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6 June 2013
Businessman Sentenced to 2 Years in Prison for Obstructing the Irs and Concealing Property in Bankruptcy ProceedingsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Darryl A. Stuckey, age 48, formerly of Fort Washington, Maryland today to two years in prison, followed by three years of supervised release, for corruptly obstructing the Internal Revenue Code and fraudulently concealing assets in a bankruptcy proceeding. Judge Titus also ordered Stuckey to pay restitution of $300,632.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division; Judy A. Robbins, United States Trustee for Region 4, which includes the District of Maryland; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Obstructing the IRS
According to his plea agreement, from 1996 to 2009, Stuckey served in various roles in companies that he caused to be created or purchased. Between 2004 and 2009, Stuckey engaged in a scheme to obstruct the IRS from determining his income. For example, instead of using his personal bank accounts, Stuckey used corporate bank accounts and credit cards from his businesses to pay for the majority of his personal expenses, such as gambling, child support, medical expenses, shopping, travel, gifts and entertainment.
From 2004 to 2009, although Stuckey received substantial income from the businesses he controlled, he did not file individual or corporate federal tax returns, and did not pay any federal income taxes, state income taxes, or self-employment taxes. In fact, Stuckey admitted that he had not filed individual or corporate federal tax returns since 1993.
In 2009, Stuckey caused a business he purchased, CTI/D.C., to end its use of an outside company to manage its payroll. Although Stuckey continued to have CTI/D.C. deduct Federal Insurance Contribution Act (FICA) taxes, federal income taxes and other items from the employees’ paychecks, he failed to pay over to the IRS the FICA and federal income taxes that were withheld. As a result of Stuckey’s actions, the tax loss was $300,632.
Concealing Bankruptcy Assets
In 2007 Stuckey caused a business he organized, Yekcuts, LLC, to file for bankruptcy. Stuckey caused Yekcuts to file a schedule of assets that failed to disclose a company bank account, and to falsely claim that Yekcuts received no gross income in 2005, 2006 and 2007.
In May 2007, Stuckey fraudulently transferred and concealed real property located at 12301 Longwater Drive, Mitchellville, Maryland, which belonged to the Yekcuts bankruptcy estate. Specifically, Stuckey caused Yekcuts to enter into a promissory note with another individual, pursuant to which Yekcuts borrowed $130,000 in exchange for a security interest in the real property. Yekcuts never sought the required permission from the bankruptcy court to enter into the loan. Stuckey directed that $121,893 of the loan proceeds be distributed as follows: $10,000 to an individual, $9,000 to a Yekcuts bank account; and $102,893 to an account for which Stuckey was the sole signatory. Within 10 days of the deposit of the funds into the accounts, Stuckey withdrew $108,380.93 from the latter bank account.
In June 2007, after learning about the loan involving the Longwater Drive property, counsel for one of the Yekcuts creditors obtained a court order to depose Stuckey. Stuckey immediately caused Yekcuts to move to dismiss its bankruptcy, which the court denied. During the subsequent deposition, the government contends that Stuckey lied about the loan, his ownership interest in Yekcuts, compensation received from and expenses paid by Yekcuts, the existence of a second bank account maintained by Yekcuts and other matters.
As a result of Stuckey’s concealment of property during the Yekcuts bankruptcy, the loss to the bankruptcy estate exceeded $120,000.
Additionally, in October 2007 Stuckey filed for personal bankruptcy. Stuckey filed false schedules with the bankruptcy court, failing to disclose his transfer in May 2007 of real property located at 11950 Autumnwood Lane, Fort Washington, Maryland into a trust fund of which he was the sole beneficiary. Stuckey also did not disclose that he served as an officer, director, partner, managing executive or proprietor of several businesses. Evidence was also presented at today’s sentencing hearing that Stuckey spent over $45,000 on jewelry and furs within months of declaring personal bankruptcy.
United States Attorney Rod J. Rosenstein praised the IRS - Criminal Investigation, FBI and the U.S. Trustee Program’s Greenbelt office for their work in the investigation. The U.S. Trustee Program is the Department of Justice component that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Mr. Rosenstein thanked Assistant U.S. Attorney Stuart A. Berman and Trial Attorney Jeffrey Bender, with the Department of Justice’s Tax Division, who prosecuted the case.
Cain faces a maximum sentence of 30 years in prison for the conspiracy and for possession with intent to distribute oxycodone. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 3, 2013 at 12:00 p.m.
United States Attorney Rod J. Rosenstein praised the DEA, HHS Office of Inspector General and the Anne Arundel and Howard County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark, Clinton J. Fuchs and Mushtaq Gunja, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Big Spring Man Admits Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Jacob Ray Albarado, 20, of Big Spring, Texas, appeared in federal court in Lubbock today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of possession of child pornography. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Albarado has been in custody since his arrest in March 2013. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, after befriending a minor female (Jane Doe), Albarado communicated with her through the use of his cell phone for more than one year. In late 2012, Jane Doe began a dating relationship with Albarado and ran away from her home to his apartment in Big Spring. Albarado and Jane Doe agreed to produce a video depicting the two of them engaged in sexually explicit conduct. Albarado then held Jane Doe’s cell phone and produced a video of her while she engaged in sexually explicit conduct with Albarado.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Berks County Man Pleads Guilty to Role in Multi-County Drug ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 24-year-old Reading man pleaded guilty Wednesday before Senior U.S. District Court Judge A. Richard Caputo to participating in a cocaine and methamphetamine trafficking conspiracy in 2011.
According to United States Attorney Peter J. Smith, Isaac Villasenor admitted to conspiring with others to distribute and possess with intent to distribute large quantities of cocaine and more than 500 grams of methamphetamine. The conspiracy spread across Berks, Dauphin, and Schuylkill Counties during 2011.
Villasenor was indicted by a federal grand jury on November 8, 2011, as a result of an investigation by the Drug Enforcement Administration(DEA) and the Pennsylvania State Police.
The plea agreement, if accepted by the court, calls for Villasenor to be sentenced to not less than seven years in prison and not more than eight years in prison. Judge Caputo scheduled sentencing for September 10, 2013.
Two co-defendants in the case previously pleaded guilty to participating in the drug conspiracy. Jose Sandoval-Martinez, the leader of the drug operation, was sentenced to 10 years in prison. Ivan Villasenor, Isaac’s brother, is scheduled to be sentenced later this month.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.Baltimore Man Sentenced to over 7 Years in Prison for Infringing the Copyrights of More Than 1,000 Commercial Software ProgramsRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Naveed Sheikh, age 32, of Baltimore, today to 87 months in prison, followed by three years of supervised release, for conspiring to and infringing copyrights by illegally reproducing and distributing over 1,000 copyrighted commercial software programs. Judge Bennett entered an order requiring Sheikh to forfeit $4 million, the total value of the infringed software programs.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
“Copyright infringement is not a victimless crime,” said HSI Baltimore Special Agent in Charge William Winter. “Intellectual property theft costs U.S. businesses billions of dollars each year and accounts for the loss of American jobs and innovation. HSI will continue working with our law enforcement and private industry partners to pursue criminal organizations that are engaged in this type of illegal activity.”
According to Sheikh’s guilty plea, from February 2003 to June 2008, Sheikh conspired to infringe copyrights by reproducing and distributing over 1000 copyrighted commercial software programs worth $4 million. Sheikh recruited and compensated co-conspirators, directed the actions of other co-conspirators, obtained infringing copies of software that were used for distribution, and planned and organized the activities of the conspiracy. Sheikh created multiple websites through which the infringing software was sold. Sheikh advised purchasers that the programs offered for sale were not legal because they were copies of original software programs or “cracked” versions and could not be registered with the legitimate companies that developed the software programs and held copyrights covering the software. Sheikh rented computer server space in Scranton, Pennsylvania, and hosted the websites with the infringing software, on computers in Scranton, Pennsylvania, and at his home in Bel Air, Maryland.
Sheikh advised purchasers that software programs could be mailed to purchasers on compact discs and downloaded from the internet. Sheikh requested that purchasers send money orders for infringing software to a P.O. box he maintained in Towson, Maryland. Sheikh also permitted customers to pay for infringing software through credit card charges and electronic fund transfers. In order to process the electronic payments, Sheikh and his co-conspirators used the credit card processing accounts for a defunct business previously owned by Sheikh’s family, and caused monies from the software sales to be deposited into accounts previously associated with the business. Some of the individuals who worked for Sheikh were located overseas and could assist with overnight projects. Sheikh and other conspirators posed as other individuals when corresponding with customers by email. Sheikh did not report the income from the copyright infringement scheme on his tax returns. During the time of the conspiracy, Sheikh used services such as Western Union to transmit money outside the United States, particularly to Pakistan.
The copyrighted works copied and sold illegally included Microsoft Office, Microsoft Money 2006 Small Business, Adobe Acrobat, Adobe Photoshop and Adobe After Effects Pro 7.0, Veritas NetBackUp Pro 5.1, Solid Works Office 2000 Premium, Quicken Premier Home and Business 2006 and Apple Mac OSX Panther 10.3 and Microsoft Windows XP Professional with SP2.
In meetings with federal prosecutors and agents during the course of the investigation, Sheikh made numerous false statements in order to obstruct the investigation. For example, Sheikh claimed that he had rented computer space to another individual, whom Sheikh believed was selling computer training programs. Sheikh falsely said that he did not learn that this individual was selling copyright infringing software until 2008. Sheikh further claimed that he had recorded phone conversations with this individual in an effort to assist the government investigation. Through his attorney, Sheikh provided the fraudulent recordings that he created. During the Fall of 2010, the government engaged in plea negotiations with Sheikh. In November 2010, shortly before the deadline for Sheikh to reach an agreement with the government or be charged, Sheikh left the United States for Pakistan. When he re-entered the U.S. in January 2012, Sheikh was carrying electronic media containing evidence that he and his co-conspirators were responsible for the sales of infringing software.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the FBI and U.S. Postal Inspection Service for their work in the investigation and thanked the Business Software Alliance (BSA) and Microsoft Corporation for their assistance. Mr. Rosenstein commended Assistant United States Attorneys Harry M. Gruber and Martin J. Clarke, who prosecuted the case.
Anadarko Man Pleads Guilty to Filing False ReturnRead the Press Release
Oklahoma City, Oklahoma - On June 5, 2013, RANDEL L. STONE, 43, of Anadarko, Oklahoma, pled guilty to making a false statement on a Federal income tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On May 13, 2013, Stone was charged in a one-count Information with filing a false federal income tax return because he received substantially more income than he reported on his return.
In 2007 and 2008, Stone owned and operated a business called A Plus, Inc. which did chemical spraying on trees and lawns. At today’s plea hearing, Stone admitted that his 2008 federal tax return was false because he did not report more than $100,000 that he should have claimed as income on the return. Stone further admitted that the income he did not report was money paid to A Plus from Public Service Company of Oklahoma ("PSO").
At sentencing, Stone faces up to three years in federal prison and a $250,000 fine. As part of a plea agreement, Stone has agreed to pay restitution to the IRS in the amount of his criminal conduct. The court will determine the specific amount of restitution due to the IRS at sentencing, which will take place in approximately 90 days. Also, as part of a plea agreement, Stone agreed to pay restitution to PSO in the amount of $290,000. That amount reflects the remaining balance of a civil judgment entered against Stone, based on PSO’s claims that Stone obtained money through false A Plus invoices.
This case is the result of an investigation conducted by IRS Criminal Investigation, and is being prosecuted by Assistant United States Attorney, Chris M. Stephens.
Albuqueruqe Man Arrested on Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Jose A. Martinez, 40, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with possession of heroin and cocaine with intent to distribute and possession of firearms in furtherance of a drug trafficking crime. Martinez remains in custody pending a detention hearing scheduled for June 11, 2013.
Martinez was arrested last night by the DEA after officers of the Bernalillo County Sheriff’s Office executed a state search warrant at his residence on the west side of Albuquerque and seized two kilograms of heroin, a kilogram of cocaine and 17 firearms.
If convicted on the drug trafficking charges in the complaint, Martinez faces a mandatory minimum of ten years to a maximum of life in prison. If convicted on the firearms charges, Martinez faces five years in prison to be served consecutive to any sentence imposed on the drug trafficking charges. Charges in criminal complaints are only accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Joel R. Meyers.
