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Friday 5 April 2013
Former New Orleans Resident, Kaleb Deakle, Charged with Defrauding Car DealershipRead the Press Release
KALEB DEAKLE, age 24, a resident of Atlanta, Georgia, was charged in a bill of information today with wire fraud, announced U. S. Attorney Dana Boente.
According to court documents, DEAKLE, who previously resided in New Orleans, gained access to the bank account of the management company where he had leased a condominium. DEAKLE used his computer to negotiate the online sale of a 2012 Land Rover Sport. After a series of emails with the salesman, DEAKLE arrived at Land Rover of New Orleans on January 12, 2012, with a check purportedly from the management company. The check was counterfeit and written out for the total purchase price of $72,148.50. DEAKLE led the dealership to believe that he was employed by Apple, Inc., that the check was legitimate, and took possession of the vehicle.
If convicted, DEAKLE faces a maximum term of imprisonment of 20 years, a fine of
$250,000 and 3 years of supervised release following any term of imprisonment.U. S. Attorney Boente reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Special Agents of the Federal Bureau of Investigation and
the prosecution is being handled by Assistant United States Attorney Jon Maestri.(Download Bill of Information )
Former Jewelry Store Owner and Loan Officer Charged in $20 Million Mortgage Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A federal grand jury has charged Robert Mikail, 40, and Ging-Hwang “Felicia” Tsoa, 58, both of Ashburn, Va., with conspiracy and bank fraud charges related to their alleged roles in a $20 million mortgage fraud scheme involving more than 35 homes.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
If convicted, Mikail and Tsoa each face a maximum penalty of 30 years in prison on each count of the indictment.
According to the seven-count indictment returned on April 4, 2013, Mikail owned a retail jewelry store in Ashburn, Va. known as Opus Jewelry, and Tsoa worked as a loan officer at First Empire Mortgage, in Fairfax, Virginia, and Lifetime Financial Services, in Herndon, Va.
From 2005 to 2007, Mikail allegedly recruited individuals, known as “straw buyers,” to serve as nominal purchasers in real estate transactions as part of a scheme to profit from fraudulently obtained mortgage loans and the purchase of residential real estate in northern Virginia. In order to get the straw buyers’ loan applications approved and the transactions closed, Mikail, working with Tsoa and other loan officers, allegedly falsified the straw buyers’ loan applications. In particular, all of the fraudulent loan applications falsely designated Mikail’s Opus Jewelry as the borrowers’ employer, which Mikail would then falsely verify to the lenders as part of the loan approval process.
In total, Mikail allegedly engineered the purchase of approximately 36 homes in Ashburn, Va., and obtained from lenders approximately $19,866,150 in loan proceeds on the basis of fraudulent loan applications. While Mikail and Tsoa profited when these homes were purchased, all of the loans ultimately defaulted, resulting in significant losses to the lenders.
Alleged co-conspirator Bing-Sing “Cindy” Wang, the owner of Lifetime Financial Services, pleaded guilty to related charges on Nov. 20, 2012, and was sentenced to 24 months in prison on Feb. 26, 2013.
The case is being investigated by the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Employee Pleads Guilty to Embezzling Funds from Labor UnionRead the Press Release
Baltimore, Maryland – Cora Carper, age 32, of Churchton, Maryland, pleaded guilty today to embezzlement from a labor union, in connection with a scheme to steal at least $200,000 from the union’s political action committee.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor – Management Standards.
According to her plea, Carper was a secretary with the International Association of Heat and Frost Insulators and Allied Workers, assigned to perform clerical tasks associated with the operation of the Insulators Political Action Committee (PAC) fund. Carper’s duties included processing disbursement requests. Disbursement requests had to be made in writing and only the Insulators General President, General Secretary-Treasurer, Political Director and officers of the Insulators local unions had authority to request disbursements from the PAC fund. Once Carper received a written request for disbursement from an appropriate official, she was supposed to print a check from the PAC fund account that contained the electronic signatures of the Insulators General President and General Secretary-Treasurer and forward that check to the recipient. Carper also entered PAC fund receipts and deposits into a computerized ledger, made deposits in the PAC fund, and received and reconciled monthly PAC fund bank statements against the electronic ledger.
Carper admits that between June 2009 and February 2011, she printed more than 300 checks totaling approximately $502,586, from the PAC fund account made payable to “cash,” “cash reimbursement,” or “petty cash.” Union officials stated that Carper printed and cashed the checks, without authorization, often cashing multiple PAC fund checks the same day. Carper endorsed the back of all but 13 of the more than 300 checks she cashed. During the time of the embezzlement Carper deposited at least $180,000 into her personal bank accounts. To cover up her embezzlement, Carper made false entries in the computerized ledger indicating that the checks were written for donations to political candidates, expense reimbursements or expenses for conferences. In fact, the checks were made payable to cash, cashed by Carper and then used for her personal benefit.
In early 2011 Carper was confronted about her embezzlement by the Insulators General President. Carper admitted that she had taken $7,300, but denied further embezzlement. Her family paid the Insulators $7,300. A subsequent internal investigation by the Insulators and by the Department of Labor, Office of Labor - Management Standards revealed that Carper’s embezzlement far exceeded her limited admission, with $502,586 in checks attributed to Carper’s embezzlement.
Carper faces a maximum sentence of five years in prison and a fine of $250,000. As part of her plea agreement, Carper will be required to pay restitution in the full amount of the victim’s losses, which will be determined at sentencing. U.S. District Judge George L. Russell III has scheduled Carper’s sentencing for June 4, 2013, at 9:30 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked U.S. Department of Labor, Office of Labor - Management Standards for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Kristi N. O’Malley, who is prosecuting the case.
Former Chambersburg Area School Teacher Indicted for Receipt and Possession of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Schmutzler, of Fayettesville, Pennsylvania, was indicted Wednesday by a federal grand jury in Harrisburg for receipt and possession of child pornography.
According to United States Attorney Peter J. Smith, Schmutzler, a former teacher at Chambersburg Area School District, was arrested on March 21, following charges filed in a Criminal Complaint. He remains in custody.
At this point in the investigation, the U.S. Attorney’s Office has no evidence that any female students were involved or that there was any unlawful physical contact with any students.
Anyone with information related to this matter should please contact United States Postal Inspector Michael Corricelli at 717-257-5581.
If you feel you are a victim and need assistance please contact the Victim/Witness Coordinator for the Middle District of Pennsylvania Laurie A. Riley at 717-221-4482 or 1-866-673-7340.
The case is being investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s(ICE) Homeland Security Investigations(HSI) and the Pennsylvania State Police. The prosecutor assigned to the case is Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the mandatory minimum penalty is five years’ imprisonment. The maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Bank Teller Pleads Guilty to EmbezzlementRead the Press Release
Jackson, Miss. - Heather Brewer, 30, of Ridgeland, Mississippi, pled guilty in federal court today to embezzlement from a federally-insured bank, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced. She will be sentenced by U.S. District Judge Daniel P. Jordan III on June 27, 2013 at 9:30 a.m., and faces a maximum penalty of 30 years in prison and a $1 million fine.
Brewer admitted that, from December 2010 through June 2012, while working as a bank teller for BankPlus in Ridgeland, she embezzled approximately $59,470.00 from her teller drawer, another teller drawer, and from the ATM which she was responsible for balancing and replenishing with cash.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Federal Tax Prosecutions Serve as Reminder to Taxpayers to Comply with Tax Obligations as April 15 Deadline ApproachesRead the Press Release
CHICAGO – Three tax return preparers, a salesman, and the owner of a psychic reading business are among seven Chicago and suburban defendants who are facing federal prosecution in separate cases for alleged federal income tax crimes. These cases, along with others recently charged, are typical of federal tax prosecutions that occur throughout the year, but they also serve as a reminder to taxpayers of the importance of voluntary compliance with their tax obligations as the April 15 filing deadline approaches, federal law enforcement officials announced today.
“The IRS Criminal Investigation Division is committed to ensuring that all taxpayers pay their fair share,” said James C. Lee, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “We are aggressively serving the American people by investigating criminal violations of the Internal Revenue Code. Tax fraud does not know a season – IRS special agents pursue criminals year round, not only at tax time. Taxpayers who might be thinking about cheating with this month's filing deadline looming should think twice or they will risk the consequences.”
Gary S. Shapiro, United States Attorney for the Northern District of Illinois, noted that in addition to criminal penalties, including incarceration, fines, and the costs of prosecution, convicted defendants remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed. Those making false claims against the government may be required to pay restitution or may be sued civilly for an amount greater than the fraudulent claims.
In one case, an arrest warrant was issued for COREY B. NORWOOD, 35, of Chicago, who was indicted on Wednesday by a federal grand jury on four counts of making false claims for federal tax refunds totaling nearly $1 million. In 2009, Norwood allegedly falsely claimed a refund in the amount of $94,450 in a false tax return he filed for the purported “Corey Norwood Trust.”
After filing a document in 2011 with the Cook County Recorder of Deeds stating that he was to be known as “Amun Re Barber El,” Norwood allegedly submitted to the IRS three false decedent estate tax returns for 2008, 2009, and 2010, indicating that Norwood had died and “Amun Re Barber El” was the executor of his estate. Each of the three estate returns allegedly falsely claimed a tax refund of $300,000, according to the charges. The government is being represented by Assistant U.S. Attorney Stephen Heinze.
A tax return preparer, MICHAEL SINGLETON, is awaiting sentencing after pleading guilty to preparing 549 fraudulent tax returns between 2005 and 2007 that caused the government a tax loss of $2,854,800. Singleton, 48, of Chicago and formerly of Homewood, operated ITA Services, and admitted preparing tax returns for clients that included fabricated information enabling them to obtain deductions for charitable contributions, rental properties, dependents, and business expenses, as well as other expenses that were non-existent and did not entitle his clients to a refund. Singleton was indicted in 2010 and pleaded guilty in June 2012 to two counts of assisting in the preparation of false tax returns. He faces a maximum sentence of three years in prison and a $250,000 fine on each count, and his plea agreement anticipates a federal sentencing guidelines range of 46 to 57 in prison. Singleton was scheduled to be sentenced today, but the sentencing was postponed and no new date has yet been set. (AUSA Tony U. Iweagwu, Jr.)
In other recent cases:
JOHN AUSTIN, 70, of Northlake, who owned and operated N-Less Travel & Taxes, a tax preparation business in Northlake, was charged with assisting in the filing of approximately 1,292 false tax returns for some 741 different clients for tax years 2008 through 2010, and causing the government a tax loss of approximately $1,292,000. Austin allegedly reduced the tax liabilities and increased the tax refunds for clients by fraudulently misrepresenting their filing status, overstating and misrepresenting expenses, and misrepresenting taxpayers’ eligibility to claim tax credits. Austin has pleaded not guilty to two counts of assisting in the preparation of false tax returns that were filed on March 4. (AUSA Andrew DeVooght.)
BILL COOPER, 39, of Schaumburg and formerly of Arlington Heights, who owned a psychic reading business in Arlington Heights and Tampa, Fla., pleaded guilty on March 7 to two misdemeanor counts of failing to file individual income tax returns. Cooper admitted that he earned gross income of approximately $305,427 in 2006; $311,751 in 2007; and $100,356 in 2008, and failed to file federal income tax returns for each of those years. Cooper faces a maximum sentence of a year in prison and a $100,000 fine on each of the two counts and his plea agreement anticipates a sentencing guidelines range of 15 to 21 months in prison. He is scheduled to be sentenced on July 15. (AUSA Tyler Murray.)
CAROL FORTINO, 53, of Woodridge, who was a tax return preparer associated with AAF Accounting, Inc., on the city’s northwest side, pleaded guilty on March 7 to assisting in the filing of at least 42 false tax returns for at least 15 separate clients for tax years 2006 through 2009, and causing the government a tax loss of approximately $103,947. Fortino admitted that she fraudulently increased the amount of tax refunds for taxpayers by overstating and misrepresenting expenses, such as claiming inflated property taxes, gifts to charity, and unreimbursed business expenses, which were used to decrease their taxable income. Fortino faces a maximum sentence of three years in prison and a $250,000 fine and her plea agreement anticipates a federal sentencing guidelines range of 18 to 24 months in prison. She is scheduled to be sentenced on July 11. (AUSA Kaarina Salovaara.)
