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Friday 7 June 2013
Rapid City Men Plead Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Kenneth Morales-Scott, Jr., and Cayleb Louis Young, both age 35, of Rapid City, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 4, 2013 and pled guilty to Possession with Intent to Distribute a Controlled Substance.
The maximum penalty upon conviction is 5 years of custody, a $250,000 fine, or both; 2 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The conviction arose from an incident that occurred in November 2012. Morales-Scott and Young traveled from Rapid City to California where Morales-Scott was provided over 10 pounds of marijuana to deliver to an individual in Wisconsin. Young became aware of the nature of the trip, and agreed to assist in delivery of the marijuana in exchange for being reimbursed. South Dakota Highway Patrol performed a traffic stop on a vehicle on Interstate 90 that was driven by Morales-Scott with Young as a passenger. During a subsequent vehicle search, troopers found marijuana in the trunk of the vehicle.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
A presentence investigation was ordered, and a sentencing date of August 19, 2013 was set for both Morales-Scott and Young. Both men were released pending sentencing.
Rapid City Man Indicted for Failing to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man has been indicted by a federal grand jury for allegedly failing to register as a convicted sex offender between November 2012 and January 2013.
Adam Trejo, age 24, was indicted by a federal grand jury on January 23, 2013 for failure to register or update as a sex offender. Trejo appeared before U.S. Magistrate Judge Veronica L. Duffy on June 4, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Trejo is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case.
Trejo was remanded to the custody of the U.S. Marshal. A trial date has been set for August 13, 2013.
Portland-Area Drug Trafficker Sentenced to over 17 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – Michael Thomas Ragnone, 37, of Portland, Oregon, was sentenced yesterday by U.S. District Judge Michael W. Mosman to 210 months (17.5 years) in prison and five years of supervised release, for his leadership role in a conspiracy responsible for distributing significant quantities of methamphetamine in the Portland metropolitan area.
“This 17-year sentence marks the culmination of an efficient investigation by the Clackamas County Interagency Task Force, the Drug Enforcement Administration (DEA) and an effective federal prosecution targeting a drug distribution network responsible for introducing significant quantities of methamphetamine into our community,” said U.S. Attorney Amanda Marshall. “Thanks to the hard work of our law enforcement partners, another drug dealer is off the streets.”
In March 2011, Clackamas County Interagency Task Force (CCITF) officers successfully introduced an undercover officer to an upper-mid level drug dealer known to them as “Russian John.” Agents identified “Russian John” as Michael Thomas Ragnone, the owner of R&M Motors car lot at 809 North Rosa Parks Way. Between April and September 2011, agents conducted several controlled buys of methamphetamine from Ragnone and his drug couriers, in multiple ounce quantities. Surveillance officers observed Ragnone driving a BMW M5, Mercedes E320, and Honda CRV. On September 7, 2011, agents arrested Ragnone and executed a search warrant at his car lot. They seized 15 firearms, over four pounds of methamphetamine, digital scales, and piles of stolen property including boat motors, bicycles, credit cards, and hundreds of catalytic converters.
At the defendant’s initial appearance in federal court, the magistrate judge released defendant to pretrial supervision, over the government’s objection. During his time on pretrial supervision, defendant continued to engage in criminal conduct by sending a methamphetamine-laced letter to his incarcerated girlfriend, using stolen credit cards, and diversifying his drug distribution business to include both heroin and methamphetamine. He was taken back into custody in October 2012. As a result of his pretrial misconduct, defendant lost 7 years’ worth of sentencing credit for “acceptance of responsibility.” On June 6, 2013, Judge Mosman sentenced Ragnone to 210 months in prison and imposed a money judgment of $500,000. Judge Mosman found that aggravating factors justified the lengthy prison term, including the firearms, defendant’s leadership role, and defendant’s post-indictment misconduct in the community while pending trial.
Ragnone was the final defendant to be sentenced in the overall CCITF investigation in which Ragnone’s co-conspirators in related cases received federal prison sentences of 70 months, 75 months, 87 months, 120 months, and 262 months.
This case was investigated by Clackamas County Interagency Task Force and the DEA. The case was prosecuted by Assistant United States Attorney Leah K. Bolstad and Special Assistant United States Attorney Steven T. Mygrant.
Porcupine Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that William Thunder Hawk, age 19, of Porcupine, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on May 30, 2013 and pled guilty to assault resulting in serious bodily injury.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine.
The charge relates to Thunder Hawk punching and kicking a female multiple times in the face and body near Porcupine between August 5 and 6, 2012. The assault resulted in severe facial swelling and fractured nasal bones.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Wayne Venhuizen.
A presentence investigation was ordered and a sentencing date was set for September 27, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Porcupine Man Charged with Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota man was indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Kevin Lance, age 47, was indicted on May 21, 2013 for conspiracy to distribute marijuana at Pine Ridge. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 3, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is not more than 5 years’ imprisonment and $250,000 fine. The charge is merely an accusation and Lance is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, and the Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Lance was released on bond pending trial. A trial date has not been set.
Pennsylvania Jeweler Sentenced to 51 Months in Prison for Running $3.4 Million Ponzi SchemeRead the Press Release
ALEXANDRIA, Va. – Matthew James Addy, 34, of Lancaster, Penn., was sentenced today to 51 months in prison, followed by three years of supervised release, for running a $3.4 million Ponzi scheme that involved the fake purchase and resale of wholesale jewelry and loose precious stones. Addy was also ordered to pay $2,741,321 in restitution to his victims and to forfeit to the government hundreds of thousands of dollars in jewelry.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge James C. Cacheris. Addy pleaded guilty to securities fraud charges on February 22, 2013.
According to court records, Addy owned Edward J. & Company, which operated a retail jewelry store in Lancaster called La Porte Jewelers. In 2010, Addy began recruiting individuals to invest in promissory notes purportedly linked to transactions involving wholesale jewelry and loose precious stones, which would be purchased through Addy’s businesses and resold to retail jewelers for a profit. Addy ultimately recruited more than 40 investors from throughout the United States, including within the Eastern District of Virginia, and from Europe, and obtained nearly $3.4 million in invested funds. Addy recruited many of the victim investors from within religious groups with which he was associated and used those affiliations to gain their trust—often referred to as “affinity fraud.”
The investment scheme was a fraud, Addy never conducted any of the contemplated wholesale jewelry transactions, and Addy used the vast majority of the invested funds on unrelated business and personal expenses and to support his comfortable lifestyle.
Approximately $665,000 was paid back out to investors during the course of the fraud as supposed profits on their investments and was designed to conceal the fraud and induce further investments in the scheme. Much of these payouts came directly from funds contributed by new investors, known as “Ponzi” payments.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Parmelee Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that Nathaniel Red Bird, age 32, of Parmelee, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 4, 2013 and pled guilty to Involuntary Manslaughter and Aiding and Abetting.
The maximum penalty upon conviction is 8 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on the evening of August 13, 2011 and into the early morning hours of August 14, 2011, when the victim died of asphyxiation from overlaying due to the negligence of Red Bird and a co-defendant.
The investigation was conducted by the Federal Bureau of Investigation and 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 26, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Owner of Michigan Inventory Counting Businesss <br /> Pleads Guilty to Tax FraudRead the Press Release
David P. Rowley, a resident of Jackson, Michigan, pleaded guilty yesterday before U.S. District Judge Denise Page Hood to filing a false individual income tax return, announced Kathryn Keneally, the Assistant Attorney General for the Justice Department's Tax Division, and Barbara L. McQuade, the U.S. Attorney for the Eastern District of Michigan.
According to documents filed with the court, between 1999 and 2009, Rowley owned and operated an inventory business for automobile dealerships known as Kennedy Inventory & Service Inc. (KIS). The business also operated under the names D&P Inventory and Spartan in Ohio Inventory. At Rowley’s direction, KIS withheld trust fund taxes, which are the employee portion of Federal Insurance Contributions Act taxes, and employee income tax withholding from his own wages as well as from the wages of the approximately 50-100 employees that it employed at any given time during this period. Also at Rowley’s direction, KIS failed to pay over those trust fund taxes to the Internal Revenue Service (IRS). In addition, Rowley failed to timely file Employer's Quarterly Federal Tax Returns for KIS for quarters during 1999 through 2006 and Individual Income Tax Returns for himself for tax years 2002 through 2007.
In March 2008, Rowley filed 32 delinquent employer tax returns for KIS for years 1999 through 2006 in which he falsely stated that the company had paid over its employees’ trust fund taxes to the IRS when it had not. In November 2008, Rowley filed delinquent individual tax returns for himself for 2002 through 2007. On those returns, he falsely reported that KIS had withheld income taxes from his wages. The tax loss to the government from Rowley’s fraud was between $200,000 and $400,000.
Rowley faces a maximum sentence of three years in prison, one year of supervised release, a $250,000 fine and a $100 special assessment. He has agreed to pay restitution of $303,433.12 to the IRS. Sentencing is scheduled for Sept. 5, 2013.
The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorney Daren Firestone of the Justice Department's Tax Division is prosecuting the case.Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Niagara Falls Man Sentenced for Drug PossessionRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Octavius Miller, 32, of Niagara Falls, New York, was sentenced by Chief United States District Judge William M. Skretny to 7 years imprisonment and 3 years of supervised release for his conviction of Possession with Intent to Distribute Cocaine Base (crack).
Assistant U.S. Attorney Robert C. Moscati said that during the execution of a search warrant in December 2010, law enforcement officers found Miller to be in possession of approximately 123 grams of cocaine base, or crack, in his residence on Cleveland Avenue in Niagara Falls, New York. Miller admitted during his plea proceedings that he possessed the crack with the intent to sell it and that he had done so on numerous occasions before and after these drugs were seized.
The plea was the culmination of an investigation on the part of the Niagara Falls Police Department, under the direction of Superintendent Bryan DalPorto, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Joseph A. Anarumo, and the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division.
New Boston, Texas Woman Arrested for Mailing Threatening CommunicationsRead the Press Release
Department of Justice
Office of Public AffairsTEXARKANA, Texas – A 35-year-old New Boston, Texas woman has been arrested for a federal violation in the Eastern District of Texas, announced U.S. Attorney John M. Bales and FBI Special Agent in Charge Diego Rodriguez.
Shannon Richardson, also known as Shannon Guess and Shannon Rogers, was arrested today pursuant to a criminal complaint issued by U.S. Magistrate Judge Caroline Craven. The complaint charges Richardson with mailing a threatening communication to the President of the United States.According to the arrest affidavit, on May 20, 2013, Richardson is alleged to have actually mailed three letters containing the toxin ricin. The letters were sent to President Barack Obama and Mark Glaze in Washington, D.C., and Mayor Michael Bloomberg in New York City. Richardson was arrested today in Mt. Pleasant, Texas, and appeared before Judge Craven this afternoon in Texarkana, Texas, for an initial appearance.
If convicted, Richardson faces up to10 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service and the U.S. Secret Service. Also providing assistance to the investigation are the New Boston, Texas Police Department, the Texas Department of Public Safety and the Shreveport, Louisiana Police Department. This case is being prosecuted by Assistant U.S. Attorneys D. Ryan Locker, Frank Coan and Brit Featherston.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Nenana Man sentenced to six months in prison for illegal wildlife traffickingRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that a Nenana, Alaska, resident was sentenced for violating federal wildlife laws, including the Lacey Act, the Marine Mammal Protection Act and the Migratory Bird Treaty Act.
