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14 June 2013
Antonio Mathias Peterson Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on June 13, 2013, before Senior U.S. District Judge Charles C. Lovell, ANTONIO MATHIAS PETERSON, a 30-year-old resident of East Helena, was sentenced to a term of:
Prison: 15 months
Special Assessment: $100
Restitution: $63,410
Supervised Release: 3 years
PETERSON was sentenced in connection with his guilty plea to social security fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan R. Whittaker, the government stated it would have proved at trial the following:
Beginning on April 8, 2008, and continuing into December 2011, PETERSON ed and failed to disclose that he had been convicted of a felony offense and that his son was not in his care and custody.
On April 8, 2008, PETERSON applied for surviving spouse with child in care benefits. He also applied for auxiliary survivor benefits on behalf of his minor son, AP, and to be his representative payee. The claims were based on the death of his spouse Kelli Renee Peterson. PETERSON made false statements regarding his and AP's living arrangements.
On April 13, 2008, the SSA sent PETERSON a "Notice of Award" letter designating PETERSON as the representative payee for AP's benefits and awarding his parent in care benefits. Accompanying the letter were two SSA pamphlets entitled "What you need to know when you get retirement or survivors benefits" and "A Guide for Representative Payees." The letter and pamphlets clearly explained PETERSON's legal reporting responsibilities regarding events affecting eligibility to payments.
PETERSON began receiving auxiliary survivor benefits for AP and for himself as a surviving spouse with a child in care, paid retroactively from March 2008 through December 2011.
On September 25, 2009, October 28, 2009, and September 22, 2010, PETERSON completed and signed various Social Security forms stating that AP resided with him and he used all the SSA benefit money for AP. But AP actually resided with his grandparents during the specified periods.
Agents interviewed the grandmother who stated that she had custody of AP since March 2008. She paid AP's living and healthcare expenses. AP was enrolled in school with the grandparents as the primary points of contact. The grandparents never received any financial support from PETERSON for AP. The grandmother was unaware that PETERSON was receiving Social Security benefits on behalf of AP.
On March 12, 2009, the grandparents were appointed as legal guardians of AP by the First Judicial District Court, Lewis & Clark County.
In December 2010, PETERSON was arrested for felony DUI and was incarcerated from 12/22/10 to 6/20/2011. PETERSON did not report this event to the SSA.
Agents interviewed PETERSON at his residence and he acknowledged his Social Security benefits application and admitted that he understood his legal reporting requirements to the SSA for events affecting eligibility to benefits. These included the custody and living arrangements of AP and his prior incarceration. He admitted that he knew he was required to report these events because they might affect his eligibility for continued SSA payments. PETERSON also estimated that the grandparents had custody of AP at least 70% of the time and he would take AP sometimes on weekends.
In approximately August 2008, PETERSON purchased a house in East Helena, and used AP's benefits to pay the mortgage payments.
AP's change in living arrangements, change in address, and PETERSON's incarceration were events required to be reported to the SSA because these events would affect his eligibility for benefits. PETERSON's failure to report resulted in an overpayment of Social Security benefits to which PETERSON would not have otherwise been entitled.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PETERSON will likely serve all of the time imposed by the court. In the federal system, PETERSON 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 Social Security Administration - Office of Inspector General.
Anchorage Man sentenced to 18 months in prison for drug conpiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy.
Rock E. Phelps II, 26, a/k/a, “Skitzo Scoe,” from Anchorage, Alaska, was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline. Phelps received a sentence of 18 months in prison and 3 years of supervised release. Phelps had previously pled guilty to an indictment charging him and his co- conspirators with one count of drug conspiracy.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Phelps was a member of a drug trafficking organization in Anchorage and Fairbanks that between 2009 and February 2012, sold powder cocaine, marijuana, and oxycodone pills in Anchorage and Fairbanks. Phelps sold cocaine in Anchorage. On four occasions in February 2011, Phelps sold cocaine to a confidential informant; he possessed 70 grams of cocaine in his residence that he intended to distribute, and possessed a firearm. Phelps also facilitated the sale of cocaine between another individual and his co-conspirator DeMarr Moultrie.
Phelps and other members of the conspiracy attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically that they were “artists,” employees, or promoters of concerts. Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics. Phelps had no record of serious or consistent employment since dropping out of high school in 2005, and only received minor, nominal payments for work as a rap recording and performance artist. The main source of his income since dropping out of high school was from the distribution of illegal narcotics in Anchorage.
Prior to imposing a sentence, Judge Beistline informed the defendant he had to take responsibility for his own actions and he needed to find some better individuals to associate with in the future.
Phelps was indicted along with 13 other members of the conspiracy located in Anchorage and Fairbanks. Christopher Anderson was previously sentenced to 14 months prison on November 2, 2012; DeMarr Moultrie was sentenced to 40 months prison on May 1, 2013; Jeraelyn Hill was sentenced to 66 months prison on May 28, 2013; and Jerry Wormley was sentenced to 36 months prison on May 31, 2013.
Donnell Johnson, Joshua Mustovich, Mihla Hall, Antonio Fleming, Dalon Johnson, Tevoris Carter, Emma Shine, and Brent Gunnels have pled guilty for their roles in connection with the conspiracy and await sentencing. Terrance Fleming has a pending trial scheduled for August 2013.
Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Phelps.
Abilene Man Sentenced to 10 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
ABILENE, Texas — Roy Paul Granger, 42, was sentenced yesterday by U.S. District Judge Jorge A. Solis to 10 years in federal prison, following his guilty plea in January 2013 to one count of receipt of child pornography. Granger has been in custody since January 25, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Granger owned a computer, which he kept at his residence in Abilene, Texas, that was connected to the Internet. In April 2012, while searching online, using peer-to-peer software, for sexually explicit images of minors, Granger downloaded an image of child pornography onto his personal computer.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department and the Lubbock Police Department’s Internet Crimes Against Children Task Force investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
13 June 2013
Yakima Drug Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ruben Ornelas, age 33, of Yakima, Washington, was sentenced today after being convicted of distribution of methamphetamine. Chief United States District Judge Rosanna Malouf Peterson sentenced Ornelas to a ten-year term of imprisonment to be followed by a five-year term of court supervision following release from Federal prison.
In October 2012, Ornelas was charged by Indictment with distributing methamphetamine on four separate occasions in Yakima, Washington during the summer of 2012. Ornelas later pleaded guilty to one count of distributing over 50 grams of actual methamphetamine.
Michael C. Ormsby said: "I commend the DEA for its tenacious investigative efforts in this case, as well as its continuing commitment to rid the Eastern District of Washington of methamphetamine. The ten year jail sentence meted out today is plainly appropriate for a drug dealer trafficking in the significant quantity of methamphetamine involved in this case."
The investigation of this case was conducted by the Drug Enforcement Administration. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
12-CR-2077-RMP
Wyoming Couple Indicted for Tax EvasionRead the Press Release
In an indictment unsealed on June 12, 2013, Robert and Judy Sathre, of Sheridan, Wyo. were charged by a federal grand jury in Cheyenne, Wyo., for conspiring to defraud the IRS and tax evasion relating to taxes owed by Robert Sathre for tax years 1995 and 1996. Judy Sathre was also charged with filing a false tax return for tax year 2007.
According to the indictment, Robert Sathre sold a Minnesota business and received installment payments in 1995 and 1996 for more than three million dollars. Robert Sathre concealed his income by filing a 1995 tax return in which he reported only $64,928 in total income. Robert Sathre then purchased land and set up another business, a gas station/convenience store in Sheridan, Wyo. known as the Rock Stop.
According to the indictment, the Sathres concealed assets by opening a foreign bank account in the Caribbean island of Nevis and by using purported trusts. In a ten-month period spanning 2005-2006, Mr. Sathre sent over $500,000 to the account in Nevis to keep the funds out of reach from the IRS. When Robert Sathre sold the Rock Stop in 2007, he had over $1,250,000 from the sale proceeds wired to the trust account of a Wyoming law firm. Later the Sathres directed the law firm to wire $900,000 from the trust account to their account at the Bank of Nevis. They also provided a false declaration and false promissory note to the Bank of Nevis to conceal the source of this transfer. Robert Sathre obtained a debit card linked to the foreign account to access funds locally. He also provided the Bank of Sheridan with an IRS form on which he falsely claimed that he was neither a citizen nor a resident of the United States.The indictment also alleges that the Sathres tried to conceal their ownership of real estate. They used a purported trust to encumber their residence at Troon Place in Sheridan and to conceal their ownership of property in Hennepin County in Minnesota. To conceal ownership of the Rock Stop, they similarly used a second purported trust, at one point resigning as trustees and appointing their teenage daughter as the trustee.
The indictment also charges Judy Sathre with one count of filing a false tax return for 2007. The indictment alleges that the return was false both for reporting only $42 in interest income and for failing to disclose that she had a financial interest and signatory authority over the bank account at the Bank of Nevis.
A trial date has not been scheduled. An indictment is merely an accusation, and every defendant is presumed innocent unless and until proven guilty.
The conspiracy and tax evasion charges each carry a maximum potential penalty of five years in prison and a fine of $250,000. The false return charge carries a maximum potential penalty of three years in prison and a $250,000 fine.This case is being prosecuted by Trial Attorneys Ellen Quattrucci and Ignacio Perez de la Cruz of the Justice Department’s Tax Division and was investigated by IRS – Criminal Investigation.
Virginia Man Pleads Guilty to Child Pornography ChargesRead the Press Release
WASHINGTON – Jeffrey Klenk, 24, of Alexandria, Va., has pled guilty to federal charges of distribution and possession of child pornography, U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) announced today.
Klenk entered the guilty plea on June 12, 2013, in the U.S. District Court for the District of Columbia. The Honorable Richard J. Leon is to sentence him on Sept. 12, 2013. Klenk faces a maximum sentence of 20 years in prison for distribution of child pornography and up to 10 years in prison on the possession charge, as well as financial penalties. He also will be required to register as a sex offender for a minimum of 25 years.
According to the government's evidence, in September and October of 2012, Klenk contacted a man he believed to be the father of an adolescent girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over a month-long period, Klenk engaged in online e-mail and instant message conversations with the undercover officer.
During this period of time, Klenk used the computer at his home to send the undercover officer a total of 45 unique images of child pornography, as well as several pictures of child erotica and clothed and unclothed children. On Oct. 18, 2012, Klenk’s residence was searched pursuant to a warrant, and various items were seized, including videos of child pornography. Klenk was arrested that day. All told, officers recovered approximately 13 videos and over 325 images of child pornography from the defendant’s computers and computer equipment.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force who investigated the case. They also commended the efforts of Assistant U.S. Attorney Cassidy Kesler Pinegar, who is prosecuting the case, and Assistant U.S. Attorney Catherine K. Connelly, who is assisting with forfeiture issues.
13-207Utah Man Charged with Filing False Claims for Tax RefundsRead the Press Release
A federal grand jury in Salt Lake City yesterday returned an indictment charging Dick Reid Jenkins, a resident of Heber City, Utah with eighteen counts of presenting false claims to the United States.
According to the indictment, in September 2008, Dick Jenkins filed a false 2007 income tax return for himself which claimed an income tax refund of $402,920. Then, in October 2008, Jenkins filed a false amended 2004 income tax return, which claimed an income tax refund of $434,261. Both false claims were based on the use of false Form 1099-OID, Original Issue Discount. In addition to his own false returns, from September 2008 through February 2009, Jenkins caused sixteen other false federal income tax returns to be filed on behalf of other individuals. These other false tax returns also used false Form 1099-OID and claimed federal income tax refunds totaling $8,407,623. The indictment further alleges that Dick Jenkins was licensed by the state of Utah as a Certified Public Accountant at all times relevant to these charges.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted, Jenkins faces a maximum of 90 years in prison.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Stuart Wexler and Michael Romano.
Utah Man Charged with Filing False Claims for Tax RefundsRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned an indictment Wednesday afternoon charging Dick Reid Jenkins, a resident of Heber City, Utah with 18 counts of presenting false claims to the United States.
