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29 August 2013
Former Armored Truck Driver Pleads Guilty to Stealing from ATMsRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a former armored truck driver pleaded guilty to stealing money from automated teller machines (“ATM”) in numerous locations in Minnesota and North Dakota. Christopher James Diestler, age 31, of Fergus Falls, pleaded guilty to one count of bank larceny. Diestler, who was indicted on July 16, 2013, entered his plea before United States District Chief Judge Michael J. Davis.
In his plea agreement, Diestler admitted that from March 2005 through March 15, 2012, while working as an armored truck driver for a company out of Sauk Rapids, Minnesota, he stole approximately $182,350 from Bremer Bank ATMs in Alexandria, Breckenridge, Detroit Lakes, Fergus Falls, and Morris, Minnesota, and Wahpeton, North Dakota, as well as a Wells Fargo ATM in Alexandria and a U.S. Bank ATM in Fergus Falls.
ATM currency is dispersed from cassettes that are installed into ATM machines. Diestler admittedly took cash from a number of those cassettes. Then, upon returning to an ATM to retrieve a cassette from which he had stolen money, he replaced the missing funds with currency taken from another ATM. By doing this, any audit performed on the cassettes would fail to reveal the prior thefts.For his crime, Diestler faces a potential maximum penalty of ten years in prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minnesota Bureau of Criminal Apprehension, the Otter Tail County Sheriff’s Office, the Fergus Falls Police Department, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.
Fifth Adams Produce Official Charged in Scheme to Defraud U.S. GovernmentRead the Press Release
BIRMINGHAM – A fifth Adams Produce Company official now faces federal charges in a scheme to defraud the federal government, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A federal grand jury today indicted MICHAEL JOHN O'BRIEN, 50, of Navarre, Fla., who was general manager of the Adams Produce distribution center in Pensacola, Fla. O'Brien's duties included determining the prices Adams Produce charged the United States under contracts it had with the government.
The 37-count indictment filed in U.S. District Court charges O'Brien with conspiracy to defraud the U.S. Department of Defense and its Defense Logistics Agency of hundreds of thousands of dollars. The indictment also charges O'Brien with 32 counts of wire fraud or aiding and abetting wire fraud, and with four counts of false claims or aiding and abetting false claims in order to carry out the conspiracy.
Four other Adams Produce officials – Scott David Grinstead, David Andrew Kirkland, Christopher Alan Pfahl and Stanley Joel Butler II – have pleaded guilty to charges in connection with defrauding the government.
Adams Produce was a Birmingham-based company that had been a leading distributor of fresh fruits and vegetables across the Southeast for many years. It was founded more than 100 years ago as a family-owned business. The family sold the company to executives and a private equity firm in 2010. Adams Produce closed abruptly and filed for bankruptcy in 2012.
The Department of Defense, through DLA, contracted with Adams Produce and other distributers to supply fresh fruits and vegetables to military bases, public school systems, junior colleges and universities. Adams Produce had contracts worth millions of dollars with the U.S. government, according to O'Brien's indictment. Under the contracts, the price the government paid Adams depended largely on what Adams had to pay its produce suppliers.
Each week, Adams Produce electronically submitted pricing information to DLA and was required, periodically, to submit purchase orders to DLA proving its costs, according to the indictment.
Adams bought from TLC, one of the largest distributors of fresh produce in the United States, with offices located across the country. Between August 2011 and November 2011, according to the indictment, O'Brien and other Adams employees arranged and conducted transactions with TLC in Marietta, Ga., designed to create purchase orders and invoices that reflected inflated costs to Adams Produce.
According to O'Brien's indictment, he and others continued the conspiracy as follows:
O'Brien communicated instructions, often by e-mail, to other Adams' employees concerning the inflated prices to show on the false purchase orders. Adams' employees and officers used the false purchase orders to support false pricing information the company submitted to DLA for payment. The transactions with TLC to produce false purchase orders and the false information submitted to DLA "were intended to increase Adams Produce's profit margins and inflate the income reported on Adams Produce's financial statements."
The maximum penalty for the conspiracy count is 10 years in prison and a $250,000 fine. The maximum penalty for each wire fraud count is 20 years in prison and a $250,000 fine, and the maximum penalty for each false claim count is five years in prison and a $250,000 fine.
Federal Grand Jury Indicts Blount County Men in Separate Child Pornography CasesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted two Blount County men in separate cases for distributing, receiving and possessing child pornography, which included images of children less than 12 years old, announced U.S. Attorney Joyce White Vance and Alabama Bureau of Investigation Chief Neil Tew.Independent indictments filed in U.S. District Court charge both JAMES HOWARD WILSON, 51, of Blountsville, and JEREMIAH C. KING, 32, of Springville, with using the Internet to distribute child pornography, receiving child pornography on a computer and possessing child pornography on a computer or computer media. King's possession charge involves images of children younger than 12. Wilson's possession and receiving charges involve images of children younger than 12. Wilson is charged with crimes occurring in 2012. King is charged with crimes occurring between March and May this year.
Distribution and receipt of child pornography each carry a minimum prison term of five years and a maximum of 20 years. The charges also carry a maximum $250,000 fine. Possessing and receiving child pornography that includes images of prepubescent children less than 12 years old both carry a maximum penalty of 20 years in prison and a $250,000 fine.
The Alabama Bureau of Investigation and its Internet Crimes Against Children Task Force investigated the cases. The U.S. Attorney's Office for the Northern District of Alabama is prosecuting the cases.
Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.FBI Arrests Suburban Attorney for Allegedly Stealing $2.34 Million in Clients’ Funds from Her Escrow AccountRead the Press Release
CHICAGO ― A suburban attorney whose law license was suspended in May was arrested today on federal fraud charges for allegedly misappropriating approximately $2.34 million from a couple who were her clients. The defendant, KATHLEEN NIEW, was charged with 10 counts of wire fraud in a federal grand jury indictment that was returned on Tuesday and unsealed today following her arrest. FBI agents took Niew into custody without incident at her office in Oak Brook.
Niew, 57, of Burr Ridge, operated Niew Legal Partners, LLC, in Oak Brook. She was scheduled to be arraigned at 3 p.m. today before U.S. Magistrate Judge Young B. Kim in U.S. District Court.
According to the indictment, Victims A and B, a husband and wife who were Niew’s clients, transferred approximately $2.34 million into Niew’s attorney escrow account to be used for closings on commercial real estate transactions. Between January 2010 and December 2012, Niew allegedly used the funds for her own benefit, contrary to the false representations she made to the couple and others.
Without the couple’s knowledge, Niew used their funds to finance the purchases of various mining operations and not to purchase any commercial property for the victims, the charges allege. As part of the fraud scheme, Niew arranged to receive a 20 percent finder’s fee for herself from a mining operation in exchange for providing it approximately $1.5 million in funds that belonged to her clients. She falsely told the couple that their funds were available in her escrow account and were to be used for closings when they were not. She further concealed her fraudulent conversion of funds by telling her clients that the bank had erroneously sent the funds intended for closings to the wrong bank accounts, even though she had not directed any such wire transfer of the clients’ funds to the title companies to purchase real estate, the indictment alleges.
The arrest and charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Sunil Harjani.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or an alternative fine totaling twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Excelsior Coin Dealer Sentenced for Defrauding Customers and Investors Out of over $3.3 MillionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 53-year-old Excelsior coin dealer was sentenced for devising and executing a scheme to defraud customers and investors out of more than $3.3 million. United States District Judge Patrick J. Schiltz sentenced David Laurence Marion to 60 months in prison on one count of conspiracy to commit mail and wire fraud and one count of money laundering. Marion was indicted on November 14, 2012, and pleaded guilty on February 21, 2013.
Marion owned International Rarities Corporation (“IRC”), a business that bought, sold, and traded gold coins and precious metals, among other things. Marion directed his sales staff to “cold call” people from “lead” sheets in an attempt to get them to buy, sell, or trade coins and precious metals.
In his plea agreement, Marion admitted that between December 2010 and August 2011, IRC received over $2 million in coins, precious metals, and money from customers who intended to make purchases or trades. In August 2011, IRC purportedly had over $2 million in unfulfilled customer orders. When customers inquired about the status of their orders, they were ignored by Marion and the IRC sales staff, or they were falsely advised that their orders were being processed or their money, coins, and precious metals could not be returned at that time. In the meantime, Marion used the customers’ money, coins, and precious metals to support his gambling and lavish lifestyle as well as to pay commissions and salaries, fulfill other customer orders, and support his family. Customers lost approximately $1.7 million in money, coins, and precious metals as a result of this scheme.
As president of International Rarities Holdings (“IRH”), Marion also directed his sales staff to sell securities in the form of ownership shares in the company. However, Marion was not registered with the Securities and Exchange Commission (“SEC”) as a broker or dealer at that time, nor was he associated with a registered SEC broker or dealer. In fact, in April 2009, the SEC rejected Marion’s attempt to register the IRH offering as a security, yet, from at least November 2008 through July 2009, Marion and his sales staff raised approximately $1 million from at least 26 investors who believed they were purchasing ownership shares in the company. Marion used approximately $200,000 of those investor funds for his own personal use.
This case was the result of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Karen B. Schommer.
The U.S. Attorney’s Office wants to remind people to protect themselves from securities fraud. For more information, visit http://www.stopfraud.gov/protect-securities.html.Eveleth Woman Indicted for Obtaining $27,851 Social Security Benefits FraudulentlyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 33-year-old Eveleth woman made her initial appearance after being indicted for stealing more than $27,000 in Social Security benefits. On August 13, 2013, Kimberly Joann Wauzynski was charged with one count of theft of public money and one count of supplemental security income (“SSI”) benefits fraud.
The indictment alleges that from September 2008 through May 2012, Wauzynski, also known as Kimberly Joann Denne, stole approximately $27,851.08 from the Social Security Administration (“SSA”). According to the indictment, Wauzynski concealed from the SSA the true nature of her living arrangements in order to continue receiving SSI benefits on behalf of her child. Specifically, the indictment alleges that Wauzynski concealed the fact that the father of her child was living with her and her child and supporting the household. Per law, beneficiaries of SSI payments must report any change in living arrangements or sources of income.
If convicted, Wauzynski faces a potential maximum penalty of ten years in prison on each charge. Any sentence would be determined by a federal district judge. This case is the result of an investigation by the SSA-Office of Inspector General. It is being prosecuted by Assistant United States Attorney John E. Kokkinen.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Eagle Butte Man Sentenced for Possession and Sale of Stolen Firearm and Tampering with A WitnessRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Possession and Sale of a Stolen Firearm and Tampering with a Witness was sentenced on August 26, 2013, by U.S. District Judge Roberto A. Lange.
Jody Albert Hunt, age 35, was sentenced to 24 months of custody on each count to run concurrently, 2 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Hunt was indicted by a federal grand jury on April 12, 2013, and pled guilty to Possession and Sale of a Stolen Firearm and Tampering with a Witness on June 4, 2013.
The convictions were the result of Hunt taking the personal property from a ranch southwest of Cherry Creek. The stolen property included a DPMS AR-15 semi-automatic assault rifle. After taking the rifle, Hunt drove to Rapid City where he sold the rifle to purchase drugs. With the assistance of the Rapid City Police Department, Hunt was located and arrested.While at the Rapid City jail, Hunt called a witness to his burglary and theft and attempted to get that witness to cover up his crimes. Most of the stolen property and the AR-15 assault rifle were recovered.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Rapid City Police Department; and the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Hunt was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.Durham Man Sentenced for Distributing Child PornographyRead the Press Release
Lengthy prison term orderedGREENSBORO, N.C. – A Durham man was sentenced today to 190 months in prison for distribution of child pornography, announced United States Attorney Ripley Rand.
Jack Steven Vanlaar, 56, of Durham, North Carolina, had pleaded guilty to one count of distribution of child pornography, an offense punishable by no less than 5 years and no more than 20 years imprisonment. He was sentenced by United States District Judge Catherine C. Eagles to 190 months imprisonment followed by 15 years supervised release. Judge Eagles also ordered Vanlaar to forfeit two computers used in the offense.
