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13 September 2013
Justice Department Files Lawsuit Alleging Disability-based Discrimination at Helena, Mont., Apartment ComplexRead the Press Release
The Justice Department filed a lawsuit yesterday against the owners, builders and designers of an eight unit apartment complex at 175 and 195 Silsbee Avenue in Helena, Mont. for violations of the Fair Housing Act. The lawsuit alleges that the defendants violated the law when they designed and constructed the complex with barriers that make it inaccessible to persons with disabilities.
“Since 1991, the Fair Housing Act has required that when new multifamily housing is built, it must be accessible to persons with disabilities,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. “When apartment complexes are built with steps and other barriers, those with disabilities are denied that equal housing opportunity.”
The suit, filed in U.S. District Court in Helena, alleges that various barriers at the Silsbee Avenue property deny persons with disabilities equal access to four ground floor units and the associated public and common use areas. Such barriers include inaccessible building entrances; no accessible parking; insufficient accessible routes into and through the units; light switches, electrical outlets, thermostats and other environmental controls inside the units in inaccessible locations; and kitchens that are inaccessible to persons in wheelchairs.
“Congress has recognized that it is important that individuals with disabilities have equal access to multiple family housing. This case serves as a reminder that persons with disabilities, including the elderly, veterans, and those with a disability from birth or from an accident, should enjoy as much as possible the same access to multiple family housing as persons without such disabilities” said Michael Cotter, U.S. Attorney for the District of Montana.
The lawsuit arises out of a complaint filed with the Department of Housing and Urban Development (HUD) by the Montana Fair Housing Council Inc. (MFH), a private nonprofit corporation whose mission it is to ensure compliance with fair housing laws for all persons in Montana. MFH inspected the Silsbee Avenue property and observed accessibility barriers there. After conducting an investigation, HUD issued a charge of discrimination and referred the case to the Justice Department.
“The Fair Housing Act's modest design and construction requirements allow people with disabilities to live independently and to fully use and enjoy their homes,” said Bryan Greene, HUD's Acting Assistant Secretary for Fair Housing and Equal Opportunity. “These requirements have been law for more than 20 years. HUD is committed to enforcing the nation’s fair housing laws and working to create equal housing opportunities for people with disabilities.”
Named in the suit are the owners and builders of the property, Gabriel and Sommer Nistler and Nistler Electric LLC, and the designer of the property, Derek Brown, and his firm, Derek Brown Consulting Inc. The suit seeks a court order requiring the defendants to retrofit the Silsbee Avenue property to bring it into compliance with the Fair Housing Act, as well as monetary damages for MFH and for persons harmed by the lack of accessibility at the complex.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status and disability. Among other things, the Act requires all multifamily housing constructed after March 12, 1991 to have basic accessibility features, including accessible routes without steps to all ground floor units. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] , or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court.
Joshua James Mccormick Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 11, 2013, before U.S. District Judge Dana L. Christensen, JOSHUA JAMES McCORMICK, a 19-year-old resident of Flathead County, was sentenced to a term of:
- Probation: 5 years, with 6 months home arrest
- Special Assessment: $100
- Restitution: $7,319
- Community Service: 200 hours
McCORMICK was sentenced in connection with his guilty plea to possession of stolen firearms.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On May 20, 2012, the Wooden Nickel Pawn Shop in Flathead County was burglarized and eight firearms were stolen.
On June 22, 2012, the Anything Pawn Shop in Flathead County was burglarized and 16 firearms were stolen.
McCORMICK and his co-defendants took 16 firearms and various firearm accessories. McCORMICK ended up with four of stolen firearms - three from Anything Pawn Shop and one from Wooden Nickel Pawn.
On July 26 and 27, 2012, law enforcement purchased a firearm from McCORMICK. During their interaction with McCORMICK, they seized two firearms stolen from Anything Pawn Shop. McCORMICK also admitted his role in the Anything Pawn Shop burglary.
The investigation was a cooperative effort between the Flathead County Sheriff's Office, the Kalispell Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Joseph Allen Lesmeister, Jr., Virgil Duane Matt, and Larry Charles McCormick, Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 11, 2013, before U.S. District Judge Donald W. Molloy, JOSEPH ALLEN LESMEISTER, JR., a 23-year-old resident of Kalispell, VIRGIL DUANE MATT, age 21, and LARRY CHARLES McCORMICK, age 21, residents of Columbia Falls, were each sentenced to a term of:
- Probation: 5 years, with 6 months home arrest
- Special Assessment: $100
- Restitution: $7,319
- Community Service: 400 hours
They were sentenced in connection with their guilty pleas to possession of stolen firearms.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On May 20, 2012, the Wooden Nickel Pawn Shop in Flathead County was burglarized and eight firearms were stolen.
On June 22, 2012, the Anything Pawn Shop in Flathead County was burglarized and 16 firearms were stolen.
MATT, LESMEISTER, LARRY MCCORMICK, and JOSHUA MCCORMICK took 16 firearms and various firearm accessories. MATT and LESMEISTER ended up with 10 stolen firearms from Anything Pawn. Joshua McCormick ended up with four of stolen firearms - three from Anything Pawn Shop and one from Wooden Nickel Pawn. The disposition of two of the firearms stolen from Anything Pawn remains unknown.
On July 16 and 17, 2012, law enforcement seized 11 firearms stolen from Anything Pawn Shop from MATT and LESMEISTER. MATT admitted that he, LESMEISTER, Joshua McCormick, and LARRY McCORMICK burglarized Anything Pawn Shop in May 2012. Two stolen firearms from the Wooden Nickel were also recovered from MATT and LESMEISTER.
On July 26 and 27, 2012, law enforcement purchased a firearm from Joshua McCormick. During their interaction with Joshua McCormick and LARRY McCORMICK, law enforcement seized two firearms stolen from the Anything Pawn Shop. Both McCORMICK brothers admitted their roles in the Anything Pawn Shop burglary.
Joshua McCormick pled guilty to federal charges.
- e investigation was a cooperative effort between the Flathead County Sheriff's Office, the Kalispell Police Department, the Montana Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jerard David Jo Threefingers Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 11, 2013, before U.S. District Judge Sam E. Haddon, JERARD DAVID JO THREEFINGERS, a 23-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, was sentenced to a term of:
- Prison: 37 months
- Special Assessment: $100
- Restitution: $1,300
- Supervised Release: 3 years
THREEFINGERS was sentenced in connection with his guilty plea to involuntary manslaughter.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 2, 2012, at approximately 12:30 p.m., law enforcement was advised of a one vehicle rollover crash on Crazy Head Springs Road near Lame Deer on the Northern Cheyenne Indian Reservation. The caller reported that one passenger was unconscious and another passenger was injured and needed medical help. Law enforcement arrived on the scene and found both a male and female lying on the ground. The female was deceased; the male was alive but injured. Law enforcement took photographs and collected evidence, including an empty Budweiser 30-pack container and 2 unopened cans of Budweiser.
After additional investigation, law enforcement learned that the vehicle, a Ford Explorer, was owned by the deceased female but they were unsure whether she had been driving the vehicle at the time of the crash. There were clear shoe impressions on the brake pedal and the driver's side door panel, but the deceased female was barefoot. Also, the driver's side seat was adjusted for someone much taller than the deceased female.
After some additional investigation, law enforcement learned that THREE FINGERS and another female had been in the car at the time of the crash but had walked away from the scene. Approximately two hours after the crash, THREE FINGERS was located by law enforcement and arrested on tribal charges of intoxication, DUI, and criminal homicide. THREE FINGERS was not interviewed until the next day because of his level of intoxication.
At first, THREE FINGERS identified the deceased female as the driver but, after further questioning, THREE FINGERS admitted that he was the driver. He admitted that he had been drinking prior to the crash and he explained that he hit a bump, lost control of the car, and caused the death of female and the injuries to the other passenger.
A toxicology screen of a blood sample taken from THREE FINGERS about three hours after the crash contained a blood alcohol content of .09.
The passenger that walked away from the scene with THREE FINGERS was interviewed and also admitted that THREE FINGERS was driving the vehicle at the time of the crash.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that THREEFINGERS will likely serve all of the time imposed by the court. In the federal system, THREEFINGERS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
Jasper County Man Charged with Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jasper County, Mo., man who sexually exploited children whom he contacted on Facebook has been charged in federal court with producing child pornography.
Ian Holman, 32, of Jasper County, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo., on Thursday, Sept. 12, 2013.
According to an affidavit filed in support of the federal criminal complaint, law enforcement authorities received reports from two child victims, identified as 14-year-old Jane Doe #1 in Webb City, Mo., and 13-year-old Jane Doe #2 in Carthage, Mo., after Holman contacted them via Facebook.
Holman, using the screen name “Lucky Holman,” allegedly offered to pay Jane Doe #2 $75,000 to $100,000 in exchange for various sexual acts. He also asked her to send him sexually explicit pictures of herself, which she did.
Holman allegedly contacted Jane Doe #1 last month and offered to pay her $65,000. She knew several 12-to-14-year-old girls whom Holman had listed as friends on his Facebook page, the affidavit says, but Jane Doe #1 did not know him and ended the conversation. She reported the contact to her father, who notified the police.
On Wednesday, Sept. 11, 2013, after receiving the report from Jane Doe #2, a sheriff’s deputy was dispatched to Holman’s residence. Holman attempted to elude the deputy by running out the back of the house and into the woods. The deputy, along with two other officers and a K9 unit, pursued Holman into the woods. The officers searched for Holman for approximately 45 minutes. The deputy was able to contact Holman by phone and persuade him to turn himself in.
According to the affidavit, Holman told law enforcement that he friended numerous 12-to-14-year-old girls in the Carthage and Webb City area and used Facebook instant messaging to contact the girls.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Jasper County, Mo., Sheriff’s Department and Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on September 12, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
CHARLES CROSBY, a 42-year-old resident of Trenton, New Jersey, appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. He is currently detained. If convicted of these charges, CROSBY faces possible penalties of a mandatory minimum of 20 years to life imprisonment, a $250,000 fine, and 5 years to life supervised release for the child exploitation count; and possible penalties of a mandatory minimum of 15 to 30 years imprisonment, a $250,000 fine, and 5 years to life supervised release for the conspiracy to advertise child pornography count. Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Hogsett Announces Arrest, Charging of Eighteen Defendants in Large Identity Theft RingRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the arrest of eighteen defendants for their alleged involvement in a scheme that involved the use of stolen Social Security Numbers (SSNs) surreptitiously marketed as Credit Profile Numbers (CPNs) to fraudulently apply for dozens of car loans.
"This alleged scheme victimized not just dozens of local businesses, but also innocent individuals across the country whose identities were stolen," Hogsett said. "The threat posed by identity theft is real and growing, but the U.S. Attorney's Office and our federal partners have redoubled efforts to combat this dangerous trend."
"Identity theft wreaks havoc on the lives of innocent victims nationwide," said Federal Bureau of Investigation Special Agent in Charge Robert Jones. "It bilks billions of dollars from the U.S. economy, and can cause long and painful credit repair work for the victims affected. This investigation highlights the FBI's commitment to work with our law enforcement partners to continue an aggressive fight against the criminal groups that carry out these schemes."
