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30 April 2013
Philadelphia Woman Sentenced for Illegally Collecting Her Dead Relative's BenefitsRead the Press Release
PHILADELPHIA - Beverly Brooker, 65, of Philadelphia, PA was sentenced today to 12 months and one day in prison for a scheme to collect Retirement Insurance Benefits intended for her deceased great aunt. Brooker pleaded guilty on November 7, 2012 to theft of government funds and Social Security representative payee fraud. Brooker concealed her great aunt’s death from the Social Security Administration by becoming representative payee for her aunt and submitting yearly false declarations to the Social Security Administration to account for how she “spent” the money on her great aunt. For each month of her fraud, which spanned from her aunt’s death in January 1992 until her fraud was discovered in the summer of 2012, Brooker received a check by mail that she then cashed and used to her own benefit. Her fraud resulted in a loss to the government of approximately $261,653.00.
In addition to the prison term, U.S. District Court Judge Legrome Davis ordered restitution in the amount of $261,653, a $200 special assessment, and three years of supervised release.The case was investigated by the Social Security Administration Office of Inspector General, and the United States Postal Inspection Service. It was prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pair Sentenced for Removing Copper from Radio TowersRead the Press Release
Two people were sentenced for the malicious destruction of federally-licensed communications lines, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Thomas M. Carbone, 28, of North Royalton, was sentenced to 27 months in prison while Katie M. Stanton, 23, of Cleveland, was sentenced to eight months under house arrest. They were ordered to pay $10,971 in restitution.
On or about August 17 to 18, 2012, Carbone and Stanton unlawfully entered the property of Radio One on Ridge Road in North Royalton, Ohio, and willfully and maliciously destroyed and removed copper material from four radio-station towers situated on the property, according to court documents.
This unlawful removal of copper depleted the signal strength of the supported radio station, thereby impeding the station’s ability to broadcast emergency messages, according to court docuements.
This case is being prosecuted by Assistant United States Attorneys Thomas E. Getz and M. Kendra Klump. The case was investigated by the Cleveland Division of the Federal Bureau of Investigation and the North Royalton Police Department.
Owner of Investment Firm Is Charged with Securities Fraud for Orchestrating A $4.7 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – The owner of a North Carolina investment firm has been charged with securities fraud for orchestrating a Ponzi scheme that solicited victims to invest millions in the foreign currency market (“FOREX”), announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
North Carolina Secretary of State Elaine F. Marshall and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division join U.S. Attorney Tompkins in making today’s announcement.
On April 18, 2013, a federal criminal indictment charged James H. Mason, 66, of Graham, N.C., with one count of securities fraud in connection with a $4.7 million foreign currency Ponzi scheme. According to allegations contained in the indictment, beginning in 2010 and continuing through March 28, 2013, Mason executed the Ponzi scheme by inducing victims to invest with his investment companies, JHM Forex Only Pool and Forex Trading at Home Association, and other related entities, for the supposed purpose of investing in Over-the-Counter (“OTC”) foreign currency exchange.
The indictment alleges that Mason engaged in a scheme and artifice to defraud victims by making a series of false and fraudulent representations, omissions of material facts and deceptive half-truths. Specifically, Mason falsely claimed to victims that he had over 35 years of experience in commodity futures and options trading, when in fact, Mason had no such experience at all, according to the indictment. Also, Mason lulled his victims into a false sense of security by falsely projecting substantial returns of their investments. Mason solicited at least 500 victims to invest over $4.7 million. According to allegations in the indictment, rather than investing it as promised, Mason simply deposited victim money into various bank accounts he controlled and used a substantial amount of investor money to pay for personal and business expenses, real estate, cars and other expenses unrelated to any foreign exchange. In addition, the indictment alleges that Mason diverted most of the rest of his victims’ money to make “Ponzi” payments to other victims.
The criminal indictment also alleges that, throughout the course of this scheme, Mason put only a portion of investor money into foreign currency exchange. According to allegations contained in the indictment, Mason lost essentially all the money he did invest while conducting FOREX trading, thus losing even the minority of funds that he did trade. Mason failed to disclose his actual trading results to his victims, and instead made false oral representations and provided bogus statements to clients, fraudulently reporting profits. The indictment alleges that in order to induce individuals to further invest in his fraudulent foreign currency commodity pool, Mason established a website so that investors could access their accounts online. These online investor accounts depicted that investors were making money through successful FOREX trading and had, in many cases, significant amounts of money in their accounts. As alleged in the indictment, profits stated on individual investor accounts were false and, in many cases, there was no actual money in the victims’ accounts.
Mason has been in local federal custody since April 15, 2013. He has been charged with one count of securities fraud which carries a maximum prison term of 20 and a $5 million fine, plus restitution to investor victims of the scheme.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the North Carolina Secretary of State, Securities Division with assistance from the FBI, Charlotte Division. U.S. Attorney Tompkins also acknowledges the invaluable assistance of the Commodities Futures Trading Commission in this case.
The prosecution is being handled by Special Assistant United States Attorney Kevin M. Harrington and Assistant U.S. Attorney Kurt W. Meyers of the Western District of North Carolina.
Mr. Harrington is an Enforcement Attorney with the North Carolina Department of Secretary of State, Securities Division, and was appointed to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte in September 2011. The SAUSA position is reflection of the partnership between the North Carolina Securities Division and the United States Attorney that helps ensure the effective and vigorous prosecution of white collar criminals, particularly in the area of securities fraud.
The President’s Financial Fraud Enforcement 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. For more information on the task force, visit www.stopfraud.gov.
Ojo Encino, N.M., Man Pleads Guilty to Using a Firearm During an AssaultRead the Press Release
ALBUQUERQUE – Permanuel Castillo, 22, an enrolled member of the Navajo Nation who resides in Ojo Encino, N.M., pleaded guilty this morning to using a firearm during a crime of violence, an assault with a dangerous weapon which resulted in serious bodily injury, under a plea agreement with the U.S. Attorney’s Office.
Castillo pled guilty to a charge arising out of the Sept. 27, 2012 shooting of his girlfriend. According to court filings, on that day, New Mexico State Police officers responded to a call regarding a shooting at Castillo’s Ojo Encino residence, which is located on the Navajo Indian Reservation. During questioning, Castillo initially claimed that his girlfriend had been the victim of a drive-by shooting. After further questioning, Castillo admitted shooting the victim multiple times in the chest but claimed that it was an accident. Castillo was arrested on tribal charges by officers of the Navajo Division of Public Safety and held in tribal custody.
Castillo was arrested on federal assault charges on Oct. 24, 2012, and has been in federal custody since that time. Castillo subsequently was charged in a three-count indictment with (1) assault with a dangerous weapon, (2) assault resulting in serious bodily injury, and (3) use of a firearm during a crime of violence.
During this morning’s proceedings, Castillo pled guilty to Count 3 of the indictment, charging him with using a firearm during a crime of violence, and admitted assaulting the victim by shooting her with a rifle. As a result of the assault, the victim sustained three gunshot wounds to the chest.
Castillo remains in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Castillo faces a ten year prison sentence to be followed by not more than three years of supervised release. Counts 1 and 2 of the indictment will be dismissed after Castillo is sentenced.
This case was investigated by the Albuquerque office of the FBI, the Crownpoint office of the Navajo Nation Division of Public Safety and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.Ocean County, N.J., Attorney Admits Income Tax Evasion and Failing to Pay Payroll TaxesRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., attorney admitted today to evading federal income taxes, after hiding assets in an attorney trust account in his wife’s name when he was already in debt to the IRS, U.S. Attorney Paul J. Fishman announced.
Lee Gottesman, 57, of Toms River, N.J., entered his guilty plea to two counts of the Indictment against him – federal income tax evasion and failing to pay payroll taxes for the employees of his law firm – before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in the case and statements made in court:
At the time he committed the crimes, Gottesman operated a law firm in Toms River, where he employed two other attorneys and a legal secretary. In 2002, the IRS filed a levy on Gottesman’s assets because of unpaid taxes. Gottesman then opened a sub-account, within his attorney trust account, in the name of his wife. His wife had never been a legal client of his.
Gottesman ran nearly all of his personal and business expenses through the account, closing all other business and personal accounts held in his name. His payments from the account included more than $90,000 in mortgage payments for his home; more than $17,000 in household expenses, including maintenance on his pool, landscaping services and construction costs; and thousands of dollars in other personal expenses, such as life insurance premiums, auto body repair work and personal credit card payments. The scheme allowed Gottesman to avoid paying personal income taxes on the hidden income.
Gottesman also withheld payroll and other taxes from his employees’ pay, but never filed the required forms or turned the withheld payments over to the IRS.
Gottesman specifically admitted he did not pay all his personal income taxes owed for 2006 or payroll taxes for 2009, but will be responsible for paying all taxes owed from 2006 to the present.
The tax evasion and payroll tax counts to which Gottesman pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 21, 2013.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Salvatore Alfano Esq., Bloomfield, N.J.Gottesman, Lee Indictment
New York Woman Sentenced for Scheme to Defraud Consumer Product ManufacturersRead the Press Release
A New York woman was sentenced to 19 months in prison today for her role in a scheme to defraud consumer product manufacturers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Southern District of Indiana.
Dina Wein Reis, 49, was sentenced by U.S. District Judge Jane E. Magnus-Stinson in the Southern District of Indiana and ordered to pay restitution of $5,678,190 and a fine of $1 million.
Reis pleaded guilty on May 19, 2011, to a criminal information charging her with one count of conspiracy to commit wire fraud.
According to plea documents, between June 2003 and July 2006 Reis owned and operated a marketing business based in New York and used fraudulent means to obtain consumer goods at discounted prices from manufacturers and distributors of consumer products. Participants in the scheme “cold-called” executives at large consumer product companies to solicit their products, falsely promising that if each manufacturer sold its products to Reis, the products would be distributed to a variety of outlets that were typically difficult for these manufacturers to reach on their own. The scheme included a marketing venture called the “Goody Pak Program,” which distributed products free of charge to schools for school fundraisers and helped generate marketing information for these manufacturers.
Reis admitted that she negotiated a discount from the manufacturers based on the possibility of future profitable business for the manufacturers arising from her marketing efforts when, in fact, she made few efforts and sold the majority of the products to wholesalers for a profit. As a result, a manufacturer in Indiana lost $180,000, and a Missouri manufacturer lost $500,000. Reis also agreed through her plea agreement to make restitution to manufacturing companies not specifically named in the information.
The cases were investigated by the FBI and the U.S. Marshals Service. The cases were prosecuted by Trial Attorney Matthew Klecka of the Criminal Division’s Asset Forfeiture and Money Laundering Section, formerly a Trial Attorney in the Division’s Fraud Section, and Assistant U.S. Attorney Winfield Ong of the Southern District of Indiana.
New York Man Pleads Guilty in Massachusetts to Theft of Government Property and Money Laundering in Stolen Identity Refund Fraud SchemeRead the Press Release
Odalis Castillo-Lopez, 41, a citizen of the Dominican Republic and a resident of New York, pleaded guilty today to theft of government property and money laundering in connection with a scheme to cash U.S. Treasury tax refund checks fraudulently obtained using the stolen identities of Puerto Rican residents. The guilty plea was announced by the Justice Department, the Internal Revenue Service – Criminal Investigation (IRS-CI), Homeland Security Investigations and the U.S. Secret Service.
At a hearing before U.S. District Court Chief Judge Patti B. Saris in the District of Massachusetts, Castillo pleaded guilty to theft of government property and money laundering. According to the documents filed in this case, the criminal conduct involved the attempted negotiation of U.S. Treasury income tax refund checks obtained in the name of stolen identities. Castillo faces a maximum potential sentence of 10 years in prison and a fine of up to $250,000 for the theft of government property charge, and a maximum of 20 years in prison and a fine of up to $500,000 for the money laundering charge. Sentencing is scheduled for May 30, 2013.
