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18 June 2013
Local Couple Sentenced in Federal Court for Producing Child PornographyRead the Press Release
PENSACOLA, FLORIDA – The U.S. Attorney’s Office for the Northern District of Florida announced that Brandon Gillreath, 33, and Corine Motley, 25, a married couple from Mary Ester, Florida, were sentenced late yesterday afternoon on federal charges of conspiring to produce child pornography. Gillreath was sentenced to serve 35 years in prison, followed by a lifetime term of supervised release. Motley was sentenced to serve 29½ years in prison, followed by 20 years of supervised release. Gillreath was also sentenced for making false statements to federal agents.
A federal investigation began on December 12, 2012, when U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) received a referral from the Danish National Police regarding a video containing child pornography. The video had been obtained from the Internet by law enforcement officers in Denmark. The video was referred to U.S. law enforcement because the Danish National Police believed that the video had most likely been produced in the United States. The video depicted an adult female and a prepubescent female, approximately five years old, engaged in sexually explicit conduct.
To identify the adult female featured in the videos, HSI issued a public appeal for assistance. Hours later, based on information received through that public appeal, HSI, the Okaloosa County Sheriff’s Office, and the Department of Justice were able to determine that Motley was the adult female in the video who was engaging in sexually explicit conduct with the minor child. Motley was promptly arrested. The Pensacola Police Department and the Northwest Florida Internet Crimes Against Children Task Force were also instrumental in bringing Motley and Gillreath to justice.
“This case was particularly disturbing because the defendants severely abused local children, and cruelly captured the abuse on film for the purpose of circulating it via the Internet,” said U.S. Attorney Pamela Marsh. “Fortunately, thanks to the public’s fast response to HSI’s request for assistance, law enforcement was able to quickly identify the perpetrators and stop the abuse.”
HSI obtained federal search warrants for the defendants’ laptop, digital camera, and email accounts. Within the digital media, federal agents located over a dozen images of Motley engaging in sexually explicit conduct with a second minor female. There were also images of Gillreath engaging in sexually explicit conduct with this second minor female. This second victim was approximately ten years old at the time the child pornography images were produced. Recently, even more minor victims have disclosed engaging in sexually explicit conduct with Motley and Gillreath.
“The power of social media and traditional media outlets proved invaluable in this case,” said Susan McCormick, special agent in charge of HSI Tampa, which oversees the Pensacola office that conducted this investigation. “I thank everyone who assisted. Not only did we put two child predators behind bars, we also rescued at least two children from further abuse.”
U.S. Attorney Marsh praised the efforts of all the law enforcement agencies who worked together to capture and prosecute these two criminals. “I want to express my deep gratitude to those persons who assisted and provided information, as well as to law enforcement and our prosecutor for their excellent work on this case.” she said.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to 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.
The case was prosecuted by Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida.Ligonier Man Charged with Theft of Government PropertyRead the Press Release
PITTSBURGH, Pa. - A Westmoreland County man has been indicted by a federal grand jury in Pittsburgh on charges of theft of government property, United States Attorney David J. Hickton announced today.
The one-count indictment named Ronald Clarke Gray, 62, of Ligonier, Pa., as the sole defendant.
According to the indictment, Gray converted to his own use over $1,000.00 in Social Security Income Benefits from the Social Security Administration.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Liberty Couple Pleads Guilty to $2.8 Million Embezzlement, Check Kiting Scheme to Fund Gambling, Lavish SpendingRead the Press Release
KANSAS CITY, Mo. -- Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., husband and wife pleaded guilty in federal court today to a nearly $2.8 million embezzlement and check kiting scheme and with filing a false tax return.
Laura Dejong, 54, and her husband, Craig Dejong, 55, both of Liberty, pleaded guilty before U.S. District Judge Dean Whipple. Laura Dejong pleaded guilty to one count of mail fraud and both of the Dejongs pleaded guilty to one count of filing a false tax return.
Laura Dejong admitted that she embezzled $2,679,227 from her employer, Kansas City Screw Products, Inc., from January 2003 to November 2011. Kansas City Screw Products is a family-owned and -operated metal fabrication business in Kansas City. Laura Dejong, who was employed as a secretary and bookkeeper for approximately 23 years, forged checks drawn on two company bank accounts.
Laura Dejong also engaged in a check kiting scheme between the company’s two banks in order to falsely inflate the company’s bank account balances, thereby increasing the amount of money she could embezzle. Her check kiting began in late June 2011. The total amount of checks written by Laura Dejong to cause the check kite increased from $44,000 in June 2011 to $847,000 in November 2011. The total loss from the check kite to Central Bank was $96,000.
The total combined loss for Kansas City Screw Products and Central Bank was $2,775,227.
According to court documents, significant gambling activity was identified for the Dejongs, well into the millions of dollars, from January 2002 to December 2011. The majority of the Dejongs’ gambling was at slot machines.
Records indicate that the Dejongs took at least eight cruises and spent more than $100,000 on payments for the cruises, vacations and airfare between 2005 and 2011. During the time of the embezzlement scheme, according to court documents, the Dejongs used the stolen money to purchase a 2007 Chevrolet Tahoe, a 2009 Honda Accord, a 1997 Crownline boat (20-foot fiberglass runabout), a 1997 Prestige boat trailer, a 1985 Chevrolet RV/motor-home (now a KC Chiefs party bus), a 2008 Jayco travel trailer, four Ameriprise Brokerage accounts; four Kansas Speedway season tickets (for Passholder seats, parking passes, and track passes), four Kansas City Chiefs Club Level season tickets and parking passes, membership to the Chiefs Wolfpack Club, an exclusive members-only facility, and their residence.
As part of their pleas, the Dejongs signed a stipulation forfeiting their home in Liberty and all of the above-listed property. Once the forfeiture is completed, the victims of the crime will be able to request that the forfeited funds be remitted to them for restitution.
The Dejongs admitted that they filed joint tax returns for tax years 2005-2010 but did not declare any of the embezzled money as income. During this time, Laura Dejong’s gross annual salary at Kansas City Screw Products ranged from $22,752 to $33,333. Craig Dejong was unemployed for four years and listed no income for the two years in which he claimed to be employed as a computer programmer.
As a result of filing false tax returns in those six years, the Dejongs owe the Internal Revenue Service a total of approximately $482,711.
Under federal statutes, Laura Dejong is subject to a sentence of up to 23 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. Craig Dejong is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI and IRS-Criminal Investigation.Leominster Man, Fitchburg Construction Company Charged with Defrauding Union Benefit FundsRead the Press Release
BOSTON – A Leominster man was charged yesterday with operating a construction business under two different names in order to avoid paying union benefits for his employees, a practice commonly known as "double-breasting."
Juan J. Alonso, 59, and Aguila Construction Company, Inc. of Fitchburg were charged with theft or embezzlement from benefit plans subject to the provisions of Title I of the Employee Retirement Income Security Act of 1974 (ERISA), making false statements in documents submitted to benefit plans subject to ERISA, and making false statements to the United States Department of Transportation (DOT).
The Information alleges that Alonso operated Alonso Construction, Inc. and Aguila Construction Company from the same yard and office in Fitchburg. Alonso Construction and Aguila Construction performed the same type of work, used the same equipment, and used the same laborers and office staff. This “double-breasted” arrangement is often used in the construction industry to avoid paying union members the union wages and benefits they are entitled to.
In 2000, Alonso, on behalf of Aguila Construction had agreed to be bound by certain collective bargaining agreements with, among other unions, Laborers International Union of North America Local 39 (Local 39). The collective bargaining agreements governed the remittance of fringe benefit contributions to employee benefit plans. The agreements require signatories to accurately report to the plans the number of hours worked by members of Local 39 and to make contributions to the funds accordingly.
Between 2008 and 2011, Alonso and Aguila Construction defrauded the benefit funds by running part of the Aguila Construction payroll through Alonso’s “non-union” company, Alonso Construction, thereby underreporting the hours actually worked by Local 39 members. Alonso also defrauded the funds by paying Aguila Construction laborers in cash, in order to avoid making hourly payments to the benefit funds. Over the four-year period, the defendants failed to pay approximately $805,338 owed to the funds.
The Information further charges that between 2008 and 2011, Aguila Construction secured several publicly-funded projects, including 12 projects funded by the DOT pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA). As part of the scheme, a portion of this contract work was conducted by Alonso Construction rather than Aguila Construction, the signator to the contracts.
In particular, between June 15, 2009 and May 23, 2010, Aguila Construction was subcontracted to perform construction work on an ARRA-funded construction project on Route 2 in Harvard and Littleton. In connection with this project, Aguila Construction completed and sent to the Massachusetts Department of Transportation certified payroll records falsely stating the identity of employees, the number of hours worked and the wages paid.
If Alonso is convicted, each of the statutes provides for a maximum sentence of five years in prison to be followed by three years of supervised release and a fine. Conviction of Aguila Construction could result in a fine and a term of probation between one and five years.
U.S. Attorney Carmen M. Ortiz; Theodore L. Doherty, III, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Office of Investigations; Robert Panella, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering & Fraud Investigations; and Susan Hensley, Director, Boston Regional Office of the Employee Benefits Security Administration made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption and Special Prosecutions Unit.The details contained in the Information are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leader of Massive Tax Refund Fraud Scheme Pleads Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MELVIN DUARTE pled guilty today in Manhattan federal court for his role in a scheme to fraudulently generate and then steal more than $50 million in federal tax refund checks. DUARTE was originally arrested in 2008 and subsequently fled the U.S. He was extradited from the Dominican Republic and arrived in the U.S. in January 2013. DUARTE pled guilty before U.S. Circuit Court Judge Denny Chin, sitting by designation.
Manhattan U.S. Attorney Preet Bharara said: “The $50 million tax refund fraud scheme Melvin Duarte orchestrated is among the largest known cases of its kind, and Duarte’s guilty plea today is a significant victory in our fight to hold tax refund fraudsters to account. Our commitment to prosecuting those who engage in this type of scheme – the use of stolen Puerto Rican identities to fraudulently obtain tax refunds – is unwavering. We have aggressively pursued these schemes since at least 2008, and in just the last 12 months have charged at least 55 defendants who allegedly sought to cause approximately $230 million in losses to the IRS.”
