Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 13 May 2013
Cary Business Owner Pleads Guilty to $1 Million International Fraud SchemeRead the Press Release
ROCKFORD — A Cary, Ill. business owner pleaded guilty to wire fraud today in federal court before U.S. District Judge Frederick J. Kapala. CLARE THOMAS ANDERSON, 44, who owned and operated multiple businesses in Cary, Ill, and Florida, admitted that between April 2009 and January 2013, he schemed to defraud over $1 million from more than 10 victims that did business with the companies he operated.
According to the written plea agreement, the businesses Anderson owned and operated were Certifibre, LLC, Anderson International Global, LLC, which had an assumed name of Worldwide Paper Company, Inc., American Surplus Supply, Southernmost Exports, LLC, Southernmost Holdings, LTD, and Sea Consulting, LLC. Through these businesses, Anderson contracted to sell wood pulp and other raw materials to manufacturers, brokers and suppliers, which were usually located in foreign countries.
Anderson obtained payments from his customers before the shipments arrived at their destinations. Often, the customers obtained Letters of Credit from their banks in order to pay for the shipments in advance. Anderson admitted that he caused payments to be disbursed under these Letters of Credit to bank accounts he controlled by creating and presenting fraudulent Bills of Lading, Certificates of Origin, and packing lists. These documents falsely represented that the agreed upon quantity and quality of materials had been shipped.
Anderson admitted that instead of shipping the wood pulp or other raw materials he had agreed to sell, on various occasions he shipped worthless scrap materials to his foreign customers. When the customers called him to complain about the worthless scrap materials they had received, Anderson falsely told them that the scrap materials were intended for another customer in a different country.
Anderson further admitted that on some occasions, instead of shipping the agreed upon weights and volume of wood pulp or other raw materials, he instead shipped substantially smaller amounts of wood pulp or other raw materials. When the customers called and complained about the short shipments, Anderson falsely told them that short shipments were caused by clerical errors.
Anderson acknowledged that, in order to maximize the profits from his scheme to defraud, he often failed to pay for the materials he obtained and for the freight shipping charges. Anderson also admitted that he spent the funds that his customers sent to him on his own personal expenses.
As he acknowledged in the Plea Agreement, on a few occasions Anderson refunded some money to his victims in order to avoid detection of his scheme. Anderson paid these refunds only after the victims contacted, or threatened to contact, federal law enforcement officials. Anderson admitted that he obtained the funds used to pay these refunds by defrauding additional customers.
Anderson is scheduled to be sentenced on Aug. 22, 2013, at 2:30 p.m. Wire fraud carries a maximum penalty of up to 20 years in prison, a term of up to 3 years of supervised release following imprisonment, a $250,000 fine, and mandatory restitution. The Court may also impose a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. The actual sentence will be determined by the United States District Court, guided by the advisory United States Sentencing Guidelines.
The guilty plea was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Scott A. Verseman.
Plea Agreement
C.R. Bard, Inc. to Pay U.S. $48.26 Million to Resolve False Claims Act ClaimsRead the Press Release
ATLANTA - C.R. Bard, Inc. has agreed to pay the United States $48.26 million to resolve claims that it knowingly caused false claims to be submitted to the Medicare program for brachytherapy seeds used to treat prostate cancer in violation of the False Claims Act. Bard is a New Jersey based corporation that develops, manufacturers, and markets medical products used for a variety of conditions, including prostate cancer.
The settlement requires that Bard pay $48.26 million and it resolves claims relating to Bard’s sale of brachytherapy seeds, a form of radiation therapy, to hospitals. The United States alleged that from 1998 to 2006, Bard provided illegal renumeration to customers and physiciansto induce them to purchase Bard’s seedsin violation of the Anti-kickback Statute, 42 U.S.C. § 1320a-7b(b). The illegal renumeration allegedly took the form of certain grants, guaranteed minimum rebatesconference fees, marketing assistance and/or free medical equipment that Bard paid to customers and/or physicians who used the seeds to perform treatment for prostate cancer. Hospitals ultimately submitted bills to Medicare for these seeds, which the government alleged were rendered false by Bard’s illegal kickback activity. The government alleged that Bard was liable under the False Claims Act for causing the submission of those false claims.
Sally Quillian Yates, United States Attorney for the Northern District of Georgia, said, “Illegal kickbacks in any form pervert our health care system, which is designed to insure that health care providers make decisions based solely on what is best for the patient.”
“We will continue to work with our various law enforcement partners in the pursuit of those who abuse publicly funded health care programs such as Medicare and Medicaid, through criminal prosecutions or civil settlements under the False Claims Act,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “Such abuses as we’ve seen in this case will not be tolerated.”
“Kickbacks, basically no more than bribes, erode trust in the health care system,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region. “Companies paying illegal kickbacks to fatten their bottom lines should be prepared for aggressive investigation and prosecution.”
The civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Julie Darity, a former Bard Manager for Brachytherapy Contracts Administration under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Darity v. C.R. Bard, Inc., et al., Civ. Action No. 1:06-cv-0208-SCJ (N.D. Ga.). Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The former manager will receive $10,134,600 as her share of the civil settlement.
In addition, pursuant to a Non-Prosecution Agreement with the United States, Bard has agreed to pay an additional $2.2 million and to take numerous remedial steps, many of which the company identified and began to implement prior to the criminal investigation, to enhance its corporate compliance program to prevent similar illegal actions in the future. For example, Bard has agreed to refine its Code of Conduct and other written policies and procedures that promote Bard’s commitment to full compliance with all Federal health care program requirements and to develop an effective program to monitor medical education grants provided by Bard to ensure compliance with those requirements.The resolutions announced today are part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.2 billion.
These settlements were the result of a coordinated effort by the United States Attorney?s Office for the Northern District of Georgia; the Department of Justice, Civil Division, Commercial Litigation Branch; the Federal Bureau of Investigation, and the Department of Health and Human Services, Office of Inspector General, in investigating the allegations in this case.The case was prosecuted by Assistant United States Attorneys Neeli Ben-David and Christopher C. Bly.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
C.R. Bard Inc. to Pay U.S. $48.26 Million to Resolve False Claims Act ClaimsRead the Press Release
C.R. Bard Inc. has agreed to pay the U nited States $48.26 million to resolve claims that it knowingly caused false claims to be submitted to the Medicare program for brachytherapy seeds used to treat prostate cancer in violation of the False Claims Act. Bard is a New Jersey based corporation that develops, manufacturers, and markets medical products used for a variety of conditions, including prostate cancer.
The settlement requires that Bard pay $48.26 million and it resolves claims relating to Bard’s sale of brachytherapy seeds, a form of radiation therapy, to hospitals. The United States alleged that from 1998 to 2006, Bard provided illegal remuneration to customers and physicians to induce them to purchase Bard’s seeds, in violation of the Anti-Kickback Statute. The illegal remuneration allegedly took the form of certain grants, guaranteed minimum rebates, conference fees, marketing assistance and/or free medical equipment that Bard paid to customers and/or physicians who used the seeds to perform treatment for prostate cancer. Hospitals ultimately submitted bills to Medicare for these seeds, which the government alleged were rendered false by Bard’s illegal kickback activity. The government alleged that Bard was liable under the False Claims Act for causing the submission of those false claims.
“This settlement is part of the United States’ on-going effort to comb at the payment of illegal kickbacks to health care providers,” said Stuart F. Delery, Acting Assistant Attorney General for the Department of Justice’s Civil Division. “Such illegal payments subvert the medical marketplace and provide an unfair advantage to those who break the law.”
“Illegal kickbacks in any form pervert our health care system, which is designed to insure that health care providers make decisions based solely on what is best for the patient,” said U.S. Attorney for the Northern District of Georgia Sally Quillian Yates.
“We will continue to work with our various law enforcement partners in the pursuit of those who abuse publicly funded health care programs such as Medicare and Medicaid, through criminal prosecutions or civil settlements under the False Claims Act,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “Such abuses as we’ve seen in this case will not be tolerated.”
“Medicare beneficiaries should never have to question whether treatment recommendations are based on their doctors’ best financial interests rather than their best medical advice,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “Companies paying these kickback bribes should expect aggressive investigation and prosecution.”
The civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Julie Darity, a former Bard manager for brachytherapy contracts administration under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Darity v. C.R. Bard, Inc., et al., Civ. Action No. 1:06-cv-0208-SCJ (N.D. Ga.). Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The former manager will receive $10,134,600 as her share of the civil settlement.
In addition, according to a non-prosecution agreement with the United States, Bard has agreed to pay an additional $2.2 million and to take numerous remedial steps, many of which the company identified and began to implement prior to the criminal investigation, to enhance its corporate compliance program to prevent similar illegal actions in the future. For example, Bard has agreed to refine its Code of Conduct and other written policies and procedures that promote Bard’s commitment to full compliance with all Federal health care program requirements and to develop an effective program to monitor medical education grants provided by Bard to ensure compliance with those requirements.
The resolutions announced today are part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.3 billion.These settlements were the result of a coordinated effort by the U.S. Attorney’s Office for the Northern District of Georgia; the Department of Justice, Civil Division, Commercial Litigation Branch; the FBI and HHS-OIG, in investigating the allegations in this case.
Buffalo Woman Pleads Guilty to Wire FraudRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Destinee McBride, 22, of Buffalo, N.Y., pleaded guilty before U.S. District Judge William M. Skretny, to wire fraud affecting a financial institution. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant was part of a scheme to defraud the government by obtaining money from the filing of false tax returns. McBride received the proceeds from one of the fraudulent tax returns which was filed with the Internal Revenue Service and for which the refund was placed on a prepaid debit card. The defendant used that card to obtain cash from an ATM and merchandise from private businesses. As a result of the scheme, losses to the Internal Revenue Service totaled $534,782.00.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.The plea 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.
Sentencing is scheduled for August 29, 2013, at 9:00 a.m. before Judge Skretny.
Buffalo Man Sentenced for Heroin ConspiracyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jay Vellon, 40, of Buffalo, N.Y., who was convicted of conspiracy to possess with the intent to distribute, and to distribute, heroin, was sentenced to 100 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Robert C. Moscati, who handled the case, stated that between June 2008 and February 2010, Vellon conspired with others to distribute heroin in the Buffalo area. The defendant was charged, along with 26 others, in March 2010 following a joint federal, state and local takedown at Rick’s Tally Ho in Cheektowaga and 24K Solid Gold in Hamburg. To date, 26 defendants have been convicted. Assistant U.S. Attorney George C. Burgasser was also involved in the prosecution of this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.Belington Attorney Sentenced to Prison for Defrauding State Public Defender ServicesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
ELKINS, WEST VIRGINIA - A 43 year old Belington attorney was recently sentenced to federal prison for billing the State of West Virginia for services that she did not perform.
