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27 June 2013
East Liberty Man Pleads Guilty to Bank Fraud ChargesRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pa., pleaded guilty to bank fraud, United States Attorney David J. Hickton announced today.
Brandon Lee Price, 29, of East Liberty, pleaded guilty to four counts before United States District Judge Terrence McVerry.
According to information presented to the court, Price defrauded Citibank, N.A. by causing the bank to send account information of Citibank customer P.A. to Price who then tried to use the customer's funds.
Judge McVerry scheduled sentencing for Sept. 30, 2013, at 1:30 p.m. The law provides for a maximum total sentence of up to 30 years in prison, a fine of up to $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
District Women Sentenced to 30 Months in Prison for Two Bank Robberies in Northwest Washington-Defendant Threatened Tellers and Robbed Two Banks Within 20 Minutes-Read the Press Release
WASHINGTON - Mercedes Romero, 36, of Washington, D.C., was sentenced today to a 30-month prison term for robbing two banks in Northwest Washington on the same day, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Romero pled guilty in April 2013 to two counts of bank robbery. She was sentenced by the Honorable John D. Bates. Upon completion of her prison term, Romero will be placed on three years of supervised release. In addition, she must pay $1,596 in restitution to the two banks.
According to the government’s evidence, on Feb. 4, 2013, Romero robbed two banks within 20 minutes by producing demand notes that threatened bank tellers at the institutions.
First, at 9:10 a.m., she entered a PNC Bank in the 4200 block of Wisconsin Avenue NW, stopping briefly at the lobby counter, then proceeding to the teller window. She provided the bank teller with a demand note and a blank bank deposit slip. According to the teller, the demand note stated “give me all $100s, $50s, and $20s or I will kill you after work.” Romero then instructed the teller to return the demand note after receiving the cash. Later, an audit of the teller’s cash box determined that the teller provided the defendant with $1,048 in cash.
Then, at 9:28 a.m., Romero robbed the Bank of America in the 3400 block of Connecticut Avenue NW. She entered the bank, again stopping briefly at the lobby counter before proceeding to the teller’s window. Once again, she provided the teller with a demand note and a blank bank deposit slip. At that time, she also told the teller that she had a gun. The teller further recalled that the demand note stated “I have a gun. Give me all of your 20s and 50s. Act normal. Don’t sound the alarm. I’m going to kill you at the end of the day if you say anything.” A bank audit of the teller’s cash box determined that the teller provided the defendant with $548 in cash.
An investigation of the robberies was conducted and the defendant’s picture was displayed on television and print media. Romero was charged with the crimes on Feb. 21, 2013.
In announcing today’s sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier commended the actions of the FBI agents and MPD officers who participated in the investigation, arrest and prosecution. They also acknowledged the work of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
13-232Cullman Car Dealer Pleads Guilty to Violating Legal Protections for Active-Duty Service MembersRead the Press Release
BIRMINGHAM – A Cullman used car dealer pleaded guilty today for violating federal protections for active-duty military service members by refusing to reduce the loan interest rate and repossessing the vehicle he sold to a man who was later deployed overseas with the Alabama National Guard, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.CARL RALPH NUSS, 75, entered his guilty plea before U.S. Magistrate Judge Harwell G. Davis III to the two counts of the March indictment charging him with violating the Servicemembers Civil Relief Act. The act provides certain protections for service members called to active duty, including interest rate limitations and protection from civil suit, repossession and eviction.
Nuss entered his plea without a plea agreement with the government. He is scheduled for sentencing Sept. 12.
Nuss is owner of North Alabama Wholesale Autos in Cullman. In February 2011, he sold a 2002 Ford Sport-Trac to a 22-year-old man. The dealership sold the vehicle for $9,746 and, after a $2,200 down payment, financed the balance at 25 percent interest per year, according to the indictment.
In May 2012, the Guardsman, a private first class, was called to active duty in Afghanistan. In July 2012, according to the indictment, Nuss received a letter from the Guardsman requesting that the dealership reduce the interest rate on his car loan from 25 percent to 6 percent, as required by the relief act. Nuss never reduced the interest rate and, two days after receiving the letter, hired two men to repossess the guardsman's truck. The two men repossessed the vehicle without a court order, in violation of the Servicemembers Civil Relief Act, the indictment says.
The maximum penalty for each count is one year in prison and a $100,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney George A. Martin Jr. is prosecuting.
Crawfordville Resident Indicted for Firearm OffensesRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced today thatAlbert Hendrik Van der Merwe, 46, also known as “Henk Van der Merwe,” has been charged by a federal grand jury sitting in Gainesville, Florida for importing silencers under fraudulent invoices, for receiving unregistered silencers, and for possession of a machinegun. Trial will be held in Tallahassee, Florida on September 3, 2013.
Van der Merwe was arrested on a related complaint on June 5, 2013. That complaint alleged that three silencers were found in a package sent to Van der Merwe from South Africa, on about April 3, 2013. The invoice described the devices as “motorcycle dampeners used in motorcycle exhausts.” Agents delivered the package and then executed a search warrant. A nine millimeter Uzi carbine was seized because it was compatible with one of the silencers. The carbine was later determined to be fully automatic.
Federal law prohibits the receipt or possession of a machinegun or silencer, unless it is registered in the National Firearms Registration and Transfer Record. If convicted, Van der Merwe faces up to twenty years in prison for importing merchandise under a fraudulent invoice, and up to ten years in prison for receiving unregistered silencers and for possessing a machinegun. He also faces up to a three year term of supervised release and fines of up to $250,000 for each charge.
U.S. Attorney Marsh praised the joint efforts of Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, whose investigation led to the indictment in this case. Assistant U.S. Attorney Michael T. Simpson is prosecuting this case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.
Couple Indicted for Stealing Hundreds of Identities to Claim over $600,000 in False Tax RefundsRead the Press Release
ATLANTA – Justin Cody, also known as “Decatur Slim,” was arraigned on federal charges of conspiracy to commit theft of public funds, theft of public funds, and aggravated identity theft.
“Fraud schemes in which criminals file fraudulent tax returns and obtain fraudulent refunds using the stolen identities of innocent persons have become all too common in recent years,” said United States Attorney Sally Quillian Yates. “These defendants are charged with engaging in criminal activity that not only harmed the U.S. Treasury, but that also undermined financial security of the individuals whose identities were stolen.”“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system.”
“The indictment of Mr. Cody and Ms. Wilmore further illustrates the FBI’s efforts and commitment toward not only protecting public funds but protecting the public from those who would prey on them,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI will continue to work with its various law enforcement partners in combating identity theft and tax refund fraud.”
According to United States Attorney Yates, the charges and other information presented in court: From as early as February 2013 to May 2013, Justin Cody, also known as “Decatur Slim,” and Aeshia Wilmore participated in a scheme to defraud the Department of the Treasury by filing hundreds of fraudulent income tax returns using stolen identities. This is commonly called stolen identity refund fraud. Cody used the electronic filing identification numbers of at least two tax preparer businesses, as well as the stolen identification information of hundreds of victims, along with fake wage and withholding information, to prepare the fraudulent tax returns which claimed over $600,000 in tax refunds. After the refunds were processed, Cody had the refunds applied to blank prepaid debit cards that he and Wilmore used at various ATM machines throughout the Atlanta area.
Cody, 32, of Decatur, Ga., and Wilmore, 24, of Atlanta, Ga. were indicted by a federal grand jury on June 25, 2013. Cody has been detained. Wilmore’s arraignment date is pending. The conspiracy to commit theft of public funds carries a maximum sentence of five years in prison. Each substantive count of theft of public funds carries a maximum sentence of ten years in prison. Each of the aggravated identity theft charges carry a mandatory minimum two-year consecutive sentence to any other sentence imposed. Each count also carries a fine of up to $250,000. The United States is also seeking the forfeiture of all funds derived from or involved in this scheme.
The public is reminded that criminal charges are 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.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
Assistant United States Attorney Karlyn J. Hunter is prosecuting the case.
For further information please contact the U.S. Attorney’s 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.
Columbus Junction Man Sentenced to 3 Years of Probation for Copyright InfringementRead the Press Release
DAVENPORT, IA – On June 26, 2013, Arturo Eduardo Cantu, age 50, of Columbus Junction, Iowa, was sentenced to 3 years of probation for copyright infringement, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Judge James E. Gritzner also imposed a $3,000 fine.
In July of 2012, Cantu was encountered by law enforcement with over 500 DVDs for sale in a parking lot in Muscatine, Iowa. A subsequent search of Cantu’s residence revealed numerous computers, external hard drives, DVD burners, more than 8,000 blank DVDs, and approximately 1,000 illegally copied DVDs.
This case was investigated by Homeland Security Investigations, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Colorado U.S. Attorney's Office, in Cooperation with the Food and Drug Administration, Seizes over 1,600 Websites Selling Counterfeit or Misbranded MedicationRead the Press Release
DENVER – U.S. Attorney John Walsh announced today that the Colorado U.S. Attorney’s Office, as part of International Internet Week of Action, and in conjunction with Interpol’s Operation Pangea VI, obtained seizure warrants in the United States District Court for the District of Colorado in Denver for over 1,600 websites that were illegally selling counterfeit or misbranded drugs purported to be brand name pharmaceuticals. The seizure of those sites was executed by the Food and Drug Administration’s Office of Criminal Investigations last week.
Many of these websites operated as a part of an online network of pharmaceutical sites, which falsely purported that its websites were legitimate online pharmacies. Many of these sites falsely claimed to be hosted in Canada, while others falsely claimed to be affiliated with major U.S. pharmacy retailers by using the names of those retailers in the website names. The organizers also used bogus licenses and certifications in an attempt to convince U.S. consumers to purchase drugs that the sites falsely advertised as “brand name” and “FDA Approved.” Drugs purchased from these sites proved not to be from Canada, and they were neither brand name drugs nor were they FDA approved. The shipments originated from either India or Singapore. The FDA’s Office of Criminal Investigations Cybercrime Investigations Unit banner is now displayed on all seized 1,677 websites to alert consumers that the sites were identified as engaging in illegal activity. Below is a list of three of the website names seized:
www.canadianhealthandcaremall.com www.walgreens-store.com www.c-v-s-pharmacy.com
Medications offered and sold by these websites included the following: Avandaryl (a diabetes and heart drug), Celebrex (a non-steroidal anti-inflammatory product used to treat arthritis and to manage pain), Levitra and Viagra (erectile dysfunction drugs), and Clozapine (a severe schizophrenia medication).
“Ordering a prescription medication from a website that doesn’t require a prescription is dangerous,” said Colorado U.S. Attorney John Walsh. “That’s both because a doctor’s authorization and supervision is important, but also because overseas drug manufacturers may not be complying with FDA safety rules. The sites seized as a part of this important operation were selling drugs manufactured overseas without FDA supervision to people who didn’t necessarily have prescriptions, and who can’t be sure they are actually receiving the drug they thought they were ordering. Thanks to the hard work of the FDA Office of Criminal Investigations and the Assistant U.S. Attorneys from the District of Colorado, over 1,600 websites have been shut down ensuring that the public does not accidentally purchase a counterfeit or misbranded drug.”
“Protecting U.S. consumers is the agency’s top priority. We know that illegal online pharmacies put U.S. consumers’ health at risk,” said John Roth, Director of the FDA’s Office of Criminal Investigations. “While this is an ongoing battle in the United States and abroad, the agency nonetheless will not cease its criminal law enforcement and regulatory efforts and is pleased to participate in Operation Pangea to protect consumers and strengthen relationships with international partners who join the FDA in this fight.”