According to the Indictment and other documents filed in Manhattan federal court:
DUARTE was charged as part of an investigation into a massive tax and mail theft scheme. As part of the scheme, co-conspirators operating out of the Dominican Republic and other places electronically filed thousands of fraudulent federal tax returns, seeking tens of millions of dollars in tax refunds. The fraudulent returns were filed using Social Security numbers and other identifying information stolen from residents of Puerto Rico. Participants in the scheme targeted Social Security numbers assigned to residents of Puerto Rico because they are generally not required to file federal tax returns with the Internal Revenue Service (“IRS”), as long as their income is derived solely from Puerto Rican sources. In so doing, the co-conspirators minimized the risk that legitimate federal tax returns were already filed by the holders of the Social Security numbers that they were using in the scheme.
Each of the tax returns at issue falsely represented that the taxpayer resided at an address in the Bronx, where the refund check requested in the return was to be sent. The checks were then stolen by letter carriers assigned to the mail routes where the checks were sent and who had been recruited beforehand to participate in the scheme. The letter carriers participating in the scheme were paid a kickback for each check that they stole. The letter carriers passed the checks on to other co-conspirators, who cashed them at various banks and check-cashing businesses located in the U.S. and the Dominican Republic.
Over the course of the scheme, thousands of false and fraudulent federal tax returns were filed seeking more than $50 million of fraudulent tax refunds from the IRS.
DUARTE was previously convicted in 2002 for conspiracy to steal federal funds, based on substantially similar conduct and was sentenced to three years of probation.
DUARTE, 37, resided in Bronx, New York, prior to his 2008 flight to the Dominican Republic. He faces a maximum sentence of 10 years in prison on the charge of conspiracy to defraud the United States with respect to claims, a maximum sentence of five years in prison on the charge of conspiracy to steal mail, and a maximum sentence of five years in prison on the substantive theft of mail charge. DUARTE also faces a maximum of three years of supervised release and a fine of the greatest of $250,000, twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss to persons other than the defendant resulting from the offense on each of the charges. He is scheduled to be sentenced by Judge Chin on October 24, 2013 at 11:00 a.m.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Postal Service Office of Inspector General, and thanked them for their work in this case. He also thanked the Dominican National Police for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Daniel W. Levy is in charge of the prosecution.
Leader of Massive Tax Refund Fraud Scheme Pleads Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MELVIN DUARTE pled guilty today in Manhattan federal court for his role in a scheme to fraudulently generate and then steal more than $50 million in federal tax refund checks. DUARTE was originally arrested in 2008 and subsequently fled the U.S. He was extradited from the Dominican Republic and arrived in the U.S. in January 2013. DUARTE pled guilty before U.S. Circuit Court Judge Denny Chin, sitting by designation.
Manhattan U.S. Attorney Preet Bharara said: “The $50 million tax refund fraud scheme Melvin Duarte orchestrated is among the largest known cases of its kind, and Duarte’s guilty plea today is a significant victory in our fight to hold tax refund fraudsters to account. Our commitment to prosecuting those who engage in this type of scheme – the use of stolen Puerto Rican identities to fraudulently obtain tax refunds – is unwavering. We have aggressively pursued these schemes since at least 2008, and in just the last 12 months have charged at least 55 defendants who allegedly sought to cause approximately $230 million in losses to the IRS.”
According to the Indictment and other documents filed in Manhattan federal court:
DUARTE was charged as part of an investigation into a massive tax and mail theft scheme. As part of the scheme, co-conspirators operating out of the Dominican Republic and other places electronically filed thousands of fraudulent federal tax returns, seeking tens of millions of dollars in tax refunds. The fraudulent returns were filed using Social Security numbers and other identifying information stolen from residents of Puerto Rico. Participants in the scheme targeted Social Security numbers assigned to residents of Puerto Rico because they are generally not required to file federal tax returns with the Internal Revenue Service (“IRS”), as long as their income is derived solely from Puerto Rican sources. In so doing, the co-conspirators minimized the risk that legitimate federal tax returns were already filed by the holders of the Social Security numbers that they were using in the scheme.
Each of the tax returns at issue falsely represented that the taxpayer resided at an address in the Bronx, where the refund check requested in the return was to be sent. The checks were then stolen by letter carriers assigned to the mail routes where the checks were sent and who had been recruited beforehand to participate in the scheme. The letter carriers participating in the scheme were paid a kickback for each check that they stole. The letter carriers passed the checks on to other co-conspirators, who cashed them at various banks and check-cashing businesses located in the U.S. and the Dominican Republic.
Over the course of the scheme, thousands of false and fraudulent federal tax returns were filed seeking more than $50 million of fraudulent tax refunds from the IRS.
DUARTE was previously convicted in 2002 for conspiracy to steal federal funds, based on substantially similar conduct and was sentenced to three years of probation.
DUARTE, 37, resided in Bronx, New York, prior to his 2008 flight to the Dominican Republic. He faces a maximum sentence of 10 years in prison on the charge of conspiracy to defraud the United States with respect to claims, a maximum sentence of five years in prison on the charge of conspiracy to steal mail, and a maximum sentence of five years in prison on the substantive theft of mail charge. DUARTE also faces a maximum of three years of supervised release and a fine of the greatest of $250,000, twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss to persons other than the defendant resulting from the offense on each of the charges. He is scheduled to be sentenced by Judge Chin on October 24, 2013 at 11:00 a.m.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Postal Service Office of Inspector General, and thanked them for their work in this case. He also thanked the Dominican National Police for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Daniel W. Levy is in charge of the prosecution.
US v. Melvin Duarte S2 Indictment
LGBT Pride GatheringRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that a special event will be held on Thursday, June 20, 2013 from 5:30 – 8:00 pm in recognition of June as Lesbian, Gay, Bisexual and Transgender (LGBT) Pride Month. The program will be held at the Historic Federal Courthouse located at 517 East Wisconsin Avenue in Milwaukee. The reception will begin at 5:30pm followed closely by the formal program. The event is open to the public.
The keynote speakers will be FBI Special Agent in Charge Teresa L. Carlson and United States Attorney James L. Santelle. The event will introduce a newly developed special emphasis program within the Department of Justice; provide insight into law enforcement’s investigation and prosecution of hate crimes and related violence, including the effect of the Shepard Byrd Hate Crimes Act; and discuss the impact of recent legal decisions on the LGBT community.
In making this announcement, Santelle commented: “Members of our LGBT community in Wisconsin and throughout our nation continue to make significant contributions to the health, education, economy, culture, safety and well-being of all of us, and the United States Department of Justice is committed to promoting and safeguarding the rights of and equal protection for Americans of all sexual orientations and identities.” He continued: “In the educational and inspirational programs on the 20th, we are not only affirming our strong federal partnership with Equality Wisconsin, the Milwaukee LGBT Community and other local and regional groups and associations, but we are also affirming the fundamental tenet that our county is enriched and strengthened by diversity in all aspects of our national experience.”
FBI Special Agent in Charge Teresa L. Carlson said: "Milwaukee is a proud community rich in diversity. It is the FBI's mission to enforce civil rights laws and protect the freedoms of all Americans. We are honored to have a role in this great program that celebrates and embraces our cultural differences."
According to Karen Gotzler, the Interim Executive Director of the Milwaukee LGBT Community Center, "The Community Center in Milwaukee offers a wealth of resource programming, from youth to young adults to elders. We are HONORED to be partnering with the U.S. Attorney's Office to illustrate the importance of LGBT people as part of our entire community and having the federal government look seriously at LGBT issues."
Jason Burns, Executive Director of Equality Wisconsin, "This has been a banner year for LGBT people and addressing these issues at a federal level is integral to full equality for lesbian, gay, bisexual and transgender citizens."
The event is sponsored by the Office of the United States Attorney, the Federal Bureau Investigation, the Milwaukee LGBT Community Center, and Equality Wisconsin.
Judge Taxes Scammer with 18 Year Prison SentenceRead the Press Release
PHILADELPHIA - Calvin Johnson, Jr., 35, of Philadelphia, PA, was sentenced today to 18 years in prison for participating in tax fraud conspiracies with a former IRS employee and several others. Johnson was convicted of conspiracy and filing false claims/tax returns to the IRS in a series of schemes that defrauded the U.S. Government of more than $1 million. Johnson was also found guilty of filing false claims while he was on pretrial release. U.S. District Court Judge Stewart Dalzell ordered Johnson to pay restitution in the amount of $1.24 million and ordered three years of supervised release.
Johnson and two co-conspirators, former IRS employee Patricia Fountain and Larry Ishmael, were convicted at trial in March 2013. The defendants solicited claimants whose personal information they used to file false tax returns claiming the Telephone Excise Tax Refund (TETR) in 2007 and the First Time Homebuyer Credit in 2009. These three defendants each received fraudulently obtained TETR refunds. Fountain also used one of the claimant’s information to file a false tax return in 2008. Fountain and Johnson also participated in separate schemes to file false tax returns between 2010 and 2012. Johnson continued his scheme while he was awaiting trial in this case.
For each of the schemes, the defendants charged claimants a cash fee. With respect to her TETR scheme, which Fountain engineered using inside information from the IRS, Fountain warned that she would “red flag” those claimants who received a refund without paying her $400 fee. She then filed amended returns for certain claimants whom she believed had not paid the fee, causing the IRS to demand repayment from them. Fountain and Ishmael pooled their cash fees for their mutual use, including an $11,299 down payment on a Mercedes Benz R350, which Fountain structured by paying $9,900 in cash and charging the rest to a credit card.
In addition to the charges of conspiracy and filing false claims/tax returns, Fountain was convicted of abusing her public office and extortion under color of official right. She was sentenced last week to 19 years in prison. Ishmael’s sentencing hearing is scheduled for July 26, 2013. Andre Bruce, Howard Chilsom, William Martin, and the defendant’s father, Calvin Johnson Sr., were all sentenced in April 2013.
The case was investigated by the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. It is being prosecuted by Assistant United States Attorney Joe Khan and Department of Justice, Tax Division Trial Attorney Tiwana L. Wright.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Internet Scammer Indicted for FraudRead the Press Release
SYRACUSE, NEW YORK —United States Attorney Richard S. Hartunian announced that Wei Yee Cheng, 43, of Ithaca, New York, has been sentenced following his conviction for a violation of 26 U.S.C. § 7206(1), filing a false tax return.
On January 8, 2013, the defendant pled guilty to Count 1 of single-count Information 12-CR-566, charging the defendant with willfully making and subscribing U.S. Corporation Income Tax Return Form 1120-A for taxpayer Green Olive, Inc. for the calendar year 2007, falsely declaring the amount of income of the Kyushu Japanese Restaurant, operated by Green Olive, Inc., to be $774,769.00, omitting the Kyushu’s Restaurant’s cash income of $164,545.00, all in violation of Title 26, United States Code, Section 7206(1).