According to the indictment, in September 2008, Jenkins filed a false 2007 income tax return for himself which claimed an income tax refund of $402,920. Then, in October 2008, Jenkins filed a false amended 2004 income tax return, which claimed an income tax refund of $434,261. Both false claims were based on the use of false Form 1099-OID, Original Issue Discount. In addition to his own false returns, from September 2008 through February 2009, Jenkins caused sixteen other false federal income tax returns to be filed on behalf of other individuals. These other false tax returns also used false Form 1099-OID and claimed federal income tax refunds totaling $8,407,623. The indictment further alleges that Jenkins was licensed by the state of Utah as a Certified Public Accountant at all times relevant to these charges.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by U.S. Department of Justice Tax Division Trial Attorneys Stuart Wexler and Michael Romano.
United States and Arkansas File Joint Complaint Against ExxonMobil for Pegasus Pipeline Oil Spill in Mayflower, ArkansasRead the Press Release
Today the United States and the state of Arkansas filed a joint enforcement action against ExxonMobil Pipeline Company and Mobil Pipe Line Company (ExxonMobil) in federal district court in Little Rock, Ark. The complaint addresses ExxonMobil’s unlawful discharge of heavy crude oil from a 20-inch-diameter interstate pipeline – the Pegasus Pipeline – that ruptured in Mayflower, Ark., on March 29, 2013.
As alleged in the complaint, a segment of the Pegasus Pipeline ruptured in a residential neighborhood in the town of Mayflower. The pipe was buried approximately two feet below the ground at that location. The oil spilled directly into the neighborhood and then into nearby waterways, including a creek, wetlands, and Lake Conway. Residents were forced to evacuate their homes due to the hazardous conditions in the neighborhood resulting from the spill. The oil has contaminated land and waterways and impacted human health and welfare, wildlife, and habitat. Cleanup efforts are still ongoing, and many residents still have not been able to return home.The Pegasus Pipeline runs approximately 850 miles from Patoka, Ill., to Nederland, Texas. The pipeline is used to transport Canadian heavy crude oil. The pipeline originally was constructed in the 1940s.
The complaint alleges six causes of action against the defendants. The United States, on behalf of the U.S. Environmental Protection Agency (EPA), seeks civil penalties and injunctive relief under the federal Clean Water Act for the oil spill. The state of Arkansas, on behalf of the Arkansas Department of Environmental Quality (ADEQ) by the authority of the Arkansas Attorney General, seeks civil penalties for violations of the Arkansas Hazardous Waste Management Act and the Arkansas Water and Air Pollution Control Act. The state also seeks a declaratory judgment on ExxonMobil’s liability for payment of removal costs and damages related to the spill pursuant to the federal Oil Pollution Act.
Related Materials:
Exxon Complaint
Union County, N.J., Man Charged with Defrauding Sellers on Ebay Online Auction SiteRead the Press Release
NEWARK, N.J. – A Union County man surrendered to law enforcement officers today for allegedly defrauding hundreds of sellers of foreign and antique banknotes on the eBay online auction site, U.S. Attorney Paul J. Fishman said.
David D’Aries, 49, of Summit, N.J., is charged by complaint with one count of mail fraud. D’Aries is expected to make his initial appearance today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the criminal Complaint:
From June 2007 through October 2012, D’Aries devised a scheme to defraud individuals from around the world by posing as a buyer interested in purchasing rare and antique foreign banknotes for bid on eBay. D’Aries, as the winning bidder in approximately 400 eBay transactions, made payment for the auctioned item via PayPal or credit card, received the item from the eBay seller via the United States mail or other commercial interstate carrier, and then falsely claimed to various credit card companies that the item was never received from the seller or was an unauthorized charge. D’Aries posed as three different individuals, including his deceased father, in his fraudulent eBay transactions.
Losses to eBay/PayPal and the various eBay sellers as a result of D’Aries’ fraudulent transactions total approximately $122,000. A search of D’Aries’ home by law enforcement on June 30, 2011, revealed several thousand foreign banknotes and 165 pieces of mail from around the world that were addressed to D’Aries and the other identities he allegedly used.
D’Aries faces a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates in Newark with the investigation leading to today’s arrest. He also thanked the Summit Police Department and the Union County Prosecutor’s Office for their roles in the case.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.13-248
Defense counsel: Alan Zegas Esq., Chatham, N.J.D'Aries, David Complaint
U.S. Attorney Machen to Host Youth Summit on June 27 at Friendship Collegiate Academy in Northeast Washington- Third Annual Event Aimed at Breaking the Silence on Youth Violence - Free Program Includes Musical Performances, Workshops, Information-Read the Press Release
WASHINGTON - U.S. Attorney Ronald C. Machen Jr., the U.S. Attorney’s Office for the District of Columbia, the Project Safe Neighborhoods Task Force, the East River Family Strengthening Collaborative, and law enforcement and community partners are sponsoring a Youth Summit on Thursday, June 27, 2013 at Friendship Collegiate Academy.
Youths from the District of Columbia are invited to the free program, which runs from 11 a.m. to 4 p.m. Friendship Collegiate Academy, at 4095 Minnesota Avenue NE, is conveniently located directly across the street from the Minnesota Avenue Metro station in order to provide accessibility for students to attend.
This is the office’s third annual Youth Summit, which assembles young people from under-served neighborhoods in the District of Columbia to discuss the most pressing public safety challenges facing their communities. Previous summits have attracted more than 300 youth participants.
The goal of the Youth Summit is to reach out to area youth on current public safety topics in an informative and inspiring way. Presentations will address a variety of issues facing teens in the community. Most importantly, the Youth Summit this year will examine precursors to violence in an effort to deter youth from negative behaviors.
Presentations will focus on anti-bullying, sexual assault violence prevention, gang awareness, and illegal drug deterrence. The Youth Summit will be comprised of dynamic speakers, entertainment, and break-out sessions for youth based on both age and gender.
The older youth will have an opportunity to learn from speakers who will emphasize the dangerous consequences of violence for both perpetrator and victims. The discussion will focus heavily on educating our youth regarding sexual assault, healthy relationships and where to seek help if they are a witness to or a victim of violence.
The younger students will gain valuable knowledge on distinguishing appropriate conduct and seeking help from victimization.
All of the youth will be provided invaluable resources at the Youth Summit, including anti-bullying guidance and information about the dangers of K-2 Spice. Lastly, in an effort to prove to our youth that fun does not have to include negative behavior, entertainment will be provided by local performers and a national recording artist.
Several collaborative partners, including the Columbia Heights Shaw/Family Collaborative, D.C. Department of Health, D.C. Rape Crisis Center, Street Wize Foundation, and the National Center for Missing and Exploited Children, will be coming together to present the day’s programs. The effort is supported by Project Safe Neighborhoods, a Department of Justice initiative aimed at reducing gun and gang crimes. People with questions or interest in bringing a youth group to the Youth Summit, may contact Executive Assistant U.S. Attorney for External Affairs, Wendy Pohlhaus (202)252-6930 or [email protected].
13-206Two Men Charged with Marijuana Trafficking OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that a federal grand jury sitting in Hartford returned an indictment today charging KEVIN J. DUNBAR, 44, of Manchester, and OVES ST. ORBIN WRIGHT, 56, of Massapequa, N.Y., with marijuana trafficking offenses.
According to allegations contained in court documents, on May 19, 2013, U.S. Customs and Border Patrol (CPB) agents in western Texas conducted a search of a tractor trailer and discovered approximately 315 pounds of marijuana (approximately 143 kilograms) secreted in a shipping crate. CBP agents contacted Drug Enforcement Administration (DEA) agents in El Paso who determined that the crate was destined for a shipping facility in Enfield, Conn. On May 29, 2013, Connecticut DEA agents established surveillance at the Enfield shipping facility and observed DUNBAR and WRIGHT unpack the crate, load the contents into a van and travel to a storage facility in East Hartford, where they were arrested.
The indictment charges DUNBAR and WRIGHT with one count of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana, and one count of attempting to possess with the intent to distribute 100 kilograms or more of marijuana. Each charge carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
DUNBAR and WRIGHT have been detained since their arrests on May 29.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration, with the assistance of U.S. Customs and Border Patrol. The case is being prosecuted by Assistant United States Attorney Geoffrey M. Stone and Special Assistant United States Attorney Michael Ahearn.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Two Maryland Women Indicted in Fraudulent Tax Refund SchemeRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Sheila Anderson-Cloude, a/k/a Sheila Anderson, age 33, of Nottingham, Maryland, and Tonia Patrice Lawson, age 42, of Baltimore, on charges related to a conspiracy to obtain fraudulent tax refunds, sometimes using the personal information of other individuals, without their knowledge or permission. The indictment was returned on June 11, 2013.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington Regional Office.
“The IRS continues to work closely with the tax preparation industry to protect the American public,” said Special Agent in Charge Thomas J. Kelly of IRS - Criminal Investigation, Washington, D.C. Field Office. “Return preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating cases just like these. Taxpayers should be very selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information.”
The 27-count indictment alleges that from February 8, 2010 through February 20, 2012, Anderson-Cloude and Lawson conspired to enrich themselves by filing and causing others to file false federal income tax returns in order to obtain tax refunds to which they were not entitled.
The indictment charges that Anderson-Cloude obtained the identifying information of individuals, including their names, dates of birth and social security numbers, in order to file fraudulent tax returns. According to the indictment, Anderson-Cloude then prepared and filed or caused to be filed at least 13 false federal tax returns, all of which fraudulently claimed refunds in amounts between $4,800 and $8,907. As a result of the filing of these false tax returns, the indictment alleges that Anderson-Cloude received seven tax refunds to which she was not entitled, in amounts ranging from $1,000 to $5,372, and Lawson received four fraudulent tax refunds, in amounts ranging from $2,000 to $6,875. According to the indictment, Lawson made payments to some of the taxpayers, using funds obtained from the fraudulently tax refunds. Finally, the indictment alleges that when questioned by a Special Agent with IRS Criminal Investigations, Anderson-Cloude made false statements by claiming that she never kept more than $500 for preparing a return and that she never made up numbers to put on the tax returns she prepared.
The defendants face a maximum sentence of 10 years in prison for conspiring to defraud the government by claiming false tax refunds and for theft of public money. Anderson-Cloude also faces a maximum of five years in prison for each of 12 counts of making a false claim for a tax refund and for making a false statement. Anderson-Cloude also faces two years in prison, consecutive to any other sentence, for aggravated identity theft. The defendants have an initial appearance scheduled for 3:45 p.m. today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin, who is prosecuting the case.
Two Claremont Men Plead Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 33-year-old man from the southeastern Minnesota community of Claremont pleaded guilty to conspiring to distribute more than 500 grams of methamphetamine. Michael Steven Schoenfelder specifically pleaded guilty to one count of conspiracy to distribute 50 or more grams of methamphetamine. Schoenfelder, who was indicted along with Clancy Shane Amy on May 6, 2013, entered his plea before United States District Court Judge Richard H. Kyle.
On June 12, 2013, Amy, age 38, also from Claremont, pleaded guilty to one count of conspiracy to distribute 50 or more grams of methamphetamine.
In their respective plea agreements, the defendants admitted that from at least August 2012 through March 2013, they conspired to distribute methamphetamine and other controlled substances from Mexico and Texas to areas within southeastern Minnesota. Both also admitted obtaining and selling approximately one pound of methamphetamine. In addition, Amy admitted that between January and March 2013, he sold methamphetamine to law enforcement in several arranged controlled purchases. On April 16, 2013, during the execution of a search warrant at Amy’s residence, authorities seized approximately 112 grams of methamphetamine, numerous plastic baggies, nine-millimeter and .38-caliber ammunition, two digital scales, a nine-millimeter handgun, a .22-caliber, semi-automatic handgun, a 12-gauge shotgun, and a safe that contained $615, marijuana, and methamphetamine.
For their crimes, the defendants face a potential maximum penalty of 40 years in prison. Judge Kyle will determine their sentences at future hearings, yet to be scheduled.
This case is the result of an investigation by the U.S. Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Minnesota South Central Drug Investigation Unit, and the Southeastern Minnesota Gang and Narcotics Task Force. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.Ten Defendants Sentenced for Illegal Hunting Activities and Related OffensesRead the Press Release
The Sentences Are The Result Of A Four-Year, Multi-Agency Operation Targeting Illegal Hunting Of Wildlife In North Carolina And Georgia
BRYSON CITY, N.C. – Ten defendants were sentenced on Monday, June 10, 2013, in U.S. District Court for illegal hunting activities involving black bears and other wildlife and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The sentences are the result of “Operation Something Bruin,” a multi-agency initiative focused on the illegal poaching of bears and other wildlife in North Carolina and Georgia.