PAUL URDAN, 46, of Highland Park, a commissioned salesman, has pleaded not guilty after being indicted in February on three felony counts of filing false federal income tax returns and two misdemeanor counts of failing to file tax returns. According to the charges, Urdan opened two bank accounts in the name of a business partnership and directed his employer to make his commission checks payable at various times to his wife and the partnership. Between 2006 and 2008, Urdan received commission income, both directly and indirectly through his wife and the business partnership, totaling $332,253 in 2006; $466,173 in 2007; and $348,500 in 2008. Urdan allegedly filed false business partnership returns for 2006, 2007, and 2008. The charges also allege that he failed to file individual tax returns for 2007, when he received gross income of approximately $466,173, and for 2008, when he received gross income of approximately $348,500, the charges allege. (AUSA Christopher McFadden.)
TOWANA VIRAMONTES, 37, of McHenry, has pleaded not guilty after being indicted in January on 15 counts of making false claims for tax refunds in 2008 and 2009. Viramontes, who was the principal of a telemarketing business that operated under various names, including American Creative Solutions, Inc., Apple Leasing, Inc., and Leads 2 Guaranteed Loans, allegedly prepared false Forms W-2 that she provided to at least 15 individuals, some of whom worked for her business and some who did not. The charges allege that Viramontes caused these individuals to file false claims for income tax refunds, typically a few thousand dollars each, using the false W-2s that she provided and then to pay her a substantial portion of the tax refunds they obtained. (AUSA Dylan Smith.)
Assisting in the preparation of false tax returns or filing a false tax return carries a maximum sentence of three years in prison and a $250,000 fine on each count. Making a false claim upon the United States carries a maximum sentence of five years in prison and a $250,000 fine. Failing to file an income tax return, a misdemeanor, carries a maximum sentence of a year in prison and $100,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that criminal charges are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on March 27, 2013:
Arturo Deluna, 46, of Fort Wayne, Indiana, is charged in a three count Indictment with conspiracy to possess with intent to distribute cocaine, possession with intent to distribute cocaine, and use of communication facility in the conspiracy to possess and possess with intent to distribute cocaine, all occurring on or about May 4, 2010. These charges were filed as the result of a joint investigation conducted by the Allen County Police Department Vice and Narcotics Division and the FBI Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Edmond Man to Serve Year in Prison and Pay Nearly $920,000 in Restitution for Defrauding InvestorsRead the Press Release
Oklahoma City, Oklahoma – Today, GREGORY SCOT CONRADY, 52, of Edmond, Oklahoma, was sentenced by United States District Judge Timothy D. DeGuisti to serve 12 months and one day in prison for money laundering and wire fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Conrady was also sentenced to pay $919,150.74 in restitution to two victims, serve two years of supervised release after his release from prison, and perform 104 hours of community service.
According to court documents and information from court proceedings, in April of 2007 Conrady solicited financial backing from investors to purchase portfolios of distressed debts for pennies on the dollar and then attempted to collect those debts to make money. Conrady used debt brokers to locate debt portfolios for purchase, with the debts consisting primarily of promissory notes secured by mortgages on residential properties. Conrady formed Coltate Capital, LLC, and the investors invested over $10 million to carry out this enterprise.
From November of 2007 through April of 2010, Conrady defrauded the investors by reporting broker’s fees substantially higher than what he actually negotiated with the broker and diverting the excess funds to Conrady’s personal companies, Coltate Properties, LLC, and Silverstreak, LLC. Conrady’s fraudulent scheme also involved the misappropriation of individual mortgage payments that were mailed to Coltate Capital, LLC.
Conrady was indicted by a federal grand jury on July 17, 2012. He pled guilty to committing money laundering and mail fraud on August 29, 2012.
This case was investigated by the Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
District Woman Sentenced to 16 Years in PrisonRead the Press Release
On Charges in Two Stabbings, Including One That Killed a Man
-Attacks Took Place in Northeast Washington-WASHINGTON – Quindetta Cosby, 49, of Washington, D.C. was sentenced today to 16 years in prison for carrying out two stabbing attacks last year in Northeast Washington, including one that killed a man, U.S. Attorney Ronald C. Machen Jr. announced.
Cosby pled guilty in November 2012 to one count of voluntary manslaughter while armed and one count of felony assault with significant bodily injury. She was sentenced by the Honorable Thomas J. Motley. Upon completion of her prison term, Cosby will be placed on eight years of supervised release.
In the fatal attack, according to the government’s evidence, on Sept. 13, 2012, Cosby got into an argument at about 6:20 p.m. with the victim, Paul Morris, in the 2200 block of Fourth Street NE. Cosby’s friend also got involved in the argument, which escalated into a physical fight. Mr. Morris, 49, and Cosby’s friend threw punches at each other. Cosby joined the fight, which her friend was losing, and hit Mr. Morris. Mr. Morris struck Cosby, knocking her down.
Cosby then pulled out a knife and stabbed Mr. Morris in the left side of his upper torso. Mr. Morris fled into the 300 block of Bryant Street, NE, while dripping blood from the stab wound. Cosby chased Mr. Morris while screaming threats to kill him. When Mr. Morris retreated to a porch on the street, Cosby kept following him, threatened again to kill him, and stabbed him on the porch. Mr. Morris died shortly thereafter.
The other attack took place on July 16, 2012. In that incident, Cosby got into an argument with a woman in an apartment in the 600 block of Edgewood Street NE. The argument spilled into the hallway, where she pushed the victim to the floor. Cosby attacked the victim with a knife, resulting in a significant cut to the victim’s arm.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives and officers of the Criminal Investigations Division and the Fifth District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Bridget Fitzpatrick, Victim Witness Advocate Tamara Ince and Paralegal Specialist Marian Russell. Finally, U.S. Attorney Machen praised Assistant U.S. Attorney Shana Fulton, who prosecuted the case.
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District Man Sentenced to Six Years in PrisonRead the Press Release
On Charges in Armed Robbery and Shooting
-One of the Victims Shot Multiple Times, Yet Survived-WASHINGTON –Darius Joshua, 19, of Washington, D.C., was sentenced today to six years in prison on charges stemming from a 2011 shooting in the Congress Park community of Southeast Washington, announced U.S. Attorney Ronald C. Machen Jr.
Joshua pled guilty in January 2013 in the Superior Court of the District of Columbia to charges of aggravated assault, attempted robbery, and carrying a pistol without a license. He was sentenced by the Honorable William M. Jackson. Upon completion of his prison term, Joshua will be placed on three years of supervised release.
According to the government’s evidence, on June 21, 2011, at about 11 p.m., Joshua ambushed a man and a woman with a loaded handgun as the victims walked through a shortcut next to what used to be McGogney Elementary School in the 3400 block of Wheeler Road SE. He ordered the woman to the ground and put the gun to her head before robbing her and telling her to leave the scene. Joshua ordered the man to stay behind and then he shot him multiple times. The victim was rushed to a hospital for emergency surgery and survived the attack.
In announcing the sentence, U.S. Attorney Machen commended the efforts of the detectives of the Metropolitan Police Department’s Seventh District who investigated the case, as well as the members of the community whose cooperation led to the defendant’s prosecution. He also thanked those who worked on the case from the U.S. Attorney’s Office, including Jim Brennan, Tanya Via, Laverne Forrest, Debra Cannon, and Michael Hailey of the Victim Witness Assistance Unit; Paralegal Specialists D’Yvonne Key and Richard Cheatham, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the case.
13-118District Man Sentenced to 15 Months in PrisonRead the Press Release
For His Role in Northwest Washington Robbery
-Alert Citizen Helped Police Find the Defendant-WASHINGTON – Walter Little, 20, of Washington, D.C., was sentenced today to 15 months of incarceration for his role in a robbery last fall in Northwest Washington, announced U.S. Attorney Ronald C. Machen Jr.
Little pled guilty in January 2013 in the Superior Court of the District of Columbia to a charge of robbery. The Honorable A. Franklin Burgess, Jr. sentenced him to five years in prison, but suspended all but 15 months of the time on the condition that Little successfully complete four years of probation. Little also must pay $900 in restitution to the victim.
According to the government’s evidence, Little attacked a man at about 4:30 p.m. on Oct. 26, 2012, in the 4800 block of Ninth Street NW. He brandished a pistol and hit the victim with the weapon, causing the man to lose consciousness. Then he, along with two other males, robbed the man of his wallet containing between approximately $900 and $1000.
Six days after the robbery, a witness who had seen Little commit the crime saw him again at Ninth and Decatur Streets NW, and alerted the police. Once officers were on scene, the witness positively identified Little as the person who had the gun and committed the robbery.
After his arrest, Little admitted to taking part in the robbery, and taking $200 of the $900 stolen, but he maintained that he was not the person with the gun. No other arrests have been made in the case.
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 and Assistant U.S. Attorney Natalia Medina, who prosecuted the case.
13-121District Man Found Guilty of Robbery ChargeRead the Press Release
In 2012 Attack at Deanwood Metro Station
-Defendant Pointed a Gun in Victim’s Face Before Taking His Wallet-WASHINGTON – Zachary Pollard, 18, of Washington D.C., has been found guilty by a jury of robbery in an attack last year at the Deanwood Metro station in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Pollard was found guilty on April 4, 2013, following a trial in the Superior Court of the District of Columbia. The Honorable Heidi M. Pasichow scheduled sentencing for June 11, 2013.
According to the government’s evidence, Pollard and an unidentified accomplice approached the victim at about 8:30 a.m. on Nov. 18, 2012 near the Metro station, in the 4700 block of Polk Street NE. Pollard, standing in front of the victim, pulled out a gun and pointed it in the man’s face while the accomplice threw the victim to the ground. Pollard then rifled through the victim’s pockets and took the victim’s wallet, which contained credit cards and $11. The victim reported the crime to the station manager, who called Metro Transit Police.
Less than 10 minutes later and about a half mile from the Deanwood station, a Metro Transit Police officer spotted Pollard, who matched the description given for a police lookout. The officer stopped Pollard, who was eating a fast-food apple pie. Minutes later, as other officers arrived on the scene and without having been told what had been taken in the robbery or the reason why he had been stopped, Pollard spontaneously stated, “Man, I didn’t rob nobody for no $11.” Officers recovered $9 in cash from the defendant.
At the time of the crime, Pollard was free on personal recognizance while awaiting trial for unauthorized use of a motor vehicle and other charges. He was arrested in that case on Oct. 14, 2012. Pollard has pled not guilty in that matter and is awaiting trial later this month.
In announcing the verdict, U.S. Attorney Machen praised the work of the detective, officers, and mobile crime scene officers from the Metro Transit Police Department who investigated the case. He also acknowledged the efforts of those who worked on the matter for the U.S. Attorney’s Office, including Paralegal Specialists Antoinette Sakamsa and Theresa Nelson, and Victim Advocate Kristina Rose. Finally, he commended the work of Assistant U.S. Attorney Peter Lallas, who prosecuted the case.
13-119Deming, N.M., Man Sentenced to Federal Prison for Conspiring to Transport Illegal AliensRead the Press Release
ALBUQUERQUE – Steven Kasey Dupree, 30, of Deming, N.M., was sentenced this morning to 15 months in prison followed by three years of supervised release for his conviction for conspiracy to transport illegal aliens. Dupree’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Chief Patrol Agent Scott A. Luck, El Paso Sector, U.S. Border Patrol.
Dupree and co-conspirator Cynthia M. Espinoza, also of Deming, N.M., were arrested in Feb. 2012, on a criminal complaint charging them with conspiracy to transport illegal aliens. According to the complaint, in Feb. 2012, Dupree and Espinoza conspired with others to transport seven illegal aliens from Mexico to the United States. On Feb. 7, 2012, Border Patrol Agents went to Dupree’s residence in response to a call notifying authorities that illegal aliens were on the premises. On arrival, the Border Patrol Agents found three illegal aliens in the residence, including two who each reported paying an $1800 fee to be smuggled across the United States/Mexican border and transported to Albuquerque. The Agents also learned that
Dupree had departed earlier that day to transport four illegal aliens from his residence to Phoenix, Ariz. Dupree and Espinoza were arrested later that day in Deming.Dupree entered a guilty plea in May 2012, to a felony information charging him with conspiracy to transport illegal aliens. In his plea agreement, Dupree admitted conspiring with Espinoza and others to transport seven illegal aliens in Feb. 2012 for financial gain.
