Footlong”
In March 2011, members of a Drug Enforcement Administration (DEA) task force and the Metro Drug Task Force (Metro Drug) began an investigation into marijuana trafficking in the Indianapolis metropolitan area. Based on information received by the agencies, it was believed that illegal activities were being coordinated out of a Mexican grocery store on the west side of Indianapolis.
In October 2011, charges were filed against multiple individuals for this drug activity. A search of a tractor trailer and a warehouse resulted in the seizure of five tons of marijuana and more than $4.3 million in drug proceeds. The investigation was dubbed “Operation Five Dollar Footlong” because the tractor trailer in which the drug proceeds were found was carrying a large quantity of sandwich wrappers when it was stopped by law enforcement.
In the two years that followed, agents continued investigating the activities of those involved in the marijuana trafficking organization. Utilizing extensive phone and in-person surveillance, agents uncovered an extensive network of drug activity in the Indianapolis area. Allegations unsealed today indicate that Mexican suppliers were regularly shipping thousands of pounds of marijuana into Indianapolis. Once sold, the drug proceeds would be hidden in vehicles and transported to the Mexican border.
This Morning’s Operation
Early this morning, federal agents executed 17 federal and state search warrants in Indianapolis as part of “Operation Five Dollar Footlong,” most of which targeted people and property on the near-west side of the city. A total of 21 defendants have been charged in federal and state court for their alleged roles in the drug trafficking organization, 16 of whom were brought into custody today. That includes eight federal defendants and eight state defendants.
Preliminary information on the search warrants executed today indicates that seizures included:
• Approximately 100 pounds of marijuana.
• More than 1.5 pounds of methamphetamine.
• Weapons, including 7 firearms.
• At least 26 vehicles believed to have been used in the scheme.
• Between $80-100,000 in suspected drug proceeds.In addition, documents unsealed today indicate that over the last two years, agents have seized an additional two tons of marijuana in Indianapolis as part of this ongoing investigation.
At approximately 6:00am, an arrest warrant was executed at 5937 Beachview Drive in Indianapolis. Law enforcement officers were confronted by an armed suspect who ignored verbal commands to lower his weapon, reportedly pointing his gun at the detectives. The suspect was shot and pronounced dead at the scene. The death investigation will be conducted by the Indianapolis Metropolitan Police Department’s Critical Incident Response Team.
Criminal Procedure
All told, twenty five defendants have now been federally charged as part of Operation Five Dollar Footlong. According to Assistant U.S. Attorney Melanie Conour, the defendants arrested today on federal charges are scheduled to have initial appearances before a Magistrate Judge in Indianapolis this afternoon. If convicted, those defendants face ten years to life imprisonment on the count of conspiracy with the intent to distribute 1,000 kilograms or more of marijuana. Defendants arrested on state charges face a variety of charges related to their roles in the organization.
These arrests are the result of a collaborative investigation involving the DEA and the Indianapolis Metro Drug Task Force, along with the Internal Revenue Service, the United States Marshals Service, Homeland Security Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. State and local partners included the Marion County Prosecutor’s Office, the Hamilton County Drug Task Force, the Indianapolis Metropolitan Police Department and a number of other local law enforcement agencies.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two Individuals Charged in Manhattan Federal Court with Alleged Sex Trafficking of MinorsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced today the arrests of ELFEGO BOYD and NORMAN DARBY in connection with sex trafficking of minor girls. BOYD was arrested yesterday in the Bronx, New York, and DARBY was arrested yesterday in Manhattan. Both defendants were presented yesterday before U.S. Magistrate Judge Sarah Netburn and ordered detained pending trial.
According to the allegations in the Complaint unsealed yesterday in Manhattan federal court:
From September 2010 through June 2012, the BOYD and DARBY have been engaged in a criminal sex trafficking enterprise that recruited and exploited minor girls, and then prostituted them using an online classifieds website for the defendants’ profit. The defendants lured minor girls into prostitution by, among other things, targeting runaways, offering the victims shelter, and romancing them. They then took provocative pictures of the minor victims, which the defendants then posted online in an effort to sell the victims for sex.
Minor Victim-1
In September 2010, Minor Victim-1, who was 15 years old at the time, met BOYD in Times Square, after running away from her home in Pennsylvania to New York City. BOYD, who introduced himself as “Kush da Dawn,” asked Minor Victim-1 if she wanted to prostitute for him and she agreed. He then provided food and shelter to Minor Victim-1. While staying with BOYD, Minor Victim-1 also met DARBY, who introduced himself as “Black.” Both BOYD and DARBY placed advertisements offering Minor Victim-1 for sex using an online classifieds website. The ads did not receive any responses and Minor Victim-1 left New York City and returned to Pennsylvania a short while later.
In the spring of 2011, Minor Victim-1 traveled from Pennsylvania to New York City where she again encountered BOYD and stayed at his apartment in the Bronx. BOYD told Minor Victim-1 that he loved her and that they were boyfriend-girlfriend. He then posted online advertisements offering Minor Victim-1 for sex in exchange for money. At BOYD’s direction, Minor Victim-1 had sex in exchange for money with multiple men who responded to those ads, after which BOYD took all the money.