According to a federal indictment unsealed this afternoon, defendants David Day, age 36, of Indianapolis, and Kimberly Taylor, age 47, of California, were charged with conspiring to commit wire fraud, as well as making false loan and credit applications in an identity theft scheme. Beginning in or around September 2010, Taylor would allegedly obtain SSNs belonging to victims, many of whom were minors, and would market her services as a legitimate way to enhance poor credit through the sale of “Credit Profile Numbers”, “profiles”, or “CPNs” to Day. Day would then sell the SSNs, purported to be “CPNs or profiles” to individuals seeking to inflate their credit scores while applying for credit applications to purchase high dollar vehicles and other property.
It is alleged that in addition to selling these SSNs to individuals, sixteen of whom were also charged today, Day would in many cases provide instructions to the individuals as to how they could present themselves to creditors in a way that would fraudulently establish their creditworthiness to include making fraudulent representations to the Bureau of Motor Vehicles and by supplying “novelty items,” to include fraudulent SSN cards, mortgage documents, and other identifying material. Day allegedly assisted some of his customers by creating fraudulent credit histories for them that would be relied upon by banks during a credit check.
Gerald Adams, age 33
Janine Howard, age 46
DeJuan Alexander, age 41
Joe Snow, age 36
Ashley Fox, age 27
Lashonda Collier, age 36
Joshua Day, age 28
Jeremy Gilbert, age 28
Ryan Thompson, age 45
Ernest Jones, age 39
Marshall Lindsay, age 34
Nashamba Floyd, age 31
Keyona Berry, age 33
Sylvester Ragland, age 36
The indictment lists at least eight local financial institutions that were victimized through this scheme. In addition, six local automotive dealerships were allegedly victimized by defendants who utilized the stolen SSNs to purchase or attempt to purchase vehicles.
According to Assistant U.S. Attorney Cynthia Ridgeway, who is prosecuting the case for the government, if convicted the defendants face up to twenty years in federal prison on the conspiracy count, thirty years in prison for making false statements in loan and credit applications, and five years in prison for using a false SSN. The government has also filed notice that property found to have been gained through the criminal scheme may be forfeited if the defendants are found guilty.
This case is the result of a collaborative investigation involving the Federal Bureau of Investigation, the Social Security Administration OIG, the National Insurance Crime Bureau, the Carmel Police Department, the Lawrence Police Department, as well as the United States Marshals Service.
Informations, indictments, and criminal complaints are only a charge and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Fort Myers Woman Pleads Guilty to Conspiracy to Commit Identity Theft and Theft of Government FundsRead the Press Release
Fort Myers, Florida - Acting United States Attorney A. Lee Bentley, III announces that Ebony Edwards today pleaded guilty to conspiracy to commit aggravated identity theft, to file false claims against the government, and to theft of government money or property. She faces a maximum penalty of 5 years in federal prison.
According to the plea agreement, Edwards was employed with a health care provider and obtained the personal identifying information of at least 11 patients, including names, social security numbers, and dates of birth. Edwards transmitted the information to a conspirator via text messages using her cell phone. The co-conspirator then used that information to file false income tax returns.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.
Former Tulsan to Serve 9 Years for $7 Million Investment Fraud SchemeRead the Press Release
TULSA, Okla. — A former Tulsa-based promoter of fraudulent oil and gas investments was sentenced on Thursday to serve nine years in federal prison for perpetrating a $7 million dollar fraud, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
Jimmy E. Morrisett, 53, of Burnet, Texas, once chief executive officer of now-defunct Red Earth Resources, Inc., and Alpine Petroleum, LLC, pleaded guilty to an unlawful monetary transaction with the funds he obtained from the massive four-year investor fraud scheme victimizing 238 investors in Oklahoma and 37 other states and Canada. Morrisett promoted a Ponzi scheme in which investors supposedly received returns from oil and gas properties. Actually, however, most of the returns came from monies provided by investors themselves. Many of the investors were elderly and lost their life savings.
United States District Court Chief Judge Gregory K. Frizzell imposed the maximum sentence allowed under the United States Sentencing Guidelines and ordered Morrisett to pay restitution to the victims in the amount of $6,874,135.44.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations. Assistant United States Attorneys Kevin C. Leitch and Charles M. McLoughlin prosecuted the case on behalf of the United States.
Former Reserve Deputy Sheriff of Imperial County Sentenced to 30 Months in Prison for Smuggling Illegal Aliens in the Trunk of Her CarRead the Press Release
San Diego – A former reserve Imperial County Sheriff’s Deputy was sentenced today to serve a term of 30 months in prison for smuggling illegal aliens, including a minor, in the trunk of her car as she drove through a Border Patrol checkpoint wearing her uniform and department-issued firearm.
While serving as a reserve Deputy Sheriff of Imperial County, Elizabeth Hernandez and her co-defendant, Edna Yanie Calderon, were arrested on April 17, 2013 for transporting illegal aliens. On June 25, 2013, Hernandez and Calderon pled guilty to transporting illegal aliens, and consented to the forfeiture of proceeds and assets associated with their crimes.
According to her plea agreement, Hernandez abused her position of public trust by using her Imperial County Sheriff Department’s uniform and loaded firearm to facilitate the transportation of illegal aliens through the Highway 86 checkpoint operated by Border Patrol. From at least October 2012 through April 17, 2013, Hernandez earned at least $90,000 from transporting illegal aliens in the United States, the court records said.
In addition, Hernandez admitted that she used proceeds from alien smuggling to purchase several vehicles, including a 2013 Dodge Charger, a 2012 Polaris off-road recreational vehicle, and a 2008 GMC Sierra pickup truck. In addition, Hernandez consented to the forfeiture of approximately $20,000 in cash that was found on her at the time of arrest and at her residence following a search warrant, which were proceeds from her alien smuggling.
U.S. District Court Judge Janis L. Sammartino found that Hernandez’s use of her uniform and firearm made her conduct more egregious and distinguished her from Calderon. Judge Sammartino agreed that Hernandez’s abuse of her position of public trust provided the smuggling organization with a “guaranteed method” to transport illegal aliens through the Border Patrol checkpoint. In addition to imposing a 30-month prison sentence, Judge Sammartino ordered forfeiture of several vehicles and $20,000 in proceeds from alien smuggling. Following her prison sentence, Judge Sammartino placed Hernandez on three years of supervised release.
Hernandez was ordered to self-surrender to her designated prison facility by no later than November 5, 2013 at 12:00 p.m. A status hearing regarding Hernandez’s self-surrender is scheduled for November 8, 2013 at 9:00 a.m, before Judge Sammartino. Hernandez’s co-defendant, Calderon, is scheduled to be sentenced by Judge Sammartino on October 4, 2013 at 10:30 a.m.
DEFENDANTS Criminal Case No. 13CR1794-JLS Elizabeth Hernandez
Edna Yanie Calderon SUMMARY OF CHARGESTitle 8, United States Code, Section 1324(a)(1)(A)(ii) B Transportation of Illegal Aliens
AGENCY
Maximum Penalties: 10 years of imprisonment and $250,000 fineUnited States Border Patrol-El Centro Sector
Former Navy Reservist Sentenced to 25 Years in Prison for Sexual Exploitation of Multiple Minors to Produce Child PornographyRead the Press Release
Anthony K. Mastrogiovanni, 30, of Crofton, Md., was sentenced today to serve 25 years in prison for sexually exploiting more than 30 male juveniles – ranging from 9 to 16 years of age – in Maryland and Louisiana to produce child pornography.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service’s Washington Division.
Mastrogiovanni was sentenced today by U.S. District Judge J. Frederick Motz in the District of Maryland. In additional to his prison term, Mastrogiovanni was sentenced to serve lifetime supervised release.
On May 29, 2013, Mastrogiovanni pleaded guilty to one count of the sexual exploitation of minors to produce child pornography.According to court documents and proceedings, between 2006 and 2012, Mastrogiovanni, a U.S. Navy reservist, met and befriended his victims through his involvement in civic organizations or his military affiliation. Mastrogiovanni captured sexually explicit video of the victims on cameras hidden in his residences in Louisiana and Maryland.
Mastrogiovanni has been in federal custody since he was arrested by inspectors of the U.S. Postal Inspection Service in Las Vegas on July 19, 2012. A search of his Las Vegas hotel room recovered external hard drives containing over 30,000 images of child pornography, including video of his juvenile victims. That same day, federal agents searched Mastrogiovanni’s apartment in Crofton where they discovered a hidden video camera and video transmitting equipment as well as digital media containing additional child pornography.
As part of his plea agreement, Mastrogiovanni will be required to register as a sex offender in the place where he resides, where he is an employee and where he is a student, under the Sex Offender Registration and Notification Act.
The investigation was conducted by the U.S. Postal Inspection Service, with the assistance of the Air Force Office of Special Investigations, Naval Criminal Investigative Service and FBI’s Maryland Child Exploitation Task Force. The case was prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney P. Michael Cunningham of the District of Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Navy Reservist Sentenced to 25 Years in Prison for the Sexual Exploitation of Minors to Produce Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Anthony K. Mastrogiovanni, 30, of Crofton, MD, today to 25 years in prison, followed by lifetime supervised release, for the sexual exploitation of minors to produce child pornography. Judge Motz also ordered that upon his release from prison, Mastrogiovanni must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to filed court documents and proceedings, between 2006 and 2012, Mastrogiovanni was a U.S. Navy reservist who sexually exploited more than 30 male juveniles, ranging from 9 to 16 years of age, in Maryland and Louisiana in order to produce child pornography. During that time period, Mastrogiovanni met and befriended his victims through his involvement in civic organizations or his military affiliation. Mastrogiovanni captured sexually explicit video of the victims on cameras hidden in his residences in Louisiana and Maryland.
Mastrogiovanni has been in federal custody since he was arrested by Inspectors of the United States Postal Inspection Service in Las Vegas, Nevada, on July 19, 2012. A search of his Las Vegas hotel room recovered external hard drives containing over 30,000 images of child pornography, including video of his juvenile victims. That same day, federal agents searched Mastrogiovanni’s apartment in Crofton, MD, where they discovered a hidden video camera and video transmitting equipment as well as digital media containing additional child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service for its work in the investigation and thanked the Air Force Office of Special Investigations, Naval Criminal Investigative Service, and FBI's Maryland Child Exploitation Taskforce for their assistance. Mr. Rosenstein thanked Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney P. Michael Cunningham, who are prosecuting the case.
Former Marketing Agency Executives and Phoenix-Based Businessman Charged in Manhattan Federal Court for Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Kathryn Keneally, the Assistant Attorney General for the Tax Division of the Department of Justice, and Richard Weber, the Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the filing of federal criminal charges against MICHAEL J. MITROW and MATTHEW J. MITROW, former executives of a New Jersey-based marketing agency, and ROBERT T. MADISON, a Phoenix-based businessman, for their roles in a kickback scheme in which MICHAEL and MATTHEW MITROW received more than $1 million in kickbacks for steering the marketing agency’s business to a company owned by MADISON. MADISON, who was originally charged by complaint in November 2012, is also charged with defrauding the marketing agency by submitting false invoices. MICHAEL MITROW is also charged with a separate scheme to submit false invoices to the marketing agency, as well as tax evasion and obstructing the IRS. MICHAEL and MATTHEW MITROW surrendered to the IRS-CI today. The case is assigned to U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, in exchange for steering business to his company, Robert Madison footed the bill for more than $1 million in personal expenses of Michael and Matthew Mitrow, including private jet travel, home renovation, and even a $19,000 tab at a New York City club. The indictment further charges that to fund the kickbacks, Madison fraudulently billed the marketing agency for more than $7 million in services he never, or barely, provided, and defrauded another company that had legitimately purchased the services. Michael Mitrow also allegedly conducted overlapping, separate schemes in which he defrauded his own marketing agency and failed to report income to the IRS. These defendants allegedly perpetrated fraud at every turn, and with today’s superseding indictment, this Office and our law enforcement partners begin to hold them to account.”