Miles W. Martin, 61, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to six months in prison. He pled guilty in March 2013, to four counts of a twenty-eight count indictment which charged Martin with wildlife trafficking involving the illegal sale of migratory birds, smuggling of wildlife, illegal sale of marine mammal parts and conspiracy
Along with his prison sentence, Martin’s sentence banned him from selling wildlife parts for life, required him to relinquish to the United States more than 900 pounds of wildlife parts including lion, bear, walrus ivory, parts of seal, polar bear parts, and elephant ivory, and to pay a fine of $6,500. He also received three years supervised release following his prison term.
Martin admitted to being involved in a lengthy and long term walrus ivory smuggling conspiracy, as well as to being involved in the smuggling of wildlife parts world-wide, and to the illegal sale of migratory bird parts.
Regarding his involvement in illegal walrus ivory sales, Martin admitted that from at least February 2010 and continuing up to March 9, 2011, he conspired with others to illegally purchase walrus tusks and walrus parts for illegal resale, transport, and export from the United States. Between July 2010 and March 2011, Martin’s two co-conspirators traveled to Savoonga, Alaska, and purchased walrus tusks and parts taken from animals recently killed and tagged by individuals in Savoonga. The co-conspirators transported the walrus tusks and parts to their home in Glennallen, Alaska, and then transported some of those tusks and parts to Nenana, Alaska and Fairbanks where they transferred them to Martin. In August 2010, and as part of the conspiracy, Martin paid $2,138 for the airline tickets and gave $1,000 cash to the co-conspirators for their trip. Approximately 275 pounds of walrus tusks were purchased on that trip. In exchange for financing that trip, Martin received raw walrus tusks from the co-conspirators, and later illegally sold some of those tusks.
Martin illegally purchased at least 26 walrus tusks from the two co-conspirators who provided Martin with bogus “gift” letters, attempting to disguise Martin’s illegal purchase of the walrus ivory. Martin and the other co-conspirators also attempted to dye the walrus tusks to make the tusks look like fossil ivory in an effort to conceal the illegality of the walrus tusk purchases and sales. Martin’s plea agreement also detailed the sale of a walrus head (with tusks) to a customer in Argentina, and the smuggling of the walrus head out of the United States without the proper customs permits.
He also admitted the illegal sale of marine mammal parts to an undercover agent including: 20 seal claws; one polar bear tooth; one tooth offered for sale as a whale tooth which was a tooth of a seal or sea lion; polar bear teeth; fur; and various migratory bird parts.Martin further admitted that in August 2010, he knowingly exported walrus ivory from Alaska to a customer in Denmark contrary to federal law, including the Convention on International Trade in Endangered Species and the Endangered Species Act. Martin on numerous occasions between May 2009 and April 2011, unlawfully sold and exported wildlife such as wolf, lion, lynx, and walrus parts, to customers outside the United States including the Czech Republic, United Kingdom, Italy, Australia, Belgium, Argentina, Denmark, Japan, Canada, Finland, Norway, Brazil, and Germany. Between May 2009 and April 2011, Martin exported at least 30 packages of wildlife parts without obtaining an export license, an International Trade in Endangered Species export permit or the necessary wildlife export documentation.
Between February 2007 and November 2012, Martin illegally purchased, sold, and exported wildlife parts and engaged in approximately 225 transactions totaling approximately $58,000.
As noted in his sentence, Martin relinquished to the U.S. Fish and Wildlife Service more than 900 pounds of wildlife parts kept in his home. These parts included walrus parts, seal teeth, bear parts, bird parts, whale parts, and walrus ivory tusk tags from recently killed walrus, Some of the ivory tusk tags were still attached to small chunks of ivory, some of which had been dyed in order to make the raw ivory appear to be fossilized ivory and thus not prohibited for sale by the Marine Mammal Protection Act.
In court, Martin stated that his access to the internet facilitated his illegal wildlife trafficking and that he was out of the wildlife business for the rest of his life.
Karen Loeffler, United States Attorney for Alaska, noted that protection of our spectacular and special Alaskan wildlife and enforcement of the laws that govern and protect access to these animals is an important priority for law enforcement.
Stan Pruszenski of the U.S. Fish and Wildlife Service Office of Law Enforcement said, “Significant wildlife violations require significant punishment. This sentence will serve to deter others similarly inclined.”
Ms. Loeffler commends the U.S. Fish and Wildlife Service Office of Law Enforcement for the investigation of this case and the assistance provided from the Alaska Wildlife Troopers and the National Park Service.
Mother and Daughter Charged in Passport SchemeRead the Press Release
Doris Rotondi, 86, and her daughter Joy Taylor 55, both of Colwyn, Pennsylvania, were charged today by Indictment with conspiracy to commit passport fraud and making, uttering and possessing counterfeit checks, false statements in United States passport applications, passport mutilation, theft of government property, and failure to disclose income to the Social Security Administration, announced United States Attorney Zane David Memeger.
The indictment charges that the defendants have provided false information to obtain passports and then used the passports to open bank accounts in false names and for other purposes.
If convicted, Rotondi faces a maximum possible sentence of 60 years’ imprisonment, a $1.75 million fine, 5 years supervised release and a $400 special assessment.
If convicted, Joy Taylor faces a maximum possible sentence of 95 years’ imprisonment, a $2.5 million fine, 5 years supervised release and a $700 special assessment.
The case was investigated by the Department of State Office of the Inspector General, U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Social Security Administration, Office of the Inspector General and is being prosecuted by Assistant United States Attorney Pamela Foa.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Michigan Woman Arrested for Criminal ContemptRead the Press Release
Doreen Hendrickson of Commerce Township, Mich., was arrested today following an indictment by a federal grand jury for criminal contempt, the Justice Department and Internal Revenue Service (IRS) announced.
Hendrickson and her husband, Peter Hendrickson, filed tax returns for 2002 and 2003 on which they claimed more than $20,000 in fraudulent tax refunds. These returns were based on the frivolous argument set forth in Peter Hendrickson’s book, Cracking the Code, that only federal, state and local government employees are liable for the payment of income taxes. In May 2007, as part of a lawsuit against the Hendricksons filed by the department’s Tax Division, U.S. District Judge Nancy G. Edmunds in Detroit entered a permanent injunction that barred the Hendricksons from filing additional false tax returns. Judge Edmunds also ordered the Hendricksons to file amended 2002 and 2003 returns. According to the indictment, Doreen Hendrickson violated this injunction by failing to file amended 2002 and 2003 tax returns and by filing a false 2008 tax return that was based on the arguments in her husband’s book.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case was investigated and is being prosecuted by Trial Attorneys Melissa S. Siskind and Jeffrey B. Bender of the Tax Division, with the assistance of IRS-Criminal Investigation.
Man from Mexico Charged with Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that a man from Mexico has been indicted by a federal grand jury.
Jesus Ochoa Aguirre, age 30, was indicted by a federal grand jury on October 10, 2012 for Illegal Reentry after Deportation. Ochoa Aguirre appeared before U.S. Magistrate Judge Mark A. Moreno on June 6, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Ochoa Aguirre is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Ochoa Aguirre was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lummi Tribal Staff Recognized for Outstanding Work with Victims of CrimeRead the Press Release
The Lummi Nation’s Crime Victims Unit and Lummi Police Detective Kelley Long were recognized this week by U.S. Attorney Jenny A. Durkan for their outstanding work with crime victims. The Lummi Victims of Crime Unit was established 23 years ago and has 14 staff members working to assist those who have suffered domestic violence, abuse, assault or other victimization. U.S. Attorney Durkan made the presentation Tuesday June 4, 2013 at a meeting of the Lummi Nation Tribal Council.
“Nothing is more important than the care we provide to those who have been touched by crime and violence,” said U.S. Attorney Durkan. “The staff of the Lummi Victims of Crime Office dedicates their services to helping families who are at their lowest point – often coping with terrible loss. On behalf of all the attorneys and the victim/witness coordinators in my office, I want to thank the Lummi staff and the tribe for all they do to help the victims heal and to help us hold the perpetrators accountable.”
The presentation was a surprise for the Victims of Crime staff members including Victim Advocates Winona Boxberger, Irenee Owings, Olivia Solomon, Charlene Casimir-George, and Terrence “TJ” Adams. Two attorneys who assist tribal members in contested family law matters: Michelle Hull and Ben Pratt, and their legal assistant Malcolm Owings. And four staff members who work at the Lummi shelter were recognized: Lorayne Dennis, Tanya McCutchen, Tracy Douglas, and Patty John. Office staff Misty Cisimir and Andrea Johnson were also recognized.
Nikki Finkbonner, the Program Coordinator for the Victims of Crime Office accepted the certificate on behalf of her staff. The Lummi Victims of Crime Office provides comprehensive victim services including: domestic violence, sexual abuse/assault, teen dating violence, stalking, and emergency shelter. The Lummi Victims of Crime Department provides direct services including crisis counseling, follow-up contacts, therapy counseling, group treatment, legal assistance, personal advocacy, compensation claims, transportation, transitional housing, emergency shelter, and death notifications with Law Enforcement.
U.S. Attorney Durkan also applauded the excellent work of Lummi Tribal Detective Kelley Long who has worked closely with the FBI to investigate crimes that are forwarded to the U.S. Attorney’s Office for prosecution. The Lummi Tribal Police Department has approximately 20 commissioned officers.
The Lummi Nation is a self-governing, federally recognized Indian Tribe. The Lummis are the third largest tribe in Washington State, serving over 5,000 members whose median age is 29 years old.
Lower Brule Man Charged with Abusive Sexual Contact of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Robert Stricker, age 39, was indicted by a federal grand jury on November 15, 2012 for Abusive Sexual Contact of a Minor. Stricker appeared before U.S. Magistrate Judge Mark A. Moreno on June 5, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 3 years of imprisonment, a $250,000 fine, or both; 2 years of supervised release, a mandatory minimum term of 5 years up to life of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Stricker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Stricker was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Los Angeles-Based Businessman Convicted in Scheme to Evade Customs Duties on $30 Million of Chinese-Made TextilesRead the Press Release
A federal jury today convicted Sunil Jiwat Mirwani and his corporation, M Trade, Inc., in connection with a scheme to evade customs duties on more than $30 million in Chinese-made jeans, skirts, shorts and other wearing apparel.
Both Mirwani and his corporation were charged with one count of conspiring to defraud the United States, two counts of importing goods by means of false statements, and one count of conspiring to launder money. The case was tried before a jury beginning on June 4, 2013. This afternoon, after less than a day of deliberations, the jury returned guilty verdicts on all four counts for both defendants.
The evidence presented at trial showed that as part of the conspiracy, Mirwani hired a group of San Diego-based businessmen and logistics professionals to initiate shipments of Mirwani’s merchandise from ports in China to the Port of Long Beach, California. When the goods arrived, Mirwani and his conspirators would ensure that the merchandise was classified as “in bond”—meaning it would not enter the commerce of the United States, but instead be transshipped through the territory of the United States to Mexico. Rather than complete the transshipment to Mexico, however, Mirwani and his conspirators would divert the merchandise to Mirwani’s El Monte, California-based warehouse, as well as to other warehouses in the Los Angeles-area. Having imported this merchandise effectively duty-free, Mirwani would then sell his jeans, shorts and skirts within the United States at an advantage over his law-abiding competitors—including domestic American manufacturers of similar goods and foreign manufacturers who had paid the applicable duties on their imports. As part of the scheme, Mirwani and his conspirators falsified customs documentation and database entries, even going so far as to forge special perforation marks found on particular customs filings.
