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Tuesday 18 June 2013
Wichita Man Sentenced for Bank RobberyRead the Press Release
WICHITA, KAN. – A Wichita man has been sentenced to 77 months in federal prison for bank robbery, U.S. Attorney Barry Grissom said today.
Billy L. Wilson, 52, Wichita, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on March 1, 2013, he robbed the Commerce Bank branch at 456 N. Main Street in Wichita. Wilson gave the teller a note saying he was robbing the bank and warning her that he had a gun. He took the money and left the bank.
After surveillance photos taken during the robbery were made public investigators received information identifying Wilson as the robber and saying he lived in an apartment complex in the 800 block of south Hydraulic. Law enforcement officers attempted to locate him and were able to speak to him briefly on the phone. Later that day, he turned himself in at the Sedgwick County Jail.
Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.
White River Woman Charged with Simple Assault and Aiding and AbettingRead the Press Release
United States Attorney Brendan V. Johnson announced that Ashley Vanderwalker, age 24, of White River, South Dakota appeared before U.S. Magistrate Judge Mark A. Moreno on June 17, 2013, and pled guilty to Simple Assault and Aiding and Abetting.
The maximum penalty upon conviction is 6 months in custody, a $5,000 fine, or both; and $10 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 3, 2011 when Vanderwalker and others assaulted the victim with a bat.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for August 12, 2013. The defendant was released pending sentencing.
Vern Thomas Gardipee Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 18, 2013, before U.S. Magistrate Judge Keith Strong, VERN THOMAS GARDIPEE, a 49-year-old resident of Box Elder and an enrolled member of the federally recognized Chippewa Cree Indian Tribe, pled guilty to sexual abuse of a minor. Sentencing has been set for September 25, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On April 27 and 28, 2012, GARDIPEE sexually abused a young girl. GARDIPEE got into bed with the victim and sexually abused her. The victim tried to get away from GARDIPEE and eventually got GARDIPEE to stop his advances but not until after sexual contact occurred.
GARDIPEE faces possible penalties of 15 years in prison, a $250,000 fine and lifetime supervision.
The investigation was conducted by the Federal Bureau of Investigation.
Two Defendants Convicted in Manhattan Federal Court of Various Racketeering, Murders, Attempted Murders, Narcotics, and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced that ANTHONY BOYKIN and JUSTIN SIMMONS were convicted yesterday in Manhattan federal court of various racketeering, murder, attempted murder, narcotics conspiracy, and firearms offenses following a four-week jury trial before the U.S. District Judge Colleen McMahon. The jury convicted BOYKIN and SIMMONS of charges arising out of their involvement, from 2006 through 2013, in the criminal activities of the Bloods gang (the “Newburgh Bloods”) – a violent street gang that was involved in drug-trafficking and multiple acts of violence, including murders and attempted murders, in Newburgh, New York.
Manhattan U.S. Attorney Preet Bharara said: “The Bloods in Newburgh – including Anthony Boykin, the gang’s leader, and Justin Simmons, a soldier – have laid siege to that city, making victims not only out of those who they shot, stabbed, and killed, but also out of every Newburgh resident who has had to live with the terror wrought by the Bloods’ legacy of drugs and violence. These convictions show that it does not matter if you are at the top of a gang or merely work within it – if you choose to engage in drug-dealing and gang violence, you will be held accountable for your actions and deprived of your liberty.”
According to the Superseding Indictment and evidence admitted at trial:
From 2006 through 2013, BOYKIN was a member, and then leader, of a racketeering enterprise – the Newburgh Bloods. As part of his participation in that enterprise, BOYKIN conspired to murder Lamont Young, a local marijuana dealer, which culminated in Young’s murder on March 4, 2009. He participated in two additional conspiracies to commit murder, which culminated in the vicious attacks of Ishmael Gillian and David Freeman on August 24, 2008 and September 20, 2008, respectively. BOYKIN also robbed a suspected narcotics dealer in August 2009.
From 2007 through 2011, BOYKIN and SIMMONS, a soldier of the Newburgh Bloods, participated in a conspiracy to distribute crack cocaine on Landers Street in Newburgh, New York and throughout the city. They also possessed firearms in connection with their drug trafficking and racketeering activities with the Newburgh Bloods gang.
BOYKIN was convicted of one count of racketeering, one count of racketeering conspiracy, three counts of conspiracy to murder in aid of racketeering, one count of murder in aid of racketeering, one count of assault in aid of racketeering, one count of conspiracy to distribute or possess with intent to distribute 280 grams and more of crack cocaine, and two counts of possessing, using, and carrying a firearm in furtherance of a crime of violence or a drug-trafficking crime. He was acquitted of one count of murder, one count of conspiracy to commit murder, two counts of attempted murder, one count of assault, and two counts of possession, use, and carrying a firearm in furtherance of a crime of violence or a drug-trafficking crime. BOYKIN faces a mandatory minimum sentence of life in prison, and is scheduled to be sentenced on November 14, 2013, at 2:00 p.m. before Judge McMahon.
SIMMONS was convicted of one count of racketeering conspiracy, one count of conspiracy to distribute or possess with intent to distribute 280 grams and more of crack cocaine, and two counts of possession, use, and carrying a firearm in furtherance of a crime of violence or a drug-trafficking crime. He was acquitted of one count of murder, one count of conspiracy to commit murder, one count of assault, and one count of possession, use, and carrying a firearm in furtherance of a crime of violence or a drug-trafficking crime. SIMMONS faces a mandatory minimum sentence of 50 years in prison and a maximum sentence of life in prison. He is scheduled to be sentenced on October 17, 2013, at 4:00 p.m. before Judge McMahon.
Mr. Bharara praised the outstanding efforts of the Hudson Valley Safe Streets Task Force, including the FBI, the City of Newburgh Police Department, the Orange County Sheriff’s Office, and the New York State Police, in connection with this investigation.
Assistant United States Attorneys Michael D. Maimin, Amie N. Ely, and Emil J. Bove III are in charge of the prosecution.
Two Charged for Copper Wire Theft at Sea-Tac AirportRead the Press Release
Two men who allegedly stole thousands of feet of copper wire from runway light towers at Seattle-Tacoma International Airport are in custody facing federal charges, announced U.S. Attorney Jenny A. Durkan. JERAMIE HARMS, 28, will make his initial appearance in U.S. District Court in Seattle today at 1:30 p.m. TIMOTHY LYNCH, 50, is in custody in King County, Washington, on an unrelated charge and will be scheduled for his appearance in the coming weeks. The theft was discovered on February 12, 2013, when a Port of Seattle employee noticed damage to the fence surrounding the runway light structures near South 188th Street and Des Moines Memorial Drive. In total, approximately 7,200 feet of copper cable was stolen from the FAA light towers, rendering them inoperable and potentially posing a threat to airline safety.
According to the criminal complaint unsealed today, HARMS and LYNCH entered a secured area of Sea-Tac airport and removed copper cable from the light towers. HARMS first came to the attention of law enforcement in connection with a King County burglary. While being questioned by law enforcement, information was developed linking HARMS and LYNCH to the wire theft. The copper wire cost more than $77,000 when it was installed in 2008. HARMS was arrested yesterday afternoon.
The men are charged with theft of public property which is punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI Safe Streets Task Force which includes officers from the Port of Seattle Police Department, the Seattle Police Department and the King County Sheriff’s Department. The case is being prosecuted by Executive Assistant United States Attorney Thomas Bates.
Topeka Man Sentenced on Gun, Drug ChargesRead the Press Release
TOPEKA, KAN. – A Topeka man has been sentenced to 30 months in federal prison on federal gun and drug charges, U.S. Attorney Barry Grissom said today.
Terrance Anthony Dean, Jr., 23, Topeka, Kan., pleaded guilty to one count of possession of marijuana with intent to distribute and one count of unlawful possession of a firearm after being charged with a felony. In his plea, he admitted that on Sept. 19, 2011, law enforcement officers were looking for him to serve an arrest warrant. On that day law enforcement officers saw him attempt to sell marijuana. They arrested him after a foot chase. In his car, they found marijuana and a 12 gauge shotgun. He was prohibited from possessing a firearm because he already had been charged in Douglas Country District Court with felony attempted robbery.
The 30-month federal sentence is to be served consecutively to the sentence he is serving in the attempted robbery case.
Grissom commended the Shawnee County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.
Three More Defendants Plead Guilty in New Castle Oxycodone Distribution RingRead the Press Release
PITTSBURGH, Pa. - Three residents of New Castle, Pa., pleaded guilty in federal court to a charge of violating the federal drug laws, United States Attorney David J. Hickton announced today.
Christopher Klingensmith, 38; James Cracraft, 39; and Thomas Klingensmith, Jr., 40, pleaded guilty to one count of conspiracy before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that between September 2008 and June 2011, a drug ring operated in the New Castle area, selling to drug users on the street nearly 50,000 highly-addictive narcotic pills containing oxycodone. Christopher Klingensmith was the leader of the drug ring here, which was supplied ocycodone by co-defendant Larry Dorsey from Florida. Dorsey transported an estimated 5,000 to 10,000 oxycodone on each of six trips he made to Western Pennsylvania. Witnesses saw Christopher Klingensmith with cantaloupe-sized bags of oxycodone, containing thousands of pills.
Drug cash was seized during the investigation, including more than $158,000 from a car stopped in North Carolina in September 2010. The car was being driven by co-defendant David Wooley, with Thomas Klingensmith, Jr., as the passenger. Larry Dorsey told an undercover Drug Enforcement Administration (DEA) agent that Christopher Klingensmith had delivered $120,000 in drug proceeds to him on one date.
James Cracraft served as a seller of oxycodone, and as a look-out for the group. Thomas Klingensmith, Jr. assisted his brother in distributing the pills. With 30 mg. oxycodone tablets commonly selling on the street for $25 - 35 per pill, the nearly 50,000 oxycodone distributed in this conspiracy had a street value of between $1.25 million and $1.75 million.
Of the 11 defendants charged in the superseding indictment, nine have now entered guilty pleas, with two others awaiting trial.
Judge Schwab scheduled sentencing for Oct. 15, 2013 at 9:30 a.m. for James Cracraft: Oct. 21, 2013 at 9:30 a.m. for Thomas Klingensmith, Jr.; and Oct. 21, 2013 at 10:30 am for Christopher Klingensmith. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The DEA, the New Castle Police and the Pennsylvania State Police conducted the investigation that led to the prosecution of Christopher Klingensmith, James Cracraft, and Thomas Klingensmith, Jr.
Three Ashland Residents Arrested for Human TraffickingRead the Press Release
Three Ashland residents held a cognitively disabled woman and her child against her will for more than two years and forced her perform manual labor for them, law enforcement officials said.
The conspiracy included beating the disabled woman and her child, threatening the woman with a firearm, threatening to kill the woman and her child, threatening the woman and her child with large snakes, forcing them to sleep in a padlocked room with a large iguana and other actions, according to charges filed in U.S. District Court.
Jordie L. Callahan, 26; Jessica L. Hunt, 31, and Daniel J. Brown, AKA D.J. Brown, 33, were all arrested today and charged with forced labor. Callahan is charged with an additional count of tampering with a witness.
“We are yet again reminded that modern-day slavery exists all around us,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “One of our nation’s core values is freedom, yet this woman and her child were denied freedom for two years. The victims in this case endured violence, threats, sub-human living conditions and other horrific acts.”
“These defendants violated the victim’s most basic civil right, freedom, by exploiting her most basic instinct, the protection of her child,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI continues to aggressively pursue and bring to justice those individuals who abuse and harm innocent members of our community.”
