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5 June 2013
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.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(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
Joliet Man Sentenced to 10 Years in Prison for Setting Fire in 2007 to Home of Neighboring African-American FamilyRead the Press Release
CHICAGO — An admitted white-supremacist was sentenced today to the maximum of 10 years in federal prison for violating the civil rights of an African-American family whose home he set on fire after they moved onto his block in 2007. The defendant, BRIAN JAMES MOUDRY, pleaded guilty in January of this year and agreed to the 10-year sentence, admitting that at approximately 4 a.m. on June 17, 2007, he carried a can containing gasoline to the home, splashed the gasoline on the residence and ignited it. No one was injured, although the home was occupied by eight children, ranging in age from 4 to 14, and an adult at the time of the fire.
Moudry, 36, formerly of the 300 block of South Reed Street, Joliet, pleaded guilty to using fire to interfere with the victims’ housing rights on the basis of race. He has been in federal custody since he was arrested on May 30, 2012. U.S. District Judge Robert Gettleman imposed the agreed maximum sentence and ordered Moudry to undergo mental health and substance abuse treatment. He also ordered Moudry to pay $7,108 in restitution to cover damage to the residence and to reimburse the Joliet Fire Department.
“This was an exceptionally despicable crime motivated by hate. The victims of the arson did nothing, but move into a new residence in Joliet. Unbeknownst to the victims, several houses down lived a white supremacist who never knew the victims but hated them because they were African American,” the government argued in a sentencing memo.
“There is nothing we do as federal prosecutors that’s more important, not to mention more satisfying, than vindicating the rights of our fellow citizens, whatever their race, ethnicity, or religious background, to live in peace and security,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
“One of the FBI’s top priorities is safeguarding the rights of all Americans. This case demonstrates our commitment to investigate and bring to justice those whose hatred of others leads them to violate civil rights,” said Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
In pleading guilty, Moudry admitted that he was upset that an African-American family rented a house at 318 South Reed St., in May 2007 on the same block as his house. He admitted that he set the fire because African-Americans were occupying the home, and that he intended to interfere with their continued ability to rent the residence and to intimidate the owner from continuing to rent to African-Americans.
The government was represented by Assistant U.S. Attorneys Nancy DePodesta and Steven Dollear.
Individual Arrested for “Sextortion” in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico — On Tuesday, June 4, 2013, Jimmy Caraballo-Colón was arrested in Caguas, for coercing a female minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct (production of child pornography), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. This arrest followed an investigation from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Cyber Crimes Unit in Puerto Rico and Colorado, and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF).
Jimmy Caraballo-Colón, a 25 years-old summer camp counselor who teaches cheerleading to minors, was engaging in a new modality of sexual blackmailing called “sextortion” with a 17 year-old female minor from the State of Colorado. According to the investigation, Caraballo-Colón met the minor in an anonymous internet video chat website. During the chat, Caraballo-Colón offered the minor game “points” for removing her clothes. The defendant then proceeded to blackmail the minor by threatening to post the nude recording in the internet if the minor did not provide her personal information such as her phone number, email address, Skype address and Facebook account. Despite the fact that the minor complied with Caraballo-Colon’s request, the “sextortion” escalated as he demanded more sexually explicit acts during the video chats, including masturbation, which he also recorded.
On June 4, 2013, a Search Warrant was executed at Caraballo-Colon’s residence in Caguas, where he was subsequently detained. He was charged in a Complaint with production of child pornography. He was brought before U.S. Magistrate Judge Bruce J. McGiverin for his initial appearance on June 4, 2013 and was ordered temporarily detained.
If convicted, the defendant faces a mandatory minimum sentence of not less than 15 years of incarceration. This case is being prosecuted by Assistant U.S. Attorney Elba Gorbea.
“Unfortunately, our community has witnessed a dramatic increase in child pornography and child abuse through the internet. Predators, often disguised as peers and responsible adults, groom and befriend unsuspecting and innocent child victims to perform sexually explicit acts.” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “Today’s complaint is a strong and clear message to predators and criminals that we will not accept tolerate this conduct ways, and will hunt them down to make sure they face justice and respond for their criminal behavior. The Federal Law Enforcement Community and the U.S. Attorney’s Office will spare no resources to arrest and prosecute these predators. Nonetheless, the community, teachers and parents must be vigilant and proactive with our children and educate them on the modus operandi of these offenders”
“Child exploitation, in all its forms, must be among the most heinous crimes a person can commit, but when the element of sextortion is part of this unspeakable exploitation, the aberration is even more nauseating and the emotional pain inflicted on the victim is just overwhelming and hard to endure,” said Angel Melendez, special agent in charge of HSI San Juan. “Make no doubt, HSI will continue utilizing all its resources and, along with our federal, state and local partners, we will continue identifying those who victimize the most vulnerable segment of our society—our children.”
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
Indictments Returned in Hammond Federal CourtRead the Press Release
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on June 5, 2013:
Jeffrey Williams, 29, of Gary, Indiana, was charged with two counts of distribution of heroin and one count of possession with the intent to distribute crack cocaine.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the Lake Station Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Christopher M. Bour, 39, and Natisha Hillard, 24, of both of Gary, Indiana, were each charged in a superseding indictment with two additional counts of production of child pornography.Bour was also charged with one additional count of possession of child pornography.Bour was charged in the initial indictment with one count of purchase of a child and Hillard with one count of sale of a child. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation, the Indiana State Police, the Gary Police Department and the Michigan City Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Indictments Charging Twenty-Three People with Drug TraffickingRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the filing of indictments returned by a federal grand jury in Scranton on May 21 and June 4, 2013, charging a total of 23 persons with offenses related to trafficking in controlled substances, including heroin.
According to United States Attorney Peter J. Smith, the indictments resulted from lengthy investigations by the United States Drug Enforcement Administration, Pennsylvania State Police, Wilkes-Barre City Police Department, and the Hanover Township Police Department into drug trafficking organizations involved in heroin distribution in the City of Wilkes-Barre.
The following individuals were indicted for their alleged roles in drug trafficking conspiracies and related offenses: Corey Arnott, 21, Ashlee, PA; Marvin Fitts, 37, Archbald, PA; Angelo Hardy, 41, Hanover Township, PA; Dawan Ingram, 25, Wilkes-Barre, PA; Lamar Johnson, age unknown, Wilkes-Barre, PA; Michael Scott, 21, Wilkes-Barre, PA; Dwayne Webb, age unknown, Wilkes-Barre, PA; Anthony Wilson, 25, Wilkes-Barre, PA; Anthony Rajohn Wilson, 31, Wilkes-Barre, PA; Derrick Wilson, 36, Edwardsville, PA; Lamont Wilson, 32, Wilkes-Barre, PA; Steven Wilson, 24, Glen Lyon, PA; William Wilson, 54, Edwardsville, PA; Teresa Bradigan, 31, Scranton, PA; Alejandro Delrosario, 28, Butler Township, PA; Christopher Gayton, 31, Wilkes-Barre, PA; Zackarae Lowe, 31, Wilkes-Barre, PA; Justin Murphy, 29, Scranton, PA; Richard Murphy, 30, Maryland; Damon Murray, 35, Wilkes-Barre, PA; Michael Murray, 36, Maryland; William Patterson, 30, Wilkes-Barre, PA; and Ashlee Taylor, 27, Maryland.
