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22 May 2013
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 22, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
PATRICK CHARLES THOMAS, a 55-year-old resident of Cut Bank, appeared on charges of violation of the False Claims Act, conversion of secured property, and federal agricultural loan fraud/false writing. He is currently released on special conditions. If convicted of these charges, THOMAS faces possible penalties of 5 years in prison, a $250,000 fine, and 3 years supervised release on each count. Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States. The investigation was a cooperative effort between the U.S. Department of Agriculture - Office of Inspector General and the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment: Former Wichita Police Officer Schemed to Pay Bribe to Save Her JobRead the Press Release
WICHITA, KAN. –A former officer of the Wichita Police Department and two other people have been charged with conspiracy and wire fraud after an internal investigation by police concluded that they were involved in scheme to keep the officer from losing her job, U.S. Attorney Barry Grissom said today. The police department submitted the results of its investigation to the FBI and the U.S. Attorney’s office for review.
Former officer Joletta Vallejo, 34, and her friends, Patrick Melendrez, 40, Wichita, and Courtney Foster, 30, Wichita, are charged with one count of conspiracy to commit wire fraud and seven counts of wire fraud.
The indictment alleges that on Oct. 16, 2011, a woman went to the Patrol North substation in Wichita to report that she had been abducted and beaten by her boyfriend, Larry Edmonds. Vallejo took the report and opened a case of misdemeanor domestic violence.
During the same evening, another man called the police department’s Case Desk, a 24-hour service for the public to report crimes that do not require an officer’s presence to make an arrest or collect evidence. The man said Edmonds, the suspect in the abduction and beating, had robbed him and stolen his car. The man was told to report the crime to a police officer. When the man went to Patrol North to report the car theft, Vallejo refused to take the report and told him to call the Case Desk.
Ultimately, Edmonds was arrested, charged and convicted in Sedgwick County District Court on felony charges of aggravated kidnaping, robbery and attempted first degree murder. The police department’s Professionals Standards Bureau investigated Vallejo’s handling of the initial reports and concluded that she violated departmental policies and regulations.
The indictment alleges that on Aug. 22, 2012, Vallejo knew she was going to be fired. She arranged for co-defendant Patrick Melendrez, to make a call to the man who tried to report the car theft. Melendrez offered to pay the man to change his statements to the police department’s Professional Standards Bureau. Melenrez said he would pay the man $150 to change his statement to make it less likely Vallejo would lose her job – and another $150 if Vallejo was able to keep her job. Then Vallejo, Melendrez and co-defendant Courtney Foster drove to an ATM where Vallejo got cash for Melendrez to pay the bribe.
Melendrez set up a meeting to pay the man to change his statements. Melendrez took a tape recorder to the meeting that Vallejo had given him so he could record the man’s call to police changing his statement. Co-defendant Foster gave Melendrez a ride to the meeting and waited across the street during the meeting.
If convicted, the defendants face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
OTHER INDICTMENTS
A former Wichita area physician who is serving time on supervised release for a drug violation has been indicted on federal charges including possession of controlled substances, U.S. Attorney Barry Grissom said.
A grand jury returned an indictment charging Lawrence M. Simons, 57, Wichita, with one count of possession of controlled substances, one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of ammunition after a felony conviction.
In January 2010, Simons, a former employee of the Schneider Medical Clinic in Haysville, Kan., was sentenced to 24 months in federal prison to be followed by three years on supervised release after he pleaded guilty to two counts of unlawfully distributing a controlled substance. In his plea, he admitted he prescribed Fentanyl and that the prescriptions were not issued for a legitimate medical purpose or made in the usual course of medical practice because the person who received the prescription was not his patient.
The new indictment alleges that in August 2008 Simons signed an agreement with the Drug Enforcement Administration to voluntarily surrender his controlled substances privileges. The indictment alleges that in August 2009 he leased three storage units at West Kellogg Stor-Al in Wichita, where he stored personal property and controlled substances including Fentanyl, Actiq, Lortab Elixer, Ketamine, Versed, Midazolam, Brevital Sodium, Diazepam, Stadol and Niravan. The indictment alleges he continued to possess the controlled substances until November 2012 when his access to the storage units was revoked because he stopped making the lease payments.
The indictment also alleges that on April 17, 2013, Simons possessed a .32 caliber pistol and ammunition. Simons initially was charged with that crime in a criminal complaint filed May 10 in U.S. District Court in Wichita.’
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000 on the drug charge, and a maximum penalty of 10 years and a fine up to $250,000 on each of the two firearms charges. The Bureau of Alcohol, Tobacco and Firearms investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
John L. Gagliardo, 60, Pittsburg, Kan., and George Washington, 50, Pittsburg, Kan., are charged with two counts of attempted mail fraud and two counts of attempted wire fraud. In addition, Gagliardo is charged with 10 counts of making false statements to the FBI. The crimes are alleged to have occurred in 2010 and 2011 in Crawford County, Kan.
The indictment alleges that while Gagliardo was employed as the 911 Director for Crawford County, Kan., he and Washington, who owned Washington Electronics in Pittsburg, devised a scheme to fraudulently obtain bids to multiple local governments for 911 equipment or storm warning equipment under the name of Washington Electronics. They submitted fraudulent bids using the names of fictitious companies such as K-Communications of Scammon, Kan., and K-Sirens of Scammon, Kan., to make it appear multiple competitive bids had been submitted. In reality, the fictitious bids were always higher in costs than the bids presented by Washington Electronics, ensuring that Washington Electronics would be the winning bidder.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each of the wire fraud and mail fraud charges. In addition, Gagliardo faces a maximum penalty of five years and a fine up to $250,000 on each count of making a false statement to investigators. The KBI and the FBI investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
John Noon, 65, is charged with one count of armed bank robbery. The indictment alleges that on May 4, 2013, he robbed the Community America Credit Union on Parallel Parkway in Kansas City Kan.
If convicted, he faces a maximum penalty of 25 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department and the FBI investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
Paula J. Sargent, 47, Ransom, Kan., is charged with embezzling funds while working for the U.S. Postal Service. The crime is alleged to have occurred April 23, 2013, in Ness County, Kan.
If convicted, she faces a penalty of up to a year in federal prison on the misdemeanor charge. The USPS - OIG investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Dallas E. Izzard, 32, Wichita, Kan., is charged with one count of possession of a firearm in furtherance of drug trafficking, one count of possession with intent to distribute cocaine, one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of a firearm with an obliterated serial number. The crimes are alleged to have occurred in April and May 2013 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties: Possession of a firearm in furtherance of drug trafficking: A maximum penalty of five years in federal prison and a fine up to $250,000.
Possession with intent to distribute cocaine: A maximum penalty of 20 years and a fine up to $250,000.
Possession with intent to distribute marijuana: A maximum penalty of five years and a fine up to $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a firearm with an obliterated serial number: Not less than five years and a fine up to $250,000.
The Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.Terry L. Wood, 53, Topeka, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of maintaining a residence in furtherance of drug trafficking at 1549 SW Brunswick Road in Topeka, which is within 1,000 feet of McCarter Elementary School. The crimes are alleged to have occurred in April and May 2013 in Shawnee County, Kan.
If convicted, he faces a maximum penalty of life in prison and a fine up to $20 million on the possession charge and a maximum penalty of life and a fine up to $40 million on the charge of maintaining a residence in furtherance of drug trafficking. The Topeka Police Department, the Kansas City, Kan., Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
Shawn Turner, 30, is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred March 15, 2013, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Topeka Police Department Patrol Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Ericka Murillo-Aguilar, 32, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. She was found May 3, 2013, in Sedgwick County, Kan.
If convicted, she faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Leslie Lyle Camick, 57, a citizen of Canada, is charged with one count of mail fraud, five counts of aggravated identity theft, one count of immigration document fraud, one count of making a false statement to the U.S. government, one count of making a false statement on a bank application and one count of bank fraud. The crimes are alleged to have occurred at various times from October 2005 to April 2013 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties: Mail fraud: A maximum penalty of 20 years in federal prison without parole and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutively to any underlying sentence and a fine up to $250,000.
Immigration document fraud: A maximum penalty of 15 years and a fine up to $250,000.
Making a false statement to the U.S. government: A maximum penalty of five years and a fine up to $250,000.
Making a false statement on a bank application: A maximum penalty of 30 years in federal prison and a fine up to $250,000.
Bank fraud: A maximum penalty of 30 years and a fine up to $250,000.ICE Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Robert L. White, 31, is charged with one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of a sawed off shotgun. The crimes are alleged to have occurred May 21, 2013 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the charge of unlawful possession after a felony conviction and a maximum penalty of 10 years and a fine up to $10,000 on the shotgun charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Health Care Clinic Director Sentenced in Miami to 111 Months <br /> for His Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic director and licensed therapist was sentenced in Miami to 111 months in prison today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN).
Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, made the announcement.
Paul Thomas Layman, 66, of Miami, pleaded guilty on March 7, 2013, to conspiracy to commit health care fraud.
During the course of the conspiracy, Layman was employed as a substance abuse counselor, therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.
HCSN of Florida (HCSN-FL) operated community mental health centers at three locations. During his employment, Layman worked full time at all HCSN-FL locations in various capacities. According to court documents, Layman was aware that HCSN-FL paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Layman also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.Court documents reveal that Layman was aware that HCSN-FL personnel were fabricating patient medical records. Many of these medical records were created weeks or months after the patients were admitted to HCSN-FL for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. During his employment at HCSN-FL, Layman signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.
HCSN of North Carolina (HCSN-NC) operated one location in Hendersonville, N.C. At HCSN-NC, Layman served as the clinical director and assisted HCSN owner Armando Gonzalez in obtaining necessary licensing, credentials and Medicare authorizations for HCSN-NC. According to court documents, from 2008 through 2009, Layman purportedly supervised the therapists within the HCSN-NC PHP, including Alexandra Haynes, who was an unlicensed therapist purportedly performing PHP therapy to HCSN-NC patients. Gonzalez and Haynes were sentenced to 168 months and 70 months, respectively, in prison.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. The cases are being prosecuted by Trial Attorney Allan J. Medina and Special Trial Attorney William J. Parente of the Criminal Division's Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Health Care Clinic Director Sentenced in Miami to 111 Months for His Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic director and licensed therapist was sentenced in Miami to 111 months in prison today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, made the announcement.
Paul Thomas Layman, 66, of Miami, pleaded guilty on March 7, 2013, to conspiracy to commit health care fraud.
During the course of the conspiracy, Layman was employed as a substance abuse counselor, therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.
HCSN of Florida (HCSN-FL) operated community mental health centers at three locations. During his employment, Layman worked full time at all HCSN-FL locations in various capacities. According to court documents, Layman was aware that HCSN-FL paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Layman also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
Court documents reveal that Layman was aware that HCSN-FL personnel were fabricating patient medical records. Many of these medical records were created weeks or months after the patients were admitted to HCSN-FL for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. During his employment at HCSN-FL, Layman signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.
HCSN of North Carolina (HCSN-NC) operated one location in Hendersonville, N.C. At HCSN-NC, Layman served as the clinical director and assisted HCSN owner Armando Gonzalez in obtaining necessary licensing, credentials and Medicare authorizations for HCSN-NC. According to court documents, from 2008 through 2009, Layman purportedly supervised the therapists within the HCSN-NC PHP, including Alexandra Haynes, who was an unlicensed therapist purportedly performing PHP therapy to HCSN-NC patients. Gonzalez and Haynes were sentenced to 168 months and 70 months, respectively, in prison.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. The cases are being prosecuted by Trial Attorney Allan J. Medina and Special Trial Attorney William J. Parente of the Criminal Division's Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Hayward Woman Sentenced to 24 Months in Prison for Filing False ClaimsRead the Press Release
OAKLAND, Calif. - Claudia Robinson was sentenced yesterday to 24 months in prison for her role in a false tax refund scheme, United States Attorney Melinda Haag and Internal Revenue Service (IRS), Criminal Investigation, Special Agent in Charge José M. Martinez announced.
Robinson pleaded guilty on February 19, 2013. According to her plea agreement, between January 26, 2008, and February 12, 2008, Robinson filed false claims for tax returns with the IRS. Robinson admitted that the returns were all false because earning and income that she listed were fabricated. In addition, Robinson acknowledged listing her relative's address on the returns, knowing that the person listed on the tax return did not live there. Robinson also admitted that after a search warrant was executed at her home, she approached a person whose identity she used on a false tax return and asked the person to lie to IRS Agents in exchange for a television. Robinson has remained in custody since December 2011.
At sentencing, Robinson was also ordered to pay restitution in the amount of $38,020. On September 15, 2011, Robinson, of Hayward, California, was charged in a 25-count indictment with wire fraud, false claims, identity theft and obstructing the IRS. She pleaded guilty to eight counts of filing false claims with the IRS.