“The streets are a lot safer with these folks locked up,” Ashland Police Chief David Marcelli said. “Cooperation with the FBI and U.S. Attorney’s Office was key to the successful arrest of these individuals.”
Ashland County Prosecutor Ramona Rogers said: “We are pleased to cooperate with federal authorities, particularly when it provides for a more severe punishment for these defendants.”
All three are accused of participating in a conspiracy between May 2011 and October 2012 in which they held a woman and her juvenile child in a condition of forced labor and involuntary servitude.
An affidavit from FBI Special Agent Michael Sirohman was filed along with the charges.
The victims in this case are identified only as S.E. and her juvenile child. S.E. suffered from a cognitive disability and received monthly public assistance payments, according to the affidavit.
Callahan and Hunt recruited S.E. and her child to live with them in their two-bedroom apartment in Ashland. Hunt’s four juvenile sons also lived at the house, along with numerous pit bull dogs, large snakes and other reptiles, according to the affidavit.
Callahan and Hunt monitored S.E. and her child’s activities with a baby monitor, according to the affidavit.
Hunt was in possession of all of S.E.’s government benefits cards and the PINs. Hunt normally used nearly all of the money on the cards and rarely gave any money to S.E., according to the affidavit.
Callahan and Hunt forced S.E. to clean the house, do laundry, walk to the store to do their shopping and care for their numerous pit bulls and reptiles. S.E. was timed when she went to the store and was not allowed to bring her child with her, according to the affidavit.
Callahan and Hunt beat S.E. and her child, threatened their lives, denied them food and threatened them with the pit bulls and reptiles, according to the affidavit.
At various points, Callahan threated S.E. with a gun. S.E. and her child initially were forced to sleep on a cement floor in the basement with no mattress. Later they were moved to a room upstairs, again with no bed or mattress. The child was kept in the room all day and at night the room was padlocked to keep S.E. and her child from escaping, according to the affidavit.
S.E. and her child were only allowed to eat canned food or what was left over after Callahan, Hunt and Hunt’s children ate. S.E. was not allowed to feed fruit or vegetables to her child, but Callahan and Hunt ordered S.E. to feed fruit and vegetables to the iguana that freely roamed in their bedroom. On another occasion, S.E. said her child had not eaten all day, but Callahan got a plate of food and gave it to a dog rather than letting them eat, according to the affidavit.
Callahan and Hunt also repeatedly taunted and threatened S.E. and B.E. with injury from the couple’s snakes, including a poisonous coral snake, a ball phython and a Burmese python that weighed 130 pounds, according to the affidavit.
In August 2011, the conspirators slammed S.E.’s hand with a rock in order to obtain pain medication. She was taken to the emergency room and returned with a prescription for pain medication, according to the affidavit.
In December 2011, Callahan and Hunt injured S.E.’s back and then forced her to turn over the prescription for Vicodin she received for her back injury, according to the affidavit.
On another occasion, Callahan kicked S.E. in the hip, and then he and Hunt forced S.E.to turn over the prescription for Vicodin she received for her hip injury, according to the affidavit.
When S.E. attempted to flee the apartment, Brown deceived S.E. into accompanying them in their vehicle and returned her to Callahan and Hunt’s apartment, according to the affidavit.
In October 2011, Callahan and Hunt forced S.E. to hit her child, threatening to inflict much greater physical harm on both if S.E. did not do so. Callahan and Hunt used Callahan’s mobile phone to record S.E. purportedly abusing her child via the baby monitor.
About a year later, S.E. was arrested for shoplifting a candy bar. She asked to be taken to jail, said she was living with Callahan and Hunt and that they “were mean to her,” according to the affidavit.
A police officer went to Callahan and Hunt’s apartment. When the officer advised Callahan that S.E. would not return, Callahan told police he believed S.E. was abusing her child and showed them the mobile phone video from October 2011.
S.E. later told police that Callahan had showed her video recordings of her beating her child after being instructed to do so by Callahan and Hunt. Callahan told S.E. that if she “messed up” or told police about her living conditions, Callahan would show the videos to police and have her daughter taken away, according to the affidavit.
The case was prosecuted by Assistant United States Attorneys Chelsea Rice and Thomas E. Getz following an investigation by the FBI and Ashland Police Department and assistance from the Ashland County Prosecutor’s Office.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
A charge 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.
The investigation is ongoing.Thirteen in Custody on Federal Cocaine Charges in Tennessee and AlabamaRead the Press Release
CHATTANOOGA, Tenn. — A total of 13 people from Eastern Tennessee, and Huntsville, Ala., have been arrested by agents of the Drug Enforcement Agency (DEA). All are believed to be part of in a large cocaine trafficking organization out of Fayetteville, Tenn., in Lincoln County.
Calvin Fontaine Hadley, 36, of Fayetteville, Tenn., was arrested in May 2013. On June 17, 2013, 10 additional individuals were arrested in Fayetteville, Tenn. They appeared before U.S. Magistrate Judge Susan K. Lee on June 18, 2013, for initial appearances and arraignments. Those individuals include: Deonzsanique Bryson, 23, Darryl Brown, 51, Tanica Berry, 31, Dominique Brooks, 25, Tony Brown, 22, Ophelia Harper, 61, Jermaine Hicks, 27, Willie Hockett, 25, Jeffery Mires, 36, and Doris Stewart, 57, all from Fayetteville, Tenn.
Two more individuals, Ortegus McCrary, 36, and Terrance Nance, 57, of Huntsville, Ala., were arrested in Huntsville and appeared before a U.S. Magistrate Judge in the Northern District of Alabama, on June 17, 2013. Detention hearings have been set for both on June 20, 2013, in U.S. District Court, Northern District of Alabama.
Others are pending arrest on federal charges. Their names and other pertinent information will be released upon their initial appearance before the U.S. Magistrate Judge.
A jury trial for all of these individuals is scheduled for August 27, 2013, in the U.S. District Court, Eastern District of Tennessee, before Honorable Harry S. Mattice, U.S. District Court Judge.
All were charged by a federal grand jury sitting in Chattanooga, Tenn., with conspiring to distribute, and possess with intent to distribute more than five kilograms of cocaine and more than 280 grams of cocaine base (crack). If convicted of this offense, each faces a minimum of 10 years and maximum of life in prison. Some face additional counts relating to money laundering and cocaine distribution.
This case has been investigated by the DEA, Tennessee Bureau of Investigations, and Lincoln County Sheriff’s Department. Agents and officers from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland Security, Investigations Division, 17th Judicial District Drug Task Force, Fayetteville Police Department and Sheriff’s Departments for Franklin, Giles, and Marshal County, Tenn., and Madison County, Ga., have assisted with the investigation and arrests. Assistant U.S. Attorney Terra Bay is representing the United States in court.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Texas Man Pleads Guilty to Corrupt Interference with the IRS Laws and Filing False LiensRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Fred Neal, Jr., age 80, of Marshall, Texas pled guilty before United States District Judge Billy Roy Wilson to Counts Two and Three in a federal Indictment charging he corruptly interfered with the Internal Revenue Laws and filed false liens against government employees. Count One of the Indictment charging conspiracy to defraud the United States was dismissed. He was not detained.
Neal was indicted on February 2, 2011. The Indictment alleged that Neal and his now deceased wife, Doris, owed over $860,000 in federal income taxes for tax years 1987 to 1994. The Internal Revenue Service (IRS) initiated legal action to collect the taxes owed. In response, Neal and Doris were alleged to have conspired together to file repeated false and fraudulent tax forms to impede the IRS from collecting the debt. The Neals mailed false IRS 1099 tax forms, misrepresenting that the IRS officials, court and other individuals had each received personal income of $7 to $210 million. The letters were sent to targeted "recipients" in Little Rock, in Texas and in the District of Columbia.
The Indictment alleged in Count Two that the Neals attempted to intimidate, harass and attack the financial integrity of government employees and other officials they believed to be party to the legal actions taken to collect the tax debt they owed. This harassment included filing numerous fictitious legal and tax documents meant to attack the personal financial integrity of their targets. These fictitious documents were filed against employees of the IRS, Department of Justice tax attorneys, Arkansas federal judges, a United States Attorney for the Western District of Arkansas and the Secretary of the United States Treasury. Mr. Neal filed fictitious IRS 1099 tax forms affecting more than twenty people. By filing these forms, he misrepresented that the government employees had received personal income reportable to the IRS totaling more than one billion dollars. In addition, Mr. Neal filed false non-performance liens and false Maritime liens against officials totaling more than one billion dollars.
Count Three of the Indictment alleged slander of title against a federal official by filing false liens. Starting in May 2008, the Neals filed in the public record of Arkansas false liens and encumbrances against the real and personal property of officers and employees of the United States on account of their performance of their official duties. The Neals also filed liens against county officials, an insurance executive, banks, and attorneys in Arkansas, Georgia and Texas. Mr. Neal's filing of non-performance liens and fraudulent Maritime liens against 17 federal employees totaled more than one billion dollars.
Neal faces a statutory penalty for corrupt interference of not more than three years imprisonment with a possible fine of up to $250,000 and not more than one year supervised release. The statutory penalty for filing false liens is not more than 10 years imprisonment and a fine of not more than $250,000 or both, followed by not more than three years supervised release.
The investigation was conducted by the Treasury Inspector General for Tax Administration.
St. Paul Felon Indicted for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier today charges a 32-year-old felon from St. Paul with possessing a nine-millimeter, semi-automatic pistol. The indictment, which was filed on May 7, 2013, charges Desmen Lee Parker with one count of being a felon in possession of a firearm. The indictment was unsealed following Parker’s appearance today in federal court.
The indictment alleges that from an unknown date through July 27, 2012, Parker possessed the pistol. Because he is a felon, Parker is prohibited under federal law from possessing a firearm or ammunition at any time. His prior Hennepin County convictions include receiving stolen property (2001) and being a felon in possession of a firearm (2001). In addition, Parker was convicted in Ramsey County for theft (2000) and receiving stolen property (2006). He was also convicted in Eau Claire County, Wisconsin, for armed robbery in 2007.
If convicted, Parker faces a potential maximum penalty of ten years in prison. Any sentences will be determined by a federal district court judge. This case is the result of an investigation by the Safe Streets Task Force. Safe Streets is a FBI-sponsored task force that focuses on combating violent street crime as well as gang and drug-trafficking offenses. This case is being prosecuted by Assistant United States Attorney Allen A. Slaughter.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.South Jersey Woman Sentenced to Prison for Defrauding FEMA After Major DisasterRead the Press Release
CAMDEN, N.J. – An Atlantic City, N.J., woman was sentenced today to 27 months in prison for stealing benefit money from FEMA through fraud relating to a presidential disaster declaration for the state of New Jersey after the nor’easter in 2010, U.S. Attorney Paul J. Fishman announced.
Debbie Hicks, 52, previously pleaded guilty to an information charging her with disaster benefits fraud and making false statements to the U.S. Department of Housing and Urban Development. She entered her guilty plea before U.S. District Judge Joseph E. Irenas, who imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Due to FEMA’s size and the large number of victims typically resulting from a disaster, FEMA frequently has been targeted in disaster fraud schemes by individuals or groups seeking FEMA monetary assistance for benefits to which they were not entitled.
On April 12, 2010, Hicks filed an application with FEMA seeking federal rental assistance under FEMA’s Individual Assistance Program, claiming that her apartment in Atlantic City was damaged as a result of the severe storm and was unfit for occupancy.