U.S. Attorney Tompkins is joined in making today’s announcement by Steve Ruppert, Special Agent in Charge for the Southern Region of the U.S. Forest Service and Col. Dave Caveny, Chief of the Division of Law Enforcement for the North Carolina Wildlife Resources Commission.
In February 2013, state and federal wildlife officials in North Carolina and Georgia announced the results of a four-year undercover investigation focused on illegal activities involving black bears and other wildlife in North Carolina and Georgia. The multi-agency initiative was the largest of its kind in recent years and resulted in more than 80 wildlife violators and over 980 violations. Primary violations documented by Operation Something Bruin stem from illegal bear hunting and poaching in North Carolina and Georgia, but include an array of state and federal wildlife and game law charges. The agencies involved in this investigation include state wildlife agencies, the U.S. Forest Service, the U.S. Fish and Wildlife Service and the National Park Service.
Officers with the North Carolina Wildlife Resources Commission, U.S. Forest Service and the Georgia Department of Natural Resources infiltrated poaching circles to document violations including bear baiting, illegal taking of bears, deer and other wildlife, illegal use of dogs, operation of illegal bear enclosures in North Carolina, and guiding hunts on national forest lands without the required permits. For more information about Operation Something Bruin and its continued success please visit: www.operationsomethingbruin.org.
The following defendants were sentenced on June 10, 2013, before U.S. Magistrate Judge Dennis L. Howell:
• Chad Burchfield, 34, of Robbinsville, N.C., pleaded guilty to one count of hunting feral swine at night. He was sentenced to 30 days in prison. In addition, Judge Howell revoked Burchfield’s right to hunt or fish for a period of two years, and ordered the defendant to pay a $10.00 assessment fee and a $25.00 administrative fee.
• Patrick Burchfield, 24, of Robbinsville, pleaded guilty to one count of hunting feral swine at night. He was sentenced to 30 days in prison and ordered to pay a $10.00 assessment fee and a $25.00 administrative fee. In addition, the defendant’s right to hunt or fish was revoked for a period of two years.
• Jessie Jenkins, 23, of Robbinsville, pleaded guilty to hunting feral swine at night. He was sentenced to 30 days in prison, was ordered to pay a $10.00 assessment fee and a $25.00 administrative fee and is prohibited from hunting or fishing for a period of two years.
• Kenneth Collins, 44, of Robbinsville, pleaded guilty to providing a hunting guide service on National Forest land without a permit. Judge Howell sentenced Collins to 30 days in prison. He was also ordered to pay a $10.00 special assessment fee, a $25.00 administrative fee and restitution of $450.00 to the U.S. Forest Service. Collins’ hunting and fishing rights were also revoked for a period of two years.
• Casey Collins, 26 of Robbinsville, pleaded guilty to two counts of providing a hunting guide service on National Forest land without a permit. He was sentenced to 15 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee. His hunting and fishing rights were revoked for a period of two years.
• Michael Sellers, 20, of Robbinsville, pleaded guilty to one count of proving a hunting service without a permit. He was sentenced to one year of probation and was ordered to surrender his hunting license.
• Ricky Owens, 48, of Robbinsville, pleaded guilty to one count of failure to obtain a special use permit needed to operate a commercial activity on National Forest land. He was sentenced to 15 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
• Robert Watson, 46, of Morganton, N.C., pleaded guilty to one count of aid and abet the illegal taking of a black bear. He was sentenced to 30 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
• Terry Ratliff, 55, of Opelica, Alabama, was ordered to pay a collateral of $1,500 for driving on a closed U.S. Forest Service Road.
• Brian Quacca, 41, of Groesbeck, Texas, pleaded guilty to one count of using the National Forest Service for commercial purposes without the required permit. On May 25, 2013, he was ordered to pay a fine in the amount of $1500.00. In addition, he was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
On June 10, 2013, Brent Fox, entered a plea of guilty to one count of illegal taking of a black bear and is awaiting sentencing. The defendants committed the offenses within the Nantahala National Forest with the exception of Robert Watson who committed his offense within Pisgah National Forest.
In making today’s announcement U.S. Attorney Tompkins stated, “We anticipate that the success of Operation Something Bruin will send a strong message to poachers and would-be violators to think twice before they engage in illegal hunting activities. Together with our federal and state law enforcement partners we will combine forces to combat illegal hunting, protect our wildlife and conserve our natural resources. I commend the efforts of all involved in this investigation and I thank our law enforcement partners for their continued dedication to this important mission.”
“The continued success of Operation Something Bruin is a fine example of state and federal agencies coordinating efforts to protect the resources of our national forests,” said Steve Ruppert, Special Agent in Charge for the Southern Region of the U.S. Forest Service. “The Forest Service appreciates the hard work of its law enforcement officers, the North Carolina Wildlife Resources Commission, the U.S. Fish and Wildlife Service and the U.S. Attorney’s Office in bringing these individuals to justice.”
“These penalties reflect the seriousness of the crimes committed against conservation, our wildlife resources and the hunting heritage,” said Col. Dale Caveny, Chief of the Division of Law Enforcement for the N.C. Wildlife Resources Commission. “Operation Something Bruin documented hundreds of wildlife violations and the successful conclusion of these federal cases will make would-be violators think twice before breaking the law. Our long-term goal is to deter illegal wildlife activities from taking place in the future and serve notice to everyone that wildlife officers are ever vigilant in the service of conservation and public safety.”
The investigation was conducted by the United States Forest Service, the North Carolina Wildlife Resources Commission, the U.S. Fish and Wildlife Service the Georgia Department of Natural Resources and the National Park Service. The prosecution was handled by Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville.
To report illegal hunting activities call the appropriate Law Enforcement contacts: The North Carolina State Wildlife Hotline at 1-800-662-7137, U.S. Fish and Wildlife Service, 1-828-258-2084 the National Forests at 1-828-231-0288 or The Great Smoky Mountains National Park at 1-865-436-1230.
Ten Defendants Sentenced for Illegal Hunting Activities and Related OffensesRead the Press Release
The Sentences Are The Result Of A Four-Year, Multi-Agency Operation Targeting Illegal Hunting Of Wildlife In North Carolina And Georgia
BRYSON CITY, N.C. – Ten defendants were sentenced on Monday, June 10, 2013, in U.S. District Court for illegal hunting activities involving black bears and other wildlife and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The sentences are the result of “Operation Something Bruin,” a multi-agency initiative focused on the illegal poaching of bears and other wildlife in North Carolina and Georgia.
U.S. Attorney Tompkins is joined in making today’s announcement by Steve Ruppert, Special Agent in Charge for the Southern Region of the U.S. Forest Service and Col. Dave Caveny, Chief of the Division of Law Enforcement for the North Carolina Wildlife Resources Commission.
In February 2013, state and federal wildlife officials in North Carolina and Georgia announced the results of a four-year undercover investigation focused on illegal activities involving black bears and other wildlife in North Carolina and Georgia. The multi-agency initiative was the largest of its kind in recent years and resulted in more than 80 wildlife violators and over 980 violations. Primary violations documented by Operation Something Bruin stem from illegal bear hunting and poaching in North Carolina and Georgia, but include an array of state and federal wildlife and game law charges. The agencies involved in this investigation include state wildlife agencies, the U.S. Forest Service, the U.S. Fish and Wildlife Service and the National Park Service.
Officers with the North Carolina Wildlife Resources Commission, U.S. Forest Service and the Georgia Department of Natural Resources infiltrated poaching circles to document violations including bear baiting, illegal taking of bears, deer and other wildlife, illegal use of dogs, operation of illegal bear enclosures in North Carolina, and guiding hunts on national forest lands without the required permits. For more information about Operation Something Bruin and its continued success please visit: www.operationsomethingbruin.org.
The following defendants were sentenced on June 10, 2013, before U.S. Magistrate Judge Dennis L. Howell:
• Chad Burchfield, 34, of Robbinsville, N.C., pleaded guilty to one count of hunting feral swine at night. He was sentenced to 30 days in prison. In addition, Judge Howell revoked Burchfield’s right to hunt or fish for a period of two years, and ordered the defendant to pay a $10.00 assessment fee and a $25.00 administrative fee.
• Patrick Burchfield, 24, of Robbinsville, pleaded guilty to one count of hunting feral swine at night. He was sentenced to 30 days in prison and ordered to pay a $10.00 assessment fee and a $25.00 administrative fee. In addition, the defendant’s right to hunt or fish was revoked for a period of two years.
• Jessie Jenkins, 23, of Robbinsville, pleaded guilty to hunting feral swine at night. He was sentenced to 30 days in prison, was ordered to pay a $10.00 assessment fee and a $25.00 administrative fee and is prohibited from hunting or fishing for a period of two years.
• Kenneth Collins, 44, of Robbinsville, pleaded guilty to providing a hunting guide service on National Forest land without a permit. Judge Howell sentenced Collins to 30 days in prison. He was also ordered to pay a $10.00 special assessment fee, a $25.00 administrative fee and restitution of $450.00 to the U.S. Forest Service. Collins’ hunting and fishing rights were also revoked for a period of two years.
• Casey Collins, 26 of Robbinsville, pleaded guilty to two counts of providing a hunting guide service on National Forest land without a permit. He was sentenced to 15 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee. His hunting and fishing rights were revoked for a period of two years.
• Michael Sellers, 20, of Robbinsville, pleaded guilty to one count of proving a hunting service without a permit. He was sentenced to one year of probation and was ordered to surrender his hunting license.
• Ricky Owens, 48, of Robbinsville, pleaded guilty to one count of failure to obtain a special use permit needed to operate a commercial activity on National Forest land. He was sentenced to 15 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
• Robert Watson, 46, of Morganton, N.C., pleaded guilty to one count of aid and abet the illegal taking of a black bear. He was sentenced to 30 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
• Terry Ratliff, 55, of Opelica, Alabama, was ordered to pay a collateral of $1,500 for driving on a closed U.S. Forest Service Road.
• Brian Quacca, 41, of Groesbeck, Texas, pleaded guilty to one count of using the National Forest Service for commercial purposes without the required permit. On May 25, 2013, he was ordered to pay a fine in the amount of $1500.00. In addition, he was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
On June 10, 2013, Brent Fox, entered a plea of guilty to one count of illegal taking of a black bear and is awaiting sentencing. The defendants committed the offenses within the Nantahala National Forest with the exception of Robert Watson who committed his offense within Pisgah National Forest.
In making today’s announcement U.S. Attorney Tompkins stated, “We anticipate that the success of Operation Something Bruin will send a strong message to poachers and would-be violators to think twice before they engage in illegal hunting activities. Together with our federal and state law enforcement partners we will combine forces to combat illegal hunting, protect our wildlife and conserve our natural resources. I commend the efforts of all involved in this investigation and I thank our law enforcement partners for their continued dedication to this important mission.”
“The continued success of Operation Something Bruin is a fine example of state and federal agencies coordinating efforts to protect the resources of our national forests,” said Steve Ruppert, Special Agent in Charge for the Southern Region of the U.S. Forest Service. “The Forest Service appreciates the hard work of its law enforcement officers, the North Carolina Wildlife Resources Commission, the U.S. Fish and Wildlife Service and the U.S. Attorney’s Office in bringing these individuals to justice.”
“These penalties reflect the seriousness of the crimes committed against conservation, our wildlife resources and the hunting heritage,” said Col. Dale Caveny, Chief of the Division of Law Enforcement for the N.C. Wildlife Resources Commission. “Operation Something Bruin documented hundreds of wildlife violations and the successful conclusion of these federal cases will make would-be violators think twice before breaking the law. Our long-term goal is to deter illegal wildlife activities from taking place in the future and serve notice to everyone that wildlife officers are ever vigilant in the service of conservation and public safety.”
The investigation was conducted by the United States Forest Service, the North Carolina Wildlife Resources Commission, the U.S. Fish and Wildlife Service the Georgia Department of Natural Resources and the National Park Service. The prosecution was handled by Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville.