The offense was committed between November 23, 2012, and February 23, 2013, using the peer-to-peer file sharing network GigaTribe. Vanlaar was reported by a social networking site to the National Center for Missing and Exploited Children after an image of suspected child pornography was posted on that website. That information led to an investigation by the United States Postal Inspection Service, who seized and analyzed Vanlaar’s computer equipment after obtaining a federal search warrant.
This case was prosecuted by Assistant United States Attorney Anand P. Ramaswamy and 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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Dupree Man Charged with Aggravated Sexual Abuse of A Child and Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Sexual Contact with a Child.
James “Pard” Pesicka, age 29, was indicted by a federal grand jury on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 23, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; at least 5 years up to life of supervised release; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The defendant is alleged to have sexually abused a child under the age of 12 several times in Dupree from between July 2008 and February 2012. The charge is merely an accusation and Pesicka 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.
Pesicka was released pending trial. A trial date has not been set.Dominican National Sentenced for Drug and Firearm ViolationsRead the Press Release
BOSTON – A Dominican man was sentenced today on drug and weapon related charges.
Alberto Feliz Garcia, 34, was sentenced today by U.S. District Court Judge Mark L. Wolf to 63 months in prison and four years of supervised release. Following the completion of his federal sentence, Garcia will be placed into removal proceedings and deported to the Dominican Republic. In October 2012, Garcia pleaded guilty to being a previously convicted felon in possession of a firearm, being an alien in possession of a firearm, passport fraud, and possession with intent to distribute heroin.
On the morning of Oct. 17, 2011, agents armed with a federal arrest warrant for passport fraud, encountered Garcia at his home where he was arrested in a second floor bedroom. The room was searched and the agents recovered a Fabrique Nacional 5.7 semi automatic pistol loaded with 19 rounds of armor piercing ammunition. The agents noted that the serial numbers on the pistol were obliterated. Later Garcia consented to a search of the home which recovered 517 grams of heroin, 45 grams of crack cocaine, 32 rounds of 9mm ammunition, and $12,040 in United States currency.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Lawrence Police Chief John Romero, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Unit.
Defendant Sentenced After Pleading to Violations of the Racketeer Influenced Corrupt Organization Act, the Federal Gun Control and Controlled Substances ActsRead the Press Release
TOREY RICHARDSON, age 22, was sentenced today before U.S. District Judge Lance M. Africk after pleading guilty to violations of the Racketeer Influenced Corrupt Organization Act and the Federal Gun Control and Controlled Substances Acts.
TOREY RICHARDSON was sentenced to one-hundred thirty- five (135) months imprisonment and five (5) years of supervised release. RICHARDSON pled guilty to Count 1 RICO Conspiracy, Count 2 Conspiracy to Distribute and Possess with Intent to Distribute over 280 grams Cocaine Base and Count 5 Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses.
This case arose out of a joint investigation by FBI, ATF, and the Jefferson Parish Sheriff’s Office. This investigation targeted an area which exhibited a disproportionate amount of violent crimes and narcotics trafficking. During the course of the investigation, specific individuals were identified as the main perpetrators of many of the violent acts and much of the narcotics distribution. Federal and local law enforcement officers interviewed witnesses, confidential informants, as well as state defendants, relative to the targeted individuals. It was revealed that a group of individuals operated in various areas of Harvey Louisiana, specifically the neighborhoods known as Scottsdale and Haydel. This group controlled these areas for their narcotics distribution activities through violence and through threats of violence, to include murder, attempted murder, obstruction and assaults. They were referred to as the Harvey Hustlers and/or Murder Squad.
The “Murder Squad,” or “MS,” was a faction of the Harvey Hustlers composed primarily of individuals residing in the Harvey, Louisiana area of Jefferson Parish, Louisiana. While they primarily operated on the Westbank of Jefferson Parish, members conducted business in other parts of the Eastern District of Louisiana. The “Harvey Hustlers” also referred to as “HH” originated in the Harvey area in the mid-1980s. Members of the organization “hustled” meaning they distributed illegal narcotics. The original goal of the Harvey Hustlers was to make money from sales of illegal narcotics.
Craig Michael Barbee Sentenced to 30 Years in Prison for Felony Firearms ViolationRead the Press Release
Jackson, TN – Craig Michael Barbee, 40, of Dyersburg, TN, was sentenced today to 360 months in federal prison for being a previously convicted felon in possession of a firearm, announced
U.S. Attorney Edward L. Stanton III.
Barbee’s sentence comes as a result of his involvement in a May 2012 robbery at the
Dollar General Store in Friendship, Tennessee, which resulted in the shooting of Friendship
Police Chief Bill Garrett. Barbee was found guilty in state court of attempted second degree murder, especially aggravated robbery, two counts of aggravated assault and a felony firearms charge. He received a 106-year sentence in that case. The federal case arises from the day following the shooting, where Barbee was apprehended and found to be in possession of a firearm. Barbee’s federal sentence is concurrent to his state sentence.
“Today’s sentence of 30 years, without the possibility of parole, hopefully brings some measure of relief to Police Chief Garrett, his family and close friends,” said U.S. Attorney
Stanton. “Any attempt on someone’s life is horrific, but the fact that Mr. Barbee was brazenly attempting to take the life of a law enforcement official underscores the extreme danger he posed to the greater community.”
This case was investigated by the Federal Bureau of Investigation, Crockett County
Sheriff’s Department, Lauderdale Sheriff’s Department, and the Friendship Police Department.
Assistant United States Attorney Victor L. Ivy prosecuted this case on behalf of the United
States.Crack Cocaine Trafficker Sentenced to 25 yearsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Firkon James, a/k/a Roc, a/k/a Maurice Patterson, a/k/a Mark James, a/k/a John Atkins, 38, of New York City, who was convicted of conspiracy to possess with intent to distribute and distribution of 280 grams or more of cocaine base, was sentenced to 25 years in prison, and 10 years supervised release by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that James purchased cocaine in New York City and transported it to an apartment in Winton Village in Rochester. The defendant then processed the cocaine into cocaine base that he weighed, broke down, packaged, and sold in various quantities. After multiple confidential informant purchases of cocaine base from James, the investigation culminated on September 10, 2010 with the execution of multiple federal search warrants. Officers seized over 250 bags of cocaine base packaged for street sale, a stolen 9mm pistol loaded with 9 rounds of live ammunition, 74 rounds of various rounds of ammunition, paraphernalia for the processing, weighing, and packaging of cocaine and cocaine base for sale, a 2005 Nissan 350Z, a 2005 Jeep Cherokee, a 2003 BMW, and a 2003 Chevy Tahoe. As part of his sentence, James was ordered to forfeit the four vehicles, firearm, and the rounds of ammunition seized during the investigation.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, with assistance provided by the Greater Rochester Area Narcotics Enforcement Team (GRANET), under the direction of Lieutenant Gerald Smith, the Monroe County District Attorney’s Office, under the direction of Sandra Doorley, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Scott Heagney.Corpus Christi Man Gets Nine Years for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Michael Anthony Almendarez, 31, has been ordered to federal prison following his conviction of one count of distributing child pornography, United States Attorney Kenneth Magidson announced today. Alemendarez pleaded guilty May 30, 2013.
Today, Senior U.S. District Judge Hayden Head sentenced Almendarez to 108 months in federal prison to be followed by 15 years of supervised release. In handing down the sentence, the court considered defendant’s actions in committing the crime and stated that his use of a cell phone to engage in this behavior was particularly harmful since so many children have cell phones.
Almendarez came to the attention of law enforcement after a concerned citizen reported the receipt of unsolicited images of child pornography on his cell phone. The citizen explained that he had previously loaned his phone to a minor female relative who worked with Almendarez at a local restaurant.
One evening while working at the restaurant, Almendarez borrowed the minor’s phone, not knowing it did not belong to her. Almendarez then sent several pictures of child pornography via text message to the phone. By this time, the phone was once again in the possession of the relative who reported the incident to the police.
On Aug. 3, 2012, a state search warrant was executed at the Corpus residence of Almendarez. A cell phone was obtained from Almendarez and found to contain child pornography. Almendarez admitted to having sent the pornographic images to a person he believed to be the young co-worker.
The FBI investigated the case along with the Corpus Christi Police Department’s Internet Crimes Against Children Task Force with assistance of the Nueces County Sheriff's Office.
This case, prosecuted by Assistant U.S. Attorney Lance Duke, 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."
Convicted Murderer from Texas Pleads Guilty to Being A Felon in Possession of A Firearm in CaddoRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Larry Robert Baker, 50, of Maud, Texas, pleaded guilty before U.S. District Judge Tom Stagg to possessing a firearm after being convicted and serving time for a murder in Texas and other felonies.
According to evidence presented at the guilty plea, the Louisiana Department of Wildlife and Fisheries (LDWF) conducted an operation Jan. 11, 2013 to catch night hunters who were shooting after dark from the roads in north Caddo Parish. That night, LDWF agents observed Baker shooting from a car at a deer decoy agents had set up. He was arrested, and a .22 caliber revolver was found in the car along with a box of .22 caliber ammunition. Upon further investigation, agents found that Baker had been recently released from prison after serving 20 years for a Texas murder conviction, was driving under suspension, and traveling with open containers of alcohol. Baker was found guilty of murder on August 5, 1993 in the 54th District Court of McLennan County, Texas. Baker also has prior burglary and property theft convictions. Baker bought the firearm from an individual who did not know Baker was a convicted felon.
Baker faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. A sentencing date of December 5, 2013 was set.
The Louisiana Department of Wildlife and Fisheries (LDWF) and the ATF conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program started in 2001 designed to reduce violence by aggressively enforcing existing federal firearms laws.Conspirator in $220,000 Armored Car Robbery Exiled to over 9 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced John Bernard Williams, age 48, of Fort Washington, Maryland, today to 112 months in prison followed by five years of supervised release for conspiracy to commit, and committing the armed robbery of an armored vehicle, and possession of a firearm in connection with a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; and Montgomery County State’s Attorney John McCarthy.
“Working with our law enforcement partners to curb violent criminal acts committed with firearms is a high priority of the FBI in Maryland,” said Stephen E. Vogt, Special Agent in Charge of the FBI’s Baltimore Division. “We will continue to work with the Montgomery County and Prince George’s County Police Departments to target and arrest individuals committing these crimes.”
According to Williams’ plea agreement, in June 2012, Williams began planning the robbery of an armored vehicle outside the Navy Federal Credit Union located in the 12000 block of Rockville Pike in Rockville, Maryland. Williams and co-defendant Carmen Camacho recruited co-defendant Kai Holt to assist in the robbery. On June 13, 2012, Williams met Holt and two other co-defendants, Marcus Brooks and Deangelo Williams, and traveled in two vehicles to the Navy Federal Credit Union. After arriving, the conspirators drove around the area planning escape routes, then parked in a parking lot adjacent to the credit union. Williams instructed the co-conspirators to wait there until he had given them the signal that the armored car had arrived at the credit union. At about 11:20 a.m., Williams called Holt and told him to proceed with the robbery. Holt and Brooks walked towards the credit union, where a courier was unloading cash from the back of the van for delivery to the credit union. Holt and Brooks approached the courier and as they did so, Holt drew a semi-automatic pistol from his waistband. The courier abandoned the bag of money on the ground at the back of the van and ran away. Brooks picked up the bag, which contained $220,000, and he and Holt ran back to their vehicles and fled. Williams and his co-conspirators traveled back to Prince George’s County, Maryland, where they divided the proceeds of the robbery.
Carmen Camacho, age 31, of Fort Washington, Kai Holt, age 38, of Waldorf, and Marcus Brooks, age 21, of Lanham, Maryland, have all pleaded guilty to their roles in the robbery and are awaiting sentencing. Deangelo Williams, age 20, of Fort Washington, also pleaded guilty and was sentenced to three years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, ATF, Montgomery County Police Department, Prince George’s County Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Steven E. Swaney and William D. Moomau, who prosecuted the case.