On April 13, 2010, a FEMA inspector confirmed Hicks’ occupancy and the damage to her rental unit, and declared her apartment uninhabitable. FEMA then awarded Hicks $923 per month in rental assistance. In her application to FEMA Hicks failed to disclose that her rent was being paid by the Atlantic County Department of Family and Community Development.
During the plea hearing, Hicks admitted that she lied on various forms that were sent to FEMA in order to continue receiving money. As a result of the fraud, Hicks received $15,691 in FEMA emergency rental assistance funds to which she was not entitled.
Hicks also admitted that, while she was defrauding FEMA, she lied to the Housing Authority and Urban Redevelopment Agency of the City of Atlantic City, which administers housing funds on behalf of U.S. Department of Housing and Urban Development (HUD). Hicks admitted that, when she applied for Section 8 housing, she failed to tell the housing authority that she was receiving funds from both FEMA and the Atlantic County Department of Family and Community Development. Hicks also admitted she lied about her prior criminal record and the fact that she had used other names and Social Security numbers.
In addition to the prison term, Judge Irenas sentenced Hicks to serve three years of supervised release and ordered her to pay $15,691 in restitution to FEMA and $7,200 to HUD.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in Charge Gregory Null, and special agents of HUD, Office of Inspector General, under the direction of Special Agent in Charge Joseph W. Clarke, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Smith County Snake Expert Guilty of Smuggling Peruvian ReptilesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 63-year-old Tyler, Texas eco-tourism guide has pleaded guilty to smuggling live snakes into the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
William Lamar pleaded guilty to an Information charging him with importing wildlife taken in violation of foreign law today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on Aug. 29, 2012, Lamar imported seven live snakes that he had purchased at a market in Lima, Peru. Lamar smuggled the snakes in his jacket on flights from Lima to Miami, Florida and then to Dallas/Ft. Worth International Airport. The next day, after TSA agents refused to let him board a commuter plane to Tyler with the snakes, Lamar traveled aboard a ground transport shuttle from DFW to his home in Tyler. Game Wardens went to Lamar’s residence and seized the snakes.
Peruvian law prohibits the exportation of wild live animals coming from the forest or jungle region unless the exporter has a properly issued ministerial order authorizing the export for either scientific investigation or for cultural diffusion. Lamar admitted that he knew that Peruvian law prohibited the unauthorized exportation of wildlife in a jacket without proper authorization.
Lamar faces up to five years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the U.S. Fish and Wildlife Service, the Texas Parks and Wildlife Service, the Transportation Security Administration, and the Dallas Fort Worth International Airport Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorney Jim Noble.
Shyann Marie Dupree Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 18, 2013, before U.S. Magistrate Judge Keith Strong, SHYANN MARIE DUPREE, a 36-year-old resident of Poplar and an enrolled member in a federally-recognized tribe, pled guilty to burglary. Sentencing has been set for September 25, 2013. She is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On April 18, 2012, DUPREE broke into a house on the Fort Peck Indian Reservation with three others when they knew the homeowner was out of town. The group stole televisions, jewelry, and other items. DUPREE admitted to entering the house and filling a suitcase with purses, while others removed televisions and placed them in a vehicle waiting outside the house. DUPREE admitted that another individual helped her sell the purses and that DUPREE used the money to buy pills.
DUPREE faces possible penalties of 20 years in prison, a $50,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Fort Peck Tribes Criminal Investigation Division and the Poplar Police Department.
Scarsdale Woman Indicted for Manufacturing MarijuanaRead the Press Release
An indictment was filed this afternoon in federal court in the Eastern District of New York charging Andrea Sanderlin of Scarsdale, New York, with manufacturing and possessing marijuana with intent to distribute it and maintaining a drug-involved premises. Sanderlin, 45, was arrested on May 20, 2013, when federal agents and detectives seized over 2,800 marijuana plants, large quantities of dried marijuana, and state-of-the-art marijuana growing equipment from a marijuana grow house in Maspeth, Queens.1
The indictment was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division; James T. Hayes, Jr., Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations (HSI); and Raymond W. Kelly, New York City Police Commissioner.
As charged in the indictment, Sanderlin operated a warehouse in Maspeth, Queens, which contained a sophisticated operation to grow and process marijuana. The warehouse, which was located in a mixed industrial and residential neighborhood, contained state-of-the-art lighting, irrigation, electrical, and ventilation systems to facilitate growing the marijuana. Initial estimates by the DEA indicate that the marijuana in the warehouse at the time of the search was worth in excess of $3 million. The warehouse used unusually high amounts of electricity, in some cases generating bills exceeding $9,000 a month. Law enforcement agents seized the equipment, approximately 2,800 marijuana plants, and large quantities of dried marijuana from the warehouse.
“Sanderlin could have focused her talents on building a legitimate business enterprise to support her family and serve as a role model for her children. Instead, she allegedly chose to inhabit the shadowy underworld of large-scale drug dealers, using drug proceeds to maintain her family’s façade of upper middle class stability. Sanderlin turned a commonplace warehouse in the heart of Queens into a sophisticated center for growing massive quantities of marijuana for distribution. We are committed to investigating and prosecuting organized drug activity in our communities, no matter who runs the organization or how well it is hidden. Those who use our neighborhoods to grow and introduce illegal drugs into the community will face the full force of the law,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the agents and detectives who investigated the case, and added that the government’s investigation is ongoing.
DEA Special Agent-in-Charge Crowell stated, “Hidden in a warehouse in Maspeth, Queens, this $3 million distribution operation was uncovered as part of a Strike Force investigation. Andrea Sanderlin is alleged to have overseen this operation which produced close to 3,000 marijuana plants to be distributed throughout the New York area. Marijuana is the most abused drug in the nation with 6.5% of high school seniors smoking marijuana on a daily basis. The high THC purity continues to derail more and more teens and young adults into substance abuse programs due to its ever increasing potency. I commend the joint Strike Force team for their steadfast work in identifying and removing this threat to our kids, our families, and our communities.”
“There’s really no difference whether you’re a suburban mom growing marijuana in a warehouse in Queens, or a cartel member making cocaine in the jungles of Colombia -- manufacturing and distributing illegal narcotics comes at a hefty price when you are caught by law enforcement,” said HSI Special Agent-in-Charge Hayes. “While some may mistakenly perceive trafficking in narcotics as a path to a quick profit, this arrest demonstrates the serious consequences that await those who engage in the manufacture and sale of illegal drugs.”
The investigation was led by the DEA’s Organized Crime Drug Enforcement Task Force, which includes agents and officers from the DEA, HSI, New York City Police Department, New York State Police, Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service, United States Marshal Service, United States Secret Service, and the Federal Bureau of Investigation.
If convicted, the defendant faces a minimum sentence of 10 years’ imprisonment and up to $10 million in fines.
The Defendant:
ANDREA SANDERLIN
Scarsdale, NY_____________________________
1 The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Real Estate Broker Pleads Guilty to Scheme to Defraud ClientsRead the Press Release
Debbie Foust, 60, of Mt. Juliet, Tennessee, a real estate broker and former owner of Century 21 Music City, pleaded guilty yesterday in U.S. District Court, to one count of wire fraud, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. The charge arises from Foust’s scheme to defraud her clients of funds provided as a down payment for a purchase of commercial real estate.“Real estate brokers are entrusted by citizens and investors to maintain client funds for their intended purpose, not to be used improperly for personal gain,” said Acting U.S. Attorney David Rivera. “The U.S. Attorney’s Office will continue to seek out and prosecute professionals who defraud their clients or betray their positions of trust.”
At the plea hearing, Foust admitted obtaining a $200,000 deposit via interstate wires from clients who sought to purchase a parcel of commercial real estate located in Madison, Tennessee. Contrary to her representations to these clients, Foust did not keep these funds in trust for use as a down payment on the commercial parcel but instead, converted the funds to her own use by writing checks totaling $170,000 to other accounts controlled by her. Foust further admitted writing a check to the sellers of the commercial parcel that was returned for insufficient funds, and failing to appear at the closing for the sale of the property, which was never consummated.
After accepting Foust’s plea, U.S. District Judge William J. Haynes, Jr. scheduled a sentencing hearing for September 12, 2013. Foust faces a maximum sentence of 20 years in prison and a maximum fine of up to $250,000.
The case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Rancho Santa Fe Consultant Pleads Guilty to Securities FraudRead the Press Release
David Bahr, a self-employed Rancho Santa Fe consultant, pleaded guilty today to conspiracy to commit securities fraud in connection with the Florida-based penny stock company “iTrackr.”
As set forth in his Plea Agreement, Bahr admitted that he agreed with others to fraudulently manipulate and artificially inflate the price of iTrackr shares in order to make money for himself and his client-investors whom he advised. Bahr admitted that he had bought shares of iTrackr, and advised others to do so, in order to keep up the price of iTrackr stock, and had arranged for the dissemination of promotional material that overstated the likelihood of iTrackr’s success and future profits.
The guilty plea coincides with charges filed today by the Securities and Exchange Commission in connection with the same conduct.
In late November, Bahr spoke on the telephone with an undercover FBI agent posing as a businessman who could arrange for stockbrokers to secretly invest their clients’ money in iTrackr in return for a 30% kickback. The undercover officer told Bahr that the kickback would not be disclosed to the brokers’ clients, and that he could ensure that the shares would be held for approximately one year, thus keeping the shares off the market and avoiding any sales that would decrease the price.
Bahr agreed to the plan, and agreed to pay the kickback. Bahr told the undercover officer that in order to reach his desired share price, he wanted the brokers to buy 10 million shares of iTrackr at an average price of 25 cents per share, for a total investment of $2.5 million. Bahr agreed to pay a total kickback of $750,000.
Bahr and the undercover officer agreed to do a test run. On various days in December 2012, the undercover officer, using FBI funds, made an initial purchase of iTrackr stock, and Bahr purchased a total of 135,000 shares of iTrackr stock. Bahr was satisfied with the purchases, and wired a $3,000 kickback to the undercover officer’s bank account. Days later, federal agents searched his Rancho Santa Fe home and seized documents and electronic evidence.
United States Attorney Duffy reiterated her continuing support for the stiff enforcement of federal securities laws, and cautioned the public to be vigilant against stock manipulators, especially in the penny stock markets. Duffy praised the hard work of the agents from the Federal Bureau of Investigation and the Internal Revenue Service for their efforts in this fraud investigation, and the continuing support of the Securities and Exchange Commission for their expertise and guidance.
Sentencing was set for September 3, 2013 before U.S. District Judge Larry A. Burns. Bahr was released on bond.
DEFENDANT CASE NUMBER 13cr2198-LAB David Bahr SUMMARY OF CHARGETitle 18, United States Code, Section 1349 - Conspiracy to Commit Securities fraud. Maximum penalty: 25 years imprisonment and $250,000 fine.
PARTICIPATING AGENCIESFederal Bureau of Investigation
Internal Revenue ServicePittsburgh Woman Charged with Converting Social Security Benefits to Her Own UseRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of theft of government property, United States Attorney David J. Hickton announced today.
The one-count indictment named Laverne Russell, 72, as the sole defendant.
According to the indictment, Russell converted to her own use over $1,000.00 in Social Security Income Benefits from the Social Security Administration.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General 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.
Pittsburgh Man Made False Statements When Purchasing FirearmsRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man pleaded guilty in federal court to charges of violating federal firearm laws, United States Attorney David J. Hickton announced today.