To report illegal hunting activities call the appropriate Law Enforcement contacts: The North Carolina State Wildlife Hotline at 1-800-662-7137, U.S. Fish and Wildlife Service, 1-828-258-2084 the National Forests at 1-828-231-0288 or The Great Smoky Mountains National Park at 1-865-436-1230.
Tax Preparer Pleads Guilty to Filing False Tax Returns on Behalf of His ClientsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announced that defendant Efrain Felipe, 41, of Hallandale Beach, pled guilty to a two-count Information, charging him with making and subscribing a false tax return on behalf of a client, and aiding and abetting, in violation of Title 26, United States Code, Sections 7206(1) and 7206(1).
Sentencing for defendant Felipe has been scheduled for August 29, 2013 at 8:30 a.m. before U.S. District Judge Robert N. Scola Jr. At sentencing, Felipe faces a possible maximum statutory sentence of up to 3 years in prison on each count.
Felipe operated a tax preparation business in Broward County, and prepared tax returns on behalf of his customers, falsely claiming that some customers were entitled to a First Time Home Buyers Credit (FTHBC) of $7,500 for properties they did not own or for properties that were purchased years earlier. Felipe also falsely claimed the FTHBC on his own personal tax return.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
St. Paul Felon Pleads Guilty to Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 24-year-old felon from St. Paul pleaded guilty to possessing a nine-millimeter, semi-automatic pistol. On June 12, 2013, Virgil Lee Kirkwood specifically pleaded guilty to one count of being a felon in possession of a firearm. Kirkwood, who was indicted on March 19, 2013, entered his plea before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Kirkwood admitted that on December 6, 2012, he possessed the pistol. According to a law enforcement affidavit filed in the case, officers learned that Kirkwood was in possession of a gun and investigated in the area of 700 Central Avenue in St. Paul, Minnesota. When officers approached, they found Kirkwood, who was subsequently detained on an outstanding Anoka County warrant for an unrelated burglary. The pistol was found inside a black sock hidden near where Kirkwood was standing. Authorities later learned that the pistol was stolen from a Fridley-based licensed firearms dealer.
Because he is a felon, Kirkwood, also known as Virgil Lee Crenshaw, is prohibited under federal law from possessing firearms or ammunition at any time. His prior Hennepin County convictions include second-degree burglary (2010), third-degree attempted burglary (2012), and other offenses. Because certain of these convictions constitute crimes of violence, Kirkwood may be subject to sentencing under the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition. The potential maximum penalty is life in prison. Judge Magnuson will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the St. Paul Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.St. Helena Parish Man, Christien Scott, Sentenced After Pleading Guilty to Drug ChargesRead the Press Release
CHRISTIEN SCOTT, 29, a resident of St. Helena Parish, was sentenced today by U. S. District Court Judge Jane Triche Milazzo to seventy months imprisonment after pleading guilty to cocaine and marijuana charges, announced U. S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Milazzo ordered that SCOTT be placed on four years of supervised release following his term of imprisonment and risks an additional term of imprisonment should be violated any terms of supervised release.
SCOTT pled guilty on March 12, 2013 to one count of conspiracy to distribute and possess with the intent to distribute crack cocaine and marijuana and one count each of possession with intent to distribute crack cocaine and possession with intent to distribute marijuana.
The investigation was conducted by Special Agents of the Drug Enforcement Administration. The case was prosecuted by Assistant U. S. Attorney Andre’ Jones.
Springfield Man Sentenced to 17 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been sentenced in federal court for receiving and distributing child pornography over the Internet.
Benjamin Orona, 31, of Springfield, was sentenced by U.S. District Judge Brian C. Wimes on Wednesday, June 12, 2013 to 17 years and six months in federal prison without parole.
On Nov. 6, 2012, Orona pleaded guilty to receiving and distributing child pornography over the Internet.
On June 27, 2011, the Missouri State Highway Patrol ran a routine criminal history check on Orona in connection with his employment at Prime Trucking in Springfield and his commercial driver’s license. This check revealed a felony arrest warrant out of Georgia for sexual exploitation of a minor. Orona was arrested on the outstanding warrant. Officers searched Orona’s hotel room and seized the computers and other items. A forensic review of the items was conducted and investigators discovered images and videos of child pornography. Orona used a peer-to-peer file-sharing program to download child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Slidell Woman, Nicole Nicholas, Charged with ForgeryRead the Press Release
NICOLE NICHOLAS, age 39, a resident of Slidell, Louisiana, was charged in a bill of information today with forgery, announced U. S. Attorney Dana Boente. According to court documents, the defendant was employed by Company "A" from 1999 until June 22, 2010. NICHOLAS was in charge of the accounting, banking and finances, including the accounts payable, of the business conducted by Company "A." On May 22, 2009, the defendant intentionally possessed a $3,398.09 counterfeit check of Company “A” and used it to pay for private school tuition.
If convicted, NICHOLAS faces a maximum term of imprisonment of ten years, as well as a fine of $250,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Special Agents of the Federal Bureau of Investigation and the prosecution is being handled by Assistant United States Attorney Jon Maestri.
(Download Bill of Information )
Six Defendants Indicted in Conspiracy Involving Mortgage Fraud Losses of over $1 MillionRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted six defendants in a mortgage fraud conspiracy in which lenders provided over $3.5 million for fraudulently obtained loans:
Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 44, of Severn, Maryland;
Flavia Makundi, age 41, of Severn, Maryland;
Carmen Johnson, age 46, of Gambrills, Maryland;
Mokorya Cosmas Wambura, age 40, of Mount Ranier, Maryland;
Cane Mwihava, age 42, of Bowie, Maryland; and
Annika Boas, age 36, of Mount Ranier, Maryland.
The indictment was returned on June 10, 2013, and the last defendant, Wambura, was arrested today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General David A. Montoya, U.S. Department of Housing and Urban Development; Inspector General Steve A. Linick of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; Brian Crane, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) .
According to the 21 count indictment, Tibakweitira was a real estate agent for Century 21 Advantage Realty and its successor, Elite Real Estate Group. Tibakweitira recruited his wife Makundi, and others, including Wambura, Mwihava and Boas, to act as straw purchasers of homes. Johnson owned CJ Lending and Able Estate & Company which provided credit repair services.
The indictment alleges that from March 2007 to November 2008, the defendants sought mortgages for properties at values in excess of the properties’ actual market values. Tibakweitira allegedly procured inflated appraisals and created false addendums to the sales contracts requiring large amounts of loan proceeds to be disbursed for renovations or repairs. The defendants allegedly used stolen or false identities, false documents – including W-2 forms, earnings statements, and bank statements – and false credit information to induce lenders to provide residential mortgage loans to the straw buyers. Large amounts of the proceeds of the fraudulently obtained loans were allegedly disbursed from escrow accounts to Destiny Property Management, LLC and Destiny Property Management Company, which were shell companies owned by Tibakweitira, for repairs and renovations that were never made. These funds were in turn paid to the defendants. The defendants did not make or stopped making the mortgage payments and allowed the properties, including 10 properties located in Severna Park, Baltimore, Hyattsville and Silver Spring, to go into foreclosure.
The indictment alleges that as a result of the conspiracy, lenders provided over $3.5 million for fraudulently obtained loans, which resulted in losses of over $1 million to the lenders, the Federal Housing Administration which insured some of the loans, and the Federal National Mortgage Corporation (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), who purchased some of the loans in the secondary mortgage market.
All of the defendants face a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and wire fraud; and a mandatory minimum of two years for aggravated identity theft consecutive to any other sentence. The defendants have had their initial appearances in federal court in Greenbelt. Tibakweitira, Makundi and Boas are currently detained and Johnson and Mwihava were released. A hearing is scheduled later today for Wambura regarding his detention.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage‑Fraud/index.html.
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 praised HUD-OIG, FHFA-OIG, Treasury OIG,
U.S. Secret Service, IRS-Criminal Investigation and Baltimore HSI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who are prosecuting the case.
Sentences for June 10 – 12, 2013Read the Press Release
Joseph Richard Adams, 55, of Los Angeles, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 12, 2013, for conspiracy to commit mail fraud and wire fraud. Adams was arrested in Los Angeles, California. He received 24 months imprisonment, to be followed by two years of supervised release. In addition, The Court determined restitution was mandatory; however, final determination was delayed for 90 days. The preliminary figure for restitution is $4,475.034.63, inclusive of penalties and interest, if applicable. Restitution will be imposed jointly and severally on all co-defendants in 12CR-00058S. The Court ordered forfeiture in the amount of $584,051.99. This case was investigated by the Wyoming Secretary of State’s Office, the U.S. Postal Service, U.S. Secret Service and the Federal Bureau of Investigation.
Efrain Tzompa-Herdandez, 33, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 10, 2013, for illegal re-entry of a previously deported alien into the United States. Tzompa-Hernandez was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Donnie Lue Neice, 42, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 10, 2013, for being a felon in possession of a firearm and ammunition. Neice was obtained via a Writ from state custody. He received 38 months of imprisonment, to run concurrent with his state conviction for grand larceny. In addition, Neice will serve three years of supervised release after serving his sentence and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Science Applications International Corporation Pays<br /> $11.75 Million to Settle False Claims AllegationsRead the Press Release
The Justice Department and U.S. Attorney Kenneth J. Gonzales of the District of New Mexico announced today that Science Applications International Corporation (SAIC) has paid $11.75 million to settle allegations filed in the U.S. District Court for the District of New Mexico that it violated the False Claims Act by charging inflated prices under grants to train first responder personnel to prevent and respond to terrorism attacks. SAIC provides scientific, engineering, and technical services to commercial and government customers and is headquartered in Northern Virginia.
Between 2002 and 2012, the New Mexico Institute of Mining and Technology (New Mexico Tech) received six federal grants from the Department of Justice, the Department of Homeland Security, and the Federal Emergency Management Agency to train first responder personnel to prevent and respond to terrorism events involving explosive devices. New Mexico Tech awarded subgrants to SAIC to provide course management, development, and instruction. The United States alleged that SAIC’s cost proposals falsely represented that SAIC would use far more expensive personnel to carry out its efforts than it intended to use and actually did use, resulting in inflated charges to the United States.
“To ensure that federal tax dollars are properly spent, federal grant recipients and contractors must provide cost proposals and estimates that reflect their honest judgment about project costs,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. “We will continue to ensure that funds designated for vital programs such as this one are properly used for their intended purpose.”
The False Claims Act is sometimes referred to as “Lincoln’s Law” because it was enacted at the urging of President Lincoln to combat widespread fraud which was being perpetrated on the Union Army by Civil War defense contractors. While originally enacted to combat defense contractor fraud, the False Claims Act has long been successfully employed to combat false claims against the United States in many other contexts, including healthcare fraud. The Act prohibits the submission of false claims for government money or property and allows the United States to recover up to three times the actual damages and penalties for a violation.
The lawsuit against SAIC was originally filed under the whistleblower provisions of the False Claims Act by Richard Priem, SAIC’s former project manager for the first responder training program. Under the Act’s whistleblower provisions, a private party may file suit on behalf of the United States and share in any recovery, and the United States may elect to intervene and take over the case, as it did here. Mr. Priem’s share has not yet been determined.
“The False Claims Act is a critical tool for weeding out fraud and protecting taxpayers,” said U.S. Attorney Kenneth J. Gonzales of the District of New Mexico. “The Act provides an incentive for individuals with knowledge of fraud against the government to disclose that information. When whistleblowers bring fraud allegations to the government’s attention and assist us in this public-private partnership to fight fraud, the public benefits and potential fraudsters are deterred.”
The case was jointly handled by Trial Attorneys Don Williamson and Daniel Hugo Fruchter of the Commercial Litigation Branch of the Justice Department’s Civil Division and Assistant U.S. Attorney Howard R. Thomas and Auditor Julie A. Ford of the U.S. Attorney’s Office for the District of New Mexico. The claims resolved by this settlement are allegations only and there has been no determination of liability. The case is United States ex rel. Priem v. SAIC, No-12-cv-148 (D.N.M.).
Science Applications International Corporation Pays $11.75 Million to Settle False Claims AllegationsRead the Press Release
WASHINGTON – The Justice Department and U.S. Attorney Kenneth J. Gonzales of the District of New Mexico announced today that Science Applications International Corporation (SAIC) has paid $11.75 million to settle allegations filed in the U.S. District Court for the District of New Mexico that it violated the False Claims Act by charging inflated prices under grants to train first responder personnel to prevent and respond to terrorism attacks. SAIC provides scientific, engineering, and technical services to commercial and government customers and is headquartered in Northern Virginia.
