Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 17 May 2013
Arizona Man Indicted in Boise Federal Court on Twenty-six Counts of Wire FraudRead the Press Release
Allegedly Embezzled Approximately $449,643 from Click Sales, Inc.
BOISE – Christopher Myers, 37, of Cave Creek, Arizona, was indicted today by a federal grand jury in Boise on 26 counts of wire fraud, U.S. Attorney Wendy J. Olson announced. An initial court appearance is set for May 20 at 10:00 a.m. MDT, before U.S. Magistrate Judge Larry M. Boyle at the federal courthouse in Boise.
According to the indictment, Myers was employed as the comptroller for Click Sales, Inc., from 2006 through November 2011. Click Sales, Inc. operated a Boise-based internet business that facilitated payments between retailers and consumers. It received payments from consumers for the purchase price of goods and services, kept a portion of the purchase price as commission, and remitted the remainder to the retailers by checks and wire transfers. Some of Click Sales’ retailer-clients failed to timely cash these checks. As the comptroller, Myers was responsible for maintaining a spreadsheet listing these “issued but uncashed” checks.
The indictment alleges that beginning in August 2008, Myers began wire transferring funds from the company’s bank account to his personal bank accounts. These funds belonged to Click Sales and corresponded to the funds set aside for “issued but uncashed” checks to retailer-clients. In total, Myers allegedly wired approximately $449,643 of Click Sales’ funds to his personal bank accounts. According to the indictment, he used these funds to make personal expenditures, including mortgage payments, and to subsidize his personal investment and retirement accounts.
Each count of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000 or twice the gain or loss from the offense, and up to three years of supervised release.
The case was investigated by the Boise Police Department and the Federal Bureau of Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Alabama Women Receives Four Years in Prison in A Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Larreka Jackson was sentenced to 48 months in prison for her role in a multi-million dollar conspiracy to use stolen identities to obtain tax refunds, announced George L. Beck, U.S. Attorney for the Middle District of Alabama. Jackson was also ordered to pay restitution in the amount of $721,519.12. In January 2013, Jackson pleaded guilty to one count of conspiracy to file false claims and to one count of aggravated identity theft.
On August 15, 2012, a federal grand jury in Montgomery returned a 25-count indictment charging Larreka Jackson for conspiring to file false tax returns using stolen identities, filing false claims, wire fraud and aggravated identity theft. According to court documents, Jackson and Chiquanta Davis operated a tax preparation business called It’s Tax Time in Montgomery, Ala. Jackson and Davis used It’s Tax Time as a front to file false tax returns using stolen identities. Jackson and Davis unlawfully obtained the names and Social Security numbers of actual persons and filed false tax returns using those names. Jackson directed the fraudulent tax refund to bank accounts controlled by her and her co-conspirators.
Chiquanta Davis was previously sentenced to 66 months in prison for her role in the conspiracy.
The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Woman Receives Four Years in Prison in Stolen Identity Refund Fraud SchemeRead the Press Release
Larreka Jackson was sentenced yesterday to 48 months in prison for her role in a multi-million dollar conspiracy to use stolen identities to obtain tax refunds, the Department of Justice and the Internal Revenue Service (IRS) announced today. Jackson was also ordered to pay restitution in the amount of $721,519.12. In January 2013, Jackson pleaded guilty to one count of conspiracy to file false claims and one count of aggravated identity theft.
On Aug. 15, 2012, a federal grand jury in Montgomery, Ala., returned a 25-count indictment charging Larreka Jackson with conspiring to file false tax returns using stolen identities, filing false claims, wire fraud and aggravated identity theft. According to court documents, Jackson and Chiquanta Davis operated a tax preparation business called It’s Tax Time in Montgomery, Ala. Jackson and Davis used It’s Tax Time as a front to file false tax returns using stolen identities. Jackson and Davis unlawfully obtained the names and Social Security numbers of actual persons and filed false tax returns using those names. Jackson directed the fraudulent tax refund to bank accounts controlled by her and her co-conspirators.
Chiquanta Davis was previously sentenced to 66 months in prison for her role in the conspiracy.
The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Adrian Resident Pleads Guilty to Health Care Fraudand Filing A False Tax ReturnRead the Press Release
The operator of a human resource company pleaded guilty to health care fraud and filing a false tax return, announced U.S. Attorney Barbara McQuade.
Ms. McQuade was joined in the announcement with Special Agent in Charge Erick Martinez of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office and Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office.
Jason Syrek, age 39, of Adrian pleaded guilty before United States District Judge Paul D. Borman on May 15, 2013.
According to court records, between May 2008 and December 2010, Syrek engaged in health care fraud and tax fraud while operating CAS Resources of Adrian, Michigan. CAS Resources provided outsourcing of human resource services, such as payroll, taxes and employee benefits administration, including health care coverage.CAS collected $1.75 million in premiums from client companies in November and December 2010, an amount due to Blue Cross Blue Shield of Michigan (BCBSM), but never paid by Syrek. He admitted diverting these funds for personal use.
According to the plea agreement, in January, 2011, Syrek as the Director of CAS Resources filed a Form 941 for 2010: Employer’s Quarterly Federal Tax return for the third quarter. The Form 941 was filed with the IRS and stated that CAS Resources paid $1,862,902 in payroll taxes. Syrek knew he had diverted these funds for his own personal use and only paid $633,332 in payroll taxes. In addition to the third quarter Form 941 for 2010, Syrek filed approximately 7 other Form 941s with the IRS which he did not pay. In total, from 2010 through 2011, Syrek’s tax due is $13.4 million.
Syrek used the money to buy beachfront properties, several cars, a boat and investment properties. In order to pay his debt, Syrek will forfeit his homes, beach properties in Florida, 2009 32.5’ Sea Ray Boat and cars to include a 2008 Ferrari F430 and 2008 Porsche Boxster.
“Fraud schemes like this one may involve sophisticated methods, but they are nothing more than stealing. This defendant robbed health care programs and taxpayers for his personal benefit,” McQuade said.
“Syrek’s conduct was egregious in that he effectively stole funds that were withheld on behalf of employees,” said Erick Martinez. “His actions cost the government $13.4 million dollars in tax loss alone.”"Those who commit health care fraud and other related crimes will face severe penalties for their illegal acts,” stated FBI Special Agent in Charge Foley. “The FBI is committed to working with the IRS and other agencies to bring these individuals to justice."
Sentencing is scheduled for August 13, 2013. Syrek faces a maximum sentence of 87 months imprisonment under the terms of the plea agreement which was taken under advisement by the court, and a fine of up to $250,000. In addition, Syrek has agreed to pay restitution in the amount of $1,754,922.98 to BCBSM and $13,405,212 to the IRS.
This case is being prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Linda Aouate and investigated by special agents of the IRS Criminal Investigation and the FBI.
Thursday 16 May 2013
Wakpala Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wakpala, South Dakota man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on May 13, 2013 by U.S. District Judge Charles B. Kornmann.
Dustin Swimmer, age 27, was sentenced to 37 months of imprisonment, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Swimmer was indicted by a federal grand jury on February 14, 2012. He pled guilty to a Superseding Information on January 3, 2013. The charge stems from an incident in 2011 in which Swimmer knowingly and intentionally possessed methamphetamine, a Schedule II controlled substance, and assisted in its distribution.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Swimmer was immediately turned over to the custody of the U.S. Marshals Service.
USP-Marion Inmate Sentenced for Possessing A Weapon in PrisonRead the Press Release
Lamar Elmer Smith, 32, an inmate at the United States Penitentiary at Marion, Illinois, was sentenced to an additional prison term of 24 months today in United States District Court in Benton for possessing a weapon in that prison, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Smith was charged in an indictment by a Federal Grand Jury with possessing a 7 inch long piece of sharpened metal, which appeared to be constructed from fence material and resembled an ice pick. The offense occurred on August 16, 2012. Smith pled guilty to the charge on January 31, 2013.
At the time he possessed the weapon, Smith was serving a 211 month sentence imposed in the Eastern District of Missouri for conspiring to distribute cocaine and possessing a firearm during a drug trafficking crime. The 24 month term of imprisonment was imposed consecutively to that sentence.
In addition to the term of imprisonment, Smith was ordered to pay the United States fines and special assessments totaling $200 and was placed on a 3 year term of supervised release to follow his incarceration.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Two New Orleans Men Indicted in Heroin ConspiracyRead the Press Release
TERRENCE TYLER, age 23, and TARELL STEVENSON, age 36, both of New Orleans, Louisiana, were charged today in an eight-count indictment by a Federal Grand Jury with distribution of heroin, conspiracy, and related firearms charges, announced U. S. Attorney Dana Boente.
According to the indictment, TYLER and STEVENSON conspired to distribute one hundred (100) grams or more of heroin, from November 2012 to present. The indictment also charges TYLER with possessing marijuana with the intent to distribute it, and with possessing a firearm in furtherance of a drug trafficking crime.
With respect to the heroin charges, TYLER faces a maximum term of imprisonment of forty (40) years, a fine of $5,000,000, and four (4) years of supervised release following any term of imprisonment. If convicted of the firearm charge, TYLER faces an additional term of imprisonment of five (5) years.
STEVENSON faces a maximum term of imprisonment of life, a fine of $8,000,000, and eight (8) years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being investigated by the Drug Enforcement Administration and prosecuted by Special Assistant United States Attorney Michael B. Redmann.
(Download Indictment )
Two Men Plead Guilty to Robbing the First State Bank of Bigfork in KelliherRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 20-year-old Bemidji man pleaded guilty to the December 10, 2012, armed robbery of the First State Bank of Bigfork, which is located in Kelliher, Minnesota. Travis Michael Burns specifically pleaded guilty to one count of aiding and abetting armed bank robbery. Burns, who was indicted on January 16, 2013, along with a co-defendant, entered his plea before United States District Court Judge Donovan W. Frank.
In his plea agreement, Burns admitted that on December 10, 2012, he drove Cody Lowell Troy, age 20, of Mizpah, to the bank for the purpose of robbing it. Burns also admitted waiting in the vehicle while Troy went inside the bank and then driving away again after Troy ran from the bank and got back in the vehicle.
According to a law enforcement affidavit filed in the case, Troy reportedly wore a white protective containment suit, a “Halloween” movie-style mask, Nike Air Jordan shoes, and black gloves during the robbery. Approaching a bank teller, he placed a black backpack on the counter, pointed the shotgun in the teller’s direction, and then pumped the gun. The teller immediately placed money in the backpack, which Troy grabbed before fleeing the premises.On December 12, 2012, police arrested Troy in Bemidji on an outstanding Itasca County warrant for failure to appear in connection with a prior felony. At that time, officers located a red pickup that matched the description of the vehicle two witnesses spotted in the vicinity of the Kelliher bank and driving away from the bank immediately following the December 10, 2012, robbery.
During the subsequent execution of a search warrant at the Bemidji apartment where Burns lived and Troy was staying, authorities seized shotgun shells, a hacksaw, and a loaded sawed-off shotgun, as well as the sawed-off gun stock and barrel. They also recovered a white protective containment suit, black gloves, Nike Air Jordan shoes, and a “Halloween” movie-style mask. The backpack used in the robbery and some money from the bank were recovered in Burns’ bedroom.
On May 14, 2013, Troy pleaded guilty to one count of brandishing a firearm during a crime of violence. In his plea agreement, he admitted robbing the bank while brandishing a 12-gauge, sawed-off shotgun that had a partially obliterated serial number. He stole approximately $3,738.
For his crime, Troy faces a mandatory minimum sentence of ten years in federal prison. Burns faces a potential maximum penalty of twenty- five years in federal prison. Judge Frank will determine their sentences at future hearings, yet to be scheduled.
