Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
30 April 2013
Bullhead Man Sentenced on Domestic Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead man convicted of Domestic Assault by a Habitual Offender was sentenced on April 29, 2013, by U.S. District Judge Charles B. Kornmann. Willard Paul Farrell, III, age 25, was sentenced to 33 months of imprisonment, 3 years of supervised release, and a $100 special assessment.
Farrell was indicted by a federal grand jury in August 2012. On January 2, 2013, he pled guilty to Count I of the indictment that charged him with Domestic Assault by a Habitual Offender.
The conviction stems from an incident in January 2011 when the Defendant ran up to the victim, unprovoked, and assaulted her on a public street. The Defendant and the victim had previously been in a domestic relationship, and at the time of the incident, the victim had a restraining order in place to prevent the Defendant from having contact with or harassing her.
As a result of the assault, the victim sustained numerous scrapes and bruises, along with a fractured cheekbone.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley prosecuted the case.
Farrell was immediately turned over to the custody of the U.S. Marshal.
Bullhead Man Pleads Guilty to AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Morgan Bagola, age 21, of Bullhead, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on April 30, 2013, and pled guilty to Count II of the indictment that charged him with Assault Resulting in Serious Bodily Injury. 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 wherein Bagola used a bat to break several windows of a home. Bagola then fought with one of the other persons present. The victim suffered serious bodily injury, including a broken ankle, laceration on his head, and a large welt on his back.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case. Bagola was remanded to the custody of the U.S. Marshal’s Service pending sentencing which has been set for August 12, 2013.
Blackfoot Man Sentenced for Arson at Ft. Hall HomeRead the Press Release
POCATELLO –Trevor James Hurley, 20, of Blackfoot, Idaho, was sentenced today in United States District Court to 36 months in prison followed by five years of supervised release for arson, U.S. Attorney Wendy J. Olson announced. Hurley appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
In court on January 24, 2013, Hurley admitted that in the early morning hours of August 6, 2012, he set fire to a manufactured home or trailer located on the Fort Hall Shoshone Bannock Indian Reservation. According to the plea agreement, witnesses observed Hurley earlier in the night purchasing cotton balls and lighter fluid at a convenience store. Hurley later returned to the convenience store, bragging about how he had set someone's trailer on fire. In an interview with law enforcement on September 11, 2012, Hurley explained how he poured lighter fluid on the cotton balls, lit them on fire, and pushed them through a hole in the screen to the trailer's master bedroom window. Hurley said that the trailer ignited fast, flames shot up, and then he ran back to his friends in a nearby vehicle. Although the trailer was a total loss, and another person was sleeping in a camp trailer located approximately 10 feet away, no one was injured in the fire.
The case was investigated by the Fort Hall Police Department, Idaho State Fire Marshal, and the Bingham County Sheriff's Office.
Birmingham Woman Pleads Guilty to Multi-State Identity Theft ConspiracyRead the Press Release
BIRMINGHAM – A Birmingham woman pleaded guilty today to participating in a multi-state identity-theft and counterfeit-check scheme that included recruiting homeless people to cash the fraudulent checks, announced U.S. Attorney Joyce White Vance, U.S. Postal Inspector in Charge Keith Morris, FBI Special Agent in Charge Richard D. Schwein Jr., and U.S. Secret Service Acting Special Agent in Charge Jeff Anderson.
DAPHNE COLLETTE TATE, 42, pleaded guilty before U.S. District Judge L. Scott Coogler to conspiring with five other people to defraud more than two dozen banks in Alabama, Georgia and Florida. She also pleaded guilty to aggravated identity theft, possessing a business check stolen from the U.S. mail, and possessing a counterfeit check.
Tate was arrested and indicted individually in February. A federal grand jury returned a superseding indictment in March, charging Tate and five other defendants in the multi-state identity-theft conspiracy. Charged along with Tate are her cousin KEITH LAMAR REESE, 46, also of Birmingham, and four Atlanta-area residents, COLUNDRIA SEATS, 36, DEMARIO S. MORMON, 27, CLIFFTON A. MORMON, 31, and BRETT E. FALCONER, 27. The superseding indictment was unsealed April 23.
"In this age of multi-state fraud schemes, it is more important than ever for federal and state law enforcement agencies to coordinate their efforts to best protect the public," Vance said. "My office is privileged to be part of such collaborative efforts that result in prosecuting cases where organized criminal rings operate across city, county, and state lines," she said. "We will continue this mission."
According to the March indictment, Tate and other conspirators conducted their scheme in Alabama, Georgia and Florida between September 2011 and February 2013 as follows:
They obtained account and routing information for various businesses' legitimate checking accounts in at least 25 banks through various means, including stealing checks from the mail and engaging people who had access to account information. Falconer was employed by Regions Bank and accessed the bank's records for the conspiracy during her employment. Falconer provided co-conspirators with information from Regions' accounts and from checks presented at Regions Bank. Other conspirators, including Demario and Cliffton, used that genuine account and routing information to manufacture counterfeit business checks.
Tate, Seats, and Reese would locate people, often the homeless, who had government-issued identification cards and would join the conspiracy as check-cashers. Tate, Seats, Reese and other co-conspirators would transport the check-cashers to locations where they would cash or attempt to cash the counterfeit checks. Members of the conspiracy would divide the proceeds of the successfully cashed checks among themselves.
Each defendant faces a maximum sentence of 30 years in prison and a $1 million fine if convicted of conspiracy to commit bank fraud. Each also faces a potential two-year prison term and $250,000 fine for each count of aggravated identity theft. In addition, a conviction for possessing a counterfeit check carries a maximum sentence of 10 years in prison and a $250,000 fine for Tate, who also faces a possible five years in prison and a $250,000 fine for each count of possessing stolen mail.This case was investigated by the U.S. Postal Inspection Service, the FBI, the U.S. Secret Service, and the Pelham, Trussville and Vestavia Hills police departments, with assistance from Regions Bank corporate investigators. Assistant U.S. Attorney Melissa K. Atwood is prosecuting the case.
While Tate has pleaded guilty to her role in the conspiracy, the remaining defendants are only charged by indictment. The public is reminded that an indictment is merely an accusation. They are presumed innocent and it will be the government's obligation to prove their guilt beyond a reasonable doubt at trial.
Beasley Guilty PleaRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux announced that the KIAMANI A. BEASLEY, 27, of Jeanerette, Louisiana, pled guilty today before United States District Court Judge James J. Brady to defrauding the Louisiana Association of Community Action Partners, a non-profit organization which receives funding from the federal government’s American Recovery and Reinvestment Act Program. BEASLEY faces a sentence of up to ten (10) years imprisonment and a fine of up to $250,000.
Louisiana Association of Community Action Partners was established to organize and strengthen the forty-two (42) private and public Community Action Agencies (CAAs) in Louisiana. CAAs were established to address the effects and causes of poverty and to increase self-sufficiency among the poor. CAAs implemented many education and health programs funded by the federal government. As Finance Director of Louisiana Association of Community Actions Partners, BEASLEY was responsible for overseeing the financial integrity of the organization, including the accounting and distribution of federal funds.
At today’s hearing, BEASLEY admitted that on multiple occasions from September 5, 2011 until on or about November 2, 2011, she used her position of trust to embezzle $50,858 which were to be used for computer software training and weatherization services.
The investigation of this matter was conducted by the U.S. Department of Energy Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Reginald E. Jones.
Ball Resident Pleads Guilty to Child Pornography PossessionRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that Alexander MacIver, 23, of Ball, La., pleaded guilty before U. S. District Judge Dee D. Drell to possessing child pornography on his computer.
According to evidence presented at the guilty plea, authorities discovered more than 10 images of child pornography and one video on MacIver’s laptop, after authorities executed a search warrant of his home on July 18, 2011. The images and video involved minors engaged in sexually explicit conduct. MacIver admitted to downloading the material off the internet.
MacIver faces up to 10 years in prison, a $250,000 fine, and five years to life of supervised release. Sentencing has been set for Aug. 12, 2013. The Rapides Parish Sheriff’s Office and the U.S. Department of Homeland Security/Lafayette investigations unit conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips can be submitted to ICE investigators online at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Arizona Man Sentenced to Ten Years in Federal Prison for Marijuana Trafficking ConvictionRead the Press Release
ALBUQUERQUE, N.M. – Jesse Bruner, 46, of Douglas, Ariz., was sentenced this afternoon to 120 months in federal prison followed by three years of supervised release for his marijuana trafficking conviction. Bruner’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, Dennis A. Ulrich, II, Special Agent in Charge of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Patrol Agent Scott A. Luck, El Paso Sector, U.S. Border Patrol.
Bruner and a co-defendant, a 72-year-old woman from Kentucky, were arrested by U.S. Border Patrol agents on April 7, 2011, in Hidalgo County, N.M., after finding approximately 239 pounds of marijuana in a vehicle driven by the woman and in which Bruner was a passenger. Bruner alone was indicted on July 20, 2011, and charged with possession of marijuana with intent to distribute. Bruner entered a guilty plea to the indictment on Oct. 6, 2011. He has been in federal custody since his arrest.
Court records reflect that on April 7, 2011, U.S. Border Patrol agents followed the vehicle driven by the woman as it traveled north on Hidalgo County Road 1 toward Animas, N.M., and then abruptly turned onto a local ranch road and stopped at the only house on the road. They observed Bruner get out of the vehicle and knock on the door to the house. The woman then drove the vehicle around the back of the house and back to Hidalgo County Road 1 where she slowed down and stopped when she saw the agents. When the agents approached the vehicle to speak with the woman, they observed large bundles on the back seat that were packaged in a manner consistent with packaging for marijuana. After arresting the woman, the agents arrested Bruner who had remained in the vicinity of the house. A search of the vehicle revealed that it contained ten bundles containing an aggregate of 238.95 pounds of marijuana.
The charges against the woman were dismissed before Bruner was indicted after law enforcement authorities determined that Bruner deceived her into participating in his drug trafficking activities. Bruner also threatened her life when she objected to participating in the crime.
The case was investigated by HSI in Deming, N.M., and the U.S. Border Patrol in Lordsburg, N.M., and was prosecuted by Assistant U.S. Attorneys Jacob A. Wishard and Luis A. Martinez.Amarillo Anesthesiologist Arrested on Federal Tax Evasion ChargesRead the Press Release
Dr. Edgar A. Lockett, Jr. Formerly Resided and Practiced in Mineral Wells and McAllen, Texas
AMARILLO, Texas — Edgar A Lockett, Jr., was arrested yesterday on felony charges outlined in a federal indictment returned by a federal grand jury earlier this month, and just unsealed, charging tax evasion. Lockett made his initial appearance this morning before U.S. Magistrate Judge Clinton E. Averitte, who remanded him into custody pending further proceedings set for this Thursday, May 2, 2013, at 9:30 a.m. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the indictment, Lockett is a self-employed anesthesiologist who currently resides in Amarillo; he formerly resided and practiced in other cities in Texas, including Mineral Wells and McAllen. Currently, according to the indictment, Lockett bills under the name of Medical & Health Alliance Ministries.