5 June 2013
White River Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota man convicted of Abusive Sexual Contact was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Francisco White Buffalo, age 35, was sentenced to 60 months in custody, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.
White Buffalo was indicted by a federal grand jury on August 22, 2013 and pled guilty to the charge on March 18, 2013.
The conviction stems from an incident that took place on August 15, 2012, when White Buffalo had sexual contact with the victim.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
White Buffalo was remanded to the custody of the U.S. Marshal.
West Fargo Man Sentenced for Possessing Child PornographyRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on June 5, 2013, Mark Robert Perry of West Fargo, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of possession of materials involving the sexual exploitation of minors. Perry, 53, pleaded guilty on March 11, 2013, to the charge.
Judge Erickson sentenced Perry to 71 months’ imprisonment to be followed by five years of supervised release. Perry was also ordered to pay a $100 special assessment to the Crime Victim's Fund.
This case came to attention of law enforcement on March 6, 2012, after a North Dakota Bureau of Criminal Investigation agent discovered that Perry was trading child pornography files online.
The incidents occurred between Nov. 11, 2011, and March 2, 2012, in the District of North Dakota.
The case was investigated by Homeland Security Investigations, North Dakota Bureau of Criminal Investigation and the West Fargo Police Department.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
This case was brought as a 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 U.S. 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, visit www.projectsafechildhood.gov.Wallingford Man Sentenced to 30 Months in Federal Prison for Distributing Oxycodone and MarijuanaRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROBERT MELILLO, 25, of Wallingford, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing oxycodone and marijuana.
MELILLO 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 MELILLO conspired with others to distribute oxycodone and marijuana, and that he traveled to California on multiple occasions to purchase large quantities of marijuana, which he then shipped back to Connecticut to be distributed in the New Haven area.
On August 29, 2012, law enforcement officers stopped MELILLO upon his arrival at the San Francisco International Airport and seized $30,000 in U.S. currency from his carry-on bag.
MELILLO was arrested on February 1, 2013 and has been released on a $100,000 bond since shortly after his arrest. On March 1, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone and marijuana.
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]Valdosta Man Sentenced for Stolen FirearmsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Robert Kier, Jr.,age 30, of Valdosta, Georgia, was sentenced on June 4, 2013 by Senior United States District Court Judge Hugh Lawson to 168 months in prison to be followed by six (6) years of supervised release after pleading guilty to Possession and Sale of Stolen Firearms and Possession of Stolen Firearms, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2) and Section 2. Mr. Kier was ordered by the Court to pay restitution in the amount of $54,145.04.
According to the plea agreement, Mr. Kier admitted that in October of 2010, he stole a Shearwater boat in Marion County, Florida, which he later sold in Coffee County, Georgia. He also admitted that he burglarized two homes in Echols County, Georgia, in October and November of 2010, where he stole 22 weapons, including rifles, shotguns, and handguns, and three Polaris all-terrain vehicles. The weapons from one burglary were recovered in Coffee County and in Florida after a co-defendant attempted to sell some of them. The ATVs were later recovered in Madison County, Florida, in a trailer stolen from Lanier County, Georgia. Mr. Kier also admitted that on Christmas Day of 2011 he stole a Ford truck in Madison County, Florida, which was later recovered following a wreck in Lowndes County, Georgia. Mr. Kier admitted that he had stolen and been involved in the sale of numerous stolen vehicles and other items of equipment from various locations in Georgia and Florida. Mr. Kier stipulated that he possessed and stole 22 firearms and other stolen property constituting a loss to the owners of that property of between $120,000.00 and $200,000.00.
“When Mr. Kier stole these guns, he guaranteed that my office would use our resources to find him and send him to prison,” said U.S. Attorney Michael Moore.
The case was investigated by the Echols County Sheriff’s Office in conjunction with a number of other South Georgia and Florida local law enforcement agencies, including the Lowndes County and Coffee County Sheriff’s Offices and the Madison and Marion County Sheriff’s Offices in Florida. The case was prosecuted by Assistant United States Attorney Robert D. McCullers.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.
U.S. Trustee Program Announces Successful Conclusion of Nationwide Settlement with Capital One BankRead the Press Release
Independent Auditor Finds Capital One Repaid $2.35 Million
and Corrected Flawed Process for Filing Bankruptcy ClaimsWASHINGTON – The U.S. Trustee Program (USTP) announced today that the independent auditor appointed under a nationwide settlement between the USTP and Capital One Bank (USA) N.A. has filed her final report, bringing the settlement to a successful conclusion. The auditor reported that Capital One refunded approximately $2.35 million it received after filing erroneous claims in bankruptcy cases for debts previously discharged in bankruptcy, as well as approximately $30,000 in fees and expenses incurred by consumers and bankruptcy trustees who objected to erroneous claims. The report also confirmed that Capital One corrected the flawed process that led to the filing of the erroneous claims.
As part of the settlement filed in 2008 in the U.S. Bankruptcy Court for the District of Massachusetts, Capital One had agreed to an audit overseen by an independent auditor. Former Bankruptcy Judge Melanie Cyganowski, who was selected as the auditor, filed her final report after examining more than 850,000 claims filed by Capital One in bankruptcy cases nationwide. Under the settlement, Capital One paid the auditor’s fees and costs of conducting the audit.
“The auditor’s final report shows how important it is for the USTP to address systemic wrongful conduct with enforcement actions that protect consumers nationwide and that ensure independent verification and monitoring,” stated Executive Office for U.S. Trustees Director Cliff White. “This settlement agreement achieved its objectives and serves as a model for remediating past misconduct and preventing future abuses by creditors and others, including professionals, against consumers and the bankruptcy system. I commend the auditor for her painstaking efforts to identify all victims and to ensure that Capital One has established a system to prevent this from happening again.”
The auditor’s final report revealed that, in the nearly four years prior to the settlement, Capital One filed more than 15,500 erroneous claims with a total face value of nearly $25 million. The auditor also determined that Capital One received payment of approximately $2.35 million on those erroneously filed claims – almost seven times the $340,000 originally alleged – and fully refunded those distributions to consumers in bankruptcy or to their bankruptcy estates. Further, the report confirmed that Capital One reimbursed approximately $30,000 in fees and expenses incurred by debtors and trustees in objecting to erroneous claims.
Under the settlement, the auditor conducted additional compliance audits of all claims filed by Capital One during the two-year period following the settlement to ensure that the company had corrected the process that led to the filing of the erroneous claims for previously discharged debt. The auditor determined that, in the two years following the settlement, Capital One filed fewer than 150 erroneous claims out of more than 250,000 claims filed.
The case is United States Trustee v. Capital One Bank (USA), N.A., Adversary Proceeding No. 08-01272 (Bankr. D. Mass.).
The USTP is the component of the Department of Justice that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Two Triadelphia Residents Indicted on Firearms ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA —United States Attorney William J. Ihlenfeld, II, announced that:
SCOTT P. CORKRAN, JR., age 24, of Triadelphia, West Virginia, was named in a three-count Indictment charging him with “Felon in Possession of a Firearm,” “Possession of a Firearm with an Obliterated Serial Number,” and “Drug Abuser in Possession of a Firearm.” The Indictment also seeks the forfeiture of two firearms and ammunition. If convicted, CORKRAN faces up to 7 years imprisonment and a $500,000 fine. This case will be prosecuted by Assistant United States Attorney David Perri.
BRIAN BEHRENS, age 44, of Triadelphia, West Virginia, was named in a one-count Indictment charging him with “Felon in Possession of a Firearm” on November 20, 2012, in Ohio County. The Indictment also seeks the forfeiture of the Remington firearm. If convicted, BEHRENS faces a maximum exposure of 10 years imprisonment and a $250,000 fine. This case will be prosecuted by Assistant United States Attorney Stephen Vogrin.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and
Explosives.Two Plead Guilty in Federal Court to Distributing Child PornographyRead the Press Release
Each Defendant Faces Up to 20 Years in Federal Prison
FORT WORTH, Texas — Latona E. Long, 27, of Greenville, Texas, and Michael M. Bodie, 41, of North Richland Hills, Texas, each appeared today before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to one count of distribution of child pornography. Bodie was arrested in February 2013 and Long was arrested the following month on related charges outlined in criminal complaints, and they have been in custody since that time. They each face a maximum statutory penalty of not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing is set for November 12, 2013, before U.S. District Judge Terry R. Means. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in February 2013, FBI agents executed a search warrant at Bodie’s home, regarding his use of a Yahoo email account that was being used to send and receive images of child pornography. Bodie admitted that he did use that account to send and receive child pornography and that he had corresponded via Yahoo email, with a person, L.L., now known to be Long.
In February 2013, FBI agents and task force officers met with Long at her home regarding her use of a Yahoo email account that was used to send and receive child pornography. Long also said that she had corresponded via Yahoo Instant Messenger with a person she knew as M.B., now known as Bodie, and that during their communications, she sent Bodie an image of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by the FBI. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Two Men Sentenced to Prison for the Armed Robbery of A Pawn Shop and Related ChargesRead the Press Release
CHARLOTTE, N.C. – On Tuesday, June 4, 2013, Chief U.S. District Judge Frank D. Whitney sentenced two men on charges stemming from the 2011 armed robbery of a pawn shop located on Central Avenue, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Tompkins in making today’s announcement.
James Powell, IV, 23, of Mint Hill and Demontrez Lamont Dobie, 22, of Charlotte were sentenced to 162 months and 91 months in prison, respectively. Powell and Dobie were each also ordered to serve three years under court supervision upon release from prison.
According to court documents and yesterday’s sentencing hearing, Powell and Dobie robbed the Central Avenue Jewelry and Pawn on the morning of June 30, 2011, during business hours. Powell and Dobie, who wore wigs and sun glasses during the commission of the robbery, entered the pawnshop carrying two suit cases. Court records indicate that as Powell approached the counter, he pulled out a .380 caliber handgun and pointed it at the chest of one of the store employees. The defendants put the two employees of the store on the floor, and Dobie tied up the victims with shoe strings. According to court documents and court proceedings, while one of the victims was tied, Powell pistol whipped the victim in the head. Dobie struck the same victim in the ribs while the victim was tied up. During the robbery, Dobie stole the pawn shop employees’ .357 Magnum revolver, and brandished it. Powell then took cell phones and electronics belonging to the pawn shop and put them in the suitcases, all according to court documents. As law enforcement officers were responding to the scene, Powell and Dobie abandoned the suitcases, and, still armed, ran out the back door of the pawn shop. Law enforcement apprehended Powell and Dobie within a short distance from the pawn shop.
In June 2012, Dobie pleaded guilty to Hobbes Act robbery and aiding and abetting, and to possession and brandishing a firearm during and in relation to a crime of violence and aiding and abetting. Powell pleaded guilty in August 2012 to conspiracy to commit interference with commerce by threat or violence (Hobbes Act conspiracy), Hobbes Act robbery and aiding and abetting, possession of firearm by felon, and possession and brandishing a firearm during and in relation to a crime of violence and aiding and abetting.
In announcing the sentence, Judge Whitney stated that the robbery was a very violent offense and an egregious crime. Judge Whitney observed that Powell and Dobie were “lucky that [the robbery] did not lead to death or serious injury.”
The defendants have been in federal custody in the Western District of North. Upon designation of a federal facility, Powell and Dobie will be transferred into custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The prosecution for the government was handled by Assistant U.S. Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte.
Two Kansas Men Plead Guilty to Federal Dog Fighting ChargeRead the Press Release
KANSAS CITY, KAN. – Two Kansas men have pleaded guilty to a federal dog fighting charge, U.S. Attorney Barry Grissom said today.
Pete Davis, Jr., 38, Kansas City, Kan., and Melvin Robinson, 42, Kansas City, Kan., each pleaded guilty to one count of transporting animals for participation in an animal fighting venture.
The two men initially were charged in a criminal complaint alleging they owned dozens of dogs – most of them pit bulls – that they trained and took to dog fights. They kept the dogs at a farm in Harrison County, Mo., and at their residences in Kansas City, Kan, and transported some of them to fights as far away as Dallas, Texas. On March 22 and 23, 2013, federal, state and local investigators served search warrants at several locations, seizing 77 dogs and six chickens.