The evidence showed that Mirwani also conspired to launder money, transmitting nearly $10 million from M Trade, Inc.’s bank account to the account of Mirvana International, a Hong Kong-based company that Mirwani shares with his twin brother. In addition, Mirwani transmitted similar sums to the Mirvana International account through other intermediary accounts in the United States and Mexico. Finally, Mirwani also transmitted money through M Trade Inc.’s account directly to mainland China. The international wire transfers served to conceal proceeds of the fraud as well as to help fund future fraudulent shipments.
U.S. Attorney Duffy said she was pleased with the verdict: “Not only does this type of fraud deplete our public treasury, but it also deprives domestic manufacturers and law-abiding importers of a level playing field. This prosecution and today’s convictions underscore our commitment to protecting the economic health of the United States and ensuring that no one exploits American and international markets for their personal gain.”
“Today’s verdict shows that the jury refused to believe that Mr. Mirwani was a confused dupe, but rather through his own crafty, deceitful means, wittingly conspired to pocket over $500,000 by evading the proper customs taxes and laundered the proceeds to avoid detection by the authorities,” said Jose A. Gonzalez, Special Agent in Charge for Internal Revenue Service Criminal Investigation (IRS CI). “Evasion of any type of tax, income tax or otherwise, is a crime and IRS CI will prosecute known perpetrators to the fullest extent of the law.”
A sentencing hearing is scheduled for September 9, 2013, at 9:00 a.m. before United States District Judge Michael M. Anello.
DEFENDANT Case Number: 12CR3137-MMA Sunil Jiwat Mirwani
M Trade, Inc SUMMARY OF CHARGES AND MAXIMUM PENALTIESCount 1: Conspiracy to Defraud the United States – 18 U.S.C. § 371. Maximum penalties: 5 years in prison, 3 years of supervised release, $250,000 fine and a $100 special assessment
Counts 2 and 4: Entry of Goods by Means of False Statements – 18 U.S.C. § 542. Maximum penalties: 2 years in prison, 1 year of supervised release, $250,000 fine and a $100 special assessment
Count 57: Conspiracy to Launder Monetary Instruments – 18 U.S.C. § 1956(a)(2)(A) and (h). Maximum penalties: 20 years in prison, 3 years of supervised release, $500,000 fine (or a fine worth twice the amount of the laundered money) and a $100 special assessment.
INVESTIGATING AGENCIESImmigration and Customs Enforcement – Homeland Security Investigations
Internal Revenue Service – Criminal Investigations
United States Food and Drug AdministrationLittle Rock Man Found Guilty on Federal Sex Trafficking ChargeRead the Press Release
First Sex Trafficking Case Prosecuted by Eastern District of Arkansas
Little Rock - Christopher R. Thyer,United States Attorney for the Eastern District of Arkansas, Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, and Little Rock Police Department Chief Stuart Thomas, announced that a federal jury found Jermaine Lamon Roy, age 22, of Little Rock guilty of one count of sex trafficking by use of force, fraud, or coercion. Roy will be sentenced at a later date to be set by the court. He faces a statutory minimum of 15 years to life in the Bureau of Prisons.
"This is an important case for the victims of sex trafficking," stated Thyer. "Because of the investigative commitment by the Little Rock Police Department's Vice Squad, this case was brought to the federal level for prosecution. Together with the FBI, they provided the necessary evidence to stop the violence and forced sex trafficking committed by Roy. While this is the first sex trafficking case prosecuted in the Eastern District of Arkansas, I feel sure there will be more. Those who devalue human dignity will meet justice."
"Today's guilty verdict is the first conviction resulting from the work of our Denied Innocence Task Force, a partnership between my office and the Little Rock, North Little Rock, Benton, Bryant, and Conway Police Departments, the Saline County Sheriff's Office, Arkansas State Police, Homeland Security Investigations, and the United States Marshal's Service," stated FBI Special Agent in Charge Randall C. Coleman. "Working together, we will continue to aggressively investigate those who participate in sex trafficking."
"We are grateful for work of the Denied Innocence Task Force and for the diligent prosecution of this case by the United States Attorney's Office," said Chief Thomas. "I hope this sends an important message that we will continue to pursue such cases and that we will be successful."
The case was investigated by the Little Rock Police Department Vice Unit in conjunction with the FBI through the Denied Innocence Task Force. They conducted a series of three undercover prostitution operations. Through these operations they learned of a pimp working in Little Rock using the name Vegas. During the third undercover operation, the Denied Innocence Task Force came in contact with a victim who identified the man using the name Vegas as her pimp. Vegas, later determined by investigators as Jermaine Roy, was arrested as a result of that sting operation.
Roy was charged in a Superseding Indictment on May 9, 2013, with one count of sex trafficking by the use of force, fraud, or coercion in violation of Title 18, United States Code, Section 1591(a)(1).
The jury reached a verdict after four and one-half hours of deliberation following four days of testimony and presentation of evidence. Testimony from the victim, family members of the victim, and another prostitute who worked for Vegas showed that Roy routinely used force or threatened the use of force to cause the victim to engage in commercial sex acts.
This case was investigated by the Little Rock Police Department Vice Squad in partnership with the FBI Denied Innocence Task Force, of the FBI, the Little Rock, North Little Rock, Benton, Bryant, and Conway Police Departments, the Saline County Sheriff's Office, Arkansas State Police, Homeland Security Investigations, and the United States Marshal's Service. The case was prosecuted by Assistant United States Attorneys Marsha Clevenger, Tricia Harris and Kristin Bryant.
Kaufman County Man, Who Used Identities of Deceased Persons to Claim Federal Income Tax Refunds,Read the Press Release
is Sentenced to 60 Months in Federal Prison and Ordered to Pay Nearly $450,000 in Restitution
DALLAS — Jason Cano was sentenced this afternoon, by U.S. District Judge Barbara M. G. Lynn, to 60 months in federal prison and ordered to pay $447,830 in restitution following his guilty plea in January 2013 to one count of filing false, fictitious and fraudulent claims against the U.S. and one count of aggravated identity theft. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A criminal complaint was filed in January 2012 charging Cano with making false, fictitious or fraudulent claims, aggravated identity theft and wire fraud. In February 2012, a federal grand jury returned an 11-count indictment charging Cano with five counts of wire fraud, five counts of false, fictitious or fraudulent claims and one count of aggravated identity theft. He was arrested several months later, in September 2012, by special agents with Internal Revenue Service - Criminal Investigation (IRS-CI), in the Trenton, New Jersey area, and has been in federal custody since that time.
According to the factual resume filed in the case, beginning in 2008 and continuing through February 24, 2011, Cano prepared and filed at least 497 fraudulent federal income tax returns, claiming $883,427 in refunds, by using the names and social security numbers of deceased individuals. In fact, many of the identities were those of deceased 16-year-olds that the defendant had obtained from the Social Security death index, that was accessible through a number of public websites for a period of time.
The factual resume also states that Cano fabricated a Form W-2 for each return that contained a fictitious amount of paid wages and tax withholding, and those W-2 forms were purportedly issued by one of three employers, HI-LO Ozark Automotive, Labor Ready or Pappy’s Sand and Gravel. Cano filed most of these returns electronically using Turbo Tax and each return he filed requested that the refund be deposited into a reloadable prepaid debit card that Cano had acquired. After the refunds were loaded, Cano would use the cards for his own use and benefit, or provide them to friends and associates for their use.
In fact, according to the complaint filed in the case, the investigation into Cano’s activities began when IRS CI received information from a fraud compliance officer, at a company that issues stored value cards and prepaid debit cards, that an individual received three federal income tax refunds on one prepaid card. Generally, each tax payer is issued only one tax refund.
According to both the complaint and factual resume, on February 25, 2011, a federal search warrant was executed at Cano’s residence in Kemp, Texas, and IRS-CI agents seized dozens of documents containing the names, social security numbers, wages, employer information and direct deposit account numbers associated with the fraudulent returns he filed. The factual resume also states that a forensic exam of computers seized revealed that the Turbo Tax website had been accessed 1,876 times and the IRS website and bank-related websites had been accessed hundreds of times.
In September 2012, the Justice Department’s Tax Division issued a new directive to further the efforts of the Tax Division and U.S. Attorneys’ Offices to respond quickly and effectively to the challenges in stolen identity refund fraud (SIRF) cases. Additional information about the Tax Division and its enforcement efforts may be found at http://www.justice.gov/tax/.
IRS-CI was in charge of the investigation and Assistant U.S. Attorney Chris Stokes prosecuted.
Justice Department Reaches Agreement with California <br /> Water District on Bailout Under the Voting Rights ActRead the Press Release
The Justice Department announced that it has reached an agreement with the North Yuba Water District, a special district in California, that, if approved by the court, will allow for the district to bail out from its status as a “covered jurisdiction” under the special provisions of the Voting Rights Act, and thereby exempt the district from the preclearance requirements of Section 5 of the Voting Rights Act. The district covers part of Yuba County, Calif., which is a jurisdiction subject to Section 5. The agreement is in the form of a consent decree filed today in the U.S. District Court for the District of Columbia.
Under Section 5 of the Voting Rights Act, certain covered jurisdictions, determined according to Section 4 of the act, are required to seek preclearance for any changes in voting qualifications, standards, practices or procedures from the U.S. District Court for the District of Columbia, or from the U.S. Attorney General, prior to their implementation. Section 4 of the act provides that a covered jurisdiction may seek to “bail out,” or remove itself from such coverage, and therefore be exempted from the preclearance requirements, by seeking a declaratory judgment before a three-judge panel in U.S. District Court for the District of Columbia. A bailout judgment can be issued only if the court determines that the jurisdiction meets certain eligibility requirements for bailout contained in the statute, including a 10-year record of nondiscrimination in voting-related actions. The act also provides that the Attorney General can consent to entry of a judgment of bailout only if, based upon investigation, the Attorney General is satisfied that the jurisdiction meets the eligibility requirements.
The North Yuba Water District filed its bailout action in the U.S. District Court for the District of Columbia on March 29, 2013. District officials had contacted the Attorney General prior to filing its action, indicating that the district was interested in seeking a bailout. The district provided the department with substantial information, and the department conducted an investigation to determine the district’s eligibility. Based on that investigation, the department is satisfied that the district meets the Voting Rights Act’s requirements for bailout.
“In this case, the department carefully evaluated the information provided by the district, and conducted its own investigation, which has satisfied us that the district is eligible for bailout,” said Matthew Colangelo, Deputy Assistant Attorney General for the Civil Rights Division. “We appreciate the district’s cooperation in the resolution of this matter.”The consent decree details the legal and factual basis for a bailout determination and, if approved, will grant the district’s request. The court will retain jurisdiction of the action for 10 years and can reopen the action upon the motion of the Attorney General or any aggrieved person alleging conduct by the district that would have originally precluded the district from bailing out if it had occurred during the 10 year period preceding entry of the consent decree.
Information about bailout, the Voting Rights Act, and other federal voting laws is available on the Justice Department website at www.justice.gov/crt/voting. Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.Justice Department Announces Plan for Advancing Crime Victims’ Rights and Services in the Twenty-first CenturyRead the Press Release
The Justice Department today unveiled a plan calling for sweeping changes to advance crime victims’ rights and services in the 21st century.
Developed by the Office of Justice Programs (OJP) and Office for Victims of Crime (OVC), Vision 21: Transforming Victim Services Final Report, is the first collective examination in 15 years of current U.S. practices, funding and outreach in the crime victims’ field.
“Today’s announcement marks the latest step forward in the Department’s ongoing work to protect and empower those who have been victimized,” said Attorney General Eric Holder. “Through Vision 21, we’ve gained an unprecedented understanding of the current state of victim services from coast to coast. And we've developed groundbreaking strategies for responding to urgent needs, combating violence and abuse, and providing critical support to crime victims.”
