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17 July 2013
Hazleton Man Sentenced for $150,000 FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joseph M. Yesvetz, age 57, of Hazleton, Pennsylvania was sentenced today by U.S. District Court Judge Robert D. Mariani to 18 months’ imprisonment, two years of supervised release, and $150,000 restitution in connection with making a false claim for benefits under the Department of Labor’s Energy Employees Occupational Illness Compensation Program (EEOICP).
According to United States Attorney Peter J. Smith, EEOICP is meant to compensate individuals who suffer work-related health conditions due to exposure to toxic substances in the work place. Yesvetz filed a claim on behalf of his father who died in 2001 after working at a beryllium plant and who allegedly suffered from chronic beryllium disease. Yesvetz was charged with lying on the claim form by failing to report his prior conviction in 2008 for mail fraud in connection with his receipt of over $88,000 in Pennsylvania state workers’ compensation benefits meant for his deceased father. Yesvetz received $150,000 in April 2012 as a result of his false claim under the EEOICP.
The case was investigated by the Department of Labor Inspector General’s Office and was prosecuted by Senior Litigation Counsel Bruce Brandler.
Former Vice President of Wells Fargo Advisors and Morgan Stanley & Co. Charged in $1.8 Million Fraud SchemeRead the Press Release
SAN FRANCISCO - A federal indictment charging Adorean Boleancu with twenty-seven counts of bank fraud, wire fraud, money laundering, and aggravated identity theft was unsealed this morning in federal court, announced United States Attorney Melinda Haag. The indictment alleges that Boleancu executed a fraud scheme by forging more than $1.8 million in checks written on accounts of an elderly, widowed client for his personal benefit.
According to the Indictment, Boleancu, 47, of Napa, Calif., was a Vice President, Senior Financial Consultant in the Wealth Management Group of Wells Fargo Advisors, LLC and, before that, a Vice President, Financial Advisor with Morgan Stanley & Co., Inc. The Indictment alleges that Boleancu wrote checks drawn on the client's Morgan Stanley brokerage account and home equity lines of credit Boleancu had established for the victim. These checks were made payable to Boleancu's family members, his girlfriend, another female acquaintance, cash, and financial companies where Boleancu had credit card accounts. The Indictment also alleges that Boleancu presented or caused to be presented forged checks in the amount of $750,000 and $600,000 payable to Boleancu's girlfriend, who deposited the checks and transferred much of the proceeds to Boleancu.
Boleancu made his initial appearance in federal court in San Francisco this morning. Boleancu was released on an $800,000 bond. His next scheduled appearance is at 2:30 p.m. on July 23, 2013, before the Honorable Richard Seeborg, U.S. District Court Judge.
The maximum statutory penalty for each count of bank fraud, in violation of 18 U.S.C. § 1344, and wire fraud, in violation of 18 U.S.C. § 1343, is 30 years in prison and a $1 million fine, plus restitution if appropriate. The maximum statutory penalty for each count of money laundering, in violation of 18 U.S.C. § 1957, is 10 years in prison and a fine of $250,000. The maximum statutory penalty for each count of aggravated identity theft, in violation of 18 U.S.C. § 1028A, is 2 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Robert S. Leach is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth and Mary Mallory. The prosecution is the result of an 18-month investigation by the Federal Bureau of Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Boleancu must be presumed innocent unless and until proven guilty.
(Boleancu Indictment )
Former Teacher Pleads Guilty to Receipt of Child Pornography-Exchanged Sexually Explicit Images with Student-Read the Press Release
WASHINGTON – John Solano, 30, a former teacher from Washington, D.C., pled guilty today to receiving child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Solano entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer is to sentence him on Oct. 2, 2013. Solano faces a sentence of not less than five years and no more than 20 years of imprisonment and a $250,000 fine. Solano has been incarcerated since his arrest on March 8, 2013.
According to the government's evidence, Solano, who was then a teacher at McKinley Tech High School in Northeast Washington, engaged in inappropriate sexual communications with several current and former students. Specifically, in December 2012, Solano engaged in inappropriate and sexually explicit text message communications with a 16-year-old student. During the course of that correspondence, at Solano’s request, the student sent and Solano received images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-247Former Supervisor Pleads Guilty to Stealing Confidential Computer Files from the Federal Reserve Bank of ChicagoRead the Press Release
CHICAGO — A former supervisor at the Federal Reserve Bank of Chicago pleaded guilty today to a federal misdemeanor for stealing computer files containing confidential information relating to the bank’s responsibility to assess and monitor its credit risk exposure. The defendant, BRIAN MCCARTHY, admitted attempting to download on to his personal thumb drive approximately 300 computer files, and actually downloading 71 computer files, belong to the Chicago Federal Reserve Bank.
McCarthy, 31, of Elmhurst, was a senior credit analyst in the bank’s Statistical and Financial Reporting Department from 2009 to 2010, and in 2011 was a supervisor in the Statistical Support Group where he supervised approximately seven bank employees. He pleaded guilty to theft of property from the Federal Reserve Bank of Chicago at his arraignment after being charged in a criminal information filed last week in U.S. District Court.
Under the terms of his plea agreement, McCarthy is barred from participating directly or indirectly in the affairs of any financial institution insured by the National Credit Union Share Insurance Fund or the Federal Deposit Insurance Corp. without prior written consent. McCarthy faces a maximum sentence of a year in prison and a $100,000 fine, and his plea agreement anticipates a federal sentencing guideline range of 10 to 12 months in prison. U.S. Magistrate Judge Susan Cox set sentencing for Oct. 10.
According to his guilty plea, McCarthy had access to, and was entrusted with, sensitive information, and had signed a Code of Conduct agreement requiring him to leave behind all bank computer files when his employment ended. The theft occurred on Oct. 5, 2011, which was McCarthy’s last day of employment. He admitted taking steps to avoid detection and circumvent the bank’s information security systems, which nonetheless determined that information had been accessed and the Federal Reserve Bank contacted the FBI.
The plea agreement calls for McCarthy to pay $26,400 in restitution to the bank to reimburse it for employee time expended to determine how much information, and the nature of the material, that he downloaded.
The guilty plea was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Sunil Harjani.
Plea Agreement
Former Charleston-based Chase Bank Executive Sentenced to 3 Years in Prison for Embezzlement SchemeRead the Press Release
McCoy stole more than $500,000 from Chase; created unauthorized cashier’s checks to purchase a Cadillac SUV and a ’68 Chevy Camaro
CHARLESTON, W.Va. –A former Charleston-based J.P. Morgan Chase Bank (“Chase Bank”) executive was sentenced today to three years in federal prison for embezzlement, announced United States Attorney Booth Goodwin. Mark Alan McCoy, 46, of Charleston, previously pleaded guilty in March to embezzlement by a bank officer. McCoy, who was employed as the Charleston branch vice president of private client banking services from September 2008 until June 2012, embezzled more than $500,000 from the bank.
“Bankers are given a special position of trust,” said U.S. Attorney Booth Goodwin. “To abuse that trust is unconscionable.”
Goodwin continued, “It’s a crime not only against the bank, but against the customers who counted on this defendant to keep their money safe and sound. The sentencing of Mr. McCoy shows that bank embezzlement has real consequences.”
From November 30, 2009, and continuing until April 19, 2012, McCoy stole monies belonging to Chase Bank from approximately nine separate personal and corporate bank clients’ accounts. During the scheme, McCoy created cashier’s checks for himself or would use the proceeds from the original cashier’s checks to create additional unauthorized checks. On January 19, 2011, McCoy created an unauthorized cashier’s check from a client’s corporate bank account for $59,000, and made the check payable to Moses automotive dealership. McCoy used the fraudulent cashier’s check to purchase a Cadillac Escalade. Similarly, on October 19, 2011, McCoy created an unauthorized cashier’s check from a client account for $22,000. McCoy caused that check to be deposited into another client’s account, using the funds for the purchase of a 1968 Chevrolet Camaro.
In total, McCoy admitted that he took approximately $532,395.59 of monies from Chase Bank. The actual loss to Chase Bank, after accounting for funds that the defendant deposited into client accounts and other funds that the bank was able to recover, is $447,784.45.
At sentencing, the Court ordered the defendant to pay $447,784.45 in restitution.
The investigation was conducted by the U.S. Secret Service. Assistant United States Attorney Meredith George Thomas handled the prosecution. The sentence was imposed by United States District Judge Irene Berger.
Former CEO and Former CFO of ArthroCare Corp.<br /> Charged with Orchestrating $400 Million<br /> Securities Fraud SchemeRead the Press Release
The former chief executive officer and former chief financial officer of ArthroCare Corp., a publicly traded medical device company based in Austin, Texas, were charged for their alleged leading roles in a $400 million scheme to defraud the company’s shareholders and members of the investing public by falsely inflating ArthroCare’s earnings by tens of millions of dollars, announced Acting Assistant Attorney Mythili Raman of the Department of Justice’s Criminal Division and U.S. Attorney Robert Pitman of the Western District of Texas.
A 17-count indictment was unsealed today in the U.S. District Court for the Western District of Texas against Michael Baker, the former chief executive officer and director of ArthroCare, and Michael Gluk, the former chief financial officer of ArthroCare. Both defendants surrendered to authorities this morning.
The indictment, which was returned on July 16, 2013, charges Baker and Gluk with one count of conspiracy to commit wire and securities fraud, 11 counts of wire fraud, and two counts of securities fraud; it charges Baker alone with three counts of false statements. The indictment also seeks forfeiture of assets held by Baker and Gluk.
“Truthful corporate earnings reports are critical to the soundness of our financial system,” said Acting Assistant Attorney General Raman. “Today’s indictment alleges that those at the top of ArthroCare deceived investors and regulators by manipulating the company’s reports to inflate its stock, ultimately causing hundreds of millions in losses in shareholder value. The Criminal Division will continue to aggressively pursue corporate executives who undermine our financial markets for personal gain.”
According to the indictment, from at least December 2005 through December 2008, Baker, Gluk and other senior executives and employees of ArthroCare allegedly falsely inflated ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors. According to court documents, Baker, Gluk and other ArthroCare employees determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. Baker, Gluk and others then allegedly caused ArthroCare to “park” millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare would then report these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
The indictment alleges that ArthroCare’s distributors agreed to accept shipment of millions of dollars of product in exchange for substantial, upfront cash commissions, extended payment terms and the ability to return product, as well as other special conditions, allowing ArthroCare to falsely inflate its revenue by tens of millions of dollars.
Baker, Gluk and others allegedly used DiscoCare, a privately owned Delaware corporation, as one of the distributors to cover shortfalls in ArthroCare’s revenue. According to the indictment, at Baker and Gluk’s direction, ArthroCare shipped product to DiscoCare that far exceeded DiscoCare’s needs.
In addition, Baker, Gluk and others allegedly lied to investors and analysts about ArthroCare's relationships with its distributors, including its largest distributor, DiscoCare. According to the indictment, Baker and Gluk caused ArthroCare to acquire DiscoCare specifically to conceal from the investing public the nature and financial significance of ArthroCare's relationship with DiscoCare.
The indictment further alleges that when Baker was deposed by the U.S. Securities and Exchange Commission about the DiscoCare relationship in November 2009, he lied again on multiple occasions.
According to court documents, between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.
If convicted, Baker and Gluk would face a maximum prison sentence of 25 years for the conspiracy charge, 20 years for each count of wire fraud, and 25 years for each securities fraud count. Baker faces five years for each count of false statements.
An indictment is merely a charge, and the defendants are presumed innocent until proven guilty.
This case was investigated by the FBI’s Austin office. The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William Chang of the Criminal Division’s Fraud Section. The Department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.
Former Ashburn Jeweler Pleads Guilty to Running $20 Million Mortgage Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Robert Mikail, 41, formerly of Ashburn, Va., pleaded guilty today to conspiring to commit bank fraud in connection with his role in fraudulent mortgage loan transactions involving approximately 36 properties in northern Virginia and nearly $20 million in fraudulently obtained loans.
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 the plea was accepted by United States District Judge James C. Cacheris.
Mikail was indicted on April 4, 2013, by a federal grand jury on conspiracy and bank fraud charges. Mikail faces a maximum penalty of 30 years in prison when he is sentenced on October 11, 2013.
In a statement of facts filed with the plea agreement, Mikail admitted to conspiring with loan officers, including Bing-Sing “Cindy” Wang, to defraud mortgage lenders as part of a scheme to profit from fraudulently obtained mortgage loans and the purchase of residential real estate in northern Virginia. As part of the scheme, Mikail admitted to recruiting five individuals, known as “straw buyers,” to serve as nominal purchasers in these transactions, and to working with the loan officers to falsify critical information on the straw buyers’ loan applications in order to get the loans approved and the transactions closed. In particular, virtually all of the fraudulent loan applications falsely identified Mikail’s Ashburn, Va., jewelry store, Opus Jewelry, as the borrower’s employer, which Mikail would then falsely verify to the lenders as part of the loan approval process.
In total, Mikail admitted to engineering the purchase of approximately 36 homes in Ashburn, Va., from 2005 through 2007, and to obtaining from lenders approximately $19.9 million in loan proceeds on the basis of fraudulent loan applications. While Mikail admitted to personally profiting by approximately $882,387 from these transactions, all of the loans ultimately defaulted, resulting in significant losses to the lenders.
Co-conspirator Wang, the owner of Lifetime Financial Services in Herndon, Va., pleaded guilty to related charges on November 20, 2012, and was sentenced to 24 months in prison on February 26, 2013.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson is prosecuting 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.Florida Man and His Corporation Sentenced for Illegal Dredging and Wetlands Violations in Panama CityRead the Press Release
PANAMA CITY, FLORIDA – Brian Raphael D’Isernia, 69, of Panama City Beach, Florida, and Lagoon Landing, LLC, a corporation controlled by D’Isernia, were sentenced today in federal court in the Northern District of Florida for illegal dredging and felony wetlands violations. The two defendants were ordered to pay a criminal fine totaling $2.25 million dollars, the largest criminal fine assessed for wetlands violations in Florida history.