During Operation Pangea VI, the largest Internet-based action of its kind in the United States, the U.S. Attorney’s Office for the District of Colorado and the FDA targeted websites selling unapproved and potentially dangerous prescription medicines that could pose significant public health risks. These medicines should only be used with a valid prescription and under the supervision of a licensed health care provider. In addition, these online-purchased products bypass existing safety controls required by the FDA, and protections provided when used under a doctor’s care.
In addition to health-related risks, members of the public who used these websites also potentially exposed themselves to financial risks, including credit card fraud, identity theft or computer viruses. If you believe you have been a victim of these websites please visit www.fda.gov/oci.
The United States portion of this investigation was handled by the FDA’s Office of Criminal Investigations.
Assistant U.S. Attorneys Tonya Andrews, Ken Harmon and Judith Smith, chief of the Special Prosecutions Section, assisted in obtaining the seizure warrants.
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Buffalo Woman Indicted for Concealing a Person from ArrestRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a one count indictment charging Amber Pawlak, 21, of Buffalo, N.Y., with concealing a person from arrest. The charge carries a maximum penalty of five years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that in January 2013, law enforcement officers were attempting to locate defendant Clifton Jackson in order to execute a federal arrest warrant. According to the indictment, on three occasions, Pawlak denied knowing the whereabouts of Clifton Jackson when in fact she did have contact with the defendant.
In April 2013, Clifton Jackson was charged in a 66-count indictment with conspiracy to unlawfully use Social Security numbers, filing of false tax returns in 2011, and aggravated identity theft.
The indictment is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch, and the United States Postal Inspection Service under the direction of Kevin Niland, Inspector in Charge, Boston Division.
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.Buffalo Grandmother who Headed Family Drug Organization Pleads Guilty to Drug ConspiracyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Theresa Anderson, 56, of Buffalo, N.Y. pleaded guilty to conspiracy to distribute and distribution of crack cocaine before U.S. District Court Judge, Richard J. Arcara. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life and a $8,000,000 fine.
Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that between 2000 and February 2012, Anderson headed an illegal narcotics drug trafficking organization that controlled drug sales on Swinburne and Deshler Streets in the City of Buffalo. The defendant employed several family members to sell crack cocaine on a daily basis in the neighborhood. In order to monopolize narcotics sales in the area, the defendant threatened and intimidated rival narcotics traffickers and even purchased several homes in the area which were used for selling and storing the illegal narcotics.
"Just as Theresa Anderson and her family targeted and held a city neighborhood hostage, our Office, along with our law enforcement partners will continue to target any individual or groups of individuals who would consider similar behavior," said U.S. Attorney Hochul. "To the residents of all city neighborhoods, if you see something, please say something. By working together, law enforcement and community members can protect families and properties."
Anderson was arrested in February 2012 along with eight others: Steven Butler; Dion Anderson; Melvin Calhoun; Anquensha Hodge, a/k/a Anne Anderson; Wymiko Anderson, a/k/a Red; Toshia Hodge, a/k/a Toshia Anderson; Tajia Anderson, a/k/a Porkchop; and Leo Mellerson; all of Buffalo. Five of these are either children or grandchildren of Anderson. A sixth defendant is Anderson's husband and the two others are boyfriends of Andersons' daughters. Anderson is the fourth defendant to be convicted.
Sentencing is scheduled for October 8, 2013 at 12:30 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the New York State Police, under the direction of Major Michael Cerretto.Bricktown Gang Member Pleads GuiltyRead the Press Release
As Part of Plea Jarrell Williams Admits to Previously Unsolved Homicide
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announces that JARRELL WILLIAMS, age 22, of Syracuse, pled guilty today in U.S. District Court in Syracuse to an indictment which charged him and 13 others with conspiring to exploit their membership in the Bricktown Gang to engage in a pattern of racketeering activity which included multiple acts of murder, drug trafficking, and robbery. Eleven other defendants have already pled guilty and the charges against two others remain pending.
As part of his plea WILLIAMS admitted that the Bricktown Gang has operated within the City of Syracuse from at least 2000 through the present and that members of the Bricktown Gang: (1) maintain a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine, cocaine and marijuana; (2) protect that exclusive crack distribution territory with violence if necessary; (3) obtain drugs from suppliers in New York City and elsewhere; (4) project a very violent attitude and respond to violence with violence in order to preserve their stature in the gang community; (5) on occasion use hand signs, wear blue colored bandanas and have tattoos, all of which are intended to signify their gang membership; (6) use criteria such as willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carry and use firearms in connection with their gang activity.
WILLIAMS also admitted as part of his plea that he possessed handguns on a regular basis during the relevant time period. He also admitted that: (1) on September 4, 2007 he shot a rival gang member in the back in the 1000 block of Cannon Street; and (2) later that same evening he killed Anthony Ford and wounded a female victim in the head by firing several shots from a handgun at them. The Ford homicide was heretofore unsolved.
WILLIAMS is scheduled to be sentenced on October 30, 2013. He faces up to life imprisonment, a $250,000 fine, and up to five years of supervised release following any period of incarceration.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Troopers, and the United States Marshals Service. The Onondaga County District Attorney’s Office also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney, John M. Katko, who is handling the case, at (315) 448-0672.
Bank and Pharmacy Robber Sentenced to 44 YearsRead the Press Release
Raynard Versatile Crowe, 31, formerly of Hazel Park was sentenced yesterday to 535 months in federal prison, following his conviction on March 21, 2013 by a jury in Detroit on charges of bank robbery, pharmacy robbery, using a firearm during a crime of violence, felon in possession of a firearm and conspiracy, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge Robert D. Foley, III of the Federal Bureau of Investigation (“FBI”).
The sentence was handed down by United States District Judge Arthur J. Tarnow.
The evidence presented at trial established that Crowe, on parole for assault with intent to rob while armed, conspired with six other people to commit bank robbery and pharmacy robbery with firearms during the Spring and Summer of 2011. The crew robbed the Grosse Pointe Woods branch of Citizens Bank on May 18, 2011 and Ferndale Pharmacy on July 11, 2011.U.S. Attorney McQuade said, “Violent criminals who use guns can expect to face long prison sentences. Armed robberies risk a loss of life that we cannot tolerate.”
FBI Special Agent in Charge Foley said, "Violent criminals who use guns to threaten lives during robberies and other crimes will face severe penalties for their illegal acts. The FBI is committed to working with it's law enforcement partners to ensure the safety of our communities."The case was investigated by Special Agents of the FBI, the Warren Police Department, the Ferndale Police Department and the Grosse Pointe Woods Department of Public Safety. It was prosecuted by Assistant United States Attorney Kenneth Chadwell.
Aryan Brotherhood of Texas Gang Member Sentenced in <br /> Houston to 150 Months in Prison for Role in Racketeering ConspiracyRead the Press Release
A member of the Aryan Brotherhood of Texas (ABT) was sentenced today to serve 150 months in prison for his role in the ABT’s criminal enterprise, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
James Marshall Meldrum, aka “Dirty,” 40, of Dallas, was sentenced today by U.S. District Judge Sim Lake in the Southern District of Texas. In addition to his prison term, Meldrum was sentenced to serve five years of supervised release.
On Jan. 31, 2013, Meldrum pleaded guilty to one count of conspiracy to commit racketeering offenses (RICO).
According to court documents, Meldrum and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Meldrum and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
Meldrum admitted to being an ABT gang member and to trafficking in methamphetamine, as well as to severely beating a subordinate gang member.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Meldrum is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.
Aryan Brotherhood of Texas Gang Member Sentenced to 150 Months in Prison for Role in Racketeering ConspiracyRead the Press Release
HOUSTON – A member of the Aryan Brotherhood of Texas (ABT) was sentenced today to serve 150 months in prison for his role in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
James Marshall Meldrum, aka “Dirty,” 40, of Dallas, was sentenced today by U.S. District Judge Sim Lake in the Southern District of Texas. In addition to his prison term, Meldrum was sentenced to serve five years of supervised release and was ordered to pay a $2000 fine.On Jan. 31, 2013, Meldrum pleaded guilty to one count of conspiracy to commit racketeering offenses.
According to court documents, Meldrum and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Meldrum and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
Meldrum admitted to being an ABT gang member and to trafficking in methamphetamine and severely beating a subordinate gang member.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Meldrum is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Area Businessman Sentenced for Selling SpiceRead the Press Release
BOISE –William Oldenburg, 66, of Eagle, Idaho, was sentenced today in United States District Court to three years of probation for conspiracy to distribute a controlled substance analogue and conspiracy to structure transactions, U.S. AttorneyWendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Oldenburg to forfeit $580,000, and pay a $5,000 fine. Additionally, Oldenburg will spend the next eight weekends in the Ada County Jail, to be followed by six months home detention, and 200 hours of community service. He pleaded guilty to the charge on March 25, 2013.
According to court documents, Oldenburg is the owner of Gary's Dream, LLC, which operates Boise Beverage and Tobacco and The Pit Stop Express. The businesses, commonly referred to as “head shops,” are engaged in the unlawful sale of drug paraphernalia to drug users and drug traffickers. Items of drug paraphernalia were typically sold at the businesses under the guise of “tobacco products,” or with claims of other “legitimate” uses. According to the indictment, Oldenburg referred to much of the drug paraphernalia as “smoking accessories,” to be used only to smoke tobacco. However, virtually all of the smoking devices sold by Oldenburg were commonly used to ingest marijuana, hashish, and/or other illegal drugs, not tobacco.
Oldenburg admitted that beginning on March 1, 2011, and continuing through May 10, 2012, he knowingly conspired with other persons to distribute and possess with intent to distribute at least 40 kilograms of a mixture and substance containing a detectable amount of AM-2201 and UR-144, Schedule I controlled substance analogues, knowing the substance was intended for human consumption. Oldenburg further admitted that between at least July 2011, and November 2012, he conspired with others to conduct a series of financial transactions involving the proceeds of the unlawful activity, in order to evade reporting requirements under federal law.
Co-defendant Donovan Johns, 38, of Meridian, Idaho, pleaded guilty on May 14, 2013, to conspiracy to sell, offer for sale, and transport drug paraphernalia and conspiracy to structure transactions. Sentencing is set for July 29, before Judge Lodge.
Oldenburg and Johns are among the 17 people charged last year as part of Operation Not for Human Consumption, which targeted illegal sales of drug paraphernalia and “spice” at 13 Treasure Valley businesses. According to search warrant affidavits, nine of the 13 businesses were openly selling “spice,” a substance that tested positive for AM-2201. The DEA has determined that AM-2201 is a controlled substance analogue. “Spice,” a synthetic form of cannabis, which is a psychoactive herbal and chemical product that, when consumed, mimics the effects of cannabis. In the spring of 2011, the Idaho Legislature criminalized the sale of “spice” under state law. In March of 2011, the Drug Enforcement Administration placed five synthetic cannabinoids into Schedule I of the Controlled Substances Act. It is against federal law to sell or offer for sale any paraphernalia that is primarily intended or designed for drug use, regardless of whether the seller advises their customers that the paraphernalia is for tobacco use only. The businesses are commonly referred to as “head shops.”
Operation Not for Human Consumption includes the cooperative law enforcement efforts of the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Boise Police Department, Ada County Sheriff's Office, Canyon County Sheriff's Office, Nampa Police Department, Meridian Police Department, and the Canyon County Prosecutor's Office. The U.S. Marshals Service and Idaho State Police provided assistance.
Acoma Pueblo Man Sentenced to Forty-One Months in Federal Prison for Child Sex Abuse ConvictionRead the Press Release
ALBUQUERQUE –Terrence Joseph Kie, 34, a member and resident of the Acoma Pueblo, N.M., was sentenced yesterday to 41 months in federal prison to be followed by seven years of supervised release for his child sexual abuse conviction. Kie also will be required to register as a sex offender when he completes his prison sentence.