Between 2002 and 2012, the New Mexico Institute of Mining and Technology (New Mexico Tech) received six federal grants from the Department of Justice, the Department of Homeland Security, and the Federal Emergency Management Agency to train first responder personnel to prevent and respond to terrorism events involving explosive devices. New Mexico Tech awarded subgrants to SAIC to provide course management, development, and instruction. The United States alleged that SAIC’s cost proposals falsely represented that SAIC would use far more expensive personnel to carry out its efforts than it intended to use and actually did use, resulting in inflated charges to the United States.
“To ensure that federal tax dollars are properly spent, federal grant recipients and contractors must provide cost proposals and estimates that reflect their honest judgment about project costs,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. “We will continue to ensure that funds designated for vital programs such as this one are properly used for their intended purpose.”The False Claims Act is sometimes referred to as “Lincoln’s Law” because it was enacted at the urging of President Lincoln to combat widespread fraud which was being perpetrated on the Union Army by Civil War defense contractors. While originally enacted to combat defense contractor fraud, the False Claims Act has long been successfully employed to combat false claims against the United States in many other contexts, including healthcare fraud. The Act prohibits the submission of false claims for government money or property and allows the United States to recover up to three times the actual damages and penalties for a violation.
The lawsuit against SAIC was originally filed under the whistleblower provisions of the False Claims Act by Richard Priem, SAIC’s former project manager for the first responder training program. Under the Act’s whistleblower provisions, a private party may file suit on behalf of the United States and share in any recovery, and the United States may elect to intervene and take over the case, as it did here. Mr. Priem’s share has not yet been determined.
“The False Claims Act is a critical tool for weeding out fraud and protecting taxpayers,” said U.S. Attorney Kenneth J. Gonzales of the District of New Mexico. “The Act provides an incentive for individuals with knowledge of fraud against the government to disclose that information. When whistleblowers bring fraud allegations to the government’s attention and assist us in this public-private partnership to fight fraud, the public benefits and potential fraudsters are deterred.”
The case was jointly handled by Trial Attorneys Don Williamson and Daniel Hugo Fruchter of the Commercial Litigation Branch of the Justice Department’s Civil Division and Assistant U.S. Attorney Howard R. Thomas and Auditor Julie A. Ford of the U.S. Attorney’s Office for the District of New Mexico. The claims resolved by this settlement are allegations only and there has been no determination of liability. The case is United States ex rel. Priem v. SAIC, No-12-cv-148 (D.N.M.).
Schuyler County Man Convicted of Drug Trafficking and Firearms ChargesRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that John Anthony Barton, 33, of Dix, N.Y., was convicted of conspiracy to manufacture 500 grams or more of methamphetamine, possession with intent to distribute 500 grams of more of methamphetamine, possession of marijuana with intent to distribute, using his residence to manufacture, distribute and use methamphetamine and marijuana, and possession of firearms in furtherance of drug trafficking crimes following a jury trial before U.S. District Judge Charles J. Siragusa. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
Assistant U.S. Attorneys Jennifer Noto and Charles E. Moynihan, who handled the case, stated that Barton was arrested on May 18, 2011, after members of the New York State Police, Schuyler County Sheriff’s Office, Schuyler County District Attorney’s Office, Village of Watkins Glen Police Department and the Drug Enforcement Administration executed a search warrant at Barton’s residence on Roloson Hollow Road in Dix. During the search, law enforcement officers discovered an active methamphetamine laboratory, which was in the process of producing methamphetamine, in a shed on the property. In the shed, law enforcement officers also recovered a total of eight firearms, including a loaded .45 caliber handgun, more than 30 grams of methamphetamine, and more than $8,700 in cash. Officers also recovered approximately a pound of marijuana from the house located on the property.
Testimony at the trial also revealed that Barton, together with others, manufactured methamphetamine and distributed as much as 900 grams between 2009 and May 18, 2011.
“Methamphetamines are a highly dangerous and addictive substance,” said U.S. Attorney Hochul. “In addition to being a serious health threat, they are also a growing problem in many parts of the country. Today’s verdict ensures that this defendant will no longer be able to fill the streets of Schuyler County communities with this substance. The outcome should also serve as a warning to others that our Office will continue to work vigorously with our law enforcement partners to take down other similar laboratories.”
Drug Enforcement Administration Special Agent in Charge Brian R. Crowell stated, “This case highlights the dangers of methamphetamine production, use and distribution. Methamphetamine use and abuse is not the only danger to our society, the production of meth is also a significant danger to first responders, neighbors, and non-users as well. One in every six methamphetamine labs results in an explosion making it a severe threat to community members. I commend the men and women of the DEA Rochester Resident Office, the United States Attorney’s Office Western District of New York, Schuyler County District Attorney’s Office, New York State Police CNET the Schuyler County Sheriff’s Department, Watkins Glen Police Department.”At the time of Barton’s arrest, two others – Shawn Rickard and Chad Speicher – were also arrested. Rickard pleaded guilty to narcotics conspiracy involving 500 grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime. Speicher pleaded guilty to narcotics conspiracy. Both defendants are awaiting sentencing.
These verdict is the result of an investigation on the part of the Schuyler County District Attorney’s Office, under the direction of District Attorney Joseph Fazzary, Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, New York State Police Community Narcotics Enforcement Team (CNET) under the direction of Major Wayne C. Olson, the Schuyler County Sheriff’s Department, under the direction of Sheriff William Yessman, and the Watkins Glen Police Department, under the direction of Chief Thomas R. Struble.
Sentencing is scheduled for September 24, 2013 before Judge Siragusa.Salt Lake City Woman Sentenced to Five Years in Federal Prison for Investment Fraud SchemeRead the Press Release
Ordered to Pay More Than $11 Million in Restitution to Victims
SALT LAKE CITY – Emilee Peterson Buckley, age 39, of Salt Lake City, will serve five years in federal prison after pleading guilty to three counts of wire fraud in connection with an investment fraud scheme she operated as the owner of Calypso Financial, LLC in Salt Lake City.U.S. District Judge Dee Benson imposed the sentence Friday. As a part of the sentencing hearing, Judge Benson ordered Buckley to pay $11,272, 908.74 in restitution in the case. Buckley, who pleaded guilty to all charges in an indictment returned in 2010, will be allowed to self-surrender to begin serving her prison sentence.
As a part of the plea agreement, Buckley admitted that from January 2007 through October 2007, she devised a scheme to get money from investors through false and misleading representations. She said she knew that her companies were making little, if any, money and had significant outstanding monthly financial obligations and debts of about $500,000. She admitted knowing that the only way Calypso could continue to meet its monthly financial obligations was through debt financing.
Despite Calypso’s negative financial situation, she represented to investors that Calypso was successful and making money from its business activities, which included residential properties, real estate developments, central Utah property with valuable water rights, a precious metals mine, and foreign trading platforms in Hong Kong, Europe, and elsewhere.
She told investors that based on Calypso’s success, she could provide them with monthly returns ranging from 4 to 15 percent per month. She also admitted providing investors with a balance sheet which reflected Calypso had a net worth in excess of $60 million and she told investors that Calypso’s assets were more than sufficient to pay them back and make them whole in the event its business went bad.
Buckley concealed from investors the fact that much of their investment would be used to make interest payments to or to pay off older investors, commonly known as Ponzi payments. Throughout the fraud period, she accepted money from investors ranging in amounts from $100,000 to as much as $3.5 million.
The case was prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of the FBI with assistance from the Securities and Exchange Commission (SEC).
Romanian Citizen Involved in Phishing Scheme Sentenced to More Than Six Years in Federal PrisonRead 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 Federal Bureau of Investigation, announced that DRAGOS NICOLAE DRAGHICI, 28, a citizen of Romania, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 78 months of imprisonment for participating in an extensive Internet “phishing” scheme.
A phishing scheme uses the Internet to target large numbers of unwary individuals, using fraud and deceit to obtain private personal and financial information such as names, addresses, bank account numbers, credit card numbers and Social Security numbers. Phishing schemes often work by sending out large numbers of counterfeit e-mail messages that are made to appear as if they originated from legitimate banks, financial institutions or other companies. The fraudulent email messages ask individuals to click on a hyperlink contained in the email message, which would take the individual to a counterfeit site on the Internet that purports to be the Internet site of the particular bank, financial institution or company. At the counterfeit Internet site, the individual is then asked to enter information such as the individual’s name, address and credit or debit card numbers.
According to court documents and statements made in court, in June 2005 a resident of Madison, Conn., contacted the FBI in New Haven about a suspicious email that she had received that purported to be from Connecticut-based People’s Bank. The email stated that the recipient’s online banking access profile had been locked and instructed the recipient to click on a link to a web page where the recipient could enter information to “unlock” his or her profile. The web page appeared to originate from People’s Bank, but, as the investigation revealed, was actually hosted on a compromised computer in Minnesota. Any personal identifying and financial information provided by the individual would be sent by email to individuals in Romania, or to a “collector” account, which was an email account used to receive and collect the information obtained through phishing.
DRAGHICI and others were part of a loose-knit conspiracy of individuals from Craiova, Romania, and neighboring areas that shared files, tools, and stolen information obtained through phishing. The co-conspirators used and shared a number of collector accounts, which contained thousands of email messages that contained credit or debit card numbers, expiration dates, CVV codes, PIN numbers, and other personal identification information such as names, addresses, telephone numbers, dates of birth, and Social Security numbers. The co-conspirators then used the personal and financial information to access bank accounts and lines of credit and to withdraw funds without authorization, often from ATMs in Romania.
The investigation revealed that DRAGHICI was involved in phishing from at least 2004 through 2010, harvesting email addresses, spamming, setting up counterfeit websites and collecting stolen data. DRAGHICI identified himself as “a hacker,” and he was involved in obtaining unauthorized access to computers that could be used for spamming and for hosting counterfeit websites. Analysis of DRAGHICI’s email accounts revealed more than 6,000 stolen debit or credit card account numbers.
In addition to People’s Bank, financial institutions and companies targeted by the defendants included Citibank, Capital One, Bank of America, JPMorgan Chase & Co., Comerica Bank, Regions Bank, LaSalle Bank, U.S. Bank, Wells Fargo & Co., eBay and PayPal.
This investigation has resulted in criminal charges against 19 Romanian citizens. On January 18, 2007, a grand jury in New Haven returned an indictment charging seven defendants with various offenses stemming from this scheme. On November 10, 2010, a grand jury returned a second superseding indictment charging an additional 12 defendants, including DRAGHICI.
The first three defendants to face charges were extradited from Bulgaria, Croatia and Canada. DRAGHICI and seven other defendants were extradited from Romania following the ratification in 2010 of an amended treaty on mutual legal assistance between Romania and the United States.
On December 3, 2012, DRAGHICI pleaded guilty to one count of conspiracy to commit fraud in connection with access devices.
This matter is being investigated by the Federal Bureau of Investigation in New Haven, Conn.
Acting U.S. Attorney Daly and Special Agent in Charge Mertz also acknowledged the critical assistance provided by the U.S. Department of Justice Office of International Affairs, the FBI Legal Attaché in Bucharest, Interpol, the Romanian National Police and the United States Marshals Service.The case is being prosecuted by Assistant United States Attorney Edward Chang.
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(203) 821-3722 [email protected]Richard Mcneal Pleads Guilty to Selling Counterfeit Bcs National Championship & Super Bowl TicketsRead the Press Release
RICHARD MCNEAL, age 47, a resident of Randallstown, Maryland, pled guilty in federal court today before U.S. District Judge Mary Ann Vial Lemmon to Trafficking in Counterfeit Goods, announced United States Dana J. Boente. MCNEAL is scheduled to be sentenced on September 19, 2013.
According to Court documents, the defendant travelled to New Orleans on or about January 8, 2012 in order to sell counterfeit tickets to the 2012 Allstate BCS National Championship game. Because there were no available hotel rooms in New Orleans, the defendant travelled to Picayune, Mississippi and stayed at a Days Inn motel. While staying at the Days Inn, the defendant sold four counterfeit tickets, for a total of $3,000.00, to victims who wanted to attend the BCS National Championship Game. When the victims tried to enter the Louisiana Super Dome to attend the game, the tickets were rejected for being counterfeit. The victims then returned to Picayune, Mississippi and reported the crime to local police.
