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Friday 12 April 2013
St. Louis Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
A St. Louis man pled guilty on April 11, 2013, in federal court to being a member of a large cocaine distribution organization, the United States for the Southern District of Illinois, Stephen R. Wigginton, announced today. Mario Orduna, 46, pled guilty to Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine. He also admitted the Forfeiture Allegation contained in the Indictment.
Orduna is currently scheduled to be sentenced on July 19, 2013, in United States District Court in East St. Louis. He faces a potential sentence of ten years to life in prison, a fine of up to $5,000,000, at least 5 years of supervised release, and a $100 special assessment.
To date, twenty-nine other members of the organization have been convicted and sentenced.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Marshal Service, the Granite City Police Department, Fairmont City Police Department, Collinsville Police Department, Fairview Heights Police Department, Caseyville Police Department, Pontoon Beach Police Department, Park Hills (Missouri) Police Department, the St. Clair County Sheriff’s Department, and the Illinois State Police. This case is assigned to Assistant United States Attorney Randy G. Massey.
Springfield, Missouri Financial Advisor Nadia Cavner Pleads Guilty to Federal Interstate Stalking ChargeRead the Press Release
Memphis, TN – Nadia Cavner, 53, of Springfield, MO, pleaded guilty today to a criminal information charging her with one count of violating the federal interstate stalking statute, announced U.S. Attorney Edward L. Stanton III.
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According to the information, from July 9, 2011, until November 15, 2011, Cavner, and individuals employed by her, traveled from Springfield, MO to Memphis with the intent to injure, harass, or intimidate her daughter’s former boyfriend and his new girlfriend. These actions caused substantial emotional distress to the individuals, their families, and close acquaintances.
As stated in open court, Cavner utilized multiple means to stalk and harass the victims including making and causing others to make harassing and defamatory phone calls; leaving anonymous notes designed to harass and intimidate the victims, having the victims followed during trips; hiring people to disrupt the victims’ relationship; and paying for an associate to temporarily move to Memphis for the purpose of conducting surveillance upon the victims. In addition, Cavner sought to have electronic listening devices installed in the victims’ homes.
Cavner will be sentenced before U.S. District Judge John T. Fowlkes on Thursday, August 1, 2013, at 9:00 a.m. This case was investigated by the FBI. Assistant United States Attorney Brian K. Coleman is prosecuting this case on behalf of the government.Seattle Man Sentenced to Nine Years in Prison for Dealing High Powered Narcotic while Possessing Multiple FirearmsRead the Press Release
A Seattle man who had a home loaded with drugs, guns and cash, was sentenced today in U.S. District Court in Seattle to nine years in prison, announced U.S. Attorney Jenny A. Durkan. BERNARD AMIN MUSTAFA III, 37, was arrested April 19, 2012, when agents with a search warrant found multiple drugs, fentanyl, cocaine, methamphetamine, BZP, oxycodone and ecstasy at his Seattle home. Investigators also found more than $300,000 in cash and three firearms. One of the guns, a high powered rifle, was set in a tripod and aimed out at the front window of the home toward the street. At sentencing, U.S. District Judge Robert S. Lasnik said MUSTAFA “was a sophisticated drug dealer with deadly drugs and dangerous weapons.”
According to records filed in the case, the investigation of MUSTAFA began in early 2012 with the arrest of a street level dealer of fentanyl. MUSTAFA was identified as the dealer’s source of supply. When agents searched MUSTAFA’s home they found enough fentanyl for $200,000 worth of street sales. Fentanyl is very powerful, with users requiring only a few nanograms of the drug. Because it is usually diluted with a cutting agent before it is sold, and because those mixtures are generally inconsistent, it is a very dangerous drug on the street. Unless the product distributor competently and completely mixes the “cut” with the active ingredient, an unbalanced mixture can result, leading to overdose and death. According to DEA, the Community Epidemiology Work Group in King County reported 10 fentanyl overdose deaths in 2011.
In addition to the drugs in his home, MUSTAFA, a convicted felon, illegally possessed three firearms and body armor to protect the drugs and cash: a Remington brand .308 caliber rifle found near a safe containing money and drugs; an FNAR-brand 7.62 mm caliber rifle in the tripod on the table; and a Springfield Armory .40 caliber pistol found in the living room of the residence, next to a couch.
While MUSTAFA was incarcerated on these charges, his girlfriend was found dead from a drug overdose – fentanyl was one of the drugs in her system. The death is still being investigated by the Seattle Police. In asking the court for an 11 year sentence, prosecutors wrote: “Defendant’s criminal past has affected many people, ranging from those to whom he sold drugs, to his friends and to his family. He also placed the people closest to him in danger each time he had them in his home. The use, sale and possession of fentanyl undoubtedly contributed to the death of (his girlfriend).”
The case was investigated by the Drug Enforcement Administration and the Seattle Police Department. The case was prosecuted by Assistant United States Attorney Roger Rogoff.
Scripps Media Heir Convicted at Trial for Stealing Millions from FamilyRead the Press Release
PHILADELPHIA – An heir to the Scripps Media fortune was convicted today by a federal jury in Philadelphia for embezzling $3.6 million from members of his family to fund his lavish lifestyle, New Jersey U.S. Attorney Paul J. Fishman announced.
Michael Scripps, 36, of Detroit, was convicted of all seven counts of wire fraud in the Indictment against him in the third day of jury deliberations following a one and a half week trial. The case was prosecuted in Philadelphia by Assistant U.S. Attorneys from the U.S. Attorney’s Office for the Eastern District of Pennsylvania, supervised by the U.S. Attorney’s Office for the District of New Jersey as the former office was recused from the case.
According to the evidence at trial:
From November 2001 through October 2006, Michael Scripps persuaded his uncle and mother to transfer millions of dollars in trust funds to the Merrill Lynch Trust Co. and brokerage firm. With the assistance of Richard Gleeson, then a Merrill Lynch financial advisor in Media, Pa., Scripps used fraudulent authorizations to transfer his uncle’s and mother’s money to his own account at Merrill Lynch, resulting in $3.6 million in losses.
Gleeson awaits sentencing, having pleaded guilty to two counts of wire fraud for his participation in the scheme and testified at trial.
The jury heard testimony that Scripps used some of the ill-gotten gains to lead a playboy lifestyle, including by purchasing expensive jewelry including Tiffany earrings, a diamond ring, and Cartier necklace. He also used some of the stolen money to purchase a car for his girlfriend, four properties in New Orleans and for luxury travel across the U.S.
Each count of wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 15, 2013. Scripps could also be ordered to pay restitution to his victims as part of his sentence.
U.S. Attorney Fishman credited special agents of the Philadelphia FBI, Newtown Square Resident Agency, under the direction of Special Agent in Charge Edward J. Hanko, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Terri Marinari and L.C. Wright of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
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Defense counsel: Mark Durant Esq., Philadelphia; Paul W. Broschay Esq. and Michael R. Dezsi Esq., DetroitSavannah Couple Plead Guilty ToStealing over $150,000 from the ArmyRead the Press Release
SAVANNAH, GA: BO DUKES, 29, and EMILY DUKES, 29, husband and wife from Savannah, Georgia, pled guilty on Monday before United States District Court Judge William T. Moore, Jr. to conspiring to steal over $150,000 worth of property paid for by the Army.
Evidence presented at the guilty plea hearing showed that BO DUKES, a Unit Supply Specialist in the United States Army, ordered televisions, cameras, power tools, cooper wires and other property totaling over $150,000, which he was able to fraudulently bill to the Army through the General Services Administration (GSA). BO DUKES caused the fraudulently obtained items to be shipped to his personal residence. He and his wife EMILY DUKES then pawned the items for their own personal benefit.
United States Attorney Edward J. Tarver said, “These Defendants used Bo Dukes position of trust and his authorization to enter into transactions on behalf of the United States Government to steal from the American taxpayers. Their plan was both unsophisticated and hazardous. Neither the law nor this United States Attorney’s Office can allow this type of fraud to go unpunished.”
Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit said, "We are very pleased with the guilty pleas. Stealing money during a time of war is reprehensible and we, along with our federal counterparts, will continue to do everything in our investigative power to bring those responsible to justice."
General Services Administration Inspector General Brian D. Miller said, "By working with our law enforcement partners, we were able to stop these individuals from their continuous abuse of American taxpayer money and stealing of government goods. We will remain vigilant against people who use GSA for personal gain."
BO and EMILY DUKES both face a maximum penalty of 5 years in prison and a fine of up to $250,000. A sentencing date will be set after the United States Probation Office conduct a presentence investigation.
The DUKES’ conviction arose out of a joint investigation by the General Services Administration and the Department of the Army, Criminal Investigation Command, Major Procurement Fraud Unit. Assistant United States Attorney Tania D. Groover is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547Rudolph Lee Shane, Sr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 10, 2013, before U.S. District Judge Richard F. Cebull, RUDOLPH LEE SHANE, SR., a 64-year-old resident of Crow Agency, was sentenced to a term of:
Probation: 5 years, with 6 months house arrest
Special Assessment: $100
Fine: $5,000
SHANE was sentenced in connection with his guilty plea to tampering with a victim.
In an Offer of Proof filed by Assistant U.S. Attorneys Marcia Hurd and Lori Harper Suek, the government stated it would have proved at trial the following:
On February 23, 2012, the Federal Bureau of Investigation received a report alleging that SHANE had harassed a victim in a pending criminal case in federal court.
On February 21, 2012, SHANE had contacted the victim who described the meeting as intimidating and stated she was concerned for her safety. She believed he wanted her to "drop charges" or change her story. The victim did not initially know who he was and had no idea how SHANE knew how to find her.
On February 22, SHANE called the victim's cell phone twice and left a message. In addition, SHANE's daughter contacted the victim at the request of SHANE. SHANE had also called the victim's mother earlier in the case and asked her to talk to the victim about dropping the charges.
When interviewed, SHANE admitted the contact and indicated he did so because he believed that the victim would take pity on the defendant in the case and "do the right thing." When asked what he was thinking by contacting the victim, SHANE reported that he thought if the victim withdrew her complaint or changed her mind, it would help the defendant.
The investigation was conducted by a cooperative effort between the Federal Bureau of Investigation and Bureau of Indian Affairs.
Robert Dean Boucher Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 8, 2013, before U.S. District Judge Sam E. Haddon, ROBERT DEAN BOUCHER was sentenced to a term of:
Prison: 135 months
Special Assessment: $100
Supervised Release: 5 years
BOUCHER was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
During January 2012, law enforcement originally became alerted to a methamphetamine distribution ring from Washington state to Great Falls.
In June 2012, law enforcement learned of an individual, Mark Abresch, who made repeated trips from Great Falls to Washington to obtain methamphetamine to re-sell in Great Falls.
On June 29, 2012, a CI (confidential informant) informed the drug task force that Abresch was returning to Great Falls from Washington with methamphetamine. The task force arranged for a controlled drug buy from Abresch near the University of Great Falls. The CI purchased methamphetamine. The CI then continued to make numerous controlled drug buys from Abresch over the next few days.
Law enforcement located Abresch's car in early July 2012, and the task force tracked this car from Great Falls to Spokane, Washington. The car stayed in Spokane for less than two hours before returning to Great Falls. Law enforcement initiated a traffic stop of the car just outside of Great Falls and they obtained two ounces of methamphetamine. Abresch, the driver of the car, told law enforcement he had traveled to Spokane to buy methamphetamine from "Bert." He had been supplied by Bert, who was identified as BOUCHER, since February or March 2012. In total, Abresch believed he had obtained and distributed approximately ten ounces of methamphetamine that he received from BOUCHER.
Abresch told law enforcement that BOUCHER provided him with a GPS system in order for Abresch to find BOUCHER's house in Spokane. Once Abresch obtained the methamphetamine from BOUCHER, Abresch would sell the methamphetamine by the gram for $100 around Great Falls. BOUCHER sold the methamphetamine to Abresch for $1,400 an ounce.
Abresch and BOUCHER also dealt methamphetamine with other individuals in Great Falls. The methamphetamine dealing continued into the fall of 2012. During the end of October 2012, detectives interviewed additional witnesses, several of which stated they had obtained methamphetamine from BOUCHER.
BOUCHER stored the methamphetamine in the hood and trunk of his car. He then divided the methamphetamine between the sellers who obtained the methamphetamine on credit. BOUCHER stayed in town at an individual's house until the money was collected. This individual would then repackage the methamphetamine into eight-ball baggies and distribute it to other sellers.
Law enforcement seized over 50 grams of pure methamphetamine in this investigation.
Abresch pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BOUCHER will likely serve all of the time imposed by the court. In the federal system, BOUCHER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the High Intensity Drug Trafficking Area (HIDTA) Task Force - Russell County Drug Task Force.
Ricky Allen Dennis Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 11, 2013, before U.S. District Judge Richard F. Cebull, RICKY ALLEN DENNIS, a 38-year-old resident of Billings, appeared for sentencing. DENNIS was sentenced to a term of:
Prison: 73 months
Special Assessment: $600
Supervised Release: 3 years
DENNIS was sentenced for (4) counts of being a felon-in-possession of a firearm and conspiracy to commit a robbery affecting interstate commerce.
