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Friday 10 May 2013
Manhattan U.S. Attorney Announces Recovery of Additional Dinosaur Fossils for Repatriation to MongoliaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced today the recovery of additional dinosaur fossils for return to the Government of Mongolia. In addition to a Tyrannosaurus bataar skeleton previously forfeited to the United States and successfully repatriated to the Mongolian government on May 6, 2013, U.S. District Judge P. Kevin Castel signed a judgment yesterday forfeiting another Tyrannosaurus bataar skeleton (the “Second Bataar”), one Saurolophus Angustirostris skeleton (the “Hadrosaur”), one Oviraptor matrix containing at least five Oviraptor skeletons (the “Raptor Matrix”), and an additional Oviraptor skeleton (the “Raptor”). Also, on May 1, 2013, U.S. District Judge Harold Baer signed a stipulation arranging for the return of fossils including an additional Tyrannosaurus bataar skeleton (the “Third Bataar”); a rock slab containing two Gallimimus skeletons (the “Gallimimus slab”), two additional Gallimimus skeletons, an Ankylosaurus skeleton and skull, a Protoceratops skeleton, and one restored composite egg nest display piece made of composite dinosaur egg fossils provided to the United States Attorney’s Office by Christopher Moore, a British citizen (together, the “Moore dinosaurs”).
Manhattan U.S. Attorney Preet Bharara said: “The recovery of this treasure trove of dinosaur fossils is the latest significant step in returning missing pieces of the Mongolian people’s history that were literally dug out from under them. One cannot put a price tag on cultural artifacts or overstate the importance of their role in a country’s history, and we are delighted to be moving the process of returning these fossils to Mongolia forward.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “Through this investigation, HSI special agents around the country have seized numerous dinosaur skeletons that are pending repatriation to the government of Mongolia. We simply cannot allow the greed of a few looters and schemers to trump the cultural interests of an entire nation. HSI remains a committed partner in the effort to ensure that we investigate individuals involved in stolen foreign art, antiquities, relics and the illicit fossil trade. We look forward to returning these fossils to their rightful owner – the government of Mongolia.”
According to the civil forfeiture and criminal Complaints, the Information, plea agreement, stipulations, and other court documents filed in Manhattan federal court:
The Tyrannosaurus bataar, indigenous to what is now Mongolia, was a dinosaur that lived during the late Cretaceous period, approximately 70 million years ago. It was first discovered in 1946 during a joint Soviet-Mongolian expedition to the Gobi Desert in the Mongolian Ömnögovi Province. Since 1924, Mongolia has enacted laws declaring dinosaur fossils to be the property of the Government of Mongolia, and criminalizing their export from the country.
Between 2010 and 2012, the Bataar skeleton and several other dinosaur fossils from Mongolia were imported into the United States. The customs importation documents contained several false statements. First, the country of origin of the fossils was erroneously listed. In addition, the value of the fossils was substantially understated on the importation documents. Finally, the fossils were incorrectly described.
Texas-based Heritage Auctions, Inc., offered the Bataar for sale at an auction conducted in New York City. Prior to the sale, the Government of Mongolia sought, and a Texas judge granted, a Temporary Restraining Order prohibiting the auctioning, sale, release, or transfer of the Bataar. Notwithstanding the order, Heritage Auctions completed the auction and the Bataar skeleton sold for over $1 million. The United States Attorney’s Office seized the Bataar and initiated a forfeiture action. On February 14, 2013, Judge Castel entered a judgment forfeiting the Bataar skeleton to the United States for its return to Mongolia.
A concurrent criminal investigation revealed that several additional Mongolian dinosaur fossils had been illegally taken from Mongolia, including the Second Bataar and the Raptor. During the investigation, Christopher Moore, a British fossil dealer, contacted the United States Attorney’s Office and informed the Office of his possession of the Moore dinosaurs. Upon being advised that the Moore dinosaurs had been stolen from Mongolia, he agreed to send them to the United States Attorney’s Office for their return to Mongolia.
Meanwhile, two additional dinosaur fossils, the Hadrosaur and the Raptor Matrix, were at one point in the possession of an auction house in California. The auction house agreed to assist in facilitating their return to Mongolia, consenting to the forfeiture of both items.
All of these fossils will now be returned to Mongolia as part of the Office’s efforts to facilitate the repatriation of fossils involved in this case.
Mr. Bharara praised the investigative work of ICE HSI.
The forfeiture action was handled by the Asset Forfeiture Unit of the U.S. Attorney's Office. Assistant U.S. Attorneys Sharon Cohen Levin and Martin S. Bell were in charge of the litigation. The criminal case was handled by the Complex Frauds Unit. Martin S. Bell was in charge of the prosecution.
Hadrosaur Forfeiture Complaint
Lorain County Pair Charged with Human Trafficking OffensesRead the Press Release
A man and woman from Lorain County were charged with human trafficking crimes after forcing a 16-year-old girl and 19-year-old woman to have sex for money, said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office, and Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jeremy Mack, 37, of Elyria, and Ashley Onysko, 23, of Avon Lake, were charged with two counts of sex trafficking (one involving a minor) in a criminal complaint unsealed today in U.S. District Court.
“Human trafficking often happens in plain sight,” Anthony said. “The FBI, our law enforcement partners, along with the assistance of vigilant citizens will continue efforts to tackle this problem.”
“These defendants are accused of preying on teens in our community,” Dettelbach said. “We will work to get help for the victims and bring the accused to justice.”
Mack and Onysko were arrested April 9, 2013 at 8 Tattersal Court in Elyria. Onysko told investigators that she worked for Mack facilitating meetings for sex between girls and men. She posted advertisements on backpage.com and craigslist.com, according to an affidavit filed in the case.
One victim, identified as “Jane Doe #1” was 19 and was forced to have sex for money in order to pay off a drug debt to Mack. Jane Doe #1 said several girls lived at 8 Tattersal Court and were forced by Mack to prostitute themselves in order to pay off their drug debts to him, according to the affidavit.
Jane Doe #1 began seeing several men a day charged to engage in sexual acts with them. Mack or Onysko drove Jane Doe #1 to the appointments but she had to turn all the money over directly to Mack, according to the affidavit.
Jane Doe #1 stated that if she kept any money, she believed Mack would “beat the living crap out of me.” She witnessed him push, hit and choke other girls and said Mack often carried a handgun and stun gun, according to the affidavit.
Another victim, identified as Jane Doe #2, met Mack through Mack’s son in March 2013. Jane Doe #2 noticed that the other girls were afraid of Mack and didn’t seem allowed to leave the house except to meet clients, according to the affidavit.
On March 29, 2013, Mack instructed Jane Doe #2 to get fixed up and instructed other girls to take photos of her for backpage.com. Jane Doe #2 said she didn’t want to be a prostitute but did so because Mack was “a guy with a gun who knew where I lived,” according to the affidavit.
Onysko soon received a call for an appointment with Jane Doe #2. Onysko arranged the meeting and provided Jane Doe #2 with condoms. She gave all the money to Mack. Jane Doe #2 left the house on Tattersal after her parents discovered her photographs on backpage.com, according to the affidavit.
This case is being prosecuted by Assistant United States Attorneys Bridget M. Brennan and Carole Skutnik following an investigation by the FBI and Elyria Police Department.
A criminal complaint is merely an accusation. All defendants are presumed innocent of the charges until proven guilty beyond a reasonable doubt in court.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on May 10, 2013, Rene Antonio Ramos Rodriguez, Sr., age 41 of Lincoln, was sentenced to 11 years and three months (135 months) in prison for conspiracy to distribute methamphetamine between February of 2011 and December of 2011. Following the prison term, Rodriguez will serve five years on supervised release. Rodriguez will also forfeit $7,644 in cash to the United States.
Information provided to law enforcement indicated that between February and December of 2011, Rodriguez was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine. In June of 2011, a search warrant was executed at Rodriguez’s Lincoln residence. During the search, officers found approximately ½ ounce of methamphetamine, three firearms, and a total of $7,644 in cash. In July of 2011, an undercover Nebraska State Patrol investigator and a confidential informant working with the State Patrol purchased approximately 1/8 ounce of methamphetamine from Rodriguez in Lincoln.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff=s Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department, and by the Nebraska State Patrol.
Leader of Cape Cod Cocaine and Heroin Ring Sentenced to 25 Years in PrisonRead the Press Release
BOSTON – One of the leaders of a drug-trafficking organization operating on Cape Cod was sentenced today to serve 25 years in federal prison.
Kelvin Frye, a/k/a Kelvin Andrews, a/k/a Brian Wright, a/k/a Cool Kel, a/k/a Cool Cal, 29, of East Wareham, was sentenced to 25 years in prison by U.S. District Judge Nathaniel M. Gorton. Frye, along with Russell Rose, a/k/a Double R, a/k/a Baby Russell, 31, of Randolph, was convicted in December by a jury of participating in a longstanding, entrenched conspiracy to distribute cocaine and heroin in Falmouth, Mashpee, Bourne, and the surrounding areas on Cape Cod. Fifteen members of the conspiracy were convicted in federal court; a sixteenth member of the conspiracy died while awaiting trial.
From 2008 through 2010, Frye and Rose were the leaders of an organization responsible for distributing large quantities of cocaine and heroin on Cape Cod. In March 2008, agents began investigating members of the organization and intercepted telephone calls to and from seven cellular telephones used by members of the organization. Agents determined that Frye and Rose were the leaders of the organization, that they had various sources of supply for cocaine and heroin, and that they directed others to distribute the drugs for them. During the investigation, agents seized approximately two kilograms of cocaine and more than 300 grams of heroin. Additionally, the organization had been provided access to empty units at a vacation resort in Falmouth, where they stored and processed drugs and firearms.
Frye was responsible for the distribution of at least 14 kilograms of cocaine, along with nearly a kilogram of heroin. Furthermore, Frye, with assistance from other members of the conspiracy, had attempted to smuggle heroin to Anthony Vaughn, a member of the organization who was serving a federal prison sentence in Pollack, LA for a prior federal drug-trafficking conviction. Frye had previously been sentenced to seven months in federal prison for conspiring to smuggle marijuana to Vaughn while Vaughn was incarcerated. Frye was also previously sentenced to 15 months in prison for a state conviction for assault and battery with a dangerous weapon relating to the shooting of a Cape Cod man.
To date, six other members of the conspiracy have been sentenced:
1) Russell Rose, a/k/a Double R, a/k/a Baby Russell, of Randolph was sentenced to 300 months in prison;
2) Omay Ford, a/k/a Papa Doc, 42, of Boston was sentenced to 180 months in prison;
3) Michael Andrews, 25, of Falmouth was sentenced to 135 months in prison;
4) Adalberto Graciani, a/k/a Berto, 39, of Marstons Mills was sentenced to 120 months in prison;
5) Kyle Hicks, a/k/a Sleepy, a/k/a Sleep, 31, of Marstons Mills was sentenced to 120 months in prison; and
6) Jeremy Wobecky, 38, of Falmouth was sentenced to 44 months in prison.United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; John J. Arvantis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Cape and Islands District Attorney Michael O’Keefe; Chief Edward Dunne of the Falmouth Police Department; Chief Rodney Collins of the Mashpee Police Department; Chief Dennis R. Woodside of the Bourne Police Department; Chief Brian E. Stewart of the Scituate Police Department; Chief Russell Jenkins of the Braintree Police Department; Chief Paul MacDonald of the Barnstable Police Department; Sheriff James M. Cummings of Barnstable County; and Sheriff Joseph D. McDonald, Jr. of Plymouth County made the announcement today.
The case is being prosecuted by Assistant United States Attorneys David J. D’Addio and James E. Arnold of Ortiz’s Organized Crime and Drug Enforcement Task Force.
Laredo Bailbonds Manager Sent to Prison for Money LaunderingRead the Press Release
LAREDO, Texas - Elizabeth Nevarez, 44, of Laredo, has been ordered to prison for nearly five years following her conviction of one count of money laundering, United States Attorney Kenneth Magidson announced today. Nevarez entered into a written plea agreement on Monday, Nov, 5, 2012.
