Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
10 October 2013
Sentences for October 02 – 10, 2013Read the Press Release
Saul Hermosillo-Reyes, 25, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 10, 2013, for illegal re-entry of a previously deported alien into the United States. Hermosillo-Reyes was arrested in Casper, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Hector Lepe-Lepe, 25, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 10, 2013, for illegal re-entry of a previously deported alien into the United States. Lepe-Lepe was arrested in Gillette, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
George Ray Beebe, 63, of Aurora, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 8, 2013, for theft of mail. He received three years of supervised release with special conditions and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Postal Inspection Service.
Rene Martinez-Mejia, 39, of Guatemala, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 8, 2013, for illegal re-entry of a previously deported alien into the United States. Martinez-Mejia was arrested in Casper, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Michael W. Lubenow, 53, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 7, 2013, for production of child pornography. Lubenow was arrested in Casper, Wyoming. He received 264 months imprisonment, to be followed by a life time of supervised release, and was ordered to pay a $100.00 special assessment, a $1,000.00 fine and restitution in the amount of $895.79. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Melinda Kathleen Jervah, 52, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 7, 2013, for production of child pornography. Jervah was arrested in Casper, Wyoming. She received 180 months imprisonment, to be followed by a life time of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $895.79. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Timothy M. Palmer, 41, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 7, 2013, for conspiracy to possess with intent to distribute, and to distributing 200-350 grams of methamphetamine. Palmer was arrested in Cheyenne, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Jeffery Allen Johnson, 30, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 2, 2013, for possession with intent to distribute methamphetamine and aiding and abetting. Johnson was arrested in Natrona County, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Highway Patrol and the Wyoming Division of Criminal Investigation.
Jackson SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that LINDA M. JACKSON, age 51, of Plaquemine, Louisiana, was sentenced today by Chief U.S. District Judge Brian A. Jackson to serve sixty (60) months in federal prison for her role in a two-year health care fraud scheme that she perpetrated in the Baton Rouge area.
JACKSON previously pled guilty, on February 28, 2012, to a conspiracy to commit health care fraud. In her plea agreement, the defendant had admitted that she worked with others to defraud the Medicare program over a two-year period of time, from April 2007 through April 2009. During her scheme, JACKSON operated a company in Plaquemine, Louisiana called A&A Durable Medical Supply (“A&A”), and used the company to submit numerous false reimbursement claims to Medicare for items that JACKSON had never provided. JACKSON also admitted that she furthered the scheme by preparing and completing false documents, such as delivery tickets and physician order forms, and by directing other A&A employees to prepare similar false documents. Through her false claims, JACKSON attempted to obtain more than $2.2 million from Medicare.
At this morning’s sentencing, in addition to being sentenced to serve 60 months in prison, LINDA JACKSON was ordered to pay restitution in the amount of approximately $297,523. She was ordered to serve a two-year term of supervised release following her release from imprisonment. She will also be ordered to forfeit an additional $297,523 in proceeds from her health care fraud scheme. At the conclusion of the sentencing, the Court ordered JACKSON to begin serving her sentence immediately and remanded JACKSON to the custody of the United States Marshal.
Other defendants convicted and sentenced as a result of the investigation into A&A Durable Medical Supply include UNIECESCO SMITH and EUNICE SPARROW, both of Plaquemine, Louisiana, who were sentenced in June 2012 to serve federal prison terms of 14 months and 12 months and 1 day, respectively, for their roles in this health care fraud scheme.
Acting United States Attorney Walt Green stated, “This is another in a long line of successful prosecutions – and lengthy prison sentences – for health care fraud in our district. This office remains committed to protecting the integrity of our health care system, and we will continue to work with our federal and state law enforcement partners to enforce the federal health care laws. This sentence should serve as a deterrent for others who would attempt to defraud Medicare for their own personal greed.”
“Today’s 60-month sentence places greedy Medicare providers on notice,” said Special Agent–in-Charge Mike Fields, United States Department of Health and Human Services, Office of Inspector General, Office of Investigations, Dallas Regional Office. “Our special agents and their law enforcement partners will vigorously investigate health care providers who cheat and loot the Medicare Trust Fund.”
The investigation of this matter was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, and the Louisiana Attorney General’s Office, with valuable assistance from the Social Security Administration’s Office of Inspector General. The case was prosecuted by Assistant United States Attorneys Alan Stevens and Chris Dippel. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Middle District of Louisiana and the Criminal Division’s Fraud Section.
Georgia Woman Pleads Guilty to Conspiracy to Commit Wire Fraud Related to Transportation Scheme at Local Military BaseRead the Press Release
WASHINGTON – A former employee of an Albany, Georgia transportation company has pleaded guilty to conspiracy to commit wire fraud related to a scheme to overcharge the Department of Defense (DOD) for transportation services rendered through the Defense Logistics Agency (DLA), resulting in the loss of millions of dollars to the United States government, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Kelli Durham, 33, of Leesburg, GA, pleaded guilty today before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of conspiracy to commit wire fraud.
During her guilty plea, Durham, a former employee of Company A, an Albany-based trucking company and freight transportation broker owned by Person A, admitted to participating in a scheme led by Person A to defraud the government by overbilling it for freight transportation services Company A falsely claimed to have provided to DLA at the Marine Corps Logistics Base (MCLB) in Albany, Georgia. Durham admitted that, at Person A’s direction, she took several steps intended to defraud the government and other trucking companies with which she brokered government freight, including altering shipping and equipment specifications stated on government bills of lading (GBL). DURHAM then used these falsified bills of lading to broker loads using shipping and equipment specifications inferior to those contracted for by DLA, while still billing DLA for the more expensive specifications it had requested. This led to massive over-billing of the government and losses in excess of $7 million.
According to court documents, Company A handled thousands of freight shipments for DLA from July 2008 to December 2012. Most of these shipments were designated as “exclusive-use,” a premium service requiring that the shipment be transported on a single truck, even if that prevented the truck from being filled to capacity. Each of these exclusive-use shipments was listed on a single GBL. Court documents also reflect that many of these shipments also required that a removable gooseneck (RGN) trailer be used to transport the freight. RGN trailers are not widely available and therefore are more expensive than other trailer types, such as a flatbed.
Durham admitted that Person A instructed her to use Photoshop to alter GBLs so that they listed freight from multiple shipments, rather than the single shipment as requisitioned by DLA. Person A also instructed Durham to use Photoshop to alter the equipment codes on the GBLs so that rather than require a RGN trailer, for instance, it appeared that DLA had requested a flatbed trailer. Durham admitted that she then brokered the shipments as reflected on the fraudulent GBLs to other trucking companies. At Person A’s direction, Durham then certified that the shipments were serviced as specified by DLA and billed the government according to the more expensive specifications on the authentic GBLs. In effect, Company A repeatedly billed the government for multiple expensive trucks, when in fact those multiple shipments were transported on only one less-expensive truck.
According to court documents, Company A was paid $37,944,823.88 for transportation services during the course of the scheme, of which between $7 million and $20 million represents a loss to the government in the form of services it paid for but did not receive. Durham admitted that she received approximately $905,685 as a result of the fraud scheme.
At sentencing, Durham faces a maximum penalty of 5 years in prison and a fine of not more than twice the pecuniary loss to the government. As part of her plea agreement with the United States, Durham has agreed to forfeit the $905,685 that she received as a result of the scheme, as well as to pay full restitution to the Department of Defense. She is also cooperating with the government’s investigation. Sentencing normally takes place in approximately sixty days following a plea of guilty.
This is the seventh guilty plea arising from a corruption probe centered at the MCLB in Albany. On May 8, 2013, Mitchell Potts, the former Traffic Office Supervisor for DLA, and Jeffrey Philpot, Potts’s former Lead Transportation Assistant, pleaded guilty to collectively accepting more than $700,000 in bribes from Person A in exchange for taking a variety of steps intended to direct DLA shipments to Company A. Among other things, Potts and Philpot admitted to “short loading” DLA shipments so that it would it appear that more trucks were necessary to service the shipments. They also admitted to requiring that the shipments be transported using RGN trailers regardless of whether that was actually necessary. As part of their plea agreements, Potts and Philpot are cooperating with the government’s investigation.
In June 2013, former base employee Michelle Rodriguez and local businessmen Thomas Cole and Fred Simon were sentenced to periods of imprisonment for their roles in a bribery scheme resulting in nearly $1 million in fraudulent overcharges to the government for military machine product orders. In February 2013, former base employee Shelby Janes pleaded guilty to accepting bribes from Person A in exchange for aiding him in the theft of more than $1 million worth of heavy equipment from the base.
The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General, and the Department of Labor Office of the Inspector General. The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office, at (478) 621-2603.
Gang Indictment Unsealed Charging Seven Defendants from the East Hollygrove Neighborhood with Federal Murder, Drug, and Firearms ViolationsRead the Press Release
Yesterday, the United States Attorney’s Office unsealed another gang indictment which was returned by the Federal Grand Jury on Friday October 4, 2013 and placed under seal. This Second Superseding Indictment charges seven members of the East Hollygrove neighborhood with 25 counts of violations of the Federal Controlled Substances Act, the Federal Gun Control Act, and murder, announced U. S. Attorney Kenneth Allen Polite, Jr.
CHARLES JOHNSON, aka “Chuck”, 25; ROBERT JOHNSON, aka “Skinny”, 24; THOMAS HENDERSON, aka “T”, 24; LAVELL STOVAL, aka “Vell”, 21; WILLIAM HENDERSON, aka “Will”, 20; ERSKINE WATERS, 22; and AVIAN BRULE, aka “Ave”, 20; all from New Orleans, were charged in this case. All of the defendants are charged with conspiracy to distribute one kilogram or more of heroin and a quantity of cocaine base. Each defendant faces a minimum sentence of 10 years to life in prison, a fine of not more than $10,000,000, and a minimum of five years of supervised release.