The case was prosecuted by Assistant U.S. Attorneys Marcia K. Hurd and Jessica T. Fehr. Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DENNIS will likely serve all of the time imposed by the court. In the federal system, DENNIS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Reno Woman Sentenced to over Six Years in Prison for Loan FraudRead the Press Release
RENO, Nev. – A woman who fraudulently obtained a $228,000 home equity loan in her father and mother-in-law’s names by forging their signature and the signatures of others, has been sentenced to 81 months in prison and ordered to pay $228,000 in restitution for her guilty pleas to identity theft and money laundering charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Tandy Anne Kertanis, 33, of Reno, Nev., was sentenced on Thursday, April 11, 2013, by U.S. District Judge Larry R. Hicks. Kertanis pleaded guilty on Aug. 20, 2012, to one count of money laundering and one count of aggravated identity theft.
According to the court records, on about June 19, 2007, Kertanis called Wells Fargo Bank and identified herself as Joann L. Kertanis and applied for a home equity loan in the names of Robert P. Kertanis and Joann L. Kertanis, her father and mother-in-law. Neither Robert nor Joann Kertanis was aware of the application, nor did they authorize Tandy Kertanis to apply for the loan. In late June 2007, Tandy Kertanis returned a package of loan documents to Wells Fargo. The documents contained the forged signatures of Joann L. Kertanis and/or Robert P. Kertanis, as well as forged signatures of a notary public and the defendant’s mother. The defendant submitted updated loan request documents on July 3, 2007, again containing the forged signatures of her father and mother-in-law, as well as the forged signature of the notary public, her mother, and a Reno attorney with whom she had consulted on a prior occasion. On about July 6, 2007, Wells Fargo Bank approved the home equity loan and electronically deposited $228,000 into the defendant’s U.S. Bank account in Reno.
On July 10, 2007, Tandy Kertanis allegedly transferred $180,000 from her U.S. Bank checking account into a money market account in the name of her husband at Linsco/Private Ledger in Reno. On July 13, 2007, Kertanis allegedly purchased a Toyota truck at Reno Toyota for $33,534, using the home equity loan monies she unlawfully obtained from Wells Fargo.
On Feb. 22, 2012, while Kertanis was awaiting trial in this case, her attorney filed a motion to continue the trial alleging that Kertanis’ young child was suffering from several serious health problems. Attached to the motion were letters from four medical specialists in Reno and California. These medical specialists were contacted and stated that the letters were false and that the young child was not suffering from any serious disease.
Kertanis is free on a personal recognizance bond and must self-report to federal prison on June 10, 2013.
The case was investigated by the FBI and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.
Today's announcement is part of efforts underway by President Obama's 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 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 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 www.stopfraud.gov.
Ramona Tax Preparer Sentenced for Murder-For-Hire, Witness Tampering, Filing False Tax Returns with the IRS, Identity Theft, Money Laundering, and FraudRead the Press Release
San Diego - Former Internal Revenue Service agent-turned-tax preparer Steven Martinez was sentenced today by U.S. District Court Judge William Q. Hayes to almost 24 years in prison for defrauding clients out of more than $11 million and then plotting their murders to prevent them from testifying about the theft.
In addition to a 286-month sentence, the judge ordered Martinez to pay more than $14 million in restitution to the victims, the IRS and the California Franchise Tax Board. Judge Hayes also entered a preliminary order of forfeiture as to certain real and personal property, including an $11 million money judgment. Following Martinez’s service of his sentence, Judge Hayes placed him on five years of supervised release.
In comments at today’s hearing, Assistant U.S. Attorney Joseph Orabona argued for a significant sentence in part because Martinez meticulously planned the murders by giving a would-be assassin – who was a cooperating witness for the FBI - detailed instructions and information about each of the four victims contained in “packets.” One of the exchanges between Martinez and the cooperating witness was captured on video.
“These victims were surveilled. They were watched. Their habits were documented. It’s disturbing,” Orabona said. “This was a cool and calculating individual. He knew how the victims lived. He’s explaining it to the hit man on the video.”
Before imposing a sentence, Judge Hayes noted that the defendant did not make a heat-of-the moment decision to commit a crime. Rather, it was a long-term fraud spanning years and culminating with the carefully planned murder-for-hire plots. “Mr. Martinez in my view had some time to think about what he was doing.” He called the defendant’s actions “cold blooded.”
U.S. Attorney Laura Duffy said she was pleased with the outcome of the prosecution. “This is a case of greed so extreme that what began as serious – but not violent - white-collar crimes almost escalated to the murders of four people. Fortunately FBI intervention prevented the violence and today justice was served with a decades-long sentence. As tax day quickly approaches, this is a reminder that anyone who chooses to undermine the integrity of our tax system risks prosecution.”
FBI Special Agent in Charge, Daphne Hearn, commented, “Once the FBI became aware of Mr. Martinez’s murder-for-hire plot, FBI agents took immediate steps to disrupt this plot. In doing so, the FBI ensured that no harm would come to potential witnesses or others. I commend the efforts of the agents and prosecutors who worked tirelessly in this investigation.”
N. Dawn Mertz, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office, commented: “The activities of Steven Martinez are an example whereby tax crimes, malicious financial greed and a blatant disregard for the law can turn into potential violent criminal activity. Today’s sentencing reinforces IRS Criminal Investigation’s commitment to pursue those committing tax and financial crimes and to partner with our law enforcement community to bring justice to those who behave as if they are above the law.”
Martinez pleaded guilty on August 10, 2012, to criminal charges including murder-for-hire, witness tampering involving attempted murder, solicitation of a crime of violence, mail fraud, filing false tax returns, Social Security fraud, aggravated identity theft, and money laundering. Martinez pleaded guilty to 12-counts in a superseding indictment.
As part of his guilty plea, Martinez admitted that in late February 2012, he solicited a third party to murder four witnesses with the intent to prevent their testimony in his pending criminal tax case.
The third party contacted the San Diego division of the FBI on February 28, 2012 to report the murder-for-hire plot by Martinez and agreed to cooperate with the FBI in the investigation. According to the complaint, a subsequent meeting between the FBI’s cooperating witness and Martinez was recorded and videotaped by the FBI.
In reference to two of the murder targets, Martinez told the would-be assassin “he could make him rich for the rest of his life, $100,000 cash, if he eliminated the lady in Rancho Santa Fe and the lady in La Jolla,” according to court records. The cooperating witness said Martinez “suggested that the former employee use two different pistols for the murders and that he acquire a silencer.”
Martinez admitted in court that he tried to prevent the former clients’ testimony by offering the FBI’s cooperating witness $100,000 to murder them. He admitted he provided the third party with four written packets of detailed information about the former clients, including photos of the soon-to-be murder victims, their homes and personal information. Martinez admitted that once the murders took place, he would pay the perpetrator $40,000 in cash, followed by the remaining $60,000 in cash within 72 hours of the murders.
In addition, Martinez admitted that he filed false tax returns and defrauded his clients by stealing over $11 million in tax payments. Martinez admitted that he presented his clients with completed tax returns indicating that they owed a significant amount of tax. He requested that his clients write checks payable for the amount of taxes due and owing to an alleged client trust account (instead of directly to the IRS or the California Franchise Tax Board).
Martinez also convinced these same clients to write checks during the tax year for estimated tax payments to the same alleged client trust accounts. Rather than deposit these checks into a true trust account, Martinez admitted that he took the checks and deposited them into several nominee bank accounts. In an attempt to conceal his fraud, Martinez admitted that he filed a different set of false tax returns indicating that his clients owed little or no income tax.
Martinez admitted that he converted approximately $11 million in stolen taxpayer funds for his own personal benefit, and used them to make home improvements, purchase real estate, purchase a beach home in Mexico, pay for the use of a private airplane, make investments of more than $2 million in other entities, and make payments of more than $2 million for his personal use credit cards and loans.
As part of his fraudulent tax scheme, Martinez admitted that he committed Social Security fraud and aggravated identity theft by using the Social Security numbers of his clients without authorization when he filed the false tax returns with the IRS. Martinez admitted he committed mail fraud by mailing the false tax returns to the IRS. Martinez also admitted that he laundered approximately $2 million through nominee bank accounts for his own business and personal use.
Finally, Martinez admitted that he knowingly and intentionally filed false personal income tax returns for tax years 2004, 2005, 2006, and 2007.
DEFENDANT Criminal Case No. 11CR1445WQH Steven Martinez Age: 51 Ramona, California CHARGES THAT DEFENDANT PLED GUILTY TO:Count 4: Title 18, United States Code, Section 1341 - Mail Fraud
Maximum Penalties: 20 years of imprisonment and a fine equal to twice the gross loss caused to persons by the offenseCount7: Title 26, United States Code, Section 7206(2) - Procuring False Tax Returns
Maximum Penalties: 3 years of imprisonment and $250,000 fineCounts 21: Title 42, United States Code, Section 408(a)(8) - Social Security Fraud
Maximum Penalties: 5 years of imprisonment and $250,000 fineCounts 33: Title 18, United States Code, Section 1028A - Aggravated Identity Theft
Maximum Penalties: 2 years of imprisonment, consecutive to any other sentenceCount 47: Title 26, United States Code, Section 7206(2) - Making False Tax Returns
Maximum Penalties: 3 years of imprisonment and $250,000 fineCount 49: Title 18, United States Code, Section 1957 - Money Laundering
Maximum Penalties: 10 years of imprisonment and $250,000 fineCounts 50 through 53: Title 18, United States Code, Section 1512(a)(1)(A) - Witness Tampering
Maximum Penalties: 30 years of imprisonment and $250,000 fine per countCount 54: Title 18, United States Code, Section 1958 - Use of a Facility of Interstate Commerce in Commission of Murder-For-Hire
Maximum Penalties: 10 years of imprisonment and $250,000 fineCount 55: Title 18, United States Code, Section 373 - Solicitation of a Crime of Violence
AGENCIES
Maximum Penalties: 15 years of imprisonment and $250,000 fineInternal Revenue Service, Criminal Investigation
Federal Bureau of InvestigationQuad Cities Man Sentenced to 30 Years Imprisonment for Armed Bank RobberyRead the Press Release
DES MOINES, IA – Des Moines area real estate developer John C. Kline was sentenced to 30 months in prison for his participation in a bank fraud scheme, announced United States Attorney Nicholas A. Klinefeldt. Chief Judge James E. Gritzner also ordered Kline to serve a term of 5 years of supervised release following release from prison, pay $1,169,490.72 restitution and directed Kline to pay a $200 special assessment to the crime victims fund.
Kline pleaded guilty to committing bank fraud on January 11, 2013, in connection with a condominium development project on the south side of Des Moines, known as the Meadow Cove project, and a residential development project in Dallas County, known as the Heritage Hills project. Kline had been charged with diverting funds borrowed for those projects to pay for a variety of other items and projects. A consortium of at least twelve Iowa and Missouri banks participated in loans to the projects. Kline’s co-defendant, Randal L. Walters, was sentenced by Chief Judge Gritzner in February of 2013.
The case was investigated by the Federal Bureau of Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Producer of Fraudulent Identification Documents Pleads Guilty in Federal CourtRead the Press Release
Mario Bravo Romualdo, 27, of Mexico pleaded guilty today in U.S. District Court to document fraud, arising from his possession of devices designed for making false federal and state identification documents, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
Romualdo was arrested on October 24, 2012 while attempting to sell fraudulent identification documents including a Social Security Card and an Employment Authorization Card. He was indicted by a federal grand jury on November 29, 2012, along with co-defendants Isaias Hernandez Ramos, Juan Tello Leynes, and Maria Marquez Ramirez, who were charged with document fraud and conspiring with Bravo Romualdo to produce, transfer, and possess false identification documents, including false Social Security Cards and false Permanent Resident Cards. Charges against the co-defendants are pending.
“The production and sale of false identification documents is a threat to our national security and to the integrity of government programs,” said Acting U.S. Attorney David Rivera. “This office will remain committed to prosecuting those who commit document fraud.”
"Document fraud is an incredibly serious crime that potentially enables terrorists and other criminals to enter the United States under false pretenses," said Homeland Security Investigations New Orleans Special Agent in Charge Raymond R. Parmer Jr. "Homeland Security Investigations will aggressively investigate and seek prosecution of individuals who threaten national security by producing fraudulent government documents.” Parmer oversees a five-state area to include Tennessee, Alabama, Arkansas, Louisiana and Mississippi.
During the plea hearing, Bravo Romualdo admitted possessing document-making devices, including 17 blank cards bearing a seal of the United States Department of Justice; 54 blank cards bearing the names and emblems of various states; and a specialized card printer and other electronic equipment designed for manufacturing false identification documents. Romualdo further admitted using these devices to produce false documents, including false Permanent Resident Cards.
