Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
7 June 2013
Former Belleville Man Pleads Guilty to Multiple Federal Offenses Charges Include Participating in A Multi-Million Dollar Tax Fraud Conspiracy, Aggravated Identity Theft and Attempting to Obstruct A Federal InvestigationRead the Press Release
Christopher Gilmer, 44, formerly living in Belleville, Illinois, pled guilty to an Information charging, in Count 1, Conspiracy to Defraud the Internal Revenue Service By Submitting False Federal Tax Returns To Make False Claims For Tax Refunds, in Count 2, Aggravated Identity Theft in Using a Social Security Number of Another during and in Relation to Conspiracy to Commit Mail Fraud and Wire Fraud In Submitting false Tax Returns, and in Count 3, attempted Obstruction of Grand Jury Investigation into The Conspiracy to Defraud the Internal Revenue Service By Submitting False Federal Tax Returns To Make False Claims For Tax Refunds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses carry a statutory maximum sentence of up to thirty-two years in prison, a fine of up to $750,000 and mandatory restitution. Sentencing is scheduled for September 19, 2013.
The prosecution is the result of information from an ongoing federal investigation of a conspiracy to obtain the payment of false and fraudulent federal income tax refunds utilizing stolen identities. The IRS utilizes databases to research possible tax refund fraud schemes. The IRS linked tax returns based on wage amounts, federal tax withholding amounts, bank accounts, employers, email addresses and other factors which revealed a tax refund scheme. The scheme involved the preparation of fraudulent federal 2010, 2011, and 2012 tax returns, which were filed during the 2011, 2012, and 2013 tax filing seasons. This nationwide tax refund fraud scheme consists of thousands of falsified tax returns, which claimed millions in fraudulent tax refunds. The total amount of the fraudulent federal tax refunds sought exceeds $150 million dollars. Some of the refunds were stopped by the I.R.S. All of the tax returns were electronically filed. The first tax return filed in this tax refund fraud scheme was filed on or about March 23, 2011 and the last tax return filed was on or about March 16, 2013. The fraudulent refunds were credited to prepaid debit cards created using stolen identities. People in the United States, including Christopher Gilmer, received the prepaid debit cards and withdrew a portion of the funds utilizing Western Union to electronically wire the funds to other coconspirators in Nigeria. Following the execution of a federal search warrant at a hotel room in Belleville, Illinois where Christopher Gilmer was staying, Christopher Gilmer notified a coconspirator in Nigeria and advised him of the federal investigation.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations and the U.S. Postal Inspection Service with the assistance of the Belleville Police Department. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud, call the I.R.S. Criminal Investigations at (618) 622-2160, or mail the information to the Internal Revenue Service, Fresno, CA 93888.
Former Army National Guard Soldier Sentenced to 57 Months in Prison for Lead Role in Fraudulent Military Recruiting Referral Bonus SchemeRead the Press Release
A former member of the U.S. Army National Guard was sentenced today to serve 57 months in prison for leading a conspiracy to obtain approximately $244,000 in fraudulent recruiting referral bonuses from various U.S. military components and their contractor, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Former U.S. Army National Guard Specialist Xavier Aves, 42, of San Antonio, was sentenced by Chief U.S. District Judge Fred Biery in the Western District of Texas. In addition to his prison term, Chief Judge Biery sentenced Aves to serve three years of supervised release and ordered Aves to pay $244,000 in restitution, jointly and severally with co-conspirators.
On Sept. 16, 2011, a grand jury in the Western District of Texas returned a 41-count indictment against Aves and five co-defendants, in which Aves was charged with one count of conspiracy to commit wire fraud, 30 counts of wire fraud and 10 counts of aggravated identity theft.
On Feb. 3, 2012, Aves pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
The case against Aves and his co-defendants arose from an investigation concerning allegations that former and current soldiers and military and civilian contract recruiters in the San Antonio area engaged in a wide-ranging scheme to obtain fraudulent recruiting referral bonuses. To date, 11 individuals have been charged, 10 of whom have pleaded guilty and been sentenced. The investigation is ongoing.
According to court documents, between 2005 and 2008, the U.S. Army, the U.S. Army Reserves and the National Guard Bureau entered into contracts with Document and Packaging Broker Inc. to administer recruiting bonus programs designed to offer monetary incentives to soldiers who referred others to serve in the U.S. military. In addition, the Army managed its own recruiting bonus programs, which offered referral bonuses to soldiers who referred other individuals to serve in the Army or Army Reserves after registering online as recruiting assistants (RA) or sponsors.
Through these recruiting programs, a participating soldier could receive up to $2,000 in bonus payments for every person he referred to join the U.S. military. Based on certain milestones achieved by the referred soldier, a participating soldier would receive the recruiting bonus payments in the form of direct deposits and pre-paid debit card payments.
According to court documents, between February 2006 and February 2011, Xavier Aves, Christopher Castro, Grant Bibb, Paul Escobar, Richard Garcia, Ernest Gonzales and others paid military recruiters, including Jesus Torres-Alvarez, for the names and social security numbers of potential soldiers. Aves, Castro, Bibb, Escobar, Garcia, Gonzales and others used the information they obtained from recruiters to claim credit in their online RA and sponsor accounts for referring certain new soldiers to join the military, when in fact they did not refer those individuals.
Aves orchestrated the scheme by serving as a key intermediary between the recruiters and the participating RAs. Aves arranged for the money to be split among his co-conspirators and directed a portion of the proceeds to be wired to his and his girlfriend’s personal bank accounts.
As a result of the fraudulent referrals, Aves and his co-conspirators received a total of approximately $244,000 in fraudulent recruiting bonuses.
The case is being prosecuted by Trial Attorneys Edward J. Loya Jr., Brian A. Lichter, Mark J. Cipolletti and Sean F. Mulryne of the Criminal Division’s Public Integrity Section. The case is being investigated by agents from the San Antonio Fraud Resident Agency of the Major Procurement Fraud Unit, U.S. Army Criminal Investigation Division.
Federal Officials Reach Out to Somali Community to Build Partnerships; Event Scheduled for Saturday, June 8, at Colina Del Sol Park and Recreation Center in City HeightsRead the Press Release
In December, 2010, U.S. Attorney Laura Duffy took the highly unusual step of appearing at a community meeting to field questions from Somali immigrants who were troubled by the arrests of four men suspected of sending money to the terrorist group al-Shabaab. One of the four was a popular leader of a local mosque.
While the meeting felt tense at times, that dialogue paved the way for Duffy and counterparts at the FBI to create a more formal partnership with community activists, social service providers and spiritual leaders to improve communication, break down misunderstandings and build trust between law enforcement and the San Diego Somali community.
The group of about 24 people calls itself the San Diego Somali Community-Law Enforcement Roundtable. And while community outreach is a cornerstone of President Obama’s counterterrorism strategy, the San Diego partnership has focused first and foremost on building relationships and creating good will.
Law enforcement officials are trying to show members of the community – who are typically leery of authorities in part because of traumatic experiences in their war-torn homeland – that they can be trusted to protect civil rights, vigorously respond to hate crimes and offer support should community members suffer backlash or threats in the wake of events like the Boston Marathon bombings.
“We are trying to create strong, positive relationships between the community and law enforcement so that victims are more likely to report crimes and community members are more likely to come forward when they observe signs of gang-involvement, radicalization or other behaviors that threaten the safety of the community,” Duffy said.
“We also hope this partnership will help us prevent vulnerable youth – many of whom are new residents that experience culture shock and language barriers and difficulty assimilating - from being bullied, recruited by gangs or even drafted into extremism,” Duffy said.
The group holds bi-monthly meetings to discuss issues facing the Somali community and to plan community engagement projects. The U.S. Attorney’s office is also working with local mosques to provide presentations about a variety of public safety topics, such as constitutional rights, what to expect when interacting with law enforcement, an overview of the criminal justice system, Transportation Security Administration screenings at airports, and resources for people reentering the community after incarceration.
The Roundtable has three standing subcommittees. The Law Enforcement Cultural Programs Subcommittee is developing training materials on Somali customs, practices and culture for members of law enforcement. The Youth Subcommittee focuses on health and safety issues for youth. The Young Adult/Re-entry Subcommittee is looking at eliminating some of the barriers impeding the successful transition of Somali youth and young adults who are returning to the community after incarceration.
“We want all sectors in our district to understand that while we are certainly concerned with investigating and prosecuting crimes, we are equally concerned with protecting constitutional rights,” Duffy said. “This is another example of how we are trying to expand the definition of traditional law enforcement by engaging in non-traditional activities such as outreach, which is linked to prevention.”
The partners will hold a Youth Athletic and Resource Fair on Saturday June 8, 2013, from 10 a.m. to 2 p.m. at Colina Del Sol Park and Recreation Center, 5319 Orange Avenue, in City Heights. The Youth Athletic Event will include a soccer clinic for girls and a basketball tournament for boys, and will also offer a variety of safety-themed resource booths and activities. The FBI and FBI Citizens Academy Alumni Association will host a booth to distribute Child ID Kits and online safety information for children.
“We are very excited to host an event which will bring families out to share in athletic competition, promote public safety education, and encourage the youth in our community to get involved in positive activities such as organized athletics,” Duffy said.
In recent years, Somali youth in the U.S. have been especially vulnerable to recruitment efforts by the Somalia-based terrorist group al-Shabab. The U.S. government has designated al-Shabaab a foreign terrorist organization for its links to al-Qaeda and its tactics that include suicide bombings, beheadings and assassinations.
More than 20 young men have left Minnesota – home to the nation’s largest concentration of Somali immigrants – for Somalia since 2007 in what has been described as one of the largest recruiting efforts of U.S. fighters by a foreign terrorist organization.
In San Diego, the four Somali immigrants whose arrests inspired the initial meeting between law enforcement and the community were convicted by a federal jury of conspiring to provide material support to al-Shabaab. They are scheduled to be sentenced June 27.
The Roundtable, meanwhile, continues to meet, expand, and pursue its mission.
For further information about the Roundtable, please contact the U.S. Attorney’s Office or Erin McKinnon at the FBI at (858) 499-7464.
Kelly Thornton
Public Affairs Coordinator
Office of the United States Attorney
Southern District of California
619.546.9726
[email protected]Federal Inmate and Girlfriend SentencedRead the Press Release
Inmate Larry Scott Intentionally Possessed Marijuana, his girlfriend Peggy Evans provided contraband to a federal inmate at USP Lee
United States Attorney Timothy J. Heaphy announced today that a federal inmate currently serving a prison sentence at United States Penitentiary Lee has been sentenced to serve additional federal time after he was involved in possession of contraband, marijuana. In addition, his girlfriend was also sentenced to serve federal time after she was involved in providing the marijuana to a federal inmate.
Larry Scott, 33, was sentenced in the United States District Court for the Western District of Virginia in Abingdon on June 6, 2013, for possession of contraband (marijuana).
Scott, who was sentenced on June 25, 2003 to 154 months of incarceration by the Northern District of Alabama for bank robbery and brandishing a firearm during and in relation to a crime of violence, was sentenced to serve an additional 60 months of federal incarceration following his most recent conviction.
Peggy Evans was sentenced to time served and four months of home confinement following her guilty plea for providing a federal inmate with contraband, specifically marijuana.
According to evidence provided by Special United States Attorney Debbie Stevens, on July 30, 2011, Scott was found to be in possession of marijuana after a visit with his girlfriend, Peggy Evans.
The investigation was handled by the Federal Bureau of Investigation and Special Investigative Unit of the Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the cases for the United States.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the June 2013 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.
Lethan Craig Bias. Felon in Possession of Firearms. Bias, 41, of Tulsa, is charged with possessing .32 caliber and 9mm caliber pistols after having been convicted of felonies, including burglary of a habitation, residential burglary, counterfeiting obligations or securities of the United States, and kidnapping. Upon conviction, Bias would face a maximum of ten years imprisonment and would forfeit the pistols.
Jacquelyn Nelson. Embezzlement and Theft in Excess of $1000 from an Indian Tribal Organization. Nelson, 69, of Seneca, Missouri, is accused of embezzling and stealing over $1,000 from the Eastern Shawnee Tribe, an Indian tribal organization, between February 2008 and November 2009. Nelson allegedly paid herself every week instead of every other week from the tribe, and altered her W-2 form to show she made less than her regular salary.
Sherman Mark Quillman and Misty Dawn Laurecella.Conspiracy, Possession of Methamphetamine With Intent to Distribute, and Firearm Possession. Quillman, 35, and Laurecella, 28, both of Tulsa and commonly known as “M&M,” are accused of conspiring to possess at least 500 grams of methamphetamine with intent to distribute it. Quillman is also accused of possessing a firearm in furtherance of a drug trafficking crime and as a convicted felon. Quillman’s previous felony conviction was for possessing a firearm in furtherance of a drug trafficking crime. Upon conviction, Quillman and Laurecella would face a mandatory ten years imprisonment and a maximum of life imprisonment for the drug charges, while Quillman would face an additional mandatory minimum five years imprisonment and a maximum of life imprisonment for possessing a firearm in furtherance of the drug trafficking crime. Upon conviction, Quillman and Laurecella would also forfeit over $50,000 and the firearm.
