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Thursday 28 March 2013
Justice Department Reaches Settlement with Forsyth County, North Carolina Sheriff to Resolve Employment Rights Claim of a North Carolina Army National Guard SoldierRead the Press Release
The Justice Department announced today that it reached an agreement with Forsyth County, N.C., and Sheriff William T. Schatzman of Forsyth County to resolve allegations that they violated the employment rights of North Carolina Army National Guard soldier Michael Russell under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
The Justice Department’s complaint alleged that Sheriff Schatzman and Forsyth County violated USERRA by terminating Russell’s employment with the Forsyth County Sheriff’s Office without cause and without notice within one year after his reemployment following his return from active military duty. Russell, an Iraq war veteran, had worked as a deputy sheriff and sergeant deputy sheriff with the Forsyth County Sheriff’s Office since 1989. In February 2010, Russell completed a one-year deployment to Iraq with the North Carolina Army National Guard, and returned to his position with Forsyth County as a sergeant deputy sheriff. On Nov. 29, 2010, less than one year following Russell’s reinstatement to his sergeant deputy sheriff position, Sheriff Schatzman and Forsyth County discharged Russell from his employment without cause. According to the Justice Department’s complaint, Russell’s employment as a deputy sheriff was terminated because of Sheriff Schatzman’s belief that Russell had supported the election campaign of another candidate for Forsyth County Sheriff, Dave Griffith. However, Russell did not support Griffith’s campaign for Forsyth County Sheriff and his termination was therefore without cause.
USERRA prohibits employers from discriminating against service members with respect to employment opportunities based on their past, current or future uniformed service obligations. USERRA also provides service members such as Russell special protection from discharge from their civilian employment after returning from uniformed service, such as a deployment lasting more than 180 days. Under USERRA, individuals who have served over 180 days may not be discharged from their civilian jobs within one year of their return from military service, except for cause
Under the terms of the agreement, which was filed as a Consent Decree in the U.S. District Court for the Middle District of North Carolina, Schatzman and Forsyth County have agreed to pay $96,000 in lost wages to Russell. Schatzman and Forsyth County have also agreed to provide Russell with an employment reference letter that accurately reflects the content of his performance evaluations prior to his termination.
“USERRA affords military members who leave their civilian careers behind for significant periods of time to serve our country certain protections against unjust terminations,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “It is important that veterans have the opportunity to readjust to civilian life and their careers free from worry about termination without cause.”
The Justice Department initiated the lawsuit after Russell filed a complaint with the Labor Department’s Veterans’ Employment and Training Service, which investigated the matter and determined that the complaint had merit. This case was handled by the Employment Litigation Section of the Civil Rights Division.
Additional information about USERRA can be found on the Justice Department websites www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as the Labor Department website www.dol.gov/vets/programs/userra/main.htm.
Related Materials:
Forsyth Consent Decree
Justice Department Reaches Settlement with Forsyth County, North Carolina Sheriff to Resolve Employment Rights Claim of A North Carolina Army National Guard SoldierRead the Press Release
WASHINGTON – The Justice Department announced today that it reached an agreement with Forsyth County, N.C., and Sheriff William T. Schatzman of Forsyth County to resolve allegations that they violated the employment rights of North Carolina Army National Guard soldier Michael Russell under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
The Justice Department’s complaint alleged that Sheriff Schatzman and Forsyth County violated USERRA by terminating Russell’s employment with the Forsyth County Sheriff’s Office without cause and without notice within one year after his reemployment following his return from active military duty. Russell, an Iraq war veteran, had worked as a Deputy Sheriff and Sergeant Deputy Sheriff with the Forsyth County Sheriff’s Office since 1989. In February 2010, Russell completed a one-year deployment to Iraq with the North Carolina Army National Guard, and returned to his position with Forsyth County as a Sergeant Deputy Sheriff. On Nov. 29, 2010, less than one year following Russell’s reinstatement to his Sergeant Deputy Sheriff position, Sheriff Schatzman and Forsyth County discharged Russell from his employment without cause. According to the Justice Department’s complaint, Russell’s employment as a Deputy Sheriff was terminated because of Sheriff Schatzman’s belief that Russell had supported the election campaign of another candidate for Forsyth County Sheriff, Dave Griffith. However, Russell did not support Griffith’s campaign for Forsyth County Sheriff and his termination was therefore without cause.
USERRA prohibits employers from discriminating against service members with respect to employment opportunities based on their past, current or future uniformed service obligations. USERRA also provides servicemembers such as Russell special protection from discharge from their civilian employment after returning from uniformed service, such as a deployment lasting more than 180 days. Under USERRA, individuals who have served over 180 days may not be discharged from their civilian jobs within one year of their return from military service, except for cause.
Under the terms of the agreement, which was filed as a Consent Decree in the U.S. District Court for the Middle District of North Carolina, Schatzman and Forsyth County have agreed to pay $96,000 in lost wages to Russell. Schatzman and Forsyth County have also agreed to provide Russell with an employment reference letter that accurately reflects the content of his performance evaluations prior to his termination.
“USERRA affords military members who leave their civilian careers behind for significant periods of time to serve our country certain protections against unjust terminations,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “It is important that veterans have the opportunity to readjust to civilian life and their careers free from worry about termination without cause.”
The Justice Department initiated the lawsuit after Russell filed a complaint with the Labor Department’s Veterans’ Employment and Training Service, which investigated the matter and determined that the complaint had merit. This case was handled by the Employment Litigation Section of the Civil Rights Division.
Additional information about USERRA can be found on the Justice Department websites www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as the Labor Department website www.dol.gov/vets/programs/userra/main.htm.
###Jury Convicts Pasadena, Texas Man in $11 Million Investment Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 58-year-old Pasadena, Texas man has been found guilty of investment fraud charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
A federal jury needed just six minutes to convict Gary Lynn McDuff of conspiring to defraud investors of over $11 million in connection with an investment fraud scheme and laundering the proceeds. The verdict was handed down on Mar. 27, 2013, following a two-day trial before U.S. District Judge Richard A. Schell. McDuff’s co-conspirators, Gary Lancaster, 61, of Oregon, and Robert Reese, deceased, of Carmel, CA, previously pleaded guilty and were sentenced to federal prison for their roles in the scheme.
According to information presented in court, McDuff and Lancaster agreed to create the Lancorp Investment Fund, to draft a prospectus for the Fund, and to solicit investments from individuals across the United States. While McDuff controlled the operation, Lancaster agreed to serve as the “front” since McDuff could not possess a securities license or sell securities because of a past felony conviction. McDuff recruited Reese to also sell the investment, despite the fact that Reese had been barred by the State of California from selling securities based on past fraudulent conduct. McDuff, Lancaster, and Reese made numerous false representations to their investors in order to induce payments, including representations that the Fund would only invest in A+ or A1 rated bonds, that the principal of each investment would be insured and never at risk, and that Lancaster had experience operating this type of investment. McDuff, Lancaster, and Reese never disclosed McDuff’s felony conviction or Reese’s securities ban. McDuff then laundered the criminal proceeds in order to promote the operation of the fraudulent scheme.
McDuff faces up to 20 years in federal prison on each count of conviction. A sentencing date has not been set.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorneys Shamoil T. Shipchandler and Camelia Lopez.
Jacksonville Man Indicted on Federal Charge of Production of Child PornographyRead the Press Release
Jacksonville, Florida - U.S. Attorney Robert E. O'Neill announces the return of an indictment charging James Daniel Kasper (29, Jacksonville) with production of child pornography. If convicted, Kasper faces a mandatory minimum penalty of 15 years, and up to 30 years in federal prison. Kasper was arrested on March 20, 2013, on a criminal complaint, and ordered detained by United States Magistrate Judge Joel B. Toomey after a hearing on March 25, 2013.
According to the criminal complaint, in February 2013, the Tennessee Bureau of Investigation and the Federal Bureau of Investigation were investigating individuals engaged in trading child pornography. The investigation revealed the exchange of e-mails with attached images and videos of minors engaged in sexually explicit conduct. Specifically, agents determined that on February 4, 2013, an individual using a particular e-mail account had sent images depicting child pornography to another person. Further investigation determined that this e-mail account and the Internet Protocol (IP) address used to send the e-mails resolved back to Kasper’s Jacksonville residence. On March 20, 2013, a federal search warrant was executed at Kasper’s apartment. During an interview, Kasper indicated, among other things, that while babysitting a minor several months prior, he used his smart phone to photograph the minor child’s genitalia. He then uploaded the images to a particular internet website and sent the pictures via e-mail.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation, Tennessee Bureau of Investigation, Florida Department of Law Enforcement, Jacksonville Sheriff’s Office, National Center for Missing and Exploited Children, and the Florida Department of Children and Families. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Indiana Man Sentenced for Defrauding IowansRead the Press Release
An Indiana man who defrauded Iowa investors and an Iowa business was sentenced on March 27, 2013, to more than eight years in federal prison.
Lowell Gene “Bob” Hancher, age 59, from Sheridan, Indiana, received the prison term after an October 26, 2012, guilty plea to one count of wire fraud and one count of securities fraud.
In a plea agreement, Hancher admitted that, between about April 2005 and January 2010, he fraudulently obtained money from investors that was supposed to be invested in connection with a public stock offering. Some of the investors lived in northern Iowa. The purported stock offering was for Scott Contracting, Inc.; a privately-held utilities, asphalt and general contracting firm based in Henderson, Colorado. Hancher misappropriated a portion of the investors’ funds rather than investing the funds as promised.
Also in the plea agreement, Hancher admitted that, between about September 2009 and January 2010, he defrauded Cycle Country Accessories Corporation (Cycle Country); a publically-traded Nevada corporation with headquarters in Spencer, Iowa. Cycle Country designed and manufactured accessories for all-terrain vehicles and golf carts. Hancher was the chairman of Cycle Country’s board of directors. Hancher abused his board position to cause Cycle Country to give Hancher over $500,000 under the guise of a program to take Cycle Country private through a stock buyback. Hancher misappropriated the vast majority of the money provided for the buyback.
Hancher was sentenced in Cedar Rapids by United States District Court Judge Mark W. Bennett. Hancher was sentenced to 97 months’ imprisonment. A special assessment of $200 was imposed, and he was ordered to make $3,139,232.00 in restitution to the victims of his offenses. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Hancher was released on the bond previously set and is to surrender to federal authorities on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Federal Bureau of Investigation in cooperation with the Chicago Regional Office of the Securities and Exchange Commission.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4090 MWB.
Illegal Alien Convicted of Assault of A Federal AgentRead the Press Release
LAREDO, Texas – Jose Alberto Izquierdo-Gonzalez, 26, an undocumented Mexican alien living in Laredo, has pleaded guilty to using a motor vehicle to assault a Border Patrol agent and to smuggling aliens, United States Attorney Kenneth Magidson announced today.
According to court records and testimony presented this morning before U.S. Magistrate Judge J. Scott Hacker, Izquierdo was seen loading persons onto his Ford F-250 truck on Jan. 8, 2013, near the Rancho Viejo Subdivision in Laredo. Agents observed the truck speed away from the riverbanks after the agents’ vehicles approached. After a short pursuit through a residential area which included the truck traveling on residential sidewalks and knocking down a stop sign, Izquierdo eventually lost control and stopped facing the agents’ vehicles.
With persons still in the bed of the pickup truck, Izquierdo rammed the Border Patrol vehicles, injuring one of the agents. He then sped away until he lost control again and crashed into a nearby ditch. Miraculously, the persons in the truck bed managed to remain in the truck, but were treated for injuries. Izquierdo was apprehended almost immediately by the agents after abandoning his truck and the passengers. Two passengers were identified as aliens illegally in the United States who said they had paid smugglers to get a ride from Izquierdo.
At today’s hearing, Izquierdo denied knowing there were persons in the bed of his truck, claiming he had just picked up his girlfriend and one other person and was giving them a ride.
Izquierdo will remain in custody pending his sentencing to be set at a later date. At that time, he faces up to 20 years for using a dangerous weapon, a Ford F-250 in this case, to assault a federal officer. For smuggling an alien illegally in the United States, he also faces a maximum 10-year term of federal imprisonment. Both crimes also carry up to a possible $250,000 fine.