Romualdo is scheduled to be sentenced by Senior Judge John T. Nixon on July 26, 2013. He faces up to 15 years in prison and a fine of up to $250,000.
This case was investigated by agents with the U.S. Department of Homeland Security, Homeland Security Investigations and by the Tennessee Department of Safety and Homeland Security Identity Crimes Unit. The case is being prosecuted by Assistant United States Attorney William F. Abely.
An indictment is merely an accusation and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.
Pine Ridge Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man convicted of Sexual Abuse of a Minor was sentenced on April 8, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Benjamin Samuel Leonard, age 57, was sentenced to 30 months’ imprisonment, 5 years’ supervised release and ordered to pay $100 to the Victim Assistance Fund.
In August 2010 at Pine Ridge, Leonard engaged in a sexual act with a child under the age of 16. He pled guilty on December 26, 2012.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
People Reminded of Stiff Penalties for Violating Tax Laws as Filing Deadline ApproachesRead the Press Release
Several Ohioans have been found guilty and sentenced for violating federal tax laws over the past few months, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Denise Rocawich, Acting Special Agent in Charge of the IRS-Criminal Investigation, Cincinnati Field Office.
As the 2013 tax filing deadline approaches, these cases serve as reminders that there are civil and sometimes criminal penalties to filing erroneous tax returns.“Tax day is not fun, but the vast majority of Americans who properly report and pay their fair share need to know that we will aggressively prosecute those who shirk or flaunt their obligations,” Dettelbach said.
“With the April 15 tax deadline looming, it is important for people to have confidence that when they pay their taxes, their neighbors and competitors will do the same,” Rocawich said. “Every time someone in America cheats on their taxes, there are over 300 million victims.”
Details on a few cases over the past year:
Nelida I. Velasco of Chardon was sentenced last year to more than three years in prison for conspiracy to make false claims, making false claims, misuse of Social Security account numbers, and aggravated identity theft. A co-defendant, David T. Tufts, also of Chardon, was previously sentenced to 4 years imprisonment. Both pleaded guilty to the charges, which involved the filing of at least 35 false tax returns claiming at least $155,000 in false refund claims using stolen identification information of the 35 purported claimants.
Aesha Johnson of Beachwood was sentenced last year to 21 months in prison for making false income tax refund claims totaling approximately $84,244 for tax clients.
John W. Hufgard of Bath was sentenced in February to 18 months imprisonment for attempting to evade approximately $397,659 of his personal income tax liabilities for 2007 through 2009. The taxes were owed on unreported income Hufgard received from selling manufacturing racks to metal scrap dealers for cash. Hufgard pleaded guilty to the charges in November 2012.
Steven R. Hinz, Heather L. English, Patricia A. Polk, and William E. Phillips, III were sentenced in earlier this year prison for conspiracy and making false claims for income tax refunds. Led by Hinz, the conspiracy involved filing at least 17 false tax returns claiming refunds totaling more than $3 million based on fictitious amounts of tax withholdings under the so-called “OID process.” All four defendants pleaded guilty in October 2012. Hinz, formerly of Youngstown, was sentenced to nine years in prison, while English was sentenced to 2 1/2 years.
Brandon M. Mace of Canton pleaded guilty in February to two counts of making false claims for income tax funds totaling nearly $5.5 million. Mace prepared and filed false tax returns containing those claims while incarcerated in Ohio on state charges. Mace is scheduled to be sentenced in May.
Participant in $100 Million Medicare Fraud Sentenced in Manhattan Federal Court to 135 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that HERAYER BAGHOUMIAN was sentenced today to 135 months in prison for his role in a $100 million massive Medicare fraud scheme. BAGHOUMIAN pled guilty to racketeering in March 2012, and was sentenced today by U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentence, Herayer Baghoumian becomes the latest defendant who took part in this widespread fraud to be punished for his conduct. At a time when the Medicare trust fund is under great strain, his conduct is particularly egregious.”
According to the Indictment and other documents filed in this case:
From 2006 through 2010, BAGHOUMIAN and others participated in a nationwide Medicare scam that fraudulently billed Medicare for over $100 million. As part of the conspiracy, the defendant created dozens of “phantom clinic” health care providers that existed only on paper, had no doctors, and treated no patients. The scheme involved at least 118 fraudulent Medicare providers that were located in approximately 25 states, and that submitted fraudulent bills for at least approximately $100 million, and received approximately $35.7 million in reimbursements from Medicare.
In addition to his prison term, Judge Gardephe sentenced BAGHOUMIAN, 57, of Burbank, California, to three years of supervised release, and imposed a $100 special assessment fee. Judge Gardephe also ordered BAGHOUMIAN to forfeit $472,545, and property he acquired with the proceeds of the crime, including two homes in California and a Maserati.
Of the 28 defendants charged in U.S. v. Armen Kazarian, et al., 16 have now been sentenced. Six others have pled guilty and are awaiting sentencing. Charges have been dismissed against one defendant, and remain pending against five defendants. The charges pending against the five outstanding defendants are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Mr. Bharara thanked the Federal Bureau of Investigation, the New York City Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Department of Health and Human Services for their work in the investigation.
The prosecution is being handled by the Office’s Organized Crime Unit. Assistant U.S. U.S. Attorneys Jennifer Burns and Harris Fischman are in charge of the prosecution.
Oxycodone Traffickers Face Federal ChargesRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces the return of an indictment charging Abdul Cunningham and Jana Harris-Cunningham with five counts of wire fraud, five counts of filing a false claim with the Internal Revenue Service, four counts of theft of government property, and five counts of aggravated identity theft. If convicted, each faces a maximum penalty of 20 years in federal prison for each wire fraud count, five years in federal prison for each false claim count, ten years in federal prison for each theft of government property count, and a consecutive sentence of two years for each aggravated identity theft count. The indictment also notifies Cunningham and Harris-Cunningham that the United States intends to seek a money judgment in the amount of $560,731.00, the traceable proceeds of the alleged offenses. Cunningham and Harris-Cunningham were arrested on a criminal complaint on March 11, 2013, and March 28, 2013, respectively.
According to the indictment, Cunningham and Harris-Cunningham engaged in a scheme to defraud the U.S. Treasury Department by filing fraudulent income tax returns and negotiating fraudulent tax refunds using stolen identities, commonly referred to as Stolen Identity Refund Fraud (SIRF). It is alleged that, as part of their scheme, they used the stolen identities, along with false and fraudulent wage and withholding information, to prepare, and to cause to be prepared, fraudulent federal income tax returns falsely claiming refunds. After filing the false returns, they accepted, negotiated, and “swiped” reloadable debit cards, knowing the cards contained fraudulently obtained income tax refunds. It is alleged that Cunningham and Harris-Cunningham filed 145 false claims with the IRS for tax years 2010 and 2011. These false claims totaled $816,790. Of that amount, the IRS paid out $560,731.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and the Rockledge Police Department. It will be prosecuted by Assistant United States Attorney David Haas.
Owner of Marijuana Dispensary Sentenced to Prison for Drug DealingRead the Press Release
A 32–year-old Seattle woman who co-owned and operated two “medical marijuana” dispensaries, was sentenced today in U.S. District Court in Seattle to 42 months in prison for conspiracy to distribute marijuana and conspiracy to engage in money laundering, announced U.S. Attorney Jenny A. Durkan. JING JING MO, 32, was a co-owner of Seattle Cannabis Cooperative with locations in the Rainier Valley and Greenwood. She and her partner, Craig Douglas Dieffenbach, 61, pleaded guilty in August 2012. Both admitted selling marijuana for profit under the guise of running a cooperative for sick people. At sentencing, Chief U.S. District Judge Marsha J. Pechman said the defendants “abused the public trust” when they distributed marijuana to people without medical authorizations and in large amounts. “They did it for greed,” Chief Judge Pechman said.
In her plea agreement, Mo admitted offering to sell 25 pounds of marijuana for distribution across the country. The couple also admitted laundering funds from the sale of marijuana to pay to modify homes for marijuana production. The pair were also tied in to other drug traffickers including one distributing substantial amounts of ecstasy. The couple admitted operating the marijuana stores for profit, selling pound quantities of marijuana to people who presented no medical authorization card.
In asking for a 42 month sentence, prosecutors told the court, “Ms. Mo was not engaged in some selfless attempt to help truly sick people access marijuana for medical purposes. Instead, she was simply dealing drugs, for profit, in blatant violation of both the letter, and the spirit, of state and federal law. Calling her operation a medical marijuana dispensary was little more than a cynical attempt to hide her activities behind a fiction of quasi-legality.”
MO is a citizen of Singapore who likely will be deported following her prison term.
The case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Vince Lombardi.
Osnin Isaac Urbina-maradiaga Sentenced for Illegal Use of A Social Security NumberRead the Press Release
OSNIN ISAAC URBINA-MARADIAGA, age 25, a citizen of Honduras, was sentenced today in federal court by U. S. District Judge Lance M. Africk, announced U. S. Attorney Dana Boente. URBINA was sentenced to approximately five months imprisonment. In addition to the term of imprisonment, Judge Africk ordered that URBINA be placed on one year of supervised release following his term of imprisonment, during which time the defendant will be under federal supervision and risk an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on January 24, 2013, URBINA pled guilty to a one-count indictment admitting that on October 19, 2012, he falsely represented that a Social Security number had been assigned to him by the Commissioner of Social Security with intent to deceive, for the purpose of obtaining a Louisiana Identification Card at a Louisiana Office of Motor Vehicles located in St. John the Baptist Parish. URBINA also admitted that he was illegally present in the United States.
This case was investigated by United States Immigration and Customs Enforcement - Enforcement and Removal Operations and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Ogden Pleads Guilty to Wire, Securities Fraud; Agreement Includes Recommendation for 10-Year Sentence; Millions in RestitutionRead the Press Release
SALT LAKE CITY – Wayne Reed Ogden, age 48, of Koosharem, Utah, charged with wire and securities fraud in connection with a Ponzi scheme involving real estate, pleaded guilty Friday morning in federal court to one count of wire fraud and one count of securities fraud. In a separate case tried to a federal jury earlier this year, Ogden was convicted of mail and wire fraud in connection with another real estate Ponzi scheme. As part of the plea agreement executed Friday, federal prosecutors and Ogden agreed to recommend 120-month concurrent sentences in both cases. Ogden also admitted to owing restitution of more than $3 million in each case.
Ogden admitted, as a part of the plea agreement, that from September 2005 to September 2006, he devised and executed a scheme to defraud investors. Throughout the scheme, Ogden was on parole with the State of Utah stemming from a 1998 conviction in connection with a third real estate Ponzi scheme. As a part of his parole restrictions, Ogden was prohibited from participating in and soliciting investment funds or any activities related to real property investments. Ogden admitted that, despite these restrictions, he participated in investment activities involving real property and misled his parole officer into believing he was in compliance with conditions of his parole.
Ogden admitted to recruiting his brother, co-defendant Terry Ogden, age 47, of Mesquite, Nevada, to form Paradigm Acceptance, LLC and directed him to open a business bank account for the company. Ogden admitted he operated, controlled, and managed Paradigm throughout the fraud period and that he misrepresented to his parole officer that he worked for Terry and that he had limited responsibilities with the company, knowing that his parole officer would have taken immediate steps to terminate his involvement with the company if he knew the truth.
Ogden admitted creating a business plan that included finding financially distressed homeowners; negotiating their personal debts and/or mortgages; using investor money to pay off negotiated personal debts and/or mortgages; securing refinancing for homeowners; and requiring a fixed fee of $1,500 plus a percentage of money saved by virtue of Paradigm’s negotiation efforts. Throughout the fraud period, Ogden, or other individuals acting at his direction, solicited investors to invest in the business plan, promising returns ranging from 20 percent over a two to four-week period to as much as 100 percent over several days. Investors also were told that their investments involved little or no risk because they were secured by homeowner properties.
Ogden admitted that rather than using investor funds to pay off homeowner debt, he used those funds to make Ponzi payments to prior investors, pay business expenses, and pay personal expenses for himself and his brother, Terry. Ogden admitted that beginning in May 2006, Paradigm began receiving complaints from investors who were owed returns or were demanding the return of their principal. In response to the complaints, Ogden and his brother issued checks to investors knowing they would be returned for insufficient funds until new investor money was received. They also provided investors with false excuses, blaming the delayed returns on bank errors, failures in the fedwire system, and delayed loan refinancing. Despite these complaints and problems, Ogden and his brother continued to solicit new investments into Paradigm, knowing that investor funds would be diverted and used primarily to make Ponzi payments to prior investors.
The case against Terry Ogden, who was also charged in the indictment, is pending.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City. The FBI, SEC, Utah Attorney General’s Office, Weber County Attorney’s Office, Utah Division of Real Estate, Utah Division of Securities, Utah Insurance Fraud Division, and the Utah Department of Corrections contributed to the investigation.