This investigation was conducted jointly by IRS-CI, Homeland Security Investigations and the U.S. Secret Service in Boston. The prosecution is being handled by Senior Litigation Counsel Corey J. Smith of the Justice Department’s Tax Division.
Related Materials:
United States v. Odalis Castillo-Lopez
Indictment (PDF)
New York Man Pleads Guilty to Theft of Government Property and Money Laundering in Stolen Identity Refund Fraud SchemeRead the Press Release
BOSTON – A New York man pleaded guilty today to theft of government property and money laundering in connection with a scheme to cash U.S. Treasury tax refund checks fraudulently obtained using the stolen identities of Puerto Rican residents.
Odalis Castillo-Lopez, 41, a citizen of the Dominican Republic and legal permanent U.S. resident, pleaded guilty before U.S. District Court Chief Judge Patti B. Saris to theft of government property and money laundering. According to the documents filed in the case, the criminal conduct involved the attempted negotiation of U.S. Treasury income tax refund checks obtained in the name of stolen identities.
For the theft of government property charge, the statutory maximum penalty is 10 years in prison and a fine of up to $250,000. The statutory maximum penalty for the money laundering charge is 20 years in prison and a fine of up to $500,000. Chief Judge Saris scheduled sentencing for May 30 at 9:30 a.m.
United States Attorney Carmen M. Ortiz; Kathryn Keneally, Assistant Attorney General for Tax Division; William Offord, Special Agent in Charge of U.S. Internal Revenue Service Criminal Investigations; Bruce M. Foucart, Special Agent in Charge of ICE’s Homeland Security Investigations in Boston; and Steven D. Ricciardi, Special Agent in Charge of U.S. Secret Service in Boston made the announcement today. Senior Litigation Counsel Corey J. Smith of the Justice Department’s Tax Division is prosecuting the case.
New Jersey Couple Arrested, Federally Charged with Abusing Their Children in Cruel “Training” ProgramRead the Press Release
NEWARK, N.J. – A U.S. Army major surrendered to federal agents following his wife’s arrest at their Mount Holly, N.J., home this morning on charges that they abused their children through neglectful and cruel acts, including by breaking their bones, denying them medical attention, withholding water and force-feeding them hot sauce, U.S. Attorney Paul J. Fishman announced.
Carolyn Jackson, 35, and John E. Jackson, 37, formerly of the Picatinny Arsenal Installation in Morris County, N.J., are charged in a 17-count indictment with one count of conspiracy to endanger the welfare of a child, 13 counts of endangering the welfare of a child and three counts of assault.
The case falls under federal jurisdiction because the crimes were allegedly committed on a military base. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
“Carolyn and John Jackson are charged with unimaginable cruelty to children they were trusted to protect, said U.S. Attorney Fishman. “The crimes alleged should not happen to any child, anywhere, and it is deeply disturbing that they would happen on a military installation. Along with the FBI, we will continue to seek justice for our communities' most vulnerable victims.”
According to the indictment unsealed today:
From approximately August 2005 until April 23, 2010, Carolyn and John Jackson conspired to engage in a constant course of neglect and cruelty towards three children they fostered and then adopted, one of whom died in May 2008. The Jacksons told their three biological children not to report the physical assaults to others, saying that the punishments and disciplinary techniques were justified, as they were “training” the adopted children how to behave.
After John Jackson was informed by a family friend that one of the children had revealed the abuse in the Jackson household, John Jackson reported the breach to Carolyn Jackson, who retaliated against that child with multiple beatings with a belt.
The Jacksons physically assaulted their children with various objects, causing two children to sustain fractured bones, for which the Jacksons failed to seek prompt medical attention.
They also withheld proper medical care for their adopted children, withheld sufficient nourishment and food for two of their children, withheld adequate water from two of their children, and, at times, prohibited them from drinking water altogether. The Jacksons even punished an adopted child they caught sneaking food or water, and required one of their biological children to prevent that child from drinking out of sinks and toilets.As another form of punishment, Carolyn and John Jackson forced two of the children to consume food intended to cause them pain and suffering, variously including red pepper flakes, hot sauce and raw onion. They also caused one child to ingest excessive sodium or sodium-laden substances while being deprived of water, leading to a life-threatening condition.
All of the children are currently in the custody of the New Jersey Division of Child Protection and Permanency.
If convicted, Carolyn and John Jackson each face a maximum potential penalty of 10 years in prison on each of the 17 counts with which they are charged. Each count also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the charges. He also thanked the U.S. Army Criminal Investigation Command, under the command of Major General David E. Quantock and the Morris County Prosecutor’s Office, under the direction of Acting Prosecutor Fredric M. Knapp.
The government is represented by Assistant U.S. Attorneys Melissa L. Jampol and Elizabeth M. Harris of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense counsel:Carolyn Jackson: Rubin Sinins Esq., Springfield
John Jackson: Assistant Federal Public Defenders David Holman and Carol Gillen Esqs., Newark
Jackson, Carolyn and John Indictment
New Haven Man Pleads Guilty to Crack Cocaine Conspiracy ChargesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that JAYREN WYNN, 23, also known as “Rich Boy,” of New Haven, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to two counts of conspiracy to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps and several purchases of crack directly from WYNN, revealed that members and associates of the Southside Bloods were distributing large quantities of crack cocaine. WYNN was involved in two separate drug distribution rings associated with the Southside Bloods.
WYNN is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on August 2, 2013, at which time WYNN faces a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
This matter is being investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and H. Gordon Hall.
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(203) 821-3722 [email protected]Nampa Man Sentenced to Prison for Possessing Sawed-Off ShotgunRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Kenneth Lee Morgan, 51, of Nampa, Idaho, was sentenced in United States District Court to 32 months in prison followed by three years of supervised release for possessing an unregistered firearm. Morgan appeared before the Hon. John C. Coughenour, U.S. District Judge for the Western District of Washington, at the federal courthouse in Boise.
Morgan pleaded guilty to the charge on February 7, 2013. At the time he pleaded guilty, Morgan admitted that on April 18, 2011, he was in possession of a sawed-off shotgun. According to other information presented in court, the Winchester 12 gauge sawed-off shotgun was recovered by law enforcement agents after Morgan sold the shotgun to another individual.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, a task force comprised of local and federal law enforcement agencies in the Treasure Valley. The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Milwaukie Man Sentenced to 48 Months in Federal Prison for Aggravated Identity Theft, Wire Fraud, and BurglaryRead the Press Release
PORTLAND, Ore. – U.S. District Judge Anna J. Brown today sentenced Bradley Lawrence Berg, 42, of Milwaukie, Oregon, to 48 months in prison for aggravated identity theft, wire fraud, and burglary of a federally insured credit union. Berg also was ordered to pay $45,000 in restitution. Berg committed this latest offense while he was on supervised release after being sentenced to seventy-one months in federal prison for felon in possession of a firearm in 2001.
The Clackamas County Sheriff’s Office began investigating a burglary of the Oregonians Federal Credit Union in Milwaukie, Oregon, after employees discovered a roof-top entry had been made during the night of October 7, 2010. Deputies discovered the ATM had been tampered with and the keypad to the vault door had been removed. A used bandage was seized from the crawl space next to the ATM and submitted to the Oregon State Police Crime Lab which determined that Berg’s DNA was on the bandage.
Sometime between November 5, 2010 and November 8, 2010, and again on December 6, 2010, Qwest Communications (now Century Link Communications, Inc.) experienced break-ins to work vans that were stored behind security fencing. Very expensive fiber optic equipment was missing and eventually sold on eBay internet sites.
The Clackamas County Sheriff’s Office continued to investigate additional roof-top burglaries at a Clackamas Office Depot store on November 20, 2010 and December 12, 2010, and recovered a tool with Berg’s name on it during the investigation. Berg was later arrested inside a stolen auto in North Portland, on December 26, 2010, when officers responded to a silent alarm and found Berg breathing heavily while pretending to be asleep in the stolen car.
The investigation showed that Berg had instructed his girlfriend to sell stolen merchandise on eBay. A search warrant was executed on Berg’s residence and his storage locker, discovering identity theft equipment, personal information of others, PayPal checks, counterfeit social security cards, and drivers licenses. Upon discovery of the counterfeit documents, the U.S. Secret Service joined the investigation. The defendant later admitted that he sold a fiber fusion splicer for $8,600 to an electrical firm in LaGrange Kentucky, by advertising it on eBay, and collecting wire transferred funds via his PayPal account.
Berg’s girlfriend, Kristin Danielle Burke, 41, was prosecuted in Clackamas County Circuit Court. Berg is expected to face state court charges in Clackamas and Multnomah Counties for property crimes committed there.
The case was investigated by the Clackamas County Sheriff’s Office and the U.S. Secret Service. Assistant U. S. Attorney John Haub prosecuted the case.
Mexican National Sentenced to 56 Months for Possession of Child PornographyRead the Press Release
BOISE – Heriberto Aleman-Aguero, 25, a Mexican national formerly living in St. Anthony, Idaho, was sentenced yesterday to 56 months in prison for possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Aleman-Aguero to serve five years of supervised release following his prison term and forfeit property used in committing the crime. He pleaded guilty to the charge in November 2012.
According to the plea agreement, Aleman-Aguero’s crime was discovered when he took his cellular phone to a repair shop in July 2011. During the course of the repair, the individual reprogramming the phone observed several images of suspected child pornography. He reported the images to law enforcement. The Rexburg Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant for the phone. Forensic analysis later confirmed the presence of several sexually explicit images of minors. Aleman-Aguero admitted in court to possessing the images, knowing the images contained visual depictions of minors engaged in sexually explicit conduct. Aleman-Aguero further admitted knowing that production of such visual depictions involved the use of minors in sexually explicit conduct.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Rexburg Police Department.
Meriden Man Involved in Home Invasion Admits Illegal Firearm Possession, Violating Supervised ReleaseRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that SHANE LEVERETTE, also known as Shane Baltas, 44, of Meriden, pleaded guilty today before United States District Judge Janet C. Hall in New Haven to possession of a firearm by a previously convicted felon. LEVERETTE also admitted that he violated conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on February 16, 2011, at approximately 10:40 p.m., LEVERETTE and an accomplice, who was armed with a handgun, entered a residence in Middlefield for the purpose of stealing money and drugs. LEVERETTE and his accomplice were dressed in black and wearing baseball hats with a DEA logo and gloves, and had bandannas covering their faces. Inside the residence, LEVERETTE located and stole a semi-automatic rifle. He and his accomplice then threatened two adults with their firearms and directed them to remain seated on the bed. After demanding money, the accomplice struck a male victim with the handgun, causing the victim’s head to bleed, and the handgun discharged. LEVERETTE and his accomplice then searched the bedroom for drugs and money.
After receiving a 911 call, the Connecticut State Police and Middletown Police Department arrived at the scene and surrounded the residence. LEVERETTE and his accomplice surrendered and were arrested and charged with state offenses. Law enforcement officers also seized the accomplice’s handgun and the semi-automatic rifle that LEVERETTE had stolen.
Prior to February 2011, LEVERETTE had sustained multiple federal and state felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. The rifle that LEVERETTE possessed had been manufactured in Hungary.
In February 1999, LEVERETTE was sentenced in federal court in Massachusetts to 151 months of imprisonment for racketeering, narcotics and firearm offenses. He was released from federal prison on April 23, 2007, and was serving a five-year term of supervised release at the time of the Middlefield home invasion.
Judge Hall has scheduled sentencing for July 23, 2013, at which time LEVERETTE faces a maximum term of imprisonment of 10 years and a fine of up to $250,000 for illegally possessing the firearm. He also faces up to five years in prison for violating his supervised release.
LEVERETTE has been detained since his arrest.
This matter has been investigated by the Bureau of Alcohol Tobacco and Firearms, the Connecticut State Police and the Middletown Police Department. The case is being prosecuted by Assistant United States Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Mechanicsburg Man Pleads Guilty to Tax EvasionRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Thomas C. Holloway, age 46, of Mechanicsburg, Pennsylvania, pleaded guilty today before U.S. District Court Judge Christopher C. Conner to attempted income tax evasion for 2008. Sentencing has been scheduled for August 8, 2013.
