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Tuesday 20 August 2013
Shiprock, N.M., Man Sentenced to Nineteen Years in Federal Prison for Second Degree Murder and Attempted Robbery ConvictionRead the Press Release
ALBUQUERQUE – Malcolm Altisi, 32, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to 19 years in federal prison followed by two years of supervised release for his second degree murder and attempted robbery convictions. Altisi’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and John Billison, Director of the Navajo Nation Division of Public Safety.
Altisi and his co-defendant, Emery Whitehair, 21, a Navajo man from Pinon, Ariz., were charged in an eight-count superseding indictment based on events occurring on Oct. 17, 2011, on the Navajo Indian Reservation. According to court records, on that day, Altisi killed Rolan Joe, a 25-year-old Navajo man, after Altisi and Whitehair attempted to rob a different Navajo man earlier that day. The superseding indictment charged Altisi with second degree murder, using a firearm in relation to crime of violence, and assault and attempted robbery offenses. It also charged Whitehair with assaulting the robbery victim with a dangerous weapon, causing the victim serious bodily injury, and using a firearm in relation to a crime of violence.
In March 2013, Altisi entered guilty pleas to the second degree murder and attempted robbery charges. In entering his guilty pleas, Altisi admitted that, on Oct. 17, 2011, he attempted to rob a man at his Shiprock home and brandished a firearm at the robbery victim in an effort to compel the victim to give him money. Altisi also admitted shooting Rolan Joe with a .357 revolver later that day when Mr. Joe traveled to Altisi’s residence to confront Altisi about the attempted robbery. Mr. Joe died as a result of the gunshot wound inflicted by Altisi.
In April 2013, Whitehair pleaded guilty to using a firearm in relation to a crime of violence. Whitehair has been in federal custody since his arrest in Oct. 2011, and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Whitehair faces a prison sentence of not less than seven years and a maximum of life in prison.
The case was prosecuted by Assistant U.S. Attorneys Jennifer M. Rozzoni and Jack E. Burkhead, and was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock Division of the Navajo Nation Department of Public Safety.Shiprock Woman Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Tina Benally, 38, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to 21 months in federal prison followed by two years of supervised release for her assault conviction.
Benally was indicted on Feb. 27, 2013, and charged with assault resulting in serious bodily injury and child abuse. Benally was arrested on March 6, 2013, and has been in federal custody since that time.
On May 22, 2013, Benally entered a guilty plea to the assault charge and admitted that on March 2, 2012, after drinking alcohol, she drove her vehicle at excessive speeds and crashed into a semi-truck. There were two passengers, including a minor child, in Benally’s vehicle at the time of the collision and the adult passenger suffered multiple fractures that required surgery.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Shaw University Employee Pleads Guilty in Government Grant Theft SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today ADEMOLA L. EJIRE, 53, pled guilty to mail fraud, in violation of Title 18, United States Code, Section 1341.
U.S. Attorney Walker stated, “Mr. Ejire was entrusted with federal grant funds earmarked for the education and nurturing of young minds in the fields of Math and Science. Unfortunately he breached that trust.”
According to the July 23, 2013, Criminal Information, EJIRE was employed at Shaw University as the Principal Investigator for the United States Environmental Protection Agency (EPA) Research Apprenticeship Program (RAP) grant, and was responsible for managing the program, for which the University was a receipient.
The EPA RAP grant provides funding for a program for specific high school students who have an interest in science and math. Students who meet the academic and attendance criteria in the eighth grade can apply for entry into the program. At the end of the application process, 10 to 12 students are chosen to enter the program in the ninth grade. This is an academic program designed to nurture their science and math background.
From 2001 to July, 2012, EJIRE fraudulently represented that his wife was an employee of Shaw University working as the EPA Program Coordinator for the EPA RAP grant and that his children were participants in the EPA RAP grant by submitting falsified timesheets. The scheme enabled EJIRE to fraudulently obtain approximately $470,000.
At sentencing, set for the Court’s November 2013, term of court, EJIRE, faces up to 20 years imprisonment.
"For years Ademola Ejire funneled grant money intended for high school students into his own accounts. The FBI and our law enforcement partners uncovered his fraudulent scheme and vow to hold those accountable who are trusted to dispense government funding, but choose instead to line their own pockets," said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.
“The funds for the Research Apprenticeship Program are intended to provide an opportunity for honest, hard-working students to realize their dream of a higher education”, said Inspector in Charge Keith Fixel. “The United States Postal Inspection Service is committed to bringing those to justice who would steal those dreams through schemes involving the use of the US Mail.”
The investigation of this case was conducted by United States Environmental Protection Agency – Office of Inspector General, the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Sandy Winick and Gregory Curry Arrested in Thailand for One of the Largest International Penny Stock Frauds and Advance Fee Schemes in HistoryRead the Press Release
Winick Boasted About His Fake Passports and Ability to Avoid Arrest
BROOKLYN, NY – On Saturday, August 17, 2013, Thai officials working with Federal Bureau of Investigation (FBI) and U.S. Embassy personnel in Bangkok arrested alleged penny stock fraud kingpin Sandy Winick on a provisional arrest warrant in Bangkok, Thailand, to face extradition proceedings to the Eastern District of New York. Earlier today, Thai officials working with FBI and U.S. Embassy personnel in Bangkok arrested Winick’s alleged penny stock fraud co-defendant Gregory Curry on a provisional arrest warrant in Bangkok, Thailand, and he will also face extradition proceedings to the Eastern District of New York. These arrests mark the latest successful chapter in an effort to address fraud in the over the counter securities markets. Previously, on August 13, 2013, the FBI arrested six men in New York, Arizona, New Jersey, Florida and California -- and the Royal Canadian Mounted Police (RCMP), in coordination with the FBI, arrested a seventh man on a provisional arrest warrant in Ontario, Canada -- for engaging in this same international fraud conspiracy that spanned the globe from North America to Europe and Asia. Each arrest resulted from an indictment charging the nine defendants with 24 counts of securities fraud, wire fraud and false personation of Internal Revenue Service (IRS) employees in connection with the sale of securities and conspiracy. 1
The indictment and arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, FBI, New York Field Office.
As set forth in court filings, Sandy Winick masterminded securities fraud and advance fee schemes that victimized investors in approximately 35 nations and generated more than $140 million through various brokerage and bank accounts under their control. Gregory Curry aided Winick in the securities fraud and advance fee schemes. To uncover the international aspects of the scheme and gather evidence, the FBI used wiretaps in the United States and undercover agents in foreign countries.
The indictment and arrests are the result of one of the largest international penny stock investigations ever conducted by the Department of Justice and the FBI and mark the unveiling of a multi-year, ongoing investigation, which included significant assistance from the RCMP, as well as from other U.S. law enforcement agencies and law enforcement authorities in England, as well as assistance from Thailand and China.
Defendant Sandy Winick is charged as the lead defendant in two separate but interrelated schemes. According to the indictment, the defendants first engaged in an international ‘pump and dump’ scheme during which they fraudulently ‘pumped up’ the share price of worthless penny stocks and then ‘dumped’ billions of shares of those stocks by unloading them on unsuspecting victim investors across the globe. Winick boasted about the superiority of the charged scheme compared to another more obvious scam, stating: “That deal is obviously a pump and dump. We know enough to be subtle.” Second, the defendants operated boiler rooms in at least four countries that induced investors in penny stocks, including many of the same victims from the ‘pump and dump’ scheme, to pay advance fees that the defendants promised would enable the victim-investors to sell their penny stocks and recover losses that they incurred. In reality, the defendants simply stole the fees without providing any services, fraudulently extracting millions of additional dollars from their victims. Hundreds of victims live in Brooklyn, Queens and Long Island. As for the group’s recent plans to open a call center in Brooklyn, New York, a co-defendant said, “I tell you what man . . . hitting the Americans would be like taking money from a baby.” Sandy Winick also openly boasted in intercepted phone calls about how he maintained fake passports in assumed names and how regulators and law enforcement officials could never reach him in Thailand.
“As alleged in the indictment, the defendants Sandy Winick and Gregory Curry used our securities markets as a platform from which to run elaborate fraudulent schemes to victimize tens of thousands of unsuspecting investors across the globe. They swindled investors into buying billions of shares of worthless stock, then turned around and used a second scam to pick their pockets yet again. They thought that they could simply run away from their crimes. Today, with the help of our friends in Thai law enforcement, we once again showed that fraudsters cannot hide from the law,” stated United States Attorney Lynch. “I would like to thank our partners at FBI for their hard work on this important investigation.” Ms. Lynch also thanked the Royal Thai Police. Throughout the course of the investigation, significant assistance was also provided by the United States Embassies in Ottawa, Toronto, London, Bangkok and Beijing.
FBI Assistant Director-in-Charge Venizelos stated, “Sandy Winick and Gregory Curry were wanted for their alleged roles in one of the largest international penny stock frauds and advance fee schemes in history. Their arrests are a significant accomplishment for the FBI as we continue our work in this ongoing investigation. We would like to thank our overseas partners, especially the Royal Thai Police, for their ongoing assistance with this matter.”
Winick has been charged with one count of conspiracy to commit securities fraud, two counts of conspiracy to commit wire fraud, 15 counts of wire fraud, four counts of securities fraud and two counts of false personation of an officer of the United States. Curry has been charged with: one count of conspiracy to commit wire fraud, 5 counts of wire fraud and two counts of false personation of an officer of the United States. If convicted, Winick and Curry will face up to 20 years’ imprisonment for each count of conspiracy to commit wire fraud, substantive wire fraud and substantive securities fraud, and up to five years’ imprisonment for conspiracy to commit securities fraud. Winick and Curry face up to three years in prison for each count of false personation of an officer of the United States. In addition, all proceeds of fraudulent schemes are subject to forfeiture. Now that they have been arrested, Winick and Curry will begin extradition proceedings from Thailand to the United States. For the other defendants, the next court date is scheduled for September 5, 2013, at 12:30 p.m., before the Honorable William F. Kuntz II.
The government’s case is being prosecuted by Assistant United States Attorneys Christopher A. Ott, Sylvia Shweder and Melanie Hendry.
This prosecution was the result of efforts by President Barack 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. For more information on the task force, visit http://www.StopFraud.gov.
The Defendants
SANDY WINICK
Citizenship: Canada
Age: 55
Bangbok, ThailandGREGORY CURRY
Citizenship: Canada
Age: 63
Bangbok, Thailand_____________________________
1The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty..
San Jose CPA Convicted of Tax FraudRead the Press Release
SAN JOSE, Calif. – On August 16, 2013, a federal jury convicted Steven Frank Boitano with filing false tax returns, announced United States Attorney Melinda Haag and Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division.
According to evidence presented at trial, beginning in 2004, Boitano, a Certified Public Accountant and partner with the accounting firm of Boitano, Sargent & Lily, was responsible for preparing the tax returns for his firm. As a part of these responsibilities, Boitano prepared Schedules K-1, which detailed each partner’s share of the firm’s income, in addition to his tax return preparation duties and other accounting related responsibilities for his clients. Boitano’s gross income for the years 2001 through 2007 was at least $275,000 for each year.
Between the years 1991 and 2007, Boitano failed to timely file his individual federal income tax returns. Instead, for each of these years, he submitted a request for an extension of time to file his tax returns from April until August or October, including a payment with the extension requests. Thereafter, as the extended due dates for each year passed, Boitano failed to file his individual income tax returns.
Boitano was audited by the IRS at least twice between 1991 and 2007. In 1995, the IRS prepared Substitutes for Returns and made tax assessments on Boitano’s behalf for 1991, 1992 and 1993. Despite the contact with the IRS, Boitano continued to fail to file personal income tax returns. In 2005, the IRS again prepared a Substitute for Return and tax assessment on Boitano’s behalf for 2004. In June of 2009, the case was assigned to an IRS Revenue Agent. The Revenue Agent met with Boitano three times. During the third meeting, Boitano provided the Revenue Agent with signed married filing-jointly federal income tax returns [Forms 1040] for 2001, 2002, and 2003. On each of these returns, Boitano falsely and fraudulently reported making estimated tax payments of $26,000, $38,000, and $57,000, respectively. As a result of these fabricated estimated tax payments, each return claimed a refund to which Boitano was not entitled.
