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25 April 2013
Justice Department Reaches Agreement with City of Falls Church, Va., on Bailout Under the Voting Rights ActRead the Press Release
The Justice Department announced today that it has reached an agreement with the city of Falls Church, Va., that will allow for the city, a covered jurisdiction under the special provisions of the Voting Rights Act, to bail out from coverage under these provisions. Bailout will exempt the city of Falls Church, along with the Falls Church City Public School District, from the preclearance requirements of Section 5 of the Voting Rights Act. The agreement is in the form of a consent decree filed today in the U.S. District Court for the District of Columbia and must be approved by the court.
Under Section 5 of the Voting Rights Act, certain covered jurisdictions, determined according to Section 4 of the Act, are required to seek preclearance for any changes in voting qualifications, standards, practices or procedures from the U.S. District Court for the District of Columbia or from the U.S. Attorney General, prior to their implementation. Section 4 of the Act provides that a covered jurisdiction may seek to “bail out,” or remove itself from such coverage, and therefore be exempted from the preclearance requirements, by seeking a declaratory judgment before a three-judge panel in the U.S. District Court for the District of Columbia. A bailout judgment can be issued only if the court determines that the jurisdiction meets certain eligibility requirements for bailout contained in the statute, including a 10-year record of nondiscrimination in voting-related actions. The act also provides that the Attorney General can consent to entry of a judgment of bailout only if, based upon investigation, the Attorney General is satisfied that the jurisdiction meets the eligibility requirements.
The city of Falls Church filed its bailout action in the U.S. District Court for the District of Columbia on Feb. 15, 2013. Counsel for the city contacted the Attorney General prior to filing the action, indicating that the city was interested in seeking bailout. The city provided the Justice Department with substantial information, and the department conducted an investigation to determine the city’s eligibility. Based on that investigation, the department is satisfied that the city of Falls Church meets the Voting Rights Act’s requirements for bailout.
“In the department’s view, the city of Falls Church has met the requirements necessary for bailout. We reached this conclusion after thoroughly reviewing information provided by the city and information gathered during the Department’s independent investigation,” said Matthew Colangelo, Deputy Assistant Attorney General for the Civil Rights Division. “We appreciate the city’s cooperation in the resolution of this matter.”
The consent decree details the legal and factual basis for a bailout determination and, if approved by the court, the city’s request will be granted. The court will retain jurisdiction of the action for 10 years and can reopen the action upon the motion of the Attorney General or any aggrieved person alleging conduct by the city that would have originally precluded the city from bailing out if it had occurred during the 10-year period preceding entry of the consent decree.
Information about bailout, the Voting Rights Act and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/voting . Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Related Materials:
Falls Church Joint Motion and Consent Decree
Jury Finds New Haven Man Guilty of Participating in Crack Cocaine Trafficking RingRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found JAMES DICKERSON, also known as “Jim Jim,” 30, of New Haven, guilty of conspiracy to distribute 28 grams or more of cocaine base (“crack cocaine”) and distribution of crack cocaine. The jury returned the verdict today following a four-day trial before Senior United States District Judge Ellen Bree Burns.
According to statements made in court and the evidence disclosed during the trial, this matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by Joseph Jackson, also known as “Mighty” and “M.I.,” and centered in the Newhallville section of New Haven and Hamden. The investigation revealed that Jackson used “young boys,” some of whom were still in high school, to distribute large quantities of crack cocaine.
In July and August 2010, DICKERSON was regularly intercepted over the wiretap arranging to meet one of Jackson’s associates at locations in Newhallville to purchase two “8-balls” (7 grams) of crack cocaine each time. DICKERSON then divided the crack into $20 baggies, which he sold to his own customers.
On October 13, 2010, DICKERSON was videotaped selling $300 worth of crack cocaine to an undercover police officer.
At trial, DICKERSON maintained that he bought crack cocaine from the members of the conspiracy, but was not a conspirator himself. The jury rejected this defense, and convicted DICKERSON on both the conspiracy count and the distribution count.
Judge Burns has scheduled sentencing for July 18, 2013. Based on the government’s filing of a second offender notice indicating that DICKERSON has a previous conviction for a felony drug offense, DICKERSON faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation. All have been convicted.
This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration's New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation was funded in significant part by the United States Attorney's Office Organized Crime Drug Enforcement Task Force and supported by the Office's Project Safe Neighborhoods and Anti-Gang programs.
This matter is being prosecuted by Assistant United States Attorneys Robert M. Spector and Christopher M. Mattei.
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(203) 821-3722 [email protected]Jury Finds Minneapolis Felon and Known Drug User Guilty of Possessing A .40-caliber PistolRead the Press Release
MINNEAPOLIS— Yesterday in federal court, a jury found a 36-year-old felon guilty of possessing a .40-caliber, semi-automatic pistol. Following a three-day trial, a jury convicted Demario Kentrell Booker, of Minneapolis, of one count of illegally possessing a firearm after being previously convicted of a felony and while being an unlawful user of and addicted to a controlled substance.
The evidence presented at trial proved that on November 20, 2012, Booker, an admitted drug addict, possessed the pistol. A law enforcement affidavit filed in the case indicated that at approximately 2:06 a.m. on that day, officers noted that a vehicle, later found to be driven by Booker, had failed to signal a turn and had crossed the center line. Booker, however, refused to pull over and, instead, led the police on a high-speed chase. The police recovered the gun from inside the vehicle.
Because he is a felon, Booker, also known as Gary White, is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in Hennepin County include assault in the third degree (2004), assault in the fourth degree (2008), and being a prohibited person in possession of a firearm (2009).For his crimes, Booker faces a potential maximum penalty of ten years in federal prison. United States District Court Judge John R. Tunheim will determine his sentence at a future hearing, yet to be scheduled.
This case was the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.Jury Convicts Three in Multi-Million Dollar Scheme to Defraud the United StatesRead the Press Release
A federal jury this morning in San Antonio convicted three individuals for their roles in a multi-million dollar fraud scheme announced United States Attorney Robert Pitman, General Services Administration (GSA) Inspector General Brian D. Miller, Air Force Office of Special Investigations (AFOSI), and the Defense Contract Audit Agency (DCAA).
Jurors convicted 62-year-old Donald Dean Brewer and his wife, 62-year old Sherri Lynn Brewer, both of Clovis, New Mexico, and 60-year-old James McKinney of San Antonio, with one count of conspiracy to defraud the United States, twelve counts of wire fraud and three counts of major fraud against the United States.