The defendant was sentenced by J. Thomas McAvoy in Binghamton, NY. The defendant was sentenced to a term of probation for a period of 4 years, and was ordered to pay restitution to the Internal Revenue Service in amount of $223,327.00, an amount that reflected the tax losses from the years 2006-2010. The defendant was also ordered to perform 100 hours of community service and to pay a special assessment of $100.
This case was investigated by the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Gwen Carroll. For further information, contact Executive Assistant U.S. Attorney John G. Duncan at 315-448-0672.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 18, 2013, before U.S. Magistrate Judge Keith Stron, the following individual was arraigned:
DUANE ANTONIO MARTELL, a 23-year-old resident of Poplar, appeared on charges of (2) counts of assault with a dangerous weapon and (1) count of assault resulting in serious bodily injury within the exterior boundaries of the Fort Peck Indian Reservation. He is currently detained. If convicted of these charges, MARTELL faces possible penalties of 10 years in prison, a $250,000 fine, and 5 years supervised release on each count. Assistant U.S. Attorney Laura B. Weiss is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Poplar Police Department.
The defendant pled not guilty to the charges.
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.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 18, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
FAWN HAHN TADIOS, a 41-year-old resident of Box Elder, appeared on charges of Counts I & II: Theft from an Indian Tribal Organization Receiving Federal Grants, Count III: Theft from an Indian Tribal Organization, and Count IV: Theft from a Health Care Facility. TADIOS is currently released on special conditions. If convicted of these charges, TADIOS faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on Counts I, II, and IV. On Count III, TADIOS faces possible penalties of 5 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States. The investigation was a cooperative effort between the U.S. Department of Health and Human Services - Office of Inspector General and the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
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.
Indictment Charges Conspiracy to Hide Drugs in ShipmentsRead the Press Release
Jesus Estaban Reynoso, 34, of Camden, NJ, and Jose Francisco German-Vallejo, 31, of Lindenwold, NJ, are charged by indictment, unsealed today, in a drug conspiracy involving heroin, announced United States Attorney Zane David Memeger. The defendants were arrested this morning
According to the indictment, the defendants had co-conspirators in Panama who would hide shipments of drugs in stereo speakers and ship them to addresses provided by Reynoso. German-Vallejo allegedly recruited people to provide shipping addresses. When the parcels arrived, the recruits would either deliver the parcels to the defendants or the defendants would pick up the parcels. The recruits were paid for providing the addresses for the shipments. It is further alleged that Reynoso and German-Vallejo knowingly and intentionally attempted to possess with intent to distribute approximately1,066 grams of a mixture containing heroin. The indictment charges each defendant with one count of conspiracy to import one kilogram or more of heroin, one count of conspiracy to distribute one kilogram or more of heroin, and one count of attempted possession with intent to distribute one kilogram or more of heroin.
If convicted of all charges, Reynoso faces a mandatory sentence of life in prison, a fine, and a $300 special assessment; German-Vallejo faces a 10 year mandatory minimum sentence up to life in prison, a fine, up to five years of supervised release, and a $300 special assessment.The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Nancy Rue.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525INTERPOL Washington Supports ICE Case on Serbian FugitiveRead the Press Release
WASHINGTON - A Serbian man wanted for being the alleged getaway driver in a murder and attempted murder investigation was deported from the United States Monday. He was escorted to Belgrade, Serbia, after leaving Washington Dulles Airport, by officers with U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO), Washington Field Office.
Milos Mihajlovic, 29, a native of Serbia, entered the United States in May 2008, as a nonimmigrant visitor. On June 20, 2011, INTERPOL issued a red notice for Mihajlovic for attempted aggravated murder and unlawful possession of arms and explosives due to his involvement in an April 2008 shooting which left one person dead and two others injured in Nis, Serbia. Four days later, following an encounter in northern Virginia with a Fairfax Police Department officer, he was turned over to ICE's Homeland Security Investigations (HSI) Washington.
Mihajlovic was ordered removed by an immigration judge in November 2011. He appealed the decision to the Board of Immigration Appeals, who remanded the case back to the judge for additional evidence and testimony. The judge again ordered him removed March 4.
“Individuals like Mihajlovic, who come to the United States to find safe haven from crimes they committed in their native country, are not welcome here and will be removed,” said M. Yvonne Evans, field office director for ERO Washington.
This investigation and removal was coordinated with HSI Attaché Vienna, HSI Attaché Paris, the Regional Security Office Belgrade, INTERPOL Washington and INTERPOL Belgrade.
Since Oct. 1, 2009, ERO has removed more than 646 foreign fugitives from the United States who were being sought in their native countries for serious crimes, including kidnapping, rape and murder. ERO works with HSI's Office of International Affairs, foreign consular offices in the United States, and INTERPOL to identify foreign fugitives illegally present in the country.
Heroin Dealer Sentenced to 11 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Awal Mohammed, age 38, of Greenbelt, Maryland, today to 136 months in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at his week-long trial, on December 27, 2011, Maryland State Police stopped a car in which Mohammed was the front seat passenger and seized at least 971 grams of heroin from the glove compartment. Mohammed had previously used a courier from Ghana to bring the heroin into the United States and was en route to sell the heroin to a buyer in Baltimore. Mohammed had previously sold heroin brought in from Ghana to other dealers and customers. It was foreseeable to Mohammed that the conspiracy would distribute or possess with the intent to distribute at least 1,000 grams of heroin.
United States Attorney Rod J. Rosenstein commended the USCIS, DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kenneth S. Clark, who prosecuted the case.
Head of New Haven Drug Trafficking Ring Sentenced to 25 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSEPH JACKSON, also known as “Mighty” and “M.I.,” 37, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 300 months of imprisonment, followed by five years of supervised release, for operating an extensive New Haven narcotics trafficking ring.
This matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by JACKSON and centered in the Newhallville section of New Haven and Hamden. At the time, JACKSON was one of the principal suppliers of crack cocaine in and around New Haven. The investigation revealed that JACKSON purchased multiple kilograms of cocaine from various sources of supply, and then converted a large majority of the cocaine into crack cocaine. JACKSON then provided distribution quantities of crack to others who sold it on his behalf and gave the proceeds to JACKSON. At times, JACKSON sold crack and powder cocaine to his own customers.
Forty-seven individuals were charged in federal court with various narcotics offenses as a result of this investigation. All have been convicted.
“This significant sentence is appropriate for a defendant who operated a massive crack cocaine distribution network in New Haven, and whose multiple prior drug trafficking convictions failed to deter him from criminal behavior,” stated Acting U.S. Attorney Daly. “Hopefully, this sentence will serve as a warning to others: Drug trafficking will not be ignored and the federal penalties, especially for repeat offenders, are severe. I thank the FBI and DEA task forces and the New Haven and Hamden Police Departments for their cooperation and terrific investigative efforts.”
JACKSON’s criminal history includes seven state drug trafficking felony convictions.
Acting U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
JACKSON was arrested on October 28, 2010. On that date, federal agents executed search warrants at various locations, including JACKSON’s residence on Winchester Avenue in New Haven and a West Haven apartment that JACKSON used to process, store and package narcotics. A search of the Winchester Avenue residence revealed a Taurus .40 caliber semi-automatic pistol with an obliterated serial number, crack cocaine and cash. A search of the West Haven apartment revealed one kilogram of cocaine, 150 grams of crack packaged for distribution, multiple cell phones, drug packaging materials and cash.
As part of his sentence, Judge Burns ordered JACKSON to forfeit two automobiles, two motorcycles and approximately $72,325.
On February 1, 2013, JACKSON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).
This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
(203) 821-3722 [email protected]Glen Carbon Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
A Glen Carbon man pled guilty in federal district court on June 17, 2013, to charges of, Count 1, Receipt of Child Pornography, and, Count 2, Possession of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Arlynn Gene Georgeson, 54, of Glen Carbon, Illinois, faces a term in prison on Count 1 of not less than five years but not more than 20 years, a fine up to $250,000, and a term of supervised release of five years to life. Georgeson faces a term in prison on Count 2 of not less than ten years, but not more than twenty years, a fine up to $250,000, and a term of supervised release of five years to life. Georgeson also agreed to forfeit the computer used to commit the charged offenses. In addition, upon his release from prison, Georgeson must register as a sex offender as a condition of his supervised release. Sentencing is scheduled for October 1, 2013.
Evidence presented at the change of plea hearing revealed that, on September 27, 2011, during an undercover operation, two FBI agents in separate states were both able to download images of minors engaged in sexually explicit conduct from a computer that was later linked to Georgeson. Both offices forwarded this information to the FBI’s Fairview Heights Office which obtained a search warrant for Georgeson’s residence in Glen Carbon, Illinois.
One of the items seized during the execution of the search warrant was a Dell Studio Laptop Computer, Model 1555. A forensic examination of the Dell laptop revealed approximately 16,282 images and 512 videos of minors engaged in sexually explicit conduct. The examination also revealed that several of the images of the minors engaged in sexually explicit conduct had been downloaded by Georgeson, using a file sharing program, on December 28, 2011.
During the search of his residence, Georgeson agreed to provide a voluntary statement to law enforcement officers. Georgeson stated that he was the sole user of the file sharing program found on the Dell Studio laptop, and that he initially used the program to download music. Georgeson stated that he began to see images of minors engaged in sexually explicit conduct in some of the downloads, and subsequently started searching for such image and/or video files. Georgeson said that he viewed the “younger” images and that gender was not an issue for him. He described “younger” as being a prepubescent with no hip or breast development. He also admitted having some images involving infants saved to his laptop computer. Finally, Georgeson admitted saving the images and videos of minors engaged in sexually explicit conduct to the laptop computer, stating that he downloaded them while his wife was at work.
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.”
The case was investigated by the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Former State Social Service Supervisor Pleads Guilty in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – Michael Bowman, age 61, of Baltimore, pleaded guilty yesterday to wire fraud in connection with a scheme to use personal identifying information of individual bank accounts holders to defraud banks.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office and Inspector General William E. Johnson, Jr. of the Maryland Department of Human Resources.According to his plea agreement, Bowman was a supervisor for the Maryland Department of Social Services. In September 2011, Bowman’s work email account was flagged for suspicious activity. An email contained an attachment which listed numerous names, bank account numbers and other personal identifying information. Bowman admitted to law enforcement agents that he was lonely and had sought companionship online. Bowman met a man named “Steve” on a networking site in October 2010, who claimed to live in London, to be recently single and to be interested in Bowman. Steve promised to move in with Bowman in Baltimore if Bowman helped provide him with money, including funds to purportedly repair a house that Steve’s father left him upon his father’s death.
