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4 June 2013
Two Pine Ridge Men Indicted for Assaulting Two Men with A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that two Pine Ridge, South Dakota men have been indicted by a federal grand jury for allegedly using a firearm to attempt to murder two other men at Pine Ridge on March 20, 2013.
Irving Provost, Jr., age 35, and Lester Waters, age 32, were indicted by a federal grand jury on May 21, 2013 for assault with intent to commit murder, assault with a dangerous weapon, and assault resulting in serious bodily injury.
Provost and Waters appeared before U.S. Magistrate Judge Veronica L. Duffy on May 29, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is 20 years of imprisonment and a $250,000 fine. The charges are merely an accusation and Provost and Waters are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Provost and Waters were remanded to the custody of the U.S. Marshal. A trial date has been set for August 6, 2013.
Two Attorneys Among Four Defendants Indicted in Two Separate Mortgage Fraud Schemes Involving South Side PropertiesRead the Press Release
CHICAGO — Two attorneys are among four defendants who have been indicted in two separate mortgage fraud cases, federal law enforcement officials announced today. In one case, an attorney, a real estate investor, and a loan originator were charged with allegedly participating in a scheme to fraudulently obtain at least five residential mortgage loans totaling approximately $1.5 million from various lenders. In the second case, an attorney was charged with allegedly participating in a scheme to fraudulently obtain at least 12 residential mortgage loans totaling nearly $3.75 million from various lenders.
Both indictments allege that the mortgages were obtained to finance the purchase of properties on Chicago’s south side, stretching from the Back of the Yards to Englewood and West Englewood neighborhoods, at inflated prices by buyers who were fraudulently qualified for loans, or were being paid, while the defendants allegedly profited. As a result, various lenders and their successors incurred losses because the mortgages were not fully recovered through subsequent sale or foreclosure.
Three defendants were charged together in a five-count indictment that was unsealed on Friday following the arrest of STEVEN BARTLETT, 42, of Chicago, a part owner of SSB Re, Inc., also known as SSB Real Estate Solutions, Inc., through which Bartlett bought and sold residential properties in Chicago. Bartlett, ROBERT LATTAS, 36, of Oak Brook, an attorney who represented SSB Re in real estate closings, and NICHOLAS BURGE, 34, of Bloomington, Ill., a loan originator for two different lenders, were each charged with one count of mail fraud and four counts of wire fraud. The indictment seeks forfeiture of $1,494,248.
Bartlett remains in custody pending a detention hearing at 10 a.m. tomorrow before U.S. Magistrate Judge Sheila Finnegan. Lattas and Burge were ordered to appear voluntarily for arraignment at 11:30 a.m. Thursday before Magistrate Judge Finnegan in U.S. District Court.
Between January 2008 and January 2009, Bartlett allegedly used SSB Re to sell properties at inflated sales prices to buyers that he knew were fraudulently qualified for mortgage loans. Bartlett and Burge prepared and submitted loan applications to lenders that they knew contained false information about buyers’ qualifications, including information about buyers’ income, assets, liabilities, employment, source of down payment, and intention to occupy properties as a primary residence, the indictment alleges.
Bartlett and Lattas allegedly prepared and submitted to lenders HUD-1 settlement statements that they knew contained false information, including the true source of the buyers’ down payments. Lattas allegedly represented, or had his associates represent, SSB Re at closings in which properties were sold to buyers, knowing that Bartlett had recruited individuals to provide funds that were falsely represented to lenders as the buyers’ down payments. Lattas knew individuals other than the buyers were providing cashier’s checks representing the buyers’ down payments and falsely listed them as the remitters, the charges allege.
The charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Barry McLaughlin, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development Office of Inspector General in Chicago; and Pete Zegarac, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Federal Housing Finance Agency Office of Inspector General assisted in the investigation. The government is being represented by Assistant U.S. Attorney Jason Yonan.
In a separate, unrelated case, ANTHONY CAMPANALE, 58, of Oak Park, an attorney who represented SNAP Holdings, LLC and affiliated entities at real estate closings, was charged with three counts of mail fraud and five counts of wire fraud in an eight-count indictment returned on May 16. Campanale pleaded not guilty on May 24 at his arraignment in Federal Court. The indictment seeks forfeiture of $3,733,250.
According to the indictment, between October 2007 and November 2008, Campanale knew that he was representing SNAP Holdings and its affiliates at closings for properties that were being sold at inflated sales prices to buyers whom he knew were being paid by his clients to purchase the properties. Campanale allegedly caused sales contracts to be submitted to lenders that he knew contained false information, including inflated sales prices, and he submitted to lenders HUD-1 settlement statements that he knew contained false information about the true source of the buyers’ down payments and about payments provided to the buyers for purchasing the properties.
The charges result from the same investigation that led to the July 2012 indictment of seven defendants for allegedly participating in a scheme to fraudulently obtain more than 20 residential mortgages totaling approximately $8.5 million from various lenders. Three of those defendants, including Thomas Hyland, 40, of Glen Ellyn, who co-owned SNAP Holdings, have pleaded guilty while charges remain pending against the other four defendants.
Mr. Shapiro announced the Campanale charges with Cory B. Nelson, Special Agent-in- Charge of the Chicago Office of the Federal Bureau of Investigation; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General; and Pete Zegarac, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government is being represented by Assistant U.S. Attorneys Jason Yonan and Ryan Hedges.
Each count of wire fraud and mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the Court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. The Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Since 2008, several hundred defendants have been charged in Federal Court in Chicago and Rockford with engaging in various mortgage fraud schemes involving more than 1,000 properties and more than $300 million in potential losses, signifying the high priority that federal law enforcement officials give mortgage fraud in an effort to deter others from engaging in crimes relating to residential and commercial real estate.
Today’s announcement is part of efforts underway by the Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 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 facilitated increased investigation and prosecution of financial crimes; enhanced coordination and cooperation among federal, state and local authorities; addressed discrimination in the lending and financial markets, and conducted outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit stopfraud.gov.
Bartlett Indictment
Campanale IndictmentTwenty Two Indicted in Multi-State Prescription Drug RingRead the Press Release
Memphis, TN – Twenty two individuals were charged today in a two-count federal indictment for their alleged roles in an illegal prescription drug distribution ring, announced U.S. Attorney Edward L. Stanton III and Resident Agent-in-Charge of the Drug Enforcement Administration’s Memphis office Brian K. Chambers.
# # # #
The following individuals were charged with one count of conspiracy to possess and distribute oxycodone, a Schedule II narcotic, and one count of conspiracy to possess and distribute hydrocodone mixtures such as “Lortab” and “Lorcet,” a Schedule III controlled substance: Bradford Kelley, 30, Walls, MS
Byron Kelley, a/k/a “Big B,” 32, Olive Branch, MS
Bryan Kelley, a/k/a “Little B,” 33, Memphis
Beverly Powell, 52, Memphis
Jason Hopkins, a/k/a “J,” 33, Memphis
Bryant Hopkins, 31, Memphis
The following individuals were charged with one count of conspiracy to possess and distribute hydrocodone mixtures such as “Lortab” and “Lorcet,” a Schedule III controlled substance: Tiffany Jones, a/k/a “TT,” 27, Walls, MS
Gerron Powell, a/k/a “Snap,” 31, Memphis
Joseph Hardrick, 30, Memphis
Jeremy Bowden, a/k/a “Bubba,” 25, Memphis
Randy Moss, 37, Memphis
Mario Reed, a/k/a “Yo,” 29, Memphis
Jerome Bell, a/k/a “Jerome Price,” 36, Memphis
Hollie Hicks, 23, Wynne, AR
Felicia Bryant, 35, address unknown
Chernette Wiggins, 24, Memphis
Paige Hunara, 22, Wynne, AR
Kanneccia Lewis, a/k/a “Klyanna Lewis,” 23, Memphis
Shaniece Young, 24, Memphis
Shana Scott, a/k/a “Re-Re,” 33, Memphis
Shakena Standard, 28, Memphis
Shirley Ewing, 48, Memphis
This case was investigated by the Drug Enforcement Administration Task Force and the Memphis Police Department. Assistant U.S. Attorney Daniel French is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Trucking Company Owner Indicted for Failing to Pay FICA TaxesRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, the owner of Dahl Trucking in Elmore, Minnesota, was indicted for avoiding payment of Federal Insurance Contribution Act (“FICA”) taxes on the wages of his employees from 2007 through 2010. Marlin Dahl was specifically charged with 13 counts of failure to collect and pay over FICA taxes.