Testimony at trial established that in 2002, Donald Brewer was employed by KARTA Technologies, Inc. (KARTA), as the Medical Systems Infrastructure Modernization (MSIM) program manager at Brooks City-Base, San Antonio and James McKinney served as the Vice President of Government Services for Ark Systems, Inc. (Ark). KARTA contracted with the Air Force to provide engineers and analysts to evaluate and implement MSIM projects for the Air Force; Ark was hired by various Government contractors to provide the installation of cabling and electronics in support of MSIM projects at Air Force medical facilities worldwide. Testimony revealed that the defendants created a sham subcontracting business, Enterprise and Deployment, LLC (E&D) to be included as an additional extra subcontractor between the prime contractors and Ark. E&D added no value to these contracts, but the defendants submitted invoices for payment to E&D invoices, causing prime contractors to overcharge the Air Force by including E&D’s fraudulent charges in the prime contractor invoices. From July 2002 through 2008, the defendants carried out their scheme, obtaining approximately $33.5 million in subcontracts for E&D and thereby enriching themselves by almost $6.5 million.
The conspiracy charge carries a statutory maximum penalty of five years in federal prison; each wire fraud charge up to 20 years in federal prison; and, each major fraud charge up to 10 years in federal prison. A monetary judgment against the defendants for more than $6 million is also pending before the Court. The defendants remain free on bond pending sentencing scheduled for June 28, 2013 before Chief U.S. District Judge Fred Biery.
This case was investigated by the GSA Office of Inspector General, AFOSI and DCAA. Assistant United States Attorney James Blankinship and Special Assistant United States Attorney Gary McCown prosecuted this case on behalf of the United States.
Judge Sentences Convicted Cocaine Dealer to 20 Years in PrisonRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh has been sentenced in federal court to 20 years incarceration and 10 years supervised release on his conviction of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Alan N. Bloch imposed the sentence on Andre Allen Williams, 42.
According to information presented to the court, the evidence presented at trial established that Williams, with the assistance of his girlfriend Marquetta Mitchell, brought over $146,000 in cash to a drug deal involving five kilograms of cocaine. Recorded conversations played for the jury showed that this deal was a prelude to another 20-kilogram cocaine deal between Williams and his Mexican-born co-defendants Mario Soto and Emilo Carmona-Cepeda. The evidence also showed that Williams and Mitchell were traveling with Carmona-Cepeda from Pittsburgh to Texas two-and-a-half weeks earlier when police stopped them in Tennessee. The vehicle driven by Carmona-Cepeda was found to have nearly $220,000 hidden inside - mostly within secret compartments in the headliner of the vehicle. Judge Bloch determined that the evidence showed Williams' involvement in a total of 33 kilograms of cocaine. Mitchell, Soto and Carmona-Cepeda are each serving 10 years of incarceration.
At the time of the incidents, Williams was on Federal Supervised Release after serving over 10 years of a prior 211-month federal sentence. Williams was previously convicted in the federal district court in the Northern District of West Virginia of conspiracy to possess with intent to deliver over two kilograms of cocaine, money laundering and possessing a firearm in furtherance of his drug crime. Williams was also violating his Supervised Release by leaving the Pittsburgh area without the permission of his Federal Probation Officer, Tara Kessler. Williams has been previously sanctioned by the court for being found in Tennessee, Missouri and Oklahoma without permission - sometimes in the company of other felons.
Prior to imposing sentence, Judge Bloch considered the seriousness of the offense, the deterrent effect the sentence would have on others and the need to protect the public from further crimes of the defendant.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Immigration and Customs Enforcement Agency as well as local police officers from Coraopolis, Findlay Township, Robinson Township, Canonsburg, Monroeville, Wilkins Township and the 21st Drug Task Force in Tennessee for the investigation leading to the successful prosecution of Williams.
James Light Sentenced to 150 Months in Prison for Conspiracies to Distribute Cocaine and OxycodoneRead the Press Release
GREENEVILLE, Tenn. - James Light, 65, of Rogersville, Tenn., was sentenced to serve 150 months in prison, followed by four years of supervised release, by the Honorable Leon Jordan, U.S. District Judge. Light pleaded guilty in December 2012 to conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine and a conspiracy to distribute and possess with intent to distribute oxycodone.
As a result of this investigation, several other individuals have been convicted and sentenced for their involvement in the drug conspiracies.
On Apr. 25, 2013, Michael L. Dykes, 51, of Rogersville, Tenn., was sentenced to serve 37 months in prison followed by one year of supervised release. Dykes was allowed to remain on bond until reporting to the Bureau of Prisons. He pleaded guilty in January 2013 to conspiracy to distribute and possess with intent to distribute marijuana and conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 16, 2013, Lorne L. Loucel, 32, of Rogersville, Tenn., was sentenced to serve 108 months in prison followed by three years of supervised release. Loucel pleaded guilty in December 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 16, 2013, Daniel L. Dykes, 29, of Rogersville, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Dykes pleaded guilty in December 2012 to conspiracy to distribute and possess with intent to distribute marijuana and conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 2, 2013, Christy D. Dykes, 32, of Rogersville, Tenn., was sentenced to serve 40 months in prison, followed by three years of supervised release. Dykes pleaded guilty in November 2012, to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 21, 2013, Christy R. Seay, 39, of Greeneville, Tenn., was sentenced to serve 57 months in prison followed by three years of supervised release. Seay pleaded guilty in September 2012, to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 11, 2013, Ella Maria Camacho Garcia, 30, of Burlington, N.C., was sentenced to serve 78 months in prison followed by two years of supervised release. Garcia pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute marijuana and a conspiracy to distribute and to possess with the intent to distribute cocaine. She also pleaded guilty to money laundering and received a money judgment in the amount of $815,000.00.
On Mar. 7, 2013, Jonathan L. Light, 24, of Kingsport, Tenn., was sentenced to serve 84 months in prison followed by three years of supervised release. Light pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 7, 2013, Levi D. Love, 24, of Kingsport, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Love was allowed to remain on bond until reporting to the Bureau of Prisons. He pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 4, 2013, Charles Thomas Laing, 30, of Rogersville, Tenn., was sentenced to serve 157 months in prison followed by four years of supervised release. Laing pleaded guilty in September 2011, to conspiracy to distribute and possess with intent to distribute oxycodone pills, possession of a firearm in furtherance of a drug trafficking offense, and money laundering.