Charles Douglas Warner, 26, pleaded guilty to two counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that on or about July 19, 2009, and on or about October 9, 2009, Warner made false statements to a federal firearms licensee in connection with his purchase of two firearms. In addition, on those dates, Warner was a fugitive from justice, had pending felony drug and firearms charges, and was an unlawful user or addicted to controlled substances when he possessed those firearms.
Judge Ambrose scheduled sentencing for Oct. 15, 2013. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Police conducted the investigation that led to the prosecution of Charles Douglas Warner.
Pittsburgh Man Collected His Dead Mother-in-law’s Social Security Benefits for 18 YearsRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man pleaded guilty in federal court to a charge of theft of government money, United States Attorney David J. Hickton announced today.
Melvin P. McMillan, 67, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that McMillan received and used the Social Security Title II benefits that continued to be issued to his mother-in-law, Pauline Kasenic, after her death in 1994. From Nov. 3, 1994 to June 1, 2012, McMillan received $224,370.00 in Social Security Administration funds to which benefits he knew he was not entitled.
Judge Ambrose scheduled sentencing for Oct. 15, 2013 at 11:00 a.m. The law provides for a maximum total sentence of not more than 10 year in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court placed McMillan on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the information in this case.
Passenger on Frontier Airlines Flight Charged with False Information and ThreatsRead the Press Release
UPDATE
Mark Bote Appears in Federal Court
DENVER – Mark Michael Bote, the man charged with false information and threats while aboard a Frontier Airline Flight that landed in Denver last Friday night appeared in U.S. District Court in Denver this afternoon. He appeared before U.S. Magistrate Judge Craig B. Shaffer. Magistrate Judge Shaffer found that Bote was eligible for court appointed counsel and ordered the court to appoint an attorney to represent the defendant at no cost. James Allison, the Assistant U.S. Attorney representing the government, who is also the Chief of the Criminal Division of the U.S. Attorney’s Office, notified the court that it will be asking that the defendant be held without bond pending a resolution of this case. The Magistrate Judge scheduled the detention hearing, to decide that issue, as well as a preliminary hearing, to determine if there is probable cause that the defendant committed the crimes alleged, for Thursday, June 20th at 10:00 a.m. Until that hearing, Bote will remain in federal custody, under the control of the United States Marshals Service. The Marshals will determine where the defendant will be held pending that hearing.
DENVER – Mark Michael Bote, age 23, of Thornton, Colorado, was charged yesterday by Criminal Complaint with one count of false information and threats while aboard Frontier Airlines Flight 601 en route from Knoxville, Tennessee to Denver, Colorado, United States Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. Bote is scheduled to make his initial appearance before U.S. Magistrate Judge Craig B. Shaffer at 2:00 p.m. this afternoon before U.S. Magistrate Judge Craig B. Shaffer, barring unforeseen circumstances, where he will be advised of his rights and the charges pending against him.
According to the FBI affidavit in support of the Criminal Complaint, on June 14, 2013 at 7:20 p.m., the FBI’s airport liaison was notified of an inflight disturbance aboard Frontier Airlines Flight 601 en route from McGhee Tyson Airport in Knoxville, Tennessee to Denver International Airport. Federal agents and task force officers responded to the airport based on the notification.
On board the flight, one passenger noticed Bote seemed nervous, was shaking, had his eyes closed, and was rocking back and forth. A second passenger also noticed that Bote looked nervous, and that his eyes were glazed over. When Bote took his seat he kept his backpack on. A flight attendant asked that he remove it. He put it under the seat in front of him, but would not let completely go of it. Later in the flight a flight attendant asked Bote if he was ok. He reply with the word “bomb” and some other words the flight attendant couldn’t make out. The flight attendant confirmed with him twice to make sure he knew he was saying the word “bomb”.
A third passenger on board who sat next to defendant noted that Bote spent a majority of the flight sleeping. When he suddenly awoke Bote allegedly said “help me help me.” The flight attendant asked what was wrong, and Bote responded “There’s a bomb. There’s a bomb.” He was shaking as he held the backpack. Later, Bote’s backpack was taken from him.
Toward the end of the flight the flight attendants discussed the situation. When Bote said he had a bomb in his carry-on bag the flight attendants consulted with the Captain. On Captain’s orders, the flight attendants initiated bomb procedures which included moving passengers and bags.
One of the passengers advised the flight attendants that she was traveling with Bote, and was a member of his church group. They had been in Tennessee helping build a church. She stated that the defendant was not well.
Further investigation by the FBI revealed that Bote thought someone was stalking him. He was holding on to the backpack because he thought someone put a bomb in it because it felt heavier than it had previously. Bote was arrested pending federal charges.
If convicted of false information and threats, the defendant faces not more than 5 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI and the Denver Police Department.
The defendant is being prosecuted by Assistant U.S. Attorney James Allison, Chief of the Criminal Division of the Colorado U.S. Attorney’s Office.
Anyone accused of committing a federal felony crime has a Constitutional right to be indicted by a federal grand jury. The charges contained in the Criminal Complaint are allegations. The defendant is presumed innocent unless and until proven guilty.
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Ocean County, N.J., Man Admits Sexually Abusing Toddler and Streaming Assault Live over the InternetRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., man today admitted sexually abusing a 15-month-old boy and streaming footage of the assault over the Internet, U.S. Attorney Paul J. Fishman announced.
Rodford W. Brindley, 68, of Toms River, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of sexual exploitation of a child.
According to documents filed in this case and statements made in court:
Brindley engaged in online chats with someone who he believed to be a parent living in Ohio, but who was, in fact, a law enforcement officer in Ohio. On one occasion, Brindley engaged in sexually explicit conduct with an approximately 15-month-old child, whom he had in his care at his Toms River home, and streamed live video of that conduct over the Internet to Ohio undercover law enforcement officers.
The charge of child sexual exploitation is punishable by a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 26, 2013.U.S. Attorney Fishman thanked the Franklin County Sheriff’s Department in Ohio, the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato; and the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Joseph Muoio of the U.S. Attorney’s Trenton Office.
13-256
Defense counsel: William Cunningham Esq., Brick, N.J.Brindley, Rodford Information
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in San Francisco against Robert Williams of Atherton, Calif. Williams is the 31st individual to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Williams conspired with others not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Mateo County, Calif. Williams was also charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs and to divert to co-conspirators money that would have otherwise gone to mortgage holders and others.
The department said Williams conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in San Mateo County beginning as early as October 2009 and continuing until about December 2010.
“Collusion at these foreclosure auctions enabled the conspirators to present the illusion of competition, when they were actually thwarting the competitive process and profiting at the expense of lenders and distressed homeowners,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division remains committed to holding accountable those who illegally subvert competition at real estate foreclosure auctions across the country.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Mateo County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.
“The legitimacy of an open, public real estate foreclosure auction is compromised when an individual or group conspires to commit criminal activity which impacts genuine intentions of good citizens,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “We are steadfast in our continued partnership with the Antitrust Division in bringing those criminally responsible to justice.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges today are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Field Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm, or call the FBI tip line at 415-553-7400.
Today's charges were brought in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were
subsequently dismissed on the government’s motion.**
Northampton County Man Sentenced to Prison for Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Northampton County man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 48 months in prison on the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Reinaldo Colon-Seda, age 50, formerly of Wind Gap, Northampton County, previously admitted to participating in a conspiracy to distribute powder cocaine in the Monroe County and Northampton County areas in 2011.
In addition to the prison term, Senior Judge Kosik also ordered that Colon-Seda be supervised by a probation officer for four years following his prison sentence.
The investigation was conducted by the Drug Enforcement Administration and the Monroe County Drug Task Force.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
North Dakota Woman Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Yates, North Dakota woman has been indicted by a federal grand jury.
Marissa Sitting Dog, age 25, was indicted by a federal grand jury on June 12, 2013 for Child Abuse and Neglect. Sitting Dog appeared before U.S. Magistrate Judge William D. Gerdes and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge is merely an accusation, and Sitting Dog is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Sitting Dog was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
New Bern Drug Dealer Sentenced to 9 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Thomas Walker and District Attorney Scott Thomas announced that today in federal court today, Chief United States District Judge James C. Dever III sentenced Walter Terion Brown , 25, of New Bern, NC to 108 months imprisonment, followed by 4 years of supervised release. BROWN was also ordered to pay $2,160 in restitution to the New Bern Police Department and Carteret County Sheriff’s Office.
BROWN was named in an Indictment filed on September 25, 2012 charging him with possessing with intent to distribute 28 grams or more of cocaine base (crack). On January 22, 2013, BROWN pled guilty to that charge.
As part of a separate investigation, a New Bern Police Department detective, acting undercover, purchased cocaine base (crack) from Tinnius Remone Bell on May 26, 2011. Investigation revealed that Bell obtained the crack he sold to the undercover officer from WALTER TERION BROWN. Officers from the Coastal Narcotics Enforcement Team then utilized a confidential informant to purchase cocaine base (crack) directly from BROWN on four additional occasions in 2011. In total, BROWN was held responsible for possessing with the intent to distribute and distributing over 441 grams of cocaine base (crack). Tinnius Remone Bell was sentenced on November 2, 2012 to 72 months imprisonment, followed by 5 years of supervised release for his role in the distribution of cocaine and cocaine base (crack) in the New Bern area.
Investigation of this case was furthered by the Coastal Narcotics Enforcement Team, a multi-agency task force comprised of agents from the Carteret County Sheriff’s Office, Craven County Sheriff’s Office, Havelock Police Department, Jones County Sheriff’s Office, New Bern Police Department, Pamlico County Sheriff’s Office, River Bend Police Department, State Bureau of Investigation and Trent Woods Police Department. Special Assistant United States Attorney Augustus Willis represented the government in these matters. Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorney Scott Thomas has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Wills’ position is funded through a grant provided by the Governor’s Crime Commission.
Mortgage Broker Sentenced for $20 Million Mortgage Fraud SchemeRead the Press Release
MINNEAPOLIS – Earlier today in federal court, an Edina mortgage broker was sentenced for his role in a $20 million mortgage fraud scheme that involved 57 properties. United States District Court Judge Joan N. Ericksen sentenced Derrick Ivan Lance, age 41, of Edina, to 46 months imprisonment followed by three years of supervised release on one count of conspiracy to commit wire fraud. Lance was charged on July 22, 2011, and pleaded guilty on August 10, 2011.
In his plea agreement, Lance admitted that between 2004 and 2007, he conspired with others to obtain mortgage loan proceeds based on fraudulent documentation. Lance’s unnamed co-conspirators identified residential properties available for purchase and recruited buyers for those properties. Two of the co-conspirators told buyers they would receive payments in the form of kickbacks after the property transactions had closed, and that they could put those payments toward the mortgages or use them to improve the properties.
For his part, Lance admitted using his licensed mortgage brokerage and his position within that brokerage to help prepare and submit false mortgage loan applications, which misrepresented the buyers’ true financial situation. Based on those fraudulent documents, loans were approved, and loan proceeds were disbursed by wire transfer into the accounts of various title companies. Due to paperwork that misrepresented the true nature of the real estate transactions, Lance and his co-conspirators then caused those title companies to disburse portions of the proceeds from the various transactions into bank accounts not associated with the property buyers, the purpose being to conceal the undisclosed kickbacks. Lance received more than $200,000 for assisting buyers in securing mortgage loans for at least 24 properties.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Tracy L. Perzel.
The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.Mexican and Honduran Citizens Indicted on Federal Charges of Transporting Illegal Foreign NationalsRead the Press Release
Violations Discovered During Traffic Stop by Tennessee State Trooper
KNOXVILLE, Tenn. – Mario Garcia-Duarte, 22, of Mexico, and Guadalupe Orellana-Morel, 20, of Honduras, were indicted on June 18, 2013, by a federal grand jury in Knoxville, Tenn., on charges relating to the transportation of foreign nationals who were in the United States illegally. Both Garcia-Duarte and Orellana-Morel remain in custody and will appear in U.S. District Court later this week.