Thomas Newman in the Tax Division for the U.S. Attorney's Office is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Guatemalan National Convicted of Stabbing Border Patrol K-9Read the Press Release
McALLEN, Texas – A federal magistrate in McAllen has accepted the guilty pleas of Guatemalan National Luis Gilberto Cruz-Solis, 19, of willfully and maliciously harming a police animal and for illegally entering the country, United States Attorney Kenneth Magidson announced today.
On May 12, 2013, Border Patrol K-9 “Dinie” was conducting line-watch operations with her handler and other federal agents when they discovered approximately 30 suspected undocumented aliens fleeing into an orchard near Mission. While in pursuit, “Dinie” located Cruz-Solis hiding in the brush. As the K-9 approached, Cruz-Solis attacked “Dinie” with a knife and stabbed her in the right side of her neck, inflicting a wound two inches deep that narrowly missed her spinal cord. Despite her injury, “Dinie” led agents to Cruz-Solis where he was apprehended.
U.S. Magistrate Judge Peter E. Ormsby accepted the pleas and set sentencing for June 5, 2013, at 3:00 p.m. At that time, Cruz-Solis faces up to a year in prison and a possible $100,000 fine.
This case is being investigated by Border Patrol and the FBI. Assistant United States Attorneys Grady J. Leupold and Kimberly Leo prosecuted the case.
Gregg County Man Sentenced for Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 26-year-old Longview, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jason Ray Ragan pleaded guilty on Feb. 6, 2013, to possession with intent to distribute methamphetamine and was sentenced to 50 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, on Aug. 2, 2012, Ragan was found in possession of approximately 8 grams of methamphetamine. A federal indictment was returned on Sep. 12, 2012 charging Ragan and a co-defendant with federal drug crimes.
Co-defendant, Jason Clinton Squires, pleaded guilty on Apr. 16, 2013 to conspiracy to manufacture, distribute and possess with intent to distribute methamphetamine. Squires is awaiting sentencing.
This case is being investigated by the Drug Enforcement Administration and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Gregg County Lawyer Sentenced for Mail FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 55-year-old Longview, Texas lawyer has been sentenced to federal prison for mail fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Steven Rushing pleaded guilty on Feb. 15, 2013 to mail fraud and was sentenced to 41 months in federal prison today by U.S. District Judge Michael H. Schneider. Rushing was also ordered to pay restitution in the amount of $929,076.29.
According to information presented in court, beginning in January 2007, Rushing devised a scheme to defraud insurance companies and health care providers using the United States mail to execute the scheme. Rushing’s scheme involved providing legal representation to clients injured in accidents. Rushing negotiated settlements with civil defendants or a potential civil defendant’s insurance provider. While negotiating final settlement amounts, Rushing would represent to his clients and the insurance providers that he would use a portion of the settlement proceeds to pay for some, or all, of his client’s outstanding medical bills. Once Rushing received the settlement check, he would deposit it into his account and provide his client with a “Disclosure Statement” detailing the manner in which the total settlement was to be distributed. Rushing would give a check to the client for the “client net” agreed upon amount and execute checks payable to his client’s medical providers. However, Rushing would not actually send the medical providers their checks, instead converting that portion of the settlement proceeds for his own personal use. For instance, Rushing admitted that on June 20, 2011, he sent a letter to Farmers Insurance representing that he would use funds from a proposed settlement to pay off “any and all hospital, health insurance, and/or Medicaid/Medicare liens” in order to secure a specific settlement in the amount of $6,836.00, when in fact, Rushing never intended to pay the liens.
This case was investigated by the Longview Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jim Noble.
Georgia Man Charged in Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Atlanta, Ga., has been indicted by a federal grand jury in Pittsburgh on charges of interstate transportation of stolen property, fraudulently transmitting postal money orders, and making, uttering and passing counterfeit security, United States Attorney David J. Hickton announced today.
The four-count indictment named Shawn S. Foote, 46.
According to the indictment, Foote traveled to Pittsburgh from Atlanta Georgia, to sell counterfeit U.S. Postal Money Orders and counterfeit bank checks to another for the purpose of being fraudulently negotiated.
The law provides for a maximum total sentence of 35 years in prison, a fine of $1,000,000, 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 Paul E. Hull is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Homeland Security Investigations 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.
Franklin County Woman Pleads Guilty to Methamphetamine OffenseRead the Press Release
On May 22, 2013, Rachel L. Mills, 33, of Mulkeytown, IL, plead guilty in United States District Court in Benton to an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
The factual basis at the time of Mills’ plea established that, between August 2009 and September 4, 2012, Mills was involved with Joseph R. Green and others in the manufacture of methamphetamine in Jackson County. On September 4, 2012, Mills was arrested in Murphysboro after she attempted to steal lithium batteries to be used to manufacture methamphetamine. Mills is currently being held without bond pending her September 26, 2013, sentencing hearing. Green, who previously entered a guilty plea, is being held without bond pending a September 5, 2013, sentencing hearing. The methamphetamine offense carries a penalty of up to 20 years in prison, 3 years of supervised release, and a fine of up to $1,000,000.
The ongoing investigation is being conducted by the Jackson County Sheriff's Office and Murphysboro Police Department. The Jackson County State’s Attorney's Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Fort Yates Man Found Guilty of Assault with a Dangerous WeaponRead the Press Release
BISMARCK - U.S. Attorney Timothy Q. Purdon announced that on May 22, 2013, Paul A. Yellow Hammer III, 42, of Fort Yates, N.D., was found guilty by a federal jury in U.S. District Court on a charge of assault with a dangerous weapon. Yellow Hammer was found not guilty of another charge of assault with a dangerous weapon involving a second individual.
On Jan. 31, 2012, in Fort Yates, Yellow Hammer assaulted a woman by kicking her multiple times on or about her body and face, while wearing black work boots. The woman suffered multiple injuries which required medical attention.
The charge of assault with a dangerous weapon carries a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs - Standing Rock Agency.
Sentencing for Yellow Hammer has been scheduled for Sept. 16, 2013, in U.S. District Court in Bismarck, N.D.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Former West Memphis Councilman and Former West Memphis Police Officer Sentenced for Conspiracy to Commit Election FraudRead the Press Release
Little Rock - Patrick C. Harris, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, and Federal Bureau of Investigation Special Agent in Charge Randall C. Coleman announced the sentencing of two Crittenden County men on a charge of conspiracy to commit election fraud. The individuals sentenced by District Judge Kristine Baker were former West Memphis City Councilman Phillip Wayne Carter, age 44, and former West Memphis Police Officer Sam Malone, age 32. These defendants entered guilty pleas to the conspiracy charge after waiving indictment and the filing of a felony information on September 5, 2012. In doing so, each acknowledged his participation in a conspiracy to bribe voters to influence absentee votes in the Arkansas District 54 primary, its runoff election, and the general election, all of which were held between February and July 2011.
Phillip Carter was sentenced today to three years probation, with five months to be completed on home confinement. Carter will be restricted to his residence except for his employment. Carter may be subject to electronic monitoring at the discretion of the Probation Office. He was also fined $2,500 and ordered to complete 100 hours of community service. Finally, he has to pay a $100 special assessment.
Sam Malone was sentenced in a hearing held May 21, 2013 to three years probation, the first 7.2 months of which will be spent on home confinement. Malone may be subject to electronic monitoring at the discretion of the Probation Office. Malone will be restricted to his home while on confinement except for the hours of his employment. He was also ordered to complete 100 hours of community service. Malone was also ordered to pay a special assessment of $100.
As a result of the federal charges and guilty plea, Carter resigned from his position as a Crittenden County Juvenile Probation Officer and Malone resigned from his position as a West Memphis Police Department police officer.
"This is believed to be the first case in the United States in which state election law violations have been prosecuted under the Travel Act, which is 18 U.S.C. 1952(a)(3)," stated Harris. "The case essentially dismantled a corrupt election machine in Crittenden County that has been in place for many years. It resulted in the resignation of a member of the State House of Representatives, the resignation of a county Juvenile Probation Officer, and the resignation of a West Memphis police officer. The defendants can no longer serve in any capacity as public officials. Carter was a member of the West Memphis City Counsel, and Malone was a Crittenden County Quorum Court member and Crittenden County School Board member."
"This case serves as an unfortunate reminder of how pervasive public corruption can be, stated FBI Special Agent in Charge Randall C. Coleman. Arkansans deserve to have both fair and honest elections and fair and honest public officials. I encourage anyone with a tip about public corruption in this state to contact our ArkTrust Public Corruption Task Force by calling the hotline at 501-221-8200 or by sending an e-mail to [email protected]."
According to the felony information to which Malone and Carter pled guilty, Hudson Hallum, age 29, was elected to House Seat 54 on July 12, 2011. Kent Hallum, age 54, managed the finances and certain logistics of his son's campaign for the District 54 seat, including the campaign's effort to solicit and secure votes cast by absentee ballot. Hudson Hallum hired Carter, who was both a West Memphis City Councilman and a Crittenden County Juvenile Probation Officer, to implement the Hallum campaign's absentee ballot strategy. Malone, who was a West Memphis police officer, assisted Carter in implementing the Hallum campaign's absentee ballot strategy.
Hudson Hallum, along with others, declared his candidacy as a Democrat in the special primary election for House Seat 54, which took place on April 20, 2011. Because neither Hudson Hallum nor any other Democratic candidate obtained the required majority of votes in the special primary election, a special primary runoff election took place on May 10, 2011. Hudson Hallum was certified as the winner in the special primary runoff by 8 votes. Hudson Hallum also won the special general election held on July 12, 2011, and was subsequently certified as the winner of the House District 54 special election.
According to the felony information, Hudson Hallum and Kent Hallum tasked Carter, Malone, and others with identifying absentee ballot voters within District 54; obtaining and distributing absentee ballot applications to particular voters; determining when absentee ballots were mailed to absentee voters by the Crittenden County Clerk's Office; and making contact with recipients of absentee ballots to assist those voters in completing the ballots. Once such absentee ballots were completed, the absentee voters typically placed their ballots in unsealed envelopes, which were retrieved by Carter, Malone and others and then subsequently delivered to either Hudson Hallum or Kent Hallum for inspection to ensure that the absentee ballot votes had been cast for Hudson Hallum. After inspection by Hudson Hallum or Kent Hallum, the absentee ballots that contained votes for Hudson Hallum were sealed and mailed to the Crittenden County Clerk's Office. If a ballot contained a vote for Hudson Hallum's opponent, it was destroyed.
At the hearing held September 5, 2012, the defendants admitted that certain absentee ballot voters received things of value in exchange for their votes being cast for Hudson Hallum. For example, in or about May 2011, Carter and Malone provided a chicken dinner to an individual in exchange for the absentee ballot votes of that individual and one other individual. Further, on or about May 4, 2011, Carter contacted Hudson Hallum about a family of eight who had requested a "family meal" in exchange for their absentee ballot votes being cast in favor of Hudson Hallum. Carter requested $20 from Hudson Hallum to pay for the food, to which request Hudson Hallum agreed.
In addition, on or about May 5, 2011, Carter notified Hudson Hallum that some absentee ballot voters were "holding on" to their absentee ballots because they needed money for food. Hudson Hallum instructed Carter to obtain money for the absentee voters from Kent Hallum. Hudson Hallum further told Carter that $20 to $40 was too much to pay for one vote, but that this amount was acceptable to pay for the votes of multiple members of a household. On that same date, Hudson Hallum also told Carter, "We need to use that black limo and buy a couple of cases of some cheap vodka and whiskey to get people to vote." Two days later, Carter and Kent Hallum spoke with an individual in Memphis, Tennessee about getting a discounted price for the purchase of 100 half pints of vodka for the campaign.
Kent Hallum and Hudson Hallum also waived indictment and pled guilty to the conspiracy charge on September 5, 2012. They are scheduled to appear before Judge Baker for sentencing on June 20, 2013.
State charges are pending against Leroy Grant, Eric Cox, Lorenzo Parker, Amos Sanders, and Lisa Burns related to the election fraud scheme. They were filed by special prosecutor H.G. Foster, who was appointed to a circuit court judgeship in January 2013. The case is now being prosecuted by Pulaski and Perry County Prosecutor Larry Jegley.
The investigation was conducted by the Federal Bureau of Investigation and the Arkansas State Police. The case is being prosecuted by Assistant United States Attorneys Tricia Harris and Angela Jegley.
Former Employee of Timeshare Consulting Firm Admits Conspiring to Defraud Timeshare OwnersRead the Press Release
CAMDEN, N.J. – A former employee of The Vacation Ownership Group LLC admitted to conspiring to defraud owners of timeshare properties by offering phony consulting services, U.S. Attorney Paul J. Fishman announced. She also admitted to illegally collecting unemployment benefits.
