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23 May 2013
16 Men Indicted for Murder-for-hire, Drug-trafficking ConspiraciesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that several Kansas City, Mo., area residents are among 16 defendants indicted by a federal grand jury today for their roles in a large drug-trafficking conspiracy and in an unsuccessful conspiracy to commit murder-for-hire.
Andre Taylor, also known as “Dre,” 47, and his relatives, Harlan Taylor, also known as “Bub,” 35, Raymond Taylor, 30, and Darryl Taylor, also known as “Cash Image” or “Cash,” 35, all of Kansas City, Mo., and Carl Taylor, also known as “Biggs,” 34, of Leavenworth, Kan.; as well as Kenneth Vaughn Cooper, 30, Eric Union, also known as “E,” 29, Bryant Willis, also known as “Spaghetti,” 33, Daniel Howard, also known as “Saw,” 39, and Tyrone A. Rock, 41, all of Kansas City, Mo.; Robert Taylor, also known as “R,” 32, of Grandview, Mo.; Marlon M. Minton, also known as “M,” 40, of Raymore, Mo.; Gregory Johnson, also known as “G,” 34, of Kansas City, Kan.; Allen L. Sanchez, also known as “Homey,” 25, of Overland Park, Kan.; Ruben Machiche, also known as “Cowboy,” 53, of Tucson, Ariz.; and Richard Schoen, also known as “Steve” or “White Guy,” 51, of Cortez, Colo. were charged in a 10-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that most of the defendants – with the only exceptions of Cooper and Union – have participated in a conspiracy to distribute 1,000 kilograms or more of marijuana and five kilograms or more of cocaine since Feb. 1, 2010.
Andre Taylor, Cooper and Union are charged with participating in a conspiracy to commit murder-for-hire. Today’s indictment alleges they conspired in August 2012 to murder Billy Brown for a payment of $10,000, although the murder was not carried out.
Andre Taylor and Cooper are also charged with possessing a machine gun during a crime of violence. The indictment alleges that they were in possession of a .45 ACP M10-type machine gun on Aug. 21, 2012, in furtherance of the conspiracy to commit murder-for-hire. Cooper is also charged with being an unlawful drug user in possession of ammunition. The indictment alleges that Cooper, a user or addict of marijuana, was in possession of 18 rounds of .45-caliber ammunition on Aug. 21, 2012.
In addition to the drug-trafficking conspiracy, Andre Taylor and Howard are charged together in one count of distributing cocaine and Howard is charged with two additional counts of distributing cocaine. Andre Taylor and Ray Taylor are also charged together in one count of distributing cocaine and Raymond Taylor is charged with one additional count of distributing cocaine.
The indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property derived from the proceeds of the alleged violations, including residential property in Kansas City, Mo.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the FBI, the Drug Enforcement Administration, the Jackson County Drug Task Force, the Lee’s Summit, Mo., Police Department and the Kansas City, Mo., Police Department.
22 May 2013
Windham SentencingRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that CYNTHIA D. WINDHAM, age 49, currently of Henderson, Texas, was sentenced today by U.S. District Chief Judge Brian A. Jackson to a term of imprisonment of thirty (30) months. WINDHAM was also ordered to pay restitution in the amount of $217,347.91 and serve a two-year term of supervised release following her release from federal prison.
WINDHAM previously pled guilty to bank fraud in connection with a multi-year scheme to defraud Strategic Case Management, LLC (“Strategic”), located in Baton Rouge, as well as two local banks. While working as the company’s office manager from 2007 through 2009, WINDHAM stole more than 120 checks made payable to her employer, fraudulently endorsed the checks, and gained control over the funds. WINDHAM also stole more than 60 checks that her employer had issued to various third parties, fraudulently altered the checks so that they would appear to be payable to herself, and deposited the checks into her own accounts. WINDHAM admitted that she obtained more than $200,000 through her fraudulent scheme.
U.S. Attorney Donald J. Cazayoux, Jr. stated, “We hope this sentence sends a clear signal to those who would defraud small businesses in our community that they will be prosecuted and face substantial punishment for their crimes.”
This investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Cam T. Le.
White Bear Lake Man Indicted for Using the Identity of Another PersonRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 27-year-old Mexican national living in White Bear Lake was indicted for using someone else’s name, date of birth, and Social Security number for the past several years. Jesus Emmanuel Castro was charged with one count of false claim of citizenship and one count of aggravated identity theft.
The indictment alleges that on July 19, 2012, Castro, also known as Jesus Immanuel Castro-Hernandez, provided the identification information of someone else on an I-9 Employment Eligibility Verification form and attested that he was a citizen of the United States. It also alleges that on July 19, 2012, Castro used the name, date of birth, and Social Security number of another person without lawful authority in relation to the crime of false claim of citizenship.
According to a law enforcement affidavit filed in the case, in April 2013, authorities were investigating an identity theft case involving Castro. On July 19, 2012, Castro applied for employment at an Eagan-based business and completed the employment forms using the victim’s identity.If convicted, Castro faces a potential maximum penalty of five years in prison on the false claim of citizenship count, and a mandatory minimum penalty of two years on the aggravated identity theft count. Any sentence will be determined by a federal district court judge.
This case is the result of an investigation by the South St. Paul Police Department, the Ramsey Police Department, and the United States Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
United States Attorney Alerts Public to Beware of Disaster Fraud in Aftermath of Recent TornadosRead the Press Release
Oklahoma City, Oklahoma – Sanford C. Coats, United States Attorney for the Western District of Oklahoma, today urged Oklahoma residents and businesses to be aware of the potential for fraud in the aftermath of the recent devastating tornados. The United States Attorney’s Office, along with the Department of Justice, the FBI, and the National Center for Disaster Fraud (NCDF), wants to remind the public that anyone can report fraud involving disaster relief operations through the National Disaster Fraud Hotline toll free at (866) 720-5721 or the Disaster Fraud e-mail at [email protected]. The telephone line is staffed by a live operator 24 hours a day, seven days a week.
"I urge everyone to exercise caution and due diligence before giving to anyone soliciting donations on behalf of tornado victims," said United States Attorney Coats. "Regrettably, there are people out there that will take advantage of this tragedy and your generosity for their own profit. Scams come in all forms - such as email, phone calls, or mail solicitations. Be vigilant and cautious to whom you are giving your personal information, and if it’s not a well-known, reputable charity, please do some research before making a contribution."
Before making a donation of any kind, consumers should adhere to certain guidelines, including the following:
- – Do not respond to any unsolicited (spam) incoming emails, including clicking links contained within those messages, because they may contain computer viruses.
- - Be skeptical of individuals representing themselves as surviving victims or officials asking for donations via email or social networking sites.
- - Beware of organizations with copycat names similar to but not exactly the same as those of reputable charities.
- – Rather than following a purported link to a website, verify the existence and legitimacy of non-profit organizations by utilizing various internet-based resources.
- – Be cautious of emails that claim to show pictures of the disaster areas in attached files, because the files may contain viruses. Only open attachments from known senders.
- – To ensure that contributions are received and used for intended purposes, make donations directly to known organizations rather than relying on others to make the donation on your behalf.
- – Do not be pressured into making contributions; reputable charities do not use coercive tactics.
- – Be aware with whom you are dealing when providing your personal and financial information. Do not give your personal or financial information to anyone who solicits contributions. Providing such information may compromise your identity and make you vulnerable to identity theft.
- – Avoid cash donations if possible. Pay by debit or credit card, or write a check directly to the charity. Do not make checks payable to individuals.
- – Legitimate charities do not normally solicit donations via money transfer services.
- – Most legitimate charities maintain websites ending in .org rather than .com
If you believe you have been a victim of fraud by a person or organization soliciting relief funds on behalf of tornado victims, if you discover fraudulent disaster relief claims submitted by a person or organization, or if you know about or suspect fraud involving disaster relief operations, you can report it through the National Disaster Fraud Hotline, toll free, at (866) 720-5721 or the Disaster Fraud e-mail at [email protected]. The telephone line is staffed by a live operator 24 hours a day, seven days a week.
You can also report suspicious e-mail solicitations or fraudulent websites to the FBI’s Internet Crime Complaint Center at www.ic3.gov.
"Investigators and prosecutors are ready to respond to credible allegations of fraud and abuse," said U.S. Attorney Coats. "If you suspect fraud, please report it."
U.S. Attorney Announces Take 25 Child Safety Events in Phoenix and TucsonRead the Press Release
PHOENIX - The National Center for Missing and Exploited Children (NCMEC) created the Take 25 campaign to encourage families to take 25 minutes to talk to their children about safety and abduction prevention. NCMEC estimates that 800,000 children are reported missing in America every year, which is more than 2,000 children each day. Fortunately, most of these children are quickly located.
NCMEC has found that in 81% of attempted abduction cases, children escaped would-be abductors through their own actions. 28% of the children actively resisted (yelling, kicking, pulling away, running away, or attracting attention), while 53% recognized something was not right and responded by walking or running away. Teaching and reassuring children about safety - without scaring them - requires a delicate balance. Take 25 provides parents tools and age-appropriate suggestions for approaching the topic of safety with their children.
“The annual Take 25 national child safety campaign is particularly important this time of year, when children begin their summer breaks from school and have more time on their hands” said U.S. Attorney John S. Leonardo. “Especially in light of recent events arising from abductions, we encourage parents to take time to talk with their children about safety and abduction prevention. We hope that the tools and information provided at this year’s Take 25 events will assist families in keeping their children safe.”
Since 1983, May 25th has been observed as National Missing Children’s Day. In conjunction with observance of this year’s National Missing Children’s Day, we are pleased to offer two free Take 25 child safety events. These events are designed to help parents and others teach children to be alert to potential threats and provide steps that children can take to stay safe. Both events will provide attendees with important safety information and demonstrations, along with Child Identification Kits.PHOENIX: The Phoenix event will be held on Tuesday May 28, 2013, at the Paradise Valley Mall from 10:30 a.m. to 4:00 p.m. Agencies participating in the Phoenix event include the U.S. Attorney’s Office, the U.S. Marshals Service, ATF, DHS, FBI, the Arizona Attorney General’s Office, the Maricopa County Attorney’s Office, the Phoenix Police Department, and the Phoenix Fire Department. Digital child identification kits will be provided free of charge.
TUCSON: The Tucson event will be held on Wednesday, May 29, 2013, at the Foothills Mall from 10:30 a.m. to 4:30 p.m. Agencies participating in the Tucson event include the U.S. Attorney’s Office, the U.S. Marshals Service, ATF, DHS, FBI, the Tucson Police Department, the Arizona Attorney General’s Office, the Pima County Sheriff’s Office, and the Arizona Child Advocacy Center. Digital child identification kits will be provided free of charge and children’s self-defense demonstrations are scheduled.
For more information on NCMEC, visit www.missingkids.com. For more information about the Take 25 campaign, visit www.Take25.org. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.RELEASE NUMBER: 2013-041_Take_25_Events
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Two Sentenced in Marijuana ConspiracyRead the Press Release
LAREDO, Texas - Arturo Hawkins, 51, and Alejandro Garcia-Ortega, 26, have been sentenced to federal prison following their convictions of conspiracy to possess with the intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Hawkins, of Laredo, and Alejandro Garcia-Ortega, of Mexico, pleaded guilty Dec. 27, 2012.
Today, U.S. District Judge Diana Saldaña, who accepted the guilty pleas, sentenced Hawkins to 120 months imprisonment to be followed by an eight-year term of supervised release. Garcia-Ortega received a sentence of 63 months imprisonment to be followed by a four-year term of supervised release.
On Sept. 28, 2012, Border Patrol agents patrolling ranchland near Mines Road in Laredo attempted to pull over a Ford utility truck that was driving in tandem with a black Ford F-150. As agents approached the utility truck on foot, the driver - later identified as Garcia-Ortega - drove into the brush on the side of the road. He then abandoned the moving truck and ran on foot.