Jesus Gomez Maximo.Conspiracy, Possession of Cocaine With Intent to Distribute, and Firearms Possession. Maximo, 26, of Tulsa, is charged with conspiracy and possession of at least 500 grams of cocaine with intent to distribute it. He is also charged with possessing .380 caliber and .32 caliber pistols in furtherance of a drug trafficking crime and as an alien illegally in the United States. Upon conviction, Maximo would face a minimum five years imprisonment up to a maximum of forty years imprisonment for the drug charges, and a mandatory minimum 5 years imprisonment up to a maximum of life imprisonment for possessing firearms in furtherance of a drug trafficking crime. Upon conviction, Maximo would also forfeit three vehicles and the firearms.
Victor Ross Chappell.Felon in Possession of a Firearm and Ammunition. Chappell, 50, of Tulsa, is charged with possessing a .380 caliber pistol and six rounds of .380 caliber ammunition after having been convicted of nine felonies. Chappell’s nine felony convictions include burglary, grand larceny, unauthorized use of a motor vehicle, false impersonation, eluding, and possession of a firearm after former conviction of a felony. Upon conviction, Chappell would face a maximum of ten years imprisonment.
Shaun Michael Jameson. Wire Fraud Scheme. Jameson is accused of devising a clothing business scheme causing friends and relatives to invest and transfer a total of approximately $1,000,000 in fraudulent clothing transactions. From May 2009 to November 2011, friends and relatives, with the intention of investing in the clothing business, would transfer funds to Jameson’s bank accounts with RCB Bank. Jameson allegedly used the investor moneys to pay personal and business expenses unrelated to clothing transactions. Jameson is charged with nine counts of wire fraud and six counts of unlawful monetary transactions. Upon conviction, Jameson would face a maximum of twenty years imprisonment for wire fraud and a maximum ten years imprisonment for unlawful monetary transactions. Upon conviction of all counts, Jameson could also forfeit more than $600,000.
Fernando Palacios.Conspiracy to Possess Cocaine and Methamphetamine With Intent to Distribute and Maintaining Drug Involved Premises. Palacios, age unknown, of Tulsa, is charged with conspiracy to possess 500 grams or more of both cocaine and methamphetamine with intent to distribute it. Palacios is also charged with using premises in Tulsa for the purpose of manufacturing and distributing both cocaine and methamphetamine. Upon conviction, Palacios would face a mandatory minimum of ten years imprisonment up to a maximum of life imprisonment for the methamphetamine charge, a mandatory minimum of five years imprisonment up to a maximum of forty years imprisonment on the cocaine charge, and a maximum of twenty years imprisonment for maintaining a drug involved premises. Upon conviction, Palacios could forfeit as much as $250,000.
Quinn Anthony Kelley, Jr.Possession of Crack Cocaine With Intent to Distribute and Firearm Possession. Quinn, 27, of Tulsa, is charged with possessing crack cocaine with intent to distribute it. Quinn is also charged with possessing a 9mm pistol in furtherance of a drug trafficking crime and as a felon. Quinn’s felony convictions include possession of a controlled drug and unauthorized use of a vehicle. Upon conviction, Quinn would face a maximum of twenty years imprisonment for the crack cocaine charge, a maximum of ten years imprisonment for possessing a firearm as a felon, and a mandatory minimum five years imprisonment up to a maximum of life imprisonment for possessing a firearm in furtherance of a drug trafficking crime. Upon conviction, Quinn could also forfeit over $450 in cash and the pistol.
Rashida Tanzania Mack.Possession of PCP With Intent to Distribute and Firearms Possession. Mack, 35, of Tulsa, is charged with possession of phencyclide, commonly known as “PCP,” with intent to distribute it. Mack is also charged with possessing a 9mm caliber pistol and a .38 special caliber revolver in furtherance of a drug trafficking crime. Upon conviction, Mack would face a mandatory minimum five years imprisonment up to a maximum of forty years imprisonment on the PCP charge and a mandatory minimum five years imprisonment up to a maximum of life imprisonment on the firearms charge. Upon conviction, Mack could also forfeit over $14,000 and the firearms.
Guadalupe Arellano-Montoya.Alien in the United States After Deportation. Arellano-Montoya, 33, was arrested in Tulsa and charged with having returned to the United States unlawfully after being deported on June 2, 2010 from Del Rio, Texas. Upon conviction, Arellano-Montoya would face a maximum of two years imprisonment.
Gene Edward Fouse.Possession of Cocaine With Intent to Distribute. Fouse, 50, of Altedena, California, is charged with possession of more than five kilograms of cocaine with intent to distribute it. Upon conviction, Fouse would face a mandatory minimum ten years imprisonment up to a maximum of life imprisonment. Upon conviction, Fouse could also forfeit two vehicles.
Omar Cardenas-Rodriguez.Possession of Marijuana With Intent to Distribute. Cardenas-Rodriguez, 35, of Tulsa, is charged with possession of marijuana with intent to distribute it. Upon conviction, Cardenas-Rodriguez would face a maximum of twenty years imprisonment and the possible forfeiture of a vehicle.
Bernabe Gonzalez-Vicente.Alien in the United States After Deportation. Gonzalez-Vicente, 40, was arrested in Tulsa and charged with having returned to the United States unlawfully after being deported in December 2012 from Houston, Texas. Upon conviction, Gonzalez-Vicente would face a maximum of two years imprisonment.
Federal Court Permanently Bars Prince George’s County, Maryland, Tax Preparers from Preparing Tax Returns for OthersRead the Press Release
Two federal judges in separate cases entered orders permanently barring Marvin Binion Sr., his son Marvin Binion II, Binion Sr.’s ex-wife Tonya Hubbard and her firm Universal Tax Service LLC from preparing tax returns for others, the Justice Department announced today. The civil injunction orders, to which all defendants consented, were signed by Judge Roger W. Titus and Judge Alexander Williams Jr., of the U.S. District Court for the District of Maryland.
The two government complaints, one against the Binions and one against Hubbard and her firm, alleged that the defendants prepared fraudulent tax returns for customers containing bogus deductions for items like charitable contributions, unreimbursed employee business expenses and other miscellaneous expenses. The lawsuits also alleged that Hubbard, Universal Tax Service LLC and the Binions violated federal law by not signing the returns they prepared for customers and by not placing IRS preparer identification numbers on the returns. All tax preparers are required to place an IRS-issued tax preparer identification number on every federal income tax return they prepare for a customer.According to the complaints the defendants prepared customer returns using commercial tax software, placed the returns in postage-paid pre-addressed envelopes and instructed customers to sign and mail the returns to the IRS on their own. The suits alleged that defendants did this to hide from the IRS their role in preparing the returns.
The government alleged that Hubbard and the Binions charged customers a return-preparation fee of $300 and that the Binions may have earned as much as $30,000 per day preparing fraudulent returns.
The Internal Revenue Service has listed tax-preparer fraud as one of the “Dirty Dozen” tax scams. The Justice Department has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters in the past 10 years. Information about these cases is available on the Justice Department’s website www.justice.gov/tax.
Related Materials:
United States v. Marvin L. Binion, Sr., et al.
Final Stipulated Permanent Injunction Order (PDF)United States v. Tonya L. Hubbard, et al.
Final Stipulated Permanent Injunction Order (PDF)Eagle Butte Man Pleads Guilty to Stolen Firearm Violation and Witness TamperingRead the Press Release
United States Attorney Brendan V. Johnson announced that Jody Albert Hunt, age 35, of Eagle Butte, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 4, 2013 and pled guilty to Possession and Sale of a Stolen Firearm and Tampering with a Witness.
The maximum penalty upon conviction for Possession and Sale of a Stolen Firearm is 10 years of custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment. The maximum penalty upon conviction for Tampering with a Witness is 20 years of custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment. The Court could also order restitution to the victim.
The convictions arose from an incident that occurred on March 25, 2013 when Hunt stole firearms and other property from a ranch near Eagle Butte. Hunt then attempted to have a witness submit false information to federal authorities about the stolen property.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered and a sentencing date was set for August 26, 2013. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Dr. Robert B. Sperrazza Convicted of Tax Evasion and Currency StructuringRead the Press Release
Today, June 7, 2013, Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the conviction after a jury trial of Dr. Robert B. Sperrazza, age 60, formerly a resident of Lee County, Georgia. Dr. Sperrazza was convicted in United States District Court after a four day trial before the Honorable W. Louis Sands, United States District Judge for the Middle District of Georgia.
Dr. Sperrazza was convicted of all five counts in the indictment against him. Counts 1-3 of the indictment charged Dr. Sperrazza with felony tax evasion. Counts 4 and 5 charged him with currency structuring. The government’s evidence at trial proved that Dr. Sperrazza personally cashed over one million dollars in patient checks at the counter of a local bank, in Albany, Georgia. Dr. Sperrazza structured the cash transactions always in amounts under $10,000 for the purpose of evading the bank reporting requirements of federal law and for the purpose of furthering his tax avoidance scheme.
Dr. Sperrazza was formerly an anesthesiologist in Albany, Georgia, for many years. He later moved to Panama City Beach, Florida where he briefly operated a pain clinic. Dr. Sperrazza is not currently involved in the practice of medicine.
Dr. Sperrazza remains out on bond after the verdict. He will be sentenced in about three months. He faces a maximum possible sentence of five years for each count of tax evasion and a maximum sentence for ten years for each count of currency structuring, together with a fine of up to $250,000 for each of the five separate counts of conviction. The government will seek restitution and forfeiture at the sentencing hearing, as well.
“In these difficult economic times, the evasion of taxes is especially damaging to the United States and this office will pursue vigorously those who seek to enrich themselves by evading their lawful obligation to the Government,” said U.S. Attorney Michael Moore.
“Financial crimes, especially structuring, are oftentimes a method used to evade payment of taxes lawfully owed to the United States,” stated Veronica Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “The guilty verdict returned today clearly reaffirms that knowingly defying the tax laws will not be tolerated by the American people.”
The case was jointly investigated by the Criminal Investigation Division and the Special Enforcement Program of the Internal Revenue Service and by the United States Secret Service. The case was prosecuted by Assistant United States Attorney James N. Crane for the Middle District of Georgia.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
District Man Pleads Guilty to Murder in Shooting of 18-Year-Old Girl in Northwest WashingtonDefendant and Victim Met Through A Social Media Website; Victim Killed for IPhone and IPodRead the Press Release
WASHINGTON – Alexander Buckley, 22, of Washington, D.C., pled guilty to second-degree murder while armed for the January 25, 2013 slaying of a Maryland girl, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendant entered his plea in the Superior Court of the District of Columbia. The Honorable Russell Canan scheduled sentencing for August 22, 2013.
According to the government’s evidence, in January 2013, the defendant met the victim, 18-year-old Siohban Lee, through a social media website known as “Tagged,” which allows users to view profiles and photographs posted by other users. Tagged is available as an application to iPhone and Android phone subscribers and allows users to text one another via the Internet. Initially, the defendant and the victim communicated only through Tagged. Eventually, however, they exchanged phone numbers and began to communicate by phone.
Leading up to the early morning hours of January 25, 2013, the defendant and victim exchanged several text messages and phone calls, during which the victim agreed to meet the defendant for the very first time. The defendant provided the victim with instructions to take the bus into D.C. towards Georgia Avenue, N.W., where he would meet her. Sometime after 2:16 a.m., on January 25, 2013, the defendant met the victim in the area of 5th Street and Nicholson Street, N.W. The victim was carrying a purse, and was in possession of both her iPhone and iPod Touch.
At approximately 2:30 a.m., the defendant shot the victim one time in the left side of the head, just behind her left ear, killing her. The defendant took the victim’s iPhone and iPod Touch, and, leaving her purse behind, fled the scene. Law enforcement quickly located the defendant, who still had the phone in his possession. As a result, the defendant was arrested just hours after the murder.
In announcing the plea, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Ethel Gregory and Marian Russell; Lead Paralegal Sharon Newman; and Victim/Witness Advocate Marcia Rinker. Finally, U.S. Attorney Machen recognized Assistant U.S. Attorney Kimberley Nielsen, who investigated and prosecuted the case.