IRS-CI Chief Richard Weber said: “This indictment underscores the importance of holding accountable those who allegedly participate in kickback schemes that subvert the competitive process and hide their illicit proceeds from the IRS. The defendants are high-level executives who allegedly abused their positions of trust to fraudulently obtain more than $1 million in undisclosed kickbacks from a vendor. Together with our partners at the U.S. Attorney’s Office and the Department of Justice Tax Division, we will continue to pursue business executives who abuse and corrupt their positions to steal corporate funds and conceal their corrupt income from the IRS.”
According to the allegations in the Superseding Indictment filed in Manhattan federal court:
In approximately 1998, MICHAEL MITROW started a marketing agency that provided marketing services to pharmaceutical companies by targeting labor unions and their members with direct mail services that touted the benefits of the pharmaceutical companies’ products. In 2007, MICHAEL MITROW and his partners, including MATTHEW MITROW, sold a controlling interest in the marketing agency to a private equity firm. As part of the sale, MICHAEL MITROW and his brother, MATTHEW MITROW, stayed on at the agency as CEO and Executive Vice President, respectively.
The marketing agency used a Phoenix-based printing and direct-mailing company owned by MADISON for printing and mailing services related to various pharmaceutical marketing campaigns. From February 2007 through January 2009, MICHAEL MITROW, MATTHEW MITROW, and MADISON engaged in a scheme in which MADISON paid more than $1 million in undisclosed kickbacks to MICHAEL and MATTHEW MITROW in exchange for MICHAEL and MATTHEW MITROW steering business from the marketing agency to MADISON’s company. As part of the kickback scheme, MADISON paid more than $1 million in personal expenses of MICHAEL MITROW, including more than $750,000 for private jet travel. MADISON also paid MATTHEW MITROW’s personal expenses, including home renovation expenses, credit card bills, and a $19,000 bill at a New York City club. The defendants also took various steps to conceal the kickbacks from the marketing agency.
MADISON obtained the money used to pay the kickbacks by fraudulently billing the marketing agency for more than $7 million in services that he either failed to perform or substantially underperformed. In doing so, MADISON defrauded a large New York City-based pharmaceutical company out of tens of millions of dollars for services it had purchased from the marketing agency.
MICHAEL MITROW also engaged in another scheme to defraud the marketing agency. Specifically, from approximately June 2008 through May 2009, in order to generate funds to pay for private jet travel for himself and others, MICHAEL MITROW conspired with the owner of a private jet charter business to fraudulently bill the marketing agency for bogus consulting services that were never rendered. On eight separate occasions, he directed the owner of the private jet charter business to submit bogus invoices to the marketing agency, ranging from $66,000 to $85,000, in the name of fake pharmaceutical consultants for purported consulting services. After MICHAEL MITROW personally approved these invoices, the money was funneled through a Florida-based collection agency and then diverted to pay outstanding and ongoing debts arising from his and others’ personal use of private jets.
Finally, in addition to concealing from the IRS the income he derived from the above schemes, MICHAEL MITROW misused his corporate credit card to pay for personal expenses, including airfare, lodging, dining and retail purchases. He concealed the personal nature of these expenses by falsely labeling them as business expenses and billing the expenses to his employer. As a result, MICHAEL MITROW concealed his true income from the IRS, and failed to pay a substantial amount of income taxes in 2008.
MICHAEL MITROW, 46, of Whitehouse Station, New Jersey, is charged with two counts of conspiracy to commit wire fraud, which each carry a maximum sentence of 20 years in prison, one count of tax evasion, which carries a maximum sentence of five years in prison, and one count of obstructing and impeding the IRS, which carries a maximum sentence of three years in prison.
MATTHEW MITROW, 40, of Westfield, New Jersey, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
MADISON, 42, of Henderson, Nevada, is charged with two counts of conspiracy to commit wire fraud, which each carry a maximum sentence of 20 years in prison.
Mr. Bharara praised the work of IRS-CI for its outstanding work in the investigation. He also thanked the U.S. Department of Justice’s Tax Division for their significant assistance in the investigation, and the U.S. Postal Inspection Service.
This case is being handled by the Office’s Complex Frauds Unit. Nanette Davis and Andrew Young, Trial Attorneys with the Tax Division and Special Assistant U.S. Attorneys in the Southern District of New York, are in charge of the prosecution.
The charges contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Mitrow, et al Indictment
Former Griffin Grocery Store Owner Sentenced for Wic FraudRead the Press Release
NEWNAN, Ga. - Herbert Dix has been sentenced in federal district court for defrauding the U.S. Department of Agriculture (USDA) and possessing forged “WIC” vouchers.
“Families most in need rely on government funds for basic subsistence,” United States Attorney Sally Quillian Yates. “This defendant stole from the USDA and tax payers, depriving some of the neediest families of funds meant to help them survive.”“It is unfortunate that people continue to defraud nutritional programs that have been created to provide assistance in times of need. USDA-OIG remains committed to working with DOJ and its law enforcement partners in ensuring that those who steal from nutritional programs, such as the WIC program, and the taxpayers are prosecuted to the fullest extent of the law. People who defraud these programs foolishly think they will never be caught, but USDA is assiduous in investigating program fraud and bringing the perpetrators of such fraud to justice”, stated Karen Citizen-Wilcox, Special Agent-in-Charge.
"The enduring cooperation between the Georgia Department of Public Health (DPH), local law enforcement and the U.S. Attorney’s Office should send a clear signal to those contemplating WIC fraud,” said Brenda Fitzgerald, M.D., DPH’s commissioner, who commended a conviction three years in the making. “We are committed to working together to detect and eliminate fraud, and to preserve precious funds for those who need it most.”
According to United States Attorney Yates, the charges and other information presented in court: Dix owned and operated Spanks Quick Stop, a store front grocery store in Griffin, Ga. Spank’s Quick Stop was authorized by the State of Georgia to redeem Woman, Infant, and Children (WIC) vouchers for specified food items, such as infant formula, milk, and cheese, etc. The Georgia Department of Public Health (DPH) issues WIC vouchers to low income, at risk families, who can use the vouchers to purchase specified food items from authorized grocers. Contrary to federal law and state regulations, Dix and his employees paid cash for the WIC vouchers instead of accepting them as payment for the food items listed on the vouchers.
On 18 separate occasions, an undercover law enforcement officer entered Spank’s Quick Stop, where Dix and his employees illegally redeemed blank WIC vouchers for cash. Dix then filled in an amount on the vouchers significantly greater than what he paid for the vouchers and deposited the vouchers into his bank account. In December 2010, federal, state and local law enforcement officers executed a search warrant at Spank’s and seized over 100 forged blank WIC vouchers. An analysis of Dix’s bank records revealed that between 2010 and 2011 he had defrauded the USDA out of more than $150,000.
Dix, 49, of Riverdale, Ga., has been sentenced to one year and ten months in prison, followed by three years of supervised release, 100 hours of community service, $14,100 restitution, and a special assessment of $10,100. Dix was indicted in July 2012 on 18 counts of WIC fraud and 83 counts of possession of forged securities. In May, he pleaded guilty to the entire indictment.
This case was investigated by Special Agents of the United States Department of Agriculture, Office of Inspector General, Georgia Department of Public Health, Office of Inspector General, and the Griffin Police Department.
Assistant United States Attorney David Leta prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former General Manager Sentenced for Taxi Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – Arthur A. Boulette, 64, of Dunedin, Fl., was sentenced today to 12 months and a day in prison, followed by one year of supervised release, for accepting more than $100,000 in cash bribe payments from taxicab drivers in exchange for giving them priority on a list of prospective drivers to operate a Washington Flyer Taxi cab at Washington Dulles International Airport. Boulette was also ordered to forfeit approximately $106,000 in bribery proceeds to the government.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
Boulette pleaded guilty on June 20, 2013. According to court documents, Boulette was employed by Dulles Taxi Systems, Inc (“DTS”) as the General Manager at its Dulles Airport location within the Eastern District of Virginia. DTS was one of the three contractors that entered into a taxicab concession contract with the Metropolitan Washington Airports Authority (“MWAA”) to perform a taxicab dispatch service at the airport. As the General Manager, Defendant Boulette’s duties and responsibilities included the management and oversight of taxi cabs and drivers who contracted with DTS to operate Washington Flyer taxicabs. Instead of establishing and following a fair selection and hiring process for drivers to operate Washington Flyer taxicabs assigned to DTS, Boulette accepted cash payments ranging from $2,000 to $7,000 from a number of taxicab drivers in exchange for giving them priority of prospective drivers. The total amount of money Boulette received was approximately $106,000.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Jasmine Yoon prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Columbus Urban League Official Pleads Guilty to Fraud and Identity TheftRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO– Ovell Harrison, 55, of Columbus, Ohio pleaded guilty in U.S. District Court to one count of bank fraud and one count of aggravated identity theft in connection with his position as Director of Education Services at the Columbus Urban League between 2004 and 2010.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor – Office of the Inspector General Labor Racketeering and Fraud Investigations, Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General (HUD), and Columbus Police Chief Kim Jacobs announced the pleas entered today before U.S. District Judge Algenon L. Marbley.
According to testimony by an investigator with the Department of Labor, Harrison used his computers at the Columbus Urban League to prepare and submit false invoices to the Urban League. Harrison made it appear that invoices were payment for services contractors had provided to the Urban League. The contractors were unwitting persons Harrison knew personally. The Urban League processed the invoices, generated checks and either left the checks for hand pick-up by Harrison or mailed the checks to a mailbox Harrison rented. Harrison deposited the checks into one of three bank accounts he controlled. Harrison obtained $85,181.25 through the scheme.
“Today’s guilty plea underscores the Office of Inspector General’s commitment to uncover fraud involving Department of Labor grant funds intended to help those in need. The OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate crimes of this nature,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Bank fraud is punishable by up to 30 years in prison. The penalty for aggravated identity theft is a mandatory term of imprisonment of two years, which must be served after any time he serves for the bank fraud.
The court will conduct a pre-sentence investigation before determining the sentence and schedule a date for sentencing.
U.S. Attorney Stewart commended the investigation by Department of Labor, HUD and the Columbus Police, as well as Financial Crimes Chief Brenda S. Shoemaker, who is representing the United States in this case.
Former Bank Branch Manager Pleads Guilty to Bank Fraud, False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former bank branch manager has pleaded guilty in federal court to stealing more than $316,000 from several elderly customers’ accounts and failing to report the embezzled income on her taxes.
Jennifer A. Gunter, 33, of Republic, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, Sept. 12, 2013, to bank fraud and filing a false tax return.