According to court documents, an FBI investigation that began in November 2012 revealed that:
-- To train dogs for fighting, Robinson had a treadmill at his residence in Kansas City, Kan. He routinely placed a harness on a dog and chained the harness to the treadmill for several hours at a time. The treadmill was equipped with a plywood box to keep the dog on the treadmill. Robinson also put weights on the dog to strengthen it and provided caged live chickens in front of the treadmill as bait.
-- Robinson and Davis discussed betting $20,000 to $30,000 on a dog they were training for a fight scheduled to take place on March 23, 2013, in Dallas, Texas. They called such fights "dog shows."
-- On March 17, 2013, Davis and Robinson held three dog fights involving six dogs at the farm in Missouri in preparation for the dog fight in Dallas.
-- At various times during the investigation, dogs died at the farm in Missouri and their bodies were discarded.
-- On March 22, 2013, investigators followed Robinson and Davis as they traveled to a location near Tyler, Texas, for a dog fight.Sentencing is set for Sept. 9. The defendants face a maximum penalty of five years in federal prison and a fine up to $250,000.
Grissom thanked the following agencies for their work on the case: The FBI, the Kansas City (KS) Police Department, the Harrison County (MO) Sheriff's Department, the Missouri State Highway Patrol, the Texas Department of Public Safety - Narcotics and Highway Patrol, East Texas HIDTA, the FBI Dallas Division - East Texas Resident Agencies, the American Society for the Prevention of Cruelty to Animals, the Texas Parks and Wildlife Department - Game Wardens, the Texas Department of Criminal Justice - OIG, the Lindale Police Department, the Smith County Sheriff’s Office, the Dallas Police Department and the Dallas County Sheriff’s Office. He also thanked the American Society for the Prevention of Cruelty To Animals for assisting investigators by agreeing to house and care for dogs that were seized by investigators.
Three Members of Violent Newark Street Gang Indicted on Murder and Racketeering ChargesRead the Press Release
Alleged Gang Leader Charged with Six Gang-Related Killings
NEWARK, N.J. – Three alleged members of a violent Newark street gang were indicted by a federal grand jury today on charges that include murder, racketeering, kidnapping, robbery, weapons offenses and drug dealing, U.S. Attorney Paul J. Fishman announced.
Farad Roland, 28, Mark Williams, 30, and Malik Lowery, 31, all of Newark, were charged in a 27-count second superseding indictment connection with their alleged membership in The South Side Cartel, a subset of the 793 Bloods gang. Roland is charged with six counts of murder in aid of racketeering, while Williams and Lowery are each charged with one count of murder in aid of racketeering, charges which carry a mandatory minimum penalty of life in prison. The charge is a death-eligible offense subject to a decision by the U.S. Attorney General.
“As the indictment spells out, the gang members indicted today used murder and violence as tools of their criminal trade, punishing disloyal associates, intimidating rivals and silencing those they believed were cooperating with law enforcement,” U.S. Attorney Fishman said. “They presided over a reign of terror along Hawthorne Avenue for years. These charges finally assign responsibility for more than half a dozen unsolved homicides and represent the latest efforts in our ongoing pursuit of members of violent street gangs.”
“The primary objective of the FBI's investigation into the criminal enterprise known as South Side Cartel was to disrupt and dismantle one of Newark's most violent street gangs,” FBI Special Agent in Charge Aaron T. Ford said. “In conjunction with the Newark Police Department and Essex County Prosecutor's Office, the FBI and its law enforcement partners were successful in accomplishing this mission.”
Newark Police Director Samuel DeMaio stated, “I am pleased that our partnerships with our fellow law enforcement entities, particularly on the federal level, continue to prove effective tools against violent crime and habitual offenders here in Newark. Today's charges and the severity of the penalties are a testament to our combined resolve to remove these violent predators from our community. I thank all of those gathered today who played a role in today's announcement and look forward to strengthening our partnerships and multiplying our efforts.”
According to documents filed in this case and statements made in court: The South Side Cartel has operated primarily on Hawthorne Avenue in Newark since 2002. Originally a neighborhood-based gang whose main activities were selling drugs and committing violent acts to aid the drug trafficking business, many of the gang’s members were officially brought into the Bloods gang in 2002 and 2003. As early as 2005, the gang was officially named The South Side Cartel. The gang allegedly committed numerous murders, shootings, robberies and other violent acts.
The gang based its criminal activities out of apartments located inside buildings dubbed “the Twin Towers,” located at 496-500 Hawthorne Ave. The Twin Towers were the scene of repeated narcotics and gun arrests by local law enforcement between 2002 and 2010. Many of The South Side Cartel members had tattoos depicting these buildings and the “SSC” logo, representing the gang’s initials.
At its peak, the South Side Cartel had about 20 members or associates, many of whom have since been killed in gang-related murders or who are serving prison sentences in state and federal prisons for gang-related crimes. Defendants Roland, Williams and Lowery represent the last of the leadership of the gang.
South Side Cartel leader Amin Roland, 35, (the brother of defendant Farad Roland) was convicted by a jury in July 2012 of being a felon in possession of a firearm. On Nov. 29, 2012, U.S. District Court Judge Salas sentenced Amin Roland to the statutory maximum prison sentence of 10 years.
“These three defendants posed a clear danger to the people of Essex County,” Acting Essex County Prosecutor Carolyn A. Murray said. “Their brazen use of violence as part of their drug and gang trade is stunning. We are pleased that we were able to work with our federal partners to bring them to justice and now look forward to the final resolution of their cases.”
“Today's indictment should serve as an example of our commitment to the hard-working, law-abiding citizens of this community,” Newark's Chief of Police Sheilah Coley said. “In forming these alliances with other local, county, state, and federal law enforcement agencies the Newark Police Department has transcended all departmental and jurisdictional boundaries in the interest of public safety. We are working together seamlessly to produce positive results in our violent crime reduction efforts and will continue our joint ventures aimed at improving the quality of life here in our City.”
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford; the Newark Police Department, under the direction of Police Director DeMaio and Chief Coley; and Acting Essex County Prosecutor Murray, for the investigation leading to the today’s indictment.
The government is represented by Assistant U.S. Attorneys Robert L. Frazer and Andrew J. Bruck of the Organized Crime/Gangs Unit in Newark.13-233
Defense counsel: Farad Roland: Donna Newman Esq., New York, N.Y.
Williams: James Patton Esq., Livingston, N.J.
Lowery: John Azzarello Esq., Chatham, N.J.
The counts in the indictment carry the following maximum potential penalties:Count
Offense
Defendant(s)
Maximum Penalties
Racketeering
All three defendants
Life in prison; $250,000 fine
2
Racketeering Conspiracy
All three defendants
Life in prison; $250,000 fine
3
Murder in Aid of Racketeering (Leaks Murder)
Roland
Life in prison or death penalty; $250,000 fine
4
Murder in Aid of Racketeering (Stewart Murder)
Roland
Life in prison or death penalty; $250,000 fine
5
Murder in Aid of Racketeering (“Fu” Murder)
Roland
Life in prison or death penalty; $250,000 fine
6
Murder in Aid of Racketeering (“Dubird” Murder)
All three defendants
Life in prison or death penalty; $250,000 fine
7
Murder in Aid of Racketeering (Silas Murder)
Roland
Life in prison or death penalty; $250,000 fine
8
Murder in Aid of Racketeering (Prince Murder)
Roland
Life in prison or death penalty; $250,000 fine
9
Use of Firearm in Furtherance of Violent Crime (Silas Murder)
Roland
Life in prison; $250,000 fine
10
Use of Firearm in Furtherance of Violent Crime (Prince Murder)
Roland
Life in prison; $250,000 fine
11
Carjacking (Mercedes Benz)
Roland, Williams
15 years in prison; $250,000 fine
12
Use of Firearm in Furtherance of Carjacking
Roland, Williams
Life in prison; $250,000 fine
13
Carjacking (BMW)
Williams, Lowery
15 years in prison; $250,000 fine
14
Use of Firearm in Furtherance of Carjacking
Williams, Lowery
Life in prison; $250,000 fine
15
Hobbs Act Robbery
Roland, Lowery
20 years in prison; $250,000 fine
16
Use of Firearm in Furtherance of Hobbs Act
Roland, Lowery
Life in prison; $250,000 fine
17
Assault with a Deadly Weapon in Aid of Racketeering
Roland
20 years in prison; $250,000 fine
18
Use of Firearm in Furtherance of Violent Crime
Roland
Life in prison; $250,000 fine
19
Assault with a Deadly Weapon in Aid of Racketeering
Williams
20 years in prison; $250,000 fine
20
Kidnapping in Aid of Racketeering
Williams
Life in prison; $250,000 fine
21
Use of Firearm in Furtherance of Violent Crime
Williams
Life in prison; $250,000 fine
22
Use of Firearm in Furtherance of Violent Crime
Williams
Life in prison; $250,000 fine
23
Assault with a Deadly Weapon in Aid of Racketeering
Williams
20 years in prison; $250,000 fine
24
Use of Firearm in Furtherance of Violent Crime
Williams
Life in prison; $250,000 fine
25
Assault with a Deadly Weapon in Aid of Racketeering
Roland
20 years in prison; $250,000 fine
26
Use of Firearm in Furtherance of Violent Crime
Roland
Life in prison; $250,000 fine
27
Conspiracy to Distribute Cocaine & Heroin
All three defendants
Life in prison; $10 million fine
South Side Cartel Superseding Indictment
Tarrant County Men Sentenced in Sex Trafficking CaseRead the Press Release
FORT WORTH, Texas — Craig Jerome Gadley, Jr., 23, and Joshua Alexander Smith, 25, both of Mansfield, Texas, were each sentenced on Monday, June 3, 2013, by U.S. District Judge Terry R. Means, to 15-year federal prison sentences, following their guilty pleas last year to sex trafficking charges. Specifically, Gadley pleaded guilty to one count of sex trafficking of a minor and Smith pleaded guilty to one count of sex trafficking by force, fraud and coercion. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, law enforcement learned, in June 2011, that a 16-year-old female, Jane Doe #1, had been working as a prostitute for Gadley, aka “Cjay the Don,” in and around the Dallas/Fort Worth (DFW) area. Jane Doe #1 met Gadley while she was working as a stripper at a night club in Fort Worth, Texas, and he promised her that she could earn more money by working for him. Gadley gave Jane Doe #1 money and took her shopping. Although he knew she was 16-years-old, he told her he didn’t care and that she owed him for the money he had provided her.
Gadley took photographs of Jane Doe #1 in lingerie and in the nude and then posted advertisements of her on websites used to promote and advertise commercial prostitution. He drove her to hotel rooms in the DFW area and directed her to have sex with men for money. Gadley took all of the proceeds, provided her with necessities such as food and clothing, and provided condoms and hotel rooms for her to use.
Another female, 19-year-old, Jane Doe #2, who worked as a prostitute for Smith, was arrested on July 30, 2011 for prostitution, after undercover officers who saw ads for her on the Internet arranged to meet her at a hotel in Arlington, Texas.
The plea documents further state that Smith and Jane Doe #2 had dated until he convinced her that she could make a lot of money if she worked for him as a prostitute. She eventually agreed and began working for Smith in May 2011. He placed ads for Jane Doe #2 on websites that advertised prostitution and received all of the money she earned. He provided her necessities such as food, gas and clothing. He also provided her condoms and hotel rooms for her to use in the Fort Worth area.
Jane Doe #2 was fearful of Smith. While working for him, he choked her, held her against a wall, poured drinks on her head, pulled her hair and threatened to harm her. He kept pushing her to work longer hours and acquire more clients.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the North Texas Trafficking Task Force, including the Arlington, Dallas and Fort Worth Police Departments.
Assistant U.S. Attorney Chris Wolfe was in charge of the prosecution.
Tampa Woman Sentenced to More Than 5 Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Nikia Williams yesterday to five and six months in federal prison for theft of government property and aggravated identity theft. As part of her sentence, the court also ordered Williams to forfeit jewelry valued at more than $110,000, traceable to proceeds of the offenses. Williams also consented to forfeit a 2007 Mercedes Benz, which she purchased using $30,000 in cash. Williams pleaded guilty on February 27, 2013.