The matter was investigated by the FBI and Homeland Security Investigations with the assistance of Border Patrol, Laredo Police Department and the Webb County Sheriff’s Department. Assistant United States Attorney Homero Ramirez prosecuted the case.
Idaho Home Builder Sentenced for Tax EvasionRead the Press Release
Justin D. Schoenauer, 41, also known as Corey J. Schoenauer, a resident of Twin Falls County, Idaho, was sentenced late yesterday in U.S. District Court for the District of Idaho to 27 months in prison for income tax evasion. Schoenauer was also sentenced to three years of supervised release and ordered to pay $429,436 in restitution. Schoenauer was indicted in February 2012 and pleaded guilty to the offense on Oct. 30, 2012.
According to court documents, Schoenauer was a general contractor who, for the past 10 years, operated a sole proprietorship called Patagonia Construction, a business engaged primarily in building homes. Schoenauer admitted that during tax years 2005 through 2008, he concealed Patagonia’s business receipts. Schoenauer further admitted that he directed some customers to make checks payable to him personally, rather than to Patagonia, then ensured that those checks were not deposited into Patagonia’s main bank account. When having tax returns prepared, Schoenauer falsely told his return preparer that all of his business receipts were deposited into the main Patagonia bank account, thereby concealing Patagonia’s gross receipts and causing the preparation and filing of false tax returns. Schoenauer paid the Internal Revenue Service (IRS) $35,000 at sentencing, which will be applied to his outstanding tax liability.
“When a business owner cheats on his taxes, he gains an unfair advantage over honest businesses and cheats all honest taxpayers,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “This sentence shows that we will hold such criminals accountable.”
“Paying income tax is a solemn obligation of citizenship,” said U.S. Attorney for the District of Idaho Wendy J. Olson. “Integrity in business transactions required to be reported to the federal government is essential to the proper functioning of our economy. Those who hide income, evade taxes and launder profits undermine our democracy. This sentence sends a strong message that those who seek to avoid their tax responsibilities will be properly punished.”
“The license to run a business is not a license to evade paying taxes,” said Richard Weber, Chief, IRS Criminal Investigation. “Mr. Schoenauer’s misconduct, concealing business receipts and having checks made payable to himself, is offensive to all honest business owners. IRS Criminal Investigation continues to protect the U.S. tax system by investigating and bringing to justice individuals who violate tax laws.”
Assistant Attorney General Keneally and U.S. Attorney Olson commended the efforts of special agents from IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Michael J. Romano and Mark L. Williams, who prosecuted the case.
Idaho Falls Man Pleads Guilty to Possessing A Sawed-off ShotgunRead the Press Release
POCATELLO – Timothy Scott Murphy, 24, of Idaho Falls, Idaho, pleaded guilty today in United States District Court to possession of an unregistered firearm, U.S. Attorney Wendy J. Olson announced.
In court today, Murphy pleaded guilty to the indictment filed on May 22, 2012, charging him with one count of receipt or possession of an unregistered firearm. According to court records, on February 21, 2012, Idaho Falls Police officers received reports that Murphy was in possession of a sawed-off shotgun. Officers located Murphy at a house in Idaho Falls. Murphy left the house carrying a sawed-off shotgun, but when he saw the officers he retreated back into the house. Other occupants of the house were evacuated. After a four-hour standoff, Murphy surrendered. The sawed-off shotgun was located in a bathroom inside the house. According to the indictment, the barrel length of the Maverick 12-gauge shotgun was approximately 16 inches; the minimum legal length is 18 inches. The government is seeking forfeiture of the firearm.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for June 17, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Idaho Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Houston Woman Convicted in Debt Relief ScamRead the Press Release
HOUSTON – Savannah Rae Williams, 25, of Houston, has been convicted of wire fraud in relation to a debt relief scheme operating throughout the area, United States Attorney Kenneth Magidson announced today. Set for trial next week, Williams entered a plea this morning.
Her co-defendant, Nathaniel Chilo aka Nathaniel O’Neil, 24, also of Houston, previously pleaded guilty for his part in the scheme. Chilo operated debt relief businesses in the Houston area under several different names including, but not limited to, Universal Restoration and C & N Recovery. Both Chilo and Williams have admitted they fraudulently represented that settlements has been arranged for an individual in Georgia, but then used that money for their own benefit.
On or about Sept. 16, 2011, a letter was sent to an individual in Georgia that falsely representing a settlement had been reached in the amount of $32,541.56 with one of the person’s creditors. As a result, the individual’s wife then wired monies to cover the settlement, but neither Chilo nor Williams ever paid the creditor.
A second email was sent the next month which indicated a settlement on another account in the amount of $35,409.18. That settlement was also fraudulent, but thinking it was a legitimate, the victim again wired the monies.
Williams and Chilo never arranged the settlements and never paid the creditors, but used the monies for their own benefit. They have both admitted they fraudulently received $67,950.74.
Both Williams and Chilo face up to 20 years in prison and a possible $250,000 fine at their respective sentencing hearings on Aug. 2 and June 27, 2013. Chilo is currently in custody pending that hearing, while Williams was permitted to remain free on bond.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.
Horizon City Businesswoman Admits to Participating in Scheme to Misuse Escrowed Mortgage and Tax MoniesRead the Press Release
In El Paso this morning, 59-year-old Lisolette Day “Di Di” Lofton and her stepson, 49-year-old James Douglas Lofton, owners of Southwest Escrow in Horizon City, pleaded guilty to federal charges in connection with the embezzlement of over $1.2 million in escrowed tax monies from more than 400 customers, announced United States Attorney Robert Pitman and FBI Special Agent In Charge Mark Morgan.
On October 4, 2009, Southwest Escrow, a contracted third party collection service for mortgages of owner financed properties, closed without any notice to its customers. In November 2009, the FBI began an investigation after receiving a complaint that the defendants and Southwest Escrow had failed to make tax payments on various properties between 2007 and 2009 and that they had failed to forward principal and interest payments collected the last week they were in business.
Appearing before United States Magistrate Judge Anne T. Berton , Di Di Lofton pleaded guilty to one count of wire fraud; James Lofton, one count of misprision of felony. By pleading guilty, Di Di Lofton admitted that from 2007 to 2009, she provided short term loans, including wiring approximately $225,000, using Southwest Escrow monies to two financially struggling companies to which she also served as a bookkeeper: S-Diego, a Mexican cattle company, and Comprehensive Coding Solutions (CCE), a medical coding company in Arizona. According to court records, the companies were able to pay some of the money back to Southwest Escrow, however in 2007, it became apparent that Di Di Lofton had loaned out more of Southwest Escrow’s money than it had available to pay the property taxes of its customers. James Lofton admitted that in 2007, he became aware of Di Di’s actions and assisted in the concealment.
Di Di Lofton remains in custody and James Lofton is on bond. pending sentencing. Di Di Lofton faces up to 20 years in federal prison; James Lofton, up to three years in federal prison. Sentencing has yet to be scheduled.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Adrian Gallegos is prosecuting this case on behalf of the Government.Honeywell Resins and Chemicals to Pay $3 Million Penalty, Upgrade Air Pollution Controls at Hopewell, Va., PlantRead the Press Release
PHILADELPHIA – Honeywell Resins and Chemicals LLC has agreed to pay a $3 million civil penalty for alleged Clean Air Act violations at its Hopewell, Va., plant, and improve the facility’s air pollution control equipment and processes, the Justice Department and the U.S. Environmental Protection Agency (EPA) announced today.
The proposed consent decree resolves violations of federal and state air pollution regulations at the Hopewell plant, the world’s largest single-site producer of caprolactam used in the production of nylon, and ammonium sulfate used for fertilizer. According to EPA and the Virginia Department of Environmental Quality, the facility violated Clean Air Act limits on emissions of nitrogen oxide (NOx), benzene and other volatile organic compounds (VOCs) and particulate matter. The plant also allegedly failed to comply with requirements to upgrade air pollution control equipment, to detect and repair leaks of hazardous air pollutants, and to develop safeguards on benzene waste.
In addition to the $3 million civil penalty, Honeywell has agreed to reduce harmful air pollutants, install selective catalytic reduction at four production trains at the facility, conduct a third-party benzene waste operations audit, and implement an enhanced leak detection and repair program at the facility. Honeywell will also perform a mitigation project valued at approximately $1 million at the facility. The settlement reduces annual emissions of NOx by about 6,260 tons, and cuts annual emissions of benzene, other VOCs and hazardous air pollutants by 100 tons. The estimated cost for injunctive relief to address these emissions will be approximately $66 million dollars. The civil penalty will be split evenly between Virginia and the United States.
As part of the settlement, Honeywell did not admit liability for the violations, but has certified that it is now in compliance with applicable Clean Air Act regulations. The proposed consent decree is subject to a 30 day public comment period and final court approval. For more information, see http://www.justice.gov/enrd/ConsentDecrees/Honeywell_Consent_Decree_Lodged.PDF.Historic Verdict in Environmental Crime Case as Tonawada Coke and Manager Found Guilty of Violating the Clean Air Act and Resource Conservation and Recovery ActRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul Jr. and Assistant Attorney General Ignacia S. Moreno, of the Environment and Natural Resources Division of the U.S. Department of Justice, announced today that a federal jury in Buffalo has convicted the Tonawanda Coke Corporation of 11 counts of violating the Clean Air Act and three counts of violating the Resource Conservation and Recovery Act.
In addition, Tonawanda Coke Environmental Control Manager, Mark L. Kamholz, 65, of West Seneca, N.Y., was found guilty of 11 counts of violating the Clean Air Act, one count of obstruction of justice and three counts of violating the Resource Conservation and Recovery Act.
The charges carry a maximum combined penalty up to 75 years in prison and fines in excess of $200 million.
According to Assistant U.S. Attorney Aaron J. Mango and Senior Trial Attorney Rocky Piaggione, who handled the prosecution of the case, the offenses related to the release of coke oven gas containing benzene into the air through an unreported pressure relief valve. In addition, a coke-quenching tower was operated without baffles, a pollution control device required by TCC’s Title V Clean Air Act permit designed to reduce the particulate matter that is released into the air during coke quenches.
In addition, prior to an inspection conducted by the U.S. Environmental Protection Agency in April of 2009, defendant Kamholz told another TCC employee to conceal the fact that the unreported pressure relief valve, during normal operations, emitted coke oven gas directly into the air, in violation of the TCC’s operating permit.
The defendants also stored, treated and disposed of hazardous waste without a permit to do so, in violation of the Resource Conservation and Recovery Act. AUSA Mango and Senior Trial Attorney Piaggione stated that these offenses related to TCC’s practice of mixing its coal tar sludge, a listed hazardous waste that is toxic for benzene, on the ground in violation of hazardous waste regulations.
“Protecting the health and safety of our residents is one of the most paramount responsibilities of this office,” said U.S. Attorney Hochul. “Citizens of this community are entitled to breathe clean air and drink clean water. From the evidence of this case, where literally hundreds of tons of coke oven gas containing benzene was released into the atmosphere and significant quantities of hazardous waste containing benzene were left out in the open, it would be hard to imagine a more callous disregard for the health and well being of the citizens of this community. Considering the nominal costs required to install safety devices and other equipment that would have alleviated these toxic hazards, the conduct was especially egregious.”“The Tonawanda Coke Corporation and Mr. Kamholz intentionally deceived federal regulators by concealing the company's violations of the Clean Air Act and the Resource Conservation Recovery Act, which were enacted by Congress to protect human health and the environment," said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the United States Department of Justice. "The conviction of the corporate and individual defendants is a just and fair result that will benefit the people of Buffalo, New York."
The verdict is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen and investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella.
Sentencing is schedule for July 15, 2013, at 9:00 a.m. before Chief Judge William M. Skretny who presided over the trial.
Guatemalan Natioanl Pleads Guilty to $5 Million Conspiracy to Provide Thousands of Identity Documents to Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Guatemalan national pleaded guilty in federal court today to his role in a more than $5 million conspiracy that utilized the Missouri Department of Revenue license office in St. Joseph to provide more than 3,500 fraudulent identity documents to illegal aliens across the United States.
Luis Adalberto Felipe-Lopez, 30, a citizen of Guatemala who was unlawfully in the United States and resided in Mt. Olive, N.C., pleaded guilty before U.S. District Judge Gary A. Fenner to his role in the conspiracy as well as to aggravated identity theft.