Gunter was the branch manager at the Guaranty Bank at 291 Highway CC in Nixa, Mo., (and earlier at the Guaranty Bank at 1341 W. Battlefield, Springfield, Mo.) from August 2005 until her termination in November 2012. Gunter admitted that, from December 2006 until November 2012, she repeatedly accessed the bank accounts of four elderly bank customers. Gunter fraudulently embezzled a total of $316,598 from those accounts.
Gunter submitted transaction tickets, withdrawal slips, and cashier’s checks on which she forged the names of the account holders in order to withdraw money from the bank accounts. She used the money for personal matters and expenses. Gunter set the customer accounts to “do not mail” status in order to keep the customers from receiving their bank statements and detecting the theft from their bank accounts.
Gunter failed to report this embezzled income on her Form 1040, U.S. Individual Income Tax Return. Gunter did not report the additional income of $45,002 for 2009, $70,481 for 2010, $107,119 for 2011, and $35,000 for 2012. Gunter’s actions resulted in an additional tax due and owing of $7,642 in 2009, $13,305 in 2010, $22,935 in 2011, and $6,258 in 2012. The total tax loss is $50,140.
Under federal statutes Gunter is subject to a sentence of up to 33 years in federal prison without parole, plus a fine up to $1.1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Secret Service, FDIC – Office of Inspector General, IRS-Criminal Investigation and the Christian County, Mo., Sheriff’s Department.
Former Agriculture Commissioner Admits to Misappropriating Department FundsRead the Press Release
FRANKFORT, KY - Former Kentucky Department of Agriculture Commissioner, Richard Dwight Farmer, Jr., admitted in federal court today that he misappropriated public resources during his tenure in office.
Farmer pleaded guilty to two counts of theft from a program receiving federal funds. Farmer entered into an agreement with the U.S. Attorney’s office which, if approved by the Court, will require him to serve a prison sentence of 21 to 27 months. Additionally, Farmer agreed to pay $120,500 in restitution to the Commonwealth of Kentucky. Judge Gregory Van Tatenhove released Farmer on his own recognizance until his sentencing hearing on January 14, 2014.
Farmer admitted that he misappropriated a total of $120,500 by hiring friends who didn’t perform work to justify their salaries, and purchasing a number of items for his personal use with KDA funds.
Specifically, Farmer admitted that in 2008 he used approximately $19,500 in KDA money to buy excessive gifts for a KDA sponsored conference. Farmer purchased rifles, rifle cases, knives, and gift cards, purportedly for use at the conference that he actually appropriated to his own use. Farmer further acknowledged that in both 2008 and 2011 he misappropriated thousands of dollars in labor cost by putting friends on the public payroll, knowing they would perform little or no actual work for the KDA.
“Mr. Farmer admitted today that he engaged in a course of criminal conduct which constitutes an egregious abuse of the public trust,” said United States Attorney Kerry B. Harvey. “The people of Kentucky deserved better from Mr. Farmer. I hope that his acknowledgement of guilt will, in some small way, begin to repair the inevitable damage done when an elected official uses his public office to enrich himself through a criminal scheme. I appreciate the excellent work of the prosecutors and law enforcement officers who did the work necessary to bring this matter to a successful conclusion.”
Farmer was elected to two terms as Commissioner of Agriculture and was responsible for the supervision and administration of the KDA from January 2004 until January 2012.
A federal grand jury indicted Farmer in April of this year.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI, and Jack Conway, Kentucky Attorney General, jointly announced the plea today.
The investigation was conducted by the Kentucky Attorney General’s Office and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Kenneth R. Taylor and Andrew T. Boone, and trial attorney Sean Mulryne with the Public Integrity Section of the United States Department of Justice.
Florida Doctors, Hospitals and Clinics to Pay $3.5 Million <br /> to Settle Allegations of Improper Medicare, Medicaid and TRICARE BillingRead the Press Release
Radiation oncology providers in Pensacola, Fla., will pay $3.5 million to the government and the state of Florida to resolve allegations that they billed Medicare, Medicaid and TRICARE – the health care program for uniformed service members, retirees and their families worldwide – for radiation oncology services that were not eligible for payment, the Justice Department announced today. The defendants include Gulf Region Radiation Oncology Centers Inc. (GRROC), Gulf Region Radiation Oncology MSO LLC, Sacred Heart Health System Inc., West Florida Medical Center Clinic P.A., Emerald Coast Radiation Oncology Center LLC (ECROC), Dr. Gerald Lowrey and Dr. Rod Krentel.
The government alleged that between 2007 and 2011, the defendants regularly billed for radiation oncology services that were not supervised by a physician, as required by Medicare, Medicaid and TRICARE, and that, in fact, these services were often performed while the defendant doctors were on vacation or were working at another radiation oncology clinic. The government also alleged that the defendants billed for other treatment services even when patients’ medical records provided no evidence that the services were rendered. The defendants also allegedly billed twice for the same services and misrepresented the level of a service provided to increase their reimbursement from the federal health care programs.
“It is critical that federal health care beneficiaries receive care that is properly supervised,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “We will continue to pursue companies and individuals that seek to boost their profits at the expense of taxpayers.”
Since December 2007, Sacred Heart Health System Inc. and West Florida Medical Center Clinic P.A. have been the sole shareholders of Gulf Region Radiation Oncology MSO LLC and GRROC. GRROC provides radiation oncology services at two locations in Pensacola, Fla. Sacred Heart was also a shareholder in ECROC, a radiation oncology center located in Destin, Fla., approximately 60 miles from Pensacola. Beginning in December 2007, Lowrey and Krentel, both radiation oncologists, began providing physician services at the GRROC clinics, and in June 2008, they began providing services at ECROC.
“Submitting false claims for medical services raises the cost of health care for all of us as patients and taxpayers,” said Pamela C. Marsh, U.S. Attorney for the Northern District of Florida. “Patients, employees and others who suspect billing fraud on the part of health care providers should not hesitate to report such fraud to federal authorities. Health care providers – both corporations and individuals – must be held accountable when they submit false information.”The allegations resolved by today’s settlement were first raised in a lawsuit filed against the defendants under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. As part of the settlement, the whistleblower, Richard Koch, who previously worked at GRROC, will receive approximately $609,796 from the federal share of the settlement amount.
In addition to the $3.5 million payment, defendants GRROC, Lowrey and Krentel entered into Integrity Agreements with the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) intended to deter wrongful conduct in the future. The agreements require enhanced accountability and monitoring activities to be conducted by both internal and independent external reviewers.
“Patient care supervision is critical for ensuring that Medicare beneficiaries receive needed, top-quality care,” said Christopher B. Dennis, Special Agent in Charge, HHS-OIG, Office of Investigations, Miami Region. “Our increased investigative efforts in the Florida panhandle show that we will protect taxpayer-funded government health programs regardless of where perpetrators might be located.”
Assistant Attorney General Delery thanked the Department of Health and Human Services’ Office of Inspector General; TRICARE Management Activity; the U.S. Attorney’s Office for the Northern District of Florida and the Justice Department’s Civil Division, Commercial Litigation Branch for the collaboration that resulted in the settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.8 billion through False Claims Act cases, with more than $10.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The case is captioned United States ex rel. Koch v. Gulf Region Radiation Oncology Centers Inc., et al., No. 3:12-cv-00504 (N.D. Fla.). The claims settled by this agreement are allegations only, and there has been no determination of liability.Five Rutland Residents Indicted for Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that yesterday five residents of the City of Rutland were arrested during an early morning federal-state-local operation and presented in United States District Court for arraignment on indictments charging violations of the federal Controlled Substances Act. The five defendants and their respective charges are:
• Ernest Murray, 51, Conspiracy to Distribute Heroin, Cocaine, and 28 Grams or more of Crack Cocaine; and Distribution of Crack Cocaine (three counts); • Eric Dixon, 44, Distribution of Crack Cocaine and/or Heroin (four counts); • Terrence Chenault, 30, Distribution of Crack Cocaine and/or Heroin (three counts);
• Andrew Harris, 24, Distribution of Heroin (one count); and
• Morgaine Chuderski, 25, Distribution of Crack Cocaine (two counts).
All five defendants entered pleas of not guilty.
The government moved to detain each of the five pending trial. United States Magistrate Judge John M. Conroy ordered Chenault detained pending trial, and scheduled detention hearings next week with respect to the other four defendants.
United States Attorney Tristram J. Coffin emphasizes that the charges contained in the indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If convicted, Murray faces imprisonment for a term between five and forty years on the conspiracy charge, and all defendants face up to twenty years on each of the distribution charges. Any actual sentences in the event of conviction will be determined pursuant to the advisory federal sentencing guidelines and the federal statutory sentencing factors.
United States Attorney Coffin commended the collaborative investigation led by the Vermont Drug Task Force with assistance from the Rutland City Police Department, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Joseph Perella and Craig Nolan.
Federal Jury Convicts Duluth Man for the Sex Trafficking of A ChildRead the Press Release
MINNEAPOLIS—Late yesterday in federal court, a jury found a 33-year-old Duluth man guilty of the sex trafficking a child for approximately seven months last year. Following a four-day trial, the jury convicted Markeace Arque Canty on one count of conspiracy to commit sex trafficking of a child and one count of sex trafficking of a child. The jury acquitted Canty of one count of receipt of child pornography. Canty, also known as Quake, was indicted on May 7, 2013.
According to the indictment and the evidence presented at trial, from at least July 2012 through January 2013, Canty recruited and transported the female victim, who was under the age of 18 at the time, to engage in commercial sex acts, from which Canty benefitted financially. Canty purchased “escort” advertisements on the website known as backpage.com and transported the female victim to locations in Duluth, Minneapolis, Chicago, and elsewhere to meet advertisement responders at motels, where the victim engaged in sexual acts in exchange for money.
The jury heard evdience that on September 12, 2012, law enforcement in Indiana responded to an advertisement listing a phone number registered to Canty, and arrested the female victim after she agreed to perform sex acts in exchange for money. The advertisement in that instance included a phone number registered to Canty.
Evidence was also presented about results of a search of Canty’s iphone, which included texts that the prosecution argued coordinated times and amounts with respondents to the advertisements, as well as texts that the prosecution argued were between Canty and the victim in which she updated him on her illicit activities.
For his crimes, Canty faces a potential maximum penalty of life in prison on each of the sex trafficking counts, with a mandatory minimum penalty of ten years on the sex trafficking of a child count. United States District Judge Joan N. Ericksen will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Duluth Police Department, with cooperation from the St. Louis County Attorney’s Office, the Fargo and Grand Forks, North Dakota, police departments, the Grand Forks County Sheriff’s Office in North Dakota, the Eau Claire, Wisconsin, police department, and the Porter County Sheriff’s Office in Indiana. It is being prosecuted by Assistant U.S. Attorneys Thomas Calhoun-Lopez and LeeAnn K. Bell.