Border Patrol agents recovered 41 bundles of marijuana weighing 364.2 kilograms that had been covered with coffee from an aftermarket compartment in the flatbed of the truck. The agents found a cellular telephone which held photographs of Garcia-Ortega and other evidence that led to his identification and subsequent arrest.That same day, Border Patrol agents stopped the Ford F-150 that had been driving in tandem with the truck carrying the marijuana. The driver was identified as Hawkins. According to the plea agreement, telephone records showed Hawkins made a number of telephone calls at the time of the immigration stop on the white utility truck. Agents also discovered a number of maps in Hawkins’ possession of various ranches and trails through the ranches. Hawkins also admitted to acting as a scout for the truck loaded with marijuana.
Both men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations and Border Patrol. Assistant United States Attorney Elizabeth R. Rabe prosecuted the case.
Two Members of Latin Kings Street Gang Sentenced in Indiana for Racketeering Conspiracy and Related CrimesRead the Press Release
Two members of the Latin Kings street gang were sentenced today in Hammond, Ind., federal court for racketeering conspiracy, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana.
Martin Anaya, aka “Lefty,” 42, of Chicago, was sentenced today by U.S. District Judge Rudy Lozano to 360 months in prison after a jury returned a guilty verdict on Sept. 26, 2012, to racketeering and drug conspiracies.
Jason Ortiz, aka “Creeper” 29, of Chicago, was sentenced today to serve 300 months in prison after pleading guilty on July 30, 2010, to racketeering conspiracy by U.S. District Judge Lozano.
According to the third superseding indictment filed in this case, the Latin Kings is a nationwide gang that originated in Chicago and has branched out throughout the United States. The Latin Kings is a well-organized street gang that has specific leadership and is composed of regions that include multiple chapters. The third superseding indictment charges that the Latin Kings were responsible for more than 20 murders.
Also according to the third superseding indictment, the Latin Kings enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault and threats against those who violate the rules or pose a threat to the Latin Kings. Members are required to follow the orders of higher-ranking members, including taking on assignments often referred to as “missions.”
During Anaya’s trial, the government presented evidence of several murders committed by the members of the Latin Kings. In addition, cooperating defendants testified that the Latin Kings were responsible for more than 150 kilograms of cocaine and 1,000 kilograms of marijuana over the course of the racketeering conspiracy.
Evidence of one the murders presented at trial involved the shooting death of Christina Campos that occurred at 107th block of Hoxie Avenue, Chicago, on April 22, 2009. Witnesses testified that Anaya, Ortiz, Brandon Clay, a defendant previously sentenced to 360 months in this case, and a fourth Latin King member drove across the south side of Chicago to a Latin Counts’ neighborhood. The Latin Kings confronted Campos and two other Latin Count members as they were walking to their car. Ultimately, gun shots were fired resulting in Campos being fatally shot. At the trial, the jury acquitted Anaya on the charges related to Campos’ murder. Nevertheless, during the sentencing hearing, Judge Lozano found Anaya responsible for Campos’ death.
During his guilty plea proceeding, Ortiz acknowledged that on Feb. 25, 2007, he, along with four other defendants, rode on a “mission” from Illinois to Griffith, Ind. While armed with three firearms, they were ordered to ambush – that is shoot to kill – rival gang members who were attending a party. Once two Latin Dragon members James Walsh, aka “Jim Boy” and Gonzalo Diaz, aka “Chalo,” left the party, the Latin Kings, including Ortiz, rode up in a vehicle and two of Ortiz’s co-defendants got of the vehicle and shot and killed Walsh and Diaz.
Twenty-three Latin Kings members and associates have been indicted in this case. Aside from Anaya and Ortiz, 20 of the other defendants pleaded guilty and one remains a fugitive.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; ICE Homeland Security Investigations; the National Gang Intelligence Center; the Chicago Police Department; the Houston Police Department; the Griffith Police Department; the Highland Police Department; the Hammond Police Department; and the East Chicago Police Department.The case is being prosecuted by Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section and David J. Nozick of the U.S. Attorney’s Office for the Northern District of Indiana. Andrew Porter of the U.S. Attorney’s Office for the Northern District of Illinois provided significant assistance.
An indictment is not evidence of guilt. Those charged in the indictment are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Arrested in Alleged Scheme to Steal Trailer-loads of GoodsRead the Press Release
WICHITA, KAN. – Three persons from North Hollywood, Calif., have been arrested in an alleged scheme in which semi-trailer loads of goods were stolen from companies in California and an attempt to steal a load of processed beef was made in southwest Kansas, U. S. Attorney Barry Grissom said Wednesday.
Two of the three persons, Oganes Nagapetian, 53, and his wife, Larisa Nagapetian, 46, are scheduled to be arraigned on a federal indictment in the U.S. District Court in Wichita on June 4; the third defendant, Tigran Nagapetian, 50, a brother of Oganes Nagapetian, appeared Tuesday before a U.S. magistrate judge in Los Angeles. He also is scheduled to appear for arraignment in Kansas on June 4. All three are charged in the Kansas federal indictment, Grissom said.
“The defendants are alleged to have engaged in a scheme to steal semi-loads of cargo by pretending to be legitimate freight haulers,” Grissom said. “They are charged with conspiracy, wire fraud and aggravated identity theft. The USDA Office of Inspector General and the FBI, together with their state and local law enforcement partners, are aggressively investigating these cases.”
Grissom said such schemes have become more common across the country in the past few years, and that the large meat packing plants in Kansas – including Dodge City, Liberal, Holcolm and Garden City -- have been targeted on several occasions. A total of seven large plants load dozens of semi-loads per day of packaged meat, which is a commodity that is valuable and relatively easy to sell, he said. A semi-trailer-load of processed beef can be worth $100,000 wholesale, Grissom said. Meat packing plants in Nebraska also have been victimized, he said.
The indictment, which was returned by a federal grand jury in Wichita April 23, alleges that the defendants conspired in November 2011 to steal a load of beef from the Tyson Fresh Meats plant in Holcomb, Kan., and the brothers dropped off a trailer to be loaded, but never came back to pick it up because they thought they were under law enforcement surveillance. In the weeks before the attempted Holcomb theft, loads of shoes, fans and almonds were stolen from three companies in California, according to the indictment.
The indictment alleges that the three conspired to use the identity of a legitimate trucking company in Pennsylvania to bid on hauling the load of Kansas beef to California through a freight broker based in Ohio. Once the hauling contract was awarded, a man allegedly fitting the description of Oganes Nagapetian but using a counterfeit California commercial drivers license in another person’s name dropped off a trailer at the Tyson plant in Holcomb to be loaded. The man never returned, according to the indictment.
The indictment charges all three defendants with conspiracy to commit wire fraud and to steal shipments of freight, which carries a maximum penalty of five years in prison. Oganes Nagapetian and Tigran Nagapetian also are charged with wire fraud, which has a maximum penalty of 20 years in prison, and aggravated identity theft, which has a statutorily-required sentence of two years in prison. In addition, Oganes Nagapetian, a lawful permanent resident from Russia, faces various document fraud charges. Tigran Nagapetian is a naturalized U.S. citizen from Armenia, as is Larisa Nagapetian.
In addition to the USDA OIG and FBI, agencies working on the investigation include Homeland Security Investigations; the Kansas Highway Patrol; the Los Angeles County Sheriff’s Dept. and its “Cargo Cats” unit; the Finney County, Kan., Sheriff’s Dept.; the California Highway Patrol Cargo Theft Interdiction Program; the National White Collar Crime Center; and the National Insurance Crime Bureau. It is being prosecuted by Assistant U.S. Attorney Brent Anderson.
If convicted of the conspiracy count, the defendants face a maximum sentence of five years in prison and a $250,000 fine. Wire fraud carries a maximum of 20 years in prison and a $250,000. Document fraud has a maximum sentence of 15 years in prison, and aggravated identity theft has a mandatory sentence of two years in prison. As in any criminal case, a defendant is innocent unless proven guilty; an indictment merely alleges criminal conduct.Texas Man, Isaac Medrano, Receives Five Year Sentence for Interstate ThreatsRead the Press Release
ISAAC MEDRANO, aged 46, a resident of Corpus Christi, Texas, was sentenced today by U. S. District Judge Helen G. Berrigan for his involvement in making interstate threats to a local family in 2011, announced U. S. Attorney Dana J. Boente.
MEDRANO plead guilty on December 19, 2012, to transmitting death threats by telephone. Judge Berrigan sentenced MEDRANO to the statutory maximum, citing in part, MEDRANO’s prior criminal convictions involving similar conduct. In addition to the five year sentence, Berrrigan sentenced MEDRANO to three years of supervised release following imprisonment.
According to court records, after a relationship failed, MEDRANO made phone calls threatening to kill members of a local family.
This case was investigated by Special Agents of the Federal Bureau of Investigation. The case was prosecuted by Assistant U. S. Attorney Tony Gordon Sanders.
Tax Preparer Sentenced in Elaborate Fraud Case Involving Stolen Identities and Bogus Tax ReturnsRead the Press Release
Tax Preparer Neil Thomsen was sentenced by U.S. District Judge Roger T. Benitez today to 15 years in prison for a massive fraud that involved stealing hundreds of identities and filing false claims with the IRS for more than half a million dollars in bogus tax refunds.
Thomsen was convicted by a federal jury in December 2011 of 32 counts of mail fraud, Social Security fraud, passport card fraud and aggravated identity theft.
According to evidence presented at trial, Thomsen used 292 stolen identities in a two-year crime spree and defrauded the IRS out of more than $515,000 in tax refunds that he was not entitled to receive. The judge ordered Thomsen to pay that amount in restitution.
“Mr. Thomsen thought he could outsmart the IRS at every turn, but he got caught,” Assistant U.S. Attorney Joseph Orabona told the court during today’s hearing. “This is astronomical – 292 people were victimized.”
In arguing for a lengthy sentence, Orabona told the court that Thomsen had shown no remorse, and given the opportunity would likely continue to be an economic danger to the community.
Judge Benitez noted that identity theft is a very serious crime that “can take years - if not a lifetime - to undo” and results in “incredible pain and suffering” for victims. He said he was increasing the sentence in part because Thomsen offered “patently false” testimony in his own defense that amounted to obstruction of justice.
“Tax fraud results in an increasing burden on honest taxpayers and negatively impacts honest citizens’ confidence in our tax system,” said U.S. Attorney Laura Duffy. “Identity theft not only has a long-lasting financial impact on the victims, but also has an emotional impact affecting the stability of victims and their families. Today’s 15-year sentence for Mr. Thomsen sends a message to tax preparers and others who engage in refund schemes and identity theft that the government will prosecute you to the fullest extent of the law and that the punishment will be severe.”
“Neil A. Thomsen is a tax preparer, turned identity and tax thief, who attempted to steal over $515,000 in false tax refunds from the Internal Revenue Service (IRS) ,” said Jose A. Gonzalez, Special Agent in Charge for IRS Criminal Investigation (CI) Los Angeles Field Office. “As evidenced by victim testimony at trial, Thomsen’s identity theft and tax crimes significantly altered people’s financial lives. The investigation, prosecution and today’s sentencing of Neil Thomsen is a model of IRS CI’s strategy to combat criminals stealing identities to file false claims for tax refunds with the Internal Revenue Service (IRS).”
“As a tax preparer, Neil A. Thomsen violated his legal duty to protect the integrity of tax administration and his clients from the heinous crime of identity theft,” said Special Agent in Charge, Julie Parodi, Treasury Inspector General for Tax Administration. “Our agency will continue to work vigilantly to protect taxpayers from unscrupulous tax preparers who are engaged in identity theft.”
According to evidence presented by the government during trial, Thomsen is a tax preparer who turned into an identity thief by electronically filing false and fraudulent 2008 individual tax returns between January and March 2009 using the stolen identities of his former clients, clients of his former employers, and his former co-workers. He received more than $425,000 in false tax refunds from the IRS and earned thousands of dollars in false tax preparation fees to which he was not entitled.