Later, BOYD took Minor Victim-1 to a house in Long Island where she stayed along with BOYD, DARBY and others, for several months. During that period, DARBY and Minor Victim-1 posted advertisements offering her for sex online in exchange for money. At BOYD and DARBY’s direction, Minor Victim-1 had sex in exchange for money with several men who responded to those ads at hotels.
Eventually, BOYD returned to New York City with Minor Victim-1. At BOYD’s direction, Minor Victim-1 continued to have sex in exchange for money with multiple men who responded to online advertisements, after which BOYD took all the money. Minor Victim-1, who turned 16 years old during the period she was being offered for sex by BOYD and DARBY, told BOYD her age on one or more occasions.
In November 2011, after getting into an argument with BOYD, Minor Victim-1 ran away from him.
Minor Victim-2 and Minor Victim-3
Minor Victim-2, who was 15 years old, along with Minor Victim-3, who was 17 years old, met BOYD, who identified himself as “Kush da Dawn,” in Manhattan in the spring of 2012 after running away from Oklahoma (the “Oklahoma Victims”). BOYD told the Oklahoma Victims he had “connections” and could help them rent a room at a hotel. Instead, BOYD took the Oklahoma Victims to his apartment in the Bronx.
BOYD took provocative pictures of the Oklahoma Victims in lingerie he provided and posted the pictures in advertisements online prostituting them. At BOYD’s direction, the Oklahoma Victims had sex in exchange for money with multiple men who responded to online advertisements, after which BOYD took half of the money.
Minor Victim-3 informed BOYD that she was 17 years old at the time he was prostituting her. In response, BOYD told Minor Victim-3 that he was the only one who needed to know her age.
BOYD, 27, of the Bronx, NY, is charged with one count of conspiracy to commit sex trafficking, three counts of sex trafficking of minors, and two counts of use of interstate facilities to promote a sex trafficking and prostitution enterprise. DARBY, 32, of the Bronx, NY, is charged with one count of conspiracy to commit sex trafficking, one count of sex trafficking of minors, and one count of use of interstate facilities to promote a sex trafficking and prostitution enterprise. Both defendants face a maximum sentence of life in prison.
Mr. Bharara praised the outstanding investigative work of the FBI and the NYPD, and noted that the investigation is continuing.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant United States Attorneys Andrea Griswold and Amy Garzon are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
US v. Elfego Boyd and Norman Darby Complaint
Two Compton Men Plead Guilty to Federal Hate Crime Charges Resulting from New Year's Eve Attack on African-American YouthsRead the Press Release
Two Latino men associated with the Compton 155 street gang pleaded guilty today to federal hate crime charges related to a racially motivated attack on African-American juveniles at a residence in Compton, Calif. on New Year’s Eve.
Jeffrey Aguilar, 20, who uses the moniker “Terco,” and Efren Marquez Jr., 22, who is also known as “Stretch” and “Junior,” each pleaded guilty to violating the Matthew Shepard-James Byrd Hate Crime Prevention Act.
Appearing before United States District Judge Terry J. Hatter Jr., Aguilar admitted that on Dec. 31, 2012, he and another individual physically attacked a 17-year-old African-American, who was walking down a street in the City of Compton. Aguilar chased down and struck the victim in the head with a metal pipe. During the incident, Marquez threatened to shoot another African-American juvenile who was present. Both Aguilar and Marquez admitted that the attack on the 17-year-old victim was substantially motivated by his race and color.
“These juvenile victims were threatened and assaulted because of their race,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “Such intimidation and violence has no place in our society. The Justice Department will continue to vigorously prosecute those who commit such acts of hate.”
“The perpetrators of hate crimes hurt not only the individuals who are attacked, but also society as a whole,” said United States Attorney André Birotte Jr. “For this reason, we are dedicated to working with our law enforcement partners to ensure that justice is brought to those who choose to commit such heinous crimes.”
“Finding justice for victims of civil rights violations is among the most important responsibilities of FBI agents,” said Bill Lewis, Assistant Director for the FBI's Los Angeles Field Office. “The success of this case is due to the shared goals and long-term cooperation between the Los Angeles Sheriff's Department and the FBI, and prosecutors at the Department of Justice.”
“Hate crimes affect not only the victims, they also destroy our society’s democratic principles” said Sheriff Lee Baca of the Los Angeles Sheriff’s Department. “Law enforcement is dedicated to protecting the civil rights of all members of our community. The success of this joint investigation sends a message that racially motivated crimes will not be tolerated.”
Aguilar and Marquez are scheduled to be sentenced by Judge Hatter on Jan. 6, 2014. At sentencing, each defendant will face a statutory maximum penalty of 10 years in federal prison.
This case is the result of an investigation conducted by the FBI and the Los Angeles County Sheriff’s Department. It is being prosecuted by Assistant U.S. Attorney Reema El-Amamy of the Violent and Organized Crime Section of the U.S. Attorney’s Office and Trial Attorney Saeed Mody of the Civil Rights Division.