The indictment alleges that Lockett has not filed income tax returns since 1999, except for a joint returned filed with his spouse for tax year 2007. The indictment alleges that for tax years 2000 through 2010, Lockett owes the United States $1,432,740 in unpaid income taxes.
According to the indictment, Lockett concealed from the IRS the nature, extent and location of his assets by placing funds and property in the names of nominee companies and secreting his income in bank accounts that he opened using his deceased father’s name and social security number.
A federal indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Lockett is charged with six counts of tax evasion, and if convicted, each count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered.
The investigation is being conducted by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christy Drake is in charge of the prosecution.
Allentown Man Indicted on Child Exploitation ChargesRead the Press Release
PHILADELPHIA - Ramy Ahmed, 30, of Allentown, PA, was charged today by indictment with transportation of child pornography, distribution of child pornography, possession of child pornography, coercion and enticement of a minor, and traveling with intent to engage in illicit sexual conduct, announced United States Attorney Zane David Memeger. The indictment alleges that between February 2013 and April 2013, Ahmed engaged in online conversations with an undercover agent posing as the father of an 8-year old girl whom Ahmed expressed an interest in having sex with. It is further alleged that Ahmed sent images of child porn to the agent and, on April 2, 2013, drove from Allentown the New Jersey to meet with the agent thinking he is setting up a sexual encounter with the child. He was arrested and charged by criminal complaint and remains in custody pending an arraignment.
If convicted the defendant faces a maximum possible sentence of life in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Special Assistant United States Attorney Karen A. Fox.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alabama Women Indicted for Cashing Fraudulently Obtained Tax Refund ChecksRead the Press Release
Montgomery, Alabama - A federal grand jury in Montgomery, Alabama, returned an indictment charging Shatoubrioune Hare George, who is also known as “Tobie”, for conspiring to cash fraudulently obtained federal tax refund checks, the Department of Justice, United States Attorney George L. Beck, Jr., and the Internal Revenue Service (IRS) announced today. The 6-count indictment charges George with conspiracy to commit theft of public funds and with theft of public funds.
According to the indictment, George and others obtained U.S. Treasury tax refund checks that were issued due to the filing of fraudulent tax returns. George and others cashed seventy-seven fraudulently obtained U.S. Treasury tax refund checks that totaled approximately $137,016.24 by bringing them to a bank teller who worked for a bank in Wetumpka, Alabama.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, she faces 5 years imprisonment for the conspiracy count and faces 10 years imprisonment for each theft of public funds count. She is also subject to fines, mandatory restitution, and forfeiture if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Charles Edgar, Jr. and Michael Boteler of the United States Department of Justice, Tax Division, and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Justice Department's Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Woman Indicted for Cashing Fraudulently Obtained Tax Refund ChecksRead the Press Release
A federal grand jury returned an indictment charging Shatoubrioune Hare George, a.k.a. “Tobie,” with conspiring to cash fraudulently obtained federal tax refund checks, the Justice Department and the Internal Revenue Service (IRS) announced today. The six-count indictment charges George, of Montgomery, Ala., with conspiracy to commit theft of public funds and with theft of public funds.
According to the indictment, George and others obtained federal tax refund checks issued by the IRS as a result of the filing of fraudulent tax returns. She and others cashed 77 fraudulently obtained U.S. Treasury tax refund checks totaling approximately $137,000 through a bank teller who worked for a bank in Wetumpka, Ala.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, George faces a potential maximum of five years in prison for the conspiracy count and 10 years in prison for each theft of public funds count. She is also subject to fines, mandatory restitution and forfeiture if convicted.
The case was investigated by special agents of IRS - Criminal Investigation. Trial attorneys Charles Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Related Materials:
George Indictment
Alabama Resident Indicted in Stolen Identity Refund Fraud SchemeRead the Press Release
Bridgette Rivers, a resident of Montgomery, Ala., was indicted by a federal grand jury on charges of conspiracy and theft of government funds related to her participation in a scheme to use stolen identities to file fraudulent tax returns, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to the indictment, Rivers provided identity information to co-conspirators, who then used the stolen identities, among other identities, to file false tax returns that fraudulently requested tax refunds from the IRS. Rivers is also alleged to have recruited another individual to provide her bank account information for use in the conspiracy. Fraudulently obtained tax refunds allegedly went into that individual’s bank account and the individual would then withdraw the money to give to Rivers.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Rivers faces a maximum potential sentence of 10 years in prison for the conspiracy charge and each theft of public funds charge. She would also be subject to fines, mandatory forfeiture and restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Jason Poole of the Justice Department’s Tax Division are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
Related Materials:
United States v. Bridgette Rivers
Rivers Indictment (PDF)Alabama Resident Indicted in Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Bridgette Rivers, a resident of Montgomery, Ala., was indicted by a federal grand jury on charges of conspiracy and theft of government funds related to her participation in a scheme to use stolen identities to file fraudulent tax returns, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
According to the indictment, Rivers provided identity information to co-conspirators, who then used the stolen identities, among other identities, to file false tax returns that fraudulently requested tax refunds from the IRS. Rivers is also alleged to have recruited another individual to provide her bank account information for use in the conspiracy. Fraudulently obtained tax refunds allegedly went into that individual’s bank account and the individual would then withdraw the money to give to Rivers.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Rivers faces a maximum potential sentence of 10 years in prison for the conspiracy charge and each theft of public funds charge. She would also be subject to fines and mandatory forfeiture and restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Jason Poole of the Justice Department’s Tax Division are prosecuting the case, with the assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant United States Attorney Todd Brown.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
29 April 2013
Wichita Man Sentenced to 10 Years for Bank RobberyRead the Press Release
WICHITA, KAN. – A Wichita man has been sentenced to 10 years in federal prison for bank robbery, U.S. Attorney Barry Grissom said today.
Christopher A. Vangessel, 41, Wichita, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Feb. 28, 2012, he robbed the UMB Bank branch at 130 N. Market in Wichita. He gave the teller a note directing her to give him money. After he got the money he left the bank.
Surveillance photos taken during the robbery were released to the public and a parole officer identified Vangessel as the robber.
Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.
United States Seeks Injunction Against Alleged Fraudulent State License FeesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that it has filed a civil complaint seeking a permanent injunction against an operator of an alleged fraudulent mailing scheme directed at Pennsylvania corporations and corporations in other states. It has been assigned to U.S. District Court Judge Sylvia H. Rambo.
The civil complaint filed on April 29, 2013, alleges that Aaron Williams, of Playa Vista, CA, doing business as Pennsylvania Corporate Compliance (PCC), sent on March 22, 2013, 5,312 pieces of mail to Pennsylvania businesses. The mailings urged the businesses to file information and send payment of $125.00 by April 5, 2013 to maintain proper records.
According to United States Attorney Peter J. Smith, the mailings included one page of instructions to complete an annual disclosure statement form, a one page annual meeting disclosure statement with a request reply by April 5, 2013, and a return envelope directing the mail to PCC with a mailing address of 4075 Linglestown Road #120, Harrisburg PA.
The annual disclosure statement stated “failure to comply with certain requirements could cause your corporation to lose its limited liability status . . . . Companies that do not satisfy certain state requirements may forfeit the limited liability protection provided to owners, and could face administrative dissolution or revocation of the entity status by that state should the integrity of the corporation become questionable.” Additionally, the annual disclosure statement provides that PCC “assist[s] corporations to avoid potential non-compliance with the [Pennsylvania Business Code] of maintaining Annual Meeting Minutes.”
Businesses receiving the mailing reasonably believed that PCC is a state agency, completion and submission of the annual meeting disclosure statement is required by the Commonwealth, and they are required to pay the $125.00 fee.
In fact, corporations or limited liability companies registered with the Commonwealth of Pennsylvania are not required to file corporate or annual meeting minutes and are not required to pay the $125.00 fee.
The Pennsylvania Department of State has issued a consumer alert regarding the PCC scam on its website.
Similar mailings in other states have resulted in a cease and desist order against Williams doing business as Indiana Corporate Compliance Business Service Division, Illinois Corporate Compliance Business Services Division, and Ohio Corporate Compliance Business Services Division. The Wyoming Secretary of State has issued a cease and desist letter to Aaron Williams doing business as Wyoming Corporate Compliance.
On April 19, 2013, 3,450 pieces of mail were presented on behalf of Rhode Island Corporate Compliance, 68 Dorrance St. STE 119, Providence, RI 02903-2210 to the United States Postal Service. These mailings are also believed to be part of Williams’ fraudulent scheme.
Williams’ continued misrepresentations and misuse of the mail are not in the public interest and undermine the State’s ability to collect legitimate fees. Thus, the United States Attorney’s Office has sought to permanently enjoin Williams from such fraudulent activities anywhere in the United States.
This matter is being litigated by Assistant United States Attorneys Melissa A. Swauger and Timothy S. Judge. The case stems from an investigation conducted by the Harrisburg office of the United States Postal Inspection Service.Two White River Women Indicted for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that two White River, South Dakota women have been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Ashley Vanderwalker, age 24, and Jarashae Vanderwalker, age 20, were indicted by a federal grand jury on April 12, 2013. They appeared before U.S. Magistrate Judge Mark A. Moreno on April 25, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 10 years’ in custody, 3 years’ of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and both women are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Ashley Vanderwalker and Jarashae Vanderwalker were both released on bond pending trial. A trial date has not been set.
Two California Men Plead Guilty in "Far-Reaching and Elaborate" Automobile Export ScamRead the Press Release
CONCORD, N.H. – Frank Hsiao Chien Ku, 31, of San Gabriel, California, and Danny Chin Hao Hsu, 33, of West Covina, California, have plead guilty to federal mail fraud charges and violations of U.S. Customs laws for their roles in an illegal scheme to purchase new, high-end motor vehicles under false pretenses, title and register them in New Hampshire, and unlawfully export them to China for resale at a substantial profit, announced United States Attorney John P. Kacavas.