According to United States Attorney Peter J. Smith, Holloway previously was employed by Spherion (an IT firm based in Mechanicsburg and formerly known as Intellimark and Technisource) between 2001 and 2009 and embezzled company funds which were not reported on his income tax returns. Holloway previously was charged by local authorities with theft by deception in connection with the embezzlements and was sentenced in 2010 in state court to probation and ordered to pay $125,000 in restitution to Spherion. The current tax charges allege that the tax loss to the IRS was $80,000 for the years 2003-2009.
The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
A sentencing following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years' imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
McLaughlin Man Sentenced for Firearms OffenseRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin man convicted of Felon in Possession of a Firearm was sentenced on April 29, 2013, by U.S. District Judge Charles B. Kornmann. Jess Porras, age 52, was sentenced to 6 months in custody, 1 year of supervised release, and a $100 special assessment.
Porras was indicted by a federal grand jury on October 16, 2012. On January 2, 2013, he pled guilty to Count I of the indictment.
The conviction stems from an incident in December 2011 when the Defendant was providing guiding services to a group of hunters from Minnesota. After a member of the hunting party missed several shots at a deer, the Defendant, knowing he had previously been convicted of a felony and was prohibited from possessing firearms, grabbed the hunter's rifle and shot the deer.
This case was investigated by U.S. Fish & Wildlife Law Enforcement Services. Assistant U.S. Attorney Troy Morley prosecuted the case.
Porras is to self-report to the U.S. Marshal’s Service by 2:00 p.m. on May 21, 2013.
Manhattan U.S. Attorney Recovers $200,000 in Civil Penalties from Upper East Side Pharmacy That Violated the Controlled Substances ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian R. Crowell, the Special Agent-in-Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that the United States has settled a civil lawsuit against MADISON AVENUE PHARMACY (“MADISON AVENUE”), a retail pharmacy on the Upper East Side of Manhattan, and RICHARD SCHIRRIPA, the pharmacy owner and a licensed pharmacist. Under the settlement, MADISON AVENUE and SCHIRRIPA admitted and accepted responsibility for numerous violations of the Controlled Substances Act, and agreed to pay $200,000 in penalties and to implement enhanced compliance procedures. The settlement agreement, in the form of a consent order, was approved yesterday in Manhattan federal court by U.S. Magistrate Judge Michael H. Dolinger.
Manhattan U.S. Attorney Preet Bharara said: “Prescription drug abuse is the fastest-growing drug problem in this country, and retail pharmacists who fail to fulfill their legal obligation to responsibly keep account of these dangerous drugs enable further abuse. As the settlement against Richard Schirripa and Madison Avenue Pharmacy shows, this Office will not tolerate professionals who disregard the drug laws.”
DEA Special Agent-in-Charge Brian R. Crowell said: "DEA Diversion Investigators are the nationwide auditors of our pharmacies, which are mandated to adhere to strict compliance procedures, especially the oversight of addictive pain medications. In New York City, the number of painkiller-related emergency room visits increased over the past decade by 143%, and as the number of overdose deaths and hospital visits has climbed throughout the last five years, it is imperative that pharmacies maintain accountability by keeping accurate records and report any loss immediately to prevent highly addictive medications from falling into the wrong hands."
According to the allegations contained in the Complaint:
Following an employee theft of OxyContin at MADISON AVENUE in June 2009, a DEA audit in July 2009 discovered that SCHIRRIPA had failed to report the theft in a timely manner. The DEA also found that MADISON AVENUE and SCHIRRIPA were not maintaining a complete and accurate inventory of OxyContin, and had failed to adhere to a number of other record-keeping provisions required under the CSA. Oxycontin is a brand name of time-released oral Oxycodone, which is classified as a Schedule II controlled substance under the CSA.
In the settlement agreement approved today, MADISON AVENUE and SCHIRRIPA “admit, acknowledge, and accept responsibility” for the following violations of the CSA: SCHIRRIPA allowed dispensing pharmacists at MADISON AVENUE to order Schedule II controlled substances using his private access key, rather than requiring them to obtain and use their own keys; he and the pharmacy did not utilize the relevant software to electronically reconcile orders of Schedule II controlled substances; MADISON AVENUE was not maintaining a complete and accurate record of the pharmacy’s supply of OxyContin at the time of the DEA audit; SCHIRRIPA and MADISON AVENUE failed to conduct a timely biennial inventory in 2009; and they did not timely report the loss of OxyContin to the DEA.
MADISON AVENUE and SCHIRRIPA agreed to pay $200,000 in civil penalties to the United States and agreed to implement enhanced compliance procedures, including the retention of a compliance officer approved by the DEA, the creation of a comprehensive compliance plan, and the furnishing of inventory reports and certifications to the DEA every six months for a period of five years.
Mr. Bharara praised the DEA for its work on this case.
This case is being handled by the Office’s Civil Division. Assistant U.S. Attorneys Cristine Irvin Phillips and Louis A. Pellegrino are in charge of the case.
U.S. v. Madison Avenue Pharmacy and Richard Schirripa Consent Order
Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on April 29, 2013, by U.S. District Judge Roberto A. Lange. Leonard Edwards, age 23, was sentenced to 27 months of imprisonment, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Edwards was indicted for the above offense by a federal grand jury on November 15, 2012. He pled guilty on February 5, 2013. The charge stems from an incident when Edwards, on August 25, 2012, was at a party at a home in Lower Brule. Present were Edwards, the victim, and others. Later in the evening, the victim decided to leave the party and took a bottle of alcohol with him. Edwards followed the victim outside. Once outside, Edwards walked up to the victim and struck him in the face with a closed fist. The victim fell to the grounds, knocked unconscious. As a result, the victim suffered multiple fractures to the jaw that required surgery to repair.
The investigation was conducted by the Federal Bureau of Investigation, and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Edwards was immediately turned over to the custody of the U.S. Marshal’s Service.
Lower Brule Man Guilty of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Irvin Scott Yazzie, age 24, of Lower Brule, South Dakota, appeared before U.S. District Judge Roberto A. Lange on April 30, 2013, and pled guilty to the indictment that charged him with Assault with a Dangerous Weapon. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident when Yazzie and his girlfriend, who were staying at a residence in Lower Brule, began arguing about their relationship. During the course of the argument, Yazzie assaulted the victim by striking her with his fists and a black aluminum pole. The victim suffered bruising as a result of the assault.
The investigation was being conducted by the Bureau of Indian Affairs, and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Yazzie was remanded to the custody of the U.S. Marshal’s Service pending sentencing on July 22, 2013.
Leslie Ashmore Sentenced to 240 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
GREENEVILLE, Tenn. – On Apr. 30, 2013, Leslie H. Ashmore, 46, of Kingsport, Tenn., was sentenced to serve 240 months in prison, by the Honorable Leon Jordan, U.S. District Judge. Upon his release from prison, he will be subject to supervised release for five years. There is no parole in the federal system.
Following a jury trial in December 2012, Ashmore was convicted of possession of a firearm after having been previously convicted of a felony offense. He was arrested by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) on federal charges in October 2011, with the assistance of the Kingsport Police Department SWAT team, Sullivan County Sheriff's Department, and Second Judicial District Drug Task Force. A firearm was found in the vehicle in which Ashmore was traveling at the time of his arrest. Federal law prohibits anyone who has previously been convicted of a felony offense from possessing a firearm or ammunition. Ashmore was also subject to the provisions of the Armed Career Criminal Act, whereby a person convicted of possessing a firearm after a felony conviction is subject to a minimum mandatory 15 years, up to life in prison if that person has three or more prior violent felony or drug felony convictions.
The investigation was conducted by the Kingsport Police Department, Second Judicial District Drug Task Force, and ATF. Assistant U.S. Attorneys J. Gregory Bowman and Suzanne Kerney-Quillen represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Lee's Summit Soccer Coach Indicted on Additional Charges of Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., youth soccer coach was indicted by a federal grand jury today on additional charges related to producing child pornography by secretly videotaping members of his soccer team.
Joel D. White, 40, of Lee’s Summit, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against White on April 23, 2013. White, who coached a girls under-12 soccer team and a girls under-15 soccer team through the Lee’s Summit Soccer Association, remains in federal custody. The Lee’s Summit Soccer Association has cooperated fully with law enforcement officers during this investigation.
Today’s indictment charges White with three separate counts of attempting to produce child pornography. White allegedly attempted to use three child victims – identified in the indictment as Jane Doe #1, Jane Doe #2 and Jane Doe #3 – to produce child pornography between May 1, 2012 and March 20, 2013. Each of the three counts contained in the indictment carries a mandatory minimum sentence upon conviction of 15 years in federal prison without parole.
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers in Commerce City, Colo., discovered videos of nude minors on White’s camera. White was at a soccer stadium in Colorado last month for a World Cup qualifying game when the cameras were seized by law enforcement officers as part of a criminal investigation.
Several videos allegedly depict White positioning a video camera in a bedroom of his residence in such a way that the camera is hidden. Shortly after White leaves the room, the affidavit says, the videos depict several minors, approximately 11 or 12 years old, entering the room and changing their clothes. Minors are fully nude in the videos and do not appear to know they are being videotaped.
White allegedly told police that he videotaped nude minors 10 to 15 times without their consent from May to October 2012. According to the affidavit, at least four child victims have been identified so far in the investigation.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Lee’s Summit, Mo., Police Department and the Commerce City, Colo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."KC Man Sentenced to 30 Years in Prison for Illegally Possessing FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for illegally possessing a firearm that was involved in a triple homicide last year.
Anthony Walker, 46, of Kansas City, was sentenced on Monday, April 29, 2013 by U.S. District Judge Howard F. Sachs to 30 years in federal prison without parole. Walker was sentenced as an armed career criminal due to his prior felony convictions.
On Aug. 1, 2012, Walker pleaded guilty to being a felon in possession of a firearm. Walker admitted that he sold a Hi-Point semi-automatic .40-caliber handgun and a box of ammunition to a confidential law enforcement source for $200 on Jan. 26, 2012. According to court documents, the firearm and ammunition was sent to the Kansas City Regional Crime Lab for examination. Lab results indicated that the handgun matched ballistic evidence taken from the scene of a triple homicide that occurred on Jan. 16, 2012. The results also indicated that the firearm was the same gun used to kill three individuals. The Winchester ammunition purchased from Walker matched the casings recovered at the scene of the triple homicide.
Walker was arrested on Feb. 1, 2012. Court documents state that the shoes Walker was wearing when arrested matched shoe impressions taken from inside the residence where two of the three killings occurred.
On July 17, 2012 Walker was charged in a separate case in the Circuit Court of Jackson County with three counts of first degree murder, three counts of armed criminal action and one count of burglary.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Walker has two prior felony convictions for burglary and prior felony convictions for stealing, escape, unlawful use of a weapon, forgery and robbery.
This case was prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Jury Convicts California Man of Possessing Cocaine found aboard Greyhound BusRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a California man was convicted by a federal jury today of possessing about a kilogram of cocaine that was discovered hidden in his suitcase aboard a Greyhound bus as he traveled through Kansas City.
Rene Alexandor Meras, 32, of California, was found guilty of possessing cocaine with the intent to distribute.
Evidence introduced during the trial indicated that Meras was transporting more than two pounds of cocaine from Los Angeles, Calif., to Cleveland, Ohio. Meras was riding a Greyhound bus from Los Angeles that arrived in Kansas City for a layover on Aug. 29, 2012. Law enforcement officers approached Meras and asked to see his ticket and identification. Meras showed the officers his ticket (which included a baggage claim check), but did not have any identification. Meras initially gave officers a false name (which did not match his ticket) and told them he didn’t have any luggage, but later acknowledged that he did have a roller bag.