Two Compton Men Plead Guilty to Federal Hate Crime Charges Resulting from New Year’s Eve Attack on African-American YouthsRead the Press Release
LOS ANGELES – Two Latino men associated with a Compton street gang pleaded guilty this morning to federal hate crime charges stemming from a racially motivated attack on African-American juveniles on New Year’s Eve.
Jeffrey Aguilar, who is also known as “Terco,” 20, and Efren Marquez Jr., who is also known as “Stretch” and “Junior,” 22, each pleaded guilty to violating the Matthew Shepard-James Byrd Hate Crime Prevention Act.
Appearing before United States District Judge Terry J. Hatter Jr., Aguilar admitted that on December 31, 2012, he and another individual physically attacked a 17-year-old African-American, who was walking down a street in the City of Compton. Aguilar chased down and struck the victim in the head with a metal pipe. During the incident, Marquez threatened to shoot another African-American juvenile who was present. Both Aguilar and Marquez admitted that the attack on the 17-year-old victim was substantially motivated by his race and color.
“The perpetrators of hate crimes hurt not only the individuals who are attacked, but also society as a whole,” said United States Attorney André Birotte Jr. “For this reason, we are dedicated to working with our law enforcement partners to ensure that justice is brought to those who chose to commit such heinous crimes.”
Roy L. Austin, Jr., Deputy Assistant Attorney General for the Civil Rights Division of the Department of Justice, commented: “These juvenile victims were threatened and assaulted because of their race. Such intimidation and violence has no place in our society. The Justice Department will continue to vigorously prosecute those who commit such acts of hate.”
Aguilar and Marquez are scheduled to be sentenced by Judge Hatter on January 6. At sentencing each defendant will face a statutory maximum penalty of 10 years in federal prison.
“Finding justice for victims of civil rights violations is among the most important responsibilities of FBI agents,” said Bill Lewis, Assistant Director for the FBI’s Los Angeles Field Office. “The success of this case is due to the shared goals and long-term cooperation between the Los Angeles Sheriff's Department and the FBI, and prosecutors at the Department of Justice and the United States Attorney’s Office in Los Angeles.”
Sheriff Lee Baca commented: “Hate crimes affect not only the victims, they also destroy our society’s democratic principles. Law enforcement is dedicated to protecting the civil rights of all members of our community. The success of this joint investigation sends a message that racially motivated crimes will not be tolerated.”
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Los Angeles County Sheriff's Department.
Release No. 13-121
Twelve Charged with Conspiring to Distribute Street DrugsRead the Press Release
PITTSBURGH – Eleven Pennsylvania residents and a resident of Brooklyn, New York, have been indicted by a federal grand jury in Pittsburgh for violating federal narcotics trafficking and firearm laws, United States Attorney David J. Hickton announced today.
The five-count indictment, returned on Oct. 15, 2013, and unsealed today charges:
Neil Thomas, 29, of Imperial, Pa.; Marcus Battles, 27, of Pittsburgh, Pa.; Luis Colon, 30, of Brooklyn, NY; Gabriel Garcia, 24, of Carnegie, Pa.; Christopher Greene, 30, of Leetsdale, Pa.; Stephanie Goehring, 26, of Aliquippa, Pa.; Ryan Hutchinson, 28, of Coraopolis, Pa.; William Krszal, 22, of Coraopolis, Pa.; Phillip Lacher, 25, of Conway, Pa.; Colin Mitchell, 28, of Sewickley, Pa.; Dustin Petry, 26, of Pittsburgh, Pa.; and
Kailen Young, 28, of Coraopolis, Pa.According to the indictment, between January 2013 and October 2013, the defendants (except for Krszal and Lacher) conspired to distribute and possess with intent to distribute 100 grams or more of heroin; Garcia and Petry possessed firearms in furtherance of a drug trafficking crime and distributed heroin or possessed heroin with intent to distribute it; and Thomas, Greene, Krszal, and Lacher conspired to distribute and possess with intent to distribute 3,4-methylenedioxymethamphetamine (also known as MDMA or “molly”) and methamphetamine. The indictment seeks forfeiture of the proceeds of the crimes as well as property acquired with the proceeds and property used to commit the crimes, including Thomas’s 2008 Can Am motorcycle and Goehring's 2008 Pontiac car.
The law provides for maximum total sentences ranging from up to 20 years to up to life in prison as well as mandatory minimum sentences starting at five years in prison. Fines ranging from $1,000,000 to up to $8,000,000 may also be imposed. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General's Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Bureau of Police, the Allegheny County Sheriff's Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Title Company Manager Pleads Guilty in $4.8 Million Mortgage Fraud SchemeRead the Press Release
Five Co-Conspirators Previously Pleaded Guilty
Baltimore, Maryland – Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 47, of Riva, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage fraud scheme which resulted in losses of over $4.8 million.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Brian Murphy of the United States Secret Service Baltimore Field Office; Special Agent in Charge Michael P. Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.