Kie’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of the BIA’s Office of Justice Services, and Chief Vincent Mariano of the Acoma Tribal Police Department.
Kie was charged with the child sex abuse in an indictment that was filed In Sept. 2012. He was arrested on Sept. 13, 2012, and has been in federal custody since that time. On Dec. 17, 2012, Kie pleaded guilty to abusive sexual contact with a child under the age of 12 and admitted that on Aug. 9, 2011, he had unlawful sexual contact with a nine-year-old child by placing his hand on the child’s clothed genitalia and touching the child’s clothed genitalia. Kie admitted that this unlawful conduct occurred on Acoma Pueblo.
The case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Acoma Police Department, and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
<br /> El Departamento de Justicia Llega a un Acuerdo con Minorista Nacional para Solucionar Prácticas Injustas en el Empleo Relacionadas a Inmigración<br />Read the Press Release
WASHINGTON– El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Macy’s Retail Holdings y otras compañías de Macy (Macy’s) que resuelve los alegatos que la empresa violó la disposición contra la discriminación de la Ley de Inmigración y Nacionalidad (INA). Macy’s cuenta con aproximadamente 180.000 empleados en los Estados Unidos.
La investigación se inició sobre la base de varias llamadas a la línea directa del trabajador de la Oficina del Consejero Especial Para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC) del Departamento de Justicia en lo que se refiere a las prácticas de empleo injustas relacionadas potencialmente con la inmigración. En base a esta investigación, el Departamento determinó que Macy’s está involucrado en prácticas documentales injustas contra empleados inmigrantes autorizados para trabajar durante el proceso de re-verificación de elegibilidad de empleo y que algunos empleados, en consecuencia, han sido afectados económicamente a través de la pérdida de su puesto de trabajo o de su antigüedad en el puesto. La disposición contra la discriminación de la INA prohíbe a los empleadores tratar a los trabajadores de manera diferente en el proceso de verificación o re-verificación de elegibilidad de empleo al exigir documentos adicionales o diferentes, o limitando la elección de documentos del trabajador, en base a un estado migratorio o a un origen nacional.
Según el acuerdo, Macy’s se compromete a revisar sus políticas y procedimientos de re-verificación de elegibilidad de empleo, y a capacitar a su personal de recursos humanos en todo el país en lo relativo a la disposición contra la discriminación de la INA. Macy’s también se compromete a pagar 175.000 dólares en multas civiles a los Estados Unidos, y a crear un fondo de devolución de 100.000 dólares para compensar a cualquier trabajador que haya perdido sus salarios o su antigüedad en el puesto como resultado de dichas prácticas. En virtud de este acuerdo, las prácticas de verificación de elegibilidad de empleo de Macy’s estarán sujetas a la supervisión del Departamento y deberán presentar sus informes correspondientes por un período de dos años.
"Los empleadores deben asegurarse de que están siguiendo los procedimientos correctos durante la re-verificación de autorización de empleo de los no-ciudadanos americanos ", dijo Gregory Friel, Asistente del Representante del Procurador de la Nación en la División de Derechos Civiles. "Dado el tamaño de su fuerza de trabajo, los empleadores nacionales están particularmente obligados a evaluar sus políticas y prácticas y a hacer uso de la asistencia técnica gratuita de la División para asegurar el cumplimiento de la disposición contra la discriminación de la INA."
OSC es responsable de hacer cumplir la disposición contra la discriminación de la INA. El caso fue manejado por Liza Zamd y Ronald Lee, abogados litigantes de la OSC. Para obtener más información acerca de la protección contra la discriminación en el empleo bajo las leyes de inmigración, llame a la línea directa del trabajador OSC, 1-800-255-7688 (1-800-237-2525, TTY para personas con problemas de audición), llame a la línea directa del empleador de la OSC, 1-800 -255-8155 (1-800-362-2735, TTY para personas con problemas de audición), inscríbase en un seminario gratuito en www.justice.gov/about/osc/webinars.php, escriba a [email protected] o visite la página web www.justice.gov/crt/about/osc.
15 Individuals Indicted for Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – Yesterday a federal grand jury in the District of Puerto Rico returned an indictment against 15 defendants charged with conspiracy to possess with intent to distribute cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The defendants used the United States Postal Service to send narcotics and money derived from the drug trafficking activities via air mail.
According to the indictment, the object of the conspiracy was to possess with intent to distribute cocaine in Puerto Rico for further distribution in the continental United States, specifically New York and Connecticut, for significant financial gain and profit. It was part of the manner and means of the conspiracy that the defendants and their associates would conceal kilogram quantities of controlled substances in different containers to include light bright toy boxes. The defendants and their associates would travel, or cause others to travel, from Puerto Rico to the continental United States, using commercial airlines carrying kilogram quantities of controlled substances hidden in suitcases.
The defendants are: Elving Madera-Rivera, aka “Binchi;” Francisco Colón-Soto, aka “Moyo;” José Oliveras, aka “Topo,” José Rivera-Ramírez, aka “Berto Risa,” Noel Acevedo-Rosado, aka “El Paramédico,” Raul Alemañy-Minguela; Eddie Bonilla-Bernard, aka “Bolillo;” Alexis Pinzon-Galindo, aka “Pinzon;” Agatha Casanova-Matias; Llamilet Seda-Ortiz, aka “La Gorda;” Dacmarie Dàvila-Marrero, aka “Dagma;” Juan Luis Cardona-Cruz; Wilson Martinez-Troche, aka “Chelope;” Mayra Enid Miranda-Casiano; and Shenary Torres-Morales.
According to the indictment, the defendants are facing a narcotics forfeiture allegation of one million dollars. The case is being prosecuted by Assistant U.S. Attorneys Carlos R. Cardona. If convicted, the defendants could face from 10 years up to life in prison.
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Today we have stopped a criminal organization from bringing significant quantities of cocaine into our communities in the West side of Puerto Rico as well as into the continental United States. The result of this operation is nothing short of significant and it underscores what our citizens expect from law enforcement: keep drugs out of our neighborhoods.”
“This successful investigation is a great example of the results that are achieved when federal law enforcement, state, and the private sector work together in a combined effort. Transporting cocaine by mail, car, and airplanes or on foot leads to only one destination, prison,” said DEA Special Agent in Charge Vito S. Guarino. “We will not allow traffickers to turn our transportation routes and mail services into cocaine highways. As this case demonstrates it’s a dead end.”
USPIS
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation, responsible for importing cocaine and heroin into Puerto Rico. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
26 June 2013
Woodmere Man Pleads Guilty to Defrauding Investors of $62 Million in A Real Estate Ponzi SchemeRead the Press Release
Earlier today, Gershon Barkany pleaded guilty at the federal courthouse in Central Islip, New York, to wire fraud. The proceeding took place before United States Magistrate Judge Arlene R. Lindsay. When sentenced, Barkany faces up to 20 years in prison. As part of his plea agreement with the government, Barkany agreed to a $62 million money judgment payable to the United States.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
According to court filings and facts presented during the plea proceeding, between December 2009 and March 2013, Barkany induced seven investors to give him approximately $62 million by promising to use their money in “risk-free” deals to purchase, and then immediately re-sell at a profit, commercial real estate properties located in New York City and New Jersey. However, no such deals existed and the investors lost their entire investments.
In one instance, Barkany approached an investor he knew from the community and who placed his trust in the defendant. Barkany preyed on that trust to convince the investor to invest $46.5 million that was supposed to be used as a down payment to purchase an office building in Manhattan, a hotel in Atlantic City and properties in the Bronx and Queens. Barkany explained that he would find a buyer for those properties who would pay a higher price before the actual closing, resulting in a profit for Barkany and the investor. Barkany assured the investor that the real estate deals were risk free because if Barkany was unable to find a buyer before the closing, the owner of the properties would refund their monies. In fact, those real estate deals did not exist and the investment was not refunded.
On March 28, 2013, FBI special agents arrested Barkany. Shortly thereafter, two additional victims contacted the FBI and advised that they too had been defrauded by Barkany. As he had done with the other victims, Barkany induced those investors to give him approximately $7.5 million by promising to use their money in a “risk-free” deal to purchase, and then immediately re-sell at a profit, an office building located on 53rd Street in Manhattan. That deal also did not exist. In furtherance of that scheme, Barkany created fictitious documents, including a purchase agreement purportedly signed by the seller of the office building and an escrow agreement allegedly signed by a third-party escrow agent. Neither the seller of the property nor the third-party escrow agent signed or entered into those agreements. Barkany created those documents to deceive the victims.
As part of his Ponzi scheme, Barkany diverted some of the funds he received to pay investors whom he had defrauded earlier. The defendant also lost some of the funds in gambling and otherwise used the money for his own benefit.
“The defendant bilked investors out of funds that he led them to believe were to be invested in safe real estate deals. Instead, he was paying investors to keep his Ponzi scheme afloat and to gamble,” stated United States Attorney Lynch. “Barkany rolled the dice that his brazen greed and dishonesty would go unnoticed. That gamble did not pay off. Today’s conviction sends a clear message that this office is committed to vigorously investigating and prosecuting individuals who are responsible for committing financial crimes.”
FBI Assistant Director-in-Charge Venizelos stated, “Barkany has admitted to a multimillion-dollar real estate swindle where he convinced wealthy investors they were buying no-risk properties. Unbeknownst to his victims, what they were really buying were not brick-and-mortar buildings, but the smoke-and-mirror fantasy of Barkany’s fraudulent sales pitch.”
The government’s case is being prosecuted by Assistant United States Attorneys Christopher Caffarone and Diane Beckmann.
The Defendant
GERSHON BARKANY
Age: 29
Residence: Woodmere, NYWitness Tampering Lands Convicted Sex Trafficker More Prison TimeRead the Press Release
HOUSTON – A Houston man, already convicted and sentenced in a large domestic sex trafficking case, has been handed additional federal prison time for witness tampering, United States Attorney Kenneth Magidson announced today.
Andre McDaniels, 43, was convicted along with five others in Operation Total Exposure, the largest domestic sex trafficking case prosecuted in the Southern District of Texas. In that case, McDaniels pleaded guilty to conspiracy to commit sex trafficking, coercion and enticement and two counts of transportation and later sentenced to a total of 96 months in federal prison. On Sept. 25, 2012, he pleaded guilty to witness tampering in relation to that case.
Today, U.S. District Judge Lee H. Rosenthal handed McDaniels a sentence of 78 months, which will be served consecutively to his previous sentences for a total of 174 months confinement. At the hearing, additional evidence was presented including that McDaniels attempted to have an individual pay witnesses to alter their testimony and to gather personal information about federal agents and prosecutors. In handing down the sentence, Judge Rosenthal noted that the offense committed by McDaniels was an attempt to compromise the integrity of the judicial system and the sentence should reflect the seriousness of that conduct.
McDaniels and the others were charged and later convicted of operating commercialized sex businesses often disguised as legitimate businesses and recruited women and minors as young as 16 to work as prostitutes and perform commercial sex acts. The women were routinely beaten and threatened to instill fear in them and insure their obedience. Some of the co-conspirators also had sexual intercourse with the minor females. Any proceeds the women received as a result of their sexual encounters where taken by the members of the enterprise, rendering them dependent upon the defendants for basic necessities.
On or about Jan. 6, 2012, McDaniels met with an undercover agent from the FBI posing as a private investigator. McDaniels intentionally and knowingly solicited the agent to tamper with, coerce and intimidate fact witnesses whom the government anticipated on calling to testify in regards to the sex trafficking case. Specifically, McDaniels instructed the agent to pay money to witnesses in an effort to influence their testimony or possibly make them unavailable to testify.