Garcia-Duarte was the driver of a vehicle that was stopped on June 11, 2013, in Knox County, by Tennessee Highway Patrol (THP) Trooper Adam Bowman, a member of the THP’s East Bureau Interdiction Plus Team. Orellana-Morel was a passenger in the vehicle.
At the time of the traffic stop, Garcia-Duarte presented a Mexican driver’s license to Trooper Bowman. Further investigation at the scene revealed 14 additional passengers in the vehicle with no luggage or personal items. After a background check on the vehicle, Federal Homeland Security Investigations agents were called to the scene, where they assumed primary responsibility of the investigation.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Medical Business Owner Indicted for Medicaid FraudRead the Press Release
Business Provided Speech-Language Therapy Services for Children
ATLANTA – Jennifer C. Alsdorf has been indicted on charges of health care fraud and wire fraud for filing over $500,000 in fraudulent claims with the Georgia Medicaid program.
“This defendant is charged with robbing Medicaid of over half a million dollars intended for children in need. Her alleged fraud includes billing for medical services never performed, for patients never seen, and in the names of medical professionals who were not working for the defendant,” United States Attorney Sally Quillian Yates. “Medicaid fraud affects individuals, families, and communities in higher costs, and as this case shows, we have a strong federal-state alliance intent on combatting this serious crime.”
“The FBI continues to work hard in ensuring that federal Medicaid funds are used in the manner intended by law and will continue to work with its various law enforcement partners in identifying, investigating, and presenting for prosecution those individuals who abuse the system,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “Anyone with information regarding health care fraud should contact their nearest FBI field office immediately.”
“It appears that Ms. Alsdorf viewed Medicaid as a slush fund to enrich herself,” said Attorney General Sam Olens. “This case sends a strong message that the federal and state governments will work together to aggressively prosecute Medicaid fraud in Georgia.”
According to United States Attorney Yates, the charges and other information presented in court: Jennifer C. Alsdorf, 43, of Tampa, Fla., is the owner, President, and CEO of Hand in Hand Speech & Language Services, Inc. The medical business is located in Tampa, Fla. (and prior to 2005 in Vidalia, Ga.) and offers speech-language therapy services for children covered by Medicaid. Acting on behalf of Hand in Hand, Alsdorf contracted with speech-language pathologists to perform services under independent contractor agreements. Alsdorf would bill Medicaid for the services provided by the pathologists, and then send a portion of the amount she received from Medicaid to them.
In the contracts, Alsdorf agreed to pay a set fee to the pathologists for each initial evaluation and each subsequent therapy visit rendered by the pathologists to Medicaid recipients. The fees that Alsdorf paid to the pathologists for those two services were less than, but based on, the amounts that Medicaid reimbursed for the services. Alsdorf made a profit by keeping the difference between what Medicaid paid and what she remitted to the pathologists.
After rendering services to patients, the pathologists would send Alsdorf treatment notes showing which patients they had seen, how long they had provided therapy, and which services they had provided. Alsdorf was supposed to use these notes to prepare the claims to submit to Medicaid. Unbeknownst to the speech-language pathologists, however, in addition to billing Medicaid for initial evaluations and therapy visits, Alsdorf also billed Medicaid for “sensory integration” therapy, a service the pathologists had not provided. Many of the pathologists did not even know what sensory integration therapy was and had never heard of such a service. Alsdorf did not send any of the money she received from Medicaid for this service to the pathologists. She instead kept all of the money she received for sensory integration therapy.
Alsdorf also submitted claims to Medicaid for patient visits that never occurred. She submitted claims under pathologists’ names for services during times when they were not working with Hand in Hand. She also submitted claims representing that the pathologists had treated certain patients when, in fact, the pathologists had never seen or treated the patients at any time. Alsdorf is alleged to have submitted over $500,000 in fraudulent claims to Medicaid.
A federal grand jury indicted the defendant on May 21, 2013, who was arraigned today on the charges before United States Magistrate Judge Justin S. Anand.
The indictment charges 74 counts of health care fraud and 10 counts of wire fraud. Each health care fraud count carries a maximum sentence of 10 years in prison, and each wire fraud count carries a maximum sentence of 20 years in prison. Each count also carries a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment contains only allegations. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and Investigators from the Georgia Medicaid Fraud Control Unit and the Georgia Department of Community Health.
Assistant United States Attorney Stephen H. McClain and Georgia Assistant Attorney General Henry A. Hibbert are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Maryland Man Sentenced to Six-Year Prison Term for Assaulting A Man in Christmas Eve Attack Near Metro Station- Charges Included the Wearing of A Mask While Committing A Crime-Read the Press Release
WASHINGTON - Michael Anthony Hartley, 22, of Temple Hills, Md., was sentenced today to six years in prison for attacking a man on Christmas Eve 2012 near a Metro station in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Hartley was found guilty in April 2013, following a jury trial in the Superior Court of the District of Columbia, of assault with intent to commit robbery while armed; assault with significant bodily injuries; malicious destruction of property, and wearing a hood or mask concealing his identity while committing these offenses. He was sentenced by the Honorable Michael Ryan. Upon completion of his prison term, Hartley will be placed on five years of supervised release.
According to the government’s evidence, on Dec. 24, 2012, at about 3:30 p.m., the victim was leaving the Rhode Island Avenue Metro station and was on his way home. He was putting his iPhone in his pants pockets when he encountered Hartley, a stranger. Both men exchanged a perfunctory greeting of "hey" as they walked past each other.
Seconds later, the victim noticed that Hartley was walking shoulder-to-shoulder with him. However, Hartley now was wearing a hoodie over his head and a mask covering his mouth. Hartley demanded the victim’s iPhone. He told the victim that he had a gun, put his hand in his jacket-pocket, and made a gesture as if pointing the weapon. The victim tried to get away, but Hartley caught him. At this point, Hartley shoved the victim while loudly demanding the iPhone. A bystander happened to walk by and called the police.
Before police could get to the scene, Hartley punched the victim in the face at least twice with a closed fist, causing significant injuries, including facial lacerations. Hartley also broke the victim’s eyeglasses. During the entire attack, Hartley was wearing a hoodie over his head and a mask covering part of his face to conceal his identity. The police arrived while Hartley was still on the scene, and the victim pointed him out as the person who tried to rob him.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department (MPD). He also acknowledged the efforts of those worked on the matter for the U.S. Attorney’s Office, including Paralegal Specialist Tameka Garcia and Litigation Technology Specialist Thomas Royal. Finally, U.S. Attorney Machen commended the work of Assistant U.S. Attorney John C. Truong, who investigated and prosecuted the case.
13-215Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Charges Against Psychiatrist for Illegally Distributing OxycodoneRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”) announced the arrest today of William S. Belfar, a licensed psychiatrist in New York, on charges that he distributed oxycodone, a prescription painkiller, for cash and without a medical purpose. BELFAR was presented today in Manhattan federal court before U.S. Magistrate Judge Andrew J. Peck.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, William Belfar, a licensed psychiatrist, contributed to the growing epidemic of prescription drug abuse and addiction by writing prescriptions in exchange for cash – conduct which he had described as illegal when discussing other doctors. This Office will not tolerate medical professionals who exploit their licenses to fuel the prescription drug problem.”
FBI Assistant Director-in-Charge George Venizelos said: “William Belfar, a licensed physician and mental health professional, allegedly exploited the addictive nature of oxycodone – the very thing he warned of on television – to make money. He violated the oath of his profession and broke the law in peddling oxycodone prescriptions. The Health Care Fraud Task Force was formed in part to protect the public from unscrupulous doctors who put profiteering ahead of professional responsibility.”
According to the Complaint unsealed today in Manhattan federal court:
BELFAR operated a medical office in Manhattan, New York, from which he sold prescriptions for oxycodone and other medications for cash. On three occasions from May 2011 to April 2013, he sold prescriptions of oxycodone pills and other medications to an FBI confidential informant and two undercover FBI officers. BELFAR sold the prescriptions for up to $1,000 per prescription. On one occasion when BELFAR sold an oxycodone prescription, he stated to the informant: “[I]t is a very easy way to make money, but it’s an easy way for me to go to jail too.” BELFAR prescribed the oxycodone to the confidential informant even though he said he believed the informant was a “dealer.”
In February and March 2013, around the same time that BELFAR was selling oxycodone prescriptions, he appeared on two television shows as an interview guest on the subject of oxycodone addiction. During those interviews, BELFAR discussed cases of celebrities becoming addicted to oxycodone, including one situation where the “doctor essentially became [a] drug dealer.” BELFAR also stated during one interview that “This is a big business. . . . On the street . . . each [oxycodone] pill is $30. . . . Patients will pay a lot of money just to get these pills. . . . The doctors prescribe it. Yes, some do it for money. Some do it because they just don’t know what they are doing. . . . [T]hey just shouldn’t be doing it.”
Oxycodone, a Schedule II controlled substance, is a powerful painkiller with a high potential for addiction and abuse. It is sold on the street as a substitute for heroin and other illegal drugs.
BELFAR, 49, of Huntington, New York, is charged with three counts of distributing oxycodone. Each count carries a maximum sentence of 20 years in prison.
Mr. Bharara praised the investigative work of the FBI, the FBI’s Boston Field Office, the FBI Boston-Lakeville RA, the New York City Police Department, and the FBI’s New York Health Care Fraud Task Force. The FBI’s New York Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force is composed of agents, officers and investigators of the FBI, NYPD, New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, NYS Attorney General’s Office, NYS-Office of Medicaid Inspector General, NYC Health and Hospitals Inspector General, and the National Insurance Crime Bureau.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Rahul Mukhi and Ian McGinley are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. William Belfar Complaint
Man Pleads Guilty to Selling Counterfeit Goods at Kansas City, Kan., StoreRead the Press Release
KANSAS CITY, KAN. – A man has pleaded guilty to selling counterfeit goods at a store in Kansas City, Kan., including shoes labeled as Nike Air Force 1 and shirts labeled as Polo Ralph Lauren, U.S. Attorney Barry Grissom said today.
Jehad Shalabi, 45, pleaded guilty to one count of conspiracy to traffic in counterfeit trademark goods. During a hearing today, prosecutors told the judge that Shalabi sold counterfeit goods at a retail store called Joe Black, Inc., at 3201 State Avenue in Kansas City, Kan.
Agents of the FBI made undercover purchases at the store including a counterfeit trademark pair of Nike Air Force 1 shoes on Feb. 22, 2011, and a counterfeit trademark Polo Ralph Lauren knit shirt on June 9, 2011. On June 30, 2011, Shalabi sold a counterfeit trademark NBA Chicago Bulls hat.
On June 28, 2011, agents served a search warrant at the store and seized approximately 588 counterfeit items with trademarks including Polo Ralph Lauren, Nike, Major League Baseball, Nervous Tattoo (Ed Hardy and Christian Audigier), Luxirie, Rocawear and Coogi.
Investigators learned that counterfeit goods made up approximately 20 percent of the store’s weekly sales of $4,000 to $6,000.
Sentencing is set for Oct. 9. Shalabi faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the FBI, ICE-HSI, the Kansas City, Kan., Police Department and Assistant U.S. Attorney Scott Rask for their work on the case.