Oakton Dentist Sentenced for Narcotics Distribution, Health Care Fraud & Identity TheftRead the Press Release
ALEXANDRIA, Va. – Hamada Makarita, 51, of Oakton, Va. was sentenced to 25 months in prison, followed by a term of supervised release for using his position as a dentist to illegally distribute prescription medication and for using the identity of another dentist to fraudulently bill an insurance company for more than $160,000 in claims.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the sentencing by United States District Judge Leonie M. Brinkema.
On November 16, 2012, after a multi-week trial, Makarita was found guilty by jury on multiple counts to include conspiracy, health care fraud, aggravated identity theft, and five counts of dispensing controlled substances.
According to court records and evidence at trial, Makarita owns and operates a dental practice in Oakton, Va., and advertised online at http://www.fixasmile.com/. From about 2007 to 2012, Makarita illegally distributed and dispensed prescription medicine (Fentanyl, Vicodin, and Valium) to patients, employees, and at least one girlfriend, all without a legitimate dental purpose and beyond the bounds of a dental practice. Makarita directed those who received the prescriptions he issued to return to him some or all the prescribed medicine. On multiple occasions, Makarita would distribute prescription pills to patients and at least one girlfriend in social settings and for sexual purposes. On one occasion, the defendant took explicit photographs of an unconscious girlfriend who was under the influence of alcohol and Vicodin.
In addition, the jury found that Makarita provided more than $160,000 in services to his family members and billed them to an insurance provider in violation of the provider’s contract. He billed the services under the name of another dentist who did not practice in Makarita’s office at that time. Makarita received more than $91,000 in reimbursement from the provider for these fraudulent claims.
The investigation was conducted by the FBI’s Washington Field Office. Special Assistant U.S. Attorneys Mazen M. Basrawi and Danya E. Atiyeh and Assistant U.S. Attorney Gene Rossi prosecuted the case on behalf of the United States.
This case is part of an Organized Crime and Drug Enforcement Task Force (“OCDETF”) investigation (Operation “Cotton Candy”), which has been focusing on the illegal distribution by numerous doctors, pharmacists, nurses, and patients of pain medication. This OCDETF matter has secured more than 200 drug-trafficking convictions.
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/.North Carolina Man Charged in Odometer Tampering SchemeRead the Press Release
In an information made public today, the United States charged Francis Marimo, of Raleigh, N.C., with two counts of odometer tampering.
The information, filed in U.S. District Court for the Eastern District of North Carolina on April 10, 2013, alleges that from 2008 through 2012, Marimo fraudulently caused odometers in used motor vehicles to be altered to reflect false, low mileages. According to the Information, Marimo purchased used vehicles primarily through online advertisements, replaced the existing odometers with odometers showing lower mileages, and then sold the vehicles to consumers while representing the low mileages as accurate. One of the vehicles described in the Information was “rolled back” more than 100,000 miles.
“Consumers rely on mileage readings to determine the value and safety of used vehicles,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “Victims of odometer fraud lose thousands of dollars on what can turn out to be unreliable and potentially dangerous vehicles. We will continue to prosecute these schemes wherever we find them.”
The North Carolina Division of Motor Vehicles and the National Highway Traffic Safety Administration Office of Odometer Fraud Investigation investigated this case. The case is being prosecuted by the Justice Department’s Consumer Protection Branch.
The charges in the information are only allegations, and the defendant is presumed innocent unless and until proven guilty.
New Jersey Man Sentenced for Child ExploitationRead the Press Release
PHILADELPHIA – Patrick Mergen, 40, of Sewell, NJ, was sentenced yesterday to 25 years in prison for using a child to produce child pornography. He pleaded guilty on November 20, 2012. In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered 10 years of supervised release, computer monitoring, no unsupervised contact with minors, and sex counseling.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Michael Levy.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525New Haven Man Charged with Tax Fraud OffensesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned a 15-count indictment charging WILLIE E. McKAY, 38, of New Haven, with aiding and assisting in the preparation and filing of false federal income tax returns. The indictment was returned on April 9 and unsealed today.
According to the indictment, McKAY, the pastor of The Love Temple Church, Inc. in West Haven, provided individual tax preparation services to members of his church and others. In the course of preparing numerous individual federal income tax returns for clients in 2007 and 2008, McKAY improperly reduced the amount of tax due in a variety of ways, including falsely reporting wages and withholdings, and falsely claiming deductions for state taxes, personal property taxes, real estate taxes, mortgage interest payments, qualified mortgage insurance payments, charitable contributions, and business expenses.
The indictment further alleges that McKAY altered wage and withholding amounts appearing on the W-2 forms he received from his clients.
The indictment charges McKAY with 15 counts of aiding and assisting in the preparation and filing of false federal income tax returns, a charge that carries a maximum term of imprisonment of three years and fine of up to $250,000 on each count.
McKAY appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport, pleaded not guilty to the charges and was released on a $150,000 bond.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is assigned to U.S. District Judge Janet C. Hall in New Haven.This matter is being investigated by the Internal Revenue Service – Criminal Investigation and the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Peter S. Jongbloed.
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Tom Carson
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[email protected]More Defendants Sentenced for Roles in Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Three defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced today, in federal court in Wichita Falls, by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
William Corey Peeler, 33, was sentenced to 162 months in federal prison; Cleveland Wilson, 52, was sentenced to 160 months in federal prison; and Nancy Arlene Freeman, 39, was sentenced to 65 months in federal prison.
Peeler and Wilson each pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and to manufacture methamphetamine. Freeman pleaded guilty to one count of possession with intent to distribute methamphetamine.
This is the second group of convicted defendants to be sentenced in this case in which 28 of the 30 defendants charged in the conspiracy have entered guilty pleas. Late last month, Randall Wayne Ezzell, 46, was sentenced to 240 months in federal prison; Jason Alan Haney, aka “A.J. Haney,” 27, was sentenced to 235 months in federal prison; and Troy Radford, 36, was sentenced to 24 months in federal prison. The cases against two of the defendants have not been resolved. All 30 of the defendants charged in the superseding indictment that was returned by a federal grand jury in October 2012, are in custody.
According to documents filed in the case, Peeler admitted that on numerous occasions between August 2011 and September 4, 2012, he sold quantities of methamphetamine, which defendant Steve Ysasaga supplied, to customers in the Wichita Falls area. On one occasion, according to Peeler, Ysasaga brought nine ounces of methamphetamine, a digital scale and small plastic bags to Peeler’s apartment where Ysasaga weighed and repackaged it. Ysasaga gave Peeler one gram of the methamphetamine for allowing him to use his apartment. Peeler also admitted that on various occasions during the conspiracy he accompanied Ysasaga to assist him in collecting drug debts by intimidating the debtors.
Wilson admitted that on multiple occasions between August 2011 and August 2012, he manufactured, or cooked, anhydrous methamphetamine for Ysasaga. Ysasaga supplied the pseudoephedrine tablets and Wilson obtained the rest of the necessary ingredients to manufacture the methamphetamine.
When officers with the Wichita Falls Police Department executed a traffic stop on Freeman’s vehicle in a convenience store parking lot on May 8, 2012, a drug-detecting canine alerted to the presence of narcotics on a backpack that she had placed in the back seat. Officers search the backpack and located 10 small plastic bags containing methamphetamine and two digital scales. She admitted that she possessed the methamphetamine to distribute it at a later time.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Mike Kurt Chilinski Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on April 11, 2013, before Senior U.S. District Judge Charles C. Lovell, MIKE KURT CHILINSKI, a 52-year-old resident of Jefferson City, appeared for sentencing. CHILINSKI was sentenced to a term of:
Prison: 18 months, consecutive to previous sentence
Special Assessment: $100
Supervised Release: 4 years
CHILINSKI was sentenced in connection with his guilty plea to manufacture of marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On October 12, 2011, Jefferson County Sheriff's Office deputies served a search warrant regarding animal cruelty charges at CHILINSKI's Jefferson County residence. During that search warrant execution, the deputies located marijuana plants growing in the residence and on the property. They called the Southwest Montana Drug Task Force. Members of the Southwest Montana Drug Task Force then obtained a search warrant for the marijuana plants. Law enforcement recovered 216 marijuana plants and approximately 1,000 grams of processed marijuana.
On October 13, 2011, the deputies discovered more marijuana plants on the property. The SWMDTF prepared a second search warrant covering all four parcels of CHILINSKI's property for marijuana plants. On October 14, 2011, law enforcement seized an additional 120 marijuana plants.
On October 13, 2011, when interviewed, CHILINSKI stated he purchased marijuana from another caregiver who charged him $260 per ounce of marijuana. The approximate 1,000 grams were for his new patients and to make new edibles. CHILINSKI then sold and gave away marijuana to potential patients. CHILINSKI grew the plants from January through October 2011.
In the past, CHILINSKI may have had as many as 30 patients at one time. CHILINSKI planned to reapply to be a caregiver but had not done the paperwork. He also needed to get new patients and was in the process of getting new patients.
Samples from the marijuana plants as well as the 1,000 grams of marijuana listed above were submitted to the DEA Laboratory for analysis. The result of that analysis found that the items submitted for testing contained a detectable amount of marijuana, a Schedule I controlled substance.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that CHILINSKI will likely serve all of the time imposed by the court. In the federal system, CHILINSKI does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Jefferson County Sheriff's Office, the Montana Division of Criminal Investigation, and the Southwest Montana Drug Task Force.
Medford Man Charged in Bank BurglaryRead the Press Release
Boston - A Medford man was charged late yesterday in federal court with bank burglary.
Terry K. Leigh, 43 was charged in a criminal complaint with bank burglary. On Aug. 11, 2012, at approximately 9:45 p.m., agents were conducting surveillance at the Bank of America located at 465 Columbus Avenue, Boston. According to the complaint affidavit, agents observed an individual, later identified as Leigh, enter the bank’s ATM, wearing a dark green hat, a fake beard and carrying a dark green messenger-style bag. While inside the ATM, agents witnessed Leigh use a tool to pry the ATM’s internal access door open and enter the ATM’s internal room and close the door behind him. According to the affidavit, as the agents approached the bank’s ATM they observed Leigh exit the ATM’s internal room and walk up a rear stairway. Leigh was located and arrested on the roof of the building with the green messenger-style bag, which contained saw blades, gloves, a fake beard and a grinder saw.
A detention hearing is scheduled before United States Magistrate Judge Marianne B. Bowler on April 18, 2013.The statutory maximum penalty is up to 20 years in prison, to be followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz, Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office and Boston Police Commissioner Edward Davis made the announcement. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maxton Man Sentenced for Drug TraffickingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court Thursday, United States District Judge Terrence W. Boyle sentenced MICHAEL DEAN JONES, 42ofMaxton, North Carolinato 120 months imprisonment followed by 4 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on February 15, 2012. On October 11, 2012, JONES pleaded guilty to Distribution of 50 Grams or More of Cocaine Base (Crack), in violation of Title 21, United States Code, Section 841.
According to the evidence presented in Court, on April 8, 2010, JONES sold 54.9 grams of powder cocaine to a confidential informant. On June 9, 2010, JONES again sold crack cocaine to a confidential informant with a weight of about 53.7 grams. All told, JONES was held responsible for distributing over 100 grams of cocaine and over 80 grams of crack cocaine.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina State Bureau of Investigation, and the Robeson County Sheriff’s Office. Assistant United States Attorney Rudy E. Renfer prosecuted the case for the government.
Maryland Man Pleads Guilty to Charges in Series of Home Break-ins-Admits Entering Three Northwest Washington Homes Within A Month, Including One on Christmas-Read the Press Release
WASHINGTON - Tyrone Edmondson, 40, of Temple Hills, Md., has pled guilty to charges stemming from a series of recent break-ins of Northwest Washington homes, including one on Christmas, U.S. Attorney Ronald C. Machen Jr. announced today.
Edmondson pled guilty on April 11, 2013 in the Superior Court of the District of Columbia to three counts of attempted second-degree burglary. The Honorable Stuart G. Nash scheduled sentencing for June 5, 2013. Edmondson faces a statutory maximum of five years of incarceration on each of the three charges.
According to the government’s evidence, on Dec. 25, 2012, at about 8 p.m., Edmondson entered a home in the 800 block of Varnum Street NW through an unlocked rear door. He took computers, a video gaming system, a camera, shoes, jeans, and a jacket.
On Jan. 21, 2013, at about 3:15 p.m., Edmondson entered a home in the 1500 block of Upshur Street NW through an unlocked rear sliding glass door. He took a computer, jewelry, phone and coat. Finally, on Jan. 22, 2013, at about 3:30 p.m., he entered a home in the 1500 block of Crittenden Street NW, once again through an unlocked rear door. This time, he took a television, a Kindle, and loose change. The owner of this home was upstairs at the time, and after hearing noises in her living room, called the Metropolitan Police Department (MPD). Police responded, and found Edmondson in an alley near the house, with the victim’s property.
In announcing the plea, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also praised the efforts of those who worked on the matter from the U.S. Attorney’s Office, including Paralegal Assistant Todd McClelland, Intelligence Specialist Sharon Johnson, and Assistant U.S. Attorney Philip A. Selden, who investigated and prosecuted the case.