“Today, a big step has been taken to make Wilkes-Barre a safer place” said Drug Enforcement Administration (DEA) Special Agent in Charge, David G. Dongilli. The DEA, along with local, state and federal counterparts culminated a six-month long investigation of a violent heroin and cocaine drug trafficking organization operating throughout the region. SAC Dongilli further stated, “The DEA will bring every resource at our disposal to pursue and bring to justice those who, without conscience distribute this poison into our communities”.
Prosecution is assigned to Assistant United States Attorney William S. Houser.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the statutory maximum penalty for the most serious offenses charged against some defendants is life imprisonment and a fine. Some defendants also face mandatory minimum periods of incarceration of ten years. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Indiana County Man Pleads Guilty in Embezzlement SchemeRead the Press Release
PITTSBURGH - A resident of Indiana County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Daniel Pikel, 57, of Home, Pa., pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that between 2009 and 2012, Daniel Pikel conspired with another person to conceal through his business banking account approximately $2.9 million in funds embezzled by former company controller, Cheryl Brooks, and another former company officer, from Falcon Drilling, LLC, a drilling contractor located in Indiana, Pa.
Judge McVerry scheduled sentencing for Aug. 22, 2013. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, the U.S. Internal Revenue Service, Criminal Investigation and the Pennsylvania State Police in Indiana, Pennsylvania, conducted the investigation that led to the prosecution of Daniel Pikel.
Illegal Alien, Nestor Murcia-carpio, Sentenced for Illegal Use of A Social Security Number, Making A False Claim to U.s. Citizenship and Making False Statements on A Passport ApplicationRead the Press Release
NESTOR MURCIA-CARPIO, age 35, a citizen of Honduras, was sentenced today in federal court by U. S. District Judge Helen G. Berrigan to approximately eight months imprisonment, announced U. S. Attorney Dana Boente. In addition to the term of imprisonment, Judge Berrigan ordered that MURCIA be placed on one year of supervised release following his term of imprisonment, during which time the defendant will be under federal supervision and risk an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on March 27, 2013, MURCIA pled guilty to a three-count superseding bill of information admitting that on July 7, 2009, he falsely represented that a Social Security number had been assigned to him by the Commissioner of Social Security with intent to deceive, for the purpose of obtaining a Louisiana Identification Card at a Louisiana Office of Motor Vehicles located in Houma. MURCIA also admitted that he falsely represented himself to be a citizen of the United States on October 14, 2009, when he filed an application for a Louisiana Driver’s License at the Office of Motor Vehicles in Houma when, in fact, he was illegally present in the United States. MURCIA further admitted that he knowingly made false statements in a United States passport application by providing a false name, date of birth, place of birth, and Social Security Number, to secure the issuance of a United States Passport for his own use on or about October 8, 2010.
This case was investigated by Special Agents of Homeland Security Investigations with the assistance of the Louisiana State Police and the United States Department of State, Diplomatic Security Service. The prosecution was handled by Special Assistant United States Attorney Robert Weir.
Houston, Texas Area Men Convicted in $68 Million FraudRead the Press Release
Montgomery, Alabama - George L. Beck, Jr., United States Attorney for the Middle District of Alabama, announced today that:
- Steven P. Mock, age 69, of Houston, Texas, and Frank J. Teers, age 50, of Montgomery, Texas, were convicted on June 4, 2013 of federal conspiracy, wire fraud, and bank fraud charges after a two-week jury trial.
- Paul Hulse, Sr., age 65, of Kingwood, Texas, pled guilty to an information charging interstate transportation of property obtained by fraud.
The recent convictions of Hulse Sr., Mock, and Teers follow the June 5, 2012 guilty plea of Paul Hulse, Jr. to an information charging conspiracy to make a false statement to a bank.
According to court filings, Paul Hulse, Sr. (“Hulse”) was a director of H&H Worldwide Financial Service, Inc., Paul Hulse, Jr. (“Hulse Jr.”) was H&H’s president, Steven P. Mock was an attorney in the Houston area, and Frank J. Teers was a bond broker employed by Tri-Star Financial Services in Houston. Beginning in 2003, Hulse began soliciting various persons and businesses for loans based on the false representation that he controlled a large portfolio of bonds—the amount ranged from tens to hundreds of millions of dollars—that could be used as collateral for the loans. Mock and Teers made false statements to the prospective lenders that supported Hulse’s claim that he owned a substantial bond portfolio. In fact, Hulse did not have a bond portfolio. None of the solicited institutions, which included Western National Bank of Midland, Texas, MetLife, UBS Securities, and Jefferies and Co. agreed to make a loan to Hulse or H&H.
In February 2005, Hulse began soliciting loans from the Federal Land Bank of South Alabama (the “Bank”) in Montgomery, Alabama. During the course of the discussions:
- Hulse falsely represented that he had a large bond portfolio that could serve as collateral for the loans to H&H and submitted documents that concealed Hulse’s plan to use approximately half the loan proceeds to purchase the bonds that were going to serve as collateral for the loans.
- Mock falsely claimed that he was Hulse’s “senior trust officer” and that the “trust agreements” permitted the use of $15 million of trust bonds in connection with the proposed loan.
- Teers falsely represented that he managed a significant bond portfolio for Hulse, provided documents to Hulse that Hulse used to support his claim of ownership, signed documents that represented that bonds were on account at Tri-Star, and failed to disclose to the Bank and to Tri-Star that he had been interviewed by IRS criminal investigators about Hulse’s fraudulent activities.
The Bank made two loans to H&H totaling $68.5 million in August and December 2005. H&H used more than half the money to buy the bonds that were to serve as collateral for the loan. A significant amount of the loan proceeds were used for the personal benefit of Mock, Hulse, and members of the Hulse family. Teers made more than $600,000 in commissions from the buying and selling of bonds on behalf of H&H. By Spring of 2007, the relationship between H&H and the Bank had deteriorated. In an effort to convince the Bank to allow the principal of the bonds to be used to make the quarterly loan payment, on June 28, 2007, Mock, Hulse, and Hulse Jr. sent a letter to the Bank that (a) falsely claimed that H&H was on the “doorstep” of obtaining a loan from Wells Fargo that would allow the Bank to be paid in full, and (b) described how the loan proceeds had been used without disclosing the fact that more than half the loan proceeds had been used to buy the bond collateral.
“Protecting the people who entrust their money in our banks, credit unions and other financial institutions is essential to a healthy economy,” stated U.S. Attorney George L. Beck, Jr.. “My office will continue work diligently to protect the people who entrust their money to these banks and credit unions. Those criminals who commit frauds and attempt to commit frauds on the banks in the State of Alabama will be prosecuted to the fullest extent of the law.”
“The FBI will continue to ensure that those in a fiduciary position who solicit and handle other people’s money exercise their duties based on legal parameters and obligations, not fraudulently with an intent to illegally profit from their illegal schemes and deceit,” stated Stephen Richardson, FBI Special Agent in Charge, Mobile Field Division.
Mock and Teers face a statutory maximum sentence of 30 years imprisonment per count. Hulse Sr. faces a maximum prison sentence of 10 years; Hulse Jr. faces up to five years. Hulse Jr.’s sentencing is set for August 6, 2013. Sentencing for Mock, Teers, and Hulse Sr. has been scheduled for August 21, 2013.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorneys Andrew O. Schiff and Denise O. Simpson. Assistance was also provided by the Internal Revenue Service, Criminal Investigations in Houston, Texas.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Hermitage Couple Charged with Defrauding the IRSRead the Press Release
PITTSBURGH - A Mercer County couple have been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of conspiracy, making or subscribing a false tax return, and aiding and assisting the making or subscribing of a false tax return, United States Attorney David J. Hickton announced today.