Local Couple Sentenced in Federal Court for Producing Child PornographyRead the Press Release
PENSACOLA, FLORIDA – The U.S. Attorney’s Office for the Northern District of Florida announced that Brandon Gillreath, 33, and Corine Motley, 25, a married couple from Mary Ester, Florida, were sentenced late yesterday afternoon on federal charges of conspiring to produce child pornography. Gillreath was sentenced to serve 35 years in prison, followed by a lifetime term of supervised release. Motley was sentenced to serve 29½ years in prison, followed by 20 years of supervised release. Gillreath was also sentenced for making false statements to federal agents.
A federal investigation began on December 12, 2012, when U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) received a referral from the Danish National Police regarding a video containing child pornography. The video had been obtained from the Internet by law enforcement officers in Denmark. The video was referred to U.S. law enforcement because the Danish National Police believed that the video had most likely been produced in the United States. The video depicted an adult female and a prepubescent female, approximately five years old, engaged in sexually explicit conduct.
To identify the adult female featured in the videos, HSI issued a public appeal for assistance. Hours later, based on information received through that public appeal, HSI, the Okaloosa County Sheriff’s Office, and the Department of Justice were able to determine that Motley was the adult female in the video who was engaging in sexually explicit conduct with the minor child. Motley was promptly arrested. The Pensacola Police Department and the Northwest Florida Internet Crimes Against Children Task Force were also instrumental in bringing Motley and Gillreath to justice.
“This case was particularly disturbing because the defendants severely abused local children, and cruelly captured the abuse on film for the purpose of circulating it via the Internet,” said U.S. Attorney Pamela Marsh. “Fortunately, thanks to the public’s fast response to HSI’s request for assistance, law enforcement was able to quickly identify the perpetrators and stop the abuse.”
HSI obtained federal search warrants for the defendants’ laptop, digital camera, and email accounts. Within the digital media, federal agents located over a dozen images of Motley engaging in sexually explicit conduct with a second minor female. There were also images of Gillreath engaging in sexually explicit conduct with this second minor female. This second victim was approximately ten years old at the time the child pornography images were produced. Recently, even more minor victims have disclosed engaging in sexually explicit conduct with Motley and Gillreath.
“The power of social media and traditional media outlets proved invaluable in this case,” said Susan McCormick, special agent in charge of HSI Tampa, which oversees the Pensacola office that conducted this investigation. “I thank everyone who assisted. Not only did we put two child predators behind bars, we also rescued at least two children from further abuse.”
U.S. Attorney Marsh praised the efforts of all the law enforcement agencies who worked together to capture and prosecute these two criminals. “I want to express my deep gratitude to those persons who assisted and provided information, as well as to law enforcement and our prosecutor for their excellent work on this case.” she said.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida.Ligonier Man Charged with Theft of Government PropertyRead the Press Release
PITTSBURGH, Pa. - A Westmoreland County man has been indicted by a federal grand jury in Pittsburgh on charges of theft of government property, United States Attorney David J. Hickton announced today.
The one-count indictment named Ronald Clarke Gray, 62, of Ligonier, Pa., as the sole defendant.
According to the indictment, Gray converted to his own use over $1,000.00 in Social Security Income Benefits from the Social Security Administration.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General 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.
Liberty Couple Pleads Guilty to $2.8 Million Embezzlement, Check Kiting Scheme to Fund Gambling, Lavish SpendingRead the Press Release
KANSAS CITY, Mo. -- Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., husband and wife pleaded guilty in federal court today to a nearly $2.8 million embezzlement and check kiting scheme and with filing a false tax return.
Laura Dejong, 54, and her husband, Craig Dejong, 55, both of Liberty, pleaded guilty before U.S. District Judge Dean Whipple. Laura Dejong pleaded guilty to one count of mail fraud and both of the Dejongs pleaded guilty to one count of filing a false tax return.
Laura Dejong admitted that she embezzled $2,679,227 from her employer, Kansas City Screw Products, Inc., from January 2003 to November 2011. Kansas City Screw Products is a family-owned and -operated metal fabrication business in Kansas City. Laura Dejong, who was employed as a secretary and bookkeeper for approximately 23 years, forged checks drawn on two company bank accounts.
Laura Dejong also engaged in a check kiting scheme between the company’s two banks in order to falsely inflate the company’s bank account balances, thereby increasing the amount of money she could embezzle. Her check kiting began in late June 2011. The total amount of checks written by Laura Dejong to cause the check kite increased from $44,000 in June 2011 to $847,000 in November 2011. The total loss from the check kite to Central Bank was $96,000.
The total combined loss for Kansas City Screw Products and Central Bank was $2,775,227.
According to court documents, significant gambling activity was identified for the Dejongs, well into the millions of dollars, from January 2002 to December 2011. The majority of the Dejongs’ gambling was at slot machines.
Records indicate that the Dejongs took at least eight cruises and spent more than $100,000 on payments for the cruises, vacations and airfare between 2005 and 2011. During the time of the embezzlement scheme, according to court documents, the Dejongs used the stolen money to purchase a 2007 Chevrolet Tahoe, a 2009 Honda Accord, a 1997 Crownline boat (20-foot fiberglass runabout), a 1997 Prestige boat trailer, a 1985 Chevrolet RV/motor-home (now a KC Chiefs party bus), a 2008 Jayco travel trailer, four Ameriprise Brokerage accounts; four Kansas Speedway season tickets (for Passholder seats, parking passes, and track passes), four Kansas City Chiefs Club Level season tickets and parking passes, membership to the Chiefs Wolfpack Club, an exclusive members-only facility, and their residence.
As part of their pleas, the Dejongs signed a stipulation forfeiting their home in Liberty and all of the above-listed property. Once the forfeiture is completed, the victims of the crime will be able to request that the forfeited funds be remitted to them for restitution.
The Dejongs admitted that they filed joint tax returns for tax years 2005-2010 but did not declare any of the embezzled money as income. During this time, Laura Dejong’s gross annual salary at Kansas City Screw Products ranged from $22,752 to $33,333. Craig Dejong was unemployed for four years and listed no income for the two years in which he claimed to be employed as a computer programmer.
As a result of filing false tax returns in those six years, the Dejongs owe the Internal Revenue Service a total of approximately $482,711.
Under federal statutes, Laura Dejong is subject to a sentence of up to 23 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. Craig Dejong is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI and IRS-Criminal Investigation.Leominster Man, Fitchburg Construction Company Charged with Defrauding Union Benefit FundsRead the Press Release
BOSTON – A Leominster man was charged yesterday with operating a construction business under two different names in order to avoid paying union benefits for his employees, a practice commonly known as "double-breasting."
Juan J. Alonso, 59, and Aguila Construction Company, Inc. of Fitchburg were charged with theft or embezzlement from benefit plans subject to the provisions of Title I of the Employee Retirement Income Security Act of 1974 (ERISA), making false statements in documents submitted to benefit plans subject to ERISA, and making false statements to the United States Department of Transportation (DOT).
The Information alleges that Alonso operated Alonso Construction, Inc. and Aguila Construction Company from the same yard and office in Fitchburg. Alonso Construction and Aguila Construction performed the same type of work, used the same equipment, and used the same laborers and office staff. This “double-breasted” arrangement is often used in the construction industry to avoid paying union members the union wages and benefits they are entitled to.
In 2000, Alonso, on behalf of Aguila Construction had agreed to be bound by certain collective bargaining agreements with, among other unions, Laborers International Union of North America Local 39 (Local 39). The collective bargaining agreements governed the remittance of fringe benefit contributions to employee benefit plans. The agreements require signatories to accurately report to the plans the number of hours worked by members of Local 39 and to make contributions to the funds accordingly.
Between 2008 and 2011, Alonso and Aguila Construction defrauded the benefit funds by running part of the Aguila Construction payroll through Alonso’s “non-union” company, Alonso Construction, thereby underreporting the hours actually worked by Local 39 members. Alonso also defrauded the funds by paying Aguila Construction laborers in cash, in order to avoid making hourly payments to the benefit funds. Over the four-year period, the defendants failed to pay approximately $805,338 owed to the funds.
The Information further charges that between 2008 and 2011, Aguila Construction secured several publicly-funded projects, including 12 projects funded by the DOT pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA). As part of the scheme, a portion of this contract work was conducted by Alonso Construction rather than Aguila Construction, the signator to the contracts.
In particular, between June 15, 2009 and May 23, 2010, Aguila Construction was subcontracted to perform construction work on an ARRA-funded construction project on Route 2 in Harvard and Littleton. In connection with this project, Aguila Construction completed and sent to the Massachusetts Department of Transportation certified payroll records falsely stating the identity of employees, the number of hours worked and the wages paid.
If Alonso is convicted, each of the statutes provides for a maximum sentence of five years in prison to be followed by three years of supervised release and a fine. Conviction of Aguila Construction could result in a fine and a term of probation between one and five years.
U.S. Attorney Carmen M. Ortiz; Theodore L. Doherty, III, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Office of Investigations; Robert Panella, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering & Fraud Investigations; and Susan Hensley, Director, Boston Regional Office of the Employee Benefits Security Administration made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption and Special Prosecutions Unit.The details contained in the Information are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leader of Massive Tax Refund Fraud Scheme Pleads Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MELVIN DUARTE pled guilty today in Manhattan federal court for his role in a scheme to fraudulently generate and then steal more than $50 million in federal tax refund checks. DUARTE was originally arrested in 2008 and subsequently fled the U.S. He was extradited from the Dominican Republic and arrived in the U.S. in January 2013. DUARTE pled guilty before U.S. Circuit Court Judge Denny Chin, sitting by designation.
Manhattan U.S. Attorney Preet Bharara said: “The $50 million tax refund fraud scheme Melvin Duarte orchestrated is among the largest known cases of its kind, and Duarte’s guilty plea today is a significant victory in our fight to hold tax refund fraudsters to account. Our commitment to prosecuting those who engage in this type of scheme – the use of stolen Puerto Rican identities to fraudulently obtain tax refunds – is unwavering. We have aggressively pursued these schemes since at least 2008, and in just the last 12 months have charged at least 55 defendants who allegedly sought to cause approximately $230 million in losses to the IRS.”
According to the Indictment and other documents filed in Manhattan federal court:
DUARTE was charged as part of an investigation into a massive tax and mail theft scheme. As part of the scheme, co-conspirators operating out of the Dominican Republic and other places electronically filed thousands of fraudulent federal tax returns, seeking tens of millions of dollars in tax refunds. The fraudulent returns were filed using Social Security numbers and other identifying information stolen from residents of Puerto Rico. Participants in the scheme targeted Social Security numbers assigned to residents of Puerto Rico because they are generally not required to file federal tax returns with the Internal Revenue Service (“IRS”), as long as their income is derived solely from Puerto Rican sources. In so doing, the co-conspirators minimized the risk that legitimate federal tax returns were already filed by the holders of the Social Security numbers that they were using in the scheme.
Each of the tax returns at issue falsely represented that the taxpayer resided at an address in the Bronx, where the refund check requested in the return was to be sent. The checks were then stolen by letter carriers assigned to the mail routes where the checks were sent and who had been recruited beforehand to participate in the scheme. The letter carriers participating in the scheme were paid a kickback for each check that they stole. The letter carriers passed the checks on to other co-conspirators, who cashed them at various banks and check-cashing businesses located in the U.S. and the Dominican Republic.
Over the course of the scheme, thousands of false and fraudulent federal tax returns were filed seeking more than $50 million of fraudulent tax refunds from the IRS.
DUARTE was previously convicted in 2002 for conspiracy to steal federal funds, based on substantially similar conduct and was sentenced to three years of probation.
