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Tuesday 30 April 2013
Lower Brule Man Guilty of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Irvin Scott Yazzie, age 24, of Lower Brule, South Dakota, appeared before U.S. District Judge Roberto A. Lange on April 30, 2013, and pled guilty to the indictment that charged him with Assault with a Dangerous Weapon. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident when Yazzie and his girlfriend, who were staying at a residence in Lower Brule, began arguing about their relationship. During the course of the argument, Yazzie assaulted the victim by striking her with his fists and a black aluminum pole. The victim suffered bruising as a result of the assault.
The investigation was being conducted by the Bureau of Indian Affairs, and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Yazzie was remanded to the custody of the U.S. Marshal’s Service pending sentencing on July 22, 2013.
Leslie Ashmore Sentenced to 240 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
GREENEVILLE, Tenn. – On Apr. 30, 2013, Leslie H. Ashmore, 46, of Kingsport, Tenn., was sentenced to serve 240 months in prison, by the Honorable Leon Jordan, U.S. District Judge. Upon his release from prison, he will be subject to supervised release for five years. There is no parole in the federal system.
Following a jury trial in December 2012, Ashmore was convicted of possession of a firearm after having been previously convicted of a felony offense. He was arrested by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) on federal charges in October 2011, with the assistance of the Kingsport Police Department SWAT team, Sullivan County Sheriff's Department, and Second Judicial District Drug Task Force. A firearm was found in the vehicle in which Ashmore was traveling at the time of his arrest. Federal law prohibits anyone who has previously been convicted of a felony offense from possessing a firearm or ammunition. Ashmore was also subject to the provisions of the Armed Career Criminal Act, whereby a person convicted of possessing a firearm after a felony conviction is subject to a minimum mandatory 15 years, up to life in prison if that person has three or more prior violent felony or drug felony convictions.
The investigation was conducted by the Kingsport Police Department, Second Judicial District Drug Task Force, and ATF. Assistant U.S. Attorneys J. Gregory Bowman and Suzanne Kerney-Quillen represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Lee's Summit Soccer Coach Indicted on Additional Charges of Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., youth soccer coach was indicted by a federal grand jury today on additional charges related to producing child pornography by secretly videotaping members of his soccer team.
Joel D. White, 40, of Lee’s Summit, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against White on April 23, 2013. White, who coached a girls under-12 soccer team and a girls under-15 soccer team through the Lee’s Summit Soccer Association, remains in federal custody. The Lee’s Summit Soccer Association has cooperated fully with law enforcement officers during this investigation.
Today’s indictment charges White with three separate counts of attempting to produce child pornography. White allegedly attempted to use three child victims – identified in the indictment as Jane Doe #1, Jane Doe #2 and Jane Doe #3 – to produce child pornography between May 1, 2012 and March 20, 2013. Each of the three counts contained in the indictment carries a mandatory minimum sentence upon conviction of 15 years in federal prison without parole.
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers in Commerce City, Colo., discovered videos of nude minors on White’s camera. White was at a soccer stadium in Colorado last month for a World Cup qualifying game when the cameras were seized by law enforcement officers as part of a criminal investigation.
Several videos allegedly depict White positioning a video camera in a bedroom of his residence in such a way that the camera is hidden. Shortly after White leaves the room, the affidavit says, the videos depict several minors, approximately 11 or 12 years old, entering the room and changing their clothes. Minors are fully nude in the videos and do not appear to know they are being videotaped.
White allegedly told police that he videotaped nude minors 10 to 15 times without their consent from May to October 2012. According to the affidavit, at least four child victims have been identified so far in the investigation.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Lee’s Summit, Mo., Police Department and the Commerce City, Colo., Police Department.
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."KC Man Sentenced to 30 Years in Prison for Illegally Possessing FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for illegally possessing a firearm that was involved in a triple homicide last year.
Anthony Walker, 46, of Kansas City, was sentenced on Monday, April 29, 2013 by U.S. District Judge Howard F. Sachs to 30 years in federal prison without parole. Walker was sentenced as an armed career criminal due to his prior felony convictions.
On Aug. 1, 2012, Walker pleaded guilty to being a felon in possession of a firearm. Walker admitted that he sold a Hi-Point semi-automatic .40-caliber handgun and a box of ammunition to a confidential law enforcement source for $200 on Jan. 26, 2012. According to court documents, the firearm and ammunition was sent to the Kansas City Regional Crime Lab for examination. Lab results indicated that the handgun matched ballistic evidence taken from the scene of a triple homicide that occurred on Jan. 16, 2012. The results also indicated that the firearm was the same gun used to kill three individuals. The Winchester ammunition purchased from Walker matched the casings recovered at the scene of the triple homicide.
Walker was arrested on Feb. 1, 2012. Court documents state that the shoes Walker was wearing when arrested matched shoe impressions taken from inside the residence where two of the three killings occurred.
On July 17, 2012 Walker was charged in a separate case in the Circuit Court of Jackson County with three counts of first degree murder, three counts of armed criminal action and one count of burglary.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Walker has two prior felony convictions for burglary and prior felony convictions for stealing, escape, unlawful use of a weapon, forgery and robbery.
This case was prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Jury Convicts California Man of Possessing Cocaine found aboard Greyhound BusRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a California man was convicted by a federal jury today of possessing about a kilogram of cocaine that was discovered hidden in his suitcase aboard a Greyhound bus as he traveled through Kansas City.
Rene Alexandor Meras, 32, of California, was found guilty of possessing cocaine with the intent to distribute.
Evidence introduced during the trial indicated that Meras was transporting more than two pounds of cocaine from Los Angeles, Calif., to Cleveland, Ohio. Meras was riding a Greyhound bus from Los Angeles that arrived in Kansas City for a layover on Aug. 29, 2012. Law enforcement officers approached Meras and asked to see his ticket and identification. Meras showed the officers his ticket (which included a baggage claim check), but did not have any identification. Meras initially gave officers a false name (which did not match his ticket) and told them he didn’t have any luggage, but later acknowledged that he did have a roller bag.
Meras gave his consent for officers to search his bag. At the bottom of the bag were two pieces of plywood sandwiched together and sewn into the liner. An officer removed the plywood and discovered the cocaine taped to the underside of the top piece of plywood.
Meras refused to give his name and any biographical information about himself, but his identity was confirmed through his fingerprints, utilizing the FBI database. A woman who was traveling with Meras denied any knowledge of the cocaine and was not charged.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour before returning the guilty verdict to U.S. District Judge Ortrie D. Smith, ending a trial that began Monday, April 29, 2013.
Under federal statutes, Meras is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $5 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David DeTar Newbert and Special Assistant U.S. Attorney Jalilah Otto. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
Jefferson City Attorney Indicted for Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., attorney has been indicted for his role in a conspiracy to commit marriage fraud in order to evade immigration laws.
James Douglas Barding, 60, of Jefferson City, was charged in a superseding indictment that was returned under seal by a federal grand jury in Jefferson City on April 24, 2013. The superseding indictment was unsealed and made public today in conjunction with Barding’s initial court appearance. Barding is a practicing attorney.
The superseding indictment adds Barding as a co-defendant with Oleksandr Nikolayevich Druzenko, also known as “Alex” or “Sasha,” 32, of Jefferson City, Patricia Anne Ewalt, 60, of El Paso, Texas, and Darya Chernova, 38, of Chandler, Ariz. Barding’s co-defendants were originally charged in an Oct. 3, 2012 federal indictment. The superseding indictment also includes additional charges against some of the defendants.
According to the indictment, Barding (a married U.S. citizen) was having an affair with Chernova, a Ukrainian national who entered the United States on a student visa and attended Lincoln University before earning a master’s degree from the University of Missouri-Columbia. Barding allegedly assisted Chernova to enlist a U.S. citizen to marry her so that she could remain in the United States.
Barding and Chernova were friends of Ewalt (a U.S. citizen) and Druzenko, a Ukrainian national who entered the United States on a student visa in August 2004 and attended college in Missouri and elsewhere. Druzenko is currently employed at the Missouri Office of Administration in Jefferson City.
Barding and Chernova allegedly assisted Druzenko in early 2007 to find a U.S. citizen to marry him so that he could remain in the United States and attempt to gain permanent resident status and potentially U.S. citizenship. They approached several persons, the indictment says, including one person with whom Druzenko procured a marriage license but who then declined to enter the sham marriage.
According to the indictment, Druzenko was introduced to Ewalt in March 2007. Druzenko and Ewalt were married on June 22, 2007, the indictment says, for the sole purpose of allowing Druzenko to remain in the United States. Under his student visa, Druzenko would have had to depart the United States within 60 days after graduation. Because of his marriage to Ewalt, Druzenko obtained lawful permanent resident status on Jan. 2, 2008.
Barding, Druzenko, Ewalt and Chernova are charged with participating in a conspiracy to defraud the United States, to commit marriage fraud, and to gain resident status and citizenship through false statements.
In addition to the conspiracy, Barding, Druzenko, Ewalt and Chernova are charged together in one count of marriage fraud. Druzenko and Ewalt are also charged together in three counts that are related to making false statements on immigration forms.
Barding, Druzenko and Chernova are also charged together in one count of attempting to unlawfully procure citizenship or naturalization. This charge is related to the unsuccessful attempt in early 2007.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the U.S. Citizenship and Immigration Services and the Jefferson City, Mo., Police Department.
James Matthew Tafelmeyer Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 30, 2013, before U.S. District Judge Richard F. Cebull, JAMES MATTHEW TAFELMEYER, a 32-year-old resident of Billings, appeared for sentencing. TAFELMEYER was sentenced to a term of:
Prison: 97 months
Special Assessment: $100
Supervised Release: 15 years
TAFELMEYER was sentenced in connection with his guilty plea to receipt of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
Law enforcement officers were investigating allegations of child pornography access by users utilizing the peer-to-peer file sharing network. One investigation involved a person in Billings who had child pornography available to share via a file sharing program. A search warrant was obtained for the residence and served on December 1, 2011.
TAFELMEYER was the occupant of the residence. When questioned, TAFELMEYER admitted that he used the peer-to-peer file sharing program Limewire to receive and possess hundreds of child pornography videos and images. He detailed the search terms he used to find child pornography on Limewire and how he had saved it to various computers and other equipment, and how he had been doing so since 2004.
Agents seized various computer equipment at TAFELMEYER's residence. Subsequent forensic examination revealed hundreds of images and movies of child pornography that TAFELMEYER had received via the Internet for years and continuing until the equipment was seized. TAFELMEYER possessed images and movies of children clearly prepubescent and children engaged in sadistic or masochistic abuse or other depictions of violence. TAFELMEYER possessed a total of over 2,000 images and 24 videos of child pornography on the equipment specified in the forfeiture count.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that TAFELMEYER will likely serve all of the time imposed by the court. In the federal system, TAFELMEYER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Billings Police Department, and the Internet Crimes Against Children (ICAC) Task Force.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
International Narcotics Trafficker Extradited to Face Drug Trafficking and Narco-Terrosism ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney of the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced that Jose Evaristo Linares-Castillo, a/k/a “Don Eva,” has been extradited from Colombia to the United States.