All of the defendants are also charged with using firearms in furtherance of drug trafficking crimes. Each faces up to 20 years in prison, a fine of $250,000, and three years of supervised release.
In addition to the first two charges, the following defendants face additional charges outlined below:
CHARLES JOHNSON is charged in Count 3 with participating in the murder of Ms. Eula Mae Ivey on June 14, 2010 as a result of a drive by shooting. Three other gang members have already pled guilty to participating in this murder in federal court. If convicted of this count, CHARLES JOHNSON faces a sentence of up to life in prison or the death penalty. CHARLES JOHNSON is also charged in Counts 6, 10, and 11 with distribution of heroin. He faces a sentence of not more than 20 years in prison, $1,000,000 fine and at least 3 years of supervised release, for each of these counts. Additionally, CHARLES JOHNSON is charged in Count 7 with possession of a firearm in furtherance of a drug trafficking crime for which he faces a minimum sentence of 5 years to a maximum of life imprisonment, $250,000, and 5 years of supervised release. Finally, he is charged in Count 8 with being a felon in possession of a firearm for which he faces not more than 10 years in prison, a fine of $250,000, and three years of supervised release.
THOMAS HENDERSON is charged in Count 4 with possession with the intent to distribute 28 grams or more of cocaine base. If convicted he faces a minimum of 5 years to a maximum of 40 years in prison, $5,000,000 and at least 4 years of supervised release. HENDERSON is also charged in Counts 17, 18, 19, and 20 with distribution of heroin. For each count he faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release.
LAVELL STOVAL is charged in Count 5 with distribution of heroin for which he faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release.
WILLIAM HENDERSON is also charged in Counts 12, 13, 14, 15, 16, 21, 22, 23, and 24 with distribution and possession with the intent to distribute heroin. He faces a sentence of up to 20 years in prison, $1,000,000 fine, and at least 3 years of supervised release, as to each count. He is also charged in Count 25 with possession of a firearm in furtherance of his drug trafficking activities for which he faces a minimum sentence of 5 years to a maximum sentence of life imprisonment, $250,000 fine, and 5 years of supervised release.
ERSKIN WATERS is charged in Count 9 with possession with the intent to distribute heroin. He faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release.
AVIAN BRULE is charged in Counts 12 and 24 with distribution and possession with the intent to distribute heroin and faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release, for each count. BRULE is also charged in Count 25 with possession of a firearm in furtherance of his drug trafficking activities for which he faces a minimum sentence of 5 years and a maximum sentence of life imprisonment, $250,000, and 5 years of supervised release.
U. S. Attorney Kenneth Allen Polite, Jr. noted that this was yet another example of how the federal effort is helping to attack and address the tide of violence that is occurring in New Orleans. Special Agents from the Federal Bureau of Investigation (F.B.I.) have been working on this case for several months as part of the NOPD led Multi-Agency Gang Unit (MAG UNIT) and have been steadfast in their resolve to bring these gang members justice.
This is just the latest in a series of gang related cases that the MAG UNIT has investigated over the past year. This Unit is focused on identifying and removing violent gangs from our neighborhoods. U.S. Attorney Polite wanted to personally thank the men and women of this special unit for their hard work and success.
U. S. Attorney Polite reiterated that the second superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This investigation was led by the Federal Bureau of Investigations as part of the MAG Unit and will be prosecuted by Assistant United States Attorney Maurice E. Landrieu, Jr.
(Download Indictment )
Former State Representative, Girod Jackson, Pleads Guilty to Federal Tax ViolationsRead the Press Release
Former Louisiana State Representative GIROD JACKSON, 41, pleaded guilty today in federal court before U.S. District Judge Jane Triche Milazzo to a three count Bill of Information, which charged him with violating provisions of the United States Tax Code, announced U.S. Attorney Kenneth Allen Polite, Jr. Specifically, JACKSON admitted his guilt to one count of Making a Fraudulent Statement on a Tax Return, a felony, and two counts of Willful Failure to File Tax Returns, misdemeanors.
According to court documents, JACKSON, who represented District 87, an area that includes portions of the West Bank of Jefferson Parish, admitted that he misrepresented on his federal tax return for 2006 the total income received by his company, Diversified Ventures, LLC. In 2007 and 2008, despite having earned sufficient income from Diversified Ventures and other sources and having filed requests for extensions of time to file his tax returns, JACKSON admitted that he failed to file any returns at all. JACKSON was elected to office in 2007 and served his first full year as State Representative for District 87 in 2008.
Upon sentencing, which is set for January 9, 2014, JACKSON faces the possibility of up to three years in prison and a $100,000 fine for Count 1 and up to one year in prison and a $25,000 fine for Counts 2 and 3.
The investigation was led by the Internal Revenue Service. Assistant United States Attorney Daniel Friel is prosecuting this case.
(Download Factual Basis )
Former Government Informant Sentenced to 30 Years in Drug Trafficking ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce the conviction and sentencing of Honduran national Fausto Aguero Alvarado, 40. Aguero Alvarado was sentenced to 30 years in prison on drug trafficking conspiracy charges. Aguero Alvarado was arrested in Colombia in 2010 and was extradited to the United States in 2012. A jury convicted Aguero Alvarado following a July 2013 trial.
According to the evidence at trial, Aguero Alvarado had been a source for the Drug Enforcement Administration (DEA) from mid-2008 until early-2009. Following his deactivation as a source, Aguero Alvarado joined forces with the same individuals he had previously helped to target, and entered into a conspiracy to distribute multi-hundred kilo loads of cocaine from Colombia to Honduras. He introduced his co-conspirators to Colombian law enforcement officers who, posing as members of a foreign terrorist organization, sought to obtain weapons that they intended to use to launch attacks on the Colombian government. Aguero Alvarado helped to negotiate a deal to exchange multi-hundred kilogram loads of cocaine in exchange for rocket-propelled grenade launchers. Through Aguero Alvarado’s introductions, the Colombian law enforcement officers ultimately purchased several rocket-propelled grenade launchers, grenades, an Uzi submachine gun and ammunition.
The conviction of Aguero Alvarado is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) led by ICE-HSI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of ICE-HSI and DEA. The case was prosecuted by Assistant U.S. Attorney Adam Fels and Jerrob Duffy.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Armed Robber Targeting Taxi Cab and Food Delivery Drivers IndictedRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce that defendant Lionell Sanders (a/k/a “Pistol,” and “Briscoe”), 19, of Miami, Florida, was indicted by a federal grand jury on one count of conspiracy to commit armed robbery, in violation of Title 18, United States Code, Section 1951(a), four counts of armed robbery, in violation of Title 18, United States Code, Section 1951(a), and four counts of possessing and brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).
The defendant is the alleged leader of a group targeting taxi cab and food delivery drivers in the Allapattah and Little Haiti neighborhoods of the City of Miami. The drivers were called out to the areas during the early morning hours, and accosted by the defendant and his coconspirators. The drivers were forced out of their vehicles at gunpoint, robbed, and often pistol-whipped.
Once the defendant realized that law enforcement was on his trail, he fled the area. Due to a multi-agency effort, the defendant was apprehended on September 27, 2013. The defendant is presently detained, pending trial. If convicted, he faces up to life in prison.
Mr. Ferrer commended the investigative efforts of ATF, the U.S. Marshal’s Service, the Miami-Dade Police Department, and the City of Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Vanessa Singh Johannes.
An indictment is only an accusation, and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
9 October 2013
Yakima Man Sentenced to Twenty Years ImprisonmentRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kennith M. Henle, age 26, of Yakima, Washington, was sentenced today after having previously pleaded guilty on July 10, 2013 to Attempted Production of Child Pornography. Senior United States District Court Judge Edward F. Shea sentenced Kennith M. Henle to a twenty year term of imprisonment, to be followed by a life term of court supervision, after he is released from federal prison.
According to information disclosed during the court proceedings, in March 2012 a special agent with Homeland Security Investigations (HSI) accessed a photo hosting website and found a profile with an associated e-mail address that contained multiple photos of children of an inappropriate nature. HSI commenced investigation and obtained further information about the associated e-mail account, determining the account holder was Kennith Henle of Yakima, Washington.
On September 11, 2012, HSI Special Agents obtained a search warrant for Kennith Henle's e-mail account. The search resulted in the discovery of child pornography, which Henle had received over the internet. It also revealed child pornography produced by Henle in Moxee, Washington, of a minor left in his care. Special Agents, with the assistance of Yakima Police Department Detectives were able to interview Henle, who admitted the misconduct.
"It wasn't enough for Henle to abuse a child in his care, he shared his exploitation with predators around the world," said Brad Bench, Special Agent in Charge of HSI, Seattle Division, who oversees Eastern Washington investigations. "HSI places a high priority on combating this despicable crime, not only to identify and rescue child victims, but to stop their re-victimization by individuals who view and distribute Internet child pornography."
Michael C. Ormsby stated: "Prosecuting those who would produce and distribute pornographic images of vulnerable minors is a priority of the United States Attorney's Office for the Eastern District of Washington. This Office dedicates significant resources to the prosecution these cases and seeks appropriate punishment."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
This investigation was conducted by Homeland Security Investigations.
CR-13-2046-EFS
Pittsburgh Man Conspired with Georgia Residents in Fraud SchemeRead the Press Release
PITTSBURGH – A Pittsburgh man has pleaded guilty in federal court to a charge of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Frank Smith, 69, pleaded guilty to count one before Nora Barry Fischer.
According to information presented to the Court at the guilty plea, Smith conspired with persons from Georgia to open bank accounts in Pittsburgh into which he deposited federal tax refunds obtained from false tax returns containing stolen identities.