D’Isernia was sentenced to a fine of $100,000 and a $25 special monetary assessment, while Lagoon Landing, LLC, was sentenced to a term of probation of three years, a fine of $2.15 million, a community service payment of $1 million to the National Fish and Wildlife foundation, a charitable non-profit organization created by Congress, and a $400 special monetary assessment.
D’Isernia pleaded guilty to charges that he knowingly violated the Rivers and Harbors Act. Specifically, D’Isernia admitted to his involvement in illegally dredging an upland cut boat basin in Allanton and the channel connecting it to East Bay between December 2009 and February 2010.
Lagoon Landing, LLC, pleaded guilty to a felony violation of the Clean Water Act for knowingly discharging a pollutant into waters of the United States without a permit. Between 2005 and 2010, Lagoon Landing used tractors and other heavy equipment to alter and fill wetland areas of property it controlled in Allanton without obtaining a permit. The wetland areas were adjacent to East Bay.
The National Fish and Wildlife Foundation will use the money to fund projects for the conservation, protection, restoration and management of wetland, marine, and coastal resources, with an emphasis on projects benefiting wetlands in and around St. Andrew Bay.
United States Attorney Pamela C. Marsh said, “The beautiful seashores and pristine waters in North Florida are deserving of our protection, and Congress has given us strong environmental laws to ensure these treasures are preserved for future generations. My office will continue to work closely with the EPA, as we did in this case, to enforce federal environmental protection laws. It is my hope that the $1 million payment to the National Fish and Wildlife Foundation for restoration and marine protection projects will help mitigate the damage done by these defendants and also send a strong deterrence message that polluting our waters will not be tolerated.”
“The defendants failed to secure required permits and damaged environmentally sensitive wetlands,” said Maureen O’ Mara, Special Agent-in-Charge of EPA’s criminal enforcement program in Florida. “These are essential natural resources and today’s sentence shows that any company or person that harms them will be prosecuted.”
Five separate but related civil settlements have also been filed:
- Northwest Florida Holdings, Inc., a Florida corporation controlled by D’Isernia, entered into an Administrative Compliance Order with the U.S. Environmental Protection Agency (EPA) that will result in the restoration of approximately 58.63 acres of wetlands and upland buffers. The wetlands will be protected from future development by a conservation easement. The corporation also agreed to study the water quality in and around the Allanton and Nelson Street Shipyards;, to upgrade stormwater protection for the Allanton Shipyard, to withdraw applications to convert the launching basin to a marina, to create a Planned Unit Development at the Allanton Shipyard; and to hire someone to oversee environmental compliance.
- Northwest Florida Holdings, Inc., entered into a Consent Order with the Florida Department of Environmental Protection (FDEP) and agreed to conduct stormwater corrective actions and water quality studies at the Allanton Shipyard. The corporation will pay a $9,750 civil fine to the Ecosystem Management and Restoration Trust Fund, and $94,718.25 in severed dredge materials fees to the Florida Internal Improvement Trust Fund.
- Bay Fabrication, Inc., a corporation controlled by D’Isernia, entered into a Consent Order with FDEP and agreed to conduct stormwater corrective actions and water quality studies at the Nelson Street Shipyard. The corporation will pay a $6,000 civil fine to the Ecosystem Management and Restoration Trust Fund, and $76,923 in severed dredge materials fees to the Florida Internal Improvement Trust Fund.
- Peninsula Holdings, LLC, a corporation controlled by D’Isernia, entered into a Consent Order with FDEP and agreed to conduct stormwater improvements at property it owns located at 2500 Nelson Street, Panama City, Florida 32401. The corporation will pay a $1,500 civil fine to the Ecosystem Management and Restoration Trust Fund.
- D’Isernia and his wife Miriam D’Isernia entered into a Consent Order with FDEP to remove unauthorized fill materials from property located in Panama City Beach, Florida. Brian and Miriam D’Isernia will pay a $250 civil fine to the Ecosystem Management and Restoration Trust Fund.
Five Federally Charged with Gunpoint Carjackings, Attempts in Essex County, N.J.Read the Press Release
NEWARK, N.J. – Five men will appear in Newark federal court today to face federal charges for a string of gunpoint carjackings and attempted carjackings in Essex County, N.J., U.S. Attorney Paul J. Fishman announced.
As part of an ongoing joint anti-carjacking initiative involving investigators and prosecutors at the federal, state and local levels, the U.S. Attorney’s Office works with the Essex County Prosecutor’s Office and other law enforcement partners to select cases appropriate to adopt from the state for federal prosecution. Federal charges typically carry longer potential prison terms and there is no parole in the federal system.
The five defendants, who have been in state custody since their respective arrests, are expected to appear today before U.S. Magistrate Judge Mark Falk.
“The wave of carjackings in Essex County is unacceptable to all who live, work and visit here,” said U.S. Attorney Fishman. “As long as carjackers target the area, law enforcement will continue to work together to fight back. Federally prosecuted carjackers face decades in prison, with no parole, far from home.”
“As part of our ongoing effort to combat carjacking in Essex County, we are encouraged by this partnership with the U.S. Attorney’s Office to bring more stringent penalties to individuals who commit the violent crime of carjacking on our streets,” said Acting Essex County Prosecutor Carolyn A. Murray.
According to the federal complaints unsealed today:
Corey Thermitus, 21, of Newark, is charged with one count of theft of a motor vehicle by force, violence and intimidation and one count of attempting the same crime. He is also charged with discharging a firearm in furtherance of a crime of violence.
On Dec. 28, 2012, Thermitus approached a gray Honda Accord in the driveway of a Newark home, opened the door and put a gun to the head of the person in the driver’s seat, threatening to shoot. Thermitus and accomplices drove away in the car, leaving the victim sitting on the ground. Later that night, Thermitus took the Accord to another Newark residence and tried to carjack a red Pathfinder from a victim with a young child in the car, shooting at someone who came out of the residence. Newark police officers apprehended Thermitus shortly after midnight after his accomplice rammed a police car with the Accord and the suspects fled on foot.
Edwin Ayala, 37, and Walder Morales, 21, both of Newark, are each charged with one count of attempted theft of a motor vehicle by force, violence and intimidation and one count of use of a firearm in furtherance of a crime of violence.
On Dec. 15, 2012, Ayala, wearing a ski mask, pointed a gun at the head of an individual sitting in a Chevrolet Equinox and demanded the keys to the vehicle. After the victim dropped the keys, Morales came over to retrieve them and the pair fled with the victim’s car keys, money and phone. Newark police officers were able to track the phone to apprehend the defendants.
Lee Caraballo, 27, of Newark, is charged with one count of theft of a motor vehicle by force, violence and intimidation and one count of use of a firearm in furtherance of a crime of violence.
On Nov. 30, 2012, Caraballo approached a silver Toyota Corolla parked in the victim’s driveway, pointed a gun at the driver’s head and ordered the driver out of the car. After also stealing the victim’s wallet and cell phone, Caraballo left the area with the car.
A Roselle Park police officer caught Caraballo later that day in a traffic stop. Caraballo was driving a black Mercedes for which he couldn’t produce the necessary papers. Police found a cell phone and keys in the vehicle Caraballo was driving.
Nathaniel Tullies, 19, of East Orange, N.J., is charged with one count of theft of a motor vehicle by force, violence and intimidation and one count of use of a firearm in furtherance of a crime of violence.
On Nov. 8, 2012, when an individual got out of a Chevrolet Impala to open a garage door, Tullies and an accomplice got on either side of the car, took it from the victim at gunpoint and drove away. The victim called police, who responded within minutes.
A Newark police detective spotted the vehicle and a high-speed chase ensued, ending when the Impala crashed on the shoulder of Route 1/9, the suspects fled on foot and the detective chased and captured Tullies.
The federal charge of carjacking or attempted carjacking carries a maximum potential penalty of 15 years in prison; 25 years in prison if serious bodily injury results; and life in prison or the federal death penalty if death results. The charge of use of a firearm in furtherance of a crime of violence carries a minimum consecutive term of five years in prison if a firearm is possessed, seven years in prison if a firearm is brandished, 10 years in prison if a firearm is discharged and a maximum of life in prison. Each of these charges also carries a maximum $250,000 fine.
Defendants prosecuted by the U.S. Attorney’s Office as a result of the anti-carjacking initiative have been sentenced to significant prison terms. Recent examples include:
Defendant
Age
Charges
Sentencing Date
Sentence
23
conspiracy; theft of a motor vehicle by force, violence and intimidation; and use of a firearm in furtherance of a crime of violence
2/20/13
130 months
Jermaine May
29
conspiracy; theft of a motor vehicle by force, violence and intimidation; and use of a firearm in furtherance of a crime of violence
2/15/13
118 months
Jirrod Parker
25
theft of a motor vehicle by force, violence and intimidation; use of a firearm in furtherance of a crime of violence; and being a felon in possession of a firearm
1/9/13
150 months
Taj Elliott
24
conspiracy; theft of a motor vehicle by force, violence and intimidation; and use of a firearm in furtherance of a crime of violence
10/22/12
147 months
Jerome Conover
21
conspiracy; theft of a motor vehicle by force, violence and intimidation; and use of a firearm in furtherance of a crime of violence
8/16/12
181 months
Jahlil Thomas
23
conspiracy; theft of a motor vehicle by force, violence and intimidation; and use of a firearm in furtherance of a crime of violence
6/1/12
262 months
Amonra Jackson
30
theft of a motor vehicle by force, violence and intimidation and one count of being a convicted felon in possession of a firearm
3/28/12
120 months
U.S. Attorney Fishman praised the Essex County Prosecutor’s Office, under the Direction of Acting Prosecutor Murray; the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Newark Police Department, under the direction of Director Samuel A. DeMaio and Chief Sheilah A. Coley; and the Roselle Park Police Department, under the direction of Chief Paul Morrison; as well as investigators in the U.S. Attorney’s Office for the investigation that led to the new charges announced today.
Fishman also lauded the other members of the carjacking task force – the New Jersey Attorney General’s Office; New Jersey State Police; Essex County Sheriff’s Office; Bureau of Alcohol, Tobacco, Firearms and Explosives; DEA, United States Marshals Service; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations – for their continued commitment to addressing the carjacking problem in Essex County.
Regarding the federal cases with charges unsealed today, the government is represented by Assistant U.S. Attorneys Dara Govan, Elizabeth Harris and Courtney Oliva of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations and the defendants are considered innocent unless and until proven guilty.
13-291
Defense counsel: Corey Thermitus, Edwin Ayala, Lee Caraballo, Nathaniel Tullies: Assistant Federal Public Defender Peter Carter Esq., Newark
Walder Morales: Joseph Rubino Esq., West Orange, N.J.Caraballo Complaint
Ayala and Morales Complaint
Thermitus Complaint
Tullies ComplaintFamily-Run Tax Fraud Scheme Sends Three to PrisonRead the Press Release
BROWNSVILLE, Texas – Judy Lynn McCune, Loretta Ann McCune and Rania Ann Sanchez have been ordered to prison for conspiring to defraud the federal government in a scheme to prepare federal tax returns and cash refund checks in the name of deceased individuals, United States Attorney Kenneth Magidson announced today along with Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz. The three women entered pleas of guilty in April 2013.
This morning, U.S. District Judge Andrew S. Hanen, who accepted the guilty pleas, handed Judy Lynn McCune a sentence of 57 months, while Loretta McCune and Sanchez will serve respective terms of 20 and 24 months in prison. The court also ordered the payment of restitution in the amount of $223,098 to the IRS. They will be required to serve a term of three years of supervised release following completion of their prison terms.
Judy Lynn McCune admitted she recruited members of her family, including her mother, Loretta Ann McCune, and her sister, Sanchez, into the scheme. The conspiracy involved obtaining Social Security numbers and dates of birth for deceased individuals through the Internet and then filing both paper and electronic federal income tax returns using the identifiers of these deceased individuals. The refunds were directly deposited in the personal bank account or mailed to the personal addresses of the accused. The total scheme consisted of approximately 340 false claims totaling $763,124 in filed false claims.
The court ordered Judy Lynn McCune to surrender on Aug. 27, 2013, to being serving her sentence. Loretta Ann McCune and Sanchez were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Robert and Edward Gutierrez, Judy Lynn McCune’s sons, are also charged in relation to the scheme. They have both pleaded guilty to filing a false income tax refund claim and are pending sentencing.
The case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Karen Betancourt.
Engineer Pleads Guilty to Making False Statements in Connection with Theft of Trade SecretsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JIAN MI, 38, a citizen of China and a lawful permanent resident of Rocky Hill, pleaded guilty today before United States District Judge Michael P. Shea in Hartford to one count of making a false statement to a federal law enforcement officer.
According to court documents and statements made in court, on July 22, 2011, JIAN MI knowingly made a materially false statement to agents of the Federal Bureau of Investigation by informing them that she had not shared with a competitor any advance copies of a PowerPoint presentation containing sensitive proprietary information obtained from her previous employer. At the time, she knew that she had, in fact, emailed a comprehensive PowerPoint presentation to representatives of the competitor where she was applying for a job as an engineer.
Judge Shea has scheduled sentencing for October 11, 2013, at which time JIAN MI faces a maximum term of imprisonment of five years, a maximum term of supervised release of three years, and a maximum fine of $250,000.
This matter is being investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Paul H. McConnell.