On Feb. 28, 2013, Jessica R. Bernard, 23, of Greeneville, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Bernard pleaded guilty in September 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Feb. 28, 2013, Amanda D. Bernard, 23, of Afton, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Bernard pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Feb. 26, 2013, Shandeeda M. Compton, 31, of Rogersville, Tenn., was sentenced to serve 63 months in prison followed by three years of supervised release. Compton pleaded guilty in October 2012, to conspiracy to distribute and possess with intent to distribute oxycodone pills.
The indictment and subsequent conviction of Light and other co-conspirators was the result of a three year investigation conducted by the Hawkins County Tennessee Sheriff’s Department, Sullivan County Tennessee Sheriff’s Department, Greene County Tennessee Sheriff’s Department, Second Judicial Drug Task Force, Kingsport, Tennessee, Police Department, Third Judicial Drug Task Force, Tennessee Bureau of Investigation, and DEA. Assistant U.S. Attorney Caryn L. Hebets represented the United States.
Inmate at Marion Federal Prison Convicted of MurderRead the Press Release
Cleveland J. White Feather, 54, an inmate at the United States Penitentiary in Marion, IL, was convicted, in federal court, of murder, following a three day jury trial, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
The evidence at trial established that on December 2, 2009, White Feather killed his cell mate, Robert Running Bear, Jr., by cutting his abdomen open with a razor and partially disemboweling Running Bear. White Feather faces a sentence of life imprisonment without the possibility of parole.
The investigation in this case was conducted by the Federal Bureau of Investigation and the United States Bureau of Prisons.
The case is being handled by Assistant United States Attorney George Norwood and Special Assistant United States Attorney Jungmin Lee.
Huntsville Man Sentenced for Social Security FraudRead the Press Release
HOUSTON - Christopher Tyrone Cooper, 39, of Huntsville, has been ordered to federal prison following his conviction for one count of Social Security fraud, United States Attorney Kenneth Magidson announced today. Cooper pleaded guilty Thursday, Nov. 29, 2012.
Today, U.S. District Judge U.S. District Judge Sim Lake, who accepted the guilty plea, handed Cooper a total sentence of 27 months and must pay restitution. He will also be required to serve a term of three years of supervised release following completion of the prison term.
According to court documents, Cooper used the identity and Social Security number of an individual with a similar name to obtain more than $50,000 in credit at various FDIC-insured and non-insured institutions, medical facilities and other businesses, including financing from Bank of America to purchase a vehicle in March 2010.
According to documents in support of the guilty plea, Cooper opened 18 lines of credit using someone else’s Social Security number. Cooper defaulted on every loan and failed to make a single payment on any accounts he allegedly opened under fraudulent pretenses.
The victim in the case indicated he had been the victim of identity theft. He had been attempting to fix his credit for more than a year, but was unsuccessful as a result of Cooper continually using his Social Security number to obtain credit.
Cooper will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The matter was investigated by the United States Secret Service and the Huntsville Police Department. Assistant United States Attorney James R. Buchanan is prosecuting the case.
Houma Man, Donald Richardson, Indicted for Distribution of CocaineRead the Press Release
DONALD RICHARDSON, 35, a resident of Houma, was indicted by a federal Grand Jury today on two counts of distribution of crack cocaine, announced U. S. Attorney Dana J. Boente.
According to court records, on or about March 17, 2011 and March 23 2011, RICHARDSON did knowingly and intentionally distribute a quantity of crack cocaine.
Each count of the indictment carries a maximum term of imprisonment of twenty years, a fine of $1,000,000. and a minimum of three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The investigation is being conducted by Special Agents of the Drug Enforcement Administration and the Terrebonne Parish Narcotics Task Force. The case is being prosecuted by Assistant U. S. Attorney André Jones.
(Download Indictment )
Honduran National Sentenced to 18 Months in Prison for Unlawfully Entering the United StatesRead the Press Release
Oscar Naun Torres-Hernandez, 22, a citizen of Honduras, was sentenced today in United States District Court in Benton to a term of 18 months’ imprisonment for being illegally present in the United States after having previously removed by immigration officials, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Torres-Hernandez was charged by a Federal Grand Jury with that offense on November 6, 2012, after he was taken into custody by an Illinois State Police trooper on October 15th at the direction of Immigration and Customs Enforcement agents following a routine traffic stop on Interstate 57 in Effingham County during which the trooper learned that Torres-Hernandez was an illegal alien. He entered a guilty plea to the charge on January 3, 2013.
Evidence supporting the guilty plea and sentence showed that Torres-Hernandez had previously illegally entered and been removed from the United States to Honduras in 2009 following his conviction in Utah for Possessing Cocaine with Intent to Distribute. He illegally re-entered the country in August 2012 near Sasabe, Arizona.
In addition to the 18 month term of imprisonment, Torres-Hernandez was ordered to pay a $100 special assessment. After serving his term of imprisonment, he will be removed or deported by immigration officials.
Following his sentencing, Torres-Hernandez was returned to the custody of the United States Marshal to await designation by the Federal Bureau of Prisons to one of its facilities.
The case was investigated by Immigration and Customs Enforcement, which is an agency of the Department of Homeland Security, and the Illinois State Police.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Head of New Haven Heroin Distribution Ring Sentenced to Six Years in Federal PrisonRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that TARULUS GLASS, also known as “Dred,” 39, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 72 months of imprisonment, followed by four years of supervised release, for distributing heroin.
This matter stems from a Drug Enforcement Administration Task Force investigation dubbed “Operation Brick House,” which targeted a heroin distribution organization based in New Haven that was headed by GLASS. The investigation employed several law-enforcement techniques, including the use of confidential informants, controlled purchases of heroin, physical surveillance, and the use of court-authorized wiretaps on cellular telephones utilized by some of the defendants.
The investigation revealed that GLASS and his associates obtained prepackaged heroin from sources of supply in the New York metropolitan area and distributed it to drug sellers in and around New Haven.
During the course of the investigation, DEA Task Force officers seized heroin, cocaine and crack cocaine, four firearms and three vehicles.
On March 2, 2011, GLASS pleaded guilty to one count of conspiracy possess with intent to distribute 100 grams or more of heroin.
Eleven individuals were charged as a result of the investigation. All have pleaded guilty.
This matter was investigated by the DEA New Haven Task Force, which includes participants from the New Haven, Meriden, Hamden, West Haven, Branford and Ansonia Police Departments, and the United States Marshals Service. The case was prosecuted by Assistant United States Attorneys Patrick F. Caruso and H. Gordon Hall.