Judge Fischer scheduled sentencing for March 5, 2014, at 9 a.m. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation in this case. Frank Smith remains in custody of the USMS pending sentencing.
Lincoln Man Charged with Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on October 9, 2013, an indictment was unsealed charging Jamie Eugene Tuggle, age 38 of Lincoln, with possession with the intent to distribute 5 grams or more of methamphetamine on June 30, 2013. The charge resulted from the execution of a search warrant at Tuggle’s Lincoln residence.
The possible penalty is not less than five years nor more than 40 years in prison and a fine of up to $5,000,000. Following any prison term, there would be a term of supervised release of not less than four years. The indictment also seeks forfeiture of $301 in cash to the United States. Tuggle is scheduled to make his first appearance in federal court on Tuesday, October 15, 2013.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff=s Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department, and by the Nebraska State Patrol.
Cambria County Woman Admits Role in Large-scale Marijuana Distribution OrganizationRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute marijuana, United States Attorney David J. Hickton announced today.
Marguerite G. Lowmaster, 66, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from March 2009 to May 9, 2011, Marguerite G. Lowmaster conspired to distribute and possess with intent to distribute at least 10 kilograms, but less than 20 kilograms, of marijuana. In addition, evidence presented to the Court at the time of Marguerite G. Lowmaster's guilty plea reflected that she conspired with George M. Lowmaster and others with the intent to facilitate and promote George M. Lowmaster's drug distribution organization.
Judge Gibson scheduled sentencing for Feb. 25, 2014, at 11 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.Pending sentencing, the court continued Marguerite G. Lowmaster on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Marguerite G. Lowmaster. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation; Pennsylvania State Police; the Pennsylvania Attorney General's Office; the Cambria County District Attorney's Office; the Carrolltown Police Department; the Patton Police Department; the Ebensburg Police Department; the Portage Police Department and the Paint Township Police Department.
Belleville ‘Sovereign Citizen’ Convicted of Making False Claims for Tax RefundsRead the Press Release
Destry Marcotte, 47, of Belleville, Illinois, was convicted of four counts of filing false claims for federal tax refunds following a two-day jury trial held in federal district court, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Following the jury’s verdict, Marcotte was taken into custody, to be held without bond, until his sentencing. Marcotte faces up to a total of twenty years in prison. Sentencing is scheduled for January 17, 2014. He has been detained awaiting sentencing.
Evidence at trial revealed that Marcotte had submitted to the IRS false claims for refunds of federal taxes over a period of years. These false refunds claimed a total amount that exceeded $600,000. Evidence showed that Marcotte claimed to be a sovereign citizen, thus he claimed to be not subject to the tax laws of the United States. In addition to filing false claims for federal income tax refunds, Marcotte did not pay federal income taxes due. At trial, proof showed that Marcotte was advised, prior to committing the charged conduct, that his claims and arguments were frivolous and could subject him to criminal prosecution.
The successful prosecution is the result of an investigation conducted by the Criminal Investigations Division of the Internal Revenue Service. The prosecution is being handled by Assistant United States Attorney Norman Smith.
8 October 2013
Walker Bill of InformationRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today the filing of a Bill of Information charging GREGORY MARTIN WALKER, 46, formerly of Baton Rouge, Louisiana with one count of wire fraud in violation of Title 18, United States Code, Section 1343.
According to the Bill of Information, WALKER was engaged in the business of buying and selling of Louisiana motion picture investor tax credits. WALKER owned and operated The Bishop, LLC, an entity which purported to own film tax credits for resale to others. WALKER represented to purchasers that he owned tax credits for various film productions, including Universal Soldier IV, El Gringo, Mama I Want to Sing, and Transit.
The State of Louisiana, Department of Economic Development, Office of Entertainment Industry Development (“LDED”) administered the Louisiana Motion Picture Incentive Act. In order to develop and promote film productions, the State of Louisiana offered tax credits for the production of movies within the State. Such tax credits can be used to pay the Louisiana income taxes of the film production companies, redeemed by the film production companies for a discounted price at the Louisiana Department of Revenue (“LDR”), or even sold to others who could use the tax credits to pay their Louisiana income tax liabilities. LDR was vested with the authority to disallow tax credits if the transferor of tax credits did not have rights to claim or use the tax credits at the time of their purported transfer.
Strategies for Investment, LLC (“SFI”) was a Baton Rouge business owned and operated by a local Certified Public Accountant (“CPA”). WALKER and The Bishop sold tax credits to SFI, which re-sold said credits to tax clients of the CPA. WALKER and The Bishop represented that they owned and controlled the tax credits which they sold to SFI.
From November 2011 through July 2012, WALKER marketed tax credits to the CPA who owned and operated SFI. From August 2011 through January 2013, WALKER also sold tax credits to other Louisiana taxpayers who sought tax credits to pay their Louisiana income tax liabilities.
Beginning in August, 2011, and continuing through in or about January, 2013, WALKER devised and executed a scheme to defraud purchasers of Louisiana film tax credits. WALKER falsely represented to purchasers that he owned certain tax credits, when in fact, he neither owned nor controlled such film tax credits. In order to carry out his scheme to defraud, WALKER forged the signatures of various individuals on tax credit purchase agreements and used interstate wires to complete his scheme.
WALKER sold purported tax credits to SFI on approximately 11 occasions between January 3, 2012 and June 20, 2012. SFI paid WALKER and The Bishop approximately $971,418 for the purchase of tax credits purporting to have a face value of $1,456,926. WALKER used the funds obtained through his scheme for his personal enrichment.
As a result of his scheme to defraud, WALKER stands charged with one count of wire fraud. If convicted of a violation of Title 18, United States Code, Section 1343 carries a maximum term of 20 years imprisonment, a fine of up to $250,000, and a term of 3 years supervised release. The Bill of Information also notifies WALKER that he is subject to the forfeiture of all property, real or personal, which constitutes, or is derived from proceeds traceable to his wire fraud including, but not limited to at least $971,418, said amount being the proceeds obtained through the violation of Title 18, United States Code, Section 1343.
This matter was jointly investigated by the Federal Bureau of Investigation, the Louisiana Inspector General’s Office, and the United States Grand Jury for the Middle District of Louisiana. The case is being prosecuted by Assistant United States Attorney Rene I. Salomon. Additional assistance was provided by the Louisiana Department of Economic Development.
Acting United States Attorney Green stated, “We will continue to safeguard all types economic programs that fall prey to fraudsters and ensure they are held accountable for their actions.”
FBI Special Agent-in-Charge Michael Anderson stated, “This conviction should convey a clear message to the public that schemes to defraud that interfere with legitimate government incentives to stimulate economic growth in Louisiana will not be tolerated.”
Louisiana Inspector General Stephen Street commented, “This sort of blatant fraud undermines the entire tax credit program and cannot be tolerated. We will continue working with the FBI and United States Attorney to make sure that those who engage in this sort of corruption face criminal consequences.”
NOTE: A Bill of Information is a determination that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Utilities Workers Union Officials Charges with Conspiracy, EmbezzlementRead the Press Release
PITTSBURGH – Two union officials have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and union embezzlement, United States Attorney David J. Hickton announced today.
The three-count indictment named John Vetterly, Jr., 52, of Pittsburgh, Pa., and John Baranski, 53, of Boardman, Ohio, as defendants.
According to the indictment, Vetterly, a President of the Utilities Workers Union of America AFL-CIO Local 475 (Local 475), and Baranski, a Secretary-Treasurer of Local 475, conspired to embezzle and embezzled approximately $30,852.30 from the union by writing and cashing unauthorized union checks during the period from February 2006 to December 2008.
The law provides for a maximum total sentence of 15 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor-Management Standards 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.
US Marshal Assaulted by Philadelphia Man During ArrestRead the Press Release
ERIE, Pa. - A former resident of Philadelphia, Pennsylvania, pleaded guilty in federal court to a charge of assaulting a federal officer, United States Attorney David J. Hickton announced today.
Ryan Bell, 26, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that on January 15, 2013, Bell assaulted a Special Deputy United States Marshal, a member of the U.S. Marshal’s Western Pennsylvania Task force, who was engaged in official duties as the task force was executing an arrest warrant against Bell.
Judge Cohill scheduled sentencing for January 21, 2014 at 11:00 a.m. The law provides for a total sentence of twenty years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Bell on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Marshal’s Service conducted the investigation that led to the prosecution of Bell.
Tampa Bail Bondsman Sentenced to More Than 8 Years in Prison for Tax Fraud and Identity Theft SchemeRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Freddie Wilson to 8 years and 6 months in federal prison for theft of government funds, aggravated identity theft, money laundering, and obstruction of justice. The court also ordered Wilson to forfeit a 2011 Chevrolet Camaro and approximately $8,700, which are traceable to proceeds of the offenses, and entered a money judgment against him in the amount of $39,197.72.
Wilson was found guilty by a jury on July 11, 2013.
According to court documents, Wilson was a licensed bail bondsman who ran Against All Odds Bail Bonds, Inc. in Tampa. In June 2012, Wilson opened an account in the name of Against All Odds, at a local bank, under the guise that he was a check casher. Within a three month period, he deposited over $318,000 in U.S. Treasury income tax refund checks that were issued as a result of fraudulently filed federal income tax returns. Wilson used the identities of deceased, elderly, and disabled victims to deposit the checks. Wilson spent all of the money on personal expenses, including the purchase of the 2011 Camaro, mortgage payments, expensive restaurants, hotels, and large dollar transactions at a casino.