Under U.S. Customs laws and regulations, the export of new motor vehicles is prohibited. As a result, most dealerships are contractually prohibited by the manufacturer from selling new automobiles intended for export, and dealerships are required to prevent such sales or suffer financial and other penalties imposed by the manufacturer. One method dealerships often use to ensure the sale of new motor vehicles for domestic use only is a “no-export agreement” signed by the purchaser, prohibiting the vehicle’s export for a certain period of time. The defendants and their agents engaged in an elaborate fraud to circumvent these export prohibitions.
According to charges unsealed today, from October 2009 to March 2012, the defendants operated a San Gabriel, California company, CFLA, Ltd., that financed the purchase of new automobiles from dealerships in New Hampshire and elsewhere on the pretext that the automobiles were intended for domestic use only. The scheme required the defendants and their agents in California to obtain New Hampshire driver’s licenses in their own names or those of others, using fabricated leases and utility bills to falsely establish residency in New Hampshire. Once the defendants and their non-resident agents obtained New Hampshire driver’s licenses, they purchased luxury automobiles at dealerships in New Hampshire and other states, signing “no-export” declarations attesting that the automobiles were not intended for export. In order to reinforce the false impression that the non-resident agents were residents of New Hampshire, the defendants caused monies to be transferred from a CFLA, Ltd. bank account in California to a bank account in New Hampshire for use in purchasing the motor vehicles. In addition to employing non-resident agents, the defendants also employed New Hampshire residents to act as straw buyers, purchasing new luxury automobiles in their own names for the benefit of the defendants and CFLA, Ltd.
Once the defendants, their agents, or the straw buyers purchased the new motor vehicles, the defendants had the vehicles transported directly from a dealership to the port of Long Beach, California for export to China. With respect to those motor vehicles purchased from out-of-state dealerships, the vehicle itself never physically entered the State of New Hampshire. Meanwhile, the defendants fraudulently registered the vehicles in New Hampshire, or caused them to be fraudulently registered in New Hampshire, using the fraudulently obtained driver’s licenses and New Hampshire straw buyers as proof of residency. They also filed fraudulent title applications in their own names with the New Hampshire Division of Motor Vehicles (NH-DMV), and caused to be filed fraudulent title applications in the names of the non-resident agents and New Hampshire straw buyers. The defendants then caused the fraudulently obtained titles issued by the NH-DMV to be forwarded to California for filing with U.S. Customs, together with other export documentation known as a “Shipper’s Export Declaration,” or SED. Taken together, the title and the SED made it falsely appear that the motor vehicles involved were used and, therefore, lawfully exportable to China.
Altogether, the defendants’ scheme involved ninety-three (93) motor vehicles, fourteen (14) of which were seized at the port of Long Beach before they were exported. The total value of those 14 vehicles exceeds $750,000.00. In their plea hearings, the defendants admitted that they defrauded motor vehicle dealerships in New Hampshire and elsewhere, obtained or caused to be obtained New Hampshire drivers’ licenses, automobile titles and registrations by deception, and violated U.S. Customs laws and regulations by using SED’s to further their unlawful activities.
In announcing the charges, U.S. Attorney Kacavas said, “The defendants’ scheme and others like it seek to exploit New Hampshire’s lack of sales tax and compulsory automobile insurance in order to maximize their ill-gotten gains. In addition to defrauding the N.H. Division of Motor Vehicles, and diverting valuable federal and state law enforcement resources to identify, disrupt and dismantle such illegal export rings, out-of-state scammers like the defendants pursue a quick buck at the expense of New Hampshire’s businesses and citizens. Dealers that are duped into selling new motor vehicles to an exporter may suffer manufacturer-imposed “charge-backs” for each vehicle unwittingly sold and unlawfully exported, reductions in future vehicle allocations and inventory, and the loss of service-generated revenue, all of which has a negative impact on a dealership’s sales and service workforce and, ultimately, its viability. Federal law enforcement will continue to partner with the N.H. State Police and the Division of Motor Vehicles to bring such scammers to justice and ensure that New Hampshire remains an inhospitable venue for their illegal trade.”
U.S. Attorney Kacavas wishes to thank Special Agent-in-Charge Bruce Foucart of the U.S. Department of Homeland Security, Homeland Security Investigations, Commissioner John Barthelmes of the New Hampshire Department of Safety, Colonel Robert Quinn of the New Hampshire State Police, and Director Richard Bailey, Jr., of the Division of Motor Vehicles for their close cooperation in the investigation of this case, which is being prosecuted by Assistant U.S. Attorney Michael J. Gunnison.
Tacoma Man Sentenced to 15 Years in Prison for Sex TraffickingRead the Press Release
A 35 year-old Tacoma, Washington resident was sentenced Friday in U.S. District Court in Tacoma to 15 years in prison and five years of supervised release for interstate transportation of an individual for prostitution and conspiracy to engage in sex trafficking, announced U.S. Attorney Jenny A. Durkan. REGINALD IRVIN pleaded guilty in October 2012, following an investigation by the Tacoma Police Department, Lakewood Police Department, and the FBI’s Innocence Lost Task Force. U.S. District Judge Robert J. Bryan ordered IRVIN to register as a sex offender as part of his sentence.
According to records filed in the case, IRVIN exercised violent control over the women who he coerced to work for him as prostitutes. IRVIN controlled the women with a harsh list of rules including requiring the women to give him all money made from prostitution activities and not being allowed to leave the house on their own. When victims broke IRVIN’s rules the punishment included beatings, anal rape, being forced to strip naked and stand in the corner, being tied to the bed, as well as psychological and emotional abuse. Women working for IRVIN witnessed him beating other women, and became fearful of leaving him or disobeying his orders.
In asking for a 15 year sentence prosecutors wrote to the court, “Unquestionably Irvin is a predator who has a long history of assaulting and exploiting young women…. (H)e treated the victims herein like chattel, beating and belittling them into servitude. His history and characteristics demonstrate an individual who is a menace and danger to society.”
The case was investigated by the Tacoma Police Department, Lakewood Police Department, and the FBI’s Innocence Lost Task Force. The FBI’s Innocence Lost Task Force provides a rapid and effective investigative response to reported federal crimes involving the victimization of children. The task force strives to reduce the vulnerability of children to acts of sexual exploitation and abuse and strengthens the capabilities of federal, state, and local law enforcement through training programs and investigative assistance.
The case was prosecuted by Assistant United States Attorney’s Ye-Ting Woo and Bruce Miyake.
St. Louis Man sentenced to 10 and a half years in Federal Prison for distributing child pornographyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a St. Louis man was sentenced in federal court in Anchorage for distributing child pornography.
Leland Paster, 29, from St. Louis, Missouri, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to 10 and a half years in prison to be followed by 15 years of supervised release.
According to Assistant U.S. Attorney Kyle G. French, who prosecuted the case, Paster used an Internet email account to amass and trade a collection of over 1,000 images and 50 videos depicting children being sexually abused. The depictions included toddlers and bondage/torture. Paster’s collection also reflects the international scope of child sex abuse that feeds the demand created by Paster and others who collect and trade child pornography. Paster’s collection included 600 images and he possessed 23 videos involving many known child pornography series depicting the same victims. These materials contained at least 16 identified child victims who were abused in Switzerland, Germany, France, Belgium, the United Kingdom, the Netherlands, Italy, the Republic of Moldova, the Ukraine, Canada, Denmark, Sweden, Austria, Brazil, and the United States.
Judge Beistline emphasized during sentencing that child pornography is “not a victimless crime” and characterized Paster’s conduct as helping to satisfy a market for the depictions.
“The possession, receipt, transportation, and distribution of child pornography perpetuates the harm to victims depicted in the images and fuels a market, thereby leading to further production of images” stated Ms. Loeffler. Ms. Loeffler further stated that “Paster’s participation in email child pornography groups, for example, involves membership and informal communications which inevitably and disturbingly encourages child sex sexual abuse by other individuals.”
AUSA French further stated that every internet user can help combat the problem by choosing to report child pornography related links, emails, media, and other materials. This effort may possibly rescue a child.If anyone encounters child pornography online, you can report its location to your Internet service provider, local or state law enforcement, the FBI or Department of Homeland Security office. It may also be reported online via the National Center for Missing and Exploited Children’s (NCMEC) website at cybertipline.com. NCMEC will forward your report to the appropriate investigative agency for follow-up.
Ms. Loeffler commends the Department of Homeland Security Investigations for the investigation of this case.
Southern California Man Sentenced to 10 Years in Federal Prison in Schemes That Sold Unregistered Securities in Internet, Energy FirmsRead the Press Release
LOS ANGELES – A previously convicted felon was sentenced late this afternoon to 120 months in federal prison for selling unregistered stock in Internet companies and a fake energy company to victims across the country who lost at least $10 million.
De Elroy Beeler Jr., 56, was sentenced by United States District Judge Dean D. Pregerson. Beeler, who has been in federal custody since 2007 when authorities arrested him to stop an ongoing scheme, previously lived with his family in Carpinteria in Santa Barbara County and had a residence in the Tujunga district of Los Angeles.
Beeler will be back in court in about one month, at which time Judge Pregerson is expected to rule on how much money Beeler should pay in restitution to the hundreds of victims of the scheme.
Beeler pleaded guilty to one count of conspiracy and two counts of mail fraud in late 2008.
In the scheme at the center of the federal prosecution, Beeler worked with former IRS Revenue Agent George Tannous to solicit victims across the country to purchase unregistered stock in the Tujunga-based Bidbay.com, Inc. (a company that was later known as Auctiondiner.com, Inc.) and related companies AskGT.com and Rose Laboratories.
Victim-investors were enticed to put money into the companies with various false claims, including that the companies would conduct initial public offerings, and that Bidbay.com and/or the shell companies would soon be acquired by Ebay, Inc. for $20 per share. Ebay never had any intention of acquiring Bidbay.com and had even sued Bidbay.com for trademark infringement over the use of “bay” in its name. Beeler personally received $4.8 million of investor money as commissions that were not disclosed to investors.
Tannous pleaded guilty to one count of conspiracy and one count of subscribing to a false tax return in 2008. Judge Pregerson sentenced Tannous in March 2012 to 33 months in prison.
A former United States Congressman involved in the scheme was sentenced in December to one year and one day in federal prison in a tax fraud case related to his failure to disclose to the IRS nearly $500,000 of investor funds he received from the Bidbay scheme. Wester Shadric Cooley, 80, a native of Los Angeles who now resides in Bend, Oregon, admitted in court that he received approximately $1.1 million during the scheme and that he failed to report approximately $494,000 on his 2002 tax return.
After Beeler was charged in the Bidbay case in 2007, he was charged in a second case involving the sale of securities in 2006 and 2007 in a fake energy company called First Global One. Beeler falsely told investors that First Global One would have an initial public offering and that it had business relationships with Exxon Mobile Corporation. Beeler received the 10-year sentence today after pleading guilty in both the Bidbay and First Global One schemes.