13-196Denver Man Sentenced for Role in Murder-for-Hire and Drug ConspiracyRead the Press Release
LAREDO, Texas – Shavar Davis, 30, of Denver, Colo., has been sentenced to 10 years in federal prison for his involvement in a murder-for-hire and drug conspiracy, United States Attorney Kenneth Magidson announced today. Davis pleaded guilty in August 2012 to a superseding indictment which charged him with conspiracy to possess with intent to distribute cocaine and marijuana and conspiracy to commit murder-for-hire.
Today, Senior U.S. District Judge George P. Kazen handed Davis two concurrent 120-month terms of imprisonment.
According to the factual basis of his plea agreement, the investigation began in January 2011, when co-defendant Marcus Mickle began negotiations with persons whom he thought were members of the Los Zetas Cartel, actually undercover Drug Enforcement Administration (DEA) agents, to purchase marijuana in return for stolen weapons. The discussions concerned the distribution of marijuana in the Columbia, S.C., area and how Mickle and another co-defendant Calvin Epps allegedly told undercover agents about a friend in the military who could provide military weapons to them. The agents were later introduced to co-defendant Kevin Corley who identified himself as an active duty officer in the Army responsible for training soldiers. According to the factual basis, Corley offered to provide tactical training for cartel members and to purchase weapons for the cartel.
The factual basis reads that over the next several months, Corley continued to communicate with undercover agents regarding the services he could provide the cartel as a result of the training, experience and access to information/equipment afforded him as an active duty soldier.
On Jan. 7, 2012, Corley traveled to Laredo and met with undercover agents. During this meeting, Corley stated he could raid a ranch located at or near Laredo containing 20 kilograms of cocaine and conduct a contract killing there. Corley proposed a $50,000 fee for this work but stated he would need to bring his own team. After further negotiation, Corley stated he would accept a $50,000 fee and five kilograms of cocaine.During March 2012, Corley allegedly arranged for 300 pounds of marijuana to be delivered to Mario Corley in Charleston, S.C. He assisted in brokering 500 pounds of marijuana and five kilograms of cocaine for Mickle and Epps and discussed the distribution of these narcotics in South Carolina, Texas and Colorado.
On March 5, 2012, Kevin Corley delivered two AR-15 assault rifles with scopes, an airsoft assault rifle, five allegedly stolen ballistic vests and other miscellaneous equipment to an undercover agent in Colorado Springs, Colo., in exchange for $10,000. At the meeting, Kevin Corley and the undercover agent allegedly again discussed the contract killing and the retrieval of the cocaine which was to occur on March 24, 2012. Kevin Corley stated he had purchased a new Ka-Bar knife to carve a “Z” into the victim’s chest and was planning on buying a hatchet to dismember the body.
On March 24, 2012, Kevin Corley, Samuel Walker and Shavar Davis traveled to Laredo and met with undercover agents, at which time they discussed the location of the intended victim, the logistics of performing the contract kill and their respective roles. The three were arrested, during which time a fourth suspect was shot and killed. A subsequent search of the vehicle in which Corley and the other co-conspirators arrived revealed two semi-automatic rifles with scopes, one bolt-action rifle with a scope and bipod, one hatchet, one Ka-Bar knife, one bag of .223 caliber ammunition and one box of .300 caliber ammunition.
Mickle is scheduled to be sentenced on June 14, 2013. Robert Corley, who pleaded guilty to the marijuana conspiracy, was previously sentenced to 30 months in prison. The remaining co-defendants are still pending sentencing to be set a later date.
The investigation leading to the charges was conducted by the DEA and the FBI with the assistance of U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Roberto Ramirez and Jody Young.Defendants Sentenced Today in Major Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Four additional defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that they operated in Wichita Falls, were sentenced today by U.S. District Judge Reed C. O’Connor. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The following defendants were sentenced today:
- Brittany Brown, 23, sentenced to 46 months
- Melanie Brown, 40, sentenced to 24 months
- Michael Eugene Peters, 35, sentenced to 84 months
- Travis Ritchie, 63, sentenced to 72 months
Melanie Brown pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and to manufacture methamphetamine. She admitted that she and others agreed to and engaged in the distribution of methamphetamine. She further admitted that on numerous occasions, she distributed quantities of methamphetamine to, and received payments for methamphetamine from customers in the Wichita Falls area. Co-conspirator Steve Ysasaga supplied the methamphetamine that she distributed.
Ritchie pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine. He admitted that on multiple occasions he distributed methamphetamine, supplied by Ysasaga, and facilitated its distribution in Wichita Falls. He also admitted that he allowed Ysasaga to distribute methamphetamine to other co-conspirators, including Franklin Dewayne Hubbard and David Calandreli, from his residence on 7th Street in Wichita Falls.
Brittany Brown pleaded guilty to one count of possession with intent to distribute and distribution of methamphetamine. In March 2012, Brittany Brown sold approximately 20 grams of methamphetamine to an undercover officer.
Peters, who was previously convicted of felony offenses, pleaded guilty to one count of being a felon in possession of a firearm. He admitted that on March 7, 2011, he possessed a loaded .380 caliber pistol that was discovered by law enforcement during a search of his vehicle subsequent to a traffic stop.
To date, 29 of the 30 defendants charged in this conspiracy have entered guilty pleas; a total of 19 defendants have been sentenced. The case against one defendant has not been resolved.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Defendant Sentenced to 36 Months in Federal Prison in Tax Refund Conspiracy CaseRead the Press Release
DALLAS — Tommy Dean Turner was sentenced yesterday to 36 months in federal prison and ordered to pay $365,626 in restitution following his guilty plea in February 2013 to one count of conspiracy to file false claims. His co-conspirator, Shaunthina Daniel Rushing, who pleaded guilty to the same offense, is scheduled to be sentenced on June 19, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to factual resumes filed in the cases, Turner conspired with Rushing, and others, to file approximately 50 fraudulent tax returns that resulted in more than $400,000 in false claims. The returns included Forms 5405, representing that the taxpayers were entitled to claim a First-Time Homebuyer Tax Credit (FTHTC) under the provisions of the Housing and Economic Recovery Act of 2008.
That refundable tax credit could be claimed if a person purchased a main home in the U.S. after April 8, 2008, and before December 1, 2009, and the person (and spouse, if married) did not own any other main home during the previous three years of the date of purchase. Qualifying taxpayers who purchased a home between January 1, 2009, and December 1, 2009, could claim up to $8,000 as the FTHBC.
Turner admitted that the co-conspirators caused bank accounts to be opened to receive the fraudulent tax refund checks, obtained and disbursed the proceeds among themselves and others and maintained detailed records and logs that identified the fraudulent tax returns the money received and the disbursement of proceeds.
Internal Revenue Service Criminal Investigation investigated. Assistant U.S. Attorney J. Nicholas Bunch and DOJ Tax Division Trial Attorney Robert A. Kemins prosecuted.
Daviess County, Kentucky Man Guilty of Embezzling from His Former EmployerRead the Press Release
OWENSBORO, Ky. – A Daviess County, Kentucky man pleaded guilty today, in United States District Court, before Chief Judge Joseph H. McKinley, Jr. to charges of accessing a protected computer to obtain something of value with the intent to defraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jason Duke, age 35, from Owensboro, Kentucky, was charged in a ten count federal grand jury indictment on February 20, 2013. According to the plea agreement, between December 11, 2007, and July 11, 2010, defendant Duke, accessed a protected computer, exceeding his authorized access, and obtained a total of approximately $101,000 in checks drawn on the account of his employer, Riverside Transport Incorporated, formerly known as BFL Trucking Inc. For the purpose of executing the fraudulent scheme, Duke accessed his employer’s computer, and obtained checks, which he cashed using an alias at a food mart in Indiana. The checks ranged in value from $146.18 to $405.92.
At sentencing, Duke faces no more than five years in prison for each of the ten counts, a $250,000 fine, an order of restitution, and a three year period of supervised release.
Sentencing is scheduled in Owensboro on September 6, 2013, at 11:00 a.m. CST before Chief Judge McKinley.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and was investigated by the Owensboro Police Department and the United States Secret Service.
Court Issues Order Barring Michigan Tax Preparer from Preparing Federal Tax Returns for OthersRead the Press Release
The U.S. District Court for the Eastern District of Michigan has issued an order permanently barring Nataki Davis, (formerly known as Nataki Barnes), a Southfield, Mich., tax preparer, from preparing federal tax returns for others for a period of five years, the Justice Department announced today. The court also ordered Davis to mail copies of the court order to all persons or entities for whom she has prepared federal tax returns, amended returns or other federal tax documents or forms since Jan. 1, 2011. Davis consented to the civil injunction order.
Davis operated a business that provided tax return preparation services under the names NKB Tax Services, NKB Tax Services, Etc. and Ready Trans. The complaint states that Davis prepared approximately 1,597 tax returns for tax processing years 2010 through 2012. The Internal Revenue Service (IRS) closed examinations on 52 of those 1,597 tax returns prepared by Davis and 48, or 92%, of those examined returns resulted in additional tax assessments. Many of the returns that Davis prepared for customers contained false deductions and credits, including inflation of deductions for charitable contributions, mortgage interest, real estate and personal property taxes paid and false education credits. Returns also included manipulation of taxpayer data for the purposes of claiming the Earned Income Tax Credit for which the taxpayers would otherwise be ineligible.
The court also issued an order permanently barring Davis’s brother Clarence Barnes Jr. from applying for an electronic filing identification number (EFIN) or assisting any other individual or entity in the application for or procurement or use of an EFIN to file a federal income tax return. Barnes consented to this civil injunction order.
The IRS lists return-preparer fraud as one of the Dirty Dozen Tax Scams for 2013. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website www.justice.gov/tax.
Related Materials:
United States v. Nataki Davis, et al.
Complaint for Permanent Injunction (PDF)
Order of Injunction with Respect to Defendant Clarence Barnes, Jr. (PDF)
Order of Injunction with Respect to Defendants Nataki Davis and NKB Tax Services, Inc. (PDF)Courier in Baltimore Heroin Distribution Ring Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Jasmine Veras-Rosario, age 35, of Bronx, New York, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to testimony at Veras-Rosario’s 14 day jury trial, she was part of a heroin trafficking organization led by Danilo Garcia and Walter Powell, that supplied heroin to distributors in Maryland and elsewhere. The evidence showed that Jasmine Veras-Rosario was a courier who worked with her husband, Jan Carlos Veras-Rosario, to deliver heroin on behalf of Garcia in New York to Powell and another conspirator, Roy Lee Clay, in Baltimore. Evidence at trial showed that Jasmine Veras-Rosario traveled from New York to Baltimore by bus, transporting heroin to Baltimore and money representing heroin proceeds from Baltimore back to New York.
At trial, the jury saw video tapes of Jasmine Veras-Rosario going to a residence in West Baltimore where the heroin was delivered. In addition, the jury heard intercepted conversations between Veras-Rosario and Powell in Baltimore in which she discussed, in coded language, both the delivery of heroin and the money owed by Powell.
The jury found that Veras-Rosario was responsible for the distribution of at least one kilogram of heroin.
Roy Lee Clay, age 47, of Baltimore, was also convicted at trial and is scheduled to be sentenced on June 14, 2013 at 9:15 a.m. Jan Carlos Veras-Roasario, age 26, of Bronx, New York, pleaded guilty to his role in the conspiracy and is scheduled to be sentence on August 2, 2013, at 12:00 p.m.
Walter Powell, age 61, of Baltimore, Maryland,was previously sentenced to 121 months in prison for the heroin conspiracy. Co-conspirator Danilo Garcia, age 43, of Bronx, New York was sentenced to 188 months in prison for the heroin conspiracy, and for distribution of heroin.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Collinsville Man Sentenced to 6.5 Years in Prison for Viewing Child PornographyRead the Press Release
Jonathan S. Mills, 36, of Collinsville, Illinois, was sentenced today in federal court to 6 ½ years in prison for Accessing with Intent to View Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Following his prison sentence, Mills will be on federal supervised release for 10 years and will also be required to register as a sex offender for the remainder of his life.
“This was a very just sentence for a very disturbing person.” said United States Attorney Wigginton. “Making such filth available to others assures that the very real children victimized in these images will continue to be victimized time and time again. I hope that this sentence will tell others to stop this abhorrent criminal behavior.”
Court documents establish that in March 2012, during an undercover investigation, agents from the United States Secret Service Southern Illinois Cyber-Crime Unit identified child pornography offered for download from Mills’ computer through the use of a peer-to-peer networking site. Based on the information gathered in the investigation, agents obtained a search warrant for Mills’ residence from which numerous items of computer media were seized. The forensic examination of Mills’ computers revealed that over 69,000 image and video files containing child pornography had been viewed by Mills. During an interview with law enforcement, Mills admitted to viewing images and video files containing child pornography on his computer.
This case is part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The investigation was conducted by the United States Secret Service Southern Illinois Cyber-Crime Unit and the Illinois State Police. The case was prosecuted by Assistant United States Attorney Ali Summers.