In January 2013, a federal search warrant was executed at Against All Odds Bail Bonds, and agents seized the Camaro and approximately $8,600 that remained in a bank account from the fraudulent tax refunds. Wilson subsequently obstructed the criminal investigation by taking records that were seized during the search warrant and failing to return them to the government.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Postal Employee Charged with Stealing from Greeting CardsRead the Press Release
PITTSBURGH - A Shaler Township woman has been indicted by a federal grand jury on charges of theft of mail by postal employee, United States Attorney David J. Hickton announced today.
The two-count indictment named Tse Guin Vogtsberger, 55, as sole defendant.
According to the indictment, Vogtsberger, being an employee of the United States Postal Service, did steal, abstract and remove from a greeting card on two separate occasions an article or thing contained therein, that is cash and/or two gift cards.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States 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.
Man on Pretrial Release for Drug Offense Charged with Selling Drug ParaphernaliaRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of criminal contempt and selling and offering for sale drug paraphernalia, United States Attorney David J. Hickton announced today.
The four-count indictment named Mayank Mishra, 32, as the sole defendant.
According to the indictment, in and around September of 2013, Mishra violated the order setting forth the conditions of release that was issued by the Honorable Maureen Kelly, United States Magistrate Judge. This order was issued on Feb. 26, 2013, in relation to Mishra's previous charge at Criminal No. 12-135M. The conditions of release that Mishra violated related to the prohibition against violating any federal or state law; the indictment alleges that while on pretrial release, Mishra sold and offered for sale drug paraphernalia. The indictment also charges that from in and around December of 2011, to in and around March of 2012, and from in and around February of 2013, to in and around September 2013, Mishra sold drug paraphernalia, including various substances used to dilute heroin and glassine bags used in the sale of heroin.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Dept., Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation conducted the investigation leading to the superseding indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Enters Guilty Plea in Large Obion County Marijuana Grow OperationRead the Press Release
Memphis, TN – Ignacio Lazcano-Acosta, 52, pleaded guilty yesterday to one count of manufacturing and attempting to manufacture marijuana in violation of 21 U.S.C. § 846, announced United States Attorney Edward L. Stanton III.
According to information presented in court, on October 11, 2011 in Obion County, Tennessee, officers with the Obion County Sheriff’s Department discovered a large outdoor marijuana grow containing several acres of marijuana plants that had the appearance of being grown, harvested, and processed for distribution. DEA agents were able to identify Ignacio Lazcano-Acosta as one of the persons involved with the marijuana grow operation. Mr. Lazcano-Acosta changed his plea in a court hearing before Judge J. Daniel Breen yesterday, October 7, 2013.
The potential penalty for this charge is no more than 20 years in federal prison. Lazcano-Acosta is scheduled to be sentenced by Judge Breen in Jackson on January 10, 2014 at 10:00 a.m. There is no parole in the federal prison system.
This crime was investigated by the 27th Judicial District Drug Task Force, the Drug Enforcement
Administration, the Tennessee Bureau of Investigation, the Tennessee Highway Patrol, the
Union City Police Department and the Obion County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Victor L. Ivy on behalf of the government.Judge Sentences Inmate with Cell Phone to 2 More Months in PrisonRead the Press Release
ERIE, Pa – An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania has been sentenced in federal court to 2 months in jail on his conviction of possession of contraband in prison, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Martin Killings, 33. The sentence was imposed to run consecutively to the sentence Killings is currently serving.
According to information presented to the court, on or about December 6 2012, Killings was in possession of contraband, namely a cell phone.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Killings.
Inmate Charged with Escape from McKean Federal PrisonRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of escape after conviction, United States Attorney David J. Hickton announced today.
The one-count indictment named Locksley Brian Millwood, 36, as the sole defendant.
According to the indictment presented to the court, on or about August 21, 2013, Millwood escaped from the McKean Federal Prison Camp.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution and the Pennsylvania State Police 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.
Illegal Alien Charged with Immigration Law ViolationRead the Press Release
ERIE, Pa. - A former resident of Guanajuato, Mexico has been indicted by a federal grand jury in Erie on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Eduardo Hurtado-Valdez, 26, as the sole defendant. According to the indictment presented to the court, on or about September 24, 2013,
Hurtado-Valdez was found to be unlawfully present within the United States. Hurtado-Valdez had been previously ordered deported and removed from the United States on July 9, 2008 and was removed from the United States on November 24, 2011. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Bureau of Customs and Border Protection 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.
Former Erie Man Gets 10-Year Prison Sentence for Illegally Possessing A SilencerRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 120 months in jail on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on James Lamont Johnson, 47.
According to information established at trial, on August 15, 2012, in Vernon Township, Crawford County, Pennsylvania, Johnson unlawfully possessed a firearm silencer for a .25 caliber handgun. Johnson ordered the silencer from another individual, and ordered eleven additional firearm silencers that he wanted to be produced immediately. The evidence established that Johnson needed the .25 caliber silencer by the upcoming weekend because he needed to "take care of somebody" in Erie. After Johnson obtained the firearm silencer and entered his red 2009 Lexus sedan, he was apprehended by police officers. During the execution of a search warrant on Johnson's Lexus vehicle, the silencer was found hidden in an empty space behind the dashboard air vents. The vehicle had been altered to allow Johnson ready access to the hidden compartment in order to try to hide the silencer after he entered the vehicle. Johnson's possession of the firearm silencer was unlawful because it had not been registered to him in the National Firearms Registration and Transfer Record as required under federal law.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Vernon Township Police Department, the Meadville City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Johnson.
Federal Inmate Indicted on Contraband ChargeRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of possession of contraband in prison, United States Attorney David J. Hickton announced today.
The one-count indictment named Pedro Kline, 25, as the sole defendant.
According to the indictment presented to the court, from on or about May 11, 2013 to on or about May 13, 2013, Kline was in possession of contraband, namely, marijuana.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution 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.
Federal Inmate Charged with Possessing Drugs in PrisonRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of possession of contraband in prison, United States Attorney David J. Hickton announced today.
The two-count indictment named Jarrid Brewer, 24, as the sole defendant.
According to the indictment presented to the court, in and around April 2013, to in and around May 2013, Brewer was in possession of contraband, namely, marijuana and oxycodone hydrochloride.
The law provides for a maximum total sentence of twenty-five years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution 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.
Deported Alien Charged with Illegally Re-entering United StatesRead the Press Release
ERIE, Pa. - A former resident of Guanajuato, Mexico has been indicted by a federal grand jury in Erie on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Valente Hernandez-Marquez, 22, as the sole defendant.
According to the indictment presented to the court, on or about September 24, 2013, Hernandez-Marquez was found to be unlawfully present within the United States. Hernandez-Marquez had been previously deported and removed from the United States on February 3, 2011. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Bureau of Customs and Border Protection 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.
7 October 2013
Schuylkill County Woman Conspired to File False Income Tax Returns Requesting $210K in RefundsRead the Press Release
JOHNSTOWN, Pa. - A resident of Mahanoy City, Pa., pleaded guilty in federal court to a charge of conspiracy to defraud the government, United States Attorney David J. Hickton announced today.
Kimberly Lynn Snyder, 37, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from April 2008 to October 2010 Snyder conspired to file 72 false and fictitious income tax returns claiming tax refunds totaling $210,581.
Judge Gibson scheduled sentencing for Feb. 25, 2014, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Snyder on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Snyder.
Memphis Police Officer Pleads Guilty to Sex TraffickingRead the Press Release
Memphis, TN – Sean McWhirter, 31, of Memphis, Tennessee pleaded guilty today to one count of transportation of individuals in interstate commerce for the purpose of prostitution, in violation of 18 U.S.C. § 2421, announced United States Attorney Edward L. Stanton III.
McWhirter is a five-year veteran of the Memphis Police Department who was serving as a patrolman at the time of his arrest.
On September 13, 2012, while on duty and in his patrol car, McWhirter agreed to transport three women to a location in Tunica, Mississippi, for the purpose of prostitution. Subsequently, on
September 16, 2012, while off duty, McWhirter delivered two women from Memphis, Tennessee, to a hotel in Tunica. Upon entering the room with the women, McWhirter was arrested by Special Agents and Task Force Officers of the FBI. McWhirter changed his plea in a court hearing before Judge S. Thomas Anderson today, October 7, 2013.
The penalty for this charge is no more than 10 years in federal prison and a fine of no more than
$250,000. McWhirter is scheduled to be sentenced by Judge Anderson on January 7, 2014 at
1:30 p.m. There is no parole in the federal prison system.
This crime was investigated by the Tarnished Badge Task Force, which is comprised of investigators from the Federal Bureau of Investigation, Memphis Police Department, and Shelby
County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Brian
K. Coleman on behalf of the government.Jury Convicts Former Hialeah Police Officer and Wife of Dealing in Firearms Without A LicenseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Scott J. Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Rafael Oscar Valdes and Tammy Lynn Valdes, of Miami, Florida, were found guilty by a federal jury of all counts charged in connection with the unlawful sale of hundreds of firearms without a federal firearms license.
After a two week trial and over 300 items of admitted evidence, the jury convicted Rafael Valdes with dealing in firearms without a license (18 U.S.C. § 922(a)(1)(A)), making a false statement to a federal firearms dealer (18 U.S.C. § 922(a)(6)), interstate transportation of stolen property (18 U.S.C. § 2314), and filing false tax returns for years 2008 – 2011 (26 U.S.C. § 7206(1)). The jury also convicted Tammy Valdes with dealing in firearms without a license and filing false tax returns for years 2008 – 2011. At sentencing, Rafael Valdes faces a combined maximum statutory term of imprisonment of 37 years, as well as paying restitution to the City of Hialeah and possible fines. At sentencing, Tammy Valdes faces a combined maximum statutory term of imprisonment of 18 years and possible fines. Sentencing is scheduled for December 12, 2013, before U.S. District Judge Donald M. Middlebrooks.
