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6 June 2013
Punta Gorda Man Indicted for Investor FraudRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Anthony Michael Defeo (48, Punta Gorda) with eight counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison on each count, a fine of up to $250,000, and restitution to his victims. The indictment also notifies Defeo that the United States is seeking a money judgment in the amount of $6,280,580.00, the proceeds of the offense.
According to the indictment, Defeo solicited victim investors who thought they were investing in an opportunity involving road improvements on Interstate 75, along the west coast of Florida. Specifically, Defeo misrepresented to victim investors that he had lucrative contracts and purchase orders with a legitimate corporation engaged in asphalt paving, grading, and related services for roadway and civil construction projects. Instead of using the victim investors’ money as represented, Defeo used the investors’ money for his own purposes. The indictment alleges that Defeo fraudulently diverted and converted approximately $6,280,580.00 in monies from investors for his own purposes and has failed to repay these investors.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Pittsburgh Man to Spend 3 Years in Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident was sentenced in federal court on June 5, 2013, for violating federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Donald Goodwine, 24, was sentenced by United States District Judge Maurice B. Cohill to 37 months in prison followed by three years of supervised release. From May 2, 2012, to May 9, 2012, Goodwine conspired to distribute and possess with intent to distribute cocaine in the Pittsburgh area.
Assistant United States Attorney Craig W. Haller prosecuted the case on behalf of the United States.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, and the Pittsburgh Bureau of Police for conducting the investigation that led to the conviction and sentence in this case.
Phoenix, New York - Man pled guilty to a felony violation of the Clean Air Act.Read the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Edward Palmer, 47, of Phoenix, N.Y., pled guilty in U.S. District Court in Syracuse before the Honorable Frederick J. Scullin, to a felony violation of the Clean Air Act, 42 U.S.C. § 7413(c). Palmer is scheduled to be sentenced on October 30, 2013 at 10:30 a.m. in Syracuse. He faces a maximum penalty of five years in prison and a $250,000 fine.
Palmer is the owner of Carbonsted, LLC, a company that owns the former Nestles Plant, 555 Fourth Street, Fulton, NY. The plant contains pipes with more than two thousand of feet of friable asbestos insulation. Palmer engaged in asbestos renovation activities without filing a notification with the United States Environmental Protection Agency. He directed unlicenced individuals to perform asbestos removal without wetting the asbestos and keeping it wet, and without properly disposing of the asbestos at a state-approved landfill.
Asbestos exposure has been determined to cause various forms of cancer, asbestosis, and mesothelioma, a nearly always fatal disease. The Environmental Protection Agency has determined that there is no safe level of exposure to asbestos. This case was investigated by Special Agents of the Environmental Protection Agency, and N.Y. State Department of Environmental Conservation. Inspectors with the NYS Department of Labor also assisted. Prosecution is being handled by Assistant United States Attorney Craig A. Benedict. Mr. Benedict may be contacted for questions regarding this case at 315-448-0672.
Philadelphia Man Charged with Conspiracy to Commit Access Device FraudRead the Press Release
Carnell Ragan, 47, of Philadelphia, Pennsylvania, was charged today by Indictment with conspiracy to commit access device fraud and aggravated identity theft, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 12 years imprisonment, including a mandatory minimum of 2 years imprisonment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Nooksack Tribal Member Pleads Guilty to Ax Murder on Lummi ReservationRead the Press Release
An enrolled member of the Nooksack Tribe pleaded guilty today in U.S. District Court in Seattle to second degree murder, announced U.S. Attorney Jenny A. Durkan. LEVI EUGENE CHARLES, 26, admitted that he killed Sauk-Suiattle Tribal member Kenneth Joseph by striking him in the head and face with an ax. The murder occurred when 68-year-old Joseph awoke while CHARLES was burglarizing Joseph’s home on the Lummi reservation. Under the terms of the plea agreement, both sides will recommend a sentence between 22 and 27 years in prison when CHARLES is sentenced on August 2, 2013. U.S. District Judge Richard A. Jones is not bound by the recommendation and can impose any sentence up to the maximum allowed by law: a life prison term.
According to the plea agreement, CHARLES went to Joseph’s home the night of October 23, 2012. CHARLES knew Joseph and had been in the home. He admits he planned to break in and steal items to sell for cash. CHARLES picked up a miniature baseball bat outside the residence and carried it inside. Joseph heard the intruder and confronted him. CHARLES hit Joseph with the mini baseball bat multiple times and then grabbed an ax from near the front door of the house and hit the victim with that in the head and face. After killing Joseph, CHARLES threw a blanket over the body and hung blankets over the windows to conceal the crime scene. CHARLES stole an ATM card from Joseph’s wallet, and took a TV and other items from the house. CHARLES threw the small bat away in the woods and discarded the TV and other items at the end of the driveway. He used the ATM card a few hours later to take $420 from Joseph’s bank account.
CHARLES was arrested October 29, 2012 and was indicted December 19, 2012.
The case was investigated by the Lummi Police Department and the FBI. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
New York Woman Pleads Guilty to Newtown Fundraising Fraud, Lying to Federal AgentsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that NOUEL ALBA, 37, of Bronx, N.Y., pleaded guilty today before United States Magistrate Judge William I. Garfinkel in Bridgeport to engaging in a fraudulent fundraising scheme related to the Sandy Hook Elementary School shooting tragedy, and lying to FBI agents investigating her conduct.
“This defendant’s criminal conduct exploited the victims of this tragedy, their grieving families and caring individuals who sought to help in any way they could,” stated Acting U.S. Attorney Daly. “As charity and fundraising scams prey upon vulnerable people and have a corrosive effect on the trust and generosity of all citizens, investigators will continue to monitor the Internet to uncover similar schemes. While we believe that this case has had a deterrent effect on other potential bad actors, individuals who ignore this warning and operate these schemes face federal or state prosecution to the fullest extent permitted by law.”
“The thought that someone would scheme so quickly and deliberately to benefit from an unspeakable tragedy is beyond belief,” stated FBI Special Agent in Charge Mertz. “While there wasn’t a substantial loss of money in this investigation, there were losses beyond any pecuniary measure. Ms. Alba’s actions caused undue sadness and harm to those already suffering and to those involved with running legitimate and caring charities. While her guilty plea is just, our thoughts today are with the victims of the Newtown tragedy and their families and friends.”
According to court documents and statements made in court, shortly after the shooting that claimed 26 lives at Sandy Hook Elementary School in Newtown on December 14, 2012, ALBA used Facebook, email, text messages and telephone calls to falsely claim to be the aunt of a child killed in the shooting, and to supply fictitious details about the aftermath of the shooting, in order to solicit donations on the pretext that she was collecting for a “funeral fund” on behalf of the child’s family and the families of other shooting victims. As part of the scheme, ALBA also emailed Sandy Hook Elementary School PTA officers and then touted her fictional personal relationship with the PTA to support her false claim and induce donors to send her money. At ALBA’s instruction, donor-victims sent money to her PayPal account.
When contacted by FBI special agents investigating fundraising and charity scams related to the shooting, ALBA attempted to hide her criminal conduct by falsely stating that she did not post information related to Newtown on her Facebook account, have contact with anyone about such postings, or recently access her PayPal account.
ALBA pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of making false statements, which carries a maximum term of imprisonment of five years. She is scheduled to be sentenced by United States District Judge Michael P. Shea in Hartford on August 29, 2013.
ALBA has been released on a $50,000 bond since her arrest on December 27, 2012.
Individuals with knowledge of fraudulent fundraising and charity schemes are encouraged to contact the FBI in Connecticut at 203-777-6311.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Jonathan Francis.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New York Woman Admits Purchasing Electronics with Counterfeit $100 Bills at North Haven StoreRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that ALISHA FRASER, 27, of Brooklyn, N.Y., pleaded guilty yesterday before United States Magistrate Judge Thomas P. Smith in Hartford to one count of passing counterfeit U.S. currency at a store in North Haven.
According to court documents and statements made in court, on December 13, 2010, FRASER used nine counterfeit $100 bills to purchase an iPad from a store in North Haven. Later that day, she returned the iPad and received genuine U.S. currency. Two days later, FRASER purchased two iPods at the same store using five $100 counterfeit bills.
FRASER is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on August 28, 2013, at which time FRASER faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.
FRASER was arrested on February 25, 2013, and is currently released on a $25,000 bond.
This matter was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Felice Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Haven Man Sentenced to More Than Seven Years in Federal Prison for Distributing Oxycodone and CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSEPH RAO, 53, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 91 months of imprisonment, followed by five years of supervised release. On February 4, 2013, RAO pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone and cocaine.
RAO is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. The investigation revealed that RAO conspired with others to distribute oxycodone and cocaine.
RAO was arrested on federal charges on June 6, 2012. At that time, he was serving an effective state sentence of 60 months of imprisonment stemming from several arrests, including an arrest by the New Haven Police Department on April 1, 2011, after he conducted a sale of oxycodone in a restaurant parking lot. On that date, a search of RAO’s person and vehicle revealed $9,661 in U.S. currency and more than 100 oxycodone pills.
Judge Burns ordered that RAO begin serving his 91-month federal sentence after he completes his state sentence.
RAO’s criminal history includes 26 convictions.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Mission Woman Sentenced for TheftRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota woman convicted of theft was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Donna Peterson, age 49, was sentenced to serve 6 months of home confinement, 4 years’ probation, and ordered to pay a $2,000 fine, and over $32,000 in restitution.
Peterson was indicted by a federal grand jury on May 8, 2012 and pled guilty to the charge on March 18, 2013.
From 1996 to 2008, Peterson was an employee of Costello Company Property Management. During that time she served as manager of the Sunrise Village Apartment Complex, which was managed by Costello Company Property Management and located in Mission, South Dakota. The U.S. Department of Agriculture Rural Development Agency provided rent subsidy payments to Costello Property Management for tenants who met certain income requirements. Between January 1, 2007 and December 31, 2007, Peterson received cash from tenants in an amount of $32,723.36, which she did not deposit in the Sunrise Village bank account, but instead embezzled and misapplied the funds.
The investigation was conducted by the U.S. Department of Agriculture Office of Inspector General – Investigations. The case was prosecuted by Assistant U.S. Attorney Dennis R. Holmes.
Miramar Man Sentenced in Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendant Johnny Alexander Melo, 36, of Miramar, was sentenced today for his participation in an identity theft tax refund scheme. Melo was sentenced to 60 months of imprisonment, followed by one year of supervised release. In addition, U.S. District Judge Robert N. Scola ordered Melo to pay restitution of $18,594.63 to the IRS. Melo previously pled guilty to one count of conspiracy to use a false identification document, one count of possession of five or more identification documents, one count of theft of government funds and one count of aggravated identity theft. The defendant was remanded to the custody of the U.S. Marshals Service following the hearing.