Vision 21 documents the need to better understand who is affected by crime, how they are affected, how they seek help, who reports victimization and the reasons why some victims do not. The report calls for continuous, rather than episodic, strategic planning in the victim assistance field and for statutory, policy and programmatic flexibility to address enduring and emerging crime victim issues. It also calls for the development of evidence-based knowledge founded on data collection and analysis of victimization and emerging victimization trends, services, behaviors and enforcement efforts.
“This is a bold and creative plan to meet the needs of crime victims in the 21st century,” said Assistant Attorney General for OJP Karol V. Mason. “The recommendations in this report display the latest and best thinking in the field of victim services and set us on a course to ensuring services for all victims. I am grateful to my Principal Deputy Assistant Attorney General Mary Lou Leary and OVC’s Principal Deputy Director Joye Frost for leading Vision 21 and for their commitment to victims across the country.”
Leary and Frost previously joined Patrick Leahy, President Pro Tempore of the U.S. Senate, on April 24, to announce the framework for this report. For the Vision 21: Transforming Victim Services Final Report, please visit: www.ovc.gov/vision21.The Office of Justice Programs, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. For more information about OJP, please visit: www.ojp.gov.
Jamican national Pleads Guilty to defauding Hundreds of Senior Citizens in Jamaican Lottery ScamRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that O’Brain J. Lynch (age 28) of Jamaica, pleaded guilty to wire fraud, in violation of 18 U.S.C. § 1349 and 2. He faces a maximum of 20 years in prison and a fine of up to $250,000. Lynch is believed to be the first Jamaican national charged in the United States for this type of fraud.
A Jamaican Lottery Scheme is a form of mass-marketing fraud committed via the internet, telemarketing, or mass mailings. Jamaican criminal organizations contact victims and identify themselves as lawyers, government officials, law enforcement agents, or lottery company officials. The potential victims are led to believe they won an international multi-million dollar lottery. The fraudulent telemarketers then inform the victims that in order to receive their winnings the victim needs to pay an advance fee. This fee is usually described as a tax, insurance payment, or customs duty that must be paid to release the winnings. The victims are instructed to send the funds via mail or wire transfer.
The scammers routinely involve victims to help facilitate the laundering of financial transactions by receiving and withdrawing funds from prepaid cards and receiving and sending wire transfers. In an attempt to conceal and layer the proceeds from the lottery scams, the scammers direct victims to send funds, knowingly and unknowingly, to other victims and associates of the scammers within the United States. These victims and co-conspirators then transfer the proceeds of this fraud to the scammers in Jamaica by wire transfers. The Jamaican criminal organizations have modified the lottery scam into other variations of telemarketing schemes to include redirecting individuals Social Security Administration (SSA) benefits, direct deposit, automatic debit, re-routing schemes and other identity theft schemes.
According to documents filed in court, in March 2012, the SSA learned that a social security recipient, from Glendale, Wisconsin, was receiving social security benefits in the name of other recipients and cashing in these benefits. Special Agents from the SSA - Office of Inspector General (OIG) discovered the recipient was sending this money to Jamaica because he believed he had won “The Jamaican Lottery.” He said he was contacted by an official from Global International who informed him that he won $2.5 million and two (2) Mercedes Benz vehicles in a sweepstakes. He was then advised that in order for him to collect the money and the cars, he had to pay taxes, customs duty, and other fees. He initially sent his own money to Jamaica, and, once he had depleted his own assets, he was directed, by telephone, to accept checks, Direct Express cards, and other cash value cards in the names of other people (who were also victims), cash them out and then send the money to Jamaica. As a result, numerous victims did not receive their social security benefits, and instead they were mailed to Jamaica. Investigators from SSA discovered that hundreds of victims throughout the United States were losing their social security benefits and their life savings either because they believed that they had won “The Jamaican Lottery” or because, as part of another telemarketing scheme, they revealed enough information about themselves that allowed the thieves to fraudulently divert their money.
SSA -OIG, the Postal Inspection Service (USPS) and Homeland Security Investigations (HSI) joined forces, and were able to identify O’Brain Lynch, as being one of the principal individuals involved in this scheme in Jamaica. HSI reported that Lynch is a resident of Montego Bay, Jamaica, and formerly was a lawful permanent resident of the United States. HSI learned that Lynch and his girlfriend were coming to the United States for a vacation. Lynch was arrested in February 2013.
Numerous records showed that Lynch and his co-actors were involved in a massive telemarketing scheme involving hundreds of victims. They would identify vulnerable victims, and change the recipients’ addresses to a third party. They then had the third party send the money to Jamaica or to others in the United States, who would then wire the money to Jamaica. At the direction of Lynch (and other working with him) numerous victims received SSA Direct Express, netSpend, Green Dot, and other types of cash value cards in the names of other victims. In addition, items were ordered in the United States by Lynch and his co-actors and were paid for using money fraudulently obtained through the scheme. These items, including jewelry, cell phones, a computer tablet, various electronics and other items were received by victims or other co-actors in the United States, and then sent to Jamaica where they could not be traced or recouped. Many of these items have now been linked directly to Lynch.
As part of his plea agreement, Lynch has agreed to pay at least $100,000 in restitution. The restitution amount will be determined by the court at the time of sentencing. Special Agent in Charge William Cotter of the Social Security Administration, Office of Inspector General said, "The arrest and conviction of Obrain Lynch is a significant breakthrough in our investigation into this Jamaican Lottery Scheme, which has redirected millions of dollars in senior citizens' retirement benefits to thieves' accounts opened for the purpose of stealing this money. Lynch was a major organizer of this scam and he personally received or was responsible for defrauding hundreds of thousands of dollars from very vulnerable senior citizens. The Inspector General's Office for the Social Security Administration has worked very closely in this case with Homeland Security Investigations and the Postal Inspection Service and we will continue our collaborative effort to arrest and prosecute additional people involved with this scheme."
"Unscrupulous scam artists prey on the vulnerabilities of others and are solely motivated by greed," said Homeland Security Investigations Chicago Special Agent in Charge Gary Hartwig. "We will continue to work with our partners in Jamaica and other law enforcement agencies to put these criminal enterprises out of business. However, the best defense is to be very suspicious of anyone who asks for money up front so you can collect a lottery prize."
"Americans have lost millions of dollars to criminals from countries around the world in foreign lottery scams, said Pete Zegarac, Inspector in Charge, Chicago Division U.S. Postal Inspection Service. When one family member is harmed by a foreign lottery scam, the impact is felt by all. Losses can be monumental, sometimes entire life savings are wiped out. The United States Postal Inspection Service will continue to partner with the Inspector General's Office for the Social Security Administration and Homeland Security Investigations, as well as other law enforcement agencies, regulatory agencies and the financial industry to combat cross border fraud targeting U.S. consumers, particularly the elderly. The Postal Inspection Service will continue to aggressively investigate these crimes and arrest people like Lynch, who ruthlessly exploit American consumers."
This matter was investigated by special agents from the Social Security Administration - Office of Inspector General, the Postal Inspection Service and Homeland Security Investigations. The case is assigned to Assistant United States Attorney Karine Moreno Taxman for prosecution.
Indian National Convicted for Resisting Deportation OrdersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found Pal Sat, 42, of India, guilty of two counts of impeding or hampering his deportation. United States District Judge Dee D. Drell presided over the trial.
The defendant’s trial started Thursday and ended this afternoon with the jury returning the guilty verdict after deliberating for 45 minutes. Witness testimony and documents admitted at trial revealed that on Sept. 12, 2012 and Oct. 16, 2012, U.S. Immigration Enforcement Agents (IEA) brought the defendant to the Alexandria International Airport and attempted to put him on a commercial flight. The defendant began verbally and physically resisting officers, which prevented him from boarding the flight because of airline and Transportation Security Administration policies.
"The defendant’s actions showed that he had little respect for the law in this matter,” Finley stated. “His refusal to comply with lawful deportation orders on multiple occasions caused unnecessary cost to the taxpayers.”
Sat faces four years in prison, a $250,000 fine, and three years of supervised release for each count. Sentencing has been set for Sept. 27, 2013.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Special Assistant U.S. Attorney Robert J. France and Assistant U.S. Attorney Robert W. Gillespie Jr. are prosecuting the case.Harrold Man Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Harrold, South Dakota man has been indicted by a federal grand jury.
Thomas Morgan, age 37, was indicted by a federal grand jury on October 16, 2012 for Assault with a Dangerous Weapon. Morgan appeared before U.S. Magistrate Judge Mark A. Moreno on June 4, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Morgan is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Morgan was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Hanson Pipe & Precast to Pay $500,000 to Settle False Claims Act AllegationsRead the Press Release
Hanson Pipe & Precast, headquartered in Irving, Texas, has agreed to pay the United States $500,000 to settle False Claims Act (“FCA”) allegations, announced David Rivera, Acting United States Attorney for the Middle District of Tennessee.
The settlement resolves allegations that Hanson submitted false claims for payment to the United States for products that did not meet required specifications. These products included concrete end walls and catch basins that are typically used in and adjacent to roadway construction.
The United States alleged that Hanson submitted these claims after repeatedly certifying that its products were in reasonable compliance and were produced pursuant to applicable procedures. The investigation found, however, that many of the products did not meet specifications as they related to the strength and placement of rebar within the pre-cast products. Although Hanson provided these products for projects primarily administered by the Tennessee Department of Transportation, a substantial portion of the funding for these projects was provided by the United States through the Federal Highway Administration, an agency within the U.S. Department of Transportation (“DOT”).“Enforcement of the False Claims Act remains a top priority of the Department of Justice and this office,” said Acting U.S. Attorney David Rivera. “This enforcement effort extends to all efforts to procure funds from the United States and its agencies by false pretenses. The U.S. Attorney’s Office for the Middle District of Tennessee will continue to devote the resources necessary to vigorously protect taxpayers’ interests and aggressively pursue fraud, waste, and abuse.”
“The settlement announced today is a strong message to those that would seek to substitute inferior products in transportation-related projects that we will leave no stone unturned to ensure the safety of the Nation’s transportation system,” said DOT OIG Regional Special Agent in Charge Marlies Gonzalez. “DOT OIG remains committed to working with our law enforcement and prosecutorial colleagues, and other Federal and state partners to prevent and detect waste, fraud, and abuse.”
The federal investigation examined conduct originally discovered by the Tennessee Department of Transportation. An efficient and thorough investigation allowed a resolution to be achieved without filing a complaint, conserving judicial resources and government funds. The settlement was consummated with the understanding that the U.S. Department of Transportation, Federal Highway Administration, may take additional steps in its discretion and pursuant to the applicable regulations to require Hanson to adopt compliance measures to reduce the likelihood of future violations of the FCA and other procurement regulations.
This matter was investigated by the Department of Transportation and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis.Gainesville Accountant Sentenced to 72 Months in Prison for Wire Fraud and Tax EvasionRead the Press Release
ALEXANDRIA, Va. – Melvin Mooring, 54, of Gainesville, Va., was sentenced today to 72 months in prison, followed by three years of supervised release, in connection with the theft of approximately $3.3 million from a Chantilly, Va., company where Mooring served as the chief financial officer. Mooring was also ordered to pay $3,541,003.57 in restitution to his victims.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by United States District Judge Liam O’Grady. Mooring pleaded guilty to wire fraud and tax evasion charges on March 8, 2013.