Catherine Bannigan, 58, of Ventnor, N.J., pleaded guilty today before U.S. District Court Judge Noel L. Hillman in Camden federal court to an Information charging her with one count of conspiracy to commit mail and wire fraud and one count of wire fraud.
According to documents filed in this case and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, had offices in Mays Landing, N.J., and Egg Harbor Township, N.J., and claimed to offer consulting services to owners of timeshares, including cancelling, purchasing and upgrading the timeshares.
In 2010, Bannigan started working at the VO Group and was trained by VO Group co-owner Adam Lacerda to call customers using prepared scripts. The defendant called customers and gave them the false impression that they were working for a bank or lending institution. After hearing the Bannigan’s false representations, some customers sent checks to the VO Group. For example, Bannigan falsely told victim “JL” that a committee at the VO Group was meeting, that Bannigan had scheduled JL’s case to be heard by the committee, and that she needed to mark her complaint resolved or unresolved, to induce JL to send the VO Group money. Bannigan admitted causing more than $70,000 in losses.
Bannigan also admitted to devising a separate scheme to defraud the N.J. Department of Labor by collecting unemployment compensation benefits while working at the VO Group. Bannigan admitted to applying for and being awarded $4,914 in unemployment compensation benefits to which she was not entitled.
On Jan. 23, 2013, co-owners Adam Lacerda and Ashley Lacerda and other members of the VO Group were charged in a Superseding Indictment with conspiracy to commit mail and wire fraud and other charges. Additional members of the VO Group were also charged by Criminal Complaint in April 2012. To date, 11 members of the VO Group have pleaded guilty to conspiring to commit mail fraud and wire fraud. As for the Lacerdas and other defendants who have not been convicted in this case, the charges and allegations against them are merely accusations and they are considered innocent unless and until proven guilty.
The mail and wire fraud conspiracy charge to which Bannigan pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. The wire fraud charge is also punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Oct. 4, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for their roles in the investigation leading to the guilty pleas. He also thanked the N.J. Department of Labor, Benefit Payment Control Unit, for its assistance.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk, Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Rocco C. Cipparone Jr., Esq., Haddon Heights, NJ
Bannigan, Catherine Information
Former City of Marion Water Department Manager Pleads Guilty to Embezzling FundsRead the Press Release
Linda Heyde, 59, of Marion, IL, pled guilty in United States District Court to three counts of theft and embezzlement from a local government which receives federal funds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Each count carries a maximum sentence of up to ten years in prison, up to 3 years supervised release following any jail term, a $250,000 fine, a $100 mandatory special assessment, and mandatory restitution. Sentencing is scheduled for September 20, 2013.
Evidence revealed in Court at the plea showed that Heyde had been employed as the manager of the City of Marion Water Department, from 1996 through May, 2012. After being caught stealing funds, an audit was conducted that determined that there was over $500,000 in missing funds for a three year period of May, 2009, through April, 2012. Heyde admitted as part of the plea to embezzling funds from the City of Marion's Water Department in each of those fiscal years but is contesting the total loss amount.
The prosecution is the result of an investigation conducted by the City of Marion Police Department and the Federal Bureau of Investigation. The prosecution was being handled by Assistant U.S. Attorney Norman R. Smith.
Former CNET Commander Sentenced to 14 Years for Drug, Robbery, and Civil Rights ViolationsRead the Press Release
Norman Wielsch, the former Commander of the Central Contra Costa County Narcotics Enforcement Team and a Special Agent Supervisor of the California Department of Justice, was sentenced to 168 months in federal court in Oakland, yesterday, United States Attorney Melinda Haag announced.
On December 5, 2012 Wielsch pleaded guilty to five felony counts – one count of conspiracy to possess with intent to distribute marijuana and 50 grams or more of methamphetamine, one count of theft from programs receiving federal funds, two counts of civil rights conspiracy, and one count of Hobbs Act robbery.
In pleading guilty to the charges, Wielsch, 52, admitted stealing from evidence facilities $30,000 to $70,000 worth of marijuana and methamphetamine that had been seized during legitimate CNET raids. Specifically, Wielsch admitted that he stole at least twenty pounds of marijuana and more than 400 grams of high-purity methamphetamine (“ice”) between November 2010 and February 2011. He further admitted conspiring to distribute these drugs with his codefendant, private investigator and former Antioch police officer Christopher Butler, 51.
In pleading to the civil rights conspiracies, Wielsch admitted that he and Butler participated together in a phony “sting” operation in which they falsely detained a young man under the guise of a legitimate law enforcement operation, conducted warrantless searches, and kept narcotics that were taken during the “sting.” Wielsch also admitted that he and Butler staged what purported to be legitimate sting operations against prostitutes, but instead of seizing evidence and citing the prostitutes, they unlawfully took the prostitutes’ money and property for themselves. Wielsch acknowledged that they took more than $10,000 from individuals in the course of their prostitution robberies.
The sentence imposed by U.S. District Court Judge Saundra Brown Armstrong also included a $150,000 fine and five year period of supervised release. Wielsch has been in custody since he was remanded at the time of his guilty plea.
Wielsch and Butler were indicted by a federal Grand Jury on August 9, 2011. Butler pleaded guilty on May 4, 2012, to a Superseding Information charging the same narcotics conspiracy, theft from programs receiving federal funds, two civil rights conspiracies, and robbery counts to which Wielsch pleaded guilty, as well as extortion under color of official right and illegal wiretapping. On September 25, 2012, Butler was sentenced to 96 months imprisonment and a $20,000 fine, receiving a sentencing reduction for his cooperation with law enforcement in this and other investigations.
Hartley M. K. West is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Alycee Lane. The prosecution is the result of a lengthy investigation by the FBI with the assistance of the Contra Costa County District Attorney’s Office.
Florida Man Sentenced for Fraud SchemeRead the Press Release
BOSTON – A Florida man was sentenced today in connection with a scheme to defraud over 200 victims out of more than $950,000 in a business opportunity advance fee scheme.
Lawrence Amirto, 60, of Boca Raton, Fla., was sentenced by U.S. District Judge William G. Young to 78 months in prison, followed by three years of supervised release. Amirto was also ordered to pay $968,307 in restitution and to forfeit $462,750. In January 2013, Amirto pleaded guilty to conspiracy and mail fraud.Between June 2010 and December 2010, Amirto conspired with co-defendants Jamon Caswell and William Totaro to defraud victims in a business opportunity advance fee scheme involving an entity called Premier Service Group, Inc. (PSG). Amirto, Caswell and Totaro falsely claimed that PSG provided credit repair services to consumers. They also advertised in publications throughout the United States the sale of independent businesses whereby affiliates would purchase geographic territories and would receive leads from PSG for potential credit repair clients within those territories. The affiliates were to contact these leads, describe the services that PSG would provide, sign them up as clients of PSG, and earn commissions. PSG never provided any credit repair service. Instead, many of the newly recruited affiliates were immediately given the opportunity to recruit additional affiliates. The new affiliates were thereby diverted from learning that there was no actual credit repair business, while soliciting still more affiliates. The funds collected from new affiliates were used for making payments to other affiliates, for expenses associated with the scheme, or for the personal expenses of Amirto, Caswell and Totaro. Amirto also admitted to operating similar advanced fee schemes between 2009 and 2011 using the names Snack America, Coffee Tree and Assisto Coffee.
In October 2012, Caswell pleaded guilty to conspiracy and mail fraud and is scheduled to be sentenced June 13, 2013. In January 2013, Totaro pleaded guilty to conspiracy and mail fraud and is scheduled to be sentenced June 5, 2013.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption and Special Prosecutions Unit.Federal Jury Convicts Tarrant County Man in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Following a two-day trial in federal court in Fort Worth, Texas, before U.S. District Judge John McBryde, a federal jury has convicted Jermaine Duane Irvin, 41, on a superseding indictment charging one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Irvin, who has been in custody since his arrest at his home in Arlington, Texas, on February 28, 2013, faces a statutory penalty of 10 years to life in federal prison and a $5,000,000 fine. He is scheduled to be sentenced on September 13, 2013 by Judge McBryde. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Irvin and four others, Christopher Gamez, of Arlington; Osamu John Hack of Grand Prairie, Texas; Maria Guadalupe Contreras; and Alex Plasencio III, also of Arlington; were charged with running the conspiracy to distribute methamphetamine in the Arlington area from August 2012 to late February 25, 2013. Gamez, Contreras, Hack and Plasencio were arrested in late February 2013 and have each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
This Organized Crime Drug Enforcement Task Force (OCDETF) case was investigated by the Drug Enforcement Administration and the FBI. Assistant U.S. Attorneys Josh Burgess and Shawn Smith are in charge of the prosecution.
Federal Grand Jury Returns Multiple Indictments in Tyler, TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas –A federal grand jury returned multiple indictments today charging individuals with separate federal crimes in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
James Ray Gilliland, 40, of Kilgore, Texas, was indicted on charges of receiving and possessing child pornography. If convicted, he faces up to 40 years in federal prison. According to the indictment, on Dec. 28, 2012, Gilliland knowingly received images containing child pornography. This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Gregg Marchessault.
Travis Van Ayers, 51, of Tyler, was indicted on charges of failure to register as a sex offender. If convicted, he faces up to 10 years in federal prison. This case is being investigated by the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Gregg Marchessault.
Carlos Gerardo Barroso Lopez, 35, was indicted for being a criminal alien present in the United States after having been previously deported. If convicted, he faces up to 10 years in federal prison to be followed by deportation. This case is being investigated by the HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.Roberto Rodriguez-Astorga, 35, was indicted for being a criminal alien present in the United States after having been previously deported. If convicted, he faces up to 20 years in federal prison followed by deportation. This case is being investigated by the HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eagle Butte Man Sentenced for Felon in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man was convicted of being a Felon in Possession of a Firearm and was sentenced on May 20, 2013 by U.S. District Judge Roberto A. Lange.
Kimo Little Bird, age 31, was sentenced to 36 months’ imprisonment, 2 years of supervised release, $1,750 restitution to the Standing Rock Game and Fish Department for the unlawful taking of a hawk, and a $100 special assessment to the Federal Crime Victims Fund.
Little Bird was indicted by a federal grand jury in December of 2012. The conviction stems from when Little Bird was arrested for an outstanding tribal warrant. During the arrest, law enforcement found an additional firearm at the residence where the Defendant was staying. The Defendant admitted that the firearm belonged to him and that he knew he was prohibited from possessing the firearm because he had a previous felony conviction.
This case was investigated by the U.S. Fish & Wildlife Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley prosecuted the case.
Little Bird was immediately turned over to the custody of the U.S. Marshal.
Drug-Related Murder Charges Against Previously Charged Defendant Announced in Federal IndictmentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), Charles Gardner, the Commissioner of the City of Yonkers Police Department, and George N. Longworth, the Commissioner of the Westchester County Department of Public Safety, today announced the unsealing of a six-count superseding Indictment charging MARQUIS JACOBS with the drug-related murder of Carlos Patricio on July 28, 2011, as well as robbery, narcotics, and firearms offenses. JACOBS has been in custody since his arrest by the FBI on December 2, 2011. His case is assigned to United States District Judge Edgardo Ramos, and he is expected to be presented on May 30, 2013 in White Plains Federal Court before Judge Ramos.
U.S. Attorney Preet Bharara stated: “With the additional charges filed against Marquis Jacobs today, we continue the painstaking process of developing evidence against these marauding groups of alleged gang members and holding them to account. This defendant’s alleged catalogue of crimes typifies the gang warfare that is all too familiar and that we are bound and determined to extinguish.”
FBI Assistant Director-in-Charge George Venizelos stated: “Today’s charges, combined with the earlier narcotics and firearms charges against Jacobs, demonstrate yet again how drugs and gun violence go hand-in-hand. The FBI is committed to working with our partners to rid our neighborhoods of the twin plagues of guns and drugs.”
City of Yonkers Police Commissioner Charles Gardner stated: “This indictment is another example of how federal and local partnerships can reduce violence in our neighborhoods. These ongoing investigations have significantly reduced crime and illegal gang activity in our City and they send a message that there is a heavy price to pay for such illegal actions. On behalf of the Mayor and the people of the City of Yonkers, we would like to thank the U.S. Attorney’s Office for the Southern District of N.Y., the F.B.I. New York Office, and the Westchester County Department of Public Safety for their support, cooperation and collaboration in this case.”
Westchester County Department of Public Safety Commissioner George N. Longworth stated: “The partnership among federal, county and local law enforcement is an effective tool in combating illegal narcotics trafficking and the violent crime often associated with it. I commend all the law enforcement officers involved in this drug-related murder investigation for bringing the case to a successful conclusion.”