On October 5, 2012, defendant Melo was charged in a ten (10) count indictment for his participation in an identity theft tax refund scheme. According to the indictment, defendant Melo and his co-conspirators stole personal identification information and used the stolen information to file false tax returns in the identities of at least 22 individuals. The U.S. Treasury issued tax refund checks in the names of those individuals. Melo then attempted to cash these fraudulently obtained tax refund checks by using false driver’s licenses in the names of the stolen identities.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.
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.
Michigan Doctor Sentenced for Role in Medicare Fraud SchemeRead the Press Release
Lansing-area resident Dr. Paul Kelly was sentenced to 18 months in prison today for his role in a $13.8 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG), Chicago Regional Office, made the announcement.
Kelly, 76, was sentenced by U.S. District Judge Gerald E. Rosen of the Eastern District of Michigan. In addition to his prison term, Dr. Kelly was sentenced to three years of supervised release and ordered to pay $582,912 in restitution.
Kelly pleaded guilty on Jan. 10, 2013, to one count of health care fraud. According to information contained in plea documents, beginning in or around January 2011 and continuing through approximately March 2011, Kelly signed home health care referrals for a home health agency called Moonlite Home Care Inc., located in Livonia, Mich. Kelly certified Medicare beneficiaries as homebound, a requirement for receiving home health care, when in fact, Kelly had never examined or met the beneficiaries, and they were not homebound. Medicare paid approximately $582,912 for fraudulent home health care claims submitted by Moonlite based on Kelly's referrals.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Miami-Dade Agrees to $1.6 Billion Upgrade of Its Sewer System to Eliminate Sewage OverflowsRead the Press Release
Under a settlement with the U.S. Department of Justice and the U.S Environmental Protection Agency (EPA) announced today, Miami-Dade County in Florida has agreed to invest in major upgrades to its wastewater treatment plants and wastewater collection and transmission systems in order to eliminate sanitary sewer overflows. The state of Florida and the Florida Department of Environmental Protection (FDEP) are co-plaintiffs with the United States in this action.
Under the terms of the consent decree, Miami-Dade will rehabilitate its wastewater treatment plants and its wastewater collection and transmission system within 15 years. The county will also develop and implement management operation and maintenance programs to help ensure the sewer system is properly operated and maintained in the future. By implementing these measures, Miami-Dade is expected to eliminate sanitary sewer overflows from its wastewater collection and transmission system and achieve compliance with its National Pollutant Discharge Elimination System (NPDES) permits.
“Sewage overflows are a significant problem in the Southeast because of inadequate and aging infrastructure,” said Stan Meiburg, Acting Regional Administrator of EPA’s Southeastern office. “This agreement demonstrates the county’s commitment to address its sewage problems. Eliminating overflows of raw sewage will comply with the Clean Water Act and benefit the Miami-Dade community by providing a cleaner and healthier environment.”
“Miami-Dade County is one of the world’s premier resort destinations and is home to America’s Everglades, two aquatic preserves as well as Bill Baggs Cape Florida, Oleta River and The Barnacle Historic state parks,” said Florida Department of Environmental Protection Secretary Herschel T. Vinyard Jr. “This agreement will bring lasting environmental and recreational benefits to the citizens and visitors of Miami-Dade County by reducing the threats posed by untreated sewage overflows that degrade water quality and contribute to beach closures,”
Between January 2007 and May 2013, Miami-Dade reported 211 sanitary sewer overflows totaling more than 51 million gallons. Such overflows included a number of large volume overflows from ruptured force mains. At least 84 overflows, totaling over 29 million gallons of raw sewage, reached navigable waters of the United States. Miami-Dade’s Central District wastewater treatment plant (WWTP) also experienced several violations of the effluent limits contained in its NPDES permit. EPA also documented numerous operation and maintenance violations at this same WWTP during inspections in September 2011, April 2012 and April 2013.
Miami-Dade estimates it will spend approximately $1.6 billion to complete the upgrades required by the consent decree and come into compliance with the Clean Water Act. Under the settlement, Miami-Dade will also pay a civil penalty of $978,100 ($511,800 to be paid to the United States and $466,300 to FDEP) and complete a supplemental environmental project costing $2,047,200.
Miami-Dade’s supplemental environmental project involves the installation of approximately 7,660 linear feet of gravity sewer mains through the Green Technology Corridor, an area that is currently using septic tanks. Businesses in the area have been unable to connect to the sewer system because sewer lines are lacking. Disconnecting industrial users from septic tanks will improve water quality in the Biscayne aquifer and nearby surface waters and prevent future contamination.
The terms and conditions of the settlement announced today will update, replace and supersede two existing consent decrees between the United States and the county, the 1994 First Partial Consent Decree and the 1995 Second and Final Partial Consent Decree. Both of these existing consent decrees will be terminated upon entry of the new, proposed consent decree. The parties to this settlement recognized that since entry of the previous consent decrees, conditions within and circumstances surrounding Miami-Dade’s sewer system have changed over the last 18 years, including the causes and locations of sanitary sewer overflows. As a result, appropriate modifications and updates to the previous settlements are included in the new settlement.
Today’s announcement is the latest in a series of Clean Water Act settlements, including sanitary sewer overflow remediation and combined sewer overflow control plans that will reduce the discharge of raw sewage and contaminated stormwater into U.S. rivers, streams and lakes. It is part of EPA’s national enforcement initiative to keep raw sewage and contaminated stormwater out of the nation’s waterways. Reductions in sanitary sewer overflows are accomplished by obtaining municipal utilities’ commitments to implement timely, affordable solutions to these problems.
The settlement, lodged today in the U.S. District Court for the Southern District of Florida, is subject to a 30-day public comment period and approval by the federal court. The settlement will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html
More information about EPA’s national enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011sewagestormwater.html
Mequon Woman Sentenced to 33 Months in Prison for Income Tax EvasionRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that Leah M. Kuchta (age: 42) of Mequon, Wisconsin, was sentenced June 5, 2013, to 33 months imprisonment by United States District Judge Charles N. Clevert. Kuchta was indicted by a federal grand jury on August 14, 2012, and charged with six counts alleging tax related offenses.
On December 13, 2012, she pleaded guilty to two counts. Specifically, Kuchta pled guilty to evading $234,836 of federal income tax due and owing on $728,276 of unreported income for tax year 2005. She also pled guilty to filing a false claim for a $76,165 refund, also for the tax year 2005.
The case stemmed from an IRS investigation seeking a wage verification related to the refund claim. During the course of the investigation the IRS determined that Kuchta had embezzled approximately $900,000 from a trust established for the benefit of her grandmother, and had pocketed $30,000 from a fraudulent loan on her sister’s home. Failure to report her illegal income resulted in the evasion charge.
In sentencing Kuchta, Judge Clevert noted the widespread nature of Kuchta’s fraudulent conduct. In addition to the 33 months, Kuchta will serve a period of 3 years supervision after her release from imprisonment. She also is responsible for paying the tax due, and refunding the fraudulent refunds received, in the amount of $324,397. IRS interest and penalties will bring the total amount due to over $778,000.
United States Attorney James L. Santelle commended special agents from the IRS Criminal Investigation for their excellent and detailed investigation which resulted in this prosecution. The case was prosecuted by Assistant United States Attorney Paul L. Kanter.
# # # # #Man Sentenced to Four Years in Prison for Filing Fraudulent Tax Returns in the Names of OthersRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas man was sentenced today to four years in prison, three years of supervised release, and ordered to pay restitution of $64,921 to the IRS, for his guilty pleas to filing multiple false tax returns in the names of others, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Knowingly using another person’s identity without authority to steal tax refunds constitutes aggravated identity theft under federal law, and carries a mandatory two-year consecutive sentence to any other charge,” said U.S. Attorney Bogden. “Identity theft is a serious and growing problem that we and our law enforcement partners will continue to address to ensure identity thieves are prosecuted to the fullest extent of the law.”
Joseph Glendon Austin, 35, was sentenced by U.S. District Judge Larry R. Hicks. Austin pleaded guilty on Thursday, Feb. 21, 2013, to one count of presenting a false claim to the United States and one count of aggravated identity theft.
“This case is part of a national sweep to target those who steal taxpayers’ identities for the purpose of obtaining fraudulent tax refunds,” said Paul Camacho, Special Agent in Charge of IRS Criminal Investigation in Nevada. “Eradicating these crimes is a top priority at IRS. Nationally, IRS has tripled the number of tax related identity theft cases.”
According to the guilty plea agreement, sometime before March 31, 2009, in Nevada, Austin obtained access to the personal identifying information of clients of an unnamed tax preparer. On March 31, 2009, Austin unlawfully filed a tax return using the personal identifiers of a client of the tax preparer, but containing falsified income, withholding, and other information. The fraudulent return requested a refund of $4,147, which Austin admitted that he received. Austin then filed multiple more false tax returns using the identifiers of other clients of the tax preparer, and claimed refunds in the form of refund anticipation loans placed on debit cards. Austin admitted that no one gave him permission to use their identifying information.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Roger Yang.Lower Brule Woman Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota woman has been indicted by a federal grand jury.
Deborah Beardsley, age 50, was indicted by a federal grand jury on April 11, 2013 for Assault with a Dangerous Weapon. Beardsley appeared before U.S. Magistrate Judge John E. Simko on June 3, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Beardsley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Beardsley was released on bond pending trial. A trial date has not been set.
Louisville Man Guilty of Harboring 20,000 Images of Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Louisville man pleaded guilty in United States District Court, before Magistrate Judge Dave Whalin, to a six count federal grand jury indictment charging him with violating federal child pornography laws including the possession of child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Philip Haering, admitted in court to using a peer to peer file sharing network to download images of child pornography between May 19, 2006 and May 3, 2011. According to the factual basis found in the plea agreement, an FBI agent utilizing the same peer-to-peer file sharing network downloaded several password protected files from Haering. During the download, the agent was able to preview one of the files, a movie, that contained child pornography.
The FBI obtained and executed a federal search warrant on August 16, 2011 for Haering's home address. During the execution of the search warrant Haering admitted to viewing child pornography. He also admitted to downloading child pornography since 2003 and claimed to have filled a laptop, two external hard drives and 44 thumb drives with files of child pornography.
A forensic examination revealed over 20,000 files of child pornography. The thumb drives had a total of 2,103 known files of child pornography. The 1 terabyte hard drive had 4,764 known files of child pornography. The 500 GB Hard Drive had 4,446 known files of child pornography, and both laptops had a total of 3,784 known files of child pornography. The forensic examination also revealed that Haering received child pornography on May 19, 2006, September 7, 2008, and August 15, 2011.
Haering faces a statutory mandatory minimum sentence of 5 years in prison. The maximum potential penalties are 110 years in prison, a fine of $1,500,000 and a period of supervised release of at least 5 years and could be for the remainder of his life. Sentencing is scheduled before Judge Whalin on August 29, 2013, in Louisville.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the FBI.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lisbon Man Admits Stealing and Possessing FirearmsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that BERNARD McALLISTER, 42, of Lisbon, pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of possession of firearms by a previously convicted felon.
