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Wednesday 26 June 2013
Witness Tampering Lands Convicted Sex Trafficker More Prison TimeRead the Press Release
HOUSTON – A Houston man, already convicted and sentenced in a large domestic sex trafficking case, has been handed additional federal prison time for witness tampering, United States Attorney Kenneth Magidson announced today.
Andre McDaniels, 43, was convicted along with five others in Operation Total Exposure, the largest domestic sex trafficking case prosecuted in the Southern District of Texas. In that case, McDaniels pleaded guilty to conspiracy to commit sex trafficking, coercion and enticement and two counts of transportation and later sentenced to a total of 96 months in federal prison. On Sept. 25, 2012, he pleaded guilty to witness tampering in relation to that case.
Today, U.S. District Judge Lee H. Rosenthal handed McDaniels a sentence of 78 months, which will be served consecutively to his previous sentences for a total of 174 months confinement. At the hearing, additional evidence was presented including that McDaniels attempted to have an individual pay witnesses to alter their testimony and to gather personal information about federal agents and prosecutors. In handing down the sentence, Judge Rosenthal noted that the offense committed by McDaniels was an attempt to compromise the integrity of the judicial system and the sentence should reflect the seriousness of that conduct.
McDaniels and the others were charged and later convicted of operating commercialized sex businesses often disguised as legitimate businesses and recruited women and minors as young as 16 to work as prostitutes and perform commercial sex acts. The women were routinely beaten and threatened to instill fear in them and insure their obedience. Some of the co-conspirators also had sexual intercourse with the minor females. Any proceeds the women received as a result of their sexual encounters where taken by the members of the enterprise, rendering them dependent upon the defendants for basic necessities.
On or about Jan. 6, 2012, McDaniels met with an undercover agent from the FBI posing as a private investigator. McDaniels intentionally and knowingly solicited the agent to tamper with, coerce and intimidate fact witnesses whom the government anticipated on calling to testify in regards to the sex trafficking case. Specifically, McDaniels instructed the agent to pay money to witnesses in an effort to influence their testimony or possibly make them unavailable to testify.
If witnesses would not accept these payments, McDaniels instructed the agent to conduct surveillance on the witnesses in order to record and gather compromising personal information that could be used to influence their testimony. Further, McDaniels also instructed the agent to conduct investigations into the personal lives of law enforcement agents and federal prosecutors.
McDaniels has been and will remain in custody.
The tampering was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Craig M. Feazel and John D. Jocher. Assistant United States Attorney Sherri Zack prosecuted McDaniels on the sex trafficking charges.
Washington County Woman Admits Purchasing Weapon for A Drug-Addicted FelonRead the Press Release
PITTSBURGH - A resident of Eighty Four, Pa., pled guilty to violating federal firearms laws, United States Attorney David J. Hickton announced today.
Linda Daugherty, 32, was convicted of providing false information to a federal firearms licensee by indicating that she was the buyer of a Smith & Wesson .38 caliber revolver when she was actually acting on behalf of someone else. Daugherty bought the firearm for, and provided the firearm to, an acquaintance who was a convicted felon and who was addicted to a controlled substance and could not lawfully purchase or possess firearms.
Sentencing is scheduled to occur on Oct. 8, 2013, at 10 a.m., in the courtroom of United States District Judge Cathy Bissoon.
The law provides for a maximum total sentence of up to five years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania State Police investigated this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Virginia Man Sentenced to 12-Year Prison Term for Distribution of Child PornographyRead the Press Release
WASHINGTON - James Wendell Brown, 51, of Warrenton, Va., was sentenced today to 12 years in prison for distribution of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI's Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Brown pled guilty to the charge in January 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Richard J. Leon. Upon completion of his prison term, Brown will be placed on 20 years of supervised release.
According to the government's evidence, on March 5, 2012, Brown contacted a man he believed to be the father of an under-aged girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next few days, Brown engaged in online e-mail and instant message conversations with the undercover officer. During this period of time, Brown sent the undercover officer three images of child pornography which depicted adult men engaged in sexual acts with children. During the course of his conversations with the undercover officer, Brown acknowledged having sexually abused young children in the past. Brown has been in custody since his arrest on March 28, 2012.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Assistant U.S. Attorneys David Last and Ari Redbord, who prosecuted the case.
13-227Utah Resident Charged with Submitting False Claims for Tax Refunds and Ficticious Financial InstrumentsRead the Press Release
A federal grand jury in Salt Lake City today returned an indictment charging Paul Ben Zaccardi, a resident of Sandy, Utah, with five counts of presenting false, fictitious and fraudulent claims to the United States, and three counts of passing fictitious obligations.
According to the indictment, on or about Aug. 20, 2008, Zaccardi submitted five false claims to the United States by filing income tax returns for the years 1996 through 2000, seeking refunds to which he was not entitled. Altogether, Zaccardi sought refunds totaling $1,510,251. The indictment further charges that Zaccardi submitted fictitious obligations to the United States that purported to pay his tax debts. The first of these was submitted in July 2008 and claimed to be valued at $5,000,000; the second and third were submitted in November of 2009 and claimed to be valued at $300,000,000 each.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Zaccardi faces a maximum of 100 years in prison.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Michael Romano and Stuart Wexler.
Related Materials:
United States v. Paul Ben Zaccardi
Indictment (PDF)Utah Resident Charged with Submitting False Claims for Tax Refunds and Ficticious Financial InstrumentsRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned an indictment Wednesday charging Paul Ben Zaccardi, a resident of Sandy, Utah, with five counts of presenting false, fictitious and fraudulent claims to the United States, and three counts of passing fictitious obligations.
According to the indictment, on or about Aug. 20, 2008, Zaccardi submitted five false claims to the United States by filing income tax returns for the years 1996 through 2000, seeking refunds to which he was not entitled. Altogether, Zaccardi sought refunds totaling $1,510,251. The indictment further charges that Zaccardi submitted fictitious obligations to the United States that purported to pay his tax debts. The first of these was submitted in July 2008 and claimed to be valued at $5,000,000; the second and third were submitted in November of 2009 and claimed to be valued at $300,000,000 each.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Zaccardi faces a maximum of 100 years in prison.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Michael Romano and Stuart Wexler.
Utah Man Previously Charged with Filing False Claims for Tax Refunds Indicted for Additional Charge of Passing a Fictitious Financial InstrumentRead the Press Release
A federal grand jury in Salt Lake City today returned a superseding indictment charging Dick Reid Jenkins, a resident of Heber City, Utah, with 18 counts of presenting false, fictitious and fraudulent claims to the United States and one count of passing a fictitious obligation.According to the superseding indictment, in September 2008, Jenkins filed a false 2007 income tax return for himself which claimed an income tax refund of $402,920. Then, in October 2008, Jenkins filed a false amended 2004 income tax return, which claimed an income tax refund of $434,261. Both false claims were based on the use of false Form 1099-OID, Original Issue Discount. In addition to his own false returns, from September 2008 through February 2009, Jenkins caused 16 other false federal income tax returns to be filed on behalf of other individuals. These other false tax returns also used false Forms 1099-OID and claimed federal income tax refunds totaling $8,407,623. The indictment further alleges that Jenkins was licensed by the state of Utah as a certified public accountant at all times relevant to these charges.
Additionally, according to the superseding indictment, on June 30, 2008, Jenkins passed and presented a false and fictitious financial instrument to the U.S. Department of the Treasury in the amount of $300,000,000.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted, Jenkins faces a statutory maximum penalty of 25 years in prison for each count of submitting fictitious obligations to the United States and five years in prison for each count of presenting false, fictitious, and fraudulent claims to the United States.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Stuart Wexler and Michael Romano.
Utah Man Previously Charged with Filing False Claims for Tax Refunds Indicted for Additional Charge of Passing A Fictitious Financial InstrumentRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned a superseding indictment Wednesday charging Dick Reid Jenkins, a resident of Heber City, Utah, with 18 counts of presenting false, fictitious and fraudulent claims to the United States and one count of passing a fictitious obligation.
According to the superseding indictment, in September 2008, Jenkins filed a false 2007 income tax return for himself which claimed an income tax refund of $402,920. Then, in October 2008, Jenkins filed a false amended 2004 income tax return, which claimed an income tax refund of $434,261. Both false claims were based on the use of false Form 1099-OID, Original Issue Discount. In addition to his own false returns, from September 2008 through February 2009, Jenkins caused 16 other false federal income tax returns to be filed on behalf of other individuals. These other false tax returns also used false Forms 1099-OID and claimed federal income tax refunds totaling $8,407,623. The indictment further alleges that Jenkins was licensed by the state of Utah as a certified public accountant at all times relevant to these charges.
Additionally, according to the superseding indictment, on June 30, 2008, Jenkins passed and presented a false and fictitious financial instrument to the U.S. Department of the Treasury in the amount of $300,000,000.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted, Jenkins faces a statutory maximum penalty of 25 years in prison for each count of submitting fictitious obligations to the United States and five years in prison for each count of presenting false, fictitious, and fraudulent claims to the United States.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Stuart Wexler and Michael Romano.
United States Reaches Agreement with Suncoke Energy Resolving Clean Air Violations at Plants in Illinois and OhioRead the Press Release
SunCoke Energy Inc. and two of its subsidiaries have agreed to pay $1.995 million to resolve alleged Clean Air Act violations of emission limits at the Gateway Energy and Coke plant in Granite City, Illinois, and the Haverhill Coke plant in Franklin Furnace, Ohio, announced the Justice Department and the U.S. Environmental Protection Agency.
The companies will also spend $255,000 on a lead abatement project in southern Illinois to reduce lead hazards in owner-occupied low income residences with priority given to families with young children or pregnant women. The companies will pay a penalty of $1.27 million to the United States, $575,000 to the State of Illinois, and $150,000 to the State of Ohio. Illinois and Ohio are co-plaintiffs in this case.
“This settlement is good news for communities in Illinois and Ohio, who will benefit from these substantial reductions in harmful air pollution and enjoy cleaner, healthier air to breathe for many years to come,” said Acting Assistant Attorney General Robert G. Dreher. “It also reflects our continuing commitment to protecting the people and environment of the United States through the vigorous enforcement of the Clean Air Act.”“The substantial upgrades required by today’s settlement will reduce air pollution that can harm public health and the environment,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA is committed to reducing toxic air pollution from sources that have an impact on the health of communities.”
“This settlement provides a long-term solution to protect air quality and control emissions,” said Ohio Attorney General Mike DeWine. “We will continue to work with other agencies to protect Ohio families from environmental harm.”
“The facility upgrades and stricter emission limits mandated in this settlement will dramatically reduce harmful pollution levels and improve overall air quality in the communities surrounding these facilities,” said Illinois Attorney General Lisa Madigan.
In addition, the companies will spend approximately $100 million at the two heat recovery coking facilities to install equipment known as heat recovery steam generators (HRSGs) to ensure that hot coking gases are routed to pollution control equipment and not vented directly into the atmosphere. If future emissions exceed the requisite threshold at a third facility, in Middletown, Ohio, then SunCoke will have to install an additional HRSG at that facility to prevent uncontrolled venting of coking gases. They will also spend an estimated $700,000 on equipment to continuously monitor sulfur dioxide (SO2) emissions at the Gateway and Haverhill facilities.
Further, the companies have agreed to accept more stringent emission limits than required in their current permits for SO2 and particulate matter and, in the case of the Gateway Facility, lead. SO2 contributes to acid rain and exacerbates respiratory illness, particularly in children and the elderly. Exposure to particulate pollution has been linked to health impacts that include decreased lung function, aggravated asthma and premature death in people with heart or lung disease.The primary violations alleged relate to excessive bypass venting of hot coking gases directly to the atmosphere, resulting in excess SO2 and particulate matter emissions from the facilities’ waste heat and main stacks, in violation of applicable permit limits. Coke oven emissions are a known human carcinogen. Chronic (long-term) exposure in humans can result in conjunctivitis, severe dermatitis and lesions of the respiratory system and digestive system. The additional equipment installed at the facilities will result in estimated emissions reductions of over 1200 tons per year of SO2, over 130 tons per year of particulate matter, 252 tons per year of hydrochloric and sulfuric acid gases and over 1800 pounds per year of lead.