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(203) 821-3722 [email protected]Eliseo Lopez Martinez Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 18, 2013, before U.S. District Judge Sam E. Haddon, ELISEO LOPEZ MARTINEZ, a 49-year-old resident of Turlock, California, pled guilty to conspiracy to possess with intent to distribute controlled substances. Sentencing has been set for October 21, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorneys Joseph E. Thaggard and Brendan P. McCarthy, the government stated it would have proved at trial the following:
In late 2012, the FBI, DEA, the Montana Division of Criminal Investigation (MDCI), the ATF, various drug task forces based in Billings, the Billings Police Department, the Yellowstone County Sheriff's Department, and the Montana Highway Patrol began to investigate the widespread distribution of methamphetamine, cocaine, and heroin in an area stretching from Billings to the Bakken oil fields of northeastern Montana and western North Dakota. In March 2013, the Idaho State Police also joined the investigation;
As part of the investigation, on March 1, 2013, the Montana Highway Patrol stopped a vehicle driven by an unindicted coconspirator on Interstate 90 near Park City. The vehicle was subsequently searched and found to contain one-quarter pound of methamphetamine and a quantity of heroin the unindicted coconspirator said consisted of 80 grams.
The unindicted coconspirator admitted to distributing large amounts of heroin and methamphetamine. The unindicted coconspirator stated that the sources of supply for the drugs were "Mateo" and "Tomas." The descriptions provided by the unindicted conspirator of "Mateo" and "Tomas" matched those people known to law enforcement officers in Billings as MARTINEZ and Tomas Alvarado.
On March 11, 2013, Idaho State Police stopped a vehicle driven by Alvarado in Power County, Idaho. An adult female was a passenger in the vehicle. Alvarado said he and the passenger had driven from Billings to Nevada the previous day and were returning to Billings;
A search of the vehicle ensued. The authorities found a .40 caliber handgun, three gross pounds of a substance that yielded a presumptive Narcotics Identification Kit (NIK) test result for the presence of methamphetamine, and two gross pounds of a substance that yielded a positive NIK test result for the presence of cocaine.
On March 12, 2013, the authorities, acting under the authority of a search warrant, searched a residence in Billings occupied by MARTINEZ. The officers recovered three handguns, over $56,000 in United States currency, two pounds of suspected cocaine, six pounds of suspected methamphetamine, and over 100 grams of suspected heroin.
The officers also searched a motor vehicle at or near MARTINEZ's residence in Billings. That vehicle was associated with MARTINEZ. The officers found 16 total firearms, including handguns, shotguns, and rifles (including two semi-automatic, SKS assault-style rifles) in the vehicle.
MARTINEZ was taken into custody when the search warrant was executed on March 12, 2013. When interviewed, MARTINEZ stated he had moved to Montana two or three months earlier as part of plan whereby he and Alvarado distributed methamphetamine, cocaine, heroin, and marijuana in the Billings area. MARTINEZ estimated that he and Alvarado had sold approximately 25 pounds of methamphetamine over the preceding two months.
On March 12, 2013, the authorities also interviewed Alvarado. Alvarado stated that he and MARTINEZ had distributed methamphetamine in Billings since approximately October 2012 and moved to Billings in November 2012 as part of the distribution scheme. Alvarado detailed that, between October 2012 and March 12, 2013, he and MARTINEZ distributed at least 80 pounds of methamphetamine to subordinate drug dealers in Montana.
MARTINEZ faces possible penalties of life in prison, a $10,000,000 fine and 5 years supervised release.
Alvarado pled guilty to federal charges and is awaiting sentencing.
The investigation was a cooperative effort between the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Montana Division of Criminal Investigation.
El Departamento de Justicia realiza acuerdo amplio con el Estado Libre Asociado de Puerto Rico para la reforma del Departamento de Policía de Puerto RicoRead the Press Release
WASHINGTON - Hoy, el Departamento de Justicia realizó un acuerdo amplio de derechos civiles con el Estado Libre Asociado de Puerto Rico para la modernización y la reforma del Departamento de Policía de Puerto Rico [PRPD - Puerto Rico Police Department]. El acuerdo resuelve una demanda civil presentada por el Departamento de Justicia de EE.UU. [U.S. Department of Justicia (DOJ)] en diciembre de 2012 para remediar un patrón y una práctica de conducta policial indebida por parte del PRPD. El acuerdo representa un compromiso conjunto los servicios policiales efectivos y constitucionales y es producto de negociaciones amplias entre el departamento, el PRPD y los gobiernos del Gobernador Alejandro García Padilla y su predecesor Luis Fortuño. El acuerdo fue presentado al tribunal federal hoy y adquirirá fuerza de orden judicial una vez aprobado por el Juez de Distrito Gustavo A. Gelpí.
El acuerdo fue diseñado no solo para promover los servicios policiales constitucionales, sino también para optimizar la seguridad pública y de los agentes e incrementar la confianza de la comunidad en el PRPD. El acuerdo amplio se encuentra entre los acuerdos más exhaustivos ya obtenidos por el departamento bajo la disposición de conducta policial indebida de la Ley de Control de Delitos Violentos y Coacción Legal de 1994, y requiere acción correctiva en once áreas principales. Estas áreas incluyen el uso de fuerza, allanamientos y confiscaciones, protección igualitaria, políticas y procedimientos, capacitación, supervisión, quejas de civiles e investigaciones internas, participación comunitaria y sistemas de información. El acuerdo también brindará al público oportunidades significativas de participar en el proceso de reforma a través de reuniones comunitarias periódicas, informes públicos, comités de interacción civiles, encuestas comunitarias, y la implementación de principios de prestación de servicios policiales comunitarios. Se prevé que el acuerdo será implementado en el plazo de diez años, aunque no existe una fecha de vencimiento. Un asesor en cumplimiento técnico evaluará e informará acerca del cumplimiento del PRPD, y brindará asistencia técnica para promover la prestación de servicios policiales constitucionales.
El acuerdo también fue diseñado de acuerdo con las necesidades singulares del PRPD y con el reconocimiento de los desafíos de seguridad que Puerto Rico enfrenta. Con una misión diversificada y una fuerza policial de 17,000 agentes, el PRPD es el segundo departamento de policía del país en tamaño y atiende a más de cuatro millones de residentes. Un periodo inicial de creación de capacidad le permitirá al PRPD modernizar sus sistemas administrativos y profesionalizar su fuerza policial. A través del desarrollo de planes de acción, el PRPD tendrá amplia flexibilidad para realizar la implementación y asignar recursos para lograr resultados mensurables en los plazos establecidos. Una vez implementados los planes, los agentes de todas las regiones policiales tendrán la orientación sobre la política, la capacitación, la supervisión, los equipos y el apoyo que requieren para llevar a cabo sus tareas de manera legal, eficaz y eficiente.
"Felicitamos a los gobiernos del Gobernador Alejandro García Padilla y su predecesor Luis Fortuño por aceptar el desafío formidable de transformar al PRPD en una fuerza policial moderna que incluye la prestación de servicios policiales constitucionales en su misión esencial", señaló el Secretario de Justicia de EE.UU. Eric Holder, Jr. "Los departamentos de policía que respetan los derechos de las personas que atienden se ganan la confianza del público y pasan a ser más eficaces en la lucha contra la delincuencia. Debido a que este acuerdo que anunciamos hoy institucionalizará la cultura de la rendición de cuentas, Puerto Rico ahora tendrá acceso a casi 10 millones de dólares de fondos de confiscación de bienes, que podrá utilizar para implementar las reformas contenidas en el acuerdo".
"Bajo el liderazgo del Secretario de Justicia Luis Sánchez Betances, el Superintendente Héctor Pesquera y sus equipos, hemos logrado dar forma a un acuerdo histórico que brindará a los hombres y las mujeres trabajadores del PRPD el apoyo y las herramientas que necesitan para proteger los derechos civiles y lograr la participación efectiva de la comunidad en iniciativas de seguridad pública", dijo el Subsecretario de Justicia Interino Tony West. "También agradecemos a todos los líderes comunitarios, agentes de la policía y miembros del público que se ofrecieron para ayudar en nuestra investigación y que hicieron que este día fuera posible".
La demanda civil de diciembre de 2012 del departamento se entabló después de una investigación de las políticas y prácticas del PRPD. La investigación reveló deficiencias amplias y antiguas que provocaron un patrón y una práctica de conducta policial indebida, incluidos el uso de fuerza excesiva, uso de fuerza irrazonable diseñados para suprimir la libertad de expresión protegida, y allanamientos y confiscaciones inconstitucionales. La investigación también reveló pruebas de que el PRPD ha dejado de investigar adecuadamente casos de violencia de género y que ha prestado servicios policiales discriminatorios. El PRPD cooperó a lo largo de la investigación y comenzó a implementar acciones correctivas como respuesta a las recomendaciones del equipo de investigación y la asistencia técnica.
El departamento comenzó a negociar un acuerdo con el gobierno del ex Gobernador Luis Fortuño después de completar la investigación en septiembre de 2011. Las negociaciones culminaron con un acuerdo preliminar presentado junto con la demanda del departamento en diciembre de 2012. La corte federal aceptó el pedido de suspensión conjunto para brindarle al gobierno del Gobernador García Padilla la oportunidad de examinar y negociar un acuerdo definitivo. Una vez que el tribunal federal apruebe el acuerdo, las partes seleccionarán un asesor de cumplimiento técnico y comenzarán la implementación.
Se encuentran una copia de la demanda, el acuerdo final, una petición conjunta de aprobación del acuerdo y la carta de hallazgos de septiembre de 2011 en www.justice.gov/crt. Si tiene información relevante al caso y al PRPD, comuníquese con el Departamento de Justicia escribiendo a [email protected] o llamando al 877-871-9726.
Eastern District U.S. Attorney’s Office Participates in Record Settlement: Walgreens Agrees to Pay $80 Million in Civil Penalties Under the Controlled Substances ActRead the Press Release
Walgreen Co. (Walgreens), the nation’s largest drug store chain, agreed to pay $80 million in civil penalties for violations of the Controlled Substances Act resolving administrative actions by the Drug Enforcement Administration (DEA), and Department of Justice civil investigations in the Eastern District of New York, the Southern District of Florida, the District of Colorado and the Eastern District of Michigan, as well as civil investigations by DEA nationwide. Walgreens also agreed to surrender the authority of six of its pharmacies and one of its distribution centers to distribute or dispense certain controlled substances for a period of two years. Walgreens further agreed to create a Department of Pharmaceutical Integrity to ensure compliance with regulations and to prevent the diversion of controlled substances. The details of the nationwide resolution, announced by the Southern District of Florida U.S. Attorney’s Office on June 11, 2013, can be found at http://www.justice.gov/usao/fls/PressReleases/130611-01.html.
Details surrounding the Eastern District of New York’s investigation of Walgreens were made public earlier today with the guilty plea of nurse practitioner Eva MacDowall. MacDowall, who was prosecuted by the Suffolk County District Attorney’s Office, pled guilty in Suffolk County Court to one charge of criminal possession of a forged instrument in the second degree in connection with her writing a bogus prescription for oxycodone that she filled at a Walgreens pharmacy in Selden, New York, on June 8, 2012. The investigation and prosecution of MacDowall revealed that Walgreens repeatedly violated the Controlled Substances Act by filling numerous prescriptions that Walgreens employees knew, or should have known, were not issued for a legitimate medical purpose. Over a two year period from July 2010 until July 2012, MacDowall filled 94 different, illegitimate prescriptions -- primarily for two highly addictive painkillers, oxycodone and hydrocodone -- at a Walgreens pharmacy in Selden and two Walgreens pharmacies in Medford.
“The abuse of oxycodone, hydrocodone and other painkillers has become an epidemic, as overdose deaths from prescription painkillers is now more common than overdose deaths from heroin and cocaine combined,” said United States Attorney Loretta E. Lynch. “Nationwide, Walgreens repeatedly failed to live up to its obligation to safeguard highly addictive prescription drugs. Here on Long Island, these three stores allowed themselves to become a haven for prescription drug abusers, turning a blind eye as McDowall repeatedly filled one forged prescription after another. In so doing, Walgreen’s contributed to the epidemic increase in the abuse of prescription drugs that we are seeing in Long Island, and around the country.”
Suffolk County New York District Attorney Thomas J. Spota stated, “We are pleased that Suffolk County’s prosecution of this defendant aided in the exposure of improper practices at Walgreens and the successful civil action by the United States Attorneys’ Offices that ultimately forced the retailer to comply with the law and pay 80 million dollars in fines.”
Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration, New York Filed Office, stated, “This is the trend of a local investigation merging with a nationwide federal investigation focused on the diversion of pain medication and its harmful effects to citizens across our country. Beginning in 2010, the Suffolk County Police Department began investigating a nurse practitioner forging prescriptions for inexplicably large amounts of oxycodone and hydrocodone filled at two Walgreens Pharmacies in Long Island, New York. Subsequently, a Federal Task Force pooled their resources which led to the national civil investigation into Walgreens CSA violations. The primary threat to the New York City region is opiate abuse, ranging from diverted pain medication to heroin. Opiate abuse has spread like cancer leaving disaster and death in its wake; there was a 6% increase of people seeking treatment for heroin addiction last year, and of all prescription drug deaths, 74% are accidental deaths. Today’s announcement demonstrates law enforcement’s collaboration at its best to combat the deadly effects of opiate abuse and identify those who threaten public health and safety and violate the law at every step in the drug supply chain.”
In January 2012, the United States Attorney’s Office for the Eastern District of New York and the Drug Enforcement Administration, in conjunction with the five district attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department and New York State Police, along with other key federal, state and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Prescription Drug Initiative has brought over 120 federal and local criminal prosecutions, taken civil enforcement action against a pharmacy, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
Assistant United States Attorney Elliot M. Schachner led the civil investigation of Walgreens in the Eastern District of New York. Suffolk County Assistant District Attorney Tanya Rickoff was responsible for the criminal prosecution of Eva MacDowall.
District Man Sentenced to 55 ½ Years in PrisonRead the Press Release
For First-Degree Murder While Armed
And Other Charges in Christmas 2009 Attack
-Gunshots Killed One Man, Wounded Two Others-WASHINGTON – Marlo Garcia, also known as “Lupita,” 24, was sentenced today to a prison term of 55 ½ years following his conviction for first-degree murder while armed and other charges in a shooting on Christmas Day 2009 that killed one man and wounded two others, U.S. Attorney Ronald C. Machen Jr. announced.