Linares-Castillo and four co-conspirators were indicted in the Southern District of Florida for drug trafficking and money laundering activities within the Southern District of Florida. Linares-Castillo, a Colombian citizen, is designated a Consolidated Priority Organization Target (“CPOT”) by the Department of Justice, a designation given to the most significant narcotics traffickers in the world. Linares-Castillo was responsible for overseeing the manufacture and transportation of thousands of kilograms of cocaine from Apure, Venezuela to Central America and the Caribbean. Linares-Castillo used many lieutenants and independent cocaine sub-contractors to accomplish the movement of cocaine produced in his laboratories in Colombia. Based upon this investigation, Linares-Castillo’s organization maintained possession of approximately 20,000 kilograms of cocaine cached in Apure, Venezuela, near Fuerzas Armadas Revolucionarias de Colombia (the “Revolutionary Armed Forces of Colombia,” or “FARC”) controlled clandestine airstrips, where the cocaine laden aircraft were launched. Linares-Castillo was closely affiliated with CPOT Daniel Arnoldo Barrera-Barrera, a/k/a “Loco Barrera,” as well as with deceased CPOT Pedro Olivero Guerrera-Castillo, a/k/a “Cuchillo.”
Throughout the course of this investigation, agents from the DEA Miami Field Division as well as Assistant United States Attorneys for the Southern District of Florida uncovered a vast drug trafficking and money laundering network, which resulted in the identification of key members of the Linares-Castillo drug trafficking organization responsible for supplying members of the Mexico based Sinaloa Drug Cartel thousands of kilograms of cocaine in Honduras. The kilograms of cocaine were then transported to the United States, via Mexico for distribution. The proceeds from the drug trafficking venture were then repatriated to Colombia through traditional money laundering methods. Linares-Castillo was also named in an indictment returned by a federal grand jury in the Southern District of New York, charging that he conspired to import ton-quantities of cocaine into the United States, to provide material support to the FARC, and to engage in narco-terrorism.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) led by DEA. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of the DEA. This case is being prosecuted by Assistant U.S. Attorney Andrea Hoffman.
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.
Hudson Man Charged with Child Pornography OffensesRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces the filing of a criminal complaint charging Wayne Miner (44, Hudson) with transportation, receipt, and possession of child pornography. If convicted, Miner faces a mandatory minimum of five years in federal prison and a maximum penalty of 50 years in federal prison.
The complaint alleges that Miner traded child pornography with others using at least two e-mail addresses and the Internet. His computer and cellular phone contained numerous files of child pornography.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.This case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, and the Pasco County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Home Invasion Investigation Results in Prison SentenceRead the Press Release
MOBILE, Ala. - Roderick Levar Jones, 33, of Prichard, Alabama, was sentenced yesterday in federal court to 87 months imprisonment, for his participation in a violent home invasion during November of 2011 in Chickasaw, Alabama. Jones entered a guilty plea to the charge of accessory after the fact to kidnapping in federal court in December of 2012. Court documents reflect that he became involved when those committing the home invasion, Brandon Nobles, Miller Griffin and Zerrick Robinson, contacted him to assist them after they had kidnapped the victim’s wife. Jones, armed with a gun, stood guard over the victim’s wife while the others sought to collect a ransom. Nobles, Griffin and Robinson all pled guilty to the federal gun and kidnapping charges in July of 2012. Nobles was sentenced in March of 2013 to a term of imprisonment of 264 months. Robinson and Griffin have not yet been sentenced.
United States District Court Judge Kristi K. Dubose imposed the sentence in Jones’ case. She ordered that Jones serve a term of 87 months imprisonment, to be followed by a supervised release term of three years. She ordered that the defendant receive drug treatment and that he be subject to drug testing when released on supervision following his prison term. No fine was imposed, but the judge ordered that Jones pay the special manadtory assessment of $100.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chickasaw Police Department, the Mobile Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Gloria Bedwell.
Guilty Plea and Sentencing Occur for Two Co-Defendants Involved with Drug Distribution and Firearms PossessionRead the Press Release
St. Louis, MO - Stanley “Outlaw” Carter, of St. Louis City, pled guilty on April 22, 2013, to one felony count of brandishing a firearm in furtherance of a drug trafficking crime and a second felony count of discharging a firearm in furtherance of a drug trafficking crime. Carter entered his change of plea before United States District Judge Henry E. Autrey.
Specifically, on March 26, 2008, Carter and co-defendant Antonio “Lips” Shaw and another accomplice, Richard “Repeat” Bobbitt, entered a City of St. Louis residence with guns drawn. The residence was occupied at the time by a 10-year old girl, a teenage boy and the children's mother. Carter and his two accomplices stole a significant amount of marijuana that they located in the residence.
On May 10, 2008, Carter utilized an AR-15 assault-style rifle to execute two individuals associated with a rival group. The two men were inside a vehicle when Carter approached and opened fire from point-blank range. The shooting occurred at the area commonly referred to as "the Circle" located near 1199 Riverview Boulevard within the City of St. Louis. The first victim, Adolph Ellison, was pronounced dead at the scene. The second victim, Donald Mack, died shortly after. Immediately following the shooting, Carter and his two accomplices, again being Shaw and Bobbitt, fled the scene and undertook efforts to conceal evidence related to the crime.
Carter now faces penalties ranging from 35 years to life in prison. Sentencing is set for July 22, 2013. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Today, Carter's co-defendant, Antonio Shaw, was sentenced to over 31 years imprisonment on one felony count of conspiracy to possess with the intent to distribute marijuana and cocaine base (crack) and a second felony count of brandishing a firearm in furtherance of a drug trafficking crime.
Shaw was convicted of both crimes after a six-day jury trial before United States District Court Judge Henry E. Autrey. During sentencing, the United States District Court took into consideration evidence of Shaw's drug distribution and firearm possession established by the United States during Shaw's criminal trial. The Court also considered, among other things, Shaw's direct involvement in the May 10, 2008, Riverview Circle double-homicide. The additional evidence presented at sentencing established that, among other things, Shaw provided to Carter the firearm used to murder the two victims, identified the two victims as the targets to be killed and drove the vehicle utilized before, during and after the shooting.
This case was investigated by the St. Louis Metropolitan Police Department, St. Louis County Police Department, the Berkeley Police Department, United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service and the St. Louis Circuit Attorney’s Office.
Greenville Firearms Trafficker SentencedRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced LIONEL THOMAS EASTERLING, 30, of Greenville, North Carolina, to 84 months imprisonment followed by 3 years supervised release.
On January 2, 2013, EASTERLING pled guilty to an Indictment charging him with two counts of possession of a firearm by a convicted felon.
The investigation began when the Greenville Regional Drug Task Force used an informant to make two controlled purchases of firearms from EASTERLING in Greenville, N.C. On June 12, 2012, EASTERLING sold three stolen handguns to the informant and on June 20, 2012, EASTERLING sold an AR-15 assault rifle to the informant. EASTERLING was prohibited from possessing firearms and due to his prior felony convictions for selling cocaine.
The investigation of this case was conducted by the Greenville Regional Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney's Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney's Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. The assignment to the United States Attorney's Office has been made possible by grants funded by the Governor's Crime Commission.
Goodwin Announces Record Total in Prescription Drug Take-back EventRead the Press Release
U.S. Attorney’s Office and DEA announce success in sixth Prescription Drug Take-Back Day; over 2 tons of drugs collected
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin and U.S. Drug Enforcement Administration (DEA) Resident Agent in Charge John Ryan jointly announced today that as a result of the April 27th Prescription Drug Take-Back event, a total of 4,642 pounds of unwanted, unused and expired prescription drugs were collected from citizens and households across West Virginia. The April 27th collection results surpassed the previous Take-Back record of 4572 pounds collected last year, in April 2012.
U.S. Attorney Goodwin said, “This year’s record total is another milestone in the fight against prescription drug abuse. West Virginians understand how devastating the prescription drug problem is for our families, and they’re responding in the most effective way they can: by getting rid of potentially dangerous medicine that they don’t need any more.”
DEA Resident Agent in Charge Ryan said, “Prescription drug abuse has plagued so many of our communities. When people voluntarily take prescriptions out of their homes and dispose of them properly, it truly helps our fight against prescription drug abuse. I commend all of the federal, state and local partners in West Virginia for their assistance, which has made this sixth Take-Back a success.”
The April Take-Back designated more than 100 sites throughout West Virginia, providing citizens with several locations to drop off expired, unused and unwanted medications. Nationwide, more than 5,100 sites participated.
In the five previous Take-Back events, the Drug Enforcement Administration and numerous federal, state, and local law enforcement partners have collected more than 2 million pounds (1,018 tons) of prescription medications nationwide.
Former State Probation Officer Guilty of Extortion in Operation Delta BluesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that former Arkansas Department of Community Corrections Parole/Probation Officer Roxanne Davis, age 38, of Wynne, pleaded guilty to one count of extortion under color of official right (18 U.S.C. § 1951) before U.S. District Court Judge J. Leon Holmes in Case No. 4:12CR00260 JLH. The remaining count against Davis was dismissed upon the Court's acceptance of the plea.
During the Change of Plea hearing, Davis admitted the following facts:
Between October 2007 and October 2011, Davis was an employee of the Arkansas Department of Community Correction (ADCC), serving as a Parole/Probation Officer for parolees/probationers in Lee County, Arkansas, and elsewhere. Davis's official duties and responsibilities included: monitoring the parolees/probationers' compliance with the conditions of probation by explaining the rules, regulations, and conditions of parole or probation; administering court-ordered and random drug tests to parolees/probationers and writing parole violation reports upon a positive test; maintaining a chronological history of contacts with parolees/probationers and writing reports accordingly; counseling parolees/probationers during office visits and referring them to various agencies for assistance such as substance abuse counseling and treatment, employment, education, and human services; and making home and community visits to verify parole/probation information and follow-up visits to determine if parolees/probationers are adhering to conditions of parole/probation and to assist them with the community adjustment process.
Davis, like all ADCC officers and staff, was prohibited from collecting court-ordered "economic sanctions" from parolees/probationers. Davis was aware that all payments were to be mailed by the parolee/probationer directly to the ADCC Central Office in Little Rock.
As part of her ADCC duties and responsibilities, Davis was assigned to supervise Torrence Turner, who was on parole from a first degree murder conviction. Between October 2007 and October 2011, Davis misused her authority as an ADCC Parole/Probation Officer to collect cash payments and obtain goods from parolee Torrence Turner in exchange for not enforcing Torrence Turner's parole conditions.
For example, in May 2011, Davis accepted cash from Torrence Turner, ostensibly for a "mother's day present" and for a child's birthday. Davis stipulates that the government would show that her conversations with Torrence Turner concerning these payments were recorded pursuant to a court-authorized wiretap on Torrence Turner's phone. Between October 2007 and October 2011, Davis received more than $1000, but less than $5000, in cash from Torrence Turner in exchange for not enforcing Torrence Turner's parole conditions. Additionally, in April 2011, upon being notified that the Federal Bureau of Investigation conducted an inquiry into Torrence Turner's criminal history, Davis informed Torrence Turner of this inquiry so that Torrence Turner could hide his illegal activities, including drug trafficking, from law enforcement.
Sentencing will be set by the Court at a later date. The potential penalties for a violation of Title 18, United States Code, Section 1951 are up to 20 years incarceration, up to three years supervised release, and up to a $250,000 fine. Davis was not detained.
Torrence Turner previously pleaded guilty in Case No. 4:11CR00211-1 JMM to conspiracy to possess with intent to distribute and to distribute crack cocaine in violation of 21 U.S.C. § 846. During his Change of Plea hearing on September 17, 2012, before U.S. District Judge James M. Moody, Turner admitted that he led a drug trafficking organization in Marianna, Arkansas, and that between January 2010 and October 2011, he distributed between 50 and 150 kilograms of cocaine and between 2.8 kilograms and 8.4 kilograms of crack cocaine in Lee County and other counties in the Eastern District of Arkansas. On February 13, 2013, Judge Moody sentenced Turner to 30 years incarceration in the Bureau of Prisons, to be followed by 5 years supervised release, no fine.