Meras gave his consent for officers to search his bag. At the bottom of the bag were two pieces of plywood sandwiched together and sewn into the liner. An officer removed the plywood and discovered the cocaine taped to the underside of the top piece of plywood.
Meras refused to give his name and any biographical information about himself, but his identity was confirmed through his fingerprints, utilizing the FBI database. A woman who was traveling with Meras denied any knowledge of the cocaine and was not charged.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour before returning the guilty verdict to U.S. District Judge Ortrie D. Smith, ending a trial that began Monday, April 29, 2013.
Under federal statutes, Meras is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $5 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David DeTar Newbert and Special Assistant U.S. Attorney Jalilah Otto. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
Jefferson City Attorney Indicted for Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., attorney has been indicted for his role in a conspiracy to commit marriage fraud in order to evade immigration laws.
James Douglas Barding, 60, of Jefferson City, was charged in a superseding indictment that was returned under seal by a federal grand jury in Jefferson City on April 24, 2013. The superseding indictment was unsealed and made public today in conjunction with Barding’s initial court appearance. Barding is a practicing attorney.
The superseding indictment adds Barding as a co-defendant with Oleksandr Nikolayevich Druzenko, also known as “Alex” or “Sasha,” 32, of Jefferson City, Patricia Anne Ewalt, 60, of El Paso, Texas, and Darya Chernova, 38, of Chandler, Ariz. Barding’s co-defendants were originally charged in an Oct. 3, 2012 federal indictment. The superseding indictment also includes additional charges against some of the defendants.
According to the indictment, Barding (a married U.S. citizen) was having an affair with Chernova, a Ukrainian national who entered the United States on a student visa and attended Lincoln University before earning a master’s degree from the University of Missouri-Columbia. Barding allegedly assisted Chernova to enlist a U.S. citizen to marry her so that she could remain in the United States.
Barding and Chernova were friends of Ewalt (a U.S. citizen) and Druzenko, a Ukrainian national who entered the United States on a student visa in August 2004 and attended college in Missouri and elsewhere. Druzenko is currently employed at the Missouri Office of Administration in Jefferson City.
Barding and Chernova allegedly assisted Druzenko in early 2007 to find a U.S. citizen to marry him so that he could remain in the United States and attempt to gain permanent resident status and potentially U.S. citizenship. They approached several persons, the indictment says, including one person with whom Druzenko procured a marriage license but who then declined to enter the sham marriage.
According to the indictment, Druzenko was introduced to Ewalt in March 2007. Druzenko and Ewalt were married on June 22, 2007, the indictment says, for the sole purpose of allowing Druzenko to remain in the United States. Under his student visa, Druzenko would have had to depart the United States within 60 days after graduation. Because of his marriage to Ewalt, Druzenko obtained lawful permanent resident status on Jan. 2, 2008.
Barding, Druzenko, Ewalt and Chernova are charged with participating in a conspiracy to defraud the United States, to commit marriage fraud, and to gain resident status and citizenship through false statements.
In addition to the conspiracy, Barding, Druzenko, Ewalt and Chernova are charged together in one count of marriage fraud. Druzenko and Ewalt are also charged together in three counts that are related to making false statements on immigration forms.
Barding, Druzenko and Chernova are also charged together in one count of attempting to unlawfully procure citizenship or naturalization. This charge is related to the unsuccessful attempt in early 2007.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the U.S. Citizenship and Immigration Services and the Jefferson City, Mo., Police Department.
James Matthew Tafelmeyer Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 30, 2013, before U.S. District Judge Richard F. Cebull, JAMES MATTHEW TAFELMEYER, a 32-year-old resident of Billings, appeared for sentencing. TAFELMEYER was sentenced to a term of:
Prison: 97 months
Special Assessment: $100
Supervised Release: 15 years
TAFELMEYER was sentenced in connection with his guilty plea to receipt of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
Law enforcement officers were investigating allegations of child pornography access by users utilizing the peer-to-peer file sharing network. One investigation involved a person in Billings who had child pornography available to share via a file sharing program. A search warrant was obtained for the residence and served on December 1, 2011.
TAFELMEYER was the occupant of the residence. When questioned, TAFELMEYER admitted that he used the peer-to-peer file sharing program Limewire to receive and possess hundreds of child pornography videos and images. He detailed the search terms he used to find child pornography on Limewire and how he had saved it to various computers and other equipment, and how he had been doing so since 2004.
Agents seized various computer equipment at TAFELMEYER's residence. Subsequent forensic examination revealed hundreds of images and movies of child pornography that TAFELMEYER had received via the Internet for years and continuing until the equipment was seized. TAFELMEYER possessed images and movies of children clearly prepubescent and children engaged in sadistic or masochistic abuse or other depictions of violence. TAFELMEYER possessed a total of over 2,000 images and 24 videos of child pornography on the equipment specified in the forfeiture count.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that TAFELMEYER will likely serve all of the time imposed by the court. In the federal system, TAFELMEYER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Billings Police Department, and the Internet Crimes Against Children (ICAC) Task Force.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
International Narcotics Trafficker Extradited to Face Drug Trafficking and Narco-Terrosism ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney of the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced that Jose Evaristo Linares-Castillo, a/k/a “Don Eva,” has been extradited from Colombia to the United States.
Linares-Castillo and four co-conspirators were indicted in the Southern District of Florida for drug trafficking and money laundering activities within the Southern District of Florida. Linares-Castillo, a Colombian citizen, is designated a Consolidated Priority Organization Target (“CPOT”) by the Department of Justice, a designation given to the most significant narcotics traffickers in the world. Linares-Castillo was responsible for overseeing the manufacture and transportation of thousands of kilograms of cocaine from Apure, Venezuela to Central America and the Caribbean. Linares-Castillo used many lieutenants and independent cocaine sub-contractors to accomplish the movement of cocaine produced in his laboratories in Colombia. Based upon this investigation, Linares-Castillo’s organization maintained possession of approximately 20,000 kilograms of cocaine cached in Apure, Venezuela, near Fuerzas Armadas Revolucionarias de Colombia (the “Revolutionary Armed Forces of Colombia,” or “FARC”) controlled clandestine airstrips, where the cocaine laden aircraft were launched. Linares-Castillo was closely affiliated with CPOT Daniel Arnoldo Barrera-Barrera, a/k/a “Loco Barrera,” as well as with deceased CPOT Pedro Olivero Guerrera-Castillo, a/k/a “Cuchillo.”
Throughout the course of this investigation, agents from the DEA Miami Field Division as well as Assistant United States Attorneys for the Southern District of Florida uncovered a vast drug trafficking and money laundering network, which resulted in the identification of key members of the Linares-Castillo drug trafficking organization responsible for supplying members of the Mexico based Sinaloa Drug Cartel thousands of kilograms of cocaine in Honduras. The kilograms of cocaine were then transported to the United States, via Mexico for distribution. The proceeds from the drug trafficking venture were then repatriated to Colombia through traditional money laundering methods. Linares-Castillo was also named in an indictment returned by a federal grand jury in the Southern District of New York, charging that he conspired to import ton-quantities of cocaine into the United States, to provide material support to the FARC, and to engage in narco-terrorism.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) led by DEA. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of the DEA. This case is being prosecuted by Assistant U.S. Attorney Andrea Hoffman.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Hudson Man Charged with Child Pornography OffensesRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces the filing of a criminal complaint charging Wayne Miner (44, Hudson) with transportation, receipt, and possession of child pornography. If convicted, Miner faces a mandatory minimum of five years in federal prison and a maximum penalty of 50 years in federal prison.
The complaint alleges that Miner traded child pornography with others using at least two e-mail addresses and the Internet. His computer and cellular phone contained numerous files of child pornography.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.This case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, and the Pasco County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Home Invasion Investigation Results in Prison SentenceRead the Press Release
MOBILE, Ala. - Roderick Levar Jones, 33, of Prichard, Alabama, was sentenced yesterday in federal court to 87 months imprisonment, for his participation in a violent home invasion during November of 2011 in Chickasaw, Alabama. Jones entered a guilty plea to the charge of accessory after the fact to kidnapping in federal court in December of 2012. Court documents reflect that he became involved when those committing the home invasion, Brandon Nobles, Miller Griffin and Zerrick Robinson, contacted him to assist them after they had kidnapped the victim’s wife. Jones, armed with a gun, stood guard over the victim’s wife while the others sought to collect a ransom. Nobles, Griffin and Robinson all pled guilty to the federal gun and kidnapping charges in July of 2012. Nobles was sentenced in March of 2013 to a term of imprisonment of 264 months. Robinson and Griffin have not yet been sentenced.
United States District Court Judge Kristi K. Dubose imposed the sentence in Jones’ case. She ordered that Jones serve a term of 87 months imprisonment, to be followed by a supervised release term of three years. She ordered that the defendant receive drug treatment and that he be subject to drug testing when released on supervision following his prison term. No fine was imposed, but the judge ordered that Jones pay the special manadtory assessment of $100.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chickasaw Police Department, the Mobile Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Gloria Bedwell.
Guilty Plea and Sentencing Occur for Two Co-Defendants Involved with Drug Distribution and Firearms PossessionRead the Press Release
St. Louis, MO - Stanley “Outlaw” Carter, of St. Louis City, pled guilty on April 22, 2013, to one felony count of brandishing a firearm in furtherance of a drug trafficking crime and a second felony count of discharging a firearm in furtherance of a drug trafficking crime. Carter entered his change of plea before United States District Judge Henry E. Autrey.
Specifically, on March 26, 2008, Carter and co-defendant Antonio “Lips” Shaw and another accomplice, Richard “Repeat” Bobbitt, entered a City of St. Louis residence with guns drawn. The residence was occupied at the time by a 10-year old girl, a teenage boy and the children's mother. Carter and his two accomplices stole a significant amount of marijuana that they located in the residence.
On May 10, 2008, Carter utilized an AR-15 assault-style rifle to execute two individuals associated with a rival group. The two men were inside a vehicle when Carter approached and opened fire from point-blank range. The shooting occurred at the area commonly referred to as "the Circle" located near 1199 Riverview Boulevard within the City of St. Louis. The first victim, Adolph Ellison, was pronounced dead at the scene. The second victim, Donald Mack, died shortly after. Immediately following the shooting, Carter and his two accomplices, again being Shaw and Bobbitt, fled the scene and undertook efforts to conceal evidence related to the crime.
Carter now faces penalties ranging from 35 years to life in prison. Sentencing is set for July 22, 2013. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Today, Carter's co-defendant, Antonio Shaw, was sentenced to over 31 years imprisonment on one felony count of conspiracy to possess with the intent to distribute marijuana and cocaine base (crack) and a second felony count of brandishing a firearm in furtherance of a drug trafficking crime.
Shaw was convicted of both crimes after a six-day jury trial before United States District Court Judge Henry E. Autrey. During sentencing, the United States District Court took into consideration evidence of Shaw's drug distribution and firearm possession established by the United States during Shaw's criminal trial. The Court also considered, among other things, Shaw's direct involvement in the May 10, 2008, Riverview Circle double-homicide. The additional evidence presented at sentencing established that, among other things, Shaw provided to Carter the firearm used to murder the two victims, identified the two victims as the targets to be killed and drove the vehicle utilized before, during and after the shooting.
This case was investigated by the St. Louis Metropolitan Police Department, St. Louis County Police Department, the Berkeley Police Department, United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service and the St. Louis Circuit Attorney’s Office.
Greenville Firearms Trafficker SentencedRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced LIONEL THOMAS EASTERLING, 30, of Greenville, North Carolina, to 84 months imprisonment followed by 3 years supervised release.
On January 2, 2013, EASTERLING pled guilty to an Indictment charging him with two counts of possession of a firearm by a convicted felon.
The investigation began when the Greenville Regional Drug Task Force used an informant to make two controlled purchases of firearms from EASTERLING in Greenville, N.C. On June 12, 2012, EASTERLING sold three stolen handguns to the informant and on June 20, 2012, EASTERLING sold an AR-15 assault rifle to the informant. EASTERLING was prohibited from possessing firearms and due to his prior felony convictions for selling cocaine.