DUARTE, 37, resided in Bronx, New York, prior to his 2008 flight to the Dominican Republic. He faces a maximum sentence of 10 years in prison on the charge of conspiracy to defraud the United States with respect to claims, a maximum sentence of five years in prison on the charge of conspiracy to steal mail, and a maximum sentence of five years in prison on the substantive theft of mail charge. DUARTE also faces a maximum of three years of supervised release and a fine of the greatest of $250,000, twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss to persons other than the defendant resulting from the offense on each of the charges. He is scheduled to be sentenced by Judge Chin on October 24, 2013 at 11:00 a.m.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Postal Service Office of Inspector General, and thanked them for their work in this case. He also thanked the Dominican National Police for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Daniel W. Levy is in charge of the prosecution.
Leader of Massive Tax Refund Fraud Scheme Pleads Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MELVIN DUARTE pled guilty today in Manhattan federal court for his role in a scheme to fraudulently generate and then steal more than $50 million in federal tax refund checks. DUARTE was originally arrested in 2008 and subsequently fled the U.S. He was extradited from the Dominican Republic and arrived in the U.S. in January 2013. DUARTE pled guilty before U.S. Circuit Court Judge Denny Chin, sitting by designation.
Manhattan U.S. Attorney Preet Bharara said: “The $50 million tax refund fraud scheme Melvin Duarte orchestrated is among the largest known cases of its kind, and Duarte’s guilty plea today is a significant victory in our fight to hold tax refund fraudsters to account. Our commitment to prosecuting those who engage in this type of scheme – the use of stolen Puerto Rican identities to fraudulently obtain tax refunds – is unwavering. We have aggressively pursued these schemes since at least 2008, and in just the last 12 months have charged at least 55 defendants who allegedly sought to cause approximately $230 million in losses to the IRS.”
According to the Indictment and other documents filed in Manhattan federal court:
DUARTE was charged as part of an investigation into a massive tax and mail theft scheme. As part of the scheme, co-conspirators operating out of the Dominican Republic and other places electronically filed thousands of fraudulent federal tax returns, seeking tens of millions of dollars in tax refunds. The fraudulent returns were filed using Social Security numbers and other identifying information stolen from residents of Puerto Rico. Participants in the scheme targeted Social Security numbers assigned to residents of Puerto Rico because they are generally not required to file federal tax returns with the Internal Revenue Service (“IRS”), as long as their income is derived solely from Puerto Rican sources. In so doing, the co-conspirators minimized the risk that legitimate federal tax returns were already filed by the holders of the Social Security numbers that they were using in the scheme.
Each of the tax returns at issue falsely represented that the taxpayer resided at an address in the Bronx, where the refund check requested in the return was to be sent. The checks were then stolen by letter carriers assigned to the mail routes where the checks were sent and who had been recruited beforehand to participate in the scheme. The letter carriers participating in the scheme were paid a kickback for each check that they stole. The letter carriers passed the checks on to other co-conspirators, who cashed them at various banks and check-cashing businesses located in the U.S. and the Dominican Republic.
Over the course of the scheme, thousands of false and fraudulent federal tax returns were filed seeking more than $50 million of fraudulent tax refunds from the IRS.
DUARTE was previously convicted in 2002 for conspiracy to steal federal funds, based on substantially similar conduct and was sentenced to three years of probation.
DUARTE, 37, resided in Bronx, New York, prior to his 2008 flight to the Dominican Republic. He faces a maximum sentence of 10 years in prison on the charge of conspiracy to defraud the United States with respect to claims, a maximum sentence of five years in prison on the charge of conspiracy to steal mail, and a maximum sentence of five years in prison on the substantive theft of mail charge. DUARTE also faces a maximum of three years of supervised release and a fine of the greatest of $250,000, twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss to persons other than the defendant resulting from the offense on each of the charges. He is scheduled to be sentenced by Judge Chin on October 24, 2013 at 11:00 a.m.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Postal Service Office of Inspector General, and thanked them for their work in this case. He also thanked the Dominican National Police for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Daniel W. Levy is in charge of the prosecution.
US v. Melvin Duarte S2 Indictment
LGBT Pride GatheringRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that a special event will be held on Thursday, June 20, 2013 from 5:30 – 8:00 pm in recognition of June as Lesbian, Gay, Bisexual and Transgender (LGBT) Pride Month. The program will be held at the Historic Federal Courthouse located at 517 East Wisconsin Avenue in Milwaukee. The reception will begin at 5:30pm followed closely by the formal program. The event is open to the public.
The keynote speakers will be FBI Special Agent in Charge Teresa L. Carlson and United States Attorney James L. Santelle. The event will introduce a newly developed special emphasis program within the Department of Justice; provide insight into law enforcement’s investigation and prosecution of hate crimes and related violence, including the effect of the Shepard Byrd Hate Crimes Act; and discuss the impact of recent legal decisions on the LGBT community.
In making this announcement, Santelle commented: “Members of our LGBT community in Wisconsin and throughout our nation continue to make significant contributions to the health, education, economy, culture, safety and well-being of all of us, and the United States Department of Justice is committed to promoting and safeguarding the rights of and equal protection for Americans of all sexual orientations and identities.” He continued: “In the educational and inspirational programs on the 20th, we are not only affirming our strong federal partnership with Equality Wisconsin, the Milwaukee LGBT Community and other local and regional groups and associations, but we are also affirming the fundamental tenet that our county is enriched and strengthened by diversity in all aspects of our national experience.”
FBI Special Agent in Charge Teresa L. Carlson said: "Milwaukee is a proud community rich in diversity. It is the FBI's mission to enforce civil rights laws and protect the freedoms of all Americans. We are honored to have a role in this great program that celebrates and embraces our cultural differences."
According to Karen Gotzler, the Interim Executive Director of the Milwaukee LGBT Community Center, "The Community Center in Milwaukee offers a wealth of resource programming, from youth to young adults to elders. We are HONORED to be partnering with the U.S. Attorney's Office to illustrate the importance of LGBT people as part of our entire community and having the federal government look seriously at LGBT issues."
Jason Burns, Executive Director of Equality Wisconsin, "This has been a banner year for LGBT people and addressing these issues at a federal level is integral to full equality for lesbian, gay, bisexual and transgender citizens."
The event is sponsored by the Office of the United States Attorney, the Federal Bureau Investigation, the Milwaukee LGBT Community Center, and Equality Wisconsin.
Judge Taxes Scammer with 18 Year Prison SentenceRead the Press Release
PHILADELPHIA - Calvin Johnson, Jr., 35, of Philadelphia, PA, was sentenced today to 18 years in prison for participating in tax fraud conspiracies with a former IRS employee and several others. Johnson was convicted of conspiracy and filing false claims/tax returns to the IRS in a series of schemes that defrauded the U.S. Government of more than $1 million. Johnson was also found guilty of filing false claims while he was on pretrial release. U.S. District Court Judge Stewart Dalzell ordered Johnson to pay restitution in the amount of $1.24 million and ordered three years of supervised release.
Johnson and two co-conspirators, former IRS employee Patricia Fountain and Larry Ishmael, were convicted at trial in March 2013. The defendants solicited claimants whose personal information they used to file false tax returns claiming the Telephone Excise Tax Refund (TETR) in 2007 and the First Time Homebuyer Credit in 2009. These three defendants each received fraudulently obtained TETR refunds. Fountain also used one of the claimant’s information to file a false tax return in 2008. Fountain and Johnson also participated in separate schemes to file false tax returns between 2010 and 2012. Johnson continued his scheme while he was awaiting trial in this case.
For each of the schemes, the defendants charged claimants a cash fee. With respect to her TETR scheme, which Fountain engineered using inside information from the IRS, Fountain warned that she would “red flag” those claimants who received a refund without paying her $400 fee. She then filed amended returns for certain claimants whom she believed had not paid the fee, causing the IRS to demand repayment from them. Fountain and Ishmael pooled their cash fees for their mutual use, including an $11,299 down payment on a Mercedes Benz R350, which Fountain structured by paying $9,900 in cash and charging the rest to a credit card.
In addition to the charges of conspiracy and filing false claims/tax returns, Fountain was convicted of abusing her public office and extortion under color of official right. She was sentenced last week to 19 years in prison. Ishmael’s sentencing hearing is scheduled for July 26, 2013. Andre Bruce, Howard Chilsom, William Martin, and the defendant’s father, Calvin Johnson Sr., were all sentenced in April 2013.
The case was investigated by the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. It is being prosecuted by Assistant United States Attorney Joe Khan and Department of Justice, Tax Division Trial Attorney Tiwana L. Wright.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Internet Scammer Indicted for FraudRead the Press Release
SYRACUSE, NEW YORK —United States Attorney Richard S. Hartunian announced that Wei Yee Cheng, 43, of Ithaca, New York, has been sentenced following his conviction for a violation of 26 U.S.C. § 7206(1), filing a false tax return.
On January 8, 2013, the defendant pled guilty to Count 1 of single-count Information 12-CR-566, charging the defendant with willfully making and subscribing U.S. Corporation Income Tax Return Form 1120-A for taxpayer Green Olive, Inc. for the calendar year 2007, falsely declaring the amount of income of the Kyushu Japanese Restaurant, operated by Green Olive, Inc., to be $774,769.00, omitting the Kyushu’s Restaurant’s cash income of $164,545.00, all in violation of Title 26, United States Code, Section 7206(1).
The defendant was sentenced by J. Thomas McAvoy in Binghamton, NY. The defendant was sentenced to a term of probation for a period of 4 years, and was ordered to pay restitution to the Internal Revenue Service in amount of $223,327.00, an amount that reflected the tax losses from the years 2006-2010. The defendant was also ordered to perform 100 hours of community service and to pay a special assessment of $100.
This case was investigated by the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Gwen Carroll. For further information, contact Executive Assistant U.S. Attorney John G. Duncan at 315-448-0672.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 18, 2013, before U.S. Magistrate Judge Keith Stron, the following individual was arraigned:
DUANE ANTONIO MARTELL, a 23-year-old resident of Poplar, appeared on charges of (2) counts of assault with a dangerous weapon and (1) count of assault resulting in serious bodily injury within the exterior boundaries of the Fort Peck Indian Reservation. He is currently detained. If convicted of these charges, MARTELL faces possible penalties of 10 years in prison, a $250,000 fine, and 5 years supervised release on each count. Assistant U.S. Attorney Laura B. Weiss is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Poplar Police Department.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 18, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
FAWN HAHN TADIOS, a 41-year-old resident of Box Elder, appeared on charges of Counts I & II: Theft from an Indian Tribal Organization Receiving Federal Grants, Count III: Theft from an Indian Tribal Organization, and Count IV: Theft from a Health Care Facility. TADIOS is currently released on special conditions. If convicted of these charges, TADIOS faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on Counts I, II, and IV. On Count III, TADIOS faces possible penalties of 5 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States. The investigation was a cooperative effort between the U.S. Department of Health and Human Services - Office of Inspector General and the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment Charges Conspiracy to Hide Drugs in ShipmentsRead the Press Release
Jesus Estaban Reynoso, 34, of Camden, NJ, and Jose Francisco German-Vallejo, 31, of Lindenwold, NJ, are charged by indictment, unsealed today, in a drug conspiracy involving heroin, announced United States Attorney Zane David Memeger. The defendants were arrested this morning
According to the indictment, the defendants had co-conspirators in Panama who would hide shipments of drugs in stereo speakers and ship them to addresses provided by Reynoso. German-Vallejo allegedly recruited people to provide shipping addresses. When the parcels arrived, the recruits would either deliver the parcels to the defendants or the defendants would pick up the parcels. The recruits were paid for providing the addresses for the shipments. It is further alleged that Reynoso and German-Vallejo knowingly and intentionally attempted to possess with intent to distribute approximately1,066 grams of a mixture containing heroin. The indictment charges each defendant with one count of conspiracy to import one kilogram or more of heroin, one count of conspiracy to distribute one kilogram or more of heroin, and one count of attempted possession with intent to distribute one kilogram or more of heroin.