On the first day of trial, Boitano pleaded guilty in open court to Counts Four, Five and Six of the Indictment, charging him with failing to file federal income tax returns for 2005, 2006 and 2007. The Jury convicted him of counts One, Two, and Three of the Indictment, charging him with filing false tax returns for 2001, 2002 and 2003.
Boitano, 58, of San Jose, was indicted on August 25, 2011.
The maximum statutory penalty for each count of filing a false tax return, in violation of Title 26, U.S.C § 7206(1), is three years in prison and a fine of $250,000. The maximum statutory penalty for each count of failure to file a tax return, in violation of Title 26, U.S.C § 7203, is one year in prison and a fine of $100,000. However, any sentence following this conviction will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Michael G. Pitman and Trial Attorney Charles O’Reilly of the Justice Department Tax Division are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
San Diego Real Estate Developer, Mark Hofmann, Charged with Wire FraudRead the Press Release
MARK HOFMANN, age 55, a real estate developer from San Diego, California was charged in a one-count Bill of Information with wire fraud, announced United States Attorney Dana J. Boente.
According to the Bill of Information, in late 2008, HOFMANN sought investors to invest approximately $3,000,000 for the acquisition of an approximately five-acre tract of land adjacent to the Lakeview Regional Medical Center in Covington, Louisiana and for the development of two office buildings on that land. Ultimately, HOFMANN and his partner convinced Bolivar Investors Group, L.L.C., an investment group organized by members of the Crescent River Port Pilots’ Association, to invest the money. Together, HOFMANN, his partner, and Bolivar, created a new entity, “Newtrac West,” to facilitate the purchase and development in February 2009. Shortly thereafter, HOFMANN and his partner opened a bank account in the name of Newtrac West for which only they were listed as signatories. Between January 20, 2009, and July 14, 2009, Bolivar made six deposits, including five by wire, into the Newtrac West bank account, totaling approximately $3,000,000.
The Bill of Information further alleges that between January 26, 2009, and December 14, 2009, on at least twenty-four occasions, HOFMANN withdrew funds from the account without authorization and used them to repay his personal expenses and debts apart from and unrelated to the purchase or development of the land in Covington. In total, HOFMANN misappropriated approximately $404,000. Subsequently, HOFMANN and his partner created doctored bank statements based on the real bank statements for the Newtrac West account that were designed to hide the unauthorized withdrawal of funds for HOFMANN’S personal use, and, further, to deceive representatives of Bolivar into believing that Newtrac West was in excellent financial condition. HOFMANN provided these fraudulent statements to Bolivar’s representatives regularly.
If convicted, HOFMANN faces a maximum term of imprisonment of not more than 20 years, followed by up to 3 years of supervised release, and a $250,000 fine.
United States Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
(Download Bill of Information )
Sam Vernon Windy Boy, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 16, 2013, before Chief U.S. District Judge Dana L. Christensen, SAM VERNON WINDY BOY, JR., a 68-year-old resident of Box Elder and an enrolled member of a federally recognized tribe, was sentenced to a term of:
- Prison: 63 months
- Special Assessment: $100.00
- Supervised Release: 10 years
WINDY BOY was sentenced in connection with his guilty plea to abusive sexual contact.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In August of 2012, WINDY BOY was in his home alone with the 9-year-old victim. WINDY BOY approached the victim in the living room/kitchen area and made sexual contact.
The offense occurred within the exterior boundaries of the Rocky Boy's Indian Reservation.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WINDY BOY will likely serve all of the time imposed by the court. In the federal system, WINDY BOY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Salem Engineering Firm Settles Lawsuit Alleging Fair Housing Act ViolationsRead the Press Release
PORTLAND, Ore. – The Justice Department announced today that the engineering firm, Multi/Tech Engineering Services, Inc., (Multi/Tech) located in Salem, Oregon, has agreed to pay $60,902.70 to settle a lawsuit pending in the U.S. District Court of Oregon, which alleges that Multi/Tech violated the Fair Housing Act by designing an apartment complex with steps and other features that made it inaccessible to persons with disabilities. This settlement will both assist in compensating victims of discrimination and in removing accessibility barriers at Gateway Village, a 275-unit complex in Salem. In May 2013, the Justice Department and the Fair Housing Council of Oregon (FHCO) had previously settled with the developers of the property under similar injunctive terms and monetary relief. This settlement resolves the remaining substantive claims of the lawsuit.
Under the terms of the parties’ agreement, Multi/Tech will pay $7,902.20 in damages to the FHCO, which had intervened in the lawsuit as an aggrieved person under the Fair Housing Act. Multi/Tech will also pay an additional $32,000 to a settlement fund for the purpose of compensating individuals with disabilities who were impacted by the alleged accessibility violations. Furthermore, Multi/Tech will pay $21,000 to a fund established to take extensive actions to make the complex accessible to persons with disabilities. These corrective actions, which will be taken by the developer, include removing steps from sidewalks, widening interior doorways, reducing threshold heights, replacing excessively-sloped portions of sidewalks, and installing properly-sloped curb ramps to allow persons with disabilities to access the sidewalks from the parking areas.
“Steps, narrow doors and other accessibility barriers prevent people with disabilities from exercising the same rights to obtain housing of their choice that other people enjoy,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “We will hold builders and designers accountable and those who fail to follow the law will face enforcement action.”
“The right to accessible housing is a fundamental protection afforded by law,” stated U.S. Attorney Amanda Marshall. “I am committed to working with the Fair Housing Council of Oregon, and our federal, state, and local partners to ensure that those who design and construct housing units make them accessible to persons with disabilities in compliance with the Fair Housing Act.”
The lawsuit, filed in September 2011, arose as a result of a complaint filed by the Fair Housing Council of Oregon with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department.
“This settlement highlights the importance of the designer in guaranteeing equal opportunity access to housing for people with physical limitations. We encourage building design professionals around the country to understand their responsibility under the Fair Housing Act’s 1988 design and construction requirements and go well beyond these minimum standards to make all housing fully accessible, ” said Pegge McGuire, Executive Director, Fair Housing Council of Oregon.
“For more than two decades the law has required that newly-built multifamily housing provide equal access to people with disabilities,” said Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity. “Throughout that time, HUD and the Department of Justice have educated builders, design professionals and others on those requirements, most recently through guidance issued this past April. Where those efforts fail, our agencies will gain compliance through enforcement of the law.”
Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement. Persons who believe they were subjected to unlawful discrimination at Gateway Village either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993, or e-mail the Justice Department at [email protected].
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
For more information, please see the attached consent order Here
Rosebud Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Abusive Sexual Contact was sentenced on August 19, 2013, by U.S. District Judge Roberto A. Lange.
Laun Leroy McCloskey, age 19, was sentenced to 37 months in custody, 8 years of supervised release, and $100 to the Federal Crime Victims Fund.
McCloskey was indicted by a federal grand jury on April 2, 2013, and pled guilty to the charge on April 30, 2013.
The conviction stems from an incident that took place on March 16, 2013, when McCloskey had sexual contact with a minor.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
McCloskey was remanded to the custody of the U.S. Marshals Service.Rockford Man Sentenced to 84 Months in Federal Prison for Traveling to California to Engage in Sex with A MinorRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced today by U.S. District Judge Frederick J. Kapala to 84 months in federal prison for traveling from Illinois to California to engage in sex with a minor, of which 48 months are to be served consecutive to imprisonment on an Illinois state sentence. The defendant, DONALD TROTTER, 58, who pled guilty to the federal charges on Aug. 14, 2012, was also ordered by Judge Kapala to pay a fine of $25,000, as well as the cost of his representation by the Federal Public Defender.
Trotter has been in custody since his arrest on Aug. 5, 2009, in Long Beach, California, where he was ordered to be returned to Illinois to face both federal and state charges. According to the written plea agreement filed in federal court, Trotter had a sexual relationship with a 13 year old victim during and prior to 2009. During the relationship, Trotter told the victim that his true name was “Daniel Black” and that he was a government agent. After renting an apartment in Long Beach, California, intending to cohabit with the victim, Trotter arranged for the victim to travel to California on Aug. 1, 2009. On Aug. 3, 2009, Trotter traveled by plane from Illinois to California intending to engage in sexual acts with the minor victim.
Trotter was previously convicted in Illinois of state charges, including three counts of criminal sexual assault and one count of child abduction. He was sentenced to a total of 45 years in state prison and is presently serving that sentence. Following his release from Illinois state prison, Trotter will be taken into federal custody to serve the sentence imposed by the federal court. He will not be eligible for parole on his federal sentence.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Chet Epperson, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Rochester Woman Under Indictment for Threatening to Kill the President Arrested for Violating Pre-Trial Release ConditionsRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Christine Wright Darrisaw, 37, of Rochester, N.Y., who is currently under indictment for threatening to kill the President and making a false statement to Secret Service Agents, was arrested and charged with violating her conditions of pre-trial release.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that following the defendant’s arraignment in August 2012, Darrisaw was released on conditions pending trial. On August 19, 2013, the Government moved to have the defendant arrested and detained based on several recent police contacts, including arrests, Darrisaw has had while on release awaiting trial.According to the motion filed by the Government, the defendant was arrested by the Rochester Police Department on July 12, 2013 for disorderly conduct. On July 25, 2013, a warrant was issued for the defendant’s arrest after Darrisaw allegedly entered the Rochester Library which she is banned from entering.
On August 12, 2013, during an incident at the Webster Avenue Rec Center, the defendant allegedly told a victim “My husband has guns. I’m gonna shoot you! I’ll shoot every guy here, and I’ll kill anyone that touches my kids!” before making a reference to President Obama. And on August 14, 2013, Darrisaw allegedly called the Social Security Administration’s 800 Number and stated “I am going to the office tomorrow and take that agent to hell with me” before ending the call.
The defendant is being held pending a detention hearing which is scheduled for August 23, 2013 at 9:30 a.m. before U.S. Magistrate Judge Jonathan W. Feldman.The arrest is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Pharmacist Pleads Guilty to Wire FraudRead the Press Release
COEUR D’ALENE – Steven R. Milot, 66, of Kellogg, Idaho, pleaded guilty today to wire fraud, U.S. Attorney Wendy J. Olson announced. Milot was charged in a one count information filed in United States District Court on July 24, 2012.
According to the plea agreement, Milot was employed as a pharmacist at Osburn Drug in Kellogg for many years. In 2012, the owner became suspicious that Milot was misappropriating controlled substances. After conducting an abbreviated audit, the owner found that the pharmacy was short several controlled substances; video surveillance recorded Milot misappropriating the drugs. Milot admitted to stealing large quantities of Oxycontin for his personal use. In order to cover up the theft and avoid detection, Milot ordered controlled substances via wire transmissions.
The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set is November 12, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the Tactical Diversion Group of the Drug Enforcement Administration and the Idaho State Police.
Oney Joseph Baker Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 16, 2013, before Chief U.S. District Judge Dana L. Christensen, ONEY JOSEPH BAKER, a 39-year-old resident of Great Falls, was sentenced to a term of:
- Prison: 210 months
- Special Assessment: $100.00
- Supervised Release: 5 years
BAKER was sentenced in connection with his guilty plea to being a felon-in-possession of firearms and an armed career criminal.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
On August 17, 1999, BAKER was sentenced in U.S. District Court to 51 months imprisonment after a jury found him guilty of conspiracy to distribute a controlled substance, possession with intent to distribute a controlled substance, and distribution of a controlled substance. The sentence of imprisonment was to be followed by three years of supervised release, wherein the court ordered BAKER to not own or possess a firearm.
On October 30, 2002, the Montana Eight Judicial District Court in Cascade County sentenced BAKER for the crime of felony criminal possession of dangerous drugs. Specifically, the court sentenced BAKER to three years to the Department of Corrections, and ordered Baker to not own, possess, or be in control of any firearms or deadly weapons.
On April 27, 2007, the Montana Eighth Judicial District Court in Cascade County sentenced BAKER for three felony convictions: assault with a weapon, theft, and robbery. The three convictions were from different cases, however, they were resolved in one global plea agreement and sentencing. The court sentenced BAKER to ten years imprisonment at the Montana State Prison. It also specifically ordered that he "shall not own, possess, or be in control of any firearms or deadly weapons."