Today, U.S. District Judge Diana Saldaña, who accepted the guilty plea, handed Nevarez a sentence of 57 months in prison for her role in laundering drug proceeds. At a lengthy sentencing hearing today, arguments from the defense and prosecution were presented. After careful consideration of the presentence report and arguments of counsel, Judge Saldaña noted that Nevarez “benefited to a great extent from these drug proceeds.” Judge Saldaña ordered the forfeiture of Nevarez’s interest in a residence located on the 6300 block of Springtime Drive in San Antonio and ordered a money judgment in the amount of $98,630.45. Nevarez was also ordered to pay a $3,000 fine and be required to serve a term of three years of supervised release following completion of the prison term.
In the guilty plea, Nevarez admitted to assisting the Ibarra Drug Trafficking Organization in May of 2010 after the arrest of Juan Ramon Ibarra Sr. and two other co-conspirators for cocaine distribution. The Ibarra family approached Nevarez in her capacity as regional manager at AA Best Bail Bonds to obtain bond for Ibarra Sr. During these discussions, Nevarez suggested the Ibarras transfer three valuable Laredo properties into her name in order to avoid seizure by the federal government. Nevarez forged the dates on the warranty deeds of the three properties to make it appear as though they were transferred prior to Ibarra Sr.’s arrest.
Shortly after this transfer, Nevarez sold the properties for substantially less than their market value. She then transferred the proceeds into her personal bank accounts and purchased a house in San Antonio. Specifically, Nevarez admitted to these activities as they related to a residence located on the 400 block of Blue Lake Drive, a property located in the upscale Lakeside community
of Laredo. The residence was constructed by Ibarra Sr. with drug proceeds in 2005.Nevarez was allowed to remain on bond and voluntarily surrender at a later date.
The case is the result of a two-year investigation led by the Drug Enforcement Administration with the assistance of Organized Crime Drug Enforcement Task Force - Financial Investigation and Homeland Security Investigations. Assistant United States Attorneys James Hepburn, Elizabeth Rabe, and Mary Ellen Smyth are prosecuting the case.
Justice Department to Monitor Elections in TexasRead the Press Release
The Justice Department announced today that it will monitor municipal elections on May 11, 2013, in the cities of Corrigan, Farmers Branch, Irving and Orange, Texas, to ensure compliance with the Voting Rights Act of 1965. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Under the Voting Rights Act, the Justice Department is authorized to ask the U.S. Office of Personnel Management (OPM) to send federal observers to jurisdictions that are certified by the attorney general or by a federal court order. Federal observers will be assigned to monitor polling place activities in Farmers Branch and Irving based on the attorney general’s certification. The observers will watch and record activities during voting hours at polling locations, and a Civil Rights Division attorney will coordinate the federal activities and maintain contact with local election officials.
In addition, Justice Department personnel will monitor polling place activities in the cities of Corrigan and Orange. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Jury Returns $39 Million Verdict Against Hospital for Violating Stark Law & False Claims ActRead the Press Release
WASHINGTON, DC - United States Attorney for the Eastern District of North Carolina Thomas G. Walker announced that in federal court on May 8, 2013, a jury returned a $39 million verdict against Tuomey Healthcare System (Tuomey Hospital), located in Sumter, South Carolina for violations of the Stark Law and False Claims Act.
United States Attorney Thomas G. Walker stated, “This case sends a clear message to hospitals that Stark Law and False Claims Act violations will be taken seriously.”
“This verdict sends a message to those who violate the Stark Law by inappropriately profiting from referrals,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region. “The OIG will continue to work aggressively to eliminate this type of behavior which drives referrals to a particular provider, thereby increasing healthcare costs and eliminating fair competition.” “If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].”
Testimony and documents showed that the hospital entered into unlawful contracts that paid physicians in compensation amounts far exceeding market value for their services for the hospital. The Stark Law prohibits hospitals from submitting claims to Medicare for payment based on patient referrals from physicians who have a prohibited financial relationship with the hospital. Because the jury also found that the hospital violated the False Claims Act, the United States is entitled to seek treble damages plus certain other penalties, as provided for in the False Claims Act. Both the government and Tuomey are expected to file post-trial motions in the coming weeks, asking for appropriate relief from the Court.
This case was investigated by the Department of Health and Human Service’s Office of Inspector General. The case was prosecuted by Assistant United States Attorney Norman Acker with the Eastern District of North Carolina and by Tracy Hilmer, Assistant Director, Commercial Litigation Branch of the Justice Department’s Civil Division.
Jose Marco Aguilar Indicted for Illegal ReentryRead the Press Release
JOSE MARCO AGUILAR, age 42, a citizen of Mexico, was charged in a one-count indictment by a Federal Grand Jury today with illegal reentry by an alien previously removed, announced U. S. Attorney Dana J. Boente.
According to the indictment, on or about April 30, 2013, AGUILAR, an alien who had previously been removed from the United States, was found in the United States, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
If convicted, AGUILAR, who was convicted of an aggravated felony prior to his previous removal, faces a maximum term of imprisonment of twenty years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE) and the Jefferson Parish Sheriff’s Office. The pprosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Indictment )
Jason Charles Shouse Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 10, 2013, before U.S. District Judge Sam E. Haddon, JASON CHARLES SHOUSE, a 36-year-old resident of Cascade County, appeared for sentencing. SHOUSE was sentenced to a term of:
Prison: 600 months
Special Assessment: $200
Supervised Release: life
SHOUSE was sentenced in connection with his guilty plea to sexual exploitation of children and production of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
In 1997, in the Eighth Judicial District Court of Montana, SHOUSE pled to sexual intercourse without consent. In June of 1998, he was sentenced to 20 years imprisonment with 18 years suspended. Due to that offense, SHOUSE was required to register as a sex offender.
In July 2012, the Cascade County Sheriff's Office received a report that photos which depicted child pornography were located on one of SHOUSE's old cell phones. The SD card from the old cell phone was seized and searched. Investigators located videos on the SD card which depicted SHOUSE performing sexual acts on an approximately 2-year-old child. SHOUSE was identified on the videos and appeared to have filmed the videos himself in 2008.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SHOUSE will likely serve all of the time imposed by the court. In the federal system, SHOUSE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Internet Crimes Against Children (ICAC) Task Force, the Cascade County Sheriff's Office, and the Montana Division of Criminal Investigation.
Iowa Man Pleads Guilty to Kidnapping and Firearm OffenseRead the Press Release
United States Attorney Brendan V. Johnson announced that Marco Uribe, age 25, of Sioux City, Iowa appeared before U.S. District Judge Charles B. Kornmann on May 9, 2013 and pled guilty to the Superseding Indictment that charged him with Kidnapping and Brandishing a Firearm During, in Relation to, or in Furthermore of a Crime of Violence.
The maximum penalty upon conviction is any term of years, up to life, of imprisonment, a $250,000 fine, or both; 5 years of supervised release and an additional 5 years of supervised release upon revocation. Restitution and a $100 special assessment on each count to the Federal Crime Victims Fund may also be ordered.
The charges stem from an incident in late December 2011, wherein a trailer in Mobridge was burglarized and a large quantity of cocaine and methamphetamine and several thousand dollars in cash was stolen. Marco Uribe and others kidnapped several “suspects” and took them to another location. Once there, the victims were assaulted with shod feet and hit with firearms. Uribe stuck his gun in one victim’s mouth while questioning him about the stolen drugs and cash. The victims denied knowing anything about the thefts. The real burglars were later apprehended.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Uribe was remanded to the custody of the U.S. Marshal Service pending sentencing which has been set for August 12, 2013.
Informational: Federal Court ArraignmentRead 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, the following individual was arraigned:
KEITH CLIFFORD CUNNINGHAM, a 69-year-old resident of Arizona and Montana, appeared on a charge of sexual exploitation of children. He is currently detained. If convicted of this charge, CUNNINGHAM faces possible penalties of a mandatory minimum of 15 years and could be sentenced to 30 years, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was a cooperative effort between the U.S. Department of Homeland Security - Homeland Security Investigations and the Montana Division of Criminal Investigation.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Illegal Alien, Moises Chicaj-imul, IndictedRead the Press Release
MOISES CHICAJ-IMUL, age 26, a citizen of Guatemala, was charged in a two-count indictment by a Federal Grand Jury today with fraud and misuse of a Permanent Resident Card and illegal use of a Social Security Number, announced U.S. Attorney Dana J. Boente.
According to the indictment, on August 12, 2008, CHICAJ, knowingly possessed, used, and attempted to use a Permanent Resident Card, prescribed by law as evidence of authorized stay and employment in the United States, which CHICAJ knew was counterfeited. CHICAJ was also charged with falsely representing that a Social Security number had been assigned to him by the Commissioner of Social Security with intent to deceive for the purpose of completing an Employment Eligibility Verification Form.
If convicted of both counts, GONZALEZ faces a maximum term of imprisonment of fifteen years, a fine of $500,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by United States Immigration and Customs Enforcement, Homeland Security Investigations (ICE). The pprosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Indictment )
Herrin Man Indicted for Bank FraudRead the Press Release
Mark P. Troehler, 38, of Herrin Illinois, was indicted by a federal grand jury sitting in Benton, Illinois, on May 9, 2013, and charged with Bank Fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offense carries a maximum sentence of up to 30 years’ imprisonment, a fine of up to $1,000,000, and mandatory restitution.
The indictment alleges that Mark P. Troehler, from January 2010, and continuing to until August of 2010, engaged in a scheme to defraud the Bank of Marion, in Marion, Illinois, of $71,000. According to the indictment, Mark P. Troehler, who was at the time a contractor, took out a loan from the bank to build a home in Herrin, Illinois, and then utilized the funds for personal and unrelated business expenses, while supplying false documents to the bank indicating the funds were being used to build the home. Troehler ultimately defaulted on the loan.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian.
Four Members of “Show Out” Crew Sentenced to Prison Terms for Series of Assaults-Group Targeted Victims in Chinatown and Other Areas-Read the Press Release
WASHINGTON – Four men, all from Washington, D.C., were sentenced today to prison terms on charges stemming from various gang-related crimes, including beatings, attempted robberies, and obstructing justice, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The defendants were among six men who pled guilty in February 2013, in the Superior Court of the District of Columbia, to actively participating in a crew called “Show Out” that committed crimes in areas including Chinatown, Metro Center, NoMa, Bloomingdale, and Woodley Park. Since at least Jan. 1, 2012, the crew’s members canvassed the areas looking for targets of opportunity and teamed up to assault their victims, rob them of items of value, or both. They pursued people they thought were vulnerable to their surprise attacks, including people traveling alone to or from work, homeless people, and people distracted by their cellphones.
The crew also was accused of engaging in “flash mob” style robberies at drug stores, convenience stores, and gas stations, in which multiple members flooded in to the business at the same time, overwhelming and intimidating the staff, and stealing items.
The Honorable Lynn Leibovitz sentenced the defendants this morning. They included Quayshawn L. Leggett, 20, who allegedly had a senior position in the group; James D. Matheny, 19; Ricardo J. Williams, 20, and Travis L. Morris, 21.
Leggett was sentenced to nine years in prison on one count each of aggravated assault, attempted robbery, and committing a crime while affiliated with a criminal street gang. Matheny also was sentenced to a nine-year prison term, on one count each of aggravated assault, obstructing justice, threats to do bodily harm, and committing a crime while affiliated with a criminal street gang. Williams was sentenced to an 8 ½-year prison term on one count each of aggravated assault, attempted robbery, and committing a crime while affiliated with a criminal street gang. Morris was sentenced to six years and eight months in prison one count each of aggravated assault and committing a crime while affiliated with a criminal street gang.
Upon completion of their prison terms, all four of the defendants will be placed on three years of supervised release.