The investigation was conducted by the United States Attorney's Office and the FBI, with the assistance of the Arkansas Department of Community Correction - Internal Affairs Division. It is being prosecuted by Assistant United States Attorney Julie Peters.
Former State Employee Pleads Guilty in Scheme Involving Theft of Dod Surplus PropertyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today ROBERT BRIAN MINISH, 57, of Henderson, North Carolina, pled guilty before United States District Judge Terrence W. Boyle to theft of property belonging to the United States, in violation of Title 18, United States Code, Section 641, and to making false statements, in violation of Title 18, United States Code, Section 1001.
According to the Criminal Information filed on March 5, 2013, and information provided in open court today, MINISH was an employee of Law Enforcement Support Services (LESS), a division of the North Carolina Department of Public Safety. Among its functions, LESS facilitated the transfer of United States Department of Defense (DoD) surplus property to state and local law enforcement agencies to use in law enforcement activities. Working from the position of Firearms Program Manager, MINISH was responsible for coordinating the transfer of DoD weapons, including firearms, to law enforcement agencies.
In 2009, investigators reviewed LESS records as part of an audit. The audit revealed that MINISH failed to maintain records as required for DoD firearms loaned to law enforcement agencies. Dozens of firearms loaned to North Carolina law enforcement agencies through LESS were presently unaccounted for in LESS records. LESS records also reflected that hundreds of firearms were being improperly stored at LESS headquarters in Raleigh. LESS was not itself a law enforcement agency and was not authorized to possess weapons.
During interviews with investigators, MINISH made numerous false statements regarding the firearms identified by the audit as being unaccounted for. MINISH claimed that no firearms were presently stored at LESS headquarters, nor had firearms ever been stored there. At the time, MINISH was aware that hundreds of firearms, including automatic firearms, were improperly stored at LESS. MINISH was also aware that several of the firearms were in his own personal possession.
MINISH mislead investigators with information attributing some of the firearms to certain North Carolina law enforcement agencies. In the ensuing weeks, investigators traveled throughout the state to these law enforcement agencies in a futile effort to account for the firearms. Some law enforcement agencies reported having previously returned missing firearms to MINISH personally.
On May 12, 2009, MINISH notified investigators that some of the questioned firearms were in fact present at LESS headquarters. MINISH initially claimed that the guns and been returned by several law enforcement agencies days earlier. After investigators determined this to be false, MINISH admitted that the guns had been there for months.
On June 16, 2010, LESS received a United States Postal Service package that was addressed to MINISH and was purportedly mailed by the Alamance County Sheriff’s Office. The package was opened and found to contain six of the missing firearms identified by the audit. Investigators determined that the package had not been sent by the Alamance County Sheriff’s Office, but had instead been mailed from a Post Office in Mebane, NC. MINISH eventually admitted that he had been in possession of the firearms, and that he mailed the package to LESS in an attempt to deceive investigators.
Information was developed that MINISH stole additional DoD property that had been, or was to be, loaned to law enforcement agencies through LESS, including: gun safes; tool bins; spectacle kits/goggles; M49 spotting scopes; encrypted radios; Aimpoint rifle scopes; and gun cleaning kits. EBay records associated with an account maintained by MINISH were obtained for the period between August 2008, and September 2010. The records reflected that MINISH sold stolen DoD property on eBay having an acquisition value in excess of $30,000.
At sentencing set for the Court’s August 5th, 2013, term of Court, MINISH faces up to 15 years imprisonment followed by up to three years supervised release and a fine of up to $500,000.
Investigation of this case was conducted by the United States Department of Defense – Defense Logistics Agency, Office of Inspector General; the North Carolina State Bureau of Investigation; the Naval Criminal Investigative Service; and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant United States Attorney Toby Lathan prosecuted the case.
Former Real Estate Broker and Former Police Captain Sentenced in Multi-Million Dollar FraudRead the Press Release
EUGENE, Ore. – Chief U.S. District Judge Ann Aiken sentenced Tamara (Tami) Sawyer, 49, and Kevin Sawyer, 60, of Bend, Oregon, today for their roles in an investment fraud scheme that cost investors almost $6 million. Defendant Tami Sawyer, a former real estate broker, was sentenced to 108 months in federal prison for a litany of charges, including conspiracy, wire fraud, bank fraud, making false statements to financial institutions, and money laundering. Defendant Kevin Sawyer, a former Bend Police Captain, was sentenced to 27 months for making false statements to financial institutions. The defendants were also ordered to pay $5,820,307.55 in restitution to the victims of the fraud. At the conclusion of the sentencing hearing, both defendants were remanded to custody of the U.S. Marshal to begin serving their sentence with the Bureau of Prisons. Upon release from their prison terms, both defendants are ordered to five years of supervised release.
Defendants ran a fraudulent real estate investment scheme through their company Starboard LLC. They enticed investors by falsely promising high rates of return, typically 12 percent, and secured the investments with promissory notes. Rather than investing the money as promised, defendants used it to pay other investors, to fund their other companies and ventures, and to pay personal expenses, including cars, credit cards, and the construction of their $2 million vacation home in Mexico. As a result of defendants’ fraud, investors and banks lost almost $6 million.
“Lying, cheating, and stealing never pays in the end,” commented U.S. Attorney Amanda Marshall. “Individuals like these defendants, who use positions of wealth, prominence, or trust to further their scheme, rob others of more than their hard-earned money and financial independence. They also rob their victims of their ability to trust others, isolating them in society. This behavior cannot and will not be tolerated as shown by today’s sentence.”
“The Sawyers used their standing in the community to sell their investors on what was supposed to be a golden opportunity. However, it was an opportunity tarnished by greed,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon. “More than 30 victims have paid the price for that greed, but, today, they can be assured that the court system has delivered on a promise of justice.”
“The IRS is committed to identifying fraudsters who prey on others in order to satisfy their own greed and to working with our law-enforcement partners to shut them down. Hardworking people entrusted Tamara Sawyer with their savings and financial futures, and she violated that trust for her own financial gain,” said Steven J. Bellis, Assistant Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “This sentencing is a warning that being trusted with money from investors carries a duty to the highest standard of conduct, and that willfully ignoring that duty carries severe consequences.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorneys Scott E. Bradford and Amy E. Potter.
Former Employee of New Jersey Timeshare Consulting Firm Admits Separate Mortgage and Unemployment ScamsRead the Press Release
CAMDEN, N.J. – A former employee in the New Jersey offices of the Vacation Ownership Group LLC admitted today he conspired to defraud owners of timeshare properties by offering phony consulting services while also illegally collecting unemployment benefits, U.S. Attorney Paul J. Fishman announced.
Francis Santore, a/k/a “Frank Martin,” 53, of Northfield, N.J., pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to a Superseding Information charging him with one count of conspiracy to commit mail and wire fraud and one count of mail fraud.
According to documents filed in this case and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, had offices in Mays Landing and Egg Harbor Township, N.J., and claimed to offer consulting services to owners of timeshares, including cancelling, purchasing and upgrading the timeshares.
Santore started working at the VO Group in October 2010, where he was alleged trained by a co-owner of the group, Adam Lacerda, to lie to customers using prepared scripts. Santore admitted that he would give customers the false impression that he was working for a bank or lending institution. He also admitted that he allowed customers to continue operating under the false impression given by his co-workers that the VO Group had the customer’s “complaint file” from a timeshare resort developer in front of them. Santore admitted that he regularly lied to customers in order to perpetrate the scam. Some of those customers then sent checks to the VO Group. Santore admitted that he falsely told a customer that if the customer paid $8,562 to the VO Group, the group would eliminate the customer’s approximately $18,000 mortgage debt with a timeshare developer. Santore admitted causing more than $70,000 in losses.
Santore also devised a separate scheme to defraud the California unemployment system by collecting $16,200 in unemployment compensation benefits while working at the VO Group.
On Jan. 23, 2013, co-owners Adam Lacerda and Ashley Lacerda and other members of the VO Group were variously charged in a Superseding Indictment with conspiracy to commit mail and wire fraud and other charges. Additional members of the VO Group were also charged by criminal Complaint in April 2012. As for the Lacerdas and other defendants who have not been convicted in this case, the charges and allegations against them are merely accusations and they are considered innocent unless and until proven guilty.
Each of the two counts to which Santore pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for Sept. 13, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for their roles in the investigation leading to the guilty plea. He also thanked the state California’s Employment Development Department for its assistance.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Robert A. Mintz Esq., NewarkSantore, Frank Superseding Information
Federal Inmate Charged for EscapingRead the Press Release
MINNEAPOLIS—Earlier today in federal court, an inmate who last month escaped from the Federal Prison Camp in Duluth was charged with one count of escape from custody. Gerald James Greenfield, age 67, of Bloomington, was apprehended following six days on the run.
On March 30, 2013, Greenfield reportedly escaped from the Federal Prison Camp in Duluth. He was serving a 50-month sentence following a 2012 conviction in the District of Minnesota for conspiracy to commit money laundering. According to a law enforcement affidavit filed in the current case, Greenfield was present for a prisoner count at 4:00 p.m. on March 30. However, he was not present for the prisoner count at 10:00 p.m. that evening. On April 5, 2013, law enforcement officials apprehended him at a hotel in Burnsville.
If convicted, Greenfield faces a potential maximum penalty of five years in prison, which could be added to his current sentence. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Federal Court in California Shuts Down Tax PreparerRead the Press Release
A federal court in Los Angeles has entered an order permanently barring John Trunzo from preparing federal income tax returns and other tax-related documents for others, the Justice Department announced today. Trunzo, who operated under the business names “Your Taxman John Trunzo,” “Your Taxman” and “YTJT” in Los Angeles County, consented to the civil injunction order, which was signed by U.S. District Judge Michael W. Fitzgerald.
The government complaint, filed on February 14, 2013, alleged that Trunzo under reported gross receipts on his own income tax returns filed for the tax years 2005 – 2007, causing the government to incur a tax loss of $67,231 for those years. The complaint further alleged that Trunzo provided the Internal Revenue Service (IRS) with false documents in order to convince auditors that his clients had incurred expenses that Trunzo knew they had not incurred, and were entitled to deductions that Trunzo knew were fabricated, which obstructed and impeded the IRS from determining his clients’ true tax liability.
In addition to barring Trunzo from preparing tax returns, Judge Fitzgerald also required Trunzo to create a website to inform his customers of the entry of the permanent injunction within thirty days.
As noted in the complaint, Trunzo was previously charged with one count of subscribing to a false income tax return. He entered a guilty plea to this charge. According to the plea agreement, filed in the criminal case on July 9, 2012, Trunzo agreed to enter into a binding civil injunction, barring him for life from aiding or assisting in the preparation of federal income tax returns for anyone other than himself and his legal spouse, and barring him from representing persons before the IRS.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website . For more information about choosing a tax return preparer, see the IRS website and the IRS YouTube Channel .
Related Materials:
United States v. John Trunzo
Stipulated Order of Permanent Injunction (PDF)
Complaint for Permanent Injunction and Other Relief (PDF)
Federal and State Authorities Arrest El Paso-Based Drug Trafficking Organization on Federal ChargesRead the Press Release
United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit and Federal Bureau of Investigation Special Agent in Charge Mark Morgan announced today that 16 El Paso, Texas defendants have been arrested, based on a 41-count federal indictment charging violations of federal drug and gun laws.