During the fraud scheme, which extended from October 2010 to September 2011, Steve also introduced Bowman to his friend “David.” Bowman never met Steve or David in person. Bowman was sent account numbers and personal identifying information of bank account holders which Bowman used to impersonate the individual victims. Once Bowman had gained access to the individual victim’s accounts, Bowman obtained account balance information, allowing the co-conspirators to link the individual victims’ account to accounts Bowman opened at banks. The co-conspirators then initiated wire transfers from the victim accounts, through Bowman’s accounts, to third party accounts controlled by Steve, David and others.
Over the course of the fraud scheme, Bowman accessed at least 88 individual accounts, resulting in an intended loss totaling $513,942.96. The only actual loss to a bank from the scheme was in the amount of $35,283.70.
Bowman also wired approximately $10,000 of his own money to Steve and David in small increments. He also participated in a scheme to traffic in counterfeit MoneyGram money orders, whereby he purchased a $1 MoneyGram money order at a grocery store, scanned it and emailed the scanned image to David. Bowman then received approximately 100 forged MoneyGram money orders in the mail, all in the amount of $997. At David’s request, Bowman mailed some of those money orders to a co-conspirator. MoneyGram suffered no actual loss from the scheme.
Bowman faces a maximum sentence of 20 years in prison and a fine of $250,000. Bowman has agreed to pay restitution of $35,283.70. U.S. District Judge James K. Bredar scheduled his sentencing for September 26, 2013, at 9:30 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Maryland Department of Human Resources - OIG for their work in the investigation. Mr. Rosenstein praised Special Assistant U.S. Attorney Paul K. Nitze of the Social Security Administration, who is prosecuting the case.
Former Sports Agent, Benjamin M. Geller, Pleads Guilty to Wire FraudRead the Press Release
BENJAMIN M. GELLER, age 53, a resident of Austin, Texas, pled guilty last Friday before U. S. District Judge Lance M. Africk to one count of wire fraud, announced U.S. Attorney Dana J. Boente.
According to court documents, GELLER was employed as a sports agent for, among others, Frank W. Warren, III, a former NFL player who played with the New Orleans Saints. In or around 1994, according to the Bill of Information, GELLER assisted Warren in obtaining a life insurance policy worth approximately $1,000,000. In the event of Warren’s death, the life insurance proceeds were going to fund a trust, which was established by Warren and GELLER, for the benefit of Warren’s spouse. GELLER was named trustee of the trust.
In or around 2002, according to the Factual Basis, Warren died and the funds from the life insurance policy (approximately $1,000,000) were disbursed to a trust in Warren’s name for the benefit of his widowed spouse. From in or around 2003 through in or around 2007, according to court documents, GELLER acted as the trustee of the trust and was only permitted to expend funds as the trust provided; he was not permitted to expend trust funds for his own personal use. Despite that prohibition, according to court documents, from in or around 2003 through in or around 2007, GELLER unlawfully defrauded the trust and its beneficiary by spending over $500,000 in trust funds for his own personal use, including for travel, lodging, and entertainment purposes. GELLER also spent some of the $500,000 in trust funds for his own personal businesses, as well as for other, miscellaneous purchases.
(Download Factual Basis )
Former Orleans Parish Bond Clerk, Lear Enclarde, Pleads GuiltyRead the Press Release
LEAR ENCLARDE, age 68, a resident of New Orleans, pled guilty today to Conspiracy to Commit Honest Services Mail Fraud in a one-count Bill of Information, announced U. S. Attorney Dana Boente.
According to court documents, ENCLARDE, who worked in the Orleans Parish Criminal Clerk’s Office from 1973 through 2010, accepted cash and things of value from an unlicensed bail bondsman in exchange for her permitting the unlicensed bondsman to use the name of another, licensed bondsman and to forge that licensed bondsman’s signature on official court documents.
Upon sentencing, which is scheduled for September 17, 2013, ENCLARDE faces a maximum term of imprisonment of 5 years, a fine of $250,000.00 and 3 years of supervised release following any term of imprisonment.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, the Orleans Parish District Attorney’s Office, and the United States Attorney’s Office.
The case is being prosecuted by Assistant U. S. Attorney Dan Friel.
(Download Factual Basis )
Former New York City Councilman Pedro Gautier Espada Sentenced to Six Months’ ImprisonmentRead the Press Release
Earlier today, Pedro Gautier Espada (“Gautier Espada”) was sentenced before Judge Frederic Block in U.S. District Court in Brooklyn, New York, to six months’ imprisonment, to be followed by six months’ home confinement and one year of supervised release, for theft of federal funds from Bronx-based non-profit healthcare clinics, Soundview Healthcare Network (“Soundview”) and for failing to file a tax return for tax year 2009. As part of that sentence, Judge Block ordered Gautier Espada to serve 100 hours of community service, restitution to the Internal Revenue Service in the amount of $15,628, and additional restitution to the victims of his thefts in an amount to be determined by the court. Gautier Espada served the South Bronx as a New York City Councilman from 1997 to 2001 and as a New York State Assemblyman in 1996.
On June 14, 2013, Judge Block sentenced Gautier Espada’s father, former New York State Senate Majority Leader Pedro Espada, Jr. (“Espada”), to five years’ imprisonment, to be followed by three years of supervised release, for theft of federal funds from Soundview, and lying on his 2005 personal tax return. As part of that sentence, Judge Block ordered Espada to serve 100 hours of community service, restitution to the Internal Revenue Service in the amount of $118,531, restitution to the victims of his thefts in an amount to be determined, and forfeiture of $368,088. The court remanded Espada to the custody of the Bureau of Prisons.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS).
On October 12, 2012, Gautier Espada pled guilty to one count of stealing federal funding from Soundview and one count of failing to file a tax return for 2009. Gautier Espada was Soundview’s Director of Environmental Care and headed Soundview’s Compliance Committee.
The government’s case was prosecuted by Assistant United States Attorneys Todd Kaminsky, Carolyn Pokorny and Claire Kedeshian.
The Defendant
PEDRO GAUTIER ESPADA
Age: 39
Fairfield, CTE.D.N.Y. Docket No. CR-10-985 (FB)
Former Corporate Executive Indicted for Executing Fraud and Money Laundering Scheme Involving over $230 Million in PurchasesRead the Press Release
An indictment was unsealed this morning in federal court in the Eastern District of New York charging Carl Fiorentino, the former president of computer and electronics seller TigerDirect, with mail fraud, wire fraud and money laundering in connection with a scheme to defraud TigerDirect and its parent company, Systemax, Inc. (“Systemax”). Systemax is a publicly traded company with headquarters in Port Washington, New York. According to the indictment, the defendant personally took over $7 million in commercial bribes and kickbacks in return for steering over $230 million in business to the Taiwanese and California companies that paid the bribes and kickbacks.
The defendant was arrested by federal agents earlier today in Coral Gables, Florida, and a search warrant was executed at his $8 million residence, purchased with fraud proceeds. Later today, the defendant will appear for arraignment before United States Magistrate Judge Edwin Torres in the Southern District of Florida. The criminal case has been assigned to the Honorable Sandra J. Feuerstein, United States District Judge for the Eastern District of New York, in Central Islip, New York.
The arrest and charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Michael DePalma, Acting Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, Miami, Florida.
“As alleged in the indictment and court papers, Carl Fiorentino abused his position of trust, employing fraud and deceit to line his own pockets at the expense of his employer and its public shareholders. Fiorentino had it all – a lucrative job and a high-flying lifestyle. But as alleged in the indictment and court papers, his loyalties were neither to his employer nor its public shareholders but solely to himself. Fiorentino’s greed spanned the Pacific Ocean to pull companies from California to Taiwan into his bribery and kickback scheme,” stated United States Attorney Lynch. “We and our law enforcement partners will vigorously pursue and prosecute to the fullest extent of the law those who seek to profit by such fraud.” Ms. Lynch expressed her grateful appreciation to the FBI and IRS for their work on the investigation.
“As alleged, Fiorentino exploited his position to engage in blatant self-dealing. He accepted bribes to abuse his purchasing power and direct company business to specific suppliers. The suppliers’ lavish kickbacks helped finance Fiorentino’s multimillion-dollar home. The FBI will continue to police the kind of insider fraud that victimizes companies and their shareholders,” stated FBI Assistant Director-in-Charge Venizelos.
“IRS Criminal Investigation is committed to unraveling elaborate and complex money laundering schemes leaving no financial stones unturned,” stated Michael J. De Palma, Acting Special Agent-in-Charge of IRS-Criminal Investigation, Miami Field Office. “Those who abuse their position of trust to illegally enrich themselves will be held accountable for their actions.”
Beginning in January 2003 and continuing until April 2011, Fiorentino was the president of TigerDirect, a subsidiary of Systemax, Inc., that sold brand-name computers and its own line of Ultra computers in its retail stores and via mail-order catalogs and the Internet. In 2010 Systemax reported $3.5 billion in net sales according to its 2010 SEC 10K filing. Among his duties as company president, Fiorentino was responsible for selecting suppliers to provide computer components, peripherals and other products to TigerDirect. As alleged in the indictment, beginning in 2003, Fiorentino entered into an illegal agreement with the owner of a Taiwanese company to steer TigerDirect business to his company by directing TigerDirect to purchase the Taiwanese company’s computer components in exchange for bribes and kickbacks that totaled $6.5 million dollars over the course of the conspiracy. In addition, between 2003 and 2007, Fiorentino received another $570,000 in bribes and kickbacks from a California-based company that sold computer memory modules and flash memory products. Fiorentino received the bribes and kickbacks through checks and wire transfers payable to third party individuals and entities that he controlled. Fiorentino used the proceeds of the fraud scheme to buy, among other things, an $8 million home in Coral Gables, Florida.
As a result of the scheme, TigerDirect is alleged to have paid over $157,000,000 for the Taiwanese company’s products and $80,000,000 for the California company’s products. Fiorentino concealed the scheme and kickback payments by submitting false conflict of interest forms to Systemax and using a complex web of wire transfers and shell companies.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty. The indictment charges Fiorentino with mail fraud, wire fraud, conspiracy to commit mail and wire fraud and money laundering conspiracy. If convicted, he faces a maximum sentence of 20 years’ imprisonment on each of those charges, forfeiture of the $8 million Coral Gables residence and over $7 million dollars, and a $250,000 fine.