Dupree has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Espinoza pled guilty in April 2012 to two counts of conspiring to transport illegal aliens and was sentenced to three years of probation in July 2012.
This case was investigated by the Counter Organized Alien Smuggling Task Force (COAST) of the U.S. Customs and Border Protection at the Deming Border Patrol Station with assistance from the Luna County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Danville Business Owner Indicted for Wire Fraud and Identity TheftRead the Press Release
LEXINGTON, KY - The owner of a children’s fun and gaming center in Danville, KY., is accused of committing wire fraud and identity theft.
A federal grand jury in Lexington returned an indictment charging 49-year-old Paul Christopher Turner with seven counts of wire fraud and one count of aggravated identity theft.
According to the indictment, in July 2010, Turner, the owner and operator of Go Go Gorillas gaming center, attempted to obtain a loan to purchase equipment for his company. In seeking the loan, it is alleged that Turner falsely represented to the lending entity that one of his investors was willing to personally guarantee the loan. Turner allegedly offered the investor’s property as collateral for the loan without her knowledge.
The indictment further alleges that Turner forged the investor’s signature on loan and mortgage documents. Turner is also alleged to have forged the signature of a notary public on the documents.
The United States Attorney for the Eastern District of Kentucky, United States Postal Inspection Service, Kentucky State Police and the Commonwealth of Kentucky Department of Financial Institutions, Division of Securities, jointly made the announcement.
The investigation preceding the indictment was conducted by the United States Postal Inspection Service, the Kentucky State Police and the Department of Financial Institutions. The indictment was presented to the grand jury by Assistant U.S. Attorney Kenneth R. Taylor.
Turner is set to appear in court for arraignment on April 16 Wire fraud carries a maximum penalty of 20 years in prison and the Aggravated Identity Theft carries a mandatory sentence of two years in prison.
The indictment of a person by a grand jury is an accusation only, and that person is presumed innocent unless proven guilty.
Convicted Sex Offender Sentenced to Federal Prison for Failure to RegisterRead the Press Release
PROVIDENCE, R.I. – Denny Mendoza, 38, formerly of Providence, was sentenced today to 18 months in federal prison for failing to register as a sex offender, announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.At sentencing, U.S. District Court Judge John J. McConnell, Jr. also ordered Mendoza to serve 10 years of supervised release upon completion of his prison term. Mendoza pleaded guilty in October 2012 with violating the Sex Offender Registration and Notification Act (SORNA).
SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through a nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.
According to information presented to the court, Mendoza, who had registered as a sex offender in September 2010 while living in Providence, failed to notify authorities when he moved to locations in Fall River and Chelsea, Mass., beginning in May 2011.
Mendoza was arrested on November 8, 2011, in Chelsea, Mass., by members of the U.S. Marshals led Sex Offender Task Force (SOLEMN) and Chelsea detectives.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
Contact: 401-709-5357
[email protected]Chinese Business Executive Convicted for Illegal Trade in Rhino HornRead the Press Release
Shusen Wei, 45, a citizen of China, pleaded guilty today in Miami federal court to charges stemming from his involvement in the smuggling of a carved rhinoceros horn from the United States to China, announced Ignacia S. Moreno, Assistant Attorney General for the Environment & Natural Resources Division, Wifredo A, Ferrer, U.S. Attorney for the Southern District of Florida, and William C. Woody, Chief of the U.S. Fish & Wildlife Service’s Office of Law Enforcement.
Wei entered his guilty plea before U.S. District Judge Cecilia M. Altonaga, who scheduled sentencing for April 29, 2013. Wei faces a possible term in prison of up to 10 years on the single count filed against him, a fine of up to $250,000, and a term of supervised release of up to three years.
According to documents filed in Court, Wei traveled from China to Miami, Fla., in January 2013, to attend the Original Miami Beach Antique Show. While attending the show, he roomed with another Chinese national who was later arrested for smuggling of rhinoceros horns from the United States to China. In pleading guilty, Wei admitted that he paid commissions to this other individual to purchase objects made of rhino horn in the United States and smuggle them to China and that he knew that this individual was engaged in the smuggling of protected species of wildlife, including rhinoceros horn and elephant ivory. Wei also knew that this individual had paid bribes to Chinese customs officials to assist in his smuggling. Special Agents with the U.S. Fish & Wildlife Service learned that Wei had previously purchased libation cups made from carved rhinoceros horns from this same individual. One of those items was sold at a U.S. auction house for $242,500. This and other photographs of carved rhinoceros horns were found on Wei’s cell phone.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by 178 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to 668 in 2012.
Mr. Ferrer commended the investigative efforts of the Special Agents of the U.S. Fish & Wildlife Service and thanked the U.S. Attorneys Offices in the Eastern District of New York and the District of New Jersey for their assistance. The case is part of “Operation Crash” (named for the term used to describe a herd of rhinoceros) which is an ongoing multi-agency effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald and Richard A. Udell, a Senior Counsel with the Environmental Crimes Section of the U.S. Department of Justice.
Career Offender Sentenced to 13 Years for Trafficking Methamphetamine, Possession of A FirearmRead the Press Release
SAN JOSE - Jose Ezequiel Monroy was sentenced on April 3, 2013, to thirteen years in prison for distributing methamphetamine and being a felon in possession of a firearm, United States Attorney Melinda Haag announced.
Monroy pleaded guilty on January 9, 2013, to one count of possession with intent to distribute and distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1), and one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g). According to the plea agreement, Monroy admitted to selling methamphetamine, a Intratec TEC-DC9 pistol with thirty rounds of ammunition, a Winchester shotgun, a Norinco model MAK-90 rifle, a Charter Arms revolver, and a Mossberg shotgun to a person working undercover for the government.
"Criminals who traffic in drugs regularly carrying firearms to protect their illicit enterprise. These drugs traffickers are a threat to our community and should be held accountable," stated Joseph M. Riehl, Special Agent in Charge, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives.
Monroy, 61, of Salinas, California, a Mexican national with no legal status in the United States, was indicted by a federal grand jury on September 14, 2011. He was charged with three counts of possession with intent to distribute and distribution of methamphetamine, and four counts of being a felon in possession of a firearm.
The sentence was handed down by U.S. District Court Judge Lucy H. Koh. Monroy had three prior felony convictions at the time of his arrest, each for possessing narcotics with the intent to sell. Judge Koh found that due to Monroy’s prior felony drug trafficking convictions he was a career offender under the U.S. Sentencing Guidelines. Judge Koh also sentenced Montoy to a ten-year period of supervised release.
Dan Kaleba is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal tech Elise Etter. The prosecution is the result of a nearly two year investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bristol Man Admits Illegally Possessing FirearmsRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that WAYNE EVANGELISTA, also known as “Wayne Nance,” 34, of Bristol, pleaded guilty today before Senior United States District Judge Warren W. Eginton in Bridgeport to three counts of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, prior to March 2011, EVANGELISTA had been convicted of multiple felony offenses in Connecticut state court and federal court in Connecticut, including criminal possession of a firearm (twice), third degree burglary, second degree forgery, bank fraud, and both first and second degree larceny.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
In March 2011, EVANGELISTA convinced another individual, who had a valid firearms permit, that he was a Bail Enforcement Agent. In March and April 2011, EVANGELISTA persuaded the individual to purchase a .40 caliber pistol and a .380 caliber pistol on his behalf, and EVANGELISTA took possession of the firearms after they were purchased. Also in April 2011, EVANGELISTA possessed a 9mm pistol that he cleaned for the same individual who had purchased the other two firearms for him.
Judge Eginton has scheduled sentencing for June 28, 2013, at which time EVANGELISTA faces a maximum term of imprisonment of 10 years and a fine of up to $250,000 on each count.
EVANGELISTA has been detained since his arrest on March 15, 2012.
This matter has been investigated by the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Anacortes Nurse Pleads Guilty to Tampering with Narcotic Pain Medications at Hospice FacilityRead the Press Release
A 33-year-old nurse from Anacortes, Washington pleaded guilty today in U.S. District Court in Seattle to tampering with consumer products and acquiring a controlled substance by fraud or misrepresentation, announced U.S. Attorney Jenny A. Durkan. ERIN LINVOG, a former nurse at Fidalgo Care Center & Rosario Assisted Living, faces up to ten years in prison when sentenced by U.S. District Judge Richard A. Jones on July 12, 2013.
According to the facts admitted in the plea agreement, in June 2010, LINVOG began working at the Rosario Assisted Living Center, an elder care facility in Anacortes, Washington, that offers skilled nursing and hospice care to terminally ill patients. LINVOG became credentialed as a registered nurse in November 2011. Sometime in late 2011, LINVOG began stealing narcotics from the facility for her own use. Using her position and authority as a nurse, she requested and received orders for morphine from pharmacies on behalf of Rosario patients, but then diverted entire bottles of narcotics rather than properly logging them into the assigned medicine carts. Moreover, in multiple instances admitted in the plea agreement, LINVOG removed liquid morphine from medicine bottles for her own use, and replaced the missing morphine with tap water, before returning the tampered bottles back to the facility’s medicine carts, where they could have been, and at times were, administered to patients.
The morphine was intended to alleviate the pain of various elderly patients in end-of-life care. LINVOG’s conduct meant that patients near the end of their life were receiving inadequate amounts of medicine to treat their pain and discomfort, and that medical staff did not have a clear picture of the appropriate dosage – since the morphine on hand was diluted. The conduct created the risk that patients could be overdosed if treated with non-diluted medicine, as well as the risk they would suffer needlessly in their final days. LINVOG’s conduct was discovered by the facility in February 2012, which led to her termination shortly thereafter.
The case was investigated by the United States Food and Drug Administration, Office of Criminal Investigations, and the Anacortes Police Department. The case is being prosecuted by Assistant United States Attorneys Steven Masada and Jerrod Patterson.
Albany Man Pleads Guilty to $119,950 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Albany, Mo., man pleaded guilty in federal court today to defrauding an elderly Maryville, Mo., couple.
David J. McConkey, 42, of Albany, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs on Thursday, April 4, 2013, to a federal information that charges him with wire fraud.
By pleading guilty today, McConkey admitted that he defrauded a Maryville husband and wife in a scheme that lasted from April 2011 to April 2012. McConkey told the couple that he was aware of an incident involving their adult daughter that allegedly occurred approximately 28 years ago in the state of Iowa. McConkey told them that if they would pay him $119,950 he would keep their daughter from going to prison. This representation was false, and known by McConkey to be false. The Maryville couple gave McConkey a $119,950 cashier’s check, which he used for his own personal benefit.
Under federal statutes, McConkey is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by First Assistant U.S. Attorney David M. Ketchmark. It was investigated by the FBI.
Thursday 4 April 2013
Yahia Asad Sentenced for Conspiracy to Commit Money Laundering, Conspiracy to Defraud the Government with Respect to Claims, and Aggravated Identity TheftRead the Press Release
YAHIA ASAD, age 50, of Tallahassee, Florida, was sentenced yesterday by Chief United States District Judge Sarah S. Vance to 51 months imprisonment, announced U.S. Attorney Dana J. Boente. Additionally, ASAD was ordered to pay restitution in the amount of $379,310.
According to court documents, from January 2010 through March 2012, ASAD and others perpetrated a tax fraud scheme which involved filing false tax returns using the stolen identities of deceased or imprisoned persons, using inflated and erroneous financial information, causing a much larger refund than would be allowed legitimately which resulted in a significant loss to the government.
"This prosecution serves notice, especially during tax filing season, that we will aggressively prosecute tax fraud and identity theft,” said United States Attorney Boente. “Mr. Asad stole from the people of the United States and will be punished for that crime.”