In June 2009, Thomsen fled the United States and moved to Mexico to avoid capture. Instead of staying in Mexico, Thomsen hatched another plan to defraud taxpayers and the IRS in 2010. According to court records and trial evidence, Thomsen, Sean McNaughton, Louie Torres Arias, and Keith Smith conspired to commit fraud by assuming the identities of other persons and filing false tax returns in California, Texas, Nevada, and Arizona.
Court records indicate that Thomsen and his co-conspirators – all of whom have pleaded guilty - submitted false tax returns seeking tax refunds totaling more than $500,000. Thomsen believed he had a fool-proof plan to defraud the taxpayers and the IRS, until, he was arrested on June 17, 2010, ending his crime spree.
The evidence showed that in order to execute his scheme to defraud, Mr. Thomsen used his IRS electronic filing number to set up accounts with two banks in order to facilitate the receipt of tax preparation fees and tax refunds. The banks then mailed refund checks and debit cards to Mr. Thomsen, which facilitated his access to the proceeds of the false tax returns. The evidence showed that Mr. Thomsen deposited refund checks into his bank accounts and cashed debit cards at multiple ATM machines throughout Southern California.
The evidence further showed that Mr. Thomsen used several identities to lease office space, establish mail accounts, obtain telephone numbers, obtain a wireless card, purchase a car, and purchase computer equipment, including a laptop computer, external hard drive, and cell phone. The evidence also showed that Mr. Thomsen had several false identification documents in his possession in the names of other persons on June 17, 2010, which was the day he was arrested attempting to enter the United States from Mexico at the San Ysidro Port of Entry.
This case was investigated by Special Agents with the Treasury Inspector General for Tax Administration, and the Internal Revenue Service, Criminal Investigation.
DEFENDANT Criminal Case No. 10CR2810-BEN Neil A. Thomsen SUMMARY OF CHARGESCounts 1 through 4: Title 18, United States Code, Section 1341 – Mail Fraud
PARTICIPATING AGENCIES
Maximum Penalties: 20 years of imprisonment and $250,000 fine per count
Counts 7 through 16: Title 18, United States Code, Section 287 – False, Fictitious, and Fraudulent Claims
Maximum Penalties: 5 years of imprisonment and $250,000 fine per count
Counts 17 through 24: Title 42, United States Code, Section 408(a)(8) – Social Security Fraud
Maximum Penalties: 5 years of imprisonment and $250,000 fine per count
Counts 25 through 32: Title 18, United States Code, Section 1028A – Aggravated Identity Theft
Maximum Penalties: At least one term of imprisonment of 2 years consecutive to any other sentence
Count 33: Title 18, United States Code, Section 1546(a) – Passport Card Fraud
Maximum Penalties: 25 years of imprisonment and $250,000 fine
Count 34: Title 18, United States Code, Section 1028A – Aggravated Identity Theft
Maximum Penalties: At least one term of imprisonment of 2 years consecutive to any other sentenceTreasury Inspector General for Tax Administration
Internal Revenue Service, Criminal InvestigationTax Business Owner Pleads Guilty to Fraud and Identity TheftRead the Press Release
Over $15 Million in Fraudulent Tax Refunds Filed for “Stimulus Payments”
ATLANTA – Kevin J. Sonnier pleaded guilty today to filing false federal income tax returns using stolen identities that claimed millions of dollars in bogus refunds.
“The career of a tax cheat who victimized over 15,000 individuals is over,” said United States Attorney Sally Quillian Yates. “This defendant will also forfeit millions in ill-gotten tax refunds. This year we have devoted significant resources to address this growing problem and to taking these criminals off the streets.”
“Today’s announcement exemplifies IRS Criminal Investigation’s intense focus and the rigorous pursuit of identity theft and refund fraud,” said Veronica Hyman-Pillot, Special Agent in Charge. “These criminals must be and will continue to be pursued in order to obtain justice for the victims as well as justice for our nation.”
“The U.S. Postal Inspection Service is charged with protecting the U.S. mail from illegal use. Postal Inspectors will remain steadfast in this mission and will continue to partner with other law enforcement agencies and the U.S. Attorney’s Office to bring resolution and justice to individuals who continue to take advantage of the system.” said Keith Morris, Postal Inspector in Charge of the Atlanta Division.
According to United States Attorney Yates, the charges and other information presented in court; from approximately July 2010 to January 2013, Sonnier, 44, of Ellenwood, Ga., operated “Sonnier Tax Service,” a tax preparation business in Clayton County, Ga. Sonnier, working with others, led thousands of victims to believe that they could apply for “stimulus payments” from the federal government by providing their names and Social Security numbers. Sonnier used toll-free telephone numbers and web sites to advertise the “stimulus payments” and collect victims’ personal information. He also recruited “runners” who promoted the scheme by word of mouth and collected victims’ personal information for Sonnier’s use.
In actuality, no stimulus payment existed and Sonnier used the victims’ personal information to file fraudulent tax returns on their behalf that claimed over $15 million in bogus refunds. On the returns, Sonnier claimed false income amounts, student credits, and earned income credits to receive the bogus tax refunds. The victims did not know that Sonnier had filed tax returns in their names. Sonnier used the profits generated from this scheme for his own personal benefit, including the purchase and improvement of real estate throughout the state of Georgia.
As part of the plea agreement, Sonnier has agreed to forfeit his interest in 17 separate pieces of real estate located throughout Clayton County, thousands of dollars that were previously seized from his bank accounts, and over 80 electronic devices and items of jewelry that were previously seized by the government. In addition, Sonnier agreed to a money judgment of at least $7 million and full restitution to the IRS.
Sonnier pleaded guilty to one count of wire fraud, one count of conspiracy to defraud the United States, and one count of aggravated identity theft. The wire fraud count carries a maximum sentence of 20 years in prison, the conspiracy count carries a maximum sentence of five years in prison, and the aggravated identity theft charge carries a mandatory two-year consecutive sentence to any other sentence imposed. Each count also carries a fine of up to $250,000.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for September 26, 2013, at 10 a.m. before United States District Judge Charles A. Pannell, Jr.
This case is being investigated by Special Agents of the Internal Revenue Service – Criminal Investigation and Postal Inspectors with the United States Postal Inspection Service. If you believe you may be a victim of tax return-related identity theft, please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorneys Stephen H. McClain and Thomas J. Krepp are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Tarentum Drug Dealers Gets over 12 1/2 Years for Drugs and GunsRead the Press Release
PITTSBURGH. Pa. - A resident of Tarentum, Pa., has been sentenced in federal court to 151 months imprisonment on his conviction of federal drug and firearms offenses, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Curtis Veasley, 35.
According to information presented to the court, Veasley stored and sold both crack cocaine and heroin from the Tarentum residence where he lived with his girlfriend Kayshala Lincoln and two small children ages 9 and 3. When police searched the home they found drugs, guns, ammunition, a bullet-proof vest and $7,540 in cash. As a felon, the defendant is precluded from possessing a firearm or ammunition under federal law.
During the sentencing hearing, Judge McVerry stated that the illegal drug trade is the "root of evil" and that the defendant had harmed his children by involving himself in drug trafficking.
Veasley has charges from Lower Burrell pending before Westmoreland County Judge Alfred Bell for an alleged armed home invasion from 2008.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tarentum Police Department for the investigation leading to the successful prosecution of Veasley.
Somerset County, N.J., Man Charged with Possession of Child PornographyRead the Press Release
TRENTON, N.J. – A Somerset County, N.J., man made his initial court appearance today after being arrested for allegedly possessing multiple, sexually suggestive images of children, U.S. Attorney Paul J. Fishman announced.
Patrick T. Deck, 53, of Watchung, N.J., is charged by Complaint with one count of possessing child pornography. He made his initial court appearance this morning before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and was detained without bail.
According to documents filed in this case and statements made in court:In August 2012, law enforcement agents executed a search warrant at Deck’s residence. They determined that Deck’s laptop computer contained multiple images of child pornography, which appeared to have been downloaded from the Internet.
The possession of child pornography count with which Deck is charged is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, for the investigation leading to the arrest. Fishman also thanked the N.J. State Police and the Warren County Prosecutor’s Office for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Deck, Patrick Complaint
Smith County Residents Sentenced for Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two Smith County, Texas residents have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Clinton Daniel McCaa, 32, of Whitehouse, Texas, pleaded guilty on Jan. 9, 2013, to conspiracy to distribute and possess with intent to distribute methamphetamine and was sentenced to 80 months in federal prison today by U.S. District Judge Leonard E. Davis.
Tara McDonald, 40, of Tyler, Texas, pleaded guilty on Jan. 9, 2013, to maintaining a place for the distribution and use of methamphetamine and was sentenced to 38 months in federal prison today by Judge Davis.
According to information presented in court, during 2011, McCaa acquired methamphetamine from Clinton Squires of Terrell, Texas, which McCaa then distributed to multiple persons in Tyler, Texas. During this time, McCaa lived with McDonald at her residence on Meadow Creek Drive in Tyler, Texas. McDonald admitted that she knew McCaa was involved in the distribution and use of methamphetamine. Furthermore, McDonald allowed McCaa to store methamphetamine and other substances at her residence.
A federal indictment was returned on May 2, 2012, charging McDonald and McCaa with federal drug crimes.
This case was investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Slippery Rock Man Charged with Receiving, Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Butler County, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of receipt and possession of materials depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The six-count indictment named Mark Beres, 53, as the sole defendant.
According to the indictment, on July 1, 2008, Aug. 30, 2008, Feb. 1, 2009, Dec. 20, 2010, and April 11, 2011, Beres knowingly received visual depictions of minors engaged in sexually explicit conduct by computer and the United States Mail. In addition, the indictment charges that on or about April 23, 2013, Beres knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 110 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The United States Postal Inspection 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.
Shiprock Woman Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – U.S. Attorney Kenneth J. Gonzales and John Billison, Director of the Navajo Nation Division of Public Safety announced that Tina Benally, 38, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to a federal assault charge.
Benally was indicted on Feb. 27, 2013, and charged with (1) assault resulting in serious bodily injury and (2) child abuse. Benally was arrested on March 6, 2013, and has been in federal custody since that time.
During today’s proceedings, Benally pled guilty to the assault charge and admitting that on March 2, 2012, after drinking alcohol, she drove her vehicle at excessive speeds and crashed into a semi-truck. There were two passengers, including a minor child, in Benally’s vehicle at the time of the collision and the adult passenger suffered multiple fractures that required surgery.
Benally remains in federal custody until her sentencing hearing, which has yet to be scheduled. At sentencing, Benally faces a maximum penalty of ten years in prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
San Francisco Investment Adviser Pleads Guilty to Defrauding InvestorsRead the Press Release
SAN FRANCISCO - Hausmann-Alain Banet (a/k/a Anzoumana Ousmann Gbane, a/k/a Gbane Anzoumana a/k/a Ousmann Gbane, a/k/a Ousmann Gbane Anzounan Banet, a/k/a Ousmann-Alain Gbane) pleaded guilty today to mail fraud and wire fraud, United States Attorney Melinda Haag announced.
In pleading guilty, Banet admitted that from approximately June 2008 through July 2012, he induced numerous individuals to give him money by falsely representing that he, on behalf of his investment management company, Lion Capital Management Group, LLC, would invest the money in hedge funds. Banet admitted that he falsely told these individuals that he had invested their money, but that he actually spent the money for personal and business expenses, all unrelated to investment income. Banet also admitted that, as part of his scheme, he sent quarterly investment account statements to victims in which he falsely stated that the accounts had realized gains. Banet further admitted that, as a result of his scheme, he received approximately $1.3 million from the victim investors.