On or about February 2, 2013, the defendant travelled to New Orleans to sell counterfeit tickets to the Super Bowl. During the events leading up to the Super Bowl, Homeland Security Investigations (HSI) and the National Football League (NFL) set up the NFL Ticket Reconciliation Office (TRO), located at 1515 Poydras Street, as part of an effort to investigate counterfeit Super Bowl ticket sales. On February 3, 2013, at approximately 11:45 a.m., HSI Special Agents were contacted by a victim who sought to verify the authenticity of two tickets she had purchased from the defendant for a total of $1650.00. After it was determined that the tickets were counterfeit, the victim provided the defendant’s contact information to HSI Special Agents.
On February 3, 2013, at approximately 12:10 p.m., HSI Special Agents, acting in an undercover capacity, arranged to meet the defendant at a local coffee shop in order to purchase Super Bowl tickets. At the coffee shop, the defendant offered to sell two Super Bowl tickets, for a total of $2,600.00, to an undercover HSI Special Agent. Officers of the New Orleans Police Department, who were working with the HSI Special Agents, then arrested the defendant after it was determined that the tickets were counterfeit.
On February 3, 2013, at approximately 2:40 p.m., a second victim entered the TRO and was in possession of two counterfeit tickets he had purchased from the defendant for a total of $1000.00. The victim had the defendant’s telephone number, and positively identified a photo of the defendant as the person who had sold him the counterfeit tickets.
“Counterfeit goods steal revenue from legitimate businesses that pay taxes and employ workers, but counterfeit tickets also rip off unsuspecting fans who are left without their money and without a ticket,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer, Jr. “Organized criminals prey on the excitement surrounding big events; the public should remember any item that seems ‘too good to be true’ should be cause for caution and concern.” Parmer oversees a five-state area of responsibility including Louisiana, Alabama, Arkansas, Mississippi and Tennessee.
This case was investigated by Homeland Security Investigations, Customs and Border Protection, the Picayune Police Department, the Pearl River County District Attorney’s Office, the New Orleans Police Department and the Orleans Parish District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney G. Dall Kammer.
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Red Lake Man Sentenced for Committing Domestic Assault by an Habitual OffenderRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 35-year-old Red Lake man was sentenced for committing domestic assault involving a woman on the Red Lake Indian Reservation. United States District Court Judge Donovan W. Frank sentenced Brian Gordon Graves to 21 months in federal prison on one count of assault with a dangerous weapon and one count of domestic assault by a habitual offender. Graves was indicted on November 5, 2012, and convicted on January 31, 2013.
According to the indictment and evidence presented at trial, on October 6, 2012, Graves assaulted the victim with a 12-gauge shotgun. This assault was committed after Graves was convicted for assault on at least two prior occasions in Red Lake Indian Tribal Court (criminal domestic violence in 1997 and first-degree assault in 1998).
This is the second time the United States Attorney’s Office for the District of Minnesota has prosecuted someone under the federal “domestic assault by a habitual offender” law. That law was enacted in 2006 by Congress as support to the Violence Against Women Act of 2000. The 2006 statute is a valuable tool for federal prosecutors because research shows that many domestic violence offenders are repeat offenders and because domestic violence rates are extremely high in Indian Country.
Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered during their lives than Caucasian women.
The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
This case was the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department. It was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.Putnam Man Charged with Child Pornography OffensesRead 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 Federal Bureau of Investigation, announced that DARRICK COLLETTE, 32, of Putnam, was arrested today and charged by federal criminal complaint with receipt, distribution, and possession of child pornography.
The criminal complaint alleges that on March 19, 2013, an FBI special agent logged onto a publicly available Internet file sharing network and downloaded images and videos of child pornography from a computer connected to the network with an Internet Protocol (IP) address assigned to COLLETTE’s residence. During a search of COLLETTE’s residence this morning, law enforcement officers seized a computer and multiple external hard drives.
COLLETTE was arrested after the search.
COLLETTE appeared this afternoon before United States Magistrate Judge Thomas P. Smith in Hartford, who ordered COLLETTE detained pending a hearing that is scheduled for June 18.
If convicted of the charge of receipt and distribution of child pornography, COLLETTE faces a minimum term of imprisonment of five years, a maximum term of imprisonment of 20 years, and a fine of up to $250,000. If convicted of the charge of possession of child pornography, COLLETTE faces a maximum term of imprisonment of 20 years and a fine of up to $250,000. The penalties in this matter are enhanced because it is alleged that the defendant possessed depictions of prepubescent minors and minors under the age of 12.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Connecticut State Police and Putnam Police Department have assisted the investigation. The case is being prosecuted by Assistant United States Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
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(203) 821-3722 [email protected]Provider of Home Health Care Services Sentenced for Medicaid FraudRead the Press Release
Norfolk, Va. – Angie L. Gilchrist, 58, of Suffolk, Va., was sentenced today to 33 months in prison, followed by a three year term of supervised release, for defrauding the Virginia Medicaid Program, a health care program for indigent persons that is jointly funded by the federal government and the State of Virginia. She was also ordered to make restitution to the Virginia Medicaid Program in the amount of $294,713.00.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Virginia Attorney General Ken Cuccinelli made the announcement after sentencing by United States District Senior Judge Henry C. Morgan, Jr.
Gilchrist pleaded guilty on February 19, 2013 to health care fraud. According to court documents, Gilchrist owned and operated A-Z Alpha Omega In Home Personal Care Service LLC, a business located in Suffolk that was authorized to provide respite care to Medicaid recipients. Respite care is designed to provide temporary, substitute care for a Medicaid recipient that is normally provided by the family or another unpaid primary caregiver of the recipient. These services are provided on a short-term basis because of the emergency absence or need for routine or periodic relief of the primary caregiver. Between October 2008 and October 2012, Gilchrist filed approximately 385 false and fraudulent claims for reimbursement with the Virginia Medicaid program. These fraudulent claims represented that respite care had been provided by her company to 38 Medicaid recipients, when in fact no such care had been provided. As a result, Gilchrist obtained health care benefit payments in the approximate amount of $294,713.00 to which she was not entitled.
This case was investigated by the FBI and the Office of the Virginia Attorney General, Medicaid Fraud Control Unit. Assistant United States Attorney Alan M. Salsbury prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pittsburgh Man Sentenced to 51 Months in Prison for Possessing Violent Pornographic Images and Videos of ChildrenRead the Press Release
PITTSBURGH, Pa - A Pittsburgh man has been sentenced in federal court to 51 months imprisonment followed by 20 years supervised release on his conviction of possessing child pornography, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on James E. Tronsberg, age 26.
According to information presented to the court, on Jan. 27, 2010, Tronsberg possessed visual depictions, in the form of numerous still images and videos contained in computer graphics files, that depicted minors, some of whom had not reached the age of 12, engaging in sex acts. Some of the pornographic videos involved acts which were sadistic, masochistic, or otherwise violent in nature.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pittsburgh High Tech Crimes Task Force for the investigation leading to the successful prosecution of Tronsberg.
Philadelphia Man Charged with Fraud of the VARead the Press Release
Richard M. Gordon, 65, of Philadelphia, Pennsylvania was charged today by Information with one count of theft of Government funds, announced United States Attorney Zane D. Memeger. The information alleges that between June 4, 2004 and December 31, 2012, Richard Gordon implemented a scheme to steal funds from the Department of Veterans Affairs (VA) by using his brother’s identity to obtain unauthorized medical care. It is further alleged that he used the identity of his brother to receive VA non-service connected disability pension benefits resulting in total losses to the government of approximately $178,607.20.
If convicted the defendant faces a maximum possible sentence of ten years incarceration, a $250,000.00 fine, and three years supervised release.
The case was investigated by the Department of Veterans Affairs Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
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, 215-861-8525Philadelphia Man Charged with "Secret Shopper" and Craigslist ScamRead the Press Release
PHILADELPHIA - David Brister, 56, of Philadelphia, was charged by indictment, unsealed today, in a counterfeit check scheme that victimized dozens of people across the United States, announced United States Attorney Zane David Memeger. Brister is charged with one count of conspiracy, five counts of mail fraud, 12 counts of wire fraud, two counts of presenting and transmitting counterfeit money orders, and four counts of passing and uttering counterfeit checks. He was arrested this morning.
According to the indictment, Brister teamed up with at least one person located outside the United States to defraud Americans in a series of Internet-based schemes. He allegedly duped the recipients of counterfeit checks and money orders into depositing the items into their bank accounts and wiring money to him. In one alleged scheme, Brister and his co-conspirators posted advertisements on the website, Craigslist.com, for fake jobs, which included phony positions such as “secret shoppers” and “administrative assistants.” Whenever a person answered the advertisement and was “hired” for the fake job, Brister or a co-conspirator would allegedly send counterfeit money to the “new employee” along with a set of instructions on how to complete their new “employment” obligations. The instructions generally involved depositing the checks or money orders into their own bank accounts, keeping a portion as their “salary,” performing some simple task, and sending the rest of the money to Brister via Western Union or MoneyGram. Only after wiring the funds to Brister did the would-be employees learn that the checks and money orders they had deposited into their bank accounts were counterfeit.
In a different scheme, an alleged co-conspirator of Brister’s would respond to advertisements on Craigslist.com for the sale of merchandise, agree to buy the advertised item, send counterfeit checks or money orders to the seller in excess of the sales price, and indicate that the difference was to be spent on a third-party delivery company. Brister’s co-conspirator would identify Brister as the representative of the third-party delivery company and ask the seller to deposit the check or money order into his account, keep enough to cover both the sales price and a little bonus, and then wire the rest to Brister. As with the fake job-offer scheme, the sellers followed the instructions and wired thousands of dollars to Brister, only to learn that the monetary instruments they had received were counterfeit, and their bank accounts had been debited.
In total, Brister allegedly received more than $98,000 in fraudulent proceeds from the various Internet-based schemes between January 2008 and August 2012. It is further alleged that Brister and at least one co-conspirator planned to send more than $5.8 million worth of additional counterfeit checks and money orders to unsuspecting victims in the United States as part of their schemes
Each mail fraud count and each count of wire fraud count carries a maximum possible sentence of 20 years in prison; each counterfeit check count carries a maximum possible sentence of 10 years in prison; each conspiracy and each money order transmittal count carries a maximum possible sentence of five years in prison. Brister also faces a fine of up to $6 million, a $2,500 special assessment, and three years of supervised release, if convicted.
If convicted of all charges, Brister faces a maximum possible sentence of 395 years in prison, three years of supervised release, a fine of up to $6 million, and a $2,500 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.Click here to view the indictment
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PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia La Cosa Nostra Associate Pleads Guilty to Loan SharkingRead the Press Release
PHILADELPHIA – Robert Ranieri, 37, of Glendora, N.J., pleaded guilty today to committing loan sharking activities on behalf of the Philadelphia La Cosa Nostra (LCN) Family. U.S. District Judge Eduardo C. Robreno scheduled a sentencing hearing for September 25, 2013. Ranieri faces a maximum penalty of 40 years in prison.
Through court documents and statements made in court, Ranieri admitted that he conspired with Philadelphia LCN Family capo Anthony Staino and others to make a usurious loan to an undercover FBI agent and used threats of violence to collect payments on the loan.
The case was investigated by the FBI, the Internal Revenue Service Criminal Investigations, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
The case is being prosecuted by Assistant U.S. Attorneys Frank A. Labor III, Suzanne Ercole, and Trial Attorney John S. Han of the Department of Justice’s Organized Crime and Gang Section. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia La Cosa Nostra Associate <br /> Pleads Guilty to Loan SharkingRead the Press Release
Robert Ranieri, 37, of Glendora, N.J., pleaded guilty today to committing loan sharking activities on behalf of the Philadelphia La Cosa Nostra (LCN) Family.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division, made the announcement after the plea was accepted by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania.
Through court documents and statements made in court, Ranieri admitted that he conspired with Philadelphia LCN Family capo Anthony Staino and others to make a usurious loan to an undercover FBI agent and used threats of violence to collect payments on the loan.
At sentencing, scheduled for Sept. 25, 2013, Ranieri faces a maximum penalty of 40 years in prison.