According to United States Attorney William J. Ihlenfeld, II, attorney LISA A. WEESE was sentenced by Chief Judge John Preston Bailey to 12 months and 1 day imprisonment to be followed by three years of supervised release.
WEESE entered a plea of guilty on November 6, 2012 to “Mail Fraud.” From September 2006 to September 2011, WEESE was a panel attorney in the Circuit Court of Barbour, Randolph, Tucker and Taylor Counties. During this five-year period, WEESE submitted fraudulent vouchers to West Virginia Public Defender Services claiming to have worked more than 24 hours on each of the forty-eight days and more than 16 hours on an additional one hundred and sixty-eight days. The total amount of loss based on compensation paid to her for work she did not perform was $159,130.08. Judge Bailey is in the process of determining the precise amount of restitution that must be paid by WEESE and will provide a separate order regarding that issue in the near future.
WEESE, who is free on bond, will self-report to the designated Federal institution. The case was prosecuted by Assistant United States Attorney Stephen D. Warner and
investigated by the West Virginia Commission on Special Investigations.Bank Robber Sentenced to 14 Years in Federal PrisonRead the Press Release
Portland, Ore. — James Joseph Bjorne Bennett, 55, most recently of Portland, Oregon and formerly of Fairbanks, Alaska, was sentenced to 168 months in prison today by United States District Judge Michael W. Mosman, for a string of bank robberies Bennett committed in the Portland area in September 2008. On January 4, 2011, Bennett pleaded guilty to five counts of bank robbery and two counts of attempted bank robbery. Upon release from custody, Bennett will serve a 3-year period of supervised release.
“Bank robbers endanger and intimidate tellers and bank employees, as well as anyone else who walks into the bank on the wrong day.” said U.S. Attorney S. Amanda Marshall. “This defendant will have many years in prison to reflect upon the harm he caused numerous people in these seven banks who were just trying to do their jobs and their banking.”
Bennett was arrested by the U.S. Marshals Service in September 2008. Bennett has admitted that on September 15, 2008, he robbed the Wells Fargo Bank on SE McLoughlin Blvd. in Milwaukie; on September 19, 2008, he robbed the West Coast Bank on Southwest Pacific Highway in Tigard; on September 22, 2008, he robbed the US Bank on NE Cornell Rd. in Hillsboro; on September 25, 2008, he attempted to rob the Bank of America on SE 82nd Avenue in Happy Valley and the KeyBank on SE McLoughlin Blvd. in Oak Grove, and he successfully robbed the US Bank on SE Third Street in Gresham; and on September 26, 2008, he robbed the Unitus Community Credit Union on SE Washington Street in Portland. Judge Mosman ordered Bennett to pay full restitution to the victim banks, in the amount of $14,145.98.
This case stemmed from an investigation by the Federal Bureau of Investigation, with invaluable cooperation and coordination from several local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorneys Craig Gabriel and Stacie Beckerman.
Argentine National Sentenced for Receiving and Storing over 700,000 Tablets of Prescription Drugs from OverseasRead the Press Release
LOS ANGELES - A federal judge today sentenced an Argentine man, Felix Gabriel Alderete, to one year of imprisonment for his participation in a conspiracy to traffic in prescription drugs, including Lorazepam, Diazepam, Alprazolam, Ketamine, and Sibutramine.
In January 2013, Alderete pleaded guilty to the offense and admitted that in 2010, he had picked up packages from mailbox facilities in the Los Angeles area that had been sent by express mail from overseas. The packages contained tens of thousands of tablets of these drugs. According to court documents, on October 22, 2010, a search of a storage unit that defendant had visited and for which he had paid rent resulted in the discovery of nearly 60 boxes of over 700,000 tablets and over 5,000 empty pill bottles and bottles with labels. A search of an apartment that Alderete shared with others uncovered nearly 1,000 tablets along with labels and pill bottles, as well as a computer containing spreadsheets documenting sales of pharmaceuticals to customers throughout the country. Defendant left the country shortly after the searches were conducted and he was arrested when he tried to reenter the country in October 2012.
In pronouncing the sentence, United States District Judge Percy Anderson observed that the defendant had participated in a "serious offense" for over seven months that warranted a custodial sentence.This case is the product of an investigation by the Department of Homeland
Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Customs and Border Protection.Release No. 13-068
Sunday 12 May 2013
Monmouth County, N.J., Man Admits Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. - A Monmouth County, N.J., man today admitted using a computer in his home to distribute images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Nathan Brochstein, 40, of Wayside, N.J., pleaded guilty today before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
Brochstein admitted making images and videos depicting child sexual abuse available to others on the Internet via peer-to-peer file sharing software. He also admitted possessing more than 600 images of child sexual abuse on his computer and external hard drive, which were seized from his residence in November 2012. Brochstein acknowledged that among the images and videos of child pornography he possessed and distributed were images and videos that portrayed sadistic or masochistic conduct or other depictions of violence and included images of a prepubescent minor.
The count to which Brochstein pleaded guilty carries a mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison, followed by a mandatory minimum of five years of supervised release and a $250,000 fine. Sentencing is scheduled for Sept. 9, 2014.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-161Defense counsel: Robert Weir Esq., Red Bank, N.J.
Brochstein, Nathan Information
Friday 10 May 2013
Youth Minister at Fifth Street Baptist Church in Levelland, Texas, in Federal Custody for Attempted Enticement of A MinorRead the Press Release
Defendant Also Worked at First Baptist Church in Lubbock, Texas
LUBBOCK, Texas --- Trevor Jacob Fortner, 25, of Lubbock, Texas, made his first appearance in federal court in Lubbock, Texas, this morning, before U.S. Magistrate Judge Nancy M. Koenig, following his arrest on a federal complaint charging attempted enticement of a minor. He was ordered detained, pending a detention hearing set for May 15, 2013. Today’s announcement was made by U.S. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Fortner is a youth minister at the Fifth Street Baptist Church in Levelland, Texas, and he also works at the First Baptist Church in Lubbock, in its publications and graphics department.
According to the affidavit filed in the case, a detective with the Lubbock Police Department (LPD), working in an undercover capacity and posing as a 15-year-old female, “Katy,” encountered an individual via the Internet, later identified as Fortner, who purported to be a 26 year-old married male. “Katy” provided Fortner a telephone number and a new email address and Fortner began sending “Katy” text messages from his cellphone. On May 7, 2013, Fortner sent “Kay” an image of his facial profile as well as a sexually-explicit image. Fortner sent sexually explicit text messages to “Katy,” and ask “Katy” to send him a “dirty pic.” Fortner was arrested by the FBI and LPD on May 8, 2013.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is Life in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The matter is being investigated by the FBI, the LPD and the LPD’s Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Justin Cunningham is prosecuting.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Ricky Hemphill, 20, and Timothy Whitfield, 21, of South Bend, Indiana, defendants in the case US v Shaw et al., pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of racketeering.Whitfield also pled guilty to brandishing a firearm during a crime of violence.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty pleas.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing for both has been set for 8/8/13.These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.These cases are being prosecuted by Assistant United States Attorney Donald Schmid.
Omar Lewis, 34, of Michigan City, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession with the intent to distribute crack cocaine.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 6/26/13.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION:
Ivan Quiroz, 32, of Posen, Illinois, a defendant in the case US v Vargas et al., was sentenced by Senior District Judge Rudy to 25 years imprisonment and 5 years of supervised release after pleading guilty to one count of conspiracy to commit racketeering activity, one count of narcotics conspiracy, two counts of murder in aid of racketeering activity, and two counts of use of a firearm during and in relation to crimes of violence and drug trafficking .This case was the result of an investigation by the Federal Bureau of Investigation , the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement (ICE); the National Gang Targeting, Enforcement & Coordination Center (GangTECC); the National Gang Intelligence Center; the Chicago Police Department; the Griffith Police Department; the Hammond Police Department; the Highland Police Department; the Lake County, Indiana, HIDTA and the Houston, Texas Police Department. This case was prosecuted by Trial Attorney Joseph Cooley of the Department of Justice Criminal Division, Gang Unit, and Assistant United States Attorney David Nozick.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
James Dodson, 28, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession of a firearm in furtherance of a drug trafficking crime.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Tina Nommay.
Luther Vanhoosier, 54, of Redkey, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession of a firearm by a convicted felon.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jay County Sheriff’s Department.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Craig Whigum, 19, and Brenton Ennis, 19, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offenses of robbery of firearms and money and use of a firearm during a crime of violence.Magistrate Cosbey is recommending that the district court accept the tendered guilty pleas.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fort Wayne Police Department, the Allen County Police Department and the New Haven Police Department.These cases are being prosecuted by Assistant United States Attorney Tina Nommay.
Evangelos Doublas, 33, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession with the intent to distribute marijuana. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pulaski County, Missouri Sheriff’s Department and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION:
Danny Villarreal, 28, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 70 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute methamphetamine.This case was the result of an investigation by the Drug Enforcement Administration, the United States Postal Service-Office of the Inspector General and the Allen County Police Department.This case was prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Virginia Man Sentenced to Nearly 20 Years in Prison for Conspiring to Distribute Cocaine-Defendant Hid Cocaine in Secret Compartments of Car-Read the Press Release
WASHINGTON – Darnell Antonio Parker, 43, formerly of Arlington, Va., has been sentenced to 19 years and seven months in prison for conspiring to distribute large quantities of cocaine in the Washington, D.C., metropolitan area, 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) announced today.
Parker pled guilty in December 2012 in the U.S. District Court for the District of Columbia to conspiracy to possess with intent to distribute more than five kilograms of cocaine and money laundering. He was sentenced on May 9, 2013 by the Honorable Emmet G. Sullivan. As part of the sentence, Parker was ordered to forfeit assets in the amount of $375,000. He will be placed on supervised release for five years when his term of incarceration is complete.
According to the government’s evidence, Parker sold large amounts of cocaine to others participating in the drug conspiracy. Parker and others carried out the drug operation from September 2010 through March of 2012, when it was broken up by law enforcement. The network operated in the District of Columbia as well as in suburban Maryland.
Parker was arrested on March 1, 2012, following an investigation led by the FBI/Metropolitan Police Department Safe Streets Task Force. That day, law enforcement was conducting surveillance on Parker as he drove a Honda Accord from Washington, D.C., into a parking lot in Oxon Hill, Md. Law enforcement observed Parker exit the Honda, kneel near the driver’s side, and manipulate something inside. A few moments later, law enforcement stopped Parker a distance away after he entered another person’s vehicle.
Law enforcement stopped Parker and searched him and the Honda Accord. That search revealed approximately $10,000 in cash underneath the front passenger seat, and two secret compartments located in the side panels in the back seat. In one of the compartments, law enforcement discovered six large compressed bricks of powder cocaine that weighed slightly below six kilograms. The search of Parker himself turned up more than $7,000 in cash.