The investigation of this case was conducted by the Greenville Regional Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney's Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney's Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. The assignment to the United States Attorney's Office has been made possible by grants funded by the Governor's Crime Commission.
Goodwin Announces Record Total in Prescription Drug Take-back EventRead the Press Release
U.S. Attorney’s Office and DEA announce success in sixth Prescription Drug Take-Back Day; over 2 tons of drugs collected
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin and U.S. Drug Enforcement Administration (DEA) Resident Agent in Charge John Ryan jointly announced today that as a result of the April 27th Prescription Drug Take-Back event, a total of 4,642 pounds of unwanted, unused and expired prescription drugs were collected from citizens and households across West Virginia. The April 27th collection results surpassed the previous Take-Back record of 4572 pounds collected last year, in April 2012.
U.S. Attorney Goodwin said, “This year’s record total is another milestone in the fight against prescription drug abuse. West Virginians understand how devastating the prescription drug problem is for our families, and they’re responding in the most effective way they can: by getting rid of potentially dangerous medicine that they don’t need any more.”
DEA Resident Agent in Charge Ryan said, “Prescription drug abuse has plagued so many of our communities. When people voluntarily take prescriptions out of their homes and dispose of them properly, it truly helps our fight against prescription drug abuse. I commend all of the federal, state and local partners in West Virginia for their assistance, which has made this sixth Take-Back a success.”
The April Take-Back designated more than 100 sites throughout West Virginia, providing citizens with several locations to drop off expired, unused and unwanted medications. Nationwide, more than 5,100 sites participated.
In the five previous Take-Back events, the Drug Enforcement Administration and numerous federal, state, and local law enforcement partners have collected more than 2 million pounds (1,018 tons) of prescription medications nationwide.
Former State Probation Officer Guilty of Extortion in Operation Delta BluesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that former Arkansas Department of Community Corrections Parole/Probation Officer Roxanne Davis, age 38, of Wynne, pleaded guilty to one count of extortion under color of official right (18 U.S.C. § 1951) before U.S. District Court Judge J. Leon Holmes in Case No. 4:12CR00260 JLH. The remaining count against Davis was dismissed upon the Court's acceptance of the plea.
During the Change of Plea hearing, Davis admitted the following facts:
Between October 2007 and October 2011, Davis was an employee of the Arkansas Department of Community Correction (ADCC), serving as a Parole/Probation Officer for parolees/probationers in Lee County, Arkansas, and elsewhere. Davis's official duties and responsibilities included: monitoring the parolees/probationers' compliance with the conditions of probation by explaining the rules, regulations, and conditions of parole or probation; administering court-ordered and random drug tests to parolees/probationers and writing parole violation reports upon a positive test; maintaining a chronological history of contacts with parolees/probationers and writing reports accordingly; counseling parolees/probationers during office visits and referring them to various agencies for assistance such as substance abuse counseling and treatment, employment, education, and human services; and making home and community visits to verify parole/probation information and follow-up visits to determine if parolees/probationers are adhering to conditions of parole/probation and to assist them with the community adjustment process.
Davis, like all ADCC officers and staff, was prohibited from collecting court-ordered "economic sanctions" from parolees/probationers. Davis was aware that all payments were to be mailed by the parolee/probationer directly to the ADCC Central Office in Little Rock.
As part of her ADCC duties and responsibilities, Davis was assigned to supervise Torrence Turner, who was on parole from a first degree murder conviction. Between October 2007 and October 2011, Davis misused her authority as an ADCC Parole/Probation Officer to collect cash payments and obtain goods from parolee Torrence Turner in exchange for not enforcing Torrence Turner's parole conditions.
For example, in May 2011, Davis accepted cash from Torrence Turner, ostensibly for a "mother's day present" and for a child's birthday. Davis stipulates that the government would show that her conversations with Torrence Turner concerning these payments were recorded pursuant to a court-authorized wiretap on Torrence Turner's phone. Between October 2007 and October 2011, Davis received more than $1000, but less than $5000, in cash from Torrence Turner in exchange for not enforcing Torrence Turner's parole conditions. Additionally, in April 2011, upon being notified that the Federal Bureau of Investigation conducted an inquiry into Torrence Turner's criminal history, Davis informed Torrence Turner of this inquiry so that Torrence Turner could hide his illegal activities, including drug trafficking, from law enforcement.
Sentencing will be set by the Court at a later date. The potential penalties for a violation of Title 18, United States Code, Section 1951 are up to 20 years incarceration, up to three years supervised release, and up to a $250,000 fine. Davis was not detained.
Torrence Turner previously pleaded guilty in Case No. 4:11CR00211-1 JMM to conspiracy to possess with intent to distribute and to distribute crack cocaine in violation of 21 U.S.C. § 846. During his Change of Plea hearing on September 17, 2012, before U.S. District Judge James M. Moody, Turner admitted that he led a drug trafficking organization in Marianna, Arkansas, and that between January 2010 and October 2011, he distributed between 50 and 150 kilograms of cocaine and between 2.8 kilograms and 8.4 kilograms of crack cocaine in Lee County and other counties in the Eastern District of Arkansas. On February 13, 2013, Judge Moody sentenced Turner to 30 years incarceration in the Bureau of Prisons, to be followed by 5 years supervised release, no fine.
The investigation was conducted by the United States Attorney's Office and the FBI, with the assistance of the Arkansas Department of Community Correction - Internal Affairs Division. It is being prosecuted by Assistant United States Attorney Julie Peters.
Former State Employee Pleads Guilty in Scheme Involving Theft of Dod Surplus PropertyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today ROBERT BRIAN MINISH, 57, of Henderson, North Carolina, pled guilty before United States District Judge Terrence W. Boyle to theft of property belonging to the United States, in violation of Title 18, United States Code, Section 641, and to making false statements, in violation of Title 18, United States Code, Section 1001.
According to the Criminal Information filed on March 5, 2013, and information provided in open court today, MINISH was an employee of Law Enforcement Support Services (LESS), a division of the North Carolina Department of Public Safety. Among its functions, LESS facilitated the transfer of United States Department of Defense (DoD) surplus property to state and local law enforcement agencies to use in law enforcement activities. Working from the position of Firearms Program Manager, MINISH was responsible for coordinating the transfer of DoD weapons, including firearms, to law enforcement agencies.
In 2009, investigators reviewed LESS records as part of an audit. The audit revealed that MINISH failed to maintain records as required for DoD firearms loaned to law enforcement agencies. Dozens of firearms loaned to North Carolina law enforcement agencies through LESS were presently unaccounted for in LESS records. LESS records also reflected that hundreds of firearms were being improperly stored at LESS headquarters in Raleigh. LESS was not itself a law enforcement agency and was not authorized to possess weapons.
During interviews with investigators, MINISH made numerous false statements regarding the firearms identified by the audit as being unaccounted for. MINISH claimed that no firearms were presently stored at LESS headquarters, nor had firearms ever been stored there. At the time, MINISH was aware that hundreds of firearms, including automatic firearms, were improperly stored at LESS. MINISH was also aware that several of the firearms were in his own personal possession.
MINISH mislead investigators with information attributing some of the firearms to certain North Carolina law enforcement agencies. In the ensuing weeks, investigators traveled throughout the state to these law enforcement agencies in a futile effort to account for the firearms. Some law enforcement agencies reported having previously returned missing firearms to MINISH personally.
On May 12, 2009, MINISH notified investigators that some of the questioned firearms were in fact present at LESS headquarters. MINISH initially claimed that the guns and been returned by several law enforcement agencies days earlier. After investigators determined this to be false, MINISH admitted that the guns had been there for months.
On June 16, 2010, LESS received a United States Postal Service package that was addressed to MINISH and was purportedly mailed by the Alamance County Sheriff’s Office. The package was opened and found to contain six of the missing firearms identified by the audit. Investigators determined that the package had not been sent by the Alamance County Sheriff’s Office, but had instead been mailed from a Post Office in Mebane, NC. MINISH eventually admitted that he had been in possession of the firearms, and that he mailed the package to LESS in an attempt to deceive investigators.
Information was developed that MINISH stole additional DoD property that had been, or was to be, loaned to law enforcement agencies through LESS, including: gun safes; tool bins; spectacle kits/goggles; M49 spotting scopes; encrypted radios; Aimpoint rifle scopes; and gun cleaning kits. EBay records associated with an account maintained by MINISH were obtained for the period between August 2008, and September 2010. The records reflected that MINISH sold stolen DoD property on eBay having an acquisition value in excess of $30,000.
At sentencing set for the Court’s August 5th, 2013, term of Court, MINISH faces up to 15 years imprisonment followed by up to three years supervised release and a fine of up to $500,000.
Investigation of this case was conducted by the United States Department of Defense – Defense Logistics Agency, Office of Inspector General; the North Carolina State Bureau of Investigation; the Naval Criminal Investigative Service; and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant United States Attorney Toby Lathan prosecuted the case.
Former Real Estate Broker and Former Police Captain Sentenced in Multi-Million Dollar FraudRead the Press Release
EUGENE, Ore. – Chief U.S. District Judge Ann Aiken sentenced Tamara (Tami) Sawyer, 49, and Kevin Sawyer, 60, of Bend, Oregon, today for their roles in an investment fraud scheme that cost investors almost $6 million. Defendant Tami Sawyer, a former real estate broker, was sentenced to 108 months in federal prison for a litany of charges, including conspiracy, wire fraud, bank fraud, making false statements to financial institutions, and money laundering. Defendant Kevin Sawyer, a former Bend Police Captain, was sentenced to 27 months for making false statements to financial institutions. The defendants were also ordered to pay $5,820,307.55 in restitution to the victims of the fraud. At the conclusion of the sentencing hearing, both defendants were remanded to custody of the U.S. Marshal to begin serving their sentence with the Bureau of Prisons. Upon release from their prison terms, both defendants are ordered to five years of supervised release.
Defendants ran a fraudulent real estate investment scheme through their company Starboard LLC. They enticed investors by falsely promising high rates of return, typically 12 percent, and secured the investments with promissory notes. Rather than investing the money as promised, defendants used it to pay other investors, to fund their other companies and ventures, and to pay personal expenses, including cars, credit cards, and the construction of their $2 million vacation home in Mexico. As a result of defendants’ fraud, investors and banks lost almost $6 million.
“Lying, cheating, and stealing never pays in the end,” commented U.S. Attorney Amanda Marshall. “Individuals like these defendants, who use positions of wealth, prominence, or trust to further their scheme, rob others of more than their hard-earned money and financial independence. They also rob their victims of their ability to trust others, isolating them in society. This behavior cannot and will not be tolerated as shown by today’s sentence.”
“The Sawyers used their standing in the community to sell their investors on what was supposed to be a golden opportunity. However, it was an opportunity tarnished by greed,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon. “More than 30 victims have paid the price for that greed, but, today, they can be assured that the court system has delivered on a promise of justice.”
“The IRS is committed to identifying fraudsters who prey on others in order to satisfy their own greed and to working with our law-enforcement partners to shut them down. Hardworking people entrusted Tamara Sawyer with their savings and financial futures, and she violated that trust for her own financial gain,” said Steven J. Bellis, Assistant Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “This sentencing is a warning that being trusted with money from investors carries a duty to the highest standard of conduct, and that willfully ignoring that duty carries severe consequences.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorneys Scott E. Bradford and Amy E. Potter.
Former Employee of New Jersey Timeshare Consulting Firm Admits Separate Mortgage and Unemployment ScamsRead the Press Release
CAMDEN, N.J. – A former employee in the New Jersey offices of the Vacation Ownership Group LLC admitted today he conspired to defraud owners of timeshare properties by offering phony consulting services while also illegally collecting unemployment benefits, U.S. Attorney Paul J. Fishman announced.