The government’s case is being prosecuted by Assistant United States Attorney Demetri Jones.
The Defendant:
Name: CARL FIORENTINO
Age: 56Former Bank President Charged with 18 Counts of Bank FraudRead the Press Release
United States Attorney James L. Santelle announced today that David J. Langemak, (age: 41), formerly of Plymouth, Wisconsin, and former bank president of Community Bank and Trust, Plymouth Branch, (CB&T) was indicted June 18, 2013, for 18 counts of bank fraud in violation of Title 18, United States Code, Section 1344 (2). If convicted, Landemak faces a maximum of 30 years in prison and a $1,000,000 fine on each count.
The indictment alleges that Langemak, while employed as president of CB&T made unauthorized withdrawals which totaled approximately $250,000 from the accounts of various bank customers for the benefit of a single unrelated bank customer.
The case was investigated by the Federal Deposit Insurance Corporation, Office of the Inspector General, the Federal Bureau of Investigation, and the Small Business Administration, Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Carol L. Kraft.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Atlanta Police Officer Sentenced to Prison for Accepting BribesRead the Press Release
ATLANTA – Elton Augustin, a former Atlanta Police Department officer, was sentenced to two years in prison today for conspiring to accept bribes and lying to FBI agents.
“Police officers are sworn to uphold the law and protect the community they serve, but this defendant protected an illegal business in exchange for cash and then lied to federal investigators,” said United States Attorney Sally Quillian Yates. “His actions betrayed the community and the honest law enforcement officers who serve honorably every day.”
“While today’s sentencing ends one police officer’s career, it is important to note that the vast majority of dedicated law enforcement officers that serve our community understand their oaths to the badge and honor their commitment to their positions of trust,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI urges anyone with information regarding activities involving police corruption to contact their nearest FBI field office.”
According to United States Attorney Yates, the charges and other information presented in court: From June 2007 through August 2007, while employed as a police officer with the Atlanta Police Department (APD), Elton Augustin worked at an illegal nightclub in Atlanta, Ga. Augustin, along with two other APD officers, received over $10,000 in cash to provide security and prevent police officers from investigating illegal activity at the nightclub, which included gambling, prostitution, drug sales, and permit violations.
Augustin and the other officers were posted outside of the nightclub’s parking lot to intercept on-duty police officers responding to emergency calls. The officers’ presence at the nightclub prevented on-duty officers from discovering the illegal activity and allowed the club to operate undetected for several months.
On September 15, 2007, APD officers shutdown the illegal nightclub and arrested the club’s owners. In 2010, federal agents learned about the officers’ employment at the illegal nightclub. When confronted, Augustin lied to federal agents investigating his employment at the illegal nightclub.The other two APD police officers, Lucius T. Solomon and Eric Jones, were also convicted of bribery charges. Solomon pleaded guilty to bribery and drug trafficking charges on September 2, 2010, and was sentenced to 12 years in prison on December 17, 2010. Jones pleaded guilty to conspiring with Augustin to accept bribes on April 5, 2013, and is awaiting sentencing.
Augustin, 32, of Stockbridge, Ga., was sentenced today by United States District Judge Timothy C. Batten, Sr. to serve two years in prison, to be followed by two years of supervised release, and to perform 100 hours of community service. Augustin was convicted of lying to federal agents after a jury trial on December 7, 2012. On February 14, 2013, Augustin pleaded guilty to conspiring to accept bribes.
This case was investigated by the Federal Bureau of Investigation and the Atlanta Police Department.Assistant United States Attorney Jeffrey A. Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Felon in Possession of Firearm Sentenced to 120 MonthsRead the Press Release
EUGENE, Ore. – On June 18, 2013, Klamath Falls resident Kevin Rowdy Hurst, 45, was sentenced by U.S. District Chief Judge Ann Aiken to 120 months in federal prison for unlawful possession of a firearm and ammunition. Upon his release from prison, Hurst will be on supervised release for three years.
On August 13, 2011, a Klamath County Sheriff’s Officer encountered Hurst biking the streets of Klamath Falls while carrying a loaded AR-15. When confronted, Hurst threw the rifle over a fence and eluded officers. Defendant has multiple felony convictions and a lengthy criminal history.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Klamath County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Federal Court Shuts Down Florida Tax PreparerRead the Press Release
A federal court in Orlando, Fla., permanently barred Carlos A. Cabrera from preparing federal tax returns for others, the Justice Department announced today. The permanent injunction order was signed by Judge Charlene E. Honeywell of the U.S. District Court for the Middle District of Florida. Cabrera, whose business was in Kissimmee, Fla., consented to the permanent injunction order without admitting the allegations against him.
The government complaint in the civil injunction action alleged that Cabrera and his business—Cabrera Financial Group—prepared federal income tax returns for customers that claimed improper losses for non-existent businesses and fabricated education credits in order to unlawfully understate customers’ tax liabilities. According to the complaint, Cabrera prepared over 17,000 tax returns for 2009 and 2010, with an average tax understatement of $4,222 per return for returns the Internal Revenue Service examined. The government suit alleged that the total losses to the Treasury Department from Cabrera’s misconduct could be tens of millions of dollars for those two years alone.This lawsuit is part of the Justice Department’s nationwide crackdown on tax scams, including the preparation of fraudulent federal tax returns. Over the last decade, the department has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. More information about these cases and the Tax Division can be found on the department’s web site www.justice.gov/tax.
Related Materials:
United States v. Carlos A. Cabrera
Consent Final Judgment of Permanent Injunction (PDF)Export Man Sentenced to Prison for Threatening Federal Agent, Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Westmoreland County, Pa., has been sentenced in federal court to 38 months imprisonment to be followed by 10 years of supervised release, as well as ordered to pay a $5,000 fine, on his conviction of threatening to murder, intimidate, interfere or retaliate against a Federal Official and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Todd Markley, 49.
According to information presented to the court, on or about May 31, 2012, Markley sent an email threatening to assault and murder a United States Postal Inspector of the United States Postal Inspection Service (USPIS), with intent to impede, intimidate, interfere with and retaliate against the Postal Inspector while she was engaged in her official duties. In addition, on or about April 12, 2012, Markley possessed visual depictions, namely, images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Prior to imposing sentence, Judge Cercone stated that "everyday of [the imposed sentence] is warranted because of the heinous language used in that threatening communication".
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigations and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Markley.
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.justice.gov/psc.
Dickson County Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Defendant Was On State Probation for Prior Offense
Dustin S. Sharp, 32, of Dickson, Tennessee pleaded guilty yesterday in U.S. District Court in Nashville to Receipt of Child Pornography, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
According to the plea agreement, Sharp was on probation for a June 2007 conviction in state court for sexual exploitation of a child when he was again discovered to be trading child pornography on the Internet in 2009. Some of the 765 images and 14 videos discovered during the investigation involved the sexual exploitation of very young children and violence.
Receipt of child pornography carries a minimum mandatory sentence of fifteen years in prison when it is a repeat offense. Sharp is scheduled for sentencing before U.S. District Court Chief Judge William Joseph Haynes, Jr. on September 16, 2013, at 3:00 p.m.
This matter was investigated by the Dickson County Sheriff’s Office and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.David Wayne Lawrence 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 June 17, 2013, before Chief U.S. District Judge Dana L. Christensen, DAVID WAYNE LAWRENCE, a 47-year-old resident of Great Falls, was sentenced to a term of:
Prison: 65 months, consecutive to another sentence
Special Assessment: $100
Supervised Release: 3 years
LAWRENCE was sentenced in connection with his guilty plea to to possession of methamphetamine with intent to distribute.
In an Offer of Proof filed by Assistant U.S. Attorney Joseph E. Thaggard, the government stated it would have proved at trial the following:
LAWRENCE was involved with several other individuals in a conspiracy that involved the distribution of methamphetamine from Spokane, Washington to Great Falls. One of the individuals was based in Great Falls and periodically traveled with certain associates to Spokane, picked up methamphetamine, then took the drug back to Great Falls. He then distributed the drugs through a network of drug dealers in Great Falls.
LAWRENCE was one of the subordinate drug dealers. LAWRENCE lived at a residence in Great Falls with two other individuals and all three distributed methamphetamine from the residence.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LAWRENCE will likely serve all of the time imposed by the court. In the federal system, LAWRENCE 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 Drug Enforcement Administration and the Great Falls Police Department.
Convicted felon receives three year sentence for firearm possessionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage has been sentenced in federal court in Anchorage for her conviction of felon in possession of a firearm.
Ashley Helene Hilton, 26, from Anchorage, Alaska, was sentenced on June 14, 2013, by U.S. District Court Judge Sharon L. Gleason to 36 months in prison.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the case, Hilton possessed a loaded Witness .45 caliber semi-automatic pistol on September 5, 2012. A latent print on the magazine inside of the firearm matched that of the defendant. Hilton was not legally permitted to possess the firearm, as she has a felony conviction for second degree robbery from 2005. In this present case, Hilton was with her co-defendant, Nancie Caridad Modeste, who was in the possession of 85 grams of crack cocaine and was arrested on drug charges. Modeste has pled guilty to possession of a controlled substance with intent to distribute and felon in possession of firearms, and her sentencing hearing is set for July 1, 2013.
Prior to imposing sentence, Judge Gleason noted the serious nature of the offense, along with a need to deter criminal conduct, protect the public and promote respect for the law.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alaska State Troopers for the investigation of this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.Connecticut Man Admits Running Investment Fraud SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JONATHAN GRACIA, 24, formerly of Middletown, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of wire fraud stemming from an investment fraud scheme.
According to court documents and statements made in court, GRACIA falsely told friends and acquaintances that he was developing a website for which he had potential buyers, and that he had developed an “app” for the iPhone, and then solicited investments and loans from his victims in connection with both of these purported ventures. GRACIA regularly told the victims that they would receive outsized returns on their investments. As part of the scheme, GRACIA created bogus documents to deceive his victims, including fake checks, bogus bank account statements and a letter that he created on what appeared to be the letterhead of a prominent Connecticut hedge fund management company. Through this scheme, GRACIA defrauded his victims of at least $200,000.
GRACIA is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on September 10, 2013, at which time he faces a maximum term of imprisonment of 20 years.