Beeler was previously convicted in federal court in relation to another fraud scheme that sent him to prison for 36 months, a term he completed in 2005 just before launching the First Global One scheme.
The investigation into Bidbay.com was conducted by the Federal Bureau of Investigation and IRS-Criminal Investigation.
Release No. 13-060
South Jersey Man Admits Stealing Father’s Benefit Checks for 22 Years After His DeathRead the Press Release
CAMDEN, N.J. – A south Jersey man who hid his father’s death from authorities to keep his Social Security payments admitted today to stealing more than $200,000 in retirement savings benefits paid out to the deceased, U.S. Attorney Paul J. Fishman announced.
Michael Shelton, 65, of Pennsauken, N.J., entered a guilty plea to an Information charging him with one count of theft of government funds, before Chief U.S. District Judge Jerome B. Simandle in Camden federal court.
According to documents filed in this case and statements made in court:
Shelton admitted that when his father died in March of 1990, he intentionally did not notify the Social Security Administration (SSA), as he was obligated to do, so that he could continue to receive his father’s SSA retirement checks. The SSA discovered the death in June of 2012, at which time the deceased was receiving $977 in monthly retirement benefits.
After his father had died, Shelton set up a direct deposit for the checks into a PNC Bank account in his father’s name. Shelton acknowledged he accessed that account at various times and used the money to pay for personal expenses.
Shelton admitted that, from March 1990 to July 2012, he collected approximately $204,606 to which he was not entitled.
The charge to which Shelton pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 1, 2013.
U.S. Attorney Fishman credited special agents of the Social Security Administration Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, with the investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
13-175
Defense counsel: Assistant Federal Public Defender Thomas Young Esq., CamdenShelton Information
Shelby County Man Guilty of Buying Cold Pills to Make MethRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 40-year-old Joaquin, Texas man has pleaded guilty to federal drug charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Dean Allen Tucker pleaded guilty to possession of pseudoephedrine with intent to manufacture methamphetamine today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on Nov. 13, 2008, Tucker purchased cold pills containing pseudoephedrine from the Ken turner Pharmacy in Carthage, Texas, with intentions of manufacturing methamphetamine. Tucker also admitted to purchasing cold pills on 25 additional occasions from Nov. 18, 2008 to Apr. 15, 2009, amounting to approximately 58.44 grams of pseudoephedrine. A grand jury returned a federal indictment on Nov. 7, 2012, charging Tucker and Christine Stephens Carroll with drug trafficking crimes. Carroll was sentenced to 71 months in federal prison on Aug. 20, 2012.
Tucker faces up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Texas Department of Public Safety and the Panola County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
Sheep Springs, N.M., Man Sentenced to Four Years in Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – This morning, Jason Allen Hunter, 46, an enrolled member of the Navajo Nation who resides in Sheep Springs, N.M., was sentenced to four years in federal prison followed by three years of supervised release for his conviction on assault charges.
On Nov. 14, 2012, Hunter pleaded guilty to two counts of assault with a dangerous weapon. In entering his guilty plea, Hunter admitted that, on May 9, 2009, he fired a shotgun at two people in a truck as it drove past him. Three small children were in the truck when Hunter fired the shots. Hunter further admitted that, at the time he fired shots at the truck, he intended to cause those individuals bodily injury. Hunter committed these unlawful acts near his home, which is located just outside Sheep Springs on the Navajo Indian Reservation. Hunter has been in federal custody since entering his guilty plea.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety with assistance from the Farmington office of the FBI, and is being prosecuted by Assistant U.S. Attorneys Mark T. Baker and Kyle T. Nayback.
Senior Vice President of Operations at White Rose Food Pleads Guilty to Tax EvasionRead the Press Release
TRENTON, N.J. – The senior vice president of operations of an independent wholesale food distributor admitted today to evading taxes on income he received from third parties, U.S. Attorney Paul J. Fishman announced.
John Annetta, 61, of Marlboro, N.J., pleaded guilty before U.S. District Judge Peter G. Sheridan to an Information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
Between approximately 2006 and 2011, Annetta worked at White Rose Food, an independent wholesale food distributor in the New York City and New Jersey metropolitan areas. During that time he was given $1,648,085 from two people met in the course of his employment. He failed to report this money as taxable income for the calendar years 2006, 2007, 2008, 2009, 2010, and 2011 in the amounts of $106,500, $234,000, $317,406, $398,542, $292,700 and $298,936, respectively. He admitted that for 2006 through 2011 he would have owed the government $536,530 if he had reported the additional cash on his income tax returns.
The charge to which Annetta pleaded guilty to is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for Sept. 4, 2013.
U.S. Attorney Fishman credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Postal Inspector in Charge Marie Kelokates, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
13-176
Defense counsel: Matt D. Mandel Esq. of Millburn, N.J.
Annetta Information
Retired Customs and Border Protection Supervisor Sentenced to 10 Years in Child Pornography CaseRead the Press Release
A retired United States Customs and Border Protection supervisor was sentenced today by U.S. District Judge Marilyn L. Huff to 10 years in prison, followed by five years of supervised release, for downloading child pornography.
Former Supervisory Special Agent Lawson Hardrick, Jr., who was the assistant director for the Calexico ports of entry, was found guilty by a federal jury in January of two counts of receipt of images of minors engaged in sexually explicit conduct, each a felony. The verdicts followed a two-day trial before Judge Huff.
According to the evidence presented at trial, agents with Immigration and Customs Enforcement’s Homeland Security Investigations conducted an investigation of persons using peer to peer file-sharing programs to make child pornography available to others. According to the forensic evidence introduced at trial, the defendant received videos of children as young as four and nine years old through a file-sharing program in 2008 through 2010. The indictment was handed up by a federal grand jury sitting in San Diego in July 2012.
Upon release, Hardrick will be required to register as a sex offender.
DEFENDANT Case Number: 12cr3061-H Lawson Hardrick SUMMARY OF CHARGESCounts: 2
Receipt of Images of Minors Engaged in Sexually Explicit Conduct- Title 18, United States Code, 2252(a) (2)
INVESTIGATING AGENCY
Maximum Penalties: 20 years incarceration with a five year mandatory minimum sentence, $250,000 fine, a minimum of 5 years and up to a lifetime of supervised release and registration as a sex offender.Immigration and Customs Enforcement’s Homeland Security Investigations
Presidential Tax Service Owner Convicted of Falsifying ReturnsRead the Press Release
HOUSTON – Sharon Edwards Kitine, the former owner of a now defunct Presidential Tax Service in Houston, has entered a plea of guilty for falsifying client returns, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). The tax service establishment she owned closed in March 2012 following her arrest.
The factual basis in support of the plea states that Kitine claimed false deductions for Houston-area clients that fraudulently increased tax refunds by approximately $200,000 for tax years 2006 through 2011.
“Tax return preparers have a duty to their clients to prepare accurate tax returns that comply with the tax laws,” stated Cruz. “IRS-CI endeavors to protect revenue by identifying, investigating and recommending prosecution of abusive return preparers. Always remember, it is your responsibility to know what is on your income tax return because ultimately, you are responsible for all the information filed with the IRS.”
On or about March 29, 2008, Kitine knowingly prepared and caused to be filed with the IRS a false 2007 U.S. Individual Income Tax Return – Form 1040 for taxpayers and fee-paying clients in need of tax return preparation services. Without consent of the taxpayers, Kitine included certain materially false deductions with the intention of generating an excessive federal income tax refund and causing a direct pecuniary harm of several thousand dollars to the IRS.
Specifically, Kitine knowingly and willfully included materially false deductions for a variety of Schedule C deductions as well as Schedule A deductions for home mortgage interest and real estate taxes even though the taxpayers rented their home. This tax return alone caused a loss to the U.S. Treasury in the approximate amount of $11,261.
Kitine also knowingly and willfully prepared and caused to be filed with the IRS several more false federal income tax returns for other clients for tax years 2006 through 2011 that generated excessive refunds based upon false and fraudulently inflated deductions and credits that caused aggregate losses to the IRS of approximately $205,682.
The plea agreement requires Kitine make full restitution to the IRS for the fraudulent refunds.
U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, has set sentencing for July 22, 2013, at which time Kitine faces up to three years in prison and $250,000 fine. She has been permitted to remain on bond pending that hearing.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Powhatan Store Owner Pleads Guilty to Conspiring to Structure $10,000,000 Obtained from Illicit Cigarette SalesRead the Press Release
RICHMOND, Va. –Jayant Khare, 50, of Powhatan, Va., pleaded guilty today to conspiring to structure more than $10,000,000 in cash transactions for the purpose of preventing banking institutions from reporting those transactions to the Internal Revenue Service (IRS).
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.
Khare was charged by criminal information filed on March 28, 2013, and faces a maximum penalty of five years in prison when he is sentenced on July 19, 2013.
According to a statement of facts filed with the plea agreement, Khare, along with co-conspirator Loveleen Khare, owned and operated two cigarette retail stores known as Cigarettes America Plus and Cigarettes America at Westchester. Khare admitted that from October 2011 to December 2012, he and Loveleen Khare conspired to structure over $10,000,000 in U.S. currency by splitting up cash deposits into accounts maintained at six banks, all in an effort to prevent the banks from filing Currency Transaction Reports with the IRS, which must be filed on cash deposits of $10,000 or greater. The structured cash was obtained by selling large quantities of cigarettes to out-of-state individuals who were known to be transporting the cigarettes to locations outside of the Commonwealth of Virginia for resale as contraband cigarettes. The sales took place at Khare’s personal residence and from the back door of the retail stores.
Loveleen Khare pled guilty to the conspiracy charge on April 17, 2013 and will also be sentenced on July 19, 2013.
This case was investigated by HSI, the Internal Revenue Service - Criminal Investigation, and the Tobacco Enforcement Unit of the Office of the Attorney General of Virginia. Assistant United States Attorneys Dominick S. Gerace and Laura Colombell Marshall are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pocatello Man Sentenced in Meth Trafficking CaseRead the Press Release
POCATELLO – Douglas I. McAdam, 47, of Pocatello, was sentenced today to 33 months in prison for possession with intent to distribute in excess of five grams of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered McAdam to serve three years of supervised release after his prison term. He pleaded guilty to the charge on February 11, 2013.
According to the plea agreement, on November 1, 2011, a law enforcement officer observed McAdam receiving methamphetamine from Raymond Camacho, a co-defendant. McAdam was subsequently stopped by officers who recovered in excess of five grams of actual methamphetamine. McAdam admitted he possessed the methamphetamine with the intention of distributing it to others.