Cannonball Man Pleads Guilty to ArsonRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on June 7, 2013, Phoenix Martinez, 19, Cannonball, N.D., pleaded guilty in U.S. District Court to a charge of arson.
On July 25, 2012, Martinez set fire to the St. James Episcopal Church in Cannonball. The church building was a total loss.
The charge of arson carries a statutory maximum penalty of 25 years in federal prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Standing Rock Agency and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Sentencing for Martinez has been scheduled for Sept. 30, 2013, in U.S. District Court in Bismarck, N.D., at 9:00 a.m.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Californian Sentenced to 10 Years in Prison for Large-Scale Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH, Pa. - On June 5, 2013, a California man was sentenced in federal court to 10 years incarceration on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Tywan Staples, 43, of Oakland, Calif.
According to information presented to the court, the Staples was part of a conspiracy that brought over 2000 kilograms of cocaine to Pittsburgh and other cities between 2000 and 2010.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration and the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Staples.
Batesland Man Sentenced for Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Batesland, South Dakota man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 3, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Abraham Romero, age 52, was sentenced to 120 months’ imprisonment, 3 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The charge relates to Romero conspiring with others to distribute at least 100 kilograms or more of marijuana in South Dakota between October 2008 and October 2011. Romero pled guilty to the charge on July 30, 2012.
This case was investigated by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, and Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Romero was immediately turned over to the custody of the U.S. Marshal.
Army National Guard Member Indicted for Theft of Public MoneyRead the Press Release
DENVER – Thurman L. Foster, age 43, of Fountain, Colorado, was indicted by a federal grand jury in Denver on June 4, 2013 on sixteen counts of theft of public money, the United States Attorney’s Office and the United States Army, Criminal Investigation Command announced. Foster was ordered by summons to appear on June 26, 2013 before U.S. Magistrate Judge Kathleen M. Tafoya for an initial appearance.
In September of 2005, the Army National Guard Bureau, located in Arlington, Virginia, entered into a contract with a company located in Alabaster, Alabama to administer a program called the Guard Recruiting Assistance Program. The Program was designed to offer monetary incentives in the form of recruiting referral bonuses to Army National Guard soldiers, known as Recruiter Assistants (RA), to recruit other individuals to serve in the U.S. Army National Guard. After enrolling online and completing an online training course in recruiting, the RA would establish an online account to record the RA’s recruiting efforts.
If a potential soldier, known as a nominee, signed an enlistment contract, the RA who recruited that nominee would receive a $1,000 payment through direct deposit into a bank account designated by the RA, and another $1,000 if the nominee attended basic training. If the nominee had previously served in the Armed Forces, and thus did not need basic training, the RA would be paid $2,000. The RA was required to obtain a nominee’s personal information directly from that nominee in order to receive the bonus money for that nominee.
According to the indictment, Foster, an Army National Guard solider, who acted as a Recruiter Assistant, did allegedly knowingly steal $22,000 in referral bonuses for a number of nominees from the Guard Recruiting Assistance Program (GRAP), by causing the money to be directly deposited into his bank account despite the fact that he did not personally recruit these nominees.
“This reservist was caught stealing public funds,” said U.S. Attorney John Walsh. “Thanks to the hard work of the Army’s Criminal Investigation Command, the defendant is now in the process of being held accountable.”
“The Colorado National Guard will support the U.S. Attorney’s Office any way possible,” said Major General H. Michael Edwards, The Adjutant General of Colorado and commander of the Colorado National Guard. “This activity is totally contrary to the values and culture of the Colorado National Guard and will not be tolerated. This should serve as an example for those who would abuse public trust. Due to similar issues with this program, nationwide, the GRAP recruiting programs have been cancelled.”
This case was investigated by the United States Army, Criminal Investigation Command.
The defendant is being prosecuted by Assistant United States Attorney Martha A. Paluch.
####
Armed Meth Cook Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Thomas Brent Casey, 35, of Mobile, was sentenced today to a term of 84 months imprisonment on his conviction for attempt to manufacture methamphetamine and possession of a firearm in furtherance of a drug trafficking felony. Judge Kristi Dubose imposed the sentence this morning, which consisted of a term of imprisonment of 24 months for the drug offense, followed by a consecutive term of imprisonment of 60 months on the gun offense, for a total prison sentence of 84 months, or seven years. The judge ordered that Casey also serve a term of supervised release totaling five years, which will follow his release from custody. No fine was imposed, but the judge ordered that Casey pay $200 in mandatory special assessments.
This case was investigated by the Mobile County Sheriff’s Office. It was prosecuted by Gloria Bedwell in the United States Attorney’s Office in Mobile.
Armed Home Invasion Defendant Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Miller Jerrell Griffin, who uses a street name of “Click Down,” was sentenced this morning in federal court to 22 years imprisonment on charges of kidnapping, using a firearm in furtherance of a crime of violence, and conspiracy to use and carry a firearm in furtherance of a crime of violence. The indictment alleged that one of the victims in the case, identified only by the initials of “D.H.,” was shot when Griffin and his co-defendants Brandon Jarrod Nobles and Zerrick Charles Robinson kicked in the door of their Chickasaw residence in November of 2011, yelling “FBI,” and “Police.” Griffin and the others were all armed, and they demanded money and drugs. They shot “D.H.” before kidnapping “A.E.,” the second victim, at gunpoint and demanded a ransom to ensure her release. Griffin is 31 years old and is a resident of Mobile.
Judge Kristi Dubose imposed the sentence on this morning, which consisted of a term of imprisonment of 180 months on counts one and two, followed by a consecutive term of imprisonment of 84 months, for a total prison sentence of 264 months, or 22 years. The judge ordered that Griffin also serve a term of supervised release totaling five years, which will follow his release from custody. No fine was imposed, but the judge ordered that Griffin pay $300 in mandatory special assessments.
This case was investigated by the Chickasaw Police Department, the Federal Bureau of Investigations, the Mobile Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Gloria Bedwell in the United States Attorney’s Office in Mobile.
Anchorage Man convicted of identity theft sentenced to 54 months in prisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that an Anchorage man was sentenced for uttering and possessing counterfeited securities, unlawful production of false identification documents, unlawful possession of five or more false identification documents, illegal transactions with an access device, possession of stolen mail, and being a felon in possession of a weapon.
Michael Duane Rogers, 43, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 54 months in prison. Rogers was ordered to pay $142,855.06 in restitution.
According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, the indictment indicated that beginning in late 2007 and continuing through 2009, Rogers engaged in the unlawful production of counterfeit checks and false identification documents, specifically United States military identification cards and Alaska State driver’s licenses. By using the false identification documents, Rogers defrauded several area businesses by purchasing merchandise and services with the counterfeit checks. He also defrauded businesses by using stolen checks and stolen access devices. The indictment further indicated that Rogers also possessed mail stolen from the United States mail. A previously convicted felon, Rogers was also charged with being in possession of a firearm illegally.
Judge Gleason discussed the egregiousness of Rogers’s acts and the impact on his 188 victims. The financial harm was significant in itself, but many of his victims, who lived paycheck to paycheck, were harmed by the resulting over-draft fees and late payment fees which impacted not only their bank accounts, but potentially their credit ratings.Ms. Loeffler commends the Anchorage Police Department and the United States Postal Inspection Service for the investigation of this case.
Allamakee County Man Charged with Federal Gun and Drug CrimesRead the Press Release
Chad Root, 41, from Waukon, Iowa, has been charged with possessing firearms as a felon, attempting to manufacture methamphetamine, conspiring to manufacture methamphetamine, and possession of pseudoephedrine. The charges are contained in a Superseding Indictment filed on June 5, 2013 in United States District Court in Cedar Rapids.
The Superseding Indictment alleges Root possessed ten different firearms, including one with an obliterated serial number, after having been convicted of multiple felony offenses, including Burglary in the Second Degree, Possession of Burglary Tools, Attempted Burglary in the Second Degree, Unauthorized Possession of Offensive Weapons, Possession of a Firearm as a Felon, and Possession of Methamphetamine with Intent to Deliver. The Superseding Indictment also alleges that, for a period of about one year, Root agreed and conspired with others to manufacture methamphetamine, and that Root was attempting to manufacture methamphetamine on April 29, 2013. An affidavit filed in the case alleges the firearms were located in Root’s residence during the execution of a search warrant on April 29, and that Root was located in the garage with an active “one-pot” methamphetamine lab.
If convicted, Root faces a mandatory minimum sentence of 10 years’ imprisonment, a possible maximum sentence of life imprisonment, a fine of up to $8,000,000, $400 in special assessments, and at least 8 years and up to a lifetime term of supervised release following any imprisonment.
Root first appeared on April 30, 2013 in federal court in Cedar Rapids pursuant to a criminal complaint, and was ordered detained pending trial. Trial is currently set for September 9, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by Iowa Division of Narcotics Enforcement, the Iowa State Patrol, the Decorah Police Department, the Monona Police Department, the Waukon Police Department, the Postville Police Department, and the Allamakee County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-1007.
Albuquerque Man Pleads Guilty to Hobbs Act Robbery of Albuquerque BusinessRead the Press Release
ALBUQUERQUE – Joel Rodriguez, 37, of Albuquerque, N.M., pleaded guilty yesterday afternoon to robbing a business engaged in interstate commerce under a plea agreement with the U.S. Attorney’s Office. Under the terms of his plea agreement, Rodriguez will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
Rodriguez was arrested in Nov. 2011 in a two-count indictment charging him with (1) violating the Hobbs Act by robbing a business engaged in interstate commerce, and (2) being a felon in possession of a firearm. According to the indictment, Rodriguez robbed a business engaged in payday and short term loans at gunpoint on May 17, 2011. At the time, Rodriguez was prohibited from possessing firearms or ammunition because he previously had been convicted of three felony offenses in the Second Judicial District Court for the State of New Mexico, including trafficking in controlled substances and aggravated assault with a deadly weapon.
Yesterday, Rodriguez pleaded guilty to Count 1 of the indictment charging him with a Hobbs Act robbery at a Check ‘n Go, located at 2810 Coors Blvd. NW in Albuquerque on May 17, 2011. In entering his guilty plea, Rodriguez admitted entering the business, threatening an employee with violence, and demanding money.
Rodriguez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be set. Under the terms of the plea agreement, Count 2 of the indictment, charging Rodriguez with unlawful possession of a firearm, will be dismissed after Rodriguez is sentenced.
This case was brought as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Albuquerque Police Department and the Bernalillo County Sheriff’s Office, with assistance from the 2nd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Raul Torrez and Jon K. Stanford.
Airtran Employee Arrested for Attempting to Possess CocaineRead the Press Release
Allowed Contraband to Bypass Security Checkpoints
ATLANTA - Rasondo Maurice Norris has been charged in a federal criminal complaint on charges of attempting to possess cocaine with the intent to distribute.
“Security screening at our airports is vital to keeping citizens safe,” said United States Attorney Sally Quillian Yates. “By using his credentials to bypass security with backpacks of contraband, the defendant allowed what he believed to be drugs and weapons onboard commercial flights. Public safety is a responsibility we take seriously, and our office will continue to prosecute those who are endangering our citizens.”
“HSI special agents and our partners from the ATF, DEA and the Federal Air Marshal Service have identified and eliminated a significant security threat at Hartsfield-Jackson,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “While this defendant may have abused his access to secure areas at the airport for simple greed, HSI and our law enforcement partners will remain vigilant in ensuring that any potential security holes are identified and patched as quickly as possible.”
According to United States Attorney Yates, the charges and other information presented in court: Norris, 29, of Stone Mountain, Ga., worked as a baggage handler for AirTran Airlines. In May 2013, Special Agents of HSI learned that, for a fee, Norris would help people involved in criminal activity bring contraband onto airplanes by using his security clearance to bypass security.
On or about May 23, 2013, an HSI Special Agent, acting in an undercover capacity, gave the defendant a backpack containing what was represented to be five kilograms of cocaine. Norris took the backpack from the undercover agent, bypassed security, and returned the backpack back to the agent once the agent cleared security. In a similar manner, on May 30, 2013, Norris again bypassed security with a backpack, this time containing what was represented to be $500,000 in drug proceeds. Finally, on June 5, 2013, Norris once more bypassed security with a backpack carrying what was represented to be three kilograms of cocaine, and a Mack 11 automatic firearm (which had been previously rendered inert by law enforcement agents), a magazine and a silencer. Norris was paid between $600 and $800 each time he bypassed security with the contraband.
The criminal complaint charges two counts of attempting to possess cocaine with the intent to distribute. The charges carry a maximum sentence of life imprisonment for count one and 40 years in prison for count two and a fine of up to $10,000,000 for count one and $5,000,000 for count two. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Norris is scheduled for a bond hearing on June 12, 2013 at 1:30 p.m. before U.S. Magistrate Judge Vineyard.