“IRS-CI hopes that the sentencing of Yahia Asad serves as a warning to others that IRS and the U.S. Attorney’s Office takes money laundering and identity theft violations very seriously,” stated IRS Criminal Investigation Acting Special Agent in Charge, Damon Rowe. “We will continue to work with our law enforcement counterparts to vigorously pursue these investigations.”
“Criminal schemes such as this rob the government of revenue and also shortchange millions of law-abiding Americans who pay their taxes consistently and honestly,” said Raymond R. Parmer Jr., Special Agent in Charge of HSI New Orleans. "Anyone attempting to defraud the government should be on notice that HSI aggressively investigates these types of crimes and will seek prosecution when they’re discovered.” Parmer oversees a five-state area of operation to include Louisiana, Alabama, Arkansas, Mississippi and Tennessee.
This case was investigated by Special Agents of the U.S. Department of Homeland Security/Homeland Security Investigations and the Internal Revenue Service-Criminal Investigations and was prosecuted by Assistant U.S. Attorney Tracey N. Knight.
Woodlands Man Convicted of Using Fake CIA CredentialsRead the Press Release
HOUSTON - Paul Alan White, aka Jonathan Alan Davenport, 57, of The Woodlands, has entered a plea of guilty to two counts alleging he impersonated a public servant, United States Attorney Kenneth Magidson announced today. The plea was entered late yesterday before U.S. District Judge Ewing Werlein Jr.
According to the factual basis in support of the plea, White posed as a CIA agent to others at different times during 2011 and 2012 in order to obtain personal information from individuals and to have authorities give him privileges as well as official record documents.
During March 2011, White had convinced a co-worker that he worked with Special Ops within the CIA and that they had to fill out an application form for a security clearance with the CIA. White apparently obtained the form from the Internet. The co-worker completed the form, which included personal information, such as names of family members and friends, education, employment history and personal identification data such as a Social Security number, a Texas Driver’s license number and a U.S. passport number. As directed by White, the co-worker also ordered their own credit report and gave White a copy of their passport.
The next month, White also attempted to recruit the co-worker’s friend from the co-worker’s Facebook site, using an alias. White reported to be conducting a reference check and also tried to recruit them for a position with the CIA. At the request and demand of White, pretending to act as an agent under the authority of the CIA, the friend sent the security clearance form via Fed-Ex with their personal information on it along with a copies of their birth certificate, Social Security card, driver’s license and passport.
Also that month, White introduced himself to Texas Department of Public Safety troopers as an agent working for the CIA. White showed a badge and a credential thought to be from the CIA, and stated he had retired from CIA and was rehired to run “backgrounds” on people. White, while pretending to be an officer and employee of the United States, asked the trooper to run a criminal history check on his co-worker. White represented the request as an “official request” from a CIA officer. The trooper did so and provided the result.
Later, the CIA was contacted to conduct a check for any and all employment either directly or indirectly of White, aka Davenport. The CIA confirmed he did not work for the agency in any capacity. A search warrant was executed at White’s home revealed several false and fraudulent purported official U.S. government identifications and badges allegedly belonging to the CIA.
Judge Werlein has set sentencing for June 28, 2013, at which time he faces up to three years in federal prison and a possible $250,000 fine on each count. White will remain in custody pending that hearing.
The case was investigated by the FBI and Houston Police Department. Assistant U.S. Attorney (AUSA) Joe Porto is prosecuting the case. AUSA Ken Dies handled the hearing yesterday.
Winner Man Pleads Guilty to Firearm ViolationRead the Press Release
United States Attorney Brendan V. Johnson announced that Joshua Felix, age 39, of Winner, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 2, 2013 and pled guilty to Prohibited Person in Possession of a Firearm. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
Felix was convicted of domestic violence simple assault on June 15, 2004 in Tripp County. Having been convicted of a crime of domestic violence, Felix was prohibited from possessing firearms by operation of federal law. On March 15, 2012, law enforcement found Felix to be in possession of a rifle.
The investigation was conducted by the Tripp County Sheriff’s Office and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Timothy M. Maher.
A presentence investigation was ordered and a sentencing date was set for June 24, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Westmoreland County Man Pleads Guilty in Methamphetamine Distribution SchemeRead the Press Release
PITTSBURGH, Pa. - A Westmoreland County man pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Kevin Nicol, 57, of Harrison City, Pa., pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Nicol was involved in a conspiracy to distribute more than 50 grams of methamphetamine. The parties stipulated that 279.2 grams of "ice," also known as pure methamphetamine, were attributable to Nicol for purposes of the Sentencing Guidelines.
Judge Conti scheduled sentencing for 2:00 p.m. on July 12, 2013. The law provides for a maximum sentence of not less than 5 years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephen R. Kaufman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Nicol.
Washington, D.C., Financial Consultant Sentenced to Almost Six Years in Federal Prison for Defrauding Santa Fe BusinessRead the Press Release
ALBUQUERQUE –Daryl J. Hudson, III, 60, of Washington, D.C., was sentenced this afternoon to 70 months in federal prison followed by three years of supervised release. Hudson also was ordered to pay $1,875,000.00 in restitution to the victim of his crimes. Hudson’s sentencing was announced by U.S. Attorney Kenneth J. Gonzales and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
Hudson, a graduate of Georgetown University Law Center who previously served as Senior Counsel in the Enforcement Division of the U.S. Securities and Exchange Commission, was indicted in May 2012, and charged with seven counts of wire fraud. At the time Hudson was the Chairman and CEO of Hampden Kent Group, LLC (HKG), a Washington, D.C. based company that advertised its ability to obtain debt funding for start-up businesses in the green energy sector.
In Sept. 2012, a federal jury found Hudson guilty of all seven counts in the indictment after a nine-day trial. By its verdict, the jury concluded that Hudson defrauded Bluenergy Solarwind, Inc. (BSI), a Santa Fe-based developer of green energy-related equipment, of $85,000.00 in 2011 by falsely representing that he could secure debt funding to help the company grow. The evidence at trial established that, between July 12, 2011 and Aug. 19, 2011, Hudson designed and executed a scheme to defraud BSI by falsely representing that he had ready access to reliable sources of debt funding for BSI.
According to the trial testimony, in early 2011, the president of BSI began seeking approximately $80 million in debt funding so that BSI could manufacture new solar wind turbines. In an effort to obtain this financing, he attended networking events designed to connect entrepreneurs with funding sources, and eventually was referred to Hudson as a person who could locate funding for BSI. By mid-July 2011, the BSI president contacted Hudson to discuss the prospect of engaging HKG to locate and place $80 million dollars in debt funding for BSI. On July 12, 2011, Hudson provided the BSI president with a draft service agreement setting forth the terms on which HKG could be hired to locate debt funding for BSI. The service
agreement required BSI to pay a $300,000.00 retainer to HKG, with $150,000.00 to be paid up front and the balance to be paid upon receipt of a loan commitment from Hudson’s lender. Thereafter, on July 14, 2011, Hudson represented that, upon the signing of the service agreement, HKG would issue a loan commitment supported by treasuries that BSI could use to help obtain customer orders and equity funding.In mid-July 2011, the BSI president and Hudson agreed to enter into the service agreement with the understanding that BSI would pay approximately $80,000.00 of the first part of the retainer payment by July 20, 2011 and pay the remaining $70,000.00 within 30 days. Thereafter, BSI wired a total of $85,000.00 to HKG’s bank account in partial payment of HKG’s retainer fee, and Hudson and the president of BSI executed the service agreement on July 21, 2011. On July 22, 2011, Hudson transmitted two documents to BSI; a document entitled DLoan CommitmentD and a document entitled DSafekeeping Receipt.D The Safekeeping Receipt was a false and fraudulent document provided to BSI by Hudson as part of his scheme to defraud BSI.
Over the next two weeks, and as part of his scheme to defraud, Hudson caused the relationship with BSI to deteriorate and the BSI president notified Hudson that BSI could no longer work with HKG. When the president of BSI requested the return of a portion of the retainer fee, Hudson refused. On Aug. 11, 2011, after confirming that the Safekeeping Receipt provided by Hudson was a false and fraudulent document, BSI demanded the return of full $85,000.00 retainer. Hudson did not respond to BSI’s allegations regarding the falsity of the Safekeeping Receipt and instead claimed that BSI violated the service agreement by misusing the Safekeeping Receipt and demanding damages in the amount of $965,000.00.
Between July 12, 2011 and Aug. 19, 2011, Hudson used wire communications, specifically three telephone calls, three E-mails and a facsimile, on seven separate occasions in order to execute the scheme to defraud BSI. Each of these wire communications served as the basis for the seven counts of wire fraud in the indictment.This case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorneys John C. Anderson and Fred J. Federici, III.
Vancouver Washington Man Indicted for Trafficking in Counterfeit Vehicle AirbagsRead the Press Release
A 25 year-old Vancouver, Washington man was arrested earlier this week on a four count indictment charging him with trafficking in counterfeit goods, announced U.S. Attorney Jenny A. Durkan. VITALIY YAREMKIV, was arrested April 2, 2013 and will have a detention hearing today at 3:15 PM in U.S. District Court in Tacoma. Prosecutors allege that between June 2011 and June 2012, YAREMKIV sold more than 900 counterfeit vehicle airbags he had purchased from a source in China. If convicted, YAREMKIV faces up to ten years in prison and a $2 million fine. Trial in the case is scheduled for May 28, 2013 in front of U.S. District Judge Ronald B. Leighton.
“Counterfeit airbags shred the safety systems built into our cars, which could cause catastrophic results. Counterfeit airbags may fail to deploy in crashes, or deploy in a ball of fire,” said U.S. Attorney Jenny A. Durkan. “I commend the investigation by the FBI and Homeland Security Investigations to stem the flow of these counterfeits to get them out of our cars and marketplace.”
According to the indictment, YAREMKIV operated a business, Vital Auto Parts and Sales, out of his Vancouver home. He allegedly imported counterfeit Honda, Subaru and Toyota airbags from sources in China and elsewhere, and sold them over the internet representing them as the genuine product. YAREMKIV sold at least 964 of the counterfeit airbags via eBay with a sales total of $137,243. YAREMKIV sold individual Honda airbags for an asking price of $110. Investigators believe that many of the airbags are sold to independent garages who install them in vehicles believing they have purchased a genuine airbag.
“Counterfeit air bags are untested, unregulated, and extremely unsafe,” said Brad Bench, Special Agent in Charge of HSI Seattle. “While law enforcement is working to stem the flow of these dangerous products into the U.S., it’s important that consumers are aware of this danger. Automobile safety experts say it’s critical that vehicle owners work with their automotive dealers and repair professionals to ensure they use the appropriate, original equipment parts in the event they need to replace their air bag.”
“Every day, people entrust their lives to safety devices because they have been thoroughly researched, rigorously tested, and carefully constructed,” said FBI Assistant Special Agent in Charge Carlos L. Mojica. “Counterfeit devices do not carry that same guarantee, threatening the lives of unknowing users and violating their trust. The FBI and its partners will continue to seek and stop those like Mr. Yaremkiv, who irresponsibly put innocent lives at risk for their personal, financial gain.”
Information for consumers regarding counterfeit airbags is available here: http://www.safercar.gov/
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Norman Barbosa.
Two Women Plead Guilty to Filing False Federal Income Tax ReturnsRead the Press Release
Gemarian Douglas, 38, of Alorton, Illinois, and Anayd Bluiett, 26, of St. Louis, Missouri, each pled guilty in federal court to the offenses of Filing False Federal Income Tax Returns, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses each carry a maximum possible penalty of up to three years in prison. Sentencing is scheduled for July 18, 2013.