If witnesses would not accept these payments, McDaniels instructed the agent to conduct surveillance on the witnesses in order to record and gather compromising personal information that could be used to influence their testimony. Further, McDaniels also instructed the agent to conduct investigations into the personal lives of law enforcement agents and federal prosecutors.
McDaniels has been and will remain in custody.
The tampering was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Craig M. Feazel and John D. Jocher. Assistant United States Attorney Sherri Zack prosecuted McDaniels on the sex trafficking charges.
Washington County Woman Admits Purchasing Weapon for A Drug-Addicted FelonRead the Press Release
PITTSBURGH - A resident of Eighty Four, Pa., pled guilty to violating federal firearms laws, United States Attorney David J. Hickton announced today.
Linda Daugherty, 32, was convicted of providing false information to a federal firearms licensee by indicating that she was the buyer of a Smith & Wesson .38 caliber revolver when she was actually acting on behalf of someone else. Daugherty bought the firearm for, and provided the firearm to, an acquaintance who was a convicted felon and who was addicted to a controlled substance and could not lawfully purchase or possess firearms.
Sentencing is scheduled to occur on Oct. 8, 2013, at 10 a.m., in the courtroom of United States District Judge Cathy Bissoon.
The law provides for a maximum total sentence of up to five years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania State Police investigated this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Virginia Man Sentenced to 12-Year Prison Term for Distribution of Child PornographyRead the Press Release
WASHINGTON - James Wendell Brown, 51, of Warrenton, Va., was sentenced today to 12 years in prison for distribution of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI's Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Brown pled guilty to the charge in January 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Richard J. Leon. Upon completion of his prison term, Brown will be placed on 20 years of supervised release.
According to the government's evidence, on March 5, 2012, Brown contacted a man he believed to be the father of an under-aged girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next few days, Brown engaged in online e-mail and instant message conversations with the undercover officer. During this period of time, Brown sent the undercover officer three images of child pornography which depicted adult men engaged in sexual acts with children. During the course of his conversations with the undercover officer, Brown acknowledged having sexually abused young children in the past. Brown has been in custody since his arrest on March 28, 2012.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Assistant U.S. Attorneys David Last and Ari Redbord, who prosecuted the case.
13-227Utah Resident Charged with Submitting False Claims for Tax Refunds and Ficticious Financial InstrumentsRead the Press Release
A federal grand jury in Salt Lake City today returned an indictment charging Paul Ben Zaccardi, a resident of Sandy, Utah, with five counts of presenting false, fictitious and fraudulent claims to the United States, and three counts of passing fictitious obligations.
According to the indictment, on or about Aug. 20, 2008, Zaccardi submitted five false claims to the United States by filing income tax returns for the years 1996 through 2000, seeking refunds to which he was not entitled. Altogether, Zaccardi sought refunds totaling $1,510,251. The indictment further charges that Zaccardi submitted fictitious obligations to the United States that purported to pay his tax debts. The first of these was submitted in July 2008 and claimed to be valued at $5,000,000; the second and third were submitted in November of 2009 and claimed to be valued at $300,000,000 each.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Zaccardi faces a maximum of 100 years in prison.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Michael Romano and Stuart Wexler.
Related Materials:
United States v. Paul Ben Zaccardi
Indictment (PDF)Utah Resident Charged with Submitting False Claims for Tax Refunds and Ficticious Financial InstrumentsRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned an indictment Wednesday charging Paul Ben Zaccardi, a resident of Sandy, Utah, with five counts of presenting false, fictitious and fraudulent claims to the United States, and three counts of passing fictitious obligations.
According to the indictment, on or about Aug. 20, 2008, Zaccardi submitted five false claims to the United States by filing income tax returns for the years 1996 through 2000, seeking refunds to which he was not entitled. Altogether, Zaccardi sought refunds totaling $1,510,251. The indictment further charges that Zaccardi submitted fictitious obligations to the United States that purported to pay his tax debts. The first of these was submitted in July 2008 and claimed to be valued at $5,000,000; the second and third were submitted in November of 2009 and claimed to be valued at $300,000,000 each.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Zaccardi faces a maximum of 100 years in prison.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Michael Romano and Stuart Wexler.
Utah Man Previously Charged with Filing False Claims for Tax Refunds Indicted for Additional Charge of Passing a Fictitious Financial InstrumentRead the Press Release
A federal grand jury in Salt Lake City today returned a superseding indictment charging Dick Reid Jenkins, a resident of Heber City, Utah, with 18 counts of presenting false, fictitious and fraudulent claims to the United States and one count of passing a fictitious obligation.According to the superseding indictment, in September 2008, Jenkins filed a false 2007 income tax return for himself which claimed an income tax refund of $402,920. Then, in October 2008, Jenkins filed a false amended 2004 income tax return, which claimed an income tax refund of $434,261. Both false claims were based on the use of false Form 1099-OID, Original Issue Discount. In addition to his own false returns, from September 2008 through February 2009, Jenkins caused 16 other false federal income tax returns to be filed on behalf of other individuals. These other false tax returns also used false Forms 1099-OID and claimed federal income tax refunds totaling $8,407,623. The indictment further alleges that Jenkins was licensed by the state of Utah as a certified public accountant at all times relevant to these charges.
Additionally, according to the superseding indictment, on June 30, 2008, Jenkins passed and presented a false and fictitious financial instrument to the U.S. Department of the Treasury in the amount of $300,000,000.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted, Jenkins faces a statutory maximum penalty of 25 years in prison for each count of submitting fictitious obligations to the United States and five years in prison for each count of presenting false, fictitious, and fraudulent claims to the United States.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Stuart Wexler and Michael Romano.
Utah Man Previously Charged with Filing False Claims for Tax Refunds Indicted for Additional Charge of Passing A Fictitious Financial InstrumentRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned a superseding indictment Wednesday charging Dick Reid Jenkins, a resident of Heber City, Utah, with 18 counts of presenting false, fictitious and fraudulent claims to the United States and one count of passing a fictitious obligation.
According to the superseding indictment, in September 2008, Jenkins filed a false 2007 income tax return for himself which claimed an income tax refund of $402,920. Then, in October 2008, Jenkins filed a false amended 2004 income tax return, which claimed an income tax refund of $434,261. Both false claims were based on the use of false Form 1099-OID, Original Issue Discount. In addition to his own false returns, from September 2008 through February 2009, Jenkins caused 16 other false federal income tax returns to be filed on behalf of other individuals. These other false tax returns also used false Forms 1099-OID and claimed federal income tax refunds totaling $8,407,623. The indictment further alleges that Jenkins was licensed by the state of Utah as a certified public accountant at all times relevant to these charges.
Additionally, according to the superseding indictment, on June 30, 2008, Jenkins passed and presented a false and fictitious financial instrument to the U.S. Department of the Treasury in the amount of $300,000,000.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted, Jenkins faces a statutory maximum penalty of 25 years in prison for each count of submitting fictitious obligations to the United States and five years in prison for each count of presenting false, fictitious, and fraudulent claims to the United States.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Stuart Wexler and Michael Romano.
United States Reaches Agreement with Suncoke Energy Resolving Clean Air Violations at Plants in Illinois and OhioRead the Press Release
SunCoke Energy Inc. and two of its subsidiaries have agreed to pay $1.995 million to resolve alleged Clean Air Act violations of emission limits at the Gateway Energy and Coke plant in Granite City, Illinois, and the Haverhill Coke plant in Franklin Furnace, Ohio, announced the Justice Department and the U.S. Environmental Protection Agency.
The companies will also spend $255,000 on a lead abatement project in southern Illinois to reduce lead hazards in owner-occupied low income residences with priority given to families with young children or pregnant women. The companies will pay a penalty of $1.27 million to the United States, $575,000 to the State of Illinois, and $150,000 to the State of Ohio. Illinois and Ohio are co-plaintiffs in this case.
“This settlement is good news for communities in Illinois and Ohio, who will benefit from these substantial reductions in harmful air pollution and enjoy cleaner, healthier air to breathe for many years to come,” said Acting Assistant Attorney General Robert G. Dreher. “It also reflects our continuing commitment to protecting the people and environment of the United States through the vigorous enforcement of the Clean Air Act.”“The substantial upgrades required by today’s settlement will reduce air pollution that can harm public health and the environment,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA is committed to reducing toxic air pollution from sources that have an impact on the health of communities.”
“This settlement provides a long-term solution to protect air quality and control emissions,” said Ohio Attorney General Mike DeWine. “We will continue to work with other agencies to protect Ohio families from environmental harm.”
“The facility upgrades and stricter emission limits mandated in this settlement will dramatically reduce harmful pollution levels and improve overall air quality in the communities surrounding these facilities,” said Illinois Attorney General Lisa Madigan.
In addition, the companies will spend approximately $100 million at the two heat recovery coking facilities to install equipment known as heat recovery steam generators (HRSGs) to ensure that hot coking gases are routed to pollution control equipment and not vented directly into the atmosphere. If future emissions exceed the requisite threshold at a third facility, in Middletown, Ohio, then SunCoke will have to install an additional HRSG at that facility to prevent uncontrolled venting of coking gases. They will also spend an estimated $700,000 on equipment to continuously monitor sulfur dioxide (SO2) emissions at the Gateway and Haverhill facilities.
Further, the companies have agreed to accept more stringent emission limits than required in their current permits for SO2 and particulate matter and, in the case of the Gateway Facility, lead. SO2 contributes to acid rain and exacerbates respiratory illness, particularly in children and the elderly. Exposure to particulate pollution has been linked to health impacts that include decreased lung function, aggravated asthma and premature death in people with heart or lung disease.The primary violations alleged relate to excessive bypass venting of hot coking gases directly to the atmosphere, resulting in excess SO2 and particulate matter emissions from the facilities’ waste heat and main stacks, in violation of applicable permit limits. Coke oven emissions are a known human carcinogen. Chronic (long-term) exposure in humans can result in conjunctivitis, severe dermatitis and lesions of the respiratory system and digestive system. The additional equipment installed at the facilities will result in estimated emissions reductions of over 1200 tons per year of SO2, over 130 tons per year of particulate matter, 252 tons per year of hydrochloric and sulfuric acid gases and over 1800 pounds per year of lead.
Both facilities are located in areas that do not meet federal health-based standards for soot. The Illinois facility is located in an area that also does not meet the federal air pollution standard for lead.
Reducing illegal emissions of toxic air pollutants at facilities that have a significant impact on air quality and health in communities is one of EPA’s national enforcement priorities. Excess emissions from chemical plants and other industries can result in releases of hazardous air pollutants, or air toxics that are known or suspected to cause cancer, birth defects, and seriously impact the environment.
The Consent Decree, lodged in the U.S. District Court for the Southern District of Illinois, is subject to a 30-day public comment period and approval by the federal court. It is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.htmlU.S. Immigration Official Named in Federal Indictment That Alleges Bribes to Approve Applications for Citizenship and ‘Green Card’Read the Press Release
SANTA ANA, California – An immigration service officer with U.S. Citizenship and Immigration Services (USCIS) was indicted today on federal charges that allege she took thousands of dollars in bribes from three immigrants who were seeking either citizenship or lawful permanent resident status in the United States.
Mai Nhu Nguyen, 47, of Irvine, was charged in a three-count indictment returned by a federal grand jury. The indictment specifically alleges three counts of solicitation and receipt of a bribe by a public official.
Nguyen was arrested on June 6 after allegedly accepting a $2,200 bribe from an immigrant who was seeking United States citizenship.
In addition to the bribe earlier this month, the indictment alleges that Nguyen solicited and took bribes from immigrants in 2011. In one case, Nguyen is accused of taking $1,000 from an immigrant seeking a “Green Card” and 200 egg rolls from an immigrant seeking citizenship.