Conax Flordia Corp. Settles Allegations It Provided Improperly Tested Equipment and Non-Conforming <br /> Electronic Parts for Use by the Military and NASARead the Press Release
Conax Florida Corp. and related companies have agreed to resolve allegations under the False Claims Act that the company submitted false claims to the government for improperly tested inertia reels and non-conforming voltage references, the Justice Department announced today. Inertia reels are part of a system designed to secure aircrew members in the event of a crash. On impact, inertia reels lock in place harnesses worn by aircrew members, preventing injury. Voltage references are electronic parts used in water-activated parachute releases. Both devices are used by the U.S. military and NASA.“Our military deserves equipment that is properly built and tested, and meets specifications designed to ensure their safety,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “The Department of Justice will vigorously pursue cases where contractors provide improperly tested or deficient equipment to American military service members.”
“The settlement of the Conax case reflects our commitment to hold defense contractors accountable for delivering exactly what they are paid to deliver,” said Carter Stewart, U.S. Attorney for the Southern District of Ohio. “We will continue to pursue aggressively all allegations of misconduct in the procurement process.”
The government alleged that the inertia reels were not tested in accordance with contractual requirements and that Conax used non-conforming voltage references. The voltage reference is an integral part of the water-activated parachute release, designed to protect unconscious or injured aircrew members who parachute into salt water. These devices are intended to automatically separate parachutes from aircrew members when they are physically unable to do so. If parachutes are not released, they may fill with water and drag aircrew members underwater.
“The Defense Criminal Investigative Service is dedicated to ensuring that the Pentagon’s procurement programs provide safe, high-quality materials to support America's Warfighters, especially when it comes to critical life-saving equipment used by military aircrews,” said John F. Khin, Special Agent in Charge, DCIS-Southeast Field Office.
“This settlement demonstrates that joint investigations with other law enforcement partners are a highly effective resource to combat fraud and preserve the integrity of vital Defense and federal procurement programs,” added Jeff Arsenault, Special Agent in Charge, DCIS-Central Field Office.“This effort underscores the important role fraud detection plays in ensuring the safety of both air and space flight operations. I commend the outstanding investigative efforts of the NASA and DCIS agents and the work of USAO for the Southern District of Ohio and the Commercial Litigation Branch of the Justice Department’s Civil Division in reaching this agreement,” said NASA Inspector General Paul K. Martin.
Under the settlement announced today, Conax has paid $2 million to the government. In addition, Conax has reached an agreement with the Defense Logistics Agency to provide the government with 4,969 new electronic parts for use with parachute releases, which are worth up to $2.4 million.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the government for false claims and obtain a portion of the government’s recovery. The civil lawsuit was filed in the Southern District of Ohio by two former employees of Conax, Mark Hansson and Steven Schummer, who together will receive up to a total of $810,478.
The settlement with Conax was the result of a coordinated effort among the U.S. Attorney’s Office for the Southern District of Ohio, the Commercial Litigation Branch of the Justice Department’s Civil Division, the Defense Criminal Investigative Service and NASA’s Office of the Inspector General. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
The lawsuit is captioned United States ex rel. Mark Hansson and Steven Schummer v. Conax Florida Corporation.Clayton County Police Officer Assigned to U.S. Marshals Service Task Force Arrested on Public Corruption, Drug Trafficking, and Firearm ChargesRead the Press Release
ATLANTA – Dwayne Penn, a Clayton County Police Officer assigned to the U.S. Marshals Service fugitive task force, and Adrian Demetric Austin have been arrested on corruption, drug trafficking, and firearm charges.
“Penn’s abuse of trust is shocking,” said United States Attorney Sally Quillian Yates. “Police officers who manipulate their positions create mistrust with the people they are sworn to protect. As demonstrated by the number of police officer cases charged earlier this year, we are committed to pursuing these cases wherever they arise to restore the public’s trust in honest law enforcement.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “While public corruption matters overall are a priority criminal investigative program within the FBI, any allegation of public corruption involving law enforcement officers takes on a particular sense of urgency. This matter, involving Clayton County Police Officer and U.S. Marshals Task Force Officer Dwayne Penn, was worked with close cooperation and support by the U.S. Drug Enforcement Administration (DEA). While the arrest of Officer Penn is disconcerting, the public should be reminded that the vast majority of those individuals serving within the criminal justice system do so with honor and integrity.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “The vast majority of law enforcement officers serve the public with honor and distinction. Officers like these unfortunately tarnish the badge of the committed men and women of law enforcement. This individual will now have to face the consequences for his deplorable actions. The success of this investigation would have not been possible without the dynamic level of law enforcement cooperation.”
“The Clayton County Police Department remains dedicated and committed to serving and protecting Clayton County residents and businesses, said Clayton County Deputy Police Chief Christopher L. Butler. “We ask that you continue your support of those unfaltering officers.”
According to United States Attorney Yates, the complaint and other information submitted in court: In August 2013, Penn, of the Clayton County Police Department, allegedly conspired with Austin, a suspected Atlanta-based drug dealer, to use Penn’s official position as a police officer to stage a fake traffic stop of a car that he and Austin believed would contain six kilograms of cocaine, conduct a fake arrest of the car’s occupant, seize the cocaine for themselves, and then sell the cocaine, sharing their ill-gotten gains. Fortunately, the person whom Penn and Austin sought to recruit for this corrupt endeavor was cooperating with federal law enforcement and agreed to record his/her meetings with Penn and Austin. In the lead up to the fake arrest and seizure, Penn and Austin met face-to-face with the confidential informant on two separate occasions to plan their operation.
The complaint alleges that the first planning meeting, which was surreptitiously recorded by law enforcement, occurred on August 21, 2013. Penn drove his police car to the meeting. While together, Penn, Austin, and the confidential informant discussed the confidential informant obtaining cocaine from his/her drug source of supply. Penn would then conduct a fake traffic stop and arrest of the confidential informant in front of the source, using Penn’s police vehicle and lights, and seize the cocaine, leading the source to mistakenly believe the drugs had been seized by law enforcement. They would divide up the seized cocaine among themselves according to the plan. As part of the charade, Penn agreed to handcuff the confidential informant, put the drugs in the trunk of his police car, and drive the confidential informant to a second location. Penn reassured the confidential informant that they could cover his/her tracks with the source of supply to deflect suspicion.
Penn, Austin, and the confidential informant met again on August 27, 2013, at a parking lot in Decatur where the drug deal was to occur. The meeting was at Penn’s request so they could further plan the operation. Like the August 21 meeting, the August 27 meeting was surreptitiously recorded by law enforcement. Penn drove his police car to the August 27 meeting as well. The confidential informant entered Penn’s police car, where Austin was already waiting. The three continued their discussion of the staged traffic stop, arrest, and seizure, which they agreed would occur the next day at that same parking lot. Penn worked through the logistics, including where he would park during the cocaine deal; how Penn would conduct the fake traffic stop, arrest, and seizure; and the eventual split of the seized six kilograms of cocaine. Penn drove Austin and the confidential informant around the parking lot, scouting out possible spots for various events the next day. Penn even asked if Austin wanted to ride with him the next day.
As planned, on the morning of August 28, 2013, Penn and Austin arrived at the Decatur parking lot. Penn drove his police car and parked it in view of where the drug deal was to occur. While waiting, Penn ran the tags of a number of vehicles in the area through law enforcement databases. The confidential informant met with the supposed drug dealer (also a law enforcement source) in the parking lot in view of Penn. The confidential informant received a shopping bag containing six kilogram-size bricks of fake cocaine, walked back to his/her vehicle, and placed the bag inside, placing two kilogram bricks in the back seat and leaving the remaining four kilogram bricks in the shopping bag in the front seat.
Shortly after the confidential informant emerged from the vehicle, Penn sped over in his police car with the lights on and blocked the confidential informant from leaving. Penn jumped out of his car with his firearm drawn and pointed it at the confidential informant. Penn was wearing a bulletproof vest, which read “Police,” and a black baseball hat. Penn ordered the confidential informant to get on the ground and to keep his/her “hands behind your back,” which the confidential informant did. Penn holstered his firearm, picked up the confidential informant from the ground, and patted him/her down. Penn then ushered the confidential informant into Penn’s police car. The confidential informant told Penn that s/he had already taken his/her two and that there were four in the bag. Penn then walked over to the confidential informant’s vehicle and removed the shopping bag with the four kilogram bricks from the front seat, leaving the confidential informant’s share (two kilograms) in the car. Penn placed the shopping bag in the trunk of his police car, told the confidential informant to “get out of here,” and drove away with the cocaine-like substance, leaving the confidential informant and the two kilogram bricks behind at the parking lot.
Penn and Austin were arrested shortly afterward in the vicinity of the Decatur parking lot. They are charged in a criminal complaint with drug trafficking and firearm charges; Penn is also charged with public corruption. They made their initial appearance in United States District Court for the Northern District of Georgia before United States Magistrate Judge Alan J. Baverman today.
If convicted, Penn, 38, and Austin, 38, both of Atlanta, Ga., face a maximum sentence of up to life imprisonment for the drug trafficking charges; up to life imprisonment for the firearm charge; and, for Penn, up to 20 years on the public corruption charge; as well as fines of over $10 million dollars.
Members of the public are reminded that the criminal complaint contains only allegations. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and Drug Enforcement Administration.
Assistant United States Attorney Scott Ferber is prosecuting 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.
Chicago Area Man Indicted for Allegedly Obstructing Justice and Soliciting the Murder of an Undercover FBI AgentRead the Press Release
CHICAGO ― A Hillside man was indicted today on federal charges for allegedly soliciting the murder of an undercover FBI agent after the defendant was arrested last September and charged with attempting to detonate a purported bomb outside a bar in downtown Chicago. The defendant, ADEL DAOUD, was charged with one count each of solicitation of murder or attempted murder of a federal agent, murder-for-hire, and obstruction of justice in a three-count indictment returned by a federal grand jury.
Daoud, 19, will be arraigned on today’s charges on a date to be determined in U.S. District Court. He has pleaded not guilty to terrorism-related charges stemming from his arrest on Sept. 14, 2012, when he allegedly attempted to detonate a purported explosive device. His trial on those charges is scheduled for April 7, 2014.
According to today’s indictment, in July 2012, Daoud was introduced to Individual A, an undercover FBI agent posing as a terrorist residing in New York, who would supply Daoud with an explosive device to use in a terrorist attack in Chicago. After he was arrested, Daoud learned that Individual A was an FBI agent. Between Oct. 26 and Nov. 29, 2012, Daoud allegedly solicited another person to use physical force to murder or attempt to murder the undercover agent.
The murder-for-hire count alleges that on Nov. 28, 2012, Daoud caused another person to use a telephone with the intent of committing the murder Individual A in return for payment. The obstruction count alleges that between Oct. 26 and Nov. 29, 2012, Daoud attempted to kill Individual A to prevent the agent from attending and testifying in court.
The indictment was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorneys Barry Jonas and William Ridgway.
The solicitation count carries a maximum penalty of 20 years in prison; murder-for-hire carries a maximum of 10 years; and the obstruction of justice count carries a maximum of 30 years, and each count carries a maximum fine of $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Charlotte Man Sentenced to More Than 24 Years in Prison for Armed Robbery of Auto Parts StoreRead the Press Release
CHARLOTTE, N.C. – A Charlotte man was ordered to serve more than 24 years in prison in connection with the armed robbery of an auto parts store, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. On Wednesday, August 28, 2013, U.S. District Judge Max O. Cogburn, Jr., sentenced Lavonte Lamont Hallman, 25, of Charlotte to 294 months in federal prison, to be followed by 3 years of supervised release.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Tompkins in making today’s announcement.