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(203) 821-3722 [email protected]Gregory R. Alexander Indicted for Possession of Flammable Liquid Bomb and Wire FraudRead the Press Release
GREGORY R. ALEXANDER, age 35, a resident of New Orleans, Louisiana, was charged today in a two count indictment by a federal grand jury for possession of an unregistered destructive device (a “bomb”) and with mail fraud, announced
U. S. Attorney Dana J. Boente.According to court documents, on February 25, 2013, ALEXANDER attempted to destroy his truck with a flammable liquid bomb while it was parked at a local bank. ALEXANDER then filed an insurance claim stating his truck had been stolen earlier.
U. S. Attorney Boente reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated jointly by Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), along with bomb squad members and detectives from the New Orleans Police Department, and Arson investigators of the New Orleans Fire Department. This case is being prosecuted by Tony Sanders of the Violent Crimes Unit.
(Download Indictment )
Gary Michael Hilton Sentenced to Four Life SentencesRead the Press Release
ASHEVILLE, N.C. – Gary Michael Hilton was sentenced to four life sentences today in U.S. District Court for the kidnapping and murder of John D. Bryant and Irene W. Bryant and to 15 years in prison for a related robbery offense, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Hilton pleaded guilty to the murdering the couple in March 2012. He also pleaded guilty to robbery, kidnapping and firearms offenses.
In June 2011, a federal grand jury returned a five-count criminal indictment charging Hilton, 66, with the October 2007 kidnapping, robbery and murder of John and Irene Bryant on national forest lands. According to filed court documents and today’s sentencing hearing, Hilton admitted killing John Bryant within the Nantahala National Forest in Macon County, N.C. using a firearm. Hilton also admitted killing John Bryant’s spouse, Irene Bryant, within the Pisgah National Forest in Transylvania County, N.C.
“Our thoughts and prayers are with the family and friends of the victims and while today’s outcome cannot bring back John and Irene Bryant, it is our sincere hope that everyone impacted by Hilton’s heinous crime can finally have some closure,” said U.S. Attorney Tompkins. “I also want to thank the prosecutors and our law enforcement partners who worked on this case for their hard work, professionalism and integrity.”
In April 2011, Hilton was convicted and received a death sentence for the murder of Cheryl Dunlap in Leon County, Florida. Hilton is also serving a life sentence for his conviction related to the 2008 murder of Meredith Emerson in Northern Georgia. At today’s sentencing hearing, U.S. District Judge Martin Reidinger ordered that Hilton’s federal life sentences be served consecutively with the sentences he received for the state convictions in Florida and Georgia.
All federal sentences are served without the possibility of parole.
The prosecution was handled by Don Gast of the U.S. Attorney’s Office in Asheville. U.S. Attorney Tompkins thanked the FBI, SBI, the U.S. Forest Service, the Transylvania County Sheriff’s Office and the Macon County Sheriff’s Office for their assistance in this investigation.
Gallatin County Man Sentenced to 10 Years in Prison for Manufacturing MarijuanaRead the Press Release
Paul E. Reynolds, 36, of Ridgeway, Illinois, was sentenced today in United States District Court in Benton to a term of 120 months in prison for growing over 100 marijuana plants and conspiring with others to do so, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Reynolds previously pled guilty to a two-count indictment returned by a Federal Grand Jury charging him with conspiring with two other individuals to manufacture over 100 marijuana plants (count 1) and manufacturing over 100 plants (count 2).
The offenses occurred in Gallatin County between April 2012, and August 29, 2012. On August 29th, law enforcement agents conducted ground surveillance on three marijuana plots which they had identified from the air and took Reynolds and co-defendant Daniel J. Fulkerson, also of Ridgeway, into custody as they entered the plots to water and tend the plants. A total of 132 plants were seized.
In addition to the 10 year term of imprisonment, Reynolds was ordered to pay the United States fines and special assessments totaling $400 and was placed on a 4 year term of supervised release to follow his incarceration. Reynolds was returned to the custody of the United States Marshal to await designation by the Federal Bureau of Prisons to one of its facilities.
Fulkerson also pled guilty to the same charges and was sentenced on April 11th to a term of 5 years’ imprisonment.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Fultondale Woman Indicted for Stealing $47,000 from ATMsRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a former ATM service technician for stealing $47,000 from ATMs around the Birmingham metropolitan area, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Acting Special Agent in Charge Jeffrey L. Anderson.
The indictment filed in U.S. District Court charges KELLY FUCHS, 26, with eight counts of bank larceny for stealing from various automated teller machines between July 2012 and February 2013. Fuchs was employed with Loomis armored-car service as an ATM service technician during that time.
“When people are hired into positions of trust and abuse that position to steal from our financial institutions, it undermines our country’s financial system,” Vance said. “Criminals who do this can expect to be punished with the full force of the law.”
According to the indictment, Fuchs stole eight times from ATMs at seven locations over about seven months. The ATM locations and the amount stolen were: Children’s of Alabama, $6,000; Children’s of Alabama, $5,000; Montclair Road, Birmingham, $10,000; Medical Center East, $4,000; Culver Road, Mountain Brook, $10,000; Odum Road, Gardendale, $6,000; Martin Street, Pell City, $2,000; and Ashville Road, Leeds, $4,000.
The maximum sentence for bank larceny is 10 years in prison and a $250,000 fine.
The U.S. Secret Service and the Birmingham Police Department investigated this case, which Assistant U.S. Attorney Davis A. Barlow is prosecuting.
Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
Franklin County Woman Sentenced to 97 Months in Prison on Federal Methamphetamine ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Amy Jo Melvin , 35, of West Frankfort, IL, was sentenced in Federal Court in East St. Louis, Illinois, to 97 months in prison for her participation in methamphetamine related activities in Southern Illinois. Melvin was convicted of the charges in January of this year. The offenses occurred from July 2009, until a grand jury charged Melvin in March 2012.
This particular federal investigation into methamphetamine activities in Franklin, Williamson, and Jackson Counties has thus far resulted in the indictment of 53 individuals. Thirty one of those indicted have been convicted and 22 still await trial. Other ongoing investigations are producing similar results.
The ongoing investigation is being conducted by the Illinois State Police, Southern Illinois Drug Task Force, along with the Drug Enforcement Administration, the United States Marshals Service, Franklin County Sheriff's Office, Williamson County Sheriff's Office, Jackson County Sheriff's Office, Benton Police Department, Royalton Police Department, West City Police Department, Williamson County State’s Attorney's Office, Franklin County State’s Attorney's Office, and the Jackson County State’s Attorney's Office.