From 2000 to 2011, Mooring served as the chief financial officer, or CFO, of K&R Industries, a private company in Chantilly, Va. According to court records, from 2004 to 2011, Mooring stole approximately $3.3 million from the company via company checks and wire transfers, which he routed through the bank account of a company he controlled in order to conceal their fraudulent nature. Mooring also altered company financial statements to conceal the fraud. Mooring used the funds for a luxurious home, travel, jewelry, and a BMW automobile, and to generally fund a comfortable lifestyle.
Mooring also failed to report the stolen funds as income on his individual income tax returns for the years 2005 through 2010, resulting in approximately $865,426 in losses to the United States Treasury.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Paul J. Nathanson and Tax Division Trial Attorney Tracy L. Gostyla prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Fort Thompson Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that Myron Touche, Sr., age 43, of Fort Thompson, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 4, 2013 and pled guilty to Assault with a Dangerous Weapon.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein Touche, on November 10, 2012, went to the trailer house of his niece and her boyfriend. Two individuals were arguing in the back bedroom, and Touche confronted them. He then grabbed a gun that was by the front door and pointed it at the victim. The victim and another individual were able to wrestle the gun away from Touche. The victim was sober, but the rest had been drinking.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Touche was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for August 26, 2013.
Former Tallahassee Resident Arrested for Tax FraudRead the Press Release
TALLAHASSEE, FLORIDA – Jerry Samuel Joseph, 33, who has also been known as “Gerry Jeudy,” “Jeremiah Pericles,” and “Jay,” was arrested this morning in Brooklyn, New York, on charges arising from a scheme to defraud the Internal Revenue Service. Joseph was a Tallahassee resident until approximately 2009.
According to an indictment returned by a federal grand jury in Tallahassee, Joseph and others filed fraudulent tax returns using stolen identities to claim approximately $350,000 in federal income tax refunds, with refund checks to be issued to an address in Tallahassee. Joseph is charged with conspiring to defraud the IRS, converting government property, mail fraud, and aggravated identity theft. Joseph has been ordered detained in New York, and will be removed to custody in Tallahassee in the near future.
If convicted, Joseph faces up to 10 years in prison for the conspiracy and conversion counts, up to 20 years for mail fraud, and a mandatory consecutive term of two years in prison for aggravated identity theft.
The case has been investigated by IRS Criminal Investigation, the United States Secret Service, and the United States Postal Service. The case is being prosecuted by Assistant United States Attorney Michael T. Simpson.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Reserve Deputy Constable Convicted for Aiding Cocaine LoadRead the Press Release
HOUSTON – Tomas Roque, a former reserve deputy constable with Harris County Precinct 6, has entered a plea of guilty to one violation of the Hobbs Act, or extortion under color of official right, United States Attorney Kenneth Magidson announced today.
Roque, of Houston, was arrested Jan. 16, 2013, following the return of an indictment Jan. 8, 2013. As part of his plea today, Roque admitted he obtained approximately $2000 in exchange for providing protection for a vehicle he believed was transporting seven kilograms of cocaine.
According to the plea agreement, a confidential source had asked Roque if he would provide protection for narcotics. On Dec. 6, 2012, Roque - then a Precinct 6 constable in Harris County – arrived in uniform to provide the escort in his official capacity as a law enforcement officer.
Seven kilograms of cocaine was located in the truck of the source which Roque had escorted to another location. Afterwards, the source paid Roque $2000 for his service.
U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, has set sentencing for Sept. 16, 2013, at which time Roque faces up to 20 years in prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The combined public corruption task force effort was conducted by the FBI, Texas Rangers and Houston Police Department. Homeland Security Investigations and the Harris County Precinct 6 Constable’s Office assisted the investigation. The case is being prosecuted by Assistant United States Attorney James McAlister.
Former North Carolina House of Representative Convicted for Theft from A Non-Profit and Money LaunderingRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced today that, STEPHEN A. LAROQUE, of Kinston, North Carolina, was convicted by a federal jury on all 12 counts involving theft from a Non-Profit receiving federal funds, money laundering, false statements to cover up a scheme, and filing false tax returns.
Walker stated, “We always thought that this case was about stealing, pure and simple. The jury has now agreed.”
Special Agent in Charge Jeannine A. Hammett, Internal Revenue Service Criminal Investigation stated, "Mr. Laroque improperly used money belonging to a non-profit organization and he illegally concealed his actions.”
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation, the United States Department of Agriculture, Office of Inspector General-Investigations, Raleigh Office, the Federal Bureau of Investigation and the North Carolina State Bureau of Investigation. Assistant United States Attorney, Dennis M. Duffy prosecuted the case.
Former Luzerne County Man Sentenced to Prison for Failing to Update Sex Offender RegistrationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 50-year-old former resident of Luzerne County was sentenced to 13 months in federal prison Thursday by Senior U.S. District Court Judge Richard P. Conaboy for failing to update his sex offender registration.
According to United States Attorney Peter J. Smith, Joseph Hannel previously pleaded guilty to moving from Luzerne County, Pennsylvania, where he was registered as a sex offender, to Virginia without notifying authorities in both states as required by law. Hannel was required to register as a sex offender and update that registration after serving a state prison sentence for involuntary deviate sexual intercourse and sexual abuse of children.
Hannel was indicted by a federal grand jury in October 2012, as a result of an investigation by the U.S. Marshal’s Service.
Judge Conaboy also ordered Hannel to be placed on supervised release for five years after serving his prison sentence. Hannel must also pay a $100 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Former Ladue Financial Advisor Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO - Greg J. Campbell pled guilty to diverting over $1.8 million from client retirement accounts to finance his luxury home, cars and lifestyle.
According to court documents, from June 2006 until October 2011, Campbell was employed as a financial advisor at Merrill Lynch. Campbell managed clients’ Loan Management Accounts (LMAs), which were lines of credit collateralized by securities. Beginning in September 2007 and continuing until the end of his employment in October 2011, Campbell fraudulently diverted more than $1.4 million from LMAs to his own personal accounts and the accounts of others and for his own personal use. He used the money for a down payment on a personal residence, mortgage payments, lease payments on luxury vehicles and living expenses.
In November 2011, Campbell began working as a Senior Wealth Manager for Four Seasons Wealth Management (Four Seasons) in Clayton. Four Seasons was a company that offered securities and advisory services to clients through LPL Financial, LLC, a securities broker-dealer (LPL). Campbell was employed at Four Seasons until October 2012 and managed clients' individual retirement accounts (IRAs). Between November 2011 and October 2012, Campbell diverted funds from his clients' IRAs to his own personal accounts. Campbell took various steps to conceal his fraud. He changed the mailing addresses on clients' accounts, without their knowledge, to an address to which he had access so that clients would not receive account statements. In at least one instance, Campbell falsely stated on distribution documents that he was the client's grandson, when he was not related to the client. During his tenure at Four Seasons, Campbell fraudulently diverted more than $360,000 from client accounts. Campbell used fraudulently diverted funds to pay for personal expenses, including renovations to his personal residence, mortgage payments, vehicle lease payments and living expenses.
GREG J. CAMPBELL, Ladue, MO, pled guilty to two felony counts of wire fraud before United States District Judge Audrey G. Fleissig. Sentencing has been set for September 10, 2013.
Each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.Former Belleville Man Pleads Guilty to Multiple Federal Offenses Charges Include Participating in A Multi-Million Dollar Tax Fraud Conspiracy, Aggravated Identity Theft and Attempting to Obstruct A Federal InvestigationRead the Press Release
Christopher Gilmer, 44, formerly living in Belleville, Illinois, pled guilty to an Information charging, in Count 1, Conspiracy to Defraud the Internal Revenue Service By Submitting False Federal Tax Returns To Make False Claims For Tax Refunds, in Count 2, Aggravated Identity Theft in Using a Social Security Number of Another during and in Relation to Conspiracy to Commit Mail Fraud and Wire Fraud In Submitting false Tax Returns, and in Count 3, attempted Obstruction of Grand Jury Investigation into The Conspiracy to Defraud the Internal Revenue Service By Submitting False Federal Tax Returns To Make False Claims For Tax Refunds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses carry a statutory maximum sentence of up to thirty-two years in prison, a fine of up to $750,000 and mandatory restitution. Sentencing is scheduled for September 19, 2013.
The prosecution is the result of information from an ongoing federal investigation of a conspiracy to obtain the payment of false and fraudulent federal income tax refunds utilizing stolen identities. The IRS utilizes databases to research possible tax refund fraud schemes. The IRS linked tax returns based on wage amounts, federal tax withholding amounts, bank accounts, employers, email addresses and other factors which revealed a tax refund scheme. The scheme involved the preparation of fraudulent federal 2010, 2011, and 2012 tax returns, which were filed during the 2011, 2012, and 2013 tax filing seasons. This nationwide tax refund fraud scheme consists of thousands of falsified tax returns, which claimed millions in fraudulent tax refunds. The total amount of the fraudulent federal tax refunds sought exceeds $150 million dollars. Some of the refunds were stopped by the I.R.S. All of the tax returns were electronically filed. The first tax return filed in this tax refund fraud scheme was filed on or about March 23, 2011 and the last tax return filed was on or about March 16, 2013. The fraudulent refunds were credited to prepaid debit cards created using stolen identities. People in the United States, including Christopher Gilmer, received the prepaid debit cards and withdrew a portion of the funds utilizing Western Union to electronically wire the funds to other coconspirators in Nigeria. Following the execution of a federal search warrant at a hotel room in Belleville, Illinois where Christopher Gilmer was staying, Christopher Gilmer notified a coconspirator in Nigeria and advised him of the federal investigation.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations and the U.S. Postal Inspection Service with the assistance of the Belleville Police Department. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud, call the I.R.S. Criminal Investigations at (618) 622-2160, or mail the information to the Internal Revenue Service, Fresno, CA 93888.
Former Army National Guard Soldier Sentenced to 57 Months in Prison for Lead Role in Fraudulent Military Recruiting Referral Bonus SchemeRead the Press Release
A former member of the U.S. Army National Guard was sentenced today to serve 57 months in prison for leading a conspiracy to obtain approximately $244,000 in fraudulent recruiting referral bonuses from various U.S. military components and their contractor, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Former U.S. Army National Guard Specialist Xavier Aves, 42, of San Antonio, was sentenced by Chief U.S. District Judge Fred Biery in the Western District of Texas. In addition to his prison term, Chief Judge Biery sentenced Aves to serve three years of supervised release and ordered Aves to pay $244,000 in restitution, jointly and severally with co-conspirators.
On Sept. 16, 2011, a grand jury in the Western District of Texas returned a 41-count indictment against Aves and five co-defendants, in which Aves was charged with one count of conspiracy to commit wire fraud, 30 counts of wire fraud and 10 counts of aggravated identity theft.
On Feb. 3, 2012, Aves pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
The case against Aves and his co-defendants arose from an investigation concerning allegations that former and current soldiers and military and civilian contract recruiters in the San Antonio area engaged in a wide-ranging scheme to obtain fraudulent recruiting referral bonuses. To date, 11 individuals have been charged, 10 of whom have pleaded guilty and been sentenced. The investigation is ongoing.
According to court documents, between 2005 and 2008, the U.S. Army, the U.S. Army Reserves and the National Guard Bureau entered into contracts with Document and Packaging Broker Inc. to administer recruiting bonus programs designed to offer monetary incentives to soldiers who referred others to serve in the U.S. military. In addition, the Army managed its own recruiting bonus programs, which offered referral bonuses to soldiers who referred other individuals to serve in the Army or Army Reserves after registering online as recruiting assistants (RA) or sponsors.
Through these recruiting programs, a participating soldier could receive up to $2,000 in bonus payments for every person he referred to join the U.S. military. Based on certain milestones achieved by the referred soldier, a participating soldier would receive the recruiting bonus payments in the form of direct deposits and pre-paid debit card payments.