The 10-count indictment, returned on June 4, 2013, named Eric Graven and Barbara Graven of Hermitage, Pa., as the defendants.
According to the indictment, Barbara Graven, the President of Custom Stone and Tile, Inc., and her husband, Eric Graven, the Vice President and co-owner of Custom Stone and Tile, Inc., located in Hermitage, Pa., conspired with each other and other persons to defraud the Internal Revenue Service by intentionally failing to report cash earnings of the business in each of the calendar years 2005 through 2008, thereby avoiding the payment of income tax due and owing on such earnings. The indictment further charges Barbara Graven and Eric Graven with preparing and filing, or aiding and assisting in the preparation and filing, false individual and corporate income tax returns for each of the calendar years 2006 through 2008.
The law provides for a maximum total sentence of 23 years in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Men Indicted in 75-Liter Methamphetamine SeizureRead the Press Release
Hid Liquid Meth Inside of Vehicle Gas Tank
ATLANTA - Gabriel Jimenez Antunez, Pablo Saucedo Aparicio, Martin Ascencio, and Javier Munoz Ruiz have been indicted on federal drug and money laundering charges for their roles in the delivery of liquid methamphetamine to a residence in Austell, Ga.
“A seizure of this size reminds us that Atlanta continues to serve as a focal point for the distribution of methamphetamine,” said United States Attorney Sally Quillian Yates. “Law enforcement agents in our community are doing a remarkable job tracking down and seizing drugs before they can be distributed into our communities.”
“Methamphetamine continues to ravage many communities in our nation,” said Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division. “Because of the positive results yielded in this case, other methamphetamine traffickers in the Atlanta metropolitan and surrounding areas are being put on notice that DEA and its law enforcement partners will not tolerate their continued efforts to manufacture and distribute this insidious drug.”
“The attack on money laundering is an essential front in the war on narcotics,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We are proud to have contributed our financial expertise in order to dismantle the drug-trafficking operation that has been targeting the metro Atlanta citizens.”
According to United States Attorney Yates, the charges and other information presented in court: In May 2013, DEA and IRS agents learned that Jimenez, a local distributor for a Mexican drug trafficking cartel, was coordinating the delivery of a shipment of liquid methamphetamine to the metro-Atlanta area and laundering the proceeds of that drug trafficking activity. In the early morning hours of May 12, 2013, agents tracked the delivery of liquid meth, made by Munoz using a Ford F-350 vehicle, to a residence in Austell, Ga.
Agents determined that the liquid methamphetamine was stored inside the truck’s gas tank, and observed Jimenez, assisted by Saucedo, arrive at the location with thermoses, which were to be used to transfer and store the liquid methamphetamine before it was further distributed. Ascencio was in the process of removing the gas tank containing approximately 75 liters of diesel fuel and liquid methamphetamine when agents arrested the defendants and seized the drugs. With assistance from agents at ICE-Homeland Security Investigations, agents executed search warrants at this and related residences, recovering another 10 pounds of crystal methamphetamine and other evidence.
The indictment charges the defendants: Antunez, a.k.a. “Negrito,” 39, of Mexico; Aparicio, 38, of Mexico; Ascencio, 49, of Mableton, Georgia.; and Ruiz, 54, of Fort Worth, Texas, with conspiring to possess with the intent to distribute more than 500 grams of methamphetamine, a charge that carries a sentence ranging potentially from 10 years to life. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the charging documents and evidence presented in court are only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case was investigated by Special Agents of the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.Assistant United States Attorney Laurel Boatright is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Testquest Manager Pleads Guilty to Defrauding Federal Government by Falsely Claiming to Have Provided Tutoring Services That Were Paid for with Federal FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MICHAEL LOGAN, a former manager of TESTQUEST, INC. (“TESTQUEST”), an educational services company that provided tutoring services to public school children as part of a federally funded program, pled guilty in Manhattan federal court for his role in a scheme to defraud the federal government by falsely submitting claims for payment for tutoring services that were never actually provided. LOGAN pled guilty before U.S. District Judge John F. Keenan.
Manhattan U.S. Attorney Preet Bharara said: “The federal government devotes important resources to a program intended to benefit students in need, and not intended to be manipulated by people like Michael Logan for their own benefit. To make matters worse, rather than focusing on the instruction of children, Logan focused on instructing witnesses to lie. With his guilty plea today, he will now face the consequences of his shameful exploitation of this vitally important program.”
According to the Criminal Complaint and Criminal Information filed against LOGAN, and a Civil Complaint that was filed against TESTQUEST and LOGAN earlier this year:
Each year during the time period at issue, 2005 through 2012, the New York City Department of Education (“NYCDOE”) received funds from the federal government to pay for New York City’s Supplemental Educational Services program (“SES”), which included after-school tutoring and other remedial and supplemental academic enrichment services for students attending underperforming public schools. NYCDOE entered into contracts with private entities and organizations to provide SES tutoring to public school students. Students were eligible to receive SES tutoring if they met certain criteria, such as attending a school that had been identified as needing improvement or restructuring for at least two years. Private entities contracted by NYCDOE to provide SES tutoring were required to have each student who attended a class sign a standard attendance form. The tutor was also required to sign the form, attesting to the fact that he or she provided SES tutoring to those students. Further, as a condition of getting paid for providing tutoring, the private entities were required to certify to the NYCDOE that their attendance records were “true and accurate.”
From 2005 through 2012, TESTQUEST contracted with the NYCDOE to provide SES tutoring. It provided individual tutoring to students at their homes and group tutoring at various New York City public schools, including the Monroe Academy of Business and Law/High School of World Cultures (“Monroe”) and the Global Enterprise Academy/Christopher Columbus High School (“Columbus”). TESTQUEST received tens of millions of dollars in federal funding for tutoring during this time period, including more than $2.3 million for purported tutoring at Monroe and Columbus alone.
MICHAEL LOGAN was an employee of TESTQUEST responsible for managing its SES tutoring program at Monroe and later at Columbus. LOGAN also worked as a long-term substitute teacher and computer technician at Monroe and sometimes coached its baseball team. LOGAN instructed TESTQUEST employees to forge student signatures on attendance forms and to have students sign attendance forms for tutoring classes they had not attended. On some occasions, LOGAN caused TESTQUEST employees to fraudulently obtain students’ signatures by collecting them from students assembled in the school cafeteria or participating in afterschool activities such as baseball or basketball practice. For example, LOGAN would direct employees to participate in this fraud by saying, “if you can’t find the students, sign them in,” and “make them sign or you won’t get paid.” Further, when LOGAN learned of the criminal investigation, he coached others to lie. In one recorded conversation, LOGAN encouraged another witness to lie about teaching classes that occurred when he and the witness were actually coaching after-school sports. As a result of LOGAN’s conduct, TESTQUEST employees repeatedly submitted bills to NYCDOE for tutoring that never occurred and for which TESTQUEST was paid substantial sums of money.
LOGAN, 48, of White Plains, New York, pled guilty to one count of conspiracy to defraud the United States and the U.S. Department of Education. He faces a maximum sentence of five years in prison, and is scheduled to be sentenced by Judge Keenan on October 9, 2013. The charges in the Civil Complaint against LOGAN and TESTQUEST remain pending.
Mr. Bharara thanked the U.S. Department of Education’s Office of Inspector General for its extraordinary assistance in this case.
The case is being handled by the Complex Frauds Unit. Assistant U.S. Attorneys Joseph P. Facciponti and Christopher B. Harwood are in charge of the prosecution.