The cases are being prosecuted by Assistant United States Attorney Tom Leggans.
Fort Thompson Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Aaron Grass Rope, age 20, was indicted on April 12, 2013. Grass Rope appeared before U.S. Magistrate Judge Mark A. Moreno on April 24, 2013 and pled not guilty to the Indictment. The maximum penalty upon conviction is any term of years up to 15 years of imprisonment, a $250,000 fine, or both; any term of years, not less than 5, or up to life of supervised release and a mandatory minimum term of 5 years up to life of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charge is merely an accusation, and Grass Rope is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Grass Rope was remanded to the custody of the U.S. Marshal Service. A trial date has not been set.
Fort Myers Man Charged with Distributing Child PornographyRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces the filing of a criminal complaint charging Charles Allen Nave III (38, Fort Myers) with distribution of child pornography. If convicted, he faces a maximum penalty of 20 years in federal prison.
According to the criminal complaint, on January 31, 2013, Charles Allen Nave, III sent child pornography over the Internet to an undercover agent located in Washington, D.C. Subsequent to the execution of a search warrant, on April 23, 2013, Nave was found to be in possession of more than 100 images of child pornography.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Yolande G. Viacava.
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.
Former Wells Fargo Banker Charged with 80 Felony Counts for Fleecing $750,000 from CustomersRead the Press Release
United States Attorney Laura E. Duffy announced today that former Chula Vista Wells Fargo banker Ricardo Adolfo Benavente, III was charged with defrauding Wells Fargo and several of its customers by stealing and laundering approximately $750,000 from Wells Fargo customer accounts. According to an indictment unsealed in federal court today, Benavente used his access privileges at Wells Fargo to move hundreds of thousands of dollars from the accounts of Wells Fargo customers into accounts controlled by Benavente himself. The indictment further alleges that in many instances Benavente laundered the stolen funds in order to disguise the fact that he had stolen them.
According to the indictment, from April-October 2009, Benavente, a banker at a Wells Fargo branch office in Chula Vista, stole the funds from accounts belonging to four Wells Fargo customers. He then funneled the stolen funds through various Wells Fargo accounts that he created and controlled, and which he had opened in the name of fictitious customers expressly for the purpose of conducting his scheme to defraud. In one case, Benavente also funneled stolen funds through a PayPal account that he set up in the name of one of his victims, in order to disguise the fact that the money had been stolen. Benavente then used this PayPal account to direct the funds to his own bank and for his own benefit. The indictment alleges that in furtherance of his fraud scheme, Benavente stole and used the names and account numbers of his various victims in order to create the appearance that the transactions were being conducted by the customers themselves. He also created a trail of fraudulent bank instruments, such as withdrawal slips and cashier’s checks, which he used to steal money from his victims’ accounts and direct those funds to accounts that he controlled.
The indictment charges Benavente with counts of bank fraud, embezzlement, aggravated identity theft, and money laundering in connection with the scheme. In addition, he is charged with one count of filing a false tax return for his failure to disclose to the Internal Revenue Service that he had acquired hundreds of thousands of dollars of income from his scheme to defraud Wells Fargo and its customers.
United States Attorney Duffy thanked the agents from the United States Secret Service and Internal Revenue Service-Criminal Investigations for their work in uncovering the alleged crimes.
Benavente was arraigned on the indictment today and pleaded not guilty. A motion hearing is scheduled in the case for June 3, 2013 at 2:00 p.m., before United States District Court Judge Larry Alan Burns.
DEFENDANT Case Number: 13CR1513-LAB Ricardo Adolfo Benavente, III Age: 27 Chula Vista, CA SUMMARY OF CHARGESCounts 1-28: Bank fraud in violation of Title 18, United States Code, Section 1344
Maximum penalties: 30 years’ imprisonment, $1,000,000 fineCounts 29-56: Embezzlement in violation of Title 18, United States Code, Section 656
Maximum penalties: 30 years’ imprisonment, $1,000,000 fineCounts 57-63: Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A
Maximum penalties: Mandatory 2-year consecutive sentenceCounts 64-79: Money Laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i)
Maximum penalties: 20 years’ imprisonment, $500,000 fineCount 80: Filing a False Tax Return, in violation of Title 26, United States Code, Section 7206(1)
INVESTIGATING AGENCIES
Maximum penalties: 3 years’ imprisonment, $250,000 fine, costs of prosecutionUnited States Secret Service
Internal Revenue Service – Criminal InvestigationsAn indictment itself is not evidence that the defendant committed the crimes charged.
The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.Former Town Creek, Ala., Police Officer Pleads Guilty to Assaulting an ArresteeRead the Press Release
Brandon Shane Mundy, a former police officer of numerous law enforcement agencies, the most recent being the Town Creek, Ala., Police Department, pleaded guilty today to violating the civil rights of a man during the course of an arrest. According to information presented to the court, on Nov. 22, 2009, Mundy was involved in a vehicle pursuit and fired shots at a man’s vehicle before later ramming it and causing it to wreck in a ditch. While another police officer reached the man and placed him under arrest without resistance, Mundy ran up and unjustifiably and repeatedly beat the man in the head with an object that was either a baton or a flashlight causing the man to suffer physical injury. After Mundy lost control of the object, Mundy continued to strike the man in the head with his fist.
“The use of excessive force cannot be tolerated,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The vast majority of police officers do an outstanding job in protecting both the community and the rights of the accused, even in stressful situations. But when police officers use excessive force to punish arrestees, they will be held accountable.”
“Police officers who abuse their power in order to assault citizens undermine the system of constitutional government they are sworn to uphold,” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama. “As the plea in this case shows, my office will work closely with the Justice Department’s Civil Rights Division to aggressively enforce the laws that prohibit police misconduct.”
Mundy faces a statutory maximum sentence of 10 years in prison. A sentencing date has not yet been set.
This case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Elizabeth Holt of the Northern District of Alabama and Civil Rights Division Trial Attorney Daniel H. Weiss.