This case was investigated by the Federal Bureau of Investigation, the Beltrami County Sheriff’s Office, the Headwaters Safe Trails Task Force, and the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Kevin S. Ueland.Two Members of Drug Conspiracy Connected to Mexican Cartel Convicted Following Seven Day TrialRead the Press Release
Two men investigated as part of a wide ranging international drug conspiracy were convicted today in U.S. District Court in Seattle on federal charges related to their drug distribution, announced U.S. Attorney Jenny A. Durkan. RAUL ANCHONDO, 29, was convicted of Conspiracy to Distribute Controlled Substances, Conspiracy to Possess Firearms in Furtherance of Drug Trafficking Crimes & Crimes of Violence, and Possession of Firearms in Furtherance of a Drug Trafficking Crime. RICHARD ANTHONY ORTIZ, 33, was convicted of Conspiracy to Distribute Controlled Substances and Possession of Heroin with Intent to Distribute. The jury deliberated about five hours following the seven day trial. ANCHONDO faces a mandatory minimum 15 years in prison and up to life in prison and ORTIZ faces a mandatory minimum ten years in prison and up to life in prison. They are to be sentenced by U.S. District Judge Robert S. Lasnik on September 27, 2013.
The men were arrested in March 2012, following a lengthy investigation of the drug trafficking ring. According to records filed in the case, during the investigation, agents seized multiple kilos of heroin, pounds of methamphetamine, and more than a dozen firearms, including military-style assault rifles which were bound for cartel members in Mexico. During the course of the investigation, federal agents were able to interdict a shipment of a dozen weapons to Mexico, preventing high powered firearms from crossing the border. In all, 34 people have been charged in the case and the conspiracy leaders in the U.S., Cristian Berrelleza-Verduzco, Victor Berrelleza-Verduzco, and Ivan Berrelleza-Verduzco have all pleaded guilty and will be sentenced in September 2013.
According to testimony at trial, ANCHONDO ran a stash house for drugs and bulk cash in Arizona, and later became a courier, bringing multi-pound loads of methamphetamine and kilos of heroin up to Western Washington in hidden compartments of various load vehicles. The compartments would be loaded with cash for the return trip – as much as $100,000 to $300,000 headed back to Mexico. ANCHONDO helped pack and ship the drugs – the packages were wrapped in a distinctive way with the initials of the drug leaders in Mexico responsible for the load noted on the packaging. At the direction of the conspiracy leaders, members of the conspiracy slept with firearms at their sides to protect the drugs and the cash. ANCHONDO also received two high powered weapons for shipment to Mexico, and used other firearms during the course of the conspiracy. ORTIZ was a kilo quantity distributor of heroin in Western Washington, making calls to arrange drug deliveries even as he was leaving the office of his state community corrections officer. Nearly 500 telephone calls on cell phones associated with ORTIZ tie him to the Washington leaders of the drug conspiracy.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the ICE’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco and Firearms (ATF), the Drug Enforcement Administration (DEA), the Lake Stevens Police Department, the Snohomish Police Department, Washington State Patrol, the Snohomish Regional Drug Task Force and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and John McNeil.
Three Sentenced in Connection with Odessa-Based Firearms Straw Purchasing and Trafficking InvestigationRead the Press Release
In Midland today, sentences were handed down to three individuals, including former Odessa, TX, residents Miguel and Michelle Compean and Odessa resident Brian Connell, for their roles in a firearms straw purchasing and trafficking investigation announced United States Attorney Robert Pitman and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Dallas Field Office Special Agent in Charge Robert Champion.
United States District Judge Robert A. Junell sentenced 28-year-old Brian Connell to 60 months in federal prison followed by three years of supervised release. On February 25, 2013, Connell pleaded guilty to one count of conspiracy to smuggle goods from the United States and one count of giving a false statement to a federal official.
Judge Junell also sentenced Greenville, TX, residents 33–year-old Miguel Angel Compean, and his wife, 27-year-old Michelle Compean to 121 months in federal prison and 60 months probation, respectively. On February 11, 2013, Miguel Compean pleaded guilty to one count of conspiracy to smuggle goods from the United States, one count of making a false statement in the acquisition of a firearm and one count of aggravated identity theft. On February 20, 2013, Michelle Compean pleaded guilty to one count of making a false statement in the acquisition of a firearm.
By pleading guilty, the defendants admitted to participating in a scheme which involved surreptitiously purchasing approximately 100 firearms, including AK-47 style rifles and pistols, from various firearms dealers in Odessa, Fort Worth, Dallas, Brenham and Mesquite, TX, in order to smuggle them from the United States into Mexico during a 13-month period beginning in December 2011. Miguel Compean admittedly purchased firearms for himself by using a relative’s name, date of birth and social security number. Compean also admitted to recruiting his wife, Michelle, and Brian Connell to purchase firearms on his behalf and paying Connell $300 for each firearm that Connell straw purchased and gave to Compean. Michelle Compean and Brian Connell both admitted to making false statements on ATF Form 4473 at the time of a firearm purchase claiming to be the actual buyer.
This case was investigated by ATF agents. Assistant United States Attorney Will Tatum prosecuted this case on behalf of the Government.
Three Henderson, Kentucky Residents Face Federal Charges in Multiple Henderson and Daviess County Bank RobberiesRead the Press Release
– Ten banks and one convenience store robbed during a nearly three year period
BOWLING GREEN, Ky. – The federal grand jury meeting in Bowling Green, Kentucky this week charged three Henderson County, Kentucky residents with multiple counts of bank robbery and brandishing a firearm during a crime of violence, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Weston Neel Hurd, age 39, of Henderson, Kentucky was charged with robbing two banks located in Owensboro, Kentucky and one bank located in Henderson, Kentucky between August 6, 2012 and December 28, 2012. Specifically, Hurd is alleged to have brandished a firearm during the robbery of the First Security Bank, located on Frederica Street, in Owensboro, of $1,131 on December 28, 2012. Further, according to the indictment, Hurd, through force, violence and intimidation allegedly robbed the Ohio Valley Financial Group, in Henderson, Kentucky of $2,651 on August 6, 2012 and that Hurd robbed the Kentucky Telco Federal Credit Union, located in Owensboro, of $2,878 on October 2, 2012.
If convicted at trial, Hurd faces no more than 20 years for counts one and two, no more than 25 years for county three, and no less than seven years to life for count 4, for a combined total of 72 years in prison including life, a $250,000 fine for each count, and five years of supervised release. Hurd is being held in the Daviess County Detention Center.
This case is being prosecuted by Assistant United States Attorney Daniel P. Kinnicutt, and is being investigated by the Federal Bureau of Investigation (FBI), the Owensboro Police Department and Henderson Police Department.
Meiesha R. Sharp, 23, of Henderson, Kentucky was charged in a four count federal grand jury indictment with robbing a convenience store and a bank, both located in Henderson, Kentucky and with brandishing a firearm, specifically an AMT, Model Backup, .380 caliber pistol, during a crime of violence. According to the indictment, Sharp robbed the Kangaroo Express store, located in Henderson, on June 25, 2012 and robbed the Fifth Third Bank, located in Henderson, of $29,068.95 on June 29, 2012, and on both occasions did assault and put in jeopardy the life of another person by the use of a dangerous weapon, that is a firearm.
If convicted at trial, Sharp faces 77 years and up to including life in prison, a fine of $1,000,000 and no more than five years of supervised release for each charge. Sharp remains in the Henderson County Detention Center.
This case is being prosecuted by Special Assistant United States Attorney Micah Reyner and is being investigated by the Federal Bureau of Investigation (FBI) and the Henderson Police Department.
James A. Morris, 53, of Henderson, Kentucky was charged with robbing five banks in Henderson, and one bank in Webster County, Kentucky between July 23, 2010 and January 17, 2013. An additional charge of money laundering was added in the Superseding Indictment. According to the indictment, Morris, through force, violence and intimidation, allegedly robbed; Green River Credit Union located in Henderson, on January 17, 2013; Independence Bank located in Henderson, on August 22, 2012; Bank of Henderson, on August 22, 2012; Green River Credit Union, in Henderson, on July11, 2012; U.S. Bank, in Henderson, on May 24, 2011; and Integra Bank, in Poole, Kentucky, on July 23, 2010.
If convicted at trial, Morris faces no more than 20 years in prison for each count for a combined maximum of 140 years, a $250,000 fine for each count for a combined maximum of $1,750,000, and supervised release for a period of three years. Morris remains in custody awaiting arraignment on the new charge.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the Federal Bureau of Investigation (FBI).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Thirty-three Defendants Charged in Staged Automobile Accident SchemeRead the Press Release
92 defendants have been charged to date in Operation Sledgehammer I-VI
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announced the unsealing of a federal indictment and three separate criminal Informations charging thirty-three (33) defendants, including doctors, licensed professionals and clinic owners, for their participation in a massive staged automobile accident scheme based in Palm Beach and Miami-Dade Counties, Florida. Of the 33 defendants charged, 26 were arrested or are expected to surrender. Four of the defendants are known to have fled to Cuba, with an additional three of the defendants have not been located at this time and are considered fugitives.
The charges announced today are the culmination of a three-year joint federal and state law enforcement investigation, dubbed Operation Sledgehammer, into a series of chiropractic clinics that were allegedly involved in staged accidents and filing false insurance claims. Starting with Operation Sledgehammer I in June 2011 and including the defendants charged today in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney’s Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney’s Office.
Operation Sledgehammer VI, announced today, has resulted in a Second Superseding Indictment and three separate criminal Informations charging 33 defendants. The Second Superseding Indictment charges 30 individuals, including ring leaders Vladimir Lopez and Lazaro Vigoa Mauri, with conspiracy to commit and substantive mail fraud (Counts 1–91), conspiracy to commit and substantive money laundering (Counts 92-153), and conspiracy to and actual structuring of financial transactions (Counts 154-183). The indictment also seeks the forfeiture of proceeds of the fraud, including $714,621 in currency, and any real or personal property derived from the fraud. Attached is a list of all defendants charged in the Second Superseding Indictment, including their names, ages, and cities of residence. In addition, defendants Lawrence Schechtman, 45, Parkland, Olinda Rodriguez, 39, West Palm Beach, and Iris Roca, 41, of Davie, were charged in three separate Informations for their participation in staged accident fraud schemes. These three defendants will be surrendering to the court.
U.S. Attorney Wifredo A, Ferrer stated, “Staged accident automobile insurance fraud is not a victimless crime. Rather, it affects every driver in Florida, as fraud inevitably causes our insurance rates to rise. Worse still, staged accidents make our streets more dangerous and distract police from answering legitimate distress calls. We hope that this continued operation will send a message to those who seek to line their pockets through fraud. Together with our federal and state law enforcement, regulatory and private industry partners, we will find you, we will prosecute you, we will take away your ill-gotten money, and you will face substantial prison time.”
“If you get upset about your car insurance premiums going up, this crime is one of the reasons why,” said William J. Maddalena, Assistant Special Agent in Charge of FBI Miami. “Every time an insurance payout is made for a staged accident in Florida, we all feel the pain in the pocketbook. The FBI and our partners with the Greater Palm Beach Health Care Fraud Task Force will continue to use all investigative techniques to bring to justice those responsible for this type of fraud.”
“Consistently, law-breakers try to hide their crimes by laundering their ill-gotten gains and by structuring financial transactions to avoid detection by law enforcement. Today’s indictment reflects the futility of that strategy,” said IRS-CI Acting Special Agent in Charge Michael J. DePalma. “By following the money trail, IRS-CI agents will continue to aggressively target these defendants’ finances and their freedom.”
“These staged accidents are the lifeblood of Personal Injury Protection (PIP) fraud, which has cast a shadow over Florida’s roads,” Florida Chief Financial Officer Jeff Atwater said. “Every Florida family is negatively affected by these fake crashes in the form of high auto insurance premiums. I am proud of the collaborative efforts across local, state and federal agencies to put these criminals behind bars.”