Garcia, of Washington, D.C., was found guilty by a jury in March 2013, following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury found him guilty of three counts of assault with intent to kill while armed and related weapons offenses. The Honorable Ronna L. Beck sentenced him this afternoon.
According to the government’s evidence, on Dec. 25, 2009, Garcia was invited by his friend, Miguel Romero, to attend a Christmas party at about 4 a.m. at a rooming house in the 5400 block of Fourth Street NW. Garcia brought a .25-caliber handgun to the location, and while there, he went out in an alley to shoot it. When told to stop, he became agitated.
Garcia then went inside the residence and began dancing and groping his friend’s girlfriend. Mr. Romero’s cousin approached Garcia to calm him, and Garcia shot him in the head. He then shot the girlfriend in the head and shot Mr. Romero in the back, neck and head. Garcia then fired yet another shot but missed a fourth person at the apartment. Mr. Romero, 21, died immediately. The other two shooting victims still have bullets lodged in their brains.
After shooting the victims, Garcia fled the apartment. He was arrested two days later.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers, and mobile crime scene officers from the Metropolitan Police Department (MPD) who investigated the case. He also acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Kate Rakoczy, Paralegal Specialist Kelly Blakeney, and Melissa Milam, Iris Vega, Marcia Rinker, Laverne Forrest, Michael Hailey, Katina Adams and David Foster, all of the Victim Witness Assistance Unit. Finally, he commended the work of Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
13-250Daniel Young Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 18, 2013, before U.S. District Judge Sam E. Haddon, DANIEL YOUNG, a 35-year-old resident of Billings, appeared for sentencing. YOUNG was sentenced to a term of:
Prison: 18 months
Special Assessment: $100
Restitution: $490,153.43
Supervised Release: 5 years
YOUNG was sentenced in connection with his guilty plea to bank fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
YOUNG owned and operated Auto Plaza, Inc. in Billings. Auto Plaza sold used vehicles along with new and used boats, ATV's, motorcycles, snowmobiles and recreational vehicles. Two other individuals were co-owners and/or partners with YOUNG from 2007 to 2010; however, YOUNG was the primary operator of the business. YOUNG operated the dealership and handled the day to day financial transactions.
Auto Plaza, Inc., maintained day-to-day operations with the assistance of several financing companies (also referred to as a "floor plan"), including Dealer Services Corporation and First Interstate Bank ("FIB"). The dealership typically acquired their inventory through the Auto Auction in Billings. After a vehicle was sold by Auto Plaza, Inc., the company with that provided the financing to originally purchase the car was to be paid off with the proceeds of the sale. The paying off of any liens on vehicles by the financing company allowed for a clear title to be passed on to the new buyer of the vehicle.
In approximately October of 2010, FIB canceled the $500,000 floor plan at the Auto Plaza. In approximately November of 2010, Dealer Services Corporation also canceled their financing at the Auto Plaza.
During the course of the investigation, it was learned that the dealership was out of trust possibly since the day they obtained their floor plan loan with FIB as well as Dealer Services Corporation; the dealership sold vehicles with unpaid liens and failed to provide new owners titles; the dealership sold vehicles they didn't pay for; the dealership sold extended warranties for vehicles that were not actually purchased from the warranty companies; and the dealership sold vehicles/boats they held on consignment and didn't pay the owner.
Specifically, on August 1, 2008, in Billings, YOUNG sold a 2005 Mastercraft boat with a lien held by Key Bank, N.A., of Brooklyn, Ohio. When YOUNG sold the boat at the Auto Plaza, he caused the submission of false loan documents to First Interstate Bank; in that the new purchaser was told there was no lien on the boat. First Interstate Bank believed they were obtaining a first position on the title of the boat and authorized the loan. The loan was funded by First Interstate Bank and the Auto Plaza received the money for the boat purchase. In furtherance of the scheme, YOUNG lied to a personal banker at First Interstate Bank about the payoff of the lien to Key Bank, N.A., and caused the submission of a false lien release to the Montana Division of Motor Vehicles on behalf of Key Bank for the boat.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that YOUNG will likely serve all of the time imposed by the court. In the federal system, YOUNG does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Dallas Residents Arrested in Law Enforcement OperationRead the Press Release
Large Amounts of Cocaine and Methamphetamine Seized, Along With Luxury Vehicles and More Than $350,000 in Cash
DALLAS — Seven Dallas residents were arrested yesterday in an Organized Crime Drug Enforcement Task Force (OCDETF) operation conducted by special agents with the FBI and officers with the Dallas Police Department on several federal drug-trafficking complaints. During this phase of the operation, three pounds of methamphetamine, more than $30,000 in United States currency and several firearms were seized.
The first phase of this OCDETF operation was executed on July 2, 2013, when law enforcement seized approximately 14 kilograms of cocaine, one and one-half pounds of methamphetamine (ICE), four luxury vehicles and more than $315,000 in United States currency. Four defendants from Dallas were arrested that day and charged by federal complaint with conspiring to possess with intent to distribute five kilograms or more of cocaine.
Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas, and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division, announced the results of the operation today.
The following seven defendants were arrested yesterday and will appear this afternoon before U.S. Magistrate Judge David L. Horan:
- Reynaldo Macedo-Flores, 35
- Calletano Flores-Hernandez, a/k/a Rolando Nunez-Hernandez, 47
- Austreberta Macedo-Flores, 53
- Rigoberto Aguirre, 35
- Jose Eduardo Madrigal-Moreno, 20
- Diego Hernandez-Valencia, 22
- Rupertro Renteria-Ramos, 27
The following four defendants were arrested on July 2, 2013, and have made their initial appearances in federal court. All were ordered detained.
- Victor Guillen, 21
- Ezekiel Maldonado, 34
- Roger Molina, 25
- Juan Perez Bernal, 36
The case involves undercover purchases, wiretaps and search warrants. In total, 14 kilograms of cocaine, four and one-half pounds of methamphetamine (ICE), five firearms, four luxury vehicles and $351,010 in cash have been seized in the operation.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The statutory maximum penalties for the charged offenses range from 40 years to life in federal prison and millions of dollars in fines.
The FBI and the Dallas Police Department are leading this OCDETF investigation. Assistant U.S. Attorney Jason Schall is in charge of the prosecution.
Dallas County Man Arrested and Charged with Distribution of Child PornographyRead the Press Release
DALLAS --- Quincy Lamar Poole, 24, of Lancaster, Texas, has been arrested on a federal criminal complaint charging distribution of child pornography. Poole made his initial appearance this afternoon in federal court in Dallas and was detained pending a hearing set for Tuesday, July 23, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed in the matter, law enforcement executed a federal search warrant at Poole’s residence in Lancaster on July 16, 2013; Poole and others were home at the time. Pursuant to the warrant, law enforcement seized computers and other computer media. Poole advised that he had traded child pornography with others he met on Internet websites. He also advised that during his 10-year obsession with child pornography, he had downloaded thousands of images of child pornography.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The matter is being investigated by the FBI. Assistant U.S. Attorney Camille Sparks is prosecuting.
Colleyville, Texas, Father and Son, Who Were Convicted on Tax and Tax-Related Charges, Receive Lengthy Federal Prison Sentences and Are Ordered to Pay Large FinesRead the Press Release
Larry Lake Was Part-Owner of Grapevine Drug Mart - Son Travis Lake Managed the Business
FORT WORTH, Texas — Larry Lake and his son, Travis Lake, were sentenced today in U.S. District Court in Fort Worth, Texas, by U.S. District Judge John McBryde, to 168 months and 13 months in federal prison, respectively, following their convictions earlier this year on tax and tax-related charges. In addition, Judge McBryde ordered that Larry Lake pay a $550,000 fine as well as any taxes, interest and penalties owed, which will equal approximately $25 million. Judge McBryde ordered that Travis Lake pay a $30,000 fine; he has already paid $26,816 in restitution prior to sentencing. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Larry Lake was convicted at trial in February 2013 on one count of concealment of assets (bankruptcy fraud) and three counts of tax evasion. He was remanded into custody following the conviction. Travis Lake pleaded guilty in February 2013 to an indictment charging three counts of fraud and false statements in connection with tax returns he filed for tax years 2006, 2007 and 2008. He was remanded into custody after today’s sentencing hearing.
According to the public court record, Larry Lake is a resident of Colleyville, Texas, and owns and operates several businesses including VIP Finance of Texas, an auto title loan business with branches throughout the Dallas-Fort Worth area; Cash Auto Sales, which handles the auto club memberships for VIP Finance; and is a part owner of Grapevine Drug Mart, a family-owned and operated pharmacy in Grapevine, Texas.
According to the factual resume filed in his case, Travis Lake manages Grapevine Drug Mart, and according to an order setting conditions for his release, Travis Lake is also a resident of Colleyville.
According to evidence presented at Larry Lake’s trial, the day before he filed for bankruptcy in November 2004, Larry Lake knowingly and fraudulently transferred and concealed more than $3 million held in an E*TRADE account and a Compass Bank account. The funds were subsequently transferred by Larry Lake through a series of bank deposits, wire transfers and cashier’s checks. In addition, Larry Lake utilized a “shell” company to assist in concealing the assets.
Additionally, according to evidence presented at trial, Larry Lake devised a scheme to evade the assessment of his personal income taxes by under-reporting income on his and his spouse’s joint tax returns for the tax years 2006 through 2008. The unreported income was derived from his businesses, VIP Finance and Grapevine Drug Mart.
Further evidence presented by the government at trial showed that from August 2006 through November 2009, Larry Lake and his spouse agreed to structure more than 1,100 currency deposits, into at least 13 different bank accounts, knowing that structuring was illegal. These accounts were spread among several financial institutions, and the total amount structured during this time period was in excess of $9.3 million. Larry Lake and his spouse created at least two “shell” companies, which were used to open some of the 13 bank accounts used in the structuring scheme.
Larry Lake, according to evidence presented at trial, failed to disclose the structured funds, and the existence of the accounts containing the structured funds, to his income tax return preparer. In addition, Larry Lake failed to report income he received from Grapevine Drug Mart, having told his return preparer that he sold the business during the 2003 calendar year. By willfully withholding this information from his return preparer, the IRS suffered a total tax loss of $4,838,032.
According to the factual resume filed in Travis Lake’s case, from 2006 through 2008, he received quarterly and weekly payments of income drawn on Grapevine Drug Mart’s business bank accounts. The quarterly payments were generally received three to five times per year and varied in amounts ranging from $25,000 to $100,000. Each quarterly payment was made payable to Certified Tech Services, a dba that Travis Lake established, and deposited into Certified Tech Services’ business bank account. The weekly payments, in the form of checks, were much smaller and were made payable to Travis Lake or his wife, and deposited into personal accounts Travis Lake controlled. The factual resume further states that Travis Lake timely filed his federal income tax returns for 2006, 2007 and 2008, but willfully omitted income of approximately $77,070 for 2006; $82,540 for 2007; and $54,000 for 2008, all of which he received from Grapevine Drug Mart.
In related cases, two pharmacists at Grapevine Drug Mart, have also pleaded guilty to tax evasion, according to factual resumes filed in those cases. Norvell Moss admitted that he failed to report approximately $194,150 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Norvell Moss had an additional tax due and owing of $58,233 for that year. He was sentenced in May 2013 to 18 months in federal prison and ordered to pay $8,277 in restitution as well as a $30,000 fine.
Another pharmacist, Joseph Moss, admitted that he failed to report approximately $159,450 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, he had an additional tax due and owing of $58,554 for that year. He was sentenced last month to 12 months and one day in federal prison and ordered to pay $51,150 in restitution and a $3,000 fine.
The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins were in charge of the prosecutions.
Cleveland Heights Man Sentenced to Nearly 17 Years in Prison for Drug CrimeRead the Press Release
A Cleveland Heights man was sentenced to nearly 17 years in prison for drug crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Donte Booker, age 45, was found guilty earlier this of one count of attempted possession of five or more kilograms of cocaine.
U.S. District Judge James S. Gwin sentenced Booker to 16 years and eight months in prison.
Booker met with a confidential source in October 2012 in Cleveland to discuss a potential identity theft scheme. Booker also told the source that he was a home invader and had heard the source knew drug dealers in the area that he could rob of large amounts of drugs and/or money, according to court documents.
Over the next two months, Booker planned a robbery of 10 kilo grams of powder cocaine with individuals he believed were drug couriers, but who were in fact law enforcement. Booker repeatedly and explicitly expressed a willingness to use deadly force to effect the robbery. Law enforcement officials therefore decided the original scenario would be too dangerous and instead adopted Booker’s suggestion to conduct the robbery in a hotel parking lot, according to court documents.
Booker repeatedly stated that he would have no problem selling 10 kilograms of cocaine. On Jan. 8, 2013, Booker learned that a bag he believed contained 10 kilograms of powder cocaine was located inside a vehicle parked at the La Quinta Hotel on West 150th Street in Cleveland. Booker arrived at the parking lot, awaited the signal and stole the sham cocaine and was eventually arrested, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Edward F. Feran and Adam Hollingworth following an investigation by the Northern Ohio Law Enforcement Task Force (NOLETF) and the Cleveland Police Department.
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Homeland Security Investigations, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department.
Citizen of Dominican Republic Found with $369k in Drug Money Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOVANNY ARSENIO ROSARIO, 46, a citizen of the Dominican Republic, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 33 months of imprisonment for illegally reentering the United States after being deported.
According to court documents and statements made in court, ARSENIO ROSARIO, who had previously been deported from the U.S. after a conviction for committing an aggravated felony, was found in the U.S. on September 5, 2012. On that date, Connecticut State Troopers conducted a traffic stop in Tolland and found ARSENIO ROSARIO with two other individuals in a car that also contained 28 bundles of U.S. currency, totaling $369,346. ROSARIO subsequently stated that the money was related to drug trafficking activity.