The indictment alleges that from January 1, 2007, through March 31, 2010, Dahl executed a scheme to avoid paying FICA taxes to the Internal Revenue Service (“IRS”). As the owner of Dahl Trucking, Dahl had a duty to collect, account for, and pay over certain federal employment taxes, including both the employees’ and employer’s share of FICA taxes. Instead, he allegedly issued payroll checks that did not have any FICA withholdings deducted. Dahl also reportedly caused wages to be recorded in the company books at Dahl Trucking, also known as Elmore Truck and Trailer, as “road expense” reimbursements. In total, Dahl failed to pay to the IRS an estimated $168,219 in employees’ share of FICA tax.
If convicted, Dahl faces a potential maximum penalty of five years in prison on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by IRS-Criminal Investigation, the Minnesota Department of Employment and Economic Development, and the Minnesota Financial Crimes Task Force. It is being prosecuted by Assistant United States Attorney Jeffrey S. Paulsen.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial. Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.Texas Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Houston, Texas man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Jeremy M. Willms, age 32, was indicted by a federal grand jury on October 6, 2011 for failing to pay over $13,734.00 in past due child support. He appeared before U.S. Magistrate Judge John E. Simko on May 30, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee to the Federal Crime Victims Fund; and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Willms is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Willms was released on bond pending trial. A trial date has not been set.
Tax Preparers Indicted and Arrested on Fraud ChargesRead the Press Release
Jacksonville, FL - U.S. Attorney Robert E. O’Neill announces the return of a multi-count indictment charging Jacksonville residents Troy Solomon (29) and Antonio Gadsden (37) with conspiracy to defraud the government and multiple counts of aiding and assisting in the preparation of false income tax returns. Solomon is also charged with 16 counts of wire fraud, one count of aggravated identity theft and one count of willful failure to file a return. They each face a maximum penalty of three years in federal prison for the conspiracy charge. Gadsden faces up to three years in federal prison for each of his four false preparation charges. Solomon faces a maximum penalty three years in federal prison for each of his sixteen false preparation charges. Additionally, Solomon faces a maximum penalty of twenty years in federal prison for each wire fraud charge, two consecutive years in prison for the aggravated identity theft charge, and up to one year in prison for the failure to file charge. Both individuals were arrested on federal warrants today.
According to the indictment, Solomon and Gadsden worked at Solomon's Tax Services, LLC and conspired to defraud the United States by preparing returns using false information to maximize the refund amount received. The indictment further alleges that larger refunds resulted in more tax preparation business, which led to greater tax preparation fees. Solomon allegedly stole the identity of an individual in order to participate in the IRS E-File Program, through which Solomon obtained an Electronic Filing Identification Number. That identification number was used to file IRS Form 1040s. Further, the indictment alleges that Solomon failed to file an income tax return for tax year 2011.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Kelly S. Karase is handling the prosecution of this case.
Tax Preparer Charged with Preparing False Tax ReturnsRead the Press Release
PHILADELPHIA - David Nixon, 48, of Philadelphia, Pennsylvania, was charged today by Indictment with 81 counts of aiding and assisting in the preparation of materially false income tax returns, announced United States Attorney Zane David Memeger.
According to the indictment, Nixon, the owner of Economy Tax Services, prepared materially false federal income tax returns for tax years 2007 through 2009 which included fraudulent credits for children, earned income, tuition and fees, and residential energy efficiency property; incorrect filing status; and false or falsely inflated Form 1040 Schedule A deductions for charitable contributions and employee business expenses. The prepared and filed returns reduced the amount of tax owed by Nixon’s clients and increased the amount of the refunds to the clients. The indictment alleges that as the result of the false and fraudulent income tax returns, Nixon’s clients received more than $200,000 in fraudulently inflated refunds.
If convicted the defendant faces a maximum possible statutory sentence of 243 years in prison, a fine of up to $20,250,000, and one year of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Anita Eve.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Tampa Man Sentenced to 12 Years on Federal Child Pornography ChargesRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore sentenced Paul Henry Carlin (58, Tampa) yesterday to 12 years in federal prison for transportation and receipt of child pornography. The court also ordered Carlin to forfeit computers and thumb drives, which were used in the offense. Carlin pleaded guilty on March 1, 2013.
According to court documents, between May and December 2012, Carlin used a peer-to-peer file sharing program to distribute at least 17 files depicting child pornography to undercover FBI agents. In December 2012, Carlin's computers and thumb drives were seized. Agents found more than 300 images and 100 videos of child pornography on his computer media. Carlin also admitted to law enforcement agents that he had been seeking and downloading images and videos of child pornography.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Tacoma Repeat Offender Sentenced to 20 Year Prison Term for Drug and Gun CrimesRead the Press Release
A repeat offender who was arrested twice by Tacoma Police officers with baggies of crack cocaine was sentenced yesterday to 20 years in prison following his convictions at trial for conspiracy to distribute cocaine base (crack), four counts of possession of cocaine and cocaine base with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, being a felon in possession of a firearm and witness tampering, announced U. S. Attorney Jenny A. Durkan. TITUS DION PETERSON, 34, has a lengthy criminal history including multiple convictions for drug dealing, assault, resisting arrest, and bank robbery. At sentencing U.S. District Judge Benjamin H. Settle said his primary concern was protecting the public, saying to PETERSON, “The Court has no confidence … that you’re at a point mentally to make a change in your life.”
According to records filed in the case, Tacoma Police officers stopped PETERSON January 13, 2010, for jaywalking and determined that he had attempted to toss two baggies containing a total of about an ounce of crack cocaine after noticing the officers in the area. PETERSON was arrested, and failed to appear in court on the charges. After a warrant was issued on that case, PETERSON was located a second time by Tacoma Police Officers on October 31, 2011. Following a traffic stop, officers found another ounce of crack cocaine in a baggy in the vehicle PETERSON was driving. Following that arrest, members of the FBI’s South Sound Gang Task Force went to PETERSON’s apartment and a storage unit he controlled. In the storage unit officers found an additional nine ounces of crack and powder cocaine, $23,000 in cash, and two firearms. One was a Taurus 9mm semi-automatic pistol loaded with 13 rounds, the other was a Smith & Wesson .40 caliber pistol loaded with 15 rounds. While incarcerated awaiting trial, PETERSON made numerous phone calls to friends and family members attempting to thwart the investigation and prosecution. Those calls resulted in the witness tampering conviction. PETERSON was convicted on October 5, 2012 following a three day bench trial (after waiving his right to a jury trial).
The case was investigated by the FBI’s South Sound Gang Task Force, which also includes officers from the Tacoma Police Department, the Washington Department of Corrections and State Patrol, the Lakewood Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Statement of the U.S. AttorneyRead the Press Release
Memphis, TN – United States Attorney Edward L. Stanton III has released the following statement concerning the shooting in Olive Branch, MS this morning: During the execution of a federal search warrant this morning at a residence in Olive Branch, MS, Byron Kelley, a/k/a “Big B,” 32, was fatally wounded after firing upon members of law enforcement. This individual and the residence in question were subjects of a federal drug investigation and prosecution in the Western District of Tennessee. Kelley was under indictment for conspiracy to possess and distribute oxycodone and conspiracy to possess and distribute hydrocodone. The incident is currently under investigation by the Mississippi Bureau of Investigation, and all inquiries regarding the shooting should be referred to the MBI.
# # # #St. Petersburg "Doomsday Prepper" Sentenced to More Than 8 Years in Federal PrisonRead the Press Release
Tampa, FL - U.S. District Judge Mary S. Scriven sentenced Jason Deon Thomas today (32, St. Petersburg) to 97 months in federal prison for possession with intent to distribute cocaine and marijuana and being a felon in possession of firearms and ammunition. The court also ordered Thomas to forfeit a host of firearms, ammunition, and $7,390 in U.S. currency, which were traceable to the offenses. Thomas pleaded guilty on March 8, 2013.
According to court documents, on February 7, 2013, the St. Petersburg Police Department, along with agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, executed a search warrant at Thomas' residence. Inside the residence, law enforcement officers located 29 firearms, including six assault rifles, five shotguns, 17 handguns, a machine gun, a silencer, four bullet proof vests, and thousands of rounds of ammunition. Distribution amounts of marijuana, cocaine, a quantity of prescription drugs, and $7,390 in cash were also recovered. Thomas was previously convicted of felony drug trafficking offenses, and thus prohibited from possessing a firearm or ammunition under federal law.
Thomas claimed, in court filings, that he was a "doomsday prepper," and stockpiling firearms, ammunition, bullet proof vests, and other items to prepare for the end of the world.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
St. Paul Felon Indicted for Possessing A .45-caliber PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 30-year-old man was indicted for possessing a .45-caliber pistol. Chandan Prentiss Hurd, of St. Paul, was specifically charged with one count of being a felon in possession of a firearm.
The indictment alleges that on March 23, 2013, Hurd possessed the pistol. Because he is a felon, Hurd is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions include fleeing a peace officer in a motor vehicle in Ramsey County (2007), forgery in Dakota County (2006), and in Hennepin County, he was convicted of first-degree assault and attempted second-degree murder (2006) and first-degree damage to property (2004).