Nguyen, who has worked at USCIS’s Santa Ana office for approximately eight years, is an immigration service officer with the power to approve or deny applications for immigration benefits that are submitted by immigrants.
Nguyen is scheduled to be arraigned on the indictment on July 1 in United States District Court in Santa Ana.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Each count of bribery by a public official carries a statutory maximum penalty of 15 years in federal prison.
After being arrested, prosecutors filed a criminal complaint against Nguyen, who made her initial court appearance before a United States Magistrate Judge on June 7. Nguyen was released on a $20,000 bond and was ordered to appear for the arraignment next month.
The case against Nguyen is the product of an investigation by the Federal Bureau of Investigation and the Department of Homeland Security Office of Inspector General.
Release No. 13-087
U.S. Attorney Guest Speaker at U.S. Territory Summit on Violence Against WomenRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, was invited by the National Organization of Sisters of Color Ending Sexual Assault (SCESA) to be a speaker at the first ever U.S. Territory Summit on Violence Against Women held on June 25, 2012, in Saipan, Northern Mariana Islands. The Conference was presented by the Criminal Justice Planning Agency and the Northern Marianas Coalition Against Domestic and Sexual Violence in partnership with the National Organization of Sisters of Color Ending Sexual Assault and the Office on Violence Against Women, United States Department of Justice.
U.S. Attorney Limtiaco was a presenter with representatives from Guam about best practices in Guam addressing violence against women, including prevention, enforcement and treatment efforts at the federal and local levels. She also discussed the efforts of and progress made by law enforcement, courts and victim advocates and coalitions in the NMI.
United States Attorney Limtiaco spoke about sharing the sense of urgency to speak out against the escalating violence against women in our island communities. She also spoke about reaching out to victims and survivors of far too often lethal crimes, and to communicate that there is help and hope.
U.S. Attorney Limtiaco also stated that domestic violence, dating violence, sexual assault and stalking, continue to be a significant public health crisis especially when statistics show that:
- one in four women will be physically or sexually assaulted by a spouse or partner at some point in her lifetime;
- last year, one in 10 teens reported being physically hurt on purpose by a boyfriend or girlfriend;
- last year, one in nine teen girls was forced to have sex;
- last year, one in five young women have been sexually assaulted while they were in college; and
- estimates show that more than 2 million adults and more than 25 million children are exposed to domestic violence every single year;
The Department of Justice is committed to the prevention of violence against women and ensuring the safety and protection of our victims and survivors. U.S. Attorney Limtiaco shared that U.S. Attorney General Eric H. Holder, Jr. has held that the United States Attorney community plays a critical role in raising the awareness of and preventing domestic violence and sexual assault, and holding offenders accountable for these crimes. The Department of Justice will continue to take every possible step to enforce laws protecting victims of violence and to provide resources to assist victim service providers.
Participants at the Summit included teams of victim advocates, domestic violence and sexual assault coalitions/ non profits, law enforcement, prosecutors, judges, and treatment providers from Guam, the NMI, American Samoa, Puerto Rico, and U.S. Virgin Islands.Two Singapore Men Plead Guilty in Connection with Plot to Illegally Export Military AntennasRead the Press Release
WASHINGTON – Hia Soo Gan Benson, also known as “Benson Hia,” and Lim Kow Seng, also known as “Eric Lim,” pled guilty today in federal court in the District of Columbia to conspiracy to violate the Arms Export Control Act in connection with the unlawful export of 55 military antennas from the United States to Singapore and Hong Kong.
The plea was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John P. Carlin, Acting Assistant Attorney General for National Security; James Dinkins, Associate Executive Director of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations; Stephanie Douglas, Executive Assistant Director of the FBI’s National Security Branch; and Eric L. Hirschhorn, Under Secretary for Industry and Security at the Commerce Department.
Hia, 45, and Seng, 44, both of Singapore, pled guilty this afternoon before the Honorable Magistrate Judge John M. Facciola. Sentencing is scheduled for Sept. 20, 2013 before the Honorable Emmet G. Sullivan. The defendants face a maximum potential sentence of five years in prison, a fine of $250,000 and a 3-year term of supervised release.
According to court documents filed in this case, Hia and Seng conspired to defraud the United States by causing a total of 55 cavity-backed spiral antennas and biconical antennas to be illegally exported from a Massachusetts company to Singapore and Hong Kong without the required State Department license. These military antennas are controlled for export as U.S. munitions and are used in airborne and shipboard environments.
Hia and Seng, among other things, conspired to undervalue the antennas to circumvent U.S. regulations on the filing of shipper’s export declarations to the U.S. government. They also allegedly used false names and front companies to obtain the antennas illegally from the United States.
Corezing International, a company based in Singapore, was also charged in the District of Columbia in connection with the export of these particular military antennas to Singapore and Hong Kong. Corezing and its principals have also been charged in connection with the export of 6,000 radio frequency modules from the United States to Iran via Singapore, some of which were later found in Improvised Explosive Devices in Iraq. Hia and Seng pled guilty to the sole charge on which they were extradited from Singapore.
This investigation was jointly conducted by ICE agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, and the State Department’s Directorate of Defense Trade Controls.
The prosecution is being handled by Assistant U.S. Attorney Anthony Asuncion of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division.
13-228Two Florida Residents Arrested on Charges of FraudRead the Press Release
Two individuals were arrested on a federal warrant alleging that they operated a series of fraudulent businesses targeting Spanish-speaking consumers, the Justice Department and the U.S. Postal Inspection Service announced today. The criminal complaint, charging Daniel Carrasco, 54, of Miramar, Fla., and Federico Martin Gioja, 45, also of Miramar, alleges that the pair incorporated, owned, and ran Florida companies that used a phone room in Argentina to extract money from consumers using lies and extortion.In addition to the criminal complaint, the Justice Department filed a civil case against Carrasco, Gioja, Romina Tasso and their businesses, seeking an injunction to prevent further fraud and an asset freeze to prevent dissipation of funds obtained from consumers.
Carrasco and Gioja will make their first appearances in court today.
According to the civil complaint and the affidavit filed in support of the criminal complaint, the case was the result of a referral from Spanish-language television station, Univision. Companies belonging to Carrasco and Gioja are alleged to have falsely claimed an affiliation with Univision and purported to sell products such as vitamins, lotions, medical insurance, and English-language training products. However, according to the documents, the companies frequently did not deliver products ordered by consumers. The companies allegedly did not have many of the products they promised to send to consumers, and so consumers received other products instead.
According to the civil and criminal complaints, after consumers refused delivery of the companies’ shipments, employees of the Argentinian phone room used by Carrasco and Gioja called and falsely threatened the consumers with arrest, deportation, or fines on their gas and electric bills.
“This case demonstrates our commitment to use every tool at our disposal -- including asset freezes, injunctive relief, and criminal prosecution -- against companies that seek to lie, extort, threaten, and defraud Americans,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “Protecting consumers from fraud continues to be a top priority for the Department of Justice.”
According to the criminal and civil complaints, Carrasco and Gioja routinely changed the names of the companies under which they did business to evade complaints, regulators, and law enforcement. The businesses allegedly were contacted by a variety of state agencies regarding their illicit practices. In emails cited in the affidavit in support of arrest, those working with Carrasco and Gioja referred to companies tainted by complaints as “burnt.” Rather than changing their practices, the defendants allegedly incorporated new companies and started the same illegal practices again.
U.S. Attorney Wifredo A. Ferrer stated, “These defendants specifically targeted Spanish-speaking victims, pretending to be affiliated with the Univision television network, to sell their products from their phone room in Argentina. In fact, however, the defendants had absolutely no connection to Univision, and their companies did not deliver the products ordered by consumers. As this case illustrates, the U.S. Attorney’s Office is committed to investigating and prosecuting fraudsters, both domestic and international, whose schemes defraud American consumers.”
“Postal Inspectors will continue to investigate cases involving fraud against consumers and will vigorously pursue those individuals who use the mail in furtherance of their criminal schemes,” said Ronald Verrochio, U.S. Postal Inspector in Charge in Miami.
Acting Assistant Attorney General Delery commended the investigative efforts of the Postal Inspection Service, and thanked the U.S. Attorney’s Office in the Southern District of Florida for their contributions to the case. The civil case is being handled by Trial Attorney Jessica Gunder of the U.S. Department of Justice’s Consumer Protection Branch. The criminal case is being prosecuted by Assistant Director Richard Goldberg with the Consumer Protection Branch.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. A civil complaint contains allegations only and the defendants will have the opportunity to challenge those allegations in court.
Three Plead Guilty in Marijuana Distribution ConspiracyRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Chad Sunyich (37, St. George, Utah), Jason Vowell (38, St. George, Utah), and Timothy Long (39, Tampa) have pleaded guilty to conspiring to distribute more than 100 kilograms of marijuana. Sunyich and Vowell also pleaded guilty to possessing marijuana with intent to distribute. Long pleaded guilty today. Vowell pleaded guilty on June 3, 2013. Sunyich pleaded guilty on June 4, 2013. Each faces a mandatory minimum term of five years, up to forty years in federal prison on the conspiracy charge. For the possession with intent to distribute charge, Sunyich and Long also face a maximum term of twenty years in federal prison. Vowell has agreed to forfeit property that was used to facilitate the conspiracy, including his Piper Aerostar fixed wing airplane and $166,228 in cash.
According to court documents, the conspiracy began in 2010 when Sunyich sent marijuana grown in northern California to a person who would later become a cooperating witness (CW-1), in Tampa. The marijuana trafficking relationship between Sunyich and CW-1 continued into 2011 and 2012. During those years, Sunyich supplied CW-1 with quantities of marijuana ranging between thirty and ninety-nine pounds at a time, generally every 45 to 60 days.
In early 2012, Long joined the conspiracy. Long regularly collected marijuana proceeds for Sunyich and received pounds of marijuana from Sunyich for further distribution.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Terry Lynn Braine Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 26, 2013, before Senior U.S. District Judge Jack D. Shanstrom, TERRY LYNN BRAINE, a 47-year-old resident of Ashland, pled guilty to domestic assault by a habitual offender. Sentencing has been set for September 25, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On November 29, 2012, BRAINE punched his elderly father in the eye causing severe swelling, redness, and a laceration. His elderly mother was present as well and suffered emotional trauma from witnessing the attack. BRAINE has four prior tribal court convictions for domestic assault - all of them involve assaults on his elderly parents.
The assault occurred in Lame Deer, which is within the exterior boundaries of the Northern Cheyenne Indian Reservation.
BRAINE faces possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Bureau of Indian Affairs.
Tennessee Man Indicted for Romney Tax Return Fraud and Extortion SchemeRead the Press Release
Michael Mancil Brown was indicted today by a federal grand jury in Nashville, Tenn., for allegedly engaging in an extortion and wire fraud scheme involving former Presidential candidate Mitt Romney’s tax returns, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Todd Hudson, Special Agent in Charge of the U.S. Secret Service, Nashville Field Office.
Brown, 34, of Franklin, Tenn., was charged in U.S. District Court in the Middle District of Tennessee with six counts of wire fraud and six counts of extortion.
The indictment alleges that Brown devised a scheme to defraud Romney, the accounting firm of PricewaterhouseCoopers LLP and others by falsely claiming that he had gained access to the PricewaterhouseCoopers internal computer network and had stolen tax documents for Romney and his wife, Ann D. Romney, for tax years prior to 2010.
According to the indictment, Brown allegedly caused a letter to be delivered in August 2012 to the offices of PricewaterhouseCoopers in Franklin. The letter demanded that $1 million worth of the digital currency Bitcoin be deposited to a specific Bitcoin account to prevent the release of the purportedly stolen Romney tax returns. The letter also invited interested parties who wanted the allegedly stolen Romney tax documents to be released to contribute $1 million to another Bitcoin account.