According to court documents, Williams engaged in stolen identity tax refund fraud from at least as early as January of 2011. In excess of 150 fraudulent tax returns were electronically filed from her residence during this period. Williams was linked to additional tax returns based on her use of debit cards containing fraudulently obtained tax refunds.
This case was investigated by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Amanda L. Riedel.
Tallahassee Residents Convicted in Scheme to File False Tax Returns Using Personal Information of OthersRead the Press Release
TALLAHASSEE, FLORIDA –Kimberly Watson, Malcolm Lipscomb, and Shavone Ricketts, all of Tallahassee, were found guilty by a jury yesterday of conspiracy to file false claims against the United States by filing false tax returns for 2008, 2009, and 2010. The false returns claimed over $80,000 in refunds. These defendants were also found guilty of aggravated identity theft for their use of personal information in this scheme.
In addition, Watson was found guilty on 17 counts of filing false claims and 18 counts of wire fraud. Lipscomb was found guilty on seven counts of wire fraud, and Ricketts was found guilty on one count of filing a false claim and two counts of wire fraud. They are scheduled to be sentenced on August 28, 2013.
The defendants obtained the personal information of others and submitted false income tax returns that contained fabricated information, such as false wage information and false claims for refundable credits. The fraudulently inflated refunds were deposited into the defendants’ own bank accounts or placed onto pre-paid debit cards.
Another defendant charged in the case, Alfretta Jones, pled guilty to the conspiracy, as well as obstruction of justice, making false statements, and perjury. Her sentencing is set for July 25, 2013.
Each defendant could face up to ten years of imprisonment on the conspiracy count, up to five years of imprisonment on each count of filing a false claim, and up to 20 years of imprisonment on each wire fraud count. Each count of aggravated identity theft carries a mandatory two years of imprisonment that must be served consecutive to any other sentence.
The case was investigated by the Internal Revenue Service and the Leon County Sheriff’s Office, with assistance from the United States Postal Inspection Service, and was prosecuted by Assistant United States Attorney Corey J. Smith.
Substance Abuse Counselor Sentenced to Two Years in Federal Prison for Defrauding Medicaid ProgramRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ALAN EMMETT BRADLEY, 57, formerly of Norwalk, Conn., and Ocoee, Fla., was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by two years of supervised release, for defrauding Connecticut’s Medicaid program. BRADLEY also was ordered to pay $151,898.75 in restitution.
According to court documents and statements made in court, BRADLEY, a certified alcohol and drug abuse counselor, obtained the Medicaid identification numbers of various Medicaid clients and used the identification numbers to submit hundreds of claims to Connecticut’s Department of Social Services. The claims alleged that BRADLEY performed 75 to 80-minute individual psychotherapy sessions to these Medicaid clients at his office in Norwalk. Hundreds of these counseling sessions did not occur and, for many of them, BRADLEY was actually living and attending school in Florida.
Through this scheme, BRADLEY defrauded the Connecticut Medicaid program of $151,898.75.
The Connecticut Medicaid program is a joint federal-state program designed primarily to finance the provision of medical services to the indigent. It is administered in Connecticut by the Department of Social Services, and is also supervised by the federal Centers for Medicare and Medicaid Service.
BRADLEY was arrested in Florida on May 17, 2012. He has been detained since November 29, 2012, after he violated conditions of his pretrial release. On March 13, 2013, he pleaded guilty to one count of health care fraud.
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation and the Connecticut Department of Social Services. The case was prosecuted by Special Assistant United States Attorney Michael Ahearn, Assistant United States Attorney David Sheldon and Auditor Kevin Saunders.
Acting U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at 203-777-6311 or 1-800-HHS-TIPS.
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(203) 821-3722 [email protected]Smithfield Man Sentenced on Drug ChargesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge Malcolm Howard sentenced TIROM MARSELLE TOLER, 23, of Smithfield, North Carolina, to 60 months imprisonment followed by 4 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on August 8, 2012, charging TOLER with aiding and abetting the distribution of 28 grams or more of crack cocaine. On March 3, 2013, TOLER pleaded guilty to the drug distribution count.
The evidence in the case demonstrated that on or about September 21, 2011, TOLER and another person aided and abetted each other in the distribution of more than 28 grams of crack cocaine to an informant working with the Smithfield Police Department.
Investigation of this case was conducted by the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Seven People Indicted for Roles in Conspiracy to Steal Copper from SubstationsRead the Press Release
Seven people were indicted in federal court for their roles in a conspiracy to steal copper from two dozen substations in Northeast Ohio owned by First Energy or Cleveland Public Power, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
“These defendants risked the safety of utility workers and the well-being of people served by these substations,” Dettelbach said. “The theft of copper and other scrap metal is a serious problem in our region, and the targeting of energy facilities additionally poses a significant threat to our national security infrastructure.”
“The potential of harm posed by these individuals to enrich themselves while risking lives and posing serious threats to our community will not be tolerated. The FBI and our law enforcement partners will aggressively pursue and bring to justice those individuals who place our community in harm’s way.”
Indicted are: Christopher M. Butts, 26, of Cleveland; Michael T. Butts, 33, of Brooklyn; Jon T. Lefort, 25, of Cleveland; William Bertini, 25, of Olmsted Township; Jason B. Kauffman, 34, address unknown; Keven Wenson, 22, of Lakewood, and Julio Torres, 45, address unknown.
The thefts took place between January and May 2013 and included substations in Brooklyn, Parma, Brecksville, Fairlawn, Medina, Cleveland, Wadsworth, Lakewood, Cuyahoga Heights, Independence, Vermillion, Lorain, Avon Lake, Westlake and Valley View, according to the indictment.
The 24 substations listed in the indictment have copper material around its base that facilitated the transmission of electricity. Removal of the copper material from a substation causes a substantial risk of electrical blackouts as well as possible injury or death to utility company employees responsible for maintaining, servicing and repairing the substations, according to the indictment.
According to the indictment, Christopher and Michael Butts instructed Lefort, Bertini, Kauffman, Wenson and Torres how to remove the copper material from the substation in a way that would minimize the risk of physical harm to the person cutting the wire or cable. The defendants used bolt cutters to cut fencing and/or locks protecting the substations.
The defendants then unlawfully extracted the copper wire and materials from the substations, manually carrying it in garbage cans, duffel bags, contractor bags and other containers to “staging areas.” From there, the copper material was transported to scrap yards, where it was sold for cash, according to the indictment.
The indictment details 25 copper thefts and five attempted thefts. It also lists 53 instances where at least some of the defendants sold stolen copper to area scrap yards between January and April 2013.
The defendants collectively sold the stolen copper for more than $15,000, although repairs to the substations will likely cost more than $100,000, according to the indictment.
Count 1 charges all seven defendants with conspiracy to damage energy facilities. Counts 2 through 6 charge specific individuals with destruction of an energy facility, in violation of a federal statute specifically directed at protecting facilities that produce, distribute and store energy, such as electrical substations.
This case is being prosecuted by Assistant U.S. Attorneys Thomas E. Getz and M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Avon Lake Police Department, Brecksville Police Department, Medina County Sheriff’s Office, Middleburgh Heights Police Department, Valley View Police Department and Northeast Ohio Regional Fusion Center, and assistance from the Medina County Prosecutor’s Office.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, the defendant’s role in the offenses and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Seven Charged with Kidnapping ConspiracyRead the Press Release
Jackson, Miss. – Six individuals appeared before U.S. Magistrate Judge Keith Ball in federal court today for conspiring to kidnap six-year-old Jashayla Hopson from East Kemper Elementary School on April 30, 2013, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Appearing in court today were:
Wanda Faye Dancy, 52, of DeKalb, Mississippi; Shamarius S. Ruffin, 25, of Porterville, Mississippi; Shaquayla S. Johnigan, 21, of Porterville, Mississippi; Joyce M. Johnigan, 42, of Porterville, Mississippi; Devonta Pollard, 18, of Porterville, Mississippi; and
James Shurman Johnigan, 39, of Porterville, Mississippi.
If convicted, each of the above defendants faces a maximum penalty of five years in prison and a $250,000 fine.
Also charged in the criminal indictment is Jessie Mae Brown Pollard, 54, of Northport, Alabama, who is currently in federal custody and will be arraigned at a later date. If convicted of the charges against her, she faces a maximum penalty of life in prison and a $750,000 fine.
According to the Indictment, Jessie Mae Brown decided to kidnap Jashayla Hopson from East Kemper Elementary School. She contacted Wanda Faye Dancy, who worked at East Kemper Elementary School as a secretary, who agreed to assist Jessie Mae Brown Pollard with the kidnapping.
On April 30, 2013, Jessie Mae Brown Pollard and Shamarious S. Ruffin traveled to East Kemper Elementary School in a car rented by Jessie Mae Brown Pollard. Pollard called Wanda Faye Dancy to determine the location of Jashayla Hopson within the school building.Dancy said Jashayla was in the library and described the clothing she was wearing. Dancy’s instructions were for Ruffin to go into the library and tell the librarian that “Miss Wanda said it was alright”. Ruffin went into the school library, gave the librarian Dancy’s message, and took Jashayla Hopson. Ruffin returned to the car with the child. Jessie Mae Brown Pollard then drove them to Bessemer, Alabama, where they checked into a hotel. Later, Jessie Mae Brown Pollard and Shamarious S. Ruffin went to a store in Bessemer and purchased a cell phone. Pollard activated the phone and sent the following text message to Jashayla’s mother: “don’t call the police I will call you later if you call the police u won’t see her again.”
Meanwhile, Jessie Mae Brown Pollard’s son, Devonta Pollard, drove to Boligee, Alabama, picked up Shaquayla S. Johnigan, and took her to meet Jessie Mae Brown Pollard. Pollard then gave the child, Jashayla Hopson, to Johnigan, who took Pollard’s rental car and traveled to Laurel, Mississippi where she checked into a hotel room. Later, Jessie Mae Brown Pollard called Johnigan and told her to send a text message to Jashayla’s mother from the cell phone, which was still in the rental car, stating “since you called police, I want $50,000 by 3 p.m., I will tell you location later.”
The following day, Shaquayla S. Johnigan received a call from Devonta Pollard stating that Jessie Mae Brown Pollard was “gone to take a polygraph.” Shaquayla S. Johnigan called Joyce M. Johnigan who agreed to meet her in Vossburg, Mississippi. Together, Shaquayla S. Johnigan and Joyce M. Johnigan drove Jashayla Hopson to a remote location in East Central Mississippi and dropped her off near an unknown residence telling her that “her mom was in the trailer and to run up to it”.
Jessie Mae Pollard called Shaquayla S. Johnigan and told her to take the rental car to the USM campus and leave it, but instead she and Joyce Johnigan drove it into a ditch and threw the keys into a pond. Shaquayla S. Johnigan gave the black gym back containing the broken cell phone to James Shurman Johnigan and told him to “get rid of it”. She also threw the key to the Laurel hotel room in the garbage. James Shurman Johnigan burned the black gym bag containing the broken Samsung phone.
The trial in this case is set for August 6, 2013, before United States District Judge William H. Barbour, Jr.
The public is reminded that an indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Sarasota Man Convicted for Role in Mortgage Fraud ConspiracyRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that a federal jury yesterday found J. Patrick Brester (41, Sarasota) guilty of one count of conspiracy to commit wire fraud affecting a financial institution and three counts of wire fraud affecting a financial institution. Each count carries a maximum penalty of thirty years in federal prison and a $1million fine. Michael Chadwick, Matthew Landsman, and Joshua Unger previously pleaded guilty for their roles in the conspiracy.
According to evidence presented at trial, Brester conspired with others to engage in fraudulent cash back to buyer mortgage transactions involving the 2007 purchase and sale of condominiums at Vintage Grand, a large condominium complex in Sarasota. Each fraudulent transaction involved Brester first purchasing the unit from the development company (Sarasota 432, LLC) and then simultaneously “flipping” it to Michael Chadwick. To facilitate the scheme, Brester and his co-conspirators deceived mortgage lenders about the true nature of the transactions. They inflated the purchase prices of the properties, and ultimately the amount lent by the mortgage lenders. They did so by including fees that were falsely described as “management fees" that were made payable to shell corporations under their control. The “management fees” were actually the method by which Brester and his co-conspirators funneled cash back to themselves without the lenders’ knowledge.