Felipe-Lopez participated in a conspiracy from November 2009 to January 2012 to transport illegal aliens, to unlawfully produce identification documents, to unlawfully transfer another person’s identification and to commit Social Security fraud. The government contends that Felipe-Lopez is a leader or manager of the conspiracy.
Felipe-Lopez admitted that he transported illegal aliens between St. Joseph and North Carolina. During the conspiracy, thousands of illegal aliens traveled from across the United States to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office by using unlawfully obtained birth certificates and Social Security cards. Felipe-Lopez admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others.
It is estimated that more than 3,500 licenses were issued to illegal aliens by the Department of Revenue license office in St. Joseph. The state licenses could then be used by the illegal aliens to remain unlawfully in the United States, to unlawfully obtain employment and for other unlawful purposes.
The illegal aliens were usually charged between $1,500 and $1,600 for the document sets and the Missouri driver’s and non-driver’s licenses. It is estimated that more than $5,250,000 in gross proceeds was paid by illegal aliens to members of this conspiracy.
Felipe-Lopez is among 11 co-defendants who have pleaded guilty.
Deborah J. Flores, 47, and her children, Jessica M. Gonzalez, 22, Sara M. Gonzalez, 21, Christina Michelle Gonzalez, 24, and Stephen E. Vanvacter, 25, all of St. Joseph, as well as Jon L. Grippando, 25, of Atkins, Ark., formerly of St. Joseph, have also pleaded guilty to their roles in the conspiracy. Flores also pleaded guilty to aggravated identity theft. They admitted that they accompanied illegal aliens to the St. Joseph license office, under the guise of being translators, in order to assist them with obtaining a Missouri driver’s or non-driver’s license.
Flores and her children also admitted that they instructed and assisted the illegal aliens to practice memorizing the information on the birth certificates and Social Security cards and to practice signing the name on those documents so that the signatures would be similar. They also assisted the illegal aliens to prepare for potential questions from the license office employees. They also assisted the illegal aliens who did not live in Missouri by providing them with a Missouri residential address to use in order to obtain the Missouri driver’s or non-driver’s license.
Christina Gonzalez was sentenced to 32 months in federal prison without parole and ordered to pay $150,000 in restitution. Jessica Gonzalez was sentenced to three years of probation.
Nelson Dariseo Bautista-Orozco, 27, a citizen of Guatemala who is unlawfully present in the United States and resided in Carthage, Mo., and Julio Cesar Llanas-Rodriguez, 38, and Martin Alejandro Llanas-Rodriguez, 30, both of whom are citizens of Mexico unlawfully present in the United States and resided in San Antonio, Texas, pleaded guilty to their roles in the conspiracy and to aggravated identity theft. Ranfe Adaias Hernandez-Flores, 23, a citizen of Guatemala who is unlawfully present in the United States and resided in in Carthage, pleaded guilty to his role in the conspiracy.
Under federal statutes, Felipe-Lopez is subject to a sentence of up to five years in federal prison without parole for conspiracy, plus a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, the U.S. Postal Inspection Service, the U.S. Department of State Bureau of Diplomatic Security.Garden Valley Man Sentenced to 30 Months in Prison for Failing to Register as A Sex OffenderRead the Press Release
BOISE – William N. Brockbrader, 40, of Garden Valley, Idaho, was sentenced today in United States District Court to 30 months in prison followed by ten years of supervised release for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Brockbrader to pay a $10,000 fine.
Brockbrader was convicted by a federal jury in Boise on December 5, 2012, following a three day trial. The jury heard evidence that Brockbrader was convicted in 1998 of three sexual offenses against a minor. He was serving in the United States Navy when he committed the offenses. After serving three years in prison, Brockbrader was paroled in Utah in 2001. Although he initially registered as a sex offender in Utah, Brockbrader failed to update his registration status when he moved to Nevada in early 2009. Brockbrader was arrested during a traffic stop in Nevada in April 2011, and it was determined that he was a sex offender who had failed to register. Brockbrader completed his registration under protest while he was in jail and was released. He left Nevada in early 2012 and moved to Garden Valley. Brockbrader was non-compliant with his Nevada registration requirements at the time he left the state and failed to notify Nevada or Utah authorities that he had moved to Idaho. Brockbrader subsequently failed to register as a sex offender in Idaho. United States Marshals arrested him on May 15, 2012.
The case was investigated by the Sex Offender Watch Task Force in Southern Idaho and the United States Marshals Service, with assistance by the Nevada Department of Public Safety, Nevada Attorney General’s Office, and the Utah Sex Offender Registry.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Fort Washington Business Owner Sentenced for Falling to Pay TaxesRead the Press Release
Ordered to Pay Restitution of $143,815 to the IRSBaltimore, Maryland - U.S. District Judge George L. Russell III sentenced Kevinton Reynolds, age 47, of Fort Washington, Maryland, today to six months of home detention as part of 18 months’ probation for failing to file tax returns. Judge Russell ordered Reynolds to pay restitution of $143,815 to the IRS and to perform 1,000 hours of community service.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Failure to comply with your tax obligations violates U.S. tax law,” said Thomas J. Kelly, Special Agent in Charge IRS Criminal Investigation, Washington DC Field Office. “The law is crystal clear: people must file and pay their taxes. Today's sentence brought an abrupt end to Mr. Reynolds’ criminal behavior and is a reminder that IRS Criminal Investigation is committed to maintaining the integrity of our tax system.”
According to his guilty plea, Reynolds owned and operated K&R Construction, LLC. Prior to 2007, Reynolds reported income earned by K&R Construction, and its predecessor business, on his personal tax returns. In 2007, Reynolds earned $247,045 in income based on K&R Construction’s gross receipts of approximately $1,110,683. In 2008, Reynolds earned $163,084 in income based on K&R Construction’s gross receipts of approximately $384,227.
Reynolds willfully failed to file any income tax returns for tax years 2007 and 2008; and failed to pay $86,617 in tax due for 2007, and $57,198 in tax due for 2008.
The total tax loss to the government for 2007 and 2008 is at least $143,815.
United States Attorney Rod J. Rosenstein commended the IRS – Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Sujit Raman and Special Assistant United States Attorney Gregory P. Bailey, who prosecuted the case.
Fort Pierre Man Sentenced for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Pierre, South Dakota man convicted of Distribution of a Controlled Substance was sentenced on March 25, 2013 by U.S. District Judge Roberto A. Lange.
Dalton Mollard, age 20, was sentenced to time served, approximately 6 months; 2 years of supervised release; a $1,000 fine; and a $100 special assessment to the Victim Assistance Fund.
Mollard was indicted by a federal grand jury on September 19, 2012 and pled guilty to the above charge on January 10, 2013. The charge stems from an incident on April 4, 2012 wherein Mollard knowingly and intentionally distributed marijuana, a Schedule I controlled substance.
The investigation was conducted by the Northern Plains Safe Trail Drug Task Force and Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Former U.S. Soldier Charged with Conspiring to Use Destructive Device While Fighting with Al Qa'ida Affiliated Group in SyriaRead the Press Release
ALEXANDRIA, Va. –Eric Harroun, 30, of Phoenix, Ariz., was arrested and charged with conspiring to use a rocket propelled grenade (RPG) while fighting with the al-Nusrah Front, which is an alias of “al Qa’ida in Iraq.” Al Qa’ida in Iraq has been designated as a foreign terrorist organization since October 2004.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
Harroun, a U.S. citizen who served with the U. S. Army from 2000 to 2003, was charged by criminal complaint with conspiring to use a destructive device outside of the United States, which carries a maximum penalty of life in prison, if convicted. Harroun made his initial appearance today in federal court in Alexandria, Va., before U.S. Magistrate Judge Theresa C. Buchanan.
The al-Nusrah Front is one of several aliases used by the “al Qa’ida in Iraq” terrorist organization, and since November 2011 the group has claimed responsibility for nearly 600 terrorist attacks in Syria.
According to an affidavit filed in support of the criminal complaint, Harroun allegedly crossed into Syria in January 2013 and fought with members of the al-Nusrah Front against the Bashar al-Assad regime in Syria. The affidavit alleges that Harroun was trained to use an RPG by members of the terrorist organization and that he fired an RPG and posted online multiple photographs of himself carrying or posing with RPGs and other military weapons. Harroun allegedly participated in attacks led by the al-Nusrah Front and was part of an RPG team, for which he carried anti-personnel and anti-armor rockets.
This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Andrew Peterson, Carter Burwell and Lynn Haaland are prosecuting the case on behalf of the United States, with assistance from the Justice Department’s National Security Division.
Criminal complaints 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 State Trooper Sentenced to One Year in Prison for Depriving Woman of Civil RightsRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former Alabama State Trooper to one year in prison for depriving a woman of her civil rights by coercing her to perform sex acts, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Virginia E. Hopkins sentenced KEITH WILSON KELLEY, 51, to the maximum prison term under the misdemeanor charge of depriving a person’s civil rights under the color of law, or while acting in the official capacity of a police officer. Kelley must serve one year of supervised release following completion of his prison term.
Kelley was a captain with the State Troopers in September 2007 when the incident occurred in Shelby County. He pleaded guilty to the charge in federal court in December.
According to evidence presented in Kelley’s sentencing hearing today, he violated the civil rights of a 20-year-old college student as follows:
Kelley was behind the young woman in line at a self-service check-out at a discount department store in Pelham in 2007. He saw that she did not scan and pay for all the items she took from the store. Kelley followed her to her car, showed his badge then took her name and phone number. Kelley told the woman that he would see how the store wanted to handle the matter, and would be in touch. He later called her, said the store was leaving the matter to him and that he wanted her to meet him at a gas station.
Kelley was in his patrol car when the woman met him. He searched her for a wire, told her she would be convicted of a felony, but that he could make the case go away. He then coerced her into performing sex acts.
The woman reported the incident to Pelham Police.
According to the government’s sentencing memorandum to the court, the incident was not an isolated act by Kelley, “who during a two-year period brazenly propositioned at least four other women after issuing them traffic tickets in his capacity as a public official.”
The case was investigated by the FBI and Pelham Police. Assistant U.S. Attorney Staci Cornelius prosecuted the case.
Former Property Evidence Technician Pleads Guilty to Embezzling Drugs from the Asheville Police Department's Evidence RoomRead the Press Release
ASHEVILLE, N.C. – A criminal bill of information was filed on Tuesday, March 26, 2013, in U.S. District Court charging the former Property Evidence Technician with the Asheville Police Department (“APD”) with embezzling between $10,000 and $30,000 of controlled substances from the police department’s evidence room, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
William Ledessie Smith, III, 49, of Spartanburg, S.C., pleaded guilty today before U.S. Magistrate Judge Dennis Howell to a federal charge stemming from a joint federal and state investigation into the misappropriation of property from APD’s evidence room.
Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI), join U.S. Attorney Tompkins in making today’s announcement.
According to the criminal bill of information, the filed plea agreement, and statements made at today’s plea hearing, up until April 2011 Smith was a civilian employed for over twenty years by APD as the police department’s Property Evidence Technician. In that capacity, Smith oversaw APD’s evidence room and had access to items including cash, firearms and controlled substances, which were stored in the room as evidence. According to the charging document and today’s plea hearing, Smith surreptitiously opened envelopes containing controlled substances after their return from the SBI lab, where they had been analyzed. Smith then removed some or all of the controlled substances, then resealed the envelopes with a new layer of tape, carefully re-applied directly over the layer of tape that the SBI chemist had used to seal the envelope, with the chemist’s signature or initials. An analysis by the FBI lab revealed that in many instances, Smith’s fingerprints were found on the underside, or sticky side, of the new tape layer. Filed documents indicate that Smith embezzled between $10,000 and $30,000 of controlled substances from the police department’s evidence room.
“Mr. Smith betrayed the trust placed in him by the Asheville Police Department and the citizens of Buncombe County,” said U.S. Attorney Tompkins. “Instead of fulfilling his duties and safeguarding the evidence room, Mr. Smith pilfered controlled substances and, in the process, compromised the integrity and good name of the Asheville Police Department. My office will continue to work with our law enforcement partners to root out public corruption and prosecute those who abuse their positions of trust for their own benefit.”