Both facilities are located in areas that do not meet federal health-based standards for soot. The Illinois facility is located in an area that also does not meet the federal air pollution standard for lead.
Reducing illegal emissions of toxic air pollutants at facilities that have a significant impact on air quality and health in communities is one of EPA’s national enforcement priorities. Excess emissions from chemical plants and other industries can result in releases of hazardous air pollutants, or air toxics that are known or suspected to cause cancer, birth defects, and seriously impact the environment.
The Consent Decree, lodged in the U.S. District Court for the Southern District of Illinois, is subject to a 30-day public comment period and approval by the federal court. It is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.htmlU.S. Immigration Official Named in Federal Indictment That Alleges Bribes to Approve Applications for Citizenship and ‘Green Card’Read the Press Release
SANTA ANA, California – An immigration service officer with U.S. Citizenship and Immigration Services (USCIS) was indicted today on federal charges that allege she took thousands of dollars in bribes from three immigrants who were seeking either citizenship or lawful permanent resident status in the United States.
Mai Nhu Nguyen, 47, of Irvine, was charged in a three-count indictment returned by a federal grand jury. The indictment specifically alleges three counts of solicitation and receipt of a bribe by a public official.
Nguyen was arrested on June 6 after allegedly accepting a $2,200 bribe from an immigrant who was seeking United States citizenship.
In addition to the bribe earlier this month, the indictment alleges that Nguyen solicited and took bribes from immigrants in 2011. In one case, Nguyen is accused of taking $1,000 from an immigrant seeking a “Green Card” and 200 egg rolls from an immigrant seeking citizenship.
Nguyen, who has worked at USCIS’s Santa Ana office for approximately eight years, is an immigration service officer with the power to approve or deny applications for immigration benefits that are submitted by immigrants.
Nguyen is scheduled to be arraigned on the indictment on July 1 in United States District Court in Santa Ana.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Each count of bribery by a public official carries a statutory maximum penalty of 15 years in federal prison.
After being arrested, prosecutors filed a criminal complaint against Nguyen, who made her initial court appearance before a United States Magistrate Judge on June 7. Nguyen was released on a $20,000 bond and was ordered to appear for the arraignment next month.
The case against Nguyen is the product of an investigation by the Federal Bureau of Investigation and the Department of Homeland Security Office of Inspector General.
Release No. 13-087
U.S. Attorney Guest Speaker at U.S. Territory Summit on Violence Against WomenRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, was invited by the National Organization of Sisters of Color Ending Sexual Assault (SCESA) to be a speaker at the first ever U.S. Territory Summit on Violence Against Women held on June 25, 2012, in Saipan, Northern Mariana Islands. The Conference was presented by the Criminal Justice Planning Agency and the Northern Marianas Coalition Against Domestic and Sexual Violence in partnership with the National Organization of Sisters of Color Ending Sexual Assault and the Office on Violence Against Women, United States Department of Justice.
U.S. Attorney Limtiaco was a presenter with representatives from Guam about best practices in Guam addressing violence against women, including prevention, enforcement and treatment efforts at the federal and local levels. She also discussed the efforts of and progress made by law enforcement, courts and victim advocates and coalitions in the NMI.
United States Attorney Limtiaco spoke about sharing the sense of urgency to speak out against the escalating violence against women in our island communities. She also spoke about reaching out to victims and survivors of far too often lethal crimes, and to communicate that there is help and hope.
U.S. Attorney Limtiaco also stated that domestic violence, dating violence, sexual assault and stalking, continue to be a significant public health crisis especially when statistics show that:
- one in four women will be physically or sexually assaulted by a spouse or partner at some point in her lifetime;
- last year, one in 10 teens reported being physically hurt on purpose by a boyfriend or girlfriend;
- last year, one in nine teen girls was forced to have sex;
- last year, one in five young women have been sexually assaulted while they were in college; and
- estimates show that more than 2 million adults and more than 25 million children are exposed to domestic violence every single year;
The Department of Justice is committed to the prevention of violence against women and ensuring the safety and protection of our victims and survivors. U.S. Attorney Limtiaco shared that U.S. Attorney General Eric H. Holder, Jr. has held that the United States Attorney community plays a critical role in raising the awareness of and preventing domestic violence and sexual assault, and holding offenders accountable for these crimes. The Department of Justice will continue to take every possible step to enforce laws protecting victims of violence and to provide resources to assist victim service providers.
Participants at the Summit included teams of victim advocates, domestic violence and sexual assault coalitions/ non profits, law enforcement, prosecutors, judges, and treatment providers from Guam, the NMI, American Samoa, Puerto Rico, and U.S. Virgin Islands.Two Singapore Men Plead Guilty in Connection with Plot to Illegally Export Military AntennasRead the Press Release
WASHINGTON – Hia Soo Gan Benson, also known as “Benson Hia,” and Lim Kow Seng, also known as “Eric Lim,” pled guilty today in federal court in the District of Columbia to conspiracy to violate the Arms Export Control Act in connection with the unlawful export of 55 military antennas from the United States to Singapore and Hong Kong.
The plea was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John P. Carlin, Acting Assistant Attorney General for National Security; James Dinkins, Associate Executive Director of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations; Stephanie Douglas, Executive Assistant Director of the FBI’s National Security Branch; and Eric L. Hirschhorn, Under Secretary for Industry and Security at the Commerce Department.
Hia, 45, and Seng, 44, both of Singapore, pled guilty this afternoon before the Honorable Magistrate Judge John M. Facciola. Sentencing is scheduled for Sept. 20, 2013 before the Honorable Emmet G. Sullivan. The defendants face a maximum potential sentence of five years in prison, a fine of $250,000 and a 3-year term of supervised release.
According to court documents filed in this case, Hia and Seng conspired to defraud the United States by causing a total of 55 cavity-backed spiral antennas and biconical antennas to be illegally exported from a Massachusetts company to Singapore and Hong Kong without the required State Department license. These military antennas are controlled for export as U.S. munitions and are used in airborne and shipboard environments.
Hia and Seng, among other things, conspired to undervalue the antennas to circumvent U.S. regulations on the filing of shipper’s export declarations to the U.S. government. They also allegedly used false names and front companies to obtain the antennas illegally from the United States.
Corezing International, a company based in Singapore, was also charged in the District of Columbia in connection with the export of these particular military antennas to Singapore and Hong Kong. Corezing and its principals have also been charged in connection with the export of 6,000 radio frequency modules from the United States to Iran via Singapore, some of which were later found in Improvised Explosive Devices in Iraq. Hia and Seng pled guilty to the sole charge on which they were extradited from Singapore.
This investigation was jointly conducted by ICE agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, and the State Department’s Directorate of Defense Trade Controls.
The prosecution is being handled by Assistant U.S. Attorney Anthony Asuncion of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division.
13-228Two Florida Residents Arrested on Charges of FraudRead the Press Release
Two individuals were arrested on a federal warrant alleging that they operated a series of fraudulent businesses targeting Spanish-speaking consumers, the Justice Department and the U.S. Postal Inspection Service announced today. The criminal complaint, charging Daniel Carrasco, 54, of Miramar, Fla., and Federico Martin Gioja, 45, also of Miramar, alleges that the pair incorporated, owned, and ran Florida companies that used a phone room in Argentina to extract money from consumers using lies and extortion.In addition to the criminal complaint, the Justice Department filed a civil case against Carrasco, Gioja, Romina Tasso and their businesses, seeking an injunction to prevent further fraud and an asset freeze to prevent dissipation of funds obtained from consumers.
Carrasco and Gioja will make their first appearances in court today.
According to the civil complaint and the affidavit filed in support of the criminal complaint, the case was the result of a referral from Spanish-language television station, Univision. Companies belonging to Carrasco and Gioja are alleged to have falsely claimed an affiliation with Univision and purported to sell products such as vitamins, lotions, medical insurance, and English-language training products. However, according to the documents, the companies frequently did not deliver products ordered by consumers. The companies allegedly did not have many of the products they promised to send to consumers, and so consumers received other products instead.
According to the civil and criminal complaints, after consumers refused delivery of the companies’ shipments, employees of the Argentinian phone room used by Carrasco and Gioja called and falsely threatened the consumers with arrest, deportation, or fines on their gas and electric bills.
“This case demonstrates our commitment to use every tool at our disposal -- including asset freezes, injunctive relief, and criminal prosecution -- against companies that seek to lie, extort, threaten, and defraud Americans,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “Protecting consumers from fraud continues to be a top priority for the Department of Justice.”
According to the criminal and civil complaints, Carrasco and Gioja routinely changed the names of the companies under which they did business to evade complaints, regulators, and law enforcement. The businesses allegedly were contacted by a variety of state agencies regarding their illicit practices. In emails cited in the affidavit in support of arrest, those working with Carrasco and Gioja referred to companies tainted by complaints as “burnt.” Rather than changing their practices, the defendants allegedly incorporated new companies and started the same illegal practices again.
U.S. Attorney Wifredo A. Ferrer stated, “These defendants specifically targeted Spanish-speaking victims, pretending to be affiliated with the Univision television network, to sell their products from their phone room in Argentina. In fact, however, the defendants had absolutely no connection to Univision, and their companies did not deliver the products ordered by consumers. As this case illustrates, the U.S. Attorney’s Office is committed to investigating and prosecuting fraudsters, both domestic and international, whose schemes defraud American consumers.”
“Postal Inspectors will continue to investigate cases involving fraud against consumers and will vigorously pursue those individuals who use the mail in furtherance of their criminal schemes,” said Ronald Verrochio, U.S. Postal Inspector in Charge in Miami.
Acting Assistant Attorney General Delery commended the investigative efforts of the Postal Inspection Service, and thanked the U.S. Attorney’s Office in the Southern District of Florida for their contributions to the case. The civil case is being handled by Trial Attorney Jessica Gunder of the U.S. Department of Justice’s Consumer Protection Branch. The criminal case is being prosecuted by Assistant Director Richard Goldberg with the Consumer Protection Branch.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. A civil complaint contains allegations only and the defendants will have the opportunity to challenge those allegations in court.
Three Plead Guilty in Marijuana Distribution ConspiracyRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Chad Sunyich (37, St. George, Utah), Jason Vowell (38, St. George, Utah), and Timothy Long (39, Tampa) have pleaded guilty to conspiring to distribute more than 100 kilograms of marijuana. Sunyich and Vowell also pleaded guilty to possessing marijuana with intent to distribute. Long pleaded guilty today. Vowell pleaded guilty on June 3, 2013. Sunyich pleaded guilty on June 4, 2013. Each faces a mandatory minimum term of five years, up to forty years in federal prison on the conspiracy charge. For the possession with intent to distribute charge, Sunyich and Long also face a maximum term of twenty years in federal prison. Vowell has agreed to forfeit property that was used to facilitate the conspiracy, including his Piper Aerostar fixed wing airplane and $166,228 in cash.
According to court documents, the conspiracy began in 2010 when Sunyich sent marijuana grown in northern California to a person who would later become a cooperating witness (CW-1), in Tampa. The marijuana trafficking relationship between Sunyich and CW-1 continued into 2011 and 2012. During those years, Sunyich supplied CW-1 with quantities of marijuana ranging between thirty and ninety-nine pounds at a time, generally every 45 to 60 days.
In early 2012, Long joined the conspiracy. Long regularly collected marijuana proceeds for Sunyich and received pounds of marijuana from Sunyich for further distribution.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Terry Lynn Braine Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 26, 2013, before Senior U.S. District Judge Jack D. Shanstrom, TERRY LYNN BRAINE, a 47-year-old resident of Ashland, pled guilty to domestic assault by a habitual offender. Sentencing has been set for September 25, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On November 29, 2012, BRAINE punched his elderly father in the eye causing severe swelling, redness, and a laceration. His elderly mother was present as well and suffered emotional trauma from witnessing the attack. BRAINE has four prior tribal court convictions for domestic assault - all of them involve assaults on his elderly parents.
The assault occurred in Lame Deer, which is within the exterior boundaries of the Northern Cheyenne Indian Reservation.
BRAINE faces possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Bureau of Indian Affairs.