According to the charging documents, between approximately October 2006 and December 2012, the defendants staged automobile accidents and thereafter caused the submission of false insurance claims through chiropractic clinics they controlled. To execute the scheme, the true owners of the chiropractic clinics allegedly recruited individuals, who had the medical or chiropractic licenses required by the state to open a clinic, to act as “nominee owners” of the clinics. The defendants also recruited individuals, whom they referred to as “Perro” and “Perra,” to participate in the accidents, and others to help the clinics launder the insurance proceeds. The defendants also hired complicit chiropractors and therapists who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme. A list of these clinics is attached to this release.
If convicted, the defendants face the following possible maximum statutory sentences: 20 years in prison for conspiracy to commit mail fraud, substantive mail fraud, and conspiracy to commit money laundering; 20 years for each count of substantive money laundering; 5 years for conspiracy to structure financial transactions, and 10 years for structuring financial transactions involving more than $100,000 in one year. Restitution to the victims of the offenses is mandatory.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney’s Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. Mr. Ferrer thanked the U.S. Marshal’s Service and Customs and Border Protection for their assistance in today’s arrests. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney’s Office.
An indictment or Information is only an accusation and a defendant is presumed innocent until proven guilty.
Attachments:
Operation Sledgehammer Defendant List (PDF)
Operation Sledgehammer Clinics List (PDF)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.
Texas Man Sentenced for Distributing "Bath Salts"Read the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Dung Lam Le, 27, of Dallas, Texas, who was convicted of conspiracy to distribute 4-methyl-N-ethylcathinone, a controlled substance analogue, more popularly known as “4-MEC” or “bath salts,” was sentenced to 44 months in prison by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that agents from the Drug Enforcement Administration, acting in an undercover capacity, were able to purchase significant quantities of the controlled substance analogue by communicating with the defendant via e-mail and on-line. Agents seized over one kilogram of 4-methyl-N-ethylcathinone, which had been sent by Le to a co-conspirator in the Rochester area.
The Drug Enforcement Administration, along with many local law enforcement agencies, have increased efforts over the last year to combat the importation, distribution, and use of designer drugs known as “bath salts”, which have a similar chemical structure to “methcathinone”, a Schedule I controlled substance. “Bath salts” are synthetic stimulants that have no real value as a bath salt or other bath product. Their only known purpose is to be consumed by humans as a recreational drug. Users of “bath salts” typically snort the drug in powder form or ingest the drug in pill form, but some users have been known to smoke it, or inject the drug intravenously. The drug has proven to affect users in a variety of ways, but users typically experience highs similar to those experienced after ingesting MDMA or “ecstasy”, and stimulants like cocaine and methamphetamine (euphoria and increased energy). Companies located in China and India are principally responsible for manufacturing and exporting “bath salts” to the United States. Shippers of “bath salts” typically mislabel the product to evade detection by law enforcement, and sell the drugs via the Internet to distributors around the world, including in the United States. Distributors in the United States then sell the drugs online, through traditional distribution methods or by retail distribution at convenience stores, gas stations, and “head shops” (retail stores specializing in drug paraphernalia) in packets labeled “bath salts.” “Bath salts” have been shown to have a number of adverse and largely unpredictable effects, which include psychotic episodes, delusions, panic attacks, increased heart rate, chest pain, agitation, dizziness, nausea and vomiting.The sentencing is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.
Statement Regarding Inspector General Report on the Handling of Former <br /> Known or Suspected Terrorists Admitted into the Federal Witness Security ProgramRead the Press Release
For more than 40 years, the federal Witness Security (WitSec) Program has enabled the government to bring to justice the most dangerous criminals by providing critical protection for witnesses fearing for their safety. Over the last two decades, it has been a key tool in thwarting planned attacks and prosecuting those responsible for some of the worst acts of terrorism in American history, including the 1993 World Trade Center bombing, the 1995 bombing of the Alfred P. Murrah Federal Building in Oklahoma City and the 2009 New York City subway suicide-bomb plot. No terrorism-linked witness has ever committed an act of terrorism after entering the program.
The number of former known or suspected terrorists ever admitted into the WitSec Program represents a fraction of one percent of the total WitSec population, and the vast majority were admitted into the program prior to Sept. 11, 2001. To date, the FBI has not identified a national security threat tied to the participation of terrorism-linked witnesses in the WitSec program.
All WitSec participants undergo careful vetting before being admitted into the program, including a complete psychological evaluation and consideration of the witness’s value to the underlying prosecution, the nature of the threat against the witness and the potential risk to the relocation community. Witnesses are admitted only if relevant federal law enforcement officials have determined that the witness is suitable for the program and the need to admit the witness outweighs any potential risk to the public. Those officials include: the FBI or other sponsoring law enforcement agency investigating the underlying criminal conduct; the U.S. Attorney for the district prosecuting the underlying criminal conduct; the U.S. Marshals Service (USMS), which protects witnesses who require a change of identity and relocation services; and the Department’s Office of Enforcement Operations (OEO), which oversees the WitSec Program.
The Justice Department agrees with the Inspector General’s audit report that the WitSec Program’s requirements for admitting and monitoring participants needed to be enhanced for terrorism-linked witnesses. In May 2012, the Justice Department developed and implemented formal protocols that the Inspector General recognized as a “significant milestone.” These enhancements, which have been in effect for a year, include:
• Complete information sharing between USMS, OEO, FBI, the Terrorist Screening Center (TSC) and the National Joint Terrorism Task Force (NJTTF)
• A highly restrictive travel policy that prohibits without exception WitSec participants with a Watchlist status of “No Fly” from traveling on commercial flights
• Consultation with the Justice Department’s National Security Division whenever a terrorism-linked witness is admitted into the WitSec Program
• Close coordination with the Department of Homeland Security in cases involving foreign nationals
The Justice Department has completed action on 15 of the 16 recommendations made in the Inspector General’s report. The sole remaining recommendation requires the Department to perform a manual review of all 18,000-plus case files of WitSec Program participants dating back to the 1970s. The department has thus far completed its review of nearly 20 years of records.
Related Materials:
ODAG Public Response to OIG WitSec Interim Audit Report
State Representative Tyrone Brooks, Sr. Indicted on Fraud and Tax ChargesRead the Press Release
Defendant Charged With Misappropriating Almost $1 Million in Charitable Donations
ATLANTA - A federal grand jury has indicted Tyrone Brooks, Sr. on charges that he misappropriated almost $1 million in charitable funds from Universal Humanities, a charity he founded in 1990, and the Georgia Association of Black Elected Officials (GABEO).
“This is a disappointing day. Representative Brooks has done much good in his life, both as a state legislator and civil rights leader," said United States Attorney Sally Quillian Yates. "But the indictment charges that over many years, Representative Brooks misappropriated nearly one million dollars in charitable donations intended to provide literacy training in underserved communities, and from GABEO – the organization for which he has served as president since 1993. Sadly, by diverting these funds to his own use, Representative Brooks deprived those most in need of critical assistance.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the FBI continues to make public corruption matters its number one priority within its criminal branch, we do so with a clear commitment to the rule of law. Today’s federal grand jury indictment reflects the commitment of the FBI and its law enforcement partners to follow the facts of these investigations wherever they lead us.”
“Mr. Brooks exploited two charitable organizations for his own personal financial gain which came at the expense of the intended beneficiaries of the charitable donations. IRS Criminal Investigation is committed to investigating individuals who use charitable organizations for their personal gain,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Mr. Brooks defrauded not only the donors but also the American taxpayer by evading his tax obligations. Tax compliance should and must be equally shared among all Americans.”
Brooks, 67, of Atlanta, Ga., was charged by a federal grand jury in a 30-count indictment that includes charges of mail, wire and tax fraud. The indictment charges that, from the mid-1990s through 2012, Brooks solicited contributions from individuals and corporate donors to combat illiteracy and fund other charitable causes, but then used the money to pay personal expenses for himself and his family. The indictment was returned today, and Brooks will appear for arraignment on a date set by the Court.
According to the Indictment:
Universal Humanities SchemeThe indictment charges two fraud schemes, the first involving a tax-exempt charity, Universal Humanities, Inc., that Brooks established in the early 1990s. From at least 1995 through 2012, Brooks solicited contributions for Universal Humanities from corporate and individual donors purportedly to combat illiteracy in disadvantaged communities in Georgia and across the southeastern United States, eventually raising more than $780,000. Donors included the Coca-Cola Company ($400,000), Georgia Pacific Company ($140,000), Northside Hospital ($240,000), and others who gave smaller amounts. Brooks made specific false representations in his written solicitations about the work that Universal Humanities was doing to combat illiteracy and how the donated funds would be used, claiming that Universal Humanities had established literacy programs and was conducting workshops and tutoring and mentoring students. He also falsely claimed that Universal Humanities utilized a staff and operated under the direction of a board of directors.
The indictment alleges that in reality, Brooks did not use the donations to promote and address literacy in Georgia or elsewhere, or to retain a staff, occupy office space, fund workshops, hire instructors, or conduct programs attended by students. Instead, Brooks used the money to pay personal expenses for himself and members of his family, including home repairs, furniture, lawn service, life insurance, entertainment, personal credit card expenses, utility bills, food and clothing, dry cleaning, electronic equipment, jewelry, and payments on personal loans, among other personal expenses.
Brooks generally accomplished the diversion of funds by depositing the solicited donations into a bank account he established in the name of Universal Humanities, then almost immediately transferring the funds to a personal account, from which he paid personal expenses. At times, Brooks paid personal expenses directly from the Universal Humanities account.
More specifically, the indictment alleges that:
- Contrary to Brooks’ representations to donors, Universal Humanities never had a functioning board of directors. The individuals listed on the solicitations and incorporation documents were unaware that Brooks had identified them as Universal Humanities board members, and most had never even heard of the organization;
- Brooks represented in a 1999 solicitation that Universal Humanities had been “so successful” in Georgia that it was expanding its programs to other states in the Southeast, and expected to have a projected budget of $500,000. In truth, Universal Humanities did not have an operational literacy program inside or outside of Georgia, nor did it have a projected budget of $500,000;
- Brooks represented in a 2010 solicitation that Universal Humanities’ literacy program, which Brooks called “Visions of Literacy,” consisted of a host of “outlets” created to increase literacy and included activities such as seminars, workshops, tutoring, mentoring, and rallies. Brooks further claimed that Universal Humanities and its “staff ha[d] over 40 years’ experience in assisting U.S. communities through a variety of efforts,” and that 10,000 people would be the direct beneficiaries of the literacy program. In truth, Universal Humanities and Brooks did not operate a functional literacy program, host the literacy activities described in the solicitation, or have a staff;
- Brooks represented in a 2011 solicitation that the Visions of Literacy program conducted monthly workshops, seminars, and advocacy outreach activities, and that the solicited funds would be used to hire retired teachers and administrators as “educational consultants” to gain “targeted results.” Instead, Brooks spent the funds donated in response to this solicitation on payments for a personal credit card charges, personal loan payments, utility bills, and a $500 check to a family member as a Christmas gift;
- Unbeknownst to GABEO, Brooks represented in a 2011 solicitation that GABEO was a “sister organization” to Universal Humanities and that GABEO was committed to the “growth and advancement of Universal Humanities.” Brooks falsely claimed that GABEO members spoke in public forums to implement and promote Universal Humanities’ programs; that GABEO members taught at Universal Humanities meetings and classes “alongside” Universal Humanities community organizers; and that GABEO members served on the Universal Humanities’ board of directors, steering committee, fundraising committee, and program management committees, though the purported committees were nonexistent; and
- Brooks submitted a form to the IRS under oath claiming that Universal Humanities incurred expenses of $62,652 for printing, postage, and publications in 2007; $67,601 for “commemorative events” in 2008; and $53,184 for charitable contributions, fundraising, and conferences in 2009. Just one year before, Brooks had submitted the same form under oath claiming that for the same years, Universal Humanities incurred expenses of only $8,900 for each of those years and had generated income of over $50,000.
As a result of Brooks’ misappropriation of donated funds, the intended beneficiaries of the funds did not receive the needed literacy training or assistance.