13-132Manhattan U.S. Attorney Announces Additional Charges Against 12 Members of Bronx Drug Trafficking Crews for Three Murders, A Drug-Related Shooting, and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), today announced additional charges against 12 alleged members of drug trafficking crews based in the vicinity of Allerton Avenue Co-ops and the Parkside Houses in the Bronx, New York. Eleven of the 12 defendants are charged with conspiracy to distribute crack cocaine, and possessing, brandishing and discharging firearms in connection with, and in furtherance of, the charged crack cocaine conspiracy. In connection with the crack cocaine conspiracy, ARMANI CUMMINGS is charged with the January 2010 murder of Lequan Jones, and the June 2010 murder of Carl Copeland, both of whom were shot in the Bronx. BRYAN RHODES is also charged with Copeland’s murder. JOSE MUNOZ is charged with the December 2011 murder of Shameek Young, who was shot in the Bronx. In addition, JESSIE MCCOLLUM is charged with a non-fatal, drug-related shooting in the Bronx on that same day. Finally, MUNOZ is also charged with conspiracy to commit Hobbs Act robbery, participation in a Hobbs Act robbery, and his use of a firearm in connection with, and in furtherance of, it.
Nine of the defendants are already in custody in connection with charges contained in previous Indictments related to this prosecution, which led to the arrests of 63 individuals and was the result of a coordinated operation involving federal, state, and local law enforcement officers. Two of the defendants were released on bail following their arrests in December 2011. One of the defendants remains at-large. The defendants will be arraigned today in Manhattan federal court before U.S. District Judge Victor Marrero on the charges in the Superseding Indictment at 2:00 p.m.
Manhattan U.S. Attorney Preet Bharara said: “The charges in this indictment once again put the nexus between drugs, guns, and fatal violence into stark relief. Through patient and painstaking work, the investigators and prosecutors targeted violent drug operations, charged drug crimes at first and eventually were able to charge drug-related murders, shootings and other violent crimes, which might have gone otherwise unaddressed. The law enforcement drumbeat will continue until we clean up the streets of our communities once and for all.”
FBI Assistant Director-in-Charge George Venizelos said: “The link between drug trafficking and gun violence could not be better illustrated than with this investigation. The defendants, initially charged with narcotics offenses, now stand charged with crimes of violence including three fatal shootings. Policing drug trafficking reduces the threat of gun violence. That is the reason the FBI and the NYPD work these cases.”
NYPD Commissioner Raymond W. Kelly said: “The charges announced today make clear the nexus between illicit drugs and violence, including murder, as well as the risk faced by police officers who work undercover to provide a modicum of safety to law abiding residents of public housing. I commend the NYPD detectives and the prosecutors in U.S. Attorney’s office for their thorough investigation.”
As alleged in the Superseding Indictment returned Wednesday and other documents filed in Manhattan federal court:
From 2006 through February 20, 2013, undercover officers with the NYPD made hundreds of purchases of “crack” cocaine from drug dealers in the Allerton Avenue Co-ops and Parkside Houses. During the buys, officers were able to purchase significant street level quantities of crack. In addition, members of the drug trafficking organization used firearms, threats of violence, and violence to secure and enforce their drug territory. This included the 2010 murder of Lequan Jones, the 2010 murder of Carl Copeland, and the 2011 murder of Shameek Young, all of which occurred in the Bronx. During the incident involving the fatal shooting of Young, an innocent bystander was shot and critically wounded.
A chart containing the ages, residency information, and charges against the defendants, as well as the maximum penalties they face is attached.
Mr. Bharara praised the outstanding investigative work of the FBI and the NYPD. He added that the investigation is continuing.
The prosecution of this case is being overseen by the Office’s Violent Crimes Unit. Assistant United States Attorneys Timothy D. Sini and Hadassa Waxman are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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U.S. v. Armani Cummings, et al. S7 Indictment
Mandan Man Sentenced for Child Pornography ChargesRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 12, 2013, Harold Fetzer, 68, Mandan, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of sexual exploitation of minors and a charge of possession of materials involving the sexual exploitation of minors. Fetzer pleaded guilty to the charges on Nov. 14, 2012.
Judge Hovland sentenced Fetzer to serve 24 years and five months in federal prison, to be followed by a lifetime of supervised release. Fetzer was also ordered to register as a sex offender for life. Fetzer was ordered to pay restitution of $9,208.01 and to pay a $200 special assessment to the Crime Victim’s Fund.
From Jan. 2009 until July 2012 Fetzer was found to have produced and possessed visual depictions of minors engaging in sexually explicit conduct. Fetzer was in possession of 1,216 still images and 274 videos which depicted child pornography.
This investigation was conducted by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, and the Mandan Police Department, with the assistance of the Morton County
State’s Attorney’s Office.This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Man Who Fired Shots in Apartment Parking Lot Sentenced to Ten Years in Prison for Gun Crime and ID TheftRead the Press Release
A felon with a history of domestic violence, burglary and illegal weapons possession, was sentenced today in U.S. District Court in Seattle to ten years in prison, announced U.S. Attorney Jenny A. Durkan. PISETH P. MAM, 34, was arrested in August 2012, a few days after a shooting incident at an apartment complex in Tukwila, Washington. No one was injured in the shooting, but video of the scene showed many adults and children in the area at risk. At sentencing, Chief U.S. District Judge Marsha J. Pechman said, “Anyone who would fire (a handgun) into a car in a crowded parking lot over a perceived slight is a dangerous person.”
According to records filed in the case, on August 12, 2012, police in Tukwila responded to a report of shots fired at the Ridge Springs Apartments. Witnesses described the driver of a white Honda firing gunshots in the parking lot before speeding away. A witness who was standing near the car when the driver started firing, was able to identify the shooter as MAM. A few days later, MAM was arrested at the Emerald Queen Casino. His car was impounded in the parking garage. When investigators with a court authorized search warrant went through the car, they found a stolen 9mm Beretta Pistol. MAM was prohibited from possessing firearms due to prior convictions for domestic violence assault (Washington 2004), burglary (Washington 2004) and possession of an assault weapon (California 2007). Also in the car, investigators found dozens of pieces of stolen mail. The investigation determined that MAM had used a credit card stolen from the mail to illegally make purchases at Home Depot. The conviction for aggravated identity theft means MAM faces a mandatory minimum of two year sentence to run consecutive with the sentence for the gun crime.
In asking for a significant sentence, prosecutors noted the danger of firing the gun in an apartment parking lot. “The video shows several people, many who were small children, in the area of the shooting,” prosecutors wrote in their sentencing memo.
The case was investigated by the Tukwila Police Department, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecuting Attorney specially designated to prosecute gun crimes in federal court.
Lexington Man Sentenced to 41 Months for Attempting to Evade Paying Taxes and Wire FraudRead the Press Release
LEXINGTON, KY - A Lexington business man who admitted he used hundreds of thousands of dollars of his clients’ money to purchase sports collector cards, was sentenced today to 41 months in prison.
U.S. District Judge Karl S. Forester sentenced 46- year-old David Byron for wire fraud and attempting to evade paying income taxes. Judge Forester also ordered Byron to pay $688,530.89 in restitution to the victims of his crime.
Byron previously admitted that from 2006 through April 2010 he devised a scheme to defraud at least seven clients of his bookkeeping business. According to the plea agreement, Byron told them he would facilitate payment of their taxes owed to the Internal Revenue Service (IRS) and other state and federal government agencies. In reality, Byron wired money from their bank accounts to his bank account and then used the money to supplement his lifestyle and purchased $350,000 worth of baseball and sports collector cards.
Under federal law, Byron must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for three years.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, and Paul R. Johnson, Special Agent in Charge, United States Secret Service, jointly made the announcement today after the sentencing.
The investigation was conducted by the Internal Revenue Service and the United States Secret Service. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Kevin Dicken.
Lexington Man Sentenced to 103 Months for Receiving Child PornographyRead the Press Release
LEXINGTON, KY - A Lexington man, who admitted downloading child pornography images over the internet, was sentenced to 103 months in federal prison.
U.S. District Judge Karen Caldwell sentenced 33-year-old Jason Daniel Meade Thursday for receiving child pornography. In addition to the 103-month term, Judge Caldwell also ordered Meade to be under the supervision of the U.S. Probation Office, for the rest of his life.
According to court documents, Meade downloaded hundreds of images of minors engaged in sexually explicit conduct. Meade’s sentence was enhanced because many of these images contained minors under the age of 12 and some were sadistic and violent in nature.
In September 2011, undercover law enforcement agents identified a computer in Lexington that was offering child pornography for downloading. Authorities traced the location of the computer to a locked room that Meade kept at his mother’s residence. During the execution of a search warrant at the residence, law enforcement found the images of child pornography on two computers and a CD.
Under federal law, Meade must serve at least 85 percent of his prison sentence and must register as a sex offender when he is released.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI, and Jack Conway, Kentucky Attorney General, jointly announced the sentence today.
The investigation was conducted by the Kentucky Attorney General’s Office and the FBI.
Lawyer Pleads Guilty in Manhattan Federal Court to Participating in Massive Immigration Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Raymond W. Kelly, the Commissioner of the Police Department for the City of New York (“NYPD”), and Patricia A. Menges, the Director of the New York Asylum Office of the United States Citizenship and Immigration Services (“USCIS”), announced that attorney JOHN LIN pled guilty today in Manhattan federal court to one count of conspiring to commit immigration fraud. LIN is the eighth lawyer charged for his participation in a massive immigration fraud scheme involving thousands of fraudulent asylum applications that were allegedly submitted by at least 10 law firms in the New York City area. He pled guilty before U.S. Magistrate Judge Andrew J. Peck.
Manhattan U.S. Attorney Preet Bharara said: “For those seeking asylum from persecution in their native countries, United States immigration laws provide a vital escape hatch. Not only did John Lin abuse those laws and violate his duties as an officer of the court, but he also made it harder for legitimate asylum-seekers. We will continue to work with our law enforcement partners to identify and prosecute those who violate this country’s immigration laws.”
FBI Assistant Director-in-Charge George Venizelos: “Lin, a lawyer and officer of the court, violated the ethical obligations of his profession while breaking the law. Assisting others with their fraudulent asylum claims enabled them to enter the country under false pretenses. The scheme exploited a program designed to provide safe haven for real victims of persecution.”
NYPD Commissioner Raymond W. Kelly said: “It’s bad enough when new arrivals to this country are victimized by common criminals, but despicable when a member of the bar dishonors his sworn duties to exploit a system designed to protect some of the most vulnerable among us.”
USCIS New York Asylum Office Director Patricia A. Menges stated: “Asylum is a humanitarian protection that represents the best of American values. USCIS is committed to ensuring that criminals like Mr. Lin aren’t allowed to abuse this protection for personal gain. We appreciate the efforts of U.S. Attorney Bharara’s office, the NYPD, the FBI and USCIS’s Fraud Detection and National Security Program in helping us protect the integrity of this important program.”
According to the Information and other documents filed in this case:
LIN was an attorney at a law office located in New York City (the “Law Firm”). As part of the scheme, the defendant and his co-conspirators profited by creating and submitting asylum applications containing false stories of persecution, purportedly suffered by Chinese alien applicants.
The law firm made up stories of persecution that often followed one of three fact patterns: (a) forced abortions performed pursuant to China’s family planning policy; (b) persecution based on the client’s belief in Christianity; or (c) political or ideological persecution, typically for membership in China’s Democratic Party or followers of Falun Gong. Since 2006, the Law Firm has submitted more than 500 asylum applications.
LIN, 53, of Staten Island, New York, faces a maximum sentence of five years in prison and three years of supervised release. He is scheduled to be sentenced by U.S. District Court Judge Sidney H. Stein, on August 12, 2013 at 4:00 pm.
Mr. Bharara praised the investigative work of the FBI, NYPD, and USCIS.
The prosecution is part of Operation Fiction Writer, a joint investigation led by the United States Attorney’s Office for the Southern District, the FBI, the NYPD, and the USCIS. To date, 28 defendants, including eight lawyers, have been charged with participating in nine separate but overlapping immigration fraud schemes in New York City. Of the 28 defendants charged, two defendants – LIN and attorney Meng Fei Yu – have pled guilty. Charges against the remaining 26 defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
This case is being handled by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris Fischman and Robert Boone are in charge of the prosecution.
U.S. v. John Lin Information
Last Two Convicted in Houston Armored Car RobberiesRead the Press Release
HOUSTON – Walter Keitric Freeman, of Houston, and Allen Moore Jr., of Dallas, have entered pleas of guilty in relation to the robbery and attempted robbery of two armored cars operating in and around Houston, United States Attorney Kenneth Magidson announced today.