According to court documents and statements made in court, on November 13, 2010, McALLISTER possessed 19 firearms that he and another individual had stolen during a string of residential burglaries that took place between 2008 and 2010. The firearms were discovered in an East Lyme storage locker with more than 8,000 other items believed to have been taken during the burglaries.
Prior to November 13, 2010, McALLISTER had been convicted of multiple felony offenses in several states, including burglary, robbery, breaking and entering, and making terroristic threats with intent to terrorize another. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Underhill has scheduled sentencing for August 29, 2013. McALLISTER is subject to the Armed Career Criminal Act, a federal law imposing severe penalties for firearm or ammunition possession by persons who have been convicted of at least three violent felonies or serious drug offenses. As an Armed Career Criminal, McALLISTER faces a minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.
McALLISTER has been detained since November 18, 2010, when he was arrested in Massachusetts on related charges. After he was arrested, McALLISTER admitted that he had been planning to leave the country.
On May 24, 2013, McALLISTER pleaded guilty in state court to several charges related to the series of residential burglaries.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the Massachusetts State Police, and the East Lyme, Greenwich, Madison, Guilford, Glastonbury, North Branford and Wallingford Police Departments. The case is being prosecuted by Assistant United States Attorneys Jonathan S. Freimann and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Lincoln Man Sentenced for Possession of PseudoephedrineRead the Press Release
United States Attorney Deborah R. Gilg announced that Senior United States District Judge Richard G. Kopf sentenced Grady E. Gartman, age 50 of Lincoln, Nebraska, to 12 years and 7 months in federal prison, followed by 3 years of supervised release for possession of pseudoephedrine with the intent to manufacture methamphetamine. Gartman entered a guilty plea to the charge in March.
Between October 12, 2010 and May 22, 2012, Grady Gartman purchased or attempted to purchase pseudoephedrine hydrochloride at least 181 times for a total of 399 grams of pseudoephedrine. On 41 occasions Grady Gartman traveled to more than one pharmacy on the same day to buy pseudoephedrine and on September 28, 2011, Gartman purchased pseudoephedrine 8 times in the Omaha and Lincoln area.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.Kenneth Wayne Bates Sentenced After Pleading Guilty to Cocaine ChargeRead the Press Release
KENNETH WAYNE BATES, 55, a resident of St. Joseph, Louisiana, was sentenced today by U. S. District Judge Jane Trich Milazzo to ninety-six months imprisonment and four years of supervised release, announced U. S. Attorney Dana J. Boente.
BATES pled guilty on March 7, 2013 to one count of possession with intent to distribute five hundred grams or more of cocaine hydrochloride. The possession with intent to distribute count carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of forty years.
The investigation was conducted by Special Agents of the Department of Homeland Security and the Louisiana State Police. The case was prosecuted by Assistant U. S. Attorney André Jones.
Kansas City, Kan., Man Indicted on Drug, Firearms ChargesRead the Press Release
KANSAS CITY, KAN. – A man from Kansas City, Kan., has been indicted on drug and firearms charges, U.S. Attorney Barry Grissom said today.
Joseph P. Pacheco, 41, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of carrying a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred Feb. 5, 2013, in Kansas City, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the conspiracy charge; a penalty of not less than five years – consecutive to a sentence for drug trafficking – and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking; and a maximum penalty of 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm after a felony conviction.
The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Zabel is prosecuting.
OTHER INDICTMENTS
Cheryl D. Seigler, 37, Wichita, is charged with two counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred May 17 and May 31, 2013, in Sedgwick County, Kan.If convicted, she faces a maximum penalty of 10 years and a fine up to $250,000 on each count. The Wichita Police Department investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Antonio Villa-Cesario, 37, a citizen of Mexico, is charged with one count of unlawful possession of a firearm by an alien illegally in the United States, and one count of unlawfully re-entering the United States after being deported. The gun crime is alleged to have occurred May 21, 2013, in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on the gun charge, and a maximum penalty of two years and a fine up to $250,000 on the immigration charge. Homeland Security Investigations investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Mario Alberto Medina-Urias, 28, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found May 24, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE - Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Edgar Lara-Garcia, 31, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found May 20, 2013, in Crawford County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE - Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Justice Department Reaches Agreement with California <br /> Water District on Bailout Under the Voting Rights ActRead the Press Release
The Justice Department announced that it has reached an agreement with the Linda County Water District, a special district in California, that, if approved by the court, will allow for the district to bail out from its status as a “covered jurisdiction” under the special provisions of the Voting Rights Act, and thereby exempt the district from the preclearance requirements of Section 5 of the Voting Rights Act. The district covers part of Yuba County, Calif., which is a jurisdiction subject to Section 5. The agreement is in the form of a consent decree filed today in the U.S. District Court for the District of Columbia.
Under Section 5 of the Voting Rights Act, certain covered jurisdictions, determined according to Section 4 of the act, are required to seek preclearance for any changes in voting qualifications, standards, practices or procedures from the U.S. District Court for the District of Columbia, or from the U.S. Attorney General, prior to their implementation. Section 4 of the act provides that a covered jurisdiction may seek to “bail out,” or remove itself from such coverage, and become exempted from the preclearance requirements, by seeking a declaratory judgment before a three-judge panel in U.S. District Court for the District of Columbia. A bailout judgment can be issued only if the court determines that the jurisdiction meets certain eligibility requirements for bailout contained in the statute, including a 10-year record of nondiscrimination in voting-related actions. The act also provides that the Attorney General can consent to entry of a judgment of bailout only if, based upon investigation, the Attorney General is satisfied that the jurisdiction meets the eligibility requirements.
The Linda County Water District filed its bailout action in the U.S. District Court for the District of Columbia on March 21, 2013. District officials had contacted the Attorney General prior to filing its action, indicating that the district was interested in seeking a bailout. The district provided the department with substantial information and the department conducted an investigation to determine the district’s eligibility. Based on that investigation the department is satisfied that the district meets the Voting Rights Act’s requirements for bailout.
“In this case, the department carefully evaluated the information provided by the district, and conducted its own investigation, which has satisfied us that the district is eligible for bailout,” said Matthew Colangelo, Deputy Assistant Attorney General for the Civil Rights Division. “We appreciate the district’s cooperation in the resolution of this matter.”The consent decree details the legal and factual basis for a bailout determination and, if approved, will grant the district’s request. The court will retain jurisdiction of the action for 10 years and can reopen the action upon the motion of the Attorney General or any aggrieved person alleging conduct by the district that would have originally precluded the district from bailing out if it had occurred during the 10 year period preceding entry of the consent decree.
Information about bailout, the Voting Rights Act, and other federal voting laws is available on the department’s website at www.justice.gov/crt/voting. Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.Incarcerated Man Admits Escaping from Renewal Halfway HouseRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident pleaded guilty in federal court to a charge of escape from federal custody, United States Attorney David J. Hickton announced today.
Derric Mason, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on or about Aug. 28, 2012, Mason, who had been incarcerated based on a supervised release violation resulting from a 2006 conviction for violating federal firearms laws, escaped from Renewal, Inc., a halfway house located in Pittsburgh.
Judge Fischer scheduled sentencing for Oct. 1, 2013 at 9 a.m. The law provides for a total sentence of not more than five years incarceration, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation that led to the prosecution of Derric Mason.
Hustle Boys Gang Member Sentenced to 30 Years in Prison for Drug Trafficking Conspiracy and Witness TamperingRead the Press Release
A 22-year-old Detroit man was sentenced to 30 years in federal prison for drug trafficking on Tuesday, June 4, 2013, U.S. Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge of the Federal Bureau of Investigation, Detroit Division.
U.S. District Judge Patrick J. Duggan imposed sentence on Jeron Gaskin in federal court in Detroit.
In November 2012, a jury found Gaskin, a member of a violent Detroit street gang known as the Hustle Boys, guilty of one count of participating in a drug conspiracy, and two counts of possession with intent to distribute illegal drugs. On Tuesday, Gaskin also pleaded guilty to one count of witness tampering, admitting that he had threatened the life of a witness, the witness’s minor child and the child’s mother before the drug trafficking trial. He received a sentence on the witness tampering charge of 46 months in prison concurrent to the 30-year drug trafficking sentence.
Evidence presented at trial showed that beginning in 2007 and continuing to March 2011, Gaskin, other members and associates of the Hustle Boys, and others engaged in drug trafficking by possessing marijuana for distribution and by illegally transporting thousands of OxyContin, Opana, and other controlled, prescription pain pills from Detroit to southern Ohio and West Virginia, where they sold pills out of hotel rooms and three residences they maintained in the area for drug distribution purposes. At times, members of the conspiracy traded pills for firearms and brought some of the firearms back to Detroit. The evidence also showed that Gaskin and other members of the conspiracy used a house on Hamburg Street in Detroit to store controlled substances including marijuana and pills, count and package pills for shipment to Ohio and West Virginia, and store firearms and cash proceeds of drug trafficking.
Gaskin and nine other members of the conspiracy were indicted for the conspiracy offense for which Gaskin was found guilty on November 30, 2011. The following co-defendants pleaded guilty prior to trial and were previously sentenced:
- Mark Davis was sentenced on January 29, 2013 to 155 months in federal prison. Davis also is serving a three-year sentence in the Ohio Department of Rehabilitation and Correction.
- William Crews was sentenced on May 6, 2013 to 50 months in federal prison. Crews also is serving a three-year sentence in the Ohio Department of Rehabilitation and Correction.
- Darrell Ewing was sentenced on January 28, 2013 to 180 months in federal prison. Ewing also is serving a life sentence for murder in the Michigan Department of Corrections.
- Deonte Morris was sentenced on January 15, 2013 to 130 months in federal prison.
- Delmerey Morris was sentenced on February 26, 2013 to 144 months in federal prison. Delmerey Morris also is serving a 35 to 60 year sentence for murder in the Michigan Department of Corrections.
- Ashley Sallad was sentenced on January 14, 2013 to 1 day of imprisonment and three years of supervised release.
- Pinkie Lewis was sentenced on January 23, 2013 to one year plus one day in federal prison.
Co-defendant Randi Fortner was recently indicted, arrested, and is facing pretrial detention and removal proceedings in the United States District Court for the Southern District of West Virginia. The drug trafficking conspiracy charge was dismissed against co-defendant William Beal following Beal’s guilty plea and sentence in a federal carjacking case.
United States Attorney Barbara McQuade stated: “Armed drug trafficking brings violent crime to our neighborhoods. We hope that strong sentences like these can help remove these organizations from our community.”
U.S. Attorney McQaude applauded the cooperative efforts of the Federal Bureau of Investigation's Violent Crime Task Force and the Ohio State Highway Patrol. Assistant United States Attorneys Mark Chasteen and Margaret Smith of the office’s Violent and Organized Crime Unit and General Crimes Unit represented the United States at trial. Assistant United States Attorney Jeanine Brunson assisted throughout the FBI’s lengthy investigation.