On July 8, 2012, around 3:09 pm, Great Falls police officers were dispatched to Bobo's Casino for a report of an armed robbery. Officers arrived at Bobo's and spoke with an employee of the casino. The employee said she had been throwing trash away when a man entered the casino through the east side door. She turned toward the man and he pointed a small black handgun at her head. The man, described as a Native American male, approximately 5'9" and 160 pounds, yelled, "give me the money, bitch!" The employee emptied the money in her apron, which contained approximately $300 to $400 dollars in cash. The man became upset and said, "that's, not all there is, bitch!" The employee opened the cash register. The register contained only loose change and the man tossed the register in anger once he saw it did not contain any cash. He ran out of the same east side door, got into a green minivan, and drove off at a high rate of speed.
The manager of Bobo's Casino arrived shortly thereafter and pulled up the surveillance video of the time of the robbery. Officers observed that the robbery took place exactly as the employee had described. Detectives then began to investigate the robbery, and numerous tips were called in to the police department.
The next day a concerned citizen called the police and stated there was a suspicious green minivan parked on the street that he had not seen the previous evening. Officers responded to the report of the suspicious car. They believed the parked minivan matched the description of the minivan used in the robbery. After again viewing the surveillance video, the officers found the minivan in the video was clearly the minivan parked on the street.
Numerous other tips continued to be reported. The tips and further investigation indicated that BAKER had robbed the casino.
On July 18, 2012, law enforcement observed BAKER leave a house carrying a dark colored piece of rolling luggage and a blue duffel bag. BAKER was with two other individuals. Law enforcement began to follow the car once BAKER drove away. At one point, BAKER tried to conceal the car by driving into an alley. A Deputy U.S. Marshal turned on his top lights and siren to initiate a traffic stop and the car immediately fled at a high rate of speed through neighborhood streets.
The car stopped at an apartment complex and all three people fled on foot. Police caught the other individuals, but BAKER had fled through the neighborhoods. Law enforcement yelled at BAKER to stop running and he refused to stop. BAKER dropped the duffel bag near a garage as he ran. A neighbor recovered the duffel bag and provided it to police. Three detectives finally apprehended BAKER who had to be held down by all three men.
Detectives searched the duffel bag they recovered from BAKER, as well as the vehicle. The detectives recovered a Lorcin, model L380, .380 caliber semi-automatic pistol from the front passenger seat floorboard. This pistol had been in BAKER's possession, and it contained seven rounds of .380 caliber ammunition, including one round that was in the chamber. A search of the duffel bag revealed a fully loaded Mossberg, model 500A, 12 gauge pump action shotgun. Law enforcement seized five rounds of 12 gauge ammunition from the shotgun. Detectives also found 25 rounds of 20 gauge ammunition and 18 rounds of .380 caliber ammunition in the duffel bag.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BAKER will likely serve all of the time imposed by the court. In the federal system, BAKER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Great Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ohio Man Fined $8,000, Forfeits IvoryRead the Press Release
An Ohio man was fined $8,000 and ordered perform community service after previously pleading guilty to falsely labeling a package containing wildlife items, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio
Mark St. John, 53, of Northwood, Ohio, falsely labeled an elephant ivory shipment destined for an overseas buyer on June 1, 2011, according to court documents.
He also forfeited his collection of more than 700 pieces of ivory as part of the plea, according to court documents.
The investigating agency in this case is the United State Fish & Wildlife Service, Delaware, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
Northern California Residents Indicted for Filing False Liens Against IRS Employees and Tax FraudRead the Press Release
The Justice Department announced today the unsealing of a superseding indictment returned by a federal grand jury in Sacramento, Calif., charging Teresa Marie Marty, Charles Tingler and Victoria Tingler, all of Placerville, Calif., with conspiracy to defraud the United States and filing multi-million dollar liens against government officials.
Marty is charged with filing liens against the property of three Internal Revenue Service (IRS) employees involved in the collection of taxes she owed the IRS. She also filed liens of at least $84 million against the property of two Justice Department attorneys involved in a lawsuit filed against her in 2009 to enjoin her and her business, Advanced Financial Services (AFS), from preparing tax returns.
According to the superseding indictment, the Tinglers were clients of Marty and AFS, who filed a false tax return in 2008 fraudulently claiming a refund of $358,415. The indictment charges the Tinglers, as well as Marty, with filing this tax return. When the IRS tried to collect the fraudulently obtained refund, both Mr. and Mrs. Tingler filed multiple liens against the IRS revenue officer who was handling their collection case.
According to the charging documents the liens disclosed the social security numbers of the respective government employees. Marty and the Tinglers are also charged with multiple counts of unlawfully using the social security numbers of the government employees in the liens they filed with the California Secretary of State.
Finally, the indictment charges Marty, Mr. Tingler and AFS office manager Pamela Harris, of Placerville with participating in a conspiracy to defraud the IRS. The indictment alleges that as part of the conspiracy, Harris and Marty engaged a commercial collection agency to collect one of the three false liens that Mr. Tingler had filed, one of which was in the amount of $500,000.
Marty, Harris, and Marty’s daughter, Rebecca Bandera-Marty, had previously been indicted in June 2013 for a large-scale tax-fraud scheme. Those charges are included in this superseding indictment. According to the superseding indictment, in 2008 and 2009 Marty, Bandera-Marty, and Harris conspired to file at least 250 false individual federal income tax returns on behalf of individuals who resided in twenty-six states, and which claimed more than $60 million in false federal income tax refunds.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face up to five years in prison for the conspiracy charge as well as each charge of filing a false claim and unlawfully disclosing a social security number. Each retaliatory lien count carries a maximum penalty of 10 years in prison.
The case was investigated by the Treasury Inspector General for Tax Administration and by IRS-Criminal Investigation and is being prosecuted by Justice Department Tax Division Trial Attorney Ignacio Perez de la Cruz and Assistant U.S. Attorney Matthew Segal in the Eastern District of California.
North Dakota Man Pleads Guilty to Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Ricardo Avila, age 53, of North Dakota, appeared before U.S. District Judge Roberto A. Lange on August 19, 2013, and pled guilty to Count I of the Indictment that charged him with Distribution of a Controlled Substance.
The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; at least 3 years of supervised release and an additional 2 years of supervised release upon revocation; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
An undercover officer connected with the Northern Plains Safe Trails Drug Enforcement Task Force was introduced to Avila and arranged a purchase of cocaine from him. On April 12, 2012, Avila delivered to the undercover officer a substance that testing confirmed was 28.3 grams of powder cocaine, a Schedule II controlled substance.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Avila was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for November 18, 2013.New York Resident Sentenced to More Than Six Years Imprisonment on Oxycodone ConvictionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Eight Others Appear for Pleas and Sentencing
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II
announced that the following individuals recently appeared in Federal Court in Clarksburg.BRIAN CLARKE, age 25, of Brooklyn, New York, was sentenced to 78 months imprisonment to be followed by three years of supervised release pursuant to an earlier entered plea of guilty to “Distribution of Oxycodone” in Monongalia County, West Virginia. CLARKE was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Attorney Zelda E. Wesley and investigated by the West Virginia State Police.
NATHAN SCOTT, age 29, of Columbus, Ohio, was sentenced to 63 months imprisonment to be followed by three years of supervised release for pursuant to an earlier entered plea of guilty to “Possession with Intent to Distribute Cocaine” SCOTT was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Attorney Zelda E. Wesley and investigated by Morgantown Police Department, West Virginia State Police and the United States Marshals Office.
ANTHONY CRIPPIN, age 29, of Morgantown, West Virginia, was sentenced to 41 months imprisonment to be followed by six years of supervised release pursuant to an earlier entered a plea of guilty to “Distribution of Heroin within 1,000 Feet of WVU.” CRIPPIN was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the Mon Valley Drug Task Force and the West Virginia State Police. The task force consists of officers from Morgantown Police Department, the Monongalia County Sheriff’s Department, and the Drug Enforcement Administration.
JENNIFER KELLEY, age 28, of Morgantown was sentenced to four years probation, with the first eight months to be served under home confinement with electronic monitoring, pursuant to an earlier entered plea of guilty to “Distribution of Cocaine Hydrochloride.” This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and was investigated by the West Virginia State Police-Bureau of Criminal Investigations.
SHANE LEWIS GILLESPIE, age 24, of Clarksburg, entered a plea of guilty to “Possession of a Firearm by an Unlawful User of and Addict to a Controlled Substance.” GILLESPIE, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clarksburg Police Department and the Belpre, Ohio, Police Department.
ORTHON HERNANDEZ, age 30, an inmate at USP Hazelton, entered a plea of guilty to “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” HERNANDEZ was sentenced to 24 months imprisonment to run consecutive to his current 93-month sentence.
BERNARD BATTLE, age 39, an inmate at USP Hazelton, entered a plea of guilty to four counts of “Indecent Exposure.” BATTLE was sentenced to 360 days imprisonment to run consecutive to his current 36-year sentence.
The HERNANDEZ and BATTLE cases were prosecuted by Assistant United States Attorney Brandon S. Flower and investigated by the Special Investigative Services Unit at USP Hazleton.
CASEY SMITH, age 21, of Morgantown, West Virginia, entered a plea of guilty to “Distribution of Oxycodone.” SMITH, who is free on bond pending sentencing, faces up to 20 years imprisonment and a $1,000,000 fine. This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and investigated by Mon Valley Drug Task Force.
TIMOTHY LINGO, age 30, of Westover, West Virginia, entered a plea of guilty to “Felon in Possession of a Firearm.” LINGO, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives.
New York Maintenance and Construction Company Owner Pleads Guilty in Manhattan Federal Court to Failing to Pay Payroll TaxesRead the Press Release
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, announced today the guilty plea of Thomas Nastasi III, 46, of Mt. Kisco, N.Y., to one count of willful failure to pay the Internal Revenue Service (IRS) the payroll taxes of his company, Nastasi Maintenance & Construction LLC. Nastasi pleaded guilty before U.S. District Judge Paul G. Gardephe in the Southern District of New York.
According to the previously filed indictment and statements made during Nastasi’s guilty plea, from 2001 through 2011, Thomas Nastasi III owned and operated several Manhattan construction and maintenance companies, including Nastasi Maintenance & Construction. As the president of the companies, Nastasi was responsible for withholding payroll taxes from his employees and paying them over to the IRS. Those taxes included the employees’ income taxes, Social Security, and Medicare taxes. Nastasi accumulated over $1.7 million in payroll taxes that were owed but never paid to the IRS. Those taxes included the employer’s portion of Social Security and Medicare taxes for his employees.
Court documents and statements also established that instead of paying the companies’ payroll taxes to the IRS, Nastasi used company funds to pay hundreds of thousands of dollars in personal expenses, for items including boat-related expenses and cigars. Nastasi also made false statements to the IRS in the course of its attempts to obtain delinquent tax returns and collect the corporate and personal taxes owed by Nastasi and his companies.
“Employers who use taxes withheld from their employees’ paychecks to fund their own lavish lifestyles instead of paying over the funds to the government show a blatant disregard not only for the law, but also for all honest taxpayers who work hard and play by the rules,” said Assistant Attorney General Kathy Keneally. “Business owners who commit these crimes not only face jail time, but also must repay the stolen taxes, with interest and penalties.”
“Business owners who misdirect employment taxes to their own personal ends are stealing from their employees and all taxpayers’ futures,” said Richard Weber, Chief of IRS Criminal Investigation. “Thomas Nastasi III funded an extravagant lifestyle with his ill-gotten gains, including $67,000 spent on cigars. When investigated, he made false statements in an attempt to obstruct our special agents. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes.”
Sentencing is set for Dec.19, 2013, at 2:30 p.m. before Judge Paul Gardephe.
Assistant Attorney General Keneally thanked special agents of IRS-Criminal Investigation and the U.S. Attorney’s Office for the Southern District of New York for their efforts in this case.
Tax Division Assistant Section Chief Nanette L. Davis is prosecuting this case.