Two other leaders of the “Show Out” crew, both of Washington, D.C., are scheduled to be sentenced May 24, 2013. They include Bernard Trowell, also known as “McLovin,” 19, described in an indictment as “the self-styled president” of the group, and Deandre M. Williams, 19. Both pled guilty in February 2013 to charges stemming from their roles in the crimes.
“The Show Out crew ambushed vulnerable victims in some of our city’s most vibrant neighborhoods,” said U.S. Attorney Machen. “Today’s sentences hold four members of the crew accountable for their roles in a series of beatings, robberies, and flash mobs. These prison terms are just punishment for the lawless behavior of these young people.”
“This pack of thugs roamed around the city and preyed upon people whom they perceived to be vulnerable,” said Police Chief Lanier. “The level of violence was unjustifiable. I commend the officers and detectives from the First District, the members of the Intelligence Division and our partners at the U.S. Attorney’s Office for their efforts in bringing these criminals to justice.”
As part of their plea agreements, the defendants, along with Trowell and Deandre Williams, admitted participating in various crimes, including these incidents:
-June 5, 2012: Beating in the 600 block of H Street NW
All six defendants who pled guilty in February admitted taking part in the beating of a man near a bus stop in the 600 block of H Street NW. As the victim approached the bus stop, at about 3:20 a.m., he was surrounded and assaulted. Deandre Williams and a juvenile member of Show Out knocked the man to the ground, and then multiple members punched, kicked and stomped him. Deandre Williams and others stole items from the victim while he was on the ground, including his cellphone and bank card. The victim was knocked unconscious for several minutes. He eventually found a police officer and received medical attention. He was treated later for a concussion, broken nose, and bruises to the head, face and torso.
--June 5, 2012: Beating near 2d and K Streets NW
Crew members targeted a second victim at about 3:45 a.m. The victim was walking to work near 2d and K Streets NW when Deandre Williams approached him and struck him repeatedly about the face and head with his fists. During this attack, Deandre Williams shouted racial slurs at the victim. The victim received medical treatment on the scene and later was given stitches to close a bleeding laceration to the side of his face. Deandre Williams pled guilty to assault with significant bodily injury for his role in this attack.
-June 7, 2012: “Flash Mob” near North Capitol Street and Florida Avenue
Ricardo Williams and several others approached a gas station and convenience store at about 4:20 a.m., in the area of North Capitol Street and Florida Avenue. After the station attendant opened the locked door, Williams and the others overwhelmed and intimidated him. They grabbed food or beverage items and fled without paying. Ricardo Williams pled guilty to attempted robbery for his participation in this attack.
-June 19, 2012: Obstruction of Justice
During the evening hours, Deandre Williams and others approached a former associate at a bus stop in Chinatown and threatened to kill him if he talked to police. Deandre Williams pled guilty to obstruction of justice for this incident.
-June 21, 2012: Attack at Metro Center
Leggett and others were on the lower platform at the Metro Center Metro station when they confronted a man at about 5:20 a.m. Leggett demanded money and threatened the victim. The victim did not give him any money, and one of the individuals punched him in the face, knocking him down. Leggett pled guilty to attempted robbery for his role in this attack.
-July 31-Aug. 1, 2012: Threats to Do Bodily Harm, Obstruction of Justice
Matheny posted audio recordings to his Facebook page, in which he is rapping. In three of them, he accused a Show Out member of “snitching.” The songs carried a threat that this member would be shot “on sight.” Matheny pled guilty to threats to do bodily harm and obstruction of justice for these threats.
As part of the plea agreement, the government dismissed charges against the defendants involving four other violent crimes that were charged in the indictment. The indictment covered a total of 10 violent crimes, nine of which occurred during a three-week period in June 2012.
Two other defendants in the case earlier pled guilty to charges, and a third adult member of the crew is still being sought. The investigation into other members of the crew is ongoing.
In announcing the sentences, U.S. Attorney Machen and Chief Lanier commended the work of the officers, detectives and crime scene technicians who worked on the case for the MPD. They also expressed appreciation for the efforts of the Metro Transit Police Department, which assisted in the investigation. Additionally, they thanked local businesses for their assistance in the investigation, including Transwestern, a property management company, and employees of Securitas, a private security firm. Finally, they praised the work of those who are handling the case for the U.S. Attorney’s Office, including Assistant U.S. Attorneys Thomas Bednar and Clare Pozos, who are prosecuting the matter.
13-168Former U.S. Patent & Trademark Office Employee Sentenced to 10 Years in Prison for Enticing A Minor to Engage in Criminal Sexual ActivityRead the Press Release
ALEXANDRIA, Va. — James Raymond Schimmel, 53, of Alexandria, Virginia, was sentenced today to 10 years in prison, followed by 5 years of supervised release, for enticing a minor to engage in criminal sexual activity. At the time of his arrest on October 24, 2012, Schimmel was an employee of the U.S. Patent & Trademark Office.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Washington, D.C., made the announcement after sentencing by United States District Judge Liam O’Grady.
According to court records, Schimmel met the minor victim through the Internet and convinced the victim to meet in person for the purpose of engaging in criminal sexual activity. Schimmel then video recorded the sexual encounter without the victim’s knowledge. Further investigation revealed that Schimmel had been engaging in similar communications with other minors in the mid-Atlantic area.The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Northern Virginia Internet Crimes Against Children Task Force, and the Virginia State Police.
Assistant United States Attorneys Alexander T.H. Nguyen and Ryan K. Dickey are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former School Principal Pleads Guilty to Possession of Child PornRead the Press Release
PHILADELPHIA - Troy Czukoski, 42, of Exton, PA, pleaded guilty today to possessing more than 150, but less than 300, images of children engaging in sexually explicit conduct. At the time of the investigation, Czukoski was serving as Principal of the Springton Lake Middle School in the Rose Tree Media School District in Delaware County. U.S. District Court Judge Legrome D. Davis scheduled a sentencing hearing for August 12, 2013.
Czukoski was identified through a website that sells child porn. Records from that website showed the Czukoski had made purchases from 2008 through 2011. A warrant was then executed on the defendant’s home, during which the defendant confessed that he had purchased the pornographic content over the internet. Agents with the U.S. Postal Inspection Service found numerous CDs and DVDs, as well as two flash drives that contained images and video of child porn.
Czukoski faces a maximum possible sentence of 10 years in prison, a mandatory five years of supervised release up to a lifetime of supervised release, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Michelle Rotella.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former School Business Official, and Treasurer of the Carterville School District, Charged with Embezzling FundsRead the Press Release
Todd Ryan Frazier, 30, of Grand Rapids, Michigan, was indicted by a grand jury and charged in a sixteen count Indictment with: Counts 1 - 3, Embezzlement and Theft from the Carterville School District - a unit of local government that received federal funds; Counts 4 - 13, Wire Fraud in furtherance of a scheme to defraud the Carterville School District; Count 14, False Statements to the Federal Bureau of Investigation; Count 15, Attempting to Access a Computer of a Financial Institution Without Authorization; and Count 16, Uttering a Forged Check of the Carterville School District, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses each carry a total statutory maximum sentence of up to 250 years in prison, a fine of up to $3.400,000 and mandatory restitution.
The Indictment alleges that Todd Ryan Frazier, from August of 2008, and continuing through February of 2012, engaged in a scheme to defraud the Carterville School District, Unit 5, in Williamson County, Illinois, while he was the School Business Official which included the duties and responsibilities to act as the treasurer and payroll officer for the district. The Indictment further alleges that Todd Ryan Frazier lied to the Federal Bureau of Investigation during its investigation when he stated that he had not stolen money from the Carterville School District nor did he make any false entries into Carterville School District’s payroll system.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The Indictment is the result of an investigation conducted by the Federal Bureau of Investigation. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
Former Nigerian Fugitive Heads to Prison in Multi-Million Dollar Fraud SchemeRead the Press Release
HOUSTON – Godwin Chiedo Nzeocha, 56, a naturalized United States citizen originally from the Federal Republic of Nigeria, has been sentenced to 109 months in federal prison for his role in the multi-million dollar City Nursing health care fraud scheme, United States Attorney Kenneth Magidson announced today.
Nzeocha entered a guilty plea on Oct. 19, 2012 to one count of conspiracy to commit health care fraud and one count of money laundering. Nzeocha is the 8th person to be convicted in the $45 million Medicare and Medicaid health care fraud conspiracy.
Today, U.S. District Judge Melinda Harmon, who accepted the guilty plea, handed Nzeocha the more than nine-year sentence after giving him credit for 12 months in custody in the Federal Republic of Nigeria. Judge Harmon cited the huge financial loss to the Medicare program as a significant factor in her sentencing decision, along with the use of mass-marketing and the defendant’s role as a manager and supervisor at the fraudulent physical therapy clinic. Nzeocha was further ordered to pay more than $26 million in restitution to Medicare and Medicaid, jointly and severally with his convicted co-conspirators. As part of his October plea, Nzeocha agreed to forfeit $1,098,320 given to him by the owner of City Nursing, to the United States.
According to the plea agreement, Nzeocha left the United States in 2009 to avoid arrest after receiving a telephone call from a City Nursing co-conspirator the day Umawa Imo, owner of City Nursing Services of Texas Inc., was arrested. Nzeocha admitted he had an agreement with Imo to sign his name on City Nursing patient documents as the provider of physical therapy services that he knew he was not qualified nor did provide to Medicare beneficiaries. The documents included blank treatment data forms, progress notes and daily physical therapy records. Nzeocha further admitted to knowing Imo was buying Medicare beneficiary information from recruiters and paying Medicare beneficiaries cash in order to bill for physical therapy services that were not provided. Nzeocha received approximately $1,098,320 from City Nursing.
Between Dec. 3, 2007, and June 26, 2009, when Nzeocha worked at City Nursing, the company billed Medicare and Medicaid for approximately $35,819,508 worth of physical therapy services that were not provided and received approximately $26,233,122 as payment for those services from Medicare and Medicaid.
Nzeocha is the 8th person to be convicted in relation to the City Nursing health care fraud scheme, including Imo, who was sentenced to 327 months in federal prison.
Nzeocha will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case has been investigated by the FBI, Internal Revenue Service-Criminal Investigation, the Department of Health and Human Services-Office of Inspector General and the Texas Attorney General's Office-Medicare Fraud Control Unit. Assistant United States Attorney Julie Redlinger is prosecuting the case.
Former Niagara Falls Building Commissioner Sentenced for CorruptionRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Guy A. Bax, 66, of Niagara Falls, N.Y., who was convicted of corruptly accepting gratuities in connection with his role as the Building Commissioner for the City of Niagara Falls, was sentenced to two years probation by U.S. District Judge Richard J. Arcara.
First Assistant U.S. Attorney James P. Kennedy, Jr., who handled the case, stated that between 2007 and early 2009, the defendant, in his capacity as Acting Building Commissioner for the City of Niagara Falls, routinely recommended and promoted John Gross and his company, David Gross Contracting, to individuals and entities seeking permits and approvals from the city. Bax also created a perception that it would be in the best interest of those seeking permits from the City to use Gross and his company and if they did so, they would have an easier time obtaining the approvals they sought. In exchange for, and as a reward for Bax's practice of steering business to John Gross and David Gross Contracting, the defendant received, at no cost, various items of value from John Gross and David Gross Contracting. The items included home repairs and maintenance services at Bax's personal residence, such as the remodeling of his bathroom and plowing of his driveway, an expense paid trip, free golf outings, and other benefits.
John Gross was sentenced to 33 months in prison in January 2012 for mail fraud and filing a false tax return.The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Acting Special Agent-in-Charge, Buffalo Division, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni Weinrauch, Special Agent-in-Charge.