According to her plea agreement, in 2002, Kreamer’s Maryland license to issue title insurance policies was revoked after she was convicted of theft for fraudulently endorsing checks at a title attorney’s office where she worked. Despite her conviction, from 2007 until January 2010, Kreamer worked at Sanford Title Services LLC located in Columbia, Maryland, and had significant day-to-day responsibility for the operation of Sanford Title. From June 2008 to January 2010, Kreamer and co-conspirators Niesha Williams, Rhonda Scott, Emeka Udeze and Demetrius Peete arranged various aspects of real estate transactions so they could siphon profits out of the transaction for themselves. They used many fraudulent techniques to further the conspiracy, including: short sales in which the property was sold for a higher price than was represented to the lien holder and the seller; sales of properties not owned by the seller at the time of settlement; real estate transactions in which there were multiple sales of the same property at the same time; real estate transactions in which the buyer’s financial status was misrepresented to lenders; transactions in which the seller and/or buyer were shown different settlement statements and the conspirators used the difference between the figures in the two statements to enrich themselves.
In addition, Kreamer admitted that she personally facilitated deals between her co-conspirators, prepared false settlement statements, improperly disbursed funds contrary to the settlement and lender approved disbursements sheets, failed to pay off mortgage loans in accordance with the settlement documents, directed funds to entities created by herself and her co-conspirators, received proceeds of fraudulent transactions, and improperly issued title insurance policies.
Kreamer admitted that the scheme involved at least 30 victims, including lenders, sellers and buyers of real estate, a title insurance company and lien holders. She further agreed that her offense involved sophisticated means and her abuse of a position of trust at Sanford Title. The reasonably foreseeable loss associated with Kreamer’s conduct is at least $4.8 million.
Kreamer faces a maximum penalty of 30 years in prison and a $1 million fine for conspiring to commit wire fraud. U.S. District Judge James K. Bredar scheduled sentencing for January 22, 2014, at 4:30 p.m.
Niesha Williams, age 34, of Fort Washington, Maryland; Rhonda Scott, age 52, of Oxon Hill, Maryland; Emeka Udeze, age 38, of Bowie, Maryland; Demetrius Peete, age 46, of Manassas, Virginia; and Gregory Green, age 49, of Waldorf, Maryland, each previously pleaded guilty to their roles in the fraud and are awaiting sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Judson T. Mihok, who are prosecuting the case.
Swansea Man Pleads Guilty to Five “Note Job” Bank RobberiesRead the Press Release
PROVIDENCE, R.I. – Scott Niemic, 36, of Swansea, Mass., pleaded guilty in U.S. District Court in Providence on October 9, 2013, to committing five “note-job” bank robberies, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; and Warwick Police Chief Colonel Stephen M. McCartney. A “note-job” bank robbery occurs when a note demanding money is passed or an oral demand is made but no weapon is shown.
Appearing before U.S. District Court Judge William E. Smith, Niemic pleaded guilty to five counts of bank robbery, admitting to the court that in a span of twenty-six days between March 22 and April 16, 2012, he robbed four banks in Massachusetts and one bank in Rhode Island.
According to information presented to the court, Niemic entered each of the banks wearing black wrap-around sunglasses and a baseball cap, and handed a note to a bank employee that stated that he was armed, that he was demanding money and that no dye packs were to be included with the cash. In some instances he verbally told bank employees he was armed. In four of the robberies Niemic kept a cell phone to his ear purporting to be having a conversation with another person.
At the time of his guilty plea, Niemic admitted to robbing a Plymouth, Mass., bank on March 22, 2012, of $4,923; a second bank in Plymouth on March 27th of $3,592; a Warwick, R.I., bank on April 3rd of $8,100; a Bellingham, Mass., bank on April 10th of $5,045; and a Wellesley, Mass., bank on April 16th of $5,453.
According to information presented to the court, investigators determined that the note left at the scene of the Warwick robbery on April 3rd was written on a piece of paper torn from a receipt for excise taxes paid for a motor vehicle registered in Old Town, Maine. The investigation determined that the car was registered to Scott Niemic’s mother and that the defendant, who was living in Swansea, had possession of the vehicle. After locating the vehicle at the defendant’s residence on April 4, 2012, police executed a court authorized search of the vehicle. Among the items seized was a piece of paper that matched the torn paper handed to the bank employee the day before. Police learned that Scott Niemic was also in possession of a second vehicle.
According to information presented to the court, on April 23, 2012, an FBI agent who was a member of the law enforcement team investigating the bank robberies spotted Niemic operating a vehicle on Rte. 24 in Massachusetts and contacted Massachusetts State Police for assistance. A state trooper attempted to stop Niemic’s vehicle but Niemic refused to stop, instead fleeing onto the streets of Fall River. Niemic was apprehended after driving at speeds in excess of 120 miles per hour and crashing his vehicle. From Niemic’s vehicle, investigators recovered nearly $8,100 in cash.
Niemic is scheduled to be sentenced on January 10, 2014. At sentencing, Niemic faces statutory penalties on each charge of bank robbery of up to 20 years imprisonment; a fine of $250,000 fine; and 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The robberies were investigated by the FBI, and police departments from Warwick, R.I., Plymouth, Mass., Bellingham, Mass., and Wellesley, Mass, with the assistance of the Swansea and Westport, Mass., Police Departments and Massachusetts State Police.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]State Leaders Discuss Prisoner Reentry and Growing Prison CostsNeighbor-states' Successes in Reducing Crime and Recidivism ReviewedRead the Press Release
BIRMINGHAM – Alabama state leaders from all three branches of government came together at the Smart on Crime Reentry Policy Summit this week to discuss the urgent need to control prison crowding, corrections spending, and recidivism rates.