According to the court record and evidence presented at trial, Rafael Valdes was employed as a police officer with the City of Hialeah, Florida since 2004. Tammy Valdes was also once employed as a police officer with the City of West Miami, Florida, from 2004 until 2008 and the Town of Golden Beach, Florida, from 2008 through 2009. Neither defendant ever possessed a federal firearms license.
The Valdeses were initially indicted on December 13, 2012, for dealing in firearms without a license. Starting as early as July 2005, and continuing through June 2012, the defendants sold hundreds of firearms. In November 2008, the defendants began buying and selling firearms under the fictitious name of Custom Weapons Systems. The defendants advertised and sold over 100 firearms via the Internet to persons across the nation. The defendants also attended over 100 gun shows in the Southern and Middle Districts of Florida, during which they purchased over 400 firearms and sold over 500 firearms. At times, their purchase and subsequent sale of firearms took place on the same day. Additionally, the defendants sold nine firearms to undercover agents, solicited the purchase of firearms from undercover agents, and offered to acquire firearms for undercover agents on a repetitive basis.
As part of the initial indictment, Rafael Valdes was charged with making a false statement to a licensed firearms dealer in December 2008 when he purchased three AR-15 serialized lower receivers. Evidence admitted during trial proved that Rafael Valdes purchased those receivers for the sole purpose of building and selling completed rifles to three other officers after taking deposits. Rafael Valdes then falsely stated on an ATF Form 4473 that all three receivers were his, when in fact he was acquiring those receivers for other persons.
On July 31, 2013, a superseding indictment added tax charges against both defendants for filing false tax returns from 2008 – 2011, in that they failed to report their total income which included money derived from firearm sales. During trial, evidence was presented that the Valdeses failed to report over $350,000.00 in gross receipts during 2008 - 2011.
The superseding indictment also charged Rafael Valdes with transporting stolen firearm parts from the Hialeah Police Department where he was employed in the training section. During trial, the evidence showed that Rafael Valdes took apart firearms that were in evidence at the Hialeah Police Department and deemed to be destroyed. Rafael Valdes then advertised those parts for sale on the internet and later transported those parts to buyers located across the United States, including; New York, California, Utah, and Missouri. Rafael Valdes then deposited the proceeds into his personal bank account. In addition to selling parts of firearms that were once in evidence, Rafael Valdes also sold machine gun parts taken from six different Heckler and Koch, MP-5 machine guns which had been utilized by the Hialeah Police Department SWAT team.
Mr. Ferrer commended the investigative and cooperative efforts of ATF, IRS-CI, BSO, PBSO, Miami-Dade Police Department, Miami Beach Police Department, City of Miami Police Department, Virginia Gardens Police Department, Hialeah Police Department, FDLE, FBI and HSI. The case was prosecuted by Assistant U.S. Attorneys Adam McMichael and John McMillan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Idaho Resident Sentenced for Sexually Exploiting Two ChildrenRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced that Michael Brian Clair, 33, formerly of Hazelton, Idaho, and Parker, Arizona, was sentenced today in United States District Court to 30 years in prison and 20 years of supervised release after pleading guilty to sexual exploitation of children by production of sexually explicit images of minors. U.S. District Judge Edward J. Lodge also ordered Clair to forfeit personal property used in the offense.
According to his plea agreement, Clair came to the attention of law enforcement on October 28, 2012, when he responded to an advertisement posted on Craigslist by an undercover Homeland Security agent in New Orleans, Louisiana. While conversing via email with the undercover agent, Clair made several statements about having inappropriate sexual contact with a four-year-old female and discussed trading sexually explicit images. During the plea hearing on August 13, Clair admitted that between July 2012 and January 2013, he used two prepubescent minors to engage in sexually explicit conduct, for the purpose of producing visual depictions of that conduct, and transported those images from Arizona to Idaho in late December. He also admitted distributing child pornography to others via the internet, including to a sex offender in Queensland, Australia.
Clair was also involved in trafficking sexually explicit images of 45 other children. The child pornography seized from Clair’s computer was identified by the National Center for Missing and Exploited Children (NCMEC).
“Those who victimize children by producing and distributing images of children being sexually abused will be identified, investigated and prosecuted,” said Olson. “Today’s sentence sends the strong message that local, state and federal agencies will work together in an efficient and coordinated manner to bring these predators to justice.”
“Child pornography producers and consumers destroy innocent lives,” said Brad Bench, special agent in charge of HSI Seattle, who oversees Idaho investigations. “This case provides yet another cautionary reminder for child predators who mistakenly believe they can preserve their anonymity by sharing child pornography over the Internet. When it comes to protecting children, we can't take chances. We can't ignore the obvious and we will continue to seek out these perpetrators and bring them to justice.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) agents from Idaho, Louisiana, Washington, and Arizona investigated the case, with assistance from the Boise Police Department, Idaho State Police, the Jerome County Sheriff’s Office and the Idaho Department of Health and Welfare.
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, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.”
Former City of Miami Police Officer Convicted on Corruption ChargessRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department, announce that Vital Frederick, 27, a former City of Miami Police Officer, was convicted after a five day trial before U.S. District Judge K. Michael Moore. The jury returned a guilty verdict on all seven counts in the indictment, including four counts of interference with commerce by extortion, one count of access device fraud, and two counts of aggravated identity theft. The defendant provided protection and security for an illegal check cashing scheme and exploited the Police databases to steal identities and sell the identifiers believing they were to be used to commit tax fraud.
FBI Public Corruption Task Force and the City of Miami Internal Affairs Section initiated an investigation on former Officer Frederick after receiving a report of Frederick’s suspicious activity while on duty. On four separate occasions, between August 2012 and September 2012, Frederick provided protection for a courier who he believed was cashing fraudulent government checks at the check cashing store. He did so, while in full uniform and while driving his marked City of Miami Police Department vehicle. Frederick, in an effort to further facilitate the criminal activity, escorted the courier away from the check cashing store to give the courier safe passage. In exchange for providing security of the courier, who was purportedly cashing fraudulent government checks at the check cashing store, Frederick took receipt of approximately $800 cash.
In October 2012, Frederick sold the personal identifiers of 52 individuals to a second cooperating source after accessing City of Miami Police Department databases. During the investigation, City of Miami Police Department Internal Affairs Unit covertly monitored Frederick’s Police issued laptop and found that he conducted searches of the victims whose identities he was selling.
Mr. Ferrer commended the investigative efforts of the FBI and the City of Miami Police Department. This case is being prosecuted by Assistant U.S. Attorneys Robin Waugh and Michael Davis.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Foreign National Sentenced for Role in Drug Trafficking OrganizationRead the Press Release
Maria Elena Rico-Lopez, 33, a citizen of Mexico who most recently resided in St. Louis, MO, was sentenced on October 4, 2013, following her conviction for Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine and Entry Into the United States Without Inspection, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Rico-Lopez had been charged on August 22, 2012, in an eleven count indictment charging a total of ten individuals with being members of a large drug trafficking organization. Rico-Lopez was sentenced to 30 months in prison, followed by two years of supervised release. Rico-Lopez was also ordered to pay a $110 special assessment and to forfeit $23,560.00 to the United States. The Court also entered a Judicial Order of Removal, which requires her to be deported following the service of his sentence.
According to the Stipulation of Facts which was filed with the Court at the time of the plea, the organization charged in the Indictment was responsible for importing cocaine from Mexico into the United States, where it was taken to Salt Lake City, Utah. From Salt Lake City, the cocaine was transported by members of the conspiracy to the St. Louis Metropolitan area where it was distributed by various members of the organization, including some who operated within the Southern District of Illinois. Proceeds for the sales of the cocaine were then transported back to the leaders of the conspiracy in Salt Lake City.
Of the nine individuals named in the indictment with Rico-Lopez, six have entered pleas of guilty; two have been arrested and are awaiting trial; one is a fugitive. Those not yet convicted are presumed innocent because an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff's Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
East St. Louis Man Sentenced to Fifteen Years in Prison for Possession of A Firearm by A Convicted FelonRead the Press Release
An East St. Louis, Illinois, man was sentenced in federal district court to a lengthy term in federal prison for Possession of a Firearm by a Felon on October 7, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Danyahle L. Mosley, 32, was sentenced to 180 months (15 years) in prison, to be followed by 5 years supervised release, a $100 special assessment, and a fine of $100. Parole has been abolished in the federal system. Mosley had plead guilty on April 15, 2013, to an Indictment charging him with Possession of a Firearm by a Felon. The charge relates to an incident that occurred on October 5, 2011, in East St. Louis, Illinois, when law enforcement officers conducted a parole compliance check of Mosley’s home and discovered a 20-gauge shotgun, a magazine for the gun, and two boxes of ammunition in Mosley’s home. Mosley admitted that those items were his. At the time, Mosley was on parole for Unlawful Possession of a Controlled Substance, for which he had been paroled on January 26, 2011.
United States Attorney Wigginton noted, “Mosley was sentenced under the Armed Career Criminal Act, which requires a minimum sentence of 15 years in prison if a defendant, charged with Possession of a Firearm by a Felon, has at least three prior convictions for violent felonies and/or serious drug felonies. A sentence like this should serve as a warning to those who would repeatedly violate the law – federal prison sentences are severe. You will face drastic consequences for your actions.” Documents filed with the court indicate that Mosley had been convicted in 2001 and 2004 for separate residential burglaries, and had been convicted in 2008 for Robbery; all three of these crimes constituted crimes of violence for purposes of the Armed Career Criminal Act.