A law enforcement affidavit filed in the current case states that on March 23, police noticed a car stopped in the middle of Buchanan Street in northeast Minneapolis. Hurd was allegedly standing next to the vehicle. As the squad car pulled closer, Hurd allegedly approached it with his hands in his pockets. Officers reportedly ordered him to take his hands out of his pockets, but he failed to do so. Suspecting that Hurd may have a weapon, officers attempted to remove his hands from his pockets. During the struggle that ensued, officers reportedly discovered a pistol and magazine in Hurd’s right pocket. He was immediately arrested.If convicted of the current offense, Hurd faces a potential maximum penalty of ten years in federal prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Minneapolis Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
The case was charged under Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. The Hennepin County Attorney’s Office then teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against almost two dozen serious habitual criminals through Project Exile Minneapolis.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Seffner Woman Sentenced to Federal Prison for Misprision of Felony ConvictionRead the Press Release
Tampa, Florida - U.S. District Judge James S. Moody, Jr. today sentenced Courtnee Brantley (Seffner) to 12 months and one day in federal prison for her felony conviction of misprision of felony. Brantley was found guilty of the crime by a federal jury on January 16, 2013, following a second trial in the case. The first trial resulted in a hung jury.
Brantley's charge and conviction resulted from her actions following the murders of Tampa Police Officers David Curtis and Jeffrey Kocab on June 29, 2010, by Dontae Morris. Brantley was operating a vehicle without a tag, resulting in Officer Curtis stopping the vehicle and the ensuing fatal encounter. The evidence at the trial revealed that Brantley left the scene of the shooting and concealed her vehicle. Brantley further communicated with Morris following the murders.
This case was investigated by the Tampa Police Department, Federal Bureau of Investigation, Hillsborough County Sheriff's Office, Florida Department of Law Enforcement, Bureau of Alcohol, Tobacco, Firearms and Explosives, and other federal and local law enforcement agencies. It was prosecuted by Assistant United States Attorney James C. Preston, Jr.
Second Superseding Indictment Adds Second Former Philadelphia Police Officer to Robbery CaseRead the Press Release
PHILADELPHIA - A second superseding indictment was unsealed today against former Philadelphia Police Officers Jonathan Garcia, 23, and Sydemy Joanis, 27, both of Philadelphia, charging them with conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, attempted Hobbs Act robbery, and carrying firearms during and in relation to crimes of violence. Garcia is also charged with distribution of heroin. The charges against Joanis were added to a superseding indictment against Garcia. Joanis was arrested this morning. Garcia was arrested on June 20, 2012, and remains in federal custody. The charges were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward Hanko, and Philadelphia Police Commissioner Charles Ramsey.
According to the second superseding indictment, between December 2009 and June 19, 2012, while working as Philadelphia Police Officers assigned to the 17th Police District, Garcia and Joanis conspired to rob suspected drug dealers of the cash proceeds of their narcotics trafficking. It is alleged that they engaged in this scheme while on active duty, using their Philadelphia Police patrol car, uniform, loaded service pistol, and handcuffs to commit the robberies.
The indictment alleges that Garcia and Joanis utilized a confidential source (“Person #1”) to participate in the robbery of suspected drug dealers by purchasing narcotics from the suspected drug dealers. Garcia and Joanis allegedly provided Person #1 with money, instructed Person #1 to meet with suspected drug dealers inside their cars, and further instructed Person #1 to leave inside the cars a small amount of the drugs, usually cocaine base (“crack cocaine”), that Person #1 purchased. After Person #1 exited the suspected drug dealers’ cars, it is alleged that defendants Garcia and Joanis initiated bogus traffic stops on the individual and, upon finding the drugs purposefully left behind by Person #1, conducted searches of the individuals and their cars, arrested the individuals, and stole some or all of the money that they recovered. Garcia and Joanis allegedly compensated Person #1 with money or narcotics.
“The defendants’ alleged conduct in this case strikes at the very heart of the public trust that our citizens should have for our police officers,” said U.S. Attorney Memeger. “It is a priority of my office to investigate and prosecute corrupt officers who taint their badges by using their power and authority to victimize others rather than to serve and protect the community.”
“We will continue to aggressively pursue any officer that commits criminal acts to rid the Department of individuals who don't belong,” said Commissioner Ramsey. “Our Internal Affairs Investigators have been working independently and cohesively with our Federal Partners to accomplish this task. Corrupt Cops don't represent the honor or integrity that our Department or Law Enforcement stands for and therefore they will be held accountable at the highest level.”
“Illegal conduct by police officers undermines the public trust, harming law enforcement at every level,” said Special Agent-in-Charge Hanko. “These charges underscore the FBI’s commitment to investigating allegations of criminal activity, no matter who is involved.”
If convicted of all charges, each defendant faces a mandatory minimum sentence of 30 years in prison with a maximum sentence of life.
The case was investigated by the FBI and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Kevin R. Brenner.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Savannah Man Sentenced to 20 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
SAVANNAH , GA: ROBERT A. FLAESCH, 46, of Savannah, Georgia, was sentenced last week to serve 20 years in federal prison by U.S. District Court Judge William T. Moore, Jr. for sexually exploiting a minor.
United States Attorney Edward J. Tarver said, “This defendant admitted to knowingly using a child to engage in sexually explicit conduct for the purpose of producing child pornography. The U.S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in the sexual exploitation of children. FLAESCH’S prosecution sends a message that we will do all in our power to protect our children from such predatory acts.”
The evidence presented during FLAESCH’S guilty plea and sentencing hearings showed that between 1998 and 2003, FLAESCH was involved in a relationship with the minor’s mother. He periodically resided with the mother and child at different locations in the Southern District of Georgia, including Tybee Island and Pooler Georgia. During this time, FLAESCH hid a video camera at different locations within the residences and filmed the young child in various states of undress. He also crept into the sleeping child’s room and filmed himself engaging in sexually explicit conduct with the minor child. In 2011, the Garden City Police Department was provided with a tape of the videos recorded by FLAESCH. The FBI investigated the matter and was able to determine the identity of the child on the videos, who is now an adult. Federal agents arrested FLAESCH this year in Detroit, while he was returning from a trip to the Philippines.FLAESCH was also ordered to serve 3 years of supervised release and to register as a sex offender upon his release from prison. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, which is a nationwide U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. Assistant United States Attorneys E. Greg Gilluly, Jr. and Jennifer G. Solari prosecuted the case for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Rochester Man is Sentenced for Copyright InfringementRead the Press Release
ROCHESTER, N.Y.-- U. S. Attorney William J. Hochul Jr., announced today that Eugene DeBerger, 60, of Rochester, N.Y., who was convicted of copyright infringement, was sentenced to three years probation and ordered to pay restitution in the amount of $41,460 to the Motion Picture Association by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that between January 2007 and August 2010, DeBerger bought legal copies of copyright protected DVD movies and burned copies on his home computer. The defendant then sold them online for $3.99 a piece. During the time period, DeBerger sold over 7000 DVDs.
The sentencing is the culmination of an investigation on the part of the Special Agents from Federal Bureau of Investigation under the direction of Richard Frankel, Acting Special Agent in Charge.Ridgefield Woman Pleads Guilty to Embezzling from Fairfield Housing AuthorityRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ELIZABETH JO GUTIERREZ, 47, of Ridgefield, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to embezzling $30,000 from the Fairfield Housing Authority.
The Fairfield Housing Authority administers federal housing programs for the U.S. Department of Housing and Urban Development with the mission of providing affordable housing for eligible low-income families and the elderly.
According to court documents and statements made in court, GUTIERREZ served as the Executive Director for the Fairfield Housing Authority from approximately July 2010 to December 2011. In the summer of 2011, GUTIERREZ issued two checks, each in the amount of $15,000, from the Fairfield Housing Authority’s checking account and subsequently deposited them into her own checking account.
GUTIERREZ pleaded guilty to one count of theft concerning programs receiving federal funds. She is scheduled to be sentenced by United States District Judge Robert N. Chatigny on August 27, 2013, at which time she faces a maximum term of imprisonment of 10 years.
GUTIERREZ has been released on a $50,000 bond since her arrest on January 31, 2013.
This matter was investigated by the Department of Housing and Urban Development – Office of Inspector General. The case is being prosecuted by Special Assistant United States Attorney Sean Beaty.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Rapid City Woman Sentenced on Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota woman convicted of Simple Assault was sentenced on May 31, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Raylene C. Chipps, age 25, was sentenced to 12 months of probation and a $10 special assessment to the Federal Crime Victims Fund.