Each year, Alabama invests nearly $500 million to operate its prison system. Even with this investment, more than 40 percent of Alabama's prisoners are repeat offenders. This summit represented a key first step in bringing together stakeholders from across the state to discuss strategies for addressing these challenges.
"Prison overcrowding is a major concern, and we are working to identify innovative solutions," Gov. Robert Bentley said. "Wednesday's summit was a good opportunity to discuss how Alabama can explore a variety of options on how to be smart on crime while also protecting public safety. The Department of Corrections is doing a good job with the resources available, and we are working together to address this issue in a comprehensive manner."
State leaders from North Carolina, Texas, and Georgia joined experts from around the country in Birmingham to participate in the summit and discuss how an approach called Justice Reinvestment worked in their states to improve public safety, reduce corrections and related criminal justice spending, and reinvest savings in strategies that can decrease crime and strengthen neighborhoods.All three states enacted policies to improve the quality of supervision and treatment for individuals on probation and parole, and have seen outcomes improve and costs fall as a result. Forum participants then broke into smaller panels to discuss how those strategies might be applied in Alabama.
"Successful reentry programs help those who have served their time in prison develop into law-abiding citizens," said U.S. Attorney Joyce White Vance. "These programs reduce crime and the amount of taxpayer money that must be spent on prisons. I'm grateful for the strong leadership shown by our governor, legislators and judges, and their willingness to explore evidence-based, data-driven policies used so successfully by our neighbors in Texas, North Carolina and Georgia to reduce crime and control cost," she said.
"The course correction we need in our criminal justice system won't happen overnight," Alabama Corrections Commissioner Kim Thomas said. "Large-scale reentry programs must be addressed by a broad group of criminal justice stakeholders and include more than just the prison commissioner tweaking policies. We need to establish proven reentry models to break the cycle of crime and incarceration, making our communities safer, and wisely investing the taxpayer dollars."
Alabama Sen. Cam Ward emphasized the need for immediate action. "We cannot afford to wait any longer to address prison crowding, corrections spending and recidivism, especially when we've seen other states succeed in similar efforts. I hope my colleagues will join me in an effort to craft policy solutions to ensure our corrections resources have the greatest public safety impact possible," he said.Skagit County Man Sentenced to 12+ Years in Prison for Possession of Child PornographyRead the Press Release
A 29-year-old Anacortes, Washington man was sentenced today in U.S. District Court in Seattle to 151 months in prison and 20 years of supervised release for possession of child pornography, announced U.S. Attorney Jenny A. Durkan. CONOR RYAN KELLY BRODERICK has prior convictions for sex offenses, and came to the attention of police following reports from two victims that BRODERICK was harassing them, and threatening to post explicit pictures of them on the internet. At sentencing U.S. District Judge Thomas S. Zilly said he was troubled by BRODERICK’s previous convictions.
According to records filed in the case, BRODERICK was arrested November 3, 2012 by Anacortes Police after a stalking incident. The stalking followed a report to police by two different women claiming BRODERICK was threatening to post nude pictures of them on the internet unless they sent him additional pictures. While incarcerated, BRODERICK called an acquaintance and told the person to remove a memory card from his computer. Investigators who had been monitoring the jail calls, obtained a search warrant and ultimately determined the memory card and other media storage devices contained more than 100 images of child pornography. Later, while released on bail, BRODERICK entered into a “sexting” relationship with a girl in Kentucky who identified herself as a 14-year-old. BRODERICK has these prior convictions: Rape of a Child in the Third Degree (three counts), in Skagit County (2007) and Dealing in Depictions of Minors Engaged in Sexually Explicit Activity (two counts), in Skagit County (2007).
In asking for the 151 month prison sentence, prosecutors wrote to the court, “The picture that emerges of the defendant is clear and consistent – he is a sexual predator who has a compulsion to have sexual contact with children and view child pornography. … Moreover, the defendant to date has shown no ability to control himself. In his previous child pornography case, he violated his probation by accessing the internet, viewing more pornography, and not completing his sex therapy treatment.”
BRODERICK was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The case was prosecuted by Assistant United States Attorney Jerrod Patterson. The case was investigated by the Anacortes Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Rochester Man Pleads Guilty to Money Laudering ConspiracyRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Brian Campbell, 74, of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, to conspiring to engage in money laundering activities. The charge carries a maximum penalty of 20 years in prison, a fine of $500,000 or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant worked for Kenneth Griffin, a co-defendant who was convicted in May 2013, at an employment staffing business that was used to commit fraud. The fraud involved creating false invoices and other supporting documents that the defendant then sold to a series of financing companies on a weekly basis for immediate cash. When a financing company realized that it had been sold uncollectible invoices and stopped dealing with Griffin's business, the defendant would change business names and continue the scheme with another financing company.