The agents who investigated this case are assigned to the David G. Wilhelm OCDETF Strike Force and are employed by the following law enforcement agencies: the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service Criminal Investigation; and the Drug Enforcement Administration.
Assistant United States Attorney Kamal Ghali is prosecuting the case.
Members of the public are reminded that the complaint contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
6 June 2013
Waterbury Crack Dealer Sentenced to 27 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that TYRONE BURRUS, 48, of Waterbury, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 27 months of imprisonment, followed by four years of supervised release, for selling crack cocaine.
According to court documents and statements made in court, in early 2012, the Bureau of Alcohol, Tobacco, Firearms and Explosives began an investigation into the distribution of crack cocaine and related criminal activity in the area of Locust Street in Waterbury. On two occasions in April 2012, BURRUS sold crack to individuals working with law enforcement.
On January 24, 2013, BURRUS pleaded guilty to one count of possessing with the intent to distribute and distributing cocaine base (“crack”).
BURRUS’s criminal history includes 15 felony convictions, and he currently has additional crack distribution charges pending in state court.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Waterbury and Bridgeport Police Departments. This case is being prosecuted by Assistant United States Attorney Michael E. Runowicz.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Undercover Investigation Results in Three Arrests and Seizure of Fifteen Pounds of MethamphetamineRead the Press Release
ALBUQUERQUE – Arturo Reynaga, 29, of Los Lunas, N.M., Joaquin Alire, 29, of Albuquerque, N.M., and Jose Lopez-Hernandez, 31, a Mexican national residing in Belen, N.M., made their initial appearance this morning in federal court on a criminal complaint charging them with conspiracy and possession of methamphetamine with intent to distribute. All three remain in federal custody pending detention hearings scheduled for June 10, 2013.
Reynaga, Alire and Lopez-Hernandez were arrested yesterday by the FBI after they attempted to sell approximately 15 pounds of methamphetamine to an undercover officer. According to the criminal complaint, the FBI arrested Reynaga in the vicinity of the Hard Rock Casino, located on Isleta Pueblo, N.M., and seized the methamphetamine from the vehicle in which Reynaga had traveled to the Casino. The complaint further alleges that Alire and Lopez-Hernandez were arrested after additional investigation revealed that they allegedly supplied the methamphetamine that Reynaga was planning to sell to the undercover officer. Alire also was arrested in the vicinity of the Hard Rock Casino and Lopez-Hernandez was arrested in Albuquerque.
If convicted on the charges in the complaint, each of the three defendants faces a mandatory minimum of ten years to a maximum of life in prison and Lopez-Hernandez will be deported after serving his prison sentence. Charges in criminal complaints are only accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque Division of the FBI with assistance from the Las Cruces-Doña Ana Metro Narcotics Agency, and is being prosecuted by Assistant U.S. Attorney Samuel A. Hurtado.U.S. Attorney Joins FTC and Florida Attorney General to Spotlight Telemarketing Schemes Aimed at Defrauding Time-Share Unit OwnersRead the Press Release
Sixty-nine defendants charged to date by USAO on timeshare resale telemarketing fraud
At a press conference held in Miami today, Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Darin M. Didier, Acting Supervisory Special Agent, Federal Bureau of Investigation (FBI), Miami Field Office, and Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Field Office, joined Charles A. Harwood, Acting Director, Federal Trade Commission’s (FTC) Bureau of Consumer Protection, Florida Attorney General Pam Bondi, and Jay Levenstein, Deputy Commissioner, Florida Department of Agriculture and Consumer Services, to highlight to their respective offices’ efforts in combatting timeshare property resale fraud in Florida and around the country.
According to the FTC, 191 actions were brought by the FTC and its law enforcement partners around the nation. Of these actions, the U.S. Attorney’s Office for the Southern District of Florida claimed 18 criminal cases, charging a total of 69 defendants, between 2011and 2013.
U.S. Attorney Wifredo A. Ferrer, focusing his remarks on Florida, stated, “We cannot allow our elderly and vulnerable real property owners to continue to be the target of fraud schemes. For that reason, our respective offices – federal and state, criminal and civil – have joined forces to combat Florida-based fraud schemes victimizing timeshare unit owners across the country. These victims, many of them elderly or in financial distress, looked to sell their units to help make ends meet or pay other bills. Instead, they were defrauded out of more than $14 million in total. Such fraud will not be tolerated.”
According to Charles A. Harwood, Acting Director of the Federal Trade Commission’s Bureau of Consumer Protection, “Timeshare resale scammers have cheated tens of thousands of timeshare owners out of tens of millions of dollars by convincing them to pay for a false promise. But law enforcement at virtually every level of government is working together to put an end to the problem.”
“We will continue to pursue scam artists who attempt to essentially steal from timeshare owners, and the Timeshare Resale Accountability Act that I worked with the Legislature on in 2012 is already having a great effect on ending this type of fraud. With strong partnerships among federal, state and local leaders, we will continue to protect Floridians,” stated Florida Attorney General Pam Bondi.
“If you think you are the victim of a timeshare scam, file a complaint with your state attorney general’s office and the Internet Crime Complaint Center,” said Darin M. Didier, acting Supervisory Special Agent assigned to FBI Miami Division. “To avoid becoming a victim of this type of crime take a few prudent steps such as; do not agree to anything on the phone or online until you have had a chance to check out the reseller, get all information in writing, verify that the reseller’s agents are properly licensed and ask about fees and timing. Go to the FBI’s and FTC’s websites for more important tips.”
Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Field Office, stated “The timeshare resale fraudsters sound legitimate and convincing, but put pressure on victims to make decisions quickly. Hopefully the arrests of these fraudsters and dismantling of their criminal organizations will bring light to this rising fraud and educate the community. Our goal is to stop the crime and educate community members on these scams so they don’t become victims.”
“These scam artists defrauded consumers in Florida and across the country out of millions of dollars, often through illegal telemarketing,” said Commissioner of Agriculture Adam H. Putnam. “We’re proud to partner with other state and federal officials to protect consumers from further harm and bring justice to those who have violated the law.”
Among the criminal cases recently prosecuted by the U.S. Attorney’s office are the following:
1. U.S. v. Pappalardo et al.,, 13-60049-CR-Dimitrouleas (15 defendants charged) 2. U.S. v. Faraguna et al.,11-60247-CR-Marra (13 defendants charged) 4. U.S. v. Davis, 11-60268-CR-Hurley (1 defendant charged) 5. U.S. v. Friedman et al., 12-60019-CR-Scola (4 defendants charged) 6. U.S. v. Spinelli et al., 12-60149-CR-Scola (5 defendants charged) 7. U.S. v. Crapella and Walker, 12-mj-6114-Rosenbaum (2 defendants chargedThese seven cases charge a total of 41 defendants with various counts, including conspiracy to commit mail fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
According to the charging documents and other documents filed with the court, Timeshare Mega Media and Marketing Group, Inc. (TMMMG) was a timeshare telemarketing room that operated in Fort Lauderdale, Florida, from July 2009 through May 2010. According to the allegations in the indictment, the defendants conspired to unlawfully enrich themselves by making false representations over the telephone to individuals who were trying to sell their time-share units. Among the false statements, the defendants would tell customers, most of who lived outside of the State of Florida, that the defendants had successfully sold their time-share unit and asked the customer to pay a fee to finalize the sale, which fee would purportedly be refunded at closing. This fee ranged from at least $1,996 to as much as $10,000. In fact, however, there were no buyers for their units, and the defendants kept the victims’ money for their personal use. During the ten months that TMMMG was in business, it fraudulently induced more than 2,000 victims to send approximately $5,000,000 to TMMMG.
Among the 41 defendants are the owners of TMMMG, Pasquale Pappalardo and Joseph Crapella, 33 top salespeople, and 6 others who handled customer service, verification, leads, payroll and other vital functions for TMMMG. To date, 23 of the 41 defendants charged in these 7 related cases have pled guilty and have received sentences ranging from 5 years to 3 months in prison, 6 defendants have pled guilty and are awaiting sentencing, 2 defendants are fugitives, 1 defendant is deceased, and the remaining 9 defendants are pending trial. If convicted, the defendants face a maximum statutory sentence of up to 20 years in prison on each count of conspiracies to commit mail fraud, wire fraud, and money laundering. This series of cases is being prosecuted by Assistant U.S. Attorney Jeffrey Kaplan.
In addition to the cases identified above, the Northern Division of the United States Attorney’s Office prosecuted 11 cases, which charged a total of 28 defendants with various counts, including conspiracy to commit mail fraud and conspiracy to commit wire fraud. These 11 cases involved two timeshare fraud rings which operated in Palm Beach County, but solicited victims throughout the United States. The defendants would typically operate a company for 4 to 10 months, and then, to avoid detection by law enforcement, close the company and reopen under a new name. The new company would operate in the same fashion as the original company with many of the same owners, managers and salespeople.
The first ring involved 6 companies which solicited approximately $7 million in advance fees from approximately 3,000 timeshare owners. The second ring involved 7 companies which solicited approximately $2.7 million from approximately 1,200 timeshare owners. According to the charging documents and other documents filed with the court, both rings involved essentially the same scheme. Defendants in these cases cold called timeshare owners and made false representations to induce them to pay advance fees for purported timeshare marketing and sales services. Among the false statements, the defendants would tell customers that the companies had successfully sold or would sell their timeshare units, that the companies would handle the appraisals, title searches, closings, and other services associated with the sales, and that the companies would use the advance fees to cover the necessary costs associated with the sales. In truth, the defendants never located a single buyer, never completed a single sale of a timeshare unit, and never used the advance fees for anything other than their own personal benefit.
Among the 28 defendants prosecuted in connection with these 2 rings were the company owners, managers, top salespeople, and an individual who allowed one of the companies to use his merchant account to process victim credit card payments. To date, 18 of the 28 defendants charged in these 11 cases have pled guilty and received sentences ranging from 6 months to 151 months, 5 defendants have pled guilty and are awaiting sentencing, 4 defendants are scheduled to plead guilty, and 1 is a fugitive. The defendants in these cases face a maximum statutory sentence of up to 20 years in prison on each conspiracy count. These cases are being prosecuted by Assistant U.S. Attorneys Adrienne Rabinowitz and Kerry Baron.
A complete list of the cases prosecuted by the United States Attorney’s Office for the Southern District of Florida is attached.
Mr. Ferrer commended the investigative efforts of the FBI and U.S. Postal Inspection Service in the criminal cases. Mr. Ferrer also recognized the invaluable support and assistance provided by the FTC during these investigations.
Attachment:
List of Cases (PDF)
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.
Two Western Washington Men Plead Guilty to Child Pornography Offenses in Separate ProsecutionsRead the Press Release
Two men, who reside in Western Washington, pleaded guilty today in U.S. District Court in Seattle to child pornography related offenses, announced U.S. Attorney Jenny A. Durkan. Both men, 53-year-old CHARLES GLENN PERKINS of Burien and 29-year-old CONOR RYAN KELLY BRODERICK, of Anacortes, have prior convictions for sex offenses. PERKINS will be sentenced by U.S. District Judge Ricardo S. Martinez for receipt of child pornography on September 12, 2013. BRODERICK will be sentenced for possession of child pornography by U.S. District Judge Thomas S. Zilly on September 12, 2013. Both men remain in custody.
According to records filed in the case, BRODERICK was arrested November 3, 2012 by Anacortes Police after a stalking incident. The stalking followed a report to police by two different women claiming BRODERICK was threatening to post nude pictures of them on the internet unless they sent him additional pictures. While incarcerated, BRODERICK called an acquaintance and told the person to remove a memory card from his computer. Investigators who had been monitoring the jail calls, obtained a search warrant and ultimately determined the memory card and other media storage devices contained more than 100 images of child pornography. Later, while released on bail, BRODERICK entered into a “sexting” relationship with a girl in Kentucky who identified herself as a 14-years-old. BRODERICK has these prior convictions: Rape of a Child in the Third Degree (three counts), in Skagit County (2007) and Dealing in Depictions of Minors Engaged in Sexually Explicit Activity (two counts), in Skagit County (2007). BRODERICK faces a mandatory minimum ten years in prison.
In the second child pornography case, PERKINS was identified by law enforcement in the current case when he tried to enter Canada on December 29, 2012 and was denied entry due to his prior convictions for sex offenses. PERKINS is a registered sex offender in Washington State having previously been convicted of child molestation offenses in Kitsap County in 1987 and 1990. The Canadian Border agents sent PERKINS’s laptop for screening and investigators noted two pictures of nude children. Agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations obtained a search warrant for PERKINS’s Burien residence. A review of his digital media revealed that he had received and possessed approximately 610 images and 10 videos of minors engaged in sexually explicit conduct. Because of his prior convictions PERKINS faces a mandatory minimum 15 years in prison.