ARSENIO ROSARIO has been detained since September 5, 2012. On December 19, 2012, he pleaded guilty to one count of illegal reentry after being removed from the United States subsequent to a conviction for commission of an aggravated felony.
This case was investigated by Homeland Security Investigations and the Connecticut State Police. The case was prosecuted by Special Assistant United States Attorney Anjna R. Kapoor and Assistant United States Attorney Paul H. McConnell.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Canistota Woman Charged with Making and Subscribing False Tax ReturnsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Canistota, South Dakota, woman has been indicted by a federal grand jury for making and subscribing false tax returns.
Veronica Fairchild, age 41, was indicted by a federal grand jury on July 9, 2013. She appeared before U.S. Magistrate Judge John E. Simko on July 16, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 3 years in custody, a $250,000 fine, or both; 1 year of supervised release and an additional year upon revocation; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Fairchild is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Fairchild was released pending trial. A trial date has not been set.California Businessman Pleads Guilty to Concealing Foreign Bank Account at Israeli Bank on His Tax ReturnRead the Press Release
CALIFORNIA BUSINESSMAN PLEADS GUILTY TO CONCEALING FOREIGN BANK ACCOUNT AT ISRAELI BANK ON HIS TAX RETURN
Saratoga Resident is the Latest in a Series of Defendants Charged With Concealing Bank Accounts at Israeli Banks
Assistant Attorney General for the Tax Division Kathryn Keneally and U.S. Attorney Melinda Haag for the Northern District of California announced that Moshe Handelsman of Saratoga, Calif., pleaded guilty today to filing a false tax return for tax year 2007.
According to the plea agreement, between approximately 1993 and 2000, Handelsman, a U.S. citizen, used three bank accounts held in the names of two different foreign corporations at foreign banks to falsely reduce his taxes. The last of those accounts was held at an Israeli bank located in Tel-Aviv, Israel. The foreign bank accounts and foreign corporations were set up with the assistance of his tax return preparers.
According to court documents, in approximately 2000, Handelsman traveled to Israel and met with a banker at the Israeli bank who referred him to an Israeli attorney to set up a foreign corporation. The foreign corporation was called Exportus Ltd. and was the named account holder of the account at the Israeli bank. From 2003 through 2008, Handelsman sent $1,808,075 from a domestic corporation he controlled called Advanced Forecasting Corp. to the Exportus Ltd. bank account. With the assistance of his tax return preparers, the funds transferred offshore were then deducted as false “Information Acquisition” expenses on the Advanced Forecasting Corp.’s tax returns. The false business expenses on the corporate tax returns resulted in an under-reporting of Handelsman’s income on his individual income tax returns for 2003 through 2008. Handelsman also failed to disclose the existence of his foreign bank account on his individual income tax returns. According to the plea agreement, in 2009, Handelsman closed his account at the Israeli bank and repatriated the money by transferring the funds into a second Israeli bank account and then to a U.S.-based Charles Schwab account in the name of a relative. The funds were then transferred from the Charles Schwab account to Handelsman to make it appear that the funds were a non-taxable gift from the relative.
U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. Additionally, U.S. citizens and residents must file a Report of Foreign Bank and Financial Reports (FBAR) with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.
Handelsman faces a potential maximum prison term of three years and a maximum fine of $250,000. In addition, Handelsman has agreed to pay a civil penalty to the Internal Revenue Service (IRS) in the amount of 50 percent of the high balance of his undeclared accounts for failing to file FBARs. His sentencing is scheduled for Nov. 6, 2013.
Assistant Attorney General Keneally and U.S. Attorney Melinda Haag thanked special agents of IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Ellen M. Quattrucci and Christopher S. Strauss, who prosecuted the case, and Assistant U.S. Attorneys Thomas Moore and Thomas Newman of the U.S. Attorney’s Office for the Northern District of California, who assisted with the prosecution.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Buffalo Woman Pleads Guilty to Money Laundering ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Danielle Barton, 31, of Buffalo, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio to money laundering conspiracy. The charge carries a maximum penalty of 20 years in prison, a $500,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that between June 2008 through July 2010, Barton conspired with others to deposit the proceeds from the drug trafficking activities of Will Johnson and others into her bank account. The defendant deposited the cash to conceal and disguise the source and ownership of those funds.
Barton was arrested along with 22 others. A total of 18 defendants have been convicted. Will Johnson pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, kilograms of cocaine, and money laundering conspiracy. He will be sentenced on July 29, 2013.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch, and the Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Votour.
Brooklyn Center Man Indicted for Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 28-year-old Brooklyn Center man was indicted for conspiring to and distributing methamphetamine. Ricardo Lamar Rodrigues was charged with one count of conspiracy to distribute methamphetamine, one count of attempted possession with intent to distribute methamphetamine, one count of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine, one count of using, carrying and possessing firearms during and in relation to a drug-trafficking crime, and one count of being a felon in possession of firearms.
The indictment alleges that from the summer of 2011 through June 17, 2013, Rodrigues conspired with others to distribute 50 or more grams of methamphetamine, and that on February 27, 2013, Rodrigues attempted to possess with intent to distribute 50 or more grams of methamphetamine. It also alleges that on June 17, 2013, Rodrigues distributed five or more grams of methamphetamine, and possessed with intent to distribute 50 or more grams of methamphetamine while possessing a nine-millimeter, semi-automatic pistol and a Glock .45-caliber pistol. Because he is a felon, Rodrigues is prohibited under federal law from possessing a firearm at any time. Rodrigues was previously convicted in Arizona for possession of drug paraphernalia (2012).According to a law enforcement affidavit filed in the case, authorities began investigating Rodrigues in May 2013. While under surveillance on June 17, officers observed Rodrigues making a suspected drug transaction. He was stopped shortly afterward, and officers seized several Hydrocodone pills and a plastic baggie with suspected drug residue. Earlier, authorities conducted an arranged controlled purchase of methamphetamine at Rodrigues’s residence.
During the execution of a search warrant of Rodrigues’s residence, officers found a large digital scale, a loaded nine-millimeter pistol, and approximately 562.5 grams of methamphetamine inside a safe. The Glock handgun was found in Rodrigues’s bedroom, and a .22-caliber revolver was found hidden inside a cinder block on the back deck. An additional 66.5 grams of methamphetamine was found inside the passenger door of a Ford F-150.
If convicted, Rodrigues faces a potential maximum penalty of life in prison on the conspiracy, the possession and attempted possession counts; 40 years on the distribution count; ten years on the felon in possession count; and a consecutive five-year sentence on the possessing firearms in relation to drug-trafficking count. Any sentence will be determined by a federal district court judge.
This case is the result of an investigation by the United States Drug Enforcement Administration and the Bloomington Police Department, with cooperation from the Brooklyn Center Police Department and the Anoka-Hennepin Drug Task Force. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Brookings Man Pleads Guilty to Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that Chris Paclik, age 21, of Brookings, South Dakota, appeared before U.S. Magistrate Judge John E. Simko on July 15, 2013, and pled guilty to Count IV of the Information that charged him with Unlawful Taking of Migratory Birds and Lacey Act Violations.
The maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine, or both; 1 year of supervised release, an additional year of supervised release upon revocation; and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident wherein Paclik, along with a group of friends known as “Team Those Guys” hunted between November 24, 2012, and November 29, 2012, in Miner County, South Dakota. Paclik illegally killed 54 geese using an electronic device. Paclik admitted he knew it was illegal to use said device while goose hunting during this time of the year. After killing the geese, Paclik transported 11 of them from the field to his home in Brookings, in violation of federal law.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Paclik was released on bond pending sentencing which has been set for August 19, 2013.Bay Shore Doctor Sentenced to 65 Months in Prison for Pension- Fund Looting, Health Care Fraud, and Tax EvasionRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Frank Lobacz, a Bayshore, New York, doctor convicted of health care fraud, tax evasion, and the looting of an employee pension fund, was sentenced to 65 months in prison by United States District Judge Dennis R. Hurley. Judge Hurley also imposed fines, restitution, and penalties on Lobacz of over $3.5 million.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and Toni Weirauch, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”).
On November 13, 2010, after a month-long trial, a jury convicted Lobacz on all six counts of an indictment charging health care fraud, the filing of false pension fund reports with the U.S. Department of Labor, and tax evasion during the years 2001 to 2003. In addition to his prison sentence, the district court today ordered Lobacz to pay $727,480.63 in restitution to two private insurance plans, as well as $2,886,454.60 in federal income tax.
Lobacz was a licensed New York Doctor of Osteopathic Medicine, or D.O., who maintained offices in Nassau and Suffolk counties. In the 1970’s, he created a retirement pension plan for himself and his staff, and named himself as the plan administrator in filings with the United States Department of Labor. As the administrator, Lobacz was responsible for filing annual reports on the financial health of the plan and was required to notify the IRS if he or any one else borrowed or withdrew money from the plan.
At trial, witnesses testified that in addition to running his medical practice, Lobacz engaged in highly complex and risky stock options trading. Between 2000 and 2002, he transferred over $3.5 million in money and stocks to and from the pension plan and his personal brokerage account to pay for personal expenses, including vacation home improvements, artwork, credit card debt, a home equity loan, and college tuition for a daughter. The defendant never reported this misuse of employee pension funds, and between 2000 and 2003, he failed to report over $1 million in options trading income to the IRS.
Evidence at trial also showed that starting in 2005, to compensate for trading losses, the defendant filed some 1,500 false insurance claims for medical services and procedures purportedly rendered to a retired couple, who were close friends of the defendant, as well as to Lobacz’s younger children, his wife, and himself. The couple testified at trial that although they received routine acupuncture treatments from the defendant, which would not have been covered under their insurance plans, the bulk of the bills submitted in their names were for services that they either did not receive, or for visits on dates when the couple was traveling outside of New York State. Other fraudulent bills claimed that the defendant, his wife, and two children received near daily treatments normally provided to those suffering severe respiratory conditions, among other ailments. However, public school records, as well as patient files from Lobacz’s offices, showed that no such treatments or visits actually occurred. In all, the defendant billed $727,480.62 in false health care claims to GHI and United Healthcare Insurance Company of New York.
Following imposition of the sentence, United States Attorney Lynch stated, “The defendant Lobacz had a medical practice and investment portfolio which generated significant income, but that was not enough for him. Abandoning his fiduciary obligations to his staff, he looted their pension plan to cover his own personal expenses. Continuing his pattern of using other people, the defendant used friends’ and family members’ personal information to defraud private insurance companies. Further, Lobacz also failed to pay taxes on very substantial income. He will now be held to account for these crimes.”
Ms. Lynch expressed her grateful appreciation to the IRS for its investigation and participation in this case.
The government’s case is being prosecuted by Assistant United States Attorney Michael P. Canty and James M. Miskiewicz.
The Defendant:
FRANK LOBACZ
Age: 68Baltimore Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Terence Orlando Delly, age 36, of Reisterstown, Maryland, late yesterday to 10 years in prison followed by five years of supervised release for conspiracy to possess with intent to distribute more than five kilograms of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to court documents and information presented at Delly=s sentencing hearing, on September 15, 2011, members of the Texas Highway Patrol stopped a silver Lexus, which was registered in Maryland and had been rented in Baltimore, for a traffic violation. A K-9 scan of the vehicle resulted in an alert for the presence of narcotics and 9.5 kilograms of cocaine was subsequently recovered during a search of the vehicle.
Further investigation determined that the operator of the vehicle had driven from Baltimore, to Houston, Texas, in order to be supplied cocaine from Andre Wiley, which law enforcement learned was scheduled to be delivered to Delly in Baltimore County, Maryland. The driver of the Lexus, had made multiple trips from Baltimore to Houston prior to September 15, 2011, in order to be supplied cocaine by Wiley for ultimate delivery to Delly.
The quantity of cocaine reasonably foreseeable to Delly is between 15 kilograms and 50 kilograms of cocaine.
Andre Wiley, of Houston, Texas, pleaded guilty to the same charge and was sentenced to10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Texas Highway Patrol for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Christopher Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Baltimore Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Terence Orlando Delly, age 36, of Reisterstown, Maryland, late yesterday to 10 years in prison followed by five years of supervised release for conspiracy to possess with intent to distribute more than five kilograms of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to court documents and information presented at Delly=s sentencing hearing, on September 15, 2011, members of the Texas Highway Patrol stopped a silver Lexus, which was registered in Maryland and had been rented in Baltimore, for a traffic violation. A K-9 scan of the vehicle resulted in an alert for the presence of narcotics and 9.5 kilograms of cocaine was subsequently recovered during a search of the vehicle.
Further investigation determined that the operator of the vehicle had driven from Baltimore, to Houston, Texas, in order to be supplied cocaine from Andre Wiley, which law enforcement learned was scheduled to be delivered to Delly in Baltimore County, Maryland. The driver of the Lexus, had made multiple trips from Baltimore to Houston prior to September 15, 2011, in order to be supplied cocaine by Wiley for ultimate delivery to Delly.
The quantity of cocaine reasonably foreseeable to Delly is between 15 kilograms and 50 kilograms of cocaine.
Andre Wiley, of Houston, Texas, pleaded guilty to the same charge and was sentenced to10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Texas Highway Patrol for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Christopher Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Baker County Man Indicted on Federal Charge of Failure to Register as Sex OffenderRead the Press Release
Jacksonville, Florida - Acting United States Attorney A. Lee Bentley, III announced today the return of an indictment charging Ray Charles Gasaway (47, Glen St. Mary) with failing to register as sex offender in the state of Florida, after traveling from the state of Tennessee. Gasaway faces up to 10 years in federal prison and a $250,000 fine. An arraignment and detention hearing are scheduled for July 17, 2013, at 11:15 a.m. before United States Magistrate Judge Thomas E. Morris in Jacksonville.