New Jersey Businessman Sentenced for Tax and Fraud ChargesRead the Press Release
PHILADELPHIA - Mark Olkowski, 62, of North Wildwood, NJ, was sentenced today to three months in prison for filing false personal income tax returns with the Internal Revenue Service from 2006 through 2009 and wire fraud. Olkowski, a business partner in K & O Sporting Goods on Moyamensing Avenue in Philadelphia, pleaded guilty on April 24, 2013 to the tax charges and to 15 counts of wire fraud committed upon the Pennsylvania State Unemployment Compensation system. K & O is a distributor of t-shirts and other clothing items to labor unions, municipalities, and political candidates.
Between 2006 through 2009, Olkowski failed to report a total of approximately $148,000 of income to the IRS. The unreported income included significant sums of cash received by K & O but which Olkowski pocketed and did not deposit to K & O business accounts. It also included income he received from making personal expenditures using corporate credit cards. The tax loss on this unreported income is approximately $25,000.
Olkowski made two false applications for unemployment compensation benefits. In his applications, Olkowski falsely claimed to have been laid off from K & O, and did not tell unemployment compensation authorities that he was an owner of K & O Sporting Goods and that he was receiving income from K & O while he was applying for unemployment benefits. The loss to the unemployment compensation system is approximately $16,000.In addition to the prison term, U.S. District Court Judge Harvey Bartle III ordered Olkowski to pay restitution to the IRS in the amount of $56,459, which he has paid, and to the Pennsylvania State Unemployment Compensation system in the amount of $16,046, a fine of $15,000, a $1,900 special assessment, and two years of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Paul L. Gray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mingo Pedophile Who Produced Child Pornography Pleads Guilty to Federal ChargeRead the Press Release
Paul Jenkins left DVD that contained a video of child pornography inside rented computer
CHARLESTON, W.Va. – A 33-year-old Mingo County pedophile faces up to 30 years in prison after pleading guilty to production of child pornography, announced U.S. Attorney Booth Goodwin. Paul Silas Jenkins, of Williamson, pleaded guilty today in federal court before United States District Judge John T. Copenhaver, Jr. in Charleston.
U.S. Attorney Goodwin said, “Cases involving the exploitation of innocent children are so critical. This case underscores the fact that sexual exploitation remains a serious problem.” Goodwin continued, “My initiative to combat despicable acts of child sexual abuse will continue.”
Beginning some time in 2010 and December 2011, Jenkins established a relationship with a minor between the age of 12 and 16 years old. During that time, Jenkins persuaded the minor to perform sexual acts and then produced a video of the conduct. Jenkins copied the video containing child pornography onto a recordable DVD. The DVD was discovered inside a rented computer that was returned to a Rent-A-Center located in Pike County, Kentucky.
Jenkins is scheduled to be sentenced on November 20, 2013.
The FBI and the West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Jennifer Rada is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Marshall County Resident Convicted for the Conspiracy to Distribute HeroinRead the Press Release
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(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Six Others Appear for Pleas and Sentencing
WHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II
announced that the following individuals recently appeared in Federal Court in Wheeling.AMANDA ALLISON, age 26, of Cameron, West Virginia, entered a plea of guilty to “Conspiracy to Distribute Heroin” from January of 2013 to April 6, 2013. ALLISON, who is in custody pending sentencing, faces up to 20 years imprisonment and a fine of $1,000,000
TYLER JAY HOYLE, age 22, of Waynesburg, Pennsylvania, co-defendant of ALLISON, was sentenced to 70 months imprisonment to be followed by three years of supervised release for “Conspiracy to Distribute Heroin” from January of 2013, to April 6,
2013. in Cameron. HOYLE was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case will be prosecuted by Assistant United States Attorney Randolph J. Bernard and investigated by the Marshall County Drug Task Force consisting of officers and agents from the Moundsville Police Department, the Marshall County Sheriff’s Department and the Drug Enforcement Administration.ERICA MORRIS HERCULES, age 29, of Wheeling, was sentenced to 18 months imprisonment to be followed by three years of supervised release pursuant to an earlier entered plea of guilty to “Aiding and Abetting a Prohibited Person in the Possession of a Firearm.” HERCULES had previously been convicted in the Circuit Court of Ohio County of the felony offense of “Uttering.” HERCULES was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives along with the Wheeling Police Department.
MATTHEW SCOTT HEDRICK, age 32 and KIMBERLY LYNN NELSON, age 30, of New Martinsville, West Virginia, entered pleas of guilty to “Possession with Intent to Distribute Heroin.” HEDRICK and NELSON, who are in custody pending sentencing, face up to 20 years imprisonment and a $1,000,000 fine. This case was prosecuted by Assistant United States Attorney Randolph J. Bernard and investigated by the West Virginia State Police-Bureau of Criminal Investigations.
JAMES GREATHOUSE, age 23, of Wheeling, entered a plea of guilty to “Felon in Possession of a Firearm.” GREAT HOUSE, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine.
STEPHEN J. BOSICK, JR., age 18, of Weirton, West Virginia, entered a plea of guilty to “Use, Possession, Carrying and Brandishing a Firearm During a Crime of Violence.” BOSICK, who is free on bond pending sentencing, faces at least seven years and up to life imprisonment and a fine of $250,000.
The GREATHOUSE and BOSICK cases were prosecuted by Assistant United States Attorney Stephen L. Vogrin and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Madison Man Sentenced for Conspiracy and Theft of Government PropertyRead the Press Release
Jackson, Miss. – George Hilliard, 44, of Madison, was sentence in U.S. District Court today to 21 months in federal prison for conspiracy to commit theft of government property and theft of government property. He was also ordered to pay joint restitution in the amount of $20,499.00.
Hilliard was indicted along with three co-defendants following an FBI sting on September 30, 2011 involving the robbery of a motel room they believed was being used by a drug dealer. He was tried and found guilty by a jury on June 13, 2013.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Mike Hurst and Jerry Rushing.
The other defendants in this case have each pled guilty to theft of government property charges and been sentenced.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Lowellville Man Indicted on Child Pornography ChargesRead the Press Release
A federal grand jury returned a two-count indictment charging Paul C. Schumacher, Jr., age 50, of Lowellville, Ohio, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct and possessing child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about June 19, 2013, Schumacher knowingly received and distributed computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. Additionally, the indictment charges that on July 30, 2013, Schumacher possessed a computer containing child pornography.
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 violation. In all cases the sentence will not exceed that statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the United States Secret Service and the Ohio Internet Crimes Against Children Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Local San Diego Physician Charged with Multiple Counts of Tax EvasionRead the Press Release
San Diego – A local physician was arraigned this afternoon on eight counts of tax evasion. According to the indictment, from at least calendar years 2004 through 2011, William Richard Bailey, a physician of osteopathic medicine, provided physician services to the patients of several clinics operated by at least two other local doctors. Despite earning significant income, Bailey accomplished his tax evasion by concealing his income and by preparing and filing false federal income tax returns for the years 2004 through 2011 reporting $0 in taxable income and $0 in tax due and owing to the Internal Revenue Service (IRS).
As charged in the indictment, Bailey accomplished his tax evasion by using a purported “trust” and “unincorporated business trust organization” (UBO) during calendar years 2004 through 2011 to conceal income he earned as a physician from the IRS. To further his evasion, Bailey opened a bank account in the name of the UBO. Bailey received checks from at least two physicians who operated clinics in San Diego County where Bailey provided physician services in exchange for compensation. Bailey directed that the checks be made payable to the name of the UBO. According to the indictment, Bailey deposited these checks into the UBO bank account. Bailey then transferred funds from the “UBO” bank account to pay for his own personal expenses and benefit. During Bailey’s court appearance today, Assistant U.S. Attorney Joseph J.M. Orabona, who is prosecuting the case, stated that Bailey failed to report more than $1.1 million in income he earned during the calendars years 2004 through 2011, resulting in an alleged tax loss of approximately $300,000.
The arraignment took place today before U.S. Magistrate Judge Barbara L. Major. Bailey entered a plea of not guilty to the charges of tax evasion. The Court set a bond in the amount of $40,000. A motion hearing and trial setting is scheduled for September 27, 2013, before U.S. District Judge Cathy A. Bencivengo.
DEFENDANTS Criminal Case No. 13CR3046-CAB William Richard Bailey SUMMARY OF CHARGESTitle 26, United States Code, Section 7201 B Tax Evasion
AGENCY
Maximum Penalties: 5 years of imprisonment and $250,000 fineInternal Revenue Service-Criminal Investigations
An indictment or complaint itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Lebanon Man Pleads Guilty to Unlawful Possession of ExplosivesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Thomas Lee Stanton, 18, of Lebanon, Illinois, pled guilty in the United States District Court in East St. Louis to the charge of unlawfully possessing destructive devices. Stanton is scheduled to be sentenced on December 13, 2013. At that time, he faces maximum penalties of up to 10 years in prison, a $250,000 fine, and 3 years of supervised release.
In Court today Stanton admitted that on April 17, 2013, he possessed destructive devices including four “cricket” bombs, two Molotov cocktails, and other explosive making materials.
“As indicated in Court, Mr. Stanton’s plea was made without a recommended sentence. After a Pre-sentence Report is done, and all relevant factors are weighed, including the harms caused, the United States will make an appropriate recommendation to the Court as to Mr. Stanton’s sentence.” said United States Attorney Wigginton.
The case was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Illinois State Police; St. Clair County Sheriff’s Department; O’Fallon Police Department; Lebanon Police Department; Illinois Secretary of State Police Bomb Squad; Scott Air Force Base Explosive Ordnance Disposal K-9 Unit; O’Fallon Township High School Security Officers; and the St. Clair County State’s Attorney’s Office. The case is being prosecuted by Assistant United States Attorneys Liam Coonan and Ranley R. Killian.
Knoxville Resident Charles Bush Sentenced to Serve 151 Months in Prison for Child PornographyRead the Press Release
KNOXVILLE, Tenn. – Charles Wesley Bush, 33, of Knoxville, Tenn., was sentenced on Aug. 20, 2013, by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, to serve 151 months in federal prison.
Bush was indicted in October 2012 and pleaded guilty in March 2013 to a four-count indictment charging him with distribution and possession of child pornography. Bush came to the attention of federal authorities through his use of the internet to distribute child pornography. A forensic examination of his computer found him to be in possession of 232 images and 299 video files of child pornography.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Frank M. Dale, Jr. and Melissa Kirby represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Kamiah Man Pleads Guilty to Assaulting Woman with A Dangerous WeaponRead the Press Release
COEUR D’ALENE – Andrew Tony Blackeagle, 32, of Kamiah, Idaho, pleaded guilty today in United States District Court to assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Blackeagle was indicted by a federal grand jury on February 20, 2013.
According to the plea agreement, Blackeagle admitted that on October 12, 2012, within the boundaries of the Nez Perce Indian Reservation, he intentionally assaulted a woman with a knife. During the incident, which was witnessed by others, Blackeagle hit and kicked the victim, and threatened to cut her. The victim sustained multiple injuries, including a laceration to her scalp.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set is set for November 5, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the Federal Bureau of Investigation and Nez Perce Tribal Police, with the assistance of the Lewis County Sheriff’s Office.
Justice Department Settles Fair Housing Lawsuit with Multi/Tech Engineering Services Inc.Read the Press Release
The Justice Department announced today that Multi/Tech Engineering Services Inc., an engineering firm based in Salem, Ore., has agreed to pay more than $60,000 to settle a lawsuit alleging that it had violated the Fair Housing Act by designing Gateway Village Apartments with steps and other features that made it inaccessible to people with disabilities.
“Steps, narrow doors and other accessibility barriers prevent people with disabilities from exercising the same rights to obtain housing of their choice that other people enjoy” said Acting Assistant General for the Civil Rights Division Jocelyn Samuels. “We will hold builders and designers accountable and those who fail to follow the law will face enforcement action.”
This settlement will assist in compensating victims of discrimination and in removing accessibility barriers at Gateway Village, a 275 unit apartment complex in Salem. In May 2013, the Justice Department and the Fair Housing Council of Oregon (FHCO) also reached a settlement with the developers of the property to resolve the rest of the lawsuit, filed in September 2011. The settlement must still be approved by the court.