Francis Santore, a/k/a “Frank Martin,” 53, of Northfield, N.J., pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to a Superseding Information charging him with one count of conspiracy to commit mail and wire fraud and one count of mail fraud.
According to documents filed in this case and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, had offices in Mays Landing and Egg Harbor Township, N.J., and claimed to offer consulting services to owners of timeshares, including cancelling, purchasing and upgrading the timeshares.
Santore started working at the VO Group in October 2010, where he was alleged trained by a co-owner of the group, Adam Lacerda, to lie to customers using prepared scripts. Santore admitted that he would give customers the false impression that he was working for a bank or lending institution. He also admitted that he allowed customers to continue operating under the false impression given by his co-workers that the VO Group had the customer’s “complaint file” from a timeshare resort developer in front of them. Santore admitted that he regularly lied to customers in order to perpetrate the scam. Some of those customers then sent checks to the VO Group. Santore admitted that he falsely told a customer that if the customer paid $8,562 to the VO Group, the group would eliminate the customer’s approximately $18,000 mortgage debt with a timeshare developer. Santore admitted causing more than $70,000 in losses.
Santore also devised a separate scheme to defraud the California unemployment system by collecting $16,200 in unemployment compensation benefits while working at the VO Group.
On Jan. 23, 2013, co-owners Adam Lacerda and Ashley Lacerda and other members of the VO Group were variously charged in a Superseding Indictment with conspiracy to commit mail and wire fraud and other charges. Additional members of the VO Group were also charged by criminal Complaint in April 2012. As for the Lacerdas and other defendants who have not been convicted in this case, the charges and allegations against them are merely accusations and they are considered innocent unless and until proven guilty.
Each of the two counts to which Santore pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for Sept. 13, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for their roles in the investigation leading to the guilty plea. He also thanked the state California’s Employment Development Department for its assistance.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Robert A. Mintz Esq., NewarkSantore, Frank Superseding Information
Federal Inmate Charged for EscapingRead the Press Release
MINNEAPOLIS—Earlier today in federal court, an inmate who last month escaped from the Federal Prison Camp in Duluth was charged with one count of escape from custody. Gerald James Greenfield, age 67, of Bloomington, was apprehended following six days on the run.
On March 30, 2013, Greenfield reportedly escaped from the Federal Prison Camp in Duluth. He was serving a 50-month sentence following a 2012 conviction in the District of Minnesota for conspiracy to commit money laundering. According to a law enforcement affidavit filed in the current case, Greenfield was present for a prisoner count at 4:00 p.m. on March 30. However, he was not present for the prisoner count at 10:00 p.m. that evening. On April 5, 2013, law enforcement officials apprehended him at a hotel in Burnsville.
If convicted, Greenfield faces a potential maximum penalty of five years in prison, which could be added to his current sentence. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Federal Court in California Shuts Down Tax PreparerRead the Press Release
A federal court in Los Angeles has entered an order permanently barring John Trunzo from preparing federal income tax returns and other tax-related documents for others, the Justice Department announced today. Trunzo, who operated under the business names “Your Taxman John Trunzo,” “Your Taxman” and “YTJT” in Los Angeles County, consented to the civil injunction order, which was signed by U.S. District Judge Michael W. Fitzgerald.
The government complaint, filed on February 14, 2013, alleged that Trunzo under reported gross receipts on his own income tax returns filed for the tax years 2005 – 2007, causing the government to incur a tax loss of $67,231 for those years. The complaint further alleged that Trunzo provided the Internal Revenue Service (IRS) with false documents in order to convince auditors that his clients had incurred expenses that Trunzo knew they had not incurred, and were entitled to deductions that Trunzo knew were fabricated, which obstructed and impeded the IRS from determining his clients’ true tax liability.
In addition to barring Trunzo from preparing tax returns, Judge Fitzgerald also required Trunzo to create a website to inform his customers of the entry of the permanent injunction within thirty days.
As noted in the complaint, Trunzo was previously charged with one count of subscribing to a false income tax return. He entered a guilty plea to this charge. According to the plea agreement, filed in the criminal case on July 9, 2012, Trunzo agreed to enter into a binding civil injunction, barring him for life from aiding or assisting in the preparation of federal income tax returns for anyone other than himself and his legal spouse, and barring him from representing persons before the IRS.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website . For more information about choosing a tax return preparer, see the IRS website and the IRS YouTube Channel .
Related Materials:
United States v. John Trunzo
Stipulated Order of Permanent Injunction (PDF)
Complaint for Permanent Injunction and Other Relief (PDF)
Federal and State Authorities Arrest El Paso-Based Drug Trafficking Organization on Federal ChargesRead the Press Release
United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit and Federal Bureau of Investigation Special Agent in Charge Mark Morgan announced today that 16 El Paso, Texas defendants have been arrested, based on a 41-count federal indictment charging violations of federal drug and gun laws.
Those arrested and charged by indictment include: Gabriel Fierro, age 41; Jesus Aguiniga, age 29; Adrian Uriel, age 36; Jerry Urbina, age 43; Raul Adrian Chavira, age 30; Daniel Fierro, age 39; Roberto Mendez, age 44; Jaime Aguilar, age 30 ; Javier Alarcon, age 46; Cesar Chavarria, age 31; Marco Antonio Morales, age 37; Evelyn Bencomo, age 22; Angela Marie Webb, age 31; Sharday Vince, age 28; Billy Jack Barrow, age 31; Caleb Jordan McCreless, age 23. Two defendants are fugitives.
A federal grand jury indictment, returned on April 17, 2013, and unsealed today, alleges that from January 2010 to April 2013, all 18 defendants conspired to possess with the intent to distribute in excess of five (5) kilograms of cocaine. Gabriel Fierro, Jesus Aguiniga, Adrian Uriel, Jerry Urbina, Raul Adrian Chavira, Daniel Fierro, Cesar Chavarria, Marco Antonio Morales, Caleb Jordon McCreless, Evelyn Bencomo, and Angela Maria Webb are all charged with possession with intent to distribute and/or distribution of cocaine. Gabriel Fierro, Jesus Aguiniga, Daniel Fierro, Angela Marie Webb, Evelyn Bencomo, Roberto Mendez, and Jerry Urbina are charged with Maintaining a Drug Involved Premise. Jesus Aguiniga, is charged with Possession with Intent to Distribute and/or Distribution of Cocaine and Maintaining a Drug Involved Premise within 1000 feet of a school. Gabriel Fierro and Javier Alarcon are also charged with Possession of a Firearm by a Prohibited Person.
Upon conviction, all defendants face a minimum mandatory of 10 years to life imprisonment on the conspiracy charge; up to 20 years imprisonment on the possession with the intent to distribute and/or distribution of cocaine; up to 20 years on maintaining a drug involved premises; up to 40 years imprisonment on possession with the intent to distribute and/or distribution of cocaine and maintaining a drug involved premises within 1000 feet of a school; and up to 10 years imprisonment on the possession of a firearm by a prohibited person.
In addition to the arrests, five (5) residences in El Paso were searched pursuant to federal search warrants.
FBI Special Agent in Charge Mark Morgan stated, “The arrests today are the culmination of an aggressive joint investigation by the DEA and FBI, as well as, numerous local, state, and federal partners, to rid the city of El Paso of firearm offenders and drug dealers".
“Cocaine destroys the lives of its abusers and has far-reaching negative effects in the areas where it takes hold. By targeting local distribution networks, such as the one in this investigation in the El Paso area, DEA and its law enforcement partners are holding drug dealers responsible for the harm they cause. We will continue to work together to pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs,” stated DEA Special Agent in Charge Joseph M. Arabit.
Other agencies assisted in this investigation to include the El Paso Sheriff’s Office, El Paso Police Department, Texas Department of Public Safety, United States Army Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service, Anthony Police Department , United States Border Patrol, Homeland Security Investigations, Immigrations and Customs Enforcement, and the Texas Alcoholic Beverage Commission. The case is being prosecuted by Assistant United States Attorney Juanita Fielden.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty.
Faribault Man Sentenced for Bank FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 39-year-old Faribault man was sentenced for fraudulently writing 127 company checks to himself. United States District Court Judge David S. Doty sentenced Ronald Leo Schaeffer to 33 months in federal prison on one count of bank fraud in connection to the crime. Schaeffer was charged on December 6, 2012, and pleaded guilty on January 16, 2013.
In his plea agreement, Schaeffer admitted that from August of 2008 through April of 2012, he stole approximately $432,504.10 from his employer, Environmental Tillage Systems, Inc. (“ETS”). ETS, an agricultural manufacturing company in Faribault, hired Schaeffer as its sole in-house accountant. Among other duties, he was responsible for using the QuickBooks accounting software to record information regarding payments owed by ETS to vendors and employees.
Schaeffer admittedly wrote approximately 127 fraudulent checks against the ETS checking account, in amounts ranging from approximately $400 to $12,000, for deposit into his personal account. To conceal his actions, he then made false entries in ETS’s QuickBooks accounting records, indicating that the checks were issued to legitimate ETS vendors when that was not the case.For a period of time, Schaeffer had the authority to use a signature stamp to validate company checks. Beginning in November of 2010, however, he was directed to obtain the actual signature of ETS’s CEO or CFO on all checks before disbursing them. From that point on, he forged the signature of the CEO or CFO on any check that he wrote to himself. Schaeffer used the money he stole from the company to build a lake home in Elysian, Minnesota, and to make payments on his auto and home-equity loans.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Benjamin F. Langner.District Man Sentenced to 14 Years in Prison for 2008 Sexual Assault of Woman in Northeast Washington-DNA Linked Defendant to the Crime-Read the Press Release
WASHINGTON - Antonio Moses, 32, of Washington D.C., has been sentenced to a 14-year prison term for sexually assaulting a woman in 2008, U.S. Attorney Ronald C. Machen Jr. announced.
Moses pled guilty in January 2013, in the Superior Court of the District of Columbia, to a charge of first-degree sexual abuse. He was sentenced on April 12, 2013 by the Honorable Robert E. Morin. Upon completion of his prison term, Moses will be placed on five years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, at approximately 10:30 p.m. on Aug. 3, 2008, the victim, then 18, returned to her home in Northeast Washington after buying groceries. When she entered her home, she was grabbed from behind and thrown to the floor by Moses, a stranger to her. Moses choked the victim and dragged her into her bedroom while holding a small kitchen knife to her throat. He threatened to hurt her if she screamed, and then he sexually assaulted her. After Moses was finished, he forced the victim to stay in the bedroom with him for another hour before finally fleeing at the sound of someone at the front door.
In 2008, the victim’s sexual assault kit was sent to a DNA laboratory for analysis. In April 2012, the Metropolitan Police Department (MPD) received an investigative lead that led them to Moses as the man who had raped the victim in her home in 2008.
In announcing the sentence, U.S. Attorney Machen praised the outstanding work of those who investigated the case for the Metropolitan Police Department, Sexual Assault Unit. He also commended the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialist Donhue Griffith and Victim Witness Advocate Veronica Vaughan. Finally, he praised the work of Assistant U.S. Attorney Lindsay Suttenberg, who investigated this case.
13-152District Man Found Guilty of First-Degree Felony Murder and Other Charges in Killing of 18-Year-Old Latisha Frazier Victim’s Body Was Left in A Dumpster, Never Found; Total of Seven People Now Convicted in CaseRead the Press Release
WASHINGTON – Johnnie Sweet, 19, of Washington, D.C., was found guilty by a jury today of first-degree felony murder and other charges in the August 2010 kidnapping and murder of 18-year-old Latisha Frazier, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The jury returned the verdict following a trial in the Superior Court of the District of Columbia. Sweet was found guilty of first-degree felony murder with aggravating circumstances; first-degree premeditated murder with aggravating circumstances; kidnapping, and tampering with physical evidence. The Honorable Russell F. Canan scheduled sentencing for July 11, 2013. Sweet faces a mandatory minimum of 30 years and a maximum of 60 years of incarceration.