Banet, 49, of San Francisco, California, was indicted by a federal grand jury on October 2, 2012. He was charged with six counts of wire fraud, eleven counts of mail fraud, and six counts of money laundering. Banet pleaded guilty to two counts of wire fraud and two counts of mail fraud. In his plea agreement, Banet agreed to forfeit his interest in his residence in San Francisco, approximately $78,000 in bank and trading accounts in his name; and his Mercedes Benz. Banet also agreed to pay restitution in an amount to be determined by the Court, but not less than $1.2 million. Banet remains in the custody of the United States Marshal’s Service.
Banet’s sentencing is scheduled for August 6, 2013, at 2:00 p.m. before the U.S. District Court Judge William Alsup in San Francisco. The maximum statutory penalty for each count of wire fraud and mail fraud, in violation of 18 U.S.C. §§ 1343 and 1341, respectively, is 20 years imprisonment and a fine of $250,000 or twice the amount of the fraud. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Denise Marie Barton is the Assistant United States Attorney who is prosecuting the case with the assistance of Allen Williams, Pat Mahoney, and Elizabeth Garcia. The prosecution is the result of an approximately five month investigation by the Federal Bureau of Investigation, with the assistance of the Securities and Exchange Commission and Immigration and Customs Enforcement.
Sacramento Man Sentenced to 30 Months for Selling Crack Near Elementary SchoolRead the Press Release
OAKLAND - Oscar Baker Phillips was sentenced on May 20, 2013, to thirty months in prison, followed by six years of supervised release, United States Attorney Melinda Haag announced.
Phillips pleaded guilty on March 5, 2013, to distribution of crack cocaine within 1,000 feet of a school. The guilty plea before Magistrate Judge Kandis A. Westmore was accepted by District Court Judge Saundra B. Armstrong on May 20, 2013. In the plea agreement, Phillips admitted that on July 3, 2012, while at a location on Sycamore Street in Oakland, he knowingly sold 0.27 grams of cocaine base for $20.00. The location is within 1,000 feet of the St. Andrew’s Baptist Missionary Elementary School and Kindergarten in Oakland, California.
Phillips, 34, most recently a resident of Sacramento, was indicted by a federal grand jury on October 25, 2012. Phillips was on probation at the time of the instant offense, and has four prior misdemeanor convictions and three prior felony convictions, including domestic violence and narcotics-related offenses.
The sentence was handed down by District Court Judge Saundra B. Armstrong following a guilty plea to one count of violation of 21 U.S.C. § 841(a)(1) and 860(a). Phillips has been in continuous federal custody since his initial appearance on the indictment.
Phillips was the eighth defendant to be sentenced in the last 18 months as part of Operation Safe Schools, an ongoing series of cases targeting drug trafficking near schools in high-crime areas.
Steven Booker was sentenced on January 25, 2012, to 27 months in prison, followed by six years of supervised release, for selling 0.5 grams of crack cocaine in the vicinity of 96th Avenue and Birch Street in Oakland, California, within 1,000 feet of Elmhurst Community Preparatory School. Case No. CR 11-00768-CW.
Demone Crump was sentenced on February 15, 2012, to 12 months in prison, followed by six years of supervised release, for selling 0.75 grams of crack cocaine in the vicinity of 24th and Myrtle Streets in Oakland, California, within 1,000 feet of McClymonds High School. Case No. CR 11-00765-PJH
Taronta Greely was sentenced on February 15, 2012, to 12 months and one day in prison, followed by six years of supervised release, for selling 0.76 grams of crack cocaine in the vicinity of Jefferson Street and Martin Luther King Jr. Way in Oakland, California, within 1,000 feet of both the Bright Future Early Learning Center and Devry University. Case No. CR 11-00766-SBA.
Clifford Nivens was sentenced on February 28, 2012, to 15 months, followed by six years of supervised release, for selling 0.55 grams of crack cocaine in the vicinity of 32nd and West Streets in Oakland, California, within 1,000 feet of Hoover Elementary School. Case No. CR 11-0762-CW.
Rondell Bullard was sentenced on May 15, 2012, to 18 months in prison, followed by six years of supervised release, for selling 0.43 grams of crack cocaine in the vicinity of 32nd and West Streets in Oakland, California, within 1,000 feet of Hoover Elementary School. Case No. CR 11-00767-CW.
Yohannes Randy Herald was sentenced on October 19, 2012, to 33 months, followed by six years of supervised release, for selling 0.94 grams of crack cocaine in the vicinity of 8th and Henry Streets in Oakland, California, within 1,000 feet of Prescott Elementary School. Case No. CR 11-00763-SBA.
Michael Baca was sentenced on November 26, 2012, to 12 months and 1 day, followed by six years of supervised release, for selling 44 pills of Carisoprodol in the 24000 block of Soto Road in Hayward, California, within 1,000 feet of Fairview Elementary School. Case No. CR 12-0603-CW.
Rochester Woman Sentenced for Aiding in the Escape of an InmateRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Lakesia Binion, 34, of Rochester, N.Y., who was convicted of making material false statements, was sentenced to 10 months of home confinement to be followed by three years of supervised release by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Jennifer M. Noto, who handled the case, stated that the defendant and others were involved in the escape of federal inmate Joseph Mitchell. Mitchell, along with Eddie R. Palmer, escaped from the Monroe County Jail during the evening of March 31, 2011, by sawing through two of the jail’s bars and jumping out of the facility’s second story window. Mitchell and Palmer were apprehended on April 8, 2011, when they were found hiding in a camping trailer located on a residential property in Sodus, N.Y.
During the ensuing investigation, officers learned that Binion arranged for a lawyer to deliver a bible, a cellular telephone and charger to Mitchell while Mitchell was in jail awaiting trial on a pending narcotics indictment. The bible contained saw blades hidden inside. After Mitchell escaped, the defendant also picked up Mitchell and drove him and fellow escapee Palmer to Sodus. The United States Marshall Service spoke with Binion on April 2, 2011 during the escape investigation and the defendant denied having any knowledge of the escape and denied having any contact with Mitchell after their last visit at the Monroe County Jail.
Joseph Mitchell pleaded guilty to escape and drug and gun charges and will be sentenced on June 26, 2013. Eddie Palmer pleaded guilty to assisting in the escape and is scheduled to be sentenced on July 9, 2013. Mathias Smith was sentenced to two years probation for his role in the escape. The lawyer, Rudolph Lepore, was convicted on a state charge of Promoting Prison Contraband and sentenced to five years probation.
“This case came to a speedy and successful conclusion thanks to the tremendous cooperation between all levels of law enforcement," said U.S. Attorney Hochul. "While jail escapes are extremely rare, this case demonstrates that they inevitably lead to capture and further convictions."
The conviction was the culmination of an investigation on the part of Deputies of the United States Marshal's Service, under the direction of Charles Salina and Investigators of the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn.Rochester Man Pleads Guilty to Firearm ChargeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Clive Hamilton, 30, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer, to possession of a firearm by an unlawful user of a controlled substance. The charge carries a maximum penalty of 10 of years years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that the defendant was arrested on August 12, 2012 in his vehicle while in possession of two registered handguns and a quantity of marijuana. Hamilton will forfeit the handguns.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and members of the Town of Greece Police Department, under the direction of Todd K. Baxter.Sentencing is scheduled for August 14, 2013, at 10:30 a.m. before Judge Larimer.
Rochester Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Walter Porter, 30, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer, to being a felon in possession of a firearm and possession of heroin with intent to distribute. The firearm offense carries a maximum penalty of 10 of years in prison, a fine of $250,000 or both and the drug trafficking charge carries a maximum penalty of 20 years and a fine of $1,000,000 or both.
Assistant U.S. Attorney Jennifer Noto, who is handling the case, stated that the defendant was arrested on January 31, 2013 after law enforcement officers executed a search warrant at his residence at 24 OK Terrace in Rochester. During the search, officers found a loaded 12 gauge shotgun and a quantity of heroin. The defendant was previously convicted of a firearms felony in Monroe County Court in November 2002.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division and members of the Greater Rochester Narcotics Enforcement Task Force (GRANET), under the direction of Lieutenant Gerald Smith.Sentencing is scheduled for August 1, 2013, at 10:00 a.m. before Judge Larimer.
Robert Kirk Belton 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 May 20, 2013, before U.S. District Judge Sam E. Haddon, ROBERT KIRK BELTON, a 49-year-old resident of Poplar, appeared for sentencing. BELTON was sentenced to a term of:
Prison: 88 months
Special Assessment: $100
Supervised Release: 5 years
BELTON was sentenced in connection with his guilty plea to possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On September 5, 2012, BELTON fled the scene of a traffic stop near Wolf Point. While driving away, BELTON threw a Crown Royal bag out the window. The bag contained approximately $12,000 and over 50 grams of a substance containing a detectable amount of methamphetamine.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BELTON will likely serve all of the time imposed by the court. In the federal system, BELTON does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Fort Peck Law Enforcement, and the Roosevelt County Sheriff's Office.
Ridgeway Man Pleads Guilty to Illegally Possessing 14 FirearmsRead the Press Release
Frederick J. Zirkelbach, 48, of Ridgeway, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with being a felon in possession of firearms, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on April 2nd, alleged that Zirkelbach was found to be in possession of 14 firearms and ammunition on March 9, 2013, following the execution of a search warrant at his residence in Ridgeway. Prior to that date Zirkelbach had been convicted of two felony offenses which made it illegal under federal law for him to possess firearms or ammunition.
Zirkelbach faces up to 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration. The firearms and ammunition he illegally possessed are also subject to forfeiture to the United States.
Zirkelbach has been held without bond in the custody of the United States Marshal since his arrest on the federal charges. He was returned to the Marshal’s custody to await sentencing which was set for September 20th at 10:30 a.m. at the United States District Courthouse in Benton.
The case was investigated by the District 19 office of the Illinois State Police and the Carmi office of the Southern Illinois Drug Task Force with the assistance of the Ridgeway Police Department.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Removed Alien Charged with Illegally Re-entering United StatesRead the Press Release
PITTSBURGH, Pa. - An individual found in Pittsburgh has been indicted by a federal grand jury in Pittsburgh on a charge of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.The one-count indictment named Antonio Valencia-Martinez, 26, formerly from Mexico, as the sole defendant.
According to indictment, Antonio Valencia-Martinez, an alien, was removed from the United States by United States Immigration and Customs Enforcement on Nov. 1, 2007 and Sept. 19, 2009. Antonio Valencia-Martinez was found on May 3, 2013 in Pittsburgh.
The law provides for a maximum total sentence of two 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 Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, 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.
Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS – In the District of Minnesota, separate charges have been filed against three foreign nationals who allegedly entered the United States illegally after being deported as criminals.
The first indictment alleges that on April 21, 2013, authorities found Lorenzo Armendariz-Sanchez, age 45, in the U.S. illegally after he had been previously deported to Mexico. His deportation followed a 1998 Faribault County conviction for burglary in the first degree. On April 21, 2013, authorities identified Armendariz-Sanchez, also known as Lorenzo Sanchez Armendariz, as an illegal alien with a criminal record while he was in the Blue Earth County jail, where he was being held after an arrest for burglary and domestic assault.
Identification was made through the U.S. Immigration and Customs Enforcement’s (“ICE”) Criminal Alien Program (“CAP”). One of the goals of that program is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted.If convicted of the federal charge now levied against him, Armendariz-Sanchez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.
The second indictment alleges that on April 30, 2013, authorities found Victor Ernesto Hernandez-Navaez, age 31, illegally in the U.S. after he had been previously deported to Mexico. His deportation followed a 2001 Ramsey County conviction for possession of a controlled substance with intent to distribute. On April 30, 2013, he was identified as an illegal alien via the CAP while in custody in the Pine County Jail on drug possession charges.
If convicted of the federal charge now filed against him, Hernandez-Navaez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the ICE ERO. It is being prosecuted by Assistant U.S. Attorney Kevin S. Ueland.