Freeman, 23, and Moore, 46, each pleaded guilty today to one count of discharging of a firearm during the commission of a crime of violence. Freeman also pleaded to one count of conspiracy to interfere with commerce by robbery, while Moore pleaded to a count of interference with commerce by robbery. Three others also charged in the case - Hendrick Dwayne Lynn, 30, Chad Eric Haywood, 24, and Corinthians Lachell Phillips, 28, all of Houston – had previously also entered guilty pleas for their roles in the crimes. Lynn and Haywood were both convicted of two counts of interference with commerce by robbery, while Lynn and Phillips also admitted to the conspiracy charge. Haywood also pleaded guilty to a count of discharging a firearm during a crime of violence.
Loomis Armored US Inc., who operated the trucks during the alleged robbery and robbery attempt, maintains offices throughout the United States and was engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
Lynn, Haywood and Moore were charged with their involvement in the Aug. 7, 2009, attempted robbery of a Loomis armored truck at the Bank of America at 3704 Old Spanish Trail in Houston. Lynn drove to the location, at which time Haywood and Moore, who were armed with Glock pistols, jumped out and shot at the guard. The guard has since recovered. The guard had been filling an ATM machine, but it was already locked and no money was obtained.
The second incident occurred on Nov. 21, 2009, at which time another guard was shot. On that date, Lynn drove Freeman and Haywood to Senor Check Cashing Store #2 located at 5950 S. Gessner Rd. in Houston. Freeman fired his pistol and shot in the direction of the guard. The guard was hit, but survived. On that same date, Phillips drove a second vehicle to the Gessner location and, following the robbery, switched vehicles with Haywood, Freeman and Lynn.
The conspiracy charge and the convictions for interference with commerce by robbery both carry as possible punishment up to 20 years in prison as well as a possible $250,000 fine. Haywood, Moore and Freeman will also face at least an additional 10 years in federal prison for discharging a firearm during the commission of the robberies which must be served consecutively to the other terms imposed.
U.S. District Judge Gray H. Miller, who accepted the guilty pleas, has set sentencing for Freeman and Moore for July 10, whiel the remaining defendants are set for July 12, 2013. With the exception of Phillips, all will remain in custody pending that hearing.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Kirk Jenkins Indicted for Violations of the Federal Controlled Substances Act and Federal Gun Control ActRead the Press Release
KIRK JENKINS, age 39, a resident of New Sarpy, Louisiana, was charged today in a 3-count indictment by a Federal Grand Jury for distribution of heroin and illegal possession of firearms, announced U. S. Attorney Dana J. Boente.
According to the indictment, on January 14, 2013, and March 6, 2013, JENKINS distributed quantities of heroin. The indictment further charges that on March 14, 2013, JENKINS possessed a High Point .40 caliber, semiautomatic pistol and a Ruger .380 caliber semi-automatic pistol. According to the indictment, JENKINS was prohibited from possessing the firearms because he had a previous felony conviction in 2002 for possession of heroin in Orleans Parish Criminal District Court. Under federal law it is illegal for anyone who has been previously convicted of a felony to be in possession of any firearm or ammunition.
If convicted on the heroin distribution, Counts 1 and 2 of the indictment, JENKINS faces a maximum term of imprisonment of 20 years, a $1,000,000 fine, a minimum of 3 years supervised release, and $100 special assessment fee. If convicted for being a felon in possession of a firearm, Count 3 of the indictment, JENKINS faces a maximum term of imprisonment of 10 years, a $250,000 fine, 3 years supervised release, and $100 special assessment fee.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisiana State Police and the St. Charles Parish Sheriff’s Office. The case is being prosecuted by Assistant U. S. Attorney Nolan D. Paige.
(Download Indictment )
Keith Allan Devereaux Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 8, 2013, before U.S. District Judge Sam E. Haddon, KEITH ALLAN DEVEREAUX, a 35-year-old resident of Great Falls, was sentenced to a term of:
Prison: 78 months
Special Assessment: $100
Restitution: $3,480
Supervised Release: 3 years
DEVEREAUX was sentenced in connection with his guilty plea to aiding and abetting the crime of robbery affecting commerce.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
On February 21, 2012, around 10:00 p.m., Great Falls Police were alerted to a robbery at the Eagles Lodge. It was reported that three men had robbed a female employee at gun point and then sprayed her in the face with pepper spray. Officers arrived to find the employee absolutely hysterical. She was sobbing and told officers she believed she was going to be shot during the robbery.
Officers began their investigation and found $3,961 had been stolen from the money drawers. The inside of the building also smelled of pepper spray so badly that the police called the Great Falls Fire and Rescue in order to aerate the room. Police interviewed the victim two days later because she was too upset to speak until that point.
According to the victim, the last customer left the bar around 9:30 p.m. Once the customer left, the victim began to clean the west end of the bar. She did not recall hearing anyone come inside, but heard a male voice tell her to turn around. The victim turned around to see three men who were all dressed in black hooded sweatshirts with their faces fairly covered. One of the men pointed a handgun at the victim and yelled, "where's the money?" She believed two of the men had handguns, but could not identify which ones possessed the guns. Another man pointed a gun at the victim and made her walk to the end of the bar. The victim heard banging and slamming, and eventually one man said, "you'll be okay," and sprayed her in the face with pepper spray. The victim struggled to breathe, found her phone, and ran outside to call police.
On February 23, 2012, Great Falls police received a tip that John Gopher, Alicia Arthur, Anthony Gregori, and DEVEREAUX may have been involved in the robbery. The tip reported Gopher had bragged that over $2,000 had been stolen in the robbery of the Eagles Lodge. The person also relayed that Gopher, Gregori, Arthur, and DEVEREAUX had traveled to Billings, but would soon be returning to Great Falls.
Detectives arrested DEVEREAUX after he returned to Great Falls. DEVEREAUX told police he had been in the same car with Gopher, Arthur, and Gregori on the night of the robbery. But that he had returned home at some point. DEVEREAUX did tell the police, however, that he had been with Gopher and Arthur when they devised a plan to rob the Eagles Lodge. DEVEREAUX said he participated in the planning of the robbery, and added the Eagles Lodge looked like a hospital or old person's home. Gopher and Arthur also told police that DEVEREAUX had participated in the robbery.
Gopher, Arthur, and Gregori pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DEVEREAUX will likely serve all of the time imposed by the court. In the federal system, DEVEREAUX does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by a cooperative effort between the Great Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department and Council of State Governments Identify States Cutting Correction Costs While Reducing Recidivism and Improving SafetyRead the Press Release
The Department of Justice and the Council of State Governments (CSG) highlight 17 states that have cut corrections costs while reducing recidivism and improving public safety. With funding from the Justice Department’s Bureau of Justice Assistance (BJA), staff from the CSG Justice Center – in partnership with the Pew Center on the States – worked with lawmakers, policymakers, and a wide range of justice system professionals and stakeholders from each state to identify crime and corrections trends and formulate strategies that would save money and improve safety.
Over the past 20 years, state spending on corrections has skyrocketed—from $12 billion in 1988 to more than $52 billion in 2011. Declining state revenues and other fiscal factors are straining many states’ criminal justice systems, often putting concerns about the bottom line in competition with public safety.
“Our nation pays a high price whenever our prisons and criminal justice systems fall short of delivering results that deter and punish crime, keep the American people safe, and ensure that those who pay their debts to society have the chance to become productive, law-abiding citizens,” said Attorney General Eric Holder. “These states have been able to achieve fundamental and positive reform because leaders from both sides of the aisle have come together to tackle these difficult issues. It is my hope that their success will be emulated by others across the country."
A new report, Lessons from the States: Reducing Recidivism and Curbing Corrections Costs Through Justice Reinvestment, summarizes the experiences of states participating in the Justice Reinvestment Initiative, an across-the-board analysis of statewide crime and corrections data designed to help officials redirect public funds from costly prison building projects to cost-effective programs aimed at ensuring greater public safety. Based on these analyses, the states have enacted legislation and implemented justice reinvestment policies which incentivize use of risk based decision making, increase services and support for victims, target grants to law enforcement and establish state wide standards and training for probation agencies.
According to the report, states are able to reach these goals when they:
1. Conduct a comprehensive analysis of crime, arrest, conviction, jail, prison, probation and parole data;
2. Engage diverse constituencies of elected and appointed leaders as well as criminal justice stakeholders;
3. Focus resources on individuals most likely to reoffend;
4. Reinvest taxpayer dollars in proven programs and strategies;
5. Strengthen community supervision by responding to violations swiftly, proportionately, and with approaches that are evidence-based;
6. And reward the performance of local agencies whose actions result in cost savings.“We support states that are committed to taking a data-driven approach to lowering re-offense rates of people released from prison and jail,” said Denise E. O’Donnell, BJA Director. “This report serves as a reference for states that are looking to tackle this issue. It shows that evidence-based strategies can improve public safety and reduce recidivism, even in an era of reduced resources.”
“Through our Justice Reinvestment effort, we’re helping state leaders use data and research to wisely use scarce resources. This approach has shown that states don’t have to choose between safe communities and fiscal solvency. Both are possible,” said Office of Justice Programs (OJP) Acting Assistant Attorney General Mary Lou Leary.
The 17 states involved in the Justice Reinvestment Initiative are Arkansas, Delaware, Georgia, Hawaii, Kansas, Kentucky, Louisiana, Missouri, New Hampshire, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, and West Virginia.
Being smarter and tougher on crime through innovative prevention, intervention, enforcement and reentry programs is a Justice Department priority. That’s why President Obama’s budget request for fiscal year 2014, released Wednesday, includes $85 million for the Justice Reinvestment Initiative.To read the report, Lessons from the States: Reducing Recidivism and Curbing Corrections Costs Through Justice Reinvestment, or for more information on the Justice Reinvestment Initiative, please visit: www.justicereinvestment.org
OJP provides federal leadership in developing the nation's capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking. More information about OJP can be found at http://www.ojp.gov.
Jury Finds Westlake Man Guilty of Meth and Gun Possession ChargesRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a jury found Anthony Frederick “Tony” Giaimis, 48, of Westlake, La., guilty Wednesday of conspiring to distribute and of possessing with intent to distribute methamphetamine. The jury also found him guilty of one count felony weapon possession. District Judge Patricia Minaldi presided over the trial.
Giaimis’ trial started Monday and ended Wednesday with the jury returning the guilty verdict after deliberating for about 45 minutes. The jury found that Giaimis conspired to distribute more than 50 grams of pure methamphetamine, and that he possessed more than 5 grams of pure methamphetamine, which police found on Jan. 6, 2012, during a search of a marina owned by his mother, the Bridge Port Yacht club, where Giaimis was living. The jury heard testimony that during the dates of the conspiracy, Giaimis obtained more than 80 ounces of methamphetamine from two men in the Houston area, which he sold to people living in and around Calcasieu Parish. Police also found 14 firearms in various locations at the marina. Giaimis had been previously convicted of a felony in June 2011 in the 253rd District Court of Texas in Chambers County for possession with intent to deliver more than 200 grams of methamphetamine.
Because of his prior conviction, Giaimis faces a minimum of 20 years to life in prison, a fine of up to $20 million, and at least 10 years of supervised release for the conspiracy to distribute methamphetamine count; and 10 to 40 years in prison, an $8 million fine, and at least eight years of supervised release for the possession with intent to distribute methamphetamine count; and he faces 15 years to life in prison, a $250,000 fine, and five years of supervised release for possession of a firearm by a convicted felon.
Justin W. Brewer, 42, and Ricky Martinez, 43, both of Houston, Texas, were charged in the same indictment with Giaimis in August 2012. Giaimis’ trial was severed from that of his co-defendants April 4, 2013.
Brewer pleaded guilty Monday before District Judge Patricia Minaldi to possession with intent to distribute more than 50 grams of methamphetamine. According to the stipulated factual basis for the guilty plea, Brewer was arrested Dec. 28, 2011, after 51.1 grams of pure methamphetamine was found in the trunk of his car. An informant told authorities that Brewer was in the Westlake area and was transporting a large quantity of methamphetamine. A Westlake police officer pulled Brewer over for a traffic violation, and found a drug smoking pipe and other drug paraphernalia in the console of car, and a box containing methamphetamine in the trunk.
Brewer faces 10 years to life in prison, a fine of up to $10 million, and at least five years of supervised release for the methamphetamine count.
Martinez is set for trial May 13, 2013. He is charged with one count of conspiracy to distribute more than 50 grams of methamphetamine and one count of possession of more than 50 grams of methamphetamine with intent to distribute. Martinez is alleged to have taken part in a conspiracy to distribute the methamphetamine from January 2009 to February 2012. If convicted, Martinez will face 10 years to life in prison, a fine of up to $10 million, and at least five years of supervised release for each count.
“It took the work of informants, police, sheriff’s officers, and federal agents to bring the defendants in this drug distribution operation to justice,” Finley stated. “I want to thank all of those who put their time and lives on the line to remove harmful and illegal drugs from our streets.”
The Westlake Police Department, Calcasieu Parish Sheriff’s Office, Lake Charles Police Department, FBI Safe Streets Task Force, Combined Anti-drug Team(CAT) Task Force, and the Drug Enforcement Administration Laboratory conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.Jury Finds Title Manager Guilty in Mortgage Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - After deliberating for seven hours, a federal jury of four men and eight women found Catherine Slane guilty of four counts of conspiracy and wire fraud, United States Attorney David J. Hickton announced today.