Griffin and others involved in the conspiracy sought to conceal their ill-gotten gains, which totaled approximately $567,000, by laundering the proceeds of the fraud using anonymous debit cards. These cards were provided to lower-level employees, who were directed to go to ATMs in the Rochester area to withdraw cash and return with the money, which was shared among the co-conspirators.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction of Special Agent-in-Charge Toni M. Weirauch, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is scheduled for January 16, 2014, at 3:00 p.m., before Judge Geraci.Rochester Man Pleads Guilty to Possessing Stolen FirearmsRead the Press Release
CONCORD, N.H. –Timothy LaFond, 35, formerly of 3 Pleasant Street in Rochester, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to possessing stolen firearms, announced United States Attorney John P. Kacavas.
During the plea hearing, Lafond admitted that on February 25, 2012, he met with an undercover law enforcement officer in Rochester, New Hampshire and sold him two stolen firearms: (1) a Stag Arms, Model STAG-15, 5.56 caliber rifle and (2) a Bushmaster, Model XM15-E2S, .223 caliber rifle for $1,300. Both of these weapons had been reported stolen from Seacoast Gun and Pawn in Rochester on February 23, 2013. LaFond faces up to ten (10) years in prison, a fine of up to $250,000.00, and is scheduled to be sentenced on January 21, 2014.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rochester, New Hampshire Police Department, and the New Hampshire Drug Task Force, with assistance from the York County, Maine Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney John J. Farley.
Robber Sentenced to 108 Months in PrisonRead the Press Release
PHILADELPHIA - Oronda Ligon, 31, of Philadelphia, PA, was sentenced October 16, 2013 to 108 months in prison for an armed home invasion in which an Upper Darby woman was terrorized. Ligon was convicted in March 2013 of Hobbs Act robbery after breaking into a home with two other men in May of 2011. While in the process of carrying a safe out of the home, the robbers were confronted by a female resident of the home, who had been in the basement, heard a noise, and came upstairs to find the three men robbing her house. Ligon pushed the victim to the floor and one of his cohorts pointed a gun at the victim’s chest. The robbers took a safe containing business proceeds and family jewelry totaling more than $50,000.
In addition to the prison term, U.S. District Court Judge Mitchell Goldberg ordered three years of supervised release and restitution in the amount of $54,900.
This case was investigated by the Federal Bureau of Investigation and the Upper Darby Police Department. It was prosecuted by Assistant United States Attorney Anthony Wzorek.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Ridgefield Man Pleads Guilty to Tax EvasionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that LOUIS VUCCI, JR., 44, of Ridgefield, waived his right to indictment and pleaded guilty on October 3 before U.S. Magistrate Judge Thomas P. Smith in Hartford to evading the payment of nearly $200,000 in federal taxes over a five-year period.
According to court documents and statements made in court, from 2005 through 2009, VUCCI was the president and CEO of Diamond Ranch Foods (“DRF”), a publicly-traded company in the business of selling and distributing meat products in the New York area. In pleading guilty, VUCCI admitted that he underreported his income by $112,310 in 2005, $109,473 in 2006, $174,300 in 2007, $187,704 in 2008, and $95,126 in 2009. The unreported income consisted of weekly pay checks from DRF in the amount of $2,500 that were made payable to VUCCI’s spouse, who did not work for DRF, and deposited into a bank account in his spouse’s name. Also, in 2008 and 2009, VUCCI had one of DRF’s customers pay him for purchases with blank checks, which checks he then completed and deposited into his personal bank account. The checks totaled $26,236 in 2008 and $65,387 in 2009.
In addition, large cash deposits totaling $16,100 in 2008 and $25,020 in 2009 were made into VUCCI’s personal bank accounts. These deposits were cash payments from another DRF customer for DRF sales to the customer.
VUCCI’s federal individual income tax returns reported income of $19,590 in 2005, $12,500 in 2006, $12,000 in 2007, $30,000 in 2008, $125,202 in 2009. The reported low income from 2005 to 2008 automatically qualified VUCCI for the Earned Income Credit yielding refunds rather than taxes owed.
The total tax loss to the government from 2005 to 2009 is $196,425.From mid-2005 to mid-2007, VUCCI and his spouse rented a home in Greenwich for $8,500 per month, had car expenses in excess of $1,000 per month, and paid a housekeeper for approximately 20 hours per week. In 2007, VUCCI purchased a house in Ridgefield for $975,000 and continued on with the car payments.
VUCCI pleaded guilty to one count of tax evasion. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on December 23, 2013, at which time he faces a maximum term of imprisonment of five years and a fine of up to approximately $390,000. He has agreed to pay back taxes and applicable interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
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(203) 821-3722 [email protected]Retired University Professor Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – James Uphoff, 76, of Oakwood, Ohio pleaded guilty in U.S. District Court to one count of possession of child pornography following an investigation that began when employees of Wright State University found questionable material on a printer and copy machine on campus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Wright State University Interim Police Chief David Finnie and Oakwood Police Chief Alex Bebris announced the plea entered today before U.S. District Judge Walter H. Rice.
According to court documents, in early September 2012, just prior to Uphoff’s retirement from Wright State, University Police began investigating Uphoff after the employees found the materials. Investigators also examined a university-owned computer Uphoff used, and searched Uphoff’s Oakwood residence.