The indictment alleges that Brown delivered similar letters to the offices of the Democratic and Republican parties in Franklin and caused similar statements to be posted to Pastebin.com.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Nashville Field Office of the U.S. Secret Service with assistance from the Nashville Resident Agency of the FBI. The case is being prosecuted Senior Counsel Anthony V. Teelucksingh of the Criminal Division's Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Byron Jones of the Middle District of Tennessee.
Tax Refund Schemer Pleads GuiltyRead the Press Release
PHILADELPHIA - Jonathan Brownlee, 28, of Philadelphia, pleaded guilty today to four counts stemming from a tax fraud scheme that sought to bilk the government of over $600,000. Brownlee admitted that he conspired with others to file false tax claims by obtaining and using the personal identifying information of several individuals, including their Social Security numbers, sometimes under false pretenses. Brownlee used the information to prepare and file bogus tax returns claiming fraudulent refunds and directed the refunds to be deposited into bank accounts that he and his co-conspirators controlled. He pleaded guilty to conspiracy and three counts of filing a false claim. A sentencing hearing is scheduled for October 10, 2013.
Brownlee’s co-conspirators - Christopher Brownlee, 36, Anthony Foster, 43, and Paul Rawls, 53, all of Philadelphia - were each charged with conspiracy and filing false claims on tax returns with the IRS. Rawls pleaded guilty to conspiracy and one count of filing a false claim on June 25, 2013. A sentencing hearing for Rawls is scheduled for September 24, 2013.
The tax returns fraudulently reported that the individuals for whom Brownlee had prepared the returns, were entitled to receive a $7,500 refundable tax credit under the Housing and Economic Recovery Act of 2008. The returns were false because those individuals had not purchased new homes and thus were not eligible to apply for the refundable tax credit. Some of the individuals---in whose name the returns had been prepared and filed---were not aware that Brownlee and his co-conspirators had used their Social Security numbers for the purpose of filing the false returns. The indictment was the first in the Eastern District of Pennsylvania involving fraud effecting the Housing and Economic Recovery Act of 2008.
Brownlee faces a maximum possible sentence of 25 years in prison and a fine of up to $1 million.
The case was investigated by the Internal Revenue Service Criminal Investigation Division and the Office of Inspector General for the United States Social Security Administration. The case is being prosecuted by Assistant United States Attorneys Floyd J. Miller and Patrick J. Murray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Tarentum Woman Charged with Bank FraudRead the Press Release
PITTSBURGH - A resident of Tarentum, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of bank fraud United States Attorney David J. Hickton announced today.
The one-count indictment, returned on June 25, named Suzanne Czwalga Andre, 47, as the sole defendant.
According to the indictment presented to the court, from July 2010 to November 2010, Andre negotiated fraudulent checks at various branches of Citizens Bank that she knew would not be honored by the banks on whose accounts the checks were drawn.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Postal Inspectors and the United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tallahassee Resident Sentenced to 87 Months in Federal PrisonRead the Press Release
TALLAHASSEE – The U.S. Attorney’s Office for the Northern District of Florida announced that Kenneth L. Barber, 62, of Tallahassee, Florida, was sentenced today in federal court to serve 87 months in prison on charges of wire fraud, preparing false tax returns, making a false statement to a bank, and conspiracy to commit tax fraud.
On April 10, 2013, a federal jury found Barber guilty after a three day trial. At trial, the government presented evidence that Barber ran and operated a local tax preparation business where he encouraged preparers to falsify clients’ tax returns. Barber’s former employees, including his two co-defendants, Shavita Altrecia Davis and Anthony Tyree Barber, testified that Barber trained them on how to prepare fraudulent returns to increase the clients’ tax refunds. At Barber’s instruction and direction, the employees filed returns falsifying income, deductions, credits, dependents, and filing status to obtain inflated tax refunds and to limit the tax due to the IRS. At the trial and at the sentencing hearing, a government expert witness testified that the tax scheme resulted in a loss of more than $700,000. Barber also made false statements to a financial institution to qualify for loans totaling more than $300,000.
The court also sentenced Barber to serve five years of supervised release following his prison term, and ordered him to pay restitution and special monetary assessments. In addition, the court entered an order of forfeiture in the amount of $131,781.00. The restitution will be determined at a later date. Barber’s co-defendant, Shavita Davis, was sentenced to serve twenty-four months in prison, while co-defendant Anthony Barber was sentenced to serve six months in prison, as well as six months of home detention.
“IRS Criminal Investigation takes tax refund fraud seriously and criminal violations, like the ones for which Mr. Barber was convicted, have serious consequences,” stated James D. Robnett, Special Agent in Charge of the Tampa Field Office of IRS Criminal Investigation. Mr. Robnett added, “The community should heed the cautionary tale of this case, and choose professional tax preparers carefully. Through aggressive, impartial enforcement of the tax laws, IRS is putting those unscrupulous preparers on notice that we are watching.”
The U.S. Attorney for the Northern District of Florida, Pamela C. Marsh, praised the work of the Internal Revenue Service, whose investigation led to the convictions in the case. She added, “The Department of Justice will continue to aggressively pursue and bring to justice those who defraud the public, engage in illegal schemes, abuse positions of trust, and willfully undermine the entire tax system.”
Barber was sentenced by United States District Judge Robert L. Hinkle.
The case was prosecuted by Assistant U.S. Attorney Winifred Acosta NeSmith.Synthetic Drug Sweep Hits Individuals and Businesses Across West TennesseeRead the Press Release
Memphis, TN – Indictments were unsealed today in Memphis and Jackson, TN naming 40 individuals alleged to be part of the synthetic drug trade in West Tennessee, announced U.S. Attorney Edward L. Stanton III; Resident Agent-in-Charge of the Drug Enforcement Administration’s (DEA) Memphis office Brian Chambers; and Shelby County District Attorney General Amy Weirich.
“Project Synergy,” a DEA initiative, is the largest-ever coordinated law enforcement strike against designer drugs, targeting manufacturers, distributors, and retailers of more than 250 synthetic drugs being abused every day in the United States and globally. This initiative was conducted in conjunction with prosecutors in Memphis and Jackson as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
“As alleged, the defendants were involved in an international web of distributing illegal synthetic drugs at numerous retail establishments throughout West Tennessee and beyond, many lining their pockets with multi-million-dollar profits,” said U.S. Attorney Stanton. “Today’s indictments, arrests and seizures demonstrate that the manufacturing, distribution and purchase of these highly addictive and potentially lethal substances will not be tolerated, and those who are brazen enough to sell this poison, particularly to our children and young adults, will be held accountable. I thank the DEA for their diligent efforts with this case over the past two years and the more than 400 federal, state and local law enforcement officials who took part in today’s sweeping takedown throughout the Western District of Tennessee.”
After a two-year investigation involving federal state and local law enforcement, hundreds of purchases and seizures were made from more than 34 different storefronts in the Western District of Tennessee.
During today’s takedown more than 76 search warrants and 35 arrest warrants were executed.
“Stopping the flow of synthetic drugs both domestically and internationally is a major focal point at DEA,” said Michael J Stanfill, the Assistant Special Agent in Charge of the DEA Nashville
District Office. “In doing so, we will continue to work with our law enforcement partners to disrupt the flow of these dangerous substances. This case was successful because of the true spirit of cooperation between all agencies involved.”
The drugs seized in this investigation generally fall into two categories: synthetic cannabinoids and synthetic cathinones. Synthetic cannabinoids, often known by the street names “Spice” or “K2,” mimic the hallucinogenic effects of marijuana with the added side effects of hallucinations, seizures, and dependency/addiction not usually associated with marijuana users. Synthetic cathinones, better known as “bath salts” or “plant food,” produce a high similar to methamphetamine, MDMA or cocaine. Abusers experience chest pain, increased blood pressure, agitation, panic attacks, irrational behavior, hallucinations, paranoia, delusions, and even heart attacks and strokes.
"The sellers of synthetic drugs specifically target our young people," said District Attorney General Weirich. "We will not sit back and ignore this threat to our children and to the entire community."
The following individuals were indicted by a federal grand jury in Memphis: • Ali S. Abdelrahim, 51, Collierville, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Maged Ali-Ahmed Abdullah, 45, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Samer Abu-Atiyeh, age, address, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Kadhim Almaslouk, 43, Memphis, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Yousef Al Sharif, 39, Cordova, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Sung Su An, 44, Collierville, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Emad Bahhur, 57, Germantown, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Fayez Bahhur, 32, Cordova, TN, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and fine of up to half a million dollars.
• Lewis Cochran, 42, Olive Branch, MS, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Pamela Cochran, 42, Olive Branch, MS, charged with two counts of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Gary Geiser, 63, Memphis, charged with two counts of conspiracy to possess and distribute, one count of conspiracy to commit money laundering, one count of money laundering, and one count of structuring. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering conspiracy charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars. The money laundering charge carries a penalty of up to 10 years in prison and a fine of up to half a million dollars. The structuring charge carries a penalty of up to ten years in prison and a fine of up to half a million dollars.
• Lisa Gertz, 50, Memphis, charged with one count of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Abdul Aziz Isani, 69, Olive Branch, MS, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Nabil Mawlawi, 48, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Cameron Marcrum, 31, address unknown, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Jonathan Martin, age and address unknown, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Crystal McCracken, 26, Memphis, charged in two separate indictments with a total of three counts of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Linda Montgomery, 61, Memphis, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Fuad Murshed, 31, Memphis, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Daniel Pendergrass, 66, Memphis, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Mohammed Al Rawahneh, 28, Germantown, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• James Sexton, 38, Memphis, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Robert Snyder, 33, Memphis, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Max Suh, 40, Collierville, TN, charged with one count of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for the conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Abdel Kareem Mohammad Taha, 23, Cordova, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Max Terhune, 29, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Donald Tyler, 43, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Umar Yusuf, a/k/a “Umar Hussein”, 34, Bartlett, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
The following individuals were indicted by a federal grand jury in Jackson, TN: • Hassan “Sam” Safa, 40, Jackson, TN, charged with one count of conspiracy to possess and distribute and five counts of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Ehab “Mark” Rezk, 37, Jackson, TN, charged with one count of conspiracy to possess and distribute, and 56 counts of structuring. If convicted he faces up to 20 years in prison and a fine of up to $1 million for the conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million. The structuring charge carries a penalty of up to ten years in prison and a fine of up to half a million dollars for each count.