Anyone who may have information about any human trafficking matter is encouraged to report that information to the FBI at 763-569-8000. For information about human trafficking, the National Human Trafficking Resource Center’s toll-free hotline (1-888-373-7888) is available to answer calls from anywhere in the country. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.fbi.gov/about-us/investigate/civilrights/human_trafficking.Federal Jury Convicts Amarillo Anesthesiologist on Tax Evasion ChargesRead the Press Release
Dr. Edgar A. Lockett, Jr. Formerly Resided and Practiced in Mineral Wells and McAllen, Texas
AMARILLO, Texas — After a four-day trial, before U.S. District Judge Mary Lou Robinson, a federal jury in Amarillo, Texas, has convicted Edgar A Lockett, Jr., on all six counts of an indictment charging tax evasion. Lockett faces a maximum statutory sentence of five years in federal prison and a $250,000 fine for each of the counts of conviction. He could also be ordered to pay restitution. Judge Robinson remanded Lockett into the custody of the U.S. Marshal. A sentencing date was not set. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The government presented evidence at trial that Lockett is a self-employed anesthesiologist who currently resides in Amarillo; he formerly resided and practiced in other cities in Texas, including Mineral Wells and McAllen. Lockett most recently billed under the name of Medical & Health Alliance Ministries.
According to evidence the government presented, Lockett has not filed income tax returns since 1999, except for a joint return filed with his spouse for tax year 2007. He owes the United States $1,432,740 in unpaid income taxes for tax years 2000 through 2010.
The government presented further evidence that Lockett concealed from the IRS the nature, extent and location of his assets by placing funds and property in the names of nominee companies and secreting his income in bank accounts that he opened using his deceased father’s name and social security number.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorneys Christy Drake and Vicki Lamberson prosecuted.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on September 11, 2013:
Jose Gonzalez, 61, of Milford, Indiana, was charged in a two-count Indictment with one count of possession with intent to distribute a controlled substance and one count of distribution of a controlled substance.These charges were filed as the result of an investigation by the Drug Enforcement Administration.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
Antonio King , 33, of Elkhart, Indiana, was charged in a one-count Indictment with being a felon in possession of a firearm. Charges were filed as a result of an investigation by the Elkhart Police Department, Elkhart County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Vernado Ruben Malone, 41, of Indianapolis, Indiana, was charged in a three-count Indictment with one-count of mail fraud, one-count of wire fraud, and one-count aggravated identity theft.Charges were filed as a result of an investigation by the Federal Bureau of Investigation, St. Joseph County Police, and Niles Police. This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Ryan Dean Smith , 27, of Peru, Indiana, was charged in a one-count Indictment with being a felon in possession of a firearm. Charges were filed as a result of an investigation by the Wabash City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Quintien Walker, 22, of South Bend, Indiana, was charged in a one-count Indictment with providing false statements during the acquisition of a firearm. Charges were filed as a result of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Ervin Salgado Osorio Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 11, 2013, before U.S. District Judge Sam E. Haddon, ERVIN SALGADO OSORIO, a 32-year-old resident of Toppenish, Washington, was sentenced to a term of:
- Prison: 180 months
- Special Assessment: $200
- Supervised Release: 4 years
OSORIO was sentenced after a federal district court trial in which he was found guilty of conspiracy to distribute methamphetamine and distribution of methamphetamine. Assistant U.S. Attorney Paulette L. Stewart prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that OSORIO will likely serve all of the time imposed by the court. In the federal system, OSORIO does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Missouri River Drug Task Force, the Federal Bureau of Investigation, the Montana Division of Criminal Investigation, the Helena Police Department, the Lewis & Clark Sheriff's Office, and the Drug Enforcement Administration.
East St. Louis Trucking Company Owner ConvictedRead the Press Release
Jury Finds that He Made False Statements on Payroll Certifications
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that after four days of trial in East St. Louis, Illinois, a federal jury returned guilty verdicts on each of ten felony counts charging the making of a false statement against William Patrick “Pat” Clark, 40, of Worden, IL. Clark is the owner, operator, and president of Clark Trucking and Excavation, LLC, which was located at 912 Market Street in East St. Louis, Illinois. Clark faces up to five years in prison on each of the ten false statement counts, a fine of up to $250,000 on each, and a total of 3 years of supervised release after imprisonment. Clark will be sentenced on January 24, 2014.
Evidence at trial showed that Clark unlawfully profited from a scheme where he submitted false paperwork claiming to have paid required prevailing wages to his employees on the federally-funded I-64 Highway project. Clark cheated his employees by paying only about $15 per hour, rather than the required $35.45 per hour (without approved fringe benefits) for truck drivers on the project. Nine of his drivers testified at trial. Clark also signed a sworn affidavit falsely claiming satisfaction of labor laws pertaining to the payment of wages to workers in connection with the I-64 project. Clark Trucking had collected about $1.6 million for its hauling work.
The charges in this case followed a lengthy investigation by the U.S. Department of Labor, Office of Inspector General-Office of LaborRacketeering and Fraud Investigation.
Trial in this matter was handled by Assistant United States Attorney Michael J. Quinley and Special Assistant United States Attorney Stuart Zander.
Eagle Butte Woman Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Involuntary Manslaughter.
Debra Charging Cloud, age 28, was indicted on May 15, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on September 12, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges arose from an alleged incident in April 2013 when Charging Cloud, while under the influence of alcohol, lost control of the vehicle she was driving on a gravel road near Eagle Butte and rolled it, resulting in the death of her passenger.
The charge is merely an accusation and Charging Cloud is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Charging Cloud was remanded to the custody of the U.S. Marshals Service. A trial date has been set for November 5, 2013.
Eagle Butte Man Pleads Guilty to Third Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that Brian One Feather, age 31, of Eagle Butte, South Dakota, appeared before U.S. District Judge Roberto A. Lange on September 12, 2013, and pled guilty to the Indictment that charged him with Third Degree Burglary.
The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund.
The conviction is the result of a June 2012 break-in at the Howard V. Johnson Cultural Heritage Center in Eagle Butte. One Feather and a co-defendant broke into several buildings and took approximately $37,420 worth of personal property belonging to the Cultural Heritage Center.
The investigation was conducted by the Cheyenne River Sioux Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.A presentence investigation was ordered, and a sentencing date was set for November 26, 2013.
One Feather was remanded to the custody of the U.S. Marshals Service pending sentencing.
Doctor's Office Manager Sentenced for Health Care Fraud, Identity TheftRead the Press Release
NORFOLK, Va. – Catherine Nell Williams, 53, formerly of Virginia Beach, Va., was sentenced today to 65 months in prison, followed by three years of supervised release, for health care fraud and aggravated identity theft. Co-defendant Michael Inman, Sr., 66, of Virginia Beach, Va., was sentenced on September 12, 2013 to 54 months in prison, followed by three years of supervised release, for health care fraud and aggravated identity theft. Both are responsible for more than $308,000 in restitution.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Gerald M. Scheuer, Resident Agent in Charge for the United States Secret Service-Norfolk Office, made the announcement after sentencing by United States District Judge Arenda L. Wright Allen.
Both Williams and Inman previously pled guilty to the health care and aggravated identity theft charges. Williams pleaded guilty on May 14, 2013 and Inman pleaded guilty on May 31, 2013. According to court documents, Williams was the office manager for a small psychological services business owned by one doctor. One of her responsibilities as office manager was to deposit payment checks made out to the doctor from health care insurers. These insurers were companies such as Optima Health, the military’s TriCare, and Aetna. From August 2008 through February 2012, Williams’s stole approximately 596 checks and gave them to her boyfriend, Michael Inman, Sr. Inman represented himself as the doctor and established a fraudulent business account. He would then forge the doctor’s name on the back and cash them at Money Mart, a local check cashing business. The cash was either deposited into Williams’ bank account or otherwise used by the couple. The checks totaled approximately $308,000.
This case was investigated by U.S. Secret Service. Assistant United States Attorney Randy Stoker prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.District Man Sentenced to 20 Years in Prison for Confrontation Ending with Slaying of 22-Year-Old Stepson-Shooting Followed Argument in Family’s Northeast Washington Home-Read the Press Release
WASHINGTON – Ronald Page, 61, of Washington, D.C., was sentenced today to 20 years in prison for second-degree murder while armed and other charges in a confrontation that ended with the slaying of his adult stepson, U.S. Attorney Ronald C. Machen Jr. announced.
Page was found guilty by a jury in June 2013 following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury found him guilty of charges of assault with a dangerous weapon and firearms offenses. He was sentenced by the Honorable Russell F. Canan.
According to the government’s evidence, on Jan. 5, 2011, shortly after 7 p.m., Page was engaged in verbal argument with his 17-year-old son inside their family home in Northeast Washington. The defendant’s two adult stepsons were present during the argument. At one point, Page attempted to pick up a dining room chair and strike his son. However, one of the stepsons, Nicholas Satcher, 22, stopped him from doing so and told Page that he would not permit him to strike his little brother. Page then left the argument.
Rather than let the argument go, Page retrieved a gun. He pointed it at his son and one of his stepsons, Nicholas Satcher, 22. Then he ordered Nicholas Satcher to leave the room. Nicholas Satcher agreed to leave, but his stepfather followed him and fired the gun, fatally wounding him.
In announcing the sentence, U.S. Attorney Machen commended the work of the officers, detectives and others who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Mia Beamon, Kelly Blakeney, Kendra Johnson, Sharon Newman and Marian Russell; Victim/Witness Advocate Marcia Rinker; Information Technology Specialist Leif Hickling, and Criminal Investigator Christopher Brophy. He also expressed appreciation to Assistant U.S. Attorney Charles W. Cobb, who investigated the case and secured the indictment. Finally, he thanked Jeffrey Ragsdale, Chief of the office’s Homicide Section, and Assistant U.S. Attorney Lara Worm, who prosecuted the case.
13-317District Man Sentenced to 19 Years in Prison for 2011 Murder in Southeast Washington-Defendant Repeatedly Shot Victim Outside Birthday Party-Read the Press Release
WASHINGTON – Antonio Jones, 21, of Washington, D.C., was sentenced today to 19 years in prison for killing a man who he encountered at a birthday party in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Jones pled guilty in April 2013 in the Superior Court of the District of Columbia to a charge of second-degree murder while armed. The plea, which called for a sentence of 16 to 19 years of incarceration, was contingent upon the approval of the Honorable Herbert B. Dixon Jr., who accepted it and sentenced the defendant today. Upon completion of his prison term, Jones will be placed on five years of supervised release.
According to the government’s evidence, on the night of Oct. 15, 2011, Jones encountered the victim, Davon Gray, 21, at a birthday party in the 2500 block of High Street SE. During the party, Jones socialized with Mr. Gray. However, outside of Mr. Gray’s presence, Jones stated that he had a problem with him. The two men, and others, remained outside even after people went indoors to sing happy birthday. Then, when Mr. Gray was about to leave, Jones stood a few feet across from him in a small group of people in the sidewalk area.
Jones then fired a semi-automatic pistol at Mr. Gray. Mr. Gray held his hands and forearms up in front of his face, turned and ran. Jones continued shooting at Mr. Gray’s back until he slowed and dropped to the ground. Jones than fled the scene on foot. An autopsy determined that Mr. Gray suffered a total of eight gunshot wounds to the body.
Mr. Gray did not have a weapon and had not threatened, assaulted, or otherwise provided Jones in any manner before the shooting. The government’s investigation showed no animosity on the part of Mr. Gray toward Jones. Jones was arrested on Oct. 21, 2011.