In March 2012, a criminal indictment charged Hallman with conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; possession of firearm in furtherance of the Hobbs Act Robbery; and possession of a firearm by a felon. In July 2012, a federal jury found Hallman guilty of all charges following a four-day trial. According to trial evidence and court documents, on December 26, 2011, Hallman entered an O’Reilly’s Auto Parts Store located on Old Statesville Road, in Charlotte, with a yellow cloth covering his face and carrying a loaded .25 caliber pistol. Court records indicate that Hallman pointed the firearm at store employees, told them they had ten seconds to empty their cash drawers and proceeded to count down from ten. The employees complied and Hallman obtained a total of $336.00 from two registers. Hallman ran out of the store and hid in the bushes across the street until his getaway driver, Ronald Demetrius Campbell, picked him up in a white Mercury Marquis. Court records show that law enforcement spotted and stopped the getaway vehicle shortly thereafter and Campbell was arrested at the scene of the traffic stop. Hallman fled the Marquis on foot with his pistol in hand, but was apprehended and arrested by law enforcement after a brief footchase.
In June 2012, Campbell, 37, also of Charlotte, pleaded guilty to conspiracy to commit Hobbs Act robbery and was sentenced to 41 months in prison and to three years of supervised release in March 2013.
Hallman had two prior felony convictions for armed robberies of other auto parts stores in the Charlotte area. In issuing the sentence, Judge Cogburn recognized the serial nature of Hallman’s criminal conduct, and emphasized the need for a sentence which would protect the community from this repeated violent behavior.
Hallman has been in local federal custody in the Western District of North Carolina since his arrest in April of 2012. Upon designation of a federal facility he will be transferred into custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
U.S. Attorney Tompkins thanked CMPD and ATF for conducting the investigation and the North Carolina Highway Patrol for their assistance in locating and stopping the getaway vehicle.
The prosecution for the government was handled by Assistant U.S. Attorney George Guise and Special Assistant United States Attorney Erin Comerford of the U.S. Attorney’s Office in Charlotte.
Erin Comerford, a state prosecutor with the Mecklenburg County District Attorney’s Office, was assigned by District Attorney Andrew Murray to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte. Ms. Comerford is duly sworn in both state and federal courts, and prosecutes gang, violent crime and high level drug trafficking cases in federal court. Funded by the Governor’s Crime Commission, the goal of this partnership is to make Mecklenburg County safer through a coordinated enforcement effort.
Cambridge Man Indicted for Making False Statements in the Boston Marathon Bombing Terrorism InvestigationRead the Press Release
BOSTON – A federal grand jury returned an indictment today against a Cambridge man previously charged with making false statements during the Boston Marathon bombing terrorism investigation.
Robel Phillipos, 19, was indicted after having been previously charged via complaint in May with making a series of materially false statements to federal law enforcement officials during a terrorism investigation. Phillipos is charged with two counts of making false statements. The indictment also charges Dias Kadyrbayev, 19, and Azamat Tazhayakov, 19, both of New Bedford with conspiring to obstruct justice and obstructing justice with the intent to impede a terrorism investigation. Kadyrbayev and Tazhayakov are both nationals of Kazakhstan who were temporarily living in the United States pursuant to student visas.
As alleged in the indictment, on April 18, 2013, after the FBI posted photographs of the two men suspected of carrying out the Marathon bombings (who were later identified as Tamerlan Tsarnaev and Dzhokhar Tsarnaev), Kadyrbayev received a text message from Dzhokhar Tsarnaev suggesting that he go to Tsarnaev’s “room and take what’s there.” Kadyrbayev, Tazhayakov, and Phillipos, according to the indictment, went to Tsarnaev’s dormitory room and removed several items, including Tsarnaev’s laptop computer and a backpack containing fireworks, and brought them to Kadyrbayev and Tazhayakov’s apartment in New Bedford. Later that night, Kadyrbayev, with Tazhayakov’s knowledge and agreement, placed Dzhokhar Tsarnaev’s backpack, which contained several items, including fireworks, in a garbage bag and placed it in a dumpster outside their New Bedford apartment.
The indictment further alleges that between April 19 and April 25, 2013, law enforcement officials assigned to the Joint Terrorism Task Force interviewed Phillipos concerning material facts related to the terrorism investigation into the Boston Marathon bombing and one of the suspected bombers, Dzhokhar Tsarnaev. During these interviews, Phillipos concealed the fact that he, Kadyrbayev and Tazhayakov had gone into Dzhokhar Tsarnaev’s dormitory room on the evening of April 18 and removed Dzhokhar Tsarnaev’s backpack from his room. In so doing, he made numerous false and misleading statements to the agents.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation was conducted by the FBI's Boston Division, the Massachusetts State Police, and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies. The University of Massachusetts Dartmouth Department of Public Safety, the City of New Bedford, New Bedford Police Department, Dartmouth Police Department, U.S. Department of Transportation – Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), Essex County Sheriff’s Office, and Internal Revenue Service, Criminal Investigations provided assistance to this investigation.
If convicted, Phillipos faces a maximum penalty of up to eight years in federal prison on each of the two counts. Kadyrbayev and Tazhayakov face a maximum penalty of 20 years in prison on the obstruction of justice count and five years on the conspiracy count. All face up to three years of supervised release and a $250,000 fine for each charge. Kadyrbayev and Tazhayakov also face the possibility of being deported at the conclusion of this prosecution.
The case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit with the assistance of the Counterterrorism Section of the Justice Department’s National Security Division.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Businessman Pleads Guilty to Conspiracy to Conceal Israeli Bank AccountsRead the Press Release
Aaron Cohen of Encino, Calif., pleaded guilty today in the U.S. District Court for the Central District of California to conspiracy to defraud the United States, the Justice Department and Internal Revenue Service-Criminal Investigation (IRS-CI) announced.
According to court documents, Cohen, a U.S. citizen, maintained undeclared bank accounts at two international banks headquartered in Tel Aviv, Israel, identified in court documents as Bank A and Bank B. One of Cohen’s undeclared accounts was maintained at a branch of Bank A located in the Cayman Islands. The accounts were held in the names of nominees in order to keep them secret from the U.S. Government. In or about 2000, Cohen began using the funds in his undeclared account in the Cayman Islands as collateral for back-to-back loans obtained from another branch of Bank A located in Los Angeles. Cohen’s ownership of the funds in the Cayman Islands accounts was not identified in the loan records maintained at the Los Angeles branch, thus concealing the fact that he was borrowing his own money, paying tax-deductible interest on the loans and not reporting the interest income he was earning in the Cayman Islands on his U.S. tax returns.
According to the plea agreement, in or about 2009, Cohen transferred approximately $2 million from his Cayman Islands account at Bank A to a new offshore account at Bank B in Israel. Cohen then used the funds in the new account as collateral to obtain a back-to-back loan from the Los Angeles branch of Bank B. Cohenfailed to report any income from the accounts on his individual income tax returns that were filed with the IRS. For tax years 2006 through 2009, Cohen failed to report interest income of approximately $238,000. The highest balance in the undeclared accounts was approximately $3,450,000.
“Today’s guilty plea is but the latest example that attempting to hide income and assets from the United States in offshore accounts is a bad gamble,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “The Internal Revenue Service will find the hiding places and the Department of Justice will criminally prosecute these tax cheats, who face potential jail time, still owe the taxes due and may lose those hidden assets and more to severe civil penalties."
“Mr. Cohen is yet another taxpayer caught using anonymous offshore accounts to avoid paying his fair share of taxes,” said IRS Criminal Investigation Chief Richard Weber. “Through IRS-CI’s efforts, we are gaining access to more and more information on institutions and individuals involved in offshore tax fraud, and you can expect us to use all of our enforcement tools to fight offshore tax evasion.”
Cohen is the latest in a series of defendants charged in the U.S. District Court for the Central District of California with failing to report income from undeclared accounts in Israel.
On March 29, 2013, Zvi Sperling of Beverly Hills, Calif., pleaded guilty to conspiring to defraud the United States in connection with back-to-back loans obtained in Los Angeles at branches of Bank A and Bank B that were secured by funds in undeclared bank accounts in Israel. For tax years 2005 through 2008, Sperling failed to report income of approximately $381,563. The highest balance in Sperling’s undeclared accounts was approximately $4 million.
On May 21, 2013, Guity Kashfi of Los Angeles, Calif., pleaded guilty to conspiring to defraud the United States in connection with back-to-back loans obtained from branches of Bank A and Bank B in Los Angeles that were secured by funds in undeclared bank accounts in Israel and Luxembourg. For tax years 2005 through 2011, Kashfi failed to report interest income of approximately $221,306. The highest balance in Kashfi’s undeclared accounts was approximately $2.5 million.
U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. Additionally, U.S. citizens and residents must file a Report of Foreign Bank and Financial Reports (FBAR) with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.
Cohen faces a potential maximum prison term of five years and a maximum fine of $250,000. In addition, Cohen has agreed to pay a civil penalty to the IRS in the amount of 50 percent of the high balance of his undeclared accounts for failing to file FBARs.
Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and André Birotte Jr., U.S. Attorney for the Central District of California thanked special agents of IRS-CI, who investigated the case, and Tax Division Senior Litigation Counsel John E. Sullivan and Assistant Chief Elizabeth C. Hadden, who prosecuted these cases, and Assistant U.S. Attorney Sandra A. Brown of the U.S. Attorney’s Office, who assisted with the prosecutions.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Business Owner Pleads Guilty in Employment Tax Fraud and Obstruction CaseRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –John H. Gregory, 57, of Reynoldsburg, Ohio pleaded guilty to one count of failing to account for and pay over employment taxes to the Internal Revenue Service (IRS) and to one count of obstruction of federal investigations. The total tax loss in this case is approximately $1,136,292.34. Gregory faces a maximum of 20 years in prison and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the guilty plea entered before U.S. District Judge Gregory L. Frost.
According to court documents, between July 2007 and October 2010 Teach Tec was a corporation doing business in Columbus, Ohio. Gregory exercised control over all of Teach Tec’s business affairs, including approving payments made by Teach Tec and having control over Teach Tec’s bank accounts. Gregory was responsible for collecting, truthfully accounting for, and paying over Teach Tec’s payroll taxes to the IRS.
Teach Tec withheld payroll taxes from its employees’ paychecks, including federal income taxes and Federal Insurance Contributions Act taxes (FICA), but made only one small payment to the IRS, despite such payments being required on a quarterly basis.
Gregory willfully failed to account for and pay over to the IRS nearly all of the payroll taxes due and owing on behalf of Teach Tec and its employees. Specifically, Gregory failed to pay any of the payroll taxes due and owing to the IRS for the Second Quarter of 2010. Records reflect that for that quarter, Teach Tec owed $17,148.37 in Tax due and owing, however Teach Tec made no payment of taxes for that quarter. As a result of this scheme, the Department of Treasury, Internal Revenue Service, suffered a total tax loss of $1,136,292.34.
In December 2011 Gregory knowingly falsified and made a false entry in the employment records with the intent to impede, obstruct, and influence the investigation and the proper administration of a grand jury investigation.
Gregory provided false documents to the grand jury pursuant to a subpoena request in the investigation of Kevin Hightower. The false documents Gregory provided to the grand jury purported to explain several payments totaling $66,865.00 from Teach Tec to several entities controlled by Kevin Hightower and his associates. The records provided to the Grand Jury fraudulently claimed Teach Tec was paying Hightower and his associated companies for employing Teach Tec clients. In fact, none of the individuals named on the documents produced by Gregory to the Grand Jury were ever employed by Kevin Hightower or his related entities. Gregory in fact falsified these records to conceal the fact that he had assisted Kevin Hightower in withdrawing funds from the Fred D. Hightower Charitable Trust for his own personal use, rather than for charitable purposes.
“Business owners have an inescapable obligation to withhold income taxes for employees and remit those taxes to the IRS,” said Kathy A. Enstrom, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. "The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
This case is being prosecuted by Assistant U.S. Attorney Laura M. Fulton and was investigated by special agents of IRS-Criminal Investigation.
Brother of Former Country Club Hills Police Chief Pleads Guilty to Money Laundering, Obstruction of JusticeRead the Press Release
SPRINGFIELD, Ill. – Ricky McCoy, brother of Regina R. Evans, former police chief for Country Club Hills., Ill., appeared in federal court in Springfield today to enter pleas of guilty to one count each of money laundering and obstruction of justice in the federal investigation of a grant fraud scheme involving his sister. McCoy appeared this afternoon before U.S. District Judge Sue E. Myerscough in Springfield. Sentencing for McCoy is scheduled on Jan. 4, 2014.