Investigators seized computer media from Uphoff’s residence and had it examined at the Miami Valley Regional Computer Forensic Laboratory. Analysts found approximately 550 images and two videos of child pornography on three of the computer devices. The examination also recovered printouts depicting images of naked teenage boys and young adults in bondage and/or pornographic poses.
The plea agreement contains a sentencing range of at least six and not more than 24 months. The court will conduct an investigation and schedule a sentencing date later.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the cooperative investigation by the agencies involved, as well as Assistant U.S. Attorney Christy Muncy, who prosecuted the case.
Renewal Escapee Sentenced to 20 Months in PrisonRead the Press Release
PITTSBURGH – A Renewal Center resident has been sentenced in federal court to 20 months incarceration and three years supervised release on his conviction of escape from custody, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Alfonso Evans, 23, of Pittsburgh, Pa.
According to the information presented to the court, Evans escaped from the Renewal Center on Sept. 29, 2012, and never returned.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The United States Postal Inspection Service and the United States Marshals Service conducted the investigation that led to the prosecution of Alfonso Evans.
Pittsburgh Man Pleads Guilty to Child Sex TraffickingRead the Press Release
PITTSBURGH - A Pittsburgh man pleaded guilty in federal court to a charge of sex trafficking of a child, United States Attorney David J. Hickton announced today.
William Miller, age 37, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that in and around January of 2012, and on or about Feb. 6, 2012, Miller employed, used, persuaded, induced, enticed, and coerced a minor, Jane Doe, for the purpose of producing visual depictions of sexually explicit conduct, namely a digital video and images. In addition, from in and around December of 2011, to on or about Feb. 10, 2012, Miller knowingly recruited, enticed, harbored, transported, provided and obtained a minor, Jane Doe, to engage in a commercial sex act.
Judge Ambrose scheduled sentencing for March 27, 2014, at 10:00 a.m. The law provides for a total mandatory minimum sentence of 10 years and a maximum sentence of life in prison, a fine of $250,000, or both. Pursuant to the defendant's plea agreement with the government, Miller agreed to a sentence of 12 years imprisonment. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Miller.
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.justice.gov/psc.
Pay to Play: Three Madison County Tax Buyers Plead Guilty to Price FixingRead the Press Release
Three individuals who participated in Madison County tax sales from 2005-2008 pled guilty in US District Court on October 17, 2013, to violating the Sherman Antitrust Act, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Barrett R. Rochman, 70, of Makanda, IL, Scott K. McLean, 51, of Belleville, IL, and John A. Vassen, 56, of O’Fallon, IL, each pled guilty to participating in noncompetitive tax sales.
The former treasurer of Madison County, Illinois, Fred Bathon pled guilty in US District Court on antitrust charges on February 5, 2013. Bathon was convicted of structuring Madison County property tax sales in a way that increased interest rates for the tax buyers in exchange for campaign contributors.
The charges allege that at Illinois tax lien auctions, investors bid to purchase tax lien certificates issued against delinquent tax payers. Investors are supposed to compete to purchase these tax liens by bidding on the interest rate the property owner will be required to pay prior to redeeming the tax lien attached to the owner's property. The bid opens at no more than the statutory maximum of 18% and through a competitive bidding process can be driven as low as 0 percent. The bidder offering the least penalty percentage rate, i.e., the bidder who is willing to allow the owner to redeem his property for the smallest penalty, is allowed to purchase the tax lien. As such, competitive bidding benefits financially distressed homeowners by reducing the amount of money that they have to pay to save their home from foreclosure; however, that same system reduces the profit made by tax buyers. Tax buyers prefer to receive high interest rates, which corresponds to higher profits.
For the tax sales conducted in 2005-2008, Fred Bathon structured the tax sales in a way that eliminated competitive bidding and allowed the tax buyers to engage in price fixing by only bidding the statutory maximum interest rate of 18%. The tax buyers who pled guilty today were charged with making campaign donations to Bathon in exchange for receiving property tax liens at non-competitive interest rates.
By 2007 and 2008, the bid rigging and price fixing was so pervasive that distressed homeowners were charged the statutory maximum interest rate on nearly every property tax lien sold. During the tax auction occurring November 14-15, 2007, 2,549 out of 2,574 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 99.03% of the property tax liens auctioned. During the tax auction occurring November 13-14, 2008, 2,290 out of 2,364 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 96.86% of the property tax liens auctioned.
A violation of the Sherman Antitrust Act is punishable by up to 10 years imprisonment and a $1,000,000 fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the statutory maximum. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Sentencing for all three tax buyers has been scheduled for February 21, 2014. Bathon is scheduled for sentencing on December 6, 2013.
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service, and the Federal Bureau of Investigation. The case is being prosecuted by United States Attorney Stephen R. Wigginton and Assistant United States Attorney Steven D. Weinhoeft.
Owner of Loan Modification Company Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – DEREK DOHERTY was sentenced to 15 months in prison and ordered to pay $98,835 restitution involving a scheme to defraud clients by taking advance fees for loan audits that he never performed.