Tennessee Man Indicted for Romney Tax Return Fraud and Extortion SchemeRead the Press Release
Michael Mancil Brown was indicted today by a federal grand jury in Nashville, Tenn., for allegedly engaging in an extortion and wire fraud scheme involving former Presidential candidate Mitt Romney’s tax returns, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Todd Hudson, Special Agent in Charge of the U.S. Secret Service, Nashville Field Office.
Brown, 34, of Franklin, Tenn., was charged in U.S. District Court in the Middle District of Tennessee with six counts of wire fraud and six counts of extortion.
The indictment alleges that Brown devised a scheme to defraud Romney, the accounting firm of PricewaterhouseCoopers LLP and others by falsely claiming that he had gained access to the PricewaterhouseCoopers internal computer network and had stolen tax documents for Romney and his wife, Ann D. Romney, for tax years prior to 2010.
According to the indictment, Brown allegedly caused a letter to be delivered in August 2012 to the offices of PricewaterhouseCoopers in Franklin. The letter demanded that $1 million worth of the digital currency Bitcoin be deposited to a specific Bitcoin account to prevent the release of the purportedly stolen Romney tax returns. The letter also invited interested parties who wanted the allegedly stolen Romney tax documents to be released to contribute $1 million to another Bitcoin account.
The indictment alleges that Brown delivered similar letters to the offices of the Democratic and Republican parties in Franklin and caused similar statements to be posted to Pastebin.com.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Nashville Field Office of the U.S. Secret Service with assistance from the Nashville Resident Agency of the FBI. The case is being prosecuted Senior Counsel Anthony V. Teelucksingh of the Criminal Division's Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Byron Jones of the Middle District of Tennessee.
Tax Refund Schemer Pleads GuiltyRead the Press Release
PHILADELPHIA - Jonathan Brownlee, 28, of Philadelphia, pleaded guilty today to four counts stemming from a tax fraud scheme that sought to bilk the government of over $600,000. Brownlee admitted that he conspired with others to file false tax claims by obtaining and using the personal identifying information of several individuals, including their Social Security numbers, sometimes under false pretenses. Brownlee used the information to prepare and file bogus tax returns claiming fraudulent refunds and directed the refunds to be deposited into bank accounts that he and his co-conspirators controlled. He pleaded guilty to conspiracy and three counts of filing a false claim. A sentencing hearing is scheduled for October 10, 2013.
Brownlee’s co-conspirators - Christopher Brownlee, 36, Anthony Foster, 43, and Paul Rawls, 53, all of Philadelphia - were each charged with conspiracy and filing false claims on tax returns with the IRS. Rawls pleaded guilty to conspiracy and one count of filing a false claim on June 25, 2013. A sentencing hearing for Rawls is scheduled for September 24, 2013.
The tax returns fraudulently reported that the individuals for whom Brownlee had prepared the returns, were entitled to receive a $7,500 refundable tax credit under the Housing and Economic Recovery Act of 2008. The returns were false because those individuals had not purchased new homes and thus were not eligible to apply for the refundable tax credit. Some of the individuals---in whose name the returns had been prepared and filed---were not aware that Brownlee and his co-conspirators had used their Social Security numbers for the purpose of filing the false returns. The indictment was the first in the Eastern District of Pennsylvania involving fraud effecting the Housing and Economic Recovery Act of 2008.
Brownlee faces a maximum possible sentence of 25 years in prison and a fine of up to $1 million.
The case was investigated by the Internal Revenue Service Criminal Investigation Division and the Office of Inspector General for the United States Social Security Administration. The case is being prosecuted by Assistant United States Attorneys Floyd J. Miller and Patrick J. Murray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Tarentum Woman Charged with Bank FraudRead the Press Release
PITTSBURGH - A resident of Tarentum, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of bank fraud United States Attorney David J. Hickton announced today.
The one-count indictment, returned on June 25, named Suzanne Czwalga Andre, 47, as the sole defendant.
According to the indictment presented to the court, from July 2010 to November 2010, Andre negotiated fraudulent checks at various branches of Citizens Bank that she knew would not be honored by the banks on whose accounts the checks were drawn.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Postal Inspectors and the United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tallahassee Resident Sentenced to 87 Months in Federal PrisonRead the Press Release
TALLAHASSEE – The U.S. Attorney’s Office for the Northern District of Florida announced that Kenneth L. Barber, 62, of Tallahassee, Florida, was sentenced today in federal court to serve 87 months in prison on charges of wire fraud, preparing false tax returns, making a false statement to a bank, and conspiracy to commit tax fraud.
On April 10, 2013, a federal jury found Barber guilty after a three day trial. At trial, the government presented evidence that Barber ran and operated a local tax preparation business where he encouraged preparers to falsify clients’ tax returns. Barber’s former employees, including his two co-defendants, Shavita Altrecia Davis and Anthony Tyree Barber, testified that Barber trained them on how to prepare fraudulent returns to increase the clients’ tax refunds. At Barber’s instruction and direction, the employees filed returns falsifying income, deductions, credits, dependents, and filing status to obtain inflated tax refunds and to limit the tax due to the IRS. At the trial and at the sentencing hearing, a government expert witness testified that the tax scheme resulted in a loss of more than $700,000. Barber also made false statements to a financial institution to qualify for loans totaling more than $300,000.
The court also sentenced Barber to serve five years of supervised release following his prison term, and ordered him to pay restitution and special monetary assessments. In addition, the court entered an order of forfeiture in the amount of $131,781.00. The restitution will be determined at a later date. Barber’s co-defendant, Shavita Davis, was sentenced to serve twenty-four months in prison, while co-defendant Anthony Barber was sentenced to serve six months in prison, as well as six months of home detention.
“IRS Criminal Investigation takes tax refund fraud seriously and criminal violations, like the ones for which Mr. Barber was convicted, have serious consequences,” stated James D. Robnett, Special Agent in Charge of the Tampa Field Office of IRS Criminal Investigation. Mr. Robnett added, “The community should heed the cautionary tale of this case, and choose professional tax preparers carefully. Through aggressive, impartial enforcement of the tax laws, IRS is putting those unscrupulous preparers on notice that we are watching.”
The U.S. Attorney for the Northern District of Florida, Pamela C. Marsh, praised the work of the Internal Revenue Service, whose investigation led to the convictions in the case. She added, “The Department of Justice will continue to aggressively pursue and bring to justice those who defraud the public, engage in illegal schemes, abuse positions of trust, and willfully undermine the entire tax system.”
Barber was sentenced by United States District Judge Robert L. Hinkle.
The case was prosecuted by Assistant U.S. Attorney Winifred Acosta NeSmith.Synthetic Drug Sweep Hits Individuals and Businesses Across West TennesseeRead the Press Release
Memphis, TN – Indictments were unsealed today in Memphis and Jackson, TN naming 40 individuals alleged to be part of the synthetic drug trade in West Tennessee, announced U.S. Attorney Edward L. Stanton III; Resident Agent-in-Charge of the Drug Enforcement Administration’s (DEA) Memphis office Brian Chambers; and Shelby County District Attorney General Amy Weirich.
“Project Synergy,” a DEA initiative, is the largest-ever coordinated law enforcement strike against designer drugs, targeting manufacturers, distributors, and retailers of more than 250 synthetic drugs being abused every day in the United States and globally. This initiative was conducted in conjunction with prosecutors in Memphis and Jackson as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
“As alleged, the defendants were involved in an international web of distributing illegal synthetic drugs at numerous retail establishments throughout West Tennessee and beyond, many lining their pockets with multi-million-dollar profits,” said U.S. Attorney Stanton. “Today’s indictments, arrests and seizures demonstrate that the manufacturing, distribution and purchase of these highly addictive and potentially lethal substances will not be tolerated, and those who are brazen enough to sell this poison, particularly to our children and young adults, will be held accountable. I thank the DEA for their diligent efforts with this case over the past two years and the more than 400 federal, state and local law enforcement officials who took part in today’s sweeping takedown throughout the Western District of Tennessee.”
After a two-year investigation involving federal state and local law enforcement, hundreds of purchases and seizures were made from more than 34 different storefronts in the Western District of Tennessee.
During today’s takedown more than 76 search warrants and 35 arrest warrants were executed.
“Stopping the flow of synthetic drugs both domestically and internationally is a major focal point at DEA,” said Michael J Stanfill, the Assistant Special Agent in Charge of the DEA Nashville
District Office. “In doing so, we will continue to work with our law enforcement partners to disrupt the flow of these dangerous substances. This case was successful because of the true spirit of cooperation between all agencies involved.”
The drugs seized in this investigation generally fall into two categories: synthetic cannabinoids and synthetic cathinones. Synthetic cannabinoids, often known by the street names “Spice” or “K2,” mimic the hallucinogenic effects of marijuana with the added side effects of hallucinations, seizures, and dependency/addiction not usually associated with marijuana users. Synthetic cathinones, better known as “bath salts” or “plant food,” produce a high similar to methamphetamine, MDMA or cocaine. Abusers experience chest pain, increased blood pressure, agitation, panic attacks, irrational behavior, hallucinations, paranoia, delusions, and even heart attacks and strokes.
"The sellers of synthetic drugs specifically target our young people," said District Attorney General Weirich. "We will not sit back and ignore this threat to our children and to the entire community."
The following individuals were indicted by a federal grand jury in Memphis:
• Ali S. Abdelrahim, 51, Collierville, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Maged Ali-Ahmed Abdullah, 45, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Samer Abu-Atiyeh, age, address, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Kadhim Almaslouk, 43, Memphis, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Yousef Al Sharif, 39, Cordova, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Sung Su An, 44, Collierville, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If
previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Emad Bahhur, 57, Germantown, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Fayez Bahhur, 32, Cordova, TN, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and fine of up to half a million dollars.
• Lewis Cochran, 42, Olive Branch, MS, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Pamela Cochran, 42, Olive Branch, MS, charged with two counts of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Gary Geiser, 63, Memphis, charged with two counts of conspiracy to possess and distribute, one count of conspiracy to commit money laundering, one count of money laundering, and one count of structuring. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering conspiracy charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars. The money laundering charge carries a penalty of up to 10 years in prison and a fine of up to half a million dollars. The structuring charge carries a penalty of up to ten years in prison and a fine of up to half a million dollars.
• Lisa Gertz, 50, Memphis, charged with one count of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Abdul Aziz Isani, 69, Olive Branch, MS, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Nabil Mawlawi, 48, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Cameron Marcrum, 31, address unknown, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Jonathan Martin, age and address unknown, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Crystal McCracken, 26, Memphis, charged in two separate indictments with a total of three counts of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Linda Montgomery, 61, Memphis, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Fuad Murshed, 31, Memphis, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Daniel Pendergrass, 66, Memphis, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Mohammed Al Rawahneh, 28, Germantown, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• James Sexton, 38, Memphis, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Robert Snyder, 33, Memphis, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Max Suh, 40, Collierville, TN, charged with one count of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for the conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Abdel Kareem Mohammad Taha, 23, Cordova, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Max Terhune, 29, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Donald Tyler, 43, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Umar Yusuf, a/k/a “Umar Hussein”, 34, Bartlett, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
The following individuals were indicted by a federal grand jury in Jackson, TN:
• Hassan “Sam” Safa, 40, Jackson, TN, charged with one count of conspiracy to possess and distribute and five counts of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Ehab “Mark” Rezk, 37, Jackson, TN, charged with one count of conspiracy to possess and distribute, and 56 counts of structuring. If convicted he faces up to 20 years in prison and a fine of up to $1 million for the conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million. The structuring charge carries a penalty of up to ten years in prison and a fine of up to half a million dollars for each count.