Three co-defendants were sentenced earlier in April, including Juan Aguilar, a Mexican national, to 120 months in prison for possession with intent to distribute in excess of 50 grams of methamphetamine; Juan Mendoza, of Menan, Idaho, to 102 months for possession with intent to distribute in excess of 50 grams of methamphetamine; and Jose Rios-Jimenez, a Mexican national, to 16 months – time served – for possession of a firearm by a prohibited person and illegal entry of a removed alien.
Leones, pleaded guilty to related methamphetamine trafficking charges and are awaiting sentencing. Camacho, 57, a Mexican national, pleaded guilty on January 24, 2013, to possession with intent to distribute in excess of 50 grams of methamphetamine; sentencing is set for May 29. Leones, 42, of Pocatello, pleaded guilty to possession with intent to distribute methamphetamine; she is set for sentencing on May 28. On April 26, Judge Winmill signed an order committing co-defendant Eldon K. McConnell, 48, of Pocatello, to a mental health facility.
The case was investigated by Idaho State Police, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Chubbuck Police Department.
Pittsburgh Man Admits Trafficking Passwords and Damaging A ComputerRead the Press Release
PITTSBURGH - A resident of Pittsburgh pleaded guilty in federal court to charges of recklessly damaging a computer and password trafficking, United States Attorney David J. Hickton announced today.
Matthew James West, 21, pleaded guilty to two counts of the five-count superseding indictment before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about Nov. 28, 2011, in the Western District of Pennsylvania, the defendant knowingly caused the transmission of a program, information, code, and command, and as a result of such conduct, recklessly caused damage without authorization to a protected computer.
Judge Cercone scheduled sentencing for Sept. 2, 2013 at 11:30 a.m. The law provides for a total sentence of two years in prison, a fine of $200,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued West on bond.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Matthew West.
Owner of Multiple New York Construction Companies Indicted for Tax FraudRead the Press Release
Eric Anderson, of Dix Hills, N.Y., was arrested today following his indictment on April 25, 2013, on numerous tax crimes, the Justice Department and Internal Revenue Service (IRS) announced.
According to the indictment, Anderson owned three construction companies in Dix Hills: Anderson Framing, Anderson Enterprise and Anderson Trim Specialty. As alleged, Anderson corruptly endeavored to obstruct the IRS between 2006 and 2008 by using a check cashing service to cash over $10.5 million of gross receipts checks paid to his construction companies. He concealed his check cashing activities from his tax return preparer so that the income was not included on the companies’ tax returns. Anderson paid his employees in cash while failing to collect and pay over to the IRS employment taxes. He also diverted cash receipts earned by his companies for his own personal use. Finally, after learning of the criminal investigation, Anderson shredded business records and lied to IRS investigators about his use of the check cashing service.
The indictment also alleges that Anderson filed a false 2006 corporate income tax return for Anderson Trim and failed to file multiple years of employment tax returns, corporate income tax returns, and individual income tax returns. Anderson faces a potential maximum sentence of 94 years in prison and a potential fine of up to $5,300,000.
A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by IRS - Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department’s Tax Division.
Olson Appointed to Attorney General's Advisory Committee (AGAC)Read the Press Release
BOISE – Attorney General Eric Holder has appointed Idaho’s U.S. Attorney, Wendy J. Olson, to the Attorney General’s Advisory Committee (AGAC), the highest ranking committee within the Department of Justice. The Department announced the appointment of Olson and five other U.S. Attorneys to serve new two-year terms earlier today.
The AGAC, created in 1973, is comprised of twenty U.S. Attorneys from ninety-four districts. The AGAC reports to the Attorney General through the Deputy Attorney General. The committee represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.
Olson was presidentially appointed U.S. Attorney for the District of Idaho on June 25, 2010. Prior to her appointment she served as an Assistant U.S. Attorney for the District of Idaho from 1997-2010, including as Senior Litigation Counsel (2006-2010). Olson worked for the Criminal Section of the Civil Rights Division of the Department of Justice, where she was a trial attorney from 1992 until 1996, and Deputy Director of Operations and Assistant to the Director on the National Church Arson Task Force from 1996 until 1997. Olson was also an Adjunct Professor of Legal Writing at the George Washington University School of Law from 1994 until 1997. Olson serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Civil Rights Subcommittee, Native American Issues Subcommittee, and Local Government Coordination Working Group.
“It’s a pleasure to welcome the newest members of the Attorney General’s Advisory Committee, a group of U.S. Attorneys with whom I regularly consult on some of the most critical law enforcement and public safety issues facing our country,” said Attorney General Holder. “I’m grateful for their service and leadership on the AGAC. I applaud the excellent work that each of them is leading in their home districts. And I look forward to working closely with them as we work together to confront the present challenges and seize new opportunities to protect and ensure justice for the American people.”
North Dakota Man Pleads Guilty to Distributing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Duluth, a 41-year old Wahpeton, North Dakota, man pleaded guilty to distributing child pornography. William Robert Upshaw pleaded guilty to one count of distribution of child pornography. Upshaw, who was indicted on December 3, 2012, entered his plea before United States District Court Chief Judge Michael J. Davis.
In his plea agreement, Upshaw admitted that on August 19, 2011, he distributed one or more items that contained visual depictions of minors engaged in sexually explicit conduct. In addition, Upshaw admitted that his possessed approximately 75,775 images and 1,880 videos of child pornography, some of which portrayed sadistic or masochistic conduct or other depictions of violence.
For his crime, Upshaw faces a potential maximum penalty of 40 years in federal prison, with a mandatory minimum penalty of 15 years. Judge Davis will determine his sentence at a future hearing, yet to be scheduled.This case is the result of an investigation by the Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation, and the Moorhead Police Department. It is being prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
Distribution of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
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 U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and 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.”New Orleans Man, John Philip Morrill, Charged with Assault Upon A Federal Officer, Access Device and Bank FraudRead the Press Release
JOHN PHILIP MORRILL, JR., age 32, a resident of New Orleans, Louisiana, was charged in a four-count superseding bill of information filed today for assault upon a federal officer, access device fraud and bank fraud, announced U. S. Attorney Dana J. Boente.
According to the Superseding Bill of Information, on or about September 21, 2012, MORRILL knowingly assaulted Special Agent Brian Rossitto of the United States Secret Service who was engaged in the performance of his official duties. MORRILL is also charged with two counts of access device fraud, and one count of bank fraud for devising a scheme to defraud the ASI Federal Credit Union.
If convicted of the assault upon a federal officer count, MORRILL faces a maximum term of imprisonment of 8 years, a fine of $250,000, and a 3 year term of supervised release. If convicted of both counts of access device fraud, MORRILL faces a maximum term of 10 years imprisonment as to each count, a fine of $250,000 as to each count, and a 3 year term of supervised release following each term of imprisonment. If convicted of the bank fraud count, MORRILL faces a maximum term of imprisonment of 30 years, a fine of $250,000, and a 3 year term of supervised release, and a special assessment fee of $100 as to each count.
U. S. Attorney Dana J. Boente reiterated that the superseding bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the United States Secret Service. The case is being prosecuted by Assistant U. S. Attorney Julia K. Evans.
(Download Bill of Information )
Nationwide Oxycodone Trafficking Ring DismantledRead the Press Release
18 Defendants from Four States ConvictedPORTLAND, Ore. – Kingsley Iyare Osemwengie, 27, of Las Vegas, Nevada, was sentenced by U.S. District Senior Judge Ancer L. Haggerty today to 210 months in prison. Osemwengie pled guilty in December of 2012 to a three-count indictment charging him with conspiracy to distribute oxycodone, conspiracy to launder drug proceeds, and conspiracy to violate the travel act, for his pivotal role in an oxycodone distribution ring that involved drug trafficking and money laundering activity in Massachusetts, Nevada, Texas, Florida, Georgia, Utah, Colorado, New York, Washington, Alaska, Pennsylvania, and Oregon, between January 2008 and his arrest in March of 2011. He became the 18th defendant convicted in this case. This investigation, dubbed Operation Trick or Treat, was the largest oxycodone trafficking case in the history of the District of Oregon based on the sheer volume of oxycodone distributed, the geographic scope of the conspiracy, and the enormous profits generated for the benefit of the defendants.
“This is the largest oxycodone trafficking conspiracy ever prosecuted in Oregon, and one of the largest in the nation,” said United States Attorney Amanda Marshall. “Stemming the flow of prescription opiates is a crucial feature of our drug enforcement strategy, as addiction from these drugs and the conversion to heroin use is a national epidemic. I commend the exceptional agency partnerships that brought these conspirators to justice. In addition to the sentence in this case, the court forfeited more than $600,000 in drug proceeds. Taking the profit out of drug trafficking is another key part of our deterrence strategy.”
Oxycodone is a Schedule II drug under the federal Controlled Substances Act. As a prescription-only product, this powerful pain reliever from the opioid family carries a high risk of abuse, addiction, and overdose, including death. In 2011, at least 93 overdose deaths in Oregon were caused by oxycodone and its cousin painkiller hydrocodone. People who become addicted to oxycodone often switch to the opiate heroin that is much cheaper and more easily obtainable on the street. This frequently leads to heroin addiction, overdose, and occasionally death.
While on supervised release for two prior federal felonies involving fraud, Osemwengie, operating from Las Vegas, Nevada, and associate Olubenga Temitope Badamosi, 34, a Nigerian citizen living in Milwaukie, Oregon, arranged for tens of thousands of oxycodone pills, acquired in Miami and Las Vegas, to be distributed to customers all over the United States. They used call girls and couriers to transport oxycodone and money across the country. Investigators identified 774 airplane flights for 71 different couriers to 40 different American cities at a total cost of $96,000 during the life of the conspiracy. At other times, drugs and money were transported by commercial carrier or through the mail. Over 10,000 oxycodone pills and 1,900 counterfeit oxycodone pills were seized by investigators in this case. A single 80 milligram oxycodone pill sold for a range of $30 wholesale to $80 retail.
Osemwengie, Badamosi, and other conspirators netted millions of dollars of drug proceeds that allowed them to live opulent lifestyles. Between January of 2008 and October of 2010, cash deposits totaling $1,218,000 were made into six bank accounts controlled by Osemwengie. He created several shell companies to disguise the source of his income and maintained luxury residences in Las Vegas, Nevada, and Miami, Florida, one of which carried a $10,000 per month rent. Meanwhile, he drove high-end automobiles including two Mercedes Benzes and four Bentleys, one of which he purchased with $118,500 in cash. Badamosi acquired expensive jewelry appraised at $114,000, including two flashy, diamond-encrusted watches containing 800 and 1,000 diamonds, respectively. Defendant Allotey owned a diamond-studded pendant appraised at $32,000. Investigators seized and forfeited all of this jewelry, along with over $133,000 in cash, bank accounts totaling over $100,000, six (6) handguns, and nine (9) vehicles, including two Bentleys and four Mercedes Benzes. The dollar value of the forfeited assets exceeds $600,000.