In furtherance of the conspiracy, Brester and his co-conspirators caused interstate wire transfers of the loan proceeds from the victim mortgage lenders into bank accounts held in the names of shell companies, including IGS, Inc. and Landwick I, LLC. Evidence presented at trial showed that Brester made more than $550,000 from his role in the conspiracy. The loss to the mortgage lenders totaled more than$1.3 million.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Amanda L. Riedel and Matthew J. Mueller.
San Jose Woman Sentenced to 13 Months in Prison for Role in Health Care Fraud SchemeRead the Press Release
SAN JOSE - Gurinder Mand was sentenced today to 13 months in prison and ordered to pay $254,906.20 in restitution for her involvement in a health care fraud scheme operated out of a San Jose pharmacy, United States Attorney Melinda Haag announced.
Mand pleaded guilty on December 12, 2012, to conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349. According to the plea agreement, Mand admitted to knowingly and willfully conspiring with the former owner of EZ Step Pharmacy in San Jose to submit false and fraudulent claims to health care benefit programs, including Medicare, Medi-Cal and private insurance companies. The false and fraudulent claims included: (1) seeking reimbursement for claims without prescriptions; and (2) seeking reimbursement for the cost of licensed durable medical equipment (known as “DME”) and related prescription medications, benefits, items, and services. In furtherance of the scheme, Mand fabricated DME authorizations, certificates of medical necessity, and related documents, and forged the signatures of physicians and other authorized health care providers of beneficiaries on these documents.
Mand, 30, of San Jose, was indicted by a federal grand jury on June 30, 2011. She was charged with one count of conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349; six counts of health care fraud, in violation of 18 U.S.C. § 1347; and two counts of obstructing a criminal investigation into health care fraud violations, in violation of 18 U.S.C. § 1518.
The sentence was handed down by The Honorable Lucy H. Koh, U.S. District Judge, following Mand’s guilty plea. Judge Koh also sentenced Mand to a three-year period of supervised release, and ordered restitution in the amount of $254,906.20. Mand will begin serving the sentence on August 5, 2013.
Jeff Nedrow is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of a three-year investigation by the Federal Bureau of Investigation.
Rockford Man Sentenced to 65 Months in Federal Prison for Wire Fraud and Identity TheftRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced today in federal court by U.S. District Judge Frederick J. Kapala for wire fraud and identity theft. ANTHONY HARDY, 42, was sentenced to 65 months in federal prison, in addition to 5 years of supervised release following his release from prison, and ordered to pay restitution of $212,625.13. Hardy guilty to the charges on Feb. 19, 2013, admitting that between mid-2010 and January 2012 he defrauded large retail chain stores by fraudulently acquiring tens of thousands of dollars of merchandise and returning the items for cash.
In the written plea agreement, Hardy admitted that as part of the scheme he and other individuals created and used counterfeit checks and counterfeit identifications to purchase merchandise from large chain stores such as Wal-Mart and Farm and Fleet located in various states. After Hardy and the others purchased merchandise from those stores, they returned the merchandise to a different store location for a cash refund. Hardy admitted he knew at the time that some of the names and addresses on the checks and identification he used, and some of the bank account information, were fictitious and some were real. Hardy also admitted in the plea agreement that he unlawfully possessed and used the Social Security Number of another person as part of his fraud scheme to purchase merchandise from the large chain stores.
Three other individuals have been charged in a separate indictment for their roles in the wire fraud scheme with Hardy: William Dorn, 24, and Cameron Love, 28, both of Rockford, Ill., and Anthony Taylor, 44, of Marietta, Ga., each of whom have pled guilty to one count of wire fraud.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Pete Zegarac, Postal Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Rockford Police Department and Freeport Police Department assisted in the investigation.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Robbery Crew Charged in 27-count IndictmentRead the Press Release
Little Rock - Christopher R. Thyer, Attorney for the Eastern District of Arkansas and Randall Coleman, Special Agent in Charge of the Federal Bureau of Investigation, announced a 27-count indictment was handed down by a Federal Grand Jury today, charging six defendants in connection with multiple armed robberies of fast-food restaurants, gas stations, and other local businesses in Little Rock, Benton, Bryant, Sherwood, Lonoke and Carlisle over the past year. Among the victims are Wendy's, Burger King, Shell Super Stop, Citgo, Taco Bell, Little Caesar's, Tropical Smoothie, McDonald's, Dollar General, Taco Bueno, and Andy's Restaurant.
The counts include conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and possession of a firearm in furtherance of a crime of violence. If convicted of conspiracy to interfere with commerce by robbery, each defendant will face a sentence of not more than 20 years imprisonment and/or a fine of not more than $250,000 followed by not more than three years of supervised release.
"A criminal organization such as this not only victimizes business and individuals during the robbery, but also the citizens who frequent those businesses," stated Thyer. "This indictment demonstrates our commitment to work together as law enforcement agencies to bring justice to bear on those who use intimidation and violence against people in Central Arkansas. People deserve to live and operate businesses without the fear of criminal interference in their daily lives."
"Whether grabbing a quick bite to eat, filling up your gas tank, or going to the store - Arkansans want to feel safe in conducting their day-to-day activities," stated FBI Special Agent in Charge Randall C. Coleman. "The FBI will continue to work with our partners at the Little Rock Police Department to disrupt and dismantle violent groups like this one."
The Little Rock Police Department, along with other local law enforcement agencies from across Central Arkansas, approached the FBI earlier this year regarding what they believed to be a well-organized and violent robbery crew targeting local businesses in several different jurisdictions. In each jurisdiction where the robberies occurred, law enforcement worked tirelessly using videos from the crime scenes, interviewing witnesses along with additional investigative techniques to identify several of the subjects involved. These men allegedly robbed restaurants, gas stations, and various businesses, generally late in the evening. Typically, there would be one person designated to take the manger to the safe, another one to three would hold the customers and employees at gunpoint while a driver waited nearby for their getaway. They took from $200 to $6,100 during the robberies. Along with the money, the Indictment alleges Daniel Glenn Caple, age 20, stole cigarettes. In a cooperative effort with the FBI, local law enforcement agencies arrested four of the defendants indicted, who have been held on local robbery charges pending this federal indictment. Two members of this robbery crew, Christopher Earnest Bell, age 36, and Antwann Deshawn Sockwell, age 24, both of Little Rock are still at large. Anyone with information of their whereabouts should contact their local law enforcement or the FBI. Law enforcement believes that this robbery crew is responsible for other armed robberies in the area, and the investigation is ongoing.
The investigation was conducted by the FBI in cooperation with the Little Rock, Benton, Bryant, Sherwood, Lonoke, and Carlisle Police Departments. The indictment is being prosecuted by Assistant United States Attorney Benecia B. Moore.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
DEFENDANTS/CHARGES
Conspiracy to interfere with commerce by robbery:
- Christopher Earnest Bell, 36, Little Rock
- Daniel Glenn Caple, 20, Amity
- Justin Prince Pettis, 23, Little Rock
- Tony Bernard Smith, 28, Little Rock
- Antwann Deshawn Sockwell, 24, Little Rock
- Mike Dewayne Waller, 45, Little Rock
In addition to the conspiracy charge, the following defendants are also charged with the following crimes:
- Christopher Earnest Bell, interference with commerce by robbery (9 counts).
- Daniel Glenn Caple, interference with commerce by robbery (3 counts), possession of a firearm in furtherance of a crime of violence (3 counts).
- Justin Prince Pettis, interference with commerce by robbery (3 counts).
- Tony Bernard Smith, interference with commerce by robbery (6 counts).
- Antwann Deshawn Sockwell, interference with commerce by robbery (3 counts), possession of a firearm in furtherance of a crime of violence (1 count).
- Mike Dewayne Waller, interference with commerce by robbery (11 counts), possession of a firearm in furtherance of a crime of violence (2 counts).
STATUTORY SENTENCES
Conspiracy to interfere with commerce by robbery is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Interference with commerce by robbery is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Possession of a firearm in furtherance of a crime of violence (if brandished), is punishable by not less than 7 years, but not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 5 years supervised release.
Rachell Thomas Pleads Guilty to Conspiracy to Commit Wire Fraud in Aftermath of Bp Oil SpillRead the Press Release
RACHELL THOMAS, age 36, of New Orleans, Louisiana, pled guilty to conspiracy to commit wire fraud relating to applications for financial assistance in the aftermath of the Deepwater Horizon oil spill, announced U. S. Attorney Dana J. Boente.
The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico. The GCCF required individuals to verify loss of income. According to court documents, THOMAS and approximately 22 co-conspirators created claim forms in which they falsely claimed to work for seafood restaurants and to have suffered financially through lost employment as a result of the Deepwater Horizon incident. To support these fraudulent claims, THOMAS created false earnings statements and letters from fictitious restaurants and faxed them to the GCCF during September and October 2010. THOMAS and the other conspirators attempted to defraud the GCCF of a total of $188,500. THOMAS obtained $8,000 as a result of the scheme.
THOMAS faces a maximum term of five years imprisonment, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment. Sentencing is set for September 18, 2013.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Chandra Menon.
(Download Factual Basis )
Public Relations Firm Employee Admits Embezzling More Than $772,000 from EmployerRead the Press Release
DALLAS — Marci Johnson, 46, of Kaufman, Texas, appeared in federal court today and pleaded guilty before U.S. District Judge Jorge A. Solis to an Information charging one count of mail fraud, stemming from her embezzlement of more than $772,000, over at least seven years, from her employer, Spaeth Communications. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
If the Court accepts the terms of the plea agreement and full restitution of $772,829.25 has been paid prior to sentencing, the parties agree that the appropriate term of imprisonment should not exceed 24 months. Sentencing is set for September 18, 2013, before Judge Solis.
According to documents filed in the case, from at least August 2003 to March 2011, Johnson embezzled $772,829.25 from her employer, Spaeth Communications of Dallas. During part of that time, Johnson was the company’s Chief Administrative Officer, and in that role, had access to its company checks and company credit cards. Based on her long-standing working relationship with the company’s owner, Johnson occupied a position of trust that provided her substantial discretion over the company’s bank accounts.
Johnson admitted using her corporate American Express card for numerous personal charges, such as dining, department stores and entertainment. In addition, she used company checks to pay for outstanding charges on the company’s American Express bill, including charges she made for personal expenses. She also wrote company checks to cover charges on her personal credit cards. In fact, Johnson admitted that she wrote company checks to Citibank, her personal credit card provider, to cover the cost of an outdoor deck, hot tub, outdoor granite countertops and grill at her personal residence in Kaufman and caused false entries to be made in the company’s accounting software to prevent others from discovering her fraudulent purchases.
The investigation was conducted by the U.S. Postal Inspection Service and the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.
Postal Shooter Pleads Guilty to Using A Gun to Attempt to Assault Two Postal EmployeesRead the Press Release
Montgomery, Alabama - Arthur Lee Darby, Jr., 30, of Montgomery, pled guilty yesterday to attempted assault of two postal employees with a gun, discharging a gun during a crime of violence, and possession of a firearm in a federal facility, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
On December 1, 2011, at approximately 6:30 p.m., Darby, a part-time mail handler at the Main Post Office located at 6701 Winton Blount Boulevard in Montgomery went to work and opened fire on two postal employees. Fortunately, no one was shot.
“Our community will not stand for someone coming into a public place, including a post office, and shooting a gun around innocent people,” stated U.S. Attorney, George L. Beck, Jr.. “People have the right to be safe in their workplace and this man endangered the lives of all of the postal workers who were simply doing their jobs. My office will continue to work hard to keep those criminals who endanger people’s lives off of our streets.”
“One of the key tenets of the Postal Inspection Service’s mission is to provide a safe working environment for Postal Service employees through its criminal investigative efforts,” stated Keith Morris, Postal Inspector in Charge of the Atlanta Division. “This case demonstrates that workplace violence can occur anywhere and at any time. We are extremely fortunate that this incident did not end in tragedy for one or more of our employees, despite the true intentions of Mr. Darby. Yesterday’s guilty plea is yet another testament to the dedication that the Postal Inspection Service, the U.S. Attorney’s Office, and our local law enforcement partners have to ensuring that the Postal Service and its employees are free from violence.”
A sentencing date has yet to be set. However, Darby faces a possible sentence of life in prison when sentenced.