GRACIA has been detained since his arrest on March 18, 2013.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Branford and Stamford Police Departments. The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Colorado Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Denver, Colorado man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Joe S. Romero, age 42, was indicted by a federal grand jury on January 8, 2013 for failing to pay over $33,601.00 in past due child support. He appeared before U.S. Magistrate Judge John E. Simko on June 17, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee to the Federal Crime Victims Fund; and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Romero is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Romero was remanded to the custody of the U.S. Marshal. A trial date has not been set.
ChubbuckWoman Sentenced for Theft of Government PropertyRead the Press Release
POCATELLO – Leslie A. Briggs, 36, of Pocatello, Idaho, was sentenced today in United States District Court to 21 months in prison followed by three years of supervised release for theft of government property, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Briggs to pay restitution of $103,611.76. She pleaded guilty to the charge on March 28, 2013.
According to the plea agreement, Briggs was employed as assistant to the manager of the Aid for Friends Representative Payee Program, in which the Social Security Administration sends payments for beneficiaries to Aid for Friends. Aid for Friends then administers the funds and pays for the beneficiary’s personal expenses. According to the plea agreement, Briggs had signing authority on the Aid for Friends Social Security Administration trust account at Wells Fargo Bank, where all beneficiaries’ Social Security funds are deposited. Briggs admitted that from November 2008 to December 2010, she wrote checks on the trust account, without authorization, for personal expenses, including credit card bills, insurance and a home loan. Judge Winmill also stated during the sentencing that Briggs has two previous convictions for embezzlement.
The case was investigated by the Social Security Administration, Office of Inspector General-Office of Investigations and the Pocatello Police Department.
Business Owner and His Wife Sentenced for Health Care FraudRead the Press Release
SAN JUAN, P.R. – On June 17, 2013 defendant Gilberto Gómez was sentenced to a term of imprisonment of 70 months and ordered to pay restitution in the amount of $1,956,750.54 by US District Court Judge Gustavo A. Gelpí, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Today, his wife Yolanda García was sentenced to a term of imprisonment of 12 months and a day, followed by 2 years of Supervised Release Term and a Special Monetary Assessment in the amount of $100.00.
A forfeiture order was also issued for the seizure of all the properties and monies mentioned in the forfeiture allegation of the Indictment, which include a luxurious apartment at Gallery Plaza Condominium in Condado, multiple bank accounts, investment accounts, jewelry and other personal property that constitutes or was derived, directly or indirectly from the gross proceeds traceable to the commission of the offense.
On January 12, 2012, a Federal grand jury returned an indictment against multiple individuals for conspiracy to commit health care fraud. Amongst them, Gilberto Gómez, president of Monte Mar Health Corporation (Monte Mar), PROMEDS Medical Inc. (PROMEDS) and Quality Care Medical Supply (Quality) and Yolanda García-Rodríguez, aka “Yolanda Gómez,” wife of Gómez and president of PROMEDS, secretary/treasurer of Monte Mar and an authorized official of Quality.
The indictment alleges that from on or about November, 2008, until on or about May, 2010, Monte Mar submitted at least 1,518 false and fraudulent claims to Medicare totaling approximately $2,993,127.35 for Durable Medical Equipment (DME) that was not medically necessary, causing Medicare to disburse approximately $1,440,597.65. The indictment further alleges that on or about March 2010, after Monte Mar had been placed in a pre-payment status by Medicare, defendants Gilberto Gómez and Yolanda García-Rodríguez purchased PROMEDS and submitted false claims to Medicare seeking reimbursement for DME, including power wheelchairs, power pressure reducing air mattresses and knee orthosis. PROMEDS submitted at least 359 fraudulent claims to Medicare totaling approximately $786,368.34, causing Medicare to disburse approximately $335,493.12.
The indictment further alleges that in October 2010, a third company, Quality, was purchased by Gómez and García-Rodríguez after PROMEDS had been placed in a pre-payment status by Medicare. From on or about October 2010, until May, 2011, Quality submitted at least 115 false claims to Medicare totaling approximately $298,321.26, causing Medicare to disburse approximately $180,659.77. The indictment alleges a total amount of $4,077,816.95 fraudulently billed by using Monte Mar, PROMEDS and Quality, where Medicare disbursed a total of approximately $1,956,750.54.
The investigation was led by the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), with the collaboration of the United States Secret Service (USSS) and the Federal Bureau of Investigation (FBI).“As part of the nation’s health care system, Medicare serves vulnerable populations,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “The sentences imposed by the Court today show that we will not tolerate criminals who engage in fraudulent schemes which deplete the Medicare program of funds which are destined for our elderly population, in order to enrich themselves.”
“HHS/OIG works diligently to investigate allegations of Medicare fraud. Today's sentencings involving Durable Medical Equipment (DME) fraud demonstrate our resolve to bring these subjects to justice. Furthermore, our efforts, along with the US Attorney's Office and our Law Enforcement partners, have made a dramatic reduction on the total dollars billed and paid for DME in Puerto Rico.”
“The U.S. Secret Service is committed to investigate any financial fraud crimes to include identity theft along with our partner agencies to safeguard our financial system,” said Pedro Gómez, Special Agent in Charge. We will continue to investigate these types of crimes to the fullest extent of the law and bring to justice these criminals that engage in identity theft to facilitate other criminal activities.”
The case was prosecuted by Assistant U.S. Attorney Héctor Ramírez-Carbó and Special Assistant U.S. Attorney Wallace A. Bustelo.Buffalo Man Sentenced for Food Stamp FraudRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Karem Almadrahi, 25, of Buffalo, N.Y., who was convicted of food stamp fraud, was sentenced by U.S. District Judge Richard J. Arcara to eight months of home confinement and three years probation. The defendant was also ordered to pay restitution in the amount of $67, 301 to the United States Department of Agriculture.
Assistant U.S. Attorney Robert C. Moscati, who handled the case, stated that Almadrahi participated in the operation of a deli known as Zip's Food and Beverage at 896 Niagara Street. The defendant and others exchanged customers food stamp benefits for cash in violation of the known rules governing the food stamp program. In less than a two year period, Almadrahi acquired approximately $67,301 through these fraudulent transactions.
The sentencing is the result of an investigation on the part of Special Agents of the United States Department of Agriculture, Office of Inspector General; Special Agents of the Federal Bureau of Investigation under the direction of Acting Special Agent in Charge Richard M. Frankel; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; and the New York State Police, Special Investigations Unit, under the direction of Lieutenant Joseph Scioli.
Brothers Charged in Online Ticket Sales SchemeRead the Press Release
PITTSBURGH, Pa. - Brothers Daniel J. Isabella, Jr. and David J. Isabella were indicted today by a federal grand jury on conspiracy and wire fraud charges, United States Attorney David J. Hickton announced today.
The indictment named Daniel J. Isabella, Jr., 29, and David J. Isabella, 22, both of Pittsburgh, Pa.
According to the indictment, from January through September of 2012, Daniel J. Isabella, Jr. and David J. Isabella advertised online the sale of tickets to entertainment events. Although they did not have tickets to these events, the brothers would instruct potential purchasers to send money for the advertised tickets. Daniel and David Isabella defrauded over 250 potential ticket purchasers of over $70,000.
The law provides for a maximum total sentence of not more than 100 years in prison, a fine of $1,250,000, or both for Daniel J. Isabella, Jr. The law provides for a maximum total sentence of not more than 80 years in prison, a fine of $1,000,000, or both for David J. Isabella. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Daniel J. Isabella, Jr. and David J. Isabella.
Brooklyn Licensed Home Health Care Services Agency Pays One Million Dollars to Settle Civil Fraud Claims That It Provided Unqualified Home Health Aides to Medicaid RecipientsRead the Press Release
The United States and New York State have entered into settlement agreements with Parkshore Home Health Care, LLC, d/b/a Renaissance Home Health Care, Inc. (“Renaissance”), a Brooklyn-based licensed home health care services agency. These settlements resolve allegations that Renaissance provided unqualified home health aides to home health agencies, who in turn sent these unqualified aides into the homes of Medicaid recipients throughout New York City and then billed the Medicaid program for their services. Under the terms of the agreements, Renaissance will pay a total of $1,000,000. The settlement was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and New York State Attorney General Eric T. Schneiderman.
Under the New York State Medicaid program, home health aides – who primarily care for elderly patients, administer medication and provide services such as catheter care, colostomy care and wound care – are required to successfully complete a training program licensed by either the New York State Department of Health or the New York State Education Department. Today’s settlement resolves claims that between 2005 and 2007, Renaissance used home health aides who failed to receive the required training, resulting in Medicaid being billed for hundreds of thousands of dollars of services that these aides were not qualified to provide.
“When companies that provide home health aides fail to take the necessary steps to ensure the proper training for their aides, patients are the ones who can suffer,” said United States Attorney Lynch. “We will continue working to stop health care fraud from being committed on the Medicare and Medicaid programs, especially when the fraud can impact the care received by vulnerable patients.”
“This home health care agency hired workers with false training certificates who then went out into the community and into the homes of the vulnerable and elderly,” Attorney General Schneiderman said. “This was preventable and our investigations show that is a recurring problem in home health care. This office will continue to recover Medicaid funds from providers who do not protect the Medicaid program.”
The settlements resolve allegations that were contained in lawsuits filed under the whistleblower provisions of the Federal and New York State False Claims Acts. These provisions allow private citizens to file suit on behalf of the United States and State of New York, respectively, for fraud, and in certain circumstances to share in any recovery. 1
The United States’ case was handled by Assistant U.S. Attorneys Erin E. Argo and Kelly Horan Florio, who were assisted by Affirmative Civil Enforcement auditor Emily Rosenthal. New York State’s case was handled by Special Assistant Attorney General Jill Brenner.
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1 In settling this case, Renaissance has not admitted liability.
British National Admits Role in Cocaine Smuggling ConspiracyRead the Press Release
NEWARK, N.J– An extradited British national today admitted his role in an organization that smuggled cocaine aboard commercial airlines from the West Indies to England via the United States, U.S. Attorney Paul J. Fishman announced.
Prine George Alfonso Jones, a/k/a “Prince,” 47, of Birmingham, Great Britain, pleaded guilty to an information charging him with conspiracy to import and to export cocaine. Jones was arrested on Feb. 4, 2009, in Great Britain, for allegedly transporting narcotics directly from St. Lucia to Great Britain. Jones was extradited from Great Britain and had his initial appearance on narcotics conspiracy charges in December 2012.
According to documents filed in this and related cases and statements in court:
Jones was involved in an organization whose members included Nigel Roberts, a/k/a “Skang,” another British national who previously pleaded guilty to related charges. The organization acquired cocaine in Jamaica and St. Lucia, concealed it in luggage, and provided that cocaine-filled luggage to drug couriers, who transported it by commercial airlines to Great Britain after making intermediate stops in the United States. Jones admitted to his role as a British operative of the organization who would provide transport to drug couriers and the narcotics that they smuggled.