The sentencing judge also ordered forfeiture of the firearm, magazine, and ammunition.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Dover Developer Pleads Guilty to Bank ConspiracyRead the Press Release
Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Salvatore J. Leone, entered a guilty plea before the Honorable Gregory M. Sleet to a one count felony Information charging him with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
According to the criminal Information and plea agreement, Leone was a project manager for and partner with Michael A. Zimmerman in several limited liability companies formed for the purpose of developing real estate in or around Dover, Delaware.
Between September 24, 2007 and February 27, 2009, Leone and others, including Zimmerman and an employee of Zimmerman’s real estate development company, BBC Enterprises, submitted or caused to be submitted false draw requests to Wilmington Trust Company. In particular, Leone admitted to the following acts during his plea hearing:
- On or about September 24, 2007, Leone agreed to create a bill for Zimmerman for $231,000.00 purportedly for work performed on the Compass Pointe project, with intent to submit the bill to WTC for payment. However, as defendant and Zimmerman knew, the payment was not for work actually performed on Compass Pointe, but was to be used by Leone to fund a capital call on at least one unrelated real estate project.
- On or about October 28, 2008, Leone and Zimmerman submitted to WTC a fraudulent construction draw request for $8,568.00. The conspirators represented that these loan proceeds would be used to fund a change order associated with the Salt Pond project. Instead, Leone and Zimmerman used the loan proceeds for construction costs associated with an unrelated project.
- On or about January 3, 2008, Leone and Zimmerman submitted to WTC a fraudulent construction draw request for approximately $170,000.00. Leone and Zimmerman represented that these loan proceeds would be used to fund construction costs associated with the Compass Pointe project, but $100,000.00 of these proceeds were instead converted into a check made payable to Zimmerman.
- On or about January 15, 2008, Leone and Zimmerman submitted to WTC a fraudulent construction draw request for $375,000.00. Leone and Zimmerman represented that these loan proceeds would be used to fund architectural and engineering costs associated with the Shoppes at Fieldstone project. Instead, Leone and Zimmerman each received a check for $120,000.00, while the project account received only $135,000.00.
- On or about February 27, 2009, Leone and Zimmerman misappropriated approximately $260,000.00 in escalated lease payments received from a lessee for the Shoppes at Fieldstone project. In the loan agreement for the Shoppes at Fieldstone project, it had been represented that the escalated lease payments would be reinvested back into that project. Rather than comply with the terms of the loan agreement, Leone and Zimmerman used the loan proceeds for another purpose, namely the payment of a checks to Leone and Zimmerman, each in the amount of $130,000.00.Leone, age 50, is a resident of Dover, Delaware. He faces a maximum penalty of 30 years imprisonment, a $1,000,000.00 fine, and mandatory restitution.
Leone, age 50, is a resident of Dover, Delaware. He faces a maximum penalty of 30 years imprisonment, a $1,000,000.00 fine, and mandatory restitution.
United States Attorney Oberly said, “The charge against Mr. Leone and today’s guilty plea represent another step forward in this Office’s investigation into the demise of the Wilmington Trust Corporation. We, and our investigative partners, remain determined to identify and prosecute abuses like this one that compromise the integrity of Delaware financial institutions.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue
Service Criminal Investigation Division, the Special Inspector General for the Troubled Asset
Relief Program (SIGTARP), and the Office of Inspector General, Board of Governors of the Federal Reserve System, and is being prosecuted by Assistant United States Attorneys Robert F. Kravetz and Lesley F. Wolf.
Leone Plea Agreement.pdfLeone Felony Information.pdf
- On or about September 24, 2007, Leone agreed to create a bill for Zimmerman for $231,000.00 purportedly for work performed on the Compass Pointe project, with intent to submit the bill to WTC for payment. However, as defendant and Zimmerman knew, the payment was not for work actually performed on Compass Pointe, but was to be used by Leone to fund a capital call on at least one unrelated real estate project.
California Truck Driver Sentenced to 18 Months in Prison for Meat Theft ScamRead the Press Release
United States Attorney Deborah R. Gilg announced that Artak Medjbarian of Sherman Oaks, California, was sentenced to 18 months in prison by United States District Court Judge Laurie Smith Camp for his involvement in attempting to steal $163,000 worth of meat products from Nebraska Beef. In addition to his prison term, Medjbarian will also serve 3 years of supervised release.
Medjbarian, age 33, was charged in May of 2012 by a federal grand jury in a scheme with others to steal loads of meat cargo, by pretending to be the legitimate freight haulers to whom authority to transport the loads had been given. The Indictment specifically charged a conspiracy to commit wire fraud and to engage in the interstate transportation of stolen property.
The Indictment alleged that Medjbarian used the identity of a legitimate trucking company in Arizona to bid on hauling a load of meat from Nebraska Beef to California. Due to discrepancies with respect to the documentation forwarded by unknown co-conspirators on Medjbarian’s behalf, the freight brokers contacted the owners of the true Lopez Trucking, and determined that Lopez Trucking did not have trucks operating under their authority in the State of Nebraska on the day Medjbarian showed up at Nebraska Beef pretending to have the transport authority of Lopez Trucking. Omaha Police were contacted and Medjbarian was initially arrested on local charges which included possession of stolen property, due to the license plates on the tractor being plates to which the tractor was not registered.
Medjbarian had previously been detained by the United States Marshal pending sentencing. Medjbarian faced a maximum penalty of up to five years in prison on the conspiracy conviction.
In addition to the Omaha Police Department, the case was also investigated by the Nebraska State Patrol and by the Federal Bureau of Investigation.
CEO of Local Company Sentenced to 30 Months Imprisonment for Pocketing Employee Payroll Tax WithholdingsRead the Press Release
Charles Smith, age 54, of Bear, Delaware, was sentenced to thirty months imprisonment by the Honorable Gregory M. Sleet, Chief Judge of the United States District Court for the District of Delaware on Friday, October 4th, after pleading guilty to failing to account for and pay over his employees’ payroll taxes. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the sentence today. Smith pled guilty to ten counts of Failure to Truthfully Account For and Pay Over Payroll Taxes, in violation of Title 26, United States Code § 7202.
This case was investigated by Jacqueline Zebley of the IRS, and was prosecuted by Assistant United States Attorney Jennifer K. Welsh.
Smith was the Chief Executive Officer of eShowings, a company which provides online and telephone appointment services for real estate professionals. eShowings has offices in Newark, Delaware, North Carolina, and Kansas. As the founder and CEO of eShowings, Smith was responsible for ensuring that employees’ payroll tax withholdings were paid over to the government. Instead, Smith took money deducted from employees’ paychecks and spent it personal items for himself and his family. At the sentencing hearing, the Court noted that Smith had spent the money on vacations, gambling, a pontoon boat, and other personal expenses.
United States Attorney Charles M. Oberly stated of the prosecution, “My office is committed to protecting the hardworking wage earners who think they are meeting their tax obligations from unscrupulous employers who victimize them and fail to pay their share to the government.”
“Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service,” said IRS Special Agent in Charge Akeia Conner. “The failure to pay over withheld taxes is a serious offense. Friday’s sentencing shows that IRS Criminal Investigation, the United States Attorney's Office and the District Court of Delaware are all in accord regarding the seriousness of this offense.”Attorney Sentenced in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Scott F. Saidel, 45, was sentenced to 36 months in prison to be followed by 2 years of supervised release by U.S. District Judge Robin S. Rosenbaum. In addition, Saidel was ordered to pay restitution in the amount of $515,000.
Saidel pled guilty to conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 371 on January 30, 2013. Saidel was charged, along with Kimberly Wendell Rothstein, 38, and Stacie Weisman, 49, in September 2012, in connection with certain crimes committed in furtherance of a plot to conceal and dispose of assets which were forfeitable in connection with a Ponzi scheme orchestrated by Scott W. Rothstein. At the same time, in September 2012, Eddy Marin, 50, and Patrick Daoud, 54, were also charged in a separate, but related, matter with obstruction of justice and perjury, in violation of Title 18, United States Code, Sections 1512(k) and 1621.
According to the documents filed with the court, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigations, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. However, according to Court documents, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars, for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.
The documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, the defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in the bankruptcy proceedings. It is further alleged that Marin and Daoud committed perjury during depositions in connection with the bankruptcy proceedings, and that Kimberly Rothstein, Stacie Weisman and Scott F. Saidel sought to have Scott W. Rothstein testify falsely in connection with those proceedings.
Kimberly Rothstein and Stacie Weisman are scheduled to be sentenced on November 12, 2013. Trial in the matter of Eddy Marin and Patrick Daoud is set to commence on October 21, 2013.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence LaVecchio, Jeffrey Kaplan, Paul Schwartz and Evelyn Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
4 October 2013
Vero Beach Resident Pleads Guilty to Importing Illegal Catch from the BahamasRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries, Office of Law Enforcement, Southeast Division, and Major Camille Soverel, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announce that Toby Lamm, 46, of Vero Beach, entered a guilty plea in Fort Pierce before U.S. Magistrate Judge Frank J. Lynch to importing illegal catch in violation of the Lacey Act, Title 16, United States Code, Sections 3371(a)(2)(A) and 3373(d)(1)(A).
According to allegations in the information and statements made in court, on or about June 23, 2013, in St. Lucie County, Lamm attempted to import queen conch (Strombus gigus), spiny lobster (Panulirus argus), stone crab (Menippe mercenaria) claws and demersal (fin fish) namely: snapper (Lutjanus) and grouper (Serranidae), in violation of the possession limits for each of the species as set forth in the laws and regulations of the Commonwealth of the Bahamas, specifically, the Fisheries Resources (Jurisdiction & Conservation) Regulations, Part X, Sections 47(1)(a), (b) and 48(1)(f) and the laws and regulations of the State of Florida, specifically 68B-16.003(1), 68B-24.003(4), and 68B-13.005(2) contrary to the federal Lacey Act.