According to court documents, between February 2006 and February 2011, Xavier Aves, Christopher Castro, Grant Bibb, Paul Escobar, Richard Garcia, Ernest Gonzales and others paid military recruiters, including Jesus Torres-Alvarez, for the names and social security numbers of potential soldiers. Aves, Castro, Bibb, Escobar, Garcia, Gonzales and others used the information they obtained from recruiters to claim credit in their online RA and sponsor accounts for referring certain new soldiers to join the military, when in fact they did not refer those individuals.
Aves orchestrated the scheme by serving as a key intermediary between the recruiters and the participating RAs. Aves arranged for the money to be split among his co-conspirators and directed a portion of the proceeds to be wired to his and his girlfriend’s personal bank accounts.
As a result of the fraudulent referrals, Aves and his co-conspirators received a total of approximately $244,000 in fraudulent recruiting bonuses.
The case is being prosecuted by Trial Attorneys Edward J. Loya Jr., Brian A. Lichter, Mark J. Cipolletti and Sean F. Mulryne of the Criminal Division’s Public Integrity Section. The case is being investigated by agents from the San Antonio Fraud Resident Agency of the Major Procurement Fraud Unit, U.S. Army Criminal Investigation Division.
Federal Officials Reach Out to Somali Community to Build Partnerships; Event Scheduled for Saturday, June 8, at Colina Del Sol Park and Recreation Center in City HeightsRead the Press Release
In December, 2010, U.S. Attorney Laura Duffy took the highly unusual step of appearing at a community meeting to field questions from Somali immigrants who were troubled by the arrests of four men suspected of sending money to the terrorist group al-Shabaab. One of the four was a popular leader of a local mosque.
While the meeting felt tense at times, that dialogue paved the way for Duffy and counterparts at the FBI to create a more formal partnership with community activists, social service providers and spiritual leaders to improve communication, break down misunderstandings and build trust between law enforcement and the San Diego Somali community.
The group of about 24 people calls itself the San Diego Somali Community-Law Enforcement Roundtable. And while community outreach is a cornerstone of President Obama’s counterterrorism strategy, the San Diego partnership has focused first and foremost on building relationships and creating good will.
Law enforcement officials are trying to show members of the community – who are typically leery of authorities in part because of traumatic experiences in their war-torn homeland – that they can be trusted to protect civil rights, vigorously respond to hate crimes and offer support should community members suffer backlash or threats in the wake of events like the Boston Marathon bombings.
“We are trying to create strong, positive relationships between the community and law enforcement so that victims are more likely to report crimes and community members are more likely to come forward when they observe signs of gang-involvement, radicalization or other behaviors that threaten the safety of the community,” Duffy said.
“We also hope this partnership will help us prevent vulnerable youth – many of whom are new residents that experience culture shock and language barriers and difficulty assimilating - from being bullied, recruited by gangs or even drafted into extremism,” Duffy said.
The group holds bi-monthly meetings to discuss issues facing the Somali community and to plan community engagement projects. The U.S. Attorney’s office is also working with local mosques to provide presentations about a variety of public safety topics, such as constitutional rights, what to expect when interacting with law enforcement, an overview of the criminal justice system, Transportation Security Administration screenings at airports, and resources for people reentering the community after incarceration.
The Roundtable has three standing subcommittees. The Law Enforcement Cultural Programs Subcommittee is developing training materials on Somali customs, practices and culture for members of law enforcement. The Youth Subcommittee focuses on health and safety issues for youth. The Young Adult/Re-entry Subcommittee is looking at eliminating some of the barriers impeding the successful transition of Somali youth and young adults who are returning to the community after incarceration.
“We want all sectors in our district to understand that while we are certainly concerned with investigating and prosecuting crimes, we are equally concerned with protecting constitutional rights,” Duffy said. “This is another example of how we are trying to expand the definition of traditional law enforcement by engaging in non-traditional activities such as outreach, which is linked to prevention.”
The partners will hold a Youth Athletic and Resource Fair on Saturday June 8, 2013, from 10 a.m. to 2 p.m. at Colina Del Sol Park and Recreation Center, 5319 Orange Avenue, in City Heights. The Youth Athletic Event will include a soccer clinic for girls and a basketball tournament for boys, and will also offer a variety of safety-themed resource booths and activities. The FBI and FBI Citizens Academy Alumni Association will host a booth to distribute Child ID Kits and online safety information for children.
“We are very excited to host an event which will bring families out to share in athletic competition, promote public safety education, and encourage the youth in our community to get involved in positive activities such as organized athletics,” Duffy said.
In recent years, Somali youth in the U.S. have been especially vulnerable to recruitment efforts by the Somalia-based terrorist group al-Shabab. The U.S. government has designated al-Shabaab a foreign terrorist organization for its links to al-Qaeda and its tactics that include suicide bombings, beheadings and assassinations.
More than 20 young men have left Minnesota – home to the nation’s largest concentration of Somali immigrants – for Somalia since 2007 in what has been described as one of the largest recruiting efforts of U.S. fighters by a foreign terrorist organization.
In San Diego, the four Somali immigrants whose arrests inspired the initial meeting between law enforcement and the community were convicted by a federal jury of conspiring to provide material support to al-Shabaab. They are scheduled to be sentenced June 27.
The Roundtable, meanwhile, continues to meet, expand, and pursue its mission.
For further information about the Roundtable, please contact the U.S. Attorney’s Office or Erin McKinnon at the FBI at (858) 499-7464.
Kelly Thornton
Public Affairs Coordinator
Office of the United States Attorney
Southern District of California
619.546.9726
[email protected]Federal Inmate and Girlfriend SentencedRead the Press Release
Inmate Larry Scott Intentionally Possessed Marijuana,
his girlfriend Peggy Evans provided contraband to a federal inmate at USP LeeUnited States Attorney Timothy J. Heaphy announced today that a federal inmate currently serving a prison sentence at United States Penitentiary Lee has been sentenced to serve additional federal time after he was involved in possession of contraband, marijuana. In addition, his girlfriend was also sentenced to serve federal time after she was involved in providing the marijuana to a federal inmate.
Larry Scott, 33, was sentenced in the United States District Court for the Western District of Virginia in Abingdon on June 6, 2013, for possession of contraband (marijuana).
Scott, who was sentenced on June 25, 2003 to 154 months of incarceration by the Northern District of Alabama for bank robbery and brandishing a firearm during and in relation to a crime of violence, was sentenced to serve an additional 60 months of federal incarceration following his most recent conviction.
Peggy Evans was sentenced to time served and four months of home confinement following her guilty plea for providing a federal inmate with contraband, specifically marijuana.
According to evidence provided by Special United States Attorney Debbie Stevens, on July 30, 2011, Scott was found to be in possession of marijuana after a visit with his girlfriend, Peggy Evans.
The investigation was handled by the Federal Bureau of Investigation and Special Investigative Unit of the Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the cases for the United States.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the June 2013 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.
Lethan Craig Bias. Felon in Possession of Firearms. Bias, 41, of Tulsa, is charged with possessing .32 caliber and 9mm caliber pistols after having been convicted of felonies, including burglary of a habitation, residential burglary, counterfeiting obligations or securities of the United States, and kidnapping. Upon conviction, Bias would face a maximum of ten years imprisonment and would forfeit the pistols.
Jacquelyn Nelson. Embezzlement and Theft in Excess of $1000 from an Indian Tribal Organization. Nelson, 69, of Seneca, Missouri, is accused of embezzling and stealing over $1,000 from the Eastern Shawnee Tribe, an Indian tribal organization, between February 2008 and November 2009. Nelson allegedly paid herself every week instead of every other week from the tribe, and altered her W-2 form to show she made less than her regular salary.
Sherman Mark Quillman and Misty Dawn Laurecella.Conspiracy, Possession of Methamphetamine With Intent to Distribute, and Firearm Possession. Quillman, 35, and Laurecella, 28, both of Tulsa and commonly known as “M&M,” are accused of conspiring to possess at least 500 grams of methamphetamine with intent to distribute it. Quillman is also accused of possessing a firearm in furtherance of a drug trafficking crime and as a convicted felon. Quillman’s previous felony conviction was for possessing a firearm in furtherance of a drug trafficking crime. Upon conviction, Quillman and Laurecella would face a mandatory ten years imprisonment and a maximum of life imprisonment for the drug charges, while Quillman would face an additional mandatory minimum five years imprisonment and a maximum of life imprisonment for possessing a firearm in furtherance of the drug trafficking crime. Upon conviction, Quillman and Laurecella would also forfeit over $50,000 and the firearm.
Jesus Gomez Maximo.Conspiracy, Possession of Cocaine With Intent to Distribute, and Firearms Possession. Maximo, 26, of Tulsa, is charged with conspiracy and possession of at least 500 grams of cocaine with intent to distribute it. He is also charged with possessing .380 caliber and .32 caliber pistols in furtherance of a drug trafficking crime and as an alien illegally in the United States. Upon conviction, Maximo would face a minimum five years imprisonment up to a maximum of forty years imprisonment for the drug charges, and a mandatory minimum 5 years imprisonment up to a maximum of life imprisonment for possessing firearms in furtherance of a drug trafficking crime. Upon conviction, Maximo would also forfeit three vehicles and the firearms.
Victor Ross Chappell.Felon in Possession of a Firearm and Ammunition. Chappell, 50, of Tulsa, is charged with possessing a .380 caliber pistol and six rounds of .380 caliber ammunition after having been convicted of nine felonies. Chappell’s nine felony convictions include burglary, grand larceny, unauthorized use of a motor vehicle, false impersonation, eluding, and possession of a firearm after former conviction of a felony. Upon conviction, Chappell would face a maximum of ten years imprisonment.
Shaun Michael Jameson. Wire Fraud Scheme. Jameson is accused of devising a clothing business scheme causing friends and relatives to invest and transfer a total of approximately $1,000,000 in fraudulent clothing transactions. From May 2009 to November 2011, friends and relatives, with the intention of investing in the clothing business, would transfer funds to Jameson’s bank accounts with RCB Bank. Jameson allegedly used the investor moneys to pay personal and business expenses unrelated to clothing transactions. Jameson is charged with nine counts of wire fraud and six counts of unlawful monetary transactions. Upon conviction, Jameson would face a maximum of twenty years imprisonment for wire fraud and a maximum ten years imprisonment for unlawful monetary transactions. Upon conviction of all counts, Jameson could also forfeit more than $600,000.
Fernando Palacios.Conspiracy to Possess Cocaine and Methamphetamine With Intent to Distribute and Maintaining Drug Involved Premises. Palacios, age unknown, of Tulsa, is charged with conspiracy to possess 500 grams or more of both cocaine and methamphetamine with intent to distribute it. Palacios is also charged with using premises in Tulsa for the purpose of manufacturing and distributing both cocaine and methamphetamine. Upon conviction, Palacios would face a mandatory minimum of ten years imprisonment up to a maximum of life imprisonment for the methamphetamine charge, a mandatory minimum of five years imprisonment up to a maximum of forty years imprisonment on the cocaine charge, and a maximum of twenty years imprisonment for maintaining a drug involved premises. Upon conviction, Palacios could forfeit as much as $250,000.