Slane, 53, of Tarentum, Pa., was tried before United States District Judge Nora Barry Fischer in Pittsburgh, Pa.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that Slane was employed as the Senior Title Manager at First Olympic Settlement Services and specialized in closing residential real estate transactions.
Russell Goggin, who passed away prior to Indictment, operated a company called Triplex Properties, which was a company that purchased properties in distressed circumstances -- from estates or from people attempting to sell their homes themselves and not through a real estate broker. He would enter into contracts in which he agreed to purchase properties at certain prices. Normally, before the closing on that transaction, Goggin would then attempt to locate buyers for the properties. He would advertise the house as "rent-to-own" which attracted individuals who could not typically afford to buy home because of credit issues, lack of a down payment, or for some other reason.
Despite their economic circumstances, Goggin convinced the buyers to purchase the homes promising to make improvements on the homes and by claiming that they would not have to make any down payments associated with the purchases. Based on those misrepresentations, the buyers agreed to purchase the properties from Goggin for many times the values of the homes.
Goggin, working through a Peter Kamaras, a mortgage broker who operated Single Source Mortgage, obtained financing for the buyers the purchase the homes through a series of fraudulent representations and bogus document. In the loan application process, the misrepresentations included overstating the borrowers' incomes and assets. In addition, Goggin and Kamaras submitted fake documents to support those and other misrepresentations.
The closing documents reflected that the borrowers were making substantial down payments, and that Goggin was not getting any money from the transactions. The sales price reflected the price that the buyer agreed to pay Goggin for the home, and not the price that the seller agreed to sell the property to Goggin for. In addition, the closing documents reflected that the buyers were making substantial down payments associated with the purchase of the properties, when, in fact, they were not making any payments.
Catherine Slane was the co-conspirator who did the closings. In addition to the fraudulent closing documents, Slane also wired funds received from the lender to Goggin. Goggin would then use those funds to obtain a certified check that he would bring back to Slane after the closing falsely evidencing to the lender that the buyers made the down payments.None of this fraud, however, was possible without fraudulent appraisals that supported the fraudulently elevated sales price shown to the lenders. Sam Shaheen was the appraiser who provided the fraudulent appraisals. Both Shaheen and Kamaras previously pleaded guilty based on their roles in the conspiracy and are awaiting sentencing.
Judge Fischer scheduled sentencing for Slane for Aug. 9, 2013. The law provides for a total sentence of 80 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the criminal history, if any, of the defendant.
The Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Slane. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Fraud Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
June Lee Wolverine Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 1, 2013, before U.S. District Judge Sam E. Haddon, JUNE LEE WOLVERINE, a 33-year-old resident of Browning, appeared for sentencing. WOLVERINE was sentenced to a term of:
Prison: 78 months
Special Assessment: $200
Supervised Release: 3 years
WOLVERINE was sentenced after a federal district court trial in which she was found guilty of assault resulting in serious bodily injury and assault with a dangerous weapon. At trial, the following evidence and testimony was presented to the jury.
On July 3, 2012, the victim in this case was at home asleep. WOLVERINE entered the residence, stabbed the victim with a twelve-inch butcher knife in the chest, and stabbed the victim again as he ran for help. When receiving help, the victim made various statements to neighbors and medical personnel about the circumstances of the stabbing.
The victim's testimony at trial was different than what he provided the FBI in July of 2012. He claimed at trial that he was the aggressor and that WOLVERINE was only acting in self-defense. WOLVERINE also testified. Her testimony was different than what she told the FBI in July of 2012.
After the jury convicted WOLVERINE of both counts in the indictment, the United States District Court directed the U.S. Attorney's Office to investigate and report about potential criminal charges against the victim and WOLVERINE for perjury and false statements to federal agents.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WOLVERINE will likely serve all of the time imposed by the court. In the federal system, WOLVERINE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Blackfeet Law Enforcement Services and the Federal Bureau of Investigation.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 9, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
DAVID MUSKRAT, a 35-year-old resident of Poplar, appeared on charges of first and second degree murder. He is currently detained. If convicted of these charges, MUSKRAT faces possible penalties of mandatory life in prison and a $250,000 fine. Assistant U.S. Attorney Laura B. Weiss is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
CRESTON KINDNESS, a 30-year-old resident of Fort Hall, Idaho, appeared on charges of assault resulting in serious bodily injury, assault with a dangerous weapon, and use of a firearm during a crime of violence. He is currently detained. If convicted of these charges, KINDNESS faces possible penalties of a mandatory minimum of 5 years and could be sentenced to life, a $250,000 fine, and 5 years supervised release. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
FREDDY WAYNE JIMENEZ, a 40-year-old resident of Browning, appeared on charges of (6) counts of assault resulting in serious bodily injury and (5) counts of assault with a dangerous weapon. He is currently detained. If convicted of these charges, JIMENEZ faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release for each count. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
VERN THOMAS GARDIPEE, a 48-year-old resident of Box Elder, appeared on a charges of aggravated sexual abuse and sexual abuse of a minor. He is currently detained. If convicted of these charges, GARDIPEE faces possible penalties of a mandatory minimum of 30 years in prison and could be sentenced to life, a $250,000 fine, and 5 years supervised release. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
C'ERRA DAWN CLARK, a resident of Poplar, appeared on a charge of assault resulting in serious bodily injury. She is currently detained. If convicted of this charge, CLARK faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Laura B. Weiss is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
JONATHAN JAMES HENDERSON, a 28-year-old resident of Great Falls, appeared on a charge of possession with the intent to distribute methamphetamine. He is currently detained. If convicted of this charge, HENDERSON faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Bryan R. Whittaker is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
WILMA JAMIE RAE HOYT, a 29-year-old resident of Browning, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and distribution of methamphetamine. She is currently detained. If convicted of these charges, HOYT faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release on each of the first two charges, and 20 years, a $1,000,000 fine, and 3 years supervised release on the third charge. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
SERGIO ALEJANDRO LOPEZ, a 37-year-old resident of Portland, Oregon, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and (2) counts of distribution of methamphetamine. He is currently detained. If convicted of these charges, LOPEZ faces possible penalties of a mandatory minimum of 10 years and could be sentenced to life, a $4,000,000 fine, and 5 years supervised release on each of the first two charges, and a mandatory minimum of 5 years and could be sentenced to 40 years, a $4,000,000 fine, and 4 years supervised release on the last two charges. Assistant U.S. Attorney Joseph E. Thaggard is the prosecutor for the United States. The investigation was conducted by the DRUG ENFORCEMENT ADMINISTRATION.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment Alleges Plot to Rob Drug Stash HouseRead the Press Release
Dwight Berry, 28, Antonio Ellis, 27, Jermau Johnston, 18, all of Philadelphia, and Aski Washington, 33, of Darby, are charged by indictment , filed yesterday, in a conspiracy to rob a drug dealer’s stash house, announced United States Attorney Zane David Memeger. The defendants are charged with conspiracy to commit Hobbs Act robbery, attempted Hobbs Act robbery, conspiracy to possess with the intent to distribute five kilograms or more of cocaine, attempted possession with intent to distribute five kilograms or more of cocaine, and carrying a firearm during and in relation to a crime of violence. Berry, Washington, and Ellis are also charged with possession of a firearm by a convicted felon.
According to the indictment, on March 13, 2013, after weeks of planning, the defendants met at a predetermined location in Philadelphia. Defendants Berry and Johnston got into the minivan of Person #1 armed with two loaded firearms and zip ties. They then drove to a convenience store to purchase gloves for Johnston to use in the robbery. Defendants Ellis and Washington followed in a separate car carrying gloves, a mask, a can of lighter fluid, a lighter, and an empty back pack. The defendants met with Person #2 and, with everyone present, discussed the plan to rob the stash house which they believed contained 10 kilos of cocaine and was guarded by two armed guards. They drove to a final meeting place before the robbery where law enforcement moved in before the defendants could carry out their plan.
If convicted of all charges, the defendants face a mandatory minimum sentence of 15 years in prison up to life imprisonment, a fine of up to $20 million, five years supervised release, and a $500 special assessment. In addition, Berry, Washington, and Ellis each face an additional $250,000 fine and an additional $100 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.Click here to view the indictment
An Indictment 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, 215-861-8525Husband and Wife Sentenced in Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern district of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, announced that defendants Douglas Michael Young, a/k/a “Douglas Pierre,” 41, and his wife, Nicole Young, a/k/a “Nicole Pierre,” a/k/a Nicole Pierre Smith, 42, both of Miramar, were sentenced yesterday for their participation in a stolen identity tax refund scheme. Douglas Young was sentenced to 61 months’ imprisonment, followed by three years of supervised release. Nicole Young was sentenced to 54 months’ imprisonment, followed by three years of supervised release. In addition, the defendants were ordered to pay joint and several liability restitution in the amount of $849,052.87. Douglas and Nicole Young (the Youngs) had previously pled guilty to one count of conspiracy to steal government property, one count of theft of government property, and one count of aggravated identity theft.
On October 5, 2011, six (6) defendants were charged in a nine count indictment for their participation in a tax refund scheme that resulted in the submission of approximately $1,207,389.00 in fraudulent claims for refunds using the personal identification information of unknowing. Charged in the indictment were Douglas Young and Nicole Young, Jeffrey Andre Young, Jr., 31, and Ernest V. Charles, 37, both of Miami, and Joseph Bshara, 27, and Siham Benabdallah, 23, both of Miami Shores, Florida.
According to the indictment, the Youngs owned and operated two tax preparation companies, Supreme Tax and Young Professional Services, Inc. The Youngs would obtain identification information from unknowing victims and use their identification information without their authorization to file fraudulent refund claims. In furtherance of the scheme, the Youngs charged the unknowing victims a “fee” for their purported tax preparation services. The Youngs would deduct the “fee” from any tax refunds and would deposit the “fee” into bank accounts they controlled. The remainder of the refunds would be converted into personal checks that would be deposited into bank accounts controlled by co-defendants Ernest V. Charles, Joseph Bshara, and Siham Benabdallah. Defendant Jeffrey Andre Young, Jr. would deliver the personal checks to Joseph Bshara and Siham Benabdallah for deposit into the bank accounts that they controlled.
On April 9, 2013, co-defendant Jeffrey Andre Young, Jr was sentenced to 34 months imprisonment followed by three years of supervised release after having previously pled guilty to one count of theft of government property and one count of aggravated identity theft. On that same date, Siham Benabdallah, was sentenced to time served followed by supervised release of three years after having pled guilty to one count of theft of government property.
On January 29, 2013, co-defendant Joseph Bshara pled guilty to one count of theft of government property and one count of aggravated identity theft. Defendant Ernest V. Charles remains at large.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Kurt Lunkenheimer.
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.
Grove City Man Charged with Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Mercer County was indicted on Wednesday, April 3, 2013, by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The one-count indictment named Joseph L. Bryer, 52, of Grove City, Pa., as the sole defendant.
According to the indictment, on or about Aug. 23, 2011, Bryer possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, 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 Carolyn J. Bloch is prosecuting this case on behalf of the government.
Homeland Security Investigations - Immigration and Customs Enforcement, with assistance from the United States Secret Service, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.
Greer, S.C. Husband and Wife Sentenced for Filing False Tax ReturnsRead the Press Release
SPARTANBURG, S.C. – A husband and wife from Greer, S.C. were sentenced on Thursday, April 11, 2013 for filing false tax returns, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); David A. Thomas, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Columbia Division in South Carolina; and James Ward, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General in Atlanta join U.S. Attorney Tompkins in making today’s announcement.
U.S. District Court Judge Mary G. Lewis sentenced Julie Greene Tucker, 52, of Greer to 33 months in prison, to be followed by three years of supervised release. Tucker’s husband, James Dean Tucker, 54, also of Greer, was sentenced to eight months of house arrest and five years of probation. The Tuckers were ordered to pay $191,049 restitution to IRS, jointly and severally. Julie Tucker was ordered to pay an additional $590,128 as restitution to her former employer.
“For approximately 15 months the Tuckers used stolen money to fund a luxurious lifestyle way above their means. Today’s sentence sends a clear message that my office will work with our law enforcement partners to hold accountable those who break the law and to ensure the only rewards crooks get are stiff penalties and prison sentences,” said U.S. Attorney Tompkins.
“The IRS fosters confidence in the American tax system through the prosecution and conviction of individuals who intentionally conceal income and evade taxes. We should not expect the honest taxpayer to foot the bill for those who hide income from the IRS,” stated Jeannine A. Hammett, Special Agent in Charge of the Charlotte Field Office.
“The Tuckers funded their lavish lifestyle of luxury cars and expensive vacations with embezzled money. The FBI and our law enforcement partners remain committed to holding those accountable who abuse their positions for their own personal profit,” said David A. Thomas, Special Agent in Charge of the Columbia Division of the FBI.