According to the government’s evidence, Sweet was one of the leaders of a group of six young men and women who took part in the murder of Ms. Frazier.
Ms. Frazier vanished on Aug. 2, 2010. For months, her family relentlessly sought to find her, passing out flyers and contacting local news stations to publicize her disappearance. In late January 2011, one witness finally stepped forward and contacted the Metropolitan Police Department, revealing the truth of Ms. Frazier’s whereabouts.
On the day of her disappearance, the government’s evidence showed, Ms. Frazier had been brutally murdered by a group of six young men and women (ages 16 to 23), all of whom she believed to be her friends. The group had suspected - with little evidence - that Ms. Frazier had stolen about $900 from Sweet. Sweet recruited others and exacted a plan of revenge in which they would call her over to an apartment where they claimed to be socializing.
When Ms. Frazier arrived at the apartment in the 1700 block of Trenton Place SE, the group took her to a small bedroom where Sweet and others punched, kicked, and stomped her all over her body. Ignoring her pleas for them to stop, they bound her in duct tape, taped a pillowcase over her head so she could not scream, and shoved her in a small, dark closet. When she screamed and moaned, one of the members of the group placed her in a sleeper hold to “put her to sleep.” Later, the group discovered that she had died.
To dispose of the body, Sweet helped carry her to the bathtub, where he and his friends attempted to dismember her. That evening, Ms. Frazier’s body was thrown into a dumpster, and it is now believed to be somewhere in one or two landfills in rural Virginia.
Of the seven people charged, six former co-defendants have pled guilty. They include Brian Gaither, 25, who was sentenced earlier this month to a 32-year prison term after pleading guilty to first-degree murder; Laurence Kamal Hassan, 24, who pled guilty to second-degree murder and kidnapping; Cinthya Proctor, 21, who pled guilty to second-degree murder, kidnapping and conspiracy to commit evidence tampering; Anneka Nelson, 18, who pled guilty to second-degree murder and kidnapping; Lanee Bell, 19, who pled guilty to kidnapping, and Antoine McCullough, 27, who pled guilty to conspiracy to commit evidence tampering. Except for Gaither, the other defendants are awaiting sentencing.
“Johnnie Sweet showed no remorse in organizing and participating in the senseless murder of Latisha Frazier. The heinous nature of his actions was only matched by the cowardly manner in which he carried out his crime,” said U.S. Attorney Machen. “Today a jury of twelve District of Columbia residents found him guilty of first-degree felony murder and other charges. Mr. Sweet now faces the prospect of spending the rest of his life behind bars. We can only hope that today's result will bring some measure of closure to Latisha Frazier's family, who will forever grieve the loss of their loved one.”
“This was a brutal crime,” said Chief Lanier. “Hopefully, the family of Latisha Frazier can take some comfort in knowing that the culprits will pay for this horrific offense.”
In announcing the verdict, U.S. Attorney Machen and Chief Lanier praised the work of those who investigated the case for the Metropolitan Police Department (MPD), including detectives from the Major Case/Cold Case Squad and the Seventh District.
They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Larry Grasso of the Criminal Intelligence Unit, Victim/Witness Advocate Marcia Rinker, and Paralegal Specialists Kwasi Fields, Phaylyn Hunt, and Angela Lawrence. Finally, they thanked Assistant U.S. Attorneys Christopher R. Kavanaugh and Melinda Williams, who prosecuted the case.
13-153Departments of Justice and Housing and Urban Development Release New Guidance on “Design and Construction” Requirements Under the Fair Housing ActRead the Press Release
New guidance released today by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Justice reinforces the Fair Housing Act requirement that multifamily housing be designed and constructed so as to be accessible to persons with disabilities.
The Fair Housing Act prohibits discrimination in housing based on disability, race, color, national origin, religion, sex and familial status. The Fair Housing Act also requires that multifamily housing with four or more units, built for first occupancy after March 1991, contain accessible features for persons with disabilities.
The new guidance is designed to help design professionals, developers and builders better understand their obligations and help persons with disabilities better understand their rights regarding the “design and construction” requirements of the federal Fair Housing Act.
“Everyone who is involved in designing and building multifamily housing must ensure that the required accessible features are present so that people with disabilities can use and enjoy their homes,” said Eric Halperin, Senior Counsel and Special Counsel for Fair Lending in the Civil Rights Division. “This guidance will help design professionals and builders understand their obligations under this important component of the Fair Housing Act.”
“With one of five persons in this nation having a physical disability, housing units that include the required features of accessibility are more important than ever.” stated John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity (FHEO). “This new guidance will assist developers in constructing housing that complies with the Fair Housing Act’s design and construction requirements from the start and avoid having to deal with costly retrofitting later.”
HUD and the Justice Department share responsibility for enforcing the federal Fair Housing Act. HUD is the agency with the primary responsibility to investigate individual complaints of discrimination. The Secretary of HUD, on his own initiative, may also file complaints alleging discrimination. The Attorney General may commence a civil action in federal court when there is reasonable cause to believe that someone is engaged in a pattern or practice of discrimination or that a group of persons has been denied rights protected by the act.
Under the act, new multifamily housing must include:
· Public and common use areas that are readily accessible to and usable by persons with disabilities; and
· Doors that are designed to allow passage into and within all premises of covered dwellings and that are sufficiently wide to allow passage by persons with disabilities, including persons who use wheelchairs.
In addition, all premises within covered dwellings must contain:
· An accessible route into and through the dwelling unit;
· Light switches, electrical outlets, thermostats, and other environmental controls in accessible locations;
· Reinforcements in bathroom walls to allow the later installation of grab bars;
· Usable kitchens and bathrooms such that an individual using a wheelchair can maneuver about and use the space.
The new guidance, issued in the form of questions and answers, supplements previously-issued guidance and answers such questions as:
· What are the design and construction requirements?
· Who must comply with the design and construction requirements?
· What types of dwellings are covered by the design and construction requirements?
· What are accessible routes?
· What is an accessible entrance?
· What is an accessible public and common use area?
· What safe harbors are available for compliance with the design and construction requirements?
The new guidance is available here. Information about the guidance is also available at www.fairhousingfirst.org .
Since January 2009, HUD and its Fair Housing Assistance Program partners have investigated and either conciliated or charged nearly 5,000 cases that alleged discrimination based on disability, and the Justice Department’s Civil Rights Division has filed 141 cases to enforce the Fair Housing Act, 19 of which have alleged discrimination based on a failure to design and construct multifamily housing in compliance with the act.
For more information about HUD and the civil rights laws it enforces, go to www.hud.gov/fairhousing and click on “Learn more about FHEO.” More information about the Justice Department’s Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/index.php .
Individuals who believe that they may have been victims of housing discrimination should contact HUD at 1-800-669-9777 or go to HUD’s web site: www.hud.gov/fairhousing , or by downloading HUD’s free housing discrimination mobile application, which can be accessed through Apple devices, such as the iPhone, iPad and iPod touch .
In addition, individuals may contact the Justice Department at 1-800-896-7743 or by email at [email protected] .
Defendant Sentenced Following Conviction on Charges Related to Marriage FraudRead the Press Release
United States Attorney Kenyen R. Brown announced today that Florence Chigozie Nna, a citizen of the Federal Republic of Nigeria, and a Legal Permanent Resident of the United States, was sentenced to six (6) months imprisonment following a jury verdict in which she and her co-defendant were found guilty of marriage fraud charges. During the course of the January trial, Nna testified that she was divorced from her Nigerian husband, Oluwagbenga Awoleye, at the time she married United States citizen Rodney Hill. Awoleye pled guilty in a separate marriage fraud case in November 2012. An investigation by the United States Consulate in Lagos, Nigeria, completed after Nna’s trial, revealed that the Nigerian court documents offered by Nna to prove her divorce from Awoleye were fake. Nna and Hill were married in Mobile County Probate Court on February 11, 2008, when Nna was approximately 8 months pregnant, with her third child by Awoleye. Trial testimony from a number of witnesses was that Nna, Hill and Awoleye all worked together at the Salvation Army at the time of Nna and Hill’s marriage. Further testimony demonstrated that a variety of false information was submitted to United States Citizenship and Immigration Services by Nna and Hill in their efforts to obtain Nna’s “green card”. Trial testimony also refuted Nna’s claim that she lived with Hill following their marriage, and in fact proved that Nna and Awoleye continued to live with Awoleye and their children.
In imposing the six month custody sentence, United States District Court Judge Callie V.S. Granade overruled Nna’s objection to her sentencing range being increased because of her obstruction of justice. The obstruction increase resulted fom a finding that Nna provided materially false testimony during her trial. Prior to the imposition of sentence, Nna addressed the Court still insisting that the marriage to Hill was not a sham, despite all evidence to the contrary.
This case was investigated by Special Agent Daniel Evans of Homeland Security Investigations. The case was prosecuted by Assistant United States Attorneys Vicki Davis and Michele O’Brien of the Southern District of Alabama.
Daphne Man Sentenced in Healthcare Fraud Billing CaseRead the Press Release
Kenyen Brown, U.S. Attorney for the Southern District of Alabama, announces that defendant Nehal Bodalia, who pled guilty to healthcare fraud information in February, was sentenced to four years in prison, followed by three years of supervised release, and ordered to pay a $20,000 fine. From at least January 2010 through January 2013, Bodalia owned and operated the Rehab in Motion physical therapy practice, which had locations in Mobile and Robertsdale, Alabama. While operating his clinic, Bodalia devised and executed a scheme to defraud Blue Cross & Blue Shield of Alabama by seeking reimbursement for medical procedures that had not been performed.
Bodalia’s scheme operated like this: Physical therapists working at Rehab in Motion would input the procedures performed on a particular patient into an office computer program, which would generate billing tickets that were then sent to the patient’s insurance company. Bodalia directed the physical therapists to not close out the billing tickets after they entered the performed procedures. It was explained the reason the billing tickets should not be closed out by the therapists was so that Bill Jones of Affordable Billing in New Jersey, who supposedly handled billing for Rehab in Motion, could make any necessary changes to the tickets. However, Bill Jones does not exist, and Affordable Billing does not have a New Jersey office. Rather, after the therapists had entered the information into the computer system, Bodalia altered the billing tickets to make it appear as if certain medical procedures were performed, when, in fact, they had not been performed. Bodalia knew these fraudulently altered tickets would be submitted to an insurance company for reimbursement.
BC/BS Alabama confronted Bodalia with billing discrepancy and he quickly paid back the insurance company. However, this was not Bodalia’s first experience with a healthcare fraud. In 2008, Bodalia was convicted of healthcare fraud in U.S. District Court for the Northern District of Georgia for a nearly identical billing fraud scheme.
This case was investigated by the Federal Bureau of Investigation in Mobile and Blue Cross & Blue Shield of Alabama in Birmingham. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Dallas Residents, Affiliated with Bridgemark Investment Group, Plead Guilty to Roles in Mortgage Fraud ConspiracyRead the Press Release
Fraud Resulted in More Than $10 Million in Fraudulently Obtained Loan Proceeds
DALLAS — On the day before their trial was to begin in federal court, Dallas residents, Eric Damon Johnson and Tracie Elaine Stenson, pleaded guilty to their roles in a mortgage fraud conspiracy that they ran in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Johnson, 51, pleaded guilty to a superseding information charging one count of conspiracy to commit wire fraud affecting a financial institution. According to the terms of his plea agreement, the government agreed to recommend a sentence of not more than 48 months; that recommendation, however, is not binding upon the Court. Johnson was a licensed loan officer and mortgage broker and the president of Bridgemark Investment Group (BIG), which had offices on Hampton Road in Desoto, Texas. BIG’s motto was “Bridging the Gap between the Poor and the Wealthy.”
Stenson, 50, pleaded guilty to one count of conspiracy to commit wire fraud, as charged in the indictment returned by a federal grand jury in Dallas in October 2011. According to the terms of her plea agreement, and if the Court accepts the terms of that plea agreement, the parties agree that a sentence of no more than 84 months in custody is the appropriate disposition of the case. As the Chief of Operations at BIG, Stenson worked as a loan officer and processor.