Quinn Anthony Kelley, Jr.Possession of Crack Cocaine With Intent to Distribute and Firearm Possession. Quinn, 27, of Tulsa, is charged with possessing crack cocaine with intent to distribute it. Quinn is also charged with possessing a 9mm pistol in furtherance of a drug trafficking crime and as a felon. Quinn’s felony convictions include possession of a controlled drug and unauthorized use of a vehicle. Upon conviction, Quinn would face a maximum of twenty years imprisonment for the crack cocaine charge, a maximum of ten years imprisonment for possessing a firearm as a felon, and a mandatory minimum five years imprisonment up to a maximum of life imprisonment for possessing a firearm in furtherance of a drug trafficking crime. Upon conviction, Quinn could also forfeit over $450 in cash and the pistol.
Rashida Tanzania Mack.Possession of PCP With Intent to Distribute and Firearms Possession. Mack, 35, of Tulsa, is charged with possession of phencyclide, commonly known as “PCP,” with intent to distribute it. Mack is also charged with possessing a 9mm caliber pistol and a .38 special caliber revolver in furtherance of a drug trafficking crime. Upon conviction, Mack would face a mandatory minimum five years imprisonment up to a maximum of forty years imprisonment on the PCP charge and a mandatory minimum five years imprisonment up to a maximum of life imprisonment on the firearms charge. Upon conviction, Mack could also forfeit over $14,000 and the firearms.
Guadalupe Arellano-Montoya.Alien in the United States After Deportation. Arellano-Montoya, 33, was arrested in Tulsa and charged with having returned to the United States unlawfully after being deported on June 2, 2010 from Del Rio, Texas. Upon conviction, Arellano-Montoya would face a maximum of two years imprisonment.
Gene Edward Fouse.Possession of Cocaine With Intent to Distribute. Fouse, 50, of Altedena, California, is charged with possession of more than five kilograms of cocaine with intent to distribute it. Upon conviction, Fouse would face a mandatory minimum ten years imprisonment up to a maximum of life imprisonment. Upon conviction, Fouse could also forfeit two vehicles.
Omar Cardenas-Rodriguez.Possession of Marijuana With Intent to Distribute. Cardenas-Rodriguez, 35, of Tulsa, is charged with possession of marijuana with intent to distribute it. Upon conviction, Cardenas-Rodriguez would face a maximum of twenty years imprisonment and the possible forfeiture of a vehicle.
Bernabe Gonzalez-Vicente.Alien in the United States After Deportation. Gonzalez-Vicente, 40, was arrested in Tulsa and charged with having returned to the United States unlawfully after being deported in December 2012 from Houston, Texas. Upon conviction, Gonzalez-Vicente would face a maximum of two years imprisonment.
Federal Court Permanently Bars Prince George’s County, Maryland, Tax Preparers from Preparing Tax Returns for OthersRead the Press Release
Two federal judges in separate cases entered orders permanently barring Marvin Binion Sr., his son Marvin Binion II, Binion Sr.’s ex-wife Tonya Hubbard and her firm Universal Tax Service LLC from preparing tax returns for others, the Justice Department announced today. The civil injunction orders, to which all defendants consented, were signed by Judge Roger W. Titus and Judge Alexander Williams Jr., of the U.S. District Court for the District of Maryland.
The two government complaints, one against the Binions and one against Hubbard and her firm, alleged that the defendants prepared fraudulent tax returns for customers containing bogus deductions for items like charitable contributions, unreimbursed employee business expenses and other miscellaneous expenses. The lawsuits also alleged that Hubbard, Universal Tax Service LLC and the Binions violated federal law by not signing the returns they prepared for customers and by not placing IRS preparer identification numbers on the returns. All tax preparers are required to place an IRS-issued tax preparer identification number on every federal income tax return they prepare for a customer.According to the complaints the defendants prepared customer returns using commercial tax software, placed the returns in postage-paid pre-addressed envelopes and instructed customers to sign and mail the returns to the IRS on their own. The suits alleged that defendants did this to hide from the IRS their role in preparing the returns.
The government alleged that Hubbard and the Binions charged customers a return-preparation fee of $300 and that the Binions may have earned as much as $30,000 per day preparing fraudulent returns.
The Internal Revenue Service has listed tax-preparer fraud as one of the “Dirty Dozen” tax scams. The Justice Department has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters in the past 10 years. Information about these cases is available on the Justice Department’s website www.justice.gov/tax.
Related Materials:
United States v. Marvin L. Binion, Sr., et al.
Final Stipulated Permanent Injunction Order (PDF)United States v. Tonya L. Hubbard, et al.
Final Stipulated Permanent Injunction Order (PDF)Eagle Butte Man Pleads Guilty to Stolen Firearm Violation and Witness TamperingRead the Press Release
United States Attorney Brendan V. Johnson announced that Jody Albert Hunt, age 35, of Eagle Butte, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 4, 2013 and pled guilty to Possession and Sale of a Stolen Firearm and Tampering with a Witness.
The maximum penalty upon conviction for Possession and Sale of a Stolen Firearm is 10 years of custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment. The maximum penalty upon conviction for Tampering with a Witness is 20 years of custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment. The Court could also order restitution to the victim.
The convictions arose from an incident that occurred on March 25, 2013 when Hunt stole firearms and other property from a ranch near Eagle Butte. Hunt then attempted to have a witness submit false information to federal authorities about the stolen property.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered and a sentencing date was set for August 26, 2013. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Dr. Robert B. Sperrazza Convicted of Tax Evasion and Currency StructuringRead the Press Release
Today, June 7, 2013, Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the conviction after a jury trial of Dr. Robert B. Sperrazza, age 60, formerly a resident of Lee County, Georgia. Dr. Sperrazza was convicted in United States District Court after a four day trial before the Honorable W. Louis Sands, United States District Judge for the Middle District of Georgia.
Dr. Sperrazza was convicted of all five counts in the indictment against him. Counts 1-3 of the indictment charged Dr. Sperrazza with felony tax evasion. Counts 4 and 5 charged him with currency structuring. The government’s evidence at trial proved that Dr. Sperrazza personally cashed over one million dollars in patient checks at the counter of a local bank, in Albany, Georgia. Dr. Sperrazza structured the cash transactions always in amounts under $10,000 for the purpose of evading the bank reporting requirements of federal law and for the purpose of furthering his tax avoidance scheme.
Dr. Sperrazza was formerly an anesthesiologist in Albany, Georgia, for many years. He later moved to Panama City Beach, Florida where he briefly operated a pain clinic. Dr. Sperrazza is not currently involved in the practice of medicine.
Dr. Sperrazza remains out on bond after the verdict. He will be sentenced in about three months. He faces a maximum possible sentence of five years for each count of tax evasion and a maximum sentence for ten years for each count of currency structuring, together with a fine of up to $250,000 for each of the five separate counts of conviction. The government will seek restitution and forfeiture at the sentencing hearing, as well.
“In these difficult economic times, the evasion of taxes is especially damaging to the United States and this office will pursue vigorously those who seek to enrich themselves by evading their lawful obligation to the Government,” said U.S. Attorney Michael Moore.
“Financial crimes, especially structuring, are oftentimes a method used to evade payment
of taxes lawfully owed to the United States,” stated Veronica Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “The guilty verdict returned today clearly reaffirms that knowingly defying the tax laws will not be tolerated by the American people.”
The case was jointly investigated by the Criminal Investigation Division and the Special Enforcement Program of the Internal Revenue Service and by the United States Secret Service. The case was prosecuted by Assistant United States Attorney James N. Crane for the Middle District of Georgia.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
District Man Pleads Guilty to Murder in Shooting of 18-Year-Old Girl in Northwest WashingtonDefendant and Victim Met Through A Social Media Website; Victim Killed for IPhone and IPodRead the Press Release
WASHINGTON – Alexander Buckley, 22, of Washington, D.C., pled guilty to second-degree murder while armed for the January 25, 2013 slaying of a Maryland girl, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendant entered his plea in the Superior Court of the District of Columbia. The Honorable Russell Canan scheduled sentencing for August 22, 2013.
According to the government’s evidence, in January 2013, the defendant met the victim, 18-year-old Siohban Lee, through a social media website known as “Tagged,” which allows users to view profiles and photographs posted by other users. Tagged is available as an application to iPhone and Android phone subscribers and allows users to text one another via the Internet. Initially, the defendant and the victim communicated only through Tagged. Eventually, however, they exchanged phone numbers and began to communicate by phone.
Leading up to the early morning hours of January 25, 2013, the defendant and victim exchanged several text messages and phone calls, during which the victim agreed to meet the defendant for the very first time. The defendant provided the victim with instructions to take the bus into D.C. towards Georgia Avenue, N.W., where he would meet her. Sometime after 2:16 a.m., on January 25, 2013, the defendant met the victim in the area of 5th Street and Nicholson Street, N.W. The victim was carrying a purse, and was in possession of both her iPhone and iPod Touch.
At approximately 2:30 a.m., the defendant shot the victim one time in the left side of the head, just behind her left ear, killing her. The defendant took the victim’s iPhone and iPod Touch, and, leaving her purse behind, fled the scene. Law enforcement quickly located the defendant, who still had the phone in his possession. As a result, the defendant was arrested just hours after the murder.
In announcing the plea, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Ethel Gregory and Marian Russell; Lead Paralegal Sharon Newman; and Victim/Witness Advocate Marcia Rinker. Finally, U.S. Attorney Machen recognized Assistant U.S. Attorney Kimberley Nielsen, who investigated and prosecuted the case.
13-196Denver Man Sentenced for Role in Murder-for-Hire and Drug ConspiracyRead the Press Release
LAREDO, Texas – Shavar Davis, 30, of Denver, Colo., has been sentenced to 10 years in federal prison for his involvement in a murder-for-hire and drug conspiracy, United States Attorney Kenneth Magidson announced today. Davis pleaded guilty in August 2012 to a superseding indictment which charged him with conspiracy to possess with intent to distribute cocaine and marijuana and conspiracy to commit murder-for-hire.
Today, Senior U.S. District Judge George P. Kazen handed Davis two concurrent 120-month terms of imprisonment.
According to the factual basis of his plea agreement, the investigation began in January 2011, when co-defendant Marcus Mickle began negotiations with persons whom he thought were members of the Los Zetas Cartel, actually undercover Drug Enforcement Administration (DEA) agents, to purchase marijuana in return for stolen weapons. The discussions concerned the distribution of marijuana in the Columbia, S.C., area and how Mickle and another co-defendant Calvin Epps allegedly told undercover agents about a friend in the military who could provide military weapons to them. The agents were later introduced to co-defendant Kevin Corley who identified himself as an active duty officer in the Army responsible for training soldiers. According to the factual basis, Corley offered to provide tactical training for cartel members and to purchase weapons for the cartel.
The factual basis reads that over the next several months, Corley continued to communicate with undercover agents regarding the services he could provide the cartel as a result of the training, experience and access to information/equipment afforded him as an active duty soldier.
On Jan. 7, 2012, Corley traveled to Laredo and met with undercover agents. During this meeting, Corley stated he could raid a ranch located at or near Laredo containing 20 kilograms of cocaine and conduct a contract killing there. Corley proposed a $50,000 fee for this work but stated he would need to bring his own team. After further negotiation, Corley stated he would accept a $50,000 fee and five kilograms of cocaine.During March 2012, Corley allegedly arranged for 300 pounds of marijuana to be delivered to Mario Corley in Charleston, S.C. He assisted in brokering 500 pounds of marijuana and five kilograms of cocaine for Mickle and Epps and discussed the distribution of these narcotics in South Carolina, Texas and Colorado.