This case was investigated by the United States Postal Service and the Montgomery Police Department. This case was prosecuted by Assistant U.S. Attorney Susan Redmond.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Portsmouth Brothers Sentenced for 2011 Robbery Spree Across VirginiaRead the Press Release
NORFOLK, Va. - Laquan Draper, 21, and Angelo Draper, 20, both of Portsmouth, Virginia, were sentenced today on charges stemming from a series of commercial robberies over an eight week period in the summer of 2011. Laquan Draper was sentenced to 413 months and Angelo Draper was sentenced to 300 months for the conspiracy, robbery, and firearm convictions.
Neil H. McBride, United States Attorney for the Eastern District of Virginia, made the announcement after the sentences were handed down by Senior U.S. District Judge Robert G. Doumar.
During July and August of 2011, the Draper brothers engaged in an eight-week robbery spree spanning seven cities from Norfolk to Roanoke, Virginia. They used stolen vehicles as getaway cars for most of the events, and searched for potential robbery sites using a stolen GPS. The brothers concealed their identities ninja-style with black t-shirts tied around their faces and entered the business establishments usually between midnight and 4:00 a.m. armed with firearms or replica firearms. In most of the robberies, one brother would jump over the counter and the other would accost the clerk or store manager demanding money. In some of the locations, the men threatened to shoot the clerks if they did not comply with demands to open the cash register or safe. The men also robbed employees of two McDonald's Restaurants, a Wendy's Restaurant, a Fast Auto Loans location, and Got It Video Store in Norfolk. At the video store, the Drapers and a third unidentified suspect shot out the business’s glass front door and entered through the bottom panel. They then held customers and employees at gun-point and took money from the store registers. Laquan Draper was also convicted of attempting to rob an ABC Store in Norfolk on the morning of August 25, 2011, just a few hours before he and his brother were apprehended in Chesapeake after a harrowing high speed chase with Chesapeake Police, resulting in a head-on crash with a police vehicle. Two Chesapeake detectives were injured as a result of the crash, and received treatment at a local hospital for non-life-threatening injuries. Once the Draper brothers were removed from the stolen car, police recovered a .22 caliber hand-gun on the passenger floor board underneath Laquan Draper’s feet. Additional evidence recovered from the car was linked forensically to several of the crime scenes through shoe impressions, DNA, and fingerprint analysis.
After hearing from over ninety prosecution witnesses in just two weeks, a federal jury convicted the Draper brothers on January 23, 2013, of conspiracy to commit robbery, multiple counts of commercial robbery, and discharging a firearm during a violent felony. Laquan Draper was also convicted of possession of a firearm by a felon.
This case was investigated by the FBI, Appomattox County Sheriff’s Department, Chesapeake Police Department, Norfolk Police Department, Portsmouth Police Department, Roanoke City Police Department, Roanoke County Police Department, and Virginia Beach Police Department. Additional assistance was provided by the Farmville County Sherriff’s Office and the Suffolk Police Department. Assistant United States Attorney Sherrie S. Capotosto and Special Assistant United States Attorney Amy E. Cross prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pennsylvania Man Pleads Guilty in Failure to Register CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Gregory Grove, 37, of Fayette, N.Y., pleaded guilty to failing to register as a sex offender before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the defendant left the State of Pennsylvania in June 2011 and moved to Seneca County. As a sex offender, Grove was required to register under the Sex Offender Registration and Notification Act. The defendant failed to register as a sex offender in the Western District of New York and failed to update his registration status with Pennsylvania authorities to advise them that he had left that state.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of the United States Marshals Service, under the direction of United States Marshal Charles Salina.
Sentencing is scheduled for September 5, 2013 at 11:00 a.m. before Judge Larimer.
Owner of Ocean County, N.J., Architectural Firm Sentenced to Three Months in Prison for Submitting False Corporate ReturnsRead the Press Release
NEWARK, N.J. – The owner of an Ocean County, N.J., architectural and engineering firm was sentenced today to three months in prison and three months of house arrest for filing fraudulent tax returns on behalf of his firm, U.S. Attorney Paul J. Fishman announced.
Pravin H. Patel, 67, of Toms River, N.J., previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an Information charging him with subscribing to false corporate tax returns on behalf of his firm, Pravin H. Patel Associates Inc., of Toms River, N.J. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Patel was the owner and operator of Pravin H. Patel Associates Inc. for more than 25 years; in recent years, the firm’s primary clients included the Toms River Board of Education and Ocean County College. Between 2005 and 2009, Patel filed corporate tax returns which falsely passed off personal expenses as legitimate business deductions.
Among the personal expenses which Patel admitted to improperly using to reduce the tax liability owed by his company was $112,650 in payments for renovations on his personal residence in 2006. Patel also admitted that the corporate tax return for the year ending in March 2007 improperly included more than $8,200 in expenses related to a personal country club membership and associated fees, as well as numerous personal expenses paid through a corporate credit card. Patel admitted that the corporate tax return for the year ending in March 2007 included false deductions of more than $145,000 and that the tax loss over a four-year period for which he is criminally liable totaled $63,815.
In addition to the prison term, Judge Chesler sentenced Patel to two years of supervised release, which includes three months of house arrest, and ordered him to pay a $15,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, and special agents of the FBI under Special Agent in Charge Aaron T. Ford, with the investigation that resulted in today’s sentence.The government is represented by Special Litigation Counsel Mark J. McCarren of the U.S. Attorney’s Office Special Prosecutions Division.
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Defense counsel: Lawrence Horn Esq. and Richard Sapinski Esq., NewarkNorth Hills Man Pleads Guilty to Bank Fraud and Money LaunderingRead the Press Release
PITTSBURGH, Pa. - A resident of Gibsonia, Pa., pleaded guilty in federal court to charges of bank fraud and money laundering, United States Attorney David J. Hickton announced today.
Peter Cicero, 41, pleaded guilty to two counts before United States District Judge David Cercone, and Cicero agreed to accept responsibility for the other six counts of the Indictment.
In connection with the guilty plea, the court was advised that Cicero participated in several fraud schemes. Cicero defrauded Community Bank in connection with the $1.8 million loan made to fund Cicero's $3.3 million purchase of certain companies associated with closing real estate transactions. Cicero defrauded Community Bank by overstating the true sales price of the companies, falsely representing that sources outside of the closing companies would make substantial payment toward the purchase of the companies, when, in fact, Cicero took money from the very companies that he was purchasing to fund the purchase. Cicero submitted to Community Bank a forged subordination agreement and received $500,000 back from the seller of the companies after the closing, which represented an overstatement of the sales price.
In separate schemes, Cicero caused the submission of fraudulent loan applications and other documents to lenders to obtain loan collateralized by real estate. The false representations to secure loans including overstating income, understating liabilities, and failing to pay liabilities associated with the collateral servicing the loan. He also directed an individual to remove a lien from a title report. Cicero committed money laundering by causing a wire transfer of some of the proceeds of the mortgage fraud scheme to an account at Mars National Bank.
Cicero also committed bankruptcy fraud by concealing money and jewelry in connection with his bankruptcy filings, and access device fraud by using a credit card without authorization.
Judge Cercone scheduled sentencing for Oct. 15, 2013. The law provides for a total sentence of 50 years in prison, a fine of $1,500,000, 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 Brendan T. Conway is prosecuting this case on behalf of the government.
The Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Cicero. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
New Jersey-based Financial Advisor Pleads Guilty, Admits Defrauding Elderly InvestorsRead the Press Release
Judge Orders Forfeiture of Nearly $700,000 Scammed from Victims
TRENTON, N.J. – A Somerset County, N.J.-based financial advisor pleaded guilty today to stealing $138,000 from two elderly investors and funding his lavish lifestyle with money he claimed to be investing in conservative securities and his business, U.S. Attorney Paul J. Fishman announced.
Ralph A. Saviano, 72, of Bridgewater, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with wire fraud. Saviano surrendered himself to the FBI this morning before the plea hearing.
According to documents filed in this case and statements made in court: Saviano, an investment advisor who had worked in the financial industry for more than 40 years, targeted clients through his association with Centaurus Financial, Inc., and later through Saviano Financial Group (SFG), from as early as July 2007 through October 2012.
During this time, Saviano had approximately 300 clients, many of whom were unsophisticated investors between the ages of 60 and 85, whom he had known for many years and who trusted his financial experience and advice. Saviano admitted he targeted clients he knew were about to receive significant amounts of cash, such as maturing certificates of deposit (CDs), and proposed that they invest those funds in low-risk investments or in his business, SFG. Saviano said he would use these “business loans” solely for business expenses.
At the plea hearing, Judge Wolfson entered a consent judgment and order of forfeiture in the amount of $699,926.51, which constitutes the proceeds Saviano obtained from his known investor victims as a result of his offense.
Specifically, Saviano admitted that in May 2012, an 85-year-old client gave him approximately $63,000 from a mature CD that she was told would be invested in two investment funds. Saviano accompanied the client to her bank to redeem the CD and instructed her make the proceeds from the CD payable to him.
Also, in June 2012, another of Saviano’s clients – 80 years old and suffering from cancer – gave Saviano approximately $75,000 she inherited from a recently deceased relative, making the check out to cash with the words “financial investment” in the memo field.
Saviano admitted that, to date, has not returned to either woman any of the principals of their investments; nor have they received any interest payments on those funds. Instead of doing as he claimed, Saviano used the funds to repay prior “loans” from other clients in Ponzi-scheme fashion, and to pay for various personal expenses, including: at least $33,000 for granite countertops and other home improvements, $18,000 in cash payments to himself and family members, $10,000 in personal mortgage and rent payments, and thousands more in jewelry, clothing, a family vacation to Aruba and a theater donation.
The wire fraud count to which Saviano pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gross amount of pecuniary gain or loss resulting from the offense. Sentencing is scheduled for Sept. 11, 2013.U.S. Attorney Fishman praised special agents of the FBI, under the direction of Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s New York office for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney’s Office Economic Crimes Unit and Evan Weitz of the office’s Asset Forfeiture and Money Laundering Unit in Newark.
If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Eric R. Breslin Esq., Newark, N.J
Saviano Information
Mulberry Man Sentenced to 30 Years in Federal Prison for Drug TraffickingRead the Press Release
Tampa, Florida - U.S. District Judge Susan C. Bucklew today sentenced Earl Eugene Hampton (58, Mulberry) to 30 years in federal prison for conspiring with others to distribute cocaine. The court also ordered Hampton to forfeit a 2004 Dodge Quad Cab ST recreational vehicle (RV), which was traceable to proceeds of the offense. Hampton pleaded guilty on March 6, 2013. According to court documents and testimony presented at sentencing, Hampton had been involved in distributing cocaine for the past forty years. Between 2009 and 2012, he was responsible for the distribution of approximately 280 kilograms of cocaine in Orlando, Clearwater, and elsewhere.
In numerous intercepted phone calls, Hampton negotiated with his Miami-based cocaine suppliers, and arranged for Gerald Jermaine Head, to drive him to Miami to pick up the cocaine. The investigation revealed that Head drove from Clearwater and picked up Hampton in Mulberry. Hampton and Head then drove together to the Miami area and spent the night at a motel in Hallandale, Florida.
On July 19, 2012, Hampton and Head met with Hampton's suppliers in Miami, obtained cocaine, and drove the drugs back to Hampton's residence in Polk County. Head then left with most of the cocaine.
Officers from the Clearwater Police Department later conducted a traffic stop on the vehicle being driven by Head, on Gulf-to-Bay Boulevard. The officers made contact with Head and immediately smelled marijuana when he lowered the driver's side window. A drug-detecting canine alerted to the presence of narcotics inside the vehicle. Officers then located and seized 482 grams of cocaine (part of the cocaine they had purchased in Miami earlier in the day) from underneath the passenger seat of the vehicle. On August 4, 2012, a search warrant executed at Hampton's residence resulted in the seizure of three firearms that Hampton admitted to possessing illegally.
Gerald Head pleaded guilty to a cocaine distribution conspiracy charge on January 18, 2013. On April 10, 2013, he was sentenced to 10 years and 10 months in federal prison. Hampton received a lengthier sentence because of his greater role in the offense and lengthy criminal history.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Metropolitan Bureau of Investigation (MBI), with assistance from the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Clearwater Police Department, and the Lee County Sheriff's Office, as part of as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation's illegal drug supply.