Under the terms of the parties’ agreement, Multi/Tech will pay $32,000 to a settlement fund to compensate individuals with disabilities who were impacted by the accessibility violations. Multi/Tech will also contribute $21,000 to the corrective actions already being undertaken by the developer according to the prior settlement agreement to make Gateway Village accessible to people with disabilities. These corrective actions include removing steps from sidewalks, widening interior doorways, reducing threshold heights, replacing excessively sloped portions of sidewalks and installing properly sloped curb ramps to allow people with disabilities to access the sidewalks from the parking areas. In addition, Multi/Tech will pay $7,902.70 in damages to the FHCO, the plaintiff-intervenor, whose investigation revealed the accessibility violations.
“The right to accessible housing is a fundamental protection afforded by law,” said U.S. Attorney for the District of Oregon Amanda Marshall. “I am committed to working with the Fair Housing Council of Oregon, and our federal, state and local partners to ensure that those who design and construct housing units make them accessible to people with disabilities in compliance with the Fair Housing Act.”
The lawsuit arose as a result of a complaint filed by FHCO with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department.
“For more than two decades the law has required that newly-built multifamily housing provide equal access to people with disabilities,” said Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity. “Throughout that time, HUD and the Department of Justice have educated builders, design professionals and others on those requirements, most recently through guidance issued this past April. Where those efforts fail, our agencies will gain compliance through enforcement of the law."
Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement. Those who believe they were subjected to unlawful discrimination at Gateway Village, either when they lived there or when they considered living there, should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993, or e-mail the Justice Department at [email protected] .
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Among other things, the Fair Housing Act requires that newly constructed multifamily housing with four or more units contain certain accessibility features so that the housing is accessible to and usable by people with disabilities.
For more information about the Civil Rights Division and the laws it enforces please visit www.usdoj.gov/crt .
Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Line at 1-800-896-7743, e-mail the Justice Department at [email protected] , or contact HUD at 1-800-669-9777.
Jury Convicts KC Woman of Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was convicted in federal court today of her role in a conspiracy that was responsible for distributing hundreds of kilograms of cocaine in Jackson County, Mo.
Tamiko Grandison, 41, of Kansas City, was found guilty of participating in a conspiracy to distribute cocaine in Jackson County between Jan. 1, 2004, and June 17, 2010. She was taken into custody immediately after the verdict was announced.
Evidence introduced during the trial indicated that Grandison was the conduit who made deliveries of cocaine to customers in the Kansas City area on behalf of her then-boyfriend, Jiles Johnson, formerly of Kansas City, Mo. Johnson, who testified at Grandison’s trial, is being prosecuted in a separate case in the Northern District of Georgia. The government alleges that tons of cocaine was smuggled across the Mexican border and distributed throughout the United States to Johnson and others.
Johnson brought cocaine to Kansas City in 30- and 50-gallon drums and broke it down into kilogram quantities in Grandison’s basement. Grandison stored multi-kilogram quantities of cocaine at her residence until it was delivered.
Grandison delivered hundreds of kilograms of cocaine to co-conspirators over the course of the conspiracy. She also picked up the money from these customers for Johnson, and helped him conceal the drug-trafficking conspiracy by laundering some of the proceeds.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about two hours before returning the guilty verdicts to U.S. District Judge DeanWhipple, ending a trial that began Monday, Aug. 19, 2013.
Under federal statutes, Grandison is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $4 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Charles E. Ambrose, Jr. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.Jury Convicts KC Man of Illegally Possessing FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of being a felon in possession of firearms.
Jamie D. Jones, 50, of Kansas City, was found guilty of two counts of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that Jones was in possession of a Jennings .380-caliber handgun on Nov. 10, 2010, for which he was originally indicted on Oct. 17, 2012. Jones sold the Jennings handgun for $150 to a confidential source who was working under the direction of police detectives.
Jones was also in possession of a Lorcin 9mm handgun on April 16, 2012, for which he was charged in a superseding indictment on May 22, 2013. When law enforcement officers executed a search warrant at Jones’s residence, they found the loaded Lorcin handgun inside a wall vent in Jones’s bedroom.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jones has prior felony convictions for robbery and fraud.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning the guilty verdicts to U.S. Chief District Judge Fernando J. Gaitan, ending a trial that began Monday, Aug. 19, 2013.
Under federal statutes, Jones is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorneys Leena V. Ramana and Sarah A. Castle. It was investigated by the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and Homeland Security Investigations.
Joscayne Denny Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 16, 2013, before Chief U.S. District Judge Dana L. Christensen, JOSCAYNE DENNY, a 33-year-old resident of Box Elder, was sentenced to a term of:
- Prison: 20 months
- Special Assessment: $200.00
- Supervised Release: 3 years
DENNY was sentenced in connection with his guilty plea to distribution of a controlled substance.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On March 30, 2012, DENNY knowingly gave two girls methamphetamine. Both girls smoked the methamphetamine out of a broken lightbulb. One girl was taken to the Northern Montana Hospital shortly after she ingested the methamphetamine. A toxicology report showed amphetamine was in her system.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DENNY will likely serve all of the time imposed by the court. In the federal system, DENNY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Guilty Plea in Long-running Investment SchemeRead the Press Release
DEFENDANT ADMITS HE PERSONALLY SOLICITED
OVER $2 MILLION WITH PHANTOM MINING ASSETSSan Diego, CA - United States Attorney Laura E. Duffy announced that Douglas Ellingson pleaded guilty today to participating in an investment fraud conspiracy that cheated victims from San Diego and elsewhere out of more than $2 million. Ellingson admitted that between April 2008 and September 2012, he conspired with co-defendant William Ison and others to fraudulently mislead investors about the nature and security of their investment, and induce victims into wiring money to one of several accounts under Ellingson’s control. Ellingson entered his plea to a wire fraud conspiracy before Magistrate Judge Bernard G. Skomal. He is scheduled to appear before U.S. District Court Judge Irma E. Gonzalez on October 28, 2013 for sentencing.
In entering his plea, Ellingson explained that he and Ison first conspired with James Pantazelos in early 2008 to fraudulently solicit investors by falsely promising that investments would be secured by valuable precious minerals obtained by Ison’s mining company, Olathe Mining Company (“OMC”). In fact, OMC had not begun mining operations, and its assets consisted of merely mining claims and extraction technology, not actual minerals. Pantazelos previously pleaded guilty in the Northern District of Illinois to one count of mail fraud arising from this scheme involving Ellingson and Ison. (United States v. Pantazelos, Case No. 11-cr-50078 (N.D. Ill.)). On February 15, 2013, Pantazelos was sentenced to 114 months in custody and ordered to pay over $3.3 million in restitution to victims
Ellingson further admitted that beginning in June 2008, he and Ison agreed to fraudulently solicit investments in OMC through Ellingson’s new business entity, Capital Advancement Systems (“CAS”). As with the Pantazelos scheme, Ellingson and Ison again fraudulently claimed that investments in CAS would be secured by OMC, although OMC had no liquid assets had not actually mined anything. Later, Ellingson and Ison expanded their falsehoods by fraudulently claiming to investors that funds would be backed by “guarantees” from Ison’s new company, Blue Diamond Excavation, Inc. (“BDE”). As Ellingson knew, however, BDE’s only assets were OMC’s non-liquid assets.
Later, Ellingson and Ison expanded their lies to potential investors by promising (1) that funds sent to CAS would never produce a loss, (2) that funds would be maintained in a bank account under Ellingson’s control, and (3) that funds would be used to secure loans for business deals, such that investor funds would never actually be placed at risk. In fact, Ellingson wired almost all of the funds directly to Ison, and was informed that Ison was sending 100% of the victim funds to an investment partner to be used in various business deals.
In order to promote Ison’s appearance of wealth to potential investors, Ellingson and Ison falsely claimed Ison was the head of a large non-profit foundation that gave over a “trillion dollars” to various humanitarian causes. They encouraged investors to hand over funds by promising that the profits would be used to support charitable causes.
Ultimately, the victims did not receive promised profits or a return of their original investments. In total, Ellingson personally obtained over $2 million from victims, almost all of which he wired directly to Ison.
United States Attorney Duffy stated that the prosecution of the wide-ranging conspiracy would continue. She thanked the Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation, which jointly investigated the matter. United States Attorney Duffy reminded the public to be wary of investment fraud scams that make promises that seem “too good to be true.” More information to help you avoid becoming the victim of an investment fraud scheme is located at www.stopfraud.gov/protect-securities.html.
DEFENDANT Case Number: 12CR4030-IEG Douglas Ellingson Age: 44 SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371 (Conspiracy)
AGENCIES
Maximum penalties: 5 years of custody; $250,000 Fine, or twice the gross gain/gross
loss resulting from the offenseFederal Bureau of Investigation
Internal Revenue Service - Criminal InvestigationFormer United Medical Center Employee Pleads GuiltyRead the Press Release
To Embezzling Over $335,000 in Overtime Pay
-Defendant Manipulated Electronic Time-Keeping System-WASHINGTON – Marlene L. Merchant, 54, of Washington, D.C., pled guilty today to a federal theft charge stemming from her embezzlement of more than $335,000 from her former employer, United Medical Center, announced U.S. Attorney Ronald C. Machen Jr. and Charles J. Willoughby, Inspector General for the District of Columbia.
Merchant pled guilty in the U.S. District Court for the District of Columbia to one count of theft concerning programs receiving federal funds. The Honorable Reggie B. Walton scheduled sentencing for Nov. 8, 2013. As part of the plea agreement, Merchant agreed to criminal forfeiture and restitution in the amount of $335,663. Under the voluntary federal sentencing guidelines, she faces between 18 and 24 months of incarceration.
According to the government’s evidence, from Oct. 28, 2002, through April 8, 2013, Merchant was employed as an administrative assistant by United Medical Center (UMC) and its predecessor, Greater Southeast Community Hospital. UMC is a non-profit community hospital located in Southeast Washington. As a non-union employee, Merchant was exempted from the overtime pay provisions of the Fair Labor Standards Act. As an “exempt” employee, she was not entitled or eligible to receive overtime pay from UMC, regardless of the number of hours she actually worked.
From January 2005 through March 2013, Merchant and the payroll manager at UMC manipulated UMC’s electronic timekeeping system to cause the hospital to pay the defendant $335,663 in overtime pay to which Merchant knew she was not entitled. In the beginning of the scheme, the payroll manager repeatedly changed Merchant’s status from “exempt” to “non-exempt” in the electronic timekeeping system, resulting in overtime pay. Starting in 2008, Merchant learned the log-in and password of her supervisor, which she then used, without permission, to change her status from “exempt” to “non-exempt” in the electronic timekeeping system. Merchant also changed her start and finish times from what her identification badge logs reflected to increase her work hours.
In announcing the guilty plea, U.S. Attorney Machen and Inspector General Willoughby commended the investigative work of Special Agent Anthony McGail of the District of Columbia Office of Inspector General. They also praised the efforts of Paralegal Specialist Corinne Laxman, Assistant U.S. Attorney Catherine K. Connelly, who worked on forfeiture issues, and Assistant U.S. Attorney David Johnson, who is prosecuting the case.
13-288Former Sales Broker Pleads Guilty in Manhattan Federal Court in Connection with Securities Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MAREK LESZCZYNSKI, a former sales broker, pled guilty today in Manhattan federal court to conspiring with others to commit securities fraud and wire fraud. Along with other individuals, LESZCZYNSKI defrauded clients out of millions of dollars by misrepresenting the prices at which securities were bought and sold, thereby enabling his former employer to earn undisclosed trading profits and himself and his co-conspirators to be awarded lucrative bonuses. LESZCZYNSKI pled guilty before U.S. District Judge John F. Keenan this afternoon.
Manhattan U.S. Attorney Preet Bharara stated: “Along with his cohorts, Marek Leszczynski sold his firm’s clients a bill of goods by repeatedly misrepresenting the prices of trade executions, all so he could increase firm profits and secure a hefty bonus. Ultimately, Leszczynski’s lies were exposed, and today’s conviction ensures he’ll be punished for his fraud.”