Hill City Man Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that Francisco Escobar-Tinjero, age 49, of Hill City, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy, on May 30, 2013 and pled guilty to conspiracy to distribute a controlled substance.
The maximum penalty upon conviction is not less than 5 or more than 40 years’ imprisonment and/or a $5,000,000 fine.
From approximately June 2010 until April 4, 2012, Escobar-Tinjero conspired and agreed with others to distribute 50 grams or more of methamphetamine in South Dakota.
The investigation was conducted by Homeland Security Investigations, Drug Enforcement Administration, South Dakota Division of Criminal Investigation, Minnesota Bureau of Criminal Apprehension, Sioux Falls Area Drug Task Force, and the Unified Narcotics Enforcement Team. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
A presentence investigation was ordered and a sentencing date was set for September 27, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Grand Jury Superseding Indictment Alleges Drug Charges Against Top Members of the "107 Hoover Crips"Read the Press Release
TULSA, Okla. –United States Attorney Danny C. Williams Sr. announced that four men have been charged in a superseding indictment returned today by a Federal Grand Jury in Tulsa. The superseding indictment is the result of a two-year investigation conducted by the Organized Crime Drug Enforcement Task Force (OCDETF) into the “107 Hoover Crips” street gang and its criminal activities of drug dealing, extortion, and violence, including shootings.
Lorell Antonio Battle, 30, Paul Edward Battle, 31, Thomas Layeffetta Jackson, 27, and Gaywone Dekeith Blades, 18, all of Tulsa, are charged with conspiring to distribute cocaine base, commonly known as “crack” cocaine. Lorell Battle and Gaywone Blades are also accused of possessing firearms in furtherance of their drug trafficking and maintaining apartments in the 61st Street and Peoria Avenue area of Tulsa to distribute, store, and use cocaine base in other charges of the eleven (11) count superseding indictment.
United States Attorney Williams and Chief of Police Chuck Jordan emphasized the need for continuing the combined efforts of federal, state and local law enforcement agencies in fighting the drug trafficking and violent gang activities in the 61st Street and Peoria Avenue neighborhood. U.S. Attorney Williams stated that a strong partnership of Tulsa’s law enforcement agencies will result in a better community for all residents. The charges resulted from an investigation of the Tulsa Police Department’s Special Investigations Division assisted by the DEA, the FBI, and the Tulsa County District Attorney’s Office. Assistant United States Attorneys Robert T. Raley, Allen J. Litchfield, and Catherine Depew are prosecuting the case on behalf of the United States.
A Grand Jury Indictment is one method of charging a defendant with alleged violations of Federal Law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendants’ presumption of innocence.
Grand Island Man Sentenced to 10 years for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Tyler Nuss, age 25 of Grand Island, Nebraska, was sentenced in federal court in Omaha for possessing child pornography. The Honorable Joseph F. Bataillon sentenced Nuss to a ten year term of imprisonment. There is no parole in the federal system. After his release from prison Nuss will begin a ten year term of supervised release.
Nuss was previously convicted in Hall County, Nebraska, of possessing child pornography. His 2008 state conviction resulted in a sentence of probation and was later set aside by the court.
In December 2012 the Federal Bureau of Investigation served a search warrant on Nuss’s Grand Island residence. The search warrant sought evidence relating to child pornography offenses. Agents discovered over 150 videos of child pornography on discs secreted behind an air vent in Nuss’s bedroom. Nuss indicated that he collected child pornography by trading with other collectors on the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Goodwin Announces 21 Indicted for Selling Pills in Southern West Virginia CrackdownRead the Press Release
Anti-pill sweep continues
BLUEFIELD, W.Va. – U.S. Attorney Booth Goodwin today announced that 21 individuals have been indicted for selling powerful prescription painkillers. The indictments were unsealed following the arrest of each defendant and their subsequent initial appearances in U.S. District Court for the Southern District of West Virginia.
The charges against each defendant have been brought as a part of the Bluefield Pill Initiative, a concerted attack by federal, state, and local government on the illegal distribution of prescription drugs in the southern region of West Virginia. The initiative was announced by U.S. Attorney Goodwin in June 2011.
"Prescription drug abuse has ravaged families and communities across the country. Southern West Virginia has seen too many people fall victim to this plague," said U.S. Attorney Goodwin.
Goodwin continued, “This round of prosecutions reaffirms our commitment to the Bluefield Pill Initiative and our resolve to put pill pushers out of business."
The following individuals were indicted:
Carolos Renaldo Ivy, 33, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone, three counts of distribution of oxycodone and one count of using a telephone to commit a drug crime;
Aaron O. Gamble, 30, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone, one count of distribution of oxycodone and one count of using a telephone to commit a drug crime;
Eric Lee Flack, 34, of Bluefield, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone, one count of distribution of oxycodone and three counts of using a telephone to commit a drug crime;
Ansel William Ponder, 22, of Bluefield, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone, one count of distribution of oxycodone and three counts of using a telephone to commit a drug crime;
Danny Lee Decker, 42, of Mullens, Wyoming County, W.Va., was charged with conspiracy to distribute oxycodone, two counts of distribution of oxycodone, one count of aiding and abetting the distribution of oxycodone and three counts of using a telephone to commit a drug crime;
Joni Earlene Rash, 42, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone, one count of distribution of oxycodone and three counts of using a telephone to commit a drug crime;
Ralph Ray Cantley, 54, of Matheny, Wyoming County, W.Va., was charged with conspiracy to distribute oxycodone, one count of using a telephone to commit a drug crime and one count of maintaining a place for the purpose of distributing and using oxycodone;
Kathy Burchett, 38, Welch, McDowell County, W.Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Elizabeth Ann Stewart, 30, 0f Matheny, Wyoming County, W.Va., was charged with conspiracy to distribute oxycodone and one count of oxycodone;
Tonya Lynn Goode, 35, Matheny, Wyoming County, W.Va., was charged with conspiracy to distribute oxycodone and one count of distribution of oxycodone;
Anthony Lee Madison, 23, of Bluefield, Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Edgar Junior Ponce, 32, of Oceana, Wyoming County, W.Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Laken Nicole Myers, 25, of Welch, McDowell County, W.Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Randall Ray Parks, 51, of Welch, McDowell County, W.Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Lori Megan Falls, 29, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone and two counts of using a telephone to commit a drug crime;
Eric M. Tiller, 41, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Matthew M. Pigg, 27, of Montcalm, Mercer County, W.Va., was charged with possession with intent to distribute hydromorphone, a powerful prescription painkiller commonly known as Dilaudid;
Jennifer Marie Farley, 29, of Princeton, Mercer County, W.Va., was charged with three counts of distribution of hydromorphone;
Kevin Eugene Petty, 36, of Bluefield, Mercer County, W.Va., was charged with three counts of distribution of hydromorphone;
Rickey David Coburn, II, 26, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute hydromorphone and five counts of distribution of hydromorphone;
Lakeisha Danell Howze, 27, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute hydromorphone and distribution of hydromorphone.
An indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, each defendant faces up to 20 years in prison and a $1 million fine.
The Bluefield Pill Initiative is a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking specifically in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force which is made up of the West Virginia State Police Bureau of Criminal Investigation, Sheriffs’ Departments of Mercer, McDowell and Wyoming County, as well as the Bluefield and Princeton Police Departments.
Click on the links below to view the copies of the indictments:
Indictment 1
Indictment 2
Indictment 3
Indictment 4
Indictment 5
From Selling Time to Doing Time: U.S. Attorney for the Southern District of Illinois with U.S. Postal Inspection Service Prosecutes 34 in Various Timeshare Resale SchemesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today his participation in a multi-state, multi-national law enforcement initiative against deceptive timeshare resale scams. The initiative involves over two dozen state attorneys general, various federal, state and local law enforcement agencies, the Federal Trade Commission, and several U.S. Attorneys offices.
"The Southern District of Illinois leads the nation in prosecuting telemarketing fraud - my office prosecuted more defendants in fiscal year 2012 for telemarketing fraud than any other district in the nation," U.S. Attorney Wigginton announced. The Southern District of Illinois prosecuted several timeshare resale scams throughout Florida, as well as in Las Vegas, Nevada. The cases were brought in the Southern District of Illinois because these scams bilked timeshare owners here. So far, thirty-six telemarketers (36) have been convicted. Of those, two dozen have been sentenced with the kingpin of one of the scam companies receiving a sentence of over fifteen (15) years’ incarceration.
"The scams we prosecuted generated over $50 million dollars in ill-gotten gains. Behind this vast fortune lies a vast crime," Wigginton said.
The scams follow a familiar pattern. The timeshare owner, who bought into a dream sold by the timeshare developer, for various reasons, finds that she needs to sell her timeshare unit. Some do because they have lost employment or face some other economic hardship. Some do because they can no longer afford the maintenance costs. Others find that they just don't use it. Whatever the reason, when a telemarketer calls her on telephone and tells her that the telemarketer has a buyer or interested party for her timeshare unit who will pay at, near, or even more than the owner originally paid, the timeshare owner often jumps at the chance. The typical advanced fee of $1,000 to $2,000, which is solicited by the telemarketer who represents it to be closing related expenses like deed preparation, title and maintenance reports, seems a small price to pay for the thousands of dollars that the timeshare owner is guaranteed to receive by cashier's check from the title company which will be closing the sale. But the buyers turn out to be an illusion because there is no substantial market for reselling timeshares where the timeshare owner can get what they paid when originally purchased. When the timeshare owner who paid fees to these companies based upon a lie calls these companies to find out about the status of their closing, they are then lied to further. Few ever get their money back when they complain.
Since there never were any closings, the fees were split among the telemarketers often fueling expensive drug habits. "In the experience of our investigators, this is an industry where having a criminal record and an active drug habit is considered a real asset." (Wigginton was speaking of the cases that have pleaded guilty and have been sentenced.) In the words of one timeshare resale company owner, having a criminal record meant that the prospective telemarketer "was no goody two shoes." Since, in the words of one of the convicted telemarketers, "good salesmen" are "good liars." The ability and willingness to lie is a key job skill for the industry.
“Tens of thousands of people across the country have bought timeshares they can no longer afford to visit or maintain, and those falsely claiming they have a buyer for these timeshares are simply thieves,” said C. Steven Baker, Director of the Federal Trade Commission’s Midwest Region. “By working together with the U.S. Attorney’s office in the Southern District of Illinois we’ve been able to stop these scammers cold, get money back to victims, and see the crooks get the jail time they deserve.” The FTC has been involved in many of the timeshare resale cases prosecuted in the district.