Parker was among numerous people indicted in the case. More than a dozen defendants have pled guilty to charges in the investigation.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The initiative involves more than 150 Safe Streets Task Forces across the country that combat street gangs by combining federal, state and local police resources. The task forces, which began in 1992 in Los Angeles and the District of Columbia, address gang activity, including drug-related crimes.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier thanked those who pursued the investigation from the FBI/MPD Safe Streets Task Force and other agencies. In addition, they expressed appreciation to the Prince George’s County Police Department, the U.S. Park Police, the U.S. Marshals Service, and the Maryland State Police for their assistance in the investigation.
They also acknowledged the efforts of those who worked on the investigation from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Michelle A. Zamarin and Thomas A. Gillice, who are prosecuting the case, and Assistant U.S. Attorneys Zia Faruqui and Anthony Saler, of the Asset Forfeiture and Money Laundering Section.
13-165Villisca, Iowa, Resident Sentenced to 14 Years for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA - On May 7, 2013, Scott Allen Gibbons, a 23 year-old resident of Villisca Iowa, was sentenced to 14 years in prison for receipt of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Gibbons previously pled guilty on January 10, 2013, to the charge of receipt of child pornography.
The charge against Gibbons was the result of an investigation conducted by law enforcement agencies in Iowa and Florida after a complaint by a Florida mother of an eleven year-old boy regarding inappropriate “chats” between the eleven year-old and an adult in Iowa. Investigation showed that Gibbons had established an online relationship with the eleven year-old using a “chat room” component of an on-line game. During the communication, Gibbons convinced the eleven year-old to send to Gibbons a picture of himself constituting child pornography via a text message. The child pornography was located on Gibbons’ cellular telephone by law enforcement, along with similar pictures from unknown prepubescent males.
The investigation was conducted by the Hillsborough County Sheriff Office, Tampa, Florida, and the Iowa Division of Criminal Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
U.S. Attorney's Office for the Western Disrict of Louisiana Observes National Police Week 2013: Honoring and Remembering Our Fallen Law Enforcement OfficersRead the Press Release
Shreveport/Lafayette/Alexandria/Lake Charles/Monroe, La. : Communities across the United States will come together during National Police Week - May 12th through May 18th - to honor and remember those law enforcement officers who made the ultimate sacrifice, as well as the family members, friends and fellow officers they left behind. The U.S. Attorneys will be honoring local heroes at their offices.
“Law enforcement officers face the monumental challenge of protecting and serving the public every day,” stated U.S. Attorney Stephanie Finley. “They risk their lives for all of us, and the men and women of the Western District salute and remember them during National Police Week. We specifically remember those who have fallen while on duty and the legacy of service their sacrifice leaves.”This year, the names of 321 officers killed in the line of duty are being added to the National Law Enforcement Officers Memorial in Washington, D.C. These 321 officers include 120 officers who were killed during 2012, plus 201 officers who died in previous years but whose stories of sacrifice had been lost to history until now.
The fallen officers of 2012 include two members of the law enforcement community in the Western District of Louisiana. Deputy Sheriff Randall L. Benoit, age 41, of the Calcasieu Parish Sheriff’s Office, died in an automobile accident Jan. 18, 2012. He served for 18 years and is survived by his wife. Deputy Sheriff Ricky Ray Issac Jr., age 24, of the Natchitoches Parish Sheriff’s Office, died Dec. 8, 2012, in an automobile accident as well. He is survived by his wife and newborn son.
In order to assist local public safety officers in the work that they do, the U.S. Attorney’s Office, Western District of Louisiana, offers safety and survival training to increase awareness of the hazards they encounter on a daily basis. Some of the training classes offered by the U.S. Attorney’s Office this year are “Use of Force,” “Emotional Survival for Law Enforcement,” “the Bullet Proof Mind,” and “Road Side Interview Techniques.” The remaining courses for 2013 focus on officer safety and survival, and they are offered at various times throughout the year. The course curriculum and sessions are overseen by the Western District’s Law Enforcement Coordinator, Michael Campbell, a former Chief of Police for the city of Shreveport. The Western District of Louisiana consists of 42 of Louisiana’s 64 parishes, and the courses are open to federal, state, local, military and tribal offices.
“We have and will continue to offer officer safety and survival training to increase awareness of the hazards our public safety officers face on a daily basis,” Finley stated. “Our goal is for all public safety officers to return home to their families at the end of their shifts each and every day.”
The names of all 321 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, D.C., during the 25th Annual Candlelight Vigil on the evening of May 13, 2013. So that people across the country can experience this unique and powerful ceremony, the vigil will be webcast live over the Internet beginning at 8 p.m. (EDT) on May 13. To register for this free online event, visit www.LawMemorial.org/webcast.
U.S. Attorney to Deliver 2013 Commencement Address to Southern University Law Center GraduatesRead the Press Release
LAFAYETTE, La.: United States Attorney Stephanie A. Finley will be the keynote speaker for the 2013 Southern University Law Center (SULC) Commencement on Saturday, May 11, 2013, in the F.G. Clark Activity Center on the Southern University Baton Rouge campus. During the day’s event, U.S. Attorney Finely will speak to 173 graduates receiving their juris doctorate degrees.
“I am honored that Southern University Law Center chose me to speak to these students,” Finley said. “They are the future leaders who will serve our communities. It seems like only yesterday that I was where they are. They are now armed with a great legal education, and I am confident that they will be great lawyers who will affect meaningful change in whatever area of law that they choose to practice. I am excited for them, but will emphasize how crucial this time of transition is, and how important it is for them to remember service as they begin the next phase of their lives.
A 1991 Cum Laude graduate of SULC, Finley was recommended by Senator Mary Landrieu and appointed by President Barack Obama on Jan. 20, 2010, to serve as the top federal law enforcement officer in the Western District of Louisiana. She was confirmed by the U.S. Senate on May 28, 2010, and took the oath of office on June 2, 2010, as the first woman appointed to serve as U.S. Attorney in the State of Louisiana.Finley is responsible for overseeing federal criminal prosecutions occurring in 42 of the 64 parishes in the State for crimes ranging from acts of terrorism to public corruption, complex white collar crimes, investment schemes, organized crimes and gang activities, civil rights, internet-related crimes, drug trafficking, firearms violations, violent crimes, child exploitation, environmental crimes, tax evasion, illegal immigration and alien smuggling, among other criminal activity. She is also charged with defending the United States in civil cases and collecting debts owed to the United States.
Prior to her appointment, she served as the Senior Litigation Counsel and the Acting Deputy Chief in the Lafayette office and as an Assistant U.S. Attorney in the criminal divisions of the Shreveport and Lafayette offices of the Western District. Finley has prosecuted cases involving white collar crimes, violent crimes, civil rights, environmental crimes, drug trafficking, public corruption and tax evasion. She also served as a Special Assistant U.S. Attorney in the Western District in 1991-1992 and in the District of South Carolina in 1992-1995.
United States Attorney Finley previously served as a member of the Attorney General Advisory Committee (AGAC). The AGAC is responsible for advising the Attorney General on a broad array of Department of Justice policy issues. In addition to having served on the Attorney General’s Advisory Committee, Finley continues to serve on a number of subcommittees and working groups under the AGAC.
Before joining the U.S. Attorney’s Office in 1995, Finley was on active duty with the U.S. Air Force, stationed at England Air Force Base in Louisiana and Shaw Air Force Base in South Carolina. She currently serves as a Lieutenant Colonel in the U.S. Air Force Reserves where she is a Judge Advocate assigned to the 8th Air Force Global Strike Command located at Barksdale Air Force Base. Prior to being at the 8th Air Force, she was assigned to the 2nd Bomb Wing Judge Advocate General’s Office at Barksdale Air Force Base. Her duties as a JAG officer have included serving as a hearing officer for criminal cases and administrative discharge boards, working in the areas of contract and labor law and military justice as well as providing legal assistance services for active duty, reservists and dependants of the military.
U.S. Attorney Finley has served as the Criminal Bar Examiner and an Assistant Bar Examiner for the Louisiana Bar. She is the recipient of various awards recognizing her leadership and public service. Finley has been honored as a “Top 20 under 40” recipient, one of Lafayette’s “Women Who Mean Business,” a “Person of Excellence” recipient from the National Association of University Women, a Torchbearer’s Award recipient, Grambling State University’s Beacon Award recipient for public service and a public service award recipient at Alpha Kappa Alpha’s Regional Conference.
Finley is a Magna Cum Laude graduate of Grambling State University, where she earned a bachelor’s degree in political science and was selected as one of the nation’s distinguished graduates of the Reserve Officer Training Corps. She is a Cum Laude graduate of SULC where she received her Juris Doctorate in 1991 and was the editor-in-chief of the Southern University Law Review. In 2011, she was inducted into the Southern University Law Center Hall of Fame.
Southern University Law Center (SULC) is located in Baton Rouge, La. The law school was established in 1947. Today SULC has more than 3,000 alumni and is noted as one of the most diverse law schools in the country. In addition to daytime classes, SULC offers a part-time evening program with classes meeting on Monday through Thursday from 6 p.m. to 9 p.m. For more information on Southern University Law Center visit www.sulc.edu.Two Woman Convicted in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Yevette Lauren Walton and Lakisha Lashell Rogers have entered pleas of guilty for conspiring to submit fraudulent tax refund claims in the names of 53 stolen identities during the current 2013 tax season, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI). Walton and Rogers were prosecuted as part of the national Stolen Identity Refund Fraud (SIRF) initiative that has resulted in arrests throughout the United States in recent months.
“These SIRF cases exemplify the IRS’s intense focus on the pursuit of refund fraud and identity thieves,” said Cruz. “We will continue to work in partnership with law enforcement agencies and the U.S. Attorney’s Office to hold those accountable that engage in identity theft and systematically defraud the government and the taxpaying public.”
Today, Walton and Rogers admitted that between Feb. 15, 2013, and Feb. 27, 2013, they met with a tax return preparer, interviewed him and concluded he could prepare and electronically file false tax refund claims for them. Walton and Rogers provided this person with approximately 37 names, Social Security numbers and other means of identification. Walton and/or Rogers told the tax return preparer the names were “good” because they had previously been used to get refunds.
The women also provided automated teller machine debit card routing numbers. This way, the refunds, which were expected to total approximately $220,000, could be credited to the cards and easily used to withdraw funds in an untraceable manner. Walton and Rogers then engaged in a number of telephone conversations with the tax return preparer to check on the status of the refund claims.