• Ali Safa, 43, New York City, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Mahmoud, “Steve” Safa, 46, Jackson, TN, charged with one count of conspiracy to possess and distribute and two counts of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Mohamed Khalil, 57, Jackson, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Hussein Salloukh, 25, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Nazem Salloukh, 52, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. I If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Ahmad, a/k/a Ahmed “Eddie” Elsebae, 51, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Akram Nagi, 26, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Paula Nell Kirk, 46, Jackson, TN, charged with one count of conspiracy to possess and distribute and two counts of possession with intent to distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Irene Rosas-Montalvo, 33, Jackson, TN, charged with one count of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Hani Tarhini, 46, Panama City, FL, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
Search warrants were also served on the following businesses:
Tobacco Box, 1740 N. Germantown Pkwy., Suite 10, Cordova, TN
Tobacco Zone, 1319 N. Germantown Pkwy., Cordova, TN
Tobacco Zone, 2857 Kirby #115, Memphis, TN
Tobacco Hut Smoke Shop, 5119 Summer Avenue, #103, Memphis TN
Buddy’s Smoke, address unavailable
Cooper Young Glassworks, 906 S. Cooper St., Memphis, TN
Gonzo’s Smoke Shop, 2125 Sycamore View Rd., Memphis, TN
Smoke N More, 1775 N. Germantown Pkwy., Cordova, TN
A&P Tobacco, 3878 Austin Peay Hwy., Memphis, TN
Wizards (store), 1999 Madison Ave., Memphis, TN
Wizards (warehouse) 11 S. Morrison, Memphis, TN
Friendly Quick Stop, 5510 Stage Rd., Bartlett, TN
Tobacco Etc., 6600 Stage Rd., #128, Bartlett, TN
Tobacco Express, 4520 Summer Ave., #1, Memphis, TN
Humidor Tobacco, 1166 N. Houston Levee, #104, Memphis, TN
Whatever, 610 S. Highland, Memphis, TN
CubeSmart (Storage facility used by Whatever), 2700 Poplar, storage unit B8, Memphis, TN
Tobacco Max, 6730 Winchester Rd., Memphis, TN
Highland Smoke Shop, 571 S. Highland, Memphis, TN
Tobacco Superstore, 7464 Winchester Rd., Suite 104, Memphis, TN
Tobacco World, 4621 Quince, Memphis, TN
Longtown BP, 3965 Hwy 59, Mason, TN
Half-Price Smoke Shop, 5520 Summer Ave., Suite 104, Memphis, TN
Tobacco World Smoke Shop, 640 South Highland, Memphis, TN
Superway Gas Station, 26 Bowling Dr., Jackson, TN
Always Save Grocery Store, 419 E. College St., Jackson, TN
Superway Gas Station, 795 Airways Blvd., Jackson, TN
Superway Discount Tobacco & Gas, 1435 Riverside Dr., Jackson, TN
Q-Mart/Superway Gas Station, 2990 East End Dr., Humboldt, TN
Superway/On the Go, 151 Law Rd., Jackson, TN
Zazz Lube and Wash, 2739 N. Highland Ave., Jackson, TN
Citgo, 105/107 Carriage House Dr., Jackson, TN
McKenzies Food Fare/Market, 2857 Airways Blvd., Jackson, TN
This investigation was conducted by the DEA Memphis Drug Task Force, the United States Marshals Service, the Internal Revenue Service, the Tennessee Highway Patrol, the Tennessee Bureau of Investigation, the Memphis Police Department, the Shelby County Sheriff’s Department, the Bartlett Police Department, the Madison County Sheriff’s Department, and the Jackson Police Department. These cases are being prosecuted for the government by Special Assistant United States Attorney Chris Scruggs and Assistant United States Attorney Matt Wilson.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Statement of Attorney General Eric Holder on the Supreme Court Ruling on the Defense of Marriage ActRead the Press Release
Attorney General Eric Holder today issued the following statement regarding the Supreme Court ruling on the Defense of Marriage Act.
“Today’s historic decision in the case of United States v. Windsor, declaring Section 3 of the Defense of Marriage Act unconstitutional, is an enormous triumph for equal protection under the law for all Americans. The Court’s ruling gives real meaning to the Constitution’s promise of equal protection to all members of our society, regardless of sexual orientation. This decision impacts a broad array of federal laws. At the President’s direction, the Department of Justice will work expeditiously with other Executive Branch agencies to implement the Court’s decision. Despite this momentous victory, our nation’s journey – towards equality, opportunity, and justice for everyone in this country – is far from over. Important, life-changing work remains before us. And, as we move forward in a manner consistent with the Court’s ruling, the Department of Justice is committed to continuing this work, and using every tool and legal authority available to us to combat discrimination and to safeguard the rights of all Americans.”St. Joseph Woman Sentenced for $5 Million Conspiracy to Provide Thousands of Identity Documents to Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., woman was sentenced in federal court today for her role in a more than $5 million conspiracy that utilized the Missouri Department of Revenue license office in St. Joseph to provide more than 3,500 fraudulent identity documents to illegal aliens across the United States.
Deborah J. Flores, 47, was sentenced by U.S. District Judge Gary A. Fenner to three years and four months in federal prison without parole. Flores is also jointly and severally liable for a $5,250,000 money judgment, which represents proceeds from the conspiracy.
On Oct. 18, 2012 Flores pleaded guilty to participating in a conspiracy to transport illegal aliens, to unlawfully produce identification documents, to unlawfully transfer another person’s identification and to commit Social Security fraud from November 2009 to January 2012. Flores also pleaded guilty to aggravated identity theft.
It is estimated that more than 3,500 licenses were issued to illegal aliens by the Department of Revenue license office in St. Joseph. The state licenses could then be used by the illegal aliens to remain unlawfully in the United States, to unlawfully obtain employment and for other unlawful purposes.
The illegal aliens were usually charged between $1,500 and $1,600 for the document sets and the Missouri driver’s and non-driver’s licenses. It is estimated that more than $5,250,000 in gross proceeds was paid by illegal aliens to members of this conspiracy.
In addition to Flores, five co-defendants have been sentenced and 11 co-defendants have pleaded guilty and await sentencing.
Flores’s sister, Sherri E. Gutierrez, 46, of St. Joseph, pleaded guilty on April 10, 2013 to being a leader or manager of the conspiracy and to aggravated identity theft. Flores’s children, Jessica M. Gonzalez, 22, Sara M. Gonzalez, 21, Christina Michelle Gonzalez, 24, and Stephen E. Vanvacter, 25, all of St. Joseph, have also pleaded guilty to their roles in the conspiracy. Gutierrez’s daughter, Shayna R Vanvacter, 26, of St. Joseph, also pleaded guilty to her role in the conspiracy.
Gutierrez admitted that she assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. These identity documents were used to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office.
Flores, her children, Gutierrez and Shayna Vanvacter all admitted that they accompanied illegal aliens to the St. Joseph license office, under the guise of being translators, in order to assist them with obtaining a Missouri driver’s or non-driver’s license. They also admitted that they instructed and assisted the illegal aliens to practice memorizing the information on the birth certificates and Social Security cards and to practice signing the name on those documents so that the signatures would be similar. They also assisted the illegal aliens to prepare for potential questions from the license office employees. They also assisted the illegal aliens who did not live in Missouri by providing them with a Missouri residential address to use in order to obtain the Missouri driver’s or non-driver’s license.
Melissa L. Scallions, 27, of Hazelwood, Mo., and Jon L. Grippando, 25, of Atkins, Ark., have also pleaded guilty to their roles in the conspiracy. They each admitted that they also accompanied illegal aliens into the St. Joseph license office, under the guise of being translators, in order to assist them with obtaining a Missouri driver’s or non-driver’s license.
Christina Gonzalez was sentenced to 32 months in federal prison without parole and ordered to pay $150,000 in restitution. Jessica Gonzalez was sentenced to three years of probation. Gutierrez, Sara Gonzalez, Stephen and Shayna Vanvacter, Scallions and Grippando await sentencing.
Julio Cesar Llanas-Rodriguez, 38, of San Antonio, Texas, was sentenced to five years and one month in federal prison without parole. Llanas-Rodriguez pleaded guilty to his role in the conspiracy and to aggravated identity theft. Along with co-defendants Martin Alejandro Llanas-Rodriguez,31, and Brenda De La Cruz, 33, also of San Antonio, Texas, his role in the conspiracy was to obtain state-issued birth certificates, usually from the state of Texas, which he purchased from willing individuals. He would also obtain a Social Security card in the name of the individual on the birth certificate, so he would have a matching document set. He mailed the documents to Gutierrez and others.
Brenda De La Cruz and Martin Alejandro Llanas-Rodriguez have each pleaded guilty to their roles in the conspiracy and to aggravated identity theft and await sentencing.
Nelson Dariseo Bautista-Orozco, 27, a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to three years and six months in federal prison without parole.
Ranfe Adaias Hernandez-Flores, also known as “Miguel,” 23, also a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to two years in federal prison without parole.
Elder Enrique Ordonez-Chanas, also known as “Flaco,” 31, a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, pleaded guilty on April 8, 2013 to his role in the conspiracy. The government contends that Ordonez-Chanas is also a leader or manager of the conspiracy. In addition to the conspiracy, Ordonez-Chanas pleaded guilty to one count of aggravated identity theft.
Ordonez-Chanas admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. Ordonez-Chanas requested document sets (of a specific age range for either a male or a female that corresponded with the illegal alien who was the customer) from co-defendants De la Cruz and Julio and Martin Llanas-Rodriguez. Ordonez-Chanas then mailed the documents sets to Gutierrez and others.
Luis Adalberto Felipe-Lopez, 30, a citizen of Guatemala who was unlawfully in the United States and resided in Mt. Olive, N.C., pleaded guilty to his role in the conspiracy as well as to aggravated identity theft. The government contends that Felipe-Lopez is a leader or manager of the conspiracy. Felipe-Lopez admitted that he transported illegal aliens between St. Joseph and North Carolina. Felipe-Lopez admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. These identity documents were used to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office.
Rafael Hernandez-Ortiz, also known as “Hugo,” 31, a citizen of Mexico who was unlawfully present in the United States and resided in Owatonna, Minn., pleaded guilty to his role in the conspiracy on April 29, 2013. Hernandez-Ortiz admitted that he transported illegal aliens from Minnesota to the St. Joseph license office.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, the U.S. Postal Inspection Service and the Department of State’s Diplomatic Security Service.Serial Bank Robber Sentenced to 16 Years in Federal PrisonRead the Press Release
PHOENIX, Ariz. – On June 24, 2013, Walter David Garcia, 23, of Sinaloa, Mexico, was sentenced to 16 years in federal prison by District Judge Neil V. Wake stemming from his commission of multiple bank robberies in Phoenix, Sun City and Surprise. Garcia previously pleaded guilty to four counts of Bank Robbery, two counts of Armed Bank Robbery, and one count of Use of a Firearm During a Crime of Violence.
According to Garcia’s plea agreement, he committed seven bank robberies from August 1, 2011 through April 12, 2012. Garcia brandished a handgun during one of the robberies and also committed carjackings in connection with two of the bank robberies. He was dubbed the “Home Town Bandit” due to his affinity for wearing local sports team paraphernalia when committing the robberies.
The investigation in this case was conducted by the Federal Bureau of Investigation (FBI) and its Bank Robbery Task Force as well as the Surprise Police Department. The Bank Robbery Task Force is a partnership of FBI, the Phoenix Police Department, the Maricopa County Sheriff’s Office, the Mesa Police Department, the U.S. Attorney’s Office, and the Maricopa County Attorney’s Office, whose focus is to investigate and apprehend bank robbers in the Phoenix metropolitan area. More information on the Bank Robbery Task Force can be found at www.bandittrackerarizona.com. The prosecution was handled by Christine D. Keller and Alison Bachus, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1145
RELEASE NUMBER: 2013-047_GarciaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.usdoj.gov/usao/az/
Selling Prescription Pills for ProfitRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Marshall Bradford, 68, of Athens, Georgia, was sentenced today before the Honorable C. Ashley Royal, United States District Judge for the Middle District of Georgia in Macon, Georgia.
Mr. Bradford had earlier entered a guilty plea to possession with intent to distribute Alprazolam (Xanax), a Schedule IV controlled substance. Mr. Bradford also admitted that he was selling the Alprazolam (Xanax) for profit.
Court records revealed that Mr. Bradford was under state supervision for unlawful possession of prescription pills, which allowed authorities to search his residence after receiving information from a reliable source, that Mr. Bradford was selling prescription pills from his residence. During the search of the home, officers located $7,000.00 in cash, digital scales, and a tally sheet along with 339 Alprazolam (Xanax) pills.
Judge Royal imposed a sentence of thirty-seven (37) months imprisonment to be followed by two (2) years of supervised release and a $100.00 mandatory assessment fee. The federal sentence will run consecutive with Mr. Bradford’s probation revocation sentence in Elbert County, Georgia. There is no parole in the federal system.