Those arrested and charged by indictment include: Gabriel Fierro, age 41; Jesus Aguiniga, age 29; Adrian Uriel, age 36; Jerry Urbina, age 43; Raul Adrian Chavira, age 30; Daniel Fierro, age 39; Roberto Mendez, age 44; Jaime Aguilar, age 30 ; Javier Alarcon, age 46; Cesar Chavarria, age 31; Marco Antonio Morales, age 37; Evelyn Bencomo, age 22; Angela Marie Webb, age 31; Sharday Vince, age 28; Billy Jack Barrow, age 31; Caleb Jordan McCreless, age 23. Two defendants are fugitives.
A federal grand jury indictment, returned on April 17, 2013, and unsealed today, alleges that from January 2010 to April 2013, all 18 defendants conspired to possess with the intent to distribute in excess of five (5) kilograms of cocaine. Gabriel Fierro, Jesus Aguiniga, Adrian Uriel, Jerry Urbina, Raul Adrian Chavira, Daniel Fierro, Cesar Chavarria, Marco Antonio Morales, Caleb Jordon McCreless, Evelyn Bencomo, and Angela Maria Webb are all charged with possession with intent to distribute and/or distribution of cocaine. Gabriel Fierro, Jesus Aguiniga, Daniel Fierro, Angela Marie Webb, Evelyn Bencomo, Roberto Mendez, and Jerry Urbina are charged with Maintaining a Drug Involved Premise. Jesus Aguiniga, is charged with Possession with Intent to Distribute and/or Distribution of Cocaine and Maintaining a Drug Involved Premise within 1000 feet of a school. Gabriel Fierro and Javier Alarcon are also charged with Possession of a Firearm by a Prohibited Person.
Upon conviction, all defendants face a minimum mandatory of 10 years to life imprisonment on the conspiracy charge; up to 20 years imprisonment on the possession with the intent to distribute and/or distribution of cocaine; up to 20 years on maintaining a drug involved premises; up to 40 years imprisonment on possession with the intent to distribute and/or distribution of cocaine and maintaining a drug involved premises within 1000 feet of a school; and up to 10 years imprisonment on the possession of a firearm by a prohibited person.
In addition to the arrests, five (5) residences in El Paso were searched pursuant to federal search warrants.
FBI Special Agent in Charge Mark Morgan stated, “The arrests today are the culmination of an aggressive joint investigation by the DEA and FBI, as well as, numerous local, state, and federal partners, to rid the city of El Paso of firearm offenders and drug dealers".
“Cocaine destroys the lives of its abusers and has far-reaching negative effects in the areas where it takes hold. By targeting local distribution networks, such as the one in this investigation in the El Paso area, DEA and its law enforcement partners are holding drug dealers responsible for the harm they cause. We will continue to work together to pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs,” stated DEA Special Agent in Charge Joseph M. Arabit.
Other agencies assisted in this investigation to include the El Paso Sheriff’s Office, El Paso Police Department, Texas Department of Public Safety, United States Army Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service, Anthony Police Department , United States Border Patrol, Homeland Security Investigations, Immigrations and Customs Enforcement, and the Texas Alcoholic Beverage Commission. The case is being prosecuted by Assistant United States Attorney Juanita Fielden.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty.
Faribault Man Sentenced for Bank FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 39-year-old Faribault man was sentenced for fraudulently writing 127 company checks to himself. United States District Court Judge David S. Doty sentenced Ronald Leo Schaeffer to 33 months in federal prison on one count of bank fraud in connection to the crime. Schaeffer was charged on December 6, 2012, and pleaded guilty on January 16, 2013.
In his plea agreement, Schaeffer admitted that from August of 2008 through April of 2012, he stole approximately $432,504.10 from his employer, Environmental Tillage Systems, Inc. (“ETS”). ETS, an agricultural manufacturing company in Faribault, hired Schaeffer as its sole in-house accountant. Among other duties, he was responsible for using the QuickBooks accounting software to record information regarding payments owed by ETS to vendors and employees.
Schaeffer admittedly wrote approximately 127 fraudulent checks against the ETS checking account, in amounts ranging from approximately $400 to $12,000, for deposit into his personal account. To conceal his actions, he then made false entries in ETS’s QuickBooks accounting records, indicating that the checks were issued to legitimate ETS vendors when that was not the case.For a period of time, Schaeffer had the authority to use a signature stamp to validate company checks. Beginning in November of 2010, however, he was directed to obtain the actual signature of ETS’s CEO or CFO on all checks before disbursing them. From that point on, he forged the signature of the CEO or CFO on any check that he wrote to himself. Schaeffer used the money he stole from the company to build a lake home in Elysian, Minnesota, and to make payments on his auto and home-equity loans.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Benjamin F. Langner.District Man Sentenced to 14 Years in Prison for 2008 Sexual Assault of Woman in Northeast Washington-DNA Linked Defendant to the Crime-Read the Press Release
WASHINGTON - Antonio Moses, 32, of Washington D.C., has been sentenced to a 14-year prison term for sexually assaulting a woman in 2008, U.S. Attorney Ronald C. Machen Jr. announced.
Moses pled guilty in January 2013, in the Superior Court of the District of Columbia, to a charge of first-degree sexual abuse. He was sentenced on April 12, 2013 by the Honorable Robert E. Morin. Upon completion of his prison term, Moses will be placed on five years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, at approximately 10:30 p.m. on Aug. 3, 2008, the victim, then 18, returned to her home in Northeast Washington after buying groceries. When she entered her home, she was grabbed from behind and thrown to the floor by Moses, a stranger to her. Moses choked the victim and dragged her into her bedroom while holding a small kitchen knife to her throat. He threatened to hurt her if she screamed, and then he sexually assaulted her. After Moses was finished, he forced the victim to stay in the bedroom with him for another hour before finally fleeing at the sound of someone at the front door.
In 2008, the victim’s sexual assault kit was sent to a DNA laboratory for analysis. In April 2012, the Metropolitan Police Department (MPD) received an investigative lead that led them to Moses as the man who had raped the victim in her home in 2008.
In announcing the sentence, U.S. Attorney Machen praised the outstanding work of those who investigated the case for the Metropolitan Police Department, Sexual Assault Unit. He also commended the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialist Donhue Griffith and Victim Witness Advocate Veronica Vaughan. Finally, he praised the work of Assistant U.S. Attorney Lindsay Suttenberg, who investigated this case.
13-152District Man Found Guilty of First-Degree Felony Murder and Other Charges in Killing of 18-Year-Old Latisha Frazier Victim’s Body Was Left in A Dumpster, Never Found; Total of Seven People Now Convicted in CaseRead the Press Release
WASHINGTON – Johnnie Sweet, 19, of Washington, D.C., was found guilty by a jury today of first-degree felony murder and other charges in the August 2010 kidnapping and murder of 18-year-old Latisha Frazier, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The jury returned the verdict following a trial in the Superior Court of the District of Columbia. Sweet was found guilty of first-degree felony murder with aggravating circumstances; first-degree premeditated murder with aggravating circumstances; kidnapping, and tampering with physical evidence. The Honorable Russell F. Canan scheduled sentencing for July 11, 2013. Sweet faces a mandatory minimum of 30 years and a maximum of 60 years of incarceration.
According to the government’s evidence, Sweet was one of the leaders of a group of six young men and women who took part in the murder of Ms. Frazier.
Ms. Frazier vanished on Aug. 2, 2010. For months, her family relentlessly sought to find her, passing out flyers and contacting local news stations to publicize her disappearance. In late January 2011, one witness finally stepped forward and contacted the Metropolitan Police Department, revealing the truth of Ms. Frazier’s whereabouts.
On the day of her disappearance, the government’s evidence showed, Ms. Frazier had been brutally murdered by a group of six young men and women (ages 16 to 23), all of whom she believed to be her friends. The group had suspected - with little evidence - that Ms. Frazier had stolen about $900 from Sweet. Sweet recruited others and exacted a plan of revenge in which they would call her over to an apartment where they claimed to be socializing.
When Ms. Frazier arrived at the apartment in the 1700 block of Trenton Place SE, the group took her to a small bedroom where Sweet and others punched, kicked, and stomped her all over her body. Ignoring her pleas for them to stop, they bound her in duct tape, taped a pillowcase over her head so she could not scream, and shoved her in a small, dark closet. When she screamed and moaned, one of the members of the group placed her in a sleeper hold to “put her to sleep.” Later, the group discovered that she had died.
To dispose of the body, Sweet helped carry her to the bathtub, where he and his friends attempted to dismember her. That evening, Ms. Frazier’s body was thrown into a dumpster, and it is now believed to be somewhere in one or two landfills in rural Virginia.
Of the seven people charged, six former co-defendants have pled guilty. They include Brian Gaither, 25, who was sentenced earlier this month to a 32-year prison term after pleading guilty to first-degree murder; Laurence Kamal Hassan, 24, who pled guilty to second-degree murder and kidnapping; Cinthya Proctor, 21, who pled guilty to second-degree murder, kidnapping and conspiracy to commit evidence tampering; Anneka Nelson, 18, who pled guilty to second-degree murder and kidnapping; Lanee Bell, 19, who pled guilty to kidnapping, and Antoine McCullough, 27, who pled guilty to conspiracy to commit evidence tampering. Except for Gaither, the other defendants are awaiting sentencing.
“Johnnie Sweet showed no remorse in organizing and participating in the senseless murder of Latisha Frazier. The heinous nature of his actions was only matched by the cowardly manner in which he carried out his crime,” said U.S. Attorney Machen. “Today a jury of twelve District of Columbia residents found him guilty of first-degree felony murder and other charges. Mr. Sweet now faces the prospect of spending the rest of his life behind bars. We can only hope that today's result will bring some measure of closure to Latisha Frazier's family, who will forever grieve the loss of their loved one.”
“This was a brutal crime,” said Chief Lanier. “Hopefully, the family of Latisha Frazier can take some comfort in knowing that the culprits will pay for this horrific offense.”
In announcing the verdict, U.S. Attorney Machen and Chief Lanier praised the work of those who investigated the case for the Metropolitan Police Department (MPD), including detectives from the Major Case/Cold Case Squad and the Seventh District.
They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Larry Grasso of the Criminal Intelligence Unit, Victim/Witness Advocate Marcia Rinker, and Paralegal Specialists Kwasi Fields, Phaylyn Hunt, and Angela Lawrence. Finally, they thanked Assistant U.S. Attorneys Christopher R. Kavanaugh and Melinda Williams, who prosecuted the case.
13-153Departments of Justice and Housing and Urban Development Release New Guidance on “Design and Construction” Requirements Under the Fair Housing ActRead the Press Release
New guidance released today by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Justice reinforces the Fair Housing Act requirement that multifamily housing be designed and constructed so as to be accessible to persons with disabilities.
The Fair Housing Act prohibits discrimination in housing based on disability, race, color, national origin, religion, sex and familial status. The Fair Housing Act also requires that multifamily housing with four or more units, built for first occupancy after March 1991, contain accessible features for persons with disabilities.
The new guidance is designed to help design professionals, developers and builders better understand their obligations and help persons with disabilities better understand their rights regarding the “design and construction” requirements of the federal Fair Housing Act.
“Everyone who is involved in designing and building multifamily housing must ensure that the required accessible features are present so that people with disabilities can use and enjoy their homes,” said Eric Halperin, Senior Counsel and Special Counsel for Fair Lending in the Civil Rights Division. “This guidance will help design professionals and builders understand their obligations under this important component of the Fair Housing Act.”
“With one of five persons in this nation having a physical disability, housing units that include the required features of accessibility are more important than ever.” stated John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity (FHEO). “This new guidance will assist developers in constructing housing that complies with the Fair Housing Act’s design and construction requirements from the start and avoid having to deal with costly retrofitting later.”