• Ali Safa, 43, New York City, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Mahmoud, “Steve” Safa, 46, Jackson, TN, charged with one count of conspiracy to possess and distribute and two counts of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Mohamed Khalil, 57, Jackson, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Hussein Salloukh, 25, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Nazem Salloukh, 52, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. I If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Ahmad, a/k/a Ahmed “Eddie” Elsebae, 51, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Akram Nagi, 26, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Paula Nell Kirk, 46, Jackson, TN, charged with one count of conspiracy to possess and distribute and two counts of possession with intent to distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Irene Rosas-Montalvo, 33, Jackson, TN, charged with one count of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Hani Tarhini, 46, Panama City, FL, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
Search warrants were also served on the following businesses: Tobacco Box, 1740 N. Germantown Pkwy., Suite 10, Cordova, TN
Tobacco Zone, 1319 N. Germantown Pkwy., Cordova, TN
Tobacco Zone, 2857 Kirby #115, Memphis, TN
Tobacco Hut Smoke Shop, 5119 Summer Avenue, #103, Memphis TN
Buddy’s Smoke, address unavailable
Cooper Young Glassworks, 906 S. Cooper St., Memphis, TN
Gonzo’s Smoke Shop, 2125 Sycamore View Rd., Memphis, TN
Smoke N More, 1775 N. Germantown Pkwy., Cordova, TN
A&P Tobacco, 3878 Austin Peay Hwy., Memphis, TN
Wizards (store), 1999 Madison Ave., Memphis, TN
Wizards (warehouse) 11 S. Morrison, Memphis, TN
Friendly Quick Stop, 5510 Stage Rd., Bartlett, TN
Tobacco Etc., 6600 Stage Rd., #128, Bartlett, TN
Tobacco Express, 4520 Summer Ave., #1, Memphis, TN
Humidor Tobacco, 1166 N. Houston Levee, #104, Memphis, TN
Whatever, 610 S. Highland, Memphis, TN
CubeSmart (Storage facility used by Whatever), 2700 Poplar, storage unit B8, Memphis, TN
Tobacco Max, 6730 Winchester Rd., Memphis, TN
Highland Smoke Shop, 571 S. Highland, Memphis, TN
Tobacco Superstore, 7464 Winchester Rd., Suite 104, Memphis, TN
Tobacco World, 4621 Quince, Memphis, TN
Longtown BP, 3965 Hwy 59, Mason, TN
Half-Price Smoke Shop, 5520 Summer Ave., Suite 104, Memphis, TN
Tobacco World Smoke Shop, 640 South Highland, Memphis, TN
Superway Gas Station, 26 Bowling Dr., Jackson, TN
Always Save Grocery Store, 419 E. College St., Jackson, TN
Superway Gas Station, 795 Airways Blvd., Jackson, TN
Superway Discount Tobacco & Gas, 1435 Riverside Dr., Jackson, TN
Q-Mart/Superway Gas Station, 2990 East End Dr., Humboldt, TN
Superway/On the Go, 151 Law Rd., Jackson, TN
Zazz Lube and Wash, 2739 N. Highland Ave., Jackson, TN
Citgo, 105/107 Carriage House Dr., Jackson, TN
McKenzies Food Fare/Market, 2857 Airways Blvd., Jackson, TN
This investigation was conducted by the DEA Memphis Drug Task Force, the United States Marshals Service, the Internal Revenue Service, the Tennessee Highway Patrol, the Tennessee Bureau of Investigation, the Memphis Police Department, the Shelby County Sheriff’s Department, the Bartlett Police Department, the Madison County Sheriff’s Department, and the Jackson Police Department. These cases are being prosecuted for the government by Special Assistant United States Attorney Chris Scruggs and Assistant United States Attorney Matt Wilson.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Statement of Attorney General Eric Holder on the Supreme Court Ruling on the Defense of Marriage ActRead the Press Release
Attorney General Eric Holder today issued the following statement regarding the Supreme Court ruling on the Defense of Marriage Act.
“Today’s historic decision in the case of United States v. Windsor, declaring Section 3 of the Defense of Marriage Act unconstitutional, is an enormous triumph for equal protection under the law for all Americans. The Court’s ruling gives real meaning to the Constitution’s promise of equal protection to all members of our society, regardless of sexual orientation. This decision impacts a broad array of federal laws. At the President’s direction, the Department of Justice will work expeditiously with other Executive Branch agencies to implement the Court’s decision. Despite this momentous victory, our nation’s journey – towards equality, opportunity, and justice for everyone in this country – is far from over. Important, life-changing work remains before us. And, as we move forward in a manner consistent with the Court’s ruling, the Department of Justice is committed to continuing this work, and using every tool and legal authority available to us to combat discrimination and to safeguard the rights of all Americans.”St. Joseph Woman Sentenced for $5 Million Conspiracy to Provide Thousands of Identity Documents to Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., woman was sentenced in federal court today for her role in a more than $5 million conspiracy that utilized the Missouri Department of Revenue license office in St. Joseph to provide more than 3,500 fraudulent identity documents to illegal aliens across the United States.
Deborah J. Flores, 47, was sentenced by U.S. District Judge Gary A. Fenner to three years and four months in federal prison without parole. Flores is also jointly and severally liable for a $5,250,000 money judgment, which represents proceeds from the conspiracy.
On Oct. 18, 2012 Flores pleaded guilty to participating in a conspiracy to transport illegal aliens, to unlawfully produce identification documents, to unlawfully transfer another person’s identification and to commit Social Security fraud from November 2009 to January 2012. Flores also pleaded guilty to aggravated identity theft.
It is estimated that more than 3,500 licenses were issued to illegal aliens by the Department of Revenue license office in St. Joseph. The state licenses could then be used by the illegal aliens to remain unlawfully in the United States, to unlawfully obtain employment and for other unlawful purposes.
The illegal aliens were usually charged between $1,500 and $1,600 for the document sets and the Missouri driver’s and non-driver’s licenses. It is estimated that more than $5,250,000 in gross proceeds was paid by illegal aliens to members of this conspiracy.
In addition to Flores, five co-defendants have been sentenced and 11 co-defendants have pleaded guilty and await sentencing.
Flores’s sister, Sherri E. Gutierrez, 46, of St. Joseph, pleaded guilty on April 10, 2013 to being a leader or manager of the conspiracy and to aggravated identity theft. Flores’s children, Jessica M. Gonzalez, 22, Sara M. Gonzalez, 21, Christina Michelle Gonzalez, 24, and Stephen E. Vanvacter, 25, all of St. Joseph, have also pleaded guilty to their roles in the conspiracy. Gutierrez’s daughter, Shayna R Vanvacter, 26, of St. Joseph, also pleaded guilty to her role in the conspiracy.
Gutierrez admitted that she assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. These identity documents were used to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office.
Flores, her children, Gutierrez and Shayna Vanvacter all admitted that they accompanied illegal aliens to the St. Joseph license office, under the guise of being translators, in order to assist them with obtaining a Missouri driver’s or non-driver’s license. They also admitted that they instructed and assisted the illegal aliens to practice memorizing the information on the birth certificates and Social Security cards and to practice signing the name on those documents so that the signatures would be similar. They also assisted the illegal aliens to prepare for potential questions from the license office employees. They also assisted the illegal aliens who did not live in Missouri by providing them with a Missouri residential address to use in order to obtain the Missouri driver’s or non-driver’s license.
Melissa L. Scallions, 27, of Hazelwood, Mo., and Jon L. Grippando, 25, of Atkins, Ark., have also pleaded guilty to their roles in the conspiracy. They each admitted that they also accompanied illegal aliens into the St. Joseph license office, under the guise of being translators, in order to assist them with obtaining a Missouri driver’s or non-driver’s license.
Christina Gonzalez was sentenced to 32 months in federal prison without parole and ordered to pay $150,000 in restitution. Jessica Gonzalez was sentenced to three years of probation. Gutierrez, Sara Gonzalez, Stephen and Shayna Vanvacter, Scallions and Grippando await sentencing.
Julio Cesar Llanas-Rodriguez, 38, of San Antonio, Texas, was sentenced to five years and one month in federal prison without parole. Llanas-Rodriguez pleaded guilty to his role in the conspiracy and to aggravated identity theft. Along with co-defendants Martin Alejandro Llanas-Rodriguez,31, and Brenda De La Cruz, 33, also of San Antonio, Texas, his role in the conspiracy was to obtain state-issued birth certificates, usually from the state of Texas, which he purchased from willing individuals. He would also obtain a Social Security card in the name of the individual on the birth certificate, so he would have a matching document set. He mailed the documents to Gutierrez and others.
Brenda De La Cruz and Martin Alejandro Llanas-Rodriguez have each pleaded guilty to their roles in the conspiracy and to aggravated identity theft and await sentencing.
Nelson Dariseo Bautista-Orozco, 27, a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to three years and six months in federal prison without parole.
Ranfe Adaias Hernandez-Flores, also known as “Miguel,” 23, also a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to two years in federal prison without parole.
Elder Enrique Ordonez-Chanas, also known as “Flaco,” 31, a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, pleaded guilty on April 8, 2013 to his role in the conspiracy. The government contends that Ordonez-Chanas is also a leader or manager of the conspiracy. In addition to the conspiracy, Ordonez-Chanas pleaded guilty to one count of aggravated identity theft.
Ordonez-Chanas admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. Ordonez-Chanas requested document sets (of a specific age range for either a male or a female that corresponded with the illegal alien who was the customer) from co-defendants De la Cruz and Julio and Martin Llanas-Rodriguez. Ordonez-Chanas then mailed the documents sets to Gutierrez and others.
Luis Adalberto Felipe-Lopez, 30, a citizen of Guatemala who was unlawfully in the United States and resided in Mt. Olive, N.C., pleaded guilty to his role in the conspiracy as well as to aggravated identity theft. The government contends that Felipe-Lopez is a leader or manager of the conspiracy. Felipe-Lopez admitted that he transported illegal aliens between St. Joseph and North Carolina. Felipe-Lopez admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. These identity documents were used to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office.
Rafael Hernandez-Ortiz, also known as “Hugo,” 31, a citizen of Mexico who was unlawfully present in the United States and resided in Owatonna, Minn., pleaded guilty to his role in the conspiracy on April 29, 2013. Hernandez-Ortiz admitted that he transported illegal aliens from Minnesota to the St. Joseph license office.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, the U.S. Postal Inspection Service and the Department of State’s Diplomatic Security Service.Serial Bank Robber Sentenced to 16 Years in Federal PrisonRead the Press Release
PHOENIX, Ariz. – On June 24, 2013, Walter David Garcia, 23, of Sinaloa, Mexico, was sentenced to 16 years in federal prison by District Judge Neil V. Wake stemming from his commission of multiple bank robberies in Phoenix, Sun City and Surprise. Garcia previously pleaded guilty to four counts of Bank Robbery, two counts of Armed Bank Robbery, and one count of Use of a Firearm During a Crime of Violence.
According to Garcia’s plea agreement, he committed seven bank robberies from August 1, 2011 through April 12, 2012. Garcia brandished a handgun during one of the robberies and also committed carjackings in connection with two of the bank robberies. He was dubbed the “Home Town Bandit” due to his affinity for wearing local sports team paraphernalia when committing the robberies.
The investigation in this case was conducted by the Federal Bureau of Investigation (FBI) and its Bank Robbery Task Force as well as the Surprise Police Department. The Bank Robbery Task Force is a partnership of FBI, the Phoenix Police Department, the Maricopa County Sheriff’s Office, the Mesa Police Department, the U.S. Attorney’s Office, and the Maricopa County Attorney’s Office, whose focus is to investigate and apprehend bank robbers in the Phoenix metropolitan area. More information on the Bank Robbery Task Force can be found at www.bandittrackerarizona.com. The prosecution was handled by Christine D. Keller and Alison Bachus, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1145
RELEASE NUMBER: 2013-047_GarciaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.usdoj.gov/usao/az/
Selling Prescription Pills for ProfitRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Marshall Bradford, 68, of Athens, Georgia, was sentenced today before the Honorable C. Ashley Royal, United States District Judge for the Middle District of Georgia in Macon, Georgia.
Mr. Bradford had earlier entered a guilty plea to possession with intent to distribute Alprazolam (Xanax), a Schedule IV controlled substance. Mr. Bradford also admitted that he was selling the Alprazolam (Xanax) for profit.
Court records revealed that Mr. Bradford was under state supervision for unlawful possession of prescription pills, which allowed authorities to search his residence after receiving information from a reliable source, that Mr. Bradford was selling prescription pills from his residence. During the search of the home, officers located $7,000.00 in cash, digital scales, and a tally sheet along with 339 Alprazolam (Xanax) pills.
Judge Royal imposed a sentence of thirty-seven (37) months imprisonment to be followed by two (2) years of supervised release and a $100.00 mandatory assessment fee. The federal sentence will run consecutive with Mr. Bradford’s probation revocation sentence in Elbert County, Georgia. There is no parole in the federal system.