The third indictment alleges that on March 23, 2012, authorities found Carlos Alberto Umansor-Mejia, age 31, illegally in the U.S. after he had been previously deported to Honduras. His deportation followed a 2007 Benton County conviction for criminal sexual conduct in the third degree. On March 23, 2012, he was identified as an illegal alien via the CAP while in custody in the Sherburne County Jail on a state fugitive warrant.
If convicted of the federal charge now filed against him, Umansor-Mejia faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the ICE ERO. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.
In some instances, federal prosecution will occur only after the individual is prosecuted for the recent underlying offense. The men in these three cases will remain in custody until their current federal cases are resolved. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Pittsburgh Man Charged with Tax OffensesRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man has been indicted by a federal grand jury in Pittsburgh on charges of filing false income tax returns, submitting false writing or document to the government and making a false statement to government, United States Attorney David J. Hickton announced today.
The four-count indictment named Wayne R. Lieberman as the sole defendant.
According to the indictment, Lieberman submitted false personal income tax returns to the IRS for the years 2007 and 2008. He also allegedly made false statements to the IRS in matters relating to income tax returns filed for clients of his business as a Tax Return Preparer.
The law provides for a maximum total sentence of 16 years in prison, a fine of $100,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James Y. Garrett is prosecuting this case on behalf of the government.
Special Agents Robert Kickbush of the Internal Revenue Service, Criminal Investigation, and Rob Lasich, TIG/TA, 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.
Pierre Man Sentenced for Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota man convicted of Possession of a Controlled Substance was sentenced on May 20, 2013 by U.S. District Judge Roberto A. Lange.
Rider Sheard, age 19, was sentenced to 2 years’ probation, a $1,500 fine, and a $25 special assessment to the Federal Crime Victims Fund.
Sheard was indicted for Distribution of a Controlled Substance by a federal grand jury on September 19, 2012 and pled guilty to a Superseding Information on February 5, 2013. The charge stems from an incident wherein Sheard, on or about May 17, 2012, knowingly and intentionally possessed marijuana, a Schedule I controlled substance.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Photographer Charged with Possession and Transportation of Child PornographyRead the Press Release
Jackson, TN – Robert Gregory Dempsey a/k/a “Jesse Rockwell,” 48, of Perry County, TN, was indicted Monday by a federal grand jury in Jackson, TN, on one count of possession of child pornography and one count of interstate transportation of child pornography, announced U.S. Attorney Edward L. Stanton III.
Dempsey was the owner and operator of “Rockwell Photography” and used social media and the internet to promote his business throughout western and central Tennessee, including Nashville and the Perry County area.
If convicted on these charges, Dempsey could face up to 20 years in federal prison and fines of up to $250,000 on each count. There is no parole in the federal system.
This case is being investigated by the FBI and the Perry County Sheriff’s Department. Assistant U.S. Attorney Deb Ireland is representing the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”# # # #
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Phoenixville Man Charged in Multi-Million Dollar Fraud SchemeRead the Press Release
Timothy D. Burns, 33, of Phoenixville, Pennsylvania was charged today by Information in a $20 million fraud scheme that involved mail fraud, wire fraud and loan fraud announced, United States Attorney Zane David Memeger. Defendant Burns was the sole owner of ESG Family Services, among other businesses. ESG Family Services provided billing paying and other personal services to clients. To facilitate his work and, as it developed, his alleged fraud, defendant Burns induced many of his Family Services clients to add him as a signatory to their bank accounts. He also allegedly represented to clients and others that he could acquire shares of Facebook and other social media stock before their public offerings at favorable prices.
According to the information, between at least May 2007 and September 2012, Burns converted money entrusted to him by more than 50 clients and would be investors for his personal gain. In 2011, without their knowledge or consent, Burns allegedly used his clients’ and investors’ money to buy a shore home in Avalon, New Jersey for more than $4 million and to make a down payment on a commercial office building in Conshohocken, Pennsylvania. In 2012, he allegedly misrepresented to a bank that he had acquired stock, when he had not, to obtain a $6 million mortgage loan on the commercial office building. It is further alleged that he used the fraudulently acquired shore home as collateral on a second loan of $1.5 million issued to him by the same bank to buy the office building.
If convicted of all charges, Burns faces an advisory sentencing guideline range of between 151 and 188 months in prison, a $2.5 million fine, a five-year term of supervised release, a $400 special assessment and restitution of just under $20 million. In addition, the defendant is liable in forfeiture in the same amount.
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Pamela Foa.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Personal Trainer Arrested for Conspiracy to Distribute SteroidsRead the Press Release
NEWARK, N.J. – A Middlesex County, N.J., man who works as a personal trainer was arrested this morning for conspiring to distribute more than 89,000 units of anabolic steroids in both pill and liquid form, U.S. Attorney Paul Fishman announced.
Richard Gray, 60, of Port Reading, N.J., was arrested this morning by special agents of the Department of Homeland Security, Homeland Security Investigations. He is charged by Complaint with conspiracy to distribute anabolic steroids. He is scheduled to make his initial appearance later today before U.S. Magistrate Judge Mark Falk.
According to the Complaint: On April 23, 2013, agents of Customs and Border Protection (CBP) conducted a routine border inspection of a package that was shipped from China to a package consignment store in Edison, N.J. The package’s mail declaration stated that it contained hardware products and was addressed to a business, Custom Parts, in care of the consignment store. When CBP inspected the package, agents found approximately 110 ampules that were individually labeled as different types of anabolic steroids, including “Mastabol, Dromastanolone Enanthate,” “Testosterone,” “Boldenone Undecylenate,” “Nandrolone Decanoate,” and “Testosterone Enanthate.”
Store employees identified Gray as the person who was supposed to pick up the package and told investigators the store was holding another package for Gray, which was nearly identical to the first package and had been sent by the same shipper. Gray was arrested when he arrived at the store to pick up the second package.
Gray then consented to have his home searched. Investigators found in the storage room in Gray’s basement a substantial amount of anabolic steroids, which were in both liquid and pill form. Some of the steroids were meticulously labeled and organized in boxes and individual trays, which were then placed on metal shelves. Others were stored in large, gallon-sized plastic bags.
U.S. Attorney Fishman credited special agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark; special agents of U.S. Customs and Border Protection, under the direction of Robert E. Perez, director of New York Field Operations; and the Middlesex County Prosecutor’s Office, under the direction of Acting Prosecutor Andrew Carey, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Courtney M. Oliva of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
Gray, Richard Complaint
Attachment A
Attachment B
Attachment CPeabody Man Pleads Guilty to Heading Identity Theft RingRead the Press Release
BOSTON – A Peabody man was convicted today of heading an interstate identity theft ring that used the identities of a Florida-based company’s employees to cause almost $370,000 in credit losses at large retail stores throughout New England.
William Dodge, 46, pleaded guilty before U.S. District Judge Joseph L. Tauro to access device fraud (that is, credit card fraud), conspiracy to commit access device fraud, and aggravated identity theft. Sentencing is scheduled for August 14, 2013.
When Dodge was in Florida, he met the benefits administrator for a Florida-based company and obtained from her lists of employees’ identity information, such as their names, dates of birth, and Social Security numbers. Upon traveling to Boston, Dodge and a group of at least five conspirators used the lists to obtain false identity cards that looked like Massachusetts drivers’ licenses and bore the co-conspirators’ pictures, but the Florida company employees’ personal information.
With these false identity cards, Dodge and the co-conspirators posed as the Florida company’s employees at large chain retail stores. In a typical fraudulent transaction, a conspirator would pose as the employee, pretend that he or she had left his store credit card at home, and ask the store personnel to provide the employee’s store credit card number. If the identity victim did not have an account with the store, the conspirator would use the false identity card to apply for a new credit account in the identity victim’s name. Upon obtaining a credit card number, the conspirator would use the account to purchase gift cards and other items such as electronics that they could resell. The store would lose the money, because the co-conspirators did not intend to pay the credit bill.
The conspiracy netted at least $368,000 in merchandise, with Dodge personally responsible for about $183,000 of the losses. Because Dodge directed the group’s actions, he took about 50% of his co-conspirators’ fraud proceeds.
On the charge of access device fraud, Dodge faces a statutory maximum penalty of 10 years in prison followed by three years of supervised release; on the charge of conspiracy to commit access device fraud, he faces a maximum penalty of five years in prison, followed by three years of supervised release; and on the charge of aggravated identity theft, he faces a mandatory penalty of two years in prison, followed by one year of supervised release. He also faces a fine of $250,000 or twice the gross monetary gain or loss, restitution, and forfeiture.
United States Attorney Carmen M. Ortiz, Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Boston Police Commissioner Edward Davis made the announcement today. The U.S. Attorney’s Office thanks the Florida company for cooperating during the investigation. The case is being prosecuted by Assistant U.S. Attorney Scott L. Garland of Ortiz’s Cybercrime Unit.
Norwalk Man Sentenced to 10 Years in Federal Prison for Narcotics TraffickingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MARVIN WOOTEN, also known as “Smash,” 43, of Norwalk, was sentenced today by United States District Stefan R. Underhill in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for his role in a southwestern Connecticut narcotics trafficking ring.
This matter stems from “Operation There It Is,” a six-month wiretap investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, a total of 24 individuals have been charged in federal court with various narcotics offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford. During the investigation, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, between September 2012 and January 2013, WOOTEN regularly purchased multi-hundred gram quantities of cocaine from various sources of supply, including individuals who were selling cocaine out of a Bridgeport barbershop. WOOTEN then converted the cocaine to crack cocaine and sold it to customers for a significant profit.
WOOTEN has been detained since his arrest on January 14, 2013. On February 27, he pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”).
WOOTEN’s criminal history includes a manslaughter conviction related to his involvement in a 1993 homicide of a seven-year old girl who was caught in the crossfire between two groups of individuals in a drug turf war. After being featured on America’s Most Wanted in 1995, WOOTEN was apprehended in Ohio, returned to Connecticut and convicted. He served approximately 11 years of imprisonment before being discharged from the Connecticut Department of Correction.
In 2012, just months after his term of state probation concluded, WOOTEN was stopped at an airport in Phoenix, Ariz., while in possession of more than $48,000 in cash.
Acting U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – which is composed of members of the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The United States Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant United States Attorneys Sarah Karwan and Robert Spector.
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(203) 821-3722 [email protected]New Jersey Doctor Convicted by Federal Jury for Writing Illegal Oxycodone Presctiptions in Drug Distribution ConspiracyRead the Press Release
TNEWARK, N.J. – An internal medicine specialist who wrote illegal prescriptions for oxycodone was convicted today by a federal jury in New Jersey for his role in a conspiracy that put tens of thousands of prescription pills on the streets for resale, U.S. Attorney Paul J. Fishman announced.
Michael Durante, 59, of Montclair, N.J., was convicted of 16 of the 17 counts in the superseding indictment against him: one count of conspiracy to distribute oxycodone and 15 counts of unlawful distribution of the drug. The jury returned the verdict on the second day of deliberations following a nearly three-month trial before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to the evidence at trial:
Between 2009 and March 2011, Durante regularly sold prescriptions of oxycodone to several people knowing the drugs would be resold on the street for profit. Two individuals in particular – Andre Domando, 48, of Belleville, N.J., and Dennis Abato, 61, of Lakewood, N.J. – each had a stable of patients they brought to Durante’s medical practice in Nutley, N.J., so he could give them prescriptions for large quantities of oxycodone that would ultimately be sold through the redistribution network. Domando and Abato have each pleaded guilty in connection with the scheme.
In February of 2011, several undercover recordings were produced that showed Durante’s understanding of the illegal distribution he facilitated. At one point, Durante said he knew Domando was reselling the prescriptions for a large profit, stating, “I just know because my friend does the same thing you do. He sells these for a thousand to twelve hundred dollars a bottle.” Durante, referring to prescriptions he provided to Domando over the previous week, then stated “[s]o two last week, four this week – you should have six thousand dollars in your pocket,” adding, “I know what people do with these things. You gotta have at least twelve, fifteen thousand dollars a month of income here.”