HUD and the Justice Department share responsibility for enforcing the federal Fair Housing Act. HUD is the agency with the primary responsibility to investigate individual complaints of discrimination. The Secretary of HUD, on his own initiative, may also file complaints alleging discrimination. The Attorney General may commence a civil action in federal court when there is reasonable cause to believe that someone is engaged in a pattern or practice of discrimination or that a group of persons has been denied rights protected by the act.
Under the act, new multifamily housing must include:
· Public and common use areas that are readily accessible to and usable by persons with disabilities; and
· Doors that are designed to allow passage into and within all premises of covered dwellings and that are sufficiently wide to allow passage by persons with disabilities, including persons who use wheelchairs.
In addition, all premises within covered dwellings must contain:
· An accessible route into and through the dwelling unit;
· Light switches, electrical outlets, thermostats, and other environmental controls in accessible locations;
· Reinforcements in bathroom walls to allow the later installation of grab bars;
· Usable kitchens and bathrooms such that an individual using a wheelchair can maneuver about and use the space.
The new guidance, issued in the form of questions and answers, supplements previously-issued guidance and answers such questions as:
· What are the design and construction requirements?
· Who must comply with the design and construction requirements?
· What types of dwellings are covered by the design and construction requirements?
· What are accessible routes?
· What is an accessible entrance?
· What is an accessible public and common use area?
· What safe harbors are available for compliance with the design and construction requirements?
The new guidance is available here. Information about the guidance is also available at www.fairhousingfirst.org .
Since January 2009, HUD and its Fair Housing Assistance Program partners have investigated and either conciliated or charged nearly 5,000 cases that alleged discrimination based on disability, and the Justice Department’s Civil Rights Division has filed 141 cases to enforce the Fair Housing Act, 19 of which have alleged discrimination based on a failure to design and construct multifamily housing in compliance with the act.
For more information about HUD and the civil rights laws it enforces, go to www.hud.gov/fairhousing and click on “Learn more about FHEO.” More information about the Justice Department’s Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/index.php .
Individuals who believe that they may have been victims of housing discrimination should contact HUD at 1-800-669-9777 or go to HUD’s web site: www.hud.gov/fairhousing , or by downloading HUD’s free housing discrimination mobile application, which can be accessed through Apple devices, such as the iPhone, iPad and iPod touch .
In addition, individuals may contact the Justice Department at 1-800-896-7743 or by email at [email protected] .
Defendant Sentenced Following Conviction on Charges Related to Marriage FraudRead the Press Release
United States Attorney Kenyen R. Brown announced today that Florence Chigozie Nna, a citizen of the Federal Republic of Nigeria, and a Legal Permanent Resident of the United States, was sentenced to six (6) months imprisonment following a jury verdict in which she and her co-defendant were found guilty of marriage fraud charges. During the course of the January trial, Nna testified that she was divorced from her Nigerian husband, Oluwagbenga Awoleye, at the time she married United States citizen Rodney Hill. Awoleye pled guilty in a separate marriage fraud case in November 2012. An investigation by the United States Consulate in Lagos, Nigeria, completed after Nna’s trial, revealed that the Nigerian court documents offered by Nna to prove her divorce from Awoleye were fake. Nna and Hill were married in Mobile County Probate Court on February 11, 2008, when Nna was approximately 8 months pregnant, with her third child by Awoleye. Trial testimony from a number of witnesses was that Nna, Hill and Awoleye all worked together at the Salvation Army at the time of Nna and Hill’s marriage. Further testimony demonstrated that a variety of false information was submitted to United States Citizenship and Immigration Services by Nna and Hill in their efforts to obtain Nna’s “green card”. Trial testimony also refuted Nna’s claim that she lived with Hill following their marriage, and in fact proved that Nna and Awoleye continued to live with Awoleye and their children.
In imposing the six month custody sentence, United States District Court Judge Callie V.S. Granade overruled Nna’s objection to her sentencing range being increased because of her obstruction of justice. The obstruction increase resulted fom a finding that Nna provided materially false testimony during her trial. Prior to the imposition of sentence, Nna addressed the Court still insisting that the marriage to Hill was not a sham, despite all evidence to the contrary.
This case was investigated by Special Agent Daniel Evans of Homeland Security Investigations. The case was prosecuted by Assistant United States Attorneys Vicki Davis and Michele O’Brien of the Southern District of Alabama.
Daphne Man Sentenced in Healthcare Fraud Billing CaseRead the Press Release
Kenyen Brown, U.S. Attorney for the Southern District of Alabama, announces that defendant Nehal Bodalia, who pled guilty to healthcare fraud information in February, was sentenced to four years in prison, followed by three years of supervised release, and ordered to pay a $20,000 fine. From at least January 2010 through January 2013, Bodalia owned and operated the Rehab in Motion physical therapy practice, which had locations in Mobile and Robertsdale, Alabama. While operating his clinic, Bodalia devised and executed a scheme to defraud Blue Cross & Blue Shield of Alabama by seeking reimbursement for medical procedures that had not been performed.
Bodalia’s scheme operated like this: Physical therapists working at Rehab in Motion would input the procedures performed on a particular patient into an office computer program, which would generate billing tickets that were then sent to the patient’s insurance company. Bodalia directed the physical therapists to not close out the billing tickets after they entered the performed procedures. It was explained the reason the billing tickets should not be closed out by the therapists was so that Bill Jones of Affordable Billing in New Jersey, who supposedly handled billing for Rehab in Motion, could make any necessary changes to the tickets. However, Bill Jones does not exist, and Affordable Billing does not have a New Jersey office. Rather, after the therapists had entered the information into the computer system, Bodalia altered the billing tickets to make it appear as if certain medical procedures were performed, when, in fact, they had not been performed. Bodalia knew these fraudulently altered tickets would be submitted to an insurance company for reimbursement.
BC/BS Alabama confronted Bodalia with billing discrepancy and he quickly paid back the insurance company. However, this was not Bodalia’s first experience with a healthcare fraud. In 2008, Bodalia was convicted of healthcare fraud in U.S. District Court for the Northern District of Georgia for a nearly identical billing fraud scheme.
This case was investigated by the Federal Bureau of Investigation in Mobile and Blue Cross & Blue Shield of Alabama in Birmingham. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Dallas Residents, Affiliated with Bridgemark Investment Group, Plead Guilty to Roles in Mortgage Fraud ConspiracyRead the Press Release
Fraud Resulted in More Than $10 Million in Fraudulently Obtained Loan Proceeds
DALLAS — On the day before their trial was to begin in federal court, Dallas residents, Eric Damon Johnson and Tracie Elaine Stenson, pleaded guilty to their roles in a mortgage fraud conspiracy that they ran in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Johnson, 51, pleaded guilty to a superseding information charging one count of conspiracy to commit wire fraud affecting a financial institution. According to the terms of his plea agreement, the government agreed to recommend a sentence of not more than 48 months; that recommendation, however, is not binding upon the Court. Johnson was a licensed loan officer and mortgage broker and the president of Bridgemark Investment Group (BIG), which had offices on Hampton Road in Desoto, Texas. BIG’s motto was “Bridging the Gap between the Poor and the Wealthy.”
Stenson, 50, pleaded guilty to one count of conspiracy to commit wire fraud, as charged in the indictment returned by a federal grand jury in Dallas in October 2011. According to the terms of her plea agreement, and if the Court accepts the terms of that plea agreement, the parties agree that a sentence of no more than 84 months in custody is the appropriate disposition of the case. As the Chief of Operations at BIG, Stenson worked as a loan officer and processor.
According to documents filed in the case, Johnson and Stenson conspired to fraudulently obtain mortgage loans in excess of the true sales price of residential real estate properties by making false statements on loan applications and submitting fake invoices for construction upgrades or repairs that were never performed. The conspiracy resulted in more than $10 million in fraudulently-obtained loan proceeds.
BIG recruited individuals to purchase residential real estate as “investors” and Johnson and Stenson promised investors that BIG would find tenants to rent the property and make the mortgage payments. Johnson and Stenson agreed to make payments to the “investors” when the loan closed that were not disclosed to the mortgage lender on the HUD-1 Settlement Statement. Stenson prepared false loan applications for the investors that included, among other things, material misrepresentations regarding the borrower’s monthly income, intention to occupy the property, assets and liabilities. The loan applications were submitted to residential mortgage lenders, who on the basis of the false statements in the loan applications, agreed to fund primary and secondary mortgages for residential real estate properties.
This case is being prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The investigation was conducted by the FBI and Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys J. Nicholas Bunch and P.J. Meitl are in charge of the prosecution.
Crownpoint Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Sampson Antonio, Jr., 24, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pleaded guilty this morning to involuntary manslaughter under a plea agreement with the U.S. Attorney’s Office.
Antonio was arrested in July 2012, on a criminal complaint charging him with involuntary manslaughter in connection with the death of a 19-year-old Navajo woman in Mariano Lake, N.M., on April 21, 2012. Antonio subsequently was indicted and charged with driving a vehicle while intoxicated and running over the victim and causing her death.
During this morning’s proceedings, Antonio pled guilty to the indictment and admitted killing the victim on April 21, 2012, while driving under the influence of alcohol and driving recklessly.Antonio was remanded into the custody of the U.S. Marshals Service after entering his guilty plea and will be detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Antonio faces a maximum penalty of eight years in prison.
This case is being prosecuted by Assistant U.S. Attorneys Kyle T. Nayback and David M. Adams, and was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety.Covington Man Sentenced to over 59 Years for Kidnapping, Armed Bank Robbery, and Firearm OffensesRead the Press Release
COVINGTON, KY - A Kenton County man convicted last December of kidnapping, armed bank robbery and firearm offenses was sentenced to 711 months in federal prison.
U.S. District Judge Danny C. Reeves sentenced 40-year-old Joseph Weir on Monday for kidnapping, brandishing a firearm in furtherance of kidnapping, armed bank robbery, and possessing a firearm in furtherance of bank robbery. Judge Reeves also ordered Weir to pay $1,492.75 in restitution. Under federal law, Weir must serve 85 percent of his prison sentence.
Weir was indicted in March of 2012 and convicted in two separate trials in December of 2012.
Evidence at the first trial showed that on May 31, 2011, Weir kidnapped a 75 year- old patron of the Crestview Town Center by threatening her with a knife and a .357 caliber handgun. After forcing his way into the victim’s car, he took her purse and attempted to access her bank accounts.
Weir eventually transported the victim to a remote area near Cleves, Ohio. He then used his knife to cut the victim’s sweater into pieces and used them to gag and tie her to a tree near the bank of the East Miami River. Weir abandoned the victim there and took her car back to Kentucky, leaving it near his Covington residence. The victim freed herself from the tree and eventually found assistance at a nearby road. She suffered minor injuries.
In the other trial, evidence revealed that Weir robbed the Huntington Bank at Sixth and Madison in Covington of $900.00 on December 5, 2011. He entered the bank, concealing a .380 caliber handgun in his coat and passed a note to the teller threatening to shoot. After fleeing the bank with the money, Weir hid the jacket, shoes, and eyeglasses he wore during the robbery. Officers recovered the items near the bank and linked them to Weir using surveillance video and witness statements.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentence.
The investigation was conducted by the FBI, the Covington Police Department, the Hamilton County Sheriff’s Office, the Boone County Sheriff’s Office, and the Lakeside Park / Crestview Hills Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Tony Bracke and Elaine Leonhard.