“Not only did Mr. Smith treat items inside the Asheville Police Department’s evidence room as his own property, he put countless criminal cases in jeopardy. The success of this case was due in great part to our strong relationship with the SBI. We look forward to continuing our partnership with the SBI to see that corrupt public officials are brought to justice,” said Roger Coe, Acting Special Agent in Charge of the Charlotte Division of the FBI.
“I’m proud of our SBI agents’ excellent work in this case, which once again demonstrates our strong partnership with federal prosecutors in rooting out public corruption,” said SBI Director Greg McLeod.
Smith pleaded guilty to one count of federal program fraud. As the criminal information alleges, federal jurisdiction is based on the fact that the Asheville Police Department received over $10,000 in federal funds in the one year period that includes April 1, 2011. At sentencing, Smith faces a maximum term of 10 years in prison and a $250,000 fine. He has also agreed to pay restitution, the amount of which will be determined by the Court at sentencing. The defendant has been released on bond and a sentencing hearing has not been set yet.
The investigation into Smith was handled by the SBI and FBI. U.S. Attorney Tompkins also thanked the Asheville Police Department and the Buncombe County District Attorney’s Office for their invaluable assistance with the investigation.
Buncombe County District Attorney Ronald L. Moore stated, “I appreciate the hard work and diligence of the SBI, the FBI and the U.S. Attorney’s Office. I also want to thank Mike Wright, the owner of Blueline Systems and Services, who conducted a meticulous audit of APD’s evidence room.”
The prosecution is handled by Richard Edwards, of the U.S. Attorney’s Office in Asheville.
Former Postal Service Employee Sentenced to Prison for Making False Statements to Obtain Federal Disability BenefitsRead the Press Release
Operated A Salon and Fitness Center While Claiming to Be DisabledGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Darlene M. Altvater, age 48, of Mechanicsville, Maryland, late yesterday to five months in prison, followed by five months home detention and three years of supervised release, for two counts of making false statements to obtain federal disability benefits. Chief Judge Chasanow also ordered Altvater to pay restitution, with the exact amount still to be determined.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; and Special Agent in Charge Michael S. Barcus, U.S. Department of Labor – Office of Inspector General, Office of Labor Racketeering and Fraud Investigations
According to the evidence presented at her five day trial, Darlene Altvater was employed by the U.S. Postal Service as a rural carrier at the Mechanicsville Post Office in St. Mary’s County, Maryland. After an on-the-job injury to her head and neck, Altvater began receiving federal workers’ compensation benefits in 2001. The evidence showed that from January 2005 through December 2011, while she continued to receive worker’s compensation benefits based on her disability, Altvater operated a salon, day spa and fitness center, first in Leonardown, Maryland and later in California, Maryland, under the names LadySlender LLC, Creative Touch Salon and Spa, and California Fitness LLC.
Although Altvater filed forms with the USPS and the U.S. Department of Labor, Office of Workers’ Compensation Programs claiming that she was unable to work due to her disability, witnesses testified that Altvater reported to the salon on a regular basis, performing physical acts, including demonstrating the use of the fitness equipment, performing pedicures and giving massages.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Service, Office of Inspector General and U.S. Department of Labor – Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis R. Weisman and Special Assistant U.S. Attorney Ann O’Brien, assigned from the Department of Justice’s Antitrust Division, who prosecuted the case.
Former Official Sentenced for Embezzling from Letter Carriers UnionRead the Press Release
PITTSBUGRH - A resident of New Stanton, Pa., has been sentenced in federal court to three years probation, with five months home detention and was ordered to pay restitution in the amount of $4,914.91 on his conviction of union embezzlement, United States Attorney David J. Hickton announced today.
Chief United States District Judge Gary L. Lancaster imposed the sentence on Frank Rysz, 47.
According to information presented to the court, Rysz, a Secretary-Treasurer of the Letter Carriers, National Association, AFL-CIO, Branch 1124, stole approximately $12,514.19 from the union by writing and cashing 70 unauthorized union checks, by making 26 unauthorized cash withdrawals and by making unauthorized payments over the four-year period from Jan. 1, 2007 to Dec. 31, 2010.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Labor, Office of Labor Management Standards for the investigation leading to the successful prosecution of Rysz.
Former IRS Employee Sentenced for Stealing Taxpayer's IdentityRead the Press Release
PHILADELPHIA - Domeen Flowers, 49, of Maitland, Florida, was sentenced today to 28 months in prison for an identity theft scheme in which she stole the personal information of a taxpayer. Flowers, a former employee of the Internal Revenue Service in Philadelphia, used her position with the IRS to make unauthorized computer entries into the IRS’ Integrated Data Retrieval System. After accessing the system, Flowers obtained personal identifying information pertaining to a taxpayer, identified as “E.R.” She then used the information to apply for credits from different credit card companies in E.R.’s name. Flowers pleaded guilty to the crime on August 16, 2012.
“Identity theft committed by IRS employees is a serious violation of the public’s trust,” said Treasury Inspector General for Tax Administration J. Russell George. “It has the potential to harm the lives of taxpayers and undermine their faith in our Nation’s system of tax administration.”In addition to the prison term. U.S. District Court Judge Eduardo Robreno ordered Flowers to pay restitution to the credit card companies and pay a special assessment of $900. Flowers must also serve two years of supervised release. She was immediately taken in to custody.
The case was investigated by Treasury Inspector General for Tax Administration Philadelphia Field Office and was prosecuted by Assistant United States Attorney Floyd J. Miller.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Gatlinburg Resident Convicted of Tax OffensesRead the Press Release
KNOXVILLE, Tenn.- David Miner, formerly of Gatlinburg, Tenn., was convicted today by a federal jury in Knoxville, with one count of impeding or obstructing the administration of the Internal Revenue Laws and two counts of failing to file federal income tax returns. The Honorable Thomas Phillips, U.S. District Judge, ordered Miner to be held in custody pending sentencing, which has been scheduled for May 29, 2013. Miner faces a maximum penalty of five years in prison and a fine of $450,000.
In the course of a six-day trial, the United States presented evidence of Miner’s efforts to obstruct the lawful functions of the Internal Revenue Service (IRS) and his failure to file tax returns for the 2004 and 2005 tax years. The jury heard extensive testimony regarding Miner’s sale of services that were designed to assist customers in evading income taxes. In particular, the United States offered evidence of a service for the purported decoding and correction of clients’ IRS files, which Miner stated would prevent the IRS from being able to assess taxes. In addition, Miner set up “common law trusts,” which were intended to place clients’ income and possessions out of the reach of the IRS. In connection with both services, Miner would prepare frivolous and threatening letters to IRS employees and others in an effort to hamper the collection of taxes.
U.S. Attorney William C. Killian stated, “When tax protesters promote and use fraudulent tax schemes as weapons against the United States of America, they will be brought to justice. The diligent efforts of IRS Criminal Investigation Division agents and AUSA Frank Dale assured the equal application of the laws of the United States to all.”
"The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject," said Christopher A. Henry, Special Agent in Charge, IRS Criminal Investigation Nashville Field Office. "We should not forget that the ultimate victims in tax fraud cases are the people of the United States - those honest taxpayers who diligently file tax returns each year. This conviction sends a message that the IRS is working to make sure that all taxpayers file and pay their fair share of taxes."
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.
Former Employee Indicted for Stealing More Than $10,000 from Postal ServiceRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late yesterday charges a former employee of the United States Postal Service (“USPS”) with embezzling approximately $10,365.57 from the Brooklyn Park Post Office. The indictment, which was filed on March 12, 2013, charges Kathleen M. Warner, age 52, of Otsego, with one count of misappropriation of postal funds. The indictment was unsealed following Warner’s initial appearance in federal court.
The indictment alleges that from approximately February 2010 through August 2012, Warner embezzled funds from her cash drawer and removed stamps and other merchandise without paying for them.
If convicted, Warner faces a potential maximum penalty of ten years in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the USPS-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Former Customs and Border Protection Officer Admits to Receiving Bribes to Allow Aliens to Enter the U.S. IllegallyRead the Press Release
United States Attorney Laura E. Duffy announced that Hector Rodriguez, a former Customs and Border Protection Officer, and Gerardo Rodriguez pled guilty today in front of Magistrate Judge David Bartick to conspiracy to bring in aliens for financial gain and to receive bribes, bringing in aliens for financial gain, and bribery.
According to court records, defendant Hector Rodriguez agreed that from around 2010 until his arrest on July 13, 2012, he received bribes from codefendants Gerardo Rodriguez and Maria Guerrero, in the form of cash money, use of luxury vehicles, and use of an apartment, in return for failing to enforce U.S. immigration laws by admitting illegal aliens into the U.S. through his inspection lane at the San Ysidro Port-of-Entry. Defendant Hector Rodriguez provided his lane assignment information to codefendants who would then drive vehicles containing illegal aliens from Mexico to the United States 2 through his assigned inspection lane. On their date of arrest, July 13, 2012, codefendant Gerardo Rodriguez drove a vehicle containing 8 illegal aliens and codefendant Vanessa Moya drove a vehicle containing 6 illegal aliens through defendant Hector Rodriguez’s inspection lane. To conceal the smuggling, defendant Hector Rodriguez would enter into the government database false information about who was driving the vehicle and the number of occupants, thereby concealing the fact that the vehicles contained illegal aliens. As part of his guilty plea, Defendant Hector Rodriguez has agreed to forfeit a 2009 Jaguar, 12 luxury watches (5 Rolexes), jewelry, televisions, and computers that were obtained as a result of his criminal activity. Codefendant Gerardo Rodriguez has agreed to forfeit a 2005 Mercedes, 2006 Harley Davidson, $60,000, televisions, and computers that were obtained as a result of his criminal activity.
The defendants are scheduled to appear for sentencing before U.S. District Judge Roger T. Benitez on July 1, 2013, at 9 a.m.
DEFENDANTS Case Number: 12cr2997-BEN/12cr4462-BEN Hector Rodriguez
Gerardo Rodriguez
Vanessa Moya
Maria Guerrero SUMMARY OF CHARGESCount 1 - Title 8, United States Code, Section 371- Conspiracy to Bring In Aliens For Financial Gain and Bribery; Maximum Penalties - 5 years' imprisonment and $250,000 fine
Counts 2-4 & 9 - Title 8, United States Code, Section 1324(a)(2)(B)(ii)- Bringing In Illegal Aliens For Financial Gain; Mandatory Minimum Penalty of 5 years' imprisonment; Maximum Penalties - 15 years' imprisonment, and $250,000 fine
Counts 16-17 - Title 18, United States Code, Sections 201(b)(1), 201(b)(2) - Bribery; Maximum
INVESTIGATING AGENCIES
Penalties - 15 years' imprisonment, and a $250,000 fine or three times the amount of bribe, whichever is greaterThe Border Corruption Task Force is composed of the Federal Bureau of Investigation, Customs and Border Protection - Internal Affairs, Customs and Border Protection - Field Operations, Border Patrol, Transportation Security Administration, and Drug Enforcement Administration.
Former Corrections Officer Found Guilty of Bribery for Taking Cash to Smuggle Contraband into D.C. Jail-Defendant Accepted $1,000 from Undercover Agent-Read the Press Release
WASHINGTON – Jeremiah Moorman, 30, a former corrections officer, has been found guilty by a jury of bribery and first-degree theft charges for accepting money under the promise of bringing contraband into a District of Columbia correctional facility, U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office announced today.
Moorman was found guilty on March 27, 2013, following a trial in the Superior Court of the District of Columbia. The Honorable Patricia A. Broderick scheduled sentencing for May 24, 2013.
According to the government’s evidence, Moorman was employed as a corrections officer for the District of Columbia Jail. Prior to Oct. 12, 2011, he met with individuals inside the jail to discuss the possibility of smuggling contraband to an inmate inside the facility. On Oct. 12, 2011, Moorman contacted a person by telephone outside the jail who he believed was an associate of an inmate; in fact, however, that person was an undercover FBI agent.
During the phone conversation, Moorman agreed to smuggle an RSA token to an inmate in exchange for $1,000. An RSA token is an authentication mechanism that allows a computer user to access secure computer databases, often bank accounts. On Oct. 14, 2011, Moorman met the undercover agent in Northwest Washington. The agent handed the RSA token and $1,000 to Moorman during the meeting.