The following defendants have previously been sentenced for oxycodone conspiracy charges arising out of this case:
- Badamosi, 34, of Milwaukie, OR, sentenced to 87 months prison;
- David George Hollins II, 29, of Portland, OR, sentenced to 41 months prison;
- Hung Van Pham, 32, of Vancouver, WA, sentenced to 27 months prison;
- Shaun Wesley Tyler, 32, of Las Vegas, NV, sentenced to 37 months prison;
- Marcus Charles Albert, 33, of Las Vegas, NV, sentenced to 63 months prison;
- Melvin A. Allotey, 29, of Las Vegas, NV, sentenced to 48 months prison;
- Mei Lynn Pham, 32, of Portland, OR, sentenced to 33 months prison;
- Adam Garrott Lewis, 28, of Portland, OR, sentenced to 37 months prison;
- Leamon Dlloyd Madden, 28, of Portland, OR, sentenced to 37 months prison;
- Isaiah Griffith, 28, of Portland, OR, sentenced to 30 months prison;
- Heather O'Rourke, 22, of Portland, OR, sentenced to 27 months prison;
- Christopher Gene Buckland, 35, of Portland, OR, sentenced to 30 months prison;
- Heath Leroy Bloodgood, 42, of Portland, OR, sentenced to 37 months prison;
- Thanh Quoc Nguyen, 32, of Portland, OR, sentenced to 41 months prison; and,
- Lee Justin Wells, 34, of Tacoma, WA, sentenced to 41 months prison.
Two other codefendants have pled guilty to related oxycodone conspiracy charges and are scheduled for sentencing before Judge Haggerty in Portland:
- Reina Tomiko Nakachi, 27, of Las Vegas, NV, sentencing on June 10, 2013, and,
- Sarah Nilsen, 26, of Miami, FL, sentencing on June 17, 2013.
“Opiate addiction is the center of the storm which leaves behind a path of devastation,” said DEA Special Agent in Charge Matthew G. Barnes. “This was a sophisticated drug trafficking organization that diverted legitimate medicine into the black market across the United States. The sheer greed of these 18 defendants led them to live lavish lifestyles while ruining many lives. DEA and our law enforcement partners are determined to continue to aggressively pursue those who are responsible for the high rate of prescription drug abuse in Oregon.”
“Prescriptions such as oxycodone used illegally can destroy lives—especially in young people who may use it as a springboard to other illegal narcotics,” stated Portland Police Chief Mike Reese. “The successful prosecution of large-scale distribution and trafficking cases such as this will help stop the flow of illegal oxycodone into the hands of our children and our community.”
“Today’s prison sentence is a reminder of the serious consequences drug traffickers face for bringing illicit drugs into our communities,” said Bradford Bench, Special Agent in Charge of ICE Homeland Security Investigations (HSI) Seattle. “When you’re talking about a dangerous and highly addictive drug that ruins lives and fosters further crime with illicit profits, the risks to public safety are real. HSI remains committed to dismantling the international drug trade while ensuring that those involved don’t benefit financially.”
“These sentencings are a reminder that justice will be served on individuals who put the safety of our community at risk by selling and profiting from the illegal sale of the dangerous drug oxycodone,” said Tamera D. Cantu, Assistant Special Agent of IRS Criminal Investigation in Seattle. “IRS CI and our law enforcement partners are committed to dismantling similar drug trafficking organizations.”
This case was initiated in June of 2010 by the Oregon HIDTA Interdiction Task Force (HIT) who partnered with the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Internal Revenue Service (IRS), and the Portland Police Bureau. Additional law enforcement assistance was provided by the U.S. Marshals, Oregon National Guard, Las Vegas Metropolitan Police Department, Ft. Lauderdale Police Department, Broward County Sheriffs Office, Clackamas County Sheriffs Office, Westside Interagency Narcotics Task Force (WIN), and the Clark-Vancouver Drug Task Force. Assistant U.S. Attorneys Geoffrey A. Barrow and John F. Deits, prosecuted the criminal case. Assistant U.S. Attorneys Leslie Westphal and AnneMarie Sgarlata handled the asset forfeitures in the case.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a federally-funded program established in 1982 whose mission is to support comprehensive, multi-agency investigations designed to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations. This case was also an investigation under the Oregon High Intensity Drug Trafficking Area (HIDTA) program, sponsored by the White House's Office of National Drug Control Policy (ONDCP). HIDTA is a counterdrug grant program that provides funding, coordination, and intelligence resources to multi-agency drug enforcement task forces seeking to disrupt or dismantle local, multi-state, and international drug trafficking and money laundering organizations.
Mission Woman Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, woman convicted of Assault with a Dangerous Weapon was sentenced on April 29, 2013, by U.S. District Judge Roberto A. Lange. Dadra Connors, age 35, was sentenced to 30 months in custody, 2 years of supervised release, and $100 to the Federal Crime Victims Fund.
Connors was indicted by a federal grand jury on July 18, 2012, and pled guilty to the charge on January 9, 2013.
The conviction stems from an incident that took place on May 20, 2012, when Connors drove her truck at the victim as he was walking across a gravel road. The victim dove into the ditch to avoid being hit. During the process, a second victim was ejected from the cargo area of Connors' truck and was injured.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Timothy M. Maher.
Connors was remanded to the custody of the U.S. Marshal.
Middlesex County, N.J., Man Charged with Bank Robbery in Saddle Brook, N.J.Read the Press Release
NEWARK, N.J. - A Middlesex County, N.J. man made his initial appearance in federal court today following his arrest in connection with a bank robbery, U.S. Attorney Paul J. Fishman announced.
Jorge Rodriguez, 45, of South River, N.J., is charged by Complaint with one count of bank robbery. He appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the Complaint:
On April 19, 2013, Rodriguez allegedly approached the customer counter at a TD Bank in Saddle Brook, brandishing what appeared to be a handgun in the direction of the teller. He handed the teller a paper shopping bag, and instructed the teller to put money into the bag, threatening to shoot the teller if she did not comply with his demands. At the time of the robbery, Rodriguez was wearing a baseball cap and glasses and had what appeared to be long hair and facial hair. Rodriguez was apprehended later that same day in a nearby residential neighborhood. Police recovered, among other things, cash, a BB pistol, the baseball cap, wig and fake facial hair, all allegedly worn by Rodriguez during the robbery.
If convicted on the bank robbery charge, Rodriguez faces a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charge. He also thanked the Saddle Brook Police Department for their contribution to the case.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-177
Defense counsel: Donald J. McCauley Esq., Assistant Federal Public Defender, NewarkRodriguez Complaint
McLaughlin Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Verle Janis a/k/a Verl Janis, age 31, of McLaughlin, South Dakota appeared before U.S. District Judge Charles B. Kornmann on April 23, 2013 and pled guilty to a Superseding Information that charged him with Assaulting, Resisting and Impeding a Federal Officer. The maximum penalty upon conviction is 8 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years.
The conviction stems from an incident in January of 2013 when a Bureau of Indian Affairs (BIA) officer was dispatched to the Bear Soldier West housing project in McLaughlin. Upon arrival, he observed several individuals in the residence and requested a warrant check. He was advised that Janis was on probation with conditions that prohibited alcohol. When the officer attempted to place the Defendant in handcuffs, he became uncooperative and refused to comply. The BIA Officer removed his taser and the Defendant momentarily complied and was placed in the back seat of the patrol unit.
The BIA Officer then secured several personal items left in the house by the Defendant and upon opening the back door to the patrol unit, was kicked in the shoulder by the Defendant. The BIA Officer was forced to remove the Defendant from the patrol unit in order to place him in leg restraints. As he attempted to secure the Defendant, the Officer was kicked in the leg several times.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for July 22, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A MinorRead the Press Release
WASHINGTON – George G. Kahl, 42, of Alexandria, Va., pled guilty today to traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Kahl entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer is to sentence him on July 26, 2013. Kahl faces a maximum sentence of 30 years of imprisonment as well as a fine of $250,000.
According to the government's evidence, on Feb. 9, 2013, Kahl contacted a man he believed to be the father of an under-aged female child on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next few days, Kahl engaged in graphic online e-mail and text message conversations with the undercover officer. During these conversations, Kahl arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the purported child. On Feb. 22, 2013, Kahl traveled from Alexandria to Washington, D.C. for that purpose and was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-150Man Pleads Guilty to Attempting to Ship Methamphetamine and Cocaine to the Philippines in Redwood CityRead the Press Release
SAN FRANCISCO - Gabriel Uribe-Bautista pleaded guilty in federal court in San Francisco on April 23, 2013 to distribution of cocaine and 500 grams or more of a mixture and substance containing methamphetamine, United States Attorney Melinda Haag announced.
In pleading guilty, Uribe-Bautista admitted that on August 24, 2012, he possessed and attempted to ship two packages to the Philippines containing a total of 2.87 net kilograms of a mixture and substance containing methamphetamine and 27.96 net grams of cocaine. Uribe-Bautista admitted that obtained the methamphetamine and cocaine from an individual with the understanding that he would ship them to the Philippines, and he accepted money from the individual in return for arranging shipment of the drugs. On August, 24, 2012, Uribe-Bautista traveled from Redwood City to the ABS-CBN International shipping company in Redwood Shores, California, with packages containing the methamphetamine and cocaine. He took the packages into the shipping company and arranged for them to be shipped to the Philippines, using a fake name that he had been given to put on the boxes. Uribe-Bautista admitted that he had previously shipped packages for the same individual in a similar manner.
Authorities were tipped off to investigate when employees at the shipping company notified law enforcement because they found large quantities of an unknown white substance in the packages that had been dropped off for shipment.
Uribe-Bautista, 37 years old, a Mexican citizen, was indicted by a federal Grand Jury on January 3, 2013. He was charged with two counts of possession with intent to distribute and distribution of cocaine and 500 grams or more of a mixture and substance containing methamphetamine in violation of 21 U.S.C. § 841(a)(1), (b)(1)(A)(viii), and (b)(1)(C). Under the plea agreement, Uribe-Bautista pleaded guilty to both counts.
Uribe-Bautista has been in continuous federal custody since December 27, 2012.