The following allegations are based on the Indictment returned today in White Plains federal court:
On July 28, 2011, JACOBS shot and killed Patricio, a rival gang member, in Yonkers, New York. On November 28, 2011, JACOBS robbed a narcotics dealer ("Victim-1") in the vicinity of Cliff Street in Yonkers, New York. During that robbery, JACOBS brandished and discharged a firearm, shooting Victim-1 in the stomach. JACOBS also distributed crack cocaine, conspired with others to commit robberies of narcotics dealers, and carried firearms during his narcotics distribution activities.
JACOBS was initially arrested by the FBI and the Yonkers Police Department on December 2, 2011, and charged by Complaint with distributing crack cocaine. On March 27, 2012, JACOBS was charged in a seven-count superseding indictment, along with Donald McIntosh, Maurice Anderson, and Manny Dossantos, with conspiring to distribute crack cocaine, firearms offenses, and conspiring and agreeing to commit robberies of known narcotics dealers, as well as attempted robbery. McIntosh, Anderson and Dossantos have all pled guilty.
A chart containing the charges in the Superseding Indictment and the maximum penalties upon conviction is attached. The charges against JACOBS are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The Indictment is the result of a long-term investigation conducted by the FBI, the City of Yonkers Police Department and the Westchester County Department of Public Safety, working with the United States Attorney's Office for the Southern District of New York, to combat gang violence in the City of Yonkers. As part of that investigation, in June 2012, 22 Yonkers gang members – 20 members of the Strip Boyz and two other individuals – were charged with narcotics trafficking and firearms offenses. Ten of these defendants have pled guilty. In August 2011, 66 Yonkers gang members – 47 members and associates of the Elm Street Wolves, 12 members and associates of the Cliff Street Gangsters and 7 other individuals – were charged with narcotics trafficking and firearms offenses. Four of the Elm Street Wolves were also charged with the murder of Christopher Cokley, a leading member of the Strip Boyz. Sixty-three of these defendants have pled guilty. The charges against the outstanding defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Mr. Bharara praised the outstanding investigative work of the FBI's Westchester County Violent Crime Task Force, the City of Yonkers Police Department and the Westchester County Department of Public Safety. Mr. Bharara added that the investigation is continuing.
The case is being handled by the Office's Violent Crimes Unit and the White Plains Division. Assistant United States Attorneys Andrew Bauer and Jessica Ortiz are in charge of the prosecution.
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District Man Sentenced to 7 1/2 Years in Prison for Hold-Up of Northwest Washington Store-Gun and Other Evidence Tied Him to the Crime-Read the Press Release
WASHINGTON - Torron Frieson, also known as Torron Frierson, 35, of Washington, D.C., was sentenced today to a 7 ½-year prison term on charges stemming from a robbery earlier this year of a liquor store and market in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Frieson pled guilty in March 2013, in the Superior Court of the District of Columbia, to one count of robbery and two related firearms offenses. The Honorable Patricia A. Broderick sentenced him. Upon completion of his prison term, Frieson will be placed on three years of supervised release.
According to the government’s evidence, on Feb. 7, 2013, at about 8:35 p.m., Frieson entered the M & S Liquor Store and Market in the 200 block of Upshur Street NW. He pulled a mask over his face, grabbed a bag of chips, and walked to the cashier counter. As the cashier prepared to provide change for the chip purchase, Frieson walked into the cashier’s booth, produced a long black handgun, pointed it at the cashier, and grabbed money from the register.
The cashier attempted to move the gun away from him and a physical struggle ensued. During the struggle, the cashier was struck and items in the store were broken. Frieson’s gun and car keys fell to the floor, and parts of the mask came off his face. The cashier threw the gun down an aisle and ran out the store. Frieson then retrieved the gun, and fled the scene, leaving his cell phone behind.
Officers from the Metropolitan Police Department (MPD) determined that the defendant had been in the store to purchase beer minutes before he returned for the robbery. Officers also determined that the set of keys left behind by the defendant belonged to a Dodge Durango parked in an alley by the store. Officers found a .45-caliber cartridge stamped 45 Colt Hornady inside the store near the cashier counter. The Dodge Durango was registered to Frieson.
Pursuant to a search warrant, the Dodge Durango was searched and the beer that Frieson had purchased minutes before the robbery was inside the car. Frieson also was identified in a photo array. Frieson was arrested on Feb. 15, 2013 at a residence in Northeast Washington. Inside of one of the bedrooms at the residence was a black Ruger .45 caliber revolver with six cartridges stamped 45 Colt Hornady.
In announcing the sentence, U.S. Attorney Machen commended those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson, Victim/Witness Advocate Jennifer Clark, and Assistant U.S. Attorney Natalia Medina, who prosecuted the case.
13-180District Man Sentenced to 3 1/2-Year Prison Term for Breaking into Northwest Washington Pizza Restaurant-Employees Tackled Mask-Wearing Defendant, Held Him Until Police Arrived-Read the Press Release
FOR IMMEDIATE RELEASE
Wednessday, May 22, 2013WASHINGTON - Leon W. Bailey, 44, of Washington, D.C., has been sentenced to a prison term of 3 ½ years for breaking into a pizza restaurant and trying to take money from the cash register, U.S. Attorney Ronald C. Machen Jr. announced today.
Bailey pled guilty in March 2013 in the Superior Court of the District of Columbia to second-degree burglary. He was sentenced on May 21, 2013 by the Honorable Rhonda Reid Winston. After his prison term, Bailey will be placed on three years of supervised release.According to the government’s evidence, on Jan. 23, 2013, at about 4:50 p.m., Bailey, who was wearing a grey mask, entered a pizza restaurant in the 1500 block of North Capitol Street NW. An employee saw the masked man barging into the restaurant and tried to close the door to the kitchen and cash register area. Bailey, however, kicked the door and broke it open.
Once inside the cash register area, Bailey demanded money. The employee opened the cash register and Bailey began grabbing money from the drawer. When the employee realized that Bailey did not have any weapons on him, he called to his colleagues for help. The other employees rushed to the front of the store and tackled Bailey. They then struggled to hold him as he was kicking and trying to get away. The employees were able to detain Bailey until the police arrived. Police found Bailey was on the ground, with money strewn on the floor.
In announcing the sentence, U.S. Attorney Machen commended the efforts of those who worked on the case from the Metropolitan Police Department (MPD). He also acknowledged the work of Victim/Witness Advocate Kristina Rose, who assisted the victims, and Assistant U.S. Attorney John C. Truong, who investigated and prosecuted the case.
13-179District Man Pleads Guilty to Federal Charge in Theft of More Than $340,000 in Government Funds-Defendant Cashed in on Benefits in Name of Deceased Mother-Read the Press Release
WASHINGTON - Eugene Weatherford, 60, of Washington, D.C., pled guilty today to a federal charge stemming from the theft of more than $340,000 in government money, announced U.S. Attorney Ronald C. Machen Jr., Michael McGill, Special Agent in Charge from the Social Security Administration’s Office of Inspector General, and Patrick E. McFarland, Inspector General for the Office of Personnel Management.
Weatherford, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia to theft of government funds. The Honorable Richard W. Roberts scheduled sentencing for Aug. 13, 2013. Weatherford faces a statutory maximum of 10 years in prison. Under federal sentencing guidelines, he faces a likely range of 18 to 24 months of incarceration.
In connection with the guilty plea, Weatherford admitted that from March 1999 through June 2012, he received and negotiated U.S. Treasury checks issued in the name of his mother, who died in February 1999. These checks included retirement benefits from the U.S. Social Security Administration and annuity benefits from the U.S. Office of Personnel Management.
According to the government’s evidence, following his mother’s death, Weatherford continued to receive and negotiate the U.S. Treasury checks in her name by depositing them into a joint bank account that they shared. In certain instances, Weatherford signed his own name in endorsing the backs of the checks issued in his mother’s name, and in other instances, he left the endorsement blank, aside from instructions to deposit the money into the joint bank account.
Weatherford admitted that, through this scheme, he obtained approximately $255,038 in Social Security retirement benefits and $91,484 in OPM annuity benefits, for a total illicit gain of approximately $346,522.
In announcing the guilty plea, U.S. Attorney Machen, Special Agent in Charge McGill and Inspector General McFarland commended those who investigated the case from the Social Security Administration’s Office of Inspector General and OPM’s Office of Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Angela Lawrence and Nicole Wattelet, Assistant U.S. Attorney Catherine Connelly, who assisted with forfeiture issues, and Assistant U.S. Attorney David Last, who prosecuted the case.
13-181Director of Operations for Boston Society of the New Jerusalem Arrested on Racketeering ChargesRead the Press Release
Boston - Edward J. MacKenzie, Jr., was arrested this morning after being indicted by a federal grand jury in Boston of racketeering, RICO conspiracy, mail fraud conspiracy and money laundering conspiracy, extortion and bribery.
MacKenzie, 54, of Weymouth, is the Director of Operations for the Boston Society of the New Jerusalem (“Church”), also known as the Church on the Hill, a position he has held from 2003 to the present. According to the indictment, MacKenzie began to systematically loot the Church of its considerable financial assets through a combination of fraud, deceit, extortion, theft and bribery. MacKenzie also allegedly intimated and threatened individuals who were employed by and did work at the Church by in part, among other things, providing them with signed copies of this 2003 autobiography, Street Soldier: My Life as an Enforcer for Whitey Bulger and the Boston Irish Mob. According to the indictment, MacKenzie admitted to a lengthy criminal history in the book.Additionally, it is alleged that in his capacity as Director of Operations, MacKenzie had authority for physical changes to the plant of the church and as such, he along with his co-conspirators, began voting to provide themselves and associates substantial financial benefits. These benefits included, but not limited to, four new vehicles; cash awards for family members; and tuition grants to family members. The indictment also alleges that MacKenzie and his co-conspirators solicited bribes and kickbacks from numerous commercial vendors for hundreds of thousands of dollars.
MacKenzie faces the maximum statutory penalty of up to 20 years in prison on each of the charges.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office; and William Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Zachary Hafer and Dustin Chao of Ortiz’s Public Corruption and Special Prosecutions Unit.
Daphne Man Convicted of Online EnticementRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Alan Preston Prine, 59, of Daphne, was convicted today by a federal jury in Mobile for attempting to entice two children for sex via the internet. Following a day of testimony, the jury deliberated for less than hour before returning a guilty verdict this morning. Prine was taken into the custody of the United States Marshals Service after the verdict.
The evidence at trial showed that Prine responded to an online personals advertisement in November of 2012, and, communicating with what he believed to be a 32-year old woman, attempted to arrange sexual encounters with the woman’s young daughters. Prine engaged in three days of conversation via e-mail with the woman, exchanging nearly 200 messages in an attempt to arrange a meeting with the girls. When Prine showed up to meet the children, he was met by state and federal law enforcement officers.
The charge carries a minimum mandatory penalty of 10 years in prison and a maximum of life imprisonment, a fine of up $250,000, and five years to lifetime supervised release. United States District Judge Callie V.S. Granade will sentence Prine on August 20, 2013 at 1:00 p.m.
The Saraland Police Department and the Federal Bureau of Investigation conducted the investigation and presented the case for prosecution to the United States Attorney’s Office. Assistant United States Attorneys Sean P. Costello and Maria E. Murphy handled the prosecution of the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood combines federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information, please visit http://www.justice.gov/psc/.
Dallas Woman Charged with Financial Aid FraudRead the Press Release
DALLAS — Sussette Sheree Timmons, 30, of Dallas, was indicted by a federal grand jury yesterday on multiple counts of financial aid fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that Timmons applied for and received financial aid from six schools that offered distance learning programs via the Internet. Timmons allegedly never intended to use the disbursed financial aid funds for education and instead intended to embezzle, misapply, steal and obtain the funds for her own personal use.
Timmons applied for, and received financial aid from: New Mexico State University, Western New Mexico University, Ashford University, Northern New Mexico College, Coconino Community College and Pima Community College. She enrolled in classes at the schools and the awarded financial aid was applied to her tuition and fees.
As part of the financial aid, Timmons also received disbursement checks which she cashed, even though she had no intention of using those funds for authorized educational expenses and purposes. The indictment further alleges that Timmons not only did not intend to complete, but she did not complete any of the classes for which she enrolled, and she did not intend to pursue an education at the schools. When asked by the institutions to return or refund the financial aid, she refused. In 2011, when one of the schools suspended her financial aid, Timmons appealed. That school rejected her appeal, stating that she had withdrawn from 13 colleges or universities since 2009.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. The indictment charges Timmons with six counts of financial institution fraud. If convicted, each count carries a maximum statutory sentence of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered.