The case was investigated by Athens-Clarke County Police Department, Alcohol, Tobacco, Firearms and Explosives, and the Elbert County Sheriff’s Department. Assistant United States Attorney Tamara Jarrett prosecuted the case for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Search Warrants Executed at Iowa City BusinessesRead the Press Release
On June 26, 2013, searches were conducted at two Iowa City businesses pursuant to federal search warrants. Searches were conducted at 116 E. Washington Street and 123 E. Washington Street, Iowa City. Agencies involved in these searches included the Iowa Department of Public Safety - Division of Narcotics Enforcement, the Iowa City, Iowa, Police Department, the Johnson County Drug Task Force, the Drug Enforcement Administration, and the Internal Revenue Service Criminal Investigation.
No other information will be released at this time.
(Download Press Release )
Sanborn Man Sentenced on Gun ChargeRead the Press Release
Buffalo, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Michael Wayne Finch, 61, of Sanborn, N.Y., who was convicted of being a felon in possession of a firearm, was sentenced to time served of 42 months by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on November 19, 2009, the defendant was stopped by New York State Police in Lewiston. During the subsequent execution of a search warrant, troopers recovered five firearms and multiple rounds of ammunition. Finch was prohibited from possessing any the firearms because of a prior felony drug conviction in the State of South Carolina.
The sentencing is the culmination of an investigation on the part of the New York State Police, under the direction of Major Michael Cerretto and Special Agents of the Alcohol, Tobacco, Firearms and Explosives, under the direction of Frank J. Christiano, Resident Agent in Charge.Rosebud Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on June 25, 2013 by U.S. District Judge Roberto A. Lange.
Myron Dubray, age 26, was sentenced to 60 months of imprisonment to be served consecutively with the term from a previous Pennington County felony; a $1,000 fine; 4 years of supervised release; and a $100 special assessment to the Federal Crime Victims Fund.
Dubray was indicted for the above charge by a federal grand jury on August 22, 2012 and pled guilty on April 3, 2013. The charge stems from an incident occurring on March 21, 2012, wherein Dubray was inside a house searched by law enforcement and officers found over 50 grams of methamphetamine, a Scheduled II controlled substance, on Dubray. When interviewed by law enforcement, Dubray admitted to selling methamphetamine in the past.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Dubray was immediately turned over to the custody of the U.S. Marshals Service.
Riverside County Deputy Public Defender Taken into Custody After Being Charged with Defrauding the Social Security AdministrationRead the Press Release
RIVERSIDE, California – An Upland attorney surrendered this morning after being charged with stealing approximately $129,795 in social security benefits.
Audrey Owens, 60, a deputy public defender for Riverside County, was charged in a criminal complaint filed in federal court on June 10 with theft of government property in a scheme that spanned 12 years. Owens is charged with one felony count that carries a statutory maximum penalty of 10 years in federal prison.
Owens was taken into custody by special agents with the Social Security Administration, Office of the Inspector General, Office of Investigations. Owens will make her initial court appearance this afternoon in federal court in Riverside.
From June 2000 through August 2012, according to the affidavit in support of the complaint, Owens fraudulently obtained social security benefits intended for her grandmother, who died in May 2000. After her grandmother’s death, Owens changed the address of a joint account she shared with her grandmother and continued to receive social security payments intended for her grandmother. Owens allegedly used these social security payments to pay bills and to pay expenses that included contributions to the Riverside County Employee Campaign.
Release No. 13-086
Richland County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Ivan D. Smith, 42, of Olney, IL, was indicted on June 18, 2013, on methamphetamine related charges in an Indictment returned by a Federal Grand Jury sitting in East St. Louis, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Smith was charged in a two count indictment. Count 1 charged that from on or about March 2011, until on or about June 11, 2013, in Richland County, Smith did knowingly combine, conspire, and agree with others known and unknown to the Grand Jury, to knowingly and intentionally manufacture a mixture and substance containing methamphetamine. Count 2 charged that on June 11, 2013, in Richland County, Smith did knowingly and intentionally possess equipment, chemicals, products, or materials which may be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine.
With respect to Count 1, if convicted, Smith faces up to 20 years imprisonment, up to $1,000,000 fine, and at least 3 years supervised release to follow incarceration.
With respect to Count 2, if convicted, Smith faces up to 10 years imprisonment, up to a $250,000 fine, and up to 3 years supervised release to follow his incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Richland County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Richland County Man Convicted of Methamphetamine Related OffensesRead the Press Release
Marty Cody Stacy, 46, of Calhoun, IL, was convicted in federal district court of methamphetamine related offenses following a two day jury trial, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Stacy was convicted of all five counts brought against him. Count 1 charged that from August 2010, to on or about May 30, 2012, in Richland County, Stacy conspired with others to manufacture more than 50 grams of methamphetamine. Counts 2-5 charged that Stacy possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine on the dates of May 30, 2012 (Count 2), February 8, 2012 (Count 3), October 25, 2011 (Count 4), and October 11, 2011 (Count 5).
With respect to Count 1, Stacy faces a penalty of 10 years, up to life in prison, up to an $8,000,000 fine, and no less than 8 years supervised release to follow his incarceration. With respect to each of Counts 2-5, Stacy faces up to 20 years in prison, up to a $250,000 fine, and up to 3 years supervised release to follow his incarceration.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorneys George Norwood.
Reston Man Indicted for Fleeing to Texas While on Pretrial Release for Alleged Child Pornography OffensesRead the Press Release
ALEXANDRIA, VA. – Alex Ernesto Calderon Velasquez, 27, of Reston, Va., was indicted by a federal grand jury today on a charge of failure to appear after pre-trial release.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director in Charge of FBI’s Washington Field Office; and Lt. Colonel Edwin C. Roessler, Jr., Acting Fairfax County Chief of Police, made the announcement following return of the indictment.
Velasquezfaces a maximum penalty of 10 years in prison if convicted of failing to appear.
According to the indictment and other public records, Velasquez was scheduled to plead guilty on May 24, 2013, to production of child pornography before United States District Court Judge Anthony J. Trenga in United States v. Alex Ernesto Calderon Velasquez, but did not appear as directed. Velasquez allegedly disabled his electronic monitoring bracelet, fled the area, and was later arrested on June 7, 2013, in San Antonio, Texas.
This case was investigated by the FBI Washington Field Office’s Child Exploitation Task Force, the Fairfax County Police Department, and the Harris County Constable’s Office in Texas.
Assistant United States Attorneys Alexander T.H. Nguyen, Jay V. Prabhu, and Matthew Gardner are prosecuting the case behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Registry of Motor Vehicle Officials and Service Station Owner Charged with Extortion and FraudRead the Press Release
Allegations of selling motor vehicle safety inspection licenses and equipment for profit
BOSTON – A Massachusetts Registry of Motor Vehicle (RMV) project manager, an RMV senior inspector, and an owner of two motor vehicle service stations have been charged with scheming to extort other service station owners who wanted to obtain a license to conduct motor vehicle safety inspections.
Simon Abou Raad, 50, of Tyngsboro, and Mark C. LaFrance, 51, of Braintree, and David P. Gaw, 70, of Wakefield, were charged in U.S. District Court with conspiracy to extort money under color of official right in exchange for an official license to conduct Massachusetts motor vehicle safety inspections and with participating in a scheme to commit mail fraud and honest services mail fraud. Gaw was indicted by a federal grand jury, while Abou Raad and LaFrance were charged by Information, having previously been arrested on March 11, 2013.
According to the indictment, LaFrance, project manager for vehicle safety and compliance services at the RMV, had oversight responsibilities for the entire motor vehicle inspection program within Massachusetts. Abou Raad owned service stations in Tewksbury and Tyngsboro. Gaw was a senior inspector working out of Lawrence whose duties included inspecting service stations applying for licenses. In Massachusetts, applications to obtain a license to conduct motor vehicle safety inspections are intended to be granted off a waiting list with consideration given to geographic location. An applicant for a vehicle inspection license must pay a $100 fee and the actual equipment costs about $2,500. Because the inspection network was at its capacity, the RMV was not granting new licenses off the waiting list.It is alleged that LaFrance, Abou Raad and Gaw operated what was essentially “a black market” for such licenses through the use of LaFrance’s and Gaw’s official positions. LaFrance provided Abou Raad with a list of vehicle inspection stations that had a low volume of inspections and/or were planning to surrender their license and sell the inspection equipment. Abou Raad then contacted the service station owner and offered to buy the inspection license and equipment for prices usually in the range of $5,000 to $6,000. Abou Raad then sold such licenses and equipment to service station owners desirous of acquiring a license, often identified by Gaw, for prices between $50,000 to $75,000. Abou Raad then arranged the transaction to appear as if the service station owners selling and buying the license were merging as a new business entity or with a change in ownership. Abou Raad submitted forged documentation to the RMV, ostensibly on the part of the seller, falsely representing that there had been a bona fide merger. Or he caused the applicant to falsely list the seller as a corporate officer on filings with the RMV. Although he was aware that these purported mergers were not bona fide, LaFrance either approved the issuing of a new license or permitted others in the RMV to approve the new license. After the fraudulent transaction resulting in the issuance of a vehicle inspection licenses was completed and payment was made to Abou Raad, he would split the illegal proceeds with LaFrance and would pay Gaw a kickback as a finder’s fee if Gaw had supplied the buyer or conducted a site inspection for the new owner. Through this illegal scheme, Abou Raad sold at least 10 inspection licenses and/or machines for approximately $657,000.
During the investigation, which involved the interception of electronic communications, Gaw and Abou Raad are alleged to have discussed service station owners who were likely to sell their inspection machine and license. In one particular transaction where Gaw located the potential buyer, Gaw was intercepted asking Abou Raad, “how much you got for me?” and Abou Raad responded, “two grand.”
The maximum sentence under the extortion and mail fraud statutes is 20 years in prison, a fine of $250,000 or twice the gain or loss, whichever is greater, three years supervised release, restitution, and forfeiture.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Robert Fisher of Ortiz’s Public Corruption Unit.The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Redmond Man Sentenced for Filing False Claim against the U.S. TreasuryRead the Press Release
A 69-year-old Redmond, Washington man who falsely claimed he was owed a tax refund of more than $800,000 was sentenced today in the U.S. District Court in Seattle to one year in prison, and three years of supervised release, announced U.S. Attorney Jenny A. Durkan. FRED F. FRINK was charged in September 2012, and pleaded guilty on March 13, 2013 to filing a false, fictitious, and fraudulent claim. At sentencing, U.S. District Judge Robert S. Lasnik said FRINK “had many opportunities to pull the plug” on his fraud. The judge ordered FRINK to report to prison on September 24, 2013, giving him some time to be treated for a variety of health issues.
According to records in the case, in 2009, FRINK hired a tax preparer to prepare his 2008 return. The tax preparer calculated the taxes and determined that FRINK was owed a refund of $7,413. However, FRINK failed to file that tax return and instead went to an H & R Block outlet and provided bogus forms indicating that more than $1 million had been withheld on his behalf. H & R Block calculated his return using these bogus documents, determining that he was owed $827,117. The IRS did not catch the fraud immediately, and FRINK used the money for various transactions, including the purchase of a $48,000 car. Even after FRINK was contacted by a Federal Revenue Agent, he continued to spend his ill-gotten gains instead of returning it to the U.S. Treasury.
The scheme FRINK used has been seen multiple times in the Western District of Washington and has resulted in significant prison terms. “The IRS included 1099-OID fraud on its “Dirty Dozen Tax Scams” for 2012. Although some scam participants are undeterrable, there are a number of people who will be deterred if they understand that their conduct could lead to serious penalties, including imprisonment,” prosecutors wrote in their sentencing memo.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Thomas Woods.