McCoy was charged in March 2013, along with his sister, Regina Evans, 50. Regina Evans pled guilty last week, on Aug. 19, 2013, to obstruction of justice, witness tampering and conspiracy to obstruct justice and witness tampering. In addition, Evans pled guilty on June 17, 2013, to charges of fraud related to a $1.25 million state grant awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program that Evans owned with her husband, Ronald W. Evans, Jr. Ronald Evans has also pleaded guilty to the fraud scheme and is scheduled to be sentenced on Dec. 2, 2013. Regina Evans is scheduled to be sentenced in both cases on Oct. 15, 2013.
McCoy, who assisted the Evanses in the management of We Are Our Brother’s Keeper, admitted that he engaged in money laundering related to the grant funds in November 2009. McCoy admitted that he issued a check payable to himself, in the amount of $16,249, on behalf of We Are Our Brother’s Keeper, with the proceeds of the check deposited to an account controlled by the Evanses. Further, McCoy issued two additional checks, totaling $19,888, on behalf of We Are Our Brother’s Keeper, made payable to an associate of the Evanses, and $17,888 of the check proceeds were deposited to a bank account controlled by the Evanses.
McCoy further admitted that he participated with his sister Regina, and others to have a person identified as Individual A create a false story for law enforcement, the grand jury, and as a witness in a court proceeding, to falsely represent that the individual performed actual work under the grant awarded to We Are Our Brother’s Keeper. In fact, Individual A performed no such work and the checks issued to Individual A were merely a means to conceal grant funds converted to cash and returned to the benefit of the Evanses. The false story created for Individual A falsely represented that Individual A worked as a teacher under the grant, and instructed students on “soft skills,” to include manners, how to dress for an interview, how to groom themselves, how to behave in interviews and how to write a resume, when in fact, the story was false and intended to obstruct the investigation of the grant fraud.
At sentencing, the maximum statutory penalty for obstruction of justice and for money laundering is up to 20 years in prison.Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The ongoing investigation is being conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Berlin Man Charged with Marijuana Trafficking, Money Laundering and Tax EvasionRead the Press Release
BOSTON – A Berlin man was charged today with conspiring to distribute more than 1,000 kilograms of marijuana, as well as money laundering and tax evasion.
Eric W. Sliwa, 32, was indicted for conspiracy to possess with intent to distribute and to distribute more than 1,000 kilograms of marijuana, 29 counts of money laundering, filing false tax returns and corruptly endeavoring to impede the administration of the IRS.
The indictment alleges that from 2001 to 2012, Sliwa and others distributed large quantities of marijuana. In June 2006, Sliwa set up a company, EWS Gem Corp., for the purpose of concealing his drug proceeds and making it appear as though he had legitimate income. While Sliwa filed personal tax returns for the tax years 2008 through 2010, he failed to report all of the proceeds from his drug trafficking business. During the time period of the conspiracy, Sliwa purchased several assets including his home in Berlin, Mass., a condominium in Killington, Vt. and multiple vehicles. Sliwa also possessed nearly $500,000 in cash as well as a coin and precious metal collection worth approximately $370,000.
If convicted, Sliwa faces a minimum mandatory sentence of 10 years in prison and a maximum of life, a minimum of five years and up to a lifetime of supervised release, a fine of $500,000 or twice the value of the property involved in the money laundering transactions, and forfeiture of multiple assets including, but not limited to, his home in Berlin, multiple vehicles, nearly $500,000 in cash and his coin/precious metal collection.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Cory Flashner of Ortiz’s Worcester Branch Office.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Beardstown Man to Serve 12 ½ Years in Federal Prison for Methamphetamine Manufacturing ConspiracyRead the Press Release
Springfield, Ill. – Senior U.S. District Judge Richard Mills last week sentenced Clay Lewis, 38, of Beardstown, Ill., to 151 months (12 years, 7 months) in prison for conspiracy to manufacture methamphetamine, to be followed by eight years of supervised release. At the time of the offense, September 2012, Lewis was on probation for a prior state felony drug charge.
Lewis pled guilty on Apr. 23, 2013, to a single count of conspiracy to manufacture 50 grams or more of methamphetamine. In court documents and court hearings, Lewis admitted that on Sept. 14, 2012, when Illinois probation officers administered a drug test at his home, in the 200 block of Clay Street, there was an active meth lab in his garage along with various remnants of prior meth manufacturing activity as well as items commonly used to manufacture meth. Lewis admitted that he had frequently manufactured methamphetamine in his garage for a year, and that he used and sold the meth he cooked.
Lewis was arrested on Sept. 14, 2012, and has remained detained in the custody of the U.S. Marshals Service. Lewis was sentenced on Aug. 22, 2013.
On Sept. 19, 2013, Lewis’s co-defendant, Kyle Hogan, 30, also of the 200 block of Clay Street, Beardstown, Ill., is scheduled to be sentenced. On May 31, 2013, Hogan entered a plea of guilty to conspiracy to manufacture methamphetamine. Hogan has remained in the custody of the U.S. Marshals Service since his arrest, on Sept. 14, 2012.
The investigation was conducted by the Illinois State Police, the Beardstown Police Department, and the Drug Enforcement Administration with assistance from the Illinois Department of Corrections’ Probation Division. The case was prosecuted by Assistant U.S. Attorney Bryan D. Freres in cooperation with the Cass County State’s Attorney’s Office.
Bank Employee Charged in Fraud SchemeRead the Press Release
Horng Dai, a/k/a “James Dai,” 46, of Newtown, PA, was charged today by Indictment1 with seven counts of receipt of commissions or gifts for procuring loans, announced United States Attorney Zane David Memeger.
If convicted on all counts, the defendant faces a maximum possible sentence of 65 years imprisonment, a $2.5 million fine, not more than five years of supervised release and a $325 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Click here to view the indictment
1 An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525B. Todd Jones Sworn in as ATF DirectorRead the Press Release
B. Todd Jones received the ceremonial oath-of-office as Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) administered by Vice President Joe Biden at the White House today at 10:00 a.m. EDT. With his confirmation, Jones becomes the agency’s first permanent director in seven years. Jones takes over the law enforcement agency responsible for enforcing firearms and explosives laws that protect communities from violent criminals and criminal organizations.
“I congratulate Todd on being sworn in as the first-ever Senate-confirmed Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives,” said Attorney General Eric Holder. “I can think of no one better qualified to lead this critical agency, and to reinforce our shared commitment to the highest standards of professionalism and integrity in federal law enforcement. For decades, Todd’s career has been shaped by a remarkable dedication to public service, and a steadfast determination to do that which is just and right. I am confident that he will be a superb ATF Director, and look forward to continuing to work with him to protect the American people from violent crime.”
“Today is a historic day for ATF,” said ATF Director Jones. “The agency is now in line with its sister components and has been given the respect it deserves as a federal law enforcement agency with a permanent director. I want Americans to know, ATF is full of hard-working, devoted public servants who are committed to the mission of professional law enforcement. I will lead with the same enthusiasm and dedication that I see daily from the team tasked with protecting our communities from the most violent criminals.”
Jones has served as the acting ATF director since being appointed to the post on Aug. 31, 2011. While serving as the acting director of ATF, Jones was also the U.S. Attorney for the District of Minnesota, a post he held since Aug. 7, 2009. Jones served as both ATF Acting Director and U.S. Attorney until his confirmation as ATF Director.
ATF’s primary mission is to protect Americans from violent criminals and criminal organizations from the illegal use and trafficking of firearms and the illegal use and storage of explosives. ATF is also responsible for licensing persons engaged in manufacturing, importing, and dealing in firearms and explosives. Additionally, ATF investigates acts of arson and criminal bombings and the illegal diversion of alcohol and tobacco products.
In fiscal year 2012, ATF recommended 17,366 defendants for prosecution resulting in 7,210 convictions. Also in 2012, ATF industry operations investigators conducted 13,100 federal firearms licensee inspections and 5,390 federal explosives licensee inspections.
For more information about ATF and its programs, please visit: www.atf.gov.Attleboro Man Charged with Securities FraudRead the Press Release
BOSTON – Federal charges against an Attleboro man were unsealed today after his arrest this morning on securities fraud charges.
Robert Burton, 36, the Managing Director of Pinnacle Financial Consulting LLC, Pinnacle Strategic Investments LLC, and the Pinnacle Asset and Capital Management Group LLC, was arrested this morning after being charged yesterday for promoting various high-yield investments through Promissory Notes and Offering Memoranda. According to the complaint, Burton represented that he would return the principal invested within approximately 30 days, along with an interest payment equal to 100% of the amount invested. Burton did not make the promised payments and, in some instances, provided investors with checks that ultimately bounced.
The statutory maximum penalties for the securities fraud charges are 20 years in prison, followed by five years of supervised release and a $5 million fine. Burton made an initial court appearance today and will appear for a detention hearing on September 4 at 11:30 a.m.
U.S. Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Massachusetts Attorney General’s Office, which has a civil case pending against Burton, cooperated with the investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters of Ortiz’s Economic Crimes Unit.The details contained in the Complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Army Soldier Pleads Guilty in Kentucky to Bribery Charges for Facilitating Thefts of Fuel in AfghanistanRead the Press Release
U.S. Army Sergeant Kevin Bilal Abdullah pleaded guilty today to bribery charges for his role in the theft of fuel at Forward Operating Base (FOB) Fenty, near Jalalabad, Afghanistan.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Kentucky David J. Hale.
Abdullah, 30, of Fort Campbell, Ky., pleaded guilty before U.S. District Judge Thomas B. Russell in the Western District of Kentucky to one count of conspiracy to commit bribery and one substantive count of bribery.
According to court documents, in approximately May and June 2010, Abdullah was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. As part of this process, documents generally described as “transportation movement requests” (TMRs or mission sheets) were created to authorize the movement of fuel.
According to court documents, Abdullah created fraudulent TMRs that purported to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. After the trucks were filled with fuel, the fraudulent TMRs were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint in order to justify the trucks’ departures from FOB Fenty. In truth, the fuel was simply stolen.
Abdullah pleaded guilty to receiving payments from a representative of the trucking company in exchange for facilitating the theft of approximately 25 truckloads of fuel. According to court documents, the loss to the United States as a result of the theft was in excess of $400,000.
Abdullah’s plea is the third guilty plea arising from this investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Abdullah, pleaded guilty to similar charges. On Oct. 10, 2012, Christopher Weaver also pleaded guilty to fuel theft charges. A fourth individual, Stephanie Charboneau, was indicted April 9, 2013, and is pending trial on fuel theft-related charges.
This case is being prosecuted by Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael A. Bennett of the Western District of Kentucky. This case was investigated by the Special Inspector General for Afghanistan Reconstruction; Department of the Army, Criminal Investigations Division; Defense Criminal Investigative Service; and FBI.
Angel Food Ministries Founder Wesley Joseph Wingo and His Son, Andrew Wingo, Each Sentenced to Seven Years in Federal PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Angel Food Ministries (AFM) Founder Wesley Joseph (Joe) Wingo, his son, Andrew (Andy) Wingo and his wife, AFM Co-Founder Linda Wingo were sentenced today by the Honorable C. Ashley Royal, Chief United States District Judge, for illegal financial activities involving AFM.
AFM, based in Monroe, Walton County, Georgia, was a nonprofit tax exempt 501(c) organization founded in 1994 by Defendants Joe and Linda Wingo. AFM’s primary stated mission was to provide food to the nation’s needy at discounted prices. After receiving almost $7 million in a low-interest community facilities direct loan from the United States Department of Agriculture in 2005, AFM purchased a large distribution center in Monroe, Georgia, and used its considerable purchasing power and its tax-exempt status to gain volume discounts from various food vendors. In the process of growing from a local, to a regional, to a national nonprofit organization, AFM utilized churches from around the country, known as host sites, to coordinate the charitable efforts of thousands of volunteers to distribute food to the needy in over forty states. The fact that AFM was tax exempt, that it was able to purchase in large volume at a discount, and that its distribution network was in large part manned by volunteer labor, resulted in a large amount of annual revenue, an amount well in excess of expenses.