Upon their arrests, Walton and Rogers had another 16 names and other means of identification on them intended to be used to file a second set of false and fraudulent refund claims approximately totaling an additional $200,000. Despite Walton’s and Rogers’ efforts, prompt action by federal law enforcement prevented any actual loss to the National Treasury from the use of the 53 stolen identities during 2013. However, actual losses of about $60,000 and attempted losses of approximately $120,000 have been traced to fraudulent tax refunds in 2012.
U.S. District Judge Lee H. Rosenthal, who accepted the guilty pleas, has set sentencing for Aug. 21, 2013, at which time Walton and Rogers face up to 10 years in prison and a $250,000 fine. Both women were arrested March 8, 2013, and have been in custody since that time where they will remain pending sentencing.
The investigation leading to these charges was conducted by IRS-CI and the United States Postal Inspection Service. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Two Perpetrators of Nationwide Foreclosure Rescue Scam - Walkawaytoday.Org - Plead GuiltyRead the Press Release
ALEXANDRIA, Va. – Mark S. Farhood, 49, formerly of San Diego, Cal., and Jason S. Sant, 37, of Lecanto, Fla., pleaded guilty today to conspiracy charges in connection with their operation of a nationwide online foreclosure rescue scam that went by various names, including Home Advocate Trustees and Walk Away Today, and used various web sites, including walkawaytoday.org and sellfastusa.com, to deceive hundreds of vulnerable, distressed homeowners into surrendering their properties to the company.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Christy L. Romero, Special Inspector General for the Troubled Asset Relief Program, or SIGTARP; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the pleas were accepted by United States District Judge Anthony J. Trenga. Farhood and Sant each face a maximum penalty of 30 years in prison when they are sentenced on August 2, 2013, and August 9, 2013, respectively.
According to court records, Farhood and Sant co-owned Home Advocate Trustees, which also went by the names Walk Away Today, First Equity Trustees, Home Security Consultants, Sell Fast USA, Short Sale Buyer, USA Sell House Fast, and USA Rental Housing. They marketed the businesses nationwide as purchasers of distressed real estate and a means by which vulnerable homeowners could avoid foreclosure and the accompanying negative effects on their credit. The companies told homeowners they were in the business of negotiating with lenders to purchase mortgage notes at a discount and falsely claimed to have been in business for seventeen years, to have experienced a 90% success rate in purchasing such notes, and to be the nation’s largest volume buyer of short sale and over-leveraged real estate.
As Sant and Farhood admitted in connection with their pleas, the businesses were a fraud, no such negotiations with lenders ever took place, and the scheme was merely a way for them to take possession of hundreds of residential properties, including homes within the Eastern District of Virginia, at virtually no cost and then reap millions of dollars in profits by renting the homes to unsuspecting tenants.
Farhood and Sant further admitted that as part of the scheme, they submitted fraudulent loan modification applications to mortgage lenders under the U.S. Department of the Treasury’s Home Affordable Modification Program (“HAMP”) in the name of homeowners, without the homeowners’ knowledge or consent. Farhood and Sant used the fraudulent applications to stall foreclosures on the properties under their control and for which no mortgage payments were being made and to maximize the time period during which they could collect rental income.
The homes purportedly sold to Home Advocate Trustees and its related entities ended in foreclosure, harming the participating homeowners and commonly resulting in eviction of the tenants.
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.
This ongoing investigation is being conducted by SIGTARP and the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson is prosecuting the case on behalf of the United States.Two Men Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that brothers Joey White Eagle, age 32, from Fort Totten, North Dakota, and Ansel White Eagle, Jr., age 33, from Bullhead, South Dakota were convicted of Assault by Striking, Beating and Wounding and were sentenced on May 8, 2013 by U.S. Magistrate Judge William D. Gerdes.
Ansel White Eagle, Jr. was sentenced to 6 months in custody and a $10 assessment to the Federal Crime Victims Fund. Joey White Eagle was sentenced to one year of probation with four months of home confinement and a $10 assessment to the Federal Crime Victims Fund.
The convictions stem from a gang fight that occurred on April 24, 2010 at Bullhead between the Little Eagle family and their supporters, and the White Eagle family and their supporters.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Ansel White Eagle, Jr., was remanded to the custody of the U.S. Marshal to begin serving his sentence.
Three Former Employees of Timeshare Consulting Firm Admit Conspiring to Defraud Timeshare OwnersRead the Press Release
CAMDEN, N.J. – Three former employees of The Vacation Ownership Group LLC admitted to conspiring to defraud owners of timeshare properties by offering phony consulting services, U.S. Attorney Paul J. Fishman announced. One of the defendants also admitted to illegally collecting unemployment benefits.
Jeffrey Sawyer, 50, of Mullica Hill, N.J., pleaded guilty today before U.S. District Court Judge Noel L. Hillman in Camden federal court to an Information charging him with one count of conspiracy to commit mail and wire fraud.
Steven Cox, a/k/a “Steve Coluzzi,” 49, of Ventnor, N.J., pleaded guilty on May 7, 2013 before Judge Hillman to a Superseding Information charging him with one count of conspiracy to commit mail and wire fraud.
Eric K. Reiff, a/k/a “Skip,” a/k/a “Skip Ray,” 41, of Ocean City, N.J., pleaded guilty on May 1, 2013, before Judge Hillman to an Information charging him with one count of conspiracy to commit mail and wire fraud and one count of wire fraud.
According to documents filed in these cases and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, had offices in Mays Landing and Egg Harbor Township, N.J., and claimed to offer consulting services to owners of timeshares, including cancelling, purchasing and upgrading the timeshares.
In 2010, the four defendants started working at the VO Group and were trained by VO Group managers to call customers using prepared scripts. The defendants each called customers and gave the customers the false impression that they were working for a bank or lending institution. After hearing defendants’ false representations, some customers sent checks to the VO Group. Reiff falsely told an individual with the initials “SK” that SK could settle all of SK’s timeshare debt for a “one time” price and induced SK to send a check for $21,328.28 to the VO Group. Cox told “NP” that NP could settle his timeshare debt for a large discount by mailing a $26,585 check to the VO Group. Sawyer pretended to be a satisfied VO Group customer to persuade others to send money to the VO Group. Each defendant admitted causing substantial losses: Sawyer admitted causing more than $70,000 in losses; Reiff admitted causing more than $120,000 in losses; and Cox admitted causing more than $200,000 in losses.
Reiff also admitted to devising a separate scheme to defraud the N.J. Department of Labor by collecting unemployment compensation benefits while working at the VO Group. Reiff admitted to applying for and being awarded $12,600 in unemployment compensation benefits to which he was not entitled.
On Jan. 23, 2013, co-owners Adam Lacerda and Ashley Lacerda and other members of the VO Group were charged in a Superseding Indictment with conspiracy to commit mail and wire fraud and other charges. Additional members of the VO Group were also charged by Criminal Complaint in April 2012. As for the Lacerdas and other defendants who have not been
convicted in this case, the charges and allegations against them are merely accusations and they are considered innocent unless and until proven guilty.The mail and wire fraud conspiracy charge to which the three defendants pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. The wire fraud charge to which Reiff pleaded guilty is also punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense.
Sentencings are scheduled as follows: Sawyer and Cox, Sept. 27, 2013; Reiff, Sept. 20, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident
Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special
agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for their roles in the investigation leading to the guilty pleas. He also thanked the N.J. Department of Labor, Benefit Payment Control Unit, for its assistance.The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk, Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
13- 188
Defense counsel:
Reiff: Troy Archie Esq., Cinnaminson, N.J.
Sawyer: Mark E. Roddy Esq., Pleasantville, N.J.
Cox: Jeffrey M. Miller Esq., PhiladelphiaReiff Information
Sawyer Information
Cox Superseding InformationTheodore Edward Whitford Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 9, 2013, before U.S. Magistrate Judge Keith Strong, THEODORE EDWARD WHITFORD, a 27-year-old resident of Box Elder and an enrolled member of the federally recognized Chippewa Cree Indian Tribe, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for August 15, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On April 8, 2011, WHITFORD turned the vehicle he was driving west into the Northern Winz Casino parking lot and was struck by another vehicle traveling north on Highway 87. This vehicle had the right-of-way.
A toxicology report indicated that WHITFORD had a BAC of .265 and screened positive for both opiates and THC. The crash occurred within the exterior boundaries of the Rocky Boy's Indian Reservation.
As a result of the crash, a passenger in the other vehicle was seriously injured. The passenger was diagnosed with a hip fracture and required hospitalization.
WHITFORD faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation, Hill County Sheriff's Office, and the Rocky Boy's Police Department.
St. Bernard Parish, Louisiana Agrees to $2.5 Million Settlementto Resolve Housing Discrimination LawsuitsRead the Press Release
The Justice Department announced today that St. Bernard Parish, La., has agreed to a settlement valued at more than $2.5 million to resolve separate lawsuits by the United States and private plaintiffs alleging that the parish sought to restrict rental housing to African Americans in the aftermath of Hurricane Katrina.
The United States’ lawsuit alleged, among other things, that the parish: (1) passed a law, known as the permissive use permit ordinance, that prevented homeowners from renting single-family homes in residential zones without first obtaining a permit from the parish; (2) revised its zoning code to reduce dramatically the amount of land available for multi-family apartments; and (3) interfered with individuals’ housing rights. The lawsuit further alleged that these actions were done to limit or deny rental housing to African-Americans in violation of the Fair Housing Act. These actions came on the heels of the parish’s other efforts after Hurricane Katrina to restrict rental housing opportunities, including halting the re-establishment or redevelopment of rental housing and enacting a permit requirement for single-family rentals but exempting renters who were “related by blood” to the homeowners. The parish later rescinded these restrictions.
“The Fair Housing Act is clear that local governments cannot use their zoning and land-use laws to discriminate on the basis of race,” said Eric Halperin, Senior Counsel and Special Counsel for Fair Lending in the Civil Rights Division. “People should have the freedom to choose where they live, without regard to race, and this innovative settlement will create greater housing opportunities in the New Orleans area.”
“The right of all of our citizens to enjoy fair and equal access to housing opportunities is guaranteed by our laws,” said Dana Boente, U.S. Attorney for the Eastern District of Louisiana. “The U.S. Department of Justice is committed to fiercely protecting those rights in order to ensure the quality of life all Americans deserve.”
“No community has the right to keep people from living in that community because of their race,” said John Trasviña, U.S. Department of Housing and Urban Development (HUD) Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Justice Department are committed to taking action against municipalities that violate the Fair Housing Act by instituting discriminatory zoning and other housing practices.”