According to the Complaint, the Indictment, statements made during the plea proceeding, and other documents filed in Manhattan federal court:
From 2005 through December 2008, LESZCZYNSKI worked at a broker-dealer that was headquartered in London, England, with offices in Europe, Asia, and New York, New York (“Broker-Dealer 1”). Among other services offered, Broker-Dealer 1 bought and sold securities on behalf of institutional clients, such as commercial banks and investment firms, located throughout the United States and in various major European cities. LESZCZYNSKI worked as a sales broker for Broker-Dealer 1’s Cash Equity Desk in New York. In that capacity, he was responsible for, among other things, receiving orders to buy or sell securities from Broker-Dealer 1’s clients, relaying those orders to traders who executed the trades, communicating with clients as their orders were being filled, and sending out trading confirmations back to the clients that showed the prices at which securities were bought or sold, including the commissions, if any, that Broker-Dealer 1 charged.
Instead of accurately recording and reporting the actual execution prices of the securities, LESZCZYNSKI and his co-conspirators, Chouchane and Condron, who worked alongside LESZCZYNSKI at Broker-Dealer 1, misrepresented the prices of trade executions. Where Broker-Dealer 1 received a buy order from a client, LESZCZYNSKI and his co-conspirators caused the purchase price of the security that would be reported back to the client to be “marked up” from its actual purchase price. Additionally, where Broker-Dealer 1 received a sell order from a client, LESZCZYNSKI and his co-conspirators caused the sale price of the security that would be reported back to the client to be “marked down” from its actual sale price. These markups and markdowns were not disclosed to Broker-Dealer 1’s clients and were separate and apart from the agreed-upon commissions that were disclosed on trading confirmations sent to Broker-Dealer 1’s clients.
As a result of this fraudulent scheme, Broker-Dealer 1 earned millions in undisclosed trading profits to which it was not entitled. LESZCZYNSKI and his co-conspirators were paid inflated bonuses.
LESZCZYNSKI, 44, of Miami, Florida, pled guilty to one count of conspiracy to commit securities fraud and wire fraud. He faces a maximum sentence of five years in prison, as well as a maximum fine of $250,000 or twice the gross gain or loss from the offense. In addition, LESZCZYNSKI has agreed to forfeit $1.5 million as part of his guilty plea. LESZCZYNSKI is scheduled to be sentenced before Judge Keenan on December 19, 2013 at 11:30 a.m.
Chouchane, 39, of New York, New York, pled guilty before Judge Keenan on June 12, 2013, to one count of conspiracy to commit securities and wire fraud. He is scheduled to be sentenced before Judge Keenan on October 24, 2013.
Condron, 34, of Yorktown Heights, New York, pled guilty before U.S. District Judge Naomi Reice Buchwald on October 5, 2012, to two counts of conspiracy to commit securities fraud and one count of securities fraud. Condron’s sentencing date is pending.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission for their assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. 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.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Chi T. Steve Kwok is in charge of the prosecution.
U.S. v. Marek Leszcynski and Benjamin Chouchane Indictment
Former NBA Player Sentenced to Prison for Failing to Pay More Than $600,000 in Child SupportRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced kenneth ray williams , 44, of Elizabeth City, North Carolina, to 9 months imprisonment, followed by 1 year of supervised release. WILLIAMS was also ordered to pay $661,277.00 in restitution.
Investigation of this case was conducted by the Federal Bureau of Investigation. Valuable assistance was provided by the Albermarle Child Support Enforcement Agency. Assistant United States Attorney Banumathi Rangarajan handled the prosecution on behalf of the United States Attorney’s Office.
Williams was named in an Indictment filed on July 6, 2000 charging him with willful failure to pay child support in violation of Title 18, United States Code, Section 228(a)(3). On August 23, 2000, williams pled guilty to that charge.
According to the investigation and information in the public record, WILLIAMS was first ordered to pay $2,500.00 in child support. At the time, WILLIAMS was playing basketball with the Indiana Pacers. By 1994, he was earning a salary of $750,000/year. Despite the salary, he did not pay any support. In 1995, the support award was amended to include his third child and he was ordered to pay $3,750 per month for the support of his three children.
Despite earning salaries between $90,000 and $180,000 a year between 1995 and December 2000, WILLIAMS failed to support his children. While he played basketball, drove fancy cars and lived overseas, his former wife and three children were receiving Welfare and Aid to Families with Dependent Children benefits.
In July 2001, he caused his attorney to file a motion to continue a sentencing hearing set for July 31, 2001, claiming that he could not afford to travel to the United States. Unbeknownst to his lawyer, WILLIAMS was in the United States from July 12, 2001 through July 29, 2001, playing basketball with the Boston Celtics and the Denver Nuggets. WILLIAMS left the country and has remained overseas.
WILLIAMS failed to appear for a sentencing hearing in August 2001 and a warrant for his arrest was issued. WILLIAMS remained a fugitive until he was finally arrested on March 11, 2013.Former Fugitive and Furniture Store Owner Sent to Prison for Cocaine Trafficking and Money LaunderingRead the Press Release
CORPUS CHRISTI, Texas – Jose Francisco Serna, of Mission, has been handed a significant federal sentence following his convictions of conspiracy to launder monetary instruments and conspiracy to possess with the intent to distribute cocaine, United States Attorney Kenneth Magidson announced today. Serna pleaded guilty Nov. 19, 2012.
Serna was arrested in August 2012 after having been a fugitive in Mexico for several years. His conviction relates to his participation in a South Texas drug-trafficking and money laundering organization that used his furniture store as a business front to launder illegal drug proceeds.
Today, U.S. District Judge John D. Rainey, who accepted the guilty plea, handed Serna respective terms of 96 months on each count to be served concurrently for the drug and money laundering convictions. Serna was further ordered to pay a $5,000 fine on the money laundering count. Serna will also be required to serve a term of four years of supervised release following completion of the prison term.
Serna once owned and operated a retail furniture store in McAllen and began a drug venture on the side of his legitimate business with two of his associates in the furniture business. Serna later created Four Seasons Transport, a legitimate trucking company to transport secreted cocaine and currency between Mission and Atlanta, Ga. Cocaine was hidden in an axle of the tractor truck and was removed at “stash houses” in Lithonia and Savannah, Ga. Serna would then receive drug proceeds at his ranch in Mission. The drug proceeds were hidden in the same axle compartment of the tractor truck while being transported south. Serna used multiple bank accounts to hide the drug proceeds he had received, including his furniture business’ account.
At today’s hearing, Judge Rainey also entered a final order of forfeiture of Serna’s interest in a South Texas ranch, a piece of real property located in Hidalgo County valued at more than $300,000, which was used by Serna to conduct his drug business. At the ranch, Serna received cocaine load from Mexico for further distribution north to Georgia and South Carolina.
Serna will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Organized Crime Drug Enforcement Task Force investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service--Criminal Investigation and the U.S. Marshals Service. This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Federal Grand Jury Indicts Charleston Woman on Illegal Drug and Firearm Possession ChargesRead the Press Release
Three minor children in apartment that had three firearms, heroin
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Charleston woman was indicted today by a federal grand jury in connection with illegal drug and firearm possession offenses. According to a three-count indictment, Chandra K. Ross, 29, allegedly possessed heroin with intent to distribute on July 18, 2013 near Charleston. The indictment also alleges that on July 18, 2013, Ross possessed three firearms during and in relation to a drug trafficking crime.
A third count in the indictment returned today by a federal grand jury in Charleston alleges that Ross knowingly possessed a .22 caliber revolver which had an obliterated serial number.
On July 18, 2013, police executed a search warrant on Ross’ Charleston apartment. According to the search warrant affidavit accompanying the criminal complaint, police found $26,825 in cash, over 100 grams of heroin and three handguns at the residence. Two of the handguns were previously reported stolen and another handgun had an obliterated serial number, the affidavit says. Police also recovered $1,701 in cash from Ross’ purse. The affidavit further says that at the time of the investigation, Ross shared the residence with her three minor children.
Ross faces a mandatory minimum of five years and up to life in prison and a $1,500,000 fine, if convicted.
The investigation was conducted by the Kanawha Bureau of Investigations. Assistant United States Attorneys Steven Loew is in charge of the prosecution.
The case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Click here to view the criminal complaint
Click here to view the indictment
Fairbanks Man Sentenced to one year prison term for drug conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man was sentenced in federal court in Fairbanks, Alaska, for three counts of conspiracy and selling illegal drugs.
Steven Jacob Johnson, 26, of Fairbanks, Alaska, was sentenced on August 16, 2013, by Chief U.S. District Judge Ralph R. Beistline in Fairbanks, based on Johnson’s guilty pleas to charges that he conspired to distribute, and did distribute, illegal drugs in the Fairbanks area. He distributed the illegal chemical substances, 2C-E and 2C-I, which was sold as “ecstasy”. The court sentenced Johnson to a one year prison term and he was credited the ten months’ in prison he already served. His sentence also included 54 additional days of electronically monitored home confinement and three years of supervised release. The charges arose from Johnson’s selling the drugs on two occasions in 2012 to an undercover informant and Johnson’s negotiation of a third sale.
According to Assistant U.S. Attorney Stephen Cooper, who prosecuted the case, the facts Johnson admitted to in court showed that Johnson first sold 300 pills for $9 per pill, and was paid $2,700 in cash. Johnson’s second sale was for 800 pills he sold at $10 each for a total of $8,000. He negotiated a third sale of 900 pills. Each of these sales was filmed and recorded. Johnson conducted the sales for his partner who he said had manufactured the pills and he was observed giving most of the cash to his partner. 2C-E and 2C-I are phenethylamines that have chemical and pharmacological properties akin to LSD, ecstasy and other hallucinogenic drugs.
The co-defendant Jackson Drew pled guilty to conspiracy, distribution and possession with intent to distribute drugs. Drew is scheduled to be sentenced in Fairbanks on September 27, 2013.
Ms. Loeffler commends the U.S. Drug Enforcement Administration for the investigation of this case.Energy Company Employee Charged with Stealing Mineral Rights, Profiting from Fraudulent Lease or Sale to OthersRead the Press Release
PITTSBURGH, Pa. - A Jeannette man has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and wire fraud, United States Attorney David J. Hickton announced today.
The six-count indictment named Derek A. Candelore, aka Dan Kun, aka Kevin Kelly, 33, as the sole defendant.
According to indictment, Candelore was employed by Penn-Star Energy, LLC of Butler County ( Penn-Star), as a landman. Candelore worked at Penn-Star with another landman identified in the indictment as WJR. A landman contacts mineral rights owners on behalf of natural gas production companies to arrange for leases of mineral interests for oil and gas production. Penn-Star acquired mineral rights on behalf of Range Resources Corporation. The mineral rights for four separate blocks of land in Washington County, consisting of 100 or more acres, were stolen by Candelore using forged signatures, fake companies and forged notary signatures and stamps. These frauds began in February 2010 and ended in June 2012. During the scheme Candelore set up several post office boxes and bank accounts in the names of companies he created. He filed deeds and other documents at the Washington County Recorder of Deeds Offices to make it appear that the true mineral rights owners had transferred their mineral rights to Candelore's fake companies. These deeds had forged signatures of several true owners and forged notary signatures and stamps. Candelore's companies thereafter leased and/or sold the mineral rights to others. The indictment seeks the forfeiture of $1,177,735.27 of proceeds from the scheme. Candelore received the proceeds from each of the four blocks of mineral rights, while WJR received proceeds from two of the four. The victims include Range Resources Corporation, several mineral rights owners, Pecos Bend Royalties, LP, of Midland Texas, and Buffalo Royalties business entities in Texas.
The law provides for a maximum total sentence of 120 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
District Man Sentenced to 44-Month Prison TermRead the Press Release
For Sexually Assaulting Two Women
-Separate Incidents Took Place Within a Three-Week Period This Year-WASHINGTON - James Parks, also known as Antonio Parks, 22, of Washington, D.C. has been sentenced to a 44-month prison term for two sexual assaults that he committed earlier this year, U.S. Attorney Ronald C. Machen Jr. announced today.