The information also seeks the forfeiture of the illegal catch: approximately, 338 queen conch, 11 spiny lobster tails, 31 stone crab claws, and 140 pounds of snapper and grouper fillets.
Sentencing is scheduled for December 16, 2013 before U.S. District Judge Jose E. Martinez. Lamm faces a possible sentence of up to one year in prison, the forfeiture of the illegal catch, and a fine of up to $10,000.
Mr. Ferrer commended the investigative efforts the NOAA, Office of Law Enforcement, FWC, and Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Antonia Barnes.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tuscaloosa County Man Indicted for Financial FraudRead the Press Release
BIRMINGHAM -- A federal grand jury has indicted a Tuscaloosa County man on multiple fraud and false statement charges connected to schemes to defraud financial institutions and the United States Small Business Administration of approximately $3 million, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A 51 count indictment filed in U.S. District Court charges DANNY RAY BUTLER, 57, of Fosters, Alabama, with wire fraud and multiple counts of false statements and bank fraud arising from three fraud schemes.
Butler owned and operated Butler Wholesale, Inc., a used car lot in Tuscaloosa, and Fosters Groceries, LLC, a company formed to build and operate a grocery store in Fosters. According to the Indictment, Butler defrauded the United States Small Business Administration (SBA) of $1,760,000 in connection with a loan to build Fosters Groceries, he engaged in a check kite scheme that caused Alabama One Credit Union to lose $1,275,000, and he made misrepresentations to Butler Wholesale’s floor plan company and caused a loss of $50,000.
The SBA is an agency of the federal government created to aid, counsel, assist, and protect the interests of small businesses. Through partnerships with public and private organizations, SBA helps Americans start, build, and grow small businesses. One of the ways in which SBA helps small businesses is through the SBA 504 Loan Program.In early 2010, Butler sought to borrow approximately $5 million from West Alabama Bank and Trust to build a grocery store in Fosters, Alabama. Subsequently, when West Alabama Bank and Trust refused to finance the entire project, Butler applied for and obtained an SBA 504 loan. West Alabama Bank and Trust ultimately agreed to loan Butler 50% of the total amount of the project and SBA agreed to finance 35% of the total amount. Butler was required to provide the remaining 15% as his cash injection into the project. Almost immediately after construction was complete, Butler defaulted on the loans by failing to make payments to SBA and West Alabama Bank and Trust as promised. SBA suffered a loss of over $1.7 million.
According to the Indictment, between March 2010 and October 2012, Butler devised and intended to devise a scheme and artifice to defraud SBA and to obtain money and property belonging to SBA by means of materially false and fraudulent pretenses, representations, and promises. It was a part of the scheme and artifice that Butler would and did submit false, forged, and altered documents to SBA in an effort to obtain an SBA 504 loan and receive over $1.7 million from SBA. Those false documents and representations included false, forged, and altered proposals, quotes, estimates, and bids submitted to SBA as evidence of the project’s cost, false, forged, and altered checks submitted to SBA as evidence of Butler’s cash injection, and false certifications on loan application forms that all information in the applications was true and complete. For instance, one count of the Indictment alleges that Butler submitted a construction company's cost proposal for the grocery store project that Butler is charged with altering to increase the proposed cost from $2.3 million to $4.2 million. Other counts detail further false documents that Butler submitted to SBA.
The indictment also contains multiple bank fraud counts charging Butler with a check-kiting scheme in 2011 and 2012 in which he carefully timed deposits and checks between his Fosters Groceries account at West Alabama Bank and Trust and his Butler Wholesale account at Alabama One Credit Union to artificially inflate the account balances. Hundreds of checks, totaling about $45 million, were deposited from one account to the other at the two financial institutions, according to the indictment. When West Alabama bank discovered the check-kiting scheme in February 2012 and refused to honor a number of Fosters Groceries' checks deposited into Butler's Alabama One Credit Union account, the credit union lost about $1.275 million, according to the indictment.
The third fraud scheme alleged in the indictment involves Butler's misrepresentations to the company that provided financing for his inventory at Butler Wholesale. Butler received loans from Next Gear Capital to buy inventory for his car lot. Each loan from Next Gear was secured by a specific car, and Next Gear conducted monthly inspections of the dealership's inventory. According to the indictment, Butler employed various schemes to defraud Next Gear Capital in order to continue receiving loans. His fraudulent representations included representing that cars were part of the dealership's inventory even though the cars had already had been sold, and lying to representatives of Next Gear when they conducted inspections of his inventory. Butler’s scheme caused Next Gear Capital a loss of at least $50,000.
Butler faces maximum penalties of 20 years imprisonment and a $250,000 fine on each of the 3 wire fraud counts, 30 years imprisonment and a fine of $1 million on each of the 30 bank fraud counts, and 5 years imprisonment and a $250,000 fine on each the 18 false statement counts.
The indictment also seeks to have Butler forfeit $3,085,000 as proceeds of his fraudulent schemes.
The FBI and SBA-OIG investigated the case and Assistant U.S. Attorney George A. Martin Jr. is prosecuting it.
The public is reminded that an indictment contains only charges and it will be the government's responsibility to prove the defendant's guilt beyond a reasonable doubt at trial.
Murphysboro Man Sentenced to 13 Years in Prison for Distributing Heroin in Saline CountyRead the Press Release
Brian L. Cayce, 45, of Murphysboro, Illinois, was sentenced today in United States District Court in Benton to 156 months in prison for distributing heroin, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Cayce was charged by a Federal Grand Jury in November 2012 with distributing heroin on September 18, 2012, to an agent of the Southern Illinois Drug Task Force who was working undercover at the time. He pled guilty to that offense on May 22nd.
In addition to the 13 year term of imprisonment, Cayce was ordered to pay fines and special assessments to the United States totaling $200, and was placed on a 3 year term of supervised release to follow his incarceration. Under federal law, parole has been abolished meaning that Cayce will be required to serve a minimum of 85% of his prison sentence.
Cayce has been held without bond in the custody of the United States Marshal since his arrest on the federal charges. He was returned to the Marshal’s custody to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force with the assistance of the United States Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Leader of Canada Based Debit Card Skimming Ring Sentenced to 5 Years in PrisonRead the Press Release
A Canadian caught with more than 2600 stolen debit card numbers on his laptop computer was sentenced to five years in prison for access device fraud and aggravated identity theft, announced U.S. Attorney Jenny A. Durkan. DENNIS NGUYEN, of Vancouver, B.C. Canada was sentenced by Chief U.S. District Judge Marsha J. Pechman on October 4, 2013. NGUYEN was arrested in February 2013, after he traveled to Seattle to meet with some of the conspirators he used to make cash withdrawals using the stolen debit card numbers. The investigation revealed the numbers had been stolen using “skimming” devices surreptitiously attached to point of sale machines in coffee shops in Vancouver, BC.
The investigation revealed that NGUYEN directed various co-conspirators who would take the debit cards he manufactured with the stolen information and conduct rapid cash withdrawals from customer accounts at various ATMs in and around Seattle and Everett. When two of the co-conspirators were arrested, law enforcement seized a bag containing $77,140 in cash, 460 counterfeit cards, seven burner cell phones, a cash counting machine, a magnetic card strip encoder, a label printer, and miscellaneous supplies associated with the mass card skimming operation. When NGUYEN was arrested, his laptop computer, which he brought from British Columbia, contained over 2,600 bank card numbers linked to approximately 100 different financial institutions, both foreign and American. Of those card numbers, approximately 463 were connected to fraudulent cards previously recovered in the case.
The case was investigated by the U.S. Secret Service Electronic Crimes Task Force and was prosecuted by Assistant United States Attorney Steven Masada.
Former City of Miami Police Officer Convicted in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Manuel Orosa, Chief, City of Miami Police Department (MPD), and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the conviction of Malinsky Bazile, 28, of North Miami Beach, for his participation in a stolen identity tax refund scheme.
Specifically, Bazile was convicted by a jury of one count of fraudulent use of unauthorized devices, in violation of Title 18, United States Code, Section 1029(a)(2), four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), one count of exceeding authorized access to a protected computer, in violation of Title 18, United States Code, Section 1030(a)(4), and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3).
According to testimony and evidence presented at trial, the defendant operated an identity theft tax refund scheme from January 2012 to October 2012. During that period, the defendant, while employed as a City of Miami Police Officer, used his access to the Florida driver’s license database to steal the personal identity information of approximately seven hundred middle-aged women with common last names throughout the State of Florida. Using those identities, the defendant filed false and fraudulent tax returns with the Internal Revenue Service seeking refunds payable on to pre-paid debit cards. The defendant was captured on multiple bank ATM videos withdrawing money from pre-paid debit cards loaded with fraudulent tax refund proceeds. FBI and MPD conducted a search at the defendant’s residence and found ledgers in a safe filled with hundreds of people’s identities and several pre-paid debit card containers. The defendant admitted to FBI and MPD that he made between $130,000 to $140,000 from the fraud scheme in 2011 and 2012.
Sentencing is scheduled for December 16, 2013 at 9:00 a.m. before U.S. District Judge Robin Rosenbaum. Bazile faces a possible maximum prison sentence of 33 years in prison.
Mr. Ferrer commended the FBI, MPD, and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Peter Forand.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Desoto Man Faces Federal Prison for ‘Meth’ CaseRead the Press Release
On October 3, 2013, Leslie Blaine Clover, 48, of Desoto, Ill., was sentenced in United States District Court in Benton on a one-count superseding indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Clover, who had previously pled guilty to the methamphetamine offense, was sentenced to 168 months in prison, to be followed by 5 years of supervised release. Clover was also fined $200. The offense occurred between June 2012 and January 28, 2013, in Jackson and Randolph Counties. Evidence at the plea and sentencing hearings established, during the conspiracy, Clover provided others with pseudoephedrine for use in the manufacture of methamphetamine. Clover also sometimes acted as a look-out, while others were stealing methamphetamine-related items. Clover received an enhanced sentence based on his classification as a Career Offender.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Randolph County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
David Renz Pleads Guilty to Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – David J. Renz, 29, of North Syracuse entered guilty pleas in federal court in Syracuse today to all counts of a six count Indictment charging him with receipt and possession of child pornography, announced United States Attorney Richard S. Hartunian.