"At least a bank robber commits his crime without pretense. Telemarketers, by contrast, hide behind a telephone to gain the trust of their victims with lies and manipulation. These crimes are particularly pernicious because the victims are not only robbed of their money, they are also robbed of their ability to trust," said Pete Zegarac, Inspector in Charge, Chicago Division, U.S. Postal Inspection Service. The U.S. Postal Inspection Service has been the lead agency in all telemarketing and mass marketing cases prosecuted in the Southern District of Illinois.
Wigginton has two words of advice for consumers called by telemarketers offering to sell their timeshare unit…."Hang up!"
Attachment - Spreadsheet
Former Vice President of University Medical Center in Lubbock Pleads Guilty in Federal Court to Mail FraudRead the Press Release
LUBBOCK, Texas — Robert Gregory Bruce, aka Greg Bruce, 46, appeared in federal court today before U.S. District Judge Sam R. Cummings and pleaded guilty to an Information charging one count of mail fraud and aiding abetting, stemming from a fraud scheme he ran while he served as a Vice President of University Medical Center (UMC) in Lubbock. Bruce, a resident of Lubbock, will remain on bond. He faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution. Judge Cummings ordered a presentencing investigative report with a sentencing date to be set upon the completion of that report.
According to documents filed in the case, beginning in June 2007 and continuing to December 12, 2011, Bruce conspired with Rudolph Reyes Mata, aka Rudy Mata, to submit false and fraudulent invoices for two companies, B.R. Media Monitoring (an alter ego of Bruce) and ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the fake invoices. Over the course of the conspiracy, Bruce and Mata caused UMC to pay approximately $681,908 on invoices for fake companies that did not provide goods or services as described in the invoices. Bruce used these funds, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses.
Bruce also admitted that he used a UMC credit card to make unauthorized payments and purchases of approximately $55,584.
The case is being investigated by the FBI. Assistant U.S. Attorney Amanda R. Burch is in charge of the prosecution.
Former New Jersey Law Firm Employees Who Embezzled More Than $788,000 in Law Firm Funds Sentenced to PrisonRead the Press Release
TRENTON, N.J. – Two former employees of a law firm based in Edison, N.J., were sentenced to prison terms today for conspiring to defraud their former employer by improperly diverting more than $788,000 from the law firm, U.S. Attorney Paul J. Fishman announced.
Marla Deptula, 46, of Sayreville, N.J., previously pleaded guilty to an information charging her with one count of conspiracy to commit mail fraud and one count of subscribing to a false tax return. She was sentenced to 20 months in prison. Rose L. Crabbe, 32, of Plainfield, N.J., pleaded guilty to an information charging her with one count of conspiracy to commit mail fraud. She was sentenced to 15 months in prison. Both defendants previously entered their guilty pleas before U.S. District Judge Peter G. Sheridan, who imposed the sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
Deptula and Crabbe each admitted that between February 2005 and September 2007, they conspired to embezzle, and did, in fact, embezzle, from their former employer, referred to in court documents only as the “Law Firm,” by wrongfully writing checks from the law firm’s trust and business accounts to themselves and their personal creditors to pay for their personal expenses, including credit card bills, real estate taxes and child care expenses. Deptula and Crabbe then mailed some of the checks to their personal creditors. They further admitted to attempting to hide their theft by altering the payee information in the law firm’s accounting records.
Deptula, who had access to the law firm’s bank accounts in order to perform her duties as a secretary in the law firm’s real estate section, used that access to divert more than $788,000 from the attorney trust and business accounts for her and Crabbe’s personal benefit. Deptula received the vast majority of the stolen funds and failed to report any of the income on her federal tax returns.
In addition to the prison terms, Deptula and Crabbe were both sentenced to three years of supervised release. Deptula was ordered to pay $705,093 in restitution and Crabbe was ordered to pay $74,206 in restitution.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Marie L. Kelokates: IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and the Middlesex County Prosecutor’s Office, under the direction of Acting Prosecutor Andrew C. Carey, for the investigation leading to today’s sentencings.
The government is represented by Special Assistant U.S. Attorney Joseph Muoio of the U.S. Attorney’s Office Criminal Division in Trenton.13- 238
Defense counsel: Deptula: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton
Crabbe: Michael Armstrong Esq., Willingboro, N.J.Former Fort Collins Resident Sentenced for Denial of Service Attack on Larimer County Government ComputersRead the Press Release
DENVER – David Joseph Rezendes, aka Joseph David Rezendes, aka Joe Rezendes, age 27, was sentenced Tuesday by U.S. District Court Judge R. Brooke Jackson to serve 18 months in federal prison for intentionally damaging a protected computer and for possession of unauthorized access devices (credit card information), United States Attorney John Walsh, FBI Denver Special Agent in Charge Thomas Ravenelle and Larimer County Sheriff Justin Smith announced. Rezendes was responsible for a denial of service attack he implemented to retaliate against the Larimer County government. After serving his sentence, Judge Jackson ordered Rezendes to spend 3 years on supervised release. Rezendes, who appeared at the hearing in custody, was remanded.
Rezendes was indicted by a federal grand jury on August 27, 2012. He pled guilty before Judge Jackson on March 8, 2013. He was sentenced on June 4, 2013. A hearing has been scheduled for July 23, 2013 for the court to set the amount of restitution Rezendes must pay to Larimer County.
According to court records, starting on Wednesday, September 22, 2010, a debilitating denial of service attack was launched against Larimer County government’s computer network. A denial of service attack makes a computer resource, such as a network or processor, unavailable to its intended users. A common denial of service attack involves a computer or computer network saturating a targeted victim computer system or network, overwhelming that system or network with traffic or communications requests. The attack lasted until September 24, 2010. A second attack occurred between October 4, 2010 and October 6, 2010. The denial of service attacks affected Larimer County employees’ ability to access email and county records. Two departments’ telephone systems were affected, as was the public’s ability to access county services online.
The Larimer County Sheriff’s Department and the FBI investigated the attack. As part of their investigation, law enforcement executed a court authorized search warrant of Rezendes’ residence. Computers and computer components were seized during the search. FBI case agents and Larimer County Sheriff’s Department computer forensic experts performed an analysis examining the data on the computers, uncovering evidence that the defendant was in fact responsible for the denial of service attack. They also uncovered evidence that Rezendes possessed stolen credit card information for more than 100 individuals.
As a consequence of his earlier guilty pleas, Rezendes is subject to a criminal asset forfeiture, which states that upon conviction of the violations stated in the guilty plea, the defendant shall forfeit to the United States any and all of the defendant’s right, title and interest in all property constituting and derived from any proceeds obtained directly and indirectly as a result of such offense, or property used to commit the offense, to include computers and computer components. In this case the defendant had to forfeit: 3 desktop computers, 3 laptop computers, 9 computer hard drives, 2 routers, 3 cable modems, a 32GB SDHC card, a USB thumb drive, a Camcorder, a WiFi Network Adapter, an omni-directional antenna, and a magnetic stripe card reader/writer.
“Rezendes attacked the Larimer County computer system because he was angry about a traffic ticket,” said U.S. Attorney John Walsh. “His denial of service attack impacted thousands of people for several days. Thanks to the excellent work of the Larimer County Sheriff and the FBI, Rezendes will spend 18 months in prison.”
“In this case, a personal vendetta against a government agency turned into a criminal act,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “Regardless of motivation, the FBI is committed to tracking down cybercriminals who launch such malicious, targeted attacks.”
“The computer attack in this case had a significant impact on Larimer County both operationally and financially,” said Larimer County Sheriff Justin Smith. “Cyber-crimes of this nature underscore the importance of cooperation between local and federal officials and the need for their expertise and assistance.”
This case was investigated by the Larimer County Sheriff’s Office and the Federal Bureau of Investigation.
The defendant was prosecuted by Assistant United States Attorney Ryan Bergsieker.
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Former Executive Director of Noah, Stacey Jackson, IndictedRead the Press Release
STACEY JACKSON, age 46, a resident of New Orleans, Louisiana, was charged in a four count indictment by a Federal Grand Jury today with Conspiracy, Soliciting and Demanding Payment in Association with a Program Receiving Federal Funds, Theft of Federal Funds, and Obstruction of Justice, announced U. S. Attorney Dana Boente.
According to court documents, JACKSON, the Executive Director of New Orleans Affordable Homeownership (“NOAH”), a city agency and non-profit corporation, conspired with Earl Myers, Trellis Smith, and others to misuse and personally benefit from federal funds that NOAH had received, in violation of the law. The United States Department of Housing and Urban Development (“HUD”), both before and after Hurricane Katrina, had provided grant money to the City of New Orleans to address blight within the city and to remediate homes damaged by the storm.
STACEY JACKSON, as the Executive Director of NOAH, was responsible for the day to day management of the agency and determined how much each sub-contractor would be paid. According to the Indictment, JACKSON arranged for excessive payments to subcontractors with the expectation that those subcontractors would kickback portions of the overpayments to JACKSON’S benefit.
Additionally, JACKSON is charged with Obstructing Justice by submitting false and forged invoices to a Federal Grand Jury in response to Grand Jury subpoenas.
If convicted, JACKSON faces a maximum term of imprisonment of five (5) years along with a fine of $250,000, and three (3) years of supervised release on the Conspiracy count, and ten (10) years, a fine of $250,000.00 and three (3) years of supervised release for the additional counts.
U. S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the Department of Housing and Urban Development—Office of Inspector General.
The case is being prosecuted by Assistant U. S. Attorney Dan Friel and First Assistant United States Attorney Fred Harper.
(Download Indictment )
Former Apalachicola Housing Authority Director Indicted for Misuse of FundsRead the Press Release
TALLAHASSEE, FLORIDA – Selena Jo Noblit, 42, of Panama City, Florida, appeared today in federal court, charged with stealing funds from a program that received federal grant money.
According to the criminal indictment, between June 2011 and May 2012, while serving as the executive director of the Apalachicola Housing Authority located in Franklin County, Florida, Noblit allegedly embezzled and misapplied funds under the control of the housing authority for her personal gain and for the benefit of others who were not entitled to the funds.
Noblit is scheduled for trial on August 5, 2013, before Judge Robert L. Hinkle. She is facing a possible maximum sentence of ten years in prison, three years of supervised release, a $250,000 fine, and a $100 special monetary assessment.
U.S. Attorney Marsh praised the work of the U.S. Department of Housing and Urban Development, Office of Inspector General, whose investigation led to the indictment in the case.
The case is being prosecuted by Assistant U.S. Attorneys Winifred Acosta NeSmith and Eric K. Mountin.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.
Final Defendant in Idaho Meth Trafficking Conspiracy Sentenced to Life in PrisonRead the Press Release
BOISE – Jim Allen Loveland, 58, of Boise, Idaho, was sentenced yesterday in United States District Court in Boise to life in prison for conspiracy to possess with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Loveland to serve 10 years of supervised release.
Loveland was convicted by a federal jury on January 22, 2013, along with co-conspirators Jesus Guadalupe Sanchez, a/k/a Jose Salazar, and Michael Dennis Morris. According to evidence presented during the six-day trial, Loveland, Sanchez and Morris were convicted of conspiring with others, including co-defendants, to distribute a total of approximately eleven pounds of methamphetamine in Canyon, Payette and Washington counties between November 2011 and May 16, 2012.