Court Authorizes Service of John Doe Summons Seeking the Identities of U.S. Taxpayers with Offshore Accounts at Canadian Imperial Bank of Commerce’s FirstCaribbean International BankRead the Press Release
The Justice Department announced that late yesterday a federal court in San Francisco entered an order authorizing the Internal Revenue Service (IRS) to serve a John Doe summons seeking information about U.S. taxpayers who may hold offshore accounts at Canadian Imperial Bank of Commerce FirstCaribbean International Bank (FCIB). The order was signed by Senior District Judge Thelton E. Henderson. The IRS summons seeks records of FCIB’s United States correspondent account at Wells Fargo N.A., which will allow the IRS to identify U.S. taxpayers who hold or held interests in financial accounts at FCIB and other financial institutions that used FCIB’s Wells Fargo correspondent account.
Pursuant to a petition filed by the United States, the Court granted the IRS permission to serve what is known as a “John Doe” summons on Wells Fargo. The IRS uses John Doe summonses to obtain information about possible violations of internal revenue laws by individuals whose identities are unknown. This John Doe summons directs Wells Fargo to produce records identifying U.S. taxpayers with accounts at FCIB and other banks that used FCIB’s correspondent account.
According to the declaration of IRS Revenue Agent Cheryl R. Kiger filed in support of the petition, FCIB is based in Barbados and has branches in 18 Caribbean countries. Although FCIB does not have U.S. branches, it maintains a correspondent account in the United States at Wells Fargo Bank N.A. As alleged in Agent Kiger’s declaration, the IRS learned that U.S. taxpayers were using FCIB to help them keep their offshore accounts undetected by the IRS and not to pay U.S. federal income tax on money placed in those offshore accounts. Kiger’s declaration describes her review of the information submitted by more than 120 FCIB customers who participated in the IRS’s Offshore Voluntary Disclosure Program. According to the Kiger declaration, many of the FCIB customers in the John Doe class may have been under-reporting income, evading income taxes, or otherwise violating the internal revenue laws of the United States.
“The Department of Justice and the IRS are committed to global enforcement to stop the use of foreign bank accounts to evade U.S. taxes,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “This John Doe summons is a visible indication of how we are using the many tools available to us to pursue this activity wherever it is occurring. Those who are still hiding should get right with their country and their fellow taxpayers before it is too late.”
“This summons marks another milestone in international tax enforcement,” said IRS Acting Commissioner Steven T. Miller. “Our work here shows our resolve to pursue these cases in all parts of the world, regardless of whether the person hiding money overseas chooses a bank with no offices on U.S. soil.”
In a similar case, on Jan. 28, 2013, the U.S. District Court for the Southern District of New York entered an order authorizing the IRS to serve a John Doe summons on UBS AG, seeking records of Swiss bank Wegelin & Co.’s United States correspondent account at UBS, which will allow the United States to determine the identity of U.S. taxpayers who hold or held interests in financial accounts at Wegelin and other Swiss financial institutions to evade federal income taxes.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. A deliberate failure to report a foreign account can result in a penalty of up to 50 percent of the amount in the account at the time of the violation. U.S. taxpayers are reminded that the IRS currently has in place an Offshore Voluntary Disclosure Program where U.S. taxpayers can come forward and disclose their offshore accounts and income. For more details, please go to the IRS’s website: www.irs.gov/uac/2012-Offshore-Voluntary-Disclosure-Program .
A correspondent account is a bank deposit account maintained by one bank for another bank. Financial transactions involving U.S. dollars flow through U.S. banks. Therefore, foreign banks that do business in U.S. dollars, but have no office in the U.S., obtain a correspondent account at a U.S. bank in order to engage in such transactions. These transactions leave a trail in the U.S. that the IRS can access through the records of the correspondent bank accounts. These correspondent bank accounts have records of money deposited, money paid out through checks and money moved through the correspondent account by wire transfers. All of this information the IRS can obtain through a John Doe summons issued to the U.S. bank holding the correspondent account.
Related Materials:
In the Matter of the Tax Liabilities of: John Does, etc.
Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Declaration of Revenue Agent Cheryl R. Kiger in Support of Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Order Granting Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)California Rural Indian Health Board Inc. Settles False Claims Act LawsuitRead the Press Release
SAN FRANCISCO - The California Rural Indian Health Board Inc. (“CRIHB”), a nontribal entity and grantee of the U.S. Department of Health and Human Services (“HHS”), Substance Abuse and Mental Health Services Administration (“SAMHSA”), agreed to pay the United States $532,000, and to be terminated from an existing SAMHSA grant, thereby relinquishing funds valued at over $4.6 million, announced United States Attorney Melinda Haag. In addition, CRIHB will be subject to certain administrative conditions imposed by SAMHSA, and will not be eligible to apply for any new SAMHSA funding opportunities for two federal fiscal years.
The settlement resolves a lawsuit filed against CRIHB in July 2012 by the U.S. Attorney’s Office under the federal False Claims Act, 31 U.S.C. §§ 3729-33. The United States alleged that CRIHB submitted false claims by, among other things, eliminating the substance abuse screening and assessment required of certain Access to Recovery (“ATR”) program applicants, and instructing ATR service providers to pay for prohibited expenses, such as the clients’ rent, mortgage, utilities, and auto repairs. The lawsuit further alleged that CRIHB instructed the ATR service providers to bypass voucher rules, all contrary to the terms of the ATR grant and HHS regulations.
“This settlement is a victory for all ATR clients who need substance and alcohol abuse treatment and recovery support. It sends a clear message that my office is committed to ensuring that federal grant funds are used for their intended purpose.” U.S. Attorney Haag said.
Gioconda Molinari and Douglas Chang are the Assistant U.S. Attorneys who handled the case with the assistance of Paralegal Tiffani Chiu and Auditor Michael Zehr. The settlement is the result of a four-year investigation by the HHS-Office of Inspector General, led by Special Agent Jennifer Spaulding.
(Final Amended Complaint )
(Final Addendum A )
(Final Addendum B )
(Final Executed Agreement )
California Man Seeking Sex with Children Sentenced to 18 Years in PrisonRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former Los Angeles County Sheriff's Department employee to 18 years in prison for attempted child enticement and distributing child pornography, announced U.S. Attorney Joyce White Vance and Immigration and Customs Enforcement's Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
U.S. District Judge Virginia Emerson Hopkins sentenced MARK ROBIN RAINWATER, 46, for crimes connected to his October flight from California to Birmingham to have sex with two young boys. Rainwater pleaded guilty in January to one count of attempting to entice a child for sexual activity and one count of distributing child pornography. The judge ordered him to serve 20 years supervised release after completing his prison sentence.
"Our children deserve every measure of protection we can give them," Vance said. "We will use every tool we have to find and stop child predators from abusing and torturing children," she said.
"This case shows child sexual predators will be identified and investigated by HSI and its law enforcement partners, regardless of who they are or where they're located," Parmer said. "By coordinating federal, state and local law enforcement efforts, the Alabama Internet Crimes Against Children Taskforce ensured this predator was promptly identified so he can no longer harm innocent children," he said.
Rainwater had worked 14 years in the information technology department of the Los Angeles County Sheriff's Department when, in August 2012, he began communicating via the Internet, e-mail, and instant and text messages with an undercover police officer, according to his plea agreement and other court documents. Rainwater believed he was communicating with a parent willing to allow Rainwater to have sex with his two young boys, ages 13 and 8.
Rainwater was arrested when he arrived at Birmingham's Shuttlesworth International Airport on Oct. 12. Court records show that his luggage contained sex toys and children's toys. Later searches of Rainwater's digital storage media and e-mail accounts revealed 242 videos and more than 4,477 images of child pornography, some of which involved babies, toddlers, and prepubescent children involved in sadomasochistic and lewd and lascivious behavior.
ICE-HSI and the Alabama Bureau of Investigation's Internet Crimes Against Children Task Force investigated this case, and Assistant U.S. Attorney Henry Cornelius prosecuted it.
Bullhead Man Sentenced on Domestic Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead man convicted of Domestic Assault by a Habitual Offender was sentenced on April 29, 2013, by U.S. District Judge Charles B. Kornmann. Willard Paul Farrell, III, age 25, was sentenced to 33 months of imprisonment, 3 years of supervised release, and a $100 special assessment.
Farrell was indicted by a federal grand jury in August 2012. On January 2, 2013, he pled guilty to Count I of the indictment that charged him with Domestic Assault by a Habitual Offender.
The conviction stems from an incident in January 2011 when the Defendant ran up to the victim, unprovoked, and assaulted her on a public street. The Defendant and the victim had previously been in a domestic relationship, and at the time of the incident, the victim had a restraining order in place to prevent the Defendant from having contact with or harassing her.
As a result of the assault, the victim sustained numerous scrapes and bruises, along with a fractured cheekbone.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley prosecuted the case.
Farrell was immediately turned over to the custody of the U.S. Marshal.
Bullhead Man Pleads Guilty to AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Morgan Bagola, age 21, of Bullhead, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on April 30, 2013, and pled guilty to Count II of the indictment that charged him with Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident wherein Bagola used a bat to break several windows of a home. Bagola then fought with one of the other persons present. The victim suffered serious bodily injury, including a broken ankle, laceration on his head, and a large welt on his back.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case. Bagola was remanded to the custody of the U.S. Marshal’s Service pending sentencing which has been set for August 12, 2013.
Blackfoot Man Sentenced for Arson at Ft. Hall HomeRead the Press Release
POCATELLO –Trevor James Hurley, 20, of Blackfoot, Idaho, was sentenced today in United States District Court to 36 months in prison followed by five years of supervised release for arson, U.S. Attorney Wendy J. Olson announced. Hurley appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
In court on January 24, 2013, Hurley admitted that in the early morning hours of August 6, 2012, he set fire to a manufactured home or trailer located on the Fort Hall Shoshone Bannock Indian Reservation. According to the plea agreement, witnesses observed Hurley earlier in the night purchasing cotton balls and lighter fluid at a convenience store. Hurley later returned to the convenience store, bragging about how he had set someone's trailer on fire. In an interview with law enforcement on September 11, 2012, Hurley explained how he poured lighter fluid on the cotton balls, lit them on fire, and pushed them through a hole in the screen to the trailer's master bedroom window. Hurley said that the trailer ignited fast, flames shot up, and then he ran back to his friends in a nearby vehicle. Although the trailer was a total loss, and another person was sleeping in a camp trailer located approximately 10 feet away, no one was injured in the fire.
The case was investigated by the Fort Hall Police Department, Idaho State Fire Marshal, and the Bingham County Sheriff's Office.
Birmingham Woman Pleads Guilty to Multi-State Identity Theft ConspiracyRead the Press Release
BIRMINGHAM – A Birmingham woman pleaded guilty today to participating in a multi-state identity-theft and counterfeit-check scheme that included recruiting homeless people to cash the fraudulent checks, announced U.S. Attorney Joyce White Vance, U.S. Postal Inspector in Charge Keith Morris, FBI Special Agent in Charge Richard D. Schwein Jr., and U.S. Secret Service Acting Special Agent in Charge Jeff Anderson.
DAPHNE COLLETTE TATE, 42, pleaded guilty before U.S. District Judge L. Scott Coogler to conspiring with five other people to defraud more than two dozen banks in Alabama, Georgia and Florida. She also pleaded guilty to aggravated identity theft, possessing a business check stolen from the U.S. mail, and possessing a counterfeit check.
Tate was arrested and indicted individually in February. A federal grand jury returned a superseding indictment in March, charging Tate and five other defendants in the multi-state identity-theft conspiracy. Charged along with Tate are her cousin KEITH LAMAR REESE, 46, also of Birmingham, and four Atlanta-area residents, COLUNDRIA SEATS, 36, DEMARIO S. MORMON, 27, CLIFFTON A. MORMON, 31, and BRETT E. FALCONER, 27. The superseding indictment was unsealed April 23.