Anayd Bluiett admitted as part of the plea that she had false and fraudulent 2008, 2009 and 2010 federal income tax returns prepared by Prime Time Tax Services. Gemarian Douglas admitted that she had filed a false and fraudulent 2009 federal income tax return. Delaun Leflore and Carey Herron owned and operated Prime Time Tax Services (PTTS) located in Shiloh, Illinois. During the 2008-2011 filing seasons, Leflore and Herron used electronic software to prepare and file tax returns and they typically applied for refund anticipation loans. Leflore and Herron conspired together and with their clients to prepare false tax returns and claim fraudulent tax refunds. To accomplish this scheme, Leflore and Herron created false and fraudulent Schedule C income and expenses. The purpose of creating the false income was to maximize the earned income credit and other credits which generated large tax refunds. While meeting with their clients, Leflore and Herron discussed how to receive more money back by creating self-employment income. The clients agreed to participate in the scheme in order to receive a larger tax refund. Typically, the clients were referred to Leflore and Herron and visited the tax preparation business knowing they would file fraudulent tax returns. As part of the scheme, the clients were required to pay an extra cash fee to Leflore or Herron from the tax refund received. This amount was generally $500 in cash. This amount was in addition to the tax preparation fee which was automatically deducted from the tax refund by the bank processing the refund anticipation loan (RAL). Following the receipt of the RAL check, Leflore, Herron, or another representative of PTTS escorted the clients to a local check-cashing business, Belleville Quick Stop, located in Belleville, Illinois. After the client cashed the RAL check, the client immediately gave the $500 in cash to Leflore, Herron, or another representative of Prime Time. Leflore and Herron have already been prosecuted and are serving their prison sentences.
The Indictment is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud, call IRS Criminal Investigations at (618) 622-2160, or send the information to the Internal Revenue Service, Fresno, CA 93888.
Two Men Charged in Sex Trafficking CaseRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Daniel Tanck, 31, and Robert Palermo, 29, of Rochester, New York, were each charged with the felony of sex trafficking of a minor. Sex trafficking of a minor carries a mandatory minimum penalty of 10 years imprisonment and a maximum penalty of life imprisonment and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee stated that according to the complaint, a fourteen year old victim reported that Tanck and Palermo had placed an ad on Backpage.com for her to engage in prostitution activities. According to the fourteen year old victim, Tanck and Palermo had taken the pictures of her for the Backpage.com ad at their residence on Emerson Street in the City of Rochester and that the two of them posted the advertisement using Tanck’s computer. The victim alleged that both Tanck and Palermo knew that she was fourteen years of age.
The criminal complaint was the culmination of an investigation on the part of the FBI's Cyber Crimes Task Force, which includes the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, the Rochester Police Department under the direction of Chief James Sheppard, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota, and the Monroe County District Attorney's Office under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Two Former Roxbury Correctional Officers Plead Guiltyin Connection with Assault of an InmateRead the Press Release
Walter Scott Steele, a former correctional officer at Roxbury Correctional Institution (RCI), and Lanny Harris, a former correction sergeant at RCI in Hagerstown, Md., pleaded guilty today in relation to assaults against an inmate on March 9, 2008. Harris pleaded guilty to conspiring with other RCI officers to assault an inmate at the state prison on March 9, 2008. Steele pleaded guilty to conspiring with RCI officers to obstruct the investigation into an assault against an inmate on March 9, 2008, and to making a false statement to an FBI agent investigating the assault. With these pleas, five former RCI correctional officers have pleaded guilty and 10 others face charges.
According to court documents filed in connection with his guilty plea, Steele admitted that, during the midnight shift on March 8-9, 2008, he heard RCI officers discuss assaulting the inmate, identified in court documents only as “K.D.,” in retaliation for K.D.’s prior assault of another officer. Steele warned the group that they would get caught if they assaulted the inmate.
Additionally, according to court documents filed in connection with his guilty plea, Harris and other officers met at RCI during the midnight shift and agreed to assault K.D. in retaliation for a prior incident involving the inmate and another officer. Harris admitted that he and three other correctional officers then entered K.D.’s cell in order to assault inmate K.D., while a fourth officer watched. Officers then assaulted K.D. while Steele watched.
Steele admitted that he later learned that officers from the midnight shift were meeting at a McDonald’s restaurant to talk about the assault on inmate K.D. Steele acknowledged meeting Harris and other RCI officers who had been involved in the assault, and discussing what they were going to say to investigators. Steele agreed to tell investigators that he did not know about an assault on inmate K.D.
Steele admitted in court that he lied to federal investigators on Feb. 12, 2013, by falsely denying that he had discussed K.D. with other RCI officers from the midnight shift. Steele also acknowledged that he failed to tell federal investigators that he had seen other officers assault K.D.
“Mr. Harris admitted today that, as a supervisor, he conspired with other officers to assault an inmate in order to punish the inmate for hitting an officer. Mr. Steele, meanwhile, has admitted that, after he watched his fellow correctional officers use force to punish the inmate, he then agreed to help those officers cover up their misconduct,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who use their official position to abuse inmates or to cover up crimes committed by other officers.”
Steele faces a maximum penalty of 10 years in prison. Harris faces a maximum penalty of five years in prison. Sentencing for Steele is set for July 9, 2013, and sentencing for Harris is set for Aug. 2, 2013, both before U.S. District Judge James K. Bredar.
The investigation by the Frederick Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division of the Department of Justice, with the assistance of Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
Two Aliens Sentenced for Illegal ReentryRead the Press Release
JAIRO MAURICIO SAGASTUME-ALVARENGA, age 29, a citizen of Honduras, and WALTER ANDRES RAMIREZ, age 30, a citizen of El Salvador, were each sentenced today in federal court by U. S. District Judge Eldon E. Fallon, announced U.S. Attorney Dana Boente. SAGASTUME was sentenced to thirty-six (36) months imprisonment and RAMIREZ was sentenced to twenty (20) months imprisonment. In addition to the term of imprisonment, Judge Fallon ordered that SAGASTUME and RAMIREZ be placed on three (3) years of supervised release following their terms of imprisonment during which time the defendants will be under federal supervision and risk an additional term of imprisonment should they violate any terms of supervised release.
According to court documents, on November 1, 2012, SAGASTUME and RAMIREZ each pled guilty to separate one-count indictments admitting they were aliens who were previously removed and were knowingly and unlawfully found in the United States, in Jefferson Parish, Louisiana without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to their re-application for admission into the United States. Both defendants’ sentences were subject to enhancement based on previous aggravated felony convictions.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Three Sentenced to Federal Prison for Straw Purchasing Firearms Destined for MexicoRead the Press Release
In San Antonio, three individuals were sentenced to lengthy federal prison terms in connection with a scheme to traffic and straw purchase AK-47 assault–type firearms destined for Mexico stated United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Melvin D. King and Homeland Security Investigations (HSI) Special Agent in Charge Vincent Iglio.
This morning, United States District Judge Orlando Garcia sentenced the ringleader, 28–year-old Mexican National Jimmy Torres, to 15 years in federal prison after pleading guilty in November to one count of possession of a firearm by an individual with a domestic violence conviction, one count of possession of a firearm by an illegal alien and 31 counts of aiding and abetting the making of a false statement during the purchase of a firearm. Judge Garcia also sentenced Torres’ co-defendants--30–year-old Ramon Ernesto Armijo of San Antonio and 27-year-old Mathew Arteaga of San Antonio and--to 60 months and 50 months in federal prison, respectively, after pleading guilty to multiple counts of making a false statement during the purchase of a firearm. During today’s hearing, Judge Garcia also sentenced 25-year-old Juanita Arteaga and 39–year-old Virginia Ricarte-Jones each to two years probation after they pleaded guilty last September to making false statements during the purchase of a firearm.
By pleading guilty, the defendants admitted to participating in a scheme from November 2011 to January 2012 whereby approximately 40 AK-47 assault-type firearms were straw-purchased from several San Antonio area gun stores. Court documents reveal that the straw-purchased firearms were destined for Mexico.
Prior to today, 13 other individuals have received sentences ranging from probation to five years in federal prison in connection with this scheme.
This case was investigated by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) together with Homeland Security Investigations (HSI). Assistant United States Attorney Bettina J. Richardson is prosecuting this case on behalf of the government.Three Florida Men Indicted for Conspiracy to Illegally Transport Destructive Devices and Machine GunsRead the Press Release
JAIME JAUREGUI (age 34 of Orlando, FL), RUBEN JAUREGUI (age 24 of Dade City, FL), and FRANCISCO MALDONADO (age 46 of Dade City, FL), were charged in a two-count indictment by a Federal Grand Jury for their roles in a conspiracy to transport destructive devices (M-60 Grenades) and machine guns (AK-47 automatic assault rifles and Colt M-4 automatic assault rifles) in violation of Title 18, United States Code, Sections 371 and 922(a)(4), announced U.S. Attorney Dana J. Boente.
According to the indictment, JAIME JAUREGUI, RUBEN JAUREGUI, and FRANCISCO MALDONADO conspired with each other and others to transport firearms, which are deemed destructive devices and machineguns, including thirty M-60 Grenades, and sixty Colt M4 automatic assault rifles and fifty AK-47 automatic assault rifles from the Eastern District of Louisiana to Texas, Florida, and elsewhere. The conspiracy count alleges that on four occasions from January 2012 through March 21, 2013, JAIME JAUREGUI met with undercover agents in St. Tammany Parish to negotiate the purchase more than 100 fully automatic assault rifles, grenade launchers, grenades, and night vision goggles, some of which were destined for a Mexican drug trafficking cartel. JAIME JAUREGUI provided a cash deposit of approximately $46,000.00 during those meetings. JAIME JAUREGUI hired FRANCISCO MALDONADO, AND RUBEN JAUREGUI to assist him with transporting the weapons to the final destinations. None of the men have federal firearms or export licenses. JAIME JAUREGUI is also charged with one count of illegal possession of unregistered firearms, specifically, two Colt M4 automatic assault rifles.
If convicted of the conspiracy count, each defendant faces a maximum penalty of five (5) years imprisonment, a $250,000 fine, and a three (3) year term of supervised release. JAIME JAUREGUI faces additional penalties for the illegal firearms possession charge of up to ten (10) years imprisonment, a $250,000 fine, and a three (3) year term of supervised release.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by Special Agents of Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of U.S. Customs and Border Protection, the Louisiana State Police, and the St. Tammany Parish Sheriff’s Office. Prosecution is being handled by Special Assistant United States Attorney Robert Weir.
Thirty-Nine People Charged in Connection with Trafficking Drugs in Hancock CountyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
22 Arrested in Early Morning Sweep of Chester & Newell;
17 Suspects Still WantedNEW CUMBERLAND, WV - Thirty-nine individuals involved in the trafficking of heroin, cocaine, and methamphetamine and other drugs in Hancock County have been charged in federal and state court, according to U.S. Attorney William Ihlenfeld, II, Hancock County Prosecutor James Davis, and Hancock County Sheriff Ralph Fletcher.
An early morning arrest operation took place today during which 22 defendants were taken into custody. The sweep was spearheaded by the Hancock-Brooke-Weirton Drug Task Force and was supported by the Ohio Valley Drug Task Force of Wheeling, the Marshall County Drug Task Force, the Mountaineer Highway Interdiction Team, the Greater Harrison County (W.Va.) Drug Task Force, and the United States Marshals Service.
During the sweep additional quantities of illegal drugs were recovered and additional charges may be filed as a result of those discoveries.
The arrests dealt a major blow to the drug activity that has plagued the areas of Chester and Newell for the past year, and this investigation is one that Sheriff Fletcher has been focused upon since he took office in January. The leading to the charges became operational in September of 2012 and included extensive surveillance and many controlled purchases of narcotics.
“We’re fortunate to have such a talented and hard-working drug task force to serve the citizens of Hancock County,” said Sheriff Fletcher. “These men worked long hours to help to make the streets of Newell, Chester, and other communities in this county a safer place for everyone.”
“Hancock County struggles with the fact that our boundaries to the North, East and West are the Commonwealth of Pennsylvania and the State of Ohio,” said Prosecuting Attorney Jim Davis. “This makes the transport of controlled substantives relatively easy from Pittsburgh, Youngstown, Columbus, Cleveland, Detroit and even the New Jersey area. That’s why it takes a cooperative effort, such as the one that occurred in this investigation, to make a significant impact.”