U.S. v. Michael Logan Information
Former Middle Smithfield Township Supervisor Robert Spano Sentenced for Making False Statements in Connection with A Health Care MatterRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Spano, a former Supervisor in Middle Smithfield Township, Monroe County, was sentenced in federal court today by Senior U.S. District Court Judge Richard P. Conaboy to a two-year term of probation with four months to be spent on home confinement with electronic monitoring and must perform 50 hours of community service. Judge Conaboy further ordered that Spano pay $24,488.09 in restitution and a $500 fine.
According to United States Attorney Peter J, Smith, Spano, age 64, while a Supervisor and employee of Middle Smithfield Township, participated in the township’s group health benefit plan administered by Blue Cross of Northeastern Pennsylvania and in the township’s dental care benefits plan administered by United Concordia.
Spano completed health insurance and dental insurance enrollment forms in November 2007 in which he listed his girlfriend, referred to in the indictment as “C.B.,” as his spouse, and as having the last name “Spano,” when in fact her last name was not “Spano,” and she was not his spouse. Spano was still legally married to another person and had filed for divorce from his wife in January 2011.
As a result of Spano’s misrepresentations, Middle Smithfield Township, Blue Cross of Northeastern Pennsylvania, and United Concordia incurred expenses totaling approximately $24,488 for medical and dental services provided to C.B. and for higher health insurance premiums between 2007 and 2010.
Spano was indicted in November 2011 and pleaded guilty in February 2013.
The case was investigated by the Federal Bureau of Investigation and the Northeastern Pennsylvania Insurance Fraud Task Force.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara
Former Immigration Official Sentenced to 38 Months in Prison for Falsely Passing Immigrants on Citizenship TestsRead the Press Release
SAN FRANCISCO – Abdulaziz Abdulahi Khalil was sentenced, yesterday, to 38 months in prison for accepting kickbacks in exchange for falsely passing citizenship applicants on their United States citizenship tests, United States Attorney Melinda Haag announced.
From 2003 through 2008, Khalil was a District Adjudication Officer (DAO) with the United States Citizenship and Immigration Service (USCIS), a Department of Homeland Security agency part of the former Immigration and Naturalization Service. As a DAO, Khalil’s responsibilities included personally administering two citizenship tests to applicants whose citizenship applications were randomly assigned to him. The first test was to determine applicants’ level of competency with the English language. The second test was to determine whether applicants had adequate knowledge of the United States Constitution. Applicants were required to pass both tests to be eligible for United States citizenship.
In pleading guilty, Khalil admitted that from mid-2003 through at least December 2008, he participated in a scheme to recruit applicants for United States citizenship and to take money from these applicants in exchange for assurances that they would pass their required citizenship tests. Khalil admitted that he used his position as a DAO to gain control over certain citizenship applicants’ files in order to carry out, and profit from his scheme.
Khalil pleaded guilty on February 5, 2013, to counts 1-9, 18, and 19 of the Superseding Indictment, which charged him with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371 (Count 1), attempted unlawful procurement of citizenship, in violation of 18 U.S.C. § 1425(a) (Counts 2-9), false certification of citizenship applications, in violation of 18 U.S.C. § 1015(d) (Count 18), and attempted witness tampering, in violation of 18 U.S.C. § 1512(a) (Count 19).
The 38-month sentence was handed down by U.S. District Court Judge Richard Seeborg following Khalil’s guilty pleas. Judge Seeborg also sentenced the defendant to a three-year period of supervised release to follow his prison term. The defendant was ordered to begin serving his prison sentence on August 30, 2013.
Robin Harris is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal assistant Rawaty Yim. The prosecution is the result of a two-year investigation by the USCIS, an agency within the Department of Homeland Security.
Former Greeneville, Tennessee Pharmacist Sentenced to Serve 63 Months in PrisonRead the Press Release
GREENEVILLE, Tenn. – Robert David McNeese, 39, of Greeneville, Tenn., was sentenced on June 4, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 63 months in federal prison. McNeese was convicted for his participation in an oxycodone conspiracy in Greeneville, Tenn., which involved his illegal diversion of approximately 20,000 oxycodone pills.
McNeese, a former supervisory pharmacist and part owner of Corley’s Pharmacy in Greeneville, Tenn., illegally diverted these oxycodone pills from the pharmacy primarily to five other individuals: Chucky Joe Copas, 42, of Johnson City, Tenn., Jimmy Lee Hodges, 39, of Johnson City, Tenn., Terry Lee Scalf, 42, of Johnson City, Tenn., Scottie Wayne Leach, 39, of Watauga, Tenn., and George Eugene Copas, 42 of Johnson City, Tenn. These individuals were all indicted in federal court in the same case and obtained the pills from McNeese for their own consumption and for resale in the Eastern District of Tennessee. Each was previously sentenced by U.S. District Court Judge Greer to 92, 46, 156, 30 and 41 months in prison, respectively.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of McNeese and his co-defendants include the Third Judicial District Drug Task Force, Federal Bureau of Investigation, Greeneville City Police Department and Drug Enforcement Administration Diversion, all of which both provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
United States Attorney William C. Killian stated, “We are pleased with the sentence in this case and believe it reflects the seriousness of the crimes committed.”
Former Engineer for Global Medical Technology Corporation Charged with Stealing Trade Secrets from New Jersey EmployerRead the Press Release
TNEWARK, N.J. – A former engineer for global medical technology company Becton, Dickinson and Company (BD) was arrested this morning by special agents of the FBI at a hotel in Ramsey, N.J., disrupting his alleged plan to relocate to India with trade secrets he stole from the Franklin Lakes, N.J.-based company, U.S. Attorney Paul J. Fishman announced.
Ketankumar Maniar, a/k/a “Ketan Maniar,” 36, an Indian national recently of Mahwah, N.J., is charged by complaint with theft of trade secrets for his own economic benefit. He is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court to face the charge.
According to the criminal complaint unsealed today:
Until his resignation from BD on May 24, 2013, Maniar was a staff engineer at BD’s Franklin Lakes headquarters, where he was a member of a group responsible for manufacturing prefillable syringes and pen injectors. In that capacity, Maniar had access to trade secret information related to BD products, including a self-administered disposable pen injector still under development by BD and not yet released for commercial sale.
While still employed by BD in May of 2013, Maniar downloaded approximately 8,000 files – containing, among other things, highly valuable BD trade secret information related to the pen in development – onto multiple computer storage devices, including external hard drives and thumb drives. Most of Maniar’s download activity occurred during the weeks leading up to his resignation.
Maniar also downloaded BD files from home after he had called in sick to work, and forwarded numerous files containing BD confidential information to one of his personal email accounts. The materials Maniar allegedly downloaded essentially comprise a tool kit for mass producing the pen injector.
On June 3, 2013, FBI agents executed court-issued search warrants of Maniar’s hotel room and seized computers and computer storage devices.
The maximum potential penalty for the theft of trade secrets charge is 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the arrest. He also credited BD for its cooperation in the matter.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Offices Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Ryan Blanch Esq., New York (for initial appearance)
Maniar, Ketankumar Complaint
Former Arkansas State Treasurer Martha Ann Shoffner Indicted on Federal Charges of Extortion and Receipt of BribesRead the Press Release
Little Rock - Christopher R. Thyer,United States Attorney for the Eastern District of Arkansas, and Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, announced today that a federal grand jury indicted former Arkansas State Treasurer Martha Ann Shoffner, age 68, of Newport, on six counts of extortion under color of official right, one count of attempted extortion under color of official right, and seven counts of receipt of a bribe by an agent of a state government receiving federal funds. A forfeiture allegation of $4,020 is also included in the indictment.