Durante was also captured on tape accepting $300 from Domando in exchange for prescriptions, as well as $100 for an extra prescription he sold to an undercover agent. At trial, a witness testified that he delivered envelopes of cash to Durante in exchange for extra prescriptions.
Additionally, Durante falsified medical records in the files of the patients who received the oxycodone prescriptions he sold to Domando, Abato and others. Typically, Durante would omit from the progress notes for those patients many of the additional prescriptions he had sold. On other occasions, he falsely wrote that prescriptions had been provided to replace lost prescriptions – including noting on one occasion that a dog may have eaten one of the prescriptions he provided to Domando.
In total, Durante provided prescriptions for more than 70,000 oxycodone pills to be illegally resold by his coconspirators.
At sentencing, Durante faces a maximum potential penalty of 20 years in prison and a $250,000 fine on each of the 16 counts of which he was convicted. A sentencing date has not yet been set. A hearing has been scheduled for tomorrow, May 23, 2013, to discuss the forfeiture of nearly $300,000 in cash found in Durante’s home.
U.S. Attorney Fishman credited the New Jersey DEA Tactical Diversion Squad, made up of DEA special agents, diversion investigators and intelligence analysts; FBI and IRS special agents; and law enforcement officers from the Essex County Sheriff’s Department and the Elizabeth, Clinton Township (Hunterdon County), Toms River and Newark Police Departments with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Anthony Mahajan and Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Cathy Fleming and Harold Ruvoldt Esqs., New YorkNew Jersey Doctor Convicted by Federal Jury for Writing Illegal Oxycodone Presctiptions in Drug Distribution ConspiracyRead the Press Release
TNEWARK, N.J. – An internal medicine specialist who wrote illegal prescriptions for oxycodone was convicted today by a federal jury in New Jersey for his role in a conspiracy that put tens of thousands of prescription pills on the streets for resale, U.S. Attorney Paul J. Fishman announced.
Michael Durante, 59, of Montclair, N.J., was convicted of 16 of the 17 counts in the superseding indictment against him: one count of conspiracy to distribute oxycodone and 15 counts of unlawful distribution of the drug. The jury returned the verdict on the second day of deliberations following a nearly three-month trial before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to the evidence at trial:
Between 2009 and March 2011, Durante regularly sold prescriptions of oxycodone to several people knowing the drugs would be resold on the street for profit. Two individuals in particular – Andre Domando, 48, of Belleville, N.J., and Dennis Abato, 61, of Lakewood, N.J. – each had a stable of patients they brought to Durante’s medical practice in Nutley, N.J., so he could give them prescriptions for large quantities of oxycodone that would ultimately be sold through the redistribution network. Domando and Abato have each pleaded guilty in connection with the scheme.
In February of 2011, several undercover recordings were produced that showed Durante’s understanding of the illegal distribution he facilitated. At one point, Durante said he knew Domando was reselling the prescriptions for a large profit, stating, “I just know because my friend does the same thing you do. He sells these for a thousand to twelve hundred dollars a bottle.” Durante, referring to prescriptions he provided to Domando over the previous week, then stated “[s]o two last week, four this week – you should have six thousand dollars in your pocket,” adding, “I know what people do with these things. You gotta have at least twelve, fifteen thousand dollars a month of income here.”
Durante was also captured on tape accepting $300 from Domando in exchange for prescriptions, as well as $100 for an extra prescription he sold to an undercover agent. At trial, a witness testified that he delivered envelopes of cash to Durante in exchange for extra prescriptions.
Additionally, Durante falsified medical records in the files of the patients who received the oxycodone prescriptions he sold to Domando, Abato and others. Typically, Durante would omit from the progress notes for those patients many of the additional prescriptions he had sold. On other occasions, he falsely wrote that prescriptions had been provided to replace lost prescriptions – including noting on one occasion that a dog may have eaten one of the prescriptions he provided to Domando.
In total, Durante provided prescriptions for more than 70,000 oxycodone pills to be illegally resold by his coconspirators.
At sentencing, Durante faces a maximum potential penalty of 20 years in prison and a $250,000 fine on each of the 16 counts of which he was convicted. A sentencing date has not yet been set. A hearing has been scheduled for tomorrow, May 23, 2013, to discuss the forfeiture of nearly $300,000 in cash found in Durante’s home.
U.S. Attorney Fishman credited the New Jersey DEA Tactical Diversion Squad, made up of DEA special agents, diversion investigators and intelligence analysts; FBI and IRS special agents; and law enforcement officers from the Essex County Sheriff’s Department and the Elizabeth, Clinton Township (Hunterdon County), Toms River and Newark Police Departments with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Anthony Mahajan and Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Cathy Fleming and Harold Ruvoldt Esqs., New YorkMurphysboro Man Pleads Guilty to Distributing Heroin in Saline CountyRead the Press Release
Brian L. Cayce, 45, of Murphysboro, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with distributing heroin, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on November 6, 2012, alleged that Cayce distributed 1.9 grams of heroin on September 18, 2012, to an agent of the Southern Illinois Drug Task Force who was working undercover.
Cayce faces up to 20 years’ imprisonment, a $1 million fine, and a term of 3 years to life on supervised release to follow his incarceration.
Cayce has been held without bond in the custody of the United States Marshal since his arrest on the federal charges. He was returned to the Marshal’s custody to await sentencing which was set for October 3, 2013, at 10:00 a.m. at the United States District Courthouse in Benton.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force with the assistance of the United States Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Montgomery Woman Pleads Sentenced to 10 Years in Prison for Identity Fraud – Tax Refund ScamRead the Press Release
Montgomery, Alabama - Rhashema Deramus, 23 of Montgomery, Alabama was sentenced today to 10 years in prison for her part in an identity theft/tax refund scam, announced U.S. Attorney George L. Beck, Jr.. Deramus and those working for her stole people’s identities and used those stolen identities to file fraudulent tax returns and obtain tax refunds that were not owed to them. As part of her sentence, United States District Judge Mark E. Fuller ordered Deramus to pay $1,198,063 in restitution.
On August 29, 2012, Deramus pled guilty to theft of government money, fraudulent use of debit cards, and aggravated identity theft all related to filing fraudulent tax returns. Deramus was the leader of a ring of individuals who stole people’s names, dates of birth and social security numbers. 881 of these identities were stolen from the Troy Regional Medical Center. Deramus used these stolen information to file fraudulent tax returns. Deramus then directed the fraudulently-obtained tax refunds generated from these tax filings to be placed on pre-paid debit cards. Deramus, and others at her direction, took those debit cards and cashed them out at various ATMs. When she received the money from the tax refunds, she spent it on herself; admitting that her sole source of income during this period was illegally obtained tax refunds.
In March 2011, as a result of numerous suspicious withdrawals from local ATMs, law enforcement agents ultimately identified a vehicle associated with those withdrawals. During a traffic stop of that vehicle, which was occupied Rhashema Deramus and two other members of her ring and which had been stolen, officers found 165 prepaid debit cards issued in other people’s names. Other items, including a computer, containing stolen personal identifying information were also located in the vehicle. Agents then obtained a search warrant for Deramus’ residence and during the execution of that warrant, agents located 276 more debit cards, computers, and thousands of pieces of personal information belonging to other people. Later, in November 2011, agents discovered another 88 prepaid debit cards in Deramus’ possession. Ultimately, the investigation revealed Deramus’ ring possessed, at a minimum, 520 prepaid debit cards, on which $1,198,063 in fraudulently-obtained tax refunds had been placed, and over 7,000 stolen names and personal identifiers of other people.
At the sentencing hearing, one of the victims, testified that he lost his defense contracting job, making around $100,000 a year, as a result of financial problems from the theft and misuse of his personal information. Items containing his personal information were located during the execution of the search warrant at Deramus’ residence, along with thousands of other stolen identities. This victim’s financial issues severely impacted his credit and as a result his security clearance was suspended, and later revoked. Because his security clearance was suspended, he lost his job as a defense contractor. Further, as a member of the Air National Guard, his military duties and hours have been scaled back because of his security clearance issues. He now works at a fast food restaurant and teaches computer classes part-time at a technical college. The lack of income has severely affected his family; for example, his wife had to quit nursing school. His children have also suffered from these financial problems. Two Montgomery County Sheriff’s Office employees also testified that they had been financially impacted by the theft and use of the personal information of their children.
Additionally, the Chief Executive Officer (CEO) of Troy Regional Medical Center testified at Deramus’ sentencing hearing. She told the Court that a contract employee, Angeline Austin, had access to all of Troy Medical Center’s patients’ information. Austin was a member of Deramus’ ring and was sentenced earlier this year to 65 months in federal prison for stealing personal information of Troy Medical Center patients and providing them to Deramus and her ring. The CEO further explained to Judge Fuller that Troy Medical Center has been operating at a loss for years and that the hospital was very concerned that it may be fined over $1.5 million dollars for violations of Federal and State of Alabama health care privacy laws stemming from Austin stealing the patients’ identities and providing them for use by Deramus’ ring. This fine could severely impact the capability to operate the only hospital in Troy.
“This sentence show the government’s commitment to stopping those criminals who attempt to profit from stealing people’s identity,” stated U.S. Attorney Beck. “In order to stop these scammers, we must all work together to protect the identities, to investigate those that steal the identities and to vigorously prosecute those scammers. This office will not let up on these thieves. We will continue to vigorous prosecute them to the fullest extent of the law.”
“The sentencing of Ms. Deramus is the result of a concerted effort by the U.S. Attorney’s Office, the Internal Revenue Service Criminal Investigative Division, Local and State law enforcement and the U.S. Secret Service to vigorously investigate and prosecute federal tax fraud involving identity theft, stated Clayton Slay, Resident Agent in Charge of the U.S. Secret Service in Montgomery, Alabama. “Deramus was the mastermind behind this scheme which not only costs the U.S. Government, but also local retailers and business who negotiated the fraudulently obtained checks, over 1.5 million dollars . The biggest tragedy though are the approximately 7,000 victims whose lives have been turned upside down through the theft of their personal identifiers and the effect it has on their credit history and ability to file a legitimate tax return. Hopefully, the sentencing of Deramus and other defendants in this case will serve as a warning sign to other individuals involved in any type of identity theft. The U.S. Secret Service, along with the IRS criminal investigators, will remain proactive in the investigation of individuals and groups associated with these types of crimes.”
"This sentence is a message to others that there are consequences for stealing and using other individual's personal identifying information”, stated Veronica Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. "Individuals cannot fraudulently enrich their bank accounts at the expense of the United States Treasury and other taxpayers."
This case was investigated by the United States Secret Service, Internal Revenue Service, and the Montgomery Police Department, with the help of the United States Marshal’s Service. Assistant United States Attorney Todd Brown prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Michael Bearhill, Jr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 21, 2013, before Chief U.S. District Judge Dana L. Christensen, MICHAEL BEARHILL, JR., a 21-year-old resident of Wolf Point and an enrolled member of a federally-recognized tribe, pled guilty to robbery. Sentencing has been set for August 27, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In the early hours of February 2, 2013, BEARHILL entered a convenience store in Wolf Point, which is within the exterior boundaries of the Fort Peck Indian Reservation, and pointed what appeared to be a gun at two employees behind the counter. He forced them to open the till while he continued to point the gun at an employee. An employee described the robber as having a blank stare, and she realized he was serious. He removed over $300 from the till and fled. He was later identified on video by other employees as BEARHILL.
When questioned, BEARHILL admitted to going into the convenience store, pulling a gun out of his coat, and telling the employees he wanted money.
BEARHILL faces possible penalties of 15 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Fort Peck Tribes Criminal Investigation Division.