Both men were prosecuted 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
Both cases are being prosecuted by Assistant United States Attorney Jerrod Patterson. Mr. Patterson serves as the Project Safe Childhood coordinator for the U.S. Attorney’s Office. Investigators from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Anacortes Police Department investigated these cases.
Two Plead Guilty in Child Sex-Trafficking CaseRead the Press Release
FORT WORTH, Texas — Deundrea R. Miller, 27, appeared in federal court yesterday, before U.S. Magistrate Judge Jeffrey L. Cureton, and pleaded guilty to a superseding information charging conspiracy to commit sex trafficking of a minor. Co-defendant Brittanie S. Brattain, 22, pleaded guilty on May 1, 2013, to the same offense. Each defendant faces a maximum statutory penalty of life in prison and a $250,000 fine. U.S. District Judge Terry R. Means is scheduled to sentence Miller on November 12, 2013, and Brattain on October 15, 2013; both defendants remain in custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Prior to September 2012, Brattain had a relationship with Miller. In late September or early October 2012, Brattain and Miller met Jane Doe. They agreed to take pictures of Jane Doe to post advertisements for “dates” on Back Page that would be used for commercial sex acts. Brattain and Miller used a cell phone to take the pictures and post the advertisements.
Some of the commercial sex acts involving Jane Doe occurred in motels in East Fort Worth. After the commercial sex acts, Jane Doe would give the money she received to Miller. Miller and Brattain harbored and maintained Jane Doe while they stayed in these motels.
In January 2013, Miller and Brattain rented a duplex in Fort Worth where commercial sex acts involving Jane Doe also occurred. Also in January 2013, Miller and Brattain posted “escort” advertisements involving Jane Doe. While Jane Doe stayed with Miller and Brattain, Miller and Brattain received financial benefit from her participation in commercial sex acts, all in reckless disregard that Jane Doe was under age 18.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and other members of the North Texas Anti-Trafficking Team, including the Arlington, Fort Worth and Dallas Police Departments, the Texas Department of Public Safety and the Texas Attorney General’s Office. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Two from Sioux Falls Charged with Obstruction of Justice and False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that two people from Sioux Falls, South Dakota have been indicted by a federal grand jury for Obstruction of Justice and False Statement. These indictments are related to the Operation Black Widow case, where ten individuals were arrested and indicted in federal court in May as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lynn Barbara Van Laar, age 64, and Randall Ray Jurgens, a/k/a “Jughead” age 53, were indicted on June 4, 2013. Van Laar made her intial court appearance on June 4, and Jurgens on June 5. Both appeared before U.S. Magistrate Judge John E. Simko and pled not guilty to the charges.
The maximum penalty upon conviction for Obstruction of Justice is up to 20 years in custody and/or a $250,000 fine; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The maximum penalty upon conviction for the False Statement charge is up to 5 years in custody and/or a $250,000 fine; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On or about between April 26, 2013 and May 9, 2013, Van Laar and Jurgens allegedly obstructed a federal criminal investigation. Additionally they both told a Federal Bureau of Investigation Special Agent that they did not disclose any information regarding an ongoing federal criminal investigation. Also, Van Laar claimed she did not review any documents related to the investigation.
The charges are merely accusations and Van Laar and Jurgens are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. First Assistant U.S. Attorney Randy Seiler is prosecuting the case.
Both were released with conditions pending trial.
Two Cibola County Men Plead Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Anthony Lusk, 24, of San Rafael, N.M., and Peter Valdez, 26, of Grants, N.M., pleaded guilty this morning to federal methamphetamine trafficking charges under plea agreements with the U.S. Attorney’s Office.
Lusk and Valdez were two of the 13 Cibola County, N.M., residents charged with drug trafficking and firearms offenses as a result of a 22-month multi-agency investigation into drug trafficking in Cibola County, which was led by the DEA and the New Mexico State Police with assistance from the Grants Police Department. The investigation, which was code-named “Operation Ice Cave” and concluded with an arrest operation on March 5, 2013, was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. Eight of the 13 defendants were charged with federal drug trafficking and firearms charges and the remaining five were charged with state drug trafficking charges.
Lusk and Valdez were arrested on March 5, 2013, based on a two-count federal indictment charging them with (1) conspiracy to distribute methamphetamine, and (2) distribution of methamphetamine. During this morning’s plea hearings, Lusk and Valdez each entered a guilty plea to Count 1 of the indictment, the conspiracy count.
In his plea agreement, Lusk admitted that on Oct. 3, 2012, he negotiated a three ounce methamphetamine transaction with an individual who turned out to be an undercover officer. In his plea agreement, Valdez admitted that on Oct. 3, 2012, he assisted Lusk in packaging the three ounces of methamphetamine that Lusk agreed to sell to the undercover officer. Valdez also admitted that he delivered the three ounces of methamphetamine to the undercover officer in exchange for $4,050. Both men acknowledged that the methamphetamine transaction took place in the vicinity of the Sky City Casino, which is located in Cibola County.
Lusk and Valdez are in federal custody pending their sentencing hearings, which have yet to be scheduled. At sentencing, each man faces a maximum sentence of life in prison.
Paul Barker, 46, and Leena Martinez, 31, and Nestor Valdez, 49, of San Rafael, were charged with violating the federal narcotics laws. Martinez and Nestor Valdez were arrested on March 5, 2013, and remain in federal custody. Martinez and Nestor Valdez each entered a not guilty plea and each is scheduled for change for plea hearings next week. Barker has yet to be arrested and is considered a fugitive.
Adrian O. Leyva-Villalobos, 41, is a Mexican national who was residing in San Rafael when he was arrested on a federal firearms charge on March 5, 2013. Leyva-Villalobos has entered a not guilty plea and is scheduled for a change of plea hearing next week.
Rachel Basurto, 52, of Grants, who was arrested on federal drug trafficking charges, and Alberto Lujan-Ruiz, 50, a Mexican national who were residing in San Rafael, who was arrested on a federal firearms charge, have entered not guilty pleas and are pending trial.
The charges against the defendants who have not entered guilty pleas are merely accusations and the defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
These federal cases were investigated by the DEA and the New Mexico State Police with assistance from the Grants Police Department and are being prosecuted by Assistant U.S. Attorney Joel R. Meyers and Shammara H. Henderson.
Two Charged with Witness Tampering in Joint Woonsocket Police, DEA InvestigationRead the Press Release
PROVIDENCE, R.I. – Joshua Rojas, a/k/a Joshua Ramos, 19, of Woonsocket, and Victor Burgos, a/k/a Fat Boy, 20, of Providence, have been charged in federal court in Providence with witness tampering in connection with a joint Woonsocket Police Department and Drug Enforcement Administration (DEA) investigation into the alleged trafficking of Fentanyl Acetyl analogue, a Schedule 1 controlled substance.
In addition, Burgos has been charged with one count each of possession with the intent to distribute Fentanyl Acetyl analogue and distribution of Fentanyl Acetyl analogue.The charges were announced by United States Attorney Peter F. Neronha, Woonsocket Police Chief Thomas S. Carey and John J. Arvanitis, Special Agent in Charge of the DEA’s New England Field Division.
According to information presented to the court, it is alleged that Rojas and Burgos took threatening actions and made threatening remarks in an effort to intimidate a person cooperating with law enforcement in an investigation into the alleged trafficking of Fentanyl Acetyl analogue.
Burgos, who has been detained for violating terms of his release on a federal criminal complaint issued on May 17, 2013, charging him with distribution and possession with the intent to distribute Fentanyl Acetyl analogue, was charged by way of a federal grand jury indictment returned on June 5, 2013, with one count each of use of threat of physical force against a person with the intent to influence, delay or prevent the testimony any person in an official proceeding; distribution of Fentanyl Acetyl analogue; and possession with the intent to distribute Fentanyl Acetyl analogue.
Burgos is scheduled to be arraigned on June 11, 2013. If convicted, Burgos faces a maximum sentence of up to 20 years in federal prison on each charge.
Rojas, who was charged by way of a federal criminal complaint on June 4, 2013, with one count of intentionally harassing another person and thereby attempting to hinder, delay, prevent or dissuade any person from attending or testifying in an official proceeding, was ordered detained following an initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan.
If convicted, Rojas faces a maximum sentence of up to 3 years in federal prison.
An indictment and a criminal complaint are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Three Georgia Residents Sentenced for Their Roles in Bribery Scheme Related to the Award of Government ContractsRead the Press Release
A former employee at the Marine Corps Logistics Base Albany (MCLB-Albany) and two local businessmen were sentenced today for their roles in a bribery scheme related to the award of contracts for machine products that resulted in approximately $907,000 in fraudulent overcharges to the U.S. Marines, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Michelle Rodriguez, 32; Thomas J. Cole, 43; and Fredrick W. Simon, 55, all of Albany, Ga., were sentenced today by U.S. District Judge W. Louis Sands in the Middle District of Georgia. Rodriguez was sentenced to 70 months in prison and ordered to pay $161,000 in restitution; Cole was sentenced to 46 months in prison and ordered to pay $209,000 in restitution; and Simon was sentenced to 32 months in prison and ordered to pay $74,500 in restitution. Each is also subject to a $907,000 restitution order and three years of supervised release.
During her guilty plea in February 2013, Rodriguez, a supply technician in the Maintenance Center Albany (MCA), admitted to participating in a scheme to award contracts for machine products to Company A and Company B, companies operated by Cole and Simon. Cole and Simon pleaded guilty to bribery charges related to the same scheme in January 2013 and cooperated with the government’s criminal investigation. The MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been utilized in military missions in Afghanistan and Iraq, as well as other parts of the world. To accomplish the scheme, Rodriguez would transmit bid solicitations to Simon via facsimile or email, and then usually follow that communication with a text message specifying how much Company A should bid. Simon, on Company A’s behalf, and with Cole’s knowledge, bid the amount specified by Rodriguez on each order, which was normally in excess of fair market value. Rodriguez was then paid $75 in cash for each order awarded to Simon and Cole during the previous week. According to court records, during the relevant period Rodriguez awarded Cole and Simon’s companies nearly 1,300 machine product orders, all of which were in exchange for bribes paid to Rodriguez.
Rodriguez further admitted that in 2011, she began routing some orders through a second company, Company B, owned by Cole, because the volume of orders MCA placed with the first company was so high. Company A, however, continued to perform the required services. Court records state that Rodriguez received approximately $161,000 in bribes during the nearly two-year scheme, while Cole and Simon personally received $209,000 and $74,500, respectively. Court records also indicate that the total loss to the U.S. Marines from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Defense Criminal Investigative Service. The case was prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.
Three Georgia Residents Sentenced for Their Roles in Bribery Scheme Related to the Award of Government ContractsRead the Press Release
WASHINGTON – A former employee at the Marine Corps Logistics Base Albany (MCLB-Albany) and two local businessmen were sentenced today for their roles in a bribery scheme related to the award of contracts for machine products that resulted in approximately $907,000 in fraudulent overcharges to the U.S. Marines, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.Michelle Rodriguez, 32; Thomas J. Cole, 43; and Fredrick W. Simon, 55, all of Albany, Ga., were sentenced today by U.S. District Judge W. Louis Sands in the Middle District of Georgia. Rodriguez was sentenced to 70 months in prison and ordered to pay $161,000 in restitution; Cole was sentenced to 46 months in prison and ordered to pay $209,000 in restitution; and Simon was sentenced to 32 months in prison and ordered to pay $74,500 in restitution. Each is also subject to a $907,000 forfeiture order and three years of supervised release.
During her guilty plea in February 2013, Rodriguez, a supply technician in the Maintenance Center Albany (MCA), admitted to participating in a scheme to award contracts for machine products to Company A and Company B, companies operated by Cole and Simon. Cole and Simon pleaded guilty to bribery charges related to the same scheme in January 2013 and cooperated with the government’s criminal investigation. The MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been utilized in military missions in Afghanistan and Iraq, as well as other parts of the world. To accomplish the scheme, Rodriguez would transmit bid solicitations to Simon via facsimile or email, and then usually follow that communication with a text message specifying how much Company A should bid. Simon, on Company A’s behalf, and with Cole’s knowledge, bid the amount specified by Rodriguez on each order, which was normally in excess of fair market value. Rodriguez was then paid $75 in cash for each order awarded to Simon and Cole during the previous week. According to court records, during the relevant period Rodriguez awarded Cole and Simon’s companies nearly 1,300 machine product orders, all of which were in exchange for bribes paid to Rodriguez.