In announcing the sentence, U.S. Attorney Machen commended the work of detectives, officers and crime scene technicians who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Marian Russell and Victim/Witness Advocate Marcia Rinker. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Emily A. Miller, who investigated and prosecuted the matter.
13-315District Man Sentenced to 15 Years in Prison for Fatal Shooting in Northeast Washington-Defendant Shot Victim During Argument in Edgewood Terrace Area -Read the Press Release
WASHINGTON – Decordre Franklin, 25, of Washington, D.C., was sentenced today to 15 years in prison on a charge stemming from a fatal shooting that took place earlier this year in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Franklin pled guilty in June 2013 in the Superior Court of the District of Columbia to voluntary manslaughter while armed in the slaying of Irving Jones. He was sentenced by the Honorable John Ramsey Johnson. Upon completion of his prison term, Franklin will be placed on five years of supervised release.
According to the government’s evidence, in the early morning of March 30, 2013, Franklin was seen in a yard at Edgewood Terrace, within the 600 block of Edgewood Street NE, carrying and playing with a handgun. Afterward, Franklin and Mr. Jones, 33, hung out together with others in the same vicinity. During that time, Mr. Jones and Franklin engaged in a brief physical altercation, which has been described by some witnesses as horseplay. After the altercation ended at approximately 2:10 a.m., Franklin then argued verbally with Mr. Jones.
While yelling at Mr. Jones, Franklin pulled out a handgun and shot him in the chest at close range. He then fled. Mr. Jones collapsed to the ground and died shortly afterward.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives of the Criminal Investigations Division, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim Witness Program Specialist Marcia Rinker and Paralegal Specialist Marian Russell. He also praised the efforts of Assistant U.S. Attorney Shana L. Fulton, who prosecuted the case.
13-316Defendant Pleads Guilty to Conspiracy to File False Federal Tax Returns and Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Edna Yvonne Orr Goff, 37, of Thomaston, Georgia, entered a plea of guilty on September 12, 2013, to conspiracy to file false federal tax returns and aggravated identity theft before the Honorable Marc T. Treadwell, United States District Judge.
The Indictment charges Ms. Goff with the use of stolen taxpayer identity information which she used to secure false tax returns from the federal government. Ms. Goff admitted to illegally filing income tax returns using taxpayers’ personal identifying information, which included their names and Social Security numbers, without their consent in order to secure the false tax returns for her own use.
The illegal scheme resulted in a total loss of over $100,000.00.
On the conspiracy charge, Ms. Goff faces a maximum sentence of up to ten (10) years confinement and a $250,000.00 fine. The identity theft charge carries a statutory penalty of a mandatory two (2) years imprisonment consecutive to the conspiracy charge, as well as a $250,000.00 fine.Sentencing is set for December 3, 2013 at 9:30 a.m. before the Honorable Marc T. Treadwell in Macon, Georgia.
“Filing false tax returns and identity theft causes a rippling effect of loss to all law abiding citizens. Those committing these and other crimes will remain a focus of the Department of Justice,” said United States Attorney Michael Moore.
The case was investigated by the Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Charles L. Calhoun.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Dallas Man Sentenced to 30 Years in Federal Prison on Drug and Firearms ConvictionsRead the Press Release
Defendant Used Home in Residential Area in Dallas to Deal Drugs
DALLAS — Brandon DeShawn Campbell, 32, who was convicted at trial in December 2012 on drug and firearms offenses, was sentenced yesterday afternoon by U.S. District Judge Reed C. O’Connor to 360 months (30 years) in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Campbell was convicted on one count of possession with intent to distribute marijuana, one count of possession with intent to distribute methylenedioxy methamphetamine (MDMA or “ecstasy”) and two counts of possessing a firearm in furtherance of, and used during and in relation to, a drug trafficking crime.
Shortly before that trial, his co-defendant, Tyrone Alan Allen, 33, pleaded guilty to possession with intent to distribute cocaine base (crack cocaine) and possession of a firearm in furtherance of a drug trafficking crime. He was sentenced by Judge O’Connor in June 2013 to 96 months in federal prison.
According to evidence presented at trial and documents filed in the case, Campbell and Allen used a home on Teague Street, in a residential area of Dallas, to deal various drugs, including crack, PCP, marijuana and ecstasy. During the execution of a search warrant at that residence on December 12, 2011, these drugs, along with five firearms, were recovered. Campbell was a regular worker at the house and Allen would front Campbell $500 worth of cocaine and $500 worth of marijuana per week and allow Campbell to sell the drugs from the house to keep the “trap” running at all hours of the night.
The investigation was conducted by the Dallas Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Lisa J. Miller and Taly Haffar prosecuted.
Colorado Woman Charged with Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Craig, Colorado, woman has been indicted by a federal grand jury for Failure to Pay Child Support.
Dawn K. Rolla, age 40, was indicted on October 10, 2012, for failing to pay over $17,901.00 in past due child support. She appeared before U.S. Magistrate Judge John E. Simko on September 11, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is two years' imprisonment and/or a $250,000.00 fine, 1 year of supervised release, 1 additional year upon revocation, a $100.00 assessment fee to the Federal Crime Victim’s Fund, and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Rolla is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Rolla was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Colorado Woman Charged with Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Craig, Colorado, woman has been indicted by a federal grand jury for Failure to Pay Child Support.
Dawn K. Rolla, age 40, was indicted on October 10, 2012, for failing to pay over $17,901.00 in past due child support. She appeared before U.S. Magistrate Judge John E. Simko on September 11, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is two years' imprisonment and/or a $250,000.00 fine, 1 year of supervised release, 1 additional year upon revocation, a $100.00 assessment fee to the Federal Crime Victim’s Fund, and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Rolla is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.Rolla was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Coeur D'Alene Man Sentenced for Child Pornography OffenseRead the Press Release
Admitted Possessing More than 3,500 Images
COEUR D’ALENE – Brian Daniel Rowe, 28, of Coeur d’Alene, Idaho, was sentenced yesterday in United States District Court to 33 months in prison followed by 10 years of supervised release for possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Robert H. Whaley also ordered Rowe to pay $1,500 in restitution to the victim. He pleaded guilty to the charge on May 29, 2013.
According to the plea agreement, Rowe admitted that in July 2012, he possessed a computer and a smart phone that contained more than 3,500 sexually explicit images of minors. When interviewed by investigators, Rowe admitted to downloading sexually explicit images of minors for years. Authorities were alerted to Rowe’s illegal behavior earlier in 2012, when they received information that Rowe was making child pornography available to others on an Internet peer-to-peer network. Investigators subsequently executed a search warrant at Rowe’s residence and seized computers and his smart phone.
“Those who victimize children by possessing and distributing images of children being sexually abused will be identified, investigated and prosecuted,” said Olson. “Yesterday’s sentence shows that those who sexually exploit our children will spend significant time in prison. I commend the cooperative federal, state and local law enforcement effort that brought Brian Rowe to justice.”
The case was investigated by the Idaho Attorney General’s Office, Meridian Police Department, Coeur d’Alene Police Department, Nampa Police Department, Kootenai County Prosecutor’s Office, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and United States Secret Service. The agencies are members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Chief Executive Officer of ACI Capital Group Pleads GuiltyRead the Press Release
BROOKLYN, NY – Fredrick Douglas Scott, 29, waived indictment and pleaded guilty earlier today to a two-count information which charged him with engaging in a wire fraud conspiracy to steal over $1 million from investors, and lying to officials from the Securities and Exchange Commission (“SEC”) who were conducting a regulatory examination of ACI Capital Group LLC (“ACI”). Scott was the Chief Executive Officer of ACI, an investment advisor registered with the SEC since July 2011. As set forth in court filings, to implement his scheme, Scott lied to potential investors to induce them to wire funds to one of ACI’s bank accounts, which funds Scott then stole. To date, investigators have identified over $1 million in investor losses caused by Scott. Scott faces up to 20 years’ imprisonment on the fraud charge and five years’ imprisonment on the false statement charge. Scott also faces a fine equal to double the investors’ losses, mandatory restitution of $1,338,770 to the victims, and forfeiture of assets.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“Today, Fredrick Douglas Scott admitted that he used ACI Capital to steal his clients’ investments and fund his own lavish lifestyle. Rather than the historic figure he presented to the media, Scott stands revealed as a common thief, who lied his way into his investors’ pockets and then continued his web of lies when confronted by the SEC. Scott has now been brought to justice for lying, cheating and stealing for his own personal financial gain,” stated United States Attorney Lynch. “We remain committed to protecting the public by rooting out fraud in the investment industry. I would like to thank the Securities and Exchange Commission, Division of Enforcement in New York, for its assistance in this case. I would also like to recognize the hard work and dedication of our partners at the FBI for their swift action and effective work on this important investigation.”
According to documents filed in this case, ACI was founded by Scott in 2009, and purported to be an investment banking and advisory firm with an office located at 477 Madison Avenue, New York, New York. ACI registered as an investment advisor with the SEC in July
2011 and, according to its most recent regulatory filing, claimed to manage $3.7 billion in assets. While Scott touted his bona fides as an investor to potential clients, including distributing the May 2010 issue of Ebony magazine, which described him as “the youngest African American hedge fund founder in history,” in reality, Scott used ACI to execute his fraudulent scheme, causing over a million dollars in losses.In connection with his scheme, Scott worked with intermediaries or finders to locate potential victims. Once potential victims were identified, Scott promised those victims a high rate of return for providing short-term financing to businesses purportedly associated with ACI. Once victims wired money to ACI, Scott stole the funds for his personal use. Bank records show that Scott used client funds to finance his personal lifestyle, purchasing personal items at establishments including Louis Vuitton, the Apple Store, Starbucks, Fair Bail Bonds, True Religion Jeans, Tao Restaurant, the Hampton Inn SoHo, and Dizzy's Coca-Cola Club, among others. Bank records also show that Scott wired stolen client funds directly into his personal checking account.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.The government’s case is being prosecuted by Assistant United States Attorney James P. Loonam.
The Defendant:
FREDRICK DOUGLAS SCOTT
Age: 29Charges Filed in Connection with Disrupted FlightRead the Press Release
Massmio Fiorani, 35, of Italy, was charged by information with a committing the crime of interference with a flight crew, announced United States Attorney Zane David Memeger. According to the information Fiorani interfered with the duties of crew members and attendants on board a U.S. Airways flight from Barcelona to Philadelphia on August 7, 2013.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, and a fine of $250,000. He also may be required to pay full restitution to all victims of his offense.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, the Federal Bureau of Investigation, the Philadelphia Police Department, and the Tinicum Township Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Big Spring Man Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Jacob Ray Albarado, 20, of Big Spring, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 10 years in federal prison and a 15-year term of supervised release, following his guilty plea in June 2013 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Albarado has been in custody since his arrest in March 2013 on a federal indictment alleging possession and production of child pornography and attempted enticement of a child. According to documents filed in the case, after befriending a minor female (Jane Doe), Albarado communicated with her through the use of his cell phone for more than one year. In late 2012, Jane Doe began a dating relationship with Albarado and ran away from her home to his apartment in Big Spring. Albarado and Jane Doe agreed to produce a video depicting the two of them engaged in sexually explicit conduct. Albarado then held Jane Doe’s cell phone and produced a video of her while she engaged in sexually explicit conduct with Albarado.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Beclabito, N.M., Woman Sentenced to Eleven Years in Federal Prison for Second Degree Murder ConvictionRead the Press Release
ALBUQUERQUE – Krisohn Adakai, 21, an enrolled member of the Navajo Nation who resides in Beclabito, N.M., was sentenced yesterday to eleven years in federal prison followed by five years of supervised release for her second degree murder conviction.