Under the settlement, which still must be approved by the U.S. District Court for the Eastern District of Louisiana, the parish must pay $275,000 to eight aggrieved persons identified by the United States and $15,000 to the United States as a civil penalty, establish a new Office of Fair Housing and hire a fair housing coordinator with a gross annual salary of at least $40,000, spend $25,000 each year in a marketing and advertising campaign to attract renters and developers of multi-family rental housing to the parish, and establish a rental land grant program through which the parish will transfer lands in its possession, free of cost, to qualified persons or entities who are willing to create or rehabilitate housing for rental purposes. The land grant program, which requires the parish to offer lands worth up to $83,000 each year, will last for five years; other programmatic features will last for three. Parish officials must also undergo fair-housing training and provide periodic reports to the United States. In a separate agreement, the parish agreed to pay $1.65 million in compensation, costs and attorneys’ fees to two sets of private plaintiffs.
On Jan. 28, 2011, HUD initiated a fair housing complaint against St. Bernard Parish alleging it adopted and implemented zoning ordinances that denied or restricted housing to persons based on their race. HUD demanded the parish rescind two key discriminatory ordinances and on April 8, 2011, the parish complied. Following its investigation, HUD referred eight complaints from parish homeowners to the Justice Department alleging that the parish’s zoning processes were discriminatory In January 2012 HUD referred the secretary-initiated complaint to the Justice Department as well. The Justice Department conducted its own investigation and filed suit in January 2012.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Related Materials:
St. Bernard Motion for Approval of the Settlement
St. Bernard SettlementSpirit Lake, Iowa Resident Sentenced to 7 Years for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA - On May 8, 2013, Edward S. Robertson, a 26 year-old resident of Spirit Lake, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 7 years in prison for receipt of child pornography, announced United States Attorney Nicholas A. Klinefeldt. In addition, Judge Jarvey ordered that upon release from prison, Robertson will be placed on ten years of supervised release. During supervised release, Robertson will be monitored by the United States Probation Office for compliance with conditions of release set by the Court at the time of sentencing.
Robertson was found guilty by a jury of receiving child pornography on January 15, 2013. The guilty verdict was returned after the jury heard evidence showing that Robertson, while residing in Neola, Iowa, was obtaining images along with videos of prepubescent and adolescent children engaged in sexually explicit conduct over the internet from October of 2008, until March 24, 2009.
The investigation was conducted by the Iowa Division of Criminal Investigations, Cyber Crimes Unit; the Pottawattamie County Attorney’s Office, and Department of Homeland Security. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Spearfish Man Pleads Guilty to Mail Fraud and Misbranding of A DrugRead the Press Release
United States Attorney Brendan V. Johnson announced that John Martin, age 74, of Spearfish, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on May 9, 2013 and pled guilty to a charge of Mail Fraud and a charge of Misbranding of a Drug. The maximum penalty upon conviction is 20 years' imprisonment and/or a $250,000 fine.
Between February 27, 2007 and December 31, 2011, Martin, who is not a physician, instructed a person to send him money and samples of blood, saliva, and hair so he could test the samples for cancer. Additionally, in April 2011 Martin directed a person to take herbal supplement pills as a treatment for cancer.
The investigation was conducted by the U.S. Postal Inspection Service, the U.S. Food and Drug Administration-Office of Criminal Investigations, the South Dakota Division of Criminal Investigation, the Spearfish Police Department, the Belle Fourche Police Department, and the Butte County Sheriff=s Office. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was released on bond pending sentencing.
Seven Indicted on Drug Conspiracy ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on May 9, 2013, Martez Moore, a.k.a. “Tez” and “Mo,” 38, of Belleville, Antwone Johnson, a.k.a. “Twon,” 33, of Cahokia; Dewayne Hill, 38, St. Clair County, Brian Matthews, a.k.a. “Caine,” 46, St. Clair County, Jaren Jamison, a.k.a. “J,” 25, of Cahokia, Bryant Sawyer, 27, St. Clair County, and Orlando Ward, 41, of Belleville, were indicted by a Federal Grand Jury sitting in Benton, Illinois, in a four count indictment charging all in Count 1 with Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, the amount being in excess of five kilograms. All but Ward were also charged in Count 2 with Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Moore and Johnson were also charged in Counts 3 and 4 of the Indictment with Distribution of Cocaine Base, in the form commonly referred to as “crack” cocaine. The Indictment also has a forfeiture allegation relating to four firearms.
The conspiracy is alleged to have taken place from April 5, 2013, to May 7, 2013, in St. Clair and Madison Counties. The allegation contained in Count 2 is alleged to have taken place on May 7, 2013, in St. Clair and Madison Counties. The allegation contained in Count 3 is alleged to have taken place on April 5, 2013, and the allegation contained in Count 4 is alleged to have taken place on April 11, 2013, both in St. Clair County.
If convicted, the maximum penalties are as follows: Count 1 – not less than 10 years, up to life in prison, a $10,000,000 fine, not less than 5 years supervised release, and a $100 special assessment; Count 2 – not less than 5 years, up to life in prison consecutive to the sentence on Count 1, a $250,000 fine, up to 5 years supervised release, and a $100 special assessment; Count 3 – up to 20 years in prison, a $1,000,000 fine, not less than 3 years supervised release, and a $100 special assessment; Count 4 – not less than 5 years, but up to 40 years in prison, a $5,000,000 fine, not less than 4 years supervised release, and a $100 special assessment.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Information leading to the charges was obtained in an investigation conducted jointly by federal, state, and local law enforcement agencies working in partnership.
Rulo Man Sentenced to 18 Months Imprisonment for Failing to Register as a Sex OffenderRead the Press Release
Roger W. Price, age 51 of Rulo, Nebraska, was sentenced for his failure to register as a sex offender. The Honorable Joseph F. Bataillon sentenced Price to an 18 month term of imprisonment. After his release from prison, Price will begin a term of supervised release of 10 years.
Price was previously convicted in the State of Delaware of an offence requiring him to register as a sex offender for life. In October of 2012, United States Marshals Service became aware that Price was living in Rulo, Nebraska. It was determined that Price had been in Nebraska for at least two months. Price had not registered as a sex offender with the Nebraska State Patrol.
This case was the result of an investigation by the United States Marshals Service.
Rocky Mount Return Preparer Sentenced for Preparing False Tax ReturnsRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that yesterday, May 9, 2013, United States District Judge Terrence W. Boyle sentenced DELANE F. ALSTON, of Rocky Mount, North Carolina, for aiding and assisting in the preparation of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(1). ALSTON was sentenced to 41 months imprisonment, followed by a one-year term of supervised release. ALSTON was also ordered to pay restitution in the amount of $121,845.
Mr. Walker stated, “Crooked tax return preparers betray the public trust, wreak havoc on tax administration, and stick honest, law-abiding taxpayers with the bill.”
The investigation revealed that ALSTON worked as a return preparer at P&A Tax Services, a tax return preparation business, between 2007 through 2011. ALSTON initially prepared returns at a P&A Tax Services office located in Rocky Mount, but she later transferred to the Spring Hope, N.C., office. ALSTON was the manager of the Spring Hope office in 2008, 2009 and 2011. Between 2009 and 2011, ALSTON prepared and filed over 100 false and fraudulent federal income tax returns for P&A customers, resulting in estimated tax losses to the government in excess of $600,000. For her services, ALSTON took a cash cut of the unlawful refund amounts generated by the returns she prepared. The false reporting information on the returns included false dependents, deductions, and credits.
Charlotte Field Office Special Agent in Charge Jeannine A. Hammett, IRS-Criminal Investigation stated, “IRS- Criminal Investigation is committed to pursuing tax preparers who undermine the federal tax system by assisting in the filing of ‘padded’ and fraudulent refund claims. Preparers like this defendant seek to enrich themselves by essentially stealing from all of us who pay our taxes honestly. This case demonstrates that these criminals should not expect a slap on the wrist; they should expect to be prosecuted and to spend time in federal prison.”
The investigation of this case was conducted by the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant United States Attorney Adam F. Hulbig.
Reputed Aryan Brotherhood of Texas Gang Leader Pleads Guilty to Federal Racketeering ChargesRead the Press Release
An alleged general of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his membership 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.
Charles Lee Roberts, aka “Jive,” 67, of Beaumont, Texas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Roberts 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. Roberts 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.
By pleading guilty to racketeering charges, Roberts admitted to being a member of the ABT criminal enterprise.
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 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.
At sentencing, scheduled for Sept. 26, 2013, Roberts faces a maximum penalty of life in prison.
Roberts is one of 35 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. Ben Christian Dillon, 40, of Houston; James Marshall Meldrum, 40, of Dallas; Chad Ray Folmsbee, 30, of Houston; and Chrisopher Morris, 37, of Dallas, each previously pleaded guilty to racketeering conspiracy for their roles in the criminal enterprise.
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; 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.
Reputed Aryan Brotherhood of Texas Gang Leader Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – An alleged general of the Aryan Brotherhood of Texas (ABT) gang pleaded guilty today to racketeering charges related to his membership 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.
Charles Lee Roberts, aka “Jive,” 67, of Beaumont, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Roberts 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. Roberts 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.
By pleading guilty to racketeering charges, Roberts admitted to being a member of the ABT criminal enterprise.
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 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.
At sentencing, scheduled for Sept. 26, 2013, at 2:00 p.m., Roberts faces a maximum penalty of life in prison.
Roberts is one of 35 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. Ben Christian Dillon, 40, and Chad Ray Folmsbee, 30, both of Houston; and James Marshall Meldrum, 40, and Chrisopher Morris, 37, both of Dallas, each previously pleaded guilty to racketeering conspiracy for their roles in the criminal enterprise.
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; Texas Department of Criminal Justice – Office of Inspector General; Sheriff’s Offices in Montgomery, Harris, Atascosa, Orange and Waller Counties; Houston Police Department-Gang Division; police departments in Alvin, Carrollton and Mesquite; and District Attorney’s Offices in Montgomery and Atascosa Counties.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.
Quincy Man Sentenced on Charges Related to PrositutionRead the Press Release
BOSTON – A Quincy man was sentenced yesterday on charges related to a prostitution ring.
Jin Liang Chen, a/k/a Mike, 33, was sentenced by U.S. District Judge George A. O’Toole to 28 months in prison, followed by five years of supervised release. In November 2011, Chen pleaded guilty to conspiracy to transport women to travel for the purpose of prostitution, forced labor, and harboring aliens.
From August 2004 through February 2010, Chen, along with Hong Wei, a/k/a Ms. Chen, 37, previously of New York; Xiang Hua Zhang, a/k/a Darren, 27, of New York; Yu En Jin, a/k/a Eric, 26, of Quincy; and Don Kai Chen, 41, of Quincy, engaged in a conspiracy to entice Asian women to travel to Massachusetts to engage in prostitution. The conspiracy involved the use of advertising in various newspapers in New York, California, Massachusetts, and elsewhere, seeking the services of Asian women to work in the defendants’ brothels. The women generally arrived at South Street Bus Station in Boston from New York and elsewhere around the country and were transported by the defendants to various apartments throughout Massachusetts where they then engaged in prostitution. Some of the women were not legally in the United States when they were harbored in the brothels. Some of the women were forced to work in the brothels.