Rodriguez further admitted that in 2011, she began routing some orders through a second company, Company B, owned by Cole, because the volume of orders MCA placed with the first company was so high. Company A, however, continued to perform the required services. Court records state that Rodriguez received approximately $161,000 in bribes during the nearly two-year scheme, while Cole and Simon personally received $209,000 and $74,500, respectively. Court records also indicate that the total loss to the U.S. Marines from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Defense Criminal Investigative Service. The case was prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Testech and Ceso Agree to Pay $2.88 Million to Resolve False Claims Act AllegationsRead the Press Release
The Justice Department announced today that a number of related entities and individuals agreed to pay $2,883,947 to resolve allegations that they falsely claimed disadvantaged business status on a number of federally-funded transportation projects. These entities are Dayton-based TesTech, Inc. and its owner, Sherif Aziz, and Dayton-based CESO Testing Technology, Inc., CESO International, LLC, and CESO, Inc. (collectively CESO), and their owners, David and Shery Oakes.
“The Disadvantaged Business Enterprises program helps businesses owned by minorities and women work on federal transportation projects,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. “Those who falsely claim credits under the program to obtain federal funds victimize both the businesses that the program is designed to assist and the American taxpayer.”
The Department of Transportation’s Disadvantaged Business Enterprise (DBE) program encourages the use of woman- and minority-owned businesses on federally-funded transportation projects. Contractors on such projects must make good-faith attempts to meet DBE participation goals as a condition of federal funding.
"DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level playing field,” said Michelle McVicker, regional Special Agent-in-Charge of the DOT’s Office of Inspector General. “Working with our Federal, State, and local law enforcement and prosecutorial colleagues, we will vigorously pursue those who violate the law, and expose and shut down fraud schemes that adversely affect public trust and DOT-assisted airport and highway programs.”
The settlement announced today resolves allegations that the defendants claimed DBE status for TesTech, a civil engineering firm, on numerous highway and airport construction projects in Ohio, Indiana, Michigan, and Kentucky. The United States alleged that TesTech was owned and controlled by CESO, a non-DBE firm, and its owners, the Oakes, who falsely claimed that TesTech was owned by Aziz and qualified as a minority-owned business in order to take advantage of the DBE program.
"The message is that we will work to uphold the integrity of the Disadvantaged Business Enterprise (DBE) and similar programs," US Attorney Carter Stewart said. “Those who attempt to defraud the system will be held accountable.”
The allegations resolved by today’s settlement were initially alleged in a whistleblower lawsuit filed under the False Claims Act by Ryan Parker, a former employee of TesTech. Under the False Claims Act, private citizens can sue on behalf of the United States and share in the recovery. Mr. Parker will receive $562,370 of the settlement amount.
This case was handled by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of Ohio, and the Department of Transportation Office of Inspector General.
The False Claims Act suit was filed in the United States District Court for the Southern District of Ohio, and is captioned United States ex rel. Parker v. TesTech et al., No. 2:10-cv-1028 (S.D. Ohio). The claims settled in this case are allegations only; there has been no determination of liability.
Sugar Land Woman Sentenced in Mortgage Fraud SchemeRead the Press Release
HOUSTON – Rain Joakim-Anwa Davis, aka Jeri Lynn Hardin, 50, has been handed a 33-month federal sentence following her conviction on two counts of wire fraud, United States Attorney Kenneth Magidson announced today. Davis pleaded guilty Jan. 22, 2013.
Davis was indicted in September 2012 along with co-defendant Sarah Michelle Black. They were accused of perpetrating a scheme to defraud lenders of mortgage loans, by means of false and fraudulent information and claims made in connection with mortgage loan applications.
Specifically, Davis admitted she purchased two residential properties - one in Dallas and one in Houston. Loan funds from bank accounts of lenders were then transmitted in interstate commerce, through the Federal Reserve Bank of New York, by means of a wire communication into the bank accounts of the title companies.
As was true of most of the other loans that were part of this scheme, only the first few monthly mortgage payments were made, and the mortgage loans went into default for non-payment. More than $1.5 million in fraudulent loans were obtained as part of this mortgage fraud scheme.
U.S. District Judge David Hittner sentenced Davis today to 33 months on each count of conviction to run concurrently. Following her release from prison, she will also be required to serve three years on supervised release. The court further ordered restitution in the amount of $240,152.79.
Black also pleaded guilty in relation to this scheme and will be sentenced June 17, 2013.
The investigation leading to the charges in this case was conducted by the FBI. Assistant United States Attorney Carolyn Ferko prosecuted the case.
Steven Patrick Garcia, Jr. 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 June 6, 2013, before U.S. District Judge Sam E. Haddon, STEVEN PATRICK GARCIA, JR., a 36-year-old resident of San Jose, California, appeared for sentencing. GARCIA was sentenced to a term of:
Prison: 24 months
Special Assessment: $200
Restitution: to be determined
Supervised Release: 3 years
GARCIA was sentenced in connection with his guilty plea to trafficking in eagle/hawk feathers.
In an Offer of Proof filed by Georgiann G. Cerese, Senior Trial Attorney for the United States Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Mark S. Smith, the government stated it would have proved at trial the following:
GARCIA maintained an account with MySpace beginning in early 2006. In November and December 2008, GARCIA communicated with an individual in California via MySpace, and later sold the individual hawk feathers for $200 and a golden eagle feather for $25. Within a November 30, 2008 MySpace message, GARCIA provided a P.O. Box in Lame Deer as the location to send payment for these feathers.
Western Union records show a $225 payment from the California purchaser to GARCIA on December 1, 2008. GARCIA provided the tracking number for the package of feathers in a MySpace message on December 2, 2008. The California purchaser was interviewed by a U.S. Fish & Wildlife Service Special Agent, and voluntarily abandoned the hawk feathers sold by GARCIA. The hawk feathers were forensically identified as twelve tail feathers of either ferruginous hawk or red-tailed hawk.
In January 2009, an undercover Fish & Wildlife Service Special Agent ("SA") sent GARCIA a MySpace friend request. GARCIA responded, ". . . When you add me, check out what I have in stock now. . ." The SA observed approximately seventy photographs of migratory birds on GARCIA's MySpace. Most of the feathers were un-worked tail feathers and included feathers of bald eagles, golden eagles, ferruginous hawks, rough-legged hawks and northern flickers.
On January 27, 2009, the SA inquired with GARCIA about a rough-legged hawk tail and a bald eagle tail on GARCIA's MySpace page. GARCIA replied that the "bald is gone" and gave a price of $100 for the rough-legged hawk.
On January 28, 2009, the SA asked if GARCIA had any other bald eagle tails available and asked about prices for hawks. GARCIA provided prices for ferruginous and rough-legged hawk tails, and said that "BE tails or wings are on there [sic] way." The SA wrote that he wanted to purchase "ferruginous tail number 2 for 150" and "winterhawk tail number 8 for 100." Rough-legged hawks are commonly called winterhawks. GARCIA agreed to sell the two hawk tails for $250 and suggested that they "wait till I get a baldie in before I take any funds . . . I have one now just haven't cleaned it up yet . . . SO I'll let you know by this weekend so I can clean it and see if it's worthy of selling . . ." GARCIA wrote "My assasins [sic] thank you. They are using the money to pay for graduation stuff and what not . . ." The SA mailed a money order to GARCIA in Lame Deer on January 30, 2009. On February 7, 2009, the SA received twelve ferruginous hawk and twelve rough-legged hawk tail feathers.
On February 18, 2009, GARCIA made the following offers to sell to the SA: "the first set of golden wings is 400," "the all white tail 350," "the bald set of wings is 300. . ." GARCIA also stated ". . . [t]he winter season is over so the birds will not be coming in to [sic] regularly . . . everyone is holding on to the secret stash box to charge high prices this pow wow season . . ." The SA replied that he would take the "first set of golden wings" for $400. On February 18, 2009, GARCIA stated that he "just made a call to my assasins [sic] from up north and they are going to see what they can find for me . . ." GARCIA provided his P.O. Box number in Lame Deer, and the SA mailed a money order to GARCIA on February 19, 2009.
On February 28, 2009, the SA received golden eagle wing feathers (one set of two wings) which he had purchased from GARCIA for $400. The feathers were later forensically identified as wing feathers of a subadult golden eagle.
GARCIA was interviewed by U.S. Fish & Wildlife Service agents on March 11, 2009. During the interview, GARCIA acknowledged he could not legally possess feathers because he was not an enrolled member of a federally recognized tribe. GARCIA had known for fifteen years that it was illegal to sell, kill and buy eagles and other birds. GARCIA had known for the past five years that it was illegal to trade eagles and other birds.
The protection of Montana's wildlife, including migratory birds, is a priority of the U.S. Attorney's Office for the District of Montana. Today's prosecution and sentence demonstrate that individuals that attempt to profit from the unlawful taking of golden eagles, bald eagles, hawks, and all other migratory birds will be investigated, prosecuted, and punished accordingly." U.S. Attorney for the District of Montana, Michael W. Cotter.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that GARCIA will likely serve all of the time imposed by the court. In the federal system, GARCIA does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the U.S. Fish and Wildlife Service.
Stafford DME Owner Heads to Federal Prison for Health Care Fraud and Identity TheftRead the Press Release
HOUSTON – Abdul Waheed Alex Shittu, 55, a naturalized United States citizen from the Federal Republic of Nigeria, has been sentenced to 81 months in federal prison following his convictions of conspiracy to commit health care fraud and aggravated identity theft, United States Attorney Kenneth Magidson announced today.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Shittu a sentence of 57 months for conspiring to commit health care fraud and 24 months for aggravated identity theft which must be served consecutively for a total sentence of 81 months in federal prison. He was further ordered to pay $597,865.19 in restitution to Medicare and Medicaid.
Shittu, the owner of S & S Medical Supply Etc. located in Stafford, admitted during his re-arraignment on Nov. 14, 2012, that he billed Medicare and Medicaid for DME listed on purchased physician orders, even though he did not deliver all the DME and he delivered durable medical equipment (DME) to Medicare and Medicaid beneficiaries he knew did not want or need the supplies. Shittu also admitted he gave his billing agent the incorrect coding information so he would receive more money from Medicare and Medicaid for each DME claim. Between Dec. 1, 2008, and Sept. 30, 2009, Shittu submitted approximately $1,154,025 in fraudulent claims to Medicare and Medicaid and received $597,865.19 for those claims. The defendant also admitted that he began purchasing physician orders for durable medical equipment (DME), including wrist, back, foot, ankle, knee, elbow and shoulder braces as well as wheelchairs around Dec. 1, 2008, and that he purchased the orders from at least five recruiters for $200 - $300 per order. The physicians whose names were on the orders had not seen or treated by the patients.
After long oral argument from both sides today, Judge Ellison cited the seriousness of the crime as one of the reasons for arriving at the sentence. The United States introduced numerous photographs of DME delivered by Shittu to Medicare and Medicaid beneficiaries that was not medically necessary and which had sat unused for years after Shittu was paid for delivering it. The United States also referenced a chart of Medicare claims data demonstrating how his billing to Medicare dramatically increased when he began purchasing physician orders for $200 - $300 per prescription from recruiters in December 2008. The defense argued that Shittu should receive a lesser sentence because of the actual cost of purchasing the medically un-necessary DME and because he committed the crime due to a tough economic climate. Judge Ellison considered the defendant’s character references and lack of prior criminal history prior to issuing the sentence and concluded that the sentence reflected the seriousness of the crime.
Shittu was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation into Shittu was the result of a joint investigation conducted by agents from the Department of Health and Human Services-Office of Inspector General and the Texas Attorney General’s Office-Medicaid Fraud Control Unit. Assistant United States Attorney Julie Redlinger prosecuted the case.
St. Francis Woman Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota woman convicted of Involuntary Manslaughter was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Mary Jo Flammond, age 32, was sentenced to 48 months in custody, 2 years of supervised release, $7,160.48 in restitution and $100 to the Federal Crime Victims Fund.
Flammond was indicted by a federal grand jury on September 19, 2012 and pled guilty to the charge on February 21, 2013.
The conviction stems from an accident that took place on September 6, 2012, when Flammond was driving a motor vehicle under the influence of alcohol. Flammond was driving recklessly and could not keep the vehicle on the roadway which caused it to roll. The victim died from his injuries sustained in the crash. Flammond’s blood alcohol content at the time of the wreck was .191.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Flammond was remanded to the custody of the U.S. Marshal.
Southern Illinois Resident Sentenced for Defrauding Federal Unemployment Insurance ProgramRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Cymica Grant, 35, of Belleville, Illinois, was sentenced in United States District Court for defrauding the unemployment insurance program. The District Court sentenced Grant to a 5 year term of probation. Grant also was ordered to pay restitution to the Illinois Department of Employment Security and to pay a $100 special assessment.
“Lying and cheating to receive unemployment compensation is a crime,” said United States Attorney Wigginton. “Those who defraud the unemployment insurance program undermine support for an important public program and hurt and insult every law-abiding citizen of Southern Illinois, particularly as public programs face economic crises. I will continue to place a high priority on pursuing those who steal from the United States Treasury.”