Adakai was arrested in July 2012, and charged by criminal complaint with murdering Crystal Tom, a 26-year-old Navajo woman, on July 28, 2012, at Adakai’s home in Beclabito, which is located on the Navajo Reservation. While drinking alcohol together, Adakai and the victim got into a fight during which Adakai repeatedly punched and stabbed the victim, who died as a result of the injuries she sustained. Adakai fell asleep and awoke to find the victim’s unresponsive body. Adakai attempted to conceal her crime by disposing of the body, the alcohol bottles and other evidence of the murder in a remote area on the Navajo Indian Reservation. When confronted by law enforcement authorities on July 30, 2012, Adakai admitted committing the murder and led officers to the victim’s body and other evidence.
On June 13, 2013, Adakai pleaded guilty and admitted that the United States would be able to prove beyond a reasonable doubt that she murdered the victim on July 28, 2013, in San Juan County, within the Navajo Indian Reservation.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Attorney General’s Native American Issues Subcommittee to Meet in OregonRead the Press Release
VAWA 2013 Implementation, Offender Reentry, White Collar Crime, Juvenile Justice
Among Agenda ItemsBOISE — U.S. Attorneys from the Attorney General’s Advisory Council (AGAC) Native American Issues Subcommittee (NAIS) will meet in Hood River, Ore., next week, Sept. 17-19, 2013. On the agenda are, among other items, efforts to strengthen offender reentry efforts in Indian country, to address juvenile justice and the effects of exposure to violence on American Indian and Alaska Native youth, to defend Indian hunting and fishing rights, to clarify jurisdictional issues on the Columbia River, and to support implementation of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013).
On Sept. 18, U.S. Associate Attorney General Tony West and Assistant Attorney General for the Office of Justice Programs Karol Mason will join the U.S. Attorneys for a special joint session with tribal leaders from Oregon, Washington, and Idaho to be held in Celilo Village, Ore.
“While we are mindful of the great progress that is being made by U.S. Attorneys and tribal justice systems across Indian country, I look forward to exploring with the NAIS and tribal leaders ways that we can strengthen our government-to-government relationships even more, work ever closer with tribal nations, and advance our shared goal of building safe, sustainable, and healthy communities,” said Associate Attorney General West.
“The meeting at Hood River and Celilo Village provides an important opportunity for United States Attorneys, Department of Justice officials and federal agencies with Indian country responsibility to consult with Northwest tribal leaders on a wide range of issues critical to public safety in Indian country,” said Wendy J. Olson, U.S. Attorney for Idaho. “I am pleased that the meeting is taking place at a site of great cultural and historical importance to the Columbia River Tribes, including the Nez Perce.”
Thirty U.S. Attorneys from districts with Indian country or one or more federally recognized tribes serve on the NAIS. The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues.
VAWA 2013 was signed into law by President Obama on March 7, 2013. This law contains provisions that significantly improve the safety of native women and allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. Many of these critical provisions were drawn from the U.S. Department of Justice’s July 2011 proposal for legislation to combat violence against native women. The department is exploring with tribal leaders how the department can help support the new law’s implementation. This law generally takes effect on March 7, 2015, but also authorizes a voluntary pilot project to allow certain tribes to begin prosecuting additional cases sooner.
In June 2009, Attorney General Eric Holder launched a department-wide initiative to enhance public safety in Indian country. Significant progress has been made since then, and the U.S. Attorney’s Offices with Indian country jurisdiction have had a major role in this success.
In May 2013, the Justice Department released its first report to Congress, required under the Tribal Law and Order Act, entitled Indian Country Investigations and Prosecutions (ICIP). The ICIP report, based on data compiled from the case management system used by U.S. Attorney’s Offices (USAOs) with Indian country jurisdiction, shows among other things a 54 percent increase in Indian country criminal prosecutions since 2009.
The information contained in the report shows, among other things, the following:
- The Justice Department’s prioritization of Indian country crime has resulted in a notable increase in commitment to overall law enforcement efforts in Indian country. Caseloads have increased overall from 1,091 cases filed in fiscal year (FY) 2009 to 1,138 in FY 2010 to 1,547 in FY 2011 to 1,677 in FY 2012. This represents a 54 percent increase in the Indian country crime caseload.
- The report shows a new era of partnership between the federal government and American Indian tribes, including an unprecedented level of collaboration with tribal law enforcement. The increase in collaboration and communication strengthens the bond of trust between federal and tribal investigators, prosecutors and other personnel in both federal and tribal criminal justice systems. As a result, tribal communities will be safer places to live, work, and raise families.
In the District of Idaho, prosecutions in Indian country have increased over the last four years. In fiscal year 2013, the U.S. Attorney's Office increased its Indian Country cases filed by 22 percent over fiscal year 2012. In addition, the U.S. Attorney's Office has worked closely with tribal law enforcement to provide training to tribal officers throughout Idaho.
Read more about the Justice Department’s efforts to support implementation of VAWA 2013: http://www.justice.gov/tribal/vawa-tribal.html.
Read the entire ICIP report at www.justice.gov/tribal/tloa-report-cy-2011-2012.pdf.
Read about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html.
Attorney General's Native American Issues Subcommittee to Meet in OregonRead the Press Release
VAWA 2013 Implementation, Offender Re-entry, White Collar Crime, Juvenile Justice among Agenda ItemsPORTLAND, Ore. — U.S. Attorneys from the Attorney General’s Advisory Council (AGAC) Native American Issues Subcommittee (NAIS) will meet in Hood River, Oregon, next week, Sept. 17-19, 2013. On the agenda are, among other items, efforts to strengthen offender reentry efforts in Indian country, to address juvenile justice and the effects of exposure to violence on American Indian and Alaska Native youth, to defend Indian hunting and fishing rights, to clarify jurisdictional issues on the Columbia River, and to support implementation of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013).
On Sept. 18, U.S. Associate Attorney General Tony West and Assistant Attorney General for the Office of Justice Programs Karol Mason will join the U.S. Attorneys for a special joint session with tribal leaders from Oregon, Washington, and Idaho to be held in Celilo Village, Oregon.
“While we are mindful of the great progress that is being made by U.S. Attorneys and tribal justice systems across Indian country, I look forward to exploring with the NAIS and tribal leaders ways that we can strengthen our government-to-government relationships even more, work ever closer with tribal nations, and advance our shared goal of building safe, sustainable, and healthy communities,” said Associate Attorney General West.
“This meeting will be a significant and historic event in which leaders from the federal government, who have a trust relationship with Indian nations, will meet with tribal leaders from Oregon, Washington, and Idaho to discuss issues ranging from Public Safety to strengthening tribal sovereignty through implementation of the Tribal Law and Order Act and the Violence Against Women Act”, said Amanda Marshall, U.S. Attorney for the District of Oregon. “It is especially fitting that these important discussions will take place at Celilo Village, once the location of Celilo Falls, where native settlements and trading villages existed there in various configurations for 15,000 years. This is a unique and meaningful opportunity for federal officials and Northwest Tribal Leaders to engage with each other on a number of critical topics.”
Thirty U.S. Attorneys from districts with Indian country or one or more federally recognized tribes serve on the NAIS. The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues.
VAWA 2013 was signed into law by President Obama on March 7, 2013. This law contains provisions that significantly improve the safety of native women and allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. Many of these critical provisions were drawn from the U.S. Department of Justice’s July 2011 proposal for legislation to combat violence against native women. The department is exploring with tribal leaders how the department can help support the new law’s implementation. This law generally takes effect on March 7, 2015, but also authorizes a voluntary pilot project to allow certain tribes to begin prosecuting additional cases sooner.
In June 2009, Attorney General Eric Holder launched a department-wide initiative to enhance public safety in Indian country. Significant progress has been made since then, and the U.S. Attorney’s Offices with Indian country jurisdiction have had a major role in this success.
In May 2013, the Justice Department released its first report to Congress, required under the Tribal Law and Order Act, entitled Indian Country Investigations and Prosecutions (ICIP). The ICIP report, based on data compiled from the case management system used by U.S. Attorney’s Offices (USAOs) with Indian country jurisdiction, shows among other things a 54 percent increase in Indian country criminal prosecutions since 2009.
The information contained in the report shows, among other things, the following:
• The Justice Department’s prioritization of Indian country crime has resulted in a notable increase in commitment to overall law enforcement efforts in Indian country. Caseloads have increased overall from 1,091 cases filed in fiscal year (FY) 2009 to 1,138 in FY 2010 to 1,547 in FY 2011 to 1,677 in FY 2012. This represents a 54 percent increase in the Indian country crime caseload.
• The report shows a new era of partnership between the federal government and American Indian tribes, including an unprecedented level of collaboration with tribal law enforcement. The increase in collaboration and communication strengthens the bond of trust between federal and tribal investigators, prosecutors and other personnel in both federal and tribal criminal justice systems. As a result, tribal communities will be safer places to live, work, and raise families.
The number of Indian Country prosecutions in Oregon has increased significantly in the past two years due to partnerships between tribal and federal law enforcement officers. For example, in Warm Springs, a Multi-Disciplinary Team of social workers, tribal prosecutors, tribal detectives, FBI agents, and federal prosecutors meet monthly to review and evaluate ongoing child abuse investigations. Additionally, a lawyer from the Umatilla Indian Reservation was commissioned last year as a Special Assistant United States Attorney to prosecute federal crimes and help coordinate joint tribal-federal investigations of major crimes. Additionally, U.S. Attorney Amanda Marshall travels annually to consult with leaders from all nine of Oregon’s Tribal Nations to listen to their concerns about public safety in their communities. Ms. Marshall also serves on the Attorney General’s Native American Advisory Committee and chairs the Juvenile Justice in Indian Country Working Group.
Read more about the Justice Department’s efforts to support implementation of VAWA 2013: www.justice.gov/tribal/vawa-tribal.html
Read the entire ICIP report: www.justice.gov/tribal/tloa-report-cy-2011-2012.pdf
ead about the Justice Department’s efforts to increase public safety in Indian country at www.justice.gov/tribal/accomplishments.html
Atlantic City, N.J., Tax Preparer Sentenced to Three Years in Prison for Filing Phony Income Tax Returns and Becoming A U.S. Citizen by FraudRead the Press Release
CAMDEN, N.J. – A tax preparer was sentenced today to 36 months in prison for his role in helping to prepare false income tax returns, illegal use of Social Security numbers and unlawfully obtaining United States’ citizenship, U.S. Attorney Paul J. Fishman announced.
Nicolas Gomez-Rua, 54, of Atlantic City, N.J., and Medellin, Colombia, previously pleaded guilty before U.S. District Judge Noel L. Hillman to three counts of a 45-count indictment. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:On Oct. 16, 2012, Gomez-Rua was charged in an indictment with 29 counts of aiding and assisting the preparation of a false income tax return, 10 counts of illegal use of a Social Security number and two counts of unlawful procurement of citizenship or naturalization. Clara Hernandez-Estrada, Gomez-Rua’s wife, was also charged with unlawful procurement of citizenship or naturalization, false statements in an application for a passport, false claim to U.S. citizenship and aggravated identity theft.