The statutory penalty for extortion and attempted extortion under color of official right, in violation of 18 U.S.C. § 1951(a), is not more than 20 years incarceration in the Bureau of Prisons with a possible find of up to $250,000, and not more than 3 years supervised release. The statutory penalty for receipt of a bribe by an agent of a state government receiving federal funds, in violation of 18 U.S.C. § 666(a)(1)(B), is not more than 10 years incarceration in the Bureau of Prisons with a possible find of up to $250,000, and not more than 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
(Superseding Indictment )
Florida Man Sentenced for Fraud SchemeRead the Press Release
BOSTON – A Florida man was sentenced today in connection with a scheme to defraud 200 people out of more than $700,000.
William Totaro, 61, of Pompano Beach, Fla., was sentenced by U.S. District Judge William G. Young to 42 months in prison, followed by three years of supervised release. Totaro was also ordered to pay $700,972 in restitution and to forfeit $462,750. In January 2013, Totaro pleaded guilty to conspiracy and mail fraud.At the plea hearing, Totaro admitted that between June 2010 and December 2010, he conspired with co-defendants Lawrence Amirto and Jamon Caswell to defraud victims in a business opportunity advance fee scheme involving an entity called Premier Service Group, Inc. (PSG). Totaro, Amirto and Caswell falsely claimed that PSG provided credit repair services to consumers. They also advertised in publications throughout the United States the sale of independent businesses whereby affiliates would purchase geographic territories and would receive leads from PSG for potential credit repair clients within those territories. The affiliates were to contact these leads, describe the services that PSG would provide, sign them up as clients of PSG, and earn commissions. PSG never provided any credit repair service. Instead, many of the newly-recruited affiliates were immediately given the opportunity to recruit additional affiliates. The new affiliates were thereby diverted from learning that there was no actual credit repair business, while soliciting still more affiliates. The funds collected from new affiliates were used for making payments to other affiliates, for expenses associated with the scheme, or for the personal expenses of Totaro, Amirto and Caswell. Totaro also admitted to operating similar advanced fee schemes between 2009 and 2011, using the names Snack America and Assisto Coffee.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption and Special Prosecutions Unit.
Federal Jury Convicts Pensacola Man of Pseudoephedrine Chemical ConspiracyRead the Press Release
PENSACOLA, FLORIDA – A federal jury convicted Jared L. Hester, 29, late Tuesday on charges involving a conspiracy to possess and distribute pseudoephedrine, knowing it would be used to manufacture methamphetamine. The guilty verdict was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Hester was involved in the conspiracy to possess and distribute large amounts of pseudoephedrine in order to manufacture methamphetamine from January 1, 2011, until his arrest in April 2013. Pseudoephedrine is a listed chemical used to make methamphetamine in combination with other common household items such as fuel, ammonia, lithium, etc. The jury heard from other members of the conspiracy and was shown pharmacy records displaying dozens of pseudoephedrine purchases by Hester during the conspiracy. Many of these purchases overlapped with his codefendants’ purchases. In all, the conspirators purchased between 350 and 400 boxes of pseudoephedrine, so that it could be manufactured into methamphetamine. All of Hester’s seven codefendants pled guilty to the charges.
Sentencing for the defendant is set for August 14, 2013, at 10:30 a.m. Hester faces up to a maximum of twenty years imprisonment, three years of supervised release, and up to a $250,000 fine on the conspiracy charged in the indictment.
The indictment results from an investigation by agents of the U.S. Drug Enforcement Administration, the Florida Department of Law Enforcement, the Escambia County Sheriff’s Office, and the State Attorney’s Office. Assistant U.S. Attorney David L. Goldberg is prosecuting the case.
Fairmont Resident Indicted on Methamphetamine 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:
TONISHA WOODS, age 34, of Fairmont, West Virginia, was named in a three-count Indictment charging her with the “Distribution of Morphine.” If convicted, WOODS faces up to 20 years imprisonment and a $1,000,000 fine on each count. This case will be prosecuted by Assistant United States Attorney Zelda E. Wesley and was investigated by the Three Rivers Task Force, consisting of officers from the Fairmont Police Department and the Fairmont State University Police Department.
All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Eugene Man Sentenced to 196 Months in Prison for Bank RobberyRead the Press Release
EUGENE, Ore. – Jeremie Wesley Skordahl, 33, of Eugene, Oregon, was sentenced today by Chief District Court Judge Ann Aiken to 196 months in prison for bank robbery. Upon his release from prison, Skordahl will be on supervised release for three years.
On November 12, 2012, Skordahl entered the Coburg Road branch of U.S. Bank in Eugene and handed the teller a note, which demanded money. He stated he was armed and would not hesitate shooting as many people as possible. Skordahl obtained $2,630 and fled the bank. Later the same day, Skordahl was located in a nearby residential area after a resident reported seeing Skordahl running through neighboring backyards. Skordahl was arrested and the money he stole was found on his person.
Skordahl's criminal history qualified him as a career offender under the Federal Sentencing Guidelines, resulting in an increased sentence. Additionally, as part of his plea agreement, Skordahl agreed to serve a longer federal sentence in order to receive a concurrent sentence in a Lane County Circuit Court assault case.
This case was investigated by the Federal Bureau of Investigation and the Eugene Police Department and was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Essex County, N.J., Man Sentenced to Five Months in Prison for Transporting Explosive MaterialsRead the Press Release
TRENTON, N.J. – An Essex County, N.J., man was sentenced today to five months in prison for transporting explosive chemicals in a piece of polyvinyl chloride, or PVC, pipe to Pennsylvania without a federal license or permit, U. S. Attorney Paul J. Fishman announced.
Anthony Nicholas Gallo, 20, of North Caldwell, N.J., previously pleaded guilty before U.S. District Judge Anne E. Thompson to an Information charging him with transportation of explosive materials without a license or permit issued by the U.S. Attorney General. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Jan. 8, 2012, Gallo went to Pennsylvania and blew up potassium chlorate and magnesium in a PVC pipe, which provided a contained environment for the chemicals to produce a more powerful explosion. The potassium chlorate mixture is considered to be an explosive by the U. S. Bureau of Alcohol, Tobacco and Firearms.
In addition to the prison term, Judge Thompson sentenced Gallo to three years of supervised release.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the FBI Joint Terrorism Task Force, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s sentence. The FBI Joint Terrorism Task Force comprises law enforcement officers from 30 federal, state and local agencies throughout New Jersey. He also thanked the North Caldwell Police Department and the Essex County Prosecutor's Office for their significant contributions to this investigation.The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit in Newark.
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Defense counsel: Anthony Iacullo Esq., Nutley, N.J.Drug Trafficker Sentenced in Operation “No Quarter”Read the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced SHAWN CHRISTOPHER ELLIOTT, of Windsor, North Carolina to 70 months of imprisonment followed by 5 years of supervised release. Judge Boyle also sentenced ELLIOTT to 37 months of imprisonment concurrent to the 70 month sentence for violating terms of ELLIOTT’S supervised release related to his previous federal drug conviction. ELLIOTT pled guilty to conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine and a quantity of marijuana on August 20, 2012.