Chipps was indicted by a federal grand jury in October of 2012. The conviction stems from an incident on May 4, 2012 when the Defendant was riding in a vehicle in Mission, South Dakota when they came upon two women walking along the road and stopped. Two occupants of the vehicle exited and confronted the victim. A fight ensued and Chipps joined in the assault. As a result, the victim sustained a broken jaw, among other injuries.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Troy Morley.
Rapid City Man Sentenced on Escape ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man charged with Escape from Custody was sentenced on May 30, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Abraham Yellow Horse, age 24, was sentenced to 15 months' imprisonment and ordered to pay $100 to the Federal Crime Victims Fund.
In December 2012, Yellow Horse was serving part of a federal sentence at the Community Alternatives of the Black Hills, when he left without permission and did not return. He pled guilty on February 5, 2013.
This case was investigated by the U.S. Marshals Service and Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Yellow Horse was immediately turned over to the custody of the U.S. Marshal.
Rapid City Man Guilty of Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that Marcos Miranda-Sanchez, age 57, of Rapid City, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on May 29, 2013 and pled guilty to Illegal Reentry After Deportation.
The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
In September 2012, while being arrested by the Rapid City Police Department for public intoxication, Miranda-Sanchez was found to be in the United States illegally, having previously been deported to Mexico.
The investigation was conducted by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Prolific Sex Trafficker Sentenced to 16 Years PrisonRead the Press Release
PORTLAND, Ore. – Rashad Q. Sanders, 28 was sentenced to 194 months in federal prison yesterday by U.S. District Judge Marco A. Hernandez, after pleading guilty to three counts of a superseding indictment charging him with the sex trafficking and transportation of three minors. Sanders was also sentenced to 10 years of supervised release and will have to register as a sex offender.
The investigation began in September of 2008 when Sanders made contact with two minors aged 16 and 17 via the internet. He ultimately convinced both of them to leave the State of Minnesota and travel to Portland, Oregon to work for him as prostitutes. Sanders purchased Greyhound Bus tickets for the minors and picked them up at the bus station when they arrived in Portland. Thereafter, Sanders took the girls to a local hotel and provided one of the minors with a false identification card that showed her to be over 18. He gave her instructions to register a room under the false name. The same day he helped the minors obtain cellular phones. Later in the evening he used his laptop computer to post pictures of the minors in commercial sex advertisements online via Craigslist.com. Thereafter, the victims started receiving calls from paying customers and engaged in sex acts for money. The girls complied with Sanders instructions to give him all the money they made from prostitution. After a short period of time, the girls realized they didn’t want to work for Sanders anymore and tried to leave. At that time, Sanders became angry and punched one of the girls in the head, knocking her down the hotel stairs. The other minor ran from the hotel, entered a stranger’s home, and asked if they would call 911. By the time the police arrived, Sanders had fled the area, leaving his laptop and other possessions.
On May 4, 2011, Sanders was arrested on a state charge of compelling prostitution at the Palms Hotel in Portland, Oregon. At the time,“C.C.”, a 15 year old, was a passenger in the front seat of his car. On that date, the police were called by staff at the Palms Hotel because Sanders would not pay for double occupancy on a room that he rented. When they contacted CC she said that Sanders was her pimp and brought her to the hotel for a prostitution date. She said that Sanders had drugged her and forced her to work as a prostitute for him. Inside Sanders’ car, the police found lingerie, condoms, and a cell phone that was used to receive calls from “C.C.” customers. “C.C.” was taken to a local hospital and interviewed. In the days and months that followed, “C.C.” began to tell a consistent story about how she met Sanders about a year earlier when she was 14 year old. Also, about how Sanders provided and injected her with methamphetamine. Additionally, she shared over time he convinced her to work for him as a prostitute beginning about December of 2010.
At the sentencing hearing, Sanders did not express any remorse for the minors and told Federal District Court Judge Hernandez that these minors are not victims and blamed them for his current situation.
This case was investigated by the Portland Police Bureau, FBI, and the FBI Child Exploitation Task Force. The case was prosecuted by Assistant U.S. Attorney Kemp Strickland.
Plea Agreement Filed in Case of Peckville Man Charged with Online Enticement of MinorsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has filed a plea agreement in U.S. District Court in Scranton today. The agreement is with Mark Kandel, age 53, of Peckville. In the agreement, Kandel will acknowledge that he engaged in the online enticement of minors and committed the offenses from January 2012 through November 2012.
The agreement, which must be accepted by the court, calls for a period of incarceration of at least 13 years but up to 19 years, to be determined by the Judge at the time of sentencing. As part of the plea agreement, Kandel will also receive a lifetime term of supervised release upon the completion of any term of incarceration and, will be subject to the registration and reporting requirements of the Adam Walsh Act.
Kandel was indicted by a federal grand jury in December 2012 on five counts of online enticement of a minor. He was taken into custody by federal agents. He remains detained.
According to United States Attorney Peter J. Smith, this case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the FBI, the Lackawanna County District Attorney’s Office and the Blakely Police Department. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Owners of Smoke Shack and Smoke Shack 2 Sentenced to Federal PrisonRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced that Robert T. Guerrero, Jr., 36, and Jason Daniel Guerrero, 34, both of Meridian, Idaho, were sentenced today to federal prison terms as part of Operation Not For Human Consumption, which targeted illegal sales of drug paraphernalia and “spice” at 13 Treasure Valley businesses. The Guerrero brothers are the former owners and operators of two Treasure Valley headshops, Smoke Shack and Smoke Shack 2. On February 26, 2013, both men pleaded guilty to one count of offering drug paraphernalia for sale and one count of money laundering.
U.S. District Judge Edward J. Lodge sentenced Robert Guerrero to 18 months and Jason Guerrero to 15 months in prison, to be followed by three years of supervised release.
According to information presented at sentencing, Robert and Jason Guerrero were co-owners and operators of RG Distributing, Inc., doing business as Smoke Shack and Smoke Shack 2. The businesses were located at 124 13th Avenue South in Nampa, Idaho; and 482-A West Main Street in Kuna, Idaho. The Guerreros admitted to knowingly and intentionally offering drug paraphernalia for sale, which included various glass pipes, metal pipes, plastic pipes, water pipes, bongs, bubblers, vaporizers, one-hitters, grinders, gas masks, and urine cleansing kits. The items were primarily intended and designed for illegal drug use. Additionally, the Guerreros manufactured and distributed controlled substance analogues, commonly referred to as “spice” or “potpourri.” The Guerreros admitted that they received profits in excess of $120,000, but less than $200,000, from a specified source of unlawful activity. On May 1, 2012, Jason Guerrero purchased diamond jewelry from an area jewelry store for $18,000 in cash. On May 8, 2012, Robert Guerrero purchased diamond jewelry for $22,000 in cash. The Guerreros admitted that the cash used to purchase the diamond jewelry was derived from the unlawful sale of drug paraphernalia.
Robert and Jason Guerrero are among the 18 defendants charged in 2012 in Boise as part of Operation Not for Human Consumption. According to search warrant affidavits, nine of the 13 businesses were openly selling “spice,” a substance that tested positive for AM-2201. “Spice,” a synthetic form of cannabis, which is a psychoactive herbal and chemical product that, when consumed, mimics the effects of cannabis. In the spring of 2011, the Idaho Legislature criminalized the sale of “spice” under state law. In March 2011, the Drug Enforcement Administration placed five synthetic cannabinoids into Schedule I of the Controlled Substances Act. At the time Robert and Jason Guerrero manufactured and sold spice, AM-2201 was a controlled substance analogue. On July 10, 2012, President Obama signed the Synthetic Drug Abuse Prevention Act, which lists AM-2201 and 14 other chemicals as Schedule I controlled substances. It is against federal law to sell or offer for sale any paraphernalia that is primarily intended or designed for drug use, regardless of whether the seller advises their customers that the paraphernalia is for tobacco use only. The businesses are commonly referred to as “head shops.”
Operation Not for Human Consumption includes the cooperative law enforcement efforts of the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Ada County Sheriff's Office, Canyon County Sheriff's Office, Nampa Police Department, Meridian Police Department, and the Canyon County Prosecutor's Office. The U.S. Marshals Service and Idaho State Police provided assistance.
Owner of Window Installation Business Admits <br /> Tax Evasion in New JerseyRead the Press Release
The owner of a window installation company located in Mt.Laurel, N.J. admitted today he converted to cash millions of dollars in the company’s gross receipts and used the money to pay his workers without withholding employment taxes announced, Paul J. Fishman, U.S. Attorney for the District of New Jersey, and Kathryn Keneally, Assistant Attorney General for the Tax Division.