The case is being investigated by the U.S. Department of Education Office of Inspector General. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
Dall Sheep Guide sentenced for illegal hunting in AlaskaRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Canadian man was sentenced in U. S. District Court in Fairbanks, Alaska, for the sale of two unlawfully taken and possessed Dall sheep.
Patrick J. Downey, 67, of Turner Valley, Alberta, Canada, pled guilty in May 2012, and was sentenced May 10, 2013, by U.S. District Judge Ralph R. Beistline after admitting that he guided two hunts that resulted in taking under-sized Dall sheep. Downey was sentenced to pay a $20,000 fine, was placed on probation for five years, during which Downey may not hunt or guide in the United States. The charges arose from Downey’s service as a licensed Alaska assistant guide in the Arctic National Wildlife Refuge (ANWR) in 2008 and 2009. For approximately twenty years, Downey had guided hunters in the Brooks Range while employed by Master Guide-Outfitter Joe Hendricks, co-owner of Fair Chase Hunts (FCH).
According to Assistant U. S. Attorney Stephen Cooper, who prosecuted the case, the facts Downey admitted to in court showed that in 2008, he guided client Thomas McGann of Longmont, Colorado, who shot a Dall sheep mistakenly believing it was of legal size. To obscure the fact that one horn of the Dall sheep was less than the legal minimum full curl, Master Guide Joe Hendricks and Downey altered the horn by hammering it with a rock. The horns passed the required Fish and Game inspection in Fairbanks, but after further investigation by the U.S. Fish and Wildlife Service, agents seized the horns from McGann.
Similarly, in August 2009, Downey’s client Delbert Oney of Lockwood, Missouri, mistakenly shot a ram with under-length horns. Downey and Oney then altered the tips of both horns by hammering them on a rock to conceal their sub-legal size. The horns failed state inspection and were seized.
For his part in these and other guiding offenses, Hendricks was sentenced in U. S. District Court in Fairbanks in August 2012 to pay a fine of $125,000 and was restricted from hunting and guiding for five years. Hunting clients McGann and Oney were sentenced in February and April 2013, for transporting their unlawfully-taken Dall sheep and each paid a fine of $10,000, was restricted from hunting for one year and forfeited their sheep.
To date, this investigation led by the U.S. Fish and Wildlife Service, Office of Law Enforcement, has resulted in the convictions of nearly a dozen FCH guides, employees and clients. Registered guide Christopher Cassidy, co-owner of FCH, pled guilty in June 2011, to two felonies and eleven misdemeanors for guiding hunts that involved failing to salvage all edible meat of a Dall sheep, possessing an untagged grizzly bear, and guiding outside Cassidy’s authorized guide use area in ANWR.
Ms. Loeffler commends the United States Fish & Wildlife Service, Office of Law Enforcement for Northern Alaska, Arctic National Wildlife Refuge staff, and Alaska Wildlife Troopers for the investigation of this case.
Corrupt Colombian Government Employee and Criminal Defense Attorney Extradited in Obstruction of Justice CaseRead the Press Release
Later today, Freddy Mauricio Tellez-Buitrago and Adriana Gonzalez-Marquez will be arraigned at the federal courthouse in Brooklyn, New York, on obstruction of justice charges for stealing sensitive and confidential United States law enforcement information concerning prosecutions in the Eastern District of New York and selling that information to a narcotics trafficker. Prior to his arrest, Tellez-Buitrago was employed as an administrative services assistant at the International Affairs Office within the Attorney General’s Office in Colombia. Prior to her arrest, Gonzalez-Marquez, a former prosecutor at the Attorney General’s Office in Colombia, was practicing as a Colombian criminal defense attorney. Tellez-Buitrago and Gonzalez-Marquez were arrested in Colombia on provisional arrest warrants issued from the Eastern District of New York.1
The extradition was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; and Brian Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York. The investigation was conducted by HSI in Bogota, with assistance provided by HSI in New York, DEA in Bogota and New York, and local law enforcement authorities in Colombia.
The defendants’ extradition resulted from an investigation which revealed that through his employment at the Colombian Attorney General’s Office, Tellez-Buitrago had specialized access to law enforcement materials, including requests from the United States government for the extradition of alleged Colombian drug traffickers. Typically, the Colombian authorities treat such extradition requests as sensitive and confidential until the arrest of the individual whose extradition is sought. Tellez-Buitrago is charged with accepting bribes from Gonzalez-Marquez in exchange for leaking documents relating to EDNY extradition requests for narcotics traffickers. Gonzalez-Marquez, in turn, allegedly sold the information to a narcotics trafficker in exchange for the equivalent of approximately 30,000 in U.S. dollars.
“These defendants used their insiders knowledge of the Colombian Attorney General’s Office to steal confidential information that put lives at risk. The extradition of the defendants highlights the success of the international cooperation between the United States and Colombia. We will continue to take every step to target individuals who attempt to compromise the judicial process by obstructing justice here and in Colombia, placing the lives of law enforcement personnel in jeopardy,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Colombian National Police and the Colombian Attorney General’s Office for their assistance in this case.
“Gonzalez-Marquez and Tellez-Buitrago allegedly used their connections within the Colombian government to provide sensitive information to members of drug trafficking organizations. This type of criminal espionage greatly threatens our efforts to capture criminals abroad and threatens the safety of American and Colombian law enforcement officers alike,” said HSI Special Agent in Charge Hayes. “HSI, working with our attachés and international and federal law enforcement partners, contributes to the disruption of drug trafficking organizations that line their pockets with millions of dollars in illicit proceeds.”
DEA Special Agent in Charge Crowell stated, “Today, as the defendants in this case stepped onto American soil, Freddy Mauricio Tellez-Buitrago and Adriana Gonzalez-Marquez realized the harsh reality that there is no amount of money worth their charged criminal acts. Federal, state, local and international law enforcement united their resources to expose the defendants’ obstruction of justice and extradited them to the U.S. to face our judicial system, a system they allegedly tried to endanger by selling sensitive information and supplying it to the enemies of cops everywhere – drug traffickers.”
If convicted, Tellez-Buitrago and Gonzalez-Marquez each face a maximum sentence of twenty years’ imprisonment, criminal forfeiture, and a fine of up to $250,000.
The government’s case is being prosecuted by Assistant United States Attorney Soumya Dayananda.
The Defendants:
ADRIANA GONZALEZ-MARQUEZ
Age: 33FREDDY MARQUEZ TELLEZ-BUITRAGO
Age: 34_____________________________
1 The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Convicted Sex Offender Pleads Guilty to Child PornographyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jerald Kicinski, 48, of East Bethany, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio, to receipt of child pornography. The charge carries a mandatory minimum sentence of 15 years in prison, a maximum of 40 years, a fine of $250,000, or both.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that between December 2010 and December 14, 2011, the defendant received child pornography on his computer at his residence in East Bethany. These images had been transmitted to the defendant in interstate commerce via the Internet. Kicinski was previously convicted of Sexual Abuse in the Second Degree in 2002 and Sexual Abuse in the Third Degree in 1990. Both of the defendant's prior convictions involved minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea was the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent In Charge.Sentencing will occur in front of Chief Judge William M. Skretny. No sentencing date has been scheduled.
Cincinnati Man Sentenced to 162 Months for Conspiracy to Distribute Heroin in Northern KY and OhioRead the Press Release
COVINGTON, KY - A Cincinnati man who previously admitted to participating in a conspiracy to distribute heroin was sentenced to 162 months in federal prison.
U.S. District Judge David Bunning sentenced 43 year-old Lee Moore on Tuesday and also ordered him to serve 8 years of supervised release after he completes his prison term.
Moore admitted that over the course of approximately 15 months he distributed over 100 grams of heroin throughout northern Kentucky and southern Ohio. He also acknowledged transporting large amounts of a substance used to cut heroin for distribution. Moore was previously convicted of felony drug trafficking offenses in Ohio and Georgia.
Moore pleaded guilty on January 25, 2012. A co-defendant, Raymond Hill, Jr., was sentenced to 276 months in prison on May 16, 2013.
Under federal law, the defendants must serve at least 85 percent of their prison sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration, Detroit Field Division, jointly announced the sentence.
The investigation was conducted by the DEA and the Cincinnati Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Tony Bracke.
Charlotte Man Sentenced to over 11 Years in Prison for Possession and Transportation of Child PornographyRead the Press Release
CHARLOTTE, N.C. – A Charlotte man was sentenced to 135 months in prison today for possession and transportation of child pornography, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Robert Bove, 55, of Charlotte was also ordered to serve 20 years under court supervision following his prison sentence and to register as a sex offender.
Joining U.S. Attorney Tompkins in making today’s announcement are John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Rodney D. Monroe, of the Charlotte Mecklenburg Police Department (CMPD).
In April 2011, a federal criminal indictment charged Bove with one count of transportation and one count of possession of child pornography. According to filed court documents and today’s sentencing hearing, between September 2010 and February 2011, Bove transported and possessed videos and images depicting the sexual abuse of children. Bove pleaded guilty to the charges in September 2011.
According to information contained in court documents and yesterday’s sentencing hearing, in September 2010, Bove was chatting online using the screen name “luvsyourlittlegirl” with a Sargent of the Sturgeon Bay Police Department (SBPD) in Wisconsin who was posing as a 42-year-old female. Court records indicate that during the online exchange, Bove sent the undercover officer an image of child pornography. The Wisconsin detective was able determine that “luvsyourlittlegirl” had sent the image of child pornography from a residence in Charlotte, and he forwarded the investigative materials to the Charlotte Mecklenburg Police Department. According to court records, law enforcement obtained a search warrant for the residence, where they encountered Robert Bove, who admitted to police that he was “luvsyourlittlegirl” and that there was child pornography on his home computer. Filed documents indicate that law enforcement seized the computer and other electronic evidence, and a computer forensic examiner discovered videos and images of child pornography on Bove’s computer and flash drive. Court records indicate that the images and videos Bove possessed depicted children as young as toddlers engaged in sexual acts with adults.
In determining Bove’s sentence, Chief U.S. District Judge Robert J. Conrad, Jr. considered evidence presented at the sentencing hearing that Bove had been previously the subject of a child pornography investigation in Colorado. During that investigation, a detective in Colorado encountered Bove in a chat room where child pornography videos were being broadcasted and viewed by members of the chat room. Judge Conrad also considered chats between Bove and the undercover detective in Wisconsin, wherein Bove, posing as “luvsyourlittlegirl,” told the detective that he had seen child pornography videos in chat rooms five and six years ago, and that it was “very exciting” and “very hot.”
Bove has been in local federal custody since April 2011. He will be transferred into the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. The case resulted from the collaborative efforts of the Sturgeon Bay, Wisconsin, Police Department, CMPD and the FBI, all of which are members of their state Internet Crimes Against Children task forces.
In making today’s announcement U.S. Attorney Tompkins thanked the Sturgeon Bay Police Department for their assistance in this case.
The prosecution for the government of Bove was handled by Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Canton Man Sentence to More Than Six Years in Prison for Filing False Tax Returns While in PrisonRead the Press Release
Brandon Mace was sentenced to more than six years in prison for claiming false income tax refunds totaling nearly $5.5 million, said Steven M. Dettelbach, United States Attorney.
Mace filed the false claims while incarcerated on state charges.
Mace pleaded guilty to the charges on February 27, 2013, before United States District Judge Patricia A. Gaughan, who imposed today’s sentence. The two-count indictment against Mace charged that he prepared and filed false income tax returns for the years 2008 and 2009 claiming false tax refunds in the amounts of $207,000 and $5,292,000, respectively.
Mace, a 35-year old resident of Canton, Ohio, has been in pretrial detention since his arrest on these charges on November 20, 2012, according to court records.
Mace requested a non-prison sentence on a number of grounds, including his claim that he knew he would never receive any of the requested refunds. According to court documents and proceedings, however, the government mailed the requested 2008 refund check to Mace at a Post Office box, where he planned to retrieve it upon his scheduled release from state custody in late 2009. He did not succeed in getting the check because the Post Office returned it to the government before he could get there. The government did not issue the 2009 refund check, although Mace made efforts to obtain it beyond filing his false return. After the IRS sent Mace correspondence requesting an explanation for his lack of a supporting W-2 form, Mace replied by sending a hand-written letter containing a false excuse.
In announcing the prison sentence, Judge Gaughan cited to Mace’s extensive criminal record as a significant factor.
The case was prosecuted by Special Assistant United States Attorney Perry D. Mastrocola and Assistant United States Attorney John M. Siegel, following an investigation by the Internal Revenue Service -- Criminal Investigation.