GABEO Scheme
A second related scheme charged in the indictment alleges that Brooks also diverted charitable donations he solicited on behalf of GABEO and used much of the money to pay personal expenses for himself and his family. GABEO is an organization of state, county, and municipal elected officials that promotes voter registration, crime prevention, literacy and economic empowerment initiatives.
The indictment alleges that Brooks solicited contributions to GABEO from corporations, organizations and individuals. When Brooks was elected as GABEO’s President in 1993, the organization already maintained an official bank account at a local bank. This account was administered by GABEO’s Treasurer, and disbursements required two signatures by GABEO Board members. In December 1997, Brooks secretly opened a second GABEO bank account at a different bank. Brooks set himself up as the sole signatory on this account, and had the account statements sent to his address rather than the address of the GABEO Treasurer. Brooks then deposited the donations he solicited on behalf of GABEO into this undisclosed account, and used much of these funds to pay personal expenses for himself and his relatives.
Between 2002 and 2012, businesses, civic, religious groups and individuals contributed approximately $300,000 to GABEO through Brooks, which he then deposited into the undisclosed GABEO account. The indictment alleges that Brooks misappropriated donations he solicited on behalf of GABEO from corporations, local teacher unions, small business owners, and individual donors – all of whom relied on Brooks’ assurances that the contributions were intended to further GABEO’s community activities. The GABEO Board was unaware of this activity and did not approve these transactions. In fact, the indictment alleges that after Brooks began diverting donations, members of GABEO’s Board of Directors noted the organization’s apparent loss of most of its corporate donations.
The indictment charges that Brooks misappropriated the GABEO funds in much the same manner as the Universal Humanities funds. The indictment alleges that generally, Brooks deposited funds he solicited on behalf of GABEO into the undisclosed GABEO account, then transferred the funds to his personal account, from which he paid his personal expenses. While Brooks utilized some of the GABEO donations to pay expenses related to GABEO’s annual meetings, he utilized much of the GABEO funds for personal expenses.
More specifically, the indictment charges that:- During the time that Brooks acted as GABEO’s President, a variety of charitable groups, companies and individuals made donations to GABEO through Brooks. These donors relied on Brooks’ representations that GABEO would use the contributions to defray the costs of the organization’s annual meetings and convention, and to support GABEO’s programs;
- Brooks made specific false representations to donors about how the solicited funds would be used, claiming that the funds would be used to cover the expenses of annual GABEO meetings, support GABEO crime prevention and child hunger initiatives, voter registration, felon rehabilitation initiatives, and literacy programs. Donors included Coca Cola ($96,500), Georgia Power ($37,000), the International Brotherhood of Teamsters ($36,000), and others;
- Additionally, a professional organization of teachers contributed to GABEO through Brooks, relying on his assurances that the funds would go to support GABEO’s annual meetings and convention. An Atlanta law firm gave to GABEO through Brooks based on his representation that the funds would help fund a children’s school and GABEO’s annual convention. A bank contributed to GABEO through Brooks based upon his representations that the funds would be used by GABEO to construct a commemorative marker at Moore’s Ford Bridge. Instead, Brooks deposited these funds into the undisclosed GABEO account that he controlled and then transferred the money to pay to his personal account, ultimately using most of the contributions to pay personal expenses; and
- In November 2011, and May 2012, without the knowledge and consent of GABEO’s Board of Directors, Brooks obtained bank loans on behalf of GABEO. Brooks told the bank that GABEO intended to use the proceeds of both loans for “Citizenship Education Get Out the Vote” initiatives. Relying on Brooks’ representations, the bank approved both loans and issued the proceeds to Brooks. Brooks subsequently used much of the funds to pay personal expenses rather than for GABEO’s education and voter registration programs as he claimed in the loan applications.
By misappropriating GABEO donations for his personal use, Brooks benefitted himself at the expense of both GABEO and the communities most in need of the literacy, crime prevention and voter registration programs for which the funds were intended.
False Tax Returns Charges
Finally, the indictment charges that Brooks substantially underreported his income to the IRS for the years 2007 through 2011. Despite Brooks’ charged misappropriation of hundreds of thousands in donations to Universal Humanities and GABEO, his tax returns for the years between 2008 through 2011 falsely reported income of only approximately $35,000 annually.
Overview of the Charges
The indictment charges 30 counts of mail, wire and tax fraud. The mail and wire fraud charges carry a maximum sentence of 20 years in prison and a fine of up to $250,000. The tax charges carry a maximum sentence of three years and a fine of up to $100,000. It is important to note that the sentences imposed may not approach the statutory maximum sentences, as the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and Internal Revenue Service.
Assistant United States Attorneys Kurt R. Erskine, Richard S. Moultrie, Jr. and Kamal Ghali are prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Brooks Indictment
Stafford Springs Man Charged with Defrauding U.S. VeteransRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that JOHN J. SIMON, JR., also known as “Buzzy Simon,” 66, of Stafford Springs, was arrested yesterday on a federal criminal complaint charging him with mail fraud.
As alleged in the criminal complaint, beginning in approximately 2009, SIMON, a Vietnam War veteran, defrauded several U.S. military veterans of thousands of dollars by representing that he would assist his victims in obtaining or increasing their VA benefits. SIMON represented to certain victims that the money would be used to hire an attorney to do research and other work in furtherance of their claims. These and other representations were false.
After his arrest, SIMON appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and was released on a $50,000 bond.
The charge of mail fraud carries a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Peter S. Jongbloed.
Citizens who have information that may be helpful to this investigation are encouraged to call 973-297-3317.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]St. Paul Felon Pleads Guilty to Possessing .22-caliber Revolver and MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 25-year-old St. Paul felon pleaded guilty to possessing a .22-caliber revolver and methamphetamine. Christopher Lee Rousseau specifically pleaded guilty to one count of being an armed career criminal in possession of a firearm. Rousseau, who was indicted on January 15, 2013, entered his plea before United States District Court Judge Patrick J. Schiltz.
In his plea agreement, Rousseau admitted that on December 3, 2012, he possessed the revolver, which was hidden along with several wrapped baggies of methamphetamine in the center console of the GMC Jimmy he was driving. Rousseau also admitted that he intended to distribute the methamphetamine, and that he carried the revolver in furtherance of his drug trafficking.
Because he is a felon, Rousseau is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in Ramsey County include aiding and abetting second-degree burglary (2010) and fleeing police in a motor vehicle (2011). In addition, Rousseau was convicted in Pine County for fleeing police in a motor vehicle (2007) and, in Dakota County, for third-degree burglary (2010).Because those convictions constituted crimes of violence, Rousseau is now subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition. Judge Schiltz will determine Rousseau’s sentence at a future hearing, yet to be scheduled.
A law enforcement affidavit filed in the current case states that at approximately 12:30 a.m. on December 3, 2012, officers stopped Rousseau for a traffic violation near the intersection of U.S. Highway 61 and Warner Road. He was then arrested for driving after cancellation of his license. During a search of Rousseau’s person, police found some ammunition and $385. A search of the vehicle led to the recovery of the gun and the methamphetamine.
This case is the result of an investigation by the St. Paul Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.St. Louis Parks Division Deputy Commissioner and Chief of Park Rangers Indicted on Fraud ChargesRead the Press Release
St. Louis, MO -JOSEPH VACCA, Deputy Commissioner of the St. Louis Parks Division, and THOMAS STRITZEL, Chief of the St. Louis Park Rangers, were indicted by a federal grand jury late Wednesday on fraud charges alleging that they defrauded the City of St. Louis of approximately one-half million dollars by submitting false and sham invoices purportedly for materials and services supplied to the Parks Division. They are expected to turn themselves in to authorities this week.
The indictment alleges that from January 1, 2005, to on or about December 31, 2012, Vacca and Stritzel embezzled funds of the City of St. Louis based upon the submission of sham and false invoices, which included false charges of approximately $464,722. They used the funds for their own personal use, including lease payments on personal vehicles, fuel costs, the payment of personal credit card charges and other personal living expenses unrelated to the legitimate operations of the St. Louis Parks Division.
According to the indictment, Vacca and Stritzel set up a sham company called Dynamic Management and then funneled city funds received through the submission of false and sham invoices to Dynamic Management’s bank account. Vacca and Stritzel then used those fraudulently obtained funds for their own personal use, including for the leasing of personal vehicles, the payment of fuel costs and the payment of personal credit card charges."Taxpayers were slapped in the face when roughly half a million dollars was allegedly embezzled from City of St. Louis funds allocated to the Parks Department," said Special Agent in Charge Dean C. Bryant of the FBI St. Louis Division. "The cooperation from the City of St. Louis enabled the FBI to uncover the multiple fraudulent schemes."
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
If convicted, each of these charges carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.St. Charles County Man Indicted Involving Investment Fraud SchemeRead the Press Release
St. Louis, MO - MICHAEL KITCHEN, St. Peters, MO, was indicted on federal fraud charges for conducting an investment fraud scheme during 2008 and 2009. He is expected to appear in federal court later this week.
According to the indictment, Kitchen marketed a "verification of funds" financial opportunity to a number of investors and took in approximately $500,000. Kitchen told investors' their money was safe and, if placed in a verification of funds transaction, would earn more than 1000% annualized return. However, Kitchen is alleged to have failed to protect or place investors' funds. To the contrary, the indictment alleges Kitchen simply spent investors' money on business and personal expenses over several years.
Kitchen was indicted by a federal grand jury late Wednesday on three felony counts of wire fraud for devising this fraud scheme and two counts of money laundering for using its proceeds to purchase two automobiles.
If convicted, each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. The money laundering counts carry maximum penalties of 10 years in prison and/or fines up to $250,000. Restitution must be ordered for any victims.
This case was investigated by the U.S. Postal Inspection Service and the FBI in cooperation for the Office of Securities Enforcement - Missouri Secretary of State's Office, which is currently prosecuting a civil enforcement action against Kitchen. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Shahid Sindhu Khan Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 14, 2013, before U.S. District Judge Dana L. Christensen, SHAHID SINDHU KHAN, a 39-year-old resident of Othello, Washington, was sentenced to a term of:
Prison: 18 months
Special Assessment: $100
Supervised Release: 4 years
KHAN was sentenced in connection with his guilty plea to conspiracy to distribute cocaine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara L. Elliott, the government stated it would have proved at trial the following:
On August 23, 2012, a Confidential Informant (CI) was scheduled to purchase cocaine from KHAN and Ijaz Khan Sindhu in Missoula. Prior to arriving in Montana, KHAN and Sindhu were stopped by Idaho police officers and it was later discovered that they had 10 ounces of cocaine in their car.
The CI would have testified that he purchased cocaine from Sindhu on numerous occasions between January and August of 2012, and usually purchased approximately 9 ounces of cocaine at a time. He would have further testified that KHAN was with Sindhu on at least 4 or 5 of those occasions and at least once KHAN took the money from the CI for the cocaine.
Sindhu pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KHAN will likely serve all of the time imposed by the court. In the federal system, KHAN 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.
Seneca Falls Woman Pleads Guilty to FraudRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Mary Brainard, 60, of Seneca Falls, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, to wire fraud affecting a financial institution. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Mary Brainard and her husband, Calvin Brainard, an attorney, owned and operated BMC Capital, a mortgage brokerage business in Seneca Falls. Through BMC Capital, the Brainards brokered mortgage refinancing loans for various clients. Calvin Brainard acted as the settlement agent for the lending banks, and received the refinancing loan proceeds into his attorney trust account.
The loan proceeds were supposed to be used to pay off the client's original mortgage loan, but on multiple occasions, Mary Brainard accessed Calvin's attorney trust account and diverted the money to a different account that she controlled. Mary Brainard then used the client money for her own purposes, including to repay monies that she had previously stolen from other clients. To try to cover up her scheme, Mary Brainard created false bank records and other documents. In total, Mary Brainard stole at least $400,000 from at least 10 individuals in 2009 and 2010.
Charges against Calvin Brainard are still pending.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.