Parks pled guilty in June 2013 in the Superior Court of the District of Columbia to attempted first-degree sexual abuse and misdemeanor sexual abuse. He was sentenced on Aug. 16, 2013 by the Honorable Robert E. Morin. Upon completion of his prison term, Parks will be placed on three years of supervised release. He also will be required to register as a sex offender for 10 years.
According to the government’s factual proffer at the plea hearing, on Jan. 25, 2013, Parks was at the home of one of the victims, on 23rd Street SE. That night, Parks sexually assaulted another woman while she was unconscious in an upstairs bedroom of the home.
On the night of Feb. 14, 2013, Parks was back at the same home. That night, he and another man forced the resident into the basement, where Parks sexually assaulted her.
In announcing the sentence, U.S. Attorney Machen praised the work of Paralegal Specialist Jason Manuel, Victim/Witness Advocate Lezlie Richardson and members of the Metropolitan Police Department’s (MPD) Sexual Assault Unit. He also commended the work of Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
13-289Developer, Praveen Kailas, Pled to Theft of Government Funds and Conspiracy ChargesRead the Press Release
PRAVEEN KAILAS, age 30, a resident of New Orleans, Louisiana, pleaded guilty to a bill of information charging him with one count of conspiracy to commit theft of government funds and one count of theft of government funds before U.S. District Court Judge Sarah S. Vance, announced U.S. Attorney Dana J. Boente. The indictment filed on June 27, 2013, and the plea filed on August 1, 2013, were unsealed today.
According to the court record, KAILAS’s charges stem from his company, Lago Construction, L.L.C.’s, overbilling its construction monitoring subcontract for the Louisiana Road Home’s Small Rental Property Program (“SRPP”). The Department of Housing and Urban Development (“HUD”) funds the SRPP which provides monetary assistance to property owners to repair their small scale rental properties damaged by Hurricanes Katrina or Rita. In order to receive the grant, a small rental property owner has to agree to make the renovated rental units available to moderate to low-income tenants for a period of years. HUD provided the State of Louisiana Office of Community Development with federal funds to administer the SRPP. The State of Louisiana in turn subcontracted with private entities to oversee the administration of the SRPP, including the renovation of the properties.
Starting on June 6, 2011, Lago Construction, L.L.C., began its subcontract performing construction monitoring of the renovations of SRPP funded properties. KAILAS’s theft of federal funds designated for SRPP administration began from the inception of Lago Construction, L.L.C.’s subcontract when one of the Lago Construction, L.L.C., stakeholders was billed for working on the subcontract 40 hours each week, but did not spend 40 hours each week performing SRPP construction monitoring services or any other administrative services. The theft continued until on or about November 16, 2012, as KAILAS, and others approved timesheets overstating the amount of hours other individuals worked on SRPP related activities.
In court documents associated with his guilty plea, KAILAS admitted that he and other stakeholders of Lago Construction, L.L.C., solicited monitors to work on the construction of a home they owned in New Orleans, Louisiana, and/or to work at other companies owned and operated by them. Hours that these monitors spent on other projects for KAILAS and other stakeholders of Lago Construction, L.L.C., were not deducted from the hours that were billed to the SRPP contract nor were the monitors paid separately for the work they performed on other projects. KAILAS and Lago Construction, L.L.C., were paid from federal dollars for these monitors as if they had spent all the hours they billed each week performing services related to the SRPP.
KAILAS is scheduled to be sentenced on November 13, 2013. He faces up to 5 years imprisonment on the conspiracy count and up to 10 years imprisonment on the theft of government funds count. The amount of restitution will be set by the Court.
The case was investigated by the Federal Bureau of Investigation, Department of Homeland Security, and Department of Housing and Urban Development. The case was prosecuted by Assistant United States Attorney Emily K. Greenfield.
(Download Bill of Information )
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David Ronald Evans, Sr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 16, 2013, before Chief U.S. District Judge Dana L. Christensen, DAVID RONALD EVANS, SR., age 54, was sentenced to a term of:
- Prison: 6 months
- Special Assessment: $100.00
- Supervised Release: 3 years
EVANS was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On May 24, 1994, EVANS received a felony conviction and was therefore prohibited from possessing firearms.
On October 1, 2011, EVANS was pulled over near Glasgow for suspected drunk driving. During his interaction with law enforcement, EVANS admitted he had a firearm and removed it from his person. The firearm was a Walther/Smith & Wesson, model PK380, .380 caliber semi-automatic pistol. The firearm had been transported from one state to another.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that EVANS will likely serve all of the time imposed by the court. In the federal system, EVANS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Co-Conspirator Admits Role in Theft from Coeur D'Alene TribeRead the Press Release
COEUR D’ALENE – Billy E. Moffitt, 26, of Lewiston and Plummer, Idaho, pleaded guilty today in United States District Court to conspiracy to commit theft from a tribal organization, U.S. Attorney Wendy J. Olson announced. A federal grand jury in Coeur d’Alene returned a two count indictment on May 21, 2013, charging Moffitt and Angeline Morago George, 36, of Plummer and Portland, Oregon, with conspiracy to commit theft and theft from a tribal organization.
According to the plea agreement, Angeline George was employed by the Coeur d’Alene Tribal Housing Authority and was issued a credit card related to her duties. Between February 2 and February 23, 2013, Moffitt and George drove from the Coeur d’Alene reservation to Spokane, Washington, where George purchased $4,175.26 in money orders from local Money Tree stores. George or Moffitt would then cash the money orders and use the cash for their personal use and benefit. As part of his agreement with prosecutors, Moffitt agreed to pay restitution to the Coeur d’Alene Tribal Housing Authority.
The charge of conspiracy to commit theft from a tribal organization is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Moffitt is set for sentencing on November 5, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
Co-defendant Angeline George is scheduled to plead guilty on August 30.
The case was investigated by Coeur d’Alene Tribal Police and the Federal Bureau of Investigation.
California Man Charged with Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Los Angeles, California, man has been indicted by a federal grand jury for Transportation for Prostitution, Inducing Travel to Engage in Prostitution, and Sex Trafficking.
Joe Charles Becker, a/k/a “Moses,” age 32, was indicted by a federal grand jury on August 13, 2013. He appeared before U.S. Magistrate Judge John E. Simko on August 19, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to life imprisonment, a $250,000 fine, or both; up to life on supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations and Becker is presumed innocent until and unless proven guilty.
In early August 2013, Becker allegedly transported the victim from Minnesota to Sioux Falls, South Dakota, with the intent that the victim would engage in prostitution and sexual activity for Becker’s financial benefit.The investigation is being conducted by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Becker was remanded to the custody of the U.S. Marshals Service. A trial date has been set for October 22, 2013.Bostwick Laboratories, Inc. Pays $503,668 to Resolve Civil Fraud Allegations That Its Sales Representatives Used A Clinical Study to Induce Physicians to Utilize Its ServicesRead the Press Release
Bostwick Laboratories, Inc. (“Bostwick”) has entered into a civil settlement agreement in which it agreed to pay the United States $503,668.00 to resolve allegations that the company made illegal payments to induce certain physicians to utilize Bostwick’s laboratory testing services – some of which were not medically necessary under the circumstances.
The settlement was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and Tom O’Donnell, Special Agent-in-Charge of New York’s Office of the Inspector General for the Department of Health and Human Services (HHS).
The government alleges that Bostwick made the illegal payments to physicians to induce them to enroll their patients in a study sponsored by Bostwick called “Determination of the Accuracy of PCA3Plus Urine Assay for the Detection of Prostate Cancer” (the “PCA3Plus Study”). One requirement of the study was that for each patient enrolled, the physicians were obligated to send both the PCA3Plus urine assay for the PCA3Plus Study and prostate biopsy samples – which otherwise could have been sent to any number of laboratories – to Bostwick for analysis. As a result, Bostwick in effect paid those physicians to steer their prostate biopsy analysis business to its laboratories. Bostwick then submitted claims to Medicare and Tricare for reimbursement for both the prostate biopsy test analysis and the PCA3Plus urine assay analysis for each patient enrolled in the PCA3Plus Study, even though the prostate biopsy was the “gold standard” for prostate cancer detection, and the PCA3Plus urine assay was not medically necessary in such situations. In settling this matter, Bostwick is not admitting the government’s allegations.
“Decisions involving medical treatment and testing go to the heart of the doctor patient relationship, and must be based on the needs of each patient and possibility of the advancement of science. They cannot and should not be based on illegal payments from laboratories. Our office is committed to stopping such inducements, and returning patient care to the forefront of the doctors’ decisions,” stated United States Attorney Lynch.
“In order to ensure the best possible treatment for our nation’s Medicare population, it is important that the relationship between labs and physicians be free of any illegal inducements, and we will continue to investigate such allegations,” stated HHS Special Agent-in-Charge O’Donnell.
The investigation that led to the settlement began after Robert Gluck, M.D., an urologist who had been approached by Bostwick regarding participation in the PCA3Plus Study, filed a complaint against the company on behalf of the United States in the Eastern District of New York. Under the federal False Claims Act, a private individual who has uncovered fraud against the federal government may file a suit in federal court on behalf of the United States. If the United States is successful in resolving those claims, the individual who filed the complaint may receive a share of the recovery.
The government’s case was handled by Assistant U.S. Attorneys Scott R. Landau and Paul Kaufman.
Blanchester Man Convicted of Selling Firearms to FelonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
Christopher Bradley, 38, of Blanchester, Ohio was convicted by a federal court jury in Cincinnati of two counts of selling firearms to a felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Christopher J. Hyman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), announced the guilty verdict returned by a jury following a five-day trial before U.S. District Court Judge Michael R. Barrett.
Bradley, and his brother Shannon Bradley, 36, of Leesburg, were indicted on April 4, 2012 on multiple counts of selling firearms to felons. Shannon Bradley previously pleaded guilty to one count of selling firearms to a felon, after obtaining guns from his brother, Chris Bradley, and then selling them to an informant.
According to trial testimony, in February 2012 Chris Bradley met with the same informant, who repeatedly mentioned that he planned to resell the firearms in Cincinnati to “people that might need to use them and ditch them” and to people that were “protecting their dope houses and not getting killed.” Bradley helped the informant carry six firearms and ammunition to the informant’s car, as he told the informant to keep the guns and ammunition separated in case he were pulled over. The informant commented that officials would never find the guns and ammunition because he was a felon, while Bradley helped the informant load his car. Bradley sold seven more guns and ammunition to the same informant two days later.
During a recorded phone call with Bradley on March 5, 2012, the informant again advised Bradley that he had one felony on his record. Bradley then sold a total of nine more guns and ammunition to the informant on March 9 and March 21, 2012. Testimony further revealed that Bradley sold guns at gun shows many times and would routinely asked people if they were felons.
Bradley faces a maximum sentence of 10 years in prison, 3 years of supervised release, and a fine of up to $250,000 on each count. He will be sentenced at a later date. His brother, Shannon, also awaits sentencing.
Stewart commended the investigation by ATF agents, along with Special Assistant United States Attorney Gregory Stephens and Cincinnati Branch Chief Anthony Springer, who are prosecuting the case.
Biggers Named Prevention and Reentry Coordinator as Part of “Smart on Crime” InitiativeRead the Press Release
Memphis, TN – U.S. Attorney Edward L. Stanton III today announced the appointment of Assistant U.S. Attorney C. David Biggers, Jr. as the Western District’s Prevention and Reentry Coordinator.
On August 12, 2013, in a speech to the American Bar Association’s Annual Convention, U.S. Attorney General Eric H. Holder, Jr. unveiled his “Smart on Crime” initiative, designed to modernize the federal criminal justice system. One key component of that plan calls for U.S. Attorneys to designate a Prevention and Reentry Coordinator within each of their offices to focus on prevention and reentry efforts.
Biggers has served as a career prosecutor, first as an Assistant District Attorney in Jefferson County, Alabama from 2006-2008, where he began his work in juvenile court. After serving as lead methamphetamine prosecutor, Biggers was appointed as a Special Assistant U.S. Attorney (SAUSA) for the Northern District of Alabama where he served in the Violent Crimes Division.