Prior to Loveland’s jury trial, the U.S. Attorney’s Office, in a court filing, notified Loveland that he had two prior felony drug offense convictions, one out of Nevada in 1999 and the other out of Idaho in 1985. Because of these prior convictions, Loveland was sentenced to a mandatory life sentence, which is required by federal statute.
Ten co-defendants sentenced earlier include:
- Jesus Guadalupe Sanchez, a/k/a Jose Salazar, 32, a Mexican national, the leader and organizer of the conspiracy, was sentenced in April 2013 to 400 months in prison for conspiracy to distribute methamphetamine, and possession of methamphetamine with intent to distribute.
- Michael Dennis Morris, 42, of Weiser, Idaho, was sentenced in April 2013 to 156 months in prison and fined $2,000 for conspiracy to possess with intent to distribute methamphetamine.
- Dawson Lee Moore, 60, also of Weiser, was sentenced in March 2013 to 36 months in prison and fined $1,000 for conspiracy to possess with intent to distribute methamphetamine.
- Benjamine L. Vertner, 34, of Ontario, Oregon, was sentenced in February 2013 to 138 months in prison for conspiracy to possess with intent to distribute methamphetamine.
- Jacob James Clevenger, 31, of Weiser, was sentenced in February 2013 to 188 months in prison for conspiracy to possess with intent to distribute methamphetamine.
- Kristopher Hensley, a/k/a Casey (I.C.) Hensley, 27, of Weiser, was sentenced in February 2013 to 51 months in prison for conspiracy to possess with intent to distribute methamphetamine.
- Johnny A. Tambunga, 40, of Weiser, was sentenced in February 2013 to 47 months in prison for conspiracy to possess with intent to distribute methamphetamine.
- Mario Martinez, Jr., 55, of Greenleaf, Idaho, was sentenced in February to 57 months in prison for conspiracy to possess with intent to distribute methamphetamine.
- Fabian Jordano Beltran, 24, of Weiser, was sentenced in February to 36 months in prison for conspiracy to possess with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking offense.
- Patric Campbell, 36, of Boise, was sentenced in February 2013 124 months in prison for conspiracy to possess with intent to distribute methamphetamine.
"These drug traffickers well deserve the lengthy sentences the Court imposed," said Olson. "This outstanding investigation and prosecution demonstrate that federal, state and local law enforcement will work together in all parts of Idaho to ensure that those who seek to poison our communities with this poisonous drug are caught, prosecuted and punished."
The case was investigated by the Idaho State Police with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Federal Court Permanently Enjoins Florida Tax Return PreparerRead the Press Release
A federal court in Miami has permanently barred Osvaldo J. Diaz of Coral Gables, Florida, from preparing federal tax returns for others, the Justice Department announced today. The permanent injunction order was signed by Judge Jose E. Martinez of the U.S. District Court for the Southern District of Florida.
The government’s complaint alleged that Diaz prepared tax returns that fabricated deductions and credits in an attempt to understate his customers’ tax liabilities or inflate his customers’ refunds. Specifically, the government alleged that Diaz fabricated business and personal expenses and inflated real estate losses for his customers. According to the complaint, the Internal Revenue Service examined 250 returns prepared by Diaz and found that 93 percent resulted in additional taxes being owed. The government alleged that the tax loss from the returns prepared by Diaz could be tens of millions of dollars.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.
Federal Agents Arrest Six People Across Alabama Charged with State Inmate in Tax Refund SchemeRead the Press Release
Indictment.pdf
BIRMINGHAM – Federal agents today arrested six people in four cities across Alabama who are charged in connection with a five-year federal tax fraud conspiracy directed from inside an Alabama state prison, announced U.S. Attorney Joyce White Vance, Internal Revenue Service Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot, and FBI Special Agent in Charge Richard D. Schwein Jr.
The man charged as the leader of the conspiracy, SHERMAINE “Shade” GERMAN, 56, now incarcerated in Bibb County Correctional Facility in Brent, was an inmate at Donaldson Correctional Facility in Bessemer at the time of the conspiracy. He is charged with orchestrating the far-reaching tax fraud scheme from Donaldson, where he obtained the names, birth dates and Social Security numbers of other people, often fellow inmates, including prisoners on death row and those serving sentences of life without parole. He used their information to create false income tax returns that contained fabricated amounts of tax withholdings, according to the indictment unsealed following the arrests.
German also created false power of attorney forms, which he mailed out of the prison along with the false income tax returns, according to the indictment. Various other members of the conspiracy notarized the power of attorney forms and used them to cash or deposit income tax refund checks received as part of the scheme, according to the indictment.
Six of seven people charged in the conspiracy with German were arrested today in Huntsville, Montgomery, Eufaula and Mobile.
“Schemes such as this involve millions of dollars stolen from legitimate taxpayers and the U.S. Treasury,” Vance said. “Thanks to the diligent and cooperative efforts of law enforcement, we were able to shut down this long-term fraud.”
"Individuals who commit refund fraud and identity theft with this degree of trickery, dishonesty and deceit deserve to be punished to the fullest extent of the law," Hyman-Pillot said. "We, along with the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system.”
“This case, as others our office and our law enforcement partners have investigated, shows that a person's identity and identification numbers have become a valuable commodity to today's criminal and should be guarded diligently by their owners,” Schwein said.
The 20-count May indictment filed in U.S. District Court charges that German and his co-defendants conspired from January 2008 through May 2013 to obtain payment of false claims for refunds from the Internal Revenue Service by filing fraudulent federal income tax returns in other people’s names.
Charged along with German in the conspiracy are: RONALD WEBSTER, 55, BRENDA JOYCE McDONALD, 55, and YVETTE BERRY PINCKNEY, 48, all of Montgomery; MARLO YVETTE MILLER, 46, and IRENE KING DOUGLAS, 58, both of Huntsville; CYNTHIA DIANNE WARE, 49, of Eufaula; and BARBARA ANN GRIMES, 62, of Mobile.
McDonald is the one defendant not yet in custody.
Further details of the scheme, as outlined in Count One of the indictment, are as follows:
Douglas sent blank tax return forms to German in prison. Douglas also received and cashed or deposited proceeds from tax refund checks using power of attorney forms she had someone else notarize.
German used two addresses in Montgomery and one in Mobile as return addresses where tax refunds should be delivered. One of the addresses was a Montgomery P.O. Box owned by Webster; one was the Montgomery apartment address of McDonald on Bonaparte Boulevard; and the third was a Mobile P.O. Box from which Grimes collected refund checks and power of attorney forms.
Webster collected IRS refund checks mailed to his P.O. Box and provided the checks and power of attorney forms to other co-conspirators, including Miller and Ware in Huntsville and Pinckney in Montgomery. Pinckney notarized power of attorney forms and, along with other co-conspirators, used the forms to cash or deposit fraudulent refund checks. Proceeds from the scheme were deposited into Pinckney’s Regions Bank account. Pinckney communicated with German on a contraband telephone he had in prison.
Miller cashed or deposited the fraudulent refund checks she received from Webster into Regions Bank or Redstone Federal Credit Union.
McDonald collected fraudulent refund checks mailed to her Montgomery apartment and provided them to Webster.
Grimes received fraudulent refund checks and power of attorney forms at the Mobile P.O. Box, had the power of attorney forms notarized, and then used them to cash or deposit the checks.
Counts Two through Nine of the indictment charge German and Webster with making false claims to the IRS.
Counts 10 through 15 charge German with mail fraud for causing or aiding others in causing the U.S. Postal Service to deliver fraudulent refund checks to the Montgomery and Mobile addresses.
Count 16 charges German, Webster, McDonald and Grimes with conspiracy to commit mail fraud against the U.S. Department of Treasury.
Counts 17 through 20 are aggravated identity fraud charges against German and Webster for using other people’s identifying information to create and file false tax returns.
The conspiracy to defraud the government and false claims charges both carry a maximum penalty of 10 years in prison and a $250,000 fine. Mail fraud and conspiracy to commit mail fraud both carry a maximum penalty of 20 years in prison and a $250,000 fine. Aggravated identity fraud carries a two-year minimum mandatory prison sentence that must be served consecutively to any other sentence imposed in the crime.
The IRS and FBI investigated the case. Assistant U.S. Attorney Russell E. Penfield is prosecuting the case.
The public is reminded that an indictment is only a charge. A defendant is presumed innocent and it will be the government’s responsibility to prove guilt beyond a shadow of a doubt at trial.
Erin Ruth Smith 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, ERIN RUTH SMITH, a 21-year-old resident of Wyola and an enrolled member of the Crow Tribe of Indians, was sentenced to a term of:
Prison: 46 months
Special Assessment: $300
Restitution: to be determined
Supervised Release: 3 years
SMITH was sentenced in connection with her guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
On August 31, 2012, at approximately 8:30 a.m., SMITH was driving (alone) on the Crow Indian Reservation and then went onto Interstate 90. However SMITH was going the wrong way (eastward in the west-bound lanes). SMITH crashed head-on into a vehicle driven by F.H.M. F.H.M. had moved to the passing lane because he was trying to pass a Suburban. F.H.M.'s wife, L.M., along with two other passengers, B.B.C. and L.C., were critically injured in the crash. F.H.M. was not seriously injured and was released from the hospital later that day. Both L.M. and B.B.C. underwent emergency surgeries on the day of the crash. L.C. underwent surgery on September 4, 2012. Additional surgeries were also done. Doctors for L.M., L.C., and B.B.C signed forms indicating that their injuries met the definition of serious bodily injury. Since the crash, L.M., B.B.C., and L.C. have spent multiple days in the hospital and have had numerous surgeries.
SMITH, at the scene of the crash, admitted to drinking alcohol before the crash. She was interviewed while in the hospital recovering from injuries about the crash and the events leading up to the crash. She indicated that she was not sure how she was driving her friend's car the wrong direction on Interstate 90. SMITH, however, was certain that she had not stolen the car. SMITH recalled drinking whiskey and beer and partying with a friend before the crash. At the end of the interview with the agents, SMITH stated, "I am sorry, guys - I am sorry, never again, no more drinking and driving."
SMITH's blood was drawn shortly after the crash, and was sent to the FBI lab for analysis. The results were that SMITH's BAC was 0.235 gm/ml.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SMITH will likely serve all of the time imposed by the court. In the federal system, SMITH does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
East St. Louis Man Sentenced on Firearm OffenseRead the Press Release
Detrin C. Spraggins, 46, of East St. Louis, IL, was sentenced in federal district court on June 6, 2013, to 24 months in prison, to be followed by three years supervised release, a $100 special assessment, and a $200 fine, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Facts presented in court revealed that on February 15, 2012, law enforcement officers patrolling in East St. Louis, Illinois, observed individuals standing around a pickup truck parked across the street from an apartment building. As officers drove closer, the driver of the pickup truck, later identified as Spraggins, closed the driver’s door and quickly sped off. Other officers stopped Spraggins when he pulled into a driveway. Spraggins consented to a body search, where contraband was discovered. This find led to an officer opening the door of the pickup to look for additional contraband. As he did so, he noticed the butt of a firearm sticking out of the driver’s side door pocket.