This case was a part of ATF’s “Frontline” strategy; an intelligence-driven approach to investigating federal firearms crimes. It focuses on the continuous communication, assessment, measurement, and collaboration of resources among Federal, state, and local law enforcement partners. It was prosecuted by Assistant United States Attorneys Christopher F. Murray and Robert E. Bodnar, Jr.
Mt. Lebanon Man Sentenced to 8+ Years in Prison for Possessing Sexually Explicit Images of ChildrenRead the Press Release
PITTSBURGH - A resident of Mt. Lebanon, Pa., has been sentenced in federal court to 97 months in prison and 15 years of supervised release on his conviction for possessing sexually explicit images of children, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Andrew Thomas Dahmen, 23.
According to information presented to the court, on Jan. 2, 2012, Mt. Lebanon police responded to a pizza restaurant at 713 Washington Road, after the father of a five year-old child reported that Dahmen had attempted to produce a cellular telephone image of the child in the bathroom. Further investigation resulted in the seizure of the cellular phone as well as computers and storage media from Dahmen's residence. Dahmen was found to be in possession of hundreds of images of child pornography, including images depicting prepubescent minors, and had produced images of children with his cellular telephone.
Prior to imposing sentence, Judge Diamond stated that the sentence was warranted to protect the public and to prevent the defendant from "being a potential sexual predator of young people," and "pursuing conduct directly detrimental to children."
Assistant United States Attorney Soo C. Song prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mt. Lebanon Police Department, assisted by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Dahmen.
Mt. Carmel Accountant Faces up to 40 Years in Prison for Fraud and Money Laundering Crimes Against Elderly VictimRead the Press Release
A Mt. Carmel resident pled guilty in federal court to wire fraud and money laundering on June 5, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Kevin C. Williams, 53, was indicted by the federal grand jury on January 8, 2013.
The indictment alleged that Williams, an accountant, developed a personal relationship with an elderly Mt. Carmel resident which enabled him to exert influence over the investment and distribution of her income. Williams admitted in court that he engaged in a lengthy scheme to defraud the victim, by stealing her money while she was alive and altering her will and trust documents so that he would stand to inherit more of her money upon her demise.
Williams admitted orchestrating a fraud scheme against the elderly victim where he conducted a series of financial transactions that caused the victim to lose a total of $2,087,630. He transferred the victim’s funds into his personal checking accounts, his personal savings accounts, his business accounts, and to pay his mortgage. Williams provided the victim with phony account statements so that she would believe that her money was safely invested, when in truth much of her money had been stolen.
Williams also admitted that he committed money laundering by engaging in a series of financial transactions designed to deceive the victim into believing that she was receiving interest payments from investments when no such investments really existed. Williams admitted that he misappropriated the victim’s money to buy cashier’s checks, but then later misrepresented those cashier’s checks to be the proceeds of her investments, when in truth and in fact no such investments existed. According to the terms of the plea, in addition to being ordered to repay the victim, Williams also agreed to pay restitution to the IRS in the amount of $106,438, to a former employer for embezzling $38,547 and to the State of Illinois for fraudulently claiming $16,174 in unemployment benefits.
At sentencing, Williams faces sentences for Wire Fraud, punishable by not more than 20 years in prison, and/or a $250,000 fine, and not more than three years of supervised release, and for Money laundering, which is punishable by not more than 20 years in prison, and/or a $500,000 fine, or both, and not more than three years of supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Charges not affecting the calculation of the sentencing guidelines were dismissed as part of the plea. Williams will be sentenced on September 26, 2013.
The investigation was conducted by agents from the Internal Revenue Service / Criminal Investigations, the Illinois Secretary of State Division of Securities, and the US Department of Labor. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Monmouth County, New Jersey Financial Adviser Sentenced to Seven Years in Prison for $9 Million Ponzi SchemeRead the Press Release
TRENTON, N.J. – Maxwell B. Smith, a Monmouth County, N.J.-based financial adviser and broker, was sentenced today to 84 months in prison for defrauding New Jersey investors out of more than $9 million, U.S. Attorney Paul J. Fishman announced.
Smith, 73, of, Red Bank, N.J., previously pleaded guilty to a five-count Information charging him with mail fraud in connection with his creation of a sham entity known as Health Care Financial Partners (HCFP). Smith entered his guilty plea before U.S. District Judge Mary L. Cooper, who imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
HCFP purported to be an investment fund with more than $300 million in assets under management, comprising loans to healthcare facilities such as nursing homes. Using his relationships with his investor clients, Smith sold supposed securities in HCFP through sham bond offerings ranging in price from $25,000 to $300,000 per investment.
Smith induced individual investors by creating an investment prospectus falsely stating that the total value of HCFP’s holdings exceeded $300 million. He also falsely claimed that investors’ money would earn yearly dividend interest of between 7.5 and 9 percent, and that the returns on their investments would be tax-free, similar to municipal bonds.
To lull investors into thinking their investments were legitimate and earning returns, Smith used a portion of investors’ funds to purchase bank checks, which he then sent to investors as purported earnings on their investments.
At his plea hearing, Smith admitted he did not invest the money as promised, but rather misappropriated the investors’ money for his personal expenses including dining, entertainment, gambling and international travel. Smith admitted defrauding HCFP investors out of more than $9 million.
In addition to the prison term, Judge Cooper sentenced Smith to three years of supervised release. Restitution will be determined at a future hearing.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; as well as special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation.
The government is represented by Assistant U.S. Attorney Gurbir S. Grewal of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: Robert A. Weir, Jr., Esq., Red Bank, N.J.
Mission Man Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man convicted of Larceny was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Eddie Tunstall, III, age 33, was sentenced to 10 months in custody, 2 years of supervised release, $6,000 in restitution and $100 to the Federal Crime Victims Fund.
Tunstall was indicted by a federal grand jury on September 19, 2012 and pled guilty to the charge on March 6, 2013.
The conviction stems from an incident that took place on December 29, 2011, when Tunstall entered Turtle Creek Crossing store in Mission, took U.S. Currency from the store’s safe, and then left with the money.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney’s Tim Maher and Kathryn Rich.
Tunstall was remanded to the custody of the U.S. Marshal.
Mission Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man convicted of Failure to Register as a Sex Offender was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Johnny Lunderman, a/k/a Johnny Iron Horse, age 30, was sentenced to 16 months in custody, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.
Lunderman was indicted by a federal grand jury on February 13, 2013 and pled guilty to the charge on March 19, 2013.
The Defendant was convicted of Sexual Abuse of a Minor on September 8, 2009. The Court sentenced Lunderman to 40 months’ imprisonment, 5 years of supervised release and also ordered that he must register as a sex offender.
On January 9, 2012 Lunderman began his term of supervised release. It was determined on December 12, 2012 that Lunderman was not living at the home in which he had registered in Rapid City. On February 3, 2013 Lunderman was arrested near the Rosebud Sioux Indian Reservation.
The investigation was conducted by the U.S. Marshal Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Lunderman was remanded to the custody of the U.S. Marshal.
McLaughlin Woman Sentenced on Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota woman appeared before U.S. Magistrate Judge William D. Gerdes and pled guilty to a Superseding Information charging Simple Assault.
Cassie Yellow Earrings, age 21, was sentenced to one year of unsupervised probation, and a $10 special assessment to the Federal Crime Victims Fund.
Yellow Earrings was indicted by a federal grand jury in December of 2012. The conviction stems from an incident during the early morning hours of September 19, 2012 when the Defendant and others unlawfully entered a home in McLaughlin with the intention of confronting the victim about a prior argument. Upon entering the home, a fight ensued. The Defendant struck the victim in the back of the head with her fist.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley prosecuted the case.
Maryland Man Sentenced to 4 ½-Year Prison Term for Series of Home Break-ins-Admitted Entering Three Northwest Washington Homes Within A Month –Read the Press Release
WASHINGTON - Tyrone Edmondson, 40, of Temple Hills, Md., was sentenced today to a 4 ½-year prison term on charges stemming from a series of break-ins of Northwest Washington homes, including one last Christmas, U.S. Attorney Ronald C. Machen Jr. announced.
Edmondson pled guilty in April 2013 in the Superior Court of the District of Columbia to three counts of attempted second-degree burglary. He was sentenced by the Honorable Stuart G. Nash. Upon completion of his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, on Dec. 25, 2012, at about 8 p.m., Edmondson entered a home in the 800 block of Varnum Street NW through an unlocked rear door. He took computers, a video gaming system, a camera, shoes, jeans, and a jacket.
On Jan. 21, 2013, at about 3:15 p.m., Edmondson entered a home in the 1500 block of Upshur Street NW through an unlocked rear sliding glass door. He took a computer, jewelry, phone and coat. Finally, on Jan. 22, 2013, at about 3:30 p.m., he entered a home in the 1500 block of Crittenden Street NW, once again through an unlocked rear door. This time, he took a television, a Kindle, and loose change. The owner of this home was upstairs at the time, and after hearing noises in her living room, called the Metropolitan Police Department (MPD). Police responded, and found Edmondson in an alley near the house, with the victim’s property.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also praised the efforts of those who worked on the matter from the U.S. Attorney’s Office, including Paralegal Specialist Todd McClelland, Intelligence Specialist Sharon Johnson, and Assistant U.S. Attorney Phil Selden, who investigated and prosecuted the case.
13-195Louisiana Businessman Pleads Guilty to Making<br /> False Statements to the Federal Election CommissionRead the Press Release
The president of a Louisiana towing company pleaded guilty today to using his personal and business accounts to fund campaign contribution checks in the names of others in support of two candidates for the U.S. Senate, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Dana Boente announced.
Arlen “Benny” Cenac Jr., 57, a resident of Houma, La., and the president and owner of Cenac Towing, pleaded guilty today to making false statements to the Federal Elections Commission (FEC). He faces a maximum penalty of five years in prison when he is sentenced on Sept. 5, 2013, before U.S. District Judge Carl Barbier.
“Today’s plea marks the second campaign finance conviction in a week and is one of many such cases brought throughout the nation,” said Acting Assistant Attorney General Raman. “Mr. Cenac’s crime undermined the cornerstones of campaign finance laws, and his conviction demonstrates our resolve to hold accountable anyone who corrupts our electoral process.”
“Mr. Cenac, in an effort to increase his political contributions, structured his financial transactions and created false documents,” said U.S. Attorney Boente. “This prosecution should serve as a warning to people who attempt to hide their identity and make contributions in excess of legal limits.”
According to the plea documents, Cenac obtained cashier’s checks using his personal and corporate funds in names of individuals other than himself, including people he knew professionally, personally, or through family relations. Cenac neither sought nor obtained the permission of the individuals he listed as remitters on the cashier’s checks. He then submitted the checks as campaign contributions to the campaigns of two U.S. Senate candidates, causing the campaigns to submit materially false information regarding the source and the amount of the contributions to the FEC.
The case was investigated by the FBI’s New Orleans Division. Trial Attorney Tracee Plowell of the Public Integrity Section and Assistant U.S. Attorney Daniel Friel of the Eastern District of Louisiana are prosecuting the case on behalf of the United States.
London Physician Pleads Guilty to Health Care Fraud Charges in First Case of Its Kind in KentuckyRead the Press Release
FRANKFORT, KY - A London, KY., cardiologist pleaded guilty to charges that he falsely recorded the severity of patients’ illnesses in order to receive payment for numerous heart procedures.
Sandesh Rajaram Patil, 51, a former cardiologist at St. Joseph’s Hospital in London, admitted Tuesday in Frankfort to making false statements regarding the placement of heart stents. Stents are metal tubes surgically inserted into a patient’s arteries in order to improve blood flow.
Patil reached an agreement with the U.S. Attorney’s Office to serve a prison term between 30 and 37 months, pending a judge’s approval. Patil is scheduled for sentencing on August 27, 2013. St Joseph’s hospital has repaid the government $256,800 for cardiac stent procedures that Patil falsely submitted for reimbursement in 2009 and 2010.
Patil is the third cardiologist in the nation, and the first in Kentucky, to be federally prosecuted for health care fraud related to the placement of heart stents.