Fred Marcus, 39, of Camden County, N.J., the owner and operator of Vortex Installations Inc., pleaded guilty before U.S. District Judge Mary L. Cooper in New Jersey federal court to an information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
From early 2006 through the end of 2009, Marcus cashed approximately $2.8 million in Vortex Installations’ gross receipts at a check casher. Marcus used $1,025,868 of that money to pay cash wages to his workers, which he did not report to the Internal Revenue Service (IRS) and from which he did not withhold employment taxes. From 2006 through 2008, Marcus failed to file IRS Forms 941 – Employer’s Quarterly Federal Tax Returns – in which he was required to report the wages paid to his employees. In 2009, Marcus filed false Forms 941, in that he failed to report the cash wages that he paid to Vortex employees.
On the count of tax evasion, Marcus faces a maximum potential penalty of five years in prison and a fine of $250,000, along with restitution to the IRS. Sentencing is scheduled for Sept. 19, 2013.
Assistant Attorney General Keneally and U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.
The government is represented by Tax Division Trial Attorney Tino M. Lisella. Additional information about the Tax Division and its enforcement efforts may be found at: www.justice.gov/tax.
Owner of Window Installation Business Admits Tax EvasionRead the Press Release
TRENTON, N.J. – The owner of a window installation company located in Mt.Laurel, N.J., admitted today he converted to cash millions of dollars in the company’s gross receipts and used the money to pay his workers without withholding employment taxes, U.S. Attorney Paul J. Fishman, District of New Jersey, and Assistant Attorney General Kathryn Keneally of the U.S. Department of Justice, Tax Division, announced today.
Fred Marcus, 39, of Camden County, the owner and operator of Vortex Installations Inc., pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an Information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
From early 2006 through the end of 2009, Marcus cashed approximately $2.8 million in Vortex Installations’ gross receipts at a check casher. Marcus used $1,025,868 of that money to pay cash wages to his workers, which he did not report to the IRS and from which he did not withhold employment taxes. From 2006 through 2008, Marcus failed to file IRS Forms 941 – Employer’s Quarterly Federal Tax Returns – in which he was required to report the wages paid to his employees. In 2009, Marcus filed false Forms 941, in that he failed to report the cash wages that he paid to Vortex employees.
On the count of tax evasion, Marcus faces a maximum potential penalty of five years in prison and a fine of $250,000, along with restitution to the IRS. Sentencing is scheduled for Sept. 19, 2013.
Assistant Attorney General Keneally and U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.
The government is represented by Tax Division Trial Attorney Tino M. Lisella. Additional information about the Tax Division and its enforcement efforts may be found at: www.justice.gov/tax.
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Defense counsel: John Crayton Esq., Moorestown, N.J.Marcus, Fred Information
Owner of Gourmet Food Markets Pleads Guilty in White Plains Federal Court to Participating in Massive Tax Fraud Scheme That Concealed over $50 Million in Income from the IRSRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ADEM ARICI pled guilty today in White Plains federal court to participating in a tax fraud conspiracy in which more than $50 million in gross receipts from the fine foods supermarkets in which he had an ownership interest was hidden from federal and state tax authorities. ARICI also pled guilty to four counts of subscribing to false and fraudulent federal personal income tax returns, nine counts of aiding and assisting in the preparation of false and fraudulent federal corporate, partnership, and payroll tax returns, and one count of witness tampering. ARICI pled guilty before U.S. Magistrate Judge Paul E. Davison. He is the seventh member of the conspiracy to plead guilty, and cases are pending against two additional co-conspirators who remain at large.
Manhattan U.S. Attorney Bharara stated: “Adem Arici and his co-conspirators appeared to be running a legitimate and very successful business, but in reality he was little more than a serial and flagrant tax cheat – failing to pay either personal or business-related taxes on millions of dollars in income. This Office has absolutely no tolerance for those who violate the tax laws and fail to pay their fair share.”
According to the Superseding Indictment and other documents filed in this case:
ARICI had an ownership interest and played an active management role in the following gourmet food markets (the “Markets”) in New York, New Jersey, and Connecticut:
- Zeytuna, located in New York, New York.
- The Amish Market, located in New York, New York.
- Zeytinia Gourmet, located in Croton-on-Hudson, New York.
- Zeytinia Fine Food Store, located in Oakland, New Jersey.
- Zeytinia Fine Food Store, located in Atlantic City, New Jersey.
- Zeytinia Gourmet Market in Wilton, Connecticut.
The Markets’ customers typically paid for their purchases with either cash or credit cards. Credit card payments, and a small portion of the cash receipts, were deposited into bank accounts maintained by each Market. The remaining cash was diverted from the books and records of the Markets and used to pay business expenses, including the Markets’ employee payrolls. The owners of the Markets paid numerous employees, including undocumented foreign workers, in cash. They then took the remaining cash and divided it up amongst themselves.
The owners of the Markets failed to withhold payroll taxes and to pay those taxes to the IRS and caused the preparation and filing with the IRS of forms that falsely and fraudulently understated the true salaries paid to employees. In many cases, the owners failed to report the salaries of employees entirely. The owners also maintained a second set of books and other records which recorded the true income and expenses of the Markets and reflected the cash that was skimmed. The second set of books showed that the owners of the Markets failed to report in excess of $50 million in gross receipts during the years 2004 through 2009.
With respect to the witness tampering count, on November 18, 2011, ADEM ARICI counseled an individual with whom he had unlawfully traveled to Cuba to tell law enforcement agents with the Department of Homeland Security, among other things, that the individual did not travel to Cuba, did not know ARICI, and had not met with ARICI in Cuba, all of which was untrue.
ARICI, 51, of Easton, Connecticut, is scheduled to be sentenced by Chief United States District Judge Loretta A. Preska on September 17, 2013. He faces a sentence of up to 54 years in prison and also faces restitution and forfeiture orders each in the amount of up to $15 million.
Mr. Bharara praised the outstanding efforts of the Internal Revenue Service, Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. He also thanked U.S. Department of Justice’s Tax Division for its significant assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey Alberts, Lee Renzin, and Perry A. Carbone are in charge of the prosecution.
The charges and allegations contained in the Indictment against the remaining defendants, Omer Ipek and Atilla Yayla, and Marc Verzani, are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Oglala Man Indicted for Sexual Abuse, Assault, Child Abuse, Incest, and Witness IntimidationRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota man has been indicted by a federal grand jury for allegedly sexually abusing and threatening a child under the age of 12 between 2007 and 2010 at Allen, South Dakota.
Norman Yellow Hawk, age 47, was indicted by a federal grand jury on May 21, 2013 for aggravated sexual abuse, assault resulting in serious bodily injury, felony child abuse and neglect, aggravated incest, and witness intimidation. Yellow Hawk appeared before U.S. Magistrate Judge Veronica L. Duffy on May 24, 2013 and pled not guilty to the superseding indictment.
The maximum penalty upon conviction is life imprisonment and a $250,000 fine. The charges are merely accusations and Yellow Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation.
Yellow Hawk was remanded to the custody of the U.S. Marshal. A trial date has been set for July 29, 2013.
Navajo Man Sentenced to 110 Months Imprisonment for Assault and Use of A Firearm During A Crime of ViolenceRead the Press Release
PHOENIX – On June 3, 2013, Jerome Lee Buckinghorse, 30, of Pinon, Ariz., was sentenced by U.S. District Judge G. Murray Snowto 110 months imprisonment. Buckinghorse pleaded guilty on March 19, 2013, to one count of assault resulting in serious bodily injury and one count of use of a firearm during a crime of violence.
On August 28, 2012, Buckinghorse and the victims got into an altercation on the Navajo Reservation during which Buckinghorse retrieved a rifle and used the butt of the rifle to hit two victims in the face. When the third victim attempted to flee, Buckinghorse shot him in the back with the rifle.
Buckinghorse received a sentence of 50 months imprisonment for assault resulting in serious bodily injury and a sentence of 60 months imprisonment for the use of a firearm during a crime of violence. Judge Snow ordered the sentences to run consecutive, resulting in a cumulative sentence of 110 months imprisonment.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution is being handled by Cassie Bray Woo, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8240-PCT-GMS
RELEASE NUMBER: 2013-045_BuckinghorseFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Naturalized U.S. Citizen Sentenced to 60 Months for Distributing MethRead the Press Release
BOISE – Alonso Martinez, 26, of Earlimart, California, was sentenced today to 60 months in prison for possession of 50 grams or more of actual methamphetamine with intent to deliver, U.S. Attorney Wendy J. Olson announced. Martinez, born in Mexico but a naturalized citizen of the United States, was also ordered to pay a $500 fine. Following his prison term, Martinez faces possible deportation. He appeared today before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Martinez pleaded guilty to the charge on November 5, 2012. According to court documents, on October 17, 2011, Martinez traveled from California to Idaho for the purpose of distributing methamphetamine at the direction of his co-conspirators. Martinez admitted that he met with co-defendant Alfredo Vasquez-Dominguez at a location in Meridian, Idaho, and subsequently delivered more than 50 grams of actual methamphetamine to him.