ELLIOTT was arrested in Greenville, North Carolina, on June 20, 2011, after being found in possession of $107,378 that ELLIOTT brought in order to purchase one kilogram of cocaine and one-hundred pounds of marijuana from an undercover officer. A search of ELLIOTT’S residence in Windsor, North Carolina, led to the seizure of 135 grams of cocaine, digital scales and a vacuum sealer.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. In addition, $2.2 million in U.S. Currency, 127 kilograms of cocaine with a street value of $3.8 million dollars, 41 pounds of crystal methamphetamine with a street value of $650,000, 160 pounds of marijuana with a street value of $170,000, 32 grams of heroin, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Craven, Carteret and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Denver Man Charged with Receipt of Child Pornography for Ordering Illegal Images Sent via United States MailRead the Press Release
DENVER – Clifford Eric Perian, age 53, of Denver, Colorado, was arrested last week based on a Criminal Complaint charging one count of receipt of child pornography, the United States Attorney’s Office and the U.S. Postal Inspection Service announced. Late last week U.S. Magistrate Judge Boyd N. Boland determined Perian was a danger to the community, and therefore ordered him held without bond pending a resolution of his criminal case. The following facts are alleged in an affidavit filed in support of a Criminal Complaint – the facts of which will have to be proven beyond a reasonable doubt by the government. Further, the facts contained in the Complaint are allegations, and the defendant is presumed innocent until proven guilty. Anyone charged with a felony by Criminal Complaint has a Constitutional right to be indicted by a federal grand jury.
Based on a law enforcement tip, the United States Postal Inspection Service (USPIS) began an investigation into Clifford Eric Perian, and determined that he had on multiple occasions purchased several child pornography films.
With the help of the National Center for Missing and Exploited Children, the United States Postal Inspection Service investigated numerous CyberTipLine reports relating to emails and online postings by an individual using three different email addresses going back as far as November 11, 2007. The NCMEC and the USPIS were able to establish that evidence existed indicating that all three accounts were used by Clifford Perian. In the postings, Perian was soliciting parents of minor boys or looking for minor volunteers to be subjected to various acts of sexual torture and/or abuse.
On May 23, 2013, Postal Inspectors executed a search warrant at the residence of Perian in Denver. Inspectors found the bondage and sexual paraphernalia Perian boasted about online. They also found DVD’s containing child pornography or child erotica. Computers were also seized. Following the execution of the search warrant, Postal Inspectors contacted Perian. Investigators then determined that Perian ordered videos online, and then received them in the U.S. Mail. It was also determined that Perian received images of young males under the age of 18 engaged in sexual activity with male adults through internet chat rooms and via email. There were also allegations that Perian sexually touched and was sexually touched by at least three boys ages 16 to 17 in approximately 2004 through 2006. Law enforcement also determined that Perian had been to local water parks taking non-explicit pictures of young boys he did not know under the age of 18.
“While most child pornography is now distributed and received via the internet, there are still companies that mail these horrible images exploiting children through the U.S. Mail,” said U.S. Attorney John Walsh.
“The arrest of this defendant is critical because Postal Inspectors and Assistant U.S. Attorneys were able to identify someone who was using the U.S. Mail to sexually exploit children. The defendant in this case received the images in the mail, which is a crime.”
“Protecting children from these egregious crimes is a top priority for the U.S. Postal Inspection Service,” said Craig Goldberg, Acting Inspector in Charge of the U.S. Postal Inspection Service in Denver. “We continue to aggressively investigate, apprehend and assist in the prosecution of individuals who seek to exploit children via the U.S. Mail.”
Perian faces not less than 5 years and up to 20 years in federal prison for receipt of child pornography. He also faces up to a $250,000 fine, as well as possible restitution and forfeiture.
This case is being investigated by the U.S. Postal Inspection Service.
Perian is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Defendant Sentenced for Running A Work-From-Home ScamRead the Press Release
ATLANTA - Detrick Mattox, who operated numerous fraudulent work-from-home businesses has been sentenced to over two years in prison for conspiring to commit mail fraud.
“This scheme was designed for one simple purpose - to swindle people out of their hard-earned money through lies and deceit,” said United States Attorney Sally Quillian Yates. “Mattox preyed on folks just trying to earn a living. Now he’s going to prison.”
The U.S. Postal Inspection Service has no shortage of work-at-home schemes to investigate. This is just another example of the defendant’s greed preying on the public’s need to earn an honest living. Consumers should be suspicious of any offer that does not pay a regular salary because if it sounds too good to be true, it probably is,” said Keith Morris, Postal Inspector in Charge for the Atlanta Division.
According to United States Attorney Yates, the charges and other information presented in court: Mattox ran numerous businesses that purported to offer its members work-from-home opportunities, including: Atlanta’s Mailing Company; Atlantis Mailing Company; Brown Staffing Services; Central Mailing Company; Detrick Mattox Enterprises; Georgia Assembly Company; Global Assembly Company; Global Mailing Enterprises; Jobs R US; National Assembly Company; Nationwide Express Mailing; Pacific Mailing Company; Premiere Mailing Company, and Regional Assembly Company.
Mattox promoted his work-from-home businesses by claiming that members who applied for the program and then paid an initiation fee would be able to work from their homes and earn up to $5,000 per week. The members were supposed to assemble materials into booklets and mail the booklets to the addresses provided by Mattox. He also claimed that members could earn up to $20 for each booklet that they assembled and mailed. To join the program, prospective members had to pay Mattox an up-front initiation fee of approximately $50 to $500. He typically instructed prospective members to pay the initiation fee by mailing a money order to one of the named businesses.
Once the initiation fee was paid, the majority of the members never received any materials to assemble for their work-from-home businesses. The few members who did receive materials from Mattox, and assembled and then mailed those materials, were never paid for their services. After Mattox received a member’s initiation fee, virtually all attempts by the member to contact the work-from-home businesses were ignored. Finally, to avoid consumer complaints and negative public information, Mattox frequently changed the names, websites, and contact information of the work-from-home businesses.
According to an affidavit submitted in support of a search warrant obtained in the case, more than 200 people responded to advertisements by Mattox and became members. Thereafter, a Postal Inspector conducted an undercover investigation, responding to Internet advertisements posted by Mattox, but never received the promised materials after sending payment.
Mattox, 33, of Ellenwood, Ga., was sentenced to 2 years 9 months of in prison to be followed by 3 years of supervised release. He was convicted of the charges on March 18, 2013, upon his plea of guilty.
This case was investigated by Inspectors of the United States Postal Inspection Service.
Assistant United States Attorney Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Defendant Pleads Guilty to Smuggling and Transporting Illegal Aliens, and Failure to Appear in Federal CourtRead the Press Release
[Plattsburgh, New York]—United States Attorney Richard S. Hartunian and Homeland Security Investigations Special Agent in Charge James Spero announce that NATHAN SAMSON MARTIN, age 31, Akwesasne, New York, pled guilty on June 4, 2013 to conspiring to bring and bringing illegal aliens into the United States and transporting them within the United States, and failure to appear at federal court proceedings after his pretrial release. United States District Court Judge Glenn T. Suddaby, Syracuse, New York, accepted his guilty pleas.
MARTIN was one of three people indicted in April 2010 for conspiring to smuggle aliens from Canada into the United States for commercial gain in 2009 and 2010. He is the second defendant of the three defendants charged to plead guilty to his role in the conspiracy. Another defendant, Carl THOMPSON, previously pled guilty and was sentenced to three years of imprisonment. A third defendant, Dennis JOCKO of Cornwall Island, Ontario, remains a fugitive after absconding from pre-trial supervision upon release by United States Magistrate Judge Kudrle.