On March 5, 2012, Kevin Corley delivered two AR-15 assault rifles with scopes, an airsoft assault rifle, five allegedly stolen ballistic vests and other miscellaneous equipment to an undercover agent in Colorado Springs, Colo., in exchange for $10,000. At the meeting, Kevin Corley and the undercover agent allegedly again discussed the contract killing and the retrieval of the cocaine which was to occur on March 24, 2012. Kevin Corley stated he had purchased a new Ka-Bar knife to carve a “Z” into the victim’s chest and was planning on buying a hatchet to dismember the body.
On March 24, 2012, Kevin Corley, Samuel Walker and Shavar Davis traveled to Laredo and met with undercover agents, at which time they discussed the location of the intended victim, the logistics of performing the contract kill and their respective roles. The three were arrested, during which time a fourth suspect was shot and killed. A subsequent search of the vehicle in which Corley and the other co-conspirators arrived revealed two semi-automatic rifles with scopes, one bolt-action rifle with a scope and bipod, one hatchet, one Ka-Bar knife, one bag of .223 caliber ammunition and one box of .300 caliber ammunition.
Mickle is scheduled to be sentenced on June 14, 2013. Robert Corley, who pleaded guilty to the marijuana conspiracy, was previously sentenced to 30 months in prison. The remaining co-defendants are still pending sentencing to be set a later date.
The investigation leading to the charges was conducted by the DEA and the FBI with the assistance of U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Roberto Ramirez and Jody Young.Defendants Sentenced Today in Major Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Four additional defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that they operated in Wichita Falls, were sentenced today by U.S. District Judge Reed C. O’Connor. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The following defendants were sentenced today:
- Brittany Brown, 23, sentenced to 46 months
- Melanie Brown, 40, sentenced to 24 months
- Michael Eugene Peters, 35, sentenced to 84 months
- Travis Ritchie, 63, sentenced to 72 months
Melanie Brown pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and to manufacture methamphetamine. She admitted that she and others agreed to and engaged in the distribution of methamphetamine. She further admitted that on numerous occasions, she distributed quantities of methamphetamine to, and received payments for methamphetamine from customers in the Wichita Falls area. Co-conspirator Steve Ysasaga supplied the methamphetamine that she distributed.
Ritchie pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine. He admitted that on multiple occasions he distributed methamphetamine, supplied by Ysasaga, and facilitated its distribution in Wichita Falls. He also admitted that he allowed Ysasaga to distribute methamphetamine to other co-conspirators, including Franklin Dewayne Hubbard and David Calandreli, from his residence on 7th Street in Wichita Falls.
Brittany Brown pleaded guilty to one count of possession with intent to distribute and distribution of methamphetamine. In March 2012, Brittany Brown sold approximately 20 grams of methamphetamine to an undercover officer.
Peters, who was previously convicted of felony offenses, pleaded guilty to one count of being a felon in possession of a firearm. He admitted that on March 7, 2011, he possessed a loaded .380 caliber pistol that was discovered by law enforcement during a search of his vehicle subsequent to a traffic stop.
To date, 29 of the 30 defendants charged in this conspiracy have entered guilty pleas; a total of 19 defendants have been sentenced. The case against one defendant has not been resolved.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Defendant Sentenced to 36 Months in Federal Prison in Tax Refund Conspiracy CaseRead the Press Release
DALLAS — Tommy Dean Turner was sentenced yesterday to 36 months in federal prison and ordered to pay $365,626 in restitution following his guilty plea in February 2013 to one count of conspiracy to file false claims. His co-conspirator, Shaunthina Daniel Rushing, who pleaded guilty to the same offense, is scheduled to be sentenced on June 19, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to factual resumes filed in the cases, Turner conspired with Rushing, and others, to file approximately 50 fraudulent tax returns that resulted in more than $400,000 in false claims. The returns included Forms 5405, representing that the taxpayers were entitled to claim a First-Time Homebuyer Tax Credit (FTHTC) under the provisions of the Housing and Economic Recovery Act of 2008.
That refundable tax credit could be claimed if a person purchased a main home in the U.S. after April 8, 2008, and before December 1, 2009, and the person (and spouse, if married) did not own any other main home during the previous three years of the date of purchase. Qualifying taxpayers who purchased a home between January 1, 2009, and December 1, 2009, could claim up to $8,000 as the FTHBC.
Turner admitted that the co-conspirators caused bank accounts to be opened to receive the fraudulent tax refund checks, obtained and disbursed the proceeds among themselves and others and maintained detailed records and logs that identified the fraudulent tax returns the money received and the disbursement of proceeds.
Internal Revenue Service Criminal Investigation investigated. Assistant U.S. Attorney J. Nicholas Bunch and DOJ Tax Division Trial Attorney Robert A. Kemins prosecuted.
Daviess County, Kentucky Man Guilty of Embezzling from His Former EmployerRead the Press Release
OWENSBORO, Ky. – A Daviess County, Kentucky man pleaded guilty today, in United States District Court, before Chief Judge Joseph H. McKinley, Jr. to charges of accessing a protected computer to obtain something of value with the intent to defraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jason Duke, age 35, from Owensboro, Kentucky, was charged in a ten count federal grand jury indictment on February 20, 2013. According to the plea agreement, between December 11, 2007, and July 11, 2010, defendant Duke, accessed a protected computer, exceeding his authorized access, and obtained a total of approximately $101,000 in checks drawn on the account of his employer, Riverside Transport Incorporated, formerly known as BFL Trucking Inc. For the purpose of executing the fraudulent scheme, Duke accessed his employer’s computer, and obtained checks, which he cashed using an alias at a food mart in Indiana. The checks ranged in value from $146.18 to $405.92.
At sentencing, Duke faces no more than five years in prison for each of the ten counts, a $250,000 fine, an order of restitution, and a three year period of supervised release.
Sentencing is scheduled in Owensboro on September 6, 2013, at 11:00 a.m. CST before Chief Judge McKinley.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and was investigated by the Owensboro Police Department and the United States Secret Service.
Court Issues Order Barring Michigan Tax Preparer from Preparing Federal Tax Returns for OthersRead the Press Release
The U.S. District Court for the Eastern District of Michigan has issued an order permanently barring Nataki Davis, (formerly known as Nataki Barnes), a Southfield, Mich., tax preparer, from preparing federal tax returns for others for a period of five years, the Justice Department announced today. The court also ordered Davis to mail copies of the court order to all persons or entities for whom she has prepared federal tax returns, amended returns or other federal tax documents or forms since Jan. 1, 2011. Davis consented to the civil injunction order.
Davis operated a business that provided tax return preparation services under the names NKB Tax Services, NKB Tax Services, Etc. and Ready Trans. The complaint states that Davis prepared approximately 1,597 tax returns for tax processing years 2010 through 2012. The Internal Revenue Service (IRS) closed examinations on 52 of those 1,597 tax returns prepared by Davis and 48, or 92%, of those examined returns resulted in additional tax assessments. Many of the returns that Davis prepared for customers contained false deductions and credits, including inflation of deductions for charitable contributions, mortgage interest, real estate and personal property taxes paid and false education credits. Returns also included manipulation of taxpayer data for the purposes of claiming the Earned Income Tax Credit for which the taxpayers would otherwise be ineligible.
The court also issued an order permanently barring Davis’s brother Clarence Barnes Jr. from applying for an electronic filing identification number (EFIN) or assisting any other individual or entity in the application for or procurement or use of an EFIN to file a federal income tax return. Barnes consented to this civil injunction order.
The IRS lists return-preparer fraud as one of the Dirty Dozen Tax Scams for 2013. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website www.justice.gov/tax.
Related Materials:
United States v. Nataki Davis, et al.
Complaint for Permanent Injunction (PDF)
Order of Injunction with Respect to Defendant Clarence Barnes, Jr. (PDF)
Order of Injunction with Respect to Defendants Nataki Davis and NKB Tax Services, Inc. (PDF)Courier in Baltimore Heroin Distribution Ring Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Jasmine Veras-Rosario, age 35, of Bronx, New York, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to testimony at Veras-Rosario’s 14 day jury trial, she was part of a heroin trafficking organization led by Danilo Garcia and Walter Powell, that supplied heroin to distributors in Maryland and elsewhere. The evidence showed that Jasmine Veras-Rosario was a courier who worked with her husband, Jan Carlos Veras-Rosario, to deliver heroin on behalf of Garcia in New York to Powell and another conspirator, Roy Lee Clay, in Baltimore. Evidence at trial showed that Jasmine Veras-Rosario traveled from New York to Baltimore by bus, transporting heroin to Baltimore and money representing heroin proceeds from Baltimore back to New York.
At trial, the jury saw video tapes of Jasmine Veras-Rosario going to a residence in West Baltimore where the heroin was delivered. In addition, the jury heard intercepted conversations between Veras-Rosario and Powell in Baltimore in which she discussed, in coded language, both the delivery of heroin and the money owed by Powell.
The jury found that Veras-Rosario was responsible for the distribution of at least one kilogram of heroin.
Roy Lee Clay, age 47, of Baltimore, was also convicted at trial and is scheduled to be sentenced on June 14, 2013 at 9:15 a.m. Jan Carlos Veras-Roasario, age 26, of Bronx, New York, pleaded guilty to his role in the conspiracy and is scheduled to be sentence on August 2, 2013, at 12:00 p.m.
Walter Powell, age 61, of Baltimore, Maryland,was previously sentenced to 121 months in prison for the heroin conspiracy. Co-conspirator Danilo Garcia, age 43, of Bronx, New York was sentenced to 188 months in prison for the heroin conspiracy, and for distribution of heroin.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Collinsville Man Sentenced to 6.5 Years in Prison for Viewing Child PornographyRead the Press Release
Jonathan S. Mills, 36, of Collinsville, Illinois, was sentenced today in federal court to 6 ½ years in prison for Accessing with Intent to View Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Following his prison sentence, Mills will be on federal supervised release for 10 years and will also be required to register as a sex offender for the remainder of his life.
“This was a very just sentence for a very disturbing person.” said United States Attorney Wigginton. “Making such filth available to others assures that the very real children victimized in these images will continue to be victimized time and time again. I hope that this sentence will tell others to stop this abhorrent criminal behavior.”
Court documents establish that in March 2012, during an undercover investigation, agents from the United States Secret Service Southern Illinois Cyber-Crime Unit identified child pornography offered for download from Mills’ computer through the use of a peer-to-peer networking site. Based on the information gathered in the investigation, agents obtained a search warrant for Mills’ residence from which numerous items of computer media were seized. The forensic examination of Mills’ computers revealed that over 69,000 image and video files containing child pornography had been viewed by Mills. During an interview with law enforcement, Mills admitted to viewing images and video files containing child pornography on his computer.
This case is 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 investigation was conducted by the United States Secret Service Southern Illinois Cyber-Crime Unit and the Illinois State Police. The case was prosecuted by Assistant United States Attorney Ali Summers.
Cannonball Man Pleads Guilty to ArsonRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on June 7, 2013, Phoenix Martinez, 19, Cannonball, N.D., pleaded guilty in U.S. District Court to a charge of arson.
On July 25, 2012, Martinez set fire to the St. James Episcopal Church in Cannonball. The church building was a total loss.
The charge of arson carries a statutory maximum penalty of 25 years in federal prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Standing Rock Agency and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Sentencing for Martinez has been scheduled for Sept. 30, 2013, in U.S. District Court in Bismarck, N.D., at 9:00 a.m.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Californian Sentenced to 10 Years in Prison for Large-Scale Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH, Pa. - On June 5, 2013, a California man was sentenced in federal court to 10 years incarceration on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Tywan Staples, 43, of Oakland, Calif.
According to information presented to the court, the Staples was part of a conspiracy that brought over 2000 kilograms of cocaine to Pittsburgh and other cities between 2000 and 2010.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration and the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Staples.