According to the indictment, on March 12, 1996, Gasaway was convicted of committing sexual battery and rape in Davidson County, Tennessee. Subsequent to his conviction, between June 14, 2012, and May 1, 2013, Gasaway traveled from Tennessee to Florida, where he has since resided. Gasaway allegedly failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist the states in locating and apprehending non-compliant sex offenders. This case was investigated by the Baker County Sheriff’s Office, the United States Marshals Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
Angela Corson Smith Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 17, 2013, before U.S. District Judge Sam E. Haddon, ANGELA CORSON SMITH, a 32-year-old resident of Billings, pled guilty to bank fraud. Sentencing has been set for October 28, 2013. She is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On October 23, 2009, SMITH submitted an application for a home equity loan to Altana Federal Credit Union. Altana Federal Credit Union is federally insured and was at the time of the conduct. In support of the home equity loan SMITH presented a power of attorney purporting to give her authority to sign for her husband, B.S. The power of attorney contained a forged signature of B.S. as well as his father who was listed as a witness to the document. The document was notarized by Angela Corson, SMITH's maiden name. The bank would not have authorized the home equity loan with B.S.'s consent so the forged power of attorney was material to the decision of the bank. In addition to forging the power of attorney, SMITH also forged all of the loan documents for the bank, some of which were not signed until May of 2010.
SMITH faces possible penalties of 30 years in prison, a $1,000,000 fine, and 5 years supervised release.
The investigation was conducted by the U.S. Secret Service.
16 People Charged in Drug Conspiracy, Accused of Distributing Heroin and Other Drugs in AreaAnother Person, A Police Officer, Has Been Indicted in A Related Case,Accused of Tampering with InvestigationRead the Press Release
WASHINGTON –Seventeen people, including a Prince George’s County, Md., police officer, have been indicted on federal charges in connection with an ongoing investigation by the FBI/Metropolitan Police Department Safe Streets Task Force into a network that distributed heroin, cocaine, marijuana, and prescription pills in the Washington, D.C. area.
The charges were announced today by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The defendants, most of whom were arrested this week, are named in a pair of indictments returned on July 11, 2013, in the U.S. District Court for the District of Columbia. The indictments were unsealed today.
One indictment charges 16 defendants – 14 men and two women - with conspiracy to distribute and possess with intent to distribute heroin, cocaine, PCP, marijuana, and methamphetamines. The indictment against these defendants also includes a forfeiture allegation seeking all proceeds derived from the crimes, as well as assets used to commit the offenses.
The police officer, Vanessa Edwards-Hamm, 38, is named in the second indictment. She was charged with one count of tampering with documents or proceedings and one count of unlawful notice of electronic surveillance. According to the indictment, she alerted another person or persons of electronic surveillance in an effort to obstruct, impede and prevent the investigation. Hamm was arrested Monday and appeared in court later that afternoon. She was released on personal recognizance pending further court proceedings.
The drug conspiracy charge carries a statutory minimum of five years in prison and a maximum of 40 years of incarceration. Edwards-Hamm faces a statutory maximum of 20 years in prison on the charge of tampering with documents and proceedings and up to five years on the charge of providing unlawful notice of electronic surveillance.
The drug conspiracy indictment alleges that the 16 defendants conspired to carry out the drug operation from December 2011 through July of this year, when it was broken up by law enforcement. According to the government’s evidence, the drugs were distributed in the Potomac Gardens and Hopkins housing complexes in Southeast Washington, as well as in Prince George’s County, Md., and locations in northern Virginia.
“In this case, a police officer sworn to uphold the law is accused of undermining law enforcement by revealing covert electronic surveillance,” said U.S. Attorney Machen. “That officer has been charged along with a far-reaching criminal network that distributed heroin, cocaine, and PCP through the D.C. area. This prosecution demonstrates our commitment to holding accountable drug dealers and the people who enable their illicit activities."
“With this week’s arrests, drug dealers who enjoyed a rich network to ply their trade within Washington, D.C., and Northern Virginia have been removed from our neighborhoods and taken into custody,” said Assistant Director in Charge Parlave. “Along with our law enforcement partners and through the Safe Streets Task Force, the FBI is focused on stopping the movement and sale of drugs on our streets and bringing those who profit from it to justice.”“This community has been plagued with drugs and violence for quite some time,” said Police Chief Lanier. “The Metropolitan Police Department and our federal law enforcement partners have made significant strides to make our communities safer. This case is an example of our dedication to remove illicit drugs and criminals from our neighborhoods.”
The Prince George’s County, Md. Police Department assisted in Monday’s arrest of Edwards-Hamm. “If these allegations are proven true, they are solely the actions of one person,” said Prince George’s County Police Chief Mark A. Magaw. “They do not represent the good works of the men and women of the Prince George’s County Police Department as a whole.”
All told, eleven defendants were arrested in a series of arrests that began on Monday, including seven who were taken into custody today. They include Edwards-Hamm; her brother, Mark Edwards, 39, of Capitol Heights, Md.; Brian Bauer, 38, of Culpeper, Va.; Joshua Brown, 37, of Culpeper, Va.; Jerome Cobble, 31, of Alexandria, Va., and his father, Roger Cobble, 55, of District Heights, Md.; Sean Douglas, 46, of Washington, D.C.; Alonzo Fields, 51, of Washington, D.C. ; Calvin Stoddard, 35, of Washington, D.C., Melvin Sugg, 68, of Landover, Md. , and Sidney Woodruff, Sr., 58, of Washington, D.C.
Three defendants already were in custody: Donald Jenkins, 32, of Culpeper, Va., Jonathan Marshall, 38, of Brandy Station, Va., and Sandra Settle, 31, of Rixeyville, Va. Two men and a woman are being sought.
Many of the defendants made their first court appearances in the case this afternoon.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The initiative involves more than 150 Safe Streets Task Forces across the country that combat street gangs by combining federal, state and local police resources. The task forces, which began in 1992 in Los Angeles and the District of Columbia, address gang activity, including drug-related crimes.In announcing the charges, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier expressed appreciation for those who pursued the investigation from the FBI/MPD Safe Streets Task Force. They also expressed appreciation for the assistance provided by the Prince George's County, Md., and Culpeper, Va. police departments as well as the U.S. Marshals Service and the Charlottesville Resident Agency of the FBI’s Richmond Field Office.
In addition, they acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialists Teesha Tobias and Starla Stolk; Program Specialist Kim Hall, and Legal Assistants Diane Brashears and Jessica Moffatt. Finally, they thanked Assistant U.S. Attorneys Kenneth F. Whitted and David B. Kent of the Violent Crime and Narcotics Trafficking Section and Assistant U.S. Attorneys Arvind K. Lal, Catherine K. Connelly and Zia Faruqui, of the Asset Forfeiture and Money Laundering Section.
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Wood Co. Man Indicted by A Federal Grand Jury for Child Pornography OffenseRead the Press Release
Matthew Wiggins allegedly viewed images of child pornography during public library visit
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a Wood County man was indicted by a federal grand jury sitting in Charleston for a child pornography offense. Matthew John Wiggins, 40, of Parkersburg, W.Va., was charged with access with intent to view child pornography. The single-count indictment alleges that on January 17, 2013, Wiggins viewed images of child pornography from a computer that was located inside of the Parkersburg & Wood County Public Library.
Wiggins faces a mandatory minimum of 10 years and up to 20 years in prison because of his previous conviction in the United States District Court for the Southern District of West Virginia for possession of child pornography.
The West Virginia Internet Crimes Against Children Task Force and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
The indictment was brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.Click here to view a copy of the indictment
Wanblee Man Indicted on 15 Counts of Sexual Abuse and IntimidationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for allegedly sexually abusing and intimidating members of his family between 2006 and 2010.
Charles Chipps, age 65, was indicted by a federal grand jury on June 18, 2013, for seven counts of Aggravated Sexual Abuse of a Minor, three counts of Abusive Sexual Contact of a Minor, three counts of Aggravated Incest, and two counts of Witness Intimidation.
Chipps appeared before U.S. Magistrate Judge Veronica L. Duffy on July 10, 2013, and pled not guilty to the indictment. Chipps faces a mandatory minimum of 30 years’ imprisonment up to a maximum of life imprisonment upon conviction and a $250,000 fine.
The charges are merely accusations and Chipps is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Chipps was remanded to the custody of the U.S. Marshal. A trial date has been set for September 17, 2013.
If you have any additional information on this case, please call the Federal Bureau of Investigation at (605) 343-9632.Victims of Bayou Hedge Funds Receive Another$31 Million in Forfeited Assets, Including Millions Repatriated from Singapore and the United KingdomRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that today the Clerk of the Court distributed $31,788,917.44 in proceeds from forfeited assets to victims of the fraud committed at the Bayou hedge funds. The forfeited assets include approximately $2 million seized from a bank account in Singapore and $1 million seized from a bank account in the United Kingdom. This brings the total value of the forfeited assets distributed to Bayou fraud victims to over $128 million.
U.S. Attorney Bharara stated: “We are dedicated to using forfeiture to compensate victims for their losses whenever possible. This return of money to Bayou fraud victims underscores the power and flexibility of forfeiture as a tool to help victims of major financial crimes. It also demonstrates our commitment to working with foreign governments to pursue and seize criminal proceeds that are transferred into offshore accounts.”
According to documents filed in these cases:
SAMUEL ISRAEL III, DANIEL E. MARINO and JAMES G. MARQUEZ were each convicted of defrauding investors by inducing them to invest in the various Bayou hedge funds and creating fake financial statements. These statements falsely represented that the Bayou hedge funds were profitable, when in fact they were sustaining substantial losses. As a result, the total loss to investors was approximately $300 million. As part of the sentences imposed in 2008 by United States District Judge Colleen McMahon, ISRAEL and MARINO were each directed to pay restitution of $300 million to victims of the Bayou fraud. MARQUEZ was directed to pay restitution of $6,259,650. In addition, ISRAEL and MARINO each were sentenced to 20 years in prison. MARQUEZ was sentenced 51 months in prison.
Following entry of these restitution orders, the U.S. Attorney’s Office in the Southern District of New York, with the assistance of the United States Marshals Service and a court-appointed receiver, pursued and forfeited assets that were traceable to the Bayou fraud. In 2008, the United States restored to victims over $115 million in proceeds of the Bayou fraud, consisting primarily of funds seized from bank accounts in the United States and interest on the seized funds.
The Clerk of the Court distributed these seized funds in accordance with distribution orders that created a reserve fund consisting of 25.18% of the restored funds. Judge McMahon created the reserve fund to permit the payment of restitution to investors in the Bayou hedge funds who redeemed all or part of their investment and may be ordered to return a portion of their investment in connection with the ongoing Bayou bankruptcy action, In re Bayou Group LLC, et al., 06-22306 (ASH). Since the creation of the reserve fund, dozens of redeeming investors have been included in amended restitution orders and have received distributions of reserve funds. Following resolution of claims brought against redeeming investors in the Bayou bankruptcy action, the Government successfully moved for the distribution of these reserve funds to existing fraud victims. Today’s distribution to victims includes the entire reserve fund, consisting of $20,985,100.21.
The remaining funds distributed to Bayou fraud victims are derived from dozens of assets that were liquidated following the sentencing of ISRAEL, MARINO, and MARQUEZ. These assets include a variety of securities for which Judge McMahon entered a final order of forfeiture in April 2013. The assets also include $1 million in funds repatriated from a bank account in the United Kingdom and $1,999,994.19 in funds repatriated from a bank account in Singapore, both of which were forfeited to the United States following a contested ancillary forfeiture proceeding.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation and the U.S. Marshals Service in this case. He also thanked the U.S. Department of Justice’s Office of International Affairs, the United Kingdom’s Foreign and Commonwealth Office, the City of London Police Economic Crimes Directorate, the Attorney General’s Chambers of the Singapore Government, and the Financial Investigation Division of the Singapore Government’s Commercial Affairs Department for their significant assistance in the forfeiture proceedings.
This case is being handled by the Office’s Asset Forfeiture Unit and the White Plains Division. Assistant U.S. Attorneys Jeffrey Alberts, Perry Carbone, and Sharon Cohen Levin are in charge of the prosecution.
Utah Woman Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
Appearances for July 16, 2013
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on May 23, 2013, Tahlene Shaw Serawop, a 25-year-old Ute Tribal Member, was charged in an indictment with one count of assault resulting in serious bodily injury in violation of 18 U.S.C. §§ 113(a)(6) and 1153. The charge against Ms. Serawop stemmed from an incident that occurred on December 20, 2012 on the Wind River Indian Reservation. The case was investigated by the Federal Bureau of Investigation with assistance from the Bureau of Indian Affairs. An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
Northern Arapaho Man Charged with Assault with a Dangerous Weapon with Intent to do Bodily Harm and Second Degree Murder
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on July 10, 2013, Dean Moss, a 25-year-old enrolled Northern Arapaho man from Arapahoe, Wyoming, appeared in Federal Court for an initial appearance before Magistrate Judge Teresa M. McKee on charges of assault with a dangerous weapon with intent to do bodily harm in violation of 18 U.S.C. §§ 113(a)(3) and 1153 and second degree murder in violation of 18 U.S.C. §§ 1111(a) and 1153. A combined preliminary hearing and detention hearing was held on July 15, 2013, at which time Magistrate McKee found probable cause for the charges and detained Moss pending further proceedings. The charges stem from a stabbing which occurred on June 9, 2013, in the Great Plains Housing Area on the Wind River Indian Reservation. The case is being investigated by the Federal Bureau of Investigation with substantial assistance from the Bureau of Indian Affairs. A complaint is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
Two Men Associated with the Ms-13 Gang Indicted for the Robbery of A Brothel That Included A Rape and MurderRead the Press Release
Greenbelt, Maryland - A federal grand jury has returned a third superseding indictment charging Ramon Miguel Cerros-Cruz, age 23, of Silver Spring, Maryland, and Alexsi Lopez, age 25, of Hyattsville, Maryland, with conspiracy and the violent robbery of a Hyattsville brothel that allegedly resulted in a rape and murder. Ramon Cerros-Cruz was previously charged with these crimes. The third superseding indictment returned late yesterday added Alexsi Lopez as a defendant in the case.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the indictment, Cerros-Cruz and Lopez knew each other through their association with the MS-13 gang. The two count indictment alleges that Cerros-Cruz and Lopez, familiarized themselves with the location and operation of brothels in the Hyattsville-Langley Park area of Prince George’s County. Cerros-Cruz and Lopez allegedly planned the robbery of a Hyattsville brothel apartment, armed with knives, and using force and violence. The indictment charges that on February 28, 2007, Cerros-Cruz and Lopez entered the brothel apartment, demanding money from persons within the brothel and searching the apartment for money and items of value. The indictment charges that during the robbery Cerros-Cruz and Lopez bound one of the employees, raped another employee and murdered a third person who arrived at the brothel during the commission of the rape and robbery and resisted the demands of the defendants.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for the robbery.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who are prosecuting the case.