Sentencing is scheduled for September 11, at 2:30 p.m. before Judge Geraci.
Scranton Man Sentenced for Online Enticement of MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 46-year-old Scranton resident was sentenced today by Senior U.S. District Court Judge A. Richard Caputo in Scranton to 70 months in prison for attempting to entice a minor to engage in illegal sexual conduct.
According to United States Attorney Peter J. Smith, the defendant Lewis John Davies previously admitted to using a computer to attempt to persuade a minor to engage in sexual acts with him during April-June 2008.
Davies was indicted by a federal grand jury in June 2008, as a result of an investigation by the Federal Bureau of Investigation and the Scranton Police Department.
Judge Caputo also ordered Davies to serve six years on supervised release after serving his prison sentence, pay a $100 special assessment, and forfeit several computer hard drives that were seized by agents during the investigation.
Davies was also ordered to undergo sex offender treatment and to comply with sex offender registration and notification requirements.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Schaltre SentencingRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that TIMOTHY R. SCHLATRE, 35, of Denham Springs has been sentenced for his creation and execution of a scheme to defraud life insurance companies, including New York Life and Lincoln Financial. District Court Judge James J. Brady sentenced SCHLATRE for his convictions of mail fraud and money laundering. SCHLATRE was sentenced to the Bureau of Prisons to serve a term of 57 months imprisonment and pay restitution of $1,424,931.12 to the victims of his offenses. SCHLATRE was ordered to repay fraudulently obtained commissions of $908,098.17 to New York Life and $516,832.95 to Lincoln Financial. He also was sentenced to a term of 2 years supervised release and ordered to pay a special assessment of $200. Additionally, Judge Brady ordered SCHLATRE to forfeit the gross proceeds of his crimes, including a Cadillac Escalade and $1,424,931.12.
Along with SCHLATRE, the United States Attorney has also charged and convicted JASON PAUL AUSTIN, 32, of Walker, JODI MARIE AUSTIN, 34, of Walker, RICKY J. AUSTIN, 49, of Denham Springs, JIMMY O. CASSELS, 33, of Denham Springs, TODD D. CUMMINGS, 34, of Walker, and DENA A. GAUDET, 33, of Denham Springs; each has been convicted of Conspiracy to Commit Mail Fraud. Each of Schlatre’s co-conspirators, except for Ricky J. Austin, has already been sentenced to a term of probation.
The Bill of Information to which SCHLATRE pled guilty and was sentenced alleges that SCHLATRE used his position as a life insurance agent for New York Life and Lincoln Financial to devise a scheme to defraud the insurers for the purpose of fraudulently obtaining commission payments. SCHLATRE executed the fraud by selling life insurance policies based on false statements and representations. Specifically, SCHLATRE recruited individuals and persuaded them to submit false information to the companies regarding the applicant’s net worth and annual income, thereby defrauding New York Life and Lincoln Financial into approving the policies and issuing the commission payments to SCHLATRE to which he was not entitled. Because the policy values were so large, the applicants could not afford to make the premium payments. In order to accomplish his scheme, SCHLATRE further agreed to provide the premium payments on behalf of the applicants. This process, known as “rebating,” was prohibited by both company’s policies as well as state law. In order to conceal the fact that he was the source of the premiums, SCHLATRE deposited money directly into the individual applicant’s bank account. SCHLATRE further misrepresented the source of the premium payments by falsely declaring that he was not paying or allowing the rebating of any premiums.
SCHLATRE was sentenced for defrauding New York Life and Lincoln Financial into issuing life insurance policies in excess of $100 million dollars. This resulted in the receipt of commissions to which he was not entitled of approximately $1,424,931.12.
United States Attorney Donald J. Cazayoux, Jr. stated, “Today, the ringleader of this insurance scheme which caused a loss of almost of one and a half million dollars has received a fair and just sentence. Further, I applaud the outstanding investigative efforts of the state and federal agents which have resulted in seven federal convictions in this case.”
“This investigation should be a clear reminder that federal law enforcement's reach into white collar crime extends beyond traditional health care, investment and corporate fraud to bring those responsible to justice,” stated FBI Special Agent-in-Charge Michael J. Anderson.
“People who conspire to create elaborate insurance fraud schemes run a very high risk of prosecution,” stated Damon Rowe, Acting Special Agent-in-Charge, IRS Criminal Investigation. “IRS is committed to working diligently with the Department of Justice to dismantle these organizations.”
Louisiana State Inspector General Stephen Street stated, “Hopefully this sends a message that there is a price to be paid for engaging in fraud schemes. Mr. Schlatre did so, and will now be held accountable.”
The investigation of this matter was conducted by the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the Louisiana Office of Inspector General. The Louisiana Department of Insurance assisted in the investigation. The case was prosecuted by Assistant United States Attorneys Rene I. Salomon and Jay Thompson.
Sanjoy Bhattacharya Sentenced for Defrauding the Louisiana Road Home ProgramRead the Press Release
SANJOY BHATTACHARYA, age 56, a resident of New Orleans, was sentenced today in federal court by U. S. District Judge Carl J. Barbier to serve three years probation and pay a $15,000 fine, after pleading guilty to one count of making false statements to an agency of the United States, announced U. S. Attorney Dana J. Boente.
According to court documents, on or about September 21, 2007, BHATTACHARYA applied for funds from the Louisiana Road Home Program claiming his primary residence at the time of Hurricane Katrina was at 2436-38 Joseph Street, New Orleans, a property he knew was leased to and inhabited by his tenants at the time of the storm. As a result of his false statements in the application, BHATTACHARYA received approximately $84,423 from the United States Department of Housing and Urban Development, which he paid back to the government in February 2013.
The case was investigated by agents with the U. S. Department of Housing and Urban Development, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Julia K. Evans.
Sanford Brothers Arrested for Conspiring to Steal Government PropertyRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces the arrests of Husein Kermali (37) and Sikandar Kermali (33), both from Sanford, Florida, for conspiring to steal government property. If convicted, both men face up to five years in federal prison.
According to the criminal complaint, while employed in the United States Army Active Guard Reserve, co-conspirator Sebastian Stewart Oyegun II, made unauthorized purchases of high-end engineering equipment, computer equipment and power tools. Oyegun charged the goods to the United States Army, and shipped the goods to various addresses. The purchases were made over the Internet using the General Services Administration (GSA) Advantage System website. The site is an ordering mechanism whereby government agencies or contractors can order items from vendors. Oyegun manipulated the purchasing system by fraudulently creating a phony user ID and password, providing phony points of contact and fake approving officials, and adding multiple shipping addresses. Most of the stolen goods were shipped to Oyegun's residence or a warehouse in Sanford, controlled by the Kermali brothers. In furtherance of the conspiracy, the Kermalis would select items they wanted from the GSA Advantage System website and e-mail their requests to Oyegun, paying him a fraction of the advertised price.
After the U.S. Army uncovered the scheme, Oyegun began cooperating with the FBI and participated in a number of controlled meetings with the Kermalis. On at least three occasions, Oyegun delivered stolen goods to the Kermalis at their Sanford warehouse in his U.S. Army Combat Uniform.
The Kermalis requested Surefire weapon sights, EOTech Holographic tactical weapon sights, and Trijicon gun sights from Oyegun and asked him if he could send items to Dubai. Sikandar Kermali also asked Oyegun for armor piecing ammunition and sent Oyegun a text message asking for more "war stuff."
Oyegun pleaded guilty for his role in this case. His sentencing hearing is scheduled for May 28, 2013, before U.S. District Judge Charlene Honeywell.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Army Criminal Investigative Command, the General Services Administration, Office of Inspector General, and the Department of Commerce, Office of Export Enforcement. It will be prosecuted by Assistant United States Attorney Daniel W. Eckhart.
Rochester Men Indicted for Mail Fraud Software SchemeRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a three-count indictment charging Brian Wergin, 31, and Bohdan “Don” Luzecky, 45, both of Rochester, N.Y., with conspiracy to commit mail fraud and mail fraud. The charges each carry a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the indictment, the defendants placed false and fraudulent orders for free copies of replacement Intuit software, including TurboTax and Quicken, while employed by Sutherland Global Services. After receiving the software at addresses in Rochester, N.Y. and Atlanta, GA, the defendants sold the software online, including on eBay, to customers throughout the United States. The defendants then kept the proceeds for themselves.
The Indictment is the culmination of an investigation on the part of Inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Kevin Niland, Boston Division, and Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Richmond Man Convicted of Armed RobberyRead the Press Release
NEWPORT NEWS, Va. –Marcellus Edward Cheatham, III, 27, of Richmond, Va., was convicted today by a federal jury of brandishing a firearm during a crime of violence and being a felon in possession of ammunition. On the first day of trial, Tuesday, May 14, 2013, Cheatham pled guilty to robbing a Walgreens pharmacy, and possessing Oxycodone stolen in the robbery, with the intention of distributing or selling it. He proceeded to trial on the remaining charges.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and, Thomas Townsend Hampton Police Chief, made the announcement after the verdict was accepted by United States District Judge Henry C. Morgan, Jr.
Marcellus was indicted on November 15, 2012 on charges of robbery, felon in possession of a firearm and brandishing a firearm in relation to the robbery. A superseding indictment was returned in March 11, 2013, adding charges of felon in possession of ammunition and possession with intent to distribute Oxycodone.
According to court records, and evidence at trial, Cheatham planned and carried out the robbery of the Walgreens store at 919 W Mercury Boulevard in Hampton on August 21, 2012, after driving from Richmond to Hampton to commit the robbery. Cheatham entered the Walgreens, approached a pharmacist, and threw a demand note at him. When the pharmacist bent over to pick the demand note up Cheatham jumped over the counter and, brandishing a firearm, told the pharmacist to give him all his Percocet which is a brand of Oxycodone. After obtaining Percocet in a bag, Cheatham walked out of the pharmacy and returned to his residence in Richmond. Fingerprints found at the scene linked Cheatham to the crime. Agents executed a search warrant at Cheatham’s residence a few days later and recovered bottles of Percocet taken in the robbery.
This case was investigated by the ATF’s Washington Field Division and the Hampton Police Division. Managing Assistant United States Attorney Howard J. Zlotnick and Special Assistant United States Attorney Rebecca A. Staton from the Criminal Division’s Gang Unit prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Raleigh Co. Pedophile with Hundreds of Pictures, Videos of Child Pornography Sentenced to 5 Years in Federal PrisonRead the Press Release
Third pedophile sentenced this week in Southern District of W.Va.
BECKLEY, W.Va. – A 21-year-old Raleigh County pedophile who collected hundreds of images of child pornography was sentenced today to five years in federal prison followed by a lifetime of supervised release. Steven Russell Helton, of Beaver, Raleigh County, W.Va., previously pleaded guilty to child pornography charges in January. Helton’s sentencing was handed down today by United States District Judge Irene C. Berger in Beckley.
On December 29, 2010, Helton possessed on his computer more than 600 pictures and videos of children having sex or performing sexual acts. Helton is the third defendant to be sentenced on child pornography charges this week in the United States District Court for the Southern District of West Virginia.
In similar federal court cases this week, Tracey E. Cooper, 38, of Giles, Kanawha County, W.Va., was sentenced on Tuesday to three years in prison followed by 15 years of supervised release for possessing more than 600 images of child pornography and trading the images with other pedophiles over the Internet. Also, 54-year-old Charleston pedophile Jonathan Douglas Layne was sentenced on Wednesday to 10 years in federal prison on child pornography charges. Layne similarly collected more than 600 pictures and videos of children having sex or performing sexual acts.
Since January 2012, twenty-two defendants have been convicted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia. Twenty-one defendants have been sentenced to a total of more than 95 years (1153 months, to be exact) in federal prison. The remaining defendant currently awaits sentencing.