Joe Wingo entered a plea of guilty on February 25, 2013, to one count of conspiracy to commit money laundering. As an AFM Founder, and its former President, Chief Operating Officer, and member of the Board of Directors, Joe Wingo oversaw all of the operations of AFM, which included his involvement in all aspects of the financial operations of AFM. Joe Wingo admitted that he used his position and control over AFM to make several purchases and expenditures for his personal benefit, including a classic car, without the knowledge and approval of the AFM Board of Directors. Mr. Wesley Joseph Wingo also permitted other members of his family to do the same on many occasions, only later to issue “bonuses” to family members in an effort to conceal misapplied AFM funds used to pay for personal expenses.Joe Wingo, age 64, of Good Hope, Georgia, was sentenced today by the Honorable C. Ashley Royal, Chief United States District Judge, in Macon, Georgia to serve 84 months in prison for conspiracy to commit money laundering. As a part of his sentence, he was ordered to forfeit $1,503,285.00 and to pay a $15,000.00 criminal fine.
Andy Wingo also entered a plea of guilty on February 25, 2013, to one count of conspiracy to commit money laundering. During his tenure with AFM, Andy Wingo held various titles including Chief Operating Officer and Head of Procurement. Andy Wingo admitted that while serving in these positions he used various illegal schemes to convert funds that belonged to AFM to his own personal benefit, including purchasing a new home for himself.
Andy Wingo, age 40, of Good Hope, Georgia, was sentenced today by the Honorable C. Ashley Royal, Chief United States District Judge, in Macon, Georgia to serve 84 months in prison for conspiracy to commit money laundering. As a part of his sentence, he was ordered to forfeit $2,400,000.00.
Mrs. Linda Wingo likewise entered a plea of guilty on February 25, 2013, to one count of misprision of a felony (having knowledge of but concealing the commission of a crime). Mrs. Wingo, along with her husband, Joe Wingo, was an AFM Founder. In her plea of guilty, she admitted that she was aware that AFM was generating more money than was needed to meet its overhead as the result of the illegal financial transactions that were being made by her son, Andy Wingo. She admitted to having knowledge that her son was obtaining money illegally from specific vendors doing business with AFM, and using it for personal benefit instead of providing services to the needy. Additionally, she admitted that when a search warrant was executed on AFM during the investigation, she attempted to conceal facts relating to these financial crimes.
Mrs. Linda Wingo, age 64, of Good Hope, Georgia, was sentenced today by the Honorable C. Ashley Royal, Chief United States District Judge, in Macon Georgia to a term of 5 years of probation for misprision of a felony. She was ordered to pay a $25,000.00 criminal fine.
United States Attorney Michael Moore said, “pure and simple, this case is about greed. The Wingos solicited donations of time from kind, goodhearted people in the name of God’s call for us to feed the hungry and help those in need. Then, instead of using that generosity to fill the pantries of the people they claimed to be called to minister to, the Wingos filled their garage with a classic automobile, their hangar with a private plane, and their pockets with cash. When people gave their volunteer labor to Angel Food Ministries because they believed they were supposed to help their fellow man, little did they know that they were supporting the Wingos’ lavish lifestyle. When I think about the people who didn’t get food because Mr. Wingo wanted a new car and a new plane, it is both sad and troubling that these individuals preyed on the goodness of the many God-fearing folks around the country who made donations of their time simply to enrich themselves.”
“The Wingos exploited family, friends and neighbors by perpetrating a scheme that was based on lies,” stated Veronica Hyman-Pillot, Special Agent in Charge, Internal Revenue Service, Criminal Investigation. “IRS-CI is committed to unraveling financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money. The sentences announced today reinforce the commitment by law enforcement and the United States Attorney’s Office that individuals who line their pockets with profits from fraudulent schemes will be held accountable.”
Mark F. Giuliano, Special Agent in Charge, Federal Bureau of Investigation Atlanta Field Office, stated "today's sentencings bring to a close an extensive and complex federal investigation involving, at its core, abuses of charitable activities related tax laws and diversion of funds derived from those charitable activities. In order for these various non-profit based laws to be able to provide benefit and relief to groups and organizations as intended, the FBI, in conjunction with its various law enforcement partners, is duty bound to investigate these types of allegations of criminal conduct within those organizations operating under non-profit status as Angel Food Ministries claimed to be."
The case was investigated by the Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Sharon T. Ratley, Danial E. Bennett, and Graham A. Thorpe.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Alleged Drug Traffickers IndictedRead the Press Release
PHILADELPHIA - A superseding indictment, filed August 21, 2013, was unsealed today charging Joseph Torres, 31, Bertin Sanchez, 29, Euddy Izquierdo, 31, and Frank Felix-Herrera, 49, all of Philadelphia, with membership in a conspiracy to distribute one kilogram or more of heroin, announced United States Attorney Zane David Memeger. All four defendants are charged as members of a conspiracy that allegedly distributed more than 500 kilograms of heroin produced by a Mexico-based heroin distribution organization. The drugs were sold and distributed in Philadelphia between the Spring of 2010 and July 19, 2013. Torres, Sanchez and are further charged with possession with intent to distribute, and aiding and abetting possession with intent to distribute 12 kilos of heroin, which was seized from the organization’s heroin stash house located at 3901 City Line Avenue. Izquierdo is charged with possession to distribute 21 kilos of heroin; and Felix-Herrera is charged with possession with intent to distribute 2 kilos of heroin.
The indictment further charges that defendant Torres coordinated and supervised the transportation and delivery of the from Mexico to Philadelphia where he oversaw distribution of kilogram quantities of heroin by defendant Sanchez. Torres also allegedly collected and supervised the storage, transportation and laundering of drug proceeds for the organization, accounted to the leaders of the organization, and ensured that drug proceeds were laundered transmitted, and transported to the leadership in Mexico using various money laundering techniques. It is further charged that Sanchez received, arranged and supervised the storage and distribution of kilogram to multi-kilogram quantities of heroin distributed by the Mexico-based organization’s Philadelphia distributors. It is alleged that at the time of defendant Sanchez’s arrest on July 19, 2013, Sanchez had recently distributed approximately 39 kilograms of heroin for the organization and was awaiting cash payments from Philadelphia area heroin distributors.
The indictment also alleges that defendant Izquierdo and Felix-Herrera served as distributors for the Mexico-based heroin trafficking organization and was responsible for the distribution of kilogram to multi-kilogram quantities of heroin in the Philadelphia area. At the time of Izquierdo’s arrest, he was found in possession of $105,118.56 representing alleged drug proceeds. The indictment further charges that Izquierdo also coordinated the transfer of heroin from Mexico and Chicago, Illinois to the Philadelphia region, using vehicles with concealed compartments intended for carrying drugs and drug proceeds.
According to the indictment, at the time of Torres’ arrest on July 19, 2013, at an apartment at 7801 Roosevelt Boulevard, agents found $19,319 in alleged drug proceeds, as well as a smashed electronic money counter and a heat sealer used in the packaging of drug proceeds. In addition, Torres was found to be in possession of a black Saturn automobile which contained a hidden, electronically controlled compartment that contained $89,920 in United States currency.
If convicted of all charges, each of the defendants faces a maximum penalty of life in prison with a mandatory minimum term of 10 years, at least five years of supervised release, and a fine of up to $20 million.The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alleged Colombian Drug Kingpin Extradited to the United States to Face Drug ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the extradition of Diego Perez Henao, a/k/a “Diego Rastrojo.” Perez Henao, 42, a Colombian national who has been in custody awaiting extradition since his capture in Venezuela in June 2012, was extradited from Colombia on Wednesday, August 28, 2013. He made his initial appearance in federal court in Miami on Thursday, August 29, 2013.
Perez Henao was indicted by a federal grand jury on February 8, 2011, and is charged with conspiring with others to manufacture and distribute five or more kilograms of cocaine from 1993 until February 2011, knowing that the cocaine would be unlawfully imported into the United States. If convicted, Perez Henao faces a statutory mandatory minimum sentence of ten-years in prison and a potential maximum sentence of life.
On January 30, 2013, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Perez Henao as a Specially Designated Narcotics Trafficker (SDNT). According to OFAC, Perez Henao’s drug trafficking organization was responsible for both supplying and shipping numerous multi-ton loads of cocaine from South America to Central America and Mexico with an eventual destination of the United States. In addition, Perez Henao is identified as one of the primary leaders of one of the largest and most influential narco-trafficking organizations which has filled the power void following the fall of the Norte Valle Cartel and the dissolution of the Autodefensas Unidas de Colombia.
U.S. Attorney Wifredo A. Ferrer stated, “Perez Henao’s extradition not only demonstrates our unwavering commitment to stemming the flow of cocaine into the United States at the source, but also illustrates the strong partnerships we have maintained with our law enforcement counterparts around the world.”
“The collaboration between the United States and the Colombian government has been essential in the arrest and extradition of the notorious Rastrojos leader, Diego Perez-Henao, to the United States,” said DEA Special Agent in Charge Mark R. Trouville. “The DEA will continue to join forces with our foreign law enforcement partners to bring high level narco- traffickers to justice.”
“This is an outstanding example of an international partnership, this time with the Colombian National Police, that disrupted a major drug organization,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “Henao’s drug trafficking enterprise knew no boundaries reinforcing the FBI’s commitment to working with law enforcement agencies around the world.”
The indictment of Perez Henao is the result of Organized Crime Drug Enforcement Task Force (OCDETF) led by the DEA and FBI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commends the outstanding investigative efforts of DEA, FBI and their Colombian law enforcement partners. The case is being prosecuted by Assistant United States Attorney Adam Fels.
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Advance Pay Scheme Defendant Pleads Guilty to Multi-million Dollar Fraud of EntrepreneursRead the Press Release
PHILADELPHIA - Andrew Bogdanoff, 66, of Scottsdale, Arizona, pleaded guilty today to charges stemming from an advance fee scheme that defrauded hundreds of victims searching for commercial financing. The scheme defrauded more than 800 victims out of more than $10 million. Bogdanoff pleaded guilty to conspiracy to commit mail and wire fraud, mail fraud, wire fraud, money laundering, conspiracy to defraud the United States, and filing false tax returns. He faces an advisory sentencing guideline range of at least 121 months to 151 months in prison. A sentencing hearing is scheduled for December 4, 2013.
Charged in the 33-count indictment with Bogdanoff were Matthew McManus, 44, of Glenside, Pennsylvania, Shayne Fowler, 28, of Scottsdale, Arizona, Joel Nathanson, 26, of San Diego, California, Frank Vogel, 48, of Rochester Hills, Michigan, and Aaron Bogdanoff, 25, of Scottsdale, Arizona.
Andrew Bogdanoff was the founder and chairman of Remington Financial Group (later renamed Remington Capital) and ran the company with defendant McManus until 2008 in Arizona and Pennsylvania. After McManus left the company in 2008, defendant Fowler replaced McManus as Bogdanoff’s right-hand man. Defendant Nathanson was one of Remington’s most proficient employees and helped Remington defraud many victims. Defendant Vogel was a Michigan-based broker who referred numerous victims to Remington in exchange for large kickbacks.
Between 2005 and 2011, the defendants fraudulently induced hundreds of people to pay Remington fees in excess of $10,000 a piece, based on false representations that Remington had lenders and/or investors ready to provide financing for the victims’ projects. To facilitate this fraud the defendants issued each victim a “letter of interest,” commonly referred to as an LOI. Almost every LOI Remington issues stated that Remington had a lender or investor interested in financing the victim’s project. Remington issued an LOI to every victim even though no Remington employee had spoken to any funding source and Remington knew that it was unlikely to find funding for the project.