Three Indicted, One Charged in Information for Labor TraffickingRead the Press Release
A five-count indictment was filed charging three people from Ashland, Ohio, with engaging in a labor trafficking conspiracy and other crimes related to them holding woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor for them, law enforcement officials said today.
Jordie L. Callahan, 26, Jessica L. Hunt, 31, and Dezerah L. Silsby, 21, used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E., according to the indictment.
Their tactics included beating S.E., threats of beatings to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to the indictment.
Callahan pointed a firearm at S.E.’s head and threatened to kill her if she did not perform the labor and services he and other conspirators commanded. Callahan also forced S.E. on multiple occasions to engage in sex acts with him and threatened that he and Hunt would kill S.E. if she told anyone about the forced sexual acts, according to the indictment.
A fourth person, Daniel J. Brown, 33, of Ashland, was charged with one count of conspiracy in a criminal information filed today.
“These charges paint a picture of the unspeakable cruelty these defendants inflicted upon this mother and her child,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “It provides another stark reminder that human trafficking takes place all around us, and that we need to be better neighbors to one another.”
“These defendants are being held accountable for their unfathomable treatment of another human being,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI will continue to aggressively pursue and bring to justice those individuals that force others into unlawful labor or sex practices.”
Callahan, Hunt and Silsby face one count each of the following: conspiracy to violate laws; forced labor; theft of government benefits and acquiring a controlled substance by deception. Callahan and Hunt face an additional charge of tampering with a witness.
The conspiracy between Callahan, Hunt, Silsby and Brown took place between August 2010 and October 2012.The object of the conspiracy included holding S.E. in a condition of forced labor and involuntary servitude; obtaining S.E.’s and B.E.’s public assistance benefits and intentionally causing painful injuries to S.E. so they could use the narcotic pain medications she was prescribed to satisfy their personal drug craving, according to the indictment.
Callahan and Hunt recruited S.E. and B.E. to live with them in their two-bedroom apartment in Ashland, knowing that S.E. has a cognitive disability and that S.E. and B.E. received monthly public assistance payments, according to the indictment.
In or around September 2010, Callahan and Hunt forced S.E. to have her and B.E.’s public assistance benefits issued on a debit card rather than paper check. They then took control of the card, forced S.E. to give them the PIN and used the card for their own benefit and the benefit of their family and friends, according to the indictment.
In August 2011, Silsby, at the direction of Callahan and Hunt, smashed S.E.’s hand with a rock with such force that S.E. needed to go to the hospital emergency room. Callahan, Hunt and Silsby then forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated at the emergency room, according to the indictment.
In December 2011, Callahan and Hunt injured S.E.’s back with such force that she needed medical treatment. Again, Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated, according to the indictment.
In March 2012, Callahan kicked S.E. in the hip with such force that she needed medical treatment. Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated, according to the indictment.
On multiple occasions between August 2010 and October 2012, Callahan and Hunt threatened S.E. and B.E. with serious physical harm, including death, if S.E. did not clean up the apartment, care for their numerous pit bull dogs, snakes and other reptiles, purchase items at the store and perform other labor and services ordered by the conspirators, according to the indictment.
Callahan and Hunt used a video camera to monitor S.E. and B.E.’s activities and conversations in the apartment. They often forced S.E. to walk to the store to buy groceries, cigarettes, dog food and other items for Callahan, Hunt and Hunt’s four sons and to pay for these purchases with her public assistance card. They allotted S.E. only a brief time period to complete the shopping and warned her she was not allowed to speak with anyone while she was out. They frequently required B.E. to remain with them at the apartment while S.E. was out and threatened physical harm to B.E. and S.E. if S.E. broke any of their rules, according to the indictment.
Callahan and Hunt also threatened to contact Ashland County Job and Family Services and have B.E. taken away if S.E. purchased any items at the store other than those they ordered or if she told anyone about their unlawful conduct, according to the indictment.
In June 2011, after S.E. and B.E. had attempted to flee the apartment, Callahan and Hunt ordered Brown and Silsby to find S.E. and B.E. and bring them back to the apartment. Brown and Silsby lured S.E. and B.E. into their vehicle by promising to take them to Dairy Queen, only to deposit them afterwards back at the apartment, according to the indictment.
On multiple occasions, Callahan and Brown locked S.E. and B.E. in a room with a window that was nailed shut and a door that had been locked from the outside, according to the indictment.
In October 2011, Callahan and Hunt forced S.E. to hit her child while they recorded a video, and threatened to inflict much greater physical harm on both S.E. and B.E. if S.E. did not comply, according to the indictment.
One month later, Callahan and Hunt again forced S.E. to strike B.E. while they captured a video recording of the staged incident on Callahan’s cell phone. Callahan and Hunt repeatedly threatened have B.E. taken away by showing the videos to authorities in order to secure S.E.’s compliance to the conspirators’ commands.
The case is being prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz, with assistance from Trial Attorney Victor Boutros of the Justice Department’s Human Trafficking Prosecution Unit, following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each defendant’s prior criminal record (if any), his or her role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tennessee Couple Indicted for Warzone Contracting SchemeRead the Press Release
Alleged to Have Steered $6.9 Million in Proceeds from Defense Subcontracts in Afghanistan
ALEXANDRIA, Va. – Keith Johnson, 46, and Angela Johnson, 44, both of Maryville, Tn., were indicted by a federal grand jury today on charges of conspiracy to commit wire fraud and substantive wire fraud for their alleged role in a scheme to steer $6.9 million from Department of Defense (DoD) subcontracts in Afghanistan to shell entities through kickbacks and the use of assumed names.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office; John Sopko, Inspector General for Special Inspector General for Afghanistan Reconstruction (SIGAR); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), made the announcement following the grand jury’s return of the indictment.
Keith and Angela Johnson face a maximum penalty of 20 years in prison for conspiracy and up to 20 years in prison on each count of wire fraud if convicted.
According to the indictment, between July 2007 and June 2010, Keith and Angela Johnson engaged in a scheme to defraud Company #1, a DoD contractor, relating to two contracts worth more than $269 million. The contracts at issue were to provide vehicle-fleet maintenance for the Afghan National Army (ANA). Keith Johnson worked for Company #1 in Kabul, Afghanistan, as its Project Manager and Procurement Manager for the ANA contracts. Johnson fielded requests for vehicle parts from Company #2, a Company #1 subcontractor. Company #1 would then issue purchase orders for those parts to subcontractors after receiving multiple bids. In September 2007, Keith and Angela Johnson formed Company #4 as a Tennessee corporation, but they listed Angela Johnson’s mother and daughter on its corporate documents. Thereafter, Keith Johnson used his position in Company #1 to steer parts-supply purchase orders and other business on the ANA contracts to Company #4. To conceal Keith Johnson’s relationship to Company #4, Angela Johnson used her maiden name when interacting with Company #1 on Company #4’s behalf.
According to the indictment, the Johnsons also agreed with two other individuals at Company #2 to further the scheme. The two Company #2 employees helped steer Company #1 business to the Johnsons through Company #4, and Keith Johnson helped steer Company #1 business to Company #3, an entity operated by the two Company #2 employees using a fictional name. The Company #2 employees allegedly paid kickbacks to the Johnsons through a shell company. As part of the scheme, the Johnsons also allegedly participated in a bid-rigging practice of coordinating inflated bids on behalf of Company #3 or Company #4 to ensure that the other company would receive particular contracts. The conspirators also caused Company #1 to order excess parts that were not yet needed on Company #1’s contracts, and Company #4 did not ultimately supply all parts in compliance with Company #1’s requirements.
According to the indictment, the conspirators obtained $6,933,179.31 in proceeds from the scheme, which they used in part to purchase, among other items, several luxury vehicles and more than $191,000 in jewelry.
This case is being investigated by the Defense Criminal Investigative Service, the Federal Bureau of Investigation, the Special Inspector General for Afghanistan Reconstruction, and the U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Ryan Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section, who is also a Special Assistant U.S. Attorney in the Eastern District of Virginia.
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.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Stratford Man Sentenced to Federal Prison for Tax EvasionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that LENWORTH HAYNES, 55, of Stratford, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to six months of imprisonment and six months of home confinement with electronic monitoring.
According to court documents and statements made in court, HAYNES was employed as a cook at a nursing home in Trumbull and, since approximately 1996, operated his own tax preparation business. From 2006 to 2008, HAYNES evaded his personal federal income taxes by failing to declare income he earned from his tax preparation business. During those three years, HAYNES should have reported total taxable income of $255,071.38. Instead, he reported taxable income of negative $3,761, resulting in a loss to the government of $82,704.
HAYNES has been ordered to pay back taxes, plus interest and penalties.
On April 17, 2013, HAYNES pleaded guilty to one count of tax evasion.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and was prosecuted by Assistant United States Attorney Susan L. Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]St. Francis Man Charged and Sentenced for Assault by Striking, Beating, and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Assault by Striking, Beating and Wounding has pled guilty to the charges and was sentenced on July 12, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Andre DeShazier, age 55, was sentenced to 1 year probation and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 4, 2013, when DeShazier punched the victim in the head.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher. DeShazier was released.Southfield Tax Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
Anthony Womack, 57, of Southfield, Michigan, pleaded guilty to one count of willfully aiding in the preparation and filing of fraudulent income tax returns, United States Attorney Barbara L. McQuade announced. Ms. McQuade was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation.
From approximately 2008 through 2010, Womack prepared tax returns in Southfield, Michigan, under the name “Tax Consultants Inc.” Womack prepared and filed federal income tax returns for 2008 through 2010, which he knew were fraudulent, with the Internal Revenue Service in the name of various taxpayers. The returns were filed with inflated charitable contributions, false unreimbursed employee expenses, and false education credits. Womack caused a tax loss of more than $96,000 to the United States by his fraudulent conduct. In addition, Womack did not claim the income from his tax preparation business on his personal income tax returns.
Womack entered the guilty plea in United States District Court before Chief Judge Gerald E. Rosen.
Erick Martinez, Special Agent in Charge stated, “IRS, criminal investigators uncovered Mr. Womack’s illegal activity and he will now pay the price for his actions.”
A sentencing hearing was set by Chief Judge Rosen for October 17, 2013, at 11 am. The maximum penalty for making false, fictitious, or fraudulent claims is imprisonment of not more than three years and a $100,000 fine.
The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Skokie Businessman Sentenced to Federal Prison for Evading $1 Million in Taxes Related to Secret Offshore Swiss Bank AccountRead the Press Release
CHICAGO — The owner of a cemetery monument business in north suburban Skokie was sentenced today to a year and a day in federal prison for evading more than $1 million in federal taxes on more than $3.3 million in income, including interest on millions of dollars he held in a secret offshore financial account with UBS, a global financial services firm headquartered in Switzerland. The defendant, PETER TROOST, pleaded guilty in March to the felony charge that was filed in February in U.S. District Court.
Troost, 78, of Skokie, has already paid $1,039,343 in back taxes to the Internal Revenue Service, as well as a civil penalty of approximately $3.75 million, but U.S. District Judge John J. Tharp, Jr., said those payments alone would not sufficiently deter wealthy individuals from failing to meet their voluntary tax obligations.
Judge Tharp also fined Troost $32,500 and ordered him to serve 200 hours of community service during a year of supervised release after he is incarcerated. He was ordered to begin serving his sentence on Dec. 2.
“Troost did not evade his taxes out of financial need or desperation. He operated a profitable and successful business; he had more than enough money to pay his taxes. He made a deliberate, conscious decision not to do so,” the government argued at sentencing.
Troost owns and operates Troost Memorials, a closely-held company that designs and sells cemetery monuments and gravestones. The business is located in a strip mall Troost owns at 9853 Gross Point Rd., Skokie, and he owns another strip mall located at 1816-44 Arlington Heights Rd., in Arlington Heights. The defendant is not involved with Peter Troost Monument Company, of Hillside, which is a different company from Troost Memorials.
Troost was the first taxpayer charged in Federal Court in Chicago in connection with an ongoing investigation of U.S. taxpayer clients of UBS and other overseas banks that hid foreign accounts from the Internal Revenue Service. In February 2009, UBS entered into a deferred prosecution agreement with the United States, admitting that it helped taxpayers hide accounts from the IRS. As part of the agreement, UBS provided the government with the identities of, and account information for, certain customers of UBS’ U.S. cross-border banking business.
According to Troost’s plea agreement, from at least 1999 until 2009, he transferred hundreds of thousands of dollars from the United States to his individual offshore UBS account for the sole purpose of evading domestic income taxes. He maintained at least one offshore UBS account between 1981 and 2009, while maintaining at least one additional joint account. He managed both accounts with the assistance of a UBS personal banker based on the island of Jersey. In addition to failing to report interest income, Troost admitted that he intentionally failed to report all of his income from his monument business and his rental properties.