“The Drug Enforcement Administration, working in partnership with the Hancock- Brooke-Weirton HIDTA Drug Task Force has brought a significant heroin and crack cocaine trafficking organization; operating in Newell and Chester, West Virginia to justice,” stated DEA Special Agent in Charge Karl C. Colder of the Washington Division Office. “This investigation demonstrates the continued commitment by DEA and the HIDTA Drug Task Force to impact drug trafficking organizations at their highest level.”
Nineteen of those involved were charged by a federal grand jury in Wheeling which returned three separate indictments with a total of ninety-four counts related to the distribution of heroin, methamphetamine, powder cocaine, crack cocaine, marijuana, oxycodone in the Hancock County area.
Of the thirty-nine individuals charged, six are from Chester, ten are from Newell, eight are from East Liverpool, Ohio, four are from New Cumberland; three are from Weirton; two are from New Brighton, Pennsylvania, one is from Aliquippa, Pennsylvania, one is from Georgetown, Pennsylvania, two are from Mckees Rocks, Pennsylvania, one is from Wellsburg, one is from Colliers and one is from Wellsville, Ohio.
FEDERAL CHARGES
The following individuals were indicted by the Wheeling federal grand jury earlier this week:
MICHAEL OGDEN ALLEN, 22 years old of Chester, West Virginia, was charged with seven felony counts related to the distribution of heroin and methamphetamine in Hancock County.
EDWARD LEON CROW, JR., of Newell, West Virginia, was charged with eight felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
BRIAN CUSTER, 30 years old of Newell, West Virginia, was charged with ten felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
SHAWN LEE DANVER a/k/a “SHAWN D,” 29 years old of East Liverpool, Ohio, was charged with two felony counts related to the distribution of cocaine base in Hancock County.
BRANDON DUNN, 28 years old of Chester, West Virginia, was charged with nineteen felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
JUSTIN GRAHAM, 30 years old of Newell, West Virginia, was charged with eight felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
KAREN GRAHAM, 41 years old of Newell, West Virginia, was charged with three felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
ANTONIO SCOTT FRAZIER a/k/a “ANTONIO SCOTT HARLIN” a/k/a “KOBE, 27 years old, was charged with six felony counts related to the distribution of cocaine base in Hancock County.
BRANDI LOU HISSOM, 37 years old of East Liverpool, Ohio, was charged with nine felony counts related to the distribution of cocaine base in Hancock County.
BRITTANY LUCINDA HISSOM, 18 years old of East Liverpool, Ohio, was charged with eight felony counts related to the distribution of cocaine base in Hancock County.
ANTONYO W. JOHNSON, 26 years old of East Liverpool, Ohio, was charged with eight felony counts related to the distribution of cocaine base in Hancock County.
NIKKI J. KOFFEL, 24 years old of East Liverpool, Ohio, was charged with five felony counts related to the distribution of cocaine base in Hancock County.
ELIZABETH KWOLEK, 20 years old of Chester, West Virginia, was charged with nine felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
LARISSA ANNE MARINER, 28 years old of Newell, West Virginia, was charged with six felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
RANDY ALLEN SAVORS, JR., 35 years old of East Liverpool,, Ohio, was charged with two felony counts related to the distribution of cocaine base in Hancock County.
KYLE ROBERT THORN, 27 years old of Chester, West Virginia, was charged with three felony counts relating to the distribution of heroin and methamphetamine in Hancock County.
DAVID WESLEY TREAD WAY, 54 years old of Newell, West Virginia, was charged with eight felony counts related to the distribution of cocaine base in Hancock County.
MALIK ALONSO WARE a/k/a “BLAKE,” 30 years old of New Brighton, Pennsylvania, was charged with ten felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
TONY WOLFE, 39 years old of East Liverpool, Ohio, was charged with eleven felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
STATE CHARGES
The following individuals have been charged in state court as part of the same investigation:
JOSHUA RYAN AYERS, 23 years old of Aliquippa, Pennsylvania, with Conspiracy to Deliver Controlled Substances, Delivery of a Controlled Substance; Transporting a Controlled Substance into the State; and, Delivery of a Counterfeit Controlled Substance.
ROSALYN GALLOWAY, 28 years old Newell, West Virginia, with Delivery of a
Controlled Substance.BRIAN HUMPHREYS, 33 years old of East Liverpool, Ohio, with Conspiracy to
Deliver Controlled Substances and Delivery of a Controlled Substance.SCOTT R. LAMB, 30 years old, of Chester, West Virginia, with Delivery of a
Controlled Substance.AMANDA M. MACKALL, 20 years old, of Georgetown, Pennsylvania, with Conspiracy to Deliver Controlled Substances, Delivery of a Controlled Substance; Transporting a Controlled Substance into the State; and, Delivery of a Counterfeit Controlled Substance.
CHRISTIAN D. PARR, 28 years old of Colliers, West Virginia, with Delivery of a
Controlled Substance.HEATHER WELLS, 32 years old of Chester, West Virginia, with Conspiracy to
Deliver Controlled Substances and Delivery of a Controlled Substance.DWAYNE WHITAKER, 25 years old of McKees Rocks, Pennsylvania, with Delivery of a Controlled Substance.
The following individuals were also charged in State Court as part of today’s operation: JAMES A. ACCONICA, JR., age 47, of Newell, West Virginia; JAMES A. ACCONICA, III a/k/a “JT,” age 26, of Weirton, West Virginia; COURTNEY MARIE BOYLES, age 23, of Weirton, West Virginia; ADAM SCOTT GRAHAM, age 26, of Newell, West Virginia, BONNIE GRAHAM-BUCKLEY, age 31, of New Cumberland, West Virginia; WILLIAM EMMIT HART, age 51, of New Cumberland, West Virginia, MYSTIC LEIGH HUGGINS, age 29, of Wellsville, Ohio; RICHARD ALAN MAXWELL, age 39, of New Cumberland, West Virginia, DUSTIN MITCHEL MCCOY, age 34, of New Cumberland, West Virginia; LUKE A. MORRIS, age 34, of East Liverpool, Ohio; CHRISTOPHER CARLTON NIXON, age 34, of Newell, West Virginia; JOHN ROBERT SPEARS, age 38, of Weirton, West Virginia; and, DAWYNE WHITAKER, age 25, of McKees Rocks, Pennsylvania.
Of those charged the following individuals have not yet been apprehended: MICHAEL OGDEN ALLEN
NIKKI J. KOFFEL
SHAWN LEE DANVER ANTONIO SCOTT HARLIN RANDY ALLEN SAVORS, JR. MALIK ALONSO WAREJAMES A. ACCONICA, JR. JAMES A. ACCONICA, III JOSHUA RYAN AYERS COURTNEY BOYLES SCOTT LAMB
AMANDA MARIE MACKALL DUSTIN MCCOY
CHRISTIAN D. PARR JOHN ROBERT SPEARS HEATHER ANN WELLS DAWYNE WHITAKERAll of those charged face prison sentences, or fines, or both. The United States is also seeking the forfeiture of money and property which constitute proceeds derived as a result of such offenses.
The charges contained in the federal indictment and state warrants are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Statement from U.S. Attorney Robert E. O’Neill Regarding Resignation PlansRead the Press Release
I would like to thank President Obama, U.S. Attorney General Holder, Senators Nelson and Rubio, and former Senators Martinez and LeMieux for providing me the opportunity to serve as the United States Attorney for the Middle District of Florida. I appreciate the confidence which they exhibited in me and I hope and trust that I, and this office, have lived up to their expectations. I am very thankful for having been given this wonderful opportunity.
It has been both an honor and a privilege to serve as the United States Attorney in the Middle District of Florida. This is a great office. Statistically, the Middle District of Florida is one of the busiest and most productive districts in the nation. It ranks at or near the top of the 94 districts in virtually every category maintained by the United States Department of Justice. Yet, while serving the second largest population in the nation, it is the 16th largest office in terms of personnel. The significant accomplishments of this district are the result of the collective efforts of the hard working men and women who comprise this United States Attorney’s Office. They are dedicated public servants who believe in pursuing justice and the rule of law. In an era in which it has become fashionable to impugn the public employee, the individuals in this office work long hours, often without recompense, simply because they believe in the mission of the office.
I was offered an extremely unique opportunity to join the Freeh Group International Solutions, LLC. It was an offer that I could not pass upon. The Freeh Group is an global risk management firm serving in the areas of business integrity and compliance, safety and security, and investigations and due diligence. The firm was founded by Louis J. Freeh, former Director of the Federal Bureau of Investigation and former United States District Judge.
In order to accept that position, I have to resign from a position that is extraordinarily rewarding. My resignation is effective this summer. I will continue in my present position for the next few months to ensure an orderly transition for this office and for my successor.
State Employee Pleads Guilty to $158,000 Fraud Scheme to Pay Refunds to Springfield BusinessRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an employee of the Missouri Department of Revenue pleaded guilty in federal court today to fraudulently paying $158,000 in refunds to a Springfield business owner, who has also pleaded guilty to his role in the scheme, and others.
Roselly Delores Otto, 31, of Meta, Mo., waived her right to a grand jury and pleaded guilty today before U.S. Magistrate Judge David P. Rush to a federal information that charges her with two counts of mail fraud. James Edward Bruhn, 46, of Springfield, waived his right to a grand jury and pleaded guilty on March 13, 2013, before U.S. District Judge Richard E. Dorr to a federal information that charges him with one count of mail fraud.
Otto and Bruhn evenly split $127,905 in proceeds from the fraud scheme between April 2011 and September 2012. Otto also received approximately $30,000 in a separate, but similar, fraud scheme between January 2009 and September 2012. Otto worked for the Taxation Division of the Missouri Department of Revenue. Bruhn operated a lawn care business known as EB Lawncare in Springfield.
As a part of his business, Bruhn would submit motor fuel refund claims to the Taxation Division of the Missouri Department of Revenue. Motor fuel that is used for certain non-highway purposes is exempt from the state fuel tax and a refund may be claimed by the consumer. Part of Otto’s responsibilities included approving or declining motor fuel refund claims received by her division.
Bruhn admitted that he submitted refund documents knowing that his claims that fuel was purchased and that the fuel was used for statutorily exempt purposes was entirely false and fraudulent. Otto admitted that she received the fraudulent refund claims from Bruhn, and even though she knew that the information provided in the documents was entirely false, approved Bruhn’s refund claims. Otto caused refund checks to be mailed to Bruhn. Bruhn cashed his refund checks and mailed a portion of the proceeds back to Otto. The Missouri Department of Revenue detected the fraud, alerted law enforcement authorities and cooperated in the investigation.
Under federal statutes, Otto is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. Bruhn is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Inspection Service and the Missouri Department of Revenue Compliance and Investigation Bureau.St. Francis Man Sentenced for Controlled Substance Charge and for Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man convicted of Simple Possession of a Controlled Substance and for Failure to Appear, charged in two separate criminal cases, was sentenced on April 2, 2013 by U.S. District Judge Roberto A. Lange.
Antoine Kills In Water, age 30, was sentenced to 6 months in custody, a $1,000 fine, and a $25 special assessment to the Victim Assistance Fund for the Simple Possession of a Controlled Substance conviction. He was also sentenced to 6 months and 1 day in custody, 1 year supervised release, and a $100 special assessment to the Victim Assistance Fund for the Failure to Appear conviction.
For the Controlled Substance charge, Kills In Water was indicted by a federal grand jury on July 18, 2012 and pled guilty to the charge on January 10, 2013. For the Failure to Appear charge, he was indicted on December 11, 2012 and pled guilty on January 10, 2013.
The Controlled Substance conviction stems from an incident that took place between April 29, 2011 and May 11, 2011, when Kills In Water used and possessed methamphetamine and marijuana. The Failure to Appear conviction is the result of his not appearing at his jury trial for the drug case.
The Controlled Substance investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. The Failure to Appear investigation was conducted by the U.S. Marshal’s Service.Both cases were prosecuted by Assistant U.S. Attorney Timothy M. Maher.
Kills In Water was remanded to the custody of the U.S. Marshal.
Shrewsbury Man Pleads Guilty to Sex TourismRead the Press Release
BOSTON – A Shrewsbury man pleaded guilty today in U.S. District Court in Worcester to traveling to the Dominican Republic with the intent to engage in illicit sexual conduct.