The case was investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
Philadelphia Drug Kingpin Sentenced to Death, <br /> Co-defendant to Face Life in PrisonRead the Press Release
A federal jury in the Eastern District of Pennsylvania that voted in favor of death for a North Philadelphia drug kingpin, Kaboni Savage, today voted in favor of life for a co-defendant, Steven Northington. Savage was sentenced to death last week by U.S. District Court Judge R. Barclay Surrick.
Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, and Special Agent in Charge Edward J. Hanko of the FBI’s Philadelphia Division made the announcement after the jury’s decisions.
On May 31, 2013, a jury voted in favor of death for Savage, 38, who is the first defendant in the Eastern District of Pennsylvania to receive the death penalty in federal court. Savage was convicted on May 13, 2013, of 12 counts of murder in aid of racketeering, one count of retaliating against a witness by murder, conspiracy to commit murder in aid of racketeering, and one count of conspiracy to participate in a racketeering enterprise. Savage ordered the Oct. 9, 2004, firebombing of the home of Eugene Coleman’s family. Coleman was a federal witness at the time. Six people were killed in the arson murder, including four children. Savage was sentenced to death on June 3, 2013.
Today, the same jury voted in favor of life for Northington, 41, who was convicted of the murders of Barry Parker in 2003 and of Tybius Flowers in 2004 in addition to racketeering (RICO) conspiracy. Northington will be formally sentenced by U.S. District Judge Surrick on June 19, 2013.
“For more than a decade, Kaboni Savage and members of his organization used murder and violence to intimidate and retaliate against anyone who threatened their drug trade, and along the way mercilessly killed a cooperating witness’s family members, including innocent children,” said Acting Assistant Attorney General Raman. “We are hopeful that the jury’s verdict brings some measure of justice to the victims of Savage’s heinous crimes.”
“Achieving justice sometimes requires us to ask the citizens on a jury to make the most difficult sentencing decision imaginable,” said U.S. Attorney Memeger. “In this case, after convicting the defendants of crimes involving murder, the jurors chose death for Kaboni Savage and life for Stephen Northington. The defendants’ horrific conduct struck at the very heart of our criminal justice system, which depends on witnesses testifying without fearing for their lives or the lives of their family members. We appreciate the time and effort that the jury committed to reaching a fair verdict as to each defendant. While the verdicts cannot restore the loss of life taken by members of the Kaboni Savage drug organization, we hope that the jury verdicts bring some sense of closure to the victims’ families and friends. I want to thank the phenomenal investigative and trial team that worked so hard over many years to bring the defendants to justice for their despicable crimes.”
“Kaboni Savage and his crew murdered men, women, and children – for money, power, and, ultimately, just for revenge,” said FBI Special Agent in Charge Hanko. “They thought no more of taking lives than of taking a phone call. After more than a decade of brutality, Northington’s life sentence and Savage’s death sentences are justly deserved.”
Savage’s sister and co-defendant, Kidada Savage, was also found guilty of the RICO conspiracy and the Coleman family murders. Co-defendant Robert Merritt was found guilty of the RICO conspiracy. They each face a mandatory life sentence at sentencing.
Savage’s drug enterprise operated primarily in the North Philadelphia area from at least late 1997 to 2010. After Savage was indicted on drug charges in 2004, he ordered the murders of the family of government witness Eugene Coleman. Lamont Lewis, who has pleaded guilty, firebombed the Coleman family home on Savage’s orders which Kidada Savage relayed to Lewis.In addition to the six people inside the Coleman home, Savage was convicted of the following murders:
• Kenneth Lassiter, 44, of Lansdale, Pa., on March 19, 1998, near the corner of 8th and Butler Streets in Philadelphia;
• Mansur “Shafiq” Abdullah, 22, of 11th Street, Philadelphia, on Sept. 6, 2000. Abdullah was shot and his burned body was later recovered in the 4200 block of North Park Avenue in Philadelphia;
• Carlton “Mohammed” Brown, 27, of Darien Street, Philadelphia, on Sept. 13, 2001;
• Barry Parker, 32, of Susquehanna Avenue, Philadelphia, on February 26, 2003, in the 3900 block of North Franklin Street in Philadelphia;
• Tyrone Toliver, 26, of Cherry Hill, N.J., on March 14, 2003, in the 3500 block of North Palmetto Street in Philadelphia; and
• Tybius Flowers, 32, of K Street, Philadelphia, on March 1, 2004, in the 3700 block of N. 8th Street in Philadelphia.
The case was investigated by the FBI, the Internal Revenue Service – Criminal Investigation, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and the Philadelphia/Camden High Intensity Drug Trafficking Area Task Force also assisted in the investigation. The case was prosecuted by Trial Attorney Steven Mellin of the Criminal Division’s Capital Case Unit at the U.S. Department of Justice and Assistant United States Attorneys David E. Troyer and John M. Gallagher.
Panamanian National Charged with Receipt and Possession of Child Pornography and Possession of A Counterfeit Alien Registration CardRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on June 12, 2013, Jean Paul Jimenez-Kuchler, 29, a citizen of Panama, living illegally in the United States in Glen Carbon, IL, was arraigned on a three-count Information charging him, in Count 1, with Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in Count 2, with Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, and, in Count 3, Possession of a Counterfeit Alien Registration Card. Jimenez-Kuchler was ordered detained, that is , held without bail, pending further proceedings.
The offenses charged in the Information allege that on June 5, 2013, Jimenez-Kuchler received visual depictions of minors engaged in sexually explicit conduct by downloading the images from the internet, and that he was in possession of the visual depictions on June 6, 2013, when he was arrested on the above offenses. In addition, the information alleges that Jimenez-Kuchler was in possession of a counterfeit Alien Registration Card on the date of his arrest.
A trial date had not been set. If convicted of Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, Jimenez-Kuchler faces a term of imprisonment of not less than five years, but not more than 20 years in prison, a fine up to $250,000, and a term of supervised release of not less than five years, to life. If convicted of Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the penalties include an enhanced term of imprisonment because some of the visual depictions depicted minors under the age of 12, within a term of ii prison of not more than 20 years, a fine up to $250,000, and a term of supervised release of not less than five years, to life. If convicted of Possession of a Counterfeit Alien Registration Card, Jimenez-Kuchler faces a prison term of not more than 10 years, a fine up to $250,000, or both, and a term of supervised release of not more than three years.
An information is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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 Department of Homeland Security, Homeland Security Investigations. The case is assigned to Assistant United States Attorney Angela Scott.
Owner of Northern New Jersey Auto Part Stores Admits Fraud in Tax Returns, Not Including More Than $1.1 Million in Cash IncomeRead the Press Release
TRENTON, N.J. – The owner of several auto parts stores in northern New Jersey admitted today to underreporting on his tax returns more than $1.1 million in cash income that he kept for his personal benefit, U.S. Attorney Paul J. Fishman announced.
Emanuel Marques, of Whippany, N.J., pleaded guilty to an information charging him with one count of subscribing to false personal federal income tax returns. He entered his guilty plea before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and statements made during Marques’s guilty plea proceeding:
Marques admitted that for the tax years 2009 through 2011 he filed U.S. individual income tax returns in which he claimed to report all of his income from his auto parts stores, but which omitted the approximately $1,153,579 in cash he had diverted from the businesses for his personal use. Marques’ intentional failure to disclose true, correct and complete information to the IRS resulted in a tax loss to the United States of approximately $375,869.
As part of his guilty plea, Marques has agreed to make full restitution to the IRS for all losses resulting from his filing of false tax returns. He has also agreed to forfeit $1 million in a related civil case with the U.S. Attorney’s office.
The subscribing to false tax returns charge carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 18, 2013.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle Kitchen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Evan S. Weitz of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit.
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Defense counsel: George Schneider Esq., NewarkMarques, Emanuel Information
Norfolk Man Sentenced on Firearms ChargesRead the Press Release
NORFOLK, Va. – Alton B. Couther, III, 31, of Norfolk, Va., was sentenced today to 180 months in prison, followed by 5 years of supervised release, for two firearms charges stemming from a volatile altercation with law enforcement last fall. Couther was also ordered to pay $7,571.75 in restitution to Geico Auto Insurance in connection with a vehicle he totaled during the commission of his offense.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia made the announcement after sentencing by United States District Judge Raymond A. Jackson.
Couther pleaded guilty on March 13, 2013, to possessing a firearm in furtherance of a drug trafficking crime and possessing a firearm as a convicted felon. According to court documents, on October 17, 2012, an officer with the Norfolk Police Department witnessed Couther drive his car through a red light. The officer attempted to pull Couther over in order to issue a citation but, rather than stop, Couther instead led the officer on a high-speed chase during which he jumped a median and drove the wrong direction on a one-way span of road. The chase ended when Couther crashed into a utility pole and totaled the car he was driving; he then attempted to flee on foot. Norfolk police quickly apprehended Couther and found a Kel-Tec .380 in his pants pocket, and marijuana, scales, and cash in a backpack in the car. Prior to these events, Couther had been convicted of multiple counts of possession with intent to distribute cocaine, as well as for possession of a firearm while in possession of narcotics.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Norfolk Police Department. Assistant United States Attorney V. Kathleen Dougherty prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New Haven Man Sentenced to 57 Months in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSE DeJESUS, also known as “Flaco,” 29, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.
DeJESUS is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that DeJESUS conspired with others to purchase and redistribute heroin.
DeJESUS has been in federal custody since May 21, 2012. On March 13, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
DeJESUS’s criminal history includes two prior felony convictions for selling heroin.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Mescalero Apache Woman Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Tenya Lester-Gonzales, 37, a member and resident of the Mescalero Apache Nation, pleaded guilty yesterday afternoon in Las Cruces federal court to a felony information alleging an assault with a dangerous weapon charge.
During her plea hearing, Lester-Gonzales admitting assaulting her husband with a hatchet in their home on the Mescalero Apache Reservation on March 30, 2012. In her plea agreement, Lester-Gonzales acknowledged intentionally striking the victim in the head and causing him serious bodily injury.
According to court filings, Lester-Gonzales and the victim both were intoxicated when they got into a verbal fight outside their residence on the night of March 30, 2012. After a witness separated the two, Lester-Gonzales went into the residence and returned with a hatchet which she used to strike the victim in the head. The victim sustained a cut on the face that was four inches long and a quarter inch wide as a result of the assault.
Lester-Gonzales was arrested on assault charges in Jan. 2013, after she was transferred from state custody to federal custody and has been in federal custody since that time. Lester-Gonzales remains detained pending her sentencing hearing, which has yet to be scheduled. At sentencing, Lester-Gonzales faces a maximum penalty of ten years in prison and three years of supervised release.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
McCracken County, Kentucky, Man Sentenced to 240 Months in Prison for Distribution and Possession of Child PornographyRead the Press Release
PADUCAH, Ky. – A McCracken County, Kentucky man was sentenced today, by Senior Judge Thomas B. Russell, in United States District Court, to 240 months in prison, followed by a life-time term of supervised release for violating child pornography laws, announced David J. Hale, United States Attorney for the Western District of Kentucky.
On November 9, 2012, a superseding indictment was filed against Matthew Francis Ferreira, age 28, by a federal grand jury meeting in Paducah, Kentucky. Ferreira was charged with three counts of distribution of child pornography and one count of possession of child pornography, via a computer.
On February 26, 2013, Ferreira pleaded guilty to all counts of the superseding indictment, and admitted that he utilized peer-to-peer software and Skype software to knowingly distribute images of child pornography. According to the plea agreement, in January 2012, Ferreira distributed, through the internet, several video files containing child pornography images, from the peer-to-peer software on his computer. In February 2012, he distributed files of child pornography directly to another individual. In March 2012, he possessed multiple images of child pornography. Ferreira agreed to forfeiture of personal items used in the commission of the crimes.
This case was prosecuted by Assistant United States Attorney David Sparks and was investigated by the Kentucky Attorney General’s Cybercrime Unit.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Maiden, N.C. Man Sentenced to More Than Five Years in Prison for Possession with Intent to Distribute Crack CocaineRead the Press Release
STATESVILLE, N.C. – On Monday, June 10, 2013, U.S. District Judge Richard Voorhees sentenced Kelly McClain, 31, of Maiden, N.C. to serve 63 months in federal prison followed by four years of supervised release for trafficking in crack cocaine, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Sheriff David M. Carpenter, of the Lincoln County Sheriff’s Office.