The case was investigated by Athens-Clarke County Police Department, Alcohol, Tobacco, Firearms and Explosives, and the Elbert County Sheriff’s Department. Assistant United States Attorney Tamara Jarrett prosecuted the case for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Search Warrants Executed at Iowa City BusinessesRead the Press Release
On June 26, 2013, searches were conducted at two Iowa City businesses pursuant to federal search warrants. Searches were conducted at 116 E. Washington Street and 123 E. Washington Street, Iowa City. Agencies involved in these searches included the Iowa Department of Public Safety - Division of Narcotics Enforcement, the Iowa City, Iowa, Police Department, the Johnson County Drug Task Force, the Drug Enforcement Administration, and the Internal Revenue Service Criminal Investigation.
No other information will be released at this time.
(Download Press Release )
Sanborn Man Sentenced on Gun ChargeRead the Press Release
Buffalo, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Michael Wayne Finch, 61, of Sanborn, N.Y., who was convicted of being a felon in possession of a firearm, was sentenced to time served of 42 months by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on November 19, 2009, the defendant was stopped by New York State Police in Lewiston. During the subsequent execution of a search warrant, troopers recovered five firearms and multiple rounds of ammunition. Finch was prohibited from possessing any the firearms because of a prior felony drug conviction in the State of South Carolina.
The sentencing is the culmination of an investigation on the part of the New York State Police, under the direction of Major Michael Cerretto and Special Agents of the Alcohol, Tobacco, Firearms and Explosives, under the direction of Frank J. Christiano, Resident Agent in Charge.Rosebud Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on June 25, 2013 by U.S. District Judge Roberto A. Lange.
Myron Dubray, age 26, was sentenced to 60 months of imprisonment to be served consecutively with the term from a previous Pennington County felony; a $1,000 fine; 4 years of supervised release; and a $100 special assessment to the Federal Crime Victims Fund.
Dubray was indicted for the above charge by a federal grand jury on August 22, 2012 and pled guilty on April 3, 2013. The charge stems from an incident occurring on March 21, 2012, wherein Dubray was inside a house searched by law enforcement and officers found over 50 grams of methamphetamine, a Scheduled II controlled substance, on Dubray. When interviewed by law enforcement, Dubray admitted to selling methamphetamine in the past.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Dubray was immediately turned over to the custody of the U.S. Marshals Service.
Riverside County Deputy Public Defender Taken into Custody After Being Charged with Defrauding the Social Security AdministrationRead the Press Release
RIVERSIDE, California – An Upland attorney surrendered this morning after being charged with stealing approximately $129,795 in social security benefits.
Audrey Owens, 60, a deputy public defender for Riverside County, was charged in a criminal complaint filed in federal court on June 10 with theft of government property in a scheme that spanned 12 years. Owens is charged with one felony count that carries a statutory maximum penalty of 10 years in federal prison.
Owens was taken into custody by special agents with the Social Security Administration, Office of the Inspector General, Office of Investigations. Owens will make her initial court appearance this afternoon in federal court in Riverside.
From June 2000 through August 2012, according to the affidavit in support of the complaint, Owens fraudulently obtained social security benefits intended for her grandmother, who died in May 2000. After her grandmother’s death, Owens changed the address of a joint account she shared with her grandmother and continued to receive social security payments intended for her grandmother. Owens allegedly used these social security payments to pay bills and to pay expenses that included contributions to the Riverside County Employee Campaign.
Release No. 13-086
Richland County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Ivan D. Smith, 42, of Olney, IL, was indicted on June 18, 2013, on methamphetamine related charges in an Indictment returned by a Federal Grand Jury sitting in East St. Louis, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Smith was charged in a two count indictment. Count 1 charged that from on or about March 2011, until on or about June 11, 2013, in Richland County, Smith did knowingly combine, conspire, and agree with others known and unknown to the Grand Jury, to knowingly and intentionally manufacture a mixture and substance containing methamphetamine. Count 2 charged that on June 11, 2013, in Richland County, Smith did knowingly and intentionally possess equipment, chemicals, products, or materials which may be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine.
With respect to Count 1, if convicted, Smith faces up to 20 years imprisonment, up to $1,000,000 fine, and at least 3 years supervised release to follow incarceration.
With respect to Count 2, if convicted, Smith faces up to 10 years imprisonment, up to a $250,000 fine, and up to 3 years supervised release to follow his incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Richland County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Richland County Man Convicted of Methamphetamine Related OffensesRead the Press Release
Marty Cody Stacy, 46, of Calhoun, IL, was convicted in federal district court of methamphetamine related offenses following a two day jury trial, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Stacy was convicted of all five counts brought against him. Count 1 charged that from August 2010, to on or about May 30, 2012, in Richland County, Stacy conspired with others to manufacture more than 50 grams of methamphetamine. Counts 2-5 charged that Stacy possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine on the dates of May 30, 2012 (Count 2), February 8, 2012 (Count 3), October 25, 2011 (Count 4), and October 11, 2011 (Count 5).
With respect to Count 1, Stacy faces a penalty of 10 years, up to life in prison, up to an $8,000,000 fine, and no less than 8 years supervised release to follow his incarceration. With respect to each of Counts 2-5, Stacy faces up to 20 years in prison, up to a $250,000 fine, and up to 3 years supervised release to follow his incarceration.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorneys George Norwood.
Reston Man Indicted for Fleeing to Texas While on Pretrial Release for Alleged Child Pornography OffensesRead the Press Release
ALEXANDRIA, VA. – Alex Ernesto Calderon Velasquez, 27, of Reston, Va., was indicted by a federal grand jury today on a charge of failure to appear after pre-trial release.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director in Charge of FBI’s Washington Field Office; and Lt. Colonel Edwin C. Roessler, Jr., Acting Fairfax County Chief of Police, made the announcement following return of the indictment.
Velasquezfaces a maximum penalty of 10 years in prison if convicted of failing to appear.
According to the indictment and other public records, Velasquez was scheduled to plead guilty on May 24, 2013, to production of child pornography before United States District Court Judge Anthony J. Trenga in United States v. Alex Ernesto Calderon Velasquez, but did not appear as directed. Velasquez allegedly disabled his electronic monitoring bracelet, fled the area, and was later arrested on June 7, 2013, in San Antonio, Texas.
This case was investigated by the FBI Washington Field Office’s Child Exploitation Task Force, the Fairfax County Police Department, and the Harris County Constable’s Office in Texas.
Assistant United States Attorneys Alexander T.H. Nguyen, Jay V. Prabhu, and Matthew Gardner are prosecuting the case behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Registry of Motor Vehicle Officials and Service Station Owner Charged with Extortion and FraudRead the Press Release
Allegations of selling motor vehicle safety inspection licenses and equipment for profit
BOSTON – A Massachusetts Registry of Motor Vehicle (RMV) project manager, an RMV senior inspector, and an owner of two motor vehicle service stations have been charged with scheming to extort other service station owners who wanted to obtain a license to conduct motor vehicle safety inspections.
Simon Abou Raad, 50, of Tyngsboro, and Mark C. LaFrance, 51, of Braintree, and David P. Gaw, 70, of Wakefield, were charged in U.S. District Court with conspiracy to extort money under color of official right in exchange for an official license to conduct Massachusetts motor vehicle safety inspections and with participating in a scheme to commit mail fraud and honest services mail fraud. Gaw was indicted by a federal grand jury, while Abou Raad and LaFrance were charged by Information, having previously been arrested on March 11, 2013.
According to the indictment, LaFrance, project manager for vehicle safety and compliance services at the RMV, had oversight responsibilities for the entire motor vehicle inspection program within Massachusetts. Abou Raad owned service stations in Tewksbury and Tyngsboro. Gaw was a senior inspector working out of Lawrence whose duties included inspecting service stations applying for licenses. In Massachusetts, applications to obtain a license to conduct motor vehicle safety inspections are intended to be granted off a waiting list with consideration given to geographic location. An applicant for a vehicle inspection license must pay a $100 fee and the actual equipment costs about $2,500. Because the inspection network was at its capacity, the RMV was not granting new licenses off the waiting list.It is alleged that LaFrance, Abou Raad and Gaw operated what was essentially “a black market” for such licenses through the use of LaFrance’s and Gaw’s official positions. LaFrance provided Abou Raad with a list of vehicle inspection stations that had a low volume of inspections and/or were planning to surrender their license and sell the inspection equipment. Abou Raad then contacted the service station owner and offered to buy the inspection license and equipment for prices usually in the range of $5,000 to $6,000. Abou Raad then sold such licenses and equipment to service station owners desirous of acquiring a license, often identified by Gaw, for prices between $50,000 to $75,000. Abou Raad then arranged the transaction to appear as if the service station owners selling and buying the license were merging as a new business entity or with a change in ownership. Abou Raad submitted forged documentation to the RMV, ostensibly on the part of the seller, falsely representing that there had been a bona fide merger. Or he caused the applicant to falsely list the seller as a corporate officer on filings with the RMV. Although he was aware that these purported mergers were not bona fide, LaFrance either approved the issuing of a new license or permitted others in the RMV to approve the new license. After the fraudulent transaction resulting in the issuance of a vehicle inspection licenses was completed and payment was made to Abou Raad, he would split the illegal proceeds with LaFrance and would pay Gaw a kickback as a finder’s fee if Gaw had supplied the buyer or conducted a site inspection for the new owner. Through this illegal scheme, Abou Raad sold at least 10 inspection licenses and/or machines for approximately $657,000.
During the investigation, which involved the interception of electronic communications, Gaw and Abou Raad are alleged to have discussed service station owners who were likely to sell their inspection machine and license. In one particular transaction where Gaw located the potential buyer, Gaw was intercepted asking Abou Raad, “how much you got for me?” and Abou Raad responded, “two grand.”
The maximum sentence under the extortion and mail fraud statutes is 20 years in prison, a fine of $250,000 or twice the gain or loss, whichever is greater, three years supervised release, restitution, and forfeiture.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Robert Fisher of Ortiz’s Public Corruption Unit.The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Redmond Man Sentenced for Filing False Claim against the U.S. TreasuryRead the Press Release
A 69-year-old Redmond, Washington man who falsely claimed he was owed a tax refund of more than $800,000 was sentenced today in the U.S. District Court in Seattle to one year in prison, and three years of supervised release, announced U.S. Attorney Jenny A. Durkan. FRED F. FRINK was charged in September 2012, and pleaded guilty on March 13, 2013 to filing a false, fictitious, and fraudulent claim. At sentencing, U.S. District Judge Robert S. Lasnik said FRINK “had many opportunities to pull the plug” on his fraud. The judge ordered FRINK to report to prison on September 24, 2013, giving him some time to be treated for a variety of health issues.
According to records in the case, in 2009, FRINK hired a tax preparer to prepare his 2008 return. The tax preparer calculated the taxes and determined that FRINK was owed a refund of $7,413. However, FRINK failed to file that tax return and instead went to an H & R Block outlet and provided bogus forms indicating that more than $1 million had been withheld on his behalf. H & R Block calculated his return using these bogus documents, determining that he was owed $827,117. The IRS did not catch the fraud immediately, and FRINK used the money for various transactions, including the purchase of a $48,000 car. Even after FRINK was contacted by a Federal Revenue Agent, he continued to spend his ill-gotten gains instead of returning it to the U.S. Treasury.
The scheme FRINK used has been seen multiple times in the Western District of Washington and has resulted in significant prison terms. “The IRS included 1099-OID fraud on its “Dirty Dozen Tax Scams” for 2012. Although some scam participants are undeterrable, there are a number of people who will be deterred if they understand that their conduct could lead to serious penalties, including imprisonment,” prosecutors wrote in their sentencing memo.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Thomas Woods.
Randolph County NC Man Sentenced on False Impersonation and Communicating A ThreatRead the Press Release
Obtained sensitive military hardware by pretending to be a Special Forces SergeantGREENSBORO, N.C. – John Joseph Savage, age 50, has been sentenced to eight months in prison followed by three years of supervised release, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
Savage, of Asheboro, North Carolina, previously pled guilty to one count of impersonating an employee of the United States and to one count of threatening interstate communication. Savage held himself out to defense contractors as an Army Special Forces non-commissioned officer in order to purchase DBAL-A2 infrared aiming lasers, which are not available for public sale, and to purchase hardware that is subject to other restrictions, such as night vision devices that are prohibited from being exported overseas.