The LOI was written to fraudulently lead victims to believe that Remington was either a lender or had spoken to lenders that had already expressed interest in the customer's project when neither was true. Additionally, the financing terms Remington included in the LOI were unrealistic and were used solely to induce customers to pay Remington's advance fees. In addition to the false representations in the LOI, the defendants and other Remington employees allegedly also told victims the following lies to further induce victims to pay Remington’s fees: a) Remington had five investors or lenders interested in their project; b) Remington was the actual lender for the project; c) Remington funded or “closed” 80 percent of its deals; d) the victim would get funding for the project once the advance fee was paid and/or; e) Remington would provide funding through its funding source Northbridge.
After a customer paid Remington’s fee, McManus and Andrew Bogdanoff instructed Remington employees to find problems with the projects so that Remington could blame its failure to provide financing on the victim. The defendants did this to help protect Remington from civil and criminal complaints.
Some of the defendants used sophisticated means to perpetuate the fraud. For instance, in 2010, defendants Fowler and Andrew Bogdanoff used Remington’s website to advertise an anti-fraud policy and stated falsely that Remington had recently provided information to the Federal Bureau of Investigation and local law enforcement authorities about a suspected email scam. Remington posted this information to ensure that if potential customers used an internet search engine to search for allegations about Remington's fraud they would be directed to Remington's website, rather than third-party internet sources that contained negative information about Remington.
Co-defendants Joel Nathanson and Shayne Fowler have pled guilty and are awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division with assistance from the Pennsylvania Securities Commission. It is being prosecuted by Assistant United States Attorney David Axelrod.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Abercia and Other Former Officials ConvictedRead the Press Release
HOUSTON – Former long-time Harris County Precinct One Constable Jack Abercia has been convicted on 11 counts of exceeding authorized computer access, United States Attorney Kenneth Magidson announced today along with FBI Special Agent in Charge Stephen L. Morris. Also entering guilty pleas today were Weldon Kenneth Wiener, his former chief lieutenant, and Michael Butler, his former office chief. Weiner and Butler were convicted on one count of conspiracy.
The three Houston residents were charged in an indictment returned Tuesday, Jan. 10, 2012.
Today, Abercia admitted as part of his plea that he unlawfully accessed the National Crime Information Center (NCIC) database on multiple occasions for private financial gain at the time he served as Harris County Precinct One Constable. NCIC is restricted to genuine law enforcement purposes. Users must undergo training and screening, have passwords that are monitored and are instructed that the database is not to be used for non-law enforcement reasons nor beyond in the performance of their official duties. Abercia was convicted of 11 specific acts of unauthorized access or access in excess of official authority in November 2011, but court documents allege the practice had been occurring in the office for a longer period of time.
The investigation revealed Abercia performed background checks for various contractors in return for money. Weiner and Butler admitted they conspired to perform those background checks. On one occasion, Abercia was approached and offered $3000 for having computer searches conducted on four prospective employees. Weiner was also at that meeting. After receiving the money, Abercia said, “God willing, this money will go towards my elevator.” The factual basis in support of the plea indicated he had been considering having an elevator installed in his residence for health reasons, but never did so.
Abercia offered to arrange for more searches but stated that Weiner must be paid as well.In total, Abercia received $9000, while Weiner was paid $1000 for his part in having the NCIC searches conducted.
Butler admitted as part of his plea that he was informed of an improper search and had a duty to report, but failed to do so.
U.S. District Judge Keith P. Ellison, who accepted the guilty pleas, has set sentencing for Nov. 26, 2013. At that time, Abercia faces up to five years in federal prison for each count of exceeding authorized computer access. For their conspiracy convictions, Weiner and Butler also face up to five years imprisonment. All counts also include a possible fine of $250,000.
They were permitted to remain on bond pending their sentencing hearing.
This case was investigated by the FBI Houston Law Enforcement/Border Corruption Task Force with special assistance from the Houston Police Department - Internal Affairs Division and the Texas Rangers and is being prosecuted by Assistant U.S. Attorney Michael Wynne.
28 August 2013
York Man Sentenced to 20 Years in Prison for Violent Armed Carjacking That Left the Victim ParalyzedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ronald Darnell Sweeney, Jr., age 21, was sentenced today to 240 months’ (20 years) imprisonment by U.S. District Court Judge John E. Jones, III, for the violent armed carjacking that left the victim paralyzed below the waist. Judge Jones further ordered that Sweeney serve three years of supervised release. The request for restitution has been deferred for 90 days.
According to United States Attorney Peter J. Smith, on October 5, 2011, Sweeney entered the passenger side of a vehicle parked a few blocks away from an elementary school in which the victim was awaiting the dismissal of a school child. Sweeney pointed a handgun at the victim and instructed the victim to give up the vehicle. The victim fled the vehicle with the vehicle keys in-hand, and ran down the street calling for help. Sweeney chased the victim, then pushed the victim face down onto the ground, grabbed the vehicle keys and shot the victim in the back. Sweeney then fled the scene.
The victim is now a paraplegic due to the injuries sustained from this shooting.
At the sentencing hearing, Assistant U.S. Attorney Joseph J. Terz said, “On October 5, 2011, Mr. Hernandez left his home in York to pick up his grandson at school. When his grandson left school that day, Mr. Hernandez was not there to greet him. Instead, a few blocks from the school, Mr. Hernandez lay face down on a concrete sidewalk bleeding, a bullet in his back and paralyzed. Today, Ronald Sweeney, appears before this court to be sentenced to a term of imprisonment of 20 years. The bitter reality is that Mr. Hernandez has already been sentenced. On October 5, 2011, the defendant, Ronald Sweeney, sentenced Mr. Hernandez to life in a wheelchair.”
Sweeney was indicted in June 2012 and entered a binding plea agreement in January 2013 in which he agreed to plead guilty and serve a 240 month prison sentence.
The case was investigated by the FBI and the York Police Department. Prosecution was handled by Assistant U.S. Attorney Joseph J. Terz.
Woodstock, Vermont Restaurant Mon Vert Cafe Takes Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that the owners of Mon Vert Café and the building in which it is located at 67 Central Street Woodstock, Vermont have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of Mon Vert Café.
An onsite survey of Mon Vert Café performed by United States Department of Justice architects revealed ADA compliance issues related to the restaurant’s entrance and toilet room. Mon Vert Café will remedy the agreed upon ADA compliance issues by November 30, 2013.
Mon Vert Café’s owners and the owner of the building in which Mon Vert Café is located recognized their obligation to address the issues identified in the onsite survey. Laura Miller and Cameron Reed, owners of Mon Vert Café, and John Reed, owner of 67 Central Street, are to be commended for their cooperation with the Office of the United States Attorney.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Woodbridge Doctor Pays $45,000 to Settle Allegations Under the Controlled Substances ActRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that AVIJIT MITRA, M.D., with an office at 270 Amity Road in Woodbridge, has entered into a civil settlement agreement with the government in which he will pay $45,000 to resolve allegations that he violated civil provisions of the Controlled Substances Act.
The allegations against MITRA involve claims that he wrote 13 prescriptions that were outside the normal scope of his medical practice. The prescriptions were for Opana and Oxycontin, both Schedule II controlled substances.
Congress, with the passage of the Controlled Substances Act, took steps to attempt to create “a closed system” of distribution for controlled substances in which every facet of the handling of the substances, from their manufacture to their consumption by the ultimate user, was to be subject to intense governmental regulation. This mission was taken against the backdrop of trying to prevent the diversion and abuse of legitimate controlled substances while at the same time ensuring an adequate supply of those substances needed to meet the medical and scientific needs of the United States.
This investigation was conducted by investigators from the Drug Enforcement Administration’s Office of Diversion Control in Rocky Hill, the Drug Control Division of Connecticut’s Department of Consumer Protection, and the Clinton Police Department. The prosecution was led by Assistant U.S. Attorney Alan M. Soloway.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Wood County Man Guilty of East Texas Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 40-year-old Mineola, Texas man has pleaded guilty to drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Larry James Hooks, Jr., pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, on July 19, 2012, Hooks conspired with others to acquire and distribute methamphetamine in the Eastern District of Texas and elsewhere. Hooks admitted to being responsible for assisting in the distribution of more than 34.8 grams of pure methamphetamine. A federal grand jury returned an indictment on Mar. 27, 2013, charging Hooks and two others with drug trafficking violations.
Hooks faces a minimum of five years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Drug Enforcement Administration and the Canton Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Wood County Gun Dealer Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 45-year-old Yantis, Texas woman has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lucretia Beth Brown pleaded guilty on Feb. 14, 2013, to conspiracy to deal firearms without recording the without keeping records and was sentenced to 24 months in federal prison today by U.S. District Judge Leonard Davis.
Co-defendant Andrea Jaine Burns London, 51, of Yantis, pleaded guilty on Apr. 9, 2013, to the same charges and is awaiting sentencing.
Brown and London were indicted on July 11, 2012, and charged with gun trafficking violations. Federal agents executed search warrants at their home and business in November 2011. A warrant was issued for their arrest, but it was soon discovered that the pair had left the United States for the Philippines in February 2012. Assistance was requested from the International Investigations Branch and a lead was sent to the Diplomatic Security Service in Manila. On Oct. 9, 2012, Philippine Immigration Agents arrested London and Brown in Cebu without incident. Both subjects were transported to Manila to begin the deportation process. On Nov. 8, 2012, London and Brown were escorted by Philippine Immigration Agents from Manila to Los Angeles where they were taken into custody by the Pacific Southwest Regional Fugitive Task Force.
According to information presented in court, from January 2011 to July 2011, London and Brown transported guns from the inventory of Lake Fork Gunslinger & Outdoors in Emory, Texas, to gun shows in Oklahoma, Missouri, and Arkansas, and then sold the guns without properly recording the name, age, and place of residence of the buyers. Brown was also ordered to forfeit approximately 140 firearms from the dealership’s inventory.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Jim Noble.West Plains Man Sentenced to 12 Years in Prison for Receiving Child Porn over the InternetRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a West Plains, Mo., man was sentenced in federal court today for receiving child pornography over the Internet and for possessing child pornography.
Scott Allen Johnson, 26, of West Plains, was sentenced by U.S. District Judge Greg Kays to 12 years in federal prison without parole. The court also ordered Johnson to pay $5,000 in restitution to two of the victims portrayed in the images of child pornography (or $3,000 in restitution if the amount is paid within 30 days). Johnson, who pleaded guilty on Jan. 17, 2013, must also forfeit to the government the laptop computer that was used to commit the offenses.
An officer with the Southwest Missouri Cyber Crimes Task Force identified Johnson’s computer as sharing images of child pornography on a peer-to-peer file-sharing network on Dec. 30, 2011. The officer connected with Johnson’s computer on the network again on Jan. 9, 2012 and was able to determine that he had 322 files available for sharing, of which 139 were identified as known files depicting child sexual abuse. Officers executed a search warrant at Johnson’s residence on Feb. 9, 2012 and seized a laptop computer, four computer towers and 42 optical media disks.
Investigators found approximately 219 images and 46 movie files of child pornography on the laptop computer. The ages of the child victims ranged from 2 to 12, and the images depicted scenes of sexual intercourse, oral sex, anal sex, child bondage, bestiality and nudity.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force (SWMCCTF), the Cassville, Mo., Police Department and the Howell County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Wakpala Woman Sentenced on Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wakpala, South Dakota, woman convicted of Assault Resulting in Serious Bodily Injury was sentenced on August 23, 2013, by U.S. District Judge Charles B. Kornmann.
Adrienne Kills Small, age 36, was sentenced to 15 months of imprisonment, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Kills Small was indicted by a federal grand jury in February of 2013. She pled guilty on May 20, 2013.
The conviction stems from an incident on January 20, 2013, when Kills Small was home socializing with the victim, among others. Kills Small and the victim had previously been in a dating relationship and they have two children together. A fight broke out between the victim and Kills Small’s current boyfriend and Kills Small grabbed a knife and stabbed the victim multiple times. As a result of the assault, the victim sustained serious bodily injury.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The case is being prosecuted by Assistant U.S. Attorney Troy R. Morley.