Marshall County Bank Embezzler Sentenced to PrisonRead the Press Release
OXFORD, Miss. Felicia C. Adams, United States Attorney for the Northern District of Mississippi, Laurie Younger, Special Agent in Charge of the Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation and, and Daniel McMullen, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi, announce that:
Deborah Shaw, 53, of Waterford, Mississippi, former employee of Merchants and Farmers Bank in Holly Springs, has been sentenced by United States Senior District Judge Neal B. Biggers, Jr., in Oxford, Mississippi, following her plea of guilty last fall on one count of embezzlement by a bank employee.
Judge Biggers ordered Shaw to serve 30 months in prison, followed by 5 years supervised release. She was also ordered to pay restitution in the amount of $327,842.00. Ms. Shaw has been ordered to report to prison on June 17.
United States Attorney Felicia C. Adams stated: “The sentence Ms. Shaw received reinforces the message that federal courts view embezzlement as a serious crime that warrants significant punishment. The United States Attorney’s Office is committed to holding those who abuse their authority accountable for their illegal activities.”
Federal Deposit Insurance Corporation Special Agent in Charge Younger stated: “The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join our law enforcement colleagues in bringing Ms. Shaw to justice. We are especially concerned when trusted insiders abuse their positions to harm the financial institutions that employ them. We will continue our efforts to investigate such abuses in FDIC-insured financial institutions throughout the country.”
Daniel McMullen, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi, stated: “Working alongside our law enforcement partners, we will use every appropriate tool and available resource to find, stop, and punish those who commit fraud schemes that impact our financial institutions.”
This case was investigated by the Office of Inspector General for the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Robert J. Mims and Clayton A. Dabbs.
Manchester Resident Sentenced for Mail FraudRead the Press Release
CONCORD, N.H. –Nazar Lopushansky, 30 of Manchester, has been sentenced in United States District Court for the District of New Hampshire to one year and one day in prison, after pleading guilty to six counts of mail fraud, announced United States Attorney John P. Kacavas.
In 2009, Lopushansky owned a financially distressed construction business, Engelwood Construction, Co. Inc., that had a business office in Manchester, New Hampshire. In January 2009, a certified public accountant created a financial statement on Lopushansky’s behalf that falsely increased Engelwood’s cash assets by $450,000. Thereafter, through conduct that involved the use of the United States Postal Service and competitive contract bidding procedures, Lopushansky acquired four contracts that required bonding for Engelwood from state and local government agencies. To acquire these bonds, Lopushansky provided a copy of the fraudulent financial statement to Bond Safeguard, a bond company in Tennessee. Engelwood did not finish the projects as required by the contracts and as a result, Bond Safeguard was required to pay claims totaling $253,585.62.
The case was investigated by the United States Department of Transportation, Office of Inspector General and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Bob Kinsella.
Manager of International Alien Smuggling Ring Sentenced in New Jersey to 51 Months in PrisonRead the Press Release
Some Customers of Illegal Ring Worked off Debts in Newark Strip Clubs
CAMDEN, N.J. – A manager and supervisor of an international scheme responsible for smuggling into the United States hundreds of illegal aliens from Brazil, India and elsewhere was sentenced today to 51 months in prison, U.S. Attorney Paul J. Fishman announced.
Sanderlei Alves DaCruz, a/k/a “Kauan,” a/k/a “Kauan Santana,” a/k/a “Sidney Gomes Figueredo,” 33, of Houston, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an indictment charging him with one count of participating in a conspiracy to bring aliens into the United States illegally. Judge Rodriguez imposed the sentence today in Camden federal court.According to documents filed in this case and statements made in court:
From January 2008 through June 2011, DaCruz conspired with others in New Jersey, Massachusetts, Texas and elsewhere to bring aliens into the United States illegally from a number of other countries as part of an elaborate for-profit alien smuggling scheme. The conspirators arranged, facilitated and monitored the travel of customers along two primary smuggling routes – the first of which included travel through Central America and across the international border between Mexico and the United States. The second route included travel through St. Maarten and the Bahamas, followed by a series of boat trips to either Puerto Rico or the Florida coast.
Through the interception of the conspirators’ cell phone calls, the use of confidential sources of information and other means, law enforcement agents learned that the defendants charged customers of the alien smuggling scheme from $13,000 to more than $25,000 – depending on the route used and whether the customer paid in advance or in installments after arriving in the United States.
Many of the customers of the scheme were young women from Brazil, most of whom agreed to repay part of their smuggling debt after arriving in the United States by working as dancers in strip clubs in Newark and elsewhere.
In addition to the prison term, Judge Rodriguez sentenced DaCruz to serve three years of supervised release.
On Dec. 21, 2011, other members of the conspiracy including Nacip Teotonio Pires, a/k/a “Ze Maria,” a/k/a “Baraso,” 49, of Newark; Rubens DaSilva, a/k/a “Diogo Oliveira,” 41, of Haverhill, Mass.; and Claudinei Pereira Mota, 35, of Newark, each pleaded guilty before Judge Rodriguez to an information charging them with conspiring to bring aliens into the country illegally. A fifth member of the smuggling ring, Francismar Da Conceicao, a/k/a “Alex,” 38, of Hillside, N.J., pleaded guilty to a similar charge a few days earlier. Priscilla (last name unknown), a/k/a “Clema Aparacida Lopes,” of Long Branch, N.J., remains at large.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: Paulette Pitt Esq., Woodbridge, N.J.Lower Burrell Man Named in 79-Count Indictment Charging Violations of Federal Drug, Gun and Money Laundering LawsRead the Press Release
PITTSBURGH, Pa. - A resident of Lower Burrell, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics, firearms and money laundering laws, United States Attorney David J. Hickton announced today.
The 79-count superseding indictment named Omali McKay, 27, as the sole defendant.
According to the superseding indictment, from in and around 2006, and continuing thereafter to on or about Aug. 25, 2012, McKay conspired with others to distribute and possess with intent to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base, in the form commonly known as crack. Additionally, on or about Aug. 25, 2012, McKay possessed with the intent to distribute 500 grams or more of cocaine and possessed an assault-type rifle in furtherance of the drug trafficking crime.
The superseding indictment further charges that from in and around May 2011, and continuing thereafter to on or about Aug. 25, 2011, McKay conspired with others to launder the proceeds of the illegal drug trafficking. McKay then laundered the proceeds of the illegal drug trafficking and engaged in monetary transactions in property derived from the illegal drug trafficking.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation Division, the Department of Homeland Security, and the Lower Burrell Police Department conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Life Sentence for 2010 Murder of Dancer on “the Block” in BaltimoreRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Tyrone Johniken, a/k/a “Hassan Muhammed,” and “Roland,” age 30, of Baltimore, today to life in prison for a racketeering conspiracy, conspiracy to commit murder in aid of racketeering and conspiracy to distribute and possess with intent to distribute drugs in connection with a drug gang operating on a stretch of Baltimore Street in Baltimore known as “the Block.” Johniken was convicted on November 21, 2012, after a three week trial.
Yesterday, Judge Bredar sentenced co-defendant Donte Bernard Baker, a/k/a “Tay,” and “Donnie,” age 23, also of Baltimore, to 40 years in prison followed by five years of supervised release. Baker previously pleaded guilty to the racketeering conspiracy, conspiracy to commit murder in aid of racketeering and possession of a firearm in furtherance of a drug trafficking crime.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“This case demonstrates how illegal drugs can lead to violence and despair,” said U.S. Attorney Rod J. Rosenstein. “Evidence introduced at the trial showed that Cherrie Gammon helped the conspirators distribute drugs on the Block, and Tyrone Johniken and Donte Baker arranged to murder her because they were worried about her cooperating with the police.”
According to evidence presented at Johniken’s trial and court documents, from at least January 2008 to the present, Donte Baker and his mother, co-defendant Monica McCants, were leaders of the gang who supplied heroin and crack cocaine in “packs” of 10, 20 or 60 pills/vials to lower tier members, including defendants Johniken and Gary Cromartie. Johniken and Cromartie then sold the drugs to runners and drug users on the Block. The profits from these sales were given to McCants and Baker, who paid the lower tier members for making the sales. Johniken also assaulted a police officer on July 2, 2009. In November 2010, Baker collected money from drug sales in an effort to bail McCants out of jail.
The gang members protected themselves and the drug organization through violence and intimidation, including the murder of Cherrie Gammon on December 12, 2010. More specifically, on November 25, 2010, McCants instructed Baker to assault Gammon to ensure that Gammon provided the gang with drug proceeds. On December 12, 2010, Gammon was driven to the area of Leon Day Park in Baltimore where she was murdered by Johniken, Baker and Cromartie. In a phone call on December 30, 2010, McCants stated to Baker that law enforcement probably learned from Gammon that Gammon owed money to Baker for drugs.
Gary Thenor Cromartie, a/k/a “Miami,” age 24; and Monica McCants, a/k/a “Money,” age 42, both of Baltimore, previously pleaded guilty to their participation in the racketeering conspiracy. Cromartie also pleaded guilty to conspiring to commit murder in aid of racketeering. Cromartie and McCants are scheduled to be sentenced on May 23 and May 24, respectively. They each face a maximum sentence of life in prison for the racketeering conspiracy and for conspiracy to distribute and possess with intent to distribute drugs.
United States Attorney Rod J. Rosenstein commended the ATF, DEA and Baltimore Police Department for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Joshua Kaul and Robert R. Harding, who prosecuted the case.
Leland Tax Return Preparer Sentenced for False ClaimsRead the Press Release
OXFORD, Miss. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Gabriel “Gabe” Grchan, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, New Orleans Field Office, announce that:
Lynisha Robinson, 27, of Leland, Mississippi, was sentenced yesterday by United States District Judge Sharion Aycock in Aberdeen, Mississippi, for filing false claims with the federal government. Robinson was ordered to serve 36 months in prison, followed by a term of 3 years supervised release. In addition, Robinson was ordered to pay $112,839.78 in restitution to the IRS and prohibited from employment as a tax preparer while on supervised release.
Robinson pled guilty on November 7, 2012, to six counts of an information charging her with preparing and transmitting fraudulent and material information to the IRS in violation of Title 18, United States Code, Sections 287 and 7206(2).
The investigation by Internal Revenue Service Criminal Investigation revealed that Robinson submitted the false returns to the IRS through Twin Taxes, a business Robinson owned and operated in Leland and Greenville, Mississippi. The false returns resulted in the payment of earned income credit benefits to which neither Robinson nor the filers were entitled.
"Return preparer fraud affects not only the preparer, but the individuals who have filed false information with the Internal Revenue Service," said Gabriel Grchan, IRS Special Agent in Charge of the New Orleans Field Office. "It is our hope that Ms. Robinson's sentence of three years of imprisonment will send a clear message to those who commit tax fraud that there are serious consequences to these crimes."
This case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigation and was prosecuted by Assistant United States Attorney Clyde McGee IV.
***Leader of $66 Million Long Island Mortgage Fraud Scheme Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that GERARD CANINO, the president and owner of First Class Equities (“FCE”), was sentenced today in Manhattan federal court to 97 months in prison for his participation in a $66 million mortgage fraud scheme. CANINO pled guilty in April 2012 to conspiracy to commit wire fraud and bank fraud in connection with the scheme, and was sentenced by U.S. District Judge Robert P. Patterson.
Manhattan U.S. Attorney Preet Bharara said: “With his sentence today, Gerard Canino, the architect of an elaborate house of cards that worked a fraud on lenders and homeowners, begins to pay the price for his scheme. Mortgage finance professionals have a duty to safeguard the integrity of their industry, not orchestrate phony schemes that leave a trail of foreclosed properties and other losses when the sham structure collapses.”
According to the Indictment previously filed in Manhattan federal court, as well as
statements made in public proceedings:
FCE was a mortgage brokerage firm with offices located in Oceanside and Old Westbury New York. CANINO was the president and owner of FCE.