The case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gun-related violence.
This investigation was conducted by the WAVE Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Delano Man Indicted for Robbing Buffalo McDonald’sRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 34-year-old Delano man in connection with the April 24, 2013, robbery of a McDonald’s in Buffalo. Matthew Dillon Sisneros was charged with one count of interference with commerce by robbery, pursuant to the Hobbs Act, one count of possession of a firearm in furtherance of a crime of violence, one count of being a felon in possession of a firearm and one count of possession of an unregistered firearm. On June 5, 2013, the indictment was unsealed following the defendant’s initial appearance in federal court.
The indictment alleges that on April 24, 2013, Sisneros took an undisclosed amount of money from the restaurant and threatened violence against the employees with a firearm. It also alleges that on April 24, Sisneros possessed a 12-gauge, semi-automatic, sawed-off shotgun with an obliterated serial number. The shotgun, which had a barrel length of less than 18 inches and an overall length of less than 26 inches, was not registered to him in the National Firearms Registration and Transfer Record, as required by law.
Because he is a felon, Sisneros, also known as Matthew Dylan Sisneros, is prohibited under federal law from possessing a firearm or ammunition at any time. He was previously convicted in Hennepin County for aggravated robbery (2000) and offering a forged check (2001).The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
If convicted, Sisneros faces a potential maximum penalty of 20 years in prison on the robbery count, a mandatory minimum penalty of ten years for possession of a firearm in furtherance of a crime of violence, and a potential maximum penalty of ten years on each of the other two counts. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the Buffalo Police Department, the Wright County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, with cooperation from the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Laura M. Provinzino.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
David Elmer Muskrat Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 6, 2013, before U.S. Magistrate Judge Keith Strong, DAVID ELMER MUSKRAT, a 35-year-old resident of Poplar and an enrolled member of a federally-recognized tribe, pled guilty to second degree murder. Sentencing has been set for September 26, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On September 1, 2012, MUSKRAT was driving around Poplar, which is within the exterior boundaries of the Fort Peck Indian Reservation, looking for "X.X.", the now-deceased victim. Along the way, he expressed to more than one person his intent to kill X.X. if he found him. MUSKRAT was coming around a corner in Poplar and spotted X.X. walking down the street. MUSKRAT accelerated his SUV into X.X. and hit him with the vehicle. X.X. died. MUSKRAT fled the scene in the SUV.
This case is one of many examples of serious felonies the Montana U.S. Attorney's Office rigorously prosecutes in Indian Country every year. It is also a living example of the power of interagency collaboration. Five agencies devoted time, effort, and resources to this case, including the Federal Bureau of Investigation, Fort Peck Criminal Investigators, Fort Peck Department of Law and Justice, the Poplar Police Department, and the Roosevelt County Sheriff's Office, all of which resulted in justice being achieved for the victim in this case." U.S. Attorney Michael W. Cotter.
MUSKRAT faces possible penalties of life in prison and a $250,000 fine.
The investigation was a cooperative effort between the Federal Bureau of Investigation, Fort Peck Criminal Investigators, Fort Peck Department of Law and Justice, the Poplar Police Department, and the Roosevelt County Sheriff's Office.
Dart Trucking Officials Guilty in $3.6 Million Check-Kiting Bank FraudRead the Press Release
Two officials with Dart Trucking were found guilty of bank fraud charges related to a $3.6 million check-kiting scheme against Huntington Bank, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Timothy Kephart, 54, of Morrisdale, Penn, the chief executive officer of Dart Trucking, and Mark Michael, age 55, of Clearfield, Penn., the chief financial officer of Dart Trucking, were both found guilty of one count of conspiracy to commit bank fraud and one count of bank fraud.
The men are scheduled to be sentenced by U.S. District Judge Dan Aaron Polster on September 4, 2013.
Kephart and Michael were charged with kiting checks, in conspiracy with Lee Stoneburner, the president of Dart Trucking, from October 2007 until February 2010, from various accounts of Dart Trucking at Huntington Bank, in Columbiana, Ohio.
Stoneburner, 44, from the Columbiana, Ohio area, previously pleaded guilty to conspiring to commit bank fraud and is awaiting sentencing.
A check kiting scheme involves writing a series of worthless, non-sufficient funds (NSF) checks where a NSF check from one bank account was deposited into another account; another NSF check would then be written to cover the previous NSF check, concealing the overdraft from the bank, such that a false balance, or “float,” was created in the accounts. The defendants would then use that falsely created “float” to pay their bills, expenses, and to pay their salaries.
The evidence at trial established that it was a complicated, daily task to compute the amount of NSF checks which had to be written and to track what accounts had to be “covered” and from which accounts a NSF check could be written to cover a particular account. These officers involved their clerical staff in tracking and covering these checks. The use of “controlled disbursement accounts” or “CDA’s,” which allowed the company an extra day to post its expenses before they paid them, gave the company a float it could draw upon over the course of this scheme.
This case was prosecuted by Assistant United States Attorney Christian H. Stickan and Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Federal Bureau of Investigation, Youngstown, Ohio.
Danville Man Convicted of Wire Fraud and Identity TheftRead the Press Release
OAKLAND – Behzad Talai Mofrad pleaded guilty in federal court in Oakland today to wire fraud and aggravated identity theft, announced United States Attorney Melinda Haag.
In pleading guilty, Mofrad admitted to utilizing the means of identification of J.W., a real, but missing, person, to obtain false identification. Mofrad also admitted to using the false identification to fraudulently lease a 2013 BMW M3 coupe automobile from an Alameda County car dealership. Mofrad had planned to sell the M3 for money but was arrested before doing so.
Mofrad, 47, of Danville, was charged by Information on April 9, 2013. He was charged with two counts of wire fraud in violation of 18 U.S.C. § 1343, and one count of aggravated identity theft in violation of 18 U.S.C. § 1028A. Under the plea agreement, Mofrad pleaded guilty to all counts.
Mofrad sentencing hearing is scheduled for October 3, 2013, before The Honorable Yvonne Gonzalez Rogers, U.S. District Judge, in Oakland, California. The maximum statutory penalty for each wire fraud count in violation of 18 U.S.C. § 1343 is 20 years’ imprisonment, and a fine of $250,000. In addition, the mandatory penalty for aggravated identity theft is two years’ imprisonment. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rodney C. Villazor is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal assistant Vanessa Quant. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Berkeley Police Department.
Court Approves Orleans Parish Prison Reform PlanRead the Press Release
The U.S. District Court for the Eastern District of Louisiana has mandated systemic reform of unconstitutional conditions at the Orleans Parish Prison (OPP), by entering the proposed consent judgment executed by the United States, class plaintiffs, and Sheriff Marlin Gusman in Jones v. Gusman. The agreement was filed with the court by the parties on Dec. 11, 2012.
The consent judgment requires the sheriff to undertake comprehensive remedial measures to address the deficiencies in prisoner safety from physical and sexual assaults, medical and mental health care, suicide prevention, environmental and life safety and limited English proficiency services for Spanish-speaking prisoners.
The Justice Department initiated a comprehensive investigation in February 2008, under the Civil Rights of Institutionalized Persons Act, with the assistance of experts in the fields of corrections, correctional medical and mental health care and environmental safety and sanitation. The department issued comprehensive findings regarding its investigation in Sept. 2009, with an emergency update to its findings in April 2012 after conditions had not improved, and in some instances had deteriorated. In September 2012, the department intervened in the Jones case, a class action lawsuit filed by the Southern Poverty Law Center on behalf of current and future prisoners.
Today’s consent judgment requires:
• Development and implementation of policies, procedures and training regarding all aspects of correctional management, including use of force, investigations of serious incidents, prevention of prison rape and contraband prevention and detection; • The appointment of a professional jail administrator and other key accountability measures; • Tracking of facility data to determine where in the facility dangerous incidents are happening and what can be done to prevent further incidents; • Adequate staffing to ensure that prisoners are safe and tha staff can perform their duties without unreasonable risk of injury;
• Provision of adequate medical and mental health care, including access to necessary medications and treatment, as well as appropriate supervision and intervention for individuals who are or become suicidal; • Improvements in sanitation and fire safety; • Ensuring that Spanish-speaking inmates with limited English proficiency have access to Spanish language translations to enable them to access medical and other basic services; • Appointment of an independent monitor with expertise in the areas covered by this agreement.
In addition to monitoring of agreement implementation, the independent monitor will periodically inspect the facility for compliance and provide technical assistance to OPP staff regarding how to achieve compliance.
These requirements apply as long as inmates are in the current OPP facilities and will remain in place when the new jail facility is completed and put into use.
The court found that these remedies are fair, adequate, reasonable and minimally necessary to bring OPP conditions up to federal constitutional and statutory requirements. Additionally, state law-mandated city funding of OPP operations must be adequate to support the ordered remedies.
“The Justice Department is eager to move forward with proactive solutions to the inhumane conditions that have plagued the Orleans Parish Prison,” said Roy L. Austin, Jr. Deputy Assistant Attorney General for the Civil Rights Division. “The court’s order today is another step in our ongoing efforts in the City of New Orleans to promote public safety through a contemporary criminal justice system that meets constitutional standards. We look forward to working with all the necessary parties to see to it that this goal is achieved.”
The City of New Orleans was joined by the sheriff as defendant to this case on the sole question of the level of funding the city must provide. The funding dispute between the city and the sheriff is not resolved by this order.
In a hearing on Aug. 5, 2013, the court will determine the appropriate level and allocation of responsibility for OPP funding under the consent judgment between the sheriff and city, who are both defendants in Jones.
This investigation was led by the Special Litigation Section of the Civil Rights Division. For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt .
Coon Rapids Man Indicted for Receiving, Possessing, Attempting to Distribute Child PornographyRead the Press Release
MINNEAPOLIS—A federal indictment unsealed recently charges a 54-year-old Coon Rapids man with receiving, possessing and attempting to distribute child pornography. The indictment, which was filed on May 20, 2013, charges Guy Edward Wheelock with seven counts of attempted distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. On June 4, 2013, the indictment was unsealed following Wheelock’s initial appearance in federal court.
The indictment alleges that on seven occasions between September 13 and 20, 2011, Wheelock attempted to distribute, via a computer, videos involving minors engaged in sexually explicit conduct. It also alleges that on February 2, 2012, Wheelock received videos of similar conduct, and that he possessed several videos of similar conduct.