Conrad Gallant, 61, previously of Winchendon and most recently of Shrewsbury, pleaded guilty before U.S. District Court Judge Timothy S. Hillman to engaging in illicit sexual conduct in foreign places and travel with intent to engage in illicit sexual conduct. Under the terms of the plea agreement, the Court must sentence Gallant to between 60 and 168 months in prison, 10 years of supervised release, restitution and forfeiture. Sentencing is scheduled for June 26, 2013.
According to the agreed upon statement of facts, Gallant traveled to the Dominican Republic in February 2011 and had sexual relations in his apartment with a 14-year-old girl he knew was underage. Gallant returned to the Dominican Republic four times over the course of a year to engage in illicit sexual relations with the underage victim, giving her money, a laptop computer, and jewelry during that time. Additionally, on these trips, Gallant took photographs of the victim while she was nude and while engaging in sexual acts, and took those images back to the United States.In February 2012, the National Tourist Police of the Dominican Republic learned that Gallant had engaged in sexual relations with the then 15-year-old victim. The victim was forensically interviewed by a medical professional and she confirmed that Gallant engaged in sex with her. She provided agents with a cell phone containing images of Gallant naked, including an image of Gallant and the victim engaged in sexual activity. The victim disclosed that Gallant had promised her certain items and money to take her mother to the doctor, but never gave them to her. Additionally, the victim stated that Gallant forced her to have sex with him a couple times when she was unwilling. The victim also informed investigators that Gallant asked her to bring him other minor girls to have sex with and this happened on two occasions. Gallant paid both of these minors $100.
In March 2012, a federal search warrant was executed at Gallant’s Shrewsbury address. During the search, agents recovered images of Gallant and the victim together engaged in sexually explicit conduct, including an image of the victim performing oral sex on Gallant and a close-up image of the victim’s genitalia displayed in a sexually explicit manner.
A second federal search warrant was executed on the items seized from Gallant’s apartment in the Dominican Republic and revealed a laptop containing numerous images of child pornography, including the images mentioned above of Gallant engaging the sexual conduct with the victim.United States Attorney Carmen M. Ortiz; Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in Boston; Worcester County District Attorney Joseph Early; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Chief James Hester, Jr. of the Shrewsbury Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Michael I. Yoon, Stacy Dawson Belf, and Eve Piemonte Stacey of Ortiz's Major Crimes Unit.
The U.S. Attorney’s Office would like to extend its appreciation to HSI’s attaché in Santo Domingo, the Dominican Tourist Police (Politur), Dominican prosecutors in Higuey and Santo Domingo, Dominican Migration and HSI's Santo Domingo Transnational Criminal Investigative Unit members for their assistance and cooperation.
Settlement with Tyson Foods to Address Multiple Releases of Anhydrous AmmoniaRead the Press Release
The U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a Clean Air Act (CAA) settlement with Tyson Foods Inc. and several of its affiliate corporations to address threats of accidental chemical releases after anhydrous ammonia was released during incidents at facilities in Kansas, Missouri, Iowa and Nebraska, resulting in multiple injuries, property damage and one fatality.
“This settlement will protect workers at Tyson facilities throughout Kansas, Iowa, Missouri and Nebraska that use anhydrous ammonia, and make the communities surrounding these 23 facilities safer. It will also provide emergency response equipment for first responders to chemical releases,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The requirements of this agreement, which include comprehensive third party audits, will help mitigate the impact of releases of anhydrous ammonia by ensuring compliance with the Risk Management Program under the Clean Air Act.
“Exposure to anhydrous ammonia can cause serious health issues, and in extreme cases, even death,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement with Tyson Foods will ensure the proper safety practices are in place in the future to protect employees, first responders, and communities located near processing facilities from the threat of dangerous chemical releases.”
Under the terms of the consent decree, Tyson is required to conduct third-party audits of its current compliance with the CAA’s Risk Management Program requirements at all 23 facilities in Kansas, Iowa, Missouri and Nebraska. The third-party auditors must have expertise in ammonia refrigeration systems, be recognized experts in risk management program compliance and be approved by EPA. Tyson must correct any violations discovered in the audits and certify the completion of the work. Tyson has also agreed to test certain piping used in its refrigeration systems at the 23 facilities to identify any problems that may have led to accidental releases and to replace any non-compliant piping.
Under the consent decree, Tyson will pay a $3.95 million penalty. Tyson has also agreed to implement a supplemental environmental project to purchase $300,000 worth of emergency response equipment for first responders in communities with significant environmental justice concerns in which Tyson operates facilities. The equipment will assist responses to emergencies involving chemicals that are regulated pursuant to the CAA Risk Management Program, including anhydrous ammonia.
Anhydrous ammonia is a poisonous gas and considered an extremely hazardous substance under the CAA. Exposure to vapors can cause temporary blindness and eye damage, as well as irritation of the skin, mouth, throat, respiratory tract and mucous membranes. Prolonged exposure to anhydrous ammonia vapor at high concentrations can lead to serious lung damage and even death.
The Clean Air Act’s Risk Management Program requires owners and operators of facilities that exceed a threshold quantity of a regulated substance, such as anhydrous ammonia, to develop and implement a risk management plan that must be submitted to EPA. The 23 Tyson facilities named in the consent decree are subject to the regulations because the refrigeration systems at the facilities each contain more than 10,000 pounds of anhydrous ammonia. The facilities have a combined inventory of more than 1.7 million pounds of anhydrous ammonia.
Tyson Foods Inc. is headquartered in Springdale, Ark. and is the world’s largest processor and marketer of chicken, beef and pork.
The proposed settlement lodged in the U.S. District Court for the Eastern District of Missouri, is subject to a 30-day public comment period and final court approval. A copy of the consent decree is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.
More information: www.epa.gov/enforcement/waste/cases/tysonfoodsinc.html
Service Members to Receive $39 Million for Violations of the Servicemembers Civil Relief ActRead the Press Release
The Justice Department announced today that under its 2011 settlements with BAC Home Loans Servicing LP, a subsidiary of Bank of America Corporation, and Saxon Mortgage Servicing Inc., a subsidiary of Morgan Stanley, 316 service members whose homes were unlawfully foreclosed upon between 2006 and 2010 are due to receive over $39 million in monetary relief for alleged violations of the Servicemembers Civil Relief Act (SCRA).
Under the first settlement, Bank of America is required to pay over $36.8 million to service members whose homes were unlawfully foreclosed upon between 2006 and 2010. Each service member will receive a minimum of $116,785, plus compensation for any equity lost with interest. Bank of America has already begun compensating 142 service members whose homes were illegally foreclosed on between 2006 and the middle of 2009. Under the same agreement, Bank of America agreed to provide information about its foreclosures from mid-2009 through the end of 2010. As a result of that review, Bank of America will now pay 155 service members upon whose homes it illegally foreclosed. Borrowers receiving payment under this settlement may receive an additional payment under a settlement between Bank of America and federal banking regulators -- the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System -- if the foreclosure occurred in 2009 or 2010. Payments provided under the federal banking regulators’ settlement will bring the total amount received by eligible borrowers to $125,000 plus equity where applicable.
Under the second settlement, Saxon Mortgage Services Inc. is in the process of paying out over $2.5 million to 19 service members whose homes were unlawfully foreclosed upon between 2006 and 2010. Each service member will receive a minimum of $130,555.56, plus compensation for any equity lost with interest.
Bank of America is one of five mortgage servicers that entered into a settlement, known as the National Mortgage Settlement, with the Justice Department in 2012 regarding its foreclosure practices. Pursuant to the National Mortgage Settlement, the Justice Department is overseeing ongoing audits of the five largest mortgage servicers in the country (Wells Fargo, Bank of America, Citibank, JP Morgan Chase and Ally) to identify violations of the SCRA’s foreclosure provisions between Jan. 1, 2006 and April 4, 2012 and its 6 percent interest rate cap provision between Jan. 1, 2008 and April 4, 2012. The $36.8 million currently being paid by Bank of America to 297 service members is pursuant to the 2011 consent decree (which predated the National Mortgage Settlement), and represents only the non-judicial foreclosures conducted by Bank of America. As the National Mortgage Settlement audits progress, the Justice Department will be requiring payments by Bank of America for judicial foreclosure and interest rate violations, and by the other four servicers for judicial and non-judicial foreclosure and interest rate violations. Under the National Mortgage Settlement most service members wrongly foreclosed on will receive $125,000 plus any lost equity. For the foreclosure violations that took place in 2009 and 2010, the Justice Department is coordinating closely with the Office of the Comptroller and the Federal Reserve Board, which are conducting separate reviews of 12 mortgage servicers under the Independent Foreclosure Review process.
“Our men and women in the military should not have to worry about a bank foreclosing on their home while they bravely serve our country,” said Eric Halperin, Special Counsel for Fair Lending in the Civil Rights Division. “The Justice Department will vigorously enforce the laws that protect service members while they do their difficult and necessary work.”
The SCRA provides critical additional consumer and other protections to the men and women serving our nation in the military. For more information on the Justice Department’s work to enforce service members’ rights, please visit www.servicemembers.gov.
Sentences for April 02- 03, 2013Read the Press Release
Shea Breshears, 20, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 3, 2013, for conspiracy to interfere with interstate commerce by means of robbery and aiding and abetting. Breshears was arrested in Casper, Wyoming. She received time served, to be followed by three years of supervised release, with the first six months on home confinement. Breshears was also ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Brian Kountz, 22, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 3, 2013, for conspiracy to interfere with interstate commerce by means of robbery and aiding and abetting. Kountz was arrested in Casper, Wyoming. He received 80 months of imprisonment, to run concurrent with a state sentence. In addition, he was ordered to pay a $400.00 fine and a $100.00 special assessment and will be placed on three years of supervised release upon release from custody. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Nicholas Shane Bath, of Fremont County, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 2, 2013, for credit union and bank robbery. Bath appeared pursuant to a Writ. He received five years of supervised probation, with the first four months to be served on house arrest. Bath was further ordered to pay $24,170.00 in restitution and a $200.00 special assessment. This case was investigated by the Shoshone and Riverton Police Departments, the Fremont County Sheriff’s Office and the Federal Bureau of Investigation.
Seabrook Man Pleads Guilty to Paying Bribe to IRS AgentRead the Press Release
CONCORD, NH –Hoang O. Hoang, 45, of Seabrook, pled guilty in United States District Court for the District of New Hampshire to charges that he paid a bribe to an agent of the Internal Revenue Service, announced United States Attorney John P. Kacavas.
On December 9, 2011, Hoang met with an IRS Revenue Agent, who was conducting an audit of a nail salon business in Newington owned by Hoang. Over the course of multiple conversations, Hoang offered to pay the agent personally, not the IRS, $4,000 if the agent could reduce the business’ tax liability. On January 12, 2012, Hoang met with and paid the IRS agent $2,295 for the purpose of corruptly influencing the agent in the exercise of his official duties, specifically the outcome of the agent’s IRS audit of Hoang’s business.
Hoang is facing a maximum prison sentence of 15 years, 3 years of supervised release and a $250,000 fine. He is scheduled to be sentenced on July 10, 2013.
The case was investigated by the office of the United States Treasury Inspector General for Tax Administration (TIGTA) and is being prosecuted by Assistant United States Attorney Arnold H. Huftalen.
San Fernando Valley Man Sentenced to 15 Months in Federal Prison for Trafficking in Counterfeit, Chinese-Made PharmaceuticalsRead the Press Release
LOS ANGELES – A North Hollywood man was sentenced today to 15 months in federal prison in relation to a plot in which he possessed, and had the intent to distribute for profit, more than 2,000 Chinese-made counterfeit pharmaceutical pills.
Edward Alarcon, 44, was sentenced this morning by United States District Judge George H. Wu. In addition to the prison term, Judge Wu ordered Alarcon to pay $1,000 restitution to Eli Lilly and Company, the manufacturer of Cialis, and $1,000 to Purdue Pharma L.P., the manufacturer of OxyContin.