Uribe-Bautista’s sentencing is scheduled for July 9, 2013 before Judge Richard Seeborg in San Francisco. The maximum statutory penalty for possession with intent to distribute and distribution of 500 grams or more of a mixture and substance containing methamphetamine in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii) is life imprisonment and a fine of $10,000,000. This violation also carries a mandatory minimum statutory penalty of 10 years imprisonment and 5 years of supervised release. The maximum statutory penalty for possession with intent to distribute and distribution of cocaine in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C) is 20 years and a fine of $1,000,000. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the Drug Enforcement Administration and the San Mateo County Narcotics Task Force.
(Uribe-Bautista Indictment )
Lower Brule Man Charged with Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Jason Long, age 42, was indicted by a federal grand jury on February 13, 2013 for Possession with Intent to Distribute a Controlled Substance.
Long appeared before U.S. Magistrate Judge Mark A. Moreno on April 25, 2013 and pled not guilty to the Indictment. The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; a mandatory period of supervised release of at least 3 years up to life; and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charge is merely an accusation and Long is presumed innocent until and unless proven guilty. The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Long was remanded to the custody of the U.S. Marshal Service. A trial date has not been set.
Landover Woman Indicted for Allegedly Embezzling over $453,000 from Her EmployerRead the Press Release
Greenbelt, Maryland - A federal grand jury today indicted Mercy Coffie-Joseph, a/k/a Mercy A. Coffie, age 40, of Landover, Maryland, on charges of wire fraud and money laundering in connection with a scheme to embezzle over $453,000 from her employer. She was also charged with making a false statement in a passport application, using a passport obtained through a false statement and aggravated identity theft.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service.
According to the 10 count indictment, from May 2010 through February 15, 2013, Joseph was employed by Systems Assessment & Research, Inc. (SAR), where she had the authority to make electronic payments to contractors on SAR’s behalf. The indictment alleges that during the time of her employment, Joseph allegedly stole $453,125.52 from her employer by initiating funds transfers from SAR bank accounts to bank accounts she owned and/or controlled. The indictment alleges that Joseph laundered the money, using the stolen funds to draw two cashier’s checks for $40,000 and $50,000, respectively, to purchase a house in Ghana.
The indictment also alleges that Joseph used the name and date of birth of another individual, without the person’s knowledge or permission, to apply for and receive a United States passport, which Joseph then used to travel to Ghana.
The indictment seeks forfeiture of the proceeds of the wire fraud, including $453,125.52 in cash, as well as property discovered at Joseph’s home during the execution of a search warrant on April 15, 2013, including a video camera worth approximately $10,000, a Gucci handbag purchased for approximately $885, diamond earrings and necklace, a Movado watch, and computers.
Joseph faces a maximum sentence of 20 years in prison for each count of wire fraud and money laundering; a maximum of 10 years in prison for making a false statement on a passport application; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI and U.S. Department of State’s Diplomatic Security Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Thomas P. Windom and Robert K. Hur, who are prosecuting the case.
Kansas City Lawyer Sentenced to Five Years for Conspiracy to Launder Drug MoneyRead the Press Release
KANSAS CITY, KAN. – A Kansas City lawyer has been sentenced to five years in federal prison for conspiring to launder drug money of an undercover agent posing as a marijuana dealer, U.S. Attorney Barry Grissom said today.
Ronald E. Partee, 66, Kansas City, Mo., pleaded guilty to one count of conspiracy to commit money laundering and one count of money laundering.
In his plea, Partee admitted he conspired with co-defendants Mendy Read-Forbes, 38, Platte City, Mo., and Laura Shoop, 46, Platte City, Mo. The investigation began in March 2012 when a KBI agent working undercover met Read-Forbes. Read-Forbes was holding herself out as the owner of Forbes & Newhard Credit Solutions, Inc., a nonprofit organization established to provide credit counseling to people who were in bankruptcy proceedings. In fact, she was not the legal owner but exercised control of the company's bank account along with Partee. Shoop was an acquaintance of Read-Forbes who worked at various times for the company.
The KBI agent was posing as a marijuana dealer. Forbes offered to consult with Partee and to devise a scheme to launder the dealer’s drug proceeds. As part of the scheme, Forbes offered to deposit money given to her by the agent she thought was a drug dealer into the bank accounts of Forbes and Newhard Credit Solutions or related companies and then to return the money to the dealer via checks, money orders or wire transfers. The bank accounts were in Kansas.
To make the transactions appear legitimate, Forbes gave the drug dealer a contract titled “Purchase and Sale of Business Agreement.” The contract, bearing the signature of Partee and the drug dealer, made it appear that the marijuana dealer was purchasing assets of FCP, Inc., a corporation controlled by Forbes and Partee.
To make it appear that the drug dealer was engaged in business as a certified credit counselor with Forbes and Newhard Credit Solutions, Forbes gave the drug dealer a certificate saying he had completed training as a bankruptcy specialist.
In addition, Forbes created a fictitious company called Maximum Lawn Care, LLC, and opened bank accounts where cash from the drug dealer was deposited.
Partee was at various times a member of the board of directors for Forbes and Newhard and a signator on FCP's bank accounts. On April 20, 2012, Partee approved two wire transfers from the FCP account that he believed were drug funds. He sent $5,000 to a bank account of Maximus Lawn Care and $5,000 to the bank account of an undercover agent posing as a drug dealer. During a meeting May 25, 2012, at Partee's office, the undercover agent posing as a drug dealer sought advice from Partee concerning where he could store marijuana. During the meeting, which was recorded, Partee engaged in the discussion.
Defendants Read-Forbes and Shoop are awaiting trial. In a separate case, Mendy Read-Forbes and Brian Forbes have been charged with one count of conspiracy to defraud and one count of money laundering.
Grissom commended the Kansas Bureau of Investigation, the U.S. Secret Service, the Internal Revenue Service, the Department of Housing and Urban Development, Assistant U.S. Attorney Chris Oakley and Assistant U.S. Attorney Jabari Wamble for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Insurance Agent Pleads Guilty to Personal Income Tax EvasionRead the Press Release
TRENTON, N.J. – An insurance agent admitted today he evaded paying taxes related to income derived from his sale of insurance products from 2001 through 2005, U.S. Attorney Paul J. Fishman announced.
Ronald Patetta, 58, of Branchburg, N.J., pleaded guilty before U.S. District Judge Peter G. Sheridan to Count Three of the Indictment against him, which charged him with tax evasion.
According to documents filed in this case and statements made in court:
From 2001 through 2005, Patetta worked as a licensed insurance agent and sold insurance products for a number of different insurance companies. Although the insurance companies paid Patetta wages and commissions in excess of nearly $900,000 during those years, Patetta did not pay any taxes on that income. In April 2007, Patetta filed for bankruptcy under Chapter 13 of the U.S. Bankruptcy Code. Patetta listed his assets and liabilities in his bankruptcy filing, including liabilities of approximately $440,000 for past taxes owed to the IRS.
Between July 2006 and October 2006, Patetta filed false income tax returns for the 2001 and 2005 tax years showing that he had earned no income for those years and owed no taxes. He also fabricated IRS-1099 forms purportedly from various insurance companies that he attached to his tax returns. These forms falsely showed that the insurance companies paid him no income for the years in question.
Patetta took steps to obstruct the IRS investigation. He sent letters and filed court papers challenging the legality of the IRS’ conduct, their legal authority to perform their jobs, and threatening them with legal action if they persisted. Patetta also sent “cease and desist” letters to the various insurance companies, threatening them with legal action if they complied with any IRS summonses requesting information concerning Patetta.
The charge to which Patetta pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for Sept. 4, 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 of the case.
The government is represented by Assistant U.S. Attorney Gurbir S. Grewal of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.
13-174Defense counsel: Alain Leibman Esq., Lawrenceville, N.J.
Patetta Indictment
Honduran Sentenced to Time-Served for Illegally Re-entering United StatesRead the Press Release
PITTSBURGH - An individual found in Homestead, Pa., pleaded guilty and has been sentenced in federal court to time-served on his conviction of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Wilson Baca-Ortiz, 33, formerly from Honduras.
According to the information presented to the court, Wilson Baca-Ortiz, an alien, was removed from the United States by U.S. States Immigration and Customs Enforcement on Nov. 21, 2005. Wilson Baca-Ortiz was found on March 21, 2013, pursuant to an on-going investigation into another immigration matter.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Immigration and Customs Enforcement for conducting the investigation leading to the successful prosecution of Baca-Ortiz.
Grapeland Man Indicted for Anderson County Child Exploitation ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A 45-year-old Grapeland, Texas man has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Robbie Newby was indicted by a federal grand jury on Apr. 17, 2013, and charged with four counts of sexual exploitation of a child and one count of possession of child pornography. Newby went before U.S. Magistrate Judge John D. Love today for an initial appearance.
According to the indictment, from January to March 2012, Newby coerced or persuaded a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. The conduct is alleged to have occurred in Anderson County, Texas.
This case is being prosecuted 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.
If convicted, Newby faces a minimum of 15 years in federal prison for each of the exploitation charges and up to 10 years for the possession charge.
This case is being investigated by the Department of Homeland Security - Homeland Security Investigations DHS-HSI and the Anderson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Nathaniel Kummerfeld.
It is important to note that an arrest, indictment, or complaint should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.Gavin Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that JEANNE L. GAVIN, age 61, of Baton Rouge, pled guilty before Chief U.S. District Judge Brian A. Jackson to exceeding authorized access to a government computer, in violation of Title 18, United States Code, Section 1030, and engaging in a criminal conflict of interest, in violation of Title 18, United States Code, Section 205. As a result, the defendant faces up to two years in prison, a $200,000 fine, and one year of supervised release following imprisonment. Sentencing is scheduled for September 12, 2013.
The defendant’s convictions stem from actions she took while serving as a Supervisory Internal Revenue Agent and Group Manager in the Baton Rouge office of the Internal Revenue Service. In that role, the defendant supervised approximately ten revenue agents responsible for determining federal tax liability and collecting owing taxes for individual, partnership, and corporate taxpayers.
During today’s hearing, the defendant admitted that, while working for the IRS, she engaged in a criminal conflict of interest with her IRS employment by owning and operating a private tax and accounting business which generated over $70,000. The defendant further admitted to using her position as an IRS Manager to improperly cause subordinates to access IRS databases on over 2000 occasions for the benefit of her private tax and accounting business.
U.S. Attorney Cazayoux stated: “My office, together with our federal, state, and local partners, will continue to aggressively pursue instances of public corruption wherever found. Public confidence in our governmental institutions, particularly those agencies entrusted to tax collection, is vitally important. The criminal acts of a few undermine such confidence, while overshadowing the honest efforts of the vast majority of public servants. My great appreciation to the Office of Treasury Inspector General for Tax Administration (TIGTA) who worked tirelessly with our office and the Federal Bureau of Investigation (FBI) in this important matter.”