Former Maryland Loan Officer Sentenced to 42 Months in Prison for Mortgage Fraud and Identity TheftRead the Press Release
ALEXANDRIA, Va. – Kenneth H. DiPasquale, 38, of Morgantown, W. Va., was sentenced today to 42 months in prison, followed by three years of supervised release, for his role in a series of fraudulent mortgage loan transactions, including one in which he stole an individual’s identity and “sold” that individual his home for a nearly $320,000 profit. DiPasquale was also ordered to pay a total of $3,354,773 in restitution to his victims and to forfeit $529,098 in proceeds from his crimes.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Gary R. Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service made the announcement after sentencing by United States District Judge Anthony J. Trenga. DiPasquale previously pleaded guilty to conspiracy and aggravated identity theft charges on January 25, 2013.
According to court records, DiPasquale was employed in 2007 as a loan officer at Landover, Md., mortgage lender Citywide Mortgage. DiPasquale used that position to process loans based on false and fraudulent information, including for borrowers who had not applied for loans and who had no idea their names and identities had been used as borrowers in the transactions. In particular, DiPasquale processed fraudulent loans in exchange for kickbacks from a co-conspirator. When he had trouble selling his own home in Bowie, Md., in October 2007, he stole the identity of an individual living in Arlington, Va., and “sold” this victim his house at a nearly $320,000 profit. He also engineered a series of transactions involving a homeowner in Hyattsville, Md., whom he swindled out of over $193,000.
Co-conspirator Nadin Samnang, a former Virginia realtor and title company owner, was convicted of mortgage fraud-related charges following a trial in April 2012 and was sentenced to 84 months in prison. Co-defendant Lyle C. Williams pleaded guilty to conspiracy and identity theft charges in November 2012 and was sentenced to 18 months in prison.
This case was investigated by the FBI’s Washington Field Office and the U.S. Postal Inspection Service. Assistant United States Attorney Paul J. Nathanson prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Local Businessman Sentenced to Serve 12 Months and One Day in Prison for Defrauding Victims Who Provided His Business with FinancingRead the Press Release
Vincent Carlos, a self-employed business owner who purchases discount food and other products at wholesale prices and sells them for a profit to discount stores, such as Big Lots, was sentenced today in U.S. District Court in San Diego by United States District Judge Anthony J. Battaglia to serve two concurrent sentences of 12 months' and one day in prison and a three-year term of supervised release, announced United States Attorney Laura E. Duffy. The sentence was based upon his December 6, 2012 guilty plea to two felony counts of wire fraud. In addition, Judge Battaglia ordered Mr. Carlos to pay restitution to the victims in the total amount of $335,106.80.
According to court records, Mr. Carlos, the owner and operator of L.J. Trading, LLC, obtained financing for the purchase of wholesale products from one victim in Illinois and another victim in California. In exchange for their financing, Mr. Carlos paid them a return on their investment. As part of the fraud, Mr. Carlos fabricated a series of deals, emailed and faxed the bogus contracts to the two victims, and promised a return on their investments. Mr. Carlos received more than $335,000 from the two victims in order to finance the fabricated deals. In reality, Mr. Carlos simply used the money to repay both victims for prior deals for which he owed them investment returns. Mr. Carlos used one victim's money to repay the other victim, and vice versa. Eventually, the scheme collapsed when Mr. Carlos was unable to pay the victims the returns he owed them. Before Mr. Carlos could defraud these victims out of more money, the U.S. Secret Service uncovered the fraud and swiftly put an end to it.
Judge Battaglia ordered Mr. Carlos to self-surrender to his designated penal institution not later than June 28, 2013, in order to begin serving his sentence of 12 months and one day.
DEFENDANT Criminal Case No. 12CR3559-AJB Vincent Carlos SUMMARY OF CHARGESTitle 18, United States Code, Section 1343 - Wire Fraud
AGENCYUnited States Secret Service
Foreign National Sentenced on Convictions Related to Trafficking in Cocaine and MethamphetamineRead the Press Release
A citizen of Mexico, who was named, along with nine others in an indictment returned in August 2012, was sentenced on May 10, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Gonzalo Nunez-Camacho, 38, a citizen of Mexico who most recently resided in West Valley City, Utah, had previously entered pleas of guilty to Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine; Conspiracy to Distribute and Possess with the Intent to Distribute Methamphetamine; and Interstate Travel in Support of Racketeering on January 23, 2013. Nunez-Camacho was sentenced to 168 months imprisonment, followed by five years of supervised release. Nunez-Camacho was also ordered to pay a $300 special assessment and to forfeit to the United States the amount of $532,000, in addition to the $35,738 in United States currency which was seized from him by law enforcement on June 23, 2012. In addition, the Court issued a Judicial Order of Removal, which will require that he be deported from the United States following the service of his sentence.
Five of the ten conspirators charged in the indictment have entered pleas of guilty. Three are awaiting trial, and two remain fugitives. An indictment is a formal charge against a defendant. Under the law, those defendants who have not yet been convicted are presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff's Department, and the Nebraska State Patrol. This case was assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Foreign National Sentenced on Cocaine ConspiracyRead the Press Release
A citizen of Mexico, who was named, along with nine others in an indictment returned in August 2012, was sentenced to prison on May 10, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Vincente Lopez, 38, a citizen of Mexico, who most recently resided in Madison, Illinois, had previously entered a plea of guilty to Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine on January 23, 2013. Lopez was sentenced to 46 months imprisonment, followed by two years of supervised release. Lopez was ordered to pay a $100 special assessment and to forfeit $27, 104 to the United States. In addition, the Court entered a Judicial Order of Removal, which will requires that he be deported from the United States following the service of his sentence.
Five of the ten conspirators charged in the indictment have entered pleas of guilty. Three are awaiting trial, and two remain fugitives. An indictment is a formal charge against a defendant. Under the law, those defendants who have not yet been convicted are presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff=s Department, and the Nebraska State Patrol. This case was assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Florida Man Pleads Guilty to Fraud Scheme Against M&T BankRead the Press Release
Buffalo, N.Y.-- The United States Attorney's Office for the Western District of New York announced today that Frank Garcia, 51, of Florida, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to 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 is the former owner of Federal Guaranty Mortgage Company in the State of Florida. Garcia recruited “straw buyers” to obtain mortgages from M&T Bank and other financial institutions then misrepresented their assets and liabilities, failed to record the liens on the properties in the county clerk’s office and failed to pay off pre-existing liens on the properties when they were transferred from one owner to another.
Furthermore, the defendant directed employees of Federal Guaranty Mortgage Company to prepare loan packages for borrowers. The employees were then directed to sign the documents acting as the loan officer. The loan documents were then sent to the investor financial institutions, including M&T Bank. The loan proceeds for the fraudulent loans were subsequently wired into the account of a company associated with Federal Guaranty Mortgage Company. As a result of the defendant's actions, M&T Bank suffered a loss of $4,407,515.48 and the total loss to all financial institutions affected by the fraudulent scheme was approximately $24,000,000.
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 Agency Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.
Sentencing is scheduled for August 15, 2013, at 1:00 p.m. before Judge Arcara.
Fenton Man Charged with Federal Child Sexual Exploitation OffensesRead the Press Release
Timothy Koenck, age 53, of Fenton, Iowa, has been indicted on federal child sexual exploitation charges. The charges are contained in an Indictment unsealed April 22, 2013, in United States District Court in Sioux City.
The Indictment alleges that, between 2010 and 2012, Koenck enticed a minor to engage in sexual activity, traveled across a state line to engage in illicit sexual conduct, received child pornography, and possessed child pornography, after having been convicted of enticement of a minor and possession of child pornography in 2001-2002.
If convicted on all charges, Koenck faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, $1,750,000 in fines, $700 in special assessments, and at least 5 years and up to life on supervised release following any imprisonment.
Koenck appeared on April 22, 2013, in federal court in Sioux City and was held without bond. Koenck’s next appearance for trial is set for July 1, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, the Kossuth County Sheriff’s Office, and the Mower County, Minnesota, Sheriff’s Office.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3016.
Federal Jury Finds Logan Man Guilty of ArsonRead the Press Release
Michael White conspired with couple to set fire to Boone rental duplex for insurance payout
CHARLESTON, W.Va. –A federal jury sitting in Charleston today found a Logan County man guilty in connection with an October 2009 arson that was organized in an effort to collect more than $80,000 in insurance claims, announced U.S. Attorney Booth Goodwin. A federal jury found Michael L. White, 58, of Chapmanville, Logan County guilty on all three counts: conspiracy to commit arson, arson and accessory after the fact. Evidence at trial determined that White conspired with acquaintance, Kimberly Dawn Kinder, and her now deceased husband to set fire to a residential rental unit owned by White that was located in Van, Boone County, W.Va.
Kimberly Dawn Kinder, 46, of Chapmanville, Logan County, W.Va., previously pleaded guilty to her role in the conspiracy in June 2012. White and the Kinders conspired together to set fire to the duplex in order to collect insurance claims.
Late in the evening on October 15, 2009, the Kinders arrived at the Van Duplex. After entering through one of the rental units, Mr. Kinder poured gasoline on a pile of clothes in the living area of one of the units. Mr. Kinder lit the pile of clothes on fire and Mrs. Kinder drove the getaway vehicle.
The Van Volunteer Fire Department later responded to the incident and extinguished the fire, but the property suffered widespread damage. Afterward, White filed an insurance claim with Nationwide Insurance Company (“Nationwide”) as a result of the fire. Nationwide in turn paid White $80,716.51. Evidence at trial determined that White subsequently paid the Kinders a total of approximately $2,000 in small increments as payment for their role in the conspiracy.
White faces up to five years in prison on Count One (conspiracy); five to 20 years on Count Two (arson); and up to two and a half years on Count Three (accessory after the fact) when he is sentenced in August by United States District Judge Thomas E. Johnston.
Kinder faces up to five years in prison and a $250,000 fine when she is sentenced.
The investigation was conducted by the West Virginia State Police. Assistant United States Attorney Thomas Ryan and Larry Ellis handled the prosecution.
Federal Criminal Complaint Filed Against West, Texas Man Charging Him with Possession of A Destructive DeviceRead the Press Release
In Waco this morning, federal authorities filed a criminal complaint (Case #: W13-127M) charging 31-year-old Bryce Ashley Reed with unlawfully possessing an unregistered destructive device announced United States Attorney Robert Pitman and ATF Special Agent in Charge Robert Champion.
According to the complaint, on May 7, 2013, deputies from the McLennan County Sheriff’s Office were dispatched to a residence in Abbott, Texas, where they discovered an assortment of bomb making components. The complaint alleges that Reed had given the components to the resident on April 26, 2013.
ATF agents arrested Reed late yesterday afternoon in West. Reed had his initial appearance in federal court this morning in Waco. He remains in federal custody pending a detention hearing on May 15, 2013, in Waco before United States Magistrate Judge Jeffrey C. Manske.
Upon conviction, Reed faces up to ten years in federal prison and a maximum $250,000 fine.
At this time authorities will not speculate whether the possession of the unregistered destructive device has any connection to the West fertilizer plant explosion on April 17, 2013. This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives together with the McLennan County Sheriff’s Office, McLennan County District Attorney’s Office, West Police Department, Texas State Fire Marshal’s Office and Texas Department of Insurance Fraud Unit. Assistant United States Attorneys Mark Frazier and Greg Gloff are prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Father and Son Linked to Separate Fraud Schemes Arrested at LAX as They Prepared to Leave U.S. with One-Way Plane Tickets to RussiaRead the Press Release
LOS ANGELES – A father and son were arrested yesterday afternoon as they were about to board a plane to Moscow on federal fraud charges that include allegations that the older man sent tens of thousands of bogus “invoices” to small business owners in California in a shakedown scheme that caused at least 5,000 victims to send $225 to a fake company that purported to be a state agency.
The men – Viktor Ryzhkin, 45, of the Little Armenia section of Los Angeles; and his son, Evgenii Ryzhkin, 22, who lived with his father – were arrested late yesterday afternoon at Los Angeles International Airport by federal agents as they prepared to board a Transaero Airlines flight to Russia. The Ryzhkins, both of whom are Russian nationals, and two other family members, all had one-way tickets to Moscow that had been purchased on Monday.