Burnsville Man Indicted for Possessing with Intent to Distribute 5,480 Grams of MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 35-year-old Burnsville man was indicted for possessing with intent to distribute more than five kilograms of methamphetamine. Albert Morris Johnson was charged with one count of possession with intent to distribute 500 or more grams of methamphetamine, one count of distribution of 50 or more grams of methamphetamine, one count of being a felon in possession of a firearm, and one count of possession of a firearm with a removed, obliterated, or altered serial number.
The indictment alleges that on May 1, 2013, Johnson possessed the methamphetamine, along with two handguns -- a nine-millimeter, semi-automatic and a .40-caliber, semi-automatic firearm with an obliterated serial number. Because he is a felon, Johnson is prohibited under federal law from possessing a firearm or ammunition at any time. He was previously convicted in Sherburne County in 2009 for second-degree assault with a dangerous weapon.
A state law enforcement affidavit filed relative to the present case states that during the execution of a search warrant at Johnson’s residence on May 1, 2013, authorities seized approximately 12 pounds of methamphetamine in the laundry room, the two firearms noted above, more than $16,000 in cash, a digital scale, a money counter, and packaging material.Authorities also executed a search warrant at Johnson’s Burnsville-based barbershop on that same day.
If convicted, Johnson faces a potential maximum penalty of life in prison on the possession with intent count, 40 years on the distribution count, ten years on the felon in possession count, and five years on the obliterated serial number count. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the Dakota County Drug Task Force, and the United States Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorneys Benjamin Bejar and Thomas M. Hollenhorst.
To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.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.
Attorney and Four Clients Indicted for Conspiracy to Bribe an Immigration OfficialRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted an immigration attorney and four of his clients in connection with a conspiracy to bribe an immigration official in order to obtain lawful permanent residence, employment authorization documents and green cards. The defendants are:
Kiran Dewan, age 59, of Woodbine, Maryland; Amjad Israr, age 46, of Cheshire, Connecticut; Mohammad Khan, age 58, of Baltimore, Maryland; Khazar Nadar, age 55, of Catonsville, Maryland; and
Narayan Thapa, age 51, of Perry Hall, Maryland.The indictment was returned on January 8, 2013, and unsealed today upon the arrests of Dewan, Israr, Khan and Thapa.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.
“Immigration attorneys hold positions of public trust and it is disturbing that anyone would defraud the very system in which they work for their own personal profit,” said ICE Homeland Security Investigations Special Agent in Charge in Baltimore William Winter. “Document and benefit fraud poses a significant vulnerability to our national security and exploits America's legal immigration system. Whether you are trying to illegally obtain an immigration benefit or facilitating the fraud, know this - you will be found, arrested and held accountable for your actions.”
According to the indictment, Dewan is a Maryland attorney, who held himself out as having experience handling immigration matters. Dewan operated the Law Offices of Dewan and Associates, P.C., located in Windsor Mill, Maryland. Israr, Khan and Nadar are citizens of Pakistan and Thapa is a citizen of Nepal. All were clients of Dewan. Israr and Khan were both businessmen, operating several convenience stores in Connecticut and a restaurant in Brooklyn Park, Maryland, respectively. Nadar worked at several gas stations in Maryland and Thapa worked at a Maryland restaurant. None of the clients met the requirements for lawful permanent residence, nor for employment authorization.
The five count indictment alleges that beginning in at least March 2011 Dewan obtained money from Israr, Khan, Nadar and Thapa to bribe an undercover agent to obtain lawful permanent residence, employment authorization documents and green cards. Dewan then allegedly prepared fraudulent immigration documents for his clients to sign and submit to the undercover agent. In the documents, Dewan, Israr and Khan falsely represented that Israr and Khan were married to U.S. citizens. Dewan, Nadar and Thapa falsely represented that Nadar and Thapa’s employers had sponsored them to seek lawful permanent residence.
The indictment alleges that the defendants met with the undercover HSI special agent on several occasions to create application documents for submission to USCIS. Although Dewan allegedly agreed to pay the undercover agent bribes for each client in order the obtain the requested documents, Dewan provided the undercover agent a total of $117,100 in a series of installments. Dewan kept $2,900 as his commission on a bribe payment of $36,000 that he wired to a foreign account, which purportedly belonged to the undercover agent.
The defendants each face a maximum sentence of five years in prison for the conspiracy and a maximum of 15 years in prison for each count of bribery. An initial appearance is scheduled today for Dewan, Khan and Thapa in U.S. District Court in Baltimore. Israr had an initial appearance in U.S. District Court in New Haven, Connecticut, and was detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, USCIS Baltimore District Office and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Gregory R. Bockin, who are prosecuting the case.
Attempted Crystal Meth Distribution Lands Two Mexican Men in Federal PrisonRead the Press Release
McALLEN, Texas – Arturo Cesar Rodriguez, 30, and Josue Gonzalez-Cardenas, 39, have both been ordered to federal prison for distributing crystal methamphetamine in two separate, but similar cases, United States Attorney Kenneth Magidson announced today along with Javier Peña, special agent in charge of the Drug Enforcement Administration (DEA). Rodriguez, of Hurapan, Michoacan, Mexico, and Gonzalez-Cardenas, of Monclova, Coahuila, Mexico, entered guilty pleas on Feb. 27, 2013.
Today, U.S. District Judge Micaela Alvarez, who accepted the pleas, handed Gonzalez-Cardenas a total sentence of 57 months in federal prison. Following that hearing, Judge Alvarez then sentenced Rodriguez to a term of 188 months, noting that in his case, he was “critical” to the transaction.
As illegal aliens both men are expected to face deportation proceedings following release from prison.
In the first case, Gonzalez-Cardenas was indicted along with Jose Cruz Deleon-Vasquez, 47, of San Juan. On Aug. 21, 2012, local law enforcement had conducted a traffic stop on the vehicle Deleon-Vasquez was driving. A subsequent search of the vehicle lead to the discovery of a box with two bundles of crystal methamphetamine. Gonzalez-Cardenas was to receive the box with the narcotics from another associate. Deleon-Vasquez was allegedly then supposed to drive Gonzalez-Cardenas to another location for delivery of the box of crystal methamphetamine to another associate for further distribution.
A subsequent analysis of the narcotics revealed the net weight of the crystal methamphetamine was 1.971 kilograms and that the narcotics had purity level of 93.3%.
Deleon-Vasquez is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Marshals Service at 1-877-WANTED2 or 1-800-336-0102. His case remains pending and he is presumed innocent unless convicted through due process of law.
In the second case, Rodriguez was stopped by law enforcement after he was observed receiving a cardboard box from another individual on Aug. 27, 2012. At that time, Rodriguez attempted to flee from the vehicle but was eventually arrested. The box was determined to contain eight bricks of crystal methamphetamine. Upon receipt of the narcotics, Rodriguez was to deliver it to an unknown associate for further distribution within the United States.
A subsequent analysis of the narcotics revealed that the net weight of the crystal methamphetamine was 8.159 kilograms and the narcotics had purity level of 98.5%
Rodriguez and Gonzalez-Cardenas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Both cases were investigated by the DEA and prosecuted by Assistant United States Attorney Juan Alanis.
Alleged Conspirator Arrested, Four Indicted for Armed Robberies of New Jersey T-Mobile StoresRead the Press Release
NEWARK, N.J. – FBI special agents arrested a Roslyn Heights, N.Y., man near his home this morning to face an indictment charging him and three other men with various offenses in connection with two armed robberies of T-Mobile stores in Linden and Woodbridge, N.J., U.S. Attorney Paul J. Fishman announced.
Leonard Arrington, 27, is charged in the indictment – along with Carl Williams, 29, and Eric Williams, 32, of Brooklyn, N.Y. – with one count of conspiracy to commit Hobbs Act robberies, one count of committing a Hobbs Act robbery and one count of using a firearm during a crime of violence. Terrell McQueen, 29, of Elizabeth, N.J., is charged in the indictment with the same offenses, as well as an additional count each of Hobbs Act robbery and using a firearm during a crime of violence.
McQueen, Carl Williams and Eric Williams (no relation) were initially arrested and charged by criminal complaint with the conspiracy and firearms counts on Feb. 14, 2013. They appeared that day before U.S. Magistrate Judge Mark Falk, who remanded them to federal custody pending trial.
Arrington is expected to appear today before Judge Falk in Newark federal court.
According to the indictment unsealed today and other documents filed in this case:
On Sept. 20, 2012, Carl Williams and another man, brandishing a firearm, walked into a T-Mobile store in Linden. They then tied up the employees in the back of the store, stole approximately 50 to 60 cell phones, and fled in a Land Rover.
McQueen, Eric Williams and other conspirators then delivered the stolen phones to a cell phone store in Brooklyn.
On Oct. 2, 2012, Arrington entered a T-Mobile store in Woodbridge, carrying a gun, along with another man. After locking the front door, the men took the employees to the back of the store and tied them up, then stole approximately 40 cell phones. One of the robbers then called the getaway driver, who drove them away in a Land Rover. McQueen, Eric Williams, and others delivered the stolen phones to the same Brooklyn store.
The charges of Hobbs Act conspiracy and robbery (Counts One, Two and Four) carry a maximum potential penalty of 20 years in prison. The charge of brandishing a firearm during a crime of violence (Counts Three and Five) carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years for the first count of conviction, and 25 years for the second count of conviction, each of which must run consecutively to one another and to any other prison term. Each of the five counts also carries a maximum fine of $250,000.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the arrest and charges. He also thanked the Linden and Woodbridge Police Departments in New Jersey, as well as the New York City and Nassau County Police Departments and the Kings County District Attorney’s Office in New York for their excellent work in this case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Nicholas P. Grippo of the U.S. Attorney’s Office General Crimes Unit in Newark.The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-207
Defense counsel:Terrell McQueen: Anthony J. Pope Esq., Newark
Carl Williams: Mark A. Berman Esq., River Edge, N.J.
Eric Williams: Aaron M. Goldsmith Esq., New York
Leonard Arrington: TBDMcQueen, Terrell et al. Indictment
Albuquerque Man Pleads Guilty to Robbing Five Businesses During Three-Month Crime SpreeRead the Press Release
ALBUQUERQUE – Julio Francia, 22, of Albuquerque, N.M., pled guilty this morning to robbing five Albuquerque-area businesses and to carrying a firearm during a crime of violence under a plea agreement with the U.S. Attorney’s Office. Francia’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, 2nd Judicial District Attorney Kari E. Brandenburg, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Chief Ray Schultz of the Albuquerque Police Department.
According to court filings, Francia was arrested on state charges on Oct. 17, 2012, on allegations that he committed an armed robbery at a Subway Restaurant located at 8520 Montgomery Blvd. NE in Albuquerque. After Francia admitted committing a number of armed at commercial businesses in Albuquerque, including the Subway Restaurant, between Aug. 2012 and Oct. 2012, the 2nd Judicial District Attorney’s Office charged Francia with numerous armed robbery offenses.
On Nov. 27, 2012, Francia was federally indicted and charged with violating the Hobbs Act by robbing a business engaged in interstate commerce and using a firearm during a crime of violence. The charges in the indictment arose out of the armed robbery of the Subway Restaurant on Oct. 17, 2012. On Feb. 6, 2013, Francia was transferred from state custody to federal custody to face the charges in the federal indictment and the state charges against Francia subsequently were dismissed.
During this morning’s proceedings, Francia pleaded guilty to the indictment charging him with a Hobbs Act robbery at the Subway Restaurant on Oct. 17, 2012, and using a firearm during a crime on violence on that same day. Francia also entered a guilty plea to a four-count felony information charging him with committing Hobbs Act armed robberies at the following Albuquerque businesses: (1) the Auto Zone, located at 12904 Lomas Blvd. NE, on Aug. 15, 2012; (2) the Auto Zone, located at 8820 Montgomery Blvd. NE, on Sept. 21, 2012; (3) the Taco Bell, located at 320 Eubank Blvd. NE, on Oct. 3, 2012; and (4) the Twister’s Restaurant, located at 740 Juan Tabo NE, on Oct. 4, 2012.
Francia has been in federal custody since Feb. 2012, and remains detained pending his sentencing hearing, which has yet to be set. Under the terms of the plea agreement, Francia will be sentenced to a federal prison term of 15 to 20 years.
This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. It is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
African Trophy Hunter Indicted for Violating Endangered Species Act and Lacey ActRead the Press Release
Charles Kokesh was indicted by a federal grand jury in Pensacola, Florida, for violating the Endangered Species Act and the Lacey Act by selling two African elephant tusks and for making false accounts of wildlife related to that sale, the Justice Department announced today.