Moorman is among three corrections employees convicted of bribery charges in recent months. Daishawn Goodson, 26, a former employee of the Corrections Corporation of America (CCA), pled guilty in December 2012 to a federal bribery charge and was sentenced March 22, 2013 to eight months of home detention. April Johnston, 42, a former corrections officer at the District of Columbia Jail, pled guilty earlier this month to a federal bribery charge. Both were arrested following undercover investigations by the FBI’s Washington Field Office. Goodson and Johnston each accepted money to smuggle items into correctional facilities.
“Corrections officers play a critical role in maintaining order in our prison system. Instead of preventing contraband from entering the prison population, Jeremiah Moorman betrayed his oath of office by agreeing to smuggle contraband into prison in exchange for cash.” said U.S. Attorney Machen. “His guilty verdict after trial marks the third conviction in the last three months of a corrections officer for bribery related charges and demonstrates this office’s commitment to rooting out corruption wherever it is found.”
“The smuggling of contraband into our jails endangers the integrity and safety of our corrections system,” said Assistant Director in Charge Parlave. “The FBI will continue to work to protect the system by thoroughly investigating all cases of bribery and corruption.”
In announcing the verdict, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the agents who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the District of Columbia Department of Corrections Office of Investigative Services. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Nicole Wattelet and Assistant U.S. Attorney Seth B. Waxman, who prosecuted the case.
13-109Federal Jury Convicts Albuquerque Real Estate Broker on Wire Fraud ChargesRead the Press Release
ALBUQUERQUE – Late yesterday afternoon, a federal jury returned a guilty verdict against Keith Michael Courtney, 31, of Albuquerque, N.M., on wire fraud charges after a three day trial, announced U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Courtney and co-defendant John Johns, 40, also of Albuquerque, were indicted in Nov. 2011, on wire fraud charges. The three-count indictment alleged that between Nov. 2006 and Sept. 2007, Courtney and Johns schemed to defraud mortgage lenders by using straw buyers to apply for residential mortgage loans. At the time of the offenses charged, Courtney was part owner of Black Diamond Construction Company (BDCC), Veritas Mortgage Company and Polaris Realty, all of which maintained offices in Albuquerque. Johns was a loan officer with Veritas Mortgage Company.
In Feb. 2012, Johns entered a guilty plea to the indictment. During his plea hearing, Johns admitted his role in the unlawful scheme alleged in the indictment which resulted in three wire transfers of funds in the aggregate amount of $1,601,775.84 by mortgage lenders based on false and fraudulent representations made in connection with the sale of two residences built by Courtney’s business, BDCC.
Courtney proceeded to trial which began on March 25, 2013. The evidence at trial showed that Courtney’s company, BDCC, built two houses, one in Albuquerque and the other in Santa Fe. After the houses were completed, Courtney and Johns solicited straw buyers to purchase the houses, using the names and credit histories of the straw buyers to obtain financing from Plaza Home Mortgage Company and Lehman Brothers Bank. The loan applications falsely stated that the borrowers were buying the houses as primary residences, when in fact they had no intention of ever living in the houses. The straw buyers put no money into the transactions, did not make the mortgage payments, and were to receive $5,000.00 once the houses were resold. They were told that Courtney would make the mortgage payments until the houses were resold.
As a result of the false loan applications, which did not inform the lenders that the borrowers were straw borrowers, Plaza Home Mortgage Company wired two loans for $660,772.50 and $99,250.00 in connection with the Albuquerque house. Lehman Brothers Bank wired $641,803.34 for a loan in connection with the Santa Fe house. Courtney obtained an aggregate of $1,601,775.84 from the two mortgage lenders based on the fraudulent transactions. Courtney made mortgage payments on each property for a time after the transactions closed but ultimately stopped making payments on both, at which point the houses went into foreclosure. The mortgage companies suffered losses as a result.
The jury deliberated approximately two and a half hours before returning a guilty verdict on all three counts in the indictment.
Courtney remains on conditions of release pending his sentencing hearing, which has not yet been scheduled. At sentencing, Courtney faces a maximum penalty of 20 years in prison and a $250,000 fine on each of the three wire fraud counts of conviction. Johns also is on conditions of release pending his sentencing hearing, and faces the same maximum penalties.
This case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mary L. Higgins.
Federal Guilty Plea from Field Auditor Who Organized Major Workers’ Compensation Insurance Fraud SchemeRead the Press Release
Four co-defendants also admit to their roles in a scheme to bilk BrickStreet Insurance out of millions of dollars
CHARLESTON, W.Va. –A former workers’ compensation insurance premium field auditor employed by BrickStreet Mutual Insurance Company (“BrickStreet”) admitted to federal charges in connection with his role in orchestrating a multimillion-dollar fraud against the state’s leading workers’ comp provider, announced U.S. Attorney Booth Goodwin. Arville W. Sargent, 52, of Chapmanville, Logan County, W.Va., pleaded guilty to honest services mail fraud and tax evasion on March 27, 2013.
Two other co-defendants involved in the scheme to defraud BrickStreet were the principals of “employee leasing” companies Aracoma Contracting, LLC (“Aracoma”), Jerome Eddie Russell, 50, of Williamson, W.Va., and Frelin Workman, 58, of Belfrey, KY. Russell and Workman each pleaded guilty to honest services mail fraud and tax evasion. Russell and Workman admitted to paying a significant number of their employees in cash as part of a tax evasion scheme to avoid the associated premiums owed to BrickStreet. Both defendants admitted that they paid Sargent approximately $1 million in cash bribes to falsify the audits performed for the Workers’ Comp Commission and then BrickStreet. Russell and Workman estimated that the Workers’ Comp Commission and BrickStreet were defrauded approximately $4 million in lost premiums over the course of the fraud scheme.
Additionally, Randy Workman, 36, of Belfrey, KY, pleaded guilty on March 26, 2013 to aiding and abetting honest mail fraud and tax evasion. Workman admitted that he utilized a similar cash payroll scheme to evade payroll taxes. Workman further admitted that from October 1, 2007 through June 30, 2009, he structured approximately $800,000 in cash out of Community Trust Bank and used the funds to pay employees in cash. Workman also admitted that he underpaid approximately $280,000 in premiums owed to BrickStreet.
A fifth co-defendant, Arthur J. White, Jr., 60, of Lenore, W. Va., pleaded guilty today to tax evasion and structuring in connection with a scheme to defraud BrickStreet. White admitted that he paid a portion of the payroll for T&W Services, LLC through a shell company, thereby evading taxes. According to his plea agreement, White estimated that he skimmed approximately fifteen percent of the premium actually owed to BrickStreet over a four-year period, resulting in a loss of approximately $154,527 to BrickStreet.
Sargent admitted that from its inception in January 2006 until at least February 1, 2011, he led a scheme to defraud BrickStreet by allowing certain policyholders operating in the coal mining industry to drastically underreport their payroll during annual field audits he conducted on behalf of BrickStreet for the intended purpose of confirming those policyholders were paying accurate workers’ compensation insurance premiums. Sargent further admitted that he purposely allowed four “employee leasing” companies, Aracoma, Christian Contracting, Newhall Contracting and T&W Services, LLC, all of whom provided labor on a contract basis to coal companies in southern West Virginia, to falsify documents drastically understating their actual payroll. In exchange for saving those policyholders millions of dollars in insurance premiums rightfully owed to BrickStreeet, Sargent accepted hundreds of thousands of dollars in cash bribes and other things of value, including a Yamaha Rhino all-terrain vehicle.
Sargent faces up to 25 years in prison and a $500,000 fine when he is sentenced on July 8, 2013 by United States District Judge John T. Copenhaver, Jr.
Russell, Frelin Workman and Randy Workman each face up to 25 years in prison and a $500,000 fine when they are sentenced on July 2, 2013.
White faces up to ten years in prison and a $500,000 fine when he is sentenced on July 11, 2013.
The FBI, the IRS, the West Virginia State Police and the West Virginia Insurance Commission conducted the investigations. This investigation was also handled in coordination with the United States Attorney’s Office for the Western District of Virginia and the IRS’s local Abingdon, Virginia Resident Agency. Assistant United States Attorney Thomas Ryan is in charge of the prosecutions.Federal Court Permanently Bars Indiana Firm from Preparing Tax ReturnsRead the Press Release
A federal court permanently barred a Gary, Ind., tax-preparation firm and its owner, John Newlin, from preparing tax returns for others, the Justice Department announced today. The civil injunction order, to which Newlin and Quick Sam agreed without admitting the allegations against them, was signed by Judge Jon E. DeGuilio of the U.S. District Court of the Northern District of Indiana.
The government in the civil injunction suit alleged that Newlin’s business, Quick Sam Tax Refund, had repeatedly prepared federal income tax returns that unlawfully understated customers’ income tax liabilities. According to the complaint, Quick Sam guaranteed its customers that they would receive the largest refund by getting their taxes prepared at Quick Sam. In order to deliver on this promise, the complaint alleges, Quick Sam employees fabricated bogus business expenses, claimed improper tax credits, and reported fictitious dependents to illegally increase customers’ tax refunds. Newlin and Quick Sam allegedly gave bonuses to employees for engaging in these fraudulent practices.
Several Quick Sam employees have been accused of fraud in the past, according to the complaint. Charles Standifer, Rhonda Murphy, Chanel Bandy and Brittaney Walker-Lipsey, all former Quick Sam tax return preparers, have pled guilty to tax-related crimes. The complaint alleges that the total harm to the government caused by Newlin and Quick Sam’s illegal conduct possibly exceeded $35 million in lost tax revenue.
Claiming bogus tax refunds is one of the IRS’s Dirty Dozen Tax Scams . In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. John Newlin, et al.
Stipulated Final Judgment of Permanent Injunction and Order Against John Newlin and World Changers, Inc. (PDF)Far Rockaway Man Charged with Defrauding Victims of $50 Million in A Real Estate Ponzi SchemeRead the Press Release
Earlier today, FBI agents arrested Gershon Barkany based on a criminal complaint alleging that the Far Rockaway man defrauded investors by promising to use their money in “risk-free” deals to purchase, and then immediately re-sell at a profit, large real estate properties located in New York City and New Jersey. In fact, the complaint alleges that no such deals existed and the defendant defrauded victims of over $50 million.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (“FBI”), New York Field Office. The defendant’s initial appearance is scheduled for this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the United States Courthouse in Central Islip, New York. 1
According to the criminal complaint that was unsealed this morning, Barkany induced at least five investors to wire transfer large sums of money supposedly to purchase real estate in Manhattan, Queens, the Bronx and Atlantic City, New Jersey. According to one of the investor victims, Barkany claimed that the sellers of these properties would only close on the real estate sales contracts after Barkany had located a purchaser who would be willing to buy the property from Barkany at a higher price. In that way, Barkany assured the victim that the real estate deals would be “risk free.”
In fact, the real estate deals did not exist. As part of Barkany’s Ponzi scheme, he diverted some of the funds he received to pay investors whom he had earlier defrauded. The defendant also lost some of the funds in gambling and otherwise used the money for his own benefit.
“Barkany’s victims sought the security of investing in real estate. Instead, they were taken for millions by the defendant’s lies and deception,” stated United States Attorney Lynch. “As alleged, the promised high returns were only for him, as he used his victims’ money to gamble and keep his scheme afloat. Today’s arrest demonstrates the Department of Justice’s commitment to investigate and prosecute financial crimes.” Ms. Lynch added that the government’s investigation is continuing.
FBI Assistant Director-in-Charge Venizelos stated, “As alleged, Barkany promised a get-rich-quick investment scheme that really had potential to enrich only him. There were no investment properties, just a house of cards built on a foundation of lies. There may be no truly risk-free investments, but investors are entitled to honesty.”
If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Christopher C. Caffarone.
The Defendant:
GERSHON BARKANY
Far Rockaway, New York
Age: 29_____________________________
1 The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Eighteen Individuals Sentenced During the Month of March for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of March, 2013, eighteen individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS
(Judge Frederick P. Stamp, Jr.)
GLENN ALBERT STEWART, JR., of Follansbee, West Virginia, was sentenced to 40 months imprisonment for testing positive for the use of marijuana; failure to timely notify probation officer of citation received following a car accident; possession of drug paraphernalia; possession of edged weapon; a conviction in Hancock County for three counts of House Burglary; and, a conviction in Ohio County for Burglary. STEWART was originally sentenced on May 28, 1998, to 180 months imprisonment and 5 years of supervised release for possession of a firearm by a convicted felon. STEWART was remanded to the custody of the United States Marshal pending designation to a Federal institution.