According to documents filed in the case, Johnson and Stenson conspired to fraudulently obtain mortgage loans in excess of the true sales price of residential real estate properties by making false statements on loan applications and submitting fake invoices for construction upgrades or repairs that were never performed. The conspiracy resulted in more than $10 million in fraudulently-obtained loan proceeds.
BIG recruited individuals to purchase residential real estate as “investors” and Johnson and Stenson promised investors that BIG would find tenants to rent the property and make the mortgage payments. Johnson and Stenson agreed to make payments to the “investors” when the loan closed that were not disclosed to the mortgage lender on the HUD-1 Settlement Statement. Stenson prepared false loan applications for the investors that included, among other things, material misrepresentations regarding the borrower’s monthly income, intention to occupy the property, assets and liabilities. The loan applications were submitted to residential mortgage lenders, who on the basis of the false statements in the loan applications, agreed to fund primary and secondary mortgages for residential real estate properties.
This case is being prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The investigation was conducted by the FBI and Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys J. Nicholas Bunch and P.J. Meitl are in charge of the prosecution.
Crownpoint Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Sampson Antonio, Jr., 24, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pleaded guilty this morning to involuntary manslaughter under a plea agreement with the U.S. Attorney’s Office.
Antonio was arrested in July 2012, on a criminal complaint charging him with involuntary manslaughter in connection with the death of a 19-year-old Navajo woman in Mariano Lake, N.M., on April 21, 2012. Antonio subsequently was indicted and charged with driving a vehicle while intoxicated and running over the victim and causing her death.
During this morning’s proceedings, Antonio pled guilty to the indictment and admitted killing the victim on April 21, 2012, while driving under the influence of alcohol and driving recklessly.Antonio was remanded into the custody of the U.S. Marshals Service after entering his guilty plea and will be detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Antonio faces a maximum penalty of eight years in prison.
This case is being prosecuted by Assistant U.S. Attorneys Kyle T. Nayback and David M. Adams, and was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety.Covington Man Sentenced to over 59 Years for Kidnapping, Armed Bank Robbery, and Firearm OffensesRead the Press Release
COVINGTON, KY - A Kenton County man convicted last December of kidnapping, armed bank robbery and firearm offenses was sentenced to 711 months in federal prison.
U.S. District Judge Danny C. Reeves sentenced 40-year-old Joseph Weir on Monday for kidnapping, brandishing a firearm in furtherance of kidnapping, armed bank robbery, and possessing a firearm in furtherance of bank robbery. Judge Reeves also ordered Weir to pay $1,492.75 in restitution. Under federal law, Weir must serve 85 percent of his prison sentence.
Weir was indicted in March of 2012 and convicted in two separate trials in December of 2012.
Evidence at the first trial showed that on May 31, 2011, Weir kidnapped a 75 year- old patron of the Crestview Town Center by threatening her with a knife and a .357 caliber handgun. After forcing his way into the victim’s car, he took her purse and attempted to access her bank accounts.
Weir eventually transported the victim to a remote area near Cleves, Ohio. He then used his knife to cut the victim’s sweater into pieces and used them to gag and tie her to a tree near the bank of the East Miami River. Weir abandoned the victim there and took her car back to Kentucky, leaving it near his Covington residence. The victim freed herself from the tree and eventually found assistance at a nearby road. She suffered minor injuries.
In the other trial, evidence revealed that Weir robbed the Huntington Bank at Sixth and Madison in Covington of $900.00 on December 5, 2011. He entered the bank, concealing a .380 caliber handgun in his coat and passed a note to the teller threatening to shoot. After fleeing the bank with the money, Weir hid the jacket, shoes, and eyeglasses he wore during the robbery. Officers recovered the items near the bank and linked them to Weir using surveillance video and witness statements.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentence.
The investigation was conducted by the FBI, the Covington Police Department, the Hamilton County Sheriff’s Office, the Boone County Sheriff’s Office, and the Lakeside Park / Crestview Hills Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Tony Bracke and Elaine Leonhard.
Court Authorizes Service of John Doe Summons Seeking the Identities of U.S. Taxpayers with Offshore Accounts at Canadian Imperial Bank of Commerce’s FirstCaribbean International BankRead the Press Release
The Justice Department announced that late yesterday a federal court in San Francisco entered an order authorizing the Internal Revenue Service (IRS) to serve a John Doe summons seeking information about U.S. taxpayers who may hold offshore accounts at Canadian Imperial Bank of Commerce FirstCaribbean International Bank (FCIB). The order was signed by Senior District Judge Thelton E. Henderson. The IRS summons seeks records of FCIB’s United States correspondent account at Wells Fargo N.A., which will allow the IRS to identify U.S. taxpayers who hold or held interests in financial accounts at FCIB and other financial institutions that used FCIB’s Wells Fargo correspondent account.
Pursuant to a petition filed by the United States, the Court granted the IRS permission to serve what is known as a “John Doe” summons on Wells Fargo. The IRS uses John Doe summonses to obtain information about possible violations of internal revenue laws by individuals whose identities are unknown. This John Doe summons directs Wells Fargo to produce records identifying U.S. taxpayers with accounts at FCIB and other banks that used FCIB’s correspondent account.
According to the declaration of IRS Revenue Agent Cheryl R. Kiger filed in support of the petition, FCIB is based in Barbados and has branches in 18 Caribbean countries. Although FCIB does not have U.S. branches, it maintains a correspondent account in the United States at Wells Fargo Bank N.A. As alleged in Agent Kiger’s declaration, the IRS learned that U.S. taxpayers were using FCIB to help them keep their offshore accounts undetected by the IRS and not to pay U.S. federal income tax on money placed in those offshore accounts. Kiger’s declaration describes her review of the information submitted by more than 120 FCIB customers who participated in the IRS’s Offshore Voluntary Disclosure Program. According to the Kiger declaration, many of the FCIB customers in the John Doe class may have been under-reporting income, evading income taxes, or otherwise violating the internal revenue laws of the United States.
“The Department of Justice and the IRS are committed to global enforcement to stop the use of foreign bank accounts to evade U.S. taxes,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “This John Doe summons is a visible indication of how we are using the many tools available to us to pursue this activity wherever it is occurring. Those who are still hiding should get right with their country and their fellow taxpayers before it is too late.”
“This summons marks another milestone in international tax enforcement,” said IRS Acting Commissioner Steven T. Miller. “Our work here shows our resolve to pursue these cases in all parts of the world, regardless of whether the person hiding money overseas chooses a bank with no offices on U.S. soil.”
In a similar case, on Jan. 28, 2013, the U.S. District Court for the Southern District of New York entered an order authorizing the IRS to serve a John Doe summons on UBS AG, seeking records of Swiss bank Wegelin & Co.’s United States correspondent account at UBS, which will allow the United States to determine the identity of U.S. taxpayers who hold or held interests in financial accounts at Wegelin and other Swiss financial institutions to evade federal income taxes.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. A deliberate failure to report a foreign account can result in a penalty of up to 50 percent of the amount in the account at the time of the violation. U.S. taxpayers are reminded that the IRS currently has in place an Offshore Voluntary Disclosure Program where U.S. taxpayers can come forward and disclose their offshore accounts and income. For more details, please go to the IRS’s website: www.irs.gov/uac/2012-Offshore-Voluntary-Disclosure-Program .
A correspondent account is a bank deposit account maintained by one bank for another bank. Financial transactions involving U.S. dollars flow through U.S. banks. Therefore, foreign banks that do business in U.S. dollars, but have no office in the U.S., obtain a correspondent account at a U.S. bank in order to engage in such transactions. These transactions leave a trail in the U.S. that the IRS can access through the records of the correspondent bank accounts. These correspondent bank accounts have records of money deposited, money paid out through checks and money moved through the correspondent account by wire transfers. All of this information the IRS can obtain through a John Doe summons issued to the U.S. bank holding the correspondent account.
Related Materials:
In the Matter of the Tax Liabilities of: John Does, etc.
Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Declaration of Revenue Agent Cheryl R. Kiger in Support of Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Order Granting Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)California Rural Indian Health Board Inc. Settles False Claims Act LawsuitRead the Press Release
SAN FRANCISCO - The California Rural Indian Health Board Inc. (“CRIHB”), a nontribal entity and grantee of the U.S. Department of Health and Human Services (“HHS”), Substance Abuse and Mental Health Services Administration (“SAMHSA”), agreed to pay the United States $532,000, and to be terminated from an existing SAMHSA grant, thereby relinquishing funds valued at over $4.6 million, announced United States Attorney Melinda Haag. In addition, CRIHB will be subject to certain administrative conditions imposed by SAMHSA, and will not be eligible to apply for any new SAMHSA funding opportunities for two federal fiscal years.
The settlement resolves a lawsuit filed against CRIHB in July 2012 by the U.S. Attorney’s Office under the federal False Claims Act, 31 U.S.C. §§ 3729-33. The United States alleged that CRIHB submitted false claims by, among other things, eliminating the substance abuse screening and assessment required of certain Access to Recovery (“ATR”) program applicants, and instructing ATR service providers to pay for prohibited expenses, such as the clients’ rent, mortgage, utilities, and auto repairs. The lawsuit further alleged that CRIHB instructed the ATR service providers to bypass voucher rules, all contrary to the terms of the ATR grant and HHS regulations.
“This settlement is a victory for all ATR clients who need substance and alcohol abuse treatment and recovery support. It sends a clear message that my office is committed to ensuring that federal grant funds are used for their intended purpose.” U.S. Attorney Haag said.
Gioconda Molinari and Douglas Chang are the Assistant U.S. Attorneys who handled the case with the assistance of Paralegal Tiffani Chiu and Auditor Michael Zehr. The settlement is the result of a four-year investigation by the HHS-Office of Inspector General, led by Special Agent Jennifer Spaulding.
(Final Amended Complaint )
(Final Addendum A )
(Final Addendum B )
(Final Executed Agreement )
California Man Seeking Sex with Children Sentenced to 18 Years in PrisonRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former Los Angeles County Sheriff's Department employee to 18 years in prison for attempted child enticement and distributing child pornography, announced U.S. Attorney Joyce White Vance and Immigration and Customs Enforcement's Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
U.S. District Judge Virginia Emerson Hopkins sentenced MARK ROBIN RAINWATER, 46, for crimes connected to his October flight from California to Birmingham to have sex with two young boys. Rainwater pleaded guilty in January to one count of attempting to entice a child for sexual activity and one count of distributing child pornography. The judge ordered him to serve 20 years supervised release after completing his prison sentence.
"Our children deserve every measure of protection we can give them," Vance said. "We will use every tool we have to find and stop child predators from abusing and torturing children," she said.
"This case shows child sexual predators will be identified and investigated by HSI and its law enforcement partners, regardless of who they are or where they're located," Parmer said. "By coordinating federal, state and local law enforcement efforts, the Alabama Internet Crimes Against Children Taskforce ensured this predator was promptly identified so he can no longer harm innocent children," he said.
Rainwater had worked 14 years in the information technology department of the Los Angeles County Sheriff's Department when, in August 2012, he began communicating via the Internet, e-mail, and instant and text messages with an undercover police officer, according to his plea agreement and other court documents. Rainwater believed he was communicating with a parent willing to allow Rainwater to have sex with his two young boys, ages 13 and 8.
Rainwater was arrested when he arrived at Birmingham's Shuttlesworth International Airport on Oct. 12. Court records show that his luggage contained sex toys and children's toys. Later searches of Rainwater's digital storage media and e-mail accounts revealed 242 videos and more than 4,477 images of child pornography, some of which involved babies, toddlers, and prepubescent children involved in sadomasochistic and lewd and lascivious behavior.
ICE-HSI and the Alabama Bureau of Investigation's Internet Crimes Against Children Task Force investigated this case, and Assistant U.S. Attorney Henry Cornelius prosecuted it.