Public court documents show that on February 8, 2010, Akwesasne Mohawk Police Service officers in Canada alerted Saint Regis Mohawk Tribal Police Department officers and U.S. Border Patrol agents to a vehicle that crossed the “ice bridge” from Cornwall Island, Ontario, to St. Regis Village, Quebec, and proceeded into Franklin County, New York. After law enforcement officers in New York observed the vehicle drop off a person in Hogansburg, they attempted to stop the vehicle for an immigration inspection. The driver, later identified as MARTIN, attempted to flee but was apprehended. The person that MARTIN dropped off was an illegal alien who had just been commercially smuggled into the United States from Canada through the Saint Regis Mohawk Reservation. MARTIN received part of the smuggling fee, according to the smuggled alien. A U.S. Magistrate Judge released MARTIN on February 9, 2010, subject to supervision by the U.S. Probation Office. However, MARTIN failed to appear for a hearing as ordered by U.S. District Judge Suddaby on January 4, 2011, and an arrest warrant was issued. On January 7, 2013, the defendant was found and arrested in the United States on the federal warrant by the Saint Regis Mohawk Tribal Police.
MARTIN pled guilty to all charges without a plea agreement. He faces a statutory maximum of ten years and a minimum of three years of imprisonment on the charge of bringing, or aiding and abetting the bringing, of illegal aliens to the United States. The charge of failure to appear has a statutory maximum of five years of imprisonment, as do the other two counts of conspiracy and transporting aliens, but federal law requires that the court run any sentence for failure to appear consecutive to any other sentence. The Court set the case for sentencing on October 10, 2013 and ordered MARTIN to remain in jail pending sentencing.
The case was investigated by Homeland Security Investigations (HSI), Massena, New York, with assistance from the United States Border Patrol, Saint Lawrence County Sheriff’s Department, Saint Regis Mohawk Tribal Police Department, Akwesasne Mohawk Police Service, Royal Canadian Mounted Police, Ontario Provincial Police, Canadian Border Services Agency, and Surete Du Quebec. The case is being prosecuted by the United States Attorney’s Office for the Northern District of New York.
Any questions may be directed to Executive Assistant U.S. Attorney John G. Duncan in Syracuse, New York at (315) 448-0672 or Assistant U.S. Attorney Elizabeth Horsman in Plattsburgh, New York at 518-314-7800.
Cutler Bay Man Sentenced in $12 Million Identity Theft Tax Refund Fraud Scheme Involving the Cashing of Thousands of Fraudulently Obtained U.S. Treasury ChecksRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula A. Reid, Special Agent in Charge, United States Secret Service (USSS), Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the sentencing of defendant Jesus Calvo, 30 of Cutler Bay, for his role in an identity theft tax refund fraud scheme, to 58 months in prison, to be followed by 3 years of supervised release. U.S. District Judge Jose Martinez also ordered the defendant to pay $9.2 million in restitution to the Internal Revenue Service.
According to the factual proffer, the defendant operated a check cashing store called J&S Taxes in Perrine, Florida. Beginning in or around February 2012, and continuing through in or around June 2012, the defendant cashed thousands of fraudulently obtained United States Department of Treasury income tax refund checks (totaling approximately $12MM) that were brought by co-conspirators. The defendant knew that the checks had been obtained by fraud and without authorization of the true taxpayer.
According to the factual proffer, the defendant received more than the standard fee for cashing the checks because the tax-refund checks had been obtained by fraud. The standard fee for cashing these checks would have been from two to five percent. However, the defendant took much more than that fee and used this money for his own personal expenditures – he purchased two houses, he funded his retirement account, he invested in a “start-up company,” he purchased an investment property, and he purchased cars and other items.
According to the plea agreement and statements made in court, the defendant agreed to forfeit two houses, five cars, three bank accounts, high-end watches, jewelry and cash. These assets had an estimated value of approximately $2 million.
Mr. Ferrer thanked IRS-CI, USSS, USPIS, and FBI for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger, Evelyn Sheehan and Elijah Levitt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Convicted Felon Pleads Guilty to Unlawfully Possessing Three FirearmsRead the Press Release
POCATELLO – Bruce Leighton Diehl, 43, of Idaho Falls, Idaho, pleaded guilty yesterday in United States District Court in Pocatello to unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced.
According to court records, Idaho State probation officers visited Diehl at his residence in Idaho Falls on April 4, 2012, after Diehl failed to attend court-ordered treatment. Diehl was on probation after being convicted in 2011 in Clark County, Idaho, of felony eluding a police officer and felony malicious injury to property. While clearing the residence of other individuals and weapons, the probation officers located a rifle, a 12 gauge shotgun, a pistol, and several rounds of ammunition. Diehl told police that the firearms had been in the garage with his other belongings when he got out of prison, that a friend had moved his belongings from the garage into the house for him, and that he had forgotten that the guns were in the property from the garage.
In addition to the 2011 felony eluding and malicious injury to property convictions, Diehl was also convicted in 1998 of possession of a controlled substance in Bonneville County, Idaho. As a result of these convictions, Diehl is prohibited from possessing firearms.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years supervised release.
Sentencing is set for September 3, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Idaho Department of Corrections, Bureau of Probation and Parole.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Contractor Pleads Guilty to Fraud, Filing False Tax ReturnsRead the Press Release
PITTSBURGH, Pa. - A construction company executive pleaded guilty in federal court to an Information charging him with mail fraud and filing false tax returns, United States Attorney David J. Hickton announced today.
Robert E. Crawford, 54, of Pittsburgh, Pa., pleaded guilty to two counts before United States District Judge David S. Cercone.
The Information filed by the United States Attorney alleged that Crawford was the President and Chief Executive Officer of R.E. Crawford Construction, Inc., located in Springdale, Pa. The information also alleged that R.E. Crawford Construction, Inc. entered into two contracts with Simon Property Group, Inc., one in or around September of 2006 for the construction and redevelopment work on the Northgate Mall in Seattle, Washington, and one in or around November of 2007 for the construction and redevelopment work on the Laguna Hills Mall in Laguna Hills, California. According to the Information, Crawford fraudulently overstated the costs incurred on these contracts, causing Simon Property Group to over-pay Crawford's company for the work done on both of those projects. In addition, the Information states that Crawford paid approximately $766,000 to a vice president employed by Simon Property Group, who in turn used his authority and influence at Simon Property Group to select Crawford's company to be the general contractor for those jobs.
Crawford also pled guilty to charges of assisting in the preparation of false tax returns, and with filing false tax returns for the years 2006, 2007 and 2008.
Judge Cercone scheduled sentencing for Dec. 13, 2013, at 10 a.m. The law provides for a total sentence of 23 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Internal Revenue Service and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Crawford.
Colorado Springs Felon Sentenced for Possession of DynamiteRead the Press Release
DENVER – Arthur Ray Hickman, age 45, of Colorado Springs, Colorado, was sentenced last week by U.S. District Court Judge William J. Martinez to serve 24 months in prison for being a felon in possession of explosives, United States Attorney John Walsh, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Andrew Traver announced. After serving his sentence, Judge Martinez ordered Hickman to spend 3 years on supervised release. Hickman, who appeared at the hearing in custody, was remanded.
Hickman was indicted by a federal grand jury in Denver on July 11, 2012. He pled guilty to on February 11, 2013. He was sentenced on May 29, 2013.