By his plea, Renz admitted that when FBI agents interviewed him in June of 2012 he consented to their search of a computer he used to download and store child pornography. He was arrested in January, 2013 after agents located over 500 video files and over 3,000 image files depicting child pornography on his computer. Renz also pled guilty to 5 counts of possession of child pornography related to images and videos he possessed on DVDs and a CD seized from his residence on the date of his arrest.
Upon sentencing, Renz faces a mandatory minimum sentence of 5 years in federal prison, a maximum term of imprisonment of 20 years, for the charge of receiving child pornography, and a maximum term of imprisonment of 10 years on each of the possession charges. In addition, he faces fines of up to $250,000 on each count and mandatory supervised release of no less than 5 years and up to life following any term of incarceration. In addition, conviction of the charged offenses will require Renz to register as a sex offender. Sentencing is scheduled for February10, 2014.
Renz's arrest was the result of an investigation by the Federal Bureau of Investigation as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The federal prosecution is being handled by Assistant U.S. Attorney Lisa Fletcher, who can be reached at 448-0672.
3 October 2013
Yakima Man Sentenced to 85 Months ImprisonmentRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Michael Brandon Stewart, age 29, of Yakama, Washington, was sentenced for being a previously convicted felon in possession of a firearm. Senior United States District Court Judge Lonny R. Suko sentenced Stewart to an 85 month term of imprisonment and a 36 month term of court supervision following release from federal prison.
According to information disclosed during the court proceedings, in June 2011, Yakima Police Department officers became aware that Stewart allegedly offered to sell a firearm to an individual who was cooperating with them. At that time, the officers were aware that Stewart was a previously convicted felon and, therefore, prohibited from possessing firearms. Thereafter, law enforcement officers arranged a successful undercover sting operation – Stewart sold a .44 caliber handgun to the individual cooperating the officers. The Bureau of Alcohol, Tobacco, Firearms, and Explosives subsequently ran a trace on the handgun and discovered it had been stolen during a residential burglary. Stewart has a lengthy criminal history including convictions for residential burglary, first degree theft, third degree assault, possession of an illegal weapon, possession of methamphetamine, bail jumping, and delivery of a controlled substance.
Michael C. Ormsby said, "The United States Attorney's Office, the Yakima Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, are committed to protecting communities in the Eastern District of Washington from convicted felons who unlawfully possess firearms. This case was particularly egregious because the handgun had been stolen during an earlier residential burglary."
This investigation was conducted by the Yakima Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
11-CR-02106-LRS
Wilmington Man Sentenced for Robbery and Firearm ChargesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced AARON MONROE , 41, of Wilmington to 324 months imprisonment, followed by 5 years of supervised release.
Investigation of this case was conducted by the Wilmington Police Department along with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Charity Wilson represented the government. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute violent crime and firearm related cases.
Aaron monroe was named in an Indictment filed on April 24, 2012 charging him with Robbery of a Business Engaged in Interstate Commerce, Using and Carrying a Firearm During and in Relation to a Crime of Violence and Felon in Possession of a Firearm. On October 1, 2012, monroe pled guilty to those charges.
According to the investigation, on December 7, 2011, MONROE along with his father, Victor McClain, armed with a firearm and a BB gun, entered Game Giant, located in Wilmington, North Carolina. Upon entry into the store, MONROE and McClain pretended to be customers until the store clerk appeared to be alone. MONROE and McClain produced firearms and demanded money. Unbeknownst to MONROE, there were still two customers in the store who also were robbed of their money. After getting money from the cash register, MONROE and McClain forced the victims into a bathroom and barricaded the door with a shelf. Once the victims heard the door chime, that indicated the robbers had left the store, they forced the door opened and escaped. The store clerk ran outside and saw an officer with the Wilmington Police Department and pointed out the robbers who were leaving in a car. The Wilmington Police Department attempted to stop the car. MONROE was driving the car and refused to stop for law enforcement. MONROE recklessly endangered the Wilmington citizenry by speeding throughout the city, running stop signs, weaving into oncoming traffic and driving recklessly through parking lots of businesses and schools. After striking a fence pole in a vacant lot, the high speed chase ended and MONROE and McClain were taken into custody. MONROE confessed to his participation in the robbery of Game Giant.Wilmington Man Sentenced for Firearm ViolationsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced William Jenkins , 25, of Wilmington to 137 months imprisonment, followed by 3 years of supervised release.
jenkins was named in an Indictment filed on April 24, 2012 charging him with Possession of a Firearm by a Felon and Theft of Firearms from a Federal Firearms Licensee. On July 2, 2013, jenkins pled guilty to those charges.
According to the investigation, on October 26, 2011, William JENKINS and Joshua Zack traveled to Rocky Point Guns and Ammo in Rocky Point, North Carolina and broke into a locked trailer behind the store. They stole 27 firearms from that businesses. JENKINS and Zack then took the firearms to JENKINS’ residence in Wilmington where they hid the firearms in JENKINS’ back yard. JENKINS and Zack were caught on November 2, 2011 when they went back to the same store in an apparent attempt to break in again. Officers with the Pender County Sheriff’s Office were patrolling the area more heavily after the first break in and caught JENKINS and Zack as they were parked by the store about to break in a second time. Several of the guns have been recovered in various investigations by the Wilmington Police Department.
Investigation of this case was conducted by the Pender County Sheriff’s Office, the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Charity Wilson represented the government. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute federal crimes of violence and firearm related crimes.
United States Attorney Identifies Operational Limitations During Government ShutdownRead the Press Release
PHOENIX - United States Attorney John S. Leonardo announced today that operations of the Office of the U.S. Attorney for the District of Arizona, all divisions – Tucson, Phoenix, Flagstaff and Yuma, are being affected by the partial shutdown in effect since midnight, October 1, 2013.
Most criminal litigation and related work will continue with limited interruption, as these activities are deemed essential to the safety of human life and the protection of property. The U. S. Attorney’s Office will continue to work closely with federal, state, and local law enforcement on criminal matters. However, because of the appropriation lapse and partial shutdown, much of the office’s staff working on civil litigation is being furloughed. Administrative and criminal support staff are also being furloughed. All civil litigation in which the office is involved will be curtailed or postponed to the extent possible without compromising public safety or the protection of property, and always subject to the direction of the federal courts.
Because of the effects of the appropriations lapse on activities of the U.S. Department of Justice, the U.S. Attorney’s Office will not be able to readily respond to media inquiries. Press releases will be limited to urgent matters involving public safety. The office’s website will not be actively during the shutdown. The district will continue to receive communications from the public via mail, email and/or telephone.
For additional information concerning the effects of the appropriations lapse and partial shutdown, visit www.justice.gov/jmd/publications/doj-contingency-plan.pdf or http://www.justice.gov/usao/az/.
RELEASE NUMBER: 2013-078_Shutdown
Trustee Sentenced to 33 Months in Federal Prison and Ordered to Pay $211,165 in Restitution on Tax Evasion ConvictionRead the Press Release
LUBBOCK, Texas — Randy Lynn White was sentenced today by U.S. District Judge Sam R. Cummings to 33 months in federal prison, a term of three years supervised release, and ordered to pay $211,165 in restitution, following his guilty plea in June 2013 to an Information charging one count of tax evasion. Judge Cummings ordered that White surrender to the Bureau of Prisons on November 7, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, White admits that he intentionally and willfully did not file required tax returns for 2007, 2008 and 2009 in order to evade the payment of taxes due and owing to the United States. White agrees that as a result of this criminal conduct, the tax loss to the U.S. for those years is $211,165.
White was the sole trustee of the Frank F. McMordie Jr Family Trust, f/b/o Frank F. McMordie III (the “Trust”). According to the factual resume, White admits that he derived substantial benefits and income from the Trust, both in administration fees from the Trust paid to him, and in monies he took from the Trust for his personal use. White had absolute control over the Trust’s assets, which consisted primarily of a large ranch in the Texas Panhandle that produced mineral interests. White paid himself excessive administrative fees and spent most of the Trust’s remaining money on extravagant personal expenditures, such as making his personal house payments, and buying motorcycles, diamond and gold jewelry and cars.
The factual resume goes on to state that White attempted to conceal his extravagant expenditures by paying a relatively small amount of the Trust’s income to the Trust’s beneficiary, Frank F. McMordie III, who resided in Mexico. White also admits that as part of his scheme to evade taxes, he disguised many of the funds that he diverted from the Trust’s bank account to his personal use by placing false business notations on the checks, falsely claiming that the expenditures were for business purposes. These checks falsely indicated that he was using the funds to operate what he designated as the “south” ranch. He falsely indicated that he was using the money for ranch operating expenses, such as cattle vaccines, loading chutes, cattle guards, trailers for the south ranch, fencing, and south ranch payroll, when, in fact, the Trust did not operate any ranch whatsoever.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Sentences for September 27 - October 03, 2013Read the Press Release
Joseph Daniel Sterkel, 31, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 2, 2013, for possession of a machinegun and perjury. Sterkel was arrested in Natrona County, Wyoming. He received 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Robert Anthony Johnson, 27, of Fort McCoy, Florida, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 27, 2013, for possession with intent to distribute methamphetamine and aiding and abetting. Johnson was arrested in Natrona County, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and Wyoming Highway Patrol.