If convicted of all charges, Reynoso faces a mandatory sentence of life in prison, a fine, and a $300 special assessment; German-Vallejo faces a 10 year mandatory minimum sentence up to life in prison, a fine, up to five years of supervised release, and a $300 special assessment.The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Nancy Rue.
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PATTY HARTMAN, Media Contact, 215-861-8525INTERPOL Washington Supports ICE Case on Serbian FugitiveRead the Press Release
WASHINGTON - A Serbian man wanted for being the alleged getaway driver in a murder and attempted murder investigation was deported from the United States Monday. He was escorted to Belgrade, Serbia, after leaving Washington Dulles Airport, by officers with U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO), Washington Field Office.
Milos Mihajlovic, 29, a native of Serbia, entered the United States in May 2008, as a nonimmigrant visitor. On June 20, 2011, INTERPOL issued a red notice for Mihajlovic for attempted aggravated murder and unlawful possession of arms and explosives due to his involvement in an April 2008 shooting which left one person dead and two others injured in Nis, Serbia. Four days later, following an encounter in northern Virginia with a Fairfax Police Department officer, he was turned over to ICE's Homeland Security Investigations (HSI) Washington.
Mihajlovic was ordered removed by an immigration judge in November 2011. He appealed the decision to the Board of Immigration Appeals, who remanded the case back to the judge for additional evidence and testimony. The judge again ordered him removed March 4.
“Individuals like Mihajlovic, who come to the United States to find safe haven from crimes they committed in their native country, are not welcome here and will be removed,” said M. Yvonne Evans, field office director for ERO Washington.
This investigation and removal was coordinated with HSI Attaché Vienna, HSI Attaché Paris, the Regional Security Office Belgrade, INTERPOL Washington and INTERPOL Belgrade.
Since Oct. 1, 2009, ERO has removed more than 646 foreign fugitives from the United States who were being sought in their native countries for serious crimes, including kidnapping, rape and murder. ERO works with HSI's Office of International Affairs, foreign consular offices in the United States, and INTERPOL to identify foreign fugitives illegally present in the country.
Heroin Dealer Sentenced to 11 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Awal Mohammed, age 38, of Greenbelt, Maryland, today to 136 months in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at his week-long trial, on December 27, 2011, Maryland State Police stopped a car in which Mohammed was the front seat passenger and seized at least 971 grams of heroin from the glove compartment. Mohammed had previously used a courier from Ghana to bring the heroin into the United States and was en route to sell the heroin to a buyer in Baltimore. Mohammed had previously sold heroin brought in from Ghana to other dealers and customers. It was foreseeable to Mohammed that the conspiracy would distribute or possess with the intent to distribute at least 1,000 grams of heroin.
United States Attorney Rod J. Rosenstein commended the USCIS, DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kenneth S. Clark, who prosecuted the case.
Head of New Haven Drug Trafficking Ring Sentenced to 25 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSEPH JACKSON, also known as “Mighty” and “M.I.,” 37, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 300 months of imprisonment, followed by five years of supervised release, for operating an extensive New Haven narcotics trafficking ring.
This matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by JACKSON and centered in the Newhallville section of New Haven and Hamden. At the time, JACKSON was one of the principal suppliers of crack cocaine in and around New Haven. The investigation revealed that JACKSON purchased multiple kilograms of cocaine from various sources of supply, and then converted a large majority of the cocaine into crack cocaine. JACKSON then provided distribution quantities of crack to others who sold it on his behalf and gave the proceeds to JACKSON. At times, JACKSON sold crack and powder cocaine to his own customers.
Forty-seven individuals were charged in federal court with various narcotics offenses as a result of this investigation. All have been convicted.
“This significant sentence is appropriate for a defendant who operated a massive crack cocaine distribution network in New Haven, and whose multiple prior drug trafficking convictions failed to deter him from criminal behavior,” stated Acting U.S. Attorney Daly. “Hopefully, this sentence will serve as a warning to others: Drug trafficking will not be ignored and the federal penalties, especially for repeat offenders, are severe. I thank the FBI and DEA task forces and the New Haven and Hamden Police Departments for their cooperation and terrific investigative efforts.”
JACKSON’s criminal history includes seven state drug trafficking felony convictions.
Acting U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
JACKSON was arrested on October 28, 2010. On that date, federal agents executed search warrants at various locations, including JACKSON’s residence on Winchester Avenue in New Haven and a West Haven apartment that JACKSON used to process, store and package narcotics. A search of the Winchester Avenue residence revealed a Taurus .40 caliber semi-automatic pistol with an obliterated serial number, crack cocaine and cash. A search of the West Haven apartment revealed one kilogram of cocaine, 150 grams of crack packaged for distribution, multiple cell phones, drug packaging materials and cash.
As part of his sentence, Judge Burns ordered JACKSON to forfeit two automobiles, two motorcycles and approximately $72,325.
On February 1, 2013, JACKSON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).
This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.
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[email protected]Glen Carbon Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
A Glen Carbon man pled guilty in federal district court on June 17, 2013, to charges of, Count 1, Receipt of Child Pornography, and, Count 2, Possession of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Arlynn Gene Georgeson, 54, of Glen Carbon, Illinois, faces a term in prison on Count 1 of not less than five years but not more than 20 years, a fine up to $250,000, and a term of supervised release of five years to life. Georgeson faces a term in prison on Count 2 of not less than ten years, but not more than twenty years, a fine up to $250,000, and a term of supervised release of five years to life. Georgeson also agreed to forfeit the computer used to commit the charged offenses. In addition, upon his release from prison, Georgeson must register as a sex offender as a condition of his supervised release. Sentencing is scheduled for October 1, 2013.
Evidence presented at the change of plea hearing revealed that, on September 27, 2011, during an undercover operation, two FBI agents in separate states were both able to download images of minors engaged in sexually explicit conduct from a computer that was later linked to Georgeson. Both offices forwarded this information to the FBI’s Fairview Heights Office which obtained a search warrant for Georgeson’s residence in Glen Carbon, Illinois.
One of the items seized during the execution of the search warrant was a Dell Studio Laptop Computer, Model 1555. A forensic examination of the Dell laptop revealed approximately 16,282 images and 512 videos of minors engaged in sexually explicit conduct. The examination also revealed that several of the images of the minors engaged in sexually explicit conduct had been downloaded by Georgeson, using a file sharing program, on December 28, 2011.
During the search of his residence, Georgeson agreed to provide a voluntary statement to law enforcement officers. Georgeson stated that he was the sole user of the file sharing program found on the Dell Studio laptop, and that he initially used the program to download music. Georgeson stated that he began to see images of minors engaged in sexually explicit conduct in some of the downloads, and subsequently started searching for such image and/or video files. Georgeson said that he viewed the “younger” images and that gender was not an issue for him. He described “younger” as being a prepubescent with no hip or breast development. He also admitted having some images involving infants saved to his laptop computer. Finally, Georgeson admitted saving the images and videos of minors engaged in sexually explicit conduct to the laptop computer, stating that he downloaded them while his wife was at work.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Former State Social Service Supervisor Pleads Guilty in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – Michael Bowman, age 61, of Baltimore, pleaded guilty yesterday to wire fraud in connection with a scheme to use personal identifying information of individual bank accounts holders to defraud banks.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office and Inspector General William E. Johnson, Jr. of the Maryland Department of Human Resources.According to his plea agreement, Bowman was a supervisor for the Maryland Department of Social Services. In September 2011, Bowman’s work email account was flagged for suspicious activity. An email contained an attachment which listed numerous names, bank account numbers and other personal identifying information. Bowman admitted to law enforcement agents that he was lonely and had sought companionship online. Bowman met a man named “Steve” on a networking site in October 2010, who claimed to live in London, to be recently single and to be interested in Bowman. Steve promised to move in with Bowman in Baltimore if Bowman helped provide him with money, including funds to purportedly repair a house that Steve’s father left him upon his father’s death.
During the fraud scheme, which extended from October 2010 to September 2011, Steve also introduced Bowman to his friend “David.” Bowman never met Steve or David in person. Bowman was sent account numbers and personal identifying information of bank account holders which Bowman used to impersonate the individual victims. Once Bowman had gained access to the individual victim’s accounts, Bowman obtained account balance information, allowing the co-conspirators to link the individual victims’ account to accounts Bowman opened at banks. The co-conspirators then initiated wire transfers from the victim accounts, through Bowman’s accounts, to third party accounts controlled by Steve, David and others.
Over the course of the fraud scheme, Bowman accessed at least 88 individual accounts, resulting in an intended loss totaling $513,942.96. The only actual loss to a bank from the scheme was in the amount of $35,283.70.
Bowman also wired approximately $10,000 of his own money to Steve and David in small increments. He also participated in a scheme to traffic in counterfeit MoneyGram money orders, whereby he purchased a $1 MoneyGram money order at a grocery store, scanned it and emailed the scanned image to David. Bowman then received approximately 100 forged MoneyGram money orders in the mail, all in the amount of $997. At David’s request, Bowman mailed some of those money orders to a co-conspirator. MoneyGram suffered no actual loss from the scheme.
Bowman faces a maximum sentence of 20 years in prison and a fine of $250,000. Bowman has agreed to pay restitution of $35,283.70. U.S. District Judge James K. Bredar scheduled his sentencing for September 26, 2013, at 9:30 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Maryland Department of Human Resources - OIG for their work in the investigation. Mr. Rosenstein praised Special Assistant U.S. Attorney Paul K. Nitze of the Social Security Administration, who is prosecuting the case.
Former Sports Agent, Benjamin M. Geller, Pleads Guilty to Wire FraudRead the Press Release
BENJAMIN M. GELLER, age 53, a resident of Austin, Texas, pled guilty last Friday before U. S. District Judge Lance M. Africk to one count of wire fraud, announced U.S. Attorney Dana J. Boente.
According to court documents, GELLER was employed as a sports agent for, among others, Frank W. Warren, III, a former NFL player who played with the New Orleans Saints. In or around 1994, according to the Bill of Information, GELLER assisted Warren in obtaining a life insurance policy worth approximately $1,000,000. In the event of Warren’s death, the life insurance proceeds were going to fund a trust, which was established by Warren and GELLER, for the benefit of Warren’s spouse. GELLER was named trustee of the trust.
In or around 2002, according to the Factual Basis, Warren died and the funds from the life insurance policy (approximately $1,000,000) were disbursed to a trust in Warren’s name for the benefit of his widowed spouse. From in or around 2003 through in or around 2007, according to court documents, GELLER acted as the trustee of the trust and was only permitted to expend funds as the trust provided; he was not permitted to expend trust funds for his own personal use. Despite that prohibition, according to court documents, from in or around 2003 through in or around 2007, GELLER unlawfully defrauded the trust and its beneficiary by spending over $500,000 in trust funds for his own personal use, including for travel, lodging, and entertainment purposes. GELLER also spent some of the $500,000 in trust funds for his own personal businesses, as well as for other, miscellaneous purchases.
(Download Factual Basis )