Former Silverado High School Head Softball Coach Convicted of Federal Child Exploitation and Pornography ChargesRead the Press Release
LAS VEGAS, Nev. – Following a three-day jury trial, a man who was employed as the head softball coach at Silverado High School in Henderson, Nev., has been convicted of multiple counts of child sex exploitation for causing the production of child pornography and exchanging sexually explicit text messages and photographs with a minor girl, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Albert Silva Hernandez, Jr., 44, of Las Vegas, was convicted on Wednesday, April 24, 2013, of eight counts of sexual exploitation of a minor. He faces 15 years minimum and 30 years maximum in prison, and a fine of up to $250,000 on each count. Hernandez is in custody and is scheduled to be sentenced on Aug. 5, 2013, at 10:00 a.m. before U.S. District Judge James C. Mahan.According to the indictment and the evidence introduced at trial, Hernandez, a softball coach for Silverado High School and for a competitive club team, had sexual relations with one of his 17-year-old players and photographed the sexual acts with his cellular telephone camera, and sent the images to the girl. Hernandez also had the girl photograph herself naked and send those images to him by her cellular telephone. The pornographic images were produced and the text messages were exchanged between Hernandez and the victim, on December 25, 2011, January 29, February 1, and February 2, 2012.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Clark County School District Police. It is being prosecuted by Assistant United States Attorneys Susan Cushman and Roger Yang.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources.
Former Owner of Wilkesboro Clinical Laboratory Pleads Guilty to Criminal Health Care Fraud and Tax Charges and Agrees to Pay $300,000 to Settle Civil Fraud AllegationsRead the Press Release
CHARLOTTE, N.C. – The former owner of Wilkesboro Clinical Laboratory (“WCL”) pleaded guilty today in U.S. District Court for his involvement in a health care fraud scheme in which he and his company billed Medicare for services which were not rendered, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Louis Francis Curte, 49, also admitted he filed false tax returns from 2007 to 2010.
In a separate civil settlement with the U.S. Attorney’s Office, Curte also agreed to pay $300,000 to resolve civil fraud allegations that he and his company violated the Physician Self-Referral Act or “Stark Law.”
U.S. Attorney Tompkins is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region; Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
Curte appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to four counts of health care fraud and one count of filing a false tax return. According to court documents and today’s plea hearing, Curte was the owner and operator of Wilkesboro Clinical Laboratory (“WCL”), which was enrolled with the Medicare program and provided microbiology and other laboratory services. Court records show that from at least 2007 to in or about 2009, Curte defrauded Medicare by submitting false and fraudulent claims for microbiology services which were never rendered.
Court documents indicate that Curte and WCL used another company (“Company #1”) for certain types of microbiology testing that could not be performed by WCL in-house. Court records show that WCL generally submitted specimens to Company #1 to test for the presence of infection-causing bacteria. If an infection was present in a specimen, Company #1 then typically performed one or two additional tests to identify the type of pathogen present (“identification test”) and the type of antibiotic to which the pathogen was susceptible (“susceptibility test”).
Pursuant to the scheme to defraud, Curte routinely billed Medicare for identification and susceptibility tests, when, in fact, no such tests were performed and even when the initial testing indicated that no pathogen was actually present in the specimen. According to the plea agreement, the intended loss to Medicare by the defendant was between $10,000 and $30,000.
At today’s hearing, Curte also pleaded guilty to filing false tax returns for the years 2007 through 2010. According to filed documents and court proceedings, Curte filed false tax returns which substantially understated his gross income, and therefore, the tax owed to the United States. Court records indicate that Curte maintained false books in an attempt to mask a prohibited business relationship with a physician, identified in court documents as Dr. T.M. According to the plea agreement, the amount of tax loss was more than $30,000 but less than $50,000.
At sentencing, Curte faces a maximum term of 10 years in prison and a $250,000 fine for the health care fraud charges and a maximum term of three years in prison and a $250,000 fine for the tax fraud charge. In his plea agreement, Curte agreed to pay full restitution to Medicare and to IRS for any losses. The final restitution amount will be determined by the Court at Curte’s sentencing hearing, which has not been scheduled yet. Curte has been released on bond pending sentencing.
Curte’s prohibited relationship with Dr. T. M. forms the basis for Curte’s civil settlement agreement. According to the civil settlement agreement, from January l, 2006 through April 30, 2009 Curte and WCL violated the Stark Law by knowingly having a prohibited financial relationship with Dr. T.M.
Dr. T.M. owned and operated a billing company, now defunct, which submitted all of WCL’s reimbursement claims to Medicare. Dr. T.M.’s billing company was paid on a “per claim” basis for the reimbursement claims submitted to Medicare on behalf of WCL. As an owner of the billing company, Dr. T.M. benefitted directly from WCL’s payments to his billing company. Investigators also found that Dr. T.M. referred blood and tissue specimens to WCL for pathology testing.
The Stark Law forbids a medical provider from billing Medicare and Medicaid for certain services referred by physicians who have a financial relationship with the medical provider. A prohibited financial relationship includes an agreement between the medical provider and a physician to compensate the physician based on the volume of the physician’s referrals or the revenue realized through those referrals.
Under the terms of the settlement agreement, Curte is required to reimburse the government for the amount he wrongfully received from Medicare in violation of the Stark Law and to pay penalties back to the program, for a total of $300,000.
The investigation into Curte was handled by HHS-OIG and IRS, with the assistance of the FBI. The criminal prosecution was handled by Assistant U.S. Attorney Kelli Ferry. Assistant U.S. Attorney Don Caldwell handled the civil settlement.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Former Nopd Officer, Maurice R. Palmer, Sentenced for Tax EvasionRead the Press Release
MAURICE R. PALMER, age 51, a resident of New Orleans, Louisiana, was sentenced today by U.S. District Judge Jane Triche Milazzo to 5 years probation for one count of tax evasion, announced U.S. Attorney Dana J. Boente. PALMER was also ordered to pay $31,662 in restitution to the Internal Revenue Service and a $100 special assessment.
According to court documents, from 2006 through 2008, PALMER, a former New Orleans Police Department officer, did not file federal taxes. During this period of time, PALMER did file a Form W-4 with his employer, the NOPD, wherein he falsely claimed he was “exempt” from any taxes. Based on this form, according to court documents, no taxes were withheld from PALMER’s paychecks in the year 2008. According to the factual basis, as a result of the filing of his W-4 form, PALMER received taxable income of $68,170, to which there is a tax due and owing to the United States of $13,388 for the tax year 2008. In addition, according to the factual basis, PALMER also owes a total of $18,274 in taxes for not filing in the tax years 2006 and 2007. According to the plea agreement, PALMER is required to pay the entirety of the tax due and owing for these years to the Internal Revenue Service.
The case was investigated by agents from the Internal Revenue Service Criminal Investigation Division. The case was prosecuted by Assistant U. S. Attorney Matt Chester.