The West Virginia State Police Internet Crimes Against Children Task Force and the Federal Bureau of Investigation West Virginia Cyber Crimes Task Force conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
Princeton, N.J., Youth Soccer Coach Arrested, Charged with Possessing Images of Sexually Exploited ChildrenRead the Press Release
TRENTON, N.J. – A Princeton, N.J., youth soccer coach was arrested today after law enforcement officers searching his home allegedly discovered compromising, sexual movies of minor boys, U.S. Attorney Paul J. Fishman announced.
Jorge A. Roman, 48, is charged by criminal complaint with one count of possessing images of child pornography. Roman appeared this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was detained pending satisfaction of his bail conditions.
According to the criminal complaint filed today:
During a period lasting approximately five years, Roman ordered – on more than 40 occasions – films exploiting nude, minor boys that were marketed as “naturist films from around the world.” The orders included DVDs, photo CDs and downloadable links.
The count with which Roman is charged carries a maximum potential penalty of 10 years in prison and a $250,000 fine.U.S. Attorney Fishman credited postal inspectors, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s arrest.
The government is represented by Special Assistant U.S. Attorney Joseph Muoio of the U.S. Attorney’s Office in Trenton.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-202
Defense counsel: Assistant Federal Public Defender Lisa Van Hoeck
Roman Complaint
Oregon Man Indicted for Alleged Role in $50 Million Securities Fraud SchemeRead the Press Release
An Oregon man has been charged with allegedly orchestrating a $50 million securities fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Laura E. Duffy of the Southern District of California.
Bradley Holcom, 55, of Canby, Ore., was arrested Tuesday following his indictment in U.S. District Court for the Southern District of California. The indictment, which was filed on May 9, 2013, and unsealed late yesterday, charges Holcom with eight counts of mail fraud, four counts of wire fraud and one count of securities fraud.
According to the indictment, Holcom made false statements to investors in connection with the sale of approximately $50 million worth of promissory notes that he sold to more than 150 investors located throughout the United States from at least 2004 through 2010. The indictment alleges that Holcom solicited investors to provide funds for the development of raw land for commercial and residential purposes through an investment program he operated called the Trust Deed Investment Program. Holcom allegedly falsely told investors who purchased notes through the Trust Deed Investment Program that they would receive a lien on a specific piece of property he was developing and that the lien would be in first position, which would allow investors to directly foreclose on the underlying development property if Holcom was unable to repay the principal due under the notes.
Despite his statements to investors, Holcom allegedly never provided investors with a lien on the property he was purportedly developing and instead conveyed to investors a lesser interest that did not allow investors to directly foreclose on the property to protect their investment. In addition, the indictment alleges that while Holcom promised investors that their purported lien would be in first position, Holcom solicited investments for properties that he knew were already encumbered by first position liens.
According to the indictment, Holcom also allegedly sold properties that were supposedly serving as the security for investors without informing investors that the property they had financed for development was gone.
The indictment alleges that by approximately 2008, Holcom’s financial condition had seriously deteriorated, but he continued to solicit investors for new funds by making misrepresentations about his true financial condition and the manner in which he was using investor money.The maximum penalty for each wire fraud and mail fraud count is 20 years in prison. The count of securities fraud carries a maximum penalty of 25 years in prison.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov .
This case was investigated by the FBI’s Phoenix Division – Yuma Resident Agency. The case is being prosecuted by Trial Attorney Henry P. Van Dyck and Deputy Chief Daniel Braun of the Criminal Division’s Fraud Section, and by Assistant U.S. Attorney Stephen Clark of the U.S. Attorney’s Office for the Southern District of California. The department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.Oney Joseph Baker Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 16, 2013, before U.S. Magistrate Judge, ONEY JOSEPH BAKER, a 39-year-old resident of Great Falls, pled guilty to being a felon-in-possession of firearms and an armed career criminal. Sentencing has been set for August 16, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
On August 17, 1999, BAKER was sentenced in U.S. District Court to 51 months imprisonment after a jury found him guilty of conspiracy to distribute a controlled substance, possession with intent to distribute a controlled substance, and distribution of a controlled substance. The sentence of imprisonment was to be followed by three years of supervised release, wherein the court ordered BAKER to not own or possess a firearm.
On October 30, 2002, the Montana Eight Judicial District Court in Cascade County sentenced BAKER for the crime of felony criminal possession of dangerous drugs. Specifically, the court sentenced BAKER to three years to the Department of Corrections, and ordered Baker to not own, possess, or be in control of any firearms or deadly weapons.
On April 27, 2007, the Montana Eighth Judicial District Court in Cascade County sentenced BAKER for three felony convictions: assault with a weapon, theft, and robbery. The three convictions were from different cases, however, they were resolved in one global plea agreement and sentencing. The court sentenced BAKER to ten years imprisonment at the Montana State Prison. It also specifically ordered that he "shall not own, possess, or be in control of any firearms or deadly weapons."
On July 8, 2012, around 3:09 pm, Great Falls police officers were dispatched to Bobo's Casino for a report of an armed robbery. Officers arrived at Bobo's and spoke with an employee of the casino. The employee said she had been throwing trash away when a man entered the casino through the east side door. She turned toward the man and he pointed a small black handgun at her head. The man, described as a Native American male, approximately 5'9" and 160 pounds, yelled, "give me the money, bitch!" The employee emptied the money in her apron, which contained approximately $300 to $400 dollars in cash. The man became upset and said, "that's, not all there is, bitch!" The employee opened the cash register. The register contained only loose change and the man tossed the register in anger once he saw it did not contain any cash. He ran out of the same east side door, got into a green minivan, and drove off at a high rate of speed.
The manager of Bobo's Casino arrived shortly thereafter and pulled up the surveillance video of the time of the robbery. Officers observed that the robbery took place exactly as the employee had described. Detectives then began to investigate the robbery, and numerous tips were called in to the police department.
The next day a concerned citizen called the police and stated there was a suspicious green minivan parked on the street that he had not seen the previous evening. Officers responded to the report of the suspicious car. They believed the parked minivan matched the description of the minivan used in the robbery. After again viewing the surveillance video, the officers found the minivan in the video was clearly the minivan parked on the street.
Numerous other tips continued to be reported. The tips and further investigation indicated that BAKER had robbed the casino.
On July 18, 2012, law enforcement observed BAKER leave a house carrying a dark colored piece of rolling luggage and a blue duffel bag. BAKER was with two other individuals. Law enforcement began to follow the car once BAKER drove away. At one point, BAKER tried to conceal the car by driving into an alley. A Deputy U.S. Marshal turned on his top lights and siren to initiate a traffic stop and the car immediately fled at a high rate of speed through neighborhood streets.
The car stopped at an apartment complex and all three people fled on foot. Police caught the other individuals, but BAKER had fled through the neighborhoods. Law enforcement yelled at BAKER to stop running and he refused to stop. BAKER dropped the duffel bag near a garage as he ran. A neighbor recovered the duffel bag and provided it to police. Three detectives finally apprehended BAKER who had to be held down by all three men.
Detectives searched the duffel bag they recovered from BAKER, as well as the vehicle. The detectives recovered a Lorcin, model L380, .380 caliber semi-automatic pistol from the front passenger seat floorboard. This pistol had been in BAKER's possession, and it contained seven rounds of .380 caliber ammunition, including one round that was in the chamber. A search of the duffel bag revealed a fully loaded Mossberg, model 500A, 12 gauge pump action shotgun. Law enforcement seized five rounds of 12 gauge ammunition from the shotgun. Detectives also found 25 rounds of 20 gauge ammunition and 18 rounds of .380 caliber ammunition in the duffel bag.
BAKER faces possible penalties of a mandatory minimum of 15 years to life in prison, a $250,000 fine, and 5 years supervised release.
The investigation was a cooperative effort between the Great Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
New York Man Sentenced to Federal Prison for Role in Illegal Sports Betting RingRead the Press Release
The United States Attorney for the District of Connecticut today announced that MITCHELL ENGELSON, 63, of New York, N.Y., was sentenced yesterday by United States District Judge Vanessa L. Bryant in Hartford to 15 months of imprisonment, followed by three years of supervised release, for his involvement in an illegal sports bookmaking operation. ENGELSON also was ordered to forfeit $15,000 and pay a $5,000 fine.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, 20 individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden. The investigation, which included the use of court-authorized wiretaps, revealed that ENGELSON and others were involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
On February 13, 2013, ENGELSON pleaded guilty to one count of operating an illegal gambling business.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Jersey Man Sentenced to Six Years in Prison for Loan FraudRead the Press Release
PHILADELPHIA - Robert Coyle, Sr., 68, of Glassboro, New Jersey, was sentenced today to 72 months in prison for a loan fraud scheme that attempted to swindle more than $10 million from three banks. He pleaded guilty to two counts of loan fraud on October 1, 2012.
Coyle owned and/or rented more than 300 properties in Philadelphia and operated a real estate business out of 2332 E. Allegheny Avenue. Among his business entities were Landvest, LLP, Alivest, LLP, and Otay, LLC, to name a few. Through those business entities, Coyle borrowed more than $3 million from East River Bank (“ERB”) and more than $6.6 million from Republic First Bank (“RFB”). Polonia Bank was a 49% participant in the ERB loans after settlement. The purpose of the loans was purportedly to refinance existing loans, make improvements on some of the properties Coyle owned, and/or to allow Coyle to pursue other real estate opportunities. Coyle pledged approximately 71 properties to secure the ERB loans and approximately 117 other properties to secure the RFB loan. The banks anticipated that the loans would be repaid through rental income that Coyle was collecting and, if necessary, through the sale of the collateral properties. But Coyle had entered into various ownership agreements, including rent-to-own, with the occupants of several of the properties and he, therefore, did not hold good title for all of the properties he pledged. The loans that were submitted totaled more than $10 million.
In addition to the prison term, U.S. District Court Judge Stewart Dalzell ordered restitution in the amount of $6,480,302.65, five years of supervised release, a $200 special assessment, and a forfeiture money judgment of $10,106,200. The restitution amount includes individuals who had entered into rent-to-own, house swap, or similar ownership agreements with the defendant, or any entity controlled by the defendant, for properties that were pledged as collateral.The case was investigated by the Federal Bureau of Investigation and the Economic and Cyber Crimes Unit of the Philadelphia District Attorney’s Office. It was prosecuted by Assistant United States Attorney Mary Kay Costello.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525More Terrorism Sentences Imposed in Federal CourtRead the Press Release
MINNEAPOLIS—Earlier today in federal court, two Rochester, Minnesota, women were sentenced for providing material support to al-Shabaab, a U.S.-designated foreign terrorist organization. United States District Court Chief Judge Michael J. Davis sentenced Amina Farah Ali, age 36, to 240 months in federal prison, followed by supervised release for life, on one count of conspiracy to provide material support to a Foreign Terrorist Organization al-Shabaab and twelve counts of providing material support to al-Shabaab. Chief Judge Davis also sentenced Hawo Mohamed Hassan, age 66, to 120 months in federal prison, followed by supervised release for life, on one count of conspiracy to provide material support to a terroristic organization and two counts of making false statements to authorities. Both women, who are naturalized U.S. citizens from Somalia, were indicted on July 6, 2010, and were convicted on October 20, 2011. They were remanded into custody following sentencing.
After court, John Carlin, Acting Assistant Attorney General for National Security, said, “Today’s sentences and those handed down earlier this week in Minneapolis underscore our commitment to dismantle networks that route funding and fighters from the United States to the al-Shabaab terror organization. These cases are the result of an extraordinary, long-term effort by many agents, analysts, and prosecutors, who worked tirelessly to ensure that the defendants were brought to justice.”
U.S. Attorney B. Todd Jones added, “Today’s sentencings illustrate yet again the high priority this office has placed on national security cases. Terrorist groups, such as al-Shabaab, threaten the safety of Americans, both abroad and here at home. These two defendants provided financial support to this U.S.-designated terrorist organization and then impeded the federal investigation into that matter by lying to authorities. This misguided conduct is unacceptable. With the assistance of our investigative partners, it will continue to be prosecuted vigorously, as was done in this case.”