JEFFREY A. LUCAS, age 44, of Moundsville, West Virginia, was sentenced to 24 months imprisonment for convictions in Brooke County on two counts of shoplifting and one count of conspiracy to commit shoplifting. LUCAS was originally sentenced on May 1, 2009, to 39 months imprisonment and three years of supervised release for conspiracy to distribute oxycodone. LUCAS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
CHARLES WILLIS, age 37, of Clarksburg, West Virginia, was sentenced to 14 months imprisonment for use and possession of drugs; traveling outside the district without permission of his probation officer and fleeing the scene of an accident. WILLIS was originally sentenced on May 5, 2008, to 51 months imprisonment and 3 years of supervised release for distribution of cocaine hydrochloride. On February 22, 2012, WILLIS’ supervised release was revoked and he was sentenced to 10 months imprisonment and 26 months of supervised release. WILLIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
LYNNEIL LAWRENCE WILLIAMS, age 30, of Penn Hills, Pennsylvania, was sentenced to 12 months and 1 day imprisonment for possession and use of controlled substances; failure to report law enforcement contact to his probation officer; and, a conviction in the Western District of Pennsylvania for conspiracy to distribute heroin. WILLIAMS was originally sentenced on March 10, 2003, to 23 months imprisonment and 3 years of supervised release for interstate travel in aid of racketeering, distribution of heroin and false declaration before the court. WILLIAMS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
WAYNE CASTO, age 43, of Weirton, West Virginia, was sentenced to 30 days imprisonment for two separate convictions in Hancock County for failure to register as a sex offender. CASTO was originally sentenced to 37 months imprisonment and 10 years of supervised release for possession of child pornography. CASTO, who is free on bond, will self- report to the designated federal institution.
The United States was represented at the Wheeling revocation hearings by Assistant
United States Attorneys John C. Parr and Stephen L. VogrinCLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
MICHAEL IRVIN GIBBONS, age 41, of Lumberport, West Virginia, was sentenced to 24 months imprisonment for convictions in state court for the possession with intent to distribute marijuana and conspiracy to distribute marijuana; leaving the judicial district without permission of the Court or the probation office; submitting incomplete monthly report forms; failure to notify probation office of his contact with local law enforcement; and, failure to appear for random drug testing. GIBBONS was originally sentenced on March 1, 2005, to
64 months and 3 days imprisonment and 3 years of supervised release for the distribution of crack cocaine. In June of 2009, GIBBONS sentence was reduced to time served pursuant to the crack re-sentencing guidelines. GIBBONS was remanded to the custody of the United States Marshal pending designation to a Federal institution.MICHAEL BRIAN MATHENA, age 27 of Clarksburg, West Virginia, was sentenced to 14 months imprisonment for illegal use of controlled substances; failure to report for treatment and testing; failure to follow probation officer’s instructions; and, various state charges. MATHENA was originally sentenced on February 6, 2009, to 36 months imprisonment and 6 years of supervised release for the distribution of cocaine base within
1,000 feet of a protected location. On September 28, 2011, MATHENA’s supervised release was revoked for possession of hydrocodone and testing positive for the use of morphine and codeine. MATHENA was remanded to the custody of the United States Marshal pending designation to a Federal institution.FRANK JACKSON, age 50, of Fairmont, West Virginia, was sentenced to 12 months imprisonment for the unlawful use and possession of cocaine on three separate occasions. JACKSON was originally sentenced on May 28, 2009, to 51 months imprisonment and 3 years of supervised release for the distribution on of cocaine base. On July 24, 2012, JACKSON’s supervised release was revoked after testing positive for the use of cocaine and he was sentenced to 6 months imprisonment and 30 months of supervised release. JACKSON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
RICHARD LEWIS COLEMAN, age 32, of Morgantown, West Virginia, was sentenced to 9 months imprisonment for possession and use of a controlled substance; failure to appear for drug testing; failure to follow probation officer’s instructions; failure to truthfully answer inquiries of probation officer; failure to notify probation officer of change in employment; failure to submit truthful and complete written monthly report; and, failure to report to the probation officer as instructed. COLEMAN was originally sentenced on June 22, 2004, to 77 months imprisonment and 3 years of supervised release for possession of a firearm by a convicted felon. COLEMAN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
WARREN KIP HALL, age 44, of Clarksburg, West Virginia, was sentenced to 4 months imprisonment to be followed by two years of supervised release for testing positive for the use of suboxone; failing to appear for a drug screen; and, failing to attend substance abuse counseling. HALL was originally sentenced on November 8, 2007, to 30 months imprisonment and six years of supervised release for the distribution of cocaine base within 1,000 feet of a housing facility. HALL was remanded to the custody of the United States Marshal pending designation to a Federal institution.
TIMOTHY PAUL ROACH, age 46, of Rivesville, West Virginia, was sentenced to 30 days imprisonment for testing positive for the use of marijuana and a charge of disorder conduct by the Fairmont Police Department. ROACH was originally sentenced on June 28,
2005, to 51 months imprisonment and 3 years of supervised release for being a convicted felon in possession of a firearm. ROACH was remanded to the custody of the United States Marshal pending designation to a Federal institution.The United States was represented at the Clarksburg revocation hearings by Assistant United States Attorneys Shawn A. Morgan, Brandon S. Flower, Zelda E. Wesley and Andrew R. Cogar.
MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
ANTONIO DWAYNE HENDRICKS, age 33, of Martinsburg, West Virginia, was sentenced to 14 months imprisonment to be followed by 38 months of supervised release for failure to report for drug testing; associating with a person engaged in criminal activity; positive drug test for the use of cocaine and marijuana; frequenting places where illegal substances were being used; failure to be truthful with the probation officer; failure to comply with treatment schedule as directed; possession of marijuana and cocaine; excessive use of alcohol; and, submitting an untruthful monthly report form to the probation office. HENDRICKS was originally sentenced on September 23, 2005, to 120 months imprisonment and 5 years of supervised release. On September 25, 2007, HENRICKS’ sentence was reduced to 50 months imprisonment and 5 years of supervised release. On July 12, 2011, HENRICKS’ supervised release was revoked and he was sentenced to 8 months imprisonment and 52 months of supervised release. HENDRICKS was remanded to the custody of the United States Marshal pending designation to a Federal institution.HAROLD JACKSON-JONES a/k/a TERRELL SMITH, age 38, of Winchester, Virginia, was sentenced to 12 months imprisonment to be followed by 24 months of supervised release for simple assault; assault on law enforcement officer; and, resisting arrest. JACKSON-JONES was originally sentenced on June 16, 2006, to 64 months imprisonment and
3 years of supervised release for possession of a firearm by a convicted felon. JACKSON- JONES was remanded to the custody of the United States Marshal pending designation to a Federal institution.GENE FUHRMAN, age 36, of Clear Springs, Maryland, was sentenced to 12 months imprisonment to be followed by 24 months of supervised release for failure to make monthly restitution payments; failure to report to the probation office; failure to report police contact; failure to notify probation office of an address change; brandishing a deadly weapon; and, retaliation against a witness. FUHRMAN was originally sentenced on April 7, 2009, to 21 months imprisonment and 3 years of supervised release for manufacturing methamphetamine. FUHRMAN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
GABRIEL CHRISTOPHER MCGUIRE a/k/a ZIGGY, age 26, of Martinsburg, West Virginia, was sentenced to 12 months imprisonment to be followed by 24 months of supervised release for failure to notify probation office of change of address; being in a residence where suspected heroin was being used; testing positive for the use of drugs; and, being untruthful with probation office on monthly reports. MCGUIRE was originally sentenced on December
10, 2009, to 70 months imprisonment and 3 years of supervised release for the distribution of heroin. On November 1, 2011, MCGUIRE’s sentence was reduced to 37 months imprisonment and 3 years of supervised release pursuant to the crack re-sentencing guidelines. MCGUIRE was remanded to the custody of the United States Marshal pending designation to a Federal institution.DEVONNIE JOSEPH COOPER, age 24, of Charles Town, West Virginia, was sentenced to 5 months imprisonment to be followed by 48 months of supervised release for use of marijuana and cocaine and attempts to alter/fake urine samples. COOPER was originally sentenced on January 29, 2008, to 60 months imprisonment and 48 months of supervised release for possession with intent to distribute cocaine base. COOPER was remanded to the custody of the United States Marshal pending designation to a Federal institution.
JUDY RAE SMITH, age 49, of Martinsburg, West Virginia, was sentenced to 4 months imprisonment to be followed by 18 months of supervised release for testing positive for the use of marijuana and oxycodone. SMITH was originally sentenced on July 15, 2009, to 30 months imprisonment and 3 years of supervised release for the distribution of cocaine base. SMITH, who is free on bond, will self-report to the designated federal institution.
WILLIAM TRAVIS TOLSON, age 31, of Martinsburg, West Virginia, was sentenced to 3 months imprisonment to be followed by 33 months of supervised release for failure to report to the probation office as directed and failure to follow instructions of the probation office. TOLSON was originally sentenced to 20 months imprisonment and 36 months of supervised release for retaliation against a witness. TOLSON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Martinsburg revocation hearings by Assistant
United States Attorney Paul T. Camilletti.The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
East St. Louis Man Pleads Guilty to Filing A False Federal Income Tax ReturnRead the Press Release
Demetrius L. Combs, 22, of East St. Louis, Illinois, pled guilty to the offense of Filing a False Federal Income Tax Return, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offense carries a maximum possible penalty of up to three years in prison. Sentencing is scheduled for July 12, 2013.
“Folks who engaged in this scheme are thieves with computers and electronic forms as opposed to thieves with old-fashioned burglary tools. Whatever their method, whether as a person who crafts the scheme or a person who goes along with it, they should know that they will face prosecution. As I have said before, I will not abide by thieves who pick the public pockets and in that way deprive the citizens of the Southern District of Illinois.” said United States Attorney Wigginton.
Combs admitted as part of the plea that he had a false and fraudulent 2010 federal income tax return prepared by Prime Time Tax Services. 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 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. Following the receipt of the refund check, Leflore, Herron, or another thief escorted the clients to a local check-cashing business, Belleville Quick Stop, located in Belleville. After the client cashed the refund check, the client would pay off Leflore, Herron, or another representative of Prime Time. Leflore and Herron have already been prosecuted and are serving prison sentences for their crimes.
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. Note: To report criminal tax fraud call the I.R.S. Criminal Investigations at (618) 622-2160 or by sending the information to the Internal Revenue Service, Fresno, CA 93888.
District Man Convicted of First-Degree Murder While Armed and Other Charges in Christmas 2009 Attack-Gunshots Killed One Man, Wounded Two Others-Read the Press Release
WASHINGTON – Marlo Garcia, also known as “Lupita,” 24, was found guilty by a jury today of first-degree murder while armed and other charges in a shooting on Christmas Day 2009 that killed one man and wounded two others, U.S. Attorney Ronald C. Machen Jr. announced.
Garcia, of Washington, D.C., was found guilty of the charges following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury convicted him of three counts of assault with intent to kill while armed and related weapons offenses. The Honorable Ronna L. Beck scheduled sentencing for June 21, 2013.
According to the government’s evidence, on Dec. 25, 2009, Garcia was invited by his friend, Miguel Romero, to attend a Christmas party at about 4 a.m. at a rooming house in the 5400 block of Fourth Street NW. Garcia brought a .25-caliber handgun to the location, and while there, he went out in an alley to shoot it. When told to stop, he became agitated.
Garcia then went inside the residence and began dancing and groping his friend’s girlfriend. Mr. Romero’s cousin approached Garcia to calm him, and Garcia shot him in the head. He then shot the girlfriend in the head and shot Mr. Romero in the back, neck and head. Garcia then fired yet another shot but missed a fourth person at the apartment. Mr. Romero, 21, died immediately. The other two shooting victims still have bullets lodged in their brains.
After shooting the victims, Garcia fled the apartment. He was arrested two days later.