The three count indictment returned yesterday alleges that Kokesh legally imported a sport-hunted African elephant trophy mount from Namibia, but thereafter illegally sold the two tusks, from New Mexico to a buyer in Florida. The sale price was approximately $8,100, to be paid in a combination of currency and guns. After the sale, Kokesh allegedly falsely described that sale, in an email to personnel at the U.S. Fish and Wildlife Service, as a shipment to an appraiser in anticipation of a donation to a non-profit entity. Kokesh similarly falsely accounted for the location and disposition of the tusks in subsequent correspondence. Each false account and record is charged under the Lacey Act.
African elephants are protected under the Endangered Species Act and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Both the United States and Namibia are signatories to CITES. African elephant populations in Namibia are listed in Appendix II of CITES, which includes species that are not necessarily threatened with extinction now, but may become so unless trade in specimens of such species is strictly regulated. Since 2000, the Namibian African elephant listing has specified that the species cannot be used for commercial purposes.
The United States implements CITES through the Endangered Species Act and regulations issued thereunder. To implement the CITES prohibition against commercial use of African elephant specimens, regulations issued under the Endangered Species Act proscribe the commercial use, including sale, of sport-hunted African elephant trophies, even if the trophies are legally hunted and imported.
According to a recent report produced by CITES and partner organizations, entitled “Elephants in the Dust –The African Elephant Crisis,” populations of elephants in Africa are under severe threat as the illegal trade in ivory grows – with the number of elephants killed doubling and the amount of ivory seized tripling over the last decade. An estimated 17,000 elephants were illegally killed in 2011 to feed the illegal trade. More information is available at www.cites.org/eng/news/pr/2013/20130306_ivory.php.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
The maximum penalty for the charged violation of the Endangered Species Act is up to six months in prison and a $25,000 fine. The maximum penalty for making a false statement is up to five years in prison and a $250,000 fine.
The case was investigated by the U.S. Fish and Wildlife Service and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and the U.S. Attorney’s Office for the Northern District of Florida.
For more information about CITES visit www.CITES.org.
African Trophy Hunter Indicted for Violating Endangered Species Act and Lacey ActRead the Press Release
PENSACOLA, FL – Charles Kokesh, 65, of Santa Fe, New Mexico, was indicted today by a federal grand jury in Pensacola, Florida, for violating the Endangered Species Act and the Lacey Act by selling two African elephant tusks and for making false statements related to that sale. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The three-count indictment alleges that Kokesh legally imported tusks from a sport-hunted African elephant from Namibia, but thereafter illegally sold the tusks to a buyer in Florida. The sale price was approximately $8,100, to be paid in a combination of currency and guns. After the sale, Kokesh allegedly falsely described that sale, in an email to personnel at the U.S. Fish and Wildlife Service, as a shipment to an appraiser in anticipation of a donation to a non-profit entity. Kokesh similarly falsely accounted for the location and disposition of the tusks in subsequent correspondence. Each false statement is charged under the Lacey Act.
African elephants are protected under the Endangered Species Act and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). Both the United States and Namibia are signatories to CITES. African elephant populations in Namibia are listed in Appendix II of CITES, which includes species that are not necessarily threatened with extinction now, but may become so unless trade in specimens of such species is strictly regulated. Since 2000, the Namibian African elephant listing has specified that the species cannot be used for commercial purposes.
The United States implements CITES through the Endangered Species Act and regulations issued thereunder. To implement the CITES prohibition against commercial use of African elephant specimens, regulations issued under the Endangered Species Act proscribe the commercial use, including sale, of sport-hunted African elephant trophies, even if the trophies are legally hunted and imported.
According to a recent report produced by CITES and partner organizations, entitled “Elephants in the Dust –The African Elephant Crisis,” populations of elephants in Africa are under severe threat as the illegal trade in ivory grows – with the number of elephants killed doubling and the amount of ivory seized tripling over the last decade. An estimated 17,000 elephants were illegally killed in 2011 to feed the illegal trade. http://www.cites.org/eng/news/pr/2013/20130306_ivory.phpAn indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
The maximum penalty for the charged violation of the Endangered Species Act is up to six months in prison and a $25,000 fine. The maximum penalty for making a false statement is up to five years in prison and a $250,000 fine.
Today’s indictment comes as a result of an investigation by the U.S. Fish and Wildlife Service, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Edwin F. Knight, of the Northern District of Florida, and Cassandra Barnum, Trial Attorney with the Environmental Crimes Section of the Department of Justice’s Environmental and Natural Resource Division.
For more information about CITES visit www.CITES.org
Adams County Drug Court Supervisor Charged with Maintaining Drug-Involved PremisesRead the Press Release
Springfield, Ill. – A supervisor of the Adams County, Ill., probation department’s drug court program, John Grotts, 59, of Ursa, Ill., has been charged in federal court by criminal complaint with maintaining a drug-involved premises.
Grotts appeared this afternoon in Springfield before U.S. Magistrate Judge Byron G. Cudmore. Grotts turned himself in to law enforcement officers this morning. The government did not seek Grotts’ detention and he was released on his own recognizance. Grotts’ next federal court appearance is scheduled on June 29, 2013.
The affidavit filed in support of the criminal complaint alleges that Grotts’ residence, in the 200 block of Walker Street, was made available for use or used to manufacture or use methamphetamine and marijuana. According to the affidavit, items recovered from Grotts’ home, which he shared with a May 2012 graduate of the Adams County drug court program, during execution of a state-authorized search warrant on Apr. 26, 2013, allegedly included items related to growing marijuana indoors and items used to manufacture or use methamphetamine and marijuana, and a number of firearms.
If convicted, the statutory penalty for maintaining a drug-involved premises is up to 20 years in prison.
The charge is the result of an investigation by the West Central Illinois Task Force; the Adams County Sheriff’s Office; the Quincy Police Department; and the Illinois State Police. The case is being prosecuted by Assistant U.S. Attorney Bryan D. Freres in cooperation with the office of Adams County State’s Attorney Jon Barnard.
Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
21 May 2013
Yonkers Man Pleads Guilty in White Plains Federal Court to Impersonating an FBI AgentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that AYMAN RABADI, of Yonkers, New York, pleaded guilty to an Information charging him with wire fraud in connection with charges that he impersonated a Special Agent of the Federal Bureau of Investigation (“FBI”). RABADI was charged in April 2013, and pled guilty today before U.S. District Judge Kenneth M. Karas.
U.S. Attorney Preet Bharara said: “Ayman Rabadi is a serial offender who has a track record of impersonating law enforcement officials for the purpose of preying on susceptible victims and stealing their money in exchange for empty promises. He will now be held to account for his crimes.”
According to the Complaint and Information, and statements made at today’s plea proceeding in White Plains federal court:
From November 2010 until his arrest on April 18, 2013, RABADI impersonated an FBI agent, and in doing so, obtained at least $180,000 and other things of value from individuals he promised that he could provide various forms of federal assistance. RABADI was arrested shortly after he accepted $10,000 in cash from an undercover agent of the FBI who was posing as the niece of one of his victims. The money was purportedly a down payment toward the $300,000 RABADI requested in exchange for obtaining the release of the victim’s relatives from jail. He was arrested immediately after leaving the Yonkers restaurant where the payment was made, and was in possession of the $10,000.
RABADI has an extensive criminal history that includes a 2008 conviction in the state of New Jersey for the felony of theft by deception. In that case, he created the false impression that there were criminal charges pending against a victim, that RABADI was connected to law enforcement, and he could thwart the charges for $75,000.
RABADI, 52, of Yonkers, NY, pled guilty to one count of wire fraud. He will face a sentence of up to 20 years in prison and a fine of up to $380,000 when he is sentenced by Judge Karas on September 10, 2013.
Mr. Bharara praised the work of the FBI in this investigation.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Elliott B. Jacobson is in charge of the prosecution.
Woman Guilty of Tax FraudRead the Press Release
CORPUS CHRISTI, Texas - Rhonda Hartmann has pleaded guilty to presenting a false tax refund claim to the Internal Revenue Service (IRS), United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of IRS-Criminal Investigation (CI).
On Sept. 26, 2012, a federal grand jury in Corpus Christi indicted Hartmann with three counts of making or presenting fraudulent tax refund claims to the United States for tax years 2006, 2007 and 2008. The fraudulent claims for these three years totaled $560,124.
Today, at a hearing before Senior U.S. District Judge John D. Rainey, Hartmann admitted she filed tax returns which included fraudulent form 1099-OIDs and requested a refund of monies not actually withheld.
Judge Rainey has set sentencing for Aug. 19, 2013, at 5:30 p.m. At that time, Hartmann faces a sentence of up to five years in federal prison and a possible $250,000 fine.
Hartmann was permitted to remain on bond pending her sentencing hearing.
The case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Robert D. Thorpe Jr.
Wolcott Resident Pleads Guilty to Participating in Mortgage Fraud ConspiracyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DANIEL MONTEIRO, 34, of Wolcott, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of conspiracy to commit bank fraud, wire fraud, and money laundering stemming from a mortgage fraud scheme.
According to court documents and statements made in court, from approximately May to October 2007, MONTEIRO conspired with others to obtain residential mortgages through the use of false down payments and hidden referral fees. As part of the scheme, MONTEIRO referred individuals to a co-conspirator who had purchased numerous residential real estate properties, many through the use of a private lender. The individuals MONTEIRO referred were then identified on mortgage documents as having purchased properties from MONTEIRO’s co-conspirator. However, the co-conspirator purchased the bank checks that were used as down payments for each of the transactions. The co-conspirator used money obtained from the mortgages to pay private lenders and, on some occasions, referral fees to MONTEIRO.
MONTEIRO is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on August 16, 2013, at which time MONTEIRO faces a maximum term of imprisonment of five years and a fine of up to $250,000. As part of his plea agreement, MONTEIRO has agreed to forfeit $15,000.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service, and the United States Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney David T. Huang and Paul H. McConnell.
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(203) 821-3722 [email protected]Vince Lee Whiteman Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on May 21, 2013, in Billings, after a federal district court trial before U.S. District Judge Donald W. Molloy, VINCE LEE WHITEMAN, a 23-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, was found guilty of assault with a dangerous weapon and aiding and abetting assault with a dangerous weapon. A sentencing date will be scheduled at a later time. He is currently detained.
At trial, the following evidence and testimony was presented to the jury.
On the evening of July 29, 2011, the victim was with his nephew and they were drinking together. At some point they met up with WHITEMAN and then, later, met up with Zachary Knows His Gun. All four drove to Soldier Gulch Road where they parked the car and continued to drink. The victim and Knows His Gun were in the back seat of the car. WHITEMAN had a knife with him.
An argument about who was tougher led Knows His Gun to ask WHITEMAN for his knife. WHITEMAN gave him his knife. Knows His Gun then stabbed the victim in the neck. The victim fought back, which resulted in WHITEMAN joining the fight and, according to the victim and Knows His Gun, also stabbing the victim in the neck. The victim got out of the car and was able to run away. The victim identified both Knows His Gun and WHITEMAN as the assailants.
After hiding in the hills for a period of time, the victim went to a house for help.
WHITEMAN was interviewed and admitted that he gave Knows His Gun his knife, but claimed that he did not know why Knows His Gun wanted the knife. He denied stabbing or assaulting the victim and, in fact, claimed that he pulled Knows His Gun away from the victim and tried to help the victim.
Knows His Gun, the nephew, and another witness were interviewed and described the knife that WHITEMAN was carrying the day of the assault. Knows His Gun and the other witness provided law enforcement with drawings of the knife during the investigation.
WHITEMAN was arrested on tribal charges and his pants, which appeared to have blood on them, were seized. DNA analysis confirmed that the major contributor of the DNA extracted from the blood stain on WHITEMAN's pants was the victim's.
Knows His Gun pleaded guilty to assault with a dangerous weapon and is serving a 37-month federal sentence.
Assistant U.S. Attorney Brendan P. McCarthy and Legal Intern Amanda Tiernan prosecuted the case for the United States.
WHITEMAN faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release on each count.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Unregistered Sex Offender Arrested in Cayuga CountyRead the Press Release
United States Attorney Richard S. Hartunian announced that JIMMY L. MORSE, 34, was arrested today at a residence in Locke, New York, and charged with the federal offense of failing to register as a sex offender.1
A criminal complaint unsealed today alleges that in June of 2002 MORSE was convicted in East Baton Rouge, Louisiana of Aggravated Oral Sexual Battery against a child, and sentenced to 4 years imprisonment. MORSE was also notified that he was required to register as a sex offender until April of 2020. MORSE last complied with his registration requirements in Louisiana in 2008, and a warrant was issued for him there in 2010 as a result.
In April of 2013 the United States Marshals Service received information from authorities in Louisiana that MORSE may be living in Cayuga County, New York. After investigation, the Marshals Service determined that MORSE’s conviction would require him to register as a sex offender in New York, and that he had not registered as required.