Former Jefferson Parish Cao, Timothy Whitmer, Sentenced in Corruption CaseRead the Press Release
TIMOTHY WHITMER, age 53, a resident of Harvey, Louisiana and former Chief Administrative Officer of Jefferson Parish, was sentenced today to three years probation by U.S. District Court Judge Mary Ann Vial Lemmon for Misprision of a Felony concerning his involvement with Aaron Broussard and Tom Wilkinson in a Conspiracy to Commit Bribery, Wire Fraud, and Theft Concerning Programs Receiving Federal Funds, announced U.S. Attorney Dana J. Boente and FBI Special Agent in Charge Michael Anderson. WHITMER was also ordered to pay restitution to Jefferson Parish in the amount of $160, 430.15 joint and severally liable with Aaron Broussard, Tom Wilkinson and Karen Parker. In addition, Judge Lemmon ordered WHITMER to pay a $5,000 fine.
Broussard was previously sentenced for his involvement in a conspiracy with WHITMER, Tom Wilkinson and Karen Parker to steal taxpayer funds when they and others created a sinecure Paralegal Supervisor position for Parker. Broussard knowingly and illegally diverted taxpayer funds to his ex-wife in the form of her salary for over six years, when Parker did not even possess the most basic credentials or requisite experience to hold the position of Paralegal Supervisor and, repeatedly sought to conceal the illegal nature of her employment with Jefferson Parish by having Parker transferred to the ID Management Office at the East Bank Regional Library in an effort to hide the fact that she was not working for the Parish Attorney’s Office as a Paralegal Supervisor and was not performing any work as a paralegal.
“Mr. Whitmer betrayed the citizens of Jefferson Parish and violated his public trust,” said United States Attorney Boente. “The prosecution should further serve notice that the United States Attorney’s Office will continue its robust investigation and prosecution of public corruption.”
“The FBI believes this is a fair and just result given Mr. Whitmer’s role and participation in these corrupt schemes,” added Michael Anderson, Special Agent in Charge of the Federal Bureau of Investigation New Orleans Field Office.
The case was investigated by agents from the Federal Bureau of Investigation and was assisted by the Metropolitan Crime Commission. The case was prosecuted by Strike Force Chief and Assistant U.S. Attorney Brian Klebba, and Assistant U.S. Attorneys Matt Chester, Daniel Friel, and Mimi Nguyen.
Former Chief Merchandising Officer of Aeropostale, Inc. Found Guilty of Receiving More Than $25 Million in KickbacksRead the Press Release
Christopher Finazzo, the former Executive Vice President and Chief Merchandising Officer of Aéropostale, Inc., a national mall-based specialty clothing retailer headquartered in Manhattan, was convicted today by a federal jury in Brooklyn on all sixteen counts for defrauding Aéropostale and receiving more than $25 million in kickbacks from Douglas Dey, the owner of South Bay Apparel, Inc. (“South Bay”), previously a major clothing supplier of Aéropostale. The jury’s verdict followed a three-week long trial in United States District Court in Brooklyn, New York, before the Honorable Roslynn R. Mauskopf. Finazzo was convicted of one count of conspiracy, fourteen counts of mail fraud, and one count of wire fraud. On Monday, April 29, 2013, the government will present its case to forfeit more than $21 million, two investment accounts, and four pieces of real property from Finazzo. Co-defendant Douglas Dey pleaded guilty on September 27, 2012, to conspiracy to bribe Finazzo.
Finazzo’s verdict and Dey’s guilty plea were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
The evidence at trial established that Finazzo and Dey entered into a fraudulent scheme in which Finazzo caused Aéropostale to buy more than $350 million in t-shirt and fleece merchandise from South Bay in exchange for payments from Dey of approximately 50% of South Bay’s profits. Finazzo was Aéropostale’s head merchant from July 1996 until his termination by Aéropostale on November 7, 2006. While receiving approximately $20 million in salary, bonus, and stock options for the approximately 10 years that Finazzo worked at Aeropostale, Finazzo received more than $25 million in kickbacks from approximately June 2002 through November 2006 from Dey through C&D Retail Consultants, Inc., a company controlled by Finazzo, and through other companies Finazzo jointly owned with Dey. In 2005 alone, at the peak of the business between Aéropostale and South Bay, Finazzo received more than $13 million in kickbacks from South Bay. Throughout the course of the scheme, Finazzo and Dey concealed the kickbacks from Aéropostale and its employees, causing Aéropostale to lose profits and negatively impacting employee bonus amounts. Additionally, because Finazzo falsely stated in numerous company questionnaires that he was not engaged in any related-party transactions, Aéropostale falsely reported in its SEC filings that the company did not engage in such transactions. Aéropostale is a publicly traded company on the New York Stock Exchange.
At trial, the government proved that Finazzo defrauded Aéropostale by preventing Aéropostale from seeking lower prices for merchandise it purchased from South Bay, preventing Aéropostale from selecting other vendors who had better price and quality, and by causing Aéropostale to pay higher prices on merchandise it purchased from South Bay. For example, Finazzo’s unyielding commitment to placing t-shirt orders with South Bay caused him to repeatedly rebuff Aéropostale’s CEO’s direction that 25% of the t-shirt orders be placed with overseas vendors at a much lower cost. Finazzo did this to maintain his illegal kickbacks from South Bay.
“We have all heard the saying ‘money does not buy happiness,’ and today’s verdict is case in point for that maxim. Christopher Finazzo had a great job that paid him millions of dollars, but this honest living was apparently not enough to satisfy his greed. As the evidence at trial showed, he schemed to steal from Aéropostale and to receive more than $25 million in illegal kickbacks from a supplier,” stated United States Attorney Lynch. “As today’s verdict shows, we will vigorously pursue corporate fraudsters who double-deal to enrich themselves and bring them to justice.” Ms. Lynch extended her grateful appreciation to the FBI and the Securities and Exchange Commission for their assistance.
When sentenced by Judge Mauskopf, Christopher Finazzo faces a sentence of up to 20 years’ imprisonment for each of the fourteen counts of mail fraud and the one count of wire fraud, and up to five years’ imprisonment for the conspiracy count. Co-defendant Douglas Dey faces a maximum sentence of five years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes, John P. Nowak, and Claire Kedeshian.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The Defendants: CHRISTOPHER FINAZZO
Age: 57DOUGLAS DEY
Age: 56Former Centreville Assistant Police Chief GuiltyRead the Press Release
The former assistant chief of police for Centreville, Illinois, pled guilty in US District Court on April 25, 2013, to making false statements to federal law enforcement officers, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Corey Allen, 31, admitted that he lied to federal law enforcement officers while they investigated whether he sold a gun to a convicted felon.