According to court documents, between April and August 2010, Doherty created Home Safe Financial, a mortgage loan modification and audit company operating first in St. Louis, then Overland Park, Kansas, before merging with California-based Financial Hope for America in August 2010. Doherty advertised to potential clients a paid loan audit accompanied by a free loan modification. He represented that he and his company would review client's mortgage loans and determine whether the mortgages complied with the provisions of various federal housing and lending statutes and regulations, for a fee of $3000. He mailed contracts and accepted payments from clients, while representing that he had the ability to perform a loan audit and that a loan audit would be completed. However Doherty never completed any of the loan audits and, in fact, never purchased the necessary software to perform them.
Doherty, Temecula, CA, formally of St. Louis, pled guilty in May to one felony count of mail fraud. He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by the Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney’s Office.Ohio Man Charged with Discharging Well Drilling Waste into Chagrin River TributaryRead the Press Release
A two-count criminal information was filed charging an Ohio man with discharging well drilling waste into Beecher Brook, a tributary of the Chagrin River, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
James L. Hidey, 45, of Dover, Ohio, in 2008 worked for Great Plains Exploration, an oil and gas well drilling company based in Northeast Ohio. On two separate occasions in 2008, Hidey directed the discharge of brine into a stormwater sewer after the completion of gas wells in Mayfield Heights and Highland Heights. The brine flowed from the stormwater sewers into Beecher Brook and eventually into the Chargrin River, according to the information.
Brine is water with a high quantity of salt dissolved into it and is used during the drilling phase of the well installation. It must be handled and disposed of properly because of the toxicity of brine.
“Clean, fresh water is one of our greatest resource in Northern Ohio,” Dettelbach said. “We must and will continue to aggressively investigate and prosecute cases in which people pollute Ohio’s streams, rivers and lakes.”
“Dumping toxic substances like brine into sewers and rivers can be extremely harmful to the environment and a real threat to Ohio families,” said Ohio Attorney General Mike DeWine. “We will continue to work with our task force partners to enforce environmental protection laws and hold violators accountable.”
“Our natural resources must be protected,” said Randall K. Ashe, Special Agent in Charge of U.S. EPA's criminal enforcement program in Ohio. “We will continue to investigate and refer for prosecution anyone who commits crimes against the environment.”
This case is being prosecuted by Special Assistant United States Attorney Brad J. Beeson, following an investigation by the U.S. EPA Criminal Investigation Division, the Ohio Bureau of Criminal Identification and Investigation, and the Ohio Environmental Protection Agency, all members of the Northeast Ohio Environmental Crimes Task Force.
An information 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.
O.C. Doctor Who Illegally Prescribed Addictive Pain Medications, Often Meeting with Patients at Starbucks, Gets 11¼-Year SentenceRead the Press Release
SANTA ANA, California – An Orange County physician who admitted that he illegally prescribed dangerous, addictive painkillers to “patients” he barely examined during meetings that were often held at Starbucks stores was sentenced late today to over 11 years in federal prison.
Alvin Mingczech Yee, 44, of Mission Viejo, was sentenced this afternoon to 135 months in prison by United States District Judge Andrew J. Guilford.
Yee pleaded guilty in April to seven counts of illegal distribution of a controlled substance by a practitioner. Yee specifically admitted that he prescribed drugs, such as oxycodone and alprazolam, “while intentionally acting outside the usual course of professional practice and without a legitimate medical purpose.”
According to court documents previously filed in this case, Yee met with numerous “patients,” including three undercover operatives, during evening meetings at Starbucks across Orange County, where he wrote prescriptions for drugs best known by brand names such as OxyContin, Vicodin and Xanax.
The investigation of Yee was conducted by the Drug Enforcement Administration, which received the assistance of the Orange Police Department, the Huntington Beach Police Department and the California Medical Board.
Release No. 13-122
Northampton County Attorney Charged with Tax FraudRead the Press Release
Nicholas R. Sabatine, III, 62 of Nazareth, PA was charged today by Information with one count of filing a false tax return, announced United States Attorney Zane David Memeger.
Sabatine faces a maximum sentence of three years imprisonment, a one year term of supervised release, a $100,000 fine, together with cost of prosecution, and a $100 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guiltyUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525North Providence Man Sentenced to 51 Months in Federal Prison on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Michael Domenech, 28, of North Providence, R.I., was sentenced on October 8, 2013, to 51 months in federal prison for trafficking crack cocaine and being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
At sentencing, Domenech was also sentenced by U.S. District Court Judge John J. McConnell, Jr. to serve three years supervised release upon completion of his term of imprisonment. Domenech pleaded guilty on July 10, 2013, to one count each of possession of cocaine base with the intent to distribute and being a felon in possession of a firearm.
According to information presented to the court, on January 17, 2013, as part of an ongoing drug trafficking investigation, Rhode Island State Police executed a court authorized search of Domenech’s North Providence residence. During the search, State Police seized five plastic baggies containing approximately 1.2 grams of crack cocaine, nearly $1,400 in cash, various items used in the packaging and distribution of drugs, a loaded .22 caliber pistol and seventeen additional rounds of ammunition.
According to court records, Domenech was previously convicted in Rhode Island state court of a felony crime and sentenced to one year imprisonment to be followed by five years of probation. Domenech was serving his term of probation when he was arrested by Rhode Island State Police.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
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