From 2004 to 2009, CANINO and FCE engaged in a massive mortgage fraud scheme. As part of the scheme, CANINO and his co-conspirators arranged home sales between “straw buyers” – persons who posed as home buyers, but who had no intention of living in, or paying for, the mortgaged properties – and homeowners, often people in financial distress, who were willing to sell their homes. CANINO and others recruited straw buyers, many of whom were paid by CANINO and his co-conspirators. At his direction, the FCE loan officers obtained mortgage loans for the sham deals by submitting fraudulent applications to banks and lenders, using fraudulent representations about the straw buyers’ net worth, employment, income, and plans to live in the properties. After approving the loans, the lenders sent the mortgage proceeds to their attorneys, and the attorneys submitted false statements to the lenders about how they were distributing the loan proceeds. They then distributed the loan proceeds – typically tens of thousands of dollars per transaction – among themselves and other members of the conspiracy.
In addition to his prison term, CANINO, 51, of Merrick, New York, was sentenced to three years of supervised release. He was also ordered to forfeit the proceeds of the offense to the government and make full restitution to the victims of his crime.
CANINO’s co-conspirators in the scheme included, among others, the FCE loan officers Ian Katz, Omar Guzman, James Vignola, Henry Richards, and Robert Thornton; the real estate attorneys Neal Sultzer, Michael Raphan, Michael Schlussel, Jacquelyn Todaro, Kevin Hymowitz, and Dennis Berkowsky; the real estate title agent Michael Charles; and other individuals, including Ralph Delgiorno, Deborah Lazarou and Pandora Bacon. Each of these defendants pleaded guilty, with the exception of Raphan, who was convicted after trial.
Schlussel was sentenced to 46 months in prison. Raphan was sentenced to 36 months in prison. Hymes and Sultzer were sentenced to 24 months in prison. Vignola was sentenced to 13 months in prison. Delgiorno was sentenced to a year and a day in prison. Guzman was sentenced to 360 days in prison. Richards and Todaro were sentenced to time served. All the sentences were imposed by Judge Patterson in Manhattan federal court. The other defendants are awaiting sentencing.
Mr. Bharara praised the Federal Bureau of Investigation for its outstanding work in the investigation.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Nicole Friedlander, Niketh Velamoor and Andrew Goldstein are in charge of the case.
KC Man Pleads Guilty to Bungled Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a bungled bank robbery attempt.
Martron E. Bailey, 26, of Kansas City, pleaded guilty before U.S. District Judge Beth Phillips to the charge contained in a Dec. 4, 2012 federal indictment.
By pleading guilty today, Bailey admitted that he aided and abetted another person to rob United Missouri Bank, 6400 Independence Ave. in Kansas City, Mo., on Nov. 6, 2012.
According to court documents, Bailey and another man came out of the bushes near the door of the bank as an employee arrived at about 7:20 a.m. The employee, visibly pregnant, screamed as she was backed into a corner of the doorway. Bailey ordered the employee to open the door, an affidavit says, but she told the robbers that she couldn’t open the door. Bailey pushed her toward the door and again ordered her to open it. She told the robbers that an employee inside the building had to let her in the door. At that point, an affidavit says, the other employee had seen the activity outside the bank and already called 911.
“Tell her to let you in!” Bailey insisted. “I can’t,” the employee replied, “she sees you on the camera and she’s not going to let me in!” While the other robber backed into the opposite corner of the doorway, Bailey backed away from the employee and asked, “Can she see me now?” The bank employee replied: “Yes, she’s not going to open the door!”
“So we need to leave?” Bailey asked. “Yes, you do,” the employee replied.
According to an affidavit, the robbers fled back to the bushes and around a fence. As they ran toward their car, which was parked a couple of blocks away, a neighborhood resident saw them and became suspicious. The resident, who had seen the unfamiliar vehicle parked nearby and heard sirens in the area, thought they were acting suspiciously. The resident took photos of them getting into their car as well as photos of the green Chevrolet Malibu and the rear license plate. Those photos were given to law enforcement officers.
Officers reviewed bank surveillance video, which matched the individuals in the photos taken by the resident. They learned that the vehicle was registered to Bailey.
Later that day, a civilian police department employee received a call from her father about a green Chevrolet that was parked without permission in the backyard of another relative’s house. The police department employee learned that officers were attempting to locate a green vehicle, and when she checked the license plates, she learned that the parked vehicle was registered to Bailey, her cousin.
Police officers met with the homeowner, who did not know who the vehicle belonged to and had not given permission for it to be parked in his backyard. Officers showed him the photo taken by the bank robbery witness, and he identified Baily, his nephew, as the person who was photographed getting into the car. Bailey was also identified by other family members. After photos were broadcast on television, an anonymous tip was received by the Greater Kansas City Crime Stoppers that provided Bailey’s residential address.
Under federal statutes, Bailey is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Finds Unconstitutional Conditions of Confinement at Escambia County, Fla. JailRead the Press Release
Today, the Justice Department’s Civil Rights Division issued a letter detailing the findings of its investigation into conditions of confinement at Escambia County Jail, a jail located in northwest Florida, housing roughly 1,300 prisoners. The department found that, although the jail under the leadership of Sheriff David Morgan has recently implemented a series of meaningful reforms, conditions at the jail still routinely violate the constitutional rights of prisoners.
Specifically, the department concluded that known systemic deficiencies at the facility, stemming mainly from staffing shortages, continue to subject prisoners to excessive risk of assault by other prisoners and to inadequate mental health care. Additionally, the department found that until recently, the jail had an informal policy and practice of designating some of its housing units as only for African-American prisoners. By segregating some of its prisoners on the basis of race, the jail not only stigmatized and discriminated against many of its African-American prisoners, it also fanned combustible racial tensions within the jail.
“We commend Sheriff Morgan for his willingness to work aggressively to remedy many of the problems brought to his attention during the course of our investigation,” said Roy L. Austin Jr., Deputy Assistant Attorney General of the Civil Rights Division. “We hope to work cooperatively with the Sheriff and the County to address and remedy the remaining unconstitutional conditions of confinement at Escambia Jail.”
The department conducted this investigation pursuant to its authority under the Civil Rights of Institutionalized Persons Act (CRIPA) to enforce constitutional mandates. The department’s investigation was broad based and included a review of practices relating to the level of security at the jail, the adequacy of medical and mental health services, and sanitation/environmental conditions.
Under its CRIPA authority, in addition to investigating the conditions of confinement at correctional facilities, the department has also investigated conditions at psychiatric hospitals, nursing homes, residential facilities serving persons with developmental disabilities, and juvenile correctional facilities. CRIPA’s focus is on systemic deficiencies rather than on the misconduct of individuals. Please visit www.justice.gov/crt to learn more about CRIPA and other laws enforced by the Department’s Civil Rights Division
The investigation was conducted by Special Litigation Counsel Avner Shapiro and Senior Trial Attorney David Deutsch of the Civil Rights Division’s Special Litigation Section. The findings letter will be available on the Department’s Web site at www.justice.gov/crt.
Related Materials:
Escambia County Jail Findings Letter
Jury Finds Bridgeport Man Guilty of Illegally Possessing Loaded FirearmRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found FEDERICO CANNON, also known as “Rico,” 30, of Bridgeport, guilty of one count of possession of a firearm and ammunition by a previously convicted felon. The trial before U.S. District Judge Robert N. Chatigny began on May 20 and the jury returned the verdict today.
According to the trial evidence, at approximately 1:15 a.m. on February 25, 2012, Bridgeport Police stopped a vehicle in which CANNON was a passenger on Caroline Street in Bridgeport. CANNON initially exited the vehicle and attempted to walk away, but police ordered him back into the car. After directing the driver out of the vehicle, a Bridgeport Police detective observed a semi-automatic pistol on the floor of the rear passenger area in the vicinity of where CANNON was sitting. The firearm was a Smith & Wesson 9mm model 469 loaded with 10 live hollow-point cartridges and two full-metal jacket cartridges.
Prior to February 25, 2012, CANNON had sustained felony drug, firearms and burglary convictions, including a 2006 federal conviction for possession of a firearm and ammunition by a previously convicted felon.
The evidence at trial in the previous federal case revealed that in the early morning hours of October 21, 2004, CANNON was in a car with three other individuals driving northbound on Interstate 95 between Norwalk and Bridgeport when they initiated a confrontation with another car occupied by two men. The confrontation culminated at the bottom of the Exit 25 ramp in Bridgeport when approximately seven or eight shots were fired at the victims’ vehicle. A subsequent search of the vehicle in which CANNON was a passenger revealed a semi-automatic pistol at CANNON’s feet in the right rear passenger seat of the vehicle. The jury found CANNON guilty and, on April 12, 2006, he was sentenced to 42 months of imprisonment.
Judge Chatigny has scheduled sentencing for August 14, 2013, at which time CANNON faces a maximum term of imprisonment of 10 years.
This matter was investigated by the Bridgeport Police Department and the Federal Bureau of Investigation, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale and Special Assistant U.S. Attorney Joseph Vizcarrondo.
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(203) 821-3722 [email protected]Joel Raymond Polaski Pleads Guilty to Possession of Stolen MailRead the Press Release
JOEL RAYMOND POLASKI, age 49, a resident of Thibodaux, Louisiana, pled guilty in federal court today before U.S. District Judge Helen G. Berrigan to possession of stolen mail, announced U. S. Attorney Dana J. Boente.
According to court documents, POLASKI, a highway contract route driver, was employed by Advantage Equipment, LLC, a company contracted by the U.S. Postal Service to transport mail matter. POLASKI possessed several parcels belonging to others that he had stolen from the Gray, Louisiana post office.
POLASKI faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. Sentencing is scheduled for August 28, 2013.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant U. S. Attorney Loan “Mimi” Nguyen.
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Jason Long Sentenced to 40 Years in Prison for Receiving Child Pornography and Sexually Exploiting A ChildRead the Press Release
JASON LONG, age 36, of St. Charles Parish, was sentenced today by United States District Judge Helen G. Berrigan to forty years in prison for receiving videos and images depicting the sexual victimization of children and, separately, recording sexually explicit images and videos of a child, announced United States Attorney Dana J. Boente. Judge Berrigan also ordered the defendant to pay $267,010 to one of the victims whose images he downloaded and at least $150,000 to another victim. After his term of imprisonment, LONG will be placed on supervised release for the rest of his life.
According to court records, LONG pleaded guilty on April 25, 2012, to receiving images depicting the sexual victimization of children. According to plea documents, the investigation began on October 17, 2011, when law enforcement officers executed a search warrant at LONG’s home. Evidence gathered at the home revealed that he had used his computers to access “Peer-to-Peer” file sharing programs and download approximately 232 pictures and 169 videos of children being victimized. Evidence demonstrated that LONG searched for images depicting minors engaged in specific types of conduct to download. The images LONG searched for and ultimately downloaded were of children as young as six-years-old engaged in a variety of sexually explicit conduct.
Court records also reflect that shortly after LONG pleaded guilty to the above-described conduct, law enforcement officers learned that he had also previously recorded images and videos of himself sexually victimizing a toddler. Specifically, between 2006 and late 2007, LONG recorded himself engaging in sexually explicit conduct with a child. He then sent the videos and photographs via the Internet to “Edd,” an individual located in the United Kingdom. As a result of this conduct, the defendant pleaded guilty to producing sexually exploitative images of a child.
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 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 locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by special agents from the ICE - Homeland Security Investigations and the Federal Bureau of Investigation. The prosecution of this case was handled by Assistant United States Attorney Jordan Ginsberg.
Jackson County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A Jackson County, IL, man pled guilty to an indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Anthony R. Renth, 45, of Murphysboro, entered a guilty plea to conspiracy to manufacture methamphetamine. The indictment alleged that the offense occurred between June 2012 and November 1, 2012, in Jackson and Union Counties. Renth is currently being held without bond pending a September 26, 2013, sentencing hearing. At that time, he will face a penalty of up to 30 years in prison, a $2,000,000 fine, and 6 years of supervised release.
The ongoing investigation is being conducted by the Murphysboro Police Department and Jackson County Sheriff’s Office, with the assistance of the Union County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.