After a three-day jury trial in January, Alarcon was convicted on two counts of trafficking in counterfeit OxyContin and Cialis. The evidence presented at trial showed that Alarcon had purchased the bogus OxyContin from Bo Jiang, a Chinese national and the alleged head of a counterfeit drug ring. Alarcon had offered to sell counterfeit Cialis, Viagra and Levitra on Craigslist.
“The size, shape and color of the pills, as well as the markings on them and their packaging were identical to and substantially indistinguishable from genuine marks in use and registered for the brand-name pills on the principal register of the United States Patent and Trademark Office,” prosecutors wrote in a sentencing memo filed in Alarcon’s case. “The use of these marks was likely to cause confusion, to cause mistake, or to deceive because the pills and their packaging appeared to be the legitimate, brand-name products but were not. Moreover, the chemical composition of the pills was not the same as that of the legitimate products.”
Jiang, whose last known residence was in New Zealand, was taken into custody in January 2011 by New Zealand law enforcement authorities after being named with Alarcon in a federal grand jury indictment. However, Jiang was released on bond and became a fugitive.
On November 10, 2009, federal agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) found approximately 237 counterfeit OxyContin pills and approximately 1,592 counterfeit Cialis pills in Alarcon’s car and house. Investigators also found hundreds of other counterfeit pills, including Viagra and Levitra (at trial, Alarcon was acquitted on charges related to the Viagra and Levitra). Only a month before the federal search, Alarcon had been convicted in state court on counterfeit drug charges for selling bogus Cialis to an undercover Los Angeles Police Department officer.
In a related case, Francis Ortiz Gonzalez, who worked as a “dropshipper” for Jiang in the United States, was sentenced by Judge Wu in January to two years in federal prison and was ordered to pay $324,530 in restitution for trafficking counterfeit pharmaceuticals (see: http://www.justice.gov/usao/cac/Pressroom/2013/012.html).
The cases against Alarcon, Jiang and Ortiz Gonzalez are the result of investigations by HSI; the Food and Drug Administration, Office of Criminal Investigations; and the United States Postal Inspection Service.
Release No. 13-048
Rosebud Woman Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Patricia Pacheco, age 23, of Rosebud, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 2, 2013 and pled guilty to Count II of the Indictment that charged her with Possession with Intent to Distribute a Controlled Substance. The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both; at least 2 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charge stems from an incident on March 21, 2012 wherein Pacheco’s vehicle and residence were searched. Controlled substances and drug paraphernalia were found.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Pacheco was remanded to the custody of the U.S. Marshal Service pending sentencing, which has been set for June 24, 2013.
Rosebud Man Pleads Guilty to Interstate Transportation of Stolen VehicleRead the Press Release
United States Attorney Brendan V. Johnson announced that Alec Arapahoe, age 20, of Rosebud, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 2, 2013 and pled guilty to Interstate Transportation of a Stolen Motor Vehicle. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on July 3, 2011 when Arapahoe stole a pickup truck from Colorado and drove the vehicle from Colorado to South Dakota and onto the Rosebud Sioux Indian Reservation.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Timothy M. Maher.
A presentence investigation was ordered and a sentencing date was set for June 24, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Rhode Island Businessman Pleads Guilty to Attempted Tax EvasionRead the Press Release
PROVIDENCE, R.I. – Richard Scialo, 58, owner and operator of Personal Touch, a Providence based home and business cleaning service, pleaded guilty in federal court in Providence today to attempting to evade the payment of more than $180,000 in federal taxes by underreporting taxable income he claimed was cash “gifts” from some of his clients for whom he provided cleaning services.
According to information presented to the court, despite being warned during a routine IRS audit in 2008 that all income generated by his business was taxable, including cash “gifts” provided by clients for services rendered by his company, Scialo failed to accurately report income generated by his business through tax year 2009. A further investigation by IRS agents revealed that Scialo failed to accurately report his business’ taxable income for tax years 2004 – 2009, and that he failed to pay $181,417 in federal taxes.
Scialo’s guilty plea to one count of attempted tax evasion was announced by United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation.
Scialo is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on July 19, 2013. Attempted tax evasion is punishable by up to five years in federal prison; 3 years supervised release; and, a fine of $250,000. According to a plea agreement filed in this matter, Scialo has agreed to pay restitution to the IRS in the amount of $181,417.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by Internal Revenue Service, Criminal Investigation
Contact: 401-709-5357
[email protected]Raleigh County Pill Addict Admits to Illegally Possessing A .45 Caliber PistolRead the Press Release
BECKLEY, W.Va. – A Raleigh County man who admitted to having an addiction to prescription painkillers pleaded guilty today in federal court to illegal possession of a firearm, announced United States Attorney Booth Goodwin. James David Morris, 34, of Eccles, W.Va., entered a guilty plea to being an unlawful drug user in possession of a firearm. Morris admitted that he knowingly possessed a .45 caliber pistol near Harper, Raleigh County on March 28, 2012. Morris further admitted that at the time he possessed the firearm, he was an unlawful user of and addicted to the powerful prescription painkiller oxycodone.
Morris faces up to 10 years in prison and a $250,000 fine when he is sentenced on August 1, 2013 by United States District Judge Irene C. Berger.
The West Virginia State Police and the FBI conducted the investigation. Assistant United States Attorney John File is in charge of the prosecution.
This case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
This case is also being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Quincy Man Convicted of Credit Card SkimmingRead the Press Release
BOSTON – A Quincy man was convicted today of credit card fraud and aggravated identity theft in connection with his use of stolen credit card numbers to purchase more than $64,000 in cigarettes and other items.
Yek Doug Wong, 50, pleaded guilty before U.S. District Judge George A. O’Toole to using counterfeit access devices, possession of device-making equipment, and six counts of aggravated identity theft. For the charge of using counterfeit access devices, the statutory maximum penalty is 10 years in prison, followed by three years of supervised release and a $250,000 fine; for the charge of possession of device-making equipment, the statutory maximum penalty is 15 years in prison, followed by three years of supervised release and $250,000 fine; for the charges of aggravated identity theft, the statute mandates two years in prison. Sentencing is scheduled for July 16, 2013.
In October 2011, the Braintree, Brockton and Holbrook Police Departments received reports from numerous people who identified fraudulent activity on their credit card accounts, even though all of the victims still possessed their actual cards. Law enforcement collected surveillance video from many of the locations where the purchases had been made as well as receipts from suspect transactions. The surveillance videos showed a man, later identified as Wong, making the purchases and then driving off. Ultimately, one clerk noted the license plate of the car which led to Wong and a search of his residence. The search resulted in the seizure of, among other things, more than 1,170 embossed and blank Visa, MasterCard and American Express cards, three credit card skimming devices, a card reader and encoding device, two credit card embossing machines, various pieces of computer equipment, 42 cartons of cigarettes, 22 bottles of rice wine, and $16,900 in cash. Officers also seized two safe deposit box keys which led to the seizure of an additional $4,250 in cash.
United States Attorney Carmen M. Ortiz; Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service; Chief Russell W. Jenkins of the Braintree Police Department; Chief Emanuel Gomes of the Brockton Police Department; Chief William D. Marbel, Jr. of the Holbrook Police Department; and Chief Paul Keenan of the Quincy Police Department, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Philadelphia Woman Charged Is Fourth Defendant in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
Dontaya S. Devore, 38, of Philadelphia, was charged today by Information with participating in a mortgage fraud conspiracy involving more than 100 Philadelphia properties and more than $20 million in fraudulent loan proceeds, announced United States Attorney Zane David Memeger. Devore is charged with conspiracy to commit loan and wire fraud, false statement in connection with Federal Housing Administration loan, and loan fraud. The information also seeks the criminal forfeiture of over $467,000 from Devore.
Devore is the fourth defendant charged in this district with participating in a massive mortgage fraud conspiracy that operated between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia involving KREW Settlement Services, a Philadelphia real estate settlement company that is alleged to have been at the center of the conspiracy. Devore is alleged to have directly participated in several fraudulent loan applications by purchasing properties in her name based on the submission of false loan applications and other false documents.
The other three co-conspirators charged in this district with participating in the same mortgage fraud conspiracy involving KREW are Willie G. Manley Jr., Eric Ponder, and Rashika J. Moon. According to the information, co-conspirator Willie G. Manley, charged elsewhere, was an accountant who created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns, which were submitted to lenders. Co-conspirator Eric Ponder, charged elsewhere, is alleged to have held himself out as a real estate developer and helped cause the submission of numerous fraudulent loan applications that resulted in mortgages being unwittingly issued by various banks by, making false statements on loan applications in his own name and helping secure mortgages in the names of others by recruiting “straw buyers” whose identity and fraudulent information was used to obtain the loans. Ponder is also alleged to have submitted false invoices for construction work never performed on the properties in order to justify payments to him from the settlement proceeds of loans in the names of the straw buyers. The information also alleges that another co-conspirator, Rashika J. Moon, had the legal authority to sign checks from KREW’s bank account and directly participated in numerous fraudulent loan applications by purchasing properties in her name based on the submission of false loan applications and other false documents, or by later “selling” many of those properties to “straw buyers” whose identities and fraudulent information were used to obtain other loans.
The conspiracy also included grossly inflated appraisals, false title insurance policies, false receipts for home repairs that were never performed, and straw buyers who knowingly allowed their names and identities to be used to purchase the properties and defraud the banks.
If convicted, Devore faces a maximum possible sentence 37 years imprisonment, 5 years supervised release, a fine of $1.5 million or twice the value of the property involved in the transactions, and a $300 special assessmentThe case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
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PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with Pizza Hut RobberyRead the Press Release
Jamal Craig, 43, of Philadelphia, Pennsylvania was charged by Indictment today with one count of Hobbs Act Robbery, and one count of brandishing, using and carrying a firearm during a crime of violence, announced United States Attorney Zane David Memeger. According to the indictment, defendant robbed the Pizza Hut, located at 2530 Aramingo Avenue, Philadelphia, PA on January 25, 2013.
If convicted, defendant faces a mandatory minimum of seven years in prison with a maximum possible sentence of life, consecutive to any other sentence, five years of supervised release, a $500,000 fine, restitution and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
This case is part of Project Safe Neighborhoods, a federal initiative designed to identify and prosecute firearms offenders in federal court, where the defendant is likely to receive a substantial sentence upon conviction.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Owner of Brotherly Love Ambulance Charged in $2 Million Health Care Fraud SchemeRead the Press Release
PHILADELPHIA - Feda Kuran, 37, of Philadelphia, PA, pleaded guilty today to a health care fraud scheme that involved billing Medicare for ambulance services that were not medically necessary, that were not actually provided, or that were induced by illegal kickbacks. During this health care fraud scheme, the defendant also gave and received illegal kickbacks. As a result, the Medicare program paid approximately $2,015,712 for the fraudulent bills. Kuran pleaded guilty to one count of Health Care Fraud and one count of violating the Anti-Kickback Statute. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for July 24, 2013. Kuran faces a maximum possible sentence of 15 years in prison, three years of supervised release, a $250,000 fine, a $200 special assessment, and restitution to Medicare. In addition, the defendant has agreed to forfeiture and a money judgment against her for more than $2 million.
As documents filed in connection with the plea revealed, in July 2010, the defendant began operating Brotherly Love Ambulance, Inc. with a co-schemer. Kuran, or others acting at her direction, transported patients by ambulance when those patients could have been transported safely by other means and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. Not only were those patients able to be safely transported by means other than ambulance, but also many of the patients were observed walking to and from ambulances. The defendant and others acting on behalf of Brotherly Love Ambulance also caused bills to be submitted to Medicare for ambulance services for patients who were transported by Brotherly Love employees in personal vehicles or who drove themselves or took public transportation to their destinations. In addition, the defendant and other employees paid kickbacks to some patients to induce them to allow Brotherly Love Ambulance, Inc. to transport them. Brotherly Love paid other patients so that the ambulance company could use those patients’ information to bill for transportation that Brotherly Love Ambulance never actually provided. The defendant also agreed that she received kickbacks from other ambulance companies to refer patients to the other ambulance companies.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Matthew J.D. Hogan and Paul W. Kaufman.
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1An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525