Eight co-defendants sentenced earlier include Alfredo Dominguez-Villareal, a/k/a Alfredo Vasquez-Dominguez, a Mexican national, to 150 months in prison; Nelson Fernando Garcia-Soto, a Mexican national, to 148 months; Jimenez Valencia a/k/a Jorge Jimenez, a Mexican national, to 57 months; Juan Carlos Arredondo-Sicairos a/k/a Victor Kalil Medina-Feliciano, a Mexican national, to 120 months; Delia Garcia-Pineda, a Mexican national, to 37 months; Tanna Spencer, of Parma, Idaho, to 15 months; Hector Morales, of Delano, California, to six months; and Cynthia Casillas, also of Delano, to three years’ probation.
The final defendant, Samuel Chavez, 32, of New Meadows, Idaho, is scheduled to be sentenced on June 24, 2013.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Boise Police Department, Nampa Police Department, and the Ada County Sheriff's Office.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Multimillion-Dollar Real Estate Ponzi Schemer Sentenced to Nine Years in Prison for Securities Fraud and Money LaunderingRead the Press Release
Perpetrator of Investment Scheme Also Ordered to Pay More Than $28.6 Million
NEWARK, N.J. – A Somerset County, N.J., man was sentenced today to 108 months in prison for his role in defrauding victims of an investment scheme by misusing their capital contributions and misrepresenting the performance of their investments, U.S. Attorney Paul J. Fishman announced.
David Connolly, 51, of Watchung, N.J., previously pleaded guilty before U.S. District Judge William J. Martini to two counts of a superseding indictment charging him with securities fraud and money laundering. In addition to the prison term, Judge Martini, who imposed the sentence today in Newark federal court, ordered Connolly to pay $18,732,775 in restitution and forfeit $9,920,000.
According to documents filed in this case and statements made in court:
From at least 2006 through October 2009, Connolly orchestrated a real estate investment fraud scheme in which he took in more than $50 million from more than 200 victims, causing losses of at least $18 million.
To induce victims to invest, Connolly made numerous materially false and misleading statements and omissions. He told victims their money would be used to purchase a specific property, and the property would generate rental income that would be used to pay investors monthly distributions. Connolly also told victims their money would be held in escrow until the closing of a purported real estate transaction and each property would be financially independent from all the others. Connolly misrepresented the amount of equity victims had in the properties, the condition of the properties, and the financial performance of the properties. Although the investment properties experienced significant negative cash flow, Connolly told investors they were performing well.
Connolly took significant portions of his victims’ money, which had been provided for specific real estate transactions, and used it for other purposes without victims’ knowledge. He funded unrelated real estate transactions in which he was engaged; paid prior victims; and paid himself. The scheme collapsed in the summer of 2009, after Connolly began defaulting on the mortgage payments for the investment properties.
In addition to the prison term, restitution and forfeiture, Judge Martini sentenced Connolly to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation. He also thanked special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their important contributions to the investigation.
The government is represented by Assistant U.S. Attorney Charlton A. Rugg and Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Criminal Division 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: Gerald M. Saluti Esq., Newark
Mountain Home Man Sentenced for Distributing MethRead the Press Release
BOISE – Raul Garcia-Rosales, 39, of Mountain Home, Idaho, was sentenced today in United States District Court in Boise to 21 months in prison for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Garcia-Rosales to serve three years of supervised release. He pleaded guilty to the charge on November 27, 2012.
According to the plea agreement, Garcia-Rosales admitted that on September 14, 2011, he received approximately one pound of methamphetamine from his co-defendant, Jamie Guerrero, in Elmore County, Idaho, and then distributed it to an undercover officer at a truck stop in Mountain Home.
Guerrero, 27, of Glenns Ferry, Idaho, also pleaded guilty on November 27, 2012, to possession with intent to distribute methamphetamine. According to the plea agreement, Guerrero admitted that he supplied the methamphetamine to Garcia-Rosales. He is scheduled to be sentenced on August 26, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Idaho State Police and the Drug Enforcement Administration, in conjunction with the Elmore County Sheriff’s Office. The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the DEA, the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Minneapolis Felon Pleads Guilty to Possessing A .22-caliber PistolRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 23-year-old Minneapolis man pleaded guilty to being a felon in possession of a .22-caliber pistol. On June 3, 2013, Marcus Rashad Davis specifically pleaded guilty to one count of being a felon in possession of a firearm. Davis, who was indicted on January 22, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Davis admitted that on June 15, 2012, he possessed the semi-automatic weapon. He was arrested after running from police, who were responding to a report of a man with a gun. Because he is a felon, Davis is prohibited under federal law from possessing a firearm at any time. His prior convictions include manufacture/delivery of a controlled substance (2008), possession with intent to deliver cannabis (2008), and burglary of a vehicle (2011), all in Illinois.
For this current offense, Davis faces a potential maximum penalty of ten years in prison. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled.This case is the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.Michigan Doctor Pleads Guilty to Health Care FraudRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Fitzgerald Anthony Hudson, 53, of Dearborn Heights, Michigan, pleaded guilty before Chief U.S. District Chief Judge William M. Skretny, to health care fraud. The fraud related to the defendant lying about his qualifications to practice medicine. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in August 2008, the defendant submitted an application to Jones Memorial Hospital in Wellsville, N.Y. for appointment to the medical staff. Prior to that, Hudson was an undergraduate student at York University in Ontario, Canada from September 1987 to August 1990, however the defendant did not obtain enough credits to graduate and did not earn a Bachelor’s Degree. The defendant then attended medical school at Ross University after which he worked in the Warren Hospital Family Practice Residency Program in Phillipsburg, New Jersey from July 2002 until July 2003. At that time, Hudson was suspended from his duties as a resident and dismissed from the residency program due to academic incompetence. This means, in essence, that the defendant never received his medical degree or license and was not legally qualified to practice medicine.
During the course of this prosecution, the government presented evidence that while employed at Jones Memorial Hospital, Hudson treated a five year old child who subsequently died shortly after being treated by the defendant. That case is now the subject of an ongoing wrongful death civil suit in state court.
In addition, from February 2008 to June 2008, the defendant was employed at the Emergency Department at the Claxton-Hepburn Medical Center in Ogdensburg, N.Y. Hudson resigned in June of 2008 due to an unfavorable incident.
“Each and every day, millions of Americans entrust their health to the care of trained medical professionals,” said U.S. Attorney Hochul. “By misrepresenting his background and education, this defendant put in danger the lives of those who came to him seeking emergency care. This Office will continue to vigorously prosecute all fraud, particularly where such crime affects that which is most precious to us all – our health.”
In the application the defendant submitted to Jones Memorial Hospital, he: (a) indicated that he disassociated with the Claxton-Hepburn Medical Center because it was "too far away;" (b) indicated that he had never been denied or had suspended or restricted completion of training or certification of completion of training by any healthcare facility; and (c) stated that he earned a BS degree from York University. Hudson was aware of the false statements and representations at the time he made them, and acted knowingly and willfully in submitting the false application to Jones Memorial Hospital.
As a result of the defendant’s false application for medical staff appointment, Hudson was granted privileges at Jones Memorial Hospital in Emergency Medicine. Between August 2008 and November 2009, the defendant worked as a physician at the Emergency Department at Jones Memorial Hospital, and based on that work, payments totaling approximately $227,548.35 were received from Medicare, BlueCross BlueShield of Western New York, Univera Healthcare, and Independent Health for services rendered by the defendant.
Sentencing is scheduled for September 9, 2013 at 9 a.m. before Judge Skretny.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Acting Special Agent in Charge, Special Agents of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations under the direction of Thomas O'Donnell, Special Agent in Charge, and Investigators with the Medicaid Fraud Control Unit of the New York State Attorney General’s Office.Mexican Cocaine Trafficker Sentenced to 292 MonthsRead the Press Release
NORFOLK, Va. – Omar Antonio Martinez, 31, of Sonora, Mexico, was sentenced today to 292 months in prison, followed by 5 years of supervised release, for his role in a large-scale cocaine trafficking organization.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.Martinez pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine on October 17, 2012. According to court documents, Martinez was a member of a cocaine distribution ring that extended from the Hampton Roads area to other locations throughout the United States. In approximately 2006, Martinez approached several lower-level drug dealers in the area and recruited them to distribute cocaine on his behalf. After selling the cocaine to multiple customers, the dealers would then provide the proceeds of these cocaine sales to Martinez, in order to purchase more cocaine. At the time of his arrest in Hampton, Virginia, in May 2012, Martinez was found with 2.5 kilograms of cocaine, a kilogram press, digital scales, cocaine packaging materials, several thousand dollars, and a handgun. All told, from 2006 through May 2012, Martinez was responsible for transporting, manufacturing, and distributing over 100 kilograms of cocaine throughout Tidewater.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. Assistant United States Attorney V. Kathleen Dougherty prosecuted the case on behalf of the United States.Mexican Citizen to Be Deported for Illegal Reentering U.S.Read the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico entered a plea of guilty to a one-count indictment and has been sentenced in federal court to two months in prison, no supervised release, and ordered immediately turned over to the custody of the United States Immigration and Customs Enforcement for deportation to Mexico on his conviction of re-entry of a removed alien, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Adrian Flores-Flores, 22, of Bedford, Pa.