In November 2012, James and Julie Tucker pleaded guilty to a criminal bill of information charging them with two counts of filing false tax returns. In addition, Julie Tucker pleaded guilty to one count of wire fraud. According to filed court documents and yesterday’s sentencing hearing, from in or about 1996 through in or about July 2011, Julie Tucker was employed at Trendset, Inc. (“Trendset”), a freight audit business, located in Greenville, S.C. Her last position at Trendset was Director of Administration. Court records show that in that capacity, Julie Tucker had access to Trendset bank accounts and had the authority to write checks and initiate wire transfers from these accounts on behalf of Trendset. From April 1986 through July 2012, James Tucker was employed with the Department of Homeland Security and stationed in Greenville, S.C.
According to filed documents and court proceedings, beginning in or about 2010 and continuing until her resignation in July 2011, Julie Tucker embezzled money from Trendset bank accounts. Unbeknownst to Trendset, Julie Tucker used her access to the company’s bank accounts to wire money to her name and into accounts held jointly by her and her husband. Court records indicate that Julie Tucker also wired funds and wrote checks from these accounts to make direct payments on several automobile loans and a credit card in the couple’s name.
Based on filed court documents and statements made in court, Julie and James Tucker used the embezzled funds to perform major home renovations, purchase a second home, and buy three luxury vehicles for themselves and an additional vehicle for the daughter of a Trendset co-worker. Court records indicate that the couple joined a local country club where they hosted a lavish Christmas party for family and friends. The couple also used the embezzled funds to pay for several personal vacation trips. According to yesterday’s sentencing hearing, Julie Tucker also spent well over $100,000 in jewelry purchases. The couple failed to include taxable income derived from Julie Tucker’s embezzlement scheme in their joint tax 2010 and 2011 tax returns, court records show.
Court records indicate that James Tucker lied to co-workers when he was asked about the couple’s lifestyle improvements and spending. Court records indicate that James Tucker sometimes would say that the couple received the money from James Tucker’s father, after a profitable sale of Hormel stock. Other times, James Tucker would say his wife had received a big promotion at Trendset and that she was making a lot more money than he was, court records indicate.
Julie Tucker was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the IRS, FBI, and DHS-OIG. The prosecution was handled by Assistant U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville.
Four Des Moines Area Defendants Plead Guilty in Connection with Mortgage FraudRead the Press Release
DES MOINES, IA – United States Attorney Nicholas A. Klinefeldt announced today that four individuals have plead guilty to offenses relating to mortgage fraud schemes.
On April 10, 2013, Jamie Bowers-Danielson, age 35, and Matthew Danielson, age 35, both of Ankeny, pled guilty to bank fraud, in connection with a mortgage fraud scheme to obtain a “free house” in Ankeny, Iowa.
According to the written plea agreement, Matthew Danielson provided false information, including misrepresenting his marital status as single, to the mortgage lender. The purpose of providing the false information was to obtain a mortgage despite his lack of credit worthiness and to deceive the lender into failing to obtain his wife, Jamie Bowers- Danielson’s, signature on the mortgage, which resulted in the mortgage being voided. Jamie Bowers-Danielson admitted that she submitted false documentation to the loan originator as part of the scheme.
Jamie Bowers-Danielson also pled guilty to conspiracy to commit bank fraud. Bowers- Danielson used her position as a loan originator to help herself, and others qualify for mortgage loans through fraudulent means. This included submitting false and misleading statements and documents to mortgage lenders and banks for the purpose of obtaining loans for herself and other borrowers for which they should have not qualified.
On April 12, 2013, Bobbi Jo Wojewoda, age 43, of Grimes, pled guilty to the same conspiracy to commit bank fraud count. Bobbi Jo Wojewoda used her position as an apprentice appraiser to prepare appraisals with inflated values to help herself, and others qualify for mortgage loans. Bobbi Jo Wojewoda also failed to disclose material conflicts of interest to the mortgage lender when she performed appraisals on her own home and homes where she was the real estate agent.
Wade Charles Wojewoda, age 45, of Grimes, pled guilty on April 12, 2013, to receipt of proceeds obtained under false pretenses, related to the purchase of his and his wife, Bobbi Jo Wojewoda’s, home in 2003.
All four individuals entered their pleas before Chief Judge James E. Gritzner of the United States District Court. Judge Gritzner scheduled a sentencing date of July 26, 2013, for Jamie Bowers-Danielson and Matt Danielson; and a sentencing date of July 31, 2013, for Bobbi Jo Wojewoda and Wade Charles Wojewoda. All four defendants remain released on conditions pending sentencing.
Conspiracy to commit bank fraud and bank fraud are punishable by a term of imprisonment of up to 30 years and a fine of up to $1 million. Receipt of proceeds obtained under false pretenses is punishable by a term of imprisonment of up to one year and a fine of up to $100,000.
This case was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Former Student Pleads Guilty to Computer Hacking at University of Central MissouriRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former student of the University of Central Missouri pleaded guilty in federal court today to his role in a computer hacking conspiracy.
Joseph A. Camp, 28, of Kansas City, Mo., pleaded guilty before U.S. District Judge Brian C. Wimes to the charge contained in a Nov. 18, 2010 federal indictment. Camp has been in state or federal custody since his prior arrest in a New York investigation in December 2009. Federal charges are still pending in the Western District of New York.
By pleading guilty today, Camp admitted that he participated in an unlawful computer hacking scheme at UCM from March 2009 to March 2010. Camp, who had been a student at UCM in the fall semester of 2009, conspired with Daniel J. Fowler, 23, of Kansas City, Mo., a student and community advisor at UCM. Fowler pleaded guilty to his role in the conspiracy on June 22, 2011 and awaits sentencing. In addition to the computer hacking conspiracy, Fowler also pleaded guilty to one count of computer intrusion causing damage (computer hacking).
Camp and Fowler gained unlawful and unauthorized access to the UCM computer network, which allowed them to view and download large databases of faculty, staff, alumni and student information. They were also able to transfer money to their student accounts and attempted to change grades.
Camp and Fowler developed a computer virus, which they used to infect UCM computers B including an attempt to infect the computer used by the university’s president. They used several strategies to infect computers, such as offering to show vacation photographs on a thumb drive that contained the virus. They successfully distracted and misled at least one UCM administrator and were able to use a thumb drive to download their virus onto his UCM computer. They monitored the administrator’s computer activity and captured his username and password. They used their remote access of this administrator’s computer to remotely turn on the webcam to watch and photograph the administrator sitting at his desk in his office and to download his e-mails. They also obtained the username and password of a residence hall director and used that information to exploit the university’s computer system to conduct financial transactions in an attempt to unlawfully credit their student accounts with UCM funds.
Camp and Fowler successfully used the identities of fellow students, along with their university computer network permissions, to gain access to various portions of the computer network to which they would otherwise not have access. This also enabled them to mask their activities and mislead university authorities as to the identities of those conducting the attacks on the computer network.
Camp and Fowler manually installed the virus on several UCM computers in public areas, such as computer labs and the library. Once the virus was successfully installed on a computer, Camp and Fowler could obtain remote access to the computer, capture a user’s keystrokes, download any of the user’s files and remotely turn on the user’s webcam to watch and photograph the user of the infected computer.
Camp also admitted that he and Fowler obtained access to the affidavit used in support of a search warrant on Camp’s room. Camp used the information in that affidavit to make posts on Facebook.com to communicate threats and harass potential witnesses against them.
Camp was arrested when he traveled to New York in December 2009 to meet another person in order to sell the lists of UCM personal information. He was transported to the Western District of Missouri after the grand jury returned the indictment on Nov. 18, 2010. According to the indictment, Camp offered to sell 90,000 identities to a person in New York for $35,000. After learning that Camp had been arrested in New York, Fowler encrypted and destroyed computer evidence that he thought could be used against him.
Under the terms of today’s plea agreement, Camp will be sentenced to three years in federal prison without parole and must pay $61,500 in restitution.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the University of Central Missouri Police Department and the FBI.Former Southern Illinois Resident Sentenced for Defrauding Federal Unemployment Insurance ProgramRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Cartemus London, 38, of Chicago, Illinois, formerly a resident of Southern Illinois, was sentenced in the United States District Court for the Southern District of Illinois for defrauding the unemployment insurance program. Following his plea of guilty on November 28, 2012, to a one-count indictment for Embezzlement of Public Funds, the District Court sentenced London to a 5 year term of probation, the first 9 months of which he must spend on home confinement. London also was ordered to pay $39,937.00 in restitution to the Illinois Department of Employment Security and to pay a $100 special assessment.
“Lying and cheating to receive unemployment compensation is a crime,” said United States Attorney Wigginton. “Those who defraud the unemployment insurance program undermine support for an important public program and hurt and insult every law-abiding citizen of Southern Illinois, particularly as public programs face economic crises. I will continue to place a high priority on pursuing those who steal from the United States Treasury.”
At the time of his guilty plea, London admitted to being employed by American Airlines between March 2009 and March 2011 while also filing for and receiving unemployment insurance benefits. In order to receive the benefits, London had to certify, approximately every two weeks, to the Illinois Department of Employment Security (IDES) that he was not working and that he was ready, willing, and able to work. He also had to verify that he was actively seeking work. London was supposed to inform IDES of any income he received during the certification period, but he did not report that he was employed and earning money, instead choosing to collect both wages and benefits simultaneously. Between March 2009 and March 2011, London collected $39,937.00 in employment insurance benefits to which he was not entitled.
This case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, the United States Postal Inspection Service, and the Illinois Department of Employment Security. This case was prosecuted by Special Assistant United States Attorney Katherine L. Lewis.
Former Shaw Group Safety Manager at TVA Nuclear Sites Sentenced to 78 Months in Prison for Major Fraud Case Against the United StatesRead the Press Release
Injuries hidden to obtain over $2.5 million in safety bonuses
CHATTANOOGA, Tenn. – On Apr. 11, 2013, Walter Cardin, 55, of Metairie, La., was sentenced to serve 78 months in prison followed by two years of supervised release, by the Honorable Curtis L. Collier, U.S. District Judge. Cardin was convicted at trial in November 2012, after being charged by a federal grand jury with eight counts of major fraud against the Tennessee Valley Authority (TVA), an agency of the United States.
The indictment and subsequent conviction of Cardin was the result of a six-year investigation conducted by the TVA-Office of Inspector General (TVA-OIG). The trial revealed that Cardin, as safety manager for the Shaw Group (formerly Stone & Webster Construction) at TVA’s Brown’s Ferry Nuclear site in Athens, Ala., provided false and misleading information about injuries at that facility as well as TVA’s Sequoyah Nuclear site in Soddy Daisy, Tenn., and TVA’s Watts Bar Nuclear site near Spring City, Tenn. The Shaw Group had a contract with TVA to provide maintenance and modifications to the three facilities and to provide construction for the Brown’s Ferry Unit Number 1 reactor restart. Cardin generated false injury rates which were used by the Shaw Group to collect safety bonuses of over $2.5 million from TVA. As part of a civil agreement filed with the United States in 2008, the Shaw Group paid back twice the amount of the ill-gotten safety bonuses.
Cardin was convicted of providing the false information about injuries by underreporting their number and severity. The false information was generated at the three plants in 2004 and 2005, and at the Brown’s Ferry and Sequoyah plants in 2006. The evidence presented at trial encompassed over 80 injuries, including broken bones, torn ligaments, hernias, lacerations, and shoulder, back, and knee injuries that were not properly recorded by Cardin. Some employees testified that they were denied or delayed proper medical treatment as a result of Cardin’s fraud. Evidence showed that Cardin intentionally misrepresented or simply lied about how the injuries had occurred and how serious the injuries were.
Judge Collier imposed a more severe sentence for Cardin after he found that he had obstructed justice when he testified falsely during the trial. At trial Cardin denied intentionally misclassifying injuries, disputing the evidence to the contrary in the medical records and from injured employees. Cardin also denied knowing that safety bonuses were tied to his classifications of the injuries. Investigators found emails sent by Cardin with this information and additional information tying the safety bonuses to the injury rates in Cardin’s desk drawers. Judge Collier cited the twin aims of deterrence and retribution to justify Cardin’s sentence.
U.S. Attorney William C. Killian commended the efforts by the TVA-OIG investigators in the case who obtained and reviewed over 500,000 documents and interviewed hundreds of witnesses as part of the investigation. In addition to the monetary losses to TVA, U.S. Attorney Killian spoke of the other the consequences of the fraud stating, “The defendant’s practices affected the safety of the work environment of nuclear sites. They resulted in employees becoming more reluctant to report injuries, employers failing to address safety issues on the work sites, and employees working through medical conditions that created risks of additional injuries to themselves and others. We will continue to vigilantly guard against unsafe work environments, as well as waste, fraud, and abuse of government funds.”
This case was investigated by TVA-OIG. Assistant U.S. Attorneys Perry H. Piper and Gregg L. Sullivan represented the United States at trial.