Last month, Hong Wei was sentenced to five years in prison. In November 2011, Zhang was sentenced to 21 months in prison. Jin is pending trial. In March 2012, Don Kai Chen was sentenced to 15 months in prison.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Boston Police Commissioner Edward Davis; Chief Paul Keenan of the Quincy Police Department; Sheriff Thomas M. Hodgson of the Bristol County Sheriff’s Office; and Chief Michael Kent of the Burlington Police Department. The case is being prosecuted by Assistant U.S. Attorneys Laura J. Kaplan and Timothy Moran in the Organized Crime Strike Force Unit.
Previously Convicted Felon Charged in Stolen Identity Tax Refund Scheme and Possession of A FirearmRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), announced the indictment of David Joseph, 27, of Ft. Lauderdale, on identity theft and tax refund fraud charges and possession of a firearm by a convicted felon. Defendant Joseph made his initial appearance in federal court earlier today before U.S. Magistrate Judge Barry S. Seltzer in Ft. Lauderdale.
The indictment charges defendant David Joseph with four counts of filing false claims with the IRS, in violation of 18 U.S.C. § 287, one count of access device fraud, in violation of 18 U.S.C. § 1029(a) (3), four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A (a) (1), and one count of possession of a firearm by a convicted felon, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2). The indictment also includes a forfeiture allegation, pursuant to Title 18, United States Code, Section 924(d)(1).
According to the affidavit filed in support of the criminal complaint, on April 25, 2013, USSS and IRS-CI agents executed a search warrant at a residence in West Park, Florida, regarding possible stolen identities and tax refund fraud (SIRF) activities at the subject location. SIRF involves the unauthorized use of victims’ identities and personal information to file fraudulent tax returns requesting fraudulent, refunds. During the search, the agents recovered numerous notebooks, medical printouts, IRS correspondence, prepaid debit cards, bank documents, and various other documents that contained thousands of access devices— victims’ names with corresponding social security numbers and dates of birth. A fully loaded semi-automatic MasterPiece Arms 9 mm pistol and additional ammunition belonging to defendant Joseph, a previously convicted felon, was also recovered.
If convicted, the defendant faces a maximum of five years’ in prison on each of the fraudulent claims counts, up to 10 years in prison on the access device fraud count, up to 2 years on each aggravated identity theft count, and up to 10 years in prison on the count of possession of a firearm by a convicted felon.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and ATF. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Prattville Man Defrauds Air ForceRead the Press Release
Montgomery, Alabama - James Robert Whitaker, 60, of Prattville, Alabama was sentenced today to 5 years’ probation, $5,000 fine; and $90,356.00 restitution, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Whitaker was a retired Air Force Officer and a civil service employee, of Prattville, Alabama.
On October 16, 2012, Whitaker pled guilty to one count of participating in an act which affected a personal financial interest. Whitaker, while working at the Air Force Legal Operating Agency, directed Air Force JAG officers to stay at local hotels at a higher monetary rate, when housing was available on Maxwell Air Force Base at a much lower rate. As a result, Whitaker received a total of 587,282 Marriott reward points. Whitaker also received an additional 100,000 reward points for other room arrangements. The U.S. Air Force suffered a loss of $90,356.00.
According to U.S. Attorney Beck, “The law is in place to ensure proper handling of government funds and prevent government employees from making transactions based on benefitting themselves instead of the government. My office will prosecute those who use their position with the government to profit illegally.”
This case was investigated by the Air Force Office of Special Investigations at Maxwell Air Force Base, Alabama and prosecuted by Assistant U.S. Attorney Don Valeska.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Phoenix Man Sentenced to 15 Years Jail for Sex-traffickingRead the Press Release
PHOENIX – On May 9, 2013, George Calvin Windley, 33, of Phoenix, Ariz., was sentenced by U.S. District Judge David G. Campbell to15 years imprisonment. Windley pleaded guilty on July 11, 2012, to conspiracy to engage in sex trafficking, in violation of 18 U.S.C. §§1594(c) and 1591(a).
“The United States Attorney’s Office is committed to prosecuting those who prey upon the most vulnerable in our society for personal profit” said U.S. Attorney John S. Leonardo. “Our thanks to the collaborative efforts of the Federal Bureau of Investigation, the Phoenix Police Department and the Scottsdale Police Department that made this successful prosecution possible.”
“The sentencing of George Windley signifies the end of a sex trafficking group that preyed on young women in order to place them into sexual servitude for financial gain” stated FBI Special Agent in Charge Douglas G. Price, Phoenix Field Office. “The actions by Windley and others were humiliating and violent towards the trafficked females. The FBI and our law enforcement partners are committed to holding those accountable who choose to participate in the practice of modern day slavery for the purpose of prostitution.”
Evidence uncovered during the government’s investigation showed that Windley ran a commercial sex prostitution business from 2001 through at least 2009. He “befriended” multiple young women, and lured them into the business by offering drugs, cash, clothing, jewelry, material goods, and the promise of an extravagant lifestyle. Windley targeted those who were the most vulnerable, including victims who had been previously abused as children, came from broken families or were “running away” from home. Some of the victims simply did not have enough money to provide for their children.
Once recruited, Windley used physical force, violence, coercive acts and threatened the use of violence against family members to prevent the women from leaving the business. The victims described how defendant repeatedly struck, punched, kicked, pushed, raped, and used other physical acts and intimidation to scare and bully them. Windley also engaged in various forms of psychological manipulation and emotional coercion against the victims by using their sense of shame or feelings of guilt and existing family issues to control the victims. One victim was confined to a hotel room for a period of several months, during which time he physically and sexually abused her, and forced her to work as a prostitute.All revenues generated by the business were to be given to Windley. The women were forbidden from socializing with other women, and they were never permitted to leave the business or have contact with other black males.
Windley used the Internet to advertise the sexual services of the young women, and also used stolen credit card numbers to manufacture forged credit cards that were then used to supplement the operating expenses of the business.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Phoenix Police Department and the Scottsdale Police Department. The prosecution is was conducted by Josh Parecki, former Assistant U.S. Attorney, and Walter Perkel, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-10-660-002-DGC
RELEASE NUMBER: 2013-039_WindleyFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Pembrook Man Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
On May 11, 2013, Percy C. Jefferson, 34, of Pembrook, IL, pled guilty in United States District Court in Benton to a one-count indictment charging conspiracy to distribute crack cocaine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
The offense occurred between February 2003, and April 27, 2006, in Jackson and Jefferson Counties, Illinois. Jefferson had been a fugitive until September 12, 2012, when he was arrested by members of the Great Lakes Regional Fugitive Task Force. Evidence at the plea hearing established that Jefferson was involved with others in the distribution of crack cocaine in the Murphysboro area. Jefferson admitted that he was responsible for the distribution of more than 840 grams of crack cocaine.
Jefferson is currently being held without bond pending an August 29, 2013, sentencing hearing. At that time, Jefferson faces a term of imprisonment from 20 years to life, 10 years’ supervised release, and a fine of up to $20,000,000. Eight co-defendants have previously been sentenced to prison terms ranging from 120 months - 288 months for their role in the crack cocaine conspiracy.
The investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation and is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Drug Enforcement Administration, United States Marshals Service, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Office Manager of Northern Kentucky Company Sentenced to 51 Months for Mail Fraud and Aggravated Identity TheftRead the Press Release
COVINGTON, KY - Pamela Brown, 43, of Independence, Ky., was sentenced today to 51 months in federal prison by U.S. District Judge David L. Bunning for mail fraud and aggravated identity theft. Judge Bunning also ordered Brown to pay $261,182.45 in restitution.
Brown previously admitted that over a seven year period she embezzled more than $261,000 from her employer, Northern Kentucky Title, Inc. Brown, who worked as the company’s office manager and bookkeeper, also acknowledged that she wrote checks issued from the business’ accounts to pay her personal expenses. She executed this by unlawfully accessing a signature stamp in the business owner’s name.
Brown pleaded guilty to the charges in January of 2013.
Under federal law, Brown must serve 85 percent of her prison sentence, and, upon release, will be under the supervision of the U.S. Probation Office for three years.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge of the Federal Bureau of Investigation, Louisville Division, jointly made the announcement today.
The investigation was conducted by the FBI and local law enforcement. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Christopher L. Nasson.
Northern Kentucky Tax Examiner Accused of Destroying Tax FormsRead the Press Release
COVINGTON, KY - An employee at the IRS Service Center in Kenton County, KY., is accused of destroying hundreds of tax forms.
A federal grand jury returned an indictment Thursday charging Brady James, 30, of Burlington, KY., with one count of destruction of records with intent to impede proper administration of a matter within an agency of the United States.
According to the indictment, in April of this year, James destroyed at least 800 1041 federal income tax return forms that had been submitted to the IRS. These forms are used for individuals earning income from estates and trusts. James worked as a tax examining technician.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Special Agent in Charge Dwaine Brinson, Treasury Inspector General Tax Administration, Chicago Field Division, jointly announced the indictment.
The investigation preceding the indictment was conducted by agents with the Treasury Inspector General for Tax Administration. The indictment was presented to the grand jury by Assistant U.S. Attorney Laura Voorhees.
A date for James to appear in federal court has not yet been set. If convicted he faces a minimum of probation and a maximum of 20 years in prison. However, any sentence following a conviction would come after the court considers the U.S. Sentencing Guidelines and the federal statutes.
The indictment of a person by a grand jury is an accusation only, and that person is presumed innocent unless proven guilty.
Northern Kentucky Bank Employee Accused of Embezzling More Than $130,000Read the Press Release
COVINGTON, KY - A federal grand jury returned an indictment Thursday charging 34-year-old Rebecca Hatfield with bank embezzlement, 46 counts of false entries in bank records, and making a false statement.
According to the indictment, from December 2007 through August 2011, Hatfield embezzled approximately $135,700 from the Bank of Kentucky in Florence, KY.
The indictment further alleges that Hatfield intentionally made false entries into the accounting records and falsely told an FBI agent that she had not embezzled the money and suspected that another bank employee may have done so.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation (FBI), jointly made the announcement today.
The investigation preceding the indictment was conducted by the FBI. The indictment was presented to the grand jury by Assistant United States Attorney Christopher L. Nasson.
Hatfield’s appearance before the United States District Court has not yet been set. If convicted, Hatfield faces a minimum of probation and a maximum prison sentence of thirty years. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
The indictment of a person by a grand jury is an accusation only, and that person is presumed innocent unless proven guilty.