According to information presented to the court, on March 27, 2013, Flores-Flores, an alien who had been deported from the United States on June 19, 2009, was found in Bedford, Pa. He had unlawfully re-entered this country without receiving permission from the Secretary of the Department of Homeland Security to do so.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security/Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Flores-Flores.
Lower Brule Man Indicted for Controlled Substance ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Joshua Brouse, age 29, was indicted by a federal grand jury on May 15, 2013 for Possession with Intent to Distribute a Controlled Substance Analogue, and Use of a Communication Facility in Causing or Facilitating the Commission of a Felony Under the Controlled Substances Act. Brouse appeared before U.S. Magistrate Judge Mark A. Moreno on May 30, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Brouse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Brouse was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Lower Brule Man Charged with Controlled Substance and Firearm ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Caleb Mills, age 24, was indicted by a federal grand jury on May 15, 2013 for Possession with Intent to Distribute a Controlled Substance Analogue, Use of a Communication Facility in Causing or Facilitating the Commission of a Felony Under the Controlled Substance Act, and Possession of a Firearm by a Prohibited Person. Mills appeared before U.S. Magistrate Judge Mark A. Moreno on May 30, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Mills is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Mills was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Lower Brule Man Charged with Assaulting, Resisting and Impeding Federal OfficersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Cole Brouse, age 19, was indicted by a federal grand jury on May 15, 2013 for Assaulting, Resisting and Impeding Federal Officers. Brouse appeared before U.S. Magistrate Judge Mark A. Moreno on May 30, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Brouse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Brouse was released on bond pending trial. A trial date has not been set.
Louisville Physician Pleads Guilty to Structuring Financial Transactions to Evade ReportinRead the Press Release
– Agrees to forfeit $66,980.
LOUISVILLE, Ky. - A Louisville physician pleaded guilty in U.S. Federal Court, before U.S. Magistrate Judge Dave Whalin, on May 31, 2013, to four felony counts of structuring transactions with a financial institution in order to evade reporting requirements announced David J. Hale, United States Attorney for the Western District of Kentucky.
Dr. Ronald J. Hamm, age 61, who owned and operated Hameron Weight Loss Center, Inc., was charged with making ten cash deposits on ten different days, all in amounts under $10,000 and totaling $66,980, in order to evade the reporting requirements of the Bank Secrecy Act. (Financial institutions have a legal obligation to report transactions in excess of $10,000.)
Dr. Hamm's plea agreement includes the forfeiture of $66,980 as proceeds of the crime, including over $30,000 seized by the Internal Revenue Service and over $35,000 to be paid to satisfy a money judgment, representing the remainder of the proceeds of the criminal conduct.
The structuring charges, to which Dr. Hamm pleaded guilty, each carry a penalty of up to five years in prison and a fine of up to $250,000. The defendant is scheduled to appear for sentencing before Judge John G. Heyburn on August 19, 2013, in Louisville.
This case is being prosecuted by Assistant United States Attorney Jason Snyder and is being investigated by the Internal Revenue Service Criminal Investigation Division's Financial Crimes Task Force and the Jefferson County Sheriff's Office.
Lockport Man Convicted of Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Damian Ard 32, of Lockport, N.Y., pleaded guilty before U.S. District Judge William M. Skretny, to conspiracy to possess with intent to distribute, and to distribute, cocaine base. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that from 2009 through August 2010, Ard distributed cocaine base, cocaine, heroin, marijuana, Ecstasy, and prescription pills in the City of Lockport. On August 17, 2010, law enforcement officers executed search warrants at several locations including Ard’s residence on Chapel Street in Lockport. During the search, officers seized three guns, magazines, ammunition, plastic baggies containing marijuana; and surveillance equipment.
Ard was arrested along with 22 others in August of 2010 for narcotics trafficking. To date 17 defendants have been convicted.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, The Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Votour, and the Niagara Frontier Transit Authority Police, under the direction of Chief George Gast.
Sentencing is scheduled for October 1, 2013 at 9:00 a.m. before Judge Skretny.Lenny Cain Convicted in Oxycodone ConspiracyRead the Press Release
Baltimore, Maryland – A federal jury today convicted Lenny Cain, age 36, of Baltimore, Maryland, for conspiracy to distribute and possess with intent to distribute oxycodone, and for possession with intent to distribute oxycodone.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; and Howard County Police Chief William McMahon
According to the testimony at his two week trial, beginning in 2010, Cain and the other leaders of the conspiracy, including Joseph Church, recruited women working in doctors’ offices to assist them in obtaining and verifying fraudulent prescriptions for oxycodone, also known as, OxyContin and Percocet. The leaders also recruited individuals, called “runners,” to get the fraudulent prescriptions filled at pharmacies in the Baltimore area. Evidence presented at trial showed that at least 14 fraudulent prescriptions had Cain’s fingerprints on them. Cain was also captured on surveillance video at two pharmacies – one where he attempted to get a fraudulent prescription filled in the name of another individual, and another where he followed one of the “runners” who was attempting to get a fraudulent prescription filled, into the pharmacy.
Seven co-conspirators, including Joseph Church, age 41, of Baltimore, have previously pleaded guilty to their roles in the conspiracy. Bruce Breland, age 56, and Charles Fell, age 27, both of Baltimore, have been sentenced to 27 months and to two years in prison, respectively. The remaining defendants are awaiting sentencing.
Cain faces a maximum sentence of 30 years in prison for the conspiracy and for possession with intent to distribute oxycodone. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 3, 2013 at 12:00 p.m.
United States Attorney Rod J. Rosenstein praised the DEA, HHS Office of Inspector General and the Anne Arundel and Howard County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark, Clinton J. Fuchs and Mushtaq Gunja, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Judge Sentences Glenshaw Man to 5½ Years in Prison for Possessing Sexually Explicit Videos of MinorsRead the Press Release
PITTSBURGH - An Allegheny County man has been sentenced in federal court to 66 months imprisonment and to be followed by 10 years supervised release on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Daniel L. King, 24, of Glenshaw, Pa.
According to information presented to the court, on June 21, 2012, King possessed visual depictions, namely, videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Immigration and Customs Enforcement, Homeland Security Investigations and the Pennsylvania State Police for the investigation leading to the successful prosecution of King.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Johnstown Felon Sentenced to 92 Months in Prison for Unlawfully Possessing A GunRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 92 months in prison and three years supervised release on his conviction of unlawful possession of a firearm by a convicted felon, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on John A. Hinton, 32, as the sole defendant.
According to information presented to the court, on April 3, 2012, Hinton, who had been convicted in 2007 in Cambria County, Pa., of delivery of cocaine, unlawfully possessed an H & R pistol. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Delivery of cocaine is such a crime.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Johnstown Police Department for the investigation leading to the successful prosecution of Hinton.
According to Mr. Hickton, Hinton was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Jamesville Man Enters Guilty Plea to False Tax ReturnRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that LLOYD F. MARTIN, JR., (68, of Jamesville, NY) entered a guilty plea to the felony offense of subscription of a false income tax return, in violation of Title 26, United States Code, Section 7206(1). The defendant is facing a statutory maximum sentence of 3 years imprisonment, a maximum fine of $250,000.00 and restitution to the IRS in the amount of $184,655.00. MARTIN is scheduled to be sentenced on October 13, 2013, before the Honorable Frederick J. Scullin.
During the plea hearing on June 4, 2013, MARTIN admitted the following. From 2006 through 2008, MARTIN was the president of a commercial construction company named Henderson-Johnson Co., Inc., located in Syracuse, New York. During that time, MARTIN realized income in the approximate amount of $657,640.57 from Henderson-Johnson over and above the income he reported on his personal federal income tax returns. Specifically, MARTIN received income from Henderson-Johnson in the form of payments toward personal expenses, such as the purchase and maintenance of a jet airplane. MARTIN failed to include $255,645.99 as income on his 2006 personal federal tax return, $241,892.78 as income on his 2007 personal federal tax return, and $160,101.80 as income on his 2008 personal federal tax return. Each of these returns were made and signed by him under penalty of perjury. MARTIN knew these tax returns were false because each substantially under reported his income and tax liability for that year. The foregoing resulted in a tax deficiency to the IRS totaling $184,655.00.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigations, Syracuse, New York. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Jackson Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – Nikki Thomas, of Jackson, pled guilty on May 28, 2013 to conspiring to defraud the United States and aggravated identity theft, announced U.S. Attorney Gregory K. Davis, Resident Agent in Charge Allen Bryant of the U.S. Secret Service, and Acting Special Agent in Charge Damon Rowe of Internal Revenue Service Criminal Investigation.