While serving as a SAUSA in Birmingham, Biggers was named as the U.S. Attorney’s Office representative to the Drug Court Program. His responsibilities included planning, organizing and developing the program and being actively involved in the decision-making process on drug court participants’ action plans, sanctions and rewards.
Biggers received his undergraduate degree from Rhodes College in Memphis and his law degree from the University of Alabama School of Law in Tuscaloosa, Alabama.
“David Biggers is a dedicated public servant who is uniquely qualified to serve as this district’s first Prevention and Reentry Coordinator,” said U.S. Attorney Stanton. “He has the sound judgment and experience needed to assist in implementing this critically important tenet of U.S. Attorney General Eric Holder’s ‘Smart on Crime’ initiative in West Tennessee.”# # # #
Anchorage Woman sentenced to 21 months in prison for role in Investment Fraud SchemeRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman has been sentenced in federal court in Anchorage for her role in an investment fraud scheme which targeted small investors in Anchorage in 2011 and 2012.
Mary Elizabeth Transki, 26, from Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 21 months in prison following her conviction for one count of securities fraud.
According to Assistant U.S. Attorney Joseph Bottini, who prosecuted the case, Transki’s co-defendant in the case, Floyd Leroy Lee, Jr., set up an investment company – Platinum Investments, Inc. – in Anchorage in October of 2010. Lee, assisted by Transki, subsequently solicited investors with the promise of high-yield returns in a brief amount of time. Between September 2011 and March 2012, Lee and Transki took in approximately $62,000 in investment funds. After receiving the money, Lee and Transki did not invest it as promised and instead used the funds for their own personal use and benefit.
Lee and Transki were indicted by a federal grand jury in April 2013 for one count each of securities fraud related to the investment fraud scheme. Lee was also indicted for one count of mail fraud. Transki and Lee each pled guilty in June 2013 to the securities fraud charge, and Lee additionally pled guilty to the mail fraud count. Floyd Leroy Lee, Jr. is scheduled for sentencing on August 30, 2013 in Anchorage, Alaska.
In sentencing Transki to 21 months in prison, Judge Gleason noted that Transki’s role in the fraud scheme had been greater than simply a ministerial role as Transki had maintained. Judge Gleason also noted that Lee and Transki had preyed on small investors who are the type of individuals least able to absorb the loss of investment funds.
Ms. Loeffler commends the Federal Bureau of Investigation for their investigation of this caseAlabama Tax Return Preparers and 19 Foreign Nationals Charged with Conspiring to Defraud the United States, Identity Theft and Money LaunderingRead the Press Release
Justice Department announced that a 14-count superseding indictment was unsealed today, charging JB Tax Professional Services Inc., Jacqueline J. Arias and Jose Bayron Estrada, of Spruce Pine, Ala., along with 19 foreign nationals, many of whom resided in the New Orleans area, with conspiracy to defraud the United States and conspiracy to commit mail and wire fraud by filing fraudulent income tax returns. The indictment also charges certain defendants with aggravated identity theft and conspiracy to commit money laundering. Most of the defendants were previously indicted in May 2013 and arrested in June 2013.
According to the indictment, members of the conspiracy obtained Forms W-2, often by purchasing them for cash, for the purposes of filing fraudulent income tax returns. Conspirators further obtained individual taxpayer identification numbers (ITINs) for use in filing fraudulent tax returns, in some cases using false applications filed with the assistance of Arias and JB Tax Professional Services. An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a social security number. Both Arias and the business were designated by the IRS as certified acceptance agents, which are entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting their application to the IRS.
The charging documents allege that the defendants used the social security numbers of real persons to conduct mail and wire fraud. The defendants also allegedly disguised and concealed the proceeds of their fraud by agreeing to conduct certain types of financial transactions.
An indictment merely alleges that crimes have been committed, and each defendant is presumed innocent until proven guilty. Each defendant faces a maximum potential sentence of five years in prison for the conspiracy charge. Each aggravated identity theft charge carries a mandatory two-year prison sentence, and the defendants charged in the money laundering conspiracy count face a possible maximum sentence of twenty years in prison. The defendants will also be subject to fines, mandatory restitution and forfeiture if convicted.
The case is being investigated by U.S. Immigration and Customs Enforcement, which oversees Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish, La. and Jefferson Parish, La. Sheriffs’ Departments. The case is being prosecuted by Tax Division Trial Attorneys Hayden Brockett and Kevin Lombardi.
49 Members and Associates of an International Ethnic-Albanian Organized Crime Syndicate Convicted of Drug Trafficking CrimesRead the Press Release
Earlier today, Nicholas Masi, the final defendant in this case charging 49 members and associates of an international drug trafficking syndicate led by ethnic Albanians located in the United States, Canada, and Europe (the “syndicate”), pled guilty before U.S. District Judge Dora L. Irizarry at the federal courthouse in Brooklyn to drug trafficking charges contained in a superseding indictment returned on July 11, 2011.
The guilty pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Brian R. Crowell, Special Agent-in-Charge of the Drug Enforcement Administration, New York (DEA); James T. Hayes, Jr., Special Agent-in-Charge, Homeland Security Investigations (HSI), New York, and Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York.
“This family led business was no ‘Mom and Pop’ organization, but a sophisticated ring of international drug dealers and money launderers. They dealt in narcotics by the thousands of pounds and drug proceeds in the multi-millions, and had no qualms about using violence to protect their ill-gotten gains. For more than a decade their web of narcotics trafficking and violence literally spanned the globe. With the assistance of our law enforcement partners across the country, the United States Attorney’s Office for the Eastern District of New York was able to bring this prolific criminal syndicate to justice,” stated United States Attorney Lynch. “We and our partners in law enforcement are committed to investigating and prosecuting international drug traffickers and seizing the proceeds of their crimes. We remain relentless in this pursuit.” Ms. Lynch expressed her grateful appreciation to the DEA Special Operations Division, DEA Newark Division, DEA Denver Division, DEA Miami Division, DEA Albany District Office, DEA Rome Country Office, the HSI attache in Vienna, HSI attache in Toronto, HSI Albany Office, HSI Denver Office, HSI Newark Office, HSI Miami Office, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the Monmouth County (New Jersey) Prosecutor’s Office, the Westchester District Attorney’s Office and the New York Attorney General’s Office for their assistance.
DEA Special Agent-in-Charge Crowell stated, “This global organization operated from our street corners to the tops of the supply chain in Canada, Mexico, South America, and Netherlands. We estimate the organization was earning at least $15 million per year trafficking cocaine, marijuana, MDMA, and oxycodone. Our investigative partners at the international, state, local, and federal levels are commended for working tirelessly to shut down this violent syndicate.”
“Today, a violent and ruthless criminal organization that operated an extensive drug supply route in multiple countries has been dismantled,” HSI Special Agent-in-Charge Hayes. “The public expects law enforcement to work together in order to keep our communities free from drugs and the violence that comes with it. These convictions help do just that.”
IRS Special Agent-in-Charge Weirauch stated, “These convictions represent an extraordinary accomplishment in the fight against global drug trafficking. International money laundering remains a high priority for IRS-Criminal Investigation and we are proud to stand with our law enforcement partners as we acknowledge this achievement and look ahead to dismantling other international syndicates.”
The syndicate comprised several inter-related ethnic Albanian family clans (also known as “fis”) with hundreds of associated members, workers, and customers spanning three continents. In operation for more than a decade, the syndicate was responsible for organizing the importation and distribution of tens of thousands of kilograms of hydroponic marijuana from Canada and Mexico, substantial quantities of MDMA from the Netherlands and Canada, hundreds of kilograms of cocaine from Mexico, Colombia, Venezuela, and Peru, and large quantities of diverted prescription pills, such as oxycodone. The drugs were distributed in various locations in the United States, including New York, California, Georgia, Colorado, and Florida, as well as in Canada and Europe.
The four-year investigation revealed that most of the marijuana smuggled from Canada and Mexico was concealed in tractor trailers, typically in hundred pound quantities, with some shipments weighing as much as 1,200 pounds. The marijuana shipments were stored in warehouses and stash locations throughout Brooklyn, Queens, and the Bronx, before distribution. Kilogram quantities of cocaine were obtained from sources in the United States and exported to Albania and other locations in Europe concealed in hidden compartments inside luxury automobiles – ostensibly under the auspices of legitimate car dealerships which were actually controlled by syndicate members. Until the arrests of its members in July 2011, the syndicate was involved in negotiations to obtain hundreds of kilograms of cocaine from sources in South America for transport through the United States to Canada and Europe. The syndicate was also involved in obtaining large shipments of oxycodone, a highly addictive prescription medicine used to treat severe pain, and during the past year distributed thousands of oxycodone pills in New York which had been diverted from pain clinics in Florida.
The government’s investigation further revealed that the syndicate employed the services of a Canadian-based money laundering organization, which was allegedly responsible for laundering more than $15 million of the syndicate’s narcotics proceeds in a single year. Typically, the launderers picked up drug money in New York and transported it to Canadian and Mexican drug suppliers. The syndicate also sent millions of dollars in marijuana sale proceeds to co-conspirators on the West Coast of the United States to purchase cocaine from Mexican drug cartels. The cocaine was then allegedly transported across the border into Canada for distribution, with the proceeds to be used to fund subsequent marijuana purchases.
Several defendants are believed to have committed drug and organized-crime-related violence, including kidnaping and attempted murder. For example, on June 4, 2011, an escalating dispute between syndicate members over the payment of a drug debt led to a shooting outside a Bronx restaurant-bar, and a potential drug-related shooting was narrowly averted in October 2010, when law enforcement agents intercepted a syndicate member with a loaded firearm en route to rob a drug customer who owed him money from a prior drug deal.
During the course of the investigation, federal agents seized more than 1,200 pounds of marijuana, approximately $2 million in suspected drug proceeds, 22 handguns, a military/police-issue assault rifle, and hundreds of rounds of ammunition.
The government’s case is being prosecuted by Assistant United States Attorneys Steven Tiscione, Gina Parlovecchio, Una Dean, and Claire Kedeshian.
The investigation was led by the DEA’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the U. S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, and the U.S. Marshal Service.
The Defendants
GJAVIT THAQI
Age: 42ARIF KURTI
Age: 43GJEVALIN BERISHA
Age: 33GJEVALIN BERISHA
Age: 33KUSHTRIM ABAZAGA
Age: 32CARLOS ALVAREZ
Age: 30KUSHTRIM BLAKU
Age: 33ROBERT BONURA
Age: 34JOSEPH BUX
Age: 36ALEJANDRO CALDERIN
Age: 43JOHN CEKAJ
Age: 43MARTINO CEKAJ
Age: 35GIOVANNI DIFUCCIA
Age: 40ADRIAN DUBIEL
Age: 29BRIAN DUBLYNN
Age: 36ARVY EBRAHIME
Age: 31HECTOR FLORES
Age: 41ANTHONY GATT
Age: 31ANGELO GERMANO
Age: 39JETON GJIDIJA
Age: 35HAMZA HAMIDEH
Age:PERRY IEROPOLLI
Age: 31AL KARAQI
Age: 39LEE KARAQI
Age: 38ROBERT KARAQI
Age: 41HASAN KURTI
Age: 42IBRAHIM KURTI
Age: 40BAJRAM LAJQI
Age: 38SELMAN LAJQI
Age: 41ALESSANDRO LATINO
Age: 37LAURETTA LOKAJ
Age: 42NIKOLA LUKAJ
Age: 41FRANK MAHONEY
Age: 42NICHOLAS MASI
Age: 51DAVID MCLEAN
Age: 47FATMIR MEHMETI
Age: 35FAIK MEHMETI
Age: 38NEFAIL MEHOVIC
Age: 29VALTER MEMIA
Age: 30ALBERTO MERCADO
Age: 43FABIAN MIHAJ
Age: 33MAGDALENA NIKOLLAJ
Age: 40MAL REXHA
Age: 51DARIUS RIVERA
Age: 38ROBERT RUDAJ
Age: 39FADIL SALAJ
Age: 53BRENT SAPERGIA
Age: 50LANCE SCHONER
Age: 29LESTER ZABORSKI
Age: 40AGRON ZENELAJ
Age: 34