Kills Small was immediately turned over to the custody of the U.S. Marshals Service.Wakpala Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Juan A. Valadez, Jr., age 20, of Wakpala, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on August 23, 2013, and pled guilty to a Superseding Information that charged him with Assaulting, Resisting and Impeding a Federal Officer.
The maximum penalty upon conviction is 8 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident wherein a Bureau of Indian Affairs (BIA) officer received a call regarding a high speed pursuit which had originated in Mobridge, South Dakota, and was heading onto the Standing Rock Sioux Tribe Reservation. The officer located the vehicle and joined in the pursuit at speeds in excess of 90 miles per hour. The Defendant eventually turned onto a field and was pursued by the BIA officer, where the the Defendant’s car and the officer’s car came into physical contact with one another.
The investigation was being conducted by the BIA Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Valadez was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for November 18, 2013.United States Settles False Claims Act Allegations Against Billing ManagerRead the Press Release
SAN FRANCISCO – A billing manager, her billing company, and her son have agreed to pay $1.7 million to settle allegations that they violated the civil False Claims Act in connection with claims submitted to the Department of Labor, Office of Workers’ Compensation Programs (DOL-OWCP), United States Attorney Melinda Haag announced.
The settlement resolves a whistleblower lawsuit filed in the United States District Court for the Northern District of California. In July 2012, the United States settled with six other defendants for $3.15 million -- Advanced Physical Medicine & Rehab Group Inc. (located in Oakland, Calif. and Rhonert Park, Calif.), Advanced Occupational Rehabilitation, Inc. (located in Oklahoma), Advanced Medicine and Rehabilitation of Texas, Inc. (located in Texas), Advanced Medicine and Rehabilitation of Texas, P.A. (located in Texas), and the two physicians located in Oakland who own these clinics. The remaining three defendants – Farideh Heidarpour, her billing company A.B.C. Billing Inc., and her son Ali Heidarpour (who was also her employee) – will pay an additional $1.7 million.
The United States alleges that, from 2005 through 2008, Heidarpour, her company, and her son submitted or caused to be submitted to DOL-OWCP false claims by the clinics for supplies and services not provided, not supported by medical documentation and/or not medically necessary, resulting in millions of dollars of damages to the United States. The majority of the patients at issue were United States Postal Service (USPS) employees claiming work-related injuries.
“This settlement demonstrates this office’s continued commitment to protecting the federal health care programs from fraud and false claims,” U.S. Attorney Haag, said.
A physician who formerly worked at the clinic in Texas filed the case pursuant to the qui tam provisions of the False Claims Act. Under those provisions, private citizens, called “relators,” may file lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment. The relator will receive $323,000 as her share of the government’s recovery from the three defendants. This is in addition to the relator’s share of $598,000 from the earlier settling defendants.
Assistant U.S. Attorneys Sara Winslow and Melanie Proctor handled the matter on behalf of the U.S. Attorney’s Office for the Northern District of California, with assistance from Financial Fraud Investigator Michael Zehr and Legal Assistants Yvette Baird and Kathy Terry. The matter was investigated by DOL-OWCP and the USPS Office of Inspector General.
(Settlement Agreement Heidarpour Executed )
(Settlement Agreement Heidarpour Exhibits )
Two Individuals Charged in Fraudulent Invoice SchemeRead the Press Release
Wifredo A Ferrer, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Francis Maikisch, 49, of Pembroke Pines, and Angel Moran, 46, of Miami, were charged in a 23-count indictment with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, wire fraud, in violation of Title 18, United States Code, Section 1343, and money laundering, in violation of Title 18, United States Code, Section 1957. The indictment also seeks the forfeiture of up to $1,999,414.14, the amount of currency involved in the wire fraud and money laundering offenses.
According to the indictment, Maikisch worked for TracFone Wireless, Inc., as a freight supervisor from June 2008 through November 2012. And, between November 16, 2010 and August 28, 2012, Maikisch intentionally caused TracFone to pay, by wire transfer, Moran’s freight company for false and fraudulent invoices submitted by Moran for fictitious shipments. As further alleged in the indictment, TracFone paid Moran’s freight company $1,999,414.14 for the false and fraudulent invoices.
If convicted, the defendants face a possible statutory maximum sentence of up to 20 years in prison as to each count of wire fraud and conspiracy to commit wire fraud, and 10 years as to each count of money laundering.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Elijah A. Levitt.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Former New Jersey Residents Plead Guilty to Multiple Armed Robberies in Luzerne, Schuylkill and Carbon CountiesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that two former New Jersey residents pleaded guilty today before Magistrate Judge Karoline Mehalchick and admitted to participating in multiple armed robberies of stores and businesses located in Luzerne, Schuylkill and Carbon Counties between December of 2011 and February of 2012.
According to United States Attorney Peter J. Smith, Tysheed Hargrove, age 20, also known by the "street-name" "Sincere," formerly of Newark, New Jersey, admitted to 11-counts of interference with commerce by robbery and aiding and abetting.
Specifically, Hargrove admitted to robbing the following institutions: - Convenient Mart, 51 West Juniper Street, Hazleton, on December 21, 2011; - Turkey Hill, 70 Station Circle, Hazle Township, on December 24, 2011; - Unimart, Route 940, Foster Township, on January 5, 2012; - Turkey Hill, 800 Alter Street, Hazleton, on January 6, 2012; - Turkey Hill, 800 Alter Street, Hazleton, on January 10, 2012; - Fegley's Mini-Mart, 30-32 Center Street, Tamaqua, on January 20, 2012 ; - Fegley's Mini-Mart, 146 South Kennedy Drive, McAdoo, on January 26, 2012; - Wawa, SR 940, White Haven, on January 29, 2012; - Turkey Hill, 205 Claremont Avenue, Hometown, on February 3, 2012; - Unimart/Exxon, 541, Altamont Boulevard, Frackville, on February 3, 2012; and
- Fegley's Mini-Mart/Dunkin Donuts, 30-32 Center Street, Tamaqua on February 5, 2012.In addition, Jose Nunez, age 20, also known by the "street-name" "Skillz," formerly of Newark, New Jersey, pleaded guilty to aiding and abetting Hargrove in the following seven robberies:
- Convenient Mart, 51 West Juniper Street, Hazleton, on December 21, 2011; - Turkey Hill, 70 Station Circle, Hazle Township, on December 24, 2011; - Unimart, Route 940, Foster Township, on January 5, 2012; - Fegley's Mini-Mart, 146 South Kennedy Drive, McAdoo, on January 26, 2012; - Wawa, SR 940, White Haven, on January 29, 2012; - Turkey Hill, 205 Claremont Avenue, Hometown on February 3, 2012; and
- Unimart/Exxon, 541, Altamont Boulevard, Frackville on February 3, 2012;Magistrate Judge Mehalchick ordered that presentence investigations be conducted by the United States Probation Office. Sentencing will be scheduled at a future date before Senior United States District Judge Richard P. Conaboy.
The investigation was conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, and numerous local law enforcement agencies, including the Hazleton, Tamaqua, McAdoo, Kidder Township, Rush Township and Nesquehoning Police Departments, and the Luzerne County, Schuylkill County and Carbon County District Attorney's Offices.
Prosecution has been assigned to Assistant U.S. Attorney Robert J. O'Hara.
****Twenty-month Sentence for Westerville Jewelry Store Owner for Tax EvasionRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Elie J. Hannoush, 41, of Westerville, Ohio was sentenced in U.S. District Court today to 12 months and one day in prison followed by eight months of home confinement and ordered to pay $91,140.46 in restitution to the IRS for failing to report income he received from the jewelry stores he owns, Farah Jewelers, from 2005 through 2008.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office announced the sentence handed down today by Senior U.S. District Judge George C. Smith.
Hannoush pleaded guilty in November 2012 to one count of tax evasion and one count of failure to report cash payments greater than $10,000 received in a business.
According to court documents, Hannoush often accepted large cash payments from his customers, but failed to report the cash he received as income. Hannoush also admitted he kept a separate accounting system for the cash receivables. Hannoush also admitted he would structure cash receipts by breaking receipts greater than $10,000 into small receipts in order to evade federal cash reporting requirements.
Hannoush admitted that he did not report almost $300,000 in cash from the business. When he filed his federal income tax return for 2006, he reported an income of $27,054 and claimed he was due a $30 refund. His real taxable income for 2006 was $194,817.10 and he owed taxes of $35,188.79 for that year.
U.S. Attorney Stewart commended the investigation by IRS Special Agents and Financial Crimes Chief Brenda Shoemaker, who prosecuted the case.
# # #Texas Man Pleads Guilty in Idaho Federal CourtRead the Press Release
Admits Conspiring to File False Claims for IRS Tax Refunds Agreed to Pay Restitution of $1,466,799
POCATELLO – Lawrence Sikutwa, 34, of Dallas, Texas, pleaded guilty today in United States District Court to conspiracy to file false claims for a refund, U.S. Attorney Wendy J. Olson announced. Sikutwa entered his plea before U.S. Magistrate Judge Ronald E. Bush at the federal courthouse in Pocatello.
According to the plea agreement, Sikutwa operated a tax preparation business in Dallas. He entered into an agreement with various co-conspirators in Pocatello and elsewhere to solicit clients for him. The co-conspirators contacted persons who needed tax preparation services, obtained their tax documents from them, and then shipped the information to Sikutwa to prepare the tax returns. Sikutwa added false dependents and false income, falsely claimed head-of-household status, and made other entries to increase the amount of the refund. According to the plea agreement, Sikutwa distributed a small portion of the actual refund to the taxpayer, representing it was the entire refund, and failed to provide copies of the returns to the taxpayers. Sikutwa admitted that he was aware the tax returns were false.
According to the plea agreement, during 2006, Sikutwa filed 168 tax returns for tax year 2005, resulting in refunds of $654,368. In 2007, he filed 124 tax returns for tax year 2006, resulting in refunds of $588,982. Under the name of Harris Tax Services, Sikutwa prepared and filed 99 returns for tax year 2007, resulting in refunds of $456,888. According to the plea agreement, Sikutwa will pay $1,466,799 in restitution to the Internal Revenue Service.
The charge of conspiracy to file false claims for refund is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sikutwa is set for sentencing on November 18, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by Internal Revenue Service-Criminal Investigation.
Tax Preparer, Lekeith Robinson, Sentenced for Filing False Income Tax ReturnsRead the Press Release
LEKEITH ROBINSON, age 31, of New Orleans, Louisiana, was sentenced in federal court today by U.S. District Judge Susie Morgan for filing false claims against the United States, announced U. S. Attorney Dana Boente. The defendant was sentenced to 21 months incarceration, 2 years of supervised release, and ordered to pay $93,804.13 in restitution to the IRS.
According to court documents, ROBINSON owned and operated a tax preparation business called Solid Rock II, Inc. Between February 2009 and May 2010, the defendant prepared fraudulent tax returns in the names of others seeking tax refunds totaling approximately $93,804.43. The tax returns were false in that they contained false dependent information and false household income.
The case was investigated by the Internal Revenue Service and prosecuted by Assistant U.S. Attorney G. Dall Kammer.
Sweetwater Police Detective Arrested for Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the arrest of William Garcia, a detective with the Sweetwater Police Department, for alleged use of a counterfeit access device and aggravated identity theft.
The complaint charges Garcia with a single count of use of a counterfeit access device, in violation of Title 18, United States Code, Section 1029(a)(1), and a single count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). If convicted, Garcia faces a possible maximum sentence of five years’ imprisonment as to the counterfeit access device violation, and a two year mandatory minimum sentence of imprisonment as to the aggravated identity theft violation.
According to the facts alleged in the complaint, Garcia participated in a counterfeit credit card scheme in late 2010 through 2011. Garcia’s criminal activities included providing his own credit card for use in manufacturing fraudulent credit cards, hiding evidence when he learned a co-conspirator had been arrested, and ultimately possessing and using counterfeit cards that Garcia claimed had been seized during the course of his duties.
Mr. Ferrer commended the investigative efforts of the FBI led Miami Area Corruption Task Force. This case is being prosecuted by Assistant U.S. Attorney Anthony LaCosta.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.