If convicted, Wheelock faces a potential maximum penalty of 40 years for each attempted distribution and receipt count and 20 years on the possession count. Any sentence would be determined by a federal district court judge.This case is the result of an investigation by the Minnesota Internet Crimes Against Children Task Force, the Minneapolis Police Department, and the Anoka County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Manda M. Sertich and Laura M. Provinzino.
Distribution, receipt and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Convicted Felon Charged in Federal Court with Possession of A FirearmRead the Press Release
PROVIDENCE, R.I. – Troy L Antley, 44, of Providence, is scheduled to make an initial appearance in U.S. District Court in Providence on June 12, 2013, charged by way of a federal criminal complaint with being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
Antley was arrested by Providence Police on June 2, 2013, following a brief but violent struggle with officers after Rhode Island State Police Colonel Steven G. O’Donnell spotted Antley allegedly walking in Providence with a firearm stuck in his waistband.
According to an affidavit in support of a criminal complaint filed with the court, Colonel O’Donnell, unarmed at the time, alerted Providence Police and continued to follow Antley while relaying his observations. Colonel O’Donnell continued to follow Antley as Antley allegedly entered a vehicle and began to drive away from the area.
According to the affidavit, responding officers quickly located and blocked Antley’s vehicle. As they did, Antley allegedly exited the vehicle and fled on foot. Officers chased and quickly apprehended Antley, who allegedly fought with two of the officers while being arrested.
A fully loaded .45 caliber handgun was recovered from the vehicle allegedly driven by Antley. The hammer on the gun was cocked back. An examination of the firearm by ATF revealed that the fiream had been reported stolen.
According to information presented to the court, Antley was previously convicted in R.I. state court on felony charges for robbery, drug trafficking and assault with a dangerous weapon.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah
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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]Cleveland Man Sentenced to Serve 33 Years in Prison for Production of Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – Jerry Ray Tyler, Jr., 30, of Cleveland, Tenn., was sentenced on June 6, 2013, by the Honorable Curtis L. Collier, U.S. District Court Judge, to serve 400 months in federal prison.
Tyler was charged in a November 2012 indictment with seven counts of production of child pornography by a parent; 12 counts of distribution of child pornography; and eight counts of receipt of child pornography. In February 2013, Tyler pleaded guilty to one count of production of child pornography by a parent and one count of distribution of child pornography. Tyler faced a maximum of 30 years for each count of production of child pornography and a maximum of 20 years for each count of distribution or receipt of child pornography. Judge Collier ordered the maximum sentence for each offense and then ordered the sentences to run partially consecutive to each other to reach the total sentence of 400 months. This sentence is to be followed by 20 years of supervised release.
This investigation began with an Internet Crimes Against Children Task Force Officer acting on a lead from the National Center for Missing and Exploited Children. That lead resulted in a search of Tyler’s house, computers and cellular phone. The electronics were found to contain the images of child pornography, including images taken by Tyler of two minor children.
Agencies involved in this investigation included the Federal Bureau of Investigations, Violent Crimes Against Children Task Force, Department of Homeland Security, Investigations Division, and Bradley County Sheriff’s Office, Internet Crimes Against Children Task Force. Terra L. Bay, Assistant U.S. Attorney represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a Department initiative launched in 2006 that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal 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 visit ProjectSafeChildhood.gov
Christiana Mall Armed Robber Pleads GuiltyRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, and Stephen E. Vogt, Special Agent in Charge of the Baltimore Field Office of the Federal Bureau of Investigation, announced today that defendant Phillip Collier pled guilty yesterday afternoon to two counts of committing Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and one count of possessing and using a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c), for his role in two armed robberies of Zales Jewelry Stores located in the Christiana Mall in Newark, Delaware, and the Owings Mills Mall in Owings, Maryland.
According to facts disclosed at the change of plea hearing, on May 7, 2012, Collier, a forty-year old man from Brooklyn, New York, robbed a Zales Jewelry store in the Owings Mills Mall in Owings Mills, Maryland. During the robbery, Collier pointed a firearm at store employees and directed employees to empty approximately $116,277.82 worth of jewelry into a bag he carried into the store. Collier then ordered the employees into a back room of the store before he fled the mall.
On August 6, 2012, Collier struck again, when he robbed another Zales Jewelry store in the Christiana Mall in Newark, Delaware. Like the prior robbery, Collier pointed a firearm at store employees and directed employees to empty approximately $163,008.08 worth of jewelry into a bag he carried into the store. Collier then ordered the employees into the store’s bathroom before he fled the mall. However, before Collier could escape, Christiana Mall security notified the Delaware State Police about the robbery, and that Collier had entered another car located in the mall parking lot.
Troopers from Delaware State Police-Troop 2 immediately responded to the scene and executed a traffic stop of the car in which Collier was located. Collier was subsequently arrested in the car along with the stolen jewelry and the firearm used during the robbery. Following his arrest, the FBI, along with the Baltimore County Police Department, also linked Collier to the Owings Mills Mall armed robbery through positive fingerprint identification.
United States Attorney Charles M. Oberly, III, said of the case: "This plea reflects the outstanding work of the Wilmington FBI office, the Delaware State Police, the Baltimore County Police Department, and Jamie McCall, the AUSA handling the prosecution, in the apprehension and conviction of a particularly brazen and dangerous offender, who carried out his crimes in crowded malls, risking the lives of patrons and employees of Zales Jewelry Stores.”
Individuals who commit violent criminal acts with handguns in Delaware and Maryland will always be a priority for the FBI”, said Special Agent in Charge Stephen E. Vogt. “Our law enforcement partners in both states, along with security personnel in Delaware, did an outstanding job in investigating and prosecuting this case.”
A sentencing hearing has been scheduled by the District Court for September 19, 2013 at 9:30 a.m. At sentencing, Collier faces a maximum penalty of 20 years in prison for each Hobbs Act Robbery offense, and a maximum penalty of up to life imprisonment, with a mandatory minimum sentence of 7 years to be served consecutively to any other sentence for possessing and using a firearm in furtherance of a crime of violence.
This case was investigated by the FBI, Wilmington Resident Agency, the Delaware State Police, and the Baltimore County Police Department. Assistant United States Attorney Jamie M. McCall prosecuted the case.
For further information, contact Assistant United States Attorney Jamie M. McCall or United States Attorney Charles M. Oberly, IIICedar Rapids Dentist to Pay $100,000 to Resolve False Claims Act AllegationsRead the Press Release
Dennis Schuller, D.D.S., a Cedar Rapids dentist, has agreed to pay $100,000 to resolve allegations that he violated the False Claims Act by improperly billing the Medicaid system for certain x-rays and exams, medically unnecessary procedures, and other medically unnecessary items.
Specifically, the government alleged that, between August 1, 2008, and June 30, 2010, Dr. Schuller improperly billed for visits performed exclusively by a hygienist as well as medically unnecessary debridements and scalings. In addition, the government claimed Dr. Schuller improperly charged the Medicaid system for certain single tooth x-rays, medically unnecessary occlusal guards, and medically unnecessary doses of desensitizing medication. The claims settled by the agreement are allegations only; there has been no admission or judicial determination of liability.
“This settlement is an important step in furthering our district’s healthcare fraud enforcement program,” said Sean Berry, United States Attorney for the Northern District of Iowa. “Citizens are encouraged to report potential fraudulent conduct by healthcare providers to help our office ensure fair and efficient health systems throughout the district.”
The allegations resolved by the settlement arose from an investigation led by the Department of Health and Human Services. False claims act cases also arise under the qui tam, or whistleblower provisions of the False Claims Act. Under those provisions, a private party may file suit on behalf of the United States for false claims and share in any recovery.
Carjacker Exiled to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Dwayne Frazier, age 50, of Baltimore, to 12 years in prison, followed by three years of supervised release, for carjacking. The sentence was imposed on June 3, 2013, following Frazier’s guilty plea on the first day of trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore City Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; and Maryland Attorney General Douglas F. Gansler.
According to Frazier’s plea agreement, on August 14, 2010, Frazier, John Franklin and Troy Williams carjacked two vehicles. Franklin waved down a man driving a Buick LeSabre, telling the driver that he needed a hack (an unlicensed cab ride) to East Baltimore. The driver agreed and Franklin, Frazier, and Williams got into the car. A short time later, Frazier and his co-conspirators robbed the driver at gunpoint, taking his license, cell phone and cash, then ordered the victim out of the vehicle. Frazier and the other men then drove away in the LeSabre.
Approximately 15 minutes later, driving the LeSabre, Frazier and his co-conspirators approached three women who had just parked their Dodge Charger in the 4000 block of East Lombard Street. As the women got out of the car, Franklin and Williams walked up to the women and robbed them at gunpoint, then demanded the keys to the car. Franklin and Williams then drove away in the Charger, followed by Frazier driving the LeSabre.
Baltimore Police officers responding to the report of the armed carjacking of the Charger saw the Charger being followed by the LeSabre. Officers were able to stop the LeSabre and arrest Frazier, but the Charger sped away, eventually hitting a parked car. Police saw Franklin and Williams bail out of the Charger and run away. With the help of the Baltimore Police helicopter unit, officers located Williams under a parked car. Franklin was located nearby. Police recovered from Franklin the first victim’s driver’s license as well as a cellphone belonging to one of the women. A fully-loaded .357 caliber revolver was recovered in the same block where Franklin was arrested.
John Franklin, age 41, of Baltimore, Maryland, was previously convicted after trial and sentenced to 414 months in prison. Troy Williams, age 44, of Baltimore, pleaded guilty to his role in the scheme and is scheduled to be sentencing on June 18, 2013.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, Baltimore City State’s Attorney’s Office and the Maryland Attorney General’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr. and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
Career Offender Pleads Guilty to Bank Robbery SpreeRead the Press Release
SAN JOSE, Calif. – James Kellems pleaded guilty today to robbing two banks in Campbell and one in Capitola between October 25, 2010, and November 12, 2010, announced United States Attorney Melinda Haag.
Kellems, 54, pleaded guilty to three counts of bank robbery in violation of 18 U.S.C. § 2113(a). Specifically, Kellems admitted that on October 25, 2010, he robbed the Bank of America branch located in the Pruneyard, Campbell, of $3,020.00; on October 30, 2010, he robbed the Bank of the West branch at 3820 Capitola Road, Capitola, of $5,400.00; and on November 12, 2010, he robbed First Bank, 790 East Campbell Avenue, Campbell of $720.00, after threatening a female teller with use of a gun.
Kellems’ sentencing hearing is set for December 5, 2013, in front of The Honorable D. Lowell Jensen, U.S. District Court Judge. As a career offender with multiple prior bank robbery convictions, Kellems’ faces up to 20 years imprisonment on each count. However, any sentence following conviction will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas O’Connell and Special Assistant U.S. Attorney Meredith Edwards are prosecuting the case with the assistance of legal tech Tracey Andersen. The case was investigated by the Federal Bureau of Investigation, the Campbell Police Department, and the Capitola Police Department.