Today’s guilty plea stems from a multi-jurisdictional and international investigation into narcotics trafficking that has resulted in multiple narcotics seizures and the charging of 14 individuals to date. Jones is the 14th member of this international cocaine trafficking ring to have pleaded guilty in the District of New Jersey.
The conspiracy charge to which Jones pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for July 8, 2013.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees; and the Drug Enforcement Administration’s New Jersey Division under the direction of Acting Special Agent in Charge Robert G. Koval, in coordination with police officers of the West Midlands Police Complex Casework Unit in Birmingham, England, for the investigation leading to today’s plea. U.S. Attorney Fishman also thanked the Department of Justice’s Office of International Affairs for its assistance in obtaining Jones’s extradition.
The case is being prosecuted by Assistant U.S. Attorney Eric W. Moran of the U.S. Attorney’s Office in Trenton.13-255
Defense counsel: Olubukola O. Adetula, Esq., Irvington, N.J.
Jones, Prine Supersedimg Information
Beaumont Orthodontist Guilty of Health Care Fraud ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 70-year-old Beaumont orthodontist has pleaded guilty to health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Terrence Ewing Syler pleaded guilty to an Information charging him with health care fraud today before U.S. Magistrate Judge Keith Giblin.
According to the information presented in court, Syler owned and operated Syler Orthodontics in Beaumont. From January 2007 to October 2012, Syler carried out a scheme to defraud Medicaid by submitting claims for palatal expanders which were never provided to his patients. As a result of the scheme, Syler received $829,333 to which he was not entitled. As part of his plea agreement, Syler has agreed to forfeiture of several bank accounts totaling just over $829,000.
Syler faces up to10 years in federal prison at sentencing. A sentencing date has not been set.The Texas Medical Assistance Program (Medicaid) is a health care benefit program, jointly funded by the State of Texas and the federal government, and helps pay for reasonable and necessary medical procedures and services provided to individuals who are deemed eligible under state low-income programs.
This case is being investigated by Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU). Assistant U.S. Attorney Christopher T. Tortorice is prosecuting this case.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477).
Bank Vice-President and Senior Business Director Sentenced in Wire Fraud SchemeRead the Press Release
Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Susan Emily Jones (50, Lutz) to 24 months in federal prison for committing wire fraud. As part of her sentence, the court also entered a money judgment in the amount of $824,301.57, the proceeds of the wire fraud scheme. Jones has already forfeited her interest in a BMW, her personal residence, and the funds in three bank accounts totaling $7,166.38. Jones pleaded guilty on January 16, 2013.
According to court documents, Jones served as Vice-President and Senior Business Director of Citicorp Services, Inc. and managed its employees and operations. From November 13, 2003, through January 5, 2010, in Tampa, Jones falsely and fraudulently led Citicorp Services, Inc. employees to believe that she was authorized to make certain expenditures of company funds and misappropriated these funds for her personal enrichment. Specifically, Jones used these funds to pay for Tampa Bay Buccaneers football season tickets, personal credit card expenses, charitable contributions, prepaid debit cards, auto-related expenses, travel, and other goods and services. As part of the scheme to misappropriate funds, she caused the unauthorized transfer of funds from the Citibank, N.A. reserve account to the Citicorp Services, Inc. account. In sum, Jones misappropriated $824,301.57 using interstate wire transmissions, by bypassing Citicorp Services, Inc.’s and Citibank, N.A.’s internal controls for business and travel and entertainment expenses.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Bank Teller Admits Stealing Money from Cd AccountsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MICHELLE LAUDATO, 35, of Farmington, waived her right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of bank fraud.
According to court documents and statements made in court, between July 2009 and June 2010, LAUDATO used her position as a teller supervisor at a branch of Webster Bank in Bristol to steal more than $178,000 from the CD accounts of at least 18 bank customers. Thirteen of the 18 bank customers were between the ages of 79 and 99.
As part of the scheme, LAUDATO sometimes withdrew funds from certain CD accounts to replace funds in the CD accounts she had previously accessed. She also withdrew funds in increments of $10,000 or less to avoid currency transaction reporting requirements.
LAUDATO is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on September 6, 2013, at which time she faces a maximum term of imprisonment of 30 years and a fine of up to $1 million.
This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Felice M. Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Ambulance Company Owner and Operator Heads to Federal PrisonRead the Press Release
HOUSTON - Julian Kimble, 48, has been handed a federal prison sentence following his convictions for conspiracy to commit health care fraud, conspiracy to commit money laundering and tax evasion, United States Attorney Kenneth Magidson announced today. Kimble pleaded guilty to these federal crimes on Nov. 29, 2011.
At the hearing today, U.S. District Judge David Hittner sentenced Kimble to federal prison for 72 months for conspiracy to commit health care fraud, 72 months for conspiracy to commit money laundering and 60 Months for tax evasion. The sentences on each count are to be served concurrently followed by three years of supervised release. He was further ordered to pay $3,676,587 in restitution to the Medicare Program.
Kimble had admitted that from March 2008 through December 2010, he owned and operated four ambulance companies - Monarch Ambulance, Tamimi International Inc. dba Universal Care, Houston EMS dba XTRA Care Inc., and HKO Group Inc. dba Delta Care EMS. In his operation of these companies, Kimble routinely billed Medicare for basic life support (BLS) ambulance transports that were not provided, not needed or not ordered by the treating physicians.
None of the four ambulance companies operated by Kimble owned licensed ambulance vehicles necessary to provide the BLS transports for which he billed Medicare. Kimble used third-parties and straw owners to register the ambulance companies with the Texas Department of Health. He and others often transported multiple beneficiaries at the same time in vans or sedans, fraudulently billing Medicare for allegedly providing individual transports in ambulances under the attention of qualified emergency medical personnel. In addition, Kimble received kickbacks from the owners of different community mental health centers (CMHCs) in the Houston area in exchange for supplying patients to their facilities. Under Kimble’s direction, Medicare beneficiaries received payments in exchange for agreeing to be transported to different CMHC facilities around the Houston area. From 2008 through December 2010, Kimble’s companies fraudulently billed Medicare for approximately $8.7 million and received payment for approximately $3.6 million.
To conceal the proceeds of the health care fraud, Kimble withdrew funds from the business accounts of the different ambulance companies, keeping part of those funds and using the remainder to pay kickbacks to patients. From the funds fraudulently obtained from Medicare, Kimble issued checks for thousands of dollars to other conspirators, who, after cashing the checks, would return part of the cash to Kimble, use another part of the money to recruit patients and keep the remainder of the money for themselves. From August to December 2010, conspirators received checks from Kimble totaling more than $1 million. No part of this money was reported as taxable income.
Kimble was also charged and convicted of tax evasion as a result of a prior investigation into his ownership of Pearl Ambulance Service from 1998-2007. Kimble admitted he overstated the business expenses for Pearl Ambulance in his tax returns for 2003-2007. Additionally, he claimed business expenses from Pearl Records, his music business, in his tax returns for Pearl Ambulance which resulted in a zero dollar tax liability for Pearl Ambulance. Kimble failed to file corporate tax returns for Pearl during this time until his assets were about to be seized. When he did file, the delinquent returns were discovered to be materially false.
Kimble will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the United States Secret Service, Internal Revenue Service-Criminal Investigations and the Department of Health and Human Services-Office of Inspector General. Special Assistant United States Attorney Justin S. Blan prosecuted the case.
Aloysious Wells 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 June 17, 2013, before Chief U.S. District Judge Dana L. Christensen, ALOYSIOUS WELLS, a 25-year-old resident of Heart Butte and an enrolled member of the Blackfeet Tribe, was sentenced to a term of:
Prison: 20 months
Special Assessment: $100
Supervised Release: 10 years
WELLS was sentenced in connection with his guilty plea to abusive sexual contact.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In 2009, WELLS went to a house in Heart Butte, which is on the Blackfeet Indian Reservation. He entered the living room and the victim, who was under the age of 12 at the time, was laying on the sofa. He sat down beside her and began to sexually abused her.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WELLS will likely serve all of the time imposed by the court. In the federal system, WELLS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Abel “Alex” Alvarez 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 June 18, 2013, before Chief U.S. District Judge Dana L. Christensen, ABEL "ALEX" ALVAREZ, a 51-year-old resident of Box Elder, was sentenced to a term of:
Prison: 40 months
Special Assessment: $100
Supervised Release: 10 years
ALVAREZ was sentenced in connection with his guilty plea to aggravated sexual abuse.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
In late spring of 2011, ALVAREZ had unlawful sexual contact with a 9-year-old child. The incident happened on the Rocky Boy's Indian Reservation and the child is an enrolled tribal member.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ALVAREZ will likely serve all of the time imposed by the court. In the federal system, ALVAREZ does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
17 June 2013
United States Attorney’s Office Announces Support for Attorney General’s Mobile Street Crime UnitRead the Press Release
Peter Smith, United States Attorney for the Middle District of Pennsylvania, announced today that his office enthusiastically supports Attorney General Kathleen Kane’s proposal to establish a mobile street crime unit targeting gangs in specific areas of Pennsylvania, beginning with Hazelton.
Smith stated that the Attorney General’s plan is a timely act of bold leadership on behalf of often overwhelmed and underfunded local law enforcement agencies in Hazelton and the surrounding area. “It is especially appropriate that the Attorney General wants to focus on a community in Luzerne County where the combination of gangs, drugs, adverse economic conditions, and political corruption has undermined public confidence in government and faith in the future.”
Smith noted that the Attorney General’s announcement mentioned that the mobile unit would partner with agents of the Drug Enforcement Administration and Federal Bureau of Investigation. He added that, in addition, the United States Marshals Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigation; and United States Department of Homeland Security are also extremely active in northeastern Pennsylvania, in coordination with his office and local and state task forces, police departments, the Pennsylvania State Police, and district attorney’s offices.
“Federal law enforcement will continue to work closely and creatively with the Attorney General and her staff on this initiative and others to fight gangs and drugs in northeastern Pennsylvania with all of the tools and resources at our disposal.”
United States Attorney to Leave OfficeRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that a corporation and its two owners have been charged in connection with a wide ranging and ongoing federal and state investigation into corruption and fraud surrounding federal environmental laws.