Niagara Falls Man Pleads to Weapons Possession and Witness Tampering ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Rodriguez Brown, 35, of Niagara Falls, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny, to being a felon in possession of a firearm and witness tampering. The charges carry a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that between 2009 and 2010, Brown sold crack cocaine in the City of Niagara Falls. In May 2010, Niagara Falls Police officers executed a search at the defendant’s residence on 77th Street and recovered a loaded shotgun and ammunition. Brown was indicted on charges of being a felon in possession of a firearm and related drug offenses in August of 2010. In April 2012, with federal charges pending, Brown attempted to bribe a witness in the case and was charged additionally with witness tampering.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 27, 2013 at 9:00 a.m. before Judge Skretny.
Niagara Falls Man Pleads to Weapons Possession and Witness Tampering ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Rodriguez Brown, 35, of Niagara Falls, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny, to being a felon in possession of a firearm and witness tampering. The charges carry a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that between 2009 and 2010, Brown sold crack cocaine in the City of Niagara Falls. In May 2010, Niagara Falls Police officers executed a search at the defendant’s residence on 77th Street and recovered a loaded shotgun and ammunition. Brown was indicted on charges of being a felon in possession of a firearm and related drug offenses in August of 2010. In April 2012, with federal charges pending, Brown attempted to bribe a witness in the case and was charged additionally with witness tampering.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 27, 2013 at 9:00 a.m. before Judge Skretny.
New Port Richey Man Sentenced to 15 Years in Prison for Transportation of Child PornographyRead the Press Release
Tampa, Florida - U.S. District Judge Mary S. Scriven sentenced Christopher Brian Mott (52, New Port Richey) to 15 years in federal prison for transportation of child pornography. The court also ordered Mott to forfeit a computer involved in the offense. Mott pleaded guilty on January 30, 2013.
According to court documents, an undercover agent downloaded multiple video files depicting child pornography from Mott in September 2012. On November 7, 2012, federal agents executed a search warrant at Mott's residence. Mott agreed to an interview and confessed to using his computer to access the internet to obtain child pornography and to those files then being available for others to download from him. During the search, agents seized Mott's computer. Subsequent forensics review found that it contained images of child pornography.
In addition, during the sentencing hearing, the Court found that Mott had previously engaged in a pattern of activity involving the sexual abuse or exploitation of a minor. The Court heard testimony from two witnesses who recounted instances of sexual abuse or exploitation perpetrated by Mott while they were minors.
This case was investigated by the Federal Bureau of Investigation and the Largo Police Department, as part of the FBI's Violent Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Neosho Man Sentenced to 14 Years for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Neosho, Mo., man with nearly 1,000 videos and images of child pornography on his computer has been sentenced in federal court for receiving and distributing child pornography over the Internet.
Dustin William Merriman, 26, of Neosho, was sentenced by U.S. District Judge Gary A. Fenner on Thursday, May 9, 2013 to 14 years in federal prison without parole.
Merriman, who pleaded guilty on Dec. 19, 2012, was identified in two separate and unrelated investigations into the distribution of child pornography over the Internet conducted by the FBI in El Paso, Texas and the New Zealand National Police.
Law enforcement officers confronted Merriman at his place of employment. He admitted that he had hundreds of videos and images of child pornography on his laptop, which was kept in a locker at work. A Joplin police detective searched the laptop and located more than 1,000 video files; he viewed over 50 of these video files, which all depicted child pornography. The average age of the children depicted in the videos was between five and seven years old.
Merriman was arrested and officers seized his cell phone, which also contained child pornography.
Investigators conducted a full forensics examination of Merriman’s laptop computer and discovered 386 movies of child pornography and 560 images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI, the Joplin, Mo., Police Department and the New Zealand National Police.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Mt. Pleasant Area Man Sentenced to 100 Months Imprisonment for Drug OffensesRead the Press Release
DAVENPORT, IA – On May 9, 2013, Ferlin Patrick Edgington, age 55, of New London, Iowa, was sentenced to 100 months imprisonment for distribution of methamphetamine and for possession with intent to distribute methamphetamine and marijuana, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Judge James E. Gritzner also sentenced Edgington to four years supervised release, and Edgington forfeited $9370.00 in drug proceeds.
Beginning in 2007 Edgington bought methamphetamine and marijuana from his source in Chicago, Carlos Alvarado. On June 8, 2012, Edgington consented to a search of his residence and agents seized 130 grams of methamphetamine, seven pounds of marijuana, and $9,370 in cash. Alvarado has pled guilty on related charges and his sentencing date is to be determined.
This case was investigated by the Drug Enforcement Administration, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
More Defendants Sentenced in Major Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Today, another four defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced by U.S. District Judge Reed C. O’Connor in federal court in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The following defendants were sentenced today:
- Dock Buckaloo, 39, sentenced to 100 months
- Clinton Dois Clark, 34, sentenced to 100 months
- Andrew Spears, 25, sentenced to 60 months
- Marty Danelle Thomas, 27, sentenced to 46 months
Buckaloo, Clark and Spears each pleaded guilty to one count of conspiracy with intent to distribute and to distribute methamphetamine; Thomas pleaded guilty to one count of being a felon in possession of a firearm.
Buckaloo admitted that on multiple occasions between February and August 2012, he acquired pound and multi-pound quantities of methamphetamine from supply sources, including co-defendant Sergio Arias, and delivered pound and multi-pound quantities of methamphetamine to customers, including co-defendant Steve Ysasaga.
Clark admitted that on multiple occasions between May and July 2012, he received quantities of methamphetamine from Ysasaga. Specifically, during this period, Clark purchased half-ounce quantities of methamphetamine for $600 every day, for three weeks, from Ysasaga. Clark, however, fell behind in paying Ysasaga, and by mid July 2012, he owed Ysasaga approximately $1600. In late July, Clark burglarized a house in Throckmorton County and stole three firearms, which he gave to Ysasaga to try to pay off the $1600 drug debt.
Spears admitted that he received methamphetamine from Ysasaga, which he delivered to customers in the Wichita Falls area. When a state search warrant was executed as his residence in November 2011, officers recovered digital scales and methamphetamine.
In August 2012, when the manager for a hotel in Wichita Falls was inspecting unoccupied rooms, he found Thomas in one of the rooms which was supposed to be vacant. The manager called the police, who discovered that Thomas, a twice-convicted felon, had a .45 caliber semi-automatic pistol in her possession.
Last Friday, May 3, 2013, the following five defendants, who pleaded guilty to their respective roles in the conspiracy, were sentenced by Judge O’Connor as follows:
- Franklin D. Hubbard, 49, sentenced to 60 months
- Tommy James Vasquez, 39, sentenced to 70 months
- Brandi Kay Jennings, 38, sentenced to 96 months
- James Allen Stafford, 44, sentenced to 120 months
- Jesse Carl Langford, 36, sentenced to 137 months
To date, 29 of the 30 defendants charged in this conspiracy have entered guilty pleas; a total of 15 defendants have been sentenced. The cases against two of the defendants have not been resolved.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Medina Chiropractor Sentenced to 2 1/2 Years in Prison for Health Care FraudRead the Press Release
A Medina chiropractor was sentenced to 30 months in prison for overbilling Medicare and insurance companies more than $1.8 million for medical equipment and treatment that were not medically necessary, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Dr. John N. Heary, 39, previously pleaded guilty to seven counts of health care fraud.
“This doctor took advantage of programs designed to provide care and support for the old and the sick,” Dettelbach said. “Our office and the Justice Department are committed to rooting out health care fraud in all its forms.”
“Most medical professionals endeavor to provide quality health care services and submit proper claims for payment to the Medicare program” said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “This doctor chose to exploit Medicare and other insurers for illegal personal gain and paid the price for his criminal acts. The OIG will continue to work with our law enforcement partners to combat fraud in the health care system and protect vital taxpayer dollars.”
Heary did business under his name and two corporate entities. HealthSource of Medina was the operating name of Heary’s chiropractic practice until October 2009. Medina Health & Wellness Center, Inc. was the corporate name under which Heary sold durable medical equipment, according to court documents.
Both entities were located at 433 West Liberty Street, Medina, Ohio, 44256, according to court documents.Heary provided custom-molded ankle-foot orthotics, or “boots”, to patients who did not need them and wrote false diagnoses to justify the billing. He billed Medicare and insurance anywhere from $2,770 to $4,300 for each pair of boots, according to court documents.
He also routinely provided the most expensive back braces without any demonstration of medical necessity or any pursuit of a less costly alternative. He billed Medicare and insurance anywhere from $995 to $1,250 for each back brace, according to court documents.
When patients questioned the necessity of this medical equipment, Heary told them tha they were part of a “free package deal” and would be covered by their insurance, according to court documents.
Hearly also billed for supervised physical therapy often when the patients were not supervised. He also billed for an hour’s worth of physical therapy when, at most, patients did a half hour, according to court documents.
Heary submitted more than $1.8 million in fraudulent claims to Medicare, Anthem Blue Cross and Blue Shield, Medical Mutual of Ohio and the Ohio Bureau of Worker’s Compensation, according to court documents.
The insurance programs reimbursed Heary for more than $812,000. He will repay that amount in restitution, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Michael L. Collyer and Adam Hollingsworth following an investigation by the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, the Federal Bureau of Investigation, the Ohio Bureau of Worker's Compensation and the Ohio Chiropractic Board.
If you suspect health care fraud, waste or abuse, please report it by calling HHS Office of Inspector General at 800-447-8477, the Centers for Medicare & Medicaid Services at 800-633-4227, or the FBI Cleveland Field Office at (216) 522-1400. To learn more about health care fraud prevention and enforcement go to www.medicare.gov.
McLaughlin Woman Sentenced on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota woman appeared before U.S. Magistrate Judge William D. Gerdes on May 9, 2013 and pled guilty to a Superseding Information charging Assault by Striking, Beating and Wounding and Simple Assault.
Thomasine Long Feather, age 21, was sentenced to 30 days in custody on each count to run concurrent, and a $20 special assessment to the Federal Crime Victims Fund.
Long Feather was indicted by a federal grand jury in December of 2012. The conviction stems from an incident during the early morning hours of September 19, 2012 when the Defendant unlawfully entered a home in McLaughlin with the intention of confronting the victim about a prior argument between them. Upon entering the home, the Defendant threw the victim to the ground and began to repeatedly strike the victim on the head and face.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley prosecuted the case.
Long Feather is to self-surrender on May 28, 2013 to begin serving her sentence.
McLaughlin Man Pleads Guilty to Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeffrey Volk, age 42, of McLaughlin, South Dakota appeared before U.S. District Judge Charles B. Kornmann on May 9, 2013 and pled guilty to Count III of the Information that charged him with Lacey Act Violations.
The maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine, or both; 1 year of supervised release and an additional year of supervised release upon revocation. Restitution and a $25 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident in November 2008 wherein Volk illegally shot and killed one 8x6 mule deer in North Dakota. At the time Volk killed the deer, he did not have a North Dakota state deer hunting license or a Standing Rock Sioux Tribe deer hunting license. After illegally killing the deer, Volk transported it to South Dakota in violation of state and federal laws. Volk also admitted to killing one other deer in North Dakota and transporting it to South Dakota.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Volk was released on bond pending sentencing which has been set for August 12, 2013.
Masterminds of Tax Fraud Scheme Exploiting the Homeless and Drug Addicts Sent to PrisonRead the Press Release
United States Attorney Laura E. Duffy announced that two San Diego men were sentenced today for their roles in a long-running tax fraud that exploited both homeless and drug-addicted “customers” to defraud the United States out of hundreds of thousands of dollars.
In today’s court hearing, United States District Judge Anthony J. Battaglia sentenced Isaiah Konkus to serve 10 months in prison and his codefendant Justin Petersen to serve 10 months in prison. Judge Battaglia also ordered both defendants to pay $268,832 in restitution to the Internal Revenue Service.
According to court records, between 2008 and 2011, Konkus and Petersen masterminded a scheme to defraud the IRS by exploiting its “Earned Income Credit” program, also known as the “EIC.” The EIC is designed to help working families by offsetting social security taxes and by providing an incentive for individuals to find and keep work. As part of their fraud, Konkus and Petersen sought out low-income “customers,” including the homeless, single mothers and addicts by soliciting them at trolley stations, homeless shelters and other places in downtown San Diego.
Purporting to act on behalf of their business—variously named “Street Angels” or “SoCal Tax Consultants”—Konkus and Peterson approached potential “customers” and asked whether they wanted “free money from the government.” They then instructed eligible candidates who gave a positive response to sign a blank tax return. Konkus and Petersen then filled in largely false information about income, occupation and dependents on these signed returns in an attempt to qualify their “customers” for the highest possible EIC payment. They then filed these false returns with the IRS, seeking as much as $8,000 in fraudulent payments at a time.
Court filings further show that despite the fact that their work consisted entirely of faking and filing a simple (and false) tax return, Konkus and Petersen charged exorbitant rates to their mostly unsophisticated customers by skimming up to $2,500 of their tax credit. Konkus and Petersen filed more than 1,000 tax returns, spending their ill-gotten gains on luxuries including illegal drugs, a Humvee, a sport fishing trip and a stay in the most expensive suite at a luxury hotel in the Gaslamp District of San Diego on New Year’s Eve.
Konkus and Petersen were charged on October 11, 2012, and pled guilty the same day. As part of their plea agreements, Konkus and Petersen both admitted to violating one count of conspiracy to defraud the United States with respect to false claims and one count each of filing a false tax return. Also as part of their plea agreements, Konkus and Petersen admitted to falsifying their own tax returns, evading more than $35,000 each in internal revenue taxes.
United States Attorney Duffy noted that, “Not only did these defendants cheat the IRS out of hundreds of thousands of dollars, they also exploited some of our community’s most vulnerable— including the homeless and the working poor—for their illegal gain. The IRS’s tireless efforts in this case show that tax fraud is neither a victimless crime nor a crime that our office will tolerate.”
“Isaiah Konkus and Justin Peterson conspired to defraud the US Government by preying on the vulnerable in our society and utilizing their identities to file false tax returns and claiming an Earned Income Tax Credit,” said Jose A. Gonzalez, Special Agent in Charge for IRS Criminal Investigation (CI) Los Angeles Field Office. “The Earned Income Tax Credit Program was created to help the low income working citizens and those who fraudulently abuse the program will be investigated and prosecuted.”
DEFENDANTS Case Number: 12CR4070-AJB Isaiah Konkus
Justin Petersen SUMMARY OF CHARGES AND MAXIMUM PENALTIESCount 1 (both defendants): Conspiracy to Defraud the United States with Respect to Claims – Title 18, United States Code, Section 286. Maximum penalties: 10 years in prison, 3 years of supervised release, $250,000 fine and a $100 special assessment
Count 2 (Konkus only): False Tax Return – Title 26, United States Code, Section 7206(1). Maximum penalties: 3 years in prison, 1 year of supervised release, $250,000 fine and a $100 special assessment.
Count 3 (Petersen only): False Tax Return – Title 26, United States Code, Section 7206(1). Maximum penalties: 3 years in prison, 1 year of supervised release, $250,000 fine and a $100 special assessment.
INVESTIGATING AGENCYInternal Revenue Service – Criminal Investigation
Maryland Woman Sentenced to 132 Months in Prison for Recruiting Pregnant Teen into Sex Trafficking RingRead the Press Release
ALEXANDRIA, Va. – Yanira del Carmen Guerrero Andrade, also known as “Yadira” or “Litsy,” 28, an illegal alien from El Salvador who had been residing in Adelphi, Md., was sentenced today to 132 months in prison, followed by five years of supervised release, for recruiting a 15-year-old, pregnant runaway to engage in commercial sex acts for a trafficking ring with ties to the notorious street gang Mara Salvatrucha Thirteen (“MS-13”).
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Ken Cuccinelli, Attorney General of Virginia, and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after sentencing was pronounced by United States District Judge Liam O’Grady.
“Defendant Guerrero Andrade was in a position to aid the victim of this unconscionable act, but instead of helping her, she helped perpetuate her exploitation,” said U.S. Attorney Neil H. MacBride. “She now has 11 years in federal prison to think about her decision. This prosecution is another example of our commitment to prosecuting anyone who participates in this vile crime.”
“Andrade took advantage of a vulnerable, scared teenage runaway, and instead of helping her, she prostituted her through a gang,” said Cuccinelli. “What is even more sinister is that she took advantage of a young pregnant mother, creating two victims of her crime. The attorney general’s office is committed to fighting human trafficking and protecting Virginia’s most vulnerable citizens from predatory monsters like Guerrero Andrade.”Special Agent in Charge John P. Torres stated, “Guerrero Andrade knew the victim was a minor and exploited that vulnerability by luring her into a life of prostitution with the violent street gang, MS-13. Child sex trafficking is a heinous crime, and HSI is committed to protecting victims and to dismantling human trafficking organizations globally.”
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.
According to documents filed with the court, Guerrero Andrade first met the juvenile victim in 2008 at a nightclub in Hyattsville, Md. At the time, the victim had run away from home. Guerrero Andrade placed the juvenile victim with an MS-13 associate, and later, recruited her to work as a prostitute for an organization run by Guerrero Andrade’s boyfriend, Julio Revolorio-Ramos. Guerrero Andrade and Revolorio-Ramos then transported the victim from Maryland to northern Virginia for purposes of prostitution.
On the first day the victim was trafficked, she was trafficked to approximately 15 customers, and on the third day she was trafficked to 25 customers. Guerrero Andrade knew that the victim was less than 18 years old and instructed her to use an alias and say that she was 20 years old. Several customers requested the victim specifically because she appeared underage. Guerrero Andrade and her boyfriend kept a portion of the proceeds the victim earned. Guerrero Andrade also referred the victim to other traffickers besides her boyfriend so that those “pimps” could also traffic the victim.
Revolorio-Ramos previously pleaded guilty to Sex Trafficking of a Child, and was sentenced to 188 months of incarceration and five years of supervised release.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., with assistance from the Northern Virginia Human Trafficking Task Force. Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum and Assistant United States Attorney Michael J. Frank are prosecuting the case on behalf of the United States.
Founded in 2004, the Northern Virginia Human Trafficking Task Force is a collaboration of federal, state, and local law enforcement agencies – along with nongovernmental organizations – dedicated to combating human trafficking and related crimes.Maryland Woman Pleads Guilty in Scheme That Used Stolen Identifying Information to Seek More Than $20 Million in Fraudulent Tax Refunds-She Allowed Her Bank Account to Be Used for Deposits of Fraudulent Refunds-Read the Press Release
WASHINGTON – April Arnold, 31, of Waldorf, Md. pled guilty today to a federal conspiracy charge stemming from her role in an identity theft and tax fraud scheme involving the filing of returns seeking more than $20 million in fraudulent refunds.
The plea, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr.; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Eric M. Thorson, Inspector General, U.S. Department of Treasury; and David Beach, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Arnold pled guilty before the Honorable Magistrate Judge Alan Kay to a charge of conspiracy to defraud the United States with respect to claims. She will be sentenced at a later date by the Honorable Ellen S. Huvelle. The charge carries a statutory maximum of 10 years in prison, a fine of up to $250,000, restitution, and other penalties. Under federal sentencing guidelines, Arnold likely faces 18 to 24 months in prison and a fine of up to $40,000.
The case represents one of the largest prosecutions to date involving the use of stolen identifying information. Eight other defendants have pled guilty to charges in the case. They include Kevin Brown, 42, of Capitol Heights, Md., a key organizer and leader of the scheme.
According to evidence presented to the Court by Assistant U.S. Attorney Sherri L. Schornstein, Arnold was among participants in a massive identity theft and false tax refund scheme involving an extensive network of more than 100 people, many of whom were receiving public assistance. It also involves bank tellers and postal carriers. From 2006 to date, they allegedly caused the filing of at least 7,000 fraudulent federal income tax returns seeking more than $20 million in refunds. The case remains under investigation.
According to the government’s evidence in this case, the refunds were sought in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. At one nursing home alone, at least 14 identities were stolen, including five from people who were deceased at the time tax returns were filed in their names. Some people sold their identifying information. Some victims unwittingly turned over their identifying information after being told that they were due an income tax refund or were entitled to some “Obama Stimulus Money.”
The government’s evidence showed that participants in the schemes had various roles: some stole the identifying information; some permitted their personal identifying information to be used; some created and mailed the fraudulent federal tax returns; some permitted their addresses to be used for receipt of the refund checks; some helped cash the checks; some provided bank accounts for negotiation of checks, and some forged endorsements of identity theft victims on the refund checks.
The false returns typically claimed that the “taxpayer” operated a sole proprietorship, as a barber or day care provider, claimed phony dependents, and then reported income that was sufficient to generate tax refunds based on the Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes.
From January 2009 through November 2009, Arnold allowed her bank accounts to be used for the deposit and negotiation of 66 fraudulent U.S. Treasury tax refund checks, totaling about $145,351. All but one of these checks had been mailed to various residential addresses in the District of Columbia. Arnold did not know the individuals whose names were listed on the checks that were deposited into her bank accounts.
In announcing the guilty plea, U.S. Attorney Machen, Special Agent in Charge Kelly, Inspector in Charge Barksdale, Inspector General Thorson, and Special Agent in Charge Beach commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo, Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues, and Assistant U.S. Attorney Sherri L. Schornstein, who is prosecuting the case.
13-167