According to a criminal complaint filed Thursday afternoon in United States District Court, Viktor Ryzhkin targeted more than 170,000 California small business owners in a mail fraud scheme that would have brought in nearly $40 million had all of the potential victims complied with demands to send payments to “Corporate Business Filings,” a Beverly Hills company set up and controlled by Viktor Ryzhkin.
The small business owners targeted in this scheme received invoices that appeared to be from the State of California, notifying them that they each owed $225 to the state and directing them to fill out certain forms related to their businesses. The letters sent to the victims – all of which were sent over the course of several days at the end of March and beginning of April – each listed the correct, publicly available California Small Business Administration entity number assigned to the particular small business. The business owners were told in the letters that they would face $250 penalties if they did not remit payment by April 15, 2013, and did not fill out the forms as directed. The letters and invoices that appeared to be from the State of California were completely bogus.
Investigators believe that Viktor Ryzhkin became aware of the investigation into his scheme in late last month. Viktor and Evgenii Ryzhkin, accompanied by the two family members, were about to board a plane at 4:00 p.m. yesterday, when they were arrested by United States Postal Inspectors.
Evgenii Ryzhkin was charged in a separate criminal complaint filed yesterday in United States District Court. Evgenii Ryzhkin is charged with participating in a conspiracy to take over home equity lines of credit in a scheme that caused at least $1.2 million in losses. According to the affidavit in support of the criminal complaint against Eygenii Ryzhkin, he was caught on surveillance video depositing a stolen check linked to a hijacked HELOC account.
Both Ryzhkins are expected to make their initial court appearances this afternoon in United States District Court.
Viktor Ryzhkin is charged in a criminal complaint with mail fraud, which carries a statutory maximum sentence of 20 years in federal prison.
Evgenii Ryzhkin is charged in a separate criminal complaint with bank fraud and conspiracy to commit bank fraud, each of which carries a statutory maximum sentence of sentence of 30 years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
This two cases against the Ryzhkins are being investigated by the United States Postal Inspection Service. The Federal Bureau of Investigations and U.S. Customs and Border Protection assisted during yesterday’s arrests.
Release No. 13-067
Executive Director of Bronx Not-For-Profit Sentenced to Five Months in Prison for Fraud and Obstruction of JusticeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DAVID GRIFFITHS, the Executive Director of the Neighborhood Enhancement for Training Services, Inc. (“NETS”), was sentenced today to five months in prison for mail fraud and for making false statements to the government and obstruction of justice. GRIFFITHS was convicted on May 30, 2012, following a month-long jury trial. U.S. District Judge Alvin K. Hellerstein presided over the trial, and also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “David Griffiths told lie upon lie to cover up his misuse of government grants intended to benefit an important neighborhood enhancement program. And for those crimes, he will now be punished.”
According to the evidence introduced at trial and statements made in court:
Since November 2003, GRIFFITHS served as the Executive Director of NETS, which is a not-for-profit corporation located in the Bronx that received almost all of its funding from government grants. In 2008, the Federal Bureau of Investigation (“FBI”) began investigating the not-for-profit and its use of the government funds it received.
In June 2009, GRIFFITHS knowingly provided the FBI with documents that contained materially false statements and representations in response to a subpoena issued by a grand jury sitting in the Southern District of New York. The materially false statements and representations were made by GRIFFITHS in purported minutes of meetings of the NETS Board of Directors, and related to alleged authorizations he had obtained from the NETS Board to take certain payments as purported salary from NETS. GRIFFITHS provided those purported minutes to the FBI in an attempt to mislead the FBI and to obstruct its investigation. Specifically, he attempted to cover-up tens of thousands of dollars he had taken from NETS with no authorization and his scheme to take almost $200,000 more.
In September 2010, GRIFFITHS attempted to obtain additional grant money from the Dormitory Authority of the State of New York on behalf of NETS under false and fraudulent pretenses. Specifically, in an application he mailed to the Authority’s office in Albany, GRIFFITHS falsely stated that neither he nor NETS and its officers and directors had been the subject of a criminal investigation, a civil investigation, or unsatisfied tax liens and judgments for the past five years. In fact, when GRIFFITHS made these misrepresentations, he knew that he and NETS were under investigation by the FBI as well as by the New York State Attorney General’s Office, and that NETS had unsatisfied tax liens and judgments against it.
In addition to the prison term, GRIFFITHS, 67, of White Plains, New York, was sentenced to two years of supervised release, and ordered to pay a $10,000 fine and a mandatory special assessment of $300.
Mr. Bharara thanked the FBI for its assistance on this case.
This case is being handled by the Office's Public Corruption Unit. Assistant United States Attorneys Carrie H. Cohen and Justin Anderson are in charge of the prosecution.
Essex, Iowa, Resident Sentenced to 6 Months in Prison for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA - On May 9, 2013, Danny Joel Hummel, a 59 year-old resident of Essex, Iowa, was sentenced by United States Senior District Court Judge Robert Pratt to six months in prison followed by ten years of supervised release for possession of child pornography, announced Nicholas A. Klinefeldt. Hummel pled guilty to the charge of possession of child pornography on February 15, 2013.
The charge was the result of an investigation conducted by law enforcement agencies who were advised by the National Center for Missing and Exploited Children that an Essex, Iowa, resident was in possession of child pornography. Based on the information provided by the National Center for Missing and Exploited Children, law enforcement located several computers in Hummel’s residence upon which numerous images and videos containing child pornography were found.
While on supervised release, Hummel’s activities will be monitored by officers of the United States Probation Office for the Southern District of Iowa.
The investigation was conducted by the Iowa Division of Criminal Investigation, Cyber Crimes Unit, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Erie-area Woman Sentenced to 51 Months in Prison for Stealing $1.1 MillionRead the Press Release
ERIE, Pa. - A resident of St. Marys, Pennsylvania, has been sentenced in federal court to 51 months in jail on her conviction of mail fraud and tax evasion and ordered to pay $1,106,403.78 in restitution to Abbott Furnace Company and $428,595.84 to the Internal Revenue Service, United States Attorney David J. Hickton announced today.
Chief United States District Judge Sean J. McLaughlin imposed the sentence on Sandra Ann Prechtel, 51.
According to information presented to the court, Prechtel was an employee of the Abbott Furnace Company who from the period between 2002 and April 2007, engaged in a scheme and artifice to defraud the company and embezzled and spent more than $1,106,403.78 of company money. The Court was further advised that Prechtel engaged in the fraud and stole the money from the company by engaging in a variety of schemes. Prechtel prepared bi-weekly payroll reports reflecting the deductions and pay of employees of the company, but direct deposited or wrote thousands of dollars in additional payroll checks to herself that were not reflected on the company payroll reports; she managed the payroll deductions that would be credited to employee credit union savings accounts and inflated the amount of company funds to be deposited into her own credit union account without regularly deducting those amounts from her pay; she utilized company funds to pay off more than $570,000.00 in personal credit card balances for her personal expenditures; she prepared false W-2 wage forms for herself, understating her income from the company; she manipulated the company's bank and checking account records; and finally, Prechtel concealed these transactions by not properly documenting, or by altering, the company's books, records and accounting system. Also in connection with the guilty plea, the court was further advised Prechtel willfully evaded the payment of income taxes by failing to report as income the money she stole from Abbott Furnace for calendar years 2004, 2005 and 2006. According to information presented at the sentencing hearing, examples of Prechtel's spending of the company money included a $15,500.00 purchase a 2004 Cherokee recreational vehicle, a Harley Davidson motorcycle with custom paint job, a vacuum cleaner for approximately $1,400.00, and multiple trips to Disney World.
Prior to imposing sentence, Judge McLaughlin commented on the impact Prechtel's crime had on Abbott Furnace and its employees, and stated that the sentence imposed reflected the seriousness of her stealing from a company that trusted her and treated her as a friend and member of the Abbott Furnace family. Judge McLaughlin commented further that Prechtel's deception and commission of the offense over so many years became her method of operation and means of livelihood. Judge McLaughlin rejected Prechtel's claim that her health and family responsibilities warranted a sentence reduction. Further, Judge McLaughlin commented that Prechtel's claim that she supposedly used some of the money to buy things for her family rather than for herself was also not a basis for a reduced sentence.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Prechtel.
District Man Sentenced to Five Years in Prison for Sexually Assaulting Woman in Southeast Washington-Victim Rejected Advances and Then Was Attacked-Read the Press Release
WASHINGTON – A 41-year-old man was sentenced today to five years in prison on a charge stemming from a sexual assault earlier this year against a woman with whom he had a child, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant, of Washington, D.C., is not identified here to protect the privacy of the victim and her family. He pled guilty in March 2013 in the Superior Court of the District of Columbia to attempted first-degree sexual abuse. The Honorable Ronna L. Beck sentenced him. Upon completion of his prison term, the man will be placed on five years of supervised release.
According to the government’s evidence, the defendant and the victim once had a romantic relationship and she is the mother of his teenage child. On or about Jan. 10, 2013, he learned that the victim was involved in a romantic relationship with another man, which upset him. That day, he spoke to the victim on the telephone, demanding sex. When she rejected his advances, he showed up at her house in Southeast Washington, sent their child to the store to buy food, and propositioned her again. When the victim rejected his advances and told him that she was seeing someone, the defendant forced her to the bed and sexually assaulted her. During the assault, the defendant told the victim, among other things, that, “you will always be mine.”
In announcing the sentence plea, U.S. Attorney Machen commended the officers and detectives of the Metropolitan Police Department’s Sexual Assault Unit, who investigated the case. He also expressed appreciation to Paralegal Specialists D’Yvonne Key and Kristy Penny, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the case.
13-166Des Moines Man Sentenced to 15 Months for Theft of Walnut Trees from the Army Corps of EngineersRead the Press Release
DES MOINES, IA – On May 9, 2013, Randall Todd Walker, a 50 year old resident of Des Moines, Iowa, was sentenced to 15 months imprisonment for cutting and removing 32 black walnut trees from property under the control of the Army Corps of Engineers and the Department of Interior, U.S. Fish and Wildlife, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also ordered Walker to serve three years of supervised release following incarceration. Judge Jarvey also ordered Walker to pay restitution in the amount of $56,225 and to pay a $100.00 special assessment for the Crime Victims Fund.
Walker had previously pleaded guilty to removing the walnut trees from the Neal Smith National Wildlife Reserve, which is under the control of the Department of Interior, U.S. Fish and Wildlife, as well as from other property under the control of the Army Corps of Engineers at the following locations: the downtown Riverside area in Des Moines, Iowa; the Sycamore area, in Polk County, Iowa; and the Lake Red Rock area in Marion County, Iowa.
The investigation was conducted by U.S. Fish and Wildlife, State of Iowa Department of Natural Resources Law Enforcement Bureau, and the Army Corps of Engineers. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Dallas Woman Sentenced to 78 Months in Federal Prison and Ordered to Pay Approximately $3.43 Million in Restitution for Embezzling from Women’s Southwest Federal Credit Union (WSFCU)Read the Press Release
Theresa Portillo Was Chief Executive Officer at the Now Defunct WSFCU
DALLAS – Theresa Portillo, 44, of Dallas, was sentenced today by U.S. District Judge Barbara M. G. Lynn to 78 months (six and one-half years) in federal prison and ordered to pay $3,431,000 in restitution, following her guilty plea in January 2013 to a felony Information charging one count of embezzlement of funds from a credit union. Portillo voluntarily agreed to forfeit nine parcels of real estate in the Dallas-Fort Worth area, a time share in Cabo San Lucas, Mexico, and personal property including diamond jewelry and four luxury watches. Judge Lynn ordered that Portillo surrender to the Bureau of Prisons on July 16, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
At this morning’s sentencing hearing, the former Chairman of the Women’s Southwest Federal Credit Union (WSFCU) testified that Portillo’s embezzlement scheme caused the credit union to become insolvent and bankrupt. She further explained that the unique mission of the WSFCU was to provide financial assistance to low income women, and that as a result of the scheme, the credit union failed and is no longer available to help poor women in need of financial aid.