Evidence presented at their trial proved that the defendants provided support to al-Shabaab from September 17, 2008, through July 19, 2009. Specifically, Ali communicated by telephone with Somalia-based members of al-Shabaab who requested financial assistance on behalf of the group. Ali, Hassan, and others raised money for the terrorist organization by soliciting funds door-to-door in Somali neighborhoods in Minneapolis, Rochester, and other cities in the U.S. as well as in Canada. Ali often sought the money under false pretenses, contending that it was to help the poor. The defendants also obtained funds by participating in teleconferences that featured speakers who encouraged listeners to make donations in support of al-Shabaab.
For example, on October 26, 2008, Ali hosted a teleconference during which an unindicted co-conspirator told listeners that rather than helping the poor and needy in Somalia, they should give to the mujahidin. Ali and Hassan recorded $2,100 in pledges at the conclusion of that teleconference. Then, on February 10, 2009, Ali conducted a fundraising teleconference during which she told listeners to “forget about the other charities” and focus on “the jihad.”
J. Chris Warrener, Special Agent in Charge of the Federal Bureau of Investigation’s Minneapolis Field Office, which leads the Minnesota Joint Terrorism Task Force, the primary investigative entity in this case, said, “The sentencings today are a culmination of the efforts of the FBI’s Joint Terrorism Task Force and its commitment to stop terrorist-related activities in Minnesota. The FBI is pleased with the sentences that were handed down and will work with the community to deter others from engaging in this type of activity.”
Upon garnering funds, Ali and others transferred them to al-Shabaab through various money remittance companies. Ali and others used false names to identify the money’s recipients in an effort to conceal that the money was being provided to al-Shabaab. Ali directed no fewer than twelve money transfers to al-Shabaab.
On July 14, 2009, the day after the FBI executed a search warrant at Ali’s home, she telephoned her primary al-Shabaab contact, saying, “I was questioned by the enemy here . . . they took all my stuff and are investigating it . . . do not accept calls from anyone.”
As for Hassan, she made at least two false statements when questioned by federal agents about international terrorism.This case was the result of an investigation by the FBI’s Joint Terrorism Task Force. It was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen and Steven Ward of the Counterterrorism Section of the Justice Department’s National Security Division.
***Earlier today, Chief Judge Davis sentenced Adarus Abdulle Ali, age 29, of Columbia Heights, to 24 months in federal prison, followed by 36 months of supervised release, for making false statements while testifying before a federal grand jury in regards to a federal investigation known as “Operation Rhino.” That investigation focused on the disappearance of approximately 20 young, ethnic Somali men from the Twin Cities area during the past six years. The young men were recruited to fight against Ethiopian troops and Somalia’s internationally recognized Transitional Federal Government and later joined al-Shabaab. Ali was sentenced today on one count of perjury after being charged with that crime on October 27, 2009, and pleading guilty on November 2, 2009.
In his plea agreement, Ali admitted that on December 17, 2008, he testified to a federal grand jury that he did not know anyone who had traveled to Somalia with Kamal Said Hassan, who was sentenced earlier this week, when, in truth, Ali attended a meeting during which Hassan and others discussed going to Somalia to fight for al-Shabaab. In fact, Ali later admitted that he had driven Hassan and another individual to the Minneapolis-St. Paul International Airport for their flights to Somalia.
On Monday of this week, Chief Judge Davis sentenced Hassan, age 28, of Minneapolis, to 120 months in federal prison, followed by 20 years of supervised release, after he pleaded guilty to providing material support to the Foreign Terrorist Organization al-Shabaab and to a conspiracy to kill Ethiopian soldiers. He was charged with those crimes on February 18, 2009. Specifically, Hassan had traveled to Somalia, graduated from an al-Shabaab training camp, and participated in an al-Shabaab ambush of Ethiopian soldiers. On August 12, 2009, he was also charged with and later pleaded guilty to making false statements to the FBI. Those charges were based on the fact that Hassan lied to FBI agents about his continued involvement with al-Shabaab after completing his training in the al-Shabaab camp. (See Monday’s press release for more details.)
Through its investigation, federal authorities learned that groups of men first departed the United States to fight with al-Shabaab in Somalia in October and December of 2007, with others leaving in February 2008, August 2008, September 2008, November 2008, and October 2009. Upon arriving in Somalia, the men resided in al-Shabaab safe houses in Southern Somalia until constructing an al-Shabaab training camp, where they were trained from that point on. Senior members of al-Shabaab and a senior member of al-Qaeda in East Africa conducted those trainings.
In July 2008, men from Minneapolis as well as other Americans participated in an al-Shabaab ambush of Ethiopian troops. On October 29, 2008, one of those men, Shirwa Ahmed, who left Minneapolis in December 2007, detonated a vehicle-borne improvised explosive device as one of five coordinated suicide bombings in Bosaso and Hargeisa, Somalia. Ahmed is believed to have become the first American suicide bomber in Somalia. On May 30, 2011, Farah Mohamed Beledi, an indicted individual who departed Minnesota in October 2009, was killed at a checkpoint in Somalia as he attempted to detonate his suicide vest. To date, approximately 18 individuals have been charged through Operation Rhino, and eight have been convicted. The remaining ten are believed to be fugitives or have been killed in Somalia.
On Monday, Chief Judge Davis also sentenced Mahamud Said Omar, also known as Sharif Omar, age 46, of Minneapolis, to 240 months in federal prison, followed by life-long supervised release for conspiring to provide material support to a Foreign Terrorist Organization and conspiring to kill, kidnap, maim, and injure overseas. He was arrested in Netherlands in November of 2009 and extradited to the U.S. in August of 2011. In October of 2012, he was tried and convicted of these crimes. (See Monday’s press release for more details.)
On Tuesday of this week, Chief Judge Davis sentenced Omer Abdi Mohamed, age 28, of Minneapolis, to 144 months in federal prison, followed by 20 years of supervised release, after earlier pleading guilty to one count of conspiracy to provide material support to co-conspirators who intended to kill, kidnap, and main Ethiopian and Somali government troops. Abdifatah Yusuf Isse, Salah Osman Ahmed, and Ahmed Hussein Mahamud were each sentenced to 36 months in federal prison, followed by 20 years of supervised release, after earlier pleading guilty to related charges. Isse, Ahmed, and Mahamud cooperated with the United States and testified at the trial of Mahamud Said Omar. (For more details, see Tuesday’s press release.)
This case resulted from a long-term investigation conducted by the FBI’s Minneapolis Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Charles J. Kovats, John Docherty, and LeeAnn K. Bell, and William M. Narus of the Counterterrorism Section of the U.S. Department of Justice’s National Security Division.Michigan Businessman Pleads Guilty to Bank Fraud and Obstructing the Internal Revenue ServiceRead the Press Release
Mosii Mays Blackwell, of Detroit, Mich., pleaded guilty in the Eastern District of Michigan to obstructing the Internal Revenue Service (IRS) and bank fraud, the Justice Department and the IRS announced today.
According to the information and other documents filed in court, from April 2004 to December 2012, Blackwell failed to report to the IRS over $4.5 million in gross receipts generated by Detroit area businesses that he operated and controlled through various entities, such as the Detroit Manufacturing Group, Moci Jeans, Arzel Corp., Renaissance Contractors and Greentree Entertainment Group, LLC.
In addition, the information states that on November 5, 2004, Blackwell executed a bank fraud scheme by causing a loan application to be submitted to mortgage lender that falsely reported the applicant was employed by one of his business entities at a salary of $18,000 each month.
Blackwell faces a maximum potential sentence of 33 years in prison and a fine of up to $1,250,000.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked Special Agents of IRS – Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Mark McDonald and Christopher O’Donnell for prosecuting the case.Michael Larrieu Indicted for Failure to Register as Sex OffenderRead the Press Release
MICHAEL LARRIEU, age 25, a resident of New Orleans, Louisiana, was charged in an indictment by a Federal Grand Jury for failure to register as a sex offender, announced U. S. Attorney Dana J. Boente.
According to documents filed in federal court, in 2007, LARRIEU pled guilty to possession of child pornography in U. S. District Court, Eastern District of Louisiana. LARRIEU was sentenced to forty (40) months imprisonment to be followed by a life time supervised release term. As a result of LARRIEU’s conviction, he was required to register pursuant to the Sex Offender Registration and Notification Act.
Today’s indictment alleges that between February 27, 2013 and March 25, 2013, LARRIEU failed to comply with his sex offender registration requirements.
If convicted of the failure to register charge, LARRIEU faces a maximum term of imprisonment of ten (10) years, a fine of $250,000 and up to three (3) years of supervised release.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.gove/psc. For more information about internet safety, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals and prosecution of this case is being handled by Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
Michael J. Hebert Pleads Guilty to Receiving and Possessing an Unregistered FirearmRead the Press Release
MICHAEL J. HEBERT, age 62, a resident of Houma, Louisiana, pled guilty in federal court today before U. S. District Judge Eldon E. Fallon to receiving and possessing an unregistered firearm, announced U. S. Attorney Dana J. Boente.
According to court documents, HEBERT possessed a firearm, to wit: a Stag Arms Model Stag-15, .223 caliber semi-automatic rifle, serial no. 00229 having a barrel of less than 16 inches in length, not registered to him in the National Firearms Registration and Transfer Record.
HEBERT faces a maximum term of imprisonment of ten (10) years, a fine of $250,000 and three (3) years of supervised release following any term of imprisonment. Sentencing is scheduled for August 22, 2013.
The case was investigated by the United States Secret Service- New Orleans Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Terrebonne Parish Sheriff’s Office. The case is being prosecuted by Assistant U. S. Attorney Loan “Mimi” Nguyen.
(Download Factual Basis )
Mexican Citizen Encountered in Cumberland County Indicted for Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that a
34-year-old native and citizen of Mexico has been charged with illegal reentry into the United States.According to United States Attorney Peter J. Smith, Patricio Pedraza-Montes, age 34, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment by a federal grand jury in Harrisburg Wednesday.
The indictment alleges that Pedraza-Montes, an alien who has previously been arrested, and deported from the United States on August 5, 2003, did knowingly and unlawfully reenter the United States and was apprehended in Cumberland County, Pennsylvania.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is two years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Member of Marijuana Trafficking Organization Sentenced to 20 Years in Prison for Murder in Aid of RacketeeringRead the Press Release
Drug Courier Kidnapped and Dismembered in Bathtub
Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.
The sentence 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); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.
Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.
Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.
Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Member of Marijuana Trafficking Organization Sentenced to 20 Years in Prison for Murder in Aid of RacketeeringRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.
The sentence 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); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.
Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.
Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.
Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Member of Marijuana Trafficking Organization Sentenced to 20 Years in Prison for Murder in Aid of RacketeeringRead the Press Release
Drug Courier Kidnapped and Dismembered in Bathtub
Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.
The sentence 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); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.
Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.
Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.
Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
McLaughlin Man Sentenced on Manslaughter ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man convicted of Manslaughter was sentenced on May 13, 2013 by U.S. District Judge Charles B. Kornmann.
Jody Charles Red Bird, age 33, was sentenced to 18 months of imprisonment, 3 years of supervised release, restitution in the amount of $6,265.16 and a $100 special assessment to the Federal Crime Victims Fund.
Red Bird was indicted for by a federal grand jury in July of 2012. He pled guilty to the Indictment on January 2, 2013. The conviction stems from an incident on or about June 12, 2012 when the Defendant and others were drinking alcohol at Timber Lake and eventually decided to travel to McLaughlin.
Red Bird was driving the vehicle and while enroute to McLaughlin, he lost control of the vehicle and slid into the ditch abutting the opposing lane of traffic. The vehicle rolled several times and both Red Bird and the victim were ejected. As a result of the injuries sustained in the accident, the victim died.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Red Bird was immediately turned over to the custody of the U.S. Marshal.
McLaughlin Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man convicted of Assaulting a Federal Officer was sentenced on May 13, 2013 by U.S. District Judge Charles B. Kornmann.