"In this age of multi-state fraud schemes, it is more important than ever for federal and state law enforcement agencies to coordinate their efforts to best protect the public," Vance said. "My office is privileged to be part of such collaborative efforts that result in prosecuting cases where organized criminal rings operate across city, county, and state lines," she said. "We will continue this mission."
According to the March indictment, Tate and other conspirators conducted their scheme in Alabama, Georgia and Florida between September 2011 and February 2013 as follows:
They obtained account and routing information for various businesses' legitimate checking accounts in at least 25 banks through various means, including stealing checks from the mail and engaging people who had access to account information. Falconer was employed by Regions Bank and accessed the bank's records for the conspiracy during her employment. Falconer provided co-conspirators with information from Regions' accounts and from checks presented at Regions Bank. Other conspirators, including Demario and Cliffton, used that genuine account and routing information to manufacture counterfeit business checks.
Tate, Seats, and Reese would locate people, often the homeless, who had government-issued identification cards and would join the conspiracy as check-cashers. Tate, Seats, Reese and other co-conspirators would transport the check-cashers to locations where they would cash or attempt to cash the counterfeit checks. Members of the conspiracy would divide the proceeds of the successfully cashed checks among themselves.
Each defendant faces a maximum sentence of 30 years in prison and a $1 million fine if convicted of conspiracy to commit bank fraud. Each also faces a potential two-year prison term and $250,000 fine for each count of aggravated identity theft. In addition, a conviction for possessing a counterfeit check carries a maximum sentence of 10 years in prison and a $250,000 fine for Tate, who also faces a possible five years in prison and a $250,000 fine for each count of possessing stolen mail.This case was investigated by the U.S. Postal Inspection Service, the FBI, the U.S. Secret Service, and the Pelham, Trussville and Vestavia Hills police departments, with assistance from Regions Bank corporate investigators. Assistant U.S. Attorney Melissa K. Atwood is prosecuting the case.
While Tate has pleaded guilty to her role in the conspiracy, the remaining defendants are only charged by indictment. The public is reminded that an indictment is merely an accusation. They are presumed innocent and it will be the government's obligation to prove their guilt beyond a reasonable doubt at trial.
Beasley Guilty PleaRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux announced that the KIAMANI A. BEASLEY, 27, of Jeanerette, Louisiana, pled guilty today before United States District Court Judge James J. Brady to defrauding the Louisiana Association of Community Action Partners, a non-profit organization which receives funding from the federal government’s American Recovery and Reinvestment Act Program. BEASLEY faces a sentence of up to ten (10) years imprisonment and a fine of up to $250,000.
Louisiana Association of Community Action Partners was established to organize and strengthen the forty-two (42) private and public Community Action Agencies (CAAs) in Louisiana. CAAs were established to address the effects and causes of poverty and to increase self-sufficiency among the poor. CAAs implemented many education and health programs funded by the federal government. As Finance Director of Louisiana Association of Community Actions Partners, BEASLEY was responsible for overseeing the financial integrity of the organization, including the accounting and distribution of federal funds.
At today’s hearing, BEASLEY admitted that on multiple occasions from September 5, 2011 until on or about November 2, 2011, she used her position of trust to embezzle $50,858 which were to be used for computer software training and weatherization services.
The investigation of this matter was conducted by the U.S. Department of Energy Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Reginald E. Jones.
Ball Resident Pleads Guilty to Child Pornography PossessionRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that Alexander MacIver, 23, of Ball, La., pleaded guilty before U. S. District Judge Dee D. Drell to possessing child pornography on his computer.
According to evidence presented at the guilty plea, authorities discovered more than 10 images of child pornography and one video on MacIver’s laptop, after authorities executed a search warrant of his home on July 18, 2011. The images and video involved minors engaged in sexually explicit conduct. MacIver admitted to downloading the material off the internet.
MacIver faces up to 10 years in prison, a $250,000 fine, and five years to life of supervised release. Sentencing has been set for Aug. 12, 2013. The Rapides Parish Sheriff’s Office and the U.S. Department of Homeland Security/Lafayette investigations unit conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips can be submitted to ICE investigators online at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Arizona Man Sentenced to Ten Years in Federal Prison for Marijuana Trafficking ConvictionRead the Press Release
ALBUQUERQUE, N.M. – Jesse Bruner, 46, of Douglas, Ariz., was sentenced this afternoon to 120 months in federal prison followed by three years of supervised release for his marijuana trafficking conviction. Bruner’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, Dennis A. Ulrich, II, Special Agent in Charge of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Patrol Agent Scott A. Luck, El Paso Sector, U.S. Border Patrol.
Bruner and a co-defendant, a 72-year-old woman from Kentucky, were arrested by U.S. Border Patrol agents on April 7, 2011, in Hidalgo County, N.M., after finding approximately 239 pounds of marijuana in a vehicle driven by the woman and in which Bruner was a passenger. Bruner alone was indicted on July 20, 2011, and charged with possession of marijuana with intent to distribute. Bruner entered a guilty plea to the indictment on Oct. 6, 2011. He has been in federal custody since his arrest.
Court records reflect that on April 7, 2011, U.S. Border Patrol agents followed the vehicle driven by the woman as it traveled north on Hidalgo County Road 1 toward Animas, N.M., and then abruptly turned onto a local ranch road and stopped at the only house on the road. They observed Bruner get out of the vehicle and knock on the door to the house. The woman then drove the vehicle around the back of the house and back to Hidalgo County Road 1 where she slowed down and stopped when she saw the agents. When the agents approached the vehicle to speak with the woman, they observed large bundles on the back seat that were packaged in a manner consistent with packaging for marijuana. After arresting the woman, the agents arrested Bruner who had remained in the vicinity of the house. A search of the vehicle revealed that it contained ten bundles containing an aggregate of 238.95 pounds of marijuana.
The charges against the woman were dismissed before Bruner was indicted after law enforcement authorities determined that Bruner deceived her into participating in his drug trafficking activities. Bruner also threatened her life when she objected to participating in the crime.
The case was investigated by HSI in Deming, N.M., and the U.S. Border Patrol in Lordsburg, N.M., and was prosecuted by Assistant U.S. Attorneys Jacob A. Wishard and Luis A. Martinez.Amarillo Anesthesiologist Arrested on Federal Tax Evasion ChargesRead the Press Release
Dr. Edgar A. Lockett, Jr. Formerly Resided and Practiced in Mineral Wells and McAllen, Texas
AMARILLO, Texas — Edgar A Lockett, Jr., was arrested yesterday on felony charges outlined in a federal indictment returned by a federal grand jury earlier this month, and just unsealed, charging tax evasion. Lockett made his initial appearance this morning before U.S. Magistrate Judge Clinton E. Averitte, who remanded him into custody pending further proceedings set for this Thursday, May 2, 2013, at 9:30 a.m. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the indictment, Lockett is a self-employed anesthesiologist who currently resides in Amarillo; he formerly resided and practiced in other cities in Texas, including Mineral Wells and McAllen. Currently, according to the indictment, Lockett bills under the name of Medical & Health Alliance Ministries.
The indictment alleges that Lockett has not filed income tax returns since 1999, except for a joint returned filed with his spouse for tax year 2007. The indictment alleges that for tax years 2000 through 2010, Lockett owes the United States $1,432,740 in unpaid income taxes.
According to the indictment, Lockett concealed from the IRS the nature, extent and location of his assets by placing funds and property in the names of nominee companies and secreting his income in bank accounts that he opened using his deceased father’s name and social security number.
A federal indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Lockett is charged with six counts of tax evasion, and if convicted, each count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered.
The investigation is being conducted by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christy Drake is in charge of the prosecution.
Allentown Man Indicted on Child Exploitation ChargesRead the Press Release
PHILADELPHIA - Ramy Ahmed, 30, of Allentown, PA, was charged today by indictment with transportation of child pornography, distribution of child pornography, possession of child pornography, coercion and enticement of a minor, and traveling with intent to engage in illicit sexual conduct, announced United States Attorney Zane David Memeger. The indictment alleges that between February 2013 and April 2013, Ahmed engaged in online conversations with an undercover agent posing as the father of an 8-year old girl whom Ahmed expressed an interest in having sex with. It is further alleged that Ahmed sent images of child porn to the agent and, on April 2, 2013, drove from Allentown the New Jersey to meet with the agent thinking he is setting up a sexual encounter with the child. He was arrested and charged by criminal complaint and remains in custody pending an arraignment.
If convicted the defendant faces a maximum possible sentence of life in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Special Assistant United States Attorney Karen A. Fox.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alabama Women Indicted for Cashing Fraudulently Obtained Tax Refund ChecksRead the Press Release
Montgomery, Alabama - A federal grand jury in Montgomery, Alabama, returned an indictment charging Shatoubrioune Hare George, who is also known as “Tobie”, for conspiring to cash fraudulently obtained federal tax refund checks, the Department of Justice, United States Attorney George L. Beck, Jr., and the Internal Revenue Service (IRS) announced today. The 6-count indictment charges George with conspiracy to commit theft of public funds and with theft of public funds.
According to the indictment, George and others obtained U.S. Treasury tax refund checks that were issued due to the filing of fraudulent tax returns. George and others cashed seventy-seven fraudulently obtained U.S. Treasury tax refund checks that totaled approximately $137,016.24 by bringing them to a bank teller who worked for a bank in Wetumpka, Alabama.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, she faces 5 years imprisonment for the conspiracy count and faces 10 years imprisonment for each theft of public funds count. She is also subject to fines, mandatory restitution, and forfeiture if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Charles Edgar, Jr. and Michael Boteler of the United States Department of Justice, Tax Division, and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Justice Department's Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Woman Indicted for Cashing Fraudulently Obtained Tax Refund ChecksRead the Press Release
A federal grand jury returned an indictment charging Shatoubrioune Hare George, a.k.a. “Tobie,” with conspiring to cash fraudulently obtained federal tax refund checks, the Justice Department and the Internal Revenue Service (IRS) announced today. The six-count indictment charges George, of Montgomery, Ala., with conspiracy to commit theft of public funds and with theft of public funds.
According to the indictment, George and others obtained federal tax refund checks issued by the IRS as a result of the filing of fraudulent tax returns. She and others cashed 77 fraudulently obtained U.S. Treasury tax refund checks totaling approximately $137,000 through a bank teller who worked for a bank in Wetumpka, Ala.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, George faces a potential maximum of five years in prison for the conspiracy count and 10 years in prison for each theft of public funds count. She is also subject to fines, mandatory restitution and forfeiture if convicted.
The case was investigated by special agents of IRS - Criminal Investigation. Trial attorneys Charles Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Related Materials:
George Indictment
Alabama Resident Indicted in Stolen Identity Refund Fraud SchemeRead the Press Release
Bridgette Rivers, a resident of Montgomery, Ala., was indicted by a federal grand jury on charges of conspiracy and theft of government funds related to her participation in a scheme to use stolen identities to file fraudulent tax returns, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to the indictment, Rivers provided identity information to co-conspirators, who then used the stolen identities, among other identities, to file false tax returns that fraudulently requested tax refunds from the IRS. Rivers is also alleged to have recruited another individual to provide her bank account information for use in the conspiracy. Fraudulently obtained tax refunds allegedly went into that individual’s bank account and the individual would then withdraw the money to give to Rivers.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Rivers faces a maximum potential sentence of 10 years in prison for the conspiracy charge and each theft of public funds charge. She would also be subject to fines, mandatory forfeiture and restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Jason Poole of the Justice Department’s Tax Division are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
Related Materials:
United States v. Bridgette Rivers
Rivers Indictment (PDF)Alabama Resident Indicted in Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Bridgette Rivers, a resident of Montgomery, Ala., was indicted by a federal grand jury on charges of conspiracy and theft of government funds related to her participation in a scheme to use stolen identities to file fraudulent tax returns, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
According to the indictment, Rivers provided identity information to co-conspirators, who then used the stolen identities, among other identities, to file false tax returns that fraudulently requested tax refunds from the IRS. Rivers is also alleged to have recruited another individual to provide her bank account information for use in the conspiracy. Fraudulently obtained tax refunds allegedly went into that individual’s bank account and the individual would then withdraw the money to give to Rivers.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Rivers faces a maximum potential sentence of 10 years in prison for the conspiracy charge and each theft of public funds charge. She would also be subject to fines and mandatory forfeiture and restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Jason Poole of the Justice Department’s Tax Division are prosecuting the case, with the assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant United States Attorney Todd Brown.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
Monday 29 April 2013
Wichita Man Sentenced to 10 Years for Bank RobberyRead the Press Release
WICHITA, KAN. – A Wichita man has been sentenced to 10 years in federal prison for bank robbery, U.S. Attorney Barry Grissom said today.