“Dr. Patil violated the public’s trust in physicians,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “Both patients and the entities that pay for medical services trust that our physicians will accurately and honestly assess a patient’s medical condition. We will aggressively pursue any physician or provider that breaches this trust and places their own financial well-being ahead of the well-being of the patients.”
Under federal law, Medicare and Medicaid reimburse physicians for procedures that are deemed medically necessary. For a cardiac stent procedure to qualify as a medical necessity, it is generally accepted that a patient must have at least 70 percent blockage of an artery and symptoms of blockage. Patil admitted that he placed stents in arteries that had substantially less than 70 percent blockage. Patil nonetheless recorded blockage of 70 percent or more in patient documents to guarantee payment from Medicare and Medicaid.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, and Jack Conway, Kentucky Attorney General, jointly announced the plea.
The investigation was conducted by the Federal Bureau of Investigation, the Kentucky Attorney General’s Medicaid Fraud Abuse and Control Unit, and the Department of Health and Human Services.
Defendant is the Third Cardiologist Nationwide to be Criminally Prosecuted for Health Care Fraud Related to the Placement of Heart Stents
Livingston, N.J., Tax Return Preparer Admits Filing Tax Returns Using the Identification of A Dead PersonRead the Press Release
NEWARK, N.J. – A Livingston, N.J., tax return preparer today admitted filing false claims with the IRS using a dead tax return preparer’s identification and preparing false documents for numerous fraudulent loans, U.S. Attorney Paul J. Fishman announced.
Todd P. Halpern, 48, pleaded guilty today before U.S. District Judge William J. Martini to an Information charging him with filing false claims and wire fraud.
According to documents filed in this case and statements in court:
In late 2008, Halpern purchased A & V Financial (A & V), a tax return preparation business located in Guttenberg, N.J., from the wife of the prior owner, V.R., who had died in March 2008. Halpern received the company’s computers and all of its client records. As part of the agreement to purchase A & V, Halpern was to obtain a new Electronic Filing Identification Number (EFIN) in his own name. Instead, he continued to file tax returns using V.R.’s EFIN number because Halpern’s criminal record prevented him from obtaining an EFIN.
From 2009 through 2010, Halpern prepared and caused to be filed 657 fraudulent federal income tax returns with the IRS using V.R.’s EFIN. Halpern prepared and filed some of these fraudulent tax returns without the knowledge and authorization of the taxpayers identified on the returns. Some of these tax returns contained fraudulent income and deduction amounts, which generated fraudulent refunds that were directly deposited into Halpern’s bank account.
On or about June 24, 2009, in one case, Halpern prepared and filed a fraudulent 2008 Form 1040 U.S. Individual Income Tax Return with the IRS in the name of B.G., which fraudulently claimed an income tax refund in the amount of $13,183. The 2008 Form 1040 prepared by Halpern contained false income and deduction entries for B.G., because B.G. did not have any income for that tax year and did not file an income tax return. The $13,183 tax refund was directly deposited into Halpern’s bank account.
Halpern received a total of $373,938 in fraudulent tax refunds. He used these funds to support his lavish lifestyle, including purchases at Prada, Chanel, Saks Fifth Avenue, and Bloomingdales, to acquire season tickets to the New York Giants, to purchase thousands of dollars in jewelry, gold coins, and silver certificates, to make car payments on multiple luxury vehicles, including a 2007 Cadillac Escalade and a 2008 Lexus GX-470, and to buy car parts for his classic 1957 Chevy Bel Air.
From January 2008 through May 2012, Halpern prepared false documents for numerous fraudulent loans from financial institutions. Halpern prepared tax returns, Forms W-2, and bank statements showing inflated income and asset balances to be used to support loan applications for borrowers, including him, to acquire mortgage loans, primarily involving residential properties in New Jersey, as well as other personal and business loans. Halpern and others caused the fraudulent documents to be submitted to mortgage lenders, other financial institutions, the U.S. Department of Housing and Urban Development, and the Federal Housing Administration (FHA), which were relied upon for the approval of mortgage and other loans.
In November 2009, Halpern served as the buyer for the short sale of 215 Newark Ave., Bloomfield, N.J., from seller B.S. for a purchase price of approximately $185,000. In support of Halpern’s purchase of this property, an FHA-insured mortgage loan for Halpern in the amount of $181,649 was obtained from a N.J.-based mortgage company. Halpern and others submitted numerous fraudulent documents to FHA and to the mortgage company, including false bank statements, pay stubs and 2008 federal income tax returns in Halpern and his wife’s names. As in his tax fraud scheme, the false tax returns that Halpern prepared reflected V.R.’s identification number in an effort to conceal that Halpern had personally prepared the tax returns.
At the plea hearing, the Court also entered a Consent Judgment and Order of Forfeiture for $373,938 and for a classic 1957 Chevy Bel Air, which constitutes the proceeds that Halpern obtained as a result of his frauds.The wire fraud count to which Halpern pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million, or twice the gross amount of pecuniary gain or loss resulting from Halpern’s offense. The tax fraud count carries a maximum penalty of five years in prison, and a maximum fine of $250,000. Sentencing is scheduled for Sept. 10, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Cary Rubenstein, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the Economic Crimes Unit and Evan Weitz of the Asset Forfeiture and Money Laundering Unit of the U.S. Attorney’s Office in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Marshall J. Wofsy Esq., Jersey City, N.J.Halpern Information
Leader of Illegal Gambling Ring Pleads Guilty, Associate Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DEAN DePRETA, 45, of Stamford, pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO) stemming from his involvement in illegal gambling businesses. JOHN LIQUORI, 43, of North Haven, previously pleaded guilty to the same charge and was sentenced today by Judge Bryant to 18 months of imprisonment, followed by three years of supervised release. LIQUORI also was ordered to forfeit $60,000.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, DePRETA, LIQUORI and 18 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden. DePRETA and LIQUORI are alleged associates of the Gambino organized crime family.
The investigation, which included the use of court-authorized wiretaps, revealed that DePRETA headed a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. LIQUORI and Michael Pepe worked with DePRETA to operate the sports book in the greater New Haven area and managed a large number of bookies and gamblers.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
In addition, DePRETA, with the assistance of LIQUORI, Pepe and others, operated a card gambling club at 2965 State Street in Hamden, where a house percentage, commonly referred to as a “rake,” was collected from every hand played.
In pleading guilty, DePRETA also admitted that he committed acts of extortion while leading this racketeering enterprise.
DePRETA has been detained since his arrest on June 13, 2013. He is scheduled to be sentenced on August 28, 2013, at which time he faces a maximum term of imprisonment of 20 years. He also has agreed to forfeit $300,000.
LIQUORI pleaded guilty to one count of racketeering conspiracy on March 13, 2013.
On August 6, 2012, Pepe pleaded guilty to two counts of operating an illegal gambling business and, on November 16, 2012, he was sentenced to 12 months and one day of imprisonment and was ordered to forfeit $100,000.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
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(203) 821-3722 [email protected]Leader in $200 Million International Stolen Data Ring Charged in New Jersey as Part of Worldwide TakedownRead the Press Release
NEWARK, N.J. – One of the leaders of an international data theft ring has been federally charged in New Jersey for his alleged role in a scheme which caused approximately $200 million in fraudulent charges to credit cards issued in the United States and Europe, New Jersey U.S. Attorney Paul J. Fishman announced.
Duy Hai Truong, 23, of Ho Chi Minh City, Vietnam, is charged by criminal complaint with conspiracy to commit bank fraud. From 2007 until his recent arrest, Truong allegedly defrauded financial institutions as part of the massive scheme, in which personal identifying information relating to more than 1.1 million credit cards was stolen and resold to criminal customers worldwide.
Global law enforcement efforts by the FBI, the United Kingdom’s Serious Organised Crime Agency (SOCA) and Vietnamese authorities have disbanded the ring following a worldwide investigation into Truong and his conspirators. Truong is charged in the United States in conjunction with charges and arrests made over the past week in the United Kingdom, Vietnam, Italy, Germany and elsewhere.
Truong was apprehended by Vietnamese authorities on May 29, 2013, and remains in their custody on a related charge out of the United Kingdom.
According to the complaint filed today in Newark federal court:
The massive conspiracy, based in Vietnam, specialized in obtaining personal identifying information, known as “PII,” that had been provided to retailers who sold goods and services online and received online credit card payments. The conspirators illegally obtained a variety of PII, including purchasers’ names, addresses, credit card information and social security numbers – including from victims in New Jersey.
The conspirators, including Truong, then sold the data on a per-victim basis. The data related to a single, identifiable victim was referred to as a “dump.”
The conspirators used fraudulent e-mail accounts and a website located at www.mattfeuter.biz and www.mattfeuter.com to facilitate their crimes. Individuals seeking to illegally purchase victims’ credit card information either accessed the fraud website or sent the hackers an e-mail at one of the fraud accounts, requesting a certain number of dumps.
Truong and other sellers charged a fee for each dump. Fees varied from approximately $1 to $300 per dump, depending on the victim’s country of origin and the completeness of the information being sold, among other factors. The fees were paid via wire transfer services including Western Union and Liberty Reserve.
Those who bought PII from the conspirators would either incur fraudulent charges on the victims’ credit cards themselves, or resell the dumps to other downstream purchasers. Cumulatively the scheme resulted in $200 million in fraudulent charges.
If convicted, Truong faces a maximum of 30 years in prison and a fine of $1 million or twice the gain derived from the offense or twice the loss caused by the offense, whichever is greatest.
U.S. Attorney Fishman noted that the U.S. charge arose as part of the close, unprecedented coordination between the Newark FBI; the FBI’s International Operations and Cyber Divisions; SOCA; and Vietnam’s Ministry of Public Security, High Tech Crime Department.
The government is represented by Assistant U.S. Attorney Zach Intrater of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations against Truong are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Truong Complaint
Kenly Man Sentenced to Life for Narcotics & Weapon ViolationsRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court yesterday, DAVID NEIL PHILLIPS, 38, of Kenly, North Carolina was sentenced by Senior United States District Judge James C. Fox to life imprisonment, followed by supervised release for a term of life.
On November 6, 2012, PHILLIPS pled guilty to one count of Conspiracy to Manufacture, Distribute, and Dispense and Possess With Intent to Distribute 500 Grams or More of a Mixture and Substance Containing a Detectable Amount of Methamphetamine and 5 Kilograms or More of Cocaine, in violation of Title 21, United States Code, Section 846, and Section 841(b)(1)(A) and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, United States Code Section 924(c)(1)(A).
According to the investigation, from September 2008 until August 2011, PHILLIPS is accountable for 47.0206 kilograms of cocaine, 12.8864 kilograms of crystal methamphetamine, and 140 grams of methamphetamine. Firearms were possessed in connection with PHILLIPS drug-trafficking activities.
Investigation of this case was conducted by the Johnston County Sheriff’s Office and the North Carolina State Bureau of Investigation. Assistant United States Attorney Jennifer E. Wells prosecuted the case.
Justice Department Reaches Settlement with Supershuttle Under the Americans with Disabilities ActRead the Press Release
The Justice Department announced today that it has reached a settlement with SuperShuttle, a shared-ride transportation company based in Arizona, to resolve a complaint that it discriminated against a blind person who uses a service animal. Specifically, the Justice Department determined that SuperShuttle violated the Americans with Disabilities Act (ADA) by forcing a blind person who uses a service animal and her party to ride in a separate van and charging them a higher rate than other individuals who are allowed to share a van and pay a reduced fare.
“Americans with disabilities are entitled to the same opportunities that others have and the Department of Justice is committed to ensuring that people with disabilities are treated equally,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division. “We are pleased that SuperShuttle has committed to taking affirmative steps to remedy this situation throughout its company.”
Under the terms of the settlement agreement, SuperShuttle will adopt a revised service animal non-discrimination policy; train all employees, franchisees and independent contractors on the requirements of the ADA; and pay $1,000 in damages to the complainant.
The ADA prohibits discrimination against people with disabilities by private transportation providers. Among other things, transportation providers must allow people with disabilities the full and equal enjoyment of their goods, services and facilities. They must also make reasonable modifications of their policies, practices and procedures to permit service animals by people with disabilities.
Those interested in learning more about this settlement or an entity’s obligations under the ADA may call the Justice Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access its ADA website at www.ADA.gov . Additionally, ADA complaints may be filed by email to [email protected] .Related Materials:
Settlement Agreement