According to documents filed in the case, from 2001 to October 2012, while employed at the WSFCU, including the time she served as its Chief Executive Officer, Portillo used deception to fraudulently obtain at least $3,421,000 from 18 different financial institutions in connection with her sale of several certificates of deposits (CDs). She used online services to contact several financial institutions interested in purchasing CD accounts at the credit union.
When a financial institution was willing to purchase a CD, Portillo gave the financial institution wiring instructions to send the purchase funds to a JP Morgan Chase account in the name of the credit union. Portillo used this Chase account to conceal the embezzlement because she knew that credit union officials thought the account was inactive; the account wasn’t recorded on the credit union’s general ledger; and she had sole control of the account. Portillo also concealed her theft of stolen credit union funds by opening a separate credit union account using a false and fictitious name. Portillo avoided detection of the scheme by writing checks using this fictitious name to disburse stolen credit union funds.
After the financial institutions wired funds into the Chase account, Portillo fraudulently disbursed and used these embezzled and stolen credit union funds to purchase motor vehicles, real property and jewelry for her personal use, as well as for family and friends. She also used embezzled funds to pay credit card bills; fund many vacations throughout the U.S., Mexico and Europe; pay family medical expenses; and remodel houses.
The case was investigated by the FBI. Assistant U.S. Attorney David Jarvis prosecuted.
Council Bluffs, Iowa, Resident Sentenced to Prison for Possession of A FirearmRead the Press Release
COUNCIL BLUFFS, IA - On May 7, 2013, Jason Lee Garza, a 32 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 30 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced United States Attorney Nicholas A. Klinefeldt. Garza pled guilty to the charge of a felon in possession of a firearm on February 8, 2013.
The charge was the result of an investigation conducted by the Council Bluffs, Iowa, Police Department, after the officers heard gun shots being fired in the area of 1200 block of Sixth Avenue and responded to that area on October 24, 2012. Officers located several people who reported being shot at by Garza before he had fled the scene. A short time later, officers located Garza in a nearby residence, and the firearm used by Garza was found hidden in a wall of the residence.
The investigation was conducted by the Council Bluffs, Iowa, Police Department, the Pottawattamie County Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Corpus Christi Man Sentenced for Meth TraffickingRead the Press Release
CORPUS CHRISTI, Texas – Jose Manuel Garcia, 38, of Corpus Christi, has been sent to federal prison for his involvement in a methamphetamine trafficking conspiracy, United States Attorney Kenneth Magidson announced today. Garcia and co-defendant Alvaro Villarreal, 57, also of Corpus Christi, pleaded guilty Oct. 23, 2012.
Today, U.S. District Judge Nelva Gonzales Ramos, who accepted the pleas, ordered Garcia to serve a total of 168 months of imprisonment to be followed by a five-year-term of supervised release. At the sentencing hearing, the court learned Garcia was an associate of the Mexican Mafia prison gang and that he had two felony federal convictions for illegal entry after deportation.
Villarreal will be sentenced June 14, 2013 at 9:30 a.m.
On July 30, 2012, agents from the United States Drug Enforcement Administration (DEA) received information that Garcia was in possession of approximately two pounds of methamphetamine and was attempting to sell the substance for $32,000. DEA agents contacted Garcia in an attempt to negotiate a purchase price for the narcotics. While conducting surveillance, agents followed Garcia to a residence in Corpus Christi where Garcia met with Villarreal. Garcia left the residence followed by Villarreal.As Villarreal left the residence, officers conducted a traffic stop at which time Villarreal told DEA agents the methamphetamine was located inside his residence. Villarreal also told agents someone from Matamoros, Mexico, had delivered the narcotics to Villarreal and that he was attempting to sell the narcotics to Garcia. He, in turn, was trying to sell the narcotics to DEA agents. During a search of Villarreal’s residence, agents located a shoe box containing 1.26 kilograms of methamphetamine with a purity level of 97.6%.
DEA agents contacted Garcia again and set up a meeting at Garcia’s residence so that agents could give Garcia the buy money. As Garcia drove towards his residence a traffic stop was conducted and he was arrested. Garcia told agents he was fully aware of the methamphetamine that was located in Villarreal’s residence. Garcia stated he was acting as a broker for the narcotics and that his intentions were to steal the methamphetamine from Villarreal, sell the substance and travel back to Mexico.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by DEA and the Corpus Christi Police Department. The case is being prosecuted by Assistant United States Attorney Hugo R. Martinez.
Convicted ‘Operation Blue Bulldog’ Defendant Faces 10 Years to Life in PrisonRead the Press Release
Peoria, Ill. – Sentencing is scheduled in October 2013 for a Bloomington, Ill., man charged last summer with cocaine trafficking in the Bloomington-Normal area. Perry Harrington, 34, of the 300 block of Riley Drive, was one of the defendants arrested and charged as a result of the cooperative investigation known as “Operation Blue Bulldog” that targeted an alleged network of more than 15 defendants charged with distribution of cocaine and crack cocaine in the area.
A jury deliberated for more than one hour on Wed., Jun. 5, before finding Harrington guilty of the seven counts charged, including two counts of distribution of more than 28 grams of crack cocaine. The government presented evidence during the three days of trial that included video and audio surveillance of Harrington’s sales of cocaine and crack cocaine in 2011.
The charges were the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation known as “Operation Blue Bulldog.” The investigation began in 2010 by the FBI’s Peoria Area Safe Streets Task Force, the Normal Police Department; Bloomington Police Department and the Illinois State Police. Assistant U.S. Attorneys Greggory R. Walters and Bradley W. Murphy represented the government at trial before Chief U.S. District Judge James E. Shadid in Peoria.
At sentencing, scheduled on Oct. 10, 2013, Harrington faces a statutory mandatory minimum penalty of 10 years to life in prison.
Harrington has remained in the custody of the U.S. Marshals Service since his arrest in August 2012.Convicted Terrorist Sentenced to Life for Plotting to Kill Witness in Terrorism Material Support TrialRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge W. Earl Britt sentenced HYSEN SHERIFI, 29, of Raleigh, North Carolina, to life imprisonment. SHERIFI’s co-defendants, SHKUMBIN SHERIFI,23, and NEVINE ALY ELSHIEKH, 48, were also sentenced to 36 months and 42 months imprisonment, respectively, both followed by 3 years supervised release.
Mr. Walker stated, “This case serves as an unfortunate reminder that we must remain ever vigilant in our efforts to detect violent extremists who seek to harm our people and property.”
"Today, a convicted terrorist who plotted from his prison cell to behead federal agents and witnesses received the justice he deserved. As this sentence demonstrates, those who attempt to thwart the judicial process through violence will be prosecuted to the fullest extent of the law. I thank all those who worked to ensure that Hysen Sherifi’s original terrorist plans against U.S. military personnel and others were derailed, and that his subsequent murder-for-hire plot against those who testified against him was thwarted," said John Carlin, Acting Assistant Attorney General for National Security.
“Hysen Sherifi, while in prison on a terrorism conviction, hatched a sinister murder for hire plot against the witnesses and FBI agents who helped convict him. The sentences handed down today send a clear message the FBI and our law enforcement partners will not tolerate attempts to thwart the judicial process,” said John Strong, Special Agent in Charge of FBI Charlotte.
On November 8, 2012, HYSEN SHERIFI (SHERIFI) was found guilty by a jury of all nine counts of the indictment filed against him. SHERIFI was charged with plotting to kill six witnesses who had testified against him at his 2011 terrorism trial (United States v. Boyd, et al.). On November 1, 2012, SHKUMBIN SHERIFI and ELSHIEKH, SHERIFI’s co-conspirators, pleaded guilty to one count of conspiracy to commit murder-for-hire, in violation of 18 U.S.C. § 1958, and each testified during the trial of SHERIFI.
After his October 2011 conviction, and while awaiting his sentencing for the same, SHERIFI plotted to kill three FBI agents and three government informants who testified at his terrorism trial. SHERIFI sought to kill these individuals as revenge for his conviction, to prevent their testimony at co-conspirator, Anes Subasic’s, upcoming trial, and to get a new trial for himself. SHERIFI recruited his brother, SHKUMBIN SHERIFI, and NEVINE ELSHIEKH, a local school teacher to assist him in his plot. The SHERIFIS and ELSHIEKH then raised money to pay for the murders.
In January 2012, ELSHIEKH met with a government informant whom she believed to be the middleman for a hit man, in order to discuss the murder plot and possible targets. ELSHIEKH then relayed that information to SHERIFI during a jail visit. SHERIFI specified that he wanted each target to be beheaded and photographed after the beheading. At a second meeting with the “middleman,” ELSHIEKH confirmed the identity of a government witness to be murdered and made a down payment. The conspirators then worked together to collect the remaining funds needed to pay for the first murder. After collecting the funds, the conspirators arranged another series of meetings with the “middleman” to pay for the murder and get photographic confirmation of the first murder. On January 22, 2012, the conspirators were all arrested shortly after SHKUMBIN SHERIFI accepted pictures from the supposed “middleman,” purporting to show a beheaded government witness.
On February 21, 2012, a nine-count indictment was filed charging SHERIFI, SHKUMBIN SHERIFI, and ELSHIEKH with conspiracy and aiding and abetting in the attempt to use interstate commerce facilities in the commission of murder-for-hire, in violation of 18 U.S.C. §§ 1958(a) and 2; conspiracy and aiding and abetting in the attempt to kill another person, with intent to retaliate against any person for testimony given by a witness in an official proceeding, in violation of 18 U.S.C. §§ 1513(f), 1513(a)(1)(A), and 2; and conspiracy and aiding and abetting in the attempt to kill another person, with intent to prevent the attendance or testimony of any person in an official proceeding, in violation of 18 U.S.C. §§ 1512(k), 1512(a)(1)(A), and 2.
Investigation of this case was conducted by the Federal Bureau of Investigation Resident Agencies in Raleigh and Wilmington, North Carolina, with the assistance of the New Hanover County Sheriff’s Office.
The prosecution is being handled by Assistant United States Attorneys J. Frank Bradsher and Brian S. Meyers of the U.S. Attorney’s Office for the Eastern District of North Carolina, and Trial Attorney Matthew F. Blue of the Counterterrorism Section in the Justice Department’s National Security Division.
Colorado Man sentenced to 186 months prison in Methamphetamine ConspiracyRead the Press Release
Anchorage, Alaska-B U.S. Attorney Karen L. Loeffler announced today that a man from Colorado was sentenced in federal court in Fairbanks for his role in a Fairbanks drug conspiracy.
Mario Gutierrez, 40, from Northglenn, Colorado, was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline. Gutierrez received a sentence of 186 months prison and three years of supervised release. Gutierrez had previously pled guilty to an indictment charging him with one count of drug conspiracy and one count of money laundering.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, between August 2009 and November 2011, Gutierrez sent methamphetamine from the Denver, Colorado, area to a co- conspirator located in Fairbanks. The co-conspirator would pay for the methamphetamine by depositing cash into Gutierrez’s Wells Fargo bank account at bank branches in Fairbanks, and Gutierrez would withdraw the money in Colorado. Between July 2009 and August 2010, $347,000 in cash had been deposited into Gutierrez’s Wells Fargo bank account at bank branches in Fairbanks.
Prior to imposing the sentence, Judge Biestline said this was a large scale methamphetamine distribution scheme perpetrated on the Fairbanks community.
In October 2012, Gutierrez’ co-conspirator Jess Baird of Fairbanks was sentenced in Fairbanks by Judge Beistline to 91 months prison and three years of supervised release for his role in the money laundering and drug trafficking conspiracy.
“The sentencing’s of Mario Gutierrez and his associate, Jess Baird, should let criminals who traffic methamphetamines in our communities know that their prison sentences will reflect the harm they inflict,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in Alaska. “The people of Fairbanks should know that the IRS remains committed to the federal law enforcement team fighting the scourge that is meth.”