At the time of her guilty plea, Grant admitted to being employed both between July 2008 and June 2009 and also during January 2010 while at the same time filing for and receiving unemployment insurance benefits. In order to receive the benefits, Grant had to certify, approximately every two weeks, to the Illinois Department of Employment Security (IDES) that she was not working and that she was ready, willing, and able to work. She also had to verify that she was actively seeking work. Grant was supposed to inform IDES of any income she received during the certification period, but she did not report that she was employed and earning money, instead choosing to collect both wages and benefits simultaneously. Between July 2008 and January 2010, Grant collected $26,417 in employment insurance benefits to which she was not entitled.
This case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, the United States Postal Inspection Service, and the Illinois Department of Employment Security, and was prosecuted by Special Assistant United States Attorney Katherine L. Lewis.
Sherron Grace American Horse 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 June 5, 2013, before U.S. District Judge Sam E. Haddon, SHERRON GRACE AMERICAN HORSE, a 38-year-old resident of Ashland and an enrolled member of the Northern Cheyenne Tribe, was sentenced to a term of:
Prison: 46 months
Special Assessment: $200
Supervised Release: 3 years
AMERICAN HORSE was sentenced in connection with his guilty plea to involuntary manslaughter and assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On June 22, 2012, law enforcement responded to a car crash on the Northern Cheyenne Indian Reservation at approximately 1:00 p.m. The officers found one deceased passenger lying outside of the car. Several other passengers were also at the scene and suffered minor to severe injuries. All at the scene identified AMERICAN HORSE as the driver.
While taking photographs at the scene, the officers saw footprints leading away from the crash site and followed them. They found AMERICAN HORSE lying near the road. She appeared to be sleeping. The officers woke her up to determine if she needed medical attention. As she sat up, an unopened can of malt liquor was under her body. Her speech was slurred.
AMERICAN HORSE was taken by ambulance to the Lame Deer Clinic and later treated at the Billings Clinic. A blood alcohol sample was taken some hours after the crash and registered a .169.
AMERICAN HORSE was interviewed several days later. She admitted that she had been drinking and driving at the time of the crash. Through her admissions, the statements of the surviving passengers, and the investigation at the scene, law enforcement learned that AMERICAN HORSE was very drunk, lost control of the car, and rolled the car at least four times. She caused the death of one passenger and another passenger suffered a spinal injury that has resulted in partial paralysis.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that AMERICAN HORSE will likely serve all of the time imposed by the court. In the federal system, AMERICAN HORSE 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 Bureau of Indian Affairs and the Federal Bureau of Investigation.
Sevierville Attorney Receives Four Year Sentence for Wire and Bank Fraud Conspiracy and Money Laundering in $6 Million Mortgage Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. - Jerry Kerley, 60, of Kodak, Tenn. was sentenced on June 6, 2013, by the Honorable Thomas W. Phillips, U.S. District Court Judge, to serve four years in prison for his May 2012 federal convictions for wire fraud, bank fraud, money laundering, all arising from a mortgage fraud scheme.
The indictment charged Kerley and Jeffrey Whaley with conspiring to defraud Citizens Bank, located in New Tazewell, Tenn., and SunTrust Mortgage, Inc., located in Richmond, Va., through a mortgage fraud scheme. The indictment alleged that the conspiracy involved a "straw borrower" mortgage fraud scheme in which straw borrowers were induced to obtain mortgage loans in their names based on promises that they would not have to make a down payment or mortgage payments for the property, would receive cash at closing, and would share in the profit following a resale of the property. The indictment further alleged that it was part of the conspiracy that materially false representations were made to Citizens Bank and SunTrust Mortgage, which, among other things, included false representations related to the straw borrowers’ source of funds for down payments and amounts recorded as "cash from borrower" on HUD-1 Settlement Statements and loan applications, for the purpose of inducing Citizens Bank and SunTrust Mortgage to disburse the mortgage loan proceeds it had wired to and entrusted with Kerley's title company Guaranty Land Title.
The indictment specifically alleged eight real estate transactions in which Kerley and Whaley concealed from Citizens Bank and SunTrust Mortgage that the borrower did not provide at closing the money identified as the "cash from borrower" on the HUD-1 Settlement Statement. According to the indictment, in those eight transactions, Citizens Bank and SunTrust Mortgage, in total, wired more than $6 million in loan proceeds to Guaranty Land Title Company for disbursement. The indictment alleged that Kerley, a Tennessee licensed attorney, was the owner of Guaranty Land Title Company where the fraudulent loans were closed. The indictment also alleged that Whaley conducted business through a company known as GBO Enterprises which received substantial sums of money from the loan proceeds. The indictment also alleged that Kerley and Whaley committed money laundering offenses through financial transactions that involved proceeds from the mortgage fraud scheme. Whaley is scheduled to be sentenced in U.S. District Court on July 1, 2013.
This investigation was conducted jointly by the Internal Revenue Service, Criminal Investigation, Federal Bureau of Investigation, and the United States Secret Service. Assistant U.S. Attorneys Trey Hamilton and Zac Bolitho represented the United States.
Sentences for June 05 - 06, 2013Read the Press Release
Robert Rodriguez, 44, of Albuquerque, New Mexico, was sentenced by Chief Federal District Court Nancy D. Freudenthal on June 6, 2013, on one count of conspiracy to commit mail and wire fraud and one count of arson and aiding and abetting. Rodriguez was arrested in Albuquerque, New Mexico. He received 60 months of imprisonment, followed by three years of supervised release and was ordered to pay a $200.00 special assessment and $50,000.00 in restitution. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Maria De Jesus Molinar-Varela, 37, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 6, 2013, for illegal re-entry of a previously deported alien into the United States. Molinar-Varela was arrested in Cheyenne, Wyoming. She received twelve months and one day of imprisonment, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Michael Pollock, 43, of West Point, Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 5, 2013, for possession of child pornography. Pollock was arrested in Kemmerer, Wyoming. He received 30 months of imprisonment, to be followed by ten years of supervised release and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Seller of Golden Eagle and Hawk Feathers Sentenced to 2 Years in Prison for Violations of Migratory Bird Treaty Act and Lacey ActRead the Press Release
Steven Patrick Garcia, Jr., 36, of San Jose, Calif., was sentenced today in federal court in Billings, Mont., to 24 months in prison to be followed by one year of supervised release for selling and offering to sell migratory bird parts in violation of the Migratory Bird Treaty Act (MBTA) and the Lacey Act, the Department of Justice announced today. Garcia had pleaded guilty to the charge on January 16, 2013.
Garcia admitted by his plea that on Dec. 2, 2008, he offered for sale and sold golden eagle and hawk feathers and that on Feb. 25, 2009, he sold golden eagle feathers knowing that those golden eagle feathers were unlawfully taken and possessed.
“The protection of Montana's wildlife, including migratory birds, is a priority of the U.S. Attorney's Office for the District of Montana. Today's prosecution and sentence demonstrate that individuals that attempt to profit from the unlawful taking of golden eagles, bald eagles, hawks and all other migratory birds will be investigated, prosecuted and punished accordingly,” said U.S. Attorney for the District of Montana, Michael W. Cotter.
Pursuant to the MBTA, the Secretary of the Interior maintains a list of migratory birds which are protected from, among other things, being killed, sold, bartered, transported or possessed, except as otherwise permitted by federal regulation. Enrolled members of federally recognized American Indian tribes may obtain permits to possess eagle and other migratory bird feathers and parts for religious and ceremonial purposes, but federal law strictly prohibits the sale of migratory birds, feathers, or their parts by any person. The Lacey Act prohibits, among other things, the sale of wildlife knowing that the wildlife was taken or possessed in violation of any federal wildlife-related regulation or law.
According to court documents, Garcia communicated via MySpace with an individual in California and sold the individual hawk feathers for $200 and a golden eagle feather for $25 in December 2008. The hawk feathers were later forensically identified as twelve tail feathers of either ferruginous or red-tailed hawk. Garcia also communicated via MySpace with an undercover U.S. Fish and Wildlife Service agent who, at one point in time, observed approximately seventy photographs of migratory bird feathers on Garcia’s MySpace Page. The agent purchased twelve ferruginous hawk and twelve rough-legged hawk tail feathers from Garcia in February 2009 as well as one complete set of subadult golden eagle wings for $400. Approximately 146 items containing feathers representing 18 different species of migratory birds were obtained from Garcia’s home in Lame Deer, Montana in March 2009.
This case resulted from a nationwide investigation by the U.S. Fish and Wildlife Service’s Office of Law Enforcement into the illegal commercialization of eagles and other migratory birds protected by federal law. The case was prosecuted by the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section with assistance from the U.S. Attorney’s Office for the District of Montana.San Gabriel Valley Teacher Arrested in Child Pornography Case After Investigators Uncover Evidence of Possible Child MolestationRead the Press Release
LOS ANGELES – A teacher at Royal Oak Middle School in Covina, who allegedly met an undercover operative in his classroom so they could view child pornography, has been arrested after investigators determined that he was distributing child pornography via the Internet.
John David Boyle, 49, of Glendora, was arrested yesterday by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) after their investigation determined that Boyle may have molested children. Boyle, who is currently in custody, has a bond hearing scheduled for this afternoon.
During the course of this investigation, Boyle engaged in online chats with an undercover agent, believing that the undercover agent shared his sexual interest in young boys, according to the affidavit in support of the complaint. Boyle set up an in-person meeting with the undercover agent in his classroom at the school on Sunday, believing that the purpose of the meeting was to engage in sexual activity while watching child pornography together. When the undercover agent arrived and presented Boyle with child pornography, he took possession of it. At that time, other agents entered the classroom to interview Boyle.
While Boyle was not arrested at that time, he made statements to investigators and allowed them to takeover several of his online accounts, which included [email protected]. While working with that account late Sunday and Monday, agents discovered that Boyle had used the account to distribute child pornography, the complaint alleges. Agents were also able to access Boyle’s Skype account, where they found evidence that he may have had sexual contact with minors.
Agents obtained a search warrant for Boyle’s computer systems, and on Tuesday they discovered videos depicting child pornography. As a result of this investigation, Boyle was arrested Wednesday morning.
Based on the evidence obtained in this case, authorities believe there may be unknown victims of child molestation by Boyle. Anyone with information about this matter is encouraged to call HSI’s toll-free tip line at 1-866-DHS-2ICE (1-866-347-2423) or submit a information using HSI’s online tip form at http://www.ice.gov/exec/forms/hsi-tips/tips.asp.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in federal prison and a maximum possible penalty of 20 years in prison.
The investigation into Boyle is being conducted by HSI and the Internet Crimes Against Children Task Force (ICAC).
Release No. 13-078
Salt Lake Man Sentenced to 21 Months in Prison for Money Laundering in Connection with Diversion of Funds from BusinessRead the Press Release
Sentence Includes Order to Pay $986,073.03 in Restitution to Business
SALT LAKE CITY – David Merrill, age 42, of Salt Lake City will serve 21 months in federal prison after pleading guilty to money laundering in connection with a scheme to divert money from High Street Funding, where he worked from 2006 through 2011, to his personal accounts.
U.S. District Judge Robert J. Shelby also ordered Merrill to pay $986,073.03 in restitution to the business and imposed 36 months of supervised release following the completion of the prison sentence.
According to a Felony Information filed in the case, the business is a privately-owned equipment leasing company in Utah. It enters into equipment leasing agreements with client businesses, leasing equipment based on monthly payments.
As a part of a plea agreement with federal prosecutors, Merrill admitted that during the course of performing his job duties at the leasing business, he directed approximately $1 million in client payments to his accounts at various banks in Utah. He admitted the activity was unknown to his employer and done without the employer’s authorization.
The case was prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of IRS Criminal Investigation.
Rapid City Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man convicted of Assaulting, Resisting, or Impeding a Federal Law Enforcement Officer was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Sidney Lightning Fire, age 30, was sentenced to 13 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Lightning Fire was indicted by a federal grand jury on October 16, 2012, and pled guilty to Assaulting, Resisting, or Impeding a Federal Officer on March 13, 2013. The conviction stems from Lightning Fire’s resisting arrest and the assault of two Cheyenne River Sioux Tribe Law Enforcement Officers in July of 2012.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Lightning Fire was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Rapid City Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man convicted of Assaulting, Resisting, or Impeding a Federal Law Enforcement Officer was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Sidney Lightning Fire, age 30, was sentenced to 13 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Lightning Fire was indicted by a federal grand jury on October 16, 2012, and pled guilty to Assaulting, Resisting, or Impeding a Federal Officer on March 13, 2013. The conviction stems from Lightning Fire’s resisting arrest and the assault of two Cheyenne River Sioux Tribe Law Enforcement Officers in July of 2012.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Lightning Fire was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.