Savage also made a threat to a counselor working on behalf of the U.S. Department of Veterans Affairs (VA), after information was uncovered during the course of the investigation that was used by the VA to reduce Savage’s disability compensation.
The joint investigation included the U.S. Department of Defense Office of Inspector General’s Defense Criminal Investigative Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the VA Office of Inspector General, the Army Criminal Investigation Command, and the Randolph County Sheriff’s Office. Savage was sentenced in federal court in Greensboro, NC, on June 19, 2013, by United States District Judge Catherine C. Eagles. This case was prosecuted by Assistant United States Attorney Terry Meinecke.
Project SynergyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that five current and former Kansas City, Mo., residents have been indicted by a federal grand jury for their roles in a $10.5 million conspiracy to distribute synthetic marijuana, commonly referred to as K2, to customers nationwide. They are also charged with smuggling the controlled substance analogue that was used to manufacture K2 into the United States from China, as well as with related charges of mail fraud and money laundering.
“Synthetic drugs are growing increasingly popular among teenagers and young adults, but they are just as dangerous and deadly as the drugs they mimic,” Dickinson said. “We are committed to shutting down these businesses that reap illicit profits without regard for the law or public safety.”
The federal indictment joins other law enforcement operations in 35 states targeting the upper echelon of dangerous designer synthetic drug trafficking organizations. These enforcement actions, part of Project Synergy, included retailers, wholesalers and manufacturers.
Since Project Synergy began in December 2012, more than 75 arrests have been made and nearly $15 million in cash and assets have been seized – including approximately $3.4 million in cash that was seized in the local investigation. Today, law enforcement officers executed over 150 arrest warrants and nearly 375 search warrants in 35 states, 49 cities and five countries.
Derek A. Williams, 31, and Ashli Adkins, 27, both of Laguna Beach, Calif., but formerly of Kansas City, and Jason M. Sparks, 33, Charidy Blankenship, 27 and Daniel R. Williams, 27, all of Kansas City, were charged in a 43-count indictment returned under seal by a federal grand jury in Kansas City on Friday, June 21, 2013. That indictment has been unsealed and made public today following the arrests and initial court appearances of several defendants.
The federal indictment alleges that the defendants, who operated under the business name KC Incense, LLC, participated in a conspiracy to commit mail fraud between March 1, 2011 and Nov. 27, 2012. They allegedly defrauded the Food and Drug Administration and the public by making false representations that Syn Incense products (including “Blond,” “Spearmint,” “Mean Green,” “Orange,” “Fire,” “Ripped,” “Berry Faded,” “Swagg,” “Chill,” “LemonLime,” “Twisted,” “Silver,” “Blowed,” “Suave,” “Smooth,” “Watermelon,” “Vanilla,” “Lite Chocolate,” “Lite Strawberry,” “Lite Cherry,” “Lite Bubble Gum,” “Lite Orange,” and numerous other synthetic cannabinoid products) were incense, potpourri or aromas and not for human consumption. These substances, which were delivered by mail or commercial carrier, were actually synthetic cannabinoids that were intended for human consumption as a drug, according to the indictment.
The federal indictment also alleges that each of the defendants participated in a conspiracy to distribute controlled substances between March 1, 2011 and Nov. 27, 2012. The indictment alleges that they distributed controlled substance analogues.
The federal indictment also alleges that each of the defendants participated in a conspiracy to import controlled substances between March 1, 2011 and Nov. 27, 2012. They allegedly imported controlled substance analogues into the United States from sources in China. These substances were allegedly used to manufacture K2, which was distributed all over the United States. To avoid law enforcement, the indictment says, members of the conspiracy requested the international shipments of the controlled substances to be sent to different addresses in the United States on different dates and that the packages be labeled as “Brightening Agent,” “Optical Brightening Agent” and “Pigments” to decrease the likelihood of interception of the packages by law enforcement.
In addition to the three conspiracy counts, the defendants are charged together in six counts of distributing a controlled substance.
Derek Williams, Adkins, Sparks and Daniel Williams are also charged together in one count of conspiracy to commit money laundering by conducting financial transactions that involved the proceeds of unlawful activity (that is, the conspiracy to distribute controlled substances) with the intent to promote the unlawful activity. The indictment cites a series of wire transfers to various businesses and individuals.
Derek Williams, Adkins and Sparks are also charged together in 29 counts of money laundering. Derek Williams, Adkins and Daniel Williams are also charged together in two counts of money laundering.
Daniel Williams is also charged with one count of money laundering related to conducting a financial transaction in order to avoid federal reporting requirements. Daniel Williams is also charged with one count of money laundering related to conducting a financial transaction with criminally-derived proceeds that was designed to conceal or disguise the nature, location, source, ownership or control of the proceeds.
The federal indictment also contains forfeiture allegations, which would require the defendants to forfeit to the United States any property derived from the proceeds of the alleged criminal activity, including a money judgment of $10,566,306 (constituting the proceeds of the mail fraud conspiracy), the Laguna Beach residence shared by Derek Williams and Adkins and nearly $3.4 million in cash that was seized by law enforcement officers (including nearly $600,000 that was seized from Williams and Adkins during a search of their residence, more than $1.7 million that was seized from their bank accounts and a safety deposit box and $894,160 seized from Sparks’s bank accounts).
Derek Williams and Adkins would also be required to forfeit to the government a 2011 Ford F-150, a 2011 Ford Edge SUV, a 2008 Kawasaki Ninja ZX-10R motorcycle, a Glock 9mm pistol, a Walther .22-caliber pistol, a Mossberg 12-gauge shotgun and a Bushmaster .223-caliber rifle. Sparks would also be required to forfeit to the government a 2010 Chevrolet Tahoe.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by the U.S. Drug Enforcement Administration.
Synthetic Designer Drugs
Over the past several years, smokable herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular, particularly among teens and young adults, because they are easily available and, in many cases, they are more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These synthetic cannabinoids are sold at a variety of retail outlets, in head shops and over the Internet. Brands such as K2, Head Trip, Spice, Blaze, and Red X Dawn are labeled as incense to mask their intended purpose. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
While many of the designer drugs being marketed today are not specifically prohibited in the Controlled Substances Act, the Controlled Substance Analogue Enforcement Act allows these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance. This analogue provision specifically exists to combat these new and emerging designer drugs.
Download Grand Jury Indictment
Postal Worker Arrested, Charged with Stealing Diamonds, Other ItemsRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jeremy Lieberman, 34, Rochester, N.Y., was arrested and charged by criminal complaint with embezzlement by an employee of the United States. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, Lieberman worked as a mail handler with the United States Postal Service. While on the job, the defendant rifled through and stole coins, jewelry, diamonds and other valuables from packages being mailed. Lieberman then sold the stolen items at area pawn shops and gold exchanges.
The criminal complaint is the culmination of an investigation on the part of the United States Postal Service Office of Inspector General, under the direction Special Agent in Charge Robert Lapina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.Pittsburgh Man Charged in Heroin Distribution ConspiracyRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on June 25, named Robert Broadus, 23, as the sole defendant.
According to the indictment presented to the court, Broadus conspired with others to distribute and possess with intent to distribute one kilogram or more of heroin from January 2010 to November 2012. The indictment also alleges that on Jan. 30, 2013, Broadus possessed with the intent to distribute 100 grams or more of heroin.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacists Plead Guilty to Felony Misbranding of Drugs in Kentwood Pharmacy InvestigationRead the Press Release
GRAND RAPIDS, MICHIGAN – James D. Orr, 75, of Grand Rapids, Michigan, and Thomas N. Verhage, 68, of Kentwood, entered guilty pleas to a felony charge of misbranding drugs related to their conduct while employed as staff pharmacists at Kentwood Pharmacy. At plea hearings held before U.S. Magistrate Judge Joseph Scoville yesterday and today in Grand Rapids, Orr and Verhage acknowledged that they were aware that Kentwood Pharmacy restocked drugs that were returned from nursing homes and adult foster care homes. Orr and Verhage admitted that receiving such returned drugs and placing the returned drugs back on the stock shelves resulted in the drugs being placed into stock bottles and other containers which did not maintain the accurate lot numbers and expiration dates for the drugs. The pharmacists stated that, as staff pharmacists, they approved prescriptions that were prepared and dispensed to foster care and nursing homes. Orr acknowledged that some of the prescriptions contained drugs that he knew were returned to stock in violation of state and federal laws, including drugs that had been misbranded.
U.S. Attorney Patrick Miles said, “The Federal Food Drug and Cosmetic Act provides an essential regulatory framework to safeguard the public’s use of prescription drugs. These federal regulations are buttressed by explicit state laws which strictly limit the reuse of drugs which have left the control of pharmacies. The public must be able rely on pharmacists who have both professional and statutory duties to ensure that pharmacies operate in compliance with these federal and state laws regulating the handling, packaging, and distribution of drugs.”
“Patients must have confidence that the prescription drugs they receive from pharmacies are safe and effective,” said Acting Special Agent in Charge John J. Redmond of the U.S. Food and Drug Administration, Office of Criminal Investigations, Chicago Field Office. “The FDA will aggressively pursue those who cause drugs to become misbranded while held for sale, and the agency will strive to ensure that they are prosecuted to the full extent of the law.”
The investigation of this matter is ongoing and is being coordinated by the FDA, FBI, DEA, and IRS. Assistant U.S. Attorney Ray Beckering is prosecuting the case on behalf of the government.
The investigation of this case was initiated by confidential tips. If Michigan residents or medical professionals suspect possible violations of law or other dangerous practices involving pharmacies or prescription drugs, they can contact the FDA.
END
Pensacola Man Pleads Guilty to Drug Trafficking and Firearm OffensesRead the Press Release
PENSACOLA, FLORIDA – The U.S. Attorney’s Office for the Northern District of Florida announced that John W. Rudolph, 39, of Pensacola, Florida, pled guilty this morning on federal charges of possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking offense, and possession of a firearm by a convicted felon. Rudolph is scheduled to be sentenced on September 10, 2013 before Senior United States District Judge Lacey A. Collier.
According to Government filings in this case, on April 26, 2013, law enforcement officers from the Escambia County Sheriff’s Office received information that Rudolph, who had active arrest warrants, was at the Western Inn in Pensacola, Florida, with a firearm. The officers responded to the area and observed Rudolph with a black leather bag. As officers approached, Rudolph attempted to flee but was subsequently apprehended. Upon his arrest, officers found a loaded revolver, cocaine, a digital scale, and $1,000 in cash on Rudolph’s person and a black leather bag nearby containing a large quantity of individually packaged baggies of marijuana.
On the controlled substance offense, Rudolph faces up to thirty years of imprisonment, up to six years of supervised release, and up to a $6 million fine. For possession of a firearm in furtherance of a drug trafficking offense, he faces a mandatory five years of imprisonment up to life imprisonment consecutive to any other sentence, up to three years of supervised release, and up to a $250,000 fine. On the possession of a firearm by a felon, Rudolph faces a mandatory fifteen years of imprisonment up to life imprisonment, up to three years of supervised release, and up to a $250,000 fine.
This case was brought as part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. The case is being prosecuted by Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida.
Pair Indicted for Conspiracy to Distribute Bath SaltsRead the Press Release
A federal grand jury returned a six-count indictment charging two people from Northeast Ohio with conspiracy with intent to distribute bath salts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are Ryan Kralik, 32, of Newton Falls, and Ruth Eimers, 36, of Ravenna.
“People continue to come up with new ways to poison our children, as long as they think there is money to be made,” Dettelbach said. “These are very dangerous synthetic drugs that have nothing to do with baths or salt and everything to do with risky behavior.”
“These indictments deal a blow to the individuals and criminal groups involved in the distribution of a dangerous synthetic drug in Northeast Ohio. The criminal organizations behind the importation, distribution and selling of these synthetic drugs have scant regard for human life in their reckless pursuit of illicit profits," said William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Detroit, which covers Michigan and Ohio. "HSI is committed to working with our law enforcement partners to help keep this poison off the streets.”