Ms. Loeffler commended the Internal Revenue Service Criminal Investigation Division, the Drug Enforcement Administration, the United States Postal Service, the North Pole and Fairbanks Police Departments, and Alaska State Troopers for the investigation leading to the successful prosecution of Gutierrez.
Chicago Police Officer Convicted of Attempted Extortion for Steering Vehicle Tows from Accident Scenes to DriverRead the Press Release
CHICAGO — A Chicago police officer was convicted today of obtaining two extortion payments totaling $3,200 from a cooperating tow truck driver, in exchange for steering vehicle tows from accident scenes, during an undercover investigation. The defendant, DEAVALIN PAGE, who was assigned to the South Chicago District at the time, was relieved of his police powers and assigned to desk duty following the payments that occurred in late 2007 and early 2008. Page was convicted on two counts of attempted extortion by a federal jury that deliberated a little more than two hours this morning after being presented with video recordings and other evidence of the payments during a trial that began Monday in U.S. District Court.
Page, 46, of Chicago, an officer since 1995, faces a maximum penalty of 20 years in prison and a $250,000 fine on each count of attempted extortion. He remains free on bond pending sentencing, which U.S. District Judge John Darrah scheduled for 1 p.m. on Oct. 23.
Page was indicted last October as part of the Federal Bureau of Investigation’s Operation Tow Scam, a corruption probe of police officers who steered vehicle tows at accident scenes to favored tow drivers in exchange for extortion payments. Page is the eighth police officer to be convicted, along with four civilians – three of them tow truck drivers, and charges are pending against two additional police officers.
Evidence at the trial showed that Page obtained two payments from a cooperating tow truck driver, Brian Chandler, in exchange for steering him various tows. Chandler has pleaded guilty to wire fraud and bank larceny and is awaiting sentencing. The first payment, on Nov. 28, 2007, was $2,000 in the bathroom of a coffee shop at 79th Street and Stoney Island. The second payment, on Jan. 28, 2008, was $1,200 in the parking lot of a bank while Page was in his private vehicle. The latter payment, in part, was in exchange for towing three cars, at least one of which did not require towing, from an accident scene at 86th and Burnham involving a teenager who was driving her parents’ insured car.
The guilty verdict was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Garry F. McCarthy, Superintendent of the Chicago Police Department.
The government is being represented by Assistant U.S. Attorneys Michael Donovan and Steven Grimes.
Carrollton Man Charged with Enticement of A MinorRead the Press Release
David G. Driskill, 65, of Carrollton, Illinois, was charged in federal district court with Enticement of a Minor, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The alleged violation took place between on or about May 1, 2013, and May 10, 2013, in Jersey County. After a detention hearing held today, the Court ordered that Driskill be held without bond pending trial.
The offense charged in the Complaint alleges that, between on or about May 1, 2013, and May 10, 2013, Driskill attempted to persuade, induce, entice, and coerce a minor to engage in sexual activity.
A trial date has not yet been set. If convicted of Enticement of a Minor, Driskill faces a term of in prison of not less than ten (10) years, up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This investigation was conducted by the United States Secret Service’s Southern Illinois Cyber-Crime Unit, the Illinois State Police, and the Jerseyville Police Department. The case is assigned to Assistant United States Attorney Ali Summers.
Canadian Man Sentenced in Elder Fraud ScamRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday JAMAAL McKENZIE, 33, of Canada was sentenced for targeting the elderly in a fraud scam in violation of Title 18, United States Code, Section 371 and Title 18, United States Code, Section 1341 to 78 months of imprisonment followed by three years supervised release. The Court also ordered restitution of $840,705.00 to be paid.
On March 5, 2008, a Federal Grand Jury returned an Indictment. On January 30, 2013 McKENZIE pled guilty to one count of wire fraud and one count of mail fraud.
According to the investigation, from December, 2004, to April, 2007, the defendant, operating in and around the Montreal, Canada, area, devised a scheme in which he called elderly United States citizens, falsely telling them they had won a large prize in a sweepstakes or lottery. The defendant then convinced the victims to send money in order to receive their prize.
The victims were identified from a lead list that co-defendant Clayton Atkinson, the leader, purchased from a Montreal business. Characteristics that Atkinson desired of the victims, included ready sources of money, availability during the day to answer the phone and vulnerability due to infirmities of age. Pre-paid cellular phones were obtained under false names to contact the victims. When a victim answered the phone fictitious names, titles and company names were used.
The investigation determined that at least 39 victims in various states, including North Carolina, had been defrauded and the defendants had fraudulently obtained at least $840,705.00.
Investigation of this case was conducted by the Federal Bureau of Investigation; the North Carolina Attorney General’s Office, Elder Fraud Unit; and the Royal Canadian Mounted Police. Assistant United States Attorney J Gaston B. Williams prosecuted the case.
Buffalo Man Sentenced to 10 Years for Drug TraffickingRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Ramone Perry, 32, of Buffalo, N.Y., who was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, was sentenced to 10 years in prison and eight years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Clare Kane, who handled the case, stated that the defendant was arrested after being intercepted over New York State wiretaps arranging for the purchase of cocaine from Wallace Peace and others. Search warrants executed during the investigation resulted in the seizure of 17 firearms, more than five kilograms of cocaine powder and in excess of 200 grams of crack cocaine. Wallace Peace is currently awaiting trial on drug and gun charges.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Region; Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Francis J. Christiano, Resident Agent in Charge; and Special Agents of the Buffalo Police Department, under the direction of Daniel Derenda, Commissioner.
Brooks County Marijuana Traffickers Sentenced to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Five area men have been sent to prison for conspiracy and possession with intent to distribute more than 1,000 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Edward Mata, 28, Richard Scott Patton, 41, Luis Andres Longoria, 40, and Servando Guerra, 62, all pleaded guilty in December 2011.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Guerra to 46 months in prison, while Patton, Longoria, Guerra and Gonzalez received sentences of 36 months each. All the sentences will be followed by a five-year-term of supervised release. Upon handing down the sentences, Judge Ramos noted the length of time the marijuana conspiracy existed and the large amount of narcotics trafficked.
The men, all residents of Falfurrias, were part of an organized effort to transport marijuana from September 2008 to January 2011 through ranches around the Falfurrias Border Patrol Checkpoint using four-wheel-drive vehicles known as gators to avoid detection. Agents determined that this organization was led by Jose Maria Carbajal Jr., 42, also of Falfurrias, who was prosecuted in a separate case and who was previously sentenced to nine years in prison.
They all pleaded guilty in December 2011, at which time the government described the use of four-wheel-drive vehicles by this organization in their criminal enterprise. The gators would be loaded with marijuana at a point south of the Falfurrias Border Patrol Checkpoint. Then, the gators would be piloted through ranches to a point north of the checkpoint so the marijuana could be transported via ordinary means further into the United States for distribution. During the investigation, one of the marijuana-laden gator vehicles was apprehended and another was found abandoned on a ranch.
The organization was led by Carbajal from his Brooks County ranch. Longoria helped Carbajal scout ranches and roads and assisted in the transportation of drugs. Patton usually transported the marijuana through the brush and ranches until it arrived north of the checkpoint, while Mata and also assisted Carbajal in arranging the transportation of drugs. In addition, Longoria’s and Mata’s residences were frequently used by this organization to store large amounts of narcotics after it has circumvented the checkpoint. Guerra also assisted in the transportation of marijuana for the organization. Once the drugs made it north of the checkpoint, Gonzalez transported the drugs through ranches and also helped in scouting the ranches and roads.
The case was investigated by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, the Texas Department of Public Safety and the Brooks County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorneys Jon Muschenheim and Julie Hampton as part of the Organized Crime Drug Enforcement Task Force.
Brad Charles Fisher, an Insurance Salesman, Convicted of Tax Evasion in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on May 9, 2013, in Helena, after a federal district court trial before Senior U.S. District Judge Charles C. Lovell, BRAD CHARLES FISHER, 51, a former resident of Helena and a current resident of Kenmore, Washington, was found guilty of attempt to evade or defeat income tax. Sentencing is set for September 13, 2013. He is currently released on special conditions.
At trial, the following evidence and testimony was presented to the jury.
From April 2006 until January 2008, FISHER attempted to evade and defeat the payment of an income tax due and owing by him to the United States for the calendar years 2001 to 2006 by concealing and attempting to conceal from the Internal Revenue Service the nature and extent of his assets and by making false statements to Internal Revenue Service agents.
From 2001 through 2006, FISHER earned substantial amounts of income by selling insurance products. However, FISHER did not file any tax returns for these years until mid-2006. After IRS commenced a civil audit of FISHER for the 2001-03 tax years, and later sent him a notice of tax deficiency for this period, FISHER eventually filed his 2001-06 returns. In these tax returns, FISHER reported that he earned income and owed tax. However, contrary to his accountant's instruction, he only paid a small portion of his tax due. By FISHER's own estimation, he owed a total of about $444,761 in tax for 2001-06 (not including interest and penalties). He paid a total of about $44,444. Accordingly, IRS referred this case to its Collections division. An IRS agent was assigned to collect FISHER's back taxes, and he contacted FISHER in or about April 2006 to initiate the collections process. The agent asked that FISHER fill out a Collection Information Statement, which calls for the taxpayer to disclose his assets.
When the agent first met with FISHER on May 9, 2006, FISHER provided a partially filled out Collection Information Statement. Because the form did not list any motor vehicles, the agent asked FISHER what motor vehicles he owned. FISHER listed several cars, but failed to mention four to which he held title at the time: a 1967 Chevrolet Corvette, a 1974 Chevrolet Nova, a 1996 GMC K-1500, and a 1999 Chevrolet Tahoe. FISHER also failed to mention a 2004 Chaparral boat that he owned, until the agent inquired about a reference to a boat in FISHER's bank records during a later meeting. Even then, FISHER said he had "no equity" in the boat, when in fact he sold it shortly thereafter and received $17,227 net of encumbrances.
In late 2006, as it became apparent that FISHER was not selling assets voluntarily, the IRS began to take steps to levy certain of his assets. On April 9, 2007, FISHER sent a second Collection Information Statement to the agent. Again, however, it failed to disclose a vehicle that FISHER owned, this time a 2007 Chevrolet Silverado that he had recently purchased. As IRS Collections proceeded toward seizure of FISHER's assets, FISHER filed for bankruptcy on November 14, 2007. It was only during a subsequent bankruptcy hearing that the agent learned about the vintage classic cars that FISHER had previously concealed.
In addition to the agent's testimony and presentation of Department of Motor Vehicles (DMV) records concerning the concealed vehicles, the government offered testimony from the persons that sold certain cars (and the boat) to FISHER, as well as from the buyers who later purchased the vehicles from him. FISHER's travel agent also testified that, during the time his tax debt was outstanding, FISHER purchased expensive vacation packages instead, belying any suggestion that FISHER attempted to pay his debt in good faith.
Assistant U.S. Attorney Chad C. Spraker and Department of Justice Tax Trial Attorney Joseph Rillotta prosecuted the case for the United States.
FISHER faces possible penalties of 5 years in prison, a $100,000 fine and 3 years supervised release.
The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service.
Boston Man Convicted in Armed RobberyRead the Press Release
BOSTON – Following a five-day trial, a federal jury today convicted a Boston man for his role in the armed robbery of a Dorchester MetroPCS retail store in 2011.
Ronald E. Brown, 40, was convicted of armed robbery, using and carrying a firearm during a crime of violence, and being a previously convicted felon in possession of a firearm. U.S. District Judge Denise J. Casper scheduled sentencing for August 7, 2013. On the armed robbery charge, Brown faces a statutory maximum penalty of 20 years in prison, five years of supervised release and a $250,000 fine; for carrying a firearm during a crime of violence, he faces a statutory minimum penalty of 15 years and up to life in prison, five years of supervised release and a $250,000 fine; and for being a previously convicted felon in possession of a firearm, he faces a statutory minimum penalty of 15 years and up to life in prison, five years of supervised release and a $250,000 fine.