Inspector General J. Russell George of TIGTA stated: “As our voluntary system of tax administration relies heavily upon the public’s confidence in a fair tax system, IRS employees must conduct themselves with the highest level of integrity and their conduct must be above reproach. Our message is loud and clear: TIGTA will vigorously investigate and recommend criminal prosecution for any IRS employee who violates the law.”
This matter was investigated by this office, TIGTA, and the FBI. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
Gainesville Man Charged with Making and Distributing Child PornographyRead the Press Release
Victims Were Two Girls in Defendant’s Care
GAINESVILLE, Ga. – Michael Cannon, II, was arraigned today on charges that he produced, distributed, and received child pornography. The indictment was returned by a federal grand jury on April 9, 2013.
“Photographing molestation and trading the images over the Internet with like-minded individuals in exchange for more child pornography is horrendous,” said United States Attorney Sally Quillian Yates. “Child pornography robs children of their innocence. It also places a permanent record of the victimization of these children on the internet. To make matters even worse, in this case the two girls were in the defendant’s care. Law enforcement officers have identified and rescued the children, and the defendant will now have to answer for participating in this cycle of victimization.”
“While HSI special agents are working around the clock and around the world to drain the cesspool that is child pornography, the identification and rescue of victims suffering at the hands of depraved child predators is of the highest priority,” said Brock D. Nicholson, Special Agent in Charge of Homeland Security Investigations, Atlanta. “Every single law enforcement agency in this country is absolutely dedicated to hunting down these predators and holding them accountable for their despicable actions. I strongly encourage citizens everywhere to do their part to help protect our innocent children by reporting any signs of abuse they witness. It will take the collective efforts of law enforcement and members of our communities to successfully bring these monsters to justice.”
According to United States Attorney Yates, the charges and other information presented in court: In mid-December 2012, Cannon, 33, of Gainesville, Ga., allegedly posted several images of a 10-year-old girl on a foreign-based website where people could post and share photographs. At least one of the images was child pornography. Several individuals posted comments on Cannon’s photographs and asked about trading photos. According to the information presented in court, Cannon gave them his e-mail address and, when they wrote him, he sent them explicit photographs showing him in the act of molesting two young girls. In return, he received dozens of e-mails containing images and videos of other children being sexually abused. As part of their investigation, special agents determined the true identities of the two minor victims that Cannon is alleged to have .photographed and posted online.
The charge of producing child pornography carries a mandatory minimum period of confinement of 15 years and a maximum sentence of 30 years in prison. The charge of receiving child pornography carries a mandatory minimum confinement period of 5 years and a maximum term of 20 years in prison. The charge of possessing child pornography carries a maximum sentence of 10 years in prison. Each charge carries a fine of up to $250,000 and a period of supervised release from 5 years to life. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt at trial.
These cases are being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Special Agents of the United States Department of Homeland Security, Homeland Security Investigations.
Assistant United States Attorney Paul R. Jones is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Fort Yates Man Sentenced for Assault & Burglary ChargesRead the Press Release
BISMARCK - U.S. Attorney Timothy Q. Purdon announced that on April 29, 2013, Lionel R. Jewett, 21, of Fort Yates, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on two counts of burglary, a count of assault with intent to commit murder, and two counts of assault with a dangerous weapon. Jewett pleaded guilty to the charges on Aug. 20, 2012.
Judge Hovland sentenced Jewett to serve six years in federal prison, to be followed by three years of supervised release. Jewett was ordered to pay $500 in special assessments to the Crime Victim’s Fund and $12,041.17 in restitution.
On March 30, 2011, Jewett and a co-defendant broke into a garage owned by the Catholic church in Fort Yates and took a vehicle, tools and some money. Jewett was also involved with a second burglary at the church on Oct. 15, 2011, in which tools were stolen.
In a separate incident on Jan. 16, 2012, Jewett attacked two women in the Fort Yates area. Jewett assaulted the first woman by using a garden hoe and a fence post pounder. Jewett also kicked the first woman and a second woman while wearing shoes.
The case was investigated by the Bureau of Indian Affairs - Standing Rock Agency, the Federal Bureau of Investigation and the Standing Rock Police Department.Assistant U.S. Attorney Gary Delorme prosecuted the cases.
Former Kinston City Council Member Pleads Guilty to Child Pornography ChargeRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today, WILLIAM WALTER BARKER 44, of Kinston, North Carolina pled guilty before Senior United States District Judge James C. Fox to one count of Receipt of Child Pornography, in violation of Title 18, United States Code, Section 2252 (a)(2).
According to the investigation, the Freemont Police Chief received a USB thumbdrive found in the Freemont Town Hall Board of Alderman meeting room near where BARKER was sitting during a meeting he attended. BARKER was employed by a CPA firm in Kinston and attended the meeting to present and discuss the town audit. The thumbdrive contained images of child pornography along with other documents belonging to BARKER. Subsequently, a search warrant of BARKER’S residence in Kinston was executed on November 29, 2012. BARKER was home at the time and admitted to possessing a thumb dive that matched the description of the thumb drive found in Freemont’s Town Hall. A laptop computer recovered during the search of BARKER’S home contained over 4,000 images and 100 videos of child pornography.
BARKER faces a sentence of not less than 5 years imprisonment nor more than 20 years imprisonment along with a fine up to $250,000 and up to a lifetime of supervised release at sentencing.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level.
Investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Freemont Police Department. Assistant United States Attorney Ethan A. Ontjes prosecuted the case.
Former CEO and Two Associates Sentenced to Prison Terms for Conspiracy to Impede the Lawful Functions of the Internal Revenue ServiceRead the Press Release
WASHINGTON - Shelly S. Singhal, Dennis L. Pelino, and Loretta Fredy Bush, formerly of Xinhua Finance Limited (Xinhua Finance), a Chinese company trading publicly in Japan, were sentenced today to prison terms after earlier pleading guilty to a charge of conspiracy to impede the lawful functions of the Internal Revenue Service.
All three defendants pled guilty in February 2013 in the U.S. District Court for the District of Columbia. They were sentenced by the Honorable Chief Judge Royce C. Lamberth.
Singhal, 45, of Newport Beach, Calif., and Pelino, 65, of Miami Beach, Fla., were each sentenced to nine months of incarceration. Bush, 54, of San Francisco, was sentenced to one month of incarceration. Following their terms, each defendant will be placed on three years of supervised release. Bush will be required to serve the first 150 days of her release period in home confinement. Chief Judge Lamberth also ordered each defendant to pay $20,000 fines.
The sentences were announced by Mary B. McCord, Acting U.S. Attorney in this case, Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation.
In connection with the guilty pleas and as set forth in detail in the executed Statements of Offense, the defendants acknowledged that Singhal was the owner and Chairman of SBI Advisors, LLC, a California limited liability company engaged in the business of providing investment advisory services as well as buying and selling securities. Bush and Pelino acknowledged that, from time to time, they participated in investment and borrowing opportunities developed and recommended by Singhal.
Beginning in or about April 2005, Entrée Capital, a limited liability company formed at Singhal’s direction, opened an account at the First Internet Bank of Indiana and transferred funds to Bush and Pelino. Bush and Pelino executed a series of promissory notes obligating them to repay the funds within a fixed term and to pay interest annually at a fixed rate, but the notes did not provide for the method of calculating interest (simple or compound).
The defendants acknowledged that, in or about August 2006, documentation was executed to transfer the ownership of Entrée Capital to a foreign national residing outside the United States. Employees of SBI Advisors continued to maintain Entrée Capital’s books and records. Between January 2006 and January 2009, Bush and Pelino made several interest payments at the rates prescribed in the promissory notes they had executed, but these payments were not made according to any fixed schedule.
Singhal, Bush and Pelino acknowledged that, in or about October 2008, the Entrée Capital account at the First Internet Bank of Indiana was closed by the management of the bank. Each of the defendants acknowledged that, by in or around February 2009, he or she had learned that the Entrée Capital account was closed. In addition, the defendants acknowledged that in 2009 and continuing into early 2010, they became aware that the foreign national to whom ownership of Entrée Capital had been assigned had failed to respond to inquiries or otherwise acknowledge his ownership of Entrée Capital.
The defendants acknowledged that from April 15, 2010 through May 10, 2011, they conspired to impede the lawful functions of the Internal Revenue Service in the ascertainment, assessment, and determination of whether the principal balances owed to Entrée Capital by Bush and Pelino had become forgiven debt and represented income to Bush and Pelino.
As of April 15, 2010, the principal balances owed by Bush and Pelino to Entrée Capital were approximately $2,153,663 and $1,380,633, respectively. The defendants acknowledged failing to notify and otherwise concealing from the Internal Revenue Service that the nominal owner of Entrée Capital had effectively abandoned its assets, including the principal balances payable to Entrée Capital by Bush and Pelino, to delay the payment of any income tax due and owing on those unpaid amounts as forgiven debt. They acknowledged discussing among themselves and with others the fact that the owner of Entrée Capital was a foreign national and that any information in the foreign national’s possession was possibly beyond the authority of the Internal Revenue Service to obtain. Singhal did not direct his employees at SBI Advisors, who maintained Entrée Capital’s books and records, to issue Forms 1099-C (Cancellation of Debt) to Bush and Pelino, which forms would have notified the Internal Revenue Service that Entrée Capital was treating the principal balances payable to Entrée Capital by Bush and Pelino as forgiven debt. Bush and Pelino acknowledged filing Forms 1040 (U.S. Individual Tax Return) for the tax year 2009, which returns failed to declare any portion of the $2,153,663 and $1,380,633 owed to Entrée Capital as income to Bush and Pelino, respectively.
As part of the plea agreements, the government agreed to move at sentencing to dismiss with prejudice the indictments previously returned against the defendants.
Three others earlier pled guilty to charges in the investigation.
In announcing the sentences, Acting U.S. Attorney McCord, Assistant Director in Charge Parlave, and Special Agent in Charge Kelly praised the investigative efforts of the Special Agents of the FBI’s Washington Field Office and the IRS-Criminal Investigation Division. They also recognized the work of U.S. Attorney’s Office Forensic Accountant Crystal Boodoo, Paralegal Specialist Tasha Harris, and Legal Assistants Lenisse Edloe and Krishawn Graham. Finally, they commended the efforts of Trial Attorney Kenneth C. Vert, U.S. Department of Justice, Tax Division, Northern Criminal Enforcement Section, and Assistant U.S. Attorneys Jonathan Hooks and Michael K. Atkinson, who prosecuted the case.
13-148