In announcing the verdict, U.S. Attorney Machen praised the work of the detectives, officers, and mobile crime scene officers from the Metropolitan Police Department (MPD) who investigated the case. He also acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Kate Rakoczy, Paralegal Specialist Kelly Blakeney, and Melissa Milam, Iris Vega, Marcy Rinker, Laverne Forrest, Michael Hailey, Katina Adams and David Foster, all of the Victim Witness Assistance Unit. Finally, he commended the work of Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
13-108Cullman Car Dealer Indicted for Violating Legal Protections for Active-Duty Service MembersRead the Press Release
BIRMINGHAM – A federal grand jury Wednesday indicted a Cullman used car dealer for violating federal protections for active-duty military service members by refusing to reduce the loan interest rate and repossessing the vehicle he sold to a man who was later deployed overseas with the Alabama National Guard, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A two-count indictment filed in U.S. District Court charges CARL RALPH NUSS, 75, with violating the Servicemembers Civil Relief Act. The act restricts or limits civil actions in the areas of financial management, including rental agreements, security deposits, evictions, installment contracts, credit card interest rates, mortgages, civil judicial proceedings and income tax payments, against service members called to active duty.
Nuss, owner of North Alabama Wholesale Autos in Cullman, sold a 2002 Ford Sport-Trac in February 2011 to the 22-year-old man. The dealership sold the vehicle for $9,746 and, after a $2,200 down payment, financed the balance at 25 percent interest per year, according to the indictment.
In May 2012, the Guardsman, a private first class, was called to active duty in Afghanistan. In July 2012, according to the indictment, Nuss received a letter from the Guardsman requesting that the dealership reduce the interest rate on his car loan from 25 percent to 6 percent, as required by the act. Nuss never reduced the interest rate and, two days after receiving the letter, hired two men to repossess the guardsman’s truck. The two men repossessed the vehicle without a court order, in violation of the Servicemembers Civil Relief Act, the indictment says.
The maximum penalty for each count is one year in prison and a $100,000 fine.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
Convenience Store Owner Charged with Food Stamp FraudRead the Press Release
PITTSBURGH - An owner of a local retail food store has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud and food stamp fraud, United States Attorney David J. Hickton announced today.
Emile Bizimungu, owner and operator of Dollar Grocery, formerly located on Brownsville Road, Mt. Oliver Borough, was indicted on March 27, 2013, on six counts of wire fraud and 16 counts of food stamp fraud.
According to the indictment presented to the court, the defendant's retail store participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the Food Stamp Program. Food stamp recipients could purchase eligible food items using food stamp benefit cards at the defendant's retail store. As a condition of participation in the Food Stamp Program, the defendant certified that he would comply with all rules and regulations of the program and was aware that program rules strictly prohibit the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, the defendant exchanged food stamp benefits for cash on a discounted basis, usually giving the customers only 50 cents on the dollar for their food stamp benefits. The defendant also permitted food stamp customers to purchase ineligible items with food stamp benefits and accepted food stamp benefits as payment on credit accounts and loans.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting these cases on behalf of the government.
The Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Chicago Man Sentenced to Federal Prison for Iowa Crack ConspiracyRead the Press Release
A man who conspired to distribute crack cocaine was sentenced March 26, 2013, to more than 14 years in federal prison.
Christopher Ward-Malone, 23, from Chicago, Illinois, received the prison term after an October 29, 2012, guilty plea to conspiracy to distribute crack cocaine.
At the guilty plea, Ward-Malone admitted to conspiring to distribute more than 280 grams of crack cocaine from about 2010 through June 2012. Ward-Malone would obtain crack cocaine from sources in Sioux City, Iowa, and Omaha, Nebraska, and then distribute the crack cocaine to individuals in Sioux City, Iowa.
Ward-Malone was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Ward-Malone was sentenced to 170 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ward-Malone is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4068.
Career Offender Sentenced to 10 Years in Federal Prison for Conspiracy and Possession with the Intent to Distribute OxycodoneRead the Press Release
PROVIDENCE, R.I. – Audi Pineda, 39, of Pawtucket, a career offender, was sentenced on Wednesday in U.S. District Court to 120 months in federal prison, having been convicted by federal court jury on October 18, 2012, of conspiracy to distribute and possess with the intent to distribute oxycodone, and possession with the intent to distribute oxycodone.
The sentence was announced by United States Attorney Peter F. Neronha; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England Field Division; and, Pawtucket Police Chief Paul King.
During a two-day trial, the government presented evidence to a jury that on August 11, 2011, Pawtucket Police detectives and agents from the DEA Drug Task Force conducted court authorized searches in Pawtucket of a barber shop where Pineda was employed and of his residence.
At the barber shop, a total of 33 oxycodone pills and three cell phones were seized from Pineda and from his work station. A search of Pineda’s residence resulted in the discovery of a hidden compartment built into a basement wall which contained more than twelve grams of cocaine. In a separate location in a wall near a basement bathroom agents discovered a plastic bag containing $36,000 in U.S. currency.
The government also presented evidence to the jury of several cell phone text message conversations between Pineda and others on the cell phones seized which detailed drug dealing activities by Pineda.
The jury acquitted Pineda of one count of possession with the intent to distribute cocaine.
At sentencing, U.S. District Court Judge John J. McConnell ordered Pineda to serve three years of supervised release upon completion of his prison term.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
Contact: 401-709-5357
[email protected]Canton, Texas Police Officer Arrested for Drug ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 32-year-old Canton, Texas Police Officer has been arrested for federal drug violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Melvin Bradshaw was indicted by a federal grand jury on Mar. 27, 2013 and charged with six counts of acquiring a controlled substance by misrepresentation. Bradshaw was arrested this morning and went before U.S. Magistrate Judge Judith Guthrie this afternoon for an initial appearance.
According to the indictment, on six separate occasions from January to November 2012, Bradshaw is alleged to have used his position as a police officer to obtain hydrocodone by fraud, deception or misrepresentation. Bradshaw is alleged to have acquired the hydrocodone from individuals who had legitimate prescriptions to possess the substance.
If convicted, Bradshaw faces up to four years in federal prison on each charge.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Alan Jackson.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Braintree Man Pleads Guilty to Using Stolen Credit CardsRead the Press Release
BOSTON – A Braintree man was convicted today of stealing credit cards from a mail-sorting facility and using them to commit fraud.
Gerald K. Acholonu, 32, pleaded guilty before United States District Judge Richard G. Stearns to credit card fraud and theft of mail. Sentencing is scheduled for June 25, 2013. Acholonu faces between 48 and 57 months in prison, followed by three years of supervised release, restitution, forfeiture, and a fine.
From August 2010 through May 2011, Acholonu worked for a contractor that sorted mail for the U.S. Postal System. In late April 2011, Acholonu was spotted leaving his employer’s restroom with a tray of U.S. mail. Investigators then searched the trash from his residence and found 11 stolen Discover credit cards and evidence that Acholonu was using or planning to use the Discover customers’ identities by setting up telephone accounts in their names. In his plea agreement, the parties agreed that all told, there were more than 250 victims and the loss totaled between $400,000 and $1 million.
United States Attorney Carmen M. Ortiz; Kevin Niland, Postal Inspector in Charge of the U.S. Postal Inspection Service; and Rafael Medina, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Boston Field Office, made the announcement today. The case is being prosecuted Scott L. Garland and Eric Christofferson, respectively of Ortiz's Cybercrimes and Economic Crimes Units.
Baytown Man Sent to Federal Prison for Massive Ponzi SchemeRead the Press Release
HOUSTON – Richard M. Plato, 65, of Baytown, has been ordered to federal prison for nearly 20 years following his convictions on several counts in relation to a mail and securities fraud conspiracy, United States Attorney Kenneth Magidson announced today. A federal jury convicted Plato on Sept. 24, 2012, after approximately four hours of deliberation and 10 days of trial.
Plato was subsequently convicted on one count of and five counts of mail fraud. Today, U.S. District Judge David Hittner, who presided over the trial, handed Plato the 235-month sentence. At the hearing today, the government detailed some of Plato’s previous offenses that have occurred over the past 24 years, and stated he stole money from investors in this case and spent it on “wine, women and song.”
In handing down the sentence, Judge Hittner noted that Plato had already committed three massive, multi-million dollar frauds before the one with which he was sentenced today. He read from some of the victims’ statements detailing the consequences Plato’s actions have had on them. One noted that senior citizens like him had used their savings to try to provide some comfort, but now have to modify their standard of living, while Plato continued to live his opulent lifestyle. Another stated that he had hoped to provide for his grandson’s education, but now that money is gone. He added that while this may have been short-term for Plato, the impact on his family and other victims carries life-long consequences.
Judge Hittner ordered Plato to pay restitution in the amount of $3,051,000.74. He will also be on supervised release for three years following completion of his prison term.
Plato owned and controlled Momentum Production Corporation in Baytown.
The Texas State Securities Board (TSSB) began investigating Plato in the fall of 2008 following several complaints by investors with Momentum. Investors from several states reported purchasing securities from Momentum, only to have Momentum default on the notes. The TSSB referred the matter to the United States Postal Inspection Service (USPIS) in 2010.
Evidence at trial indicated Plato had been convicted of fraud on three other occasions, once each in Texas, Florida and Louisiana. At the time the securities were sold, Plato was on supervised release and owed almost $30 million in restitution.Following his release from federal prison in 2002, Plato began acquiring various oil and gas interests in South Texas. Sometime thereafter, Plato formed Momentum and began directly and indirectly soliciting vulnerable persons throughout the United States to purchase promissory notes. Several of those investors testified at trial and described how they were assured of the investment’s safety, promised a high rate of return and told that the notes were secured by the oil and gas interests in South Texas. Although the notes were advertised as securities, they were never registered with any federal or state agency. Between June 2005 and December 2006, Plato sold more than $6 million worth of notes.
During the sale of these funds, Plato made various material misrepresentations and omissions, failing to disclose his criminal convictions and outstanding restitution obligations. In fact, Plato told investors the oil and gas collateral was owned “free and clear” of any claims, liens or other encumbrances and that, in the event of default in a particular fund, Momentum would substitute collateral from other funds to ensure payment. This was never done.Agents testified that Plato made periodic payments on the notes to keep his investors satisfied, using the money of other investors and the operating income from the various oil and gas interests. In 2006, however, those interests evidently stopped generating their projected income. At the same time, Plato and his associates were spending millions of dollars that should have been paid to investors. Momentum soon began defaulting on the notes.
The money trail shows that, in total, Plato received approximately $6.2 million from investors. Of this amount, approximately $2 million was diverted to Plato’s benefit.Plato will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the U.S. Postal Inspection Service with the invaluable assistance of the Texas State Securities Board. Assistant United States Attorney (AUSA) Sharad Khandelwal and Former AUSA F. Andino Reynal prosecuted the case.
Bank Vice President Sentenced to 18 Months in Prison for Embezzling over $600,000Read the Press Release
Obtained 20 Fraudulent Loans by Forging Signatures of Bank Officials and Concealed the Loans by Manipulating Bank RecordsBaltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Wanda Henderson, age 56, of Westover, Maryland, today to 18 months in prison, followed by five years of supervised release, for embezzlement by a bank employee. Judge Hollander also ordered Henderson to pay restitution of $456,665.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to Henderson’s plea agreement, she was the Vice-President and Executive Assistant to the President of Hebron Savings Bank and had access to the Bank’s vault, the computer system and the Bank’s loan files.
Beginning in approximately 2005, and continuing until April, 2011, Henderson embezzled money from the bank by creating fraudulent loan applications and fraudulent loan and line of credit accounts at the bank in her name and in the names of family members. Henderson forged the signatures of various bank officials, including the President, as the approving loan officer on the applications. Henderson also forged the initials of other bank employees on paperwork that authorized the transfer of the loan proceeds into Henderson’s personal checking account or the checking account of a family member.
Henderson concealed the fraudulent loans from bank officials by manipulating and changing data in the bank records. In particular, Henderson altered the origination dates for the fraudulent loans so that they did not appear on the monthly New Loan Reports and removed the fraudulent loans from the bank’s quarterly Large Borrowers’ Reports.
As the loans became due, Henderson obtained new fraudulent loans by again creating accounts in the bank computer system and forging approval signatures of other bank officials. By using the proceeds from the new loans to pay off the previous loans, Henderson was able to continue the scheme until April 2011.