RAM ENVIRONMENTAL SERVICES, INC., an entity incorporated in the State of Louisiana and doing business in Morgan City, Louisiana; RAYMOND MARCEL, JR., age 60, of Berwick, Louisiana; and CYRIL D. ROBICHEAUX, age 53, of Morgan City, Louisiana, have each been charged in Bills of Information with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371. MARCEL and ROBICHEAUX are the owners and operators of RAM, a wastewater brokerage firm.
If convicted, MARCEL and ROBICHEAUX would face up to five years imprisonment, a $250,000 fine, a term of supervised release following imprisonment up to three years, and restitution to any victims. If convicted, RAM would face a fine up to $250,000, a term of probation up to five years, and an order of restitution to any victims.
Today’s charges allege that, in 2011 and 2012, the defendants conspired with themselves and others to illegally discharge industrial wastewater at locations in Belle River, Louisiana, and Baton Rouge, Louisiana, and to otherwise obstruct the enforcement of the federal environmental laws through kickbacks, the creation and use of false documents, and other fraudulent means.
With regard to the Baton Rouge conduct, the charges allege that, in September 2012, the defendants and others caused the illegal disposal of industrial wastewater at a site in Baton Rouge, Louisiana, and concealed such activity through the creation and use of false documents. According to the charges, the defendants undertook such fraudulent activity with the owner of the Baton Rouge site and further schemed with the site owner to lie to investigators regarding the disposals.
With regard to the Belle River conduct, the charges allege that, during 2011 and 2012, the defendants paid over $22,000 in kickbacks to Michael J. Vaughn (“Vaughn”), the Operations Manager of FAS Environmental Services, a transportation and disposal company, in exchange for illegally using FAS’s injection well in Belle River to dispose of over 380,000 gallons of industrial wastewater. As part of the scheme, the defendants and their fellow conspirators allegedly created and used over 100 false documents, including manifests and work orders, in addition to submitting false reports to regulators in Baton Rouge. Such allegedly false and fraudulent documents were designed to conceal the scheme from federal and state government officials, as well as the defendant corporation’s unsuspecting clients.
Today’s charges were preceded by Vaughn’s conviction on May 29, 2013. Vaughn, the former FAS Operations Manager, pled guilty before U.S. District Judge James Brady to a previously sealed Bill of Information charging him with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371, making false statements within the jurisdiction of the federal government, in violation of Title 18, United States Code, Section 1001, and forfeiture. Vaughn is pending sentencing.
FAS ownership was unaware of the scheme involving the FAS injection well, which resulted in the misuse of FAS resources. FAS has cooperated fully throughout the investigation.
This ongoing investigation is being conducted by this office, the Criminal Investigation Division of the U.S. Environmental Protection Agency, and the Criminal Investigation Division of the Louisiana Department of Environmental Quality. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
U.S. Attorney’s Office Hosts Greater Boston PFLAG for LGBT Pride MonthRead the Press Release
In recognition of LGBT Pride Month, the U.S. Attorney’s Office hosted representatives from the Greater Boston PFLAG (Parents, Families, and Friends of Lesbians and Gays). Greater Boston PFLAG aims to change attitudes and create an environment of understanding so that gay family members and friends can live in a world that is safe and inclusive. The organization works to create environments of understanding so that all people can live with dignity and respect through: support, to cope with an adverse society; education, to enlighten the public; and advocacy, to end discrimination and to secure equal civil rights. Greater Boston PFLAG also provides opportunities for dialogue about sexual orientation and gender identity, and acts to create a society that is healthy and respectful of human diversity.
Pam Garramone, Executive Director, and Deb Peeples, Board President, along with Amir Dixon and Zachary Kerr, spoke about Greater Boston PFLAG and shared their personal stories involving a wide variety of LGBT issues. Pam and Deb recently returned from the White House to receive recognition for the important work that they do on behalf of the LGBT community. Amir, 23, is an award winning writer, producer, filmmaker and activist who in 2011 became the youngest board member of the Hispanic Black Gay Coalition of Boston (HBGC). Zachary, 19, is a recent high school graduate and member of the Massachusetts Commission on LGBT Youth. He has been working to address the needs of transgender students.
In March 2013, the Department of Justice established a formal LGBT Special Emphasis Program. The formal designation of a LGBT Special Emphasis Program helps to institutionalize program activities that are currently in place to support the recruitment, retention and development of LGBT employees. The designation also complements existing Special Emphasis Programs which are designed to further develop a diverse and talented DOJ workforce.
Topeka Man Pleads Guilty in Armed RobberyRead the Press Release
TOPEKA, KAN. – A Topeka man has pleaded guilty to taking part in an armed robbery at a Little Caesars Pizza restaurant, U.S. Attorney Barry Grissom said today.
David Pierre Wigfall, 28, Topeka, Kan., pleaded guilty to aiding and abetting a robbery in which the robber brandished a firearm. In his plea, Wigfall admitted that on March 1, 2013, he drove a white Cadillac occupied by co-defendants Alonzo Nathan Lax, Johnnie Lee McCall and Jordan Lucas. At McCall’s direction, Lax agreed to rob Little Caesar’s Pizza at 2620 SW 6th Street, Suite B, in Topeka. Wearing a blue hooded sweatshirt, gloves and a black ski mask, Lax entered the restaurant, brandished a firearm and demanded money. A clerk saw him leave the restaurant and get into the passenger side of the Cadillac.
A few minutes later, officers of the Topeka Police Department found the Cadillac parked at a residence in the 1000 block of SW Plass and determined that it was registered to Wigfall. They saw articles that appeared to be from the robbery in the car. They kept watch on the car until Wigfall got in and drove away. When they stopped Wigfall they recovered a mask and coins from the robbery that Wigfall had discarded before they pulled him over.
Sentencing is set for Sept. 23. He faces a penalty of not less than seven years and not more than life and a fine up to $250,000.Co-defendants include: Johnnie Lee McCall, 28, Topeka, Kan., who pleaded guilty to one count of aiding and abetting commercial robbery and one count of aiding and abetting brandishing a firearm. He is set for sentencing Aug. 19.
Jordan Christopher Lucas, 26, Topeka, who pleaded guilty to one count of commercial robbery and one count of brandishing a firearm in connection with a Feb. 27, 2013 robbery at Baskin Robbins, 4400 S.W. 21st in Topeka. He is set for sentencing Sept. 3.
Alonzo Lax, 26, Topeka, who pleaded guilty to robbery and brandishing a firearm. He is set for sentencing Aug. 13.Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
St. Francis Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Koty Arcoren, age 21, of St. Francis, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 13, 2013 and pled guilty to Failure to Register as a Sex Offender.
The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
On February 28, 2011, Arcoren was convicted of Abusive Sexual Contact. The Court sentenced Arcoren to 31 months in custody, seven years of supervised release, and was ordered to register as a sex offender.
Arcoren began his term of supervised release and absconded from his release on April 12, 2013. During the time he absconded from supervised release until he was apprehended in Todd County on April 29, 2013, he failed to complete his bi-annual sex offender registration requirement.
The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for September 9, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Spencer Iowa Man Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced June 13, 2013, to ten years in federal prison.
Ricardo Ballesteros, 29, from Spencer, Iowa, received the prison term after a September 13, 2012, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Ballesteros admitted his involvement in a conspiracy that distributed more than 10 pounds of mixed methamphetamine from 2010 through August 2011. On two occasions in June 2011, Ballesteros aided and abetted the distribution of more than 13 grams of actual (pure) methamphetamine to an individual cooperating with law enforcement.
Ballesteros was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Ballesteros was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ballesteros is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigations, Spencer, Iowa, Police Department, and Clay County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4048.
Seven Southland Residents Face Federal Bank Fraud Charges in Identity Theft Scheme Involving More Than $1 Million in LossesRead the Press Release
SANTA ANA, California – Seven Los Angeles-area residents have been charged with conspiracy to commit bank fraud for allegedly participating in an identity theft scheme that targeted hundreds of JP Morgan Chase & Co. account holders across the nation and caused more than $1 million in losses.
Six of the defendants were taken into custody earlier this week by special agents with the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the United States Secret Service. The seventh defendant is a fugitive who is currently being sought by authorities.
According to a criminal complaint filed in federal court on June 13, the defendants obtained confidential information belonging to Chase account holders, including birthdates and Social Security numbers. Armed with the stolen information, members of the organization posed as bank clients and withdrew money from the accounts of Chase customers, many of whom were elderly victims.
The accused ringleader – Hardy Jones, 64, of South Los Angeles (90043) – was arrested Wednesday. During his initial court appearance Wednesday afternoon, Jones was ordered held without bond and an arraignment was scheduled for him and the other defendants on July 8.
The criminal complaint alleges that, after obtaining confidential information belonging to Chase clients, Jones directed “runners” to go to Chase branches to obtain money from victims’ accounts. The runners received a cut as payment, typically one-fourth to one-third of the amount withdrawn. In addition to banks in the Los Angeles area, the criminal complaint describes unauthorized withdrawals at Chase branches in Illinois, Texas and Wisconsin.
When federal investigators executed a search warrant at Jones’ residence in March, they recovered numerous counterfeit driver’s licenses, Social Security cards and credit cards bearing the names of Chase account holders. Investigators also recovered detailed ledgers containing the names of Chase clients, their bank account numbers and other identifying information.
Also charged in the criminal complaint is Llewellyn Dickson, 48, of South Los Angeles (90044). Dickson, who also was taken into custody Wednesday, is suspected of helping oversee the fraud scheme and transporting runners to the banks to make the unauthorized withdrawals.
The remaining defendants named in the complaint allegedly served as runners who impersonated bank clients. They are: Raymond Goodie, 56, of Long Beach; who was arrested Wednesday;
Takisha Johnson, 37, of South Los Angeles (90061); who surrendered on Thursday;
Andrea Hadley, 44, of South Los Angeles (90044); who surrendered on Thursday;
Patricia Green, 59, of the Watts district of Los Angeles; who surrendered on Thursday; and
Brigette Boylan, 50, of Inglewood, who is fugitive being sought by authorities.
All seven defendants are charged with conspiracy to commit bank fraud, which carries a statutory maximum penalty of 30 years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
In addition to the FBI, HSI and the Secret Service, the United States Postal Inspection Service has provided substantial assistance with the case.
Anyone with information about this case – or who has information concerning the whereabouts of Boylan – is encouraged to contact the FBI at (310) 477-6565 or HSI at 1-866-DHS-2ICE (or visit http://www.ice.gov/exec/forms/hsi-tips/tips.asp).
Release No. 13-081