Ronnie White Mountain, age 44, was sentenced to 18 months’ imprisonment, 1 year of supervised release and a $100 special assessment to the Federal Crime Victims Fund.
White Mountain was indicted for by a federal grand jury in June of 2012. He pled guilty to a Superseding Information on October 15, 2012. The conviction stems from an incident on February 1, 2012 near McLaughlin when a federal law enforcement officer observed White Mountain driving in an erratic manner. The officer followed White Mountain for a period of time, and ultimately activated his lights when the Defendant pulled into a private residence.
The officer made an attempt to determine if White Mountain was under the influence of alcohol but the Defendant refused to comply. When the officer attempted to arrest White Mountain, he became combative and the officer used his Taser. White Mountain removed the leads and charged into the officer.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
White Mountain was immediately turned over to the custody of the U.S. Marshal.
Mascoutah Man Charged with Bank RobberyRead the Press Release
A Mascoutah man, Michael W. Dawson, 33, was charged in federal court in East St. Louis, in a Criminal Complaint with Bank Robbery, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The alleged violation took place on May 15, 2013, in Washington County, Illinois.
The offense charged in the Complaint alleges that on or about May 15, 2013, Dawson by force, violence, and intimidation, did take from the person or presence of another, money belonging to and in the care, custody, control, management, and possession of the First National Bank of Okawville.
Bank Robbery carries a potential term of not more than 20 years in prison, a fine up to $250,000, or both, and a supervised release term of five years.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The information contained in the complaint was obtained through an investigation conducted by the Federal Bureau of Investigation and the Okawville Police Department. The case is being prosecuted by United States Attorney Stephen R. Wigginton and Assistant United States Attorney Deirdre A. Durborow.
Marion Prison Inmate Charged with EscapeRead the Press Release
David John Pederson, 55, an inmate at the Federal Prison Camp at Marion, Illinois, appeared today for arraignment in United States District Court in Benton on charges that he escaped from the custody of the Federal Bureau of Prisons, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Pederson was charged by a Federal Grand Jury on May 9th with leaving the extended limits of his confinement while on an unescorted transfer from FPC-Marion to a half-way house in Council Bluff, Iowa. This conduct, under Federal law, is deemed an escape. The indictment alleged that the offense occurred on March 26, 2013, in Jefferson County.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
At the time of the escape, Pederson was serving a 71 month sentence from the Southern District of Iowa for bank robbery. If convicted of the escape offense, Pederson faces up to an additional 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Following his arraignment, Pederson was ordered held without bond and was returned to the custody of the Illinois Department of Corrections, where he is serving a 20 year sentence for aggravated vehicular hijacking, to await further proceedings.
The case was investigated by the United States Marshal’s Service with the assistance of the Mt. Vernon Police Department and the Federal Bureau of Prisons.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Lottery Winner Loses Freedom, Sentenced to Prison for Evading TaxesRead the Press Release
PITTSBURGH - A resident of Fayette County has been sentenced in federal court to a year and a day of incarceration, a $3,000 fine, and full restitution of $132,445 on his conviction of tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Sherman W. Friend, of McClellandtown, Pa.
According to the information provided to the court, Friend, while driving his vehicle in southwestern Pennsylvania in December of 2009, happened to notice that a truck passed him at 11:27 a.m., and then noticed that another truck passed him that had "7211" on it. With $60 in cash in his pocket, he drove to West Virginia and hit for $1,600 on a slot machine. He decided that when he returned to Pennsylvania, he would play that number again. But how would he play that number? The answer came from a vow he made two years earlier in 2007, when Friend won yet another game of chance. In 2007 he entered a raffle sponsored by a Maryland fire department and won a new PT Cruiser convertible. From that raffle win he owed the IRS $8,000, but had to be chased to pay. When he finally settled with the IRS for $3,000, he vowed to never pay taxes on winnings again. So when Friend returned from West Virginia to play 1127, he purchased 208 fifty-cent lottery tickets, all betting on his new lucky number. It hit and he instantly won $520,000. Instead of simply claiming his winnings, Friend made good on his vow not to pay the IRS by not personally cashing in any of the 208 tickets. Instead he used about 40 people, most of whom were unemployed and destitute, to present the winning tickets for payment. He accompanied them to the lottery stations, waited outside and then paid most of them a fee of $250 per ticket. Many of these individuals, whose names were on record with the Pennsylvania Lottery as having received the lottery winnings, were later taxed in spite of having been told by Friend that they would suffer no consequences from "helping" him. Some of tickets were cashed in 2009 and the bulk of them were cashed in 2010. In 2009 Friend had $101,818 in income and owed $22,229 in taxes. In 2010 he had $378,779 in income and owed $110,216 in taxes.
Judge Schwab stated that even though Friend was 71 years-old and had health issues, his "criminal activity impacted others, and the sentence reflects the need for every citizen to pay their income taxes." Judge Schwab also stated that he had intended to fine Friend $30,000, but because Friend presented to the court at the sentencing hearing $93,981 in restitution, the fine imposed was $3000.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Sherman W. Friend.
Local Middle School Teacher Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
United States Attorney Laura E. Duffy announced today that Timothy James Hensley, a local middle school teacher at Bell Middle School, pled guilty today in federal court in San Diego to a five count indictment charging him with receipt and possession of child pornography. Hensley entered his guilty plea before United States Magistrate Judge Bernard G. Skomal, subject to final acceptance of the plea by United States District Court Judge Irma E. Gonzalez, at or before the time of sentencing.
As part of his guilty plea, Hensley admitted to receiving images of a minor female approximately 10 years of age engaged in sexually explicit conduct as well as to possessing an IMac computer and computer disks containing images depicting minors engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(2) and (4)(B). According to court records, several of these images depicted prepubescent minors engaged in sexually explicit conduct. The defendant was arrested by special agents with Homeland Security Investigations on January 15, 2013, following the execution of a federal search warrant at Hensley’s residence.
Hensley is scheduled to appear for sentencing before Judge Gonzalez on August 12, 2013, at 9:00 a.m.
This case stems from an investigation by the Department of Homeland Security, Immigration and Customs Enforcement's Homeland Security Investigations.
This case was brought as part of the Department of Justice’s Project Safe Childhood, and ICE's Operation Predator, both are nationwide initiatives launched 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." For more information about on Operation Predator, please visit www.ice.gov
DEFENDANT Criminal Case No. 13cr0393-IEG Timothy James Hensley SUMMARY OF CHARGESThree Counts: Title 18, United States Code, Section 2252(a)(2) (Receipt of Child Pornography) Maximum Penalties: Mandatory minimum 5 years’ incarceration to 20 years per count, mandatory minimum of 5 years’ incarceration, $250,000 fine, a minimum of 5 years and up to a lifetime of supervised release and registration as a sex offender
Two Counts: Title 18, United States Code, Section 2252(a)(4)(B) - Possession of Child Pornography Maximum penalties: 20 years in prison; a $250,000 fine; and a minimum of 5 years and up to a lifetime of supervised release and registration as a sex offender.
INVESTIGATING AGENCYImmigration and Customs Enforcement’s Homeland Security Investigations
Las Vegas Attorney Pleads Guilty to Mortgage Fraud CrimesRead the Press Release
LAS VEGAS, Nev. – Las Vegas attorney Stanley A. Walton, 54, has pleaded guilty to a charge brought against him in February 2011 that he participated in a scheme to obtain mortgage loans from financial institutions using straw buyers and false loan applications, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Walton pleaded guilty on Wed., May 15, 2013, to one count of conspiracy to commit bank, mail and wire fraud, and is scheduled to be sentenced by U.S. District Judge James C. Mahan on Aug. 20, 2013, at 10:00 a.m. Walton faces up to 30 years in prison and a $1 million fine, and has agreed to the forfeiture of $750,000 in money or property in addition to restitution.
According to the guilty plea memorandum, from about Sept. 22, 2004, through July 24, 2007, Walton conspired with others to fraudulently obtain residential mortgages in order to obtain proceeds from the mortgages for their personal use. Walton recruited straw buyers to purchase homes, while Walton intended to control the ownership interests of the homes, obtain proceeds from the mortgage loans for his own use, and later resell the house for a profit. Walton advised the straw buyers that he would use their names and credit to purchase the homes, and would split the profits with them when the homes were re-sold. Walton held himself out to the straw buyers as an attorney with knowledge and skill in these types of transactions, and intentionally did not disclose this plan or activity to the financial institution lenders. Walton made false statements in and caused co-schemers to make false statements in the straw buyers’ loan applications and supporting documents concerning the straw buyers’ income, assets, intent to occupy the homes, and other information. Walton also directed straw buyers to take steps to make it appear they intended to occupy the homes, such as placing utilities in their names. Walton caused loan proceeds to be paid to him by falsely claiming them as attorney’s fees, fraudulently diverting them through real estate agents, and fraudulently having payments made to his company, knowing that this information would be concealed from the lenders.
Walton and the co-schemers fraudulently purchased six homes in Henderson and three homes in Las Vegas. Walton admitted in his plea agreement that the loss caused by his criminal conduct was approximately $3.6 million.
Pamela Black, 65, a mortgage loan officer, also pleaded guilty to one count of conspiracy to commit bank, mail and wire fraud, and was sentenced on July 26, 2012, to time served, three years of supervised release, and ordered to pay approximately $1.2 million in restitution.
The investigation was conducted by the FBI, and the case is being prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Kathryn C. Newman.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Laredo Downtown Merchant Admits GuiltRead the Press Release
LAREDO, Texas – Ji Hui Chen, 43, a merchant in downtown Laredo, has pleaded guilty to trafficking in counterfeit goods, United States Attorney Kenneth Magidson announced today along with Vincent Iglio, acting special agent in charge of Homeland Security Investigations (HSI).
Chen, a U.S. legal permanent resident who was born in Taiwan, is the owner of J Design located in downtown Laredo.
HSI special agents met with Chen and conducted undercover buys of counterfeits goods at Chen’s place of business. Approximately 5,722 counterfeit items of numerous styles and brands of handbags, wallets, hats, sunglasses, shirts and luggage, all of which were counterfeit, were seized over the course of the investigation. Brands included Burberry, Cartier, Chanel, Chi, Coach, Dooney and Bourke, Gucci, Hermes, Jimmy Choo, Louis Vuitton, Michael Kors, Nike, Oakley, Polo, Prada, Rayban, Rolex, Tory Burch and Dolce & Gabanna.
“Intellectual property theft is not a victimless crime and should concern every American,” said Iglio. "Enforcing our nation's counterfeiting laws is about protecting our economy, while also shielding the unwitting consumer from sub-par and/or unsafe merchandise and upholding the intellectual property rights of those who play by the rules.”
At sentencing, to be set at a later date, Chen faces up to 10 years in federal prison as well as a $250,000 fine.
The case was investigated by HSI. Assistant U.S. Attorney Roel Canales is prosecuting the case.
Katrina Williamson Sentenced for Bank Fraud and Aggravated Identity TheftRead the Press Release
MOBILE, AL-- The United States Attorney, Kenyen R. Brown, announces that Katrina Duke Williamson was sentenced by United States District Court Judge Callie V. Granade today to 64 months confinement for embezzling almost $400,000.00 from a law firm in Foley, Alabama where she previously worked.
Williamson faced a two year mandatory minimum confinement sentence for the Aggravated Identity Theft violation under Title 18 USC §1028A, in which she plead guilty in November 2012. In addition, the advisory sentencing guidelines for the Bank Fraud offenses was 27 to 33 months, consecutive to the 2 year mandatory minimum on the Aggravated Identity Theft violation. However Judge Granade departed upward from the federal sentencing guidelines and imposed a sentence of 40 months on the Bank Fraud charges to run consecutive to the 2 year mandatory minimum on the Aggravated Identity Theft violation for a total of 64 months confinement. The Court also ordered Williamson to pay $396,699.47 to the victims of the fraud. The case was investigated by the Federal Bureau of Investigation.