Henderson obtained 20 fraudulent loans for herself or for members of her family by forging signatures and manipulating bank records. The total unpaid principal balance on the fraudulent loans is $682,236.77 and of that amount, over $456,000 has gone into default.
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 the FBI for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Kathleen O. Gavin, who prosecuted the case.
Alleged Bank Robber ChargedRead the Press Release
Jayme Dinan, 29, of Philadelphia, Pennsylvania was charged today by Indictment with two counts of bank robbery, announced United States Attorney Zane David Memeger.
In criminal cases If convicted the defendant faces a maximum possible sentence of 40 years imprisonment, a $500,000 fine, a three year period of supervised release, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Joseph A. LaBar.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525
Wednesday 27 March 2013
Wyoming Man Indicted for Violent AssaultRead the Press Release
United States Attorney Christopher A. Crofts announced today that Bryson Brown of the Wind River Indian Reservation appeared in Federal Court after having been indicted in a four (4) count Indictment charging him with one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm, one count of Assault Resulting in Serious Bodily Injury and two counts of using and carrying a firearm during and in relation to a crime of violence, in connection with a domestic violence incident. The charges carry a maximum penalty of ten years to life imprisonment and a fine of not more than $1,000,000.00. An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
Woman Charged with Theft of Government PropertyRead the Press Release
A grand jury returned a five-count indictment charging Danette M. Stevenson, 37, with two counts of theft of government property and three counts of making false statements, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Stevenson stole and converted to her own use, approximately $38,130.63 in Social Security payments made to her that she was not entitled to receive.
The indictment further alleges that Stevenson stole and converted to her own use approximately $14,156.00 in Housing Choice Voucher Program (commonly referred to as Section 8) benefits that she was not entitled to receive.
The indictment further alleges that Stevenson made false statements in connection with applications for Social Security and Housing benefits.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi and Trial Attorney Richard T. Hamilton, Jr., following investigation by agents of the Social Security Administration, Office of Inspector General and the United States Department of Housing and Urban Development, Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Two Iowa Men Plead Guilty to Robbery Conspiracy and Gun ChargesRead the Press Release
Two Iowa men who conspired to rob a South Sioux City, Nebraska, business pled guilty March 26, 2013, in federal court in Sioux City.
Terrence Miles, age 20, from Sioux City, Iowa, and Austin Peters aka Austin Stadler, age 19, from Nemaha, Iowa, were each convicted of one count of conspiracy to commit robbery, one count of possessing a short-barreled rifle, and one count of possessing a firearm in furtherance of a crime of violence.
Information presented by the United States at the plea hearing revealed that on or about June 19, 2012, Miles and Peters and others met to plan the robbery of Seoul Foods, in South Sioux City, Nebraska. Miles, Peters and others acquired firearms and other weapons in furtherance of the robbery in Sioiux City, Iowa. One of these firearms was a weapon made from a rifle with a modified overall length of less than 26 inches. They traveled with the firearms and other weapons from Sioux City, Iowa, to South Sioux City, Nebraska. Miles and Peters entered, surveilled and left Seoul Foods. Miles and others entered an additional time, to rob the store, with Peters serving as lookout and getaway driver during the robbery.
Miles and others removed money and property from Seoul Foods, and then traveled to Sioux City, Iowa, after the robbery, and divided the stolen goods and money in Sioux City.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Miles and Peters remain in custody of the United States Marshal pending sentencing. On the conspiracy to commit robbery charge, Miles and Peters each face a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment. On the possession of a short-barreled rifle charge, Miles and Peters each face 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment. On the charge of possession of a firearm in furtherance of a crime of violence, Miles and Peters each face a mandatory minimum sentence of 10 years up to life imprisonment without the possibility of parole, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment which must be served consecutive to any other sentence.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4083.
This case was investigated by officers of the Sioux City, Iowa, Police Department and the South Sioux City, Nebraska Police Department. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Two Indicted on Charges Related to the Manufacture and Transfer of Fraudulent Identification DocumentsRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Antonio Abraham Cruz-Cruz, age 26, a Mexican citizen residing in Adelphi, Maryland; and Henry Ramos Agustin, age 37, a Guatemalan citizen residing in Cambridge, Maryland, on charges relating to the sale and transfer of fraudulent identification documents. The superseding indictment was returned on March 20, 2013, and unsealed today upon the arrest of the defendants. In addition to making the arrests, Special Agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations executed six search warrants were today at locations connected to the defendants.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“Document fraud poses a threat to national security and puts the security of our communities at risk because it creates a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in the United States,” said HSI Baltimore Special Agent in Charge William Winter. “This investigation resulted in the arrest and indictment of an alleged document mill leader and co-conspirator operating out of Maryland. Homeland Security Investigations will move aggressively to investigate and bring to justice those who potentially compromise the integrity of America's legal immigration system.”
The 13-count indictment alleges that from October 17, 2012 through February 19, 2013, Cruz-Cruz and Agustin conspired to manufacture and transfer fraudulent identification documents. According to the indictment, Cruz-Cruz manufactured documents, including permanent resident cards and social security cards, which he sold to customers, and which he provided to Agustin for sale to customers. The indictment alleges that the defendants solicited and took orders for false identification documents from customers who provided the defendants with photographs and personal information. Agustin allegedly provided the photographs and personal information to Cruz-Cruz, who manufactured the requested fake documents, which he then delivered to Agustin in exchange for a portion of the sales price. The indictment alleges that Cruz-Cruz sold such manufactured fake documents to his own customers as well.
The defendants face a maximum sentence of 15 years in prison for the conspiracy and for each count of transfer of false identification documents; 10 years in prison for each count of fraud and misuse of immigration documents; five years in prison for each count of social security number fraud; and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. An initial appearance and arraignment was held today in U.S. District Court in Baltimore. Cruz-Cruz and Agustin are detained pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and HSI Resident Agent in Charge Ocean City for their work in the investigation and thanked the Anne Arundel County Police Department and Baltimore County Police Department for their assistance in executing today’s search warrants. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who is prosecuting the case.
Twin Buttes Man Sentenced for Possession of Firearm & Ammunition by Convicted FelonRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on March 27, 2013, Justin Linder, 25, Twin Buttes, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of firearm and ammunition by a convicted felon. Linder pleaded guilty to the charge on Nov. 15, 2012.
Judge Hovland sentenced Linder to serve three years and two months in federal prison, to be followed by three years of supervised release. Linder was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On Dec. 31, 2011, Linder was stopped for a traffic offense by an officer with the Dickinson Police Department. After Linder was unable to show proof of insurance, during a pat down, the officer found a gun magazine in Linder’s pocket. At that point, Linder resisted the officer, was able to get back in the car and drive away. After a high speed chase, Linder was able to elude law enforcement. Linder was apprehended later that day. The car was also located later that day, stuck in a ditch.
During the initial stop, Linder’s mother was in the car. She got out before he fled and gave a statement to the police that Linder had a 9mm handgun and gun magazines in the car. On Jan. 3, 2012, law enforcement was able to locate a 9mm handgun in an area between where Linder’s car was last seen and later located. The gun had a magazine and round chambered.Linder was prohibited from possessing either a firearm or ammunition by virtue of his previous felony convictions for possession of a firearm with an obliterated serial number, in federal court in 2007, and burglary, in Cass County District Court, in 2008.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Dickinson Police Department and the Stark County Sheriff’s Office.
Assistant U.S. Attorney David Hagler prosecuted the case.
Trio Charged in Cocaine ConspiracyRead the Press Release
Kenny Martinez, 25, Richard Thomas Moore, 28, both of Philadelphia, and Fernando Martinez, 33, of Ponce, Puerto Rico, are charged in a one-count indictment, filed today, with conspiracy to distribute 500 grams or more of cocaine, announced United States Attorney Zane David Memeger. The indictment alleges that between March 5, 2013 and March 7, 2013, the defendants orchestrated the delivery, by express mail, of approximately one kilogram of cocaine. The package was sent from Ponce, Puerto Rico to Moore’s Philadelphia address where Fernando Martinez allegedly accepted it. It is further alleged that Moore then delivered the package to 4625 Boudinot Street. The mail parcel was interdicted from the mail by United States Postal Inspectors on March 6, 2013, in Philadelphia, Pennsylvania.
If convicted, Fernando Martinez and Richard Thomas Moore each face a maximum penalty of 40 years imprisonment, a mandatory minimum term of 5 years imprisonment, at least 4 years supervised release, and a fine of $5,000,000. Kenny Martinez faces a maximum penalty of life imprisonment, a mandatory minimum term of 10 years imprisonment, at least 8 years supervised release, and a fine of $10,000,000.
The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Trial Date Set for Carbon Cliff Man Charged with Sexual Exploitation of A MinorRead the Press Release
Rock Island, Ill. — Daniel William Becker, Jr., 21, of Carbon Cliff, Ill., appeared in federal court today for arraignment on an indictment charging him with a single count of sexual exploitation of a minor on or about Sept. 13, 2012. The indictment, returned by the grand jury on Mar. 20, 2013, also seeks the criminal forfeiture of Becker’s computer, cell phone, and his residence in Carbon Cliff, alleging that said items were used in the commission of the alleged offense. Becker entered a plea of not guilty and the case was set for jury trial on May 20, 2013.
Becker was previously arrested and charged with the same offense in a criminal complaint on Mar. 4, 2013. At a hearing on Mar. 6, U.S. District Court Judge Sara Darrow ordered that Becker be detained in the custody of the U.S. Marshals Service pending trial.
The affidavit filed in support of the complaint alleges that Becker blackmailed minor females via online social networking websites into sending him photographs and videos of the girls engaged in sexually explicit acts. According to the affidavit, Becker threatened the girls by informing them that he would publicly post compromising photographs of the girls online unless the girls produced and sent additional photographs to him.
If convicted, the statutory penalty for sexual exploitation of a minor in the production of child pornography is not less than 15 years in prison and up to 30 years in prison. The offense also carries a term of supervised release of up to life following any term of imprisonment.
The charge is the result of an investigation by the U.S. Secret Service’s Quad Cities Cyber-Crime Unit and the Moline Police Department. Assistant U.S. Attorney Kirk W. Schuler is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Three Plead Guilty to False Tax Refund SchemeRead the Press Release
MINNEAPOLIS— As Tax Day approaches, the United States Attorney’s Office reminds people be cautious of suspicious tax preparers. Earlier today in federal court, a Minnesota woman pleaded guilty to being part of a conspiracy to filing false tax returns to generate inflated refunds. Tameca Stokes specifically pleaded guilty to one count of conspiracy to defraud the United States. Stokes, who was indicted along with two co-defendants on January 15, 2013, entered her plea before U.S. District Court Judge Joan N. Ericksen.
Yesterday, co-defendant Soloman Frank-Sawari also pleaded guilty to one count of conspiracy, and on March 19, 2013, co-defendant Chasma Dixon did the same. The trio admittedly obstructed the Internal Revenue Service (“IRS”) and the State of Minnesota in their lawful collection of income taxes by falsifying hundreds of tax returns. All three admitted that the tax loss due to the conspiracy was between $80,000 and $200,000.
In their plea agreements, the three defendants admitted that from 2007 through 2010, they conspired with each other and others to prepare fraudulent tax returns for customers of Frank-Sawari’s tax preparation services, Merit Tax Service of Robbinsdale and Capitol Income Tax of Minneapolis. The returns generated inflated refunds for their customers and fees and other payments for themselves and others. The co-defendants admitted that on the returns, they provided false income and dependent information, among other things. They also instructed their customers to sign false income declarations and other paperwork to substantiate the fraudulent returns.
According to the IRS, approximately 60 percent of taxpayers use tax professionals to prepare and file their tax returns, with these paid preparers now collectively responsible for more than 80 million individual tax returns annually. “Tax return preparer fraud” is one of the IRS’s “Dirty Dozen Tax Scams.” For more information about the fight against tax fraud or how to choose a reliable tax return preparer, visit http://www.irs.gov/uac/Tips-for-Choosing-a-Tax-Return-Preparer.
For their crimes, the defendants in this case each face a potential maximum penalty of five years in federal prison. Judge Ericksen will determine their sentences at a future hearing, yet to be scheduled. This case was investigated by the IRS-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney William J. Otteson.
Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.