Thomas admitted to conspiring to defraud the government by using personal identifying information, including names and social security numbers which had been stolen from the Central Mississippi Correctional Facility located in Rankin County, and from other locations. The information was then used by Thomas and her co-conspirators to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. The refunds were then electronically deposited into various bank accounts in Mississippi belonging to Thomas and her co-conspirators.
Thomas will be sentenced on August 8, 2013 and faces a total maximum penalty of twelve years in prison and a $250,000 fine.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. Assistant U.S. Attorney Pat Lemon is prosecuting the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Jackson Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – S’ade Tyler, of Jackson, pled guilty on May 28, 2013 to conspiring to defraud the United States and wire fraud, announced U.S. Attorney Gregory K. Davis, Resident Agent in Charge Allen Bryant of the U.S. Secret Service, and Acting Special Agent in Charge Damon Rowe of Internal Revenue Service Criminal Investigation.
Tyler admitted to conspiring to defraud the government by using personal identifying information, including names and social security numbers, which had been stolen from the Central Mississippi Correctional Facility located in Rankin County and from other locations. The information was then used by Tyler’s co-conspirators to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. The refunds were then electronically deposited into various bank accounts in Mississippi belonging to Tyler and her co-conspirators.
Tyler will be sentenced on August 15, 2013 and faces a maximum penalty of thirty years in prison and a $250,000 fine.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. Assistant U.S. Attorney Pat Lemon is prosecuting the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Ithaca Defense Contractor Settles Whistleblower SuitRead the Press Release
United States Attorney Richard S. Hartunian announced today that his office has settled a civil prosecution under the False Claims Act. This case involves allegations that an Ithaca-based defense contractor, Agave BioSystems, Inc. and its President, Noe Salazar, submitted false claims to the United States Department of Defense, fraudulently seeking payment for labor expenses when in fact those expenses were not incurred, and the claimed labor in fact was not performed. The defendants have paid $300,000.00 to settle this matter.
This case started as a “whistleblower” or qui tam lawsuit filed by a former Agave employee, Rafik Tawadrous. In February 2010, Mr. Tawadrous filed a Complaint which alleged that Agave had committed fraud in its performance of government contracts. This Complaint was then investigated by agents and auditors from several federal agencies: the Defense Criminal Investigative Service (DCIS), U.S. Army Criminal Investigation Division (Army CID), the Defense Contract Audit Agency (DCAA), and the Federal Bureau of Investigation (FBI). The investigation confirmed material parts of Mr. Tawadrous’ allegations. The United States then entered this lawsuit and filed its own Complaint (“Complaint in Intervention”), reflecting those investigative findings, on April 26, 2013.
The government’s Complaint alleges in part the following: Agave is a small company located at 401 East State Street, Ithaca, New York. Agave largely performs scientific research and other work related to government defense contracts. Noe Salazar was the CEO and President of Agave until his death on October 6, 2012. In 2006, the Department of Defense conducted an audit of Agave’s claimed expenses. During that audit, Noe Salazar created two false time cards for one family member, namely his daughter, which claimed that his daughter had performed work on a government contract when in fact she had not. Noe Salazar submitted the false time cards to the Department of Defense. Also, Agave claimed it had incurred salary expenses for other family members, when these family members had not performed work to the extent claimed by Agave. Agave submitted the false and inflated salary expenses to the Department of Defense, which relied upon them in calculating the monies that would be paid to Agave, regarding approximately 44 contracts with the U.S. Army, Navy, Air Force, and Defense Threat Reduction Agency.
The government’s Complaint alleges misconduct only by Noe Salazar and Agave, and does not allege misconduct by any other person, family member or entity.
This action was filed pursuant to the federal qui tam statute, 31 U.S.C. §3730, which allows a private person to file a civil action on behalf of the United States, alleging that false claims have been submitted to the United States. This is part of the False Claims Act, which allows the government to file civil prosecutions, typically for defense procurement fraud and health care fraud. After a qui tam Complaint is filed, the United States commences an investigation and determines whether to join the lawsuit (“intervene”) or to decline intervention. In this case, as discussed above, the United States commenced an investigation and determined that it would join the lawsuit. Pursuant to court order and federal law, the original Complaint in this case remained under seal, while the United States conducted its investigation and determined whether to intervene. The person who initially files the lawsuit (“relator”) is entitled to a share of the proceeds. The relator in this case, Rafik Tawadrous, will receive 18% of the settlement proceeds ($300,000.00), or $54,000.00.
Craig W. Rupert, Special Agent in Charge, U.S. Department of Defense, Defense Criminal Investigative Service, stated that “Schemes to intentionally overbill the United States Department of Defense by any company or individual erode public confidence and undermine the mission of our military services. The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate fraud allegations in order to safeguard the American taxpayer and military members.”
Richard S. Hartunian, United States Attorney for the Northern District of New York, stated that “The United States Attorney’s Office is committed to pursuing those who defraud the government under the False Claims Act, especially those who defraud the Department of Defense. When the military is defrauded, less money is available to support and protect our troops abroad. Such fraud is inexcusable.”
This matter is assigned to Assistant U.S. Attorney Charles E. Roberts. News inquiries should be directed to Executive Assistant United States Attorney John Duncan, tele. (315) 448- 0672.
The relator, Rafik Tawadrous, is represented by David Koenigsberg, Esq., of New York City, tele. (212) 223-2100.
Indictment Alleges Child Porn Charges Against Reading ManRead the Press Release
Christopher Mailloux, 22, of Reading, Pennsylvania was charged by Indictment, filed today, with two counts of production of child pornography and two counts of possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 80 years imprisonment, a $1,000,000 fine, lifetime supervised release and a $400 special assessment.
The case was investigated by agents of the Federal Bureau of Investigation, the Berks County Detectives, and the Berks County District Attorney's Office. It is being prosecuted by Assistant United States Attorney Michelle Morgan.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8525
Philadelphia, PA 19106COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT HTTP://www.justice.gov/usao/pae
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indiana County Woman Charged with Stealing Postal Service Money Orders, Stamps and CashRead the Press Release
PITTSBURGH - An Indiana County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government money, United States Attorney David J. Hickton announced today.
The one-count indictment named Jo E. Sandoval, 54, of Ernest, Pa., as the sole defendant.
According to the indictment, from Sept. 30, 2011 and continuing until Feb. 16, 2012, Sandoval embezzled and converted to her own use $2,107.15 in U.S. Postal Service money orders, stamps and cash, to which property she knew she was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton and Special Assistant United States Attorney Koleen Kirkwood are prosecuting this case on behalf of the United States.
The United States Postal Service, Office of Inspector General, 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.
Illinois Man Sentenced to Serve 72 Months in Prison for Conspiring to Distribute Prescription Drugs over the InternetRead the Press Release
Michael P. Jackson, 40, of Carmi, Ill., was sentenced yesterday in the U.S. District Court for the Southern District of Florida to serve 72 months in prison for selling the prescription drug known as Adderall, from 2009 to 2012, to a Florida woman who operated an illegal Internet-pharmacy business. Jackson also was sentenced to three years of supervised release.
According to the Dec. 6, 2012, indictment, defendant Jackson supplied his co-defendant Lina Rodriguez with pills of Adderall, which contains amphetamine, a Schedule II controlled substance. As defendant Jackson was aware and intended, co-defendant Rodriguez resold the Adderall pills through an Internet business she owned and operated in southern Florida.
“This prosecution aims to curb the sale of dangerous drugs to United States citizens,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the U.S. Department of Justice. “The controlled substance drugs allegedly sold by the defendants were not dispensed by U.S. licensed pharmacies, and were not prescribed by any physician. Along with FDA, the U.S. Postal Inspection Service, and our other law enforcement partners, we will continue to protect our citizens from unsafe and potentially harmful drugs.”
Jackson pled guilty to the lead count of the indictment on March 11, 2013, which charged him and Rodriguez with conspiring to possess with the intent to distribute Adderall. Pursuant to his plea agreement, Jackson agreed not to oppose a judgment against him in the amount of $18,862, as gross proceeds of the offense to which he pleaded guilty. Rodriguez was sentenced to 72 months’ imprisonment on April 22, 2013.
The case was investigated by the Miami Field Office of the U.S. Food & Drug Administration’s Office of Criminal Investigations; the Miami Division of the U.S. Postal Inspection Service; and the Sacramento Field Office of the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Kevin J. Larsen of the U.S. Attorney’s Office for the Southern District of Florida, and Perham Gorji, Trial Attorney for the U.S. Department of Justice’s Consumer Protection Branch.
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.