Gomez-Rua was arrested on Nov. 29, 2012, by special agents with U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) at JFK International Airport in New York when he tried to enter the United States from Colombia.
Between 2008 and 2010, Gomez-Rua operated Quick Tax Solution and Rapid Tax Solution in Ventnor City, N.J. He met with clients and obtained information and documents from them, which he used to prepare their U.S. Individual Income Tax Returns (1040 forms). Gomez-Rua admitted that he intentionally included fraudulent items and tax credits, such as false and fraudulent dependents, child tax credits, Earned Income Tax Credit (EITC) claims, fuel tax credits and education credits, in order to obtain larger refunds than those to which his clients were entitled.
Gomez-Rua admitted that he maintained a file of Social Security cards and birth certificates for individuals born in Puerto Rico that was used to add fraudulent dependents on the 1040 forms that were filed with the IRS. Clients paid Gomez-Rua on average $300 to $500 for the use of fraudulent dependents. Gomez-Rua admitted that after preparing the fraudulent returns, he filed the false returns electronically and by U.S. Mail with the IRS.
Gomez-Rua admitted that 729 U.S. individual federal income tax returns containing fraudulent items and credits were prepared by Quick Tax Solution and Rapid Tax Solution on behalf of its clients for tax years 2007 through 2009. Based on the false and fraudulent returns prepared for tax years 2007 through 2009, the United States lost approximately $170,211 in tax revenue.
Gomez-Rua admitted that on March 12, 2009, he filed a 1040 form that he prepared for an individual that contained false deductions, including child and dependent; car expenses; filing status; and exemption amount. According to Gomez-Rua, the dependents were added so that the client would receive a bigger refund; the false return caused a loss of $5,827 to the United States.
Gomez-Rua said he was born in Colombia and in October 1993, he illegally entered the United States. Gomez-Rua said that Clara Hernandez-Estrada, a citizen of Colombia, also illegally entered the United States from Colombia. Sometime after entering the United States, Gomez-Rua settled in Atlantic City.
While in Atlantic City, Gomez-Rua admitted that he purchased the identity of “Wigaberto Santiago,” including his name, date of birth and Social Security number. Santiago was a citizen of the Commonwealth of Puerto Rico. Gomez-Rua then used that identity to work at various locations in Atlantic City.
Gomez-Rua further admitted that he purchased the identity of “Elizabeth Tirado,” including her name, date of birth and Social Security number, for Hernandez-Estrada. Tirado was a citizen of the Commonwealth of Puerto Rico. Gomez-Rua stated that between 1997 and 2008, Hernandez use the Tirado identity to work in Atlantic City.
Gomez-Rua said that on March 30, 1998, he married Hernandez-Estrada under the name of Elizabeth Tirado. He admitted that at various times between 1998 and 2008, he prepared and filed with the IRS income tax returns which included W-2 Forms issued to Hernandez-Estrada under the Tirado identity.
Gomez-Rua admitted that on Feb. 8, 2001, he submitted an application to U.S. Citizenship and Immigration Services for lawful permanent resident status based on his fraudulent marriage to Tirado, a U.S. citizen. On Feb. 13, 2002, U.S. Citizenship and Immigration Services approved his application, granted him permanent resident status in the United States and issued him a green card.
On May 9, 2006, Gomez-Rua submitted an application to U.S. Citizen and Immigration Services seeking to become a citizen of the United States based on his marriage to a U.S. citizen. Gomez-Rua admitted that he signed the application under penalty of perjury and that the application included the following false representations: that he had never used other names; that he had been married to and living with the same U.S. citizen for the last three years, and that his spouse had been a U.S. citizen for the last three years; and that his spouse was Elizabeth Gomez.
On Feb. 23, 2007, Gomez-Rua was interviewed under oath, subject to the penalty of perjury, by an immigration services officer in Mount Laurel, N.J., and repeated the lies in his application. On Feb. 27, 2007, U.S. Citizen and Immigration Services approved Gomez-Rua’s application for citizenship and he was naturalized as a citizen of the United States. Gomez-Rua admitted that had he told the immigration services officer the truth then he would not have been eligible to become a United States citizen.
In addition to the prison term, Judge Hillman sentenced Gomez-Rua to three years of supervised release and ordered him to pay $170,211 in restitution. He also revoked his citizenship.
U.S. Attorney Fishman credited special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and special agents of the U.S. Department of State’s Diplomatic Security Service (DSS), under the direction of Michael Fogarty, Acting Special Agent in Charge of the DSS New York Field Office, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Bruce Edward McDonald, 49, of Mt. Vernon, Alabama, was sentenced in federal court today on charges of conspiracy to possess with intent to distribute crack cocaine, possession of a List I chemical with knowledge it would be used to manufacture a controlled substance, and using, carrying, and possessing a firearm in furtherance of and during and in relation to a drug trafficking felony.
Judge Kristi Dubose imposed a total sentence of 210 months imprisonment, which consisted of 150 months imprisonment on the drug charges, followed by 60 months consecutive imprisonment on the gun charge. Judge Dubose cited the substantial amount of cocaine distributed as a result of McDonald’s activities and his prior criminal history in imposing the sentence. The judge ordered that McDonald serve a supervised release term of 10 years to follow McDonald’s release from imprisonment, and imposed a special mandatory assessment of $300. No fine was imposed.
This case was investigated by the Mobile County Sheriff’s Office, the Alabama Department of Public Safety, the State Line Police Department and the Drug Enforcement Administration. It was prosecuted by Gloria Bedwell in the United States Attorney’s Office in Mobile.
Ankeny Couple Sentenced in Connection with Mortgage FraudRead the Press Release
DES MOINES, IA – United States Attorney Nicholas A. Klinefeldt announced today that an Ankeny couple has been sentenced for their involvement in a mortgage fraud scheme.
On September 13, 2013, United States District Court Chief Judge James E. Gritzner sentenced Jamie Bowers-Danielson, 35, to 41 months of imprisonment for conspiracy to commit bank fraud and bank fraud charges. Bowers-Danielson was also ordered to serve five years of supervised release following her prison term. Chief Judge Gritzner also sentenced Matthew Danielson, 36, to one year and one day of imprisonment for bank fraud. Matthew Danielson will serve five years of supervised release following the completion of his prison term.
In an earlier proceeding, Matthew Danielson admitted he provided false information, including misrepresenting his marital status as single, to a mortgage lender. The purpose of providing the false information was to obtain a mortgage on a home in Ankeny, despite his lack of creditworthiness and to deceive the lender into failing to obtain his wife, Jamie Bowers- Danielson’s, signature on the mortgage. The mortgage was subsequently voided because Bowers-Danielson failed to sign the mortgage documents. Jamie Bowers-Danielson admitted that she submitted false documentation to the loan originator as part of the scheme.
Bowers-Danielson also admitted that she used her loan originator position to enable herself and others to qualify for mortgage loans through fraudulent means. This included submitting false and misleading statements and documents to mortgage lenders and banks for the purpose of obtaining loans for herself and others borrowers for which they should not have qualified.
This case was investigated by the Federal Bureau of Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Alton Man Sentenced for Firearm OffenseRead the Press Release
Jared R. Henry, 35, of Alton, IL, was sentenced in federal district court in East St. Louis, IL, on September 13, 2013, to 65 months in prison, to be followed by three years supervised release, a $100 special assessment, and fined $500, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Facts presented in court revealed that on October 18, 2012, Alton Police officers went to a home in Alton, Illinois, after receiving an anonymous tip about drug activity at the residence. Before arriving at the home, officers were aware of an active warrant for Henry’s arrest. After knocking on the front door, the live-in girlfriend answered, allowing officers to come inside the home. Upon entering, officers observed Henry lying in a bed in a bedroom in direct view of the front door. He was presented the warrant, arrested and removed from the household. Afterwards, consent was given to the officers to search the premises. Five firearms were recovered during the search.
This investigation was conducted the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alton Police Department. Daniel T. Kapsak, Assistant United States Attorney, prosecuted the case.
Agency Village Man Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that an Agency Village, South Dakota, man has been indicted by a federal grand jury for Involuntary Manslaughter.
John Henry Sargeant, age 36, was indicted on September 10, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on September 12, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Sargeant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sisseton-Wahpeton Tribal Police Department, Bureau of Indian Affairs Law Enforcement Services, and the Federal Bureau of Investigation. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Sargeant was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
12 September 2013
“Bad Beard Bandit” Pleads Guilty to Robbing Eight Area BanksRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, OHIO – Kenneth J. Horsley, 54, of Columbus pleaded guilty in U.S. District Court to robbing seven Columbus-area banks and one bank in Beavercreek, Ohio between June 2012 and March 2013. Investigators dubbed Horsley the “Bad Beard Bandit” because in all but one robbery he wore a fake beard.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Sheriff Zach Scott, Columbus Police Chief Kim Jacobs, Worthington Police Chief James R. Mosic, Dublin Police Chief Heinz von Eckartsberg and Beavercreek Police Chief Dennis Evers announced the pleas entered today before U.S. District Judge Edmund A. Sargus, Jr.
Horsley pleaded guilty to five counts of bank robbery, each of which is punishable by up to 20- years in prison, and three counts of armed bank robbery, which carries a maximum penalty of 25 years for each count. Judge Sargus will schedule a sentencing for Horsley.
According to court documents, Horsley entered the banks and demanded that the bank employees give him money. In three of the robberies, he brandished a handgun and threatened to shoot anyone who followed him.
Columbus Police officers arrested Horsley on March 15, 2013. He has been in custody since his arrest.
U.S. Attorney Stewart commended the cooperative investigation by federal and local law enforcement agencies, as well as Assistant U.S. Attorneys David M. DeVillers and Laura M. Fulton who are prosecuting the case.Wyoming County Man Sentenced to Federal Prison ForRead the Press Release
Receipt And Distribution Of Child Pornography And Possession Of A Destructive Device
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wyoming County man was sentenced today by Senior United States District Judge Richard P. Conaboy to serve 60 months in prison on the charges of Receipt and Distribution of Child Pornography and Possession of a Destructive Device.
According to United States Attorney Peter J. Smith, Joseph Keller, age 28, formerly of Tunkhannock, Wyoming County, admitted to using a computer to download and distribute images of child pornography in 2011 and to possessing an unregistered homemade destructive device.
In addition to the prison term, Senior Judge Conaboy also ordered that Keller be supervised by a probation officer for twenty years following his prison sentence.
The investigation was conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, the Wyoming County District Attorney’s Office and the Luzerne County District Attorney’s Office.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
****Woman Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney Christopher A. Crofts announced that on September 9, 2013, twenty-eight year old Cecelia Gayle Shakespeare, an enrolled Northern Arapaho Tribal member, was sentenced by Chief United States District Court Judge Nancy Freudenthal to 24 months imprisonment, two years of supervised release, and was ordered to pay $76,598.17 in restitution and a $100.00 special assessment. Ms. Shakespeare previously pled guilty to the offense of assault resulting in serious bodily injury. This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.