According to filed court documents and court proceedings, on September 13, 2011, during a traffic stop of McClain’s vehicle, Lincoln County Sheriff’s deputies found 109.4 grams of crack cocaine under the mat at the driver’s side floorboard. In June 2012, McClain entered a plea of guilty to one count of possession with intent to distribute cocaine base, commonly referred to as crack cocaine. According to official court documents, Kelly McClain admitted the 109.4 grams of crack cocaine located in his vehicle belonged to him. McClain also admitted to supplying cocaine to other distributors in the area.
McClain has been in local federal custody in the Western District of North Carolina since his arrest in March of 2012. Upon designation of a federal facility he will be transferred into custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The investigation was led by the Lincoln County Sheriff’s Office with the assistance of the Maiden Police Department. The prosecution for the government was handled by Special Assistant U.S. Attorney Erin Elizabeth Comerford of the U.S. Attorney’s Office in Charlotte.
Long-Lost “Rosenberg Diary” RecoveredRead the Press Release
A close confidant of Adolf Hitler, Alfred Rosenberg was one of the most influential members of the “Third Reich” and of the Nazi Party. His tome The Myth of the Twentieth Century articulated the philosophical underpinnings of National Socialist ideology. Rosenberg served as head of the Nazi Party’s foreign affairs department and as the Reich Minister for the Occupied Eastern Territories, which included the Baltic States, Ukraine, and parts of Belorussia. As Reich Minister, Rosenberg played a significant role in the mass murder of the Jewish people in the Occupied Eastern Territories, as well as the deportation of civilians to forced labor camps to support the German war effort. Rosenberg also established and headed an organization, Einsatzstab Reichsleiter Rosenberg, the mission of which was to loot cultural property from all over Europe.
Rosenberg was a defendant at the International Military Tribunal, held at Nuremberg, Germany from 1945 – 1946. He was found guilty on all four counts of the indictment for conspiracy to commit aggressive warfare, crimes against peace, war crimes, and crimes against humanity. Rosenberg was hanged on October 16, 1946.
Rosenberg was privy to much of the planning for the Nazi racial state, the mass murder of the Jewish people and other civilians, the planning and conduct of the Second World War, and the occupation of Soviet territory. His diary entries are a potential wealth of information, hitherto unknown, regarding the history of this period.
Allied forces advancing through Germany seized documents, books, and other records of strategic or tactical importance. After the surrender of Germany in May 1945, governmental authority for Germany was placed into Allied hands. This authority included ownership of all documents created by the defeated German government or captured by Allied forces. To prepare for war crimes trials after the cessation of hostilities, agencies of the United States Government examined and selected relevant documents as potential evidence.
Among the documents seized by Allied forces was the Rosenberg Diary. On August 10, 1945, the Records Subsection of the Documents Unit of the War Crimes Branch, United States Army, received from the Berlin Documents Control Center, the “…private papers of Alfred Rosenberg, former Reichsminister for the Occupied Eastern Territories.” Among these papers, according to the receipt prepared on August 15, 1945, were “Handwritten diary notes” from the years 1934 – 1944. These included notes, dated 1941, “dealing in the early part of (Apr 41) with the conspiracy to dominate Russia and preparations for this occupation (conferences with HITLER and others).”
Dr. Robert M.W. Kempner was a German lawyer who fled Germany for the United States during the war. At the conclusion of the war, Dr. Kempner served as the Deputy Chief Counsel and was the Chief Prosecutor in the “Ministries Case” in the Nuremberg International Military Tribunal. In this role, Dr. Kempner had access to seized Nazi documents in his official capacity as an employee of the United States Government. At the conclusion of the Nuremberg Tribunals, Dr. Kempner returned to the United States and lived in Lansdowne, Pennsylvania. Contrary to law and proper procedure, Dr. Kempner removed various documents, including the Rosenberg Diary, from United States government facilities in Nuremberg and retained them until his death in 1993.
In November, 2012, the United States Attorney’s Office for the District of Delaware and Homeland Security Investigations agents received information from an art security specialist, who was working for the United States Holocaust Memorial Museum,as to the Rosenberg Diary. The Rosenberg Diary was subsequently located and seized pursuant to a warrant issued by the United States District Court for the District of Delaware.
United States Attorney Charles M. Oberly, III said, “This seizure is the result of the joint efforts of this office and Homeland Security Investigations. The discovery and return of this long-lost, important historical document to the government of the United States is a significant achievement. Although it is a reminder of a dark time, the Rosenberg Diary is important to our understanding of history. Our hope is that it will provide valuable insight to historians.”
“Thanks to the tireless investigative work of ICE Homeland Security Investigations (HSI) special agents, and years of perseverance by both the U.S. Attorney’s Office for the District of Delaware and the U.S. Holocaust Memorial Museum, the long-lost Rosenberg Diary has been recovered, not in Germany but in the United States. This important record of the crimes of the Third Reich and the Holocaust is now preserved for all to see, study and learn from,” said ICE Director John Morton. “The work of combating the international theft of cultural heritage is a key part of our work, and no matter how long these items may appear to be lost to history, that hard but important work will continue.”
The United States Holocaust Memorial Museum is thrilled to have recovered the diary of Alfred Rosenberg, a leading Nazi ideologue. As we build the collection of record on the Holocaust, having material that documents the actions of both perpetrators and victims is crucial to helping scholars understand how and why the Holocaust happened," said Museum Director Sara J. Bloomfield. "The story of this diary demonstrates how much material remains to be collected and why rescuing this evidence is such an important Museum priority."
This case was investigated by David L. Hall and Jamie McCall, Assistant United States Attorneys. For further information, contact Assistant United States Attorney David L. Hall at (302) 573-6118.
View the Immigration and Customs Enforcement press release (contains pictures and video)
London Doctor Sentenced for Evading TaxesRead the Press Release
LONDON, KY - A London, KY., physician was sentenced today to 18 months in prison to be followed by six months of home incarceration for evading federal income taxes.
U.S. District Court Judge Gregory F. Van Tatenhove sentenced Werner Grentz, 64, for tax evasion and ordered him to pay the IRS approximately $900,000 for taxes that Grentz owes for the years 1999 to 2010.
According to the plea agreement, in one of those years, Grentz made $356,073 in taxable income in 2009 while working as an independent physician contractor for a hospital in Jellico, Tenn., and a medical office in London, KY. Grentz previously admitted that he hid his income by having his earnings deposited into bank accounts of companies that he controlled.
Grentz pleaded guilty to the charge in January 2013.
Under federal law, Grentz must serve 85 percent of his prison sentence. Following his release, he will be under the supervision of the U.S. Probation Office for three years.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Kathryn M. Keneally, Assistant Attorney General for the Tax Division, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement.
The investigation preceding the indictment was conducted by the Internal Revenue Service, Criminal Investigation Division. The United States was represented in the case by Assistant U.S. Attorney John Patrick Grant and Kenneth C. Vert, Trial Attorney, U.S. Department of Justice Tax Division.
Jury Finds Inmate Guilty of Assault Resulting in Serious Bodily InjuryRead the Press Release
Orlando, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury found Scott Michael Patrick (48) guilty of assault resulting in serious bodily injury. He faces a maximum penalty of ten years in federal prison. His sentencing hearing is scheduled for September 19, 2013. Patrick was indicted on October 6, 2010.
According to evidence presented at trial, Patrick, who was an inmate at the Federal Correctional Complex in Coleman, Florida, carried out a plan to viciously attack a fellow inmate. On February 3, 2007, Patrick went to the victim's assigned unit. Patrick then began shadow boxing and stretching inside of another inmate's cell. After the victim walked past the cell, Patrick and another inmate began brutally beating the victim. A third inmate joined in the fight and stabbed the victim six times while Patrick continued to strike the victim until he collapsed to the floor, smacking his head against a metal kick plate. The victim died as a result of the attack.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Vincent Citro and James Mandolfo.
Joseph Banner Sentenced to 170 Months in Prison for Participating in A Conspiracy to Manufacture MethamphetamineRead the Press Release
GREENEVILLE, Tenn - Joseph Banner, 34, of Erwin, Tenn., was sentenced to serve 170 months in prison, by the Honorable Leon Jordan, U.S. District Judge. Banner pleaded guilty to a federal indictment which was filed in September 2012, charging Banner and 20 others with Conspiracy to Manufacture Methamphetamine. All have been convicted and sentenced to serve time in federal prison. Additional separate but related conspiracy to manufacture methamphetamine cases are currently being prosecuted in federal court.
The methamphetamine manufacturing conspiracy that Banner admitted to being a part of involved a network of overlapping associates that relied on coordinated efforts to procure methamphetamine precursors, which they then used to make methamphetamine using a "shake and bake" manufacturing method. Banner was a prolific methamphetamine cook and the remnants of numerous cooks were recovered by law enforcement from the property surrounding his residence. The drugs the conspirators were responsible for making were being distributed both for profit and for use by people within the conspiracy.
The indictment and subsequent conviction of Banner was the result of an ongoing and collaborative investigation conducted by the Unicoi County Sheriff’s Department, Washington County Sheriff’s Department, Erwin Police Department, First Judicial District Drug Task Force, Tennessee Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney J. Christian Lampe represented the United States.
U.S. Attorney Bill Killian commended the hard work and cooperation of the law enforcement agencies who worked the investigation. “It took a joint effort by all agencies involved to cause this result. I want to commend all those agencies and individuals who are working together to combat the home grown methamphetamine manufacturing rings that plague our communities."
Indictment Filed for Conspiracy to Commit Mail and Wire Fraud, and Extortion by Interstate Communications; Money Laundering; Money Laundering Conspiracy; And Obstruction of JusticeRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Stuart C. Cole, 58, of St Pete Beach, Florida, Mark C. Simpson, 50, of Lake Park, Georgia, and Stephanie M. Simpson, 30, of Lake Park, Georgia, were indicted by a Federal Grand Jury sitting in Macon, Georgia on June 12, 2013 for Conspiracy to Commit Mail and Wire Fraud (Count One) and Conspiracy to Commit Extortion by Interstate Communications and by Mail (Count Two). Mr. Cole and Mr. Simpson were also indicted for Money Laundering Conspiracy (Count Three), Money Laundering (Count Four through Six), and Obstruction of Justice (Count Seven). These charges stem from activities connected with the operation of a business known as Child Support Services and occurring between 2007 and 2009. A copy of the indictment is attached.If convicted, the defendants face the following penalties:
Count One – Conspiracy to Commit Mail and Wire Fraud (all three defendants), in violation of Title 18, United States Code, Section 1349.
Imprisonment up to twenty (20) years, fine of up to $250,000.00, followed by a term of supervised release of up to three (3) years, and a mandatory assessment fee of $100.00.
Count Two – Conspiracy to Commit Extortion by Interstate Communications and by Mail (all three defendants), in violation of Title 18, United States Code, Section 371 i/c/w Sections 875(d) and 876(d).
Imprisonment up to five (5) years, $250,000.00 fine or both, followed by a term of supervised release of up to three (3) years, and a mandatory assessment fee of $100.00.
Mr. Cole and Mr. Simpson also face the following:Count Three – Money Laundering Conspiracy, in violation of Title 18, United States Code, Section 1956(h).
Imprisonment up to twenty (20) years, fine of up to twice the amount laundered (alleged at $655,896.76), or both, followed by a term of supervised release of up to three (3) years, and a mandatory assessment fee of $100.00.
Count Four through Six – Money Laundering, in violation of Title 18, United State Code, Section 1957 and Section 2.
Imprisonment up to ten (10) years, $250,000.00 fine or both, followed by a term of up to three (3) years, and a mandatory assessment fee of $100.00.
Count Seven – Obstruction of Justice, in violation of Title 18, United States Code, Section 1512(c) and 2.
Imprisonment up to twenty (20) years, fine of up to $250,000.00 or both, and a term of supervised release of up to three (3) years, and a mandatory assessment fee of $100.00
An indictment is only an accusation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt at trial.
The case was investigated by the Internal Revenue Service Criminal Investigations, United States Postal Inspection Service, along with the Georgia Governor’s Office of Consumer Protection. The case is being prosecuted by Assistant United States Attorney Robert D. McCullers.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.