According to court records, including the stipulated facts contained in the plea agreement, on February 17, 2012, an officer with the Colorado Springs Police Department (CSPD) responded to money advancing business on North Academy Blvd., in Colorado Springs, Colorado, to investigate a fraud allegation. The officer interviewed a vault teller at the business, who reported the a person, who turned out to be Hickman, had tried to cash what she believed to be a fraudulent check.
Colorado Springs police officers conducted an investigation into the fraud allegation, with Hickman as a suspect. A CSPD detective took over the investigation since he was familiar with Hickman and his activities, mostly focused on identity theft and forgeries. The detective noted that Hickman was previously identified as possibly conducting illegal activity involving the use of computers for producing fake identifications. He was also suspected of stealing a machine that makes ID cards from a Denver Department of Motor Vehicle office, a micro SD card containing templates for all 50 states’ drivers licenses, and a VIN plate maker.
On April 12, 2012, officers executed a search warrant at Hickman’s home. During the subsequent search, detectives found in Hickman’s bedroom a box containing three sticks of dynamite. Hickman, a prior felon, knowingly illegally possessed the dynamite. Hickman had done research to determine how safe it was to store dynamite in his bedroom. The dynamite that Hickman possessed is an explosive under federal law.
Prior to Hickman’s possession of the dynamite he had been convicted of: receiving/known stolen property (San Diego County, CA); felon/addict/possess firearm (Minnehaha County, SD); possession of controlled substance (El Paso County, CO); forgery-government issued document (El Paso County, CO); ID theft-possess with intent to use, conspiracy (El Paso County, CO); ID theft-possess with intent to use (El Paso County, CO).
“Thanks to the outstanding work of the Colorado Springs Police Department and the ATF, an individual who was a felon in possession of dynamite and involved in identity theft has been sent to prison for his crimes,” said U.S. Attorney John Walsh.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Colorado Springs Police Department.
Hickman was prosecuted by Assistant U.S. Attorney Jeremy Sibert.
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Cleveland Trio Charged for Armed RobberyRead the Press Release
Three people from Cleveland were named in a seven-count indictment for their roles in an armed robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Eric Gooch, age 22, Larnell A. Tripp, Jr., age 24, and Ashley N. White, were charged conspiracy to commit interference with commerce by robbery and possession of a firearm during a crime of violence. Gooch was also charged with two separate counts of armed bank robbery and possessing a firearm during the bank robberies.
Specifically, the indictment alleges that from December 2012 to January 21, 2013, Eric Gooch, Larnell Tripp, Jr., and Ashley White conspired to rob Roses Discount Store in Cleveland, Ohio. The indictment further alleges that on January 21, 2013, they entered and robbed the Roses Discount Store, and during the robbery, a firearm was brandished. The indictment further alleges that on February 22, 2013, Eric Gooch robbed the PNC Bank located at 16614 Harvard Avenue, Cleveland, Ohio, and on March 13, 2013 Gooch robbed the PNC Bank located at 2771 South Moreland Boulevard, Cleveland, Ohio. The indictment further alleges that a firearm was brandished during each bank robbery.
The indictment resulted from an investigation conducted by the City of Cleveland, Division of Police, and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorneys Michelle M. Baeppler and M. Kendra Klump.
If convicted, each defendant’s sentence will be determined by the court after review of factors unique to each case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
Civilian Indicted for Sexual Assault at NAS PensacolaRead the Press Release
PENSACOLA, FLORIDA – Edwin C. Mitchell, 49, of Ellenwood, Georgia, appeared in federal court today on charges of aggravated sexual abuse, sexual abuse, and abusive sexual conduct, according to Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The three-count indictment charges Mitchell with causing the victim to engage in sexual acts and sexual conduct by using force, by placing her in fear, and by doing so against her will on or about December 15, 2012. If convicted of the aggravated sexual abuse charge, Mitchell faces a possible maximum term of life imprisonment. Mitchell is scheduled for trial on July 8, 2013, before Chief U.S. District Court Judge M. Casey Rodgers.
The charges result from an investigation by the Naval Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorneys Alicia Kim and Randy Hensel.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.
Chicago Man Sentenced to 78 Months in Prison for Running Investment Fraud SchemeRead the Press Release
SAN FRANCISCO - Michael Steven Banuelos (aka Ferrari Mike, aka Mike Banuelos) was sentenced yesterday to 6 ½ years in federal prison for running a three-year investment fraud scheme through which he fraudulently obtained approximately $2.6 million, announced United States Attorney Haag.
As part of his fraudulent scheme, Banuelos falsely claimed to be a successful promoter in the music industry with ties to various well-known recording stars. In furtherance of his fraud, Banuelos lied to the business manager of a musical group, claiming that he, Banuelos, had arranged a concert tour during which the aforementioned musical group would be the opening act for one of the well-known stars with whom he had ties. Banuelos also lied to this business manager and other investors, claiming that he had negotiated a multimillion contract with a major recording label for the rights to the music group. Banuelos also used false statements and phony documents to lure in additional investors in this purported music deal and non-existent deals regarding other musical artists. Several of the investors in these purported deals lived in the Bay Area.
Of the approximately $2.6 million dollars he obtained through this scheme, Banuelos spent the overwhelming majority of it on personal expenses. Those expenses included payments to one of his ex-wives, scores of thousands of dollars on car payments, and thousands of dollars paid for a country club membership and dues.
As his music deal scam was coming to a close, Banuelos defrauded additional individuals out of another $200,000. Banuelos falsely claimed to these victims that he was a successful money manager whom one client had entrusted with $45 million for investment. Banuelos provided false documentation of these claims, too, resulting in the victims providing more money to Banuelos in the mistaken belief it would be invested on their behalf.
Banuelos, 42, was indicted by a federal grand jury on July 12, 2012. He was charged with twelve counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of money laundering, in violation of Title 18, United States Code, Section 1957. He was arrested on July 26, 2012, in Chicago, where he had lived for the preceding few months. Prior to moving to Chicago, he had lived in and around Atlanta, Georgia. He has remained in federal custody since his arrest.
On February 26, 2013, Banuelos pleaded guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343.
Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.
Charlotte Man Sentenced to 15 Years in Prison for Firearms OffenseRead the Press Release
CHARLOTTE, N.C. – A Charlotte man has been sentenced to 15 years in prison for a firearms related offense announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. On Monday, June 3, 2013, Chief U.S. District Judge Frank D. Whitney sentenced Harvey Lee Mungro, Jr., 46, of Charlotte to serve 180 months in prison, followed by two years of supervised release. Mungro’s Mungro’s at least three prior felony convictions prohibit him from carrying a weapon and he was therefore sentenced by the Court as an armed career criminal.
U.S. Attorney Tompkins is joined in making today’s announcement by 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).
In November 2011, a criminal bill of indictment charged Mungro with one count of possession of a firearm by a convicted felon. According to filed court documents and statements made in court, on August 9, 2011 Mungro possessed a Hi-Point, 9mm semiautomatic pistol and 18 rounds of ammunition in the car he was driving. Court records indicate that law enforcement officers recovered the firearm and ammunition when they conducted a traffic stop of Mungro’s vehicle. Mungro pleaded guilty to the charge in August 2012.
In announcing the sentence, Judge Whitney noted that it was the defendant’s criminal history that resulted in the elevated sentence and observed that the sentence would have a general deterrent effect.
Mungro has been in custody since August 2011. He will be transferred to the custody of the Federal Bureau of Prisons upon the designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the ATF and CMPD. The case was prosecuted by Assistant United States Attorney Robert J. Gleason of the U.S. Attorney’s Office in Charlotte.