Between 1999 and 2009, Troost failed to report income from all sources totaling $3,338,929, on which he owed $1,039,343 in federal taxes. In addition, Troost stated on his returns for each of those years that he did not have an interest in a financial account in a foreign country, when, in fact, he knew he maintained the offshore UBS account.
The sentence was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Defendants convicted of tax offenses face mandatory costs of prosecution and remain civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. Federal tax law requires U.S. taxpayers pay taxes on all income earned worldwide. Taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. A deliberate failure to file a Report of Foreign Bank and Financial Accounts (FBAR) with the U.S. Treasury Department can result in a penalty of up to 50 percent of the amount in the account at the time of the violation.
The government was represented by Assistant U.S. Attorney Brian Havey.
Six from Northeast Ohio Indicted for Conspiracy to Distribute HeroinRead the Press Release
Six men from Northeast Ohio were indicted on one count of conspiracy to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Maceo Moore, aka “Chase,” aka “Paper,” 37, of Euclid; Keith Ricks, aka “K-Mack,” 31; Maurice Golston, aka “Reese,” 32; Leamon Shephard, aka “Juice,” 25; Dionte Thompson, aka “Dionte Ricks,” aka “Pringles,” 24; and Marcus Blue, aka “Blue,” 30, all of Cleveland.
The indictment alleges that between approximately August 2012 and June 2013, the defendants conspired to distribute and possess with intent to distribute one kilogram or more of heroin.
All six defendants were arrested on June 19, 2013, after being charged by a federal complaint with conspiracy to distribute heroin. At that time, all six defendants waived their rights to detention and preliminary hearings and were ordered detained without bond pending further proceedings in the case.
The indictment results from an investigation conducted by the Federal Bureau of Investigation, the Northern Ohio Law Enforcement Task Force (NOLETF), the High Intensity Drug Trafficking Area (HIDTA) Task Force, Cleveland Division of Police and the Internal Revenue Service.
This case is being prosecuted by Assistant United States Attorneys Matthew W. Shepherd, Matthew B. Kall, and Daniel J. Riedl.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt.
A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. The HIDTA Program supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug-trafficking in Ohio.
Sidney L. Hall Sentenced to 48 Months Imprisonment for Bank Fraud and Aggravated Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Sidney L. Hall, age 63, of Atlanta, and formerly of Albany, Georgia, was sentenced today by United States District Court Judge, W. Louis Sands, in Albany, Georgia, to 48 months imprisonment. Hall was also ordered to pay restitution in the amount of $1,979,291 to seven different banks in Southwest Georgia who loaned monies to him under fraudulent pretenses. Hall must serve five years of supervised release after serving his sentence. Hall remains on bond pending surrender to the Bureau of Prisons.
On December 10, 2012, Hall pled guilty to counts 1 and 14 of a 15 count indictment. Count 1 charged the defendant with bank fraud and carried a maximum possible sentence of 30 years imprisonment, a $1,000,000 fine and five years of supervised release after imprisonment. Count 14 charged the defendant with “aggravated identity theft,” that is, using the personal identify data of a person, here, the forged signature of a bank officer, in order to commit bank fraud. Aggravated identity theft carried a mandatory minimum term of imprisonment of two years, a $250,000 fine and one year of supervised release.
Defendant Hall admitted in his plea agreement that he obtained 70 bank loans at 7 different banks in the total amount of $2.8 million. Hall devised a scheme to lead the lending bank to believe it would have a valid first position lien on the aircraft being financed. In fact, the aircraft in question had already been pledged as collateral to another bank. The government estimated in the plea agreement that at the end of the scheme to defraud Hall had failed to repay approximately $2.7 million to the seven banks who had loaned him money under false pretenses.
The investigation was conducted by the Federal Bureau of Investigation and Assistant United States Attorney Jim Crane handled the prosecution.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Seven Defendants in Mortgage Origination Fraud Scheme Indicted for Bank Fraud Conspiracy Along with Other ChargesRead the Press Release
The Justice Department announced that seven defendants were arrested and arraigned today for their roles in a mortgage fraud conspiracy that operated in Detroit.
A federal grand jury in the Eastern District Court of Michigan indicted Peter Allen, Suhail Hallak, Al Karana, Joey Murad, Jason Najor, Jeffrey Najor and Wasseem Shamoun with conspiracy to commit bank fraud, numerous counts of bank fraud and other fraud charges.
The indictment alleges that from approximately January 2006 to December 2008, the defendants conspired to defraud lending institutions by obtaining mortgage loans using fraudulent information. According to the indictment, the defendants devised a scheme wherein they purchased property for approximately $5,000 to $40,000 per home, then recruited straw buyers to submit fraudulent loan applications for home mortgages in exchange for a fee. According to the indictment, the scheme caused financial institutions to pay approximately $10 million in fraudulent mortgage loan funds.
In addition to the conspiracy charge, Hallak, Karana, Jason Najor, Jeffrey Najor, and Shamoun are charged with 20 counts of bank fraud, Murad is charged with seven counts of bank fraud and Allen is charged with two counts of bank fraud. Jeffrey Najor is also charged with two counts of assisting in the filing of false tax returns, in connection with his filings on behalf of J.A. Najor Corporation. Jeffrey Najor is also charged with one count of bankruptcy fraud.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted of the conspiracy charge, the defendants face up to 30 years in prison and a $1 million fine. Each count of bank fraud carries a maximum penalty of 30 years in prison and $1 million fine. Assisting in the filing of a false return is punishable by up to three years in prison and a fine of $250,000. The bankruptcy fraud charge has a maximum penalty of five years in prison and a fine of $250,000.
This case was investigated by Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration and the FBI and is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
Self Proclaimed "First Lady" of Tax Fraud Sentenced to 21 YearsRead the Press Release
Tampa, FL - U.S. District Judge James S. Moody, Jr. today sentenced Rashia Wilson (27, formerly of Wimauma) to 19 ½ years in federal prison on wire fraud and aggravated identity theft charges stemming from her scheme to defraud the IRS, and to a consecutive 18 months in federal prison for being a felon in possession of a firearm. The court also ordered Wilson to forfeit $2,240,096.39, which constitute the proceeds traceable to the offense. Wilson pleaded guilty to being a felon in possession of a firearm(s) on December 6, 2012. She pleaded guilty to the wire fraud and aggravated identity theft counts on April 3, 2013.
"Today's sentencing was a result of criminal actions by Rashia Wilson and sends a strong message to others who file false tax returns with stolen identities, that they will face severe consequences," says James Robnett, Special Agent in Charge for the IRS-Criminal Investigation. "These crimes victimize the most venerable of our fellow citizens; the elderly, our youth and family members of the deceased. IRS-CI and its Tampa Bay Alliance partners, along with the US Attorney's Office, will continue to vigorously investigate these crimes."
“Ms. Wilson’s sentence today is an indication of how the courts look upon identity theft," stated John Joyce, Special Agent in Charge for the U.S. Secret Service - Tampa. "To those who venture down the same road, know that you will be caught, and you will be severely punished. The judge’s message is crystal clear.”
"The Inspection Service is committed to preventing the use of the U.S. Mail in criminal schemes and collaborating with sister law enforcement agencies to successfully prosecute responsible parties," said Assistant Inspector in Charge Barney Morris. "The culmination of the Rashia Wilson investigation reflects what can happen when local, state and federal law enforcement agencies work collaboratively to combat these types of crimes."
“There are some in the community who think they can commit tax fraud and get away with it. Those days are over! This case is just an example of the consequences violators will face when they try to steal from hard working taxpayers,” said Tampa Police Chief Jane Castor.
"The success of this investigation was a result of the various agencies working together. This case represents one of the worst tax fraud cases in the Tampa Bay area and the outcome should send a clear message to others that this type of criminal activity will not be tolerated in our community," said Colonel Donna Lusczynski of the Hillsborough County Sheriff's Office.
According to court documents, from at least April 2009, through their arrests in September 2012, Rashia Wilson and her co-conspirator, Maurice J. Larry, engaged in a scheme to defraud the Internal Revenue Service by negotiating fraudulently obtained tax refunds. They did so by receiving U.S. Treasury checks and pre-paid debit cards that were loaded with proceeds derived from filing false and fraudulent federal income tax returns in other persons' names, without those persons’ permission or knowledge. Wilson and Larry filed these false and fraudulent federal income tax returns from multiple locations, including Wilson's residence and hotels in the Tampa area. Wilson, Larry, and others then used these fraudulently obtained tax refunds to make hundreds of thousands of dollars worth of retail purchases, to purchase money orders, and to withdraw cash.
During the course of the investigation, agents searched Wilson's residence and Larry's storage unit and recovered thousands of names and social security numbers in ledgers and on various other records, including medical billing records. Agents also found high end accessories, jewelry, and a hand gun in Wilson's home. Additional reloadable debit cards loaded with fraudulent tax refunds were also found in both locations.
Law enforcement officials also discovered that Wilson, who referred to herself as the "First Lady" and "Queen of Tax Fraud," spent $30,000 on her daughter's first birthday party and purchased a 2013 Audi valued at approximately $90,000, using the proceeds of the tax fraud scheme. The government seized the Audi and other items during the course of the investigation. The IRS estimates that the actual loss from Wilson and Larry's scheme is at least $3,147,477, and the intended loss is in excess of $11 million.
Maurice Larry is set for sentencing in this matter on August 6, 2013.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the United States Secret Service, the United States Postal Inspection Service, the Tampa Police Department, and the Hillsborough County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Mandy Riedel.
Rising Sun Man Pleads Guilty to Sexually Exploiting A Minor to Produce Child PornographyRead the Press Release
Baltimore, Maryland – Michael Dale Irwin, age 27, of Rising Sun, Maryland, pleaded guilty today to the sexual exploitation of a minor to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police (MSP); and Cecil County State’s Attorney Ellis Rollins.
According to the plea agreement, on March 12, 2013, a witness reported to Maryland State Police that Irwin had sent an image to her cellular phone documenting his sexual abuse of a prepubescent minor female. The witness contacted MSP when she recognized Irwin in the image. Although the messages were set to “auto delete” and were no longer on the witness’ phone, with the consent of the witness MSP began monitoring calls and text messages between Irwin and the witness and directed all communication by the witness with Irwin. After Irwin sent the witness a video depicting a six to eight year old female engaged in sexually explicit conduct, troopers arrested Irwin at his place of employment and seized his phone, which had been used to text and call the witness. MSP recovered the images and video documenting Irwin’s sexual abuse of a prepubescent minor female and obtained the sexually explicit text messages that he had previously sent to the witness describing in graphic detail the sexual acts he performed on the child.
As part of his plea agreement, Irwin must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Irwin faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison, followed by up to lifetime of supervised release, for sexual abuse of a minor to produce child pornography. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 23, 2013 at 3:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police and the Cecil County State’s Attorney’s Officer for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who is prosecuting the case.
Respiratory Therapist Pleads Guilty in Identity Theft Tax Refund Fraud Scheme Involving Theft of Hundreds of Patients’ Personal Identity InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announced that defendant Betty Cole, 34, of Miami, pled guilty yesterday for her participation in a stolen identity tax refund scheme. Sentencing is scheduled for September 23, 2013 at 11:15 a.m. before U.S. District Judge Robin Rosenbaum.
Cole pled guilty to one count of conspiracy to possess fifteen or more unauthorized access devices in violation of Title 18, United States Code, Section 1029(b)(2), and one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A. At sentencing, the defendant faces a maximum term of imprisonment of seven years.
According to the plea documents, from in or around June 2011, continuing through February 2012, Cole worked as a respiratory therapist at South Miami Hospital (“SMH”) in Miami, Florida. The defendant had access to names, dates of birth, and Social Security numbers (together, personal identity information or “PII”) of patients in the course of her job duties. In or around June 2011, Alci Bonannee asked the defendant to provide Bonannee with PII of SMH patients. In or around June 2011, and again in or around February 2012, Cole obtained the PII of SMH patients and provided that information to Bonannee.
Bonanee used the personal identity information to file fraudulent tax returns with the Internal Revenue Service seeking refunds. Cole knew that Bonannee would use the personal identity information to submit fraudulent tax returns. Bonannee paid Cole thousands of dollars for over 800 patients’ personal identity information.
Mr. Ferrer commended the investigative efforts of IRS-CI and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Quincy Man Sentenced for Credit Card SkimmingRead the Press Release
BOSTON – A Quincy man was sentenced today in connection with his use of stolen credit card numbers to purchase more than $64,000 in cigarettes and other items in Massachusetts and New Hampshire.
Yek Doug Wong, 50, of Quincy, was sentenced by U.S. District Judge George A. O’Toole to 70 months in prison, followed by two years of supervised release and payment of $64,713 in restitution. In April 2013, Wong pleaded guilty to using counterfeit access devices (credit cards), possession of device-making equipment, and six counts of aggravated identity theft.
In October 2011, the Braintree, Brockton and Holbrook Police Departments received reports from numerous people who reported fraudulent activity on their credit card accounts even though all of the victims still possessed their actual cards. Law enforcement collected surveillance video from many of the locations where the purchases had been made as well as receipts from suspect transactions. The surveillance videos showed a man, later identified as Wong, making the purchases and driving off in a black Infiniti with a spoiler on the rear. Ultimately, one clerk noted the license plate of the car which led to Wong and to a search of his Quincy residence. The search resulted in the seizure of, among other things, at least 1,176 embossed and blank Visa, MasterCard and American Express cards, three credit card skimming devices, a card reader and encoding device, two credit card embossing machines, various pieces of computer equipment, 42 cartons of cigarettes, 22 bottles of rice wine, and $16,900 in cash. Officers also seized two safe deposit box keys which led to the seizure of an additional $4,250 in cash.
United States Attorney Carmen M. Ortiz; Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service; Braintree Police Chief Russell W. Jenkins; Brockton Police Chief Emanuel Gomes; Holbrook Police Chief William W. Marble, Jr.; and Quincy Police Chief Paul Keenan, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.