On the morning of Oct. 31, 2011, Brown and his co-conspirator, Lynch Arthur, entered the MetroPCS retail store on Washington Street in Dorchester. Brown distracted the clerk and Arthur walked around the counter, brandishing a semi-automatic pistol. The two then forced the salesperson into the backroom and demanded the store’s cash after arming themselves with semi-automatic pistols. The men then used duct tape to tie up the clerk, removed all cash from the store, and fled the scene. A short time later the two men were encountered by Boston Police officers on Kenwood Street. During questioning officers observed clothing, reportedly worn by the robbers scattered on the sidewalk. The officers did a sweep and discovered the firearms, duct tape, and cash consistent with the amount stolen in a blue recycle bin a few yards from the scene of the encounter. The two were then brought back to the store and positively identified by the clerk.
In March 2013, Arthur pleaded guilty and is scheduled to be sentenced next month.
U.S. Attorney Carmen M. Ortiz; Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner Edward Davis, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine and Robert M. Richardson of Ortiz’s Major Crimes Unit.Belleville Woman Pleads Guilty to Filing False Federal Income Tax ReturnsRead the Press Release
Terri M. Boatman, age 45 of Belleville, Illinois, pled guilty in federal court to the offenses of Filing False Federal Income Tax Returns for the years 2009 and 2010, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses each carry a maximum possible penalty of up to three years in prison, a fine of up to $250,000, and restitution for the tax loss. Sentencing is scheduled for August 19, 2013.
Boatman admitted as part of the plea that she had false and fraudulent 2009 and 2010 federal income tax returns prepared by Prime Time Tax Services. Delaun Leflore and Carey Herron owned and operated Prime Time Tax Services (PTTS) located in Shiloh, Illinois. During the 2008-2011 filing seasons, Leflore and Herron used electronic software to prepare and file tax returns and they typically applied for refund anticipation loans. Leflore and Herron conspired together and with their clients to prepare false tax returns and claim fraudulent tax refunds. To accomplish this scheme, Leflore and Herron created false and fraudulent Schedule C income and expenses. The purpose of creating the false income was to maximize the earned income credit and other credits which generated large tax refunds. While meeting with their clients, Leflore and Herron discussed how to receive more money back by creating self-employment income. The clients agreed to participate in the scheme in order to receive a larger tax refund. Typically, the clients were referred to Leflore and Herron and visited the tax preparation business knowing they would file fraudulent tax returns. As part of the scheme, the clients were required to pay an extra cash fee to Leflore or Herron from the tax refund received. This amount was generally $500 in cash. This amount was in addition to the tax preparation fee which was automatically deducted from the tax refund by the bank processing the refund anticipation loan (RAL). Following the receipt of the RAL check, Leflore, Herron, or another representative of PTTS escorted the clients to a local check-cashing business named Belleville Quick Stop located in Belleville, Illinois. After the client cashed the RAL check, the client immediately gave the $500 in cash to Leflore, Herron, or another representative of Prime Time. Leflore and Herron have already been prosecuted and are serving their prison sentences.
The Indictment is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud call, I.R.S. Criminal Investigations at (618) 622-2160, or send the information to the Internal Revenue Service, Fresno, CA 93888.
Ashburn Man Sentenced to 78 Months Imprisonment for Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Blake David Coleman O’Gara, 30, of Ashburn, Virginia, was sentenced this morning to 78 months imprisonment, followed by a lifetime of supervised release, after his guilty plea to receipt of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing today by United States District Court Judge T.S. Ellis, III.
According to court documents and court proceedings, O’Gara downloaded child pornography images and videos from various websites and a peer-to-peer file sharing program from October 2010 to October 2012. A search warrant executed on October 23, 2012 revealed that O’Gara had more than 600 images and videos of child pornography on his computers.
The investigation was conducted by the FBI Washington Field Office’s Child Exploitation Task Force.
Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.usdoj.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 http://pacer.uspci.uscourts.gov.Apollo Woman Pleads Guilty in $15 Million Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Apollo, Pa., pleaded guilty in federal court to a charge of mail and wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Bonnie M. Gardner, 55, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Gardner participated in a massive fraud scheme involving more than $15 million in losses to more than 100 victims. The investigation has subsequently determined that Gardner and Frank Guzik, Jr., through various investment and development groups, such as East Haven Investments, East Haven Development, East Haven Realty, etc., devised and implemented an elaborate Ponzi scheme through which they successfully solicited investors.
The purported business of East Haven was to purchase properties, make various improvements to the properties, and then to sell them. In order to secure the investments, Guzik and Gardner made a series of misrepresentations to the investors, including the interest rate, that the investments would be secured by mortgage, and various other misrepresentations. As collateral for the investments, Guzik and Garnder provided the investors mortgages on various properties. The investors believed that East Haven would be unable to sell the properties on which they held mortgages unless the mortgages were satisfied. Many of these mortgages were never filed, which the investors later learned.
The investigation has also revealed that the satisfaction pieces on some of the mortgages were forgeries. Guzik and Gardner also provided multiple investors with mortgages on the same properties. Thus, the purported value to the mortgagees was well in excess of the property's value. The investors were, of course, unaware that other investors held mortgages on the same properties.
Some of the investors received, if requested, monthly interest payments on their investments. Others chose to roll their monthly interest over into the investment, having been erroneously told by Guzik and Gardner that no tax was due on the accrued interest if it was rolled over. The investment never really earned any interest, despite the investors statements indications to the contrary and despite the payment of interest payments. In other words, Guzik and Gardner used new investor funds to pay interest to individuals who had invested earlier, and also to support the lifestyles Guzik and Gardner were living.
Beginning in April of 2005, Guzik and Gardener needed to sell some of the properties to generate cash flow and to show investors that East Haven was profitable, but they could not sell the properties. Thus, Guzik and Gardner convinced a number of individuals to act as straw purchasers of the properties. The mortgage documents falsely reported that the purchasers made substantial down payments from their own funds to purchase the properties. In fact, Guzik and Gardner deposited investor funds into the straw purchasers' bank accounts and then the straw purchasers would withdraw the money in the form of a certified check that they would bring to the closings as if they had made the down payment from their own funds. In addition, Guzik and Gardner paid the straw purchasers, using investor funds, the mortgage and utility payments for those properties. Guzik and Gardner then prepared a glossy pamphlet reporting the sales of the properties for use in inducing further investors.
Beginning around November 2007 and continuing until in or around March 2008, Guzik began withdrawing funds from the East Haven accounts by cash and check. By the end of March 2008, East Haven's National City accounts, into which investor checks had been deposited and from which investor interest checks had been drawn, had minimal or zero balances. During the same time period, Guzik withdrew $200,000 to purchase untraceable gold coins from International Precious Metals in Texas. Guzik also received two short-term loans totaling $475,000 in early March 2008, promising to repay them at 20% interest by March 18, 2008.
On or about March 17, 2008, Guzik disappeared, and has not been heard from since. He did not repay the loans, stopped making interest payments on investments totaling approximately $15 million, and never accounted for the principle investments. His whereabouts are still unknown.
Judge Fischer scheduled sentencing for Oct. 18, 2013 The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorneys Brendan T. Conway and Gregory Melucci are prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Criminal Investigation Division of the Internal Revenue Service, with assistance from the Monroeville Police Department, conducted the investigation that led to the prosecution of Gardner.
61 Defendants Charged with Illegal Firearms, Drugs in ATF-KCPD Undercover OperationRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 61 Kansas City, Mo.-area residents have been charged with firearms violations, drug trafficking or other crimes as the result of a nearly year-long undercover operation by the ATF and the Kansas City, Mo., Police Department.
“This was the largest federal round-up ever conducted in this district as the result of a single investigation,” Dickinson said. “We are taking dozens of violent criminals off the street and hundreds of illegal guns out of circulation. Kansas City is a safer city today as a result of this operation.”
More than 150 law enforcement officers from local, state and federal agencies arrested 28 defendants in a three-day sweep this week. In addition, eight federal defendants are already in custody on earlier indictments resulting from this investigation and one defendant is already in federal custody in an unrelated case. Ten defendants are already in state custody on unrelated charges.
The remaining 14 defendants who are not in custody are considered fugitives from justice and are actively being sought by law enforcement. The public’s assistance is requested to locate these fugitives. Anyone with information is encouraged to call the TIPS hot line at 816-474-8477.
“This investigation is a testament to the NoVA partnership and is just the beginning. These indictments demonstrate our message that violence will not be tolerated,” said ATF Special Agent in Charge Marino F. Vidoli. “ATF is committed to utilize every resource to keep the citizens of Kansas City safe. Be warned, if you are committing violent crime in this city, we will not rest until you are off the streets.”
During the course of the investigation, agents seized 222 firearms (including handguns, assault rifles and sawed-off shotguns). Some of those firearms have been identified as having been used in multiple violent crimes, including unsolved homicide investigations, and some had been reported stolen. Agents also seized or purchased various quantities of marijuana, cocaine, crack cocaine, methamphetamine, PCP and various other narcotics.
“This is a significant operation that should have a major impact on gun crime in our city,” said Jean Peters Baker, Jackson County Prosecutor.
Baker added that the operation will also be significant in pressing the new KC NoVA (No Violence Alliance) effort that involves federal, state and city law enforcement agencies as well as community leaders. The undercover operation provided information that will be used in the future by NoVA.
NoVA tells those involved in groups associated with crime here that law enforcement is working closely together to win the most severe punishment possible for violent crime, Baker noted. “This operation shows we mean what we say,” she said.
“I applaud the efforts of all law enforcement officers from each respective agency who have worked on this operation,” said Kansas City, Mo., Police Chief Darryl Forté. “It is my hope that through these proactive efforts, those involved in violent crimes are located and arrested and those considering that choice are provided a different path to follow. Through operations like this, I believe this is being accomplished.”
“We pledged at NoVA’s inception that law enforcement, prosecutors and community partners would be united in stamping out violent crime, and we’re delivering on that promise,” Dickinson said. “NoVA is a carrot-and-stick approach, and what you’re witnessing this week is the stick. We are bringing the full weight of our resources to bear on the level of violence in Kansas City.”
Following this week’s law enforcement action, NoVA partners will directly approach those individuals who have been identified in a network of associates of known criminals. These individuals, who were neither charged nor arrested this week, will be offered resources and services to assist them if they desire to renounce a life of crime, rehabilitate themselves and become productive members of the community.
According to Dickinson, two-thirds of the defendants charged in the operation (41 defendants) have prior felony convictions and more than half of the defendants are currently on probation or parole. Under federal statutes, it is illegal for anyone who has been convicted of a felony to possess any firearm or ammunition. It is also a federal offense for drug traffickers and users of controlled substances to possess any firearm or ammunition.
“This operation targeted armed career criminals, violent felons who are carrying guns,” Dickinson said. “We know that the same guns are often used over and over again to commit violent crimes. Every weapon taken out of the hands of a convicted felon represents lives saved and violent crimes prevented.”
Dickinson noted that the large sudden influx of federal cases requires the U.S. Attorney’s Office to work closely with the District Court, the U.S. Marshal’s Office and the Office of Probation and Parole. “We appreciate the coordination of everyone at the courthouse as we implement some creative solutions to insure that the administration of justice continues efficiently under these extraordinary circumstances,” said Dickinson.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
The federal cases are being prosecuted by Assistant U.S. Attorneys David A. Barnes, Stefan C. Hughes, Bruce Rhoades, Charles E. Ambrose, Jr., Bruce E. Clark, Cathleen Connelly, Christina Y. Tabor, David DeTar Newbert, Rudolph R. Rhodes IV, D. Michael Green and Brent Venneman and by Special Assistant U.S. Attorneys Sydney Sanders, Jalilah Otto, Leena Ramana and Sarah A. Castle. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and Homeland Security Investigations.