MORSE was located today at a residence in Locke, New York and arrested on a warrant signed yesterday by Hon. Therese Wiley Dancks, United States Magistrate Judge. He made his initial appearance before her today, and has been remanded pending disposition of his case.
The charge filed against MORSE carries with it a maximum sentence of 10 years, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life.
MORSE’S arrest is the result of an investigation by the United States Marshals Service Sex Offender Investigation Branch, North East Region, and the New York/New Jersey Regional Fugitive Task Force with the assistance of the Cayuga County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher as part of Project Safe Childhood. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.autotrader.com/.
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1The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
U.s. Renal Care to Pay $7.3 Million to Resolve False Claims Act AllegationsRead the Press Release
Baltimore, Maryland - U.S. Renal Care, headquartered in Plano, Texas, has agreed to pay $7.3 million to resolve allegations that Dialysis Corporation of America (DCA) violated the False Claims Act by submitting false claims to the Medicare program for more Epogen than was actually administered to dialysis patients at DCA facilities. U.S. Renal Care, which acquired DCA in June 2010, owns and operates more than 100 freestanding outpatient dialysis facilities throughout the United States. Prior to its acquisition by U.S. Renal Care, DCA was a publicly traded company based in Linthicum, Maryland.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
Epogen is an intravenous medication that is used to treat anemia, a common condition afflicting patients with end-stage renal disease. Epogen vials contain a small amount of medication in excess of the labeled amount, known as “overfill,” to compensate for medication that may remain in the vial after extraction and in the syringe upon administration. The United States contends that from January 2004 through May 2011, DCA billed for 10-11% overfill whenever it administered Epogen. However, because of the types of syringes DCA used, the United States alleges that DCA was not able to withdraw and administer 10-11% overfill every time it administered Epogen to patients, and thus submitted false claims to Medicare that overstated the amount of Epogen that it was actually providing.
“Medical care providers who submit false claims for services and products that were not actually delivered threaten the financial viability of the Medicare Trust Fund,” said Rod J. Rosenstein, U.S. Attorney for the District of Maryland.
“Today’s settlement shows that the Justice Department will aggressively pursue those health care providers who cut corners at the expense of the American taxpayers, such as by billing for items and services that were not provided,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “We will continue to protect scarce Medicare dollars.”
“Health providers billing for phantom services cheat taxpayers and cheat government programs straining to pay for vitally needed care,” said Nick DiGiulio, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services for the region including Maryland. “We will continue to work with the Department of Justice to ensure health professionals get reimbursed only for services they actually provide.”
The claims settled by this agreement are allegations, and there has been no determination of liability.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.2 billion.
The allegations settled today arose from a lawsuit filed by Laura Davis against DCA under the qui tam, or whistleblower, provisions of the False Claims Act. United States ex rel. Laura Davis v. Dialysis Corporation of America, No. 1:08-cv-2829 (D. Md.). The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the United States and share in any recovery. Ms. Davis will receive $1,314,000 as part of today’s settlement.
This case was handled by Assistant U.S. Attorney Roann Nichols of the U.S. Attorney’s Office for the District of Maryland and Trial Attorney Arthur Di Dio of the Civil Division of the Department of Justice, with assistance from the Office of Inspector General for the Department of Health and Human Services.
U.S. Renal Care to Pay $7.3 Million<br /> to Resolve False Claims Act AllegationsRead the Press Release
U.S. Renal Care, headquartered in Plano, Texas, has agreed to pay $7.3 million to resolve allegations that Dialysis Corporation of America (DCA) violated the False Claims Act by submitting false claims to the Medicare program for more Epogen than was actually administered to dialysis patients at DCA facilities, the Justice Department announced today. U.S. Renal Care, which acquired DCA in June 2010, owns and operates more than 100 freestanding outpatient dialysis facilities throughout the United States.
Epogen is an intravenous medication that is used to treat anemia, a common condition afflicting patients with end-stage renal disease. Epogen vials contain a small amount of medication in excess of the labeled amount, known as “overfill,” to compensate for medication that may remain in the vial after extraction and in the syringe upon administration. The United States contends that from January 2004 through May 2011, DCA billed for 10-11% overfill whenever it administered Epogen. However, because of the types of syringes DCA used, the United States alleges that DCA was not able to withdraw and administer 10-11% overfill every time it administered Epogen to patients, and thus submitted false claims to Medicare that overstated the amount of Epogen that it was actually providing.
“Today’s settlement shows that the Justice Department will aggressively pursue those health care providers who cut corners at the expense of the American taxpayers, such as by billing for items and services that were not provided,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “We will continue to protect scarce Medicare dollars.”
“Medical care providers who submit false claims for services and products that were not actually delivered threaten the financial viability of the Medicare Trust Fund,” said Rod J. Rosenstein, U.S. Attorney for the District of Maryland.
“Health providers billing for phantom services cheat taxpayers, cheat programs straining to pay for vitally needed care, and cheat patients who pay inflated copayments,” said Nick DiGiulio, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services for the region including Maryland. “We will continue to work with the Department of Justice to ensure health professionals get reimbursed only for services they actually provide”
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.2 billion.
The allegations settled today arose from a lawsuit filed by Laura Davis against DCA under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the United States and share in any recovery. Ms. Davis will receive $1,314,000 as part of today’s settlement.
This case was handled by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the District of Maryland with assistance from the Office of Inspector General for the Department of Health and Human Services. The claims settled by this agreement are allegations only, and there has been no determination of liability. The whistleblower suit is captioned United States ex rel. Laura Davis v. Dialysis Corporation of America, No. 1:08-cv-2829 (D. Md.).
Two Miami-Dade Residents Charged in Tax Preparation Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced the filing of a 30-count indictment charging defendants Rigoberto Cabrera, 37, and Carlos Perez, 34, both of Miami-Dade County, in a tax preparation fraud scheme. Defendant Perez had his initial appearance on May 16, 2013 in Ft. Lauderdale before U.S. Magistrate Judge Andrea M. Simonton. Defendant Cabrera is expected to make his initial appearance tomorrow at 11:00 a.m. in Ft. Lauderdale before Chief U.S. Magistrate Judge Barry S. Seltzer.
Specifically, each defendant is charged with one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, U.S.C. Section 286; and one count of conspiracy to commit wire fraud, in violation of Title 18, U.S.C. Section 1349. Defendant Cabrera is also charged with 18 counts of making false claims to the IRS, in violation of Title 18, U.S.C. Section 287; four counts of wire fraud, in violation of Title 18, U.S.C. Section 1343; one count of conspiracy to commit money laundering, in violation of Title 18, U.S.C. Section 1956(h); and four counts of money laundering, in violation of Title 18, U.S.C. Section 1956(a)(1)(B)(i). Defendant Perez is charged with 11 counts of making false claims to the IRS, in violation of Title 18, U.S.C. Section 287; and two counts of wire fraud, in violation of Title 18, U.S.C. Section 1343.
According to the indictment, defendants Cabrera and Perez recruited individuals and offered to prepare their individual income tax returns with the promise that the defendants could obtain substantial tax refunds for the taxpayers. The recruited taxpayers agreed to pay Cabrera and Perez a percentage of the refunds they received. The defendants then prepared fraudulent 2008 and 2009 federal income tax returns on behalf of the recruited taxpayers, claiming tax credits or deductions to which the taxpayers were not entitled. After the taxpayers received the fraudulent refunds from the IRS, Cabrera and Perez collected a percentage of the funds from the taxpayers through checks payable to companies that the defendants controlled and shell companies.
Through this scheme, the defendants claimed approximately $1,458,905 in tax refunds from the IRS.
If convicted, the defendants face up to ten years in prison for each count of conspiracy to defraud the government, making false claims, and conspiracy to commit money laundering; and up to twenty years in prison for each count of conspiracy to commit wire fraud, wire fraud, and money laundering.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Daniel Bernstein and Alejandro O. Soto.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Denso Corporation Executives Agree to Plead Guilty for Price Fixing and Bid Rigging on Auto Parts Installed in U.S. CarsRead the Press Release
Two DENSO Corp. executives – Yuji Suzuki and Hiroshi Watanabe – have agreed to plead guilty for their roles in international conspiracies to fix prices and rig bids of certain automotive components installed in U.S. cars, the Department of Justice announced today. The executives, both Japanese nationals, have also agreed to serve time in a U.S. prison.
Yuji Suzuki, a senior manager in DENSO’s Toyota Sales Division, has agreed to serve 16 months in a U.S. prison, to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. Hiroshi Watanabe, a group leader in DENSO’s Toyota Sales Division at the time of the offense, has agreed to serve 15 months in a U.S. prison, to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation.
“The conspirators reached agreements to fix prices and allocate bids, and took measures such as using code names and meeting in secret to cover their tracks,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “Cracking down on international price-fixing cartels that target U.S. businesses and consumers has been, and will continue to be, among the top priorities for the Antitrust Division.”
According to the two-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Suzuki, along with co-conspirators, engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of, electronic control units and heater control panels sold to Toyota Motor Corporation and Toyota Motor Engineering and Manufacturing North America Inc. in the United States and elsewhere. According to the charges, Suzuki participated in the electronic control units conspiracy from at least as early as August 2005 until at least December 2008 and participated in the heater control panels conspiracy from at least as early as July 2005 until at least December 2008.
According to a one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, Watanabe participated in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of, heater control panels sold to Toyota from at least as early as June 2008 and continuing until at least February 2010 in the United States and elsewhere.
In March 2012, DENSO pleaded guilty and was sentenced to pay a $78 million criminal fine for its role in the conspiracies related to electronic control units and heater control panels.
Electronic control units are electrical components, similar to tiny computers, which are embedded throughout cars and control various electrical systems or subsystems in an automobile. For example, a body electronic control unit controls the power windows, power locks and other electronic components on the door. Heater control panels are located in the center console of a car and control the temperature inside the car.
“Those individuals who engage in price fixing and bid rigging negatively impact the automotive industry by causing vehicle buyers and makers to pay higher prices. The FBI is committed to pursuing and prosecuting these criminals,” said Robert D. Foley III, Special Agent in Charge, FBI Detroit Division.
According to the charges against Suzuki and Watanabe, they carried out the conspiracies by participating, or directing the participation of subordinate employees, in meetings and conversations to coordinate and fix prices of automotive parts installed in U.S. cars and elsewhere.
To date, nine companies and 14 executives have pleaded guilty or agreed to plead guilty in the department’s ongoing investigation into price fixing and bid rigging in the automotive parts industry. DENSO, Nippon Seiki Ltd., Tokai Rika Co. Ltd., Furukawa Electric Co. Ltd, Yazaki Corp., G.S. Electech Inc., Fujikura Ltd., Autoliv Inc. and TRW Deutschland Holding GmbH pleaded guilty and were sentenced to pay a total of more than $809 million in criminal fines. Additionally, 12 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each.
Suzuki and Watanabe are charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s National Criminal Enforcement Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
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Suzuki InformationTwo Corporate Execs Plead Guilty in $630,000 Federal Tax EvasionRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that two top senior executives of an employment staffing agency that operated in West Virginia both pleaded guilty to federal employment tax evasion charges. Daniel Hovis, 60, president of Career Search One, Inc., pleaded guilty today to failure to pay trust fund taxes to the IRS for employees. The corporation’s vice president, Janice Hensley, 63, also pleaded guilty to failure to pay trust fund taxes to the IRS.
Hovis and Hensley together failed to pay more than $600,000 in federal employment taxes that were owed to the IRS.
Career Search One, Inc. specialized in providing employees to client businesses for a fee. The corporation’s primary bookkeeping offices were based in Charleston and Wheeling, West Virginia. Hovis and Hensley both worked out of the Charleston location.
From 2004 through the first quarter of 2010, Hovis and Hensley withheld trust fund taxes from many employees’ paychecks. The trust fund taxes were monies that were owed to the IRS. Hovis and Hensley each failed to report or pay over trust fund taxes that they had previously withheld from employees’ wages. Trust fund taxes are withheld federal income and Federal Insurance Contribution Act (“FICA”) taxes, which also include Social Security and Medicare taxes. Career Search One, Inc. failed to pay these taxes.
From 2004 through the first quarter of 2010, Hovis and Hensley failed to report and pay over approximately $630,158.94 in trust fund taxes to the IRS on behalf of Career Search One, Inc.’s employees. Hovis and Hensley used the monies to pay personal expenses. Both executives knew that the corporate funds should have been used for the payment of trust fund taxes.
Hovis and Hensley each face up to five years in prison and a $250,000 fine when they are sentenced on September 4, 2013 by United States District Judge Thomas E. Johnston.
The Internal Revenue Service, Criminal Investigative Division conducted the investigation. Assistant United States Attorney Meredith George Thomas is in charge of the prosecutions.