Christopher A. Vangessel, 41, Wichita, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Feb. 28, 2012, he robbed the UMB Bank branch at 130 N. Market in Wichita. He gave the teller a note directing her to give him money. After he got the money he left the bank.
Surveillance photos taken during the robbery were released to the public and a parole officer identified Vangessel as the robber.
Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.
United States Seeks Injunction Against Alleged Fraudulent State License FeesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that it has filed a civil complaint seeking a permanent injunction against an operator of an alleged fraudulent mailing scheme directed at Pennsylvania corporations and corporations in other states. It has been assigned to U.S. District Court Judge Sylvia H. Rambo.
The civil complaint filed on April 29, 2013, alleges that Aaron Williams, of Playa Vista, CA, doing business as Pennsylvania Corporate Compliance (PCC), sent on March 22, 2013, 5,312 pieces of mail to Pennsylvania businesses. The mailings urged the businesses to file information and send payment of $125.00 by April 5, 2013 to maintain proper records.
According to United States Attorney Peter J. Smith, the mailings included one page of instructions to complete an annual disclosure statement form, a one page annual meeting disclosure statement with a request reply by April 5, 2013, and a return envelope directing the mail to PCC with a mailing address of 4075 Linglestown Road #120, Harrisburg PA.
The annual disclosure statement stated “failure to comply with certain requirements could cause your corporation to lose its limited liability status . . . . Companies that do not satisfy certain state requirements may forfeit the limited liability protection provided to owners, and could face administrative dissolution or revocation of the entity status by that state should the integrity of the corporation become questionable.” Additionally, the annual disclosure statement provides that PCC “assist[s] corporations to avoid potential non-compliance with the [Pennsylvania Business Code] of maintaining Annual Meeting Minutes.”
Businesses receiving the mailing reasonably believed that PCC is a state agency, completion and submission of the annual meeting disclosure statement is required by the Commonwealth, and they are required to pay the $125.00 fee.
In fact, corporations or limited liability companies registered with the Commonwealth of Pennsylvania are not required to file corporate or annual meeting minutes and are not required to pay the $125.00 fee.
The Pennsylvania Department of State has issued a consumer alert regarding the PCC scam on its website.
Similar mailings in other states have resulted in a cease and desist order against Williams doing business as Indiana Corporate Compliance Business Service Division, Illinois Corporate Compliance Business Services Division, and Ohio Corporate Compliance Business Services Division. The Wyoming Secretary of State has issued a cease and desist letter to Aaron Williams doing business as Wyoming Corporate Compliance.
On April 19, 2013, 3,450 pieces of mail were presented on behalf of Rhode Island Corporate Compliance, 68 Dorrance St. STE 119, Providence, RI 02903-2210 to the United States Postal Service. These mailings are also believed to be part of Williams’ fraudulent scheme.
Williams’ continued misrepresentations and misuse of the mail are not in the public interest and undermine the State’s ability to collect legitimate fees. Thus, the United States Attorney’s Office has sought to permanently enjoin Williams from such fraudulent activities anywhere in the United States.
This matter is being litigated by Assistant United States Attorneys Melissa A. Swauger and Timothy S. Judge. The case stems from an investigation conducted by the Harrisburg office of the United States Postal Inspection Service.Two White River Women Indicted for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that two White River, South Dakota women have been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Ashley Vanderwalker, age 24, and Jarashae Vanderwalker, age 20, were indicted by a federal grand jury on April 12, 2013. They appeared before U.S. Magistrate Judge Mark A. Moreno on April 25, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 10 years’ in custody, 3 years’ of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and both women are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Ashley Vanderwalker and Jarashae Vanderwalker were both released on bond pending trial. A trial date has not been set.
Two California Men Plead Guilty in "Far-Reaching and Elaborate" Automobile Export ScamRead the Press Release
CONCORD, N.H. – Frank Hsiao Chien Ku, 31, of San Gabriel, California, and Danny Chin Hao Hsu, 33, of West Covina, California, have plead guilty to federal mail fraud charges and violations of U.S. Customs laws for their roles in an illegal scheme to purchase new, high-end motor vehicles under false pretenses, title and register them in New Hampshire, and unlawfully export them to China for resale at a substantial profit, announced United States Attorney John P. Kacavas.
Under U.S. Customs laws and regulations, the export of new motor vehicles is prohibited. As a result, most dealerships are contractually prohibited by the manufacturer from selling new automobiles intended for export, and dealerships are required to prevent such sales or suffer financial and other penalties imposed by the manufacturer. One method dealerships often use to ensure the sale of new motor vehicles for domestic use only is a “no-export agreement” signed by the purchaser, prohibiting the vehicle’s export for a certain period of time. The defendants and their agents engaged in an elaborate fraud to circumvent these export prohibitions.
According to charges unsealed today, from October 2009 to March 2012, the defendants operated a San Gabriel, California company, CFLA, Ltd., that financed the purchase of new automobiles from dealerships in New Hampshire and elsewhere on the pretext that the automobiles were intended for domestic use only. The scheme required the defendants and their agents in California to obtain New Hampshire driver’s licenses in their own names or those of others, using fabricated leases and utility bills to falsely establish residency in New Hampshire. Once the defendants and their non-resident agents obtained New Hampshire driver’s licenses, they purchased luxury automobiles at dealerships in New Hampshire and other states, signing “no-export” declarations attesting that the automobiles were not intended for export. In order to reinforce the false impression that the non-resident agents were residents of New Hampshire, the defendants caused monies to be transferred from a CFLA, Ltd. bank account in California to a bank account in New Hampshire for use in purchasing the motor vehicles. In addition to employing non-resident agents, the defendants also employed New Hampshire residents to act as straw buyers, purchasing new luxury automobiles in their own names for the benefit of the defendants and CFLA, Ltd.
Once the defendants, their agents, or the straw buyers purchased the new motor vehicles, the defendants had the vehicles transported directly from a dealership to the port of Long Beach, California for export to China. With respect to those motor vehicles purchased from out-of-state dealerships, the vehicle itself never physically entered the State of New Hampshire. Meanwhile, the defendants fraudulently registered the vehicles in New Hampshire, or caused them to be fraudulently registered in New Hampshire, using the fraudulently obtained driver’s licenses and New Hampshire straw buyers as proof of residency. They also filed fraudulent title applications in their own names with the New Hampshire Division of Motor Vehicles (NH-DMV), and caused to be filed fraudulent title applications in the names of the non-resident agents and New Hampshire straw buyers. The defendants then caused the fraudulently obtained titles issued by the NH-DMV to be forwarded to California for filing with U.S. Customs, together with other export documentation known as a “Shipper’s Export Declaration,” or SED. Taken together, the title and the SED made it falsely appear that the motor vehicles involved were used and, therefore, lawfully exportable to China.
Altogether, the defendants’ scheme involved ninety-three (93) motor vehicles, fourteen (14) of which were seized at the port of Long Beach before they were exported. The total value of those 14 vehicles exceeds $750,000.00. In their plea hearings, the defendants admitted that they defrauded motor vehicle dealerships in New Hampshire and elsewhere, obtained or caused to be obtained New Hampshire drivers’ licenses, automobile titles and registrations by deception, and violated U.S. Customs laws and regulations by using SED’s to further their unlawful activities.
In announcing the charges, U.S. Attorney Kacavas said, “The defendants’ scheme and others like it seek to exploit New Hampshire’s lack of sales tax and compulsory automobile insurance in order to maximize their ill-gotten gains. In addition to defrauding the N.H. Division of Motor Vehicles, and diverting valuable federal and state law enforcement resources to identify, disrupt and dismantle such illegal export rings, out-of-state scammers like the defendants pursue a quick buck at the expense of New Hampshire’s businesses and citizens. Dealers that are duped into selling new motor vehicles to an exporter may suffer manufacturer-imposed “charge-backs” for each vehicle unwittingly sold and unlawfully exported, reductions in future vehicle allocations and inventory, and the loss of service-generated revenue, all of which has a negative impact on a dealership’s sales and service workforce and, ultimately, its viability. Federal law enforcement will continue to partner with the N.H. State Police and the Division of Motor Vehicles to bring such scammers to justice and ensure that New Hampshire remains an inhospitable venue for their illegal trade.”
U.S. Attorney Kacavas wishes to thank Special Agent-in-Charge Bruce Foucart of the U.S. Department of Homeland Security, Homeland Security Investigations, Commissioner John Barthelmes of the New Hampshire Department of Safety, Colonel Robert Quinn of the New Hampshire State Police, and Director Richard Bailey, Jr., of the Division of Motor Vehicles for their close cooperation in the investigation of this case, which is being prosecuted by Assistant U.S. Attorney Michael J. Gunnison.
Tacoma Man Sentenced to 15 Years in Prison for Sex TraffickingRead the Press Release
A 35 year-old Tacoma, Washington resident was sentenced Friday in U.S. District Court in Tacoma to 15 years in prison and five years of supervised release for interstate transportation of an individual for prostitution and conspiracy to engage in sex trafficking, announced U.S. Attorney Jenny A. Durkan. REGINALD IRVIN pleaded guilty in October 2012, following an investigation by the Tacoma Police Department, Lakewood Police Department, and the FBI’s Innocence Lost Task Force. U.S. District Judge Robert J. Bryan ordered IRVIN to register as a sex offender as part of his sentence.
According to records filed in the case, IRVIN exercised violent control over the women who he coerced to work for him as prostitutes. IRVIN controlled the women with a harsh list of rules including requiring the women to give him all money made from prostitution activities and not being allowed to leave the house on their own. When victims broke IRVIN’s rules the punishment included beatings, anal rape, being forced to strip naked and stand in the corner, being tied to the bed, as well as psychological and emotional abuse. Women working for IRVIN witnessed him beating other women, and became fearful of leaving him or disobeying his orders.
In asking for a 15 year sentence prosecutors wrote to the court, “Unquestionably Irvin is a predator who has a long history of assaulting and exploiting young women…. (H)e treated the victims herein like chattel, beating and belittling them into servitude. His history and characteristics demonstrate an individual who is a menace and danger to society.”
The case was investigated by the Tacoma Police Department, Lakewood Police Department, and the FBI’s Innocence Lost Task Force. The FBI’s Innocence Lost Task Force provides a rapid and effective investigative response to reported federal crimes involving the victimization of children. The task force strives to reduce the vulnerability of children to acts of sexual exploitation and abuse and strengthens the capabilities of federal, state, and local law enforcement through training programs and investigative assistance.
The case was prosecuted by Assistant United States Attorney’s Ye-Ting Woo and Bruce Miyake.