Portage County Sheriff David Doak said: “The sale of bath salts is not going to be tolerated. We were glad to be part of this investigation.”
The defendants own and operate a website named freshsalts.com, which offers for sale 10 to 15 different types of bath salts ranging in price from $29 to $59. Customers can also purchase bulk amounts of bath salts from the web site for between $299 and $459, according to the indictment.
The bath salts are offered for sale with names similar to slang terms for cocaine and heroin, such as “Eightballz Extreme,” “Faux-Caine” and “Zombie Girls Extra Strength,” among others, according to the indictment.
Customers who purchased bath salts from the web site were required to pay with money orders or cashier’s checks to R.M. Kralik, Western Union wire transfer to “Ryan Kralik” in Warren, Ohio, of by cash sent to “FGS” to a P.O. Box in Diamond, Ohio, according to the indictment.
Eimers’ assisted Kralik with distribution shipments and bookkeeping, according to the indictment.
The defendants are charged with conspiracy to possess with the intent to distribute and distribution of bath salts, Schedule I controlled substance analogues and a Schedule I controlled substance; importation of bath salts, a controlled substance analogue, from the People’s Republic of China; attempted possession with the intent to distribute bath salts, a controlled substance analogue; use of the Internet for a controlled substance offense; distribution of bath salts, Schedule I controlled substance analogues; and possession with the intent to distribute bath salts, Schedule I controlled substance analogues.
The case is being prosecuted by Assistant U.S. Attorney Teresa Dirksen following an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Portage County Drug Task Force and Portage County Sheriff’s Office
If convicted, their sentence will be determined by the court after review of factors unique to this case, including prior criminal records, if any, their role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.Owners of Lawrence County Medical Clinics Charged with Health Care FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A federal grand jury has charged four people with health care fraud, alleging that they improperly charged government insurance programs for medically unnecessary procedures in connection with two medical clinics they owned and operated in Coal Grove, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, Bret Flinn, Resident Agent in Charge, Defense Criminal Investigation Service, Antoinette V. Henry, Special Agent in Charge, U.S. Food and Drug Administration Office of Criminal Investigations, Lawrence County Sheriff Jeff Lawless and Coal Grove Police Chief Eric Spurlock announced the charges in a four-count indictment unsealed today after agents arrested three of the defendants.
The indictment alleges that Peter Tsai, 44, owner of Advanced Family Medical Center, his father and mother, Tahsiung Tsai, 72, and Ruey Tsai, 66, who owned Watkins-Tsai Imaging, and Peter Tsai’s cousin, Wei Lih Sheih, aka “Wendy”, 41, who worked for both clinics, conspired to defraud health care benefit programs including Medicaid, Medicare and Tri-Care.
Agents arrested Peter Tsai, Tahsiung Tsai and Ruey Tsai this morning. They were taken to Cincinnati for their initial appearance before U.S. Magistrate Judge Karen Litkovitz and were released on recognizance bond after they surrendered their passports. Wei Lih Sheih also had her initial appearance and was released on a recognizance bond.
“The grand jury has charged them with performing diagnostic CT scans that were medically unnecessary, including multiple scans of the same body part for the same patient weeks apart,” U.S. Attorney Stewart said. “They are also charged with performing and billing for CT scans for medically unnecessary injections of an osteoarthritis product, Synvisc, in knees, including injection into young adults without any proper diagnosis of osteoarthritis.”
The defendants are also accused of performing and billing for CT scans related to medically unnecessary injections for purported piriformis syndrome, a problem affecting muscles in the back, and ignored and/or stopped documenting statements and complaints from patients that the injections were not working or were not wanted. The indictment also accuses them of illegally importing misbranded Synvisc from other countries including Canada and Turkey and billing government insurance programs for the injections and transferring money into an account in a Canadian financial institution in order to buy the product.
“We take allegations of health care fraud very seriously,” said Ohio Attorney General Mike DeWine. “We will not tolerate those who seek to overbill and perform unnecessary tests on patients.”
All four defendants are charged with conspiracy, which is punishable by a sentence ranging from probation to ten years in prison. Peter Tsai, Tahsiung Tsai and Ruey Tsai are also charged with health care fraud, a crime also punishable by up to ten years in prison. Peter Tsai is also charged with smuggling, a crime punishable by up to 30 years in prison and money laundering which is punishable by up to 20 years in prison.The indictment seeks forfeiture of all proceeds they received as a result of the conspiracy.
Stewart commended the cooperative investigation by agents and officers of the agencies named above, as well as Assistant U.S. Attorney Timothy Mangan, who is representing the United States in the case.
Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at 800-447-8477. To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov. Ohioans can report suspected instances of health care fraud to Attorney General DeWine’s office by calling 1-800-282-0515.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owner of Security Training Companies Indicted in Fraud SchemeRead the Press Release
Lee Coleman, Jr., 40, of Antioch, Tennessee was indicted by a federal grand jury today, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. The indictment charges Coleman with wire fraud, mail fraud, credit card fraud, and aggravated identity theft arising from his operation and management of International Executive Services LLC, Advancement Solutions LLC, and RLC Enterprises, companies that advertised security-related job training and job placement services.
“This defendant is charged with perpetrating a wide-ranging fraud that harmed thousands of victims,” said Acting U.S. Attorney David Rivera. “The U.S. Attorney’s Office is committed to protecting consumers from such scams and to bring to justice those responsible.”
"The Secret Service has a long history of working to combat financial fraud,” stated United States Secret Service Special Agent in Charge Todd Hudson. “The investigation of criminal conduct like that allegedly committed by the defendant will continue to be top priority of the Secret Service."
According to the indictment, Coleman fraudulently induced customers – many of whom are military veterans – to pay registration fees, application fees, and training fees by falsely representing that applicants would receive training in areas including counter-terrorism, counter-assault, and special operations, that applicants would be paid while in training, and that applicants would be guaranteed employment. Coleman also fraudulently induced payments by falsely representing that applicants had been accepted by fictitious training academies. Rather than using the fees paid by applicants to arrange the promised training classes or job placement, Coleman used a large portion of these funds to pay for personal expenses. The indictment further alleges that, as a result of Coleman’s misrepresentations, between 2006 and 2010, more than 2,500 victims were fraudulently induced into paying a total of at least $1,000,000 in fees. The indictment charges that many applicants paid fees exceeding $3,000 and yet were not provided with any training or employment opportunities.
If convicted, Coleman faces up to 25 years in prison for each count of wire fraud and mail fraud and 20 years in prison for each count of credit card fraud, as well as an additional two year mandatory sentence for aggravated identity theft. If convicted, Coleman also faces possible fines and the forfeiture of property derived from or used in violation the offenses charged.
The case was investigated by the United States Secret Service and the Tennessee Bureau of Investigation. Additional assistance was provided by the United States Postal Inspection Service and Metro-Nashville Police Department. The United States is represented by Assistant U.S. Attorney William F. Abely.
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
Oregon Man who Preyed on Russian Immigrants with Student Loan Scam Sentenced to 4+Years in PrisonRead the Press Release
A 35-year-old Oregon man was sentenced yesterday in the U.S. District Court in Tacoma to 54 months in prison and five years of supervised release for bank fraud, announced U.S. Attorney Jenny A. Durkan. ALEXANDER VENIAMIN SVIRIDIUK of Happy Valley, Oregon, was the leader of a scheme to profit by submitting fraudulent applications for student loans. In August 2013, U.S. District Judge Benjamin H. Settle will hold a second hearing to determine the amount of restitution SVIRIDIUK will be required to pay. The loss amount from the scheme exceeds $900,000.
According to records filed in the case, SVIRIDIUK advertised in the Russian immigrant community that he could assist people facing financial difficulties. SVIRIDIUK advised the immigrants they could get cash by applying for student loans, without any need to actually go to college. Using the immigrant’s personal information, SVIRIDIUK and his cousin would apply for student loans stating that the immigrant planned to attend either Washington State University or University of California at Irvine. SVIRIDIUK would set up an email account in the immigrant’s name, and register them for college classes at WSU or UC Irvine. The email registration would be used to convince the bank funding the loan that the person was enrolling in school. After the loan was approved, and the money delivered, the student would quickly withdraw from the university. SVIRIDIUK took a percentage of the loan funds, and sometimes additional fees as well. Between March and August of 2008, SVIRIDIUK submitted 55 student loan applications and 29 were funded for a total of $932,630. To date, the bank has only been able to recover about $30,000.
SVIRIDIUK and his cousin, Natalya Sviridiuk were indicted in December 2011. The cousin pleaded guilty in February 2012 and will be sentenced next month. SVIRIDIUK was convicted in October 2012 following a five day jury trial.
In asking for a significant prison term, prosecutors noted that SVIRIDIUK recruited clients from as far away as California and Colorado. “Sviridiuk involved numerous other individuals in his scheme and forever changed many of their lives. While some of his clients undoubtedly knew, or at least suspected, that what they were doing was wrong, it is equally clear that many did not. These individuals, many with a limited ability to read and speak English, put their trust in him. As a member of their community, they relied upon him and his expertise to help them. Instead, he took advantage of them,” prosecutors wrote in their sentencing memo.
The case was investigated by the U.S. Secret Service and was prosecuted by Assistant United States Attorney C. Andrew Colasurdo and Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute cases in federal court.
Operation Synergy Results in 18 Arrested for Synthetic Cannabinoid Distribution Operations in Austin and San AntonioRead the Press Release
Federal, state and local authorities have arrested 18 individuals, including the operator of three locations of Kash Tobacco & Novelties in Austin as well as the owner of the Best Foods #2 convenience store and Hang Ten Smoke Shop in San Antonio, for their roles in synthetic cannabinoid distribution operations announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Javier Pena, Houston Division, and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division. In addition to the arrests, authorities in the Western District of Texas have seized thousands of packages containing synthetic marijuana, cash, and an assortment of materials used to manufacture synthetic cannabinoids.
U.S. Attorney Pitman noted that these arrests based on federal charges represent a major step by federal, state and local law enforcement agencies to address the emerging problem of designer drugs in our communities before it becomes a significant law enforcement and public health hazard as it has become in other communities. “Let me be clear about this. This is not marijuana. These are chemical substances that are, to the user, completely unknown and that pose potentially serious health risks. There have been reports in our own community of people, especially young people, who have had potentially serious health effects from their use,” stated U.S. Attorney Pitman. He added, “To the owners and operators of convenience stores and smoke shops who sell illegal designer drugs, we are here to tell you that this is just the beginning of our effort to enforce the law with respect to the sale of these potentially dangerous substances. To people in the community who think that designer drugs are a safe and legal option, we hope that this will provoke an understanding not just that they are illegal, but that you are playing a game of Russian roulette when you put these unregulated and unknown chemicals into your body.”
In Austin, a five-count federal grand jury indictment, returned on June 18, 2013, and unsealed today, charges six Austin area residents with one count of conspiracy to possess with intent to distribute synthetic cannabinoids. Those six include Austin residents 45-year-old Zikar R. Ali, operator of three Kash Tobacco & Novelties in Austin; 43-year-old Mehdi Rahim Ali; 41-year-old Karim Rahim Ali ; 36-year-old Syed Ali; and; as well as Round Rock residents 40-year-old Aziz Velani and 20-year-old Azeem Choudhary. In addition, Mehdi Ali, Karim Ali, Syed Ali and Zikar Ali each face two counts of possession with intent to distribute synthetic cannabinoids while Velani and Choudhary each face one count of possession with intent to distribute synthetic cannabinoids.
“Today, the Drug Enforcement Administration and its counterparts caused a significant blow to those who allegedly distribute, operate or manufacture ‘synthetic’ or ‘designer drugs’,” said DEA Special Agent in Charge Javier Peña. “These illegal, dangerous and deadly concoctions are designed, marketed and sold to our youth under catchy names and colorful packaging; all in an effort to outwit the law. Today’s operation should put would-be traffickers on alert that DEA and its counterparts will not tolerate any type of illegal controlled substances to be distributed in our communities,” SAC Peña added.
In San Antonio, a criminal complaint was filed today against 19 individuals--12 of whom were arrested today-- charging them with one count of conspiracy to possess with intent to distribute synthetic cannabinoids. A list of the defendants is attached. According to the complaint, the defendants are responsible for the production and distribution of synthetic marijuana and bath salts in San Antonio, Houston, Austin, Dallas and Laredo as well as Tulsa and Oklahoma City, OK.
“These arrests demonstrate the FBI’s steadfast commitment to protecting the community by working long-term, joint investigations aimed at dismantling criminal organizations. The drug targeted during these investigations, synthetic marijuana, is of particular concern to the FBI and our law enforcement partners since it is specifically designed and marketed to deceive the user of its lethality, and is often targeted at those who are most vulnerable in our society; young adults, teenagers and children,” stated Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division.
Synthetic cannabinoids, also known as synthetic marijuana, “Spice,” “K2,” or “Kush,” comprise a large family of chemically unrelated structures functionally similar to THC, the primary psychoactive ingredient in organic marijuana. When ingested, synthetic cannabinoids produce psychoactive effects that are similar to the effects of THC, but often with pronounced and dangerous side-effects.
Synthetic cannabinoid products consist of organic plant matter that is sprayed with a mixture of acetone and synthetic cannabinoid chemical compounds. These chemicals are unregulated, often produced in China, and imported to the United States where they are then applied to organic plant matter to render them ingestible by smoking. Generally, the product is packaged in foil baggies which falsely state that the product is “herbal incense” and “not for human consumption” in an attempt to avoid prosecution. The product may be sold in brick and mortar “smoke shops,” convenience stores, adult book stores, as well as, over the Internet. Synthetic cannabinoid products are marketed under many different brand names, including those mentioned above, as well as, “Scooby Snax,” “Paradise,” “Mad Monkey,” “Sexy Monkey,” and “Devil Eye,”These are chemical substances that are, to the user, completely unknown and that pose potentially serious health risks. For example, from January 1, 2010 through February 28, 2013, the Texas Poison Center Network reported receiving 1,627 calls about exposure to synthetic cannabinoids and that some individuals exposed experienced symptoms to include agitation, tachycardia, elevated blood pressure, vomiting, hallucinations and confusion.
Upon conviction, the defendants face up to 20 years in federal prison and a maximum $250,000 fine per count. An indictment or a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
These investigations resulted from the efforts of the Drug Enforcement Administration and the Federal Bureau of Investigation together with the Internal Revenue Service-Criminal Investigation, Immigration and Customs Enforcement - Homeland Security Investigations, U.S. Border Patrol, Austin, San Antonio and New Braunfels Police Departments, the Texas Department of Public Safety, Texas Attorney General’s Office, Travis County District Attorney’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Williamson County Constables Office-Precinct 2, Bastrop County Sheriff’s Office, Live Oak Police Department and the Texas Alcoholic Beverage Commission. ICE Enforcement and Removal Operations also assisted with today’s arrests. Assistant United States Attorney’s Mark Marshall and Chris Peele are prosecuting the Austin case; Mark Roomberg and Jay Hulings, the San Antonio case.
New Defendant Charged in Alleged Fraud on the Philadelphia Sheriff's DepartmentRead the Press Release
PHILADELPHIA - Gerard Joseph, 36 years old, of La Jolla, California, is charged by indictment1, unsealed today, with conspiracy and wire fraud in connection with a scheme to defraud the Philadelphia Sheriff’s Office, announced United States Attorney Zane David Memeger. Joseph was arrested last night.
Joseph was in the business of buying, renovating, and selling properties in the Philadelphia area. According to the indictment, between 2007 and at least 2008, Joseph conspired with Richard Bell, charged separately, to purchase properties at Sheriff’s sale for ten percent of the sale price. Joseph would pay the ten percent deposit on the day of the sale, and pay the remaining 90-percent within 30 days of the sale. Bell, who worked in the accounting department, would remove the 90-percent payment before it was deposited into the Philadelphia Sheriff’s Office bank account, thereby, allowing Joseph to buy the properties for ten percent of the sale price. Joseph would then resell the properties at a profit and would pay Bell a fee.
Between April 2007 and November 2007, Joseph purchased approximately four properties at Sheriff’s sales through this fraudulent scheme and, in June 2008, he resold two of them receiving the profit that should have gone to the Philadelphia Sheriff’s Office.
If convicted of all charges, Joseph faces a statutory maximum sentence of 60 years in prison, a fine of up to $750,000, full restitution, and three years of supervised release. Bell pleaded guilty and is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Philadelphia District Attorney’s Office, and the City of Philadelphia Office of Inspector General. The City of Philadelphia Office of the Controller has also assisted the investigation. The case is being prosecuted by Assistant United States Attorney Sarah L. Grieb and Assistant United States Attorney Christopher Diviny.
Click here to view the indictment
1An 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, 215-861-8525New Arrest: British citizen Christopher Gardner, residing in Farmingdale, LI, arrested by FBI agentsRead the Press Release
New Arrest: British citizen Christopher Gardner, residing in Farmingdale, LI, arrested by FBI agents and charged in the attached complaint for hacking former employer Dan’s Papers web files, and disabling company’s website. Defendant Faces up to 10 years in Prison.
Nationwide Project Synergy Arrests in ArkansasRead the Press Release
Part of Largest-Ever Synthetic Drug Takedown
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and William J. Bryant, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), announced today that five individuals were arrested and charged by federal complaint in connection with Project Synergy, the largest-ever coordinated law enforcement strike against designer drugs. The federal complaint charges Amjad Kattom, age 36; Sahar Kattom, age 34; Yousef Qattoum, age 37;Abdul Aziz Farishta, age 50; and Adam Kattoum, age 20, with conspiracy to distribute and possess with intent to distribute controlled substances and analogues of controlled substances, in violation of Title 21, United States Code, Section 846. Eassa Rawashdeh, age 23, was also charged in the complaint. He was not arrested. Anyone knowing his whereabouts should contact their local law enforcement. The defendants appeared today before United States Magistrate Beth Deere for an initial appearance on the federal complaint and remain in custody.
"The arrests made here today are a part of a much larger operation in 35 states and abroad targeting dangerous designer synthetic drug trafficking organizations," stated Thyer. "We intend to send a clear message that law enforcement efforts to disrupt and dismantle drug trafficking organizations are increasingly coordinated. Street dealers to business owners, if you are operating an illegal drug organization, it's time to stop and consider the price you will pay."
"Many of these designer drugs (cannabinoids and cathinones) are unregulated and their availability makes them even more dangerous and deadly," warned Bryant. "Those who abuse designer drugs are playing Russian roulette. Users have absolutely no idea what they are putting into their bodies, nor do they understand the decrepit environments in which these drugs were made in foreign labs and further prepared for sale in the United States."
The complaint alleges that the defendants conspired to distribute synthetic cannabinoids and synthetic cathinones from several businesses in Central Arkansas, including Sunshine Food, Sunshine Mart, Woodrow Discount Store, Joseph's Discount Store, Smokey's Discount Tobacco, and Hip Hop Sportwear, from July 2012 through June 25, 2013. The affidavit alleges that multiple packages of the synthetic cannabinoids and synthetic cathinones were shipped to the defendants and multiple controlled purchases were made during the investigation.
The statutory penalty for conspiracy to distribute and possess with intent to distribute controlled substances and analogues of controlled substances is not more than 20 years in prison, a $1,000,000 fine or both, with not less than three years of supervised release to follow.
The investigation was conducted by the DEA - Tactical Diversion Squad composed of DEA Special Agents, DEA Diversion Investigators, and Task Force Officers from: Little Rock Police Department, Conway Police Department, Jefferson County Sheriff's Office, and Pine Bluff Police Department. Also taking part in the investigation was Homeland Security Investigations; the Internal Revenue Service - Criminal Investigation Division including Task Force Officers from Benton Police Department and Pulaski County Sheriff's Office; with the United States Postal Inspectors and the Little Rock Police Department. Assisting agencies were the Arkansas National Guard; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, and Firearms; the United States Secret Service; the Arkansas State Police and the Arkansas Tobacco Control Board.
A criminal complaint contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Mortgage Broker Pleads Guilty to Defrauding Lenders to Purchase Jewelry StoreRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that David Vazquez (35, Puerto Rico) today pleaded guilty to making false statements to a financial institution. Vazquez faces a maximum penalty of 30 years in federal prison.
According to the plea agreement, between November 7, 2007, and January 9, 2008, Vazquez knowingly made and induced other persons to make materially false and fraudulent statements to an FDIC-insured financial institution and other mortgage lenders, in connection with a mortgage fraud scheme. During the time frame of his offense, Vazquez worked as a mortgage broker for DVA & Associates, LLC, located in Tampa. As a mortgage broker, Vazquez’s job was to assist prospective borrowers with obtaining mortgage loans to purchase real property.
In 2007, Vazquez decided to purchase a jewelry store in Tampa, along with two other individuals. To finance the purchase of the jewelry store, Vazquez and his partners decided to purchase three condo units at The Arbors at Carrollwood. The Arbors was a 390-unit condominium complex located at 3939 Ehrlich Road, in Tampa. Vazquez was aware of the fact that purchasers of condo units at the Arbors were being given tens of thousands of dollars in cash-back incentives.
Vazquez listed material misrepresentations, including employment, gross monthly income, assets and liabilities, and intent to occupy the condo units as a primary residence on the loan applications. As a result of their scheme, Vazquez and his partners received more than $270,000.00 for purchasing three condo units at the Arbors. These funds were then used to purchase the jewelry store. The properties all went into foreclosure. Ultimately, Vazquez and his co-conspirator business partners defrauded the mortgage lenders out of approximately $645,872.00.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Mike Alfons Campa and Suzette Gulyas Gal Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on June 25, 2013, in Helena, after a federal district court trial before U.S. District Judge Sam E. Haddon, MIKE ALFONS CAMPA, age 55, and SUZETTE GULYAS GAL, age 55, residents of Yorba Linda, California, were found guilty of contempt. Sentencing is set for August 26, 2013. They are currently detained.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case for the United States.
They each face possible penalties of 6 months in prison and a $5,000 fine.
The investigation was conducted by the Federal Bureau of Investigation.
Miami-Dade Resident Sentenced in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Steven Steinberg, Chief, City of Aventura Police Department, and Ray Black, Chief, City of Miramar Police Department, announce today’s sentencing of defendant Braxton Geovanni Bell, 21, of Miami Gardens, Florida. Bell was sentenced to 34 months in prison, to be followed by 3 years of supervised release.
On February 7, 2013, Bell was convicted at trial of one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). On April 16, 2013, Bell pled guilty in a separate criminal case to one count of access device fraud.
According to testimony at trial and court documents, Bell used the names and social security account numbers of unwitting victims to submit fraudulent tax returns to the Internal Revenue Service. Based on these fraudulent returns, Bell obtained tax refunds on prepaid debt cards, and then used the money to purchase luxury items, including a Mercedes Benz, a custom made gold chain, a Rolex “Presidential” Gold watch, a bracelet, and expensive furniture.
Mr. Ferrer commended the investigative efforts of IRS-CI, the City of Aventura Police Department, and the City of Miramar Police Department. The case is being prosecuted by Assistant U.S. Attorneys Gera R. Peoples, Michael Nadler, and Peter Forand.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Media AdvisoryRead the Press Release
WHAT:
U.S. Attorney Edward L. Stanton III; Resident Agent-in-Charge of the Drug Enforcement Administration’s (DEA) Memphis office Brian Chambers; Shelby County District Attorney General Amy Weirich; and other federal state and local law enforcement officials will be announcing today’s execution of arrest warrants and search warrants for multiple businesses and residences throughout West Tennessee. DATE:Wednesday, June 26, 2013
TIME:
2:30 p.m.
WHERE:
Main Conference Room
United States Attorney’s Office
167 N. Main Street, Suite 800
Memphis, TN 38103MISCELLANEOUS:
All media members must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media are requested to RSVP to [email protected]. The conference room will be available for media to set up at 2:15 p.m. and must be pre-set by 2:25 p.m. Press inquiries regarding logistics should be directed to Rodney King at 901-969-0344.
Reporters in the Jackson area can attend the press conference via VTC in the Main Conference Room of our Jackson, TN office.
109 S. Highland Ave, Suite 300
Jackson, TN 38130Follow the USAO-Western District of Tennessee on Twitter @WDTNNews