Allen was indicted by the federal grand jury on December 11, 2012, following an inquiry into whether he sold a gun to a registered sex offender. On November 30, 2012, Allen was interviewed by federal agents who asked him whether he supplied Individual #1 with a firearm. Allen stated that he did not supply the gun to Individual #1, claiming that he had no idea where Individual #1 had gotten the gun. Allen further stated that he had never seen the gun before federal agents recovered it on October 11, 2012.
Allen admitted in court documents that he had previously possessed the firearm and in fact had sold the gun to Individual #1 for $100 on May 3, 2012, knowing that Individual #1 was a felon and a registered sex offender. Allen stated that he came into possession of the firearm while working as a police officer, but rather than documenting the recovery of the weapon he simply kept it, and later sold it.
The crime of making a false statement to a federal law enforcement officer is punishable by up to 5 years in prison, a $250,000 fine, and not more than 3 years supervised release upon release from prison. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Court documents explained that, under the Sentencing Guidelines, Allen will be sentenced for the more serious offense of selling a firearm to a felon in addition to his conduct of making false statements. Sentencing has been scheduled for August 30, 2013.
US Attorney Stephen Wigginton said, “Instead of upholding the oath he took to protect his community, this officer personally armed a sex offender with a stolen gun, then lied to federal agents about what he had done. He threw away his career, tarnished the badge, and endangered his community for a few dollars.”
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Florida Man Sentenced to 55 Months Imprisonment for Role in Health Care-Fraud and Money Remitting RingRead the Press Release
Wifredo A. Ferrer, United States Attorney of the Southern District of Florida, Addy Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced that Oscar Sanchez, 47, of Naples, was sentenced to 55 months imprisonment, 20 months home confinement, and three years of supervised release for his role in a money laundering conspiracy, in violation of Title 18, United States Code, Section 1956(h). In addition, U.S. District Judge Paul Huck entered a forfeiture order that consisted of a personal money judgment against Sanchez in the amount of $10,000,000. In partial satisfaction of that judgment, Sanchez will be forfeiting to the United States four properties worth about $635,000, and $63,196, in cash. Sanchez also must perform 1,600 hours of community service during his first year after his term of imprisonment.
On August 30, 2012, Sanchez pled guilty to conspiring to launder the proceeds of health care fraud. According to court documents, Sanchez acted as a middleman between individuals engaging in health care fraud, and Caribbean Transfers, a company that remitted money from the United States to Cuba. Sanchez admitted to providing approximately $10 million in cash to individuals who defrauded the Medicare program.
Mr. Ferrer commended the investigative efforts of FDLE, FBI, and HHS-OIG in coordination with the Medicare Fraud Strike Force, for their work on this case. The case was prosecuted by Assistant U.S. Attorneys H. Ron Davidson and Eloisa Fernandez.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Inmate Pleads Guilty to Obtaining $23,000 in Social Security Benefits FraudulentlyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 32-year-old woman incarcerated at the Federal Correctional Institute in Waseca, Minnesota, pleaded guilty to stealing more than $23,000 in Social Security benefits. Nefertiti Randall specifically pleaded guilty to one count of theft of government money or property. Randall, who was indicted on January 22, 2013, entered her plea before United States District Court Judge John R. Tunheim.
In her plea agreement, Randall admitted that from June 12, 2009, through April 2012, she stole $23,012 from the Social Security Administration (“SSA”). The funds, which were automatically deposited into a bank account accessible to both Randall and her mother, represented benefits intended solely for Randall’s mother. Her mother died in June of 2009, and in August of 2009, Randall began serving an unrelated, multi-year, identity-theft sentence at the Federal Correctional facility in Waseca. According to the indictment, Randall nonetheless continued to access her mother’s social security benefits until spring of 2012.
For her crime, Randall faces a potential maximum penalty of ten years in prison. Judge Tunheim will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the SSA-Office of Inspector General, with cooperation from the U.S. Bureau of Prisons. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.Extradited Mexican with Ties to Zetas Sentenced in Large-Scale Cocaine Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Benito Aguilar-Ozuna, aka “Pichollo,” a Mexican citizen who was extradited to the U.S. late last year, has been sentenced to prison for nearly 20 years for conspiracy to traffic cocaine, United States Attorney Kenneth Magidson announced today. Aguilar-Ozuna pleaded guilty Jan. 25, 2013.
Just moments ago, Senior U.S. District Judge Janis Graham Jack handed Aguilar-Ozuna a sentence of 235 months. As a Mexican citizen, he is expected to face deportation proceedings following his release from prison.
Benito Aguilar-Ozuna was charged with conspiracy to possess with intent to distribute cocaine in an indictment returned Nov. 25, 2008, which was superseded in April 2009 and again in January 2010. Aguilar-Ozuna was charged along with three others, including Carlos Alberto Oliva-Castillo aka “La Rana,” a Mexican citizen arrested in October 2011 in Mexico. According to records, Oliva-Castillo was known as the number three figure in the Zetas drug cartel at the time of his arrest and allegedly controlled Zeta operations in the key northern states of Tamaulipas, Coahuila and Nuevo Leon.
The investigation in this case began in 2006 when law enforcement authorities discovered a narcotics importer/distributor based in Robstown for whom Oliva-Castillo was the source of supply. Aguilar-Ozuna was Oliva-Castillo’s most trusted associate in this large-scale cocaine trafficking organization based out of Diaz Ordaz, Mexico. The organization was responsible for the importation of cocaine from Mexico and the distribution of cocaine to the organization’s cells located in Texas, Florida, California, Oregon, Georgia and Illinois. Agents also discovered that Oliva-Castillo and Aguilar-Ozuna oversaw the transportation of narcotics proceeds in the hundreds of millions from the United States to Mexico. During the course of the investigation, law enforcement seized approximately 174 kilograms of cocaine from members of this organization. The case against Oliva-Castillo remains pending. He is presumed innocent unless convicted through due process of law.
The investigation leading to the criminal charges was conducted through the Organized Crime Drug Enforcement Task Force in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, Corpus Christi Police Department, United States Border Patrol and the United States Marshals Service. The Department of Justice’s Office of International Affairs provided substantial assistance in Aguilar-Ozuna’s extradition.
This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Elroy Jay Weaselbear, Sr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 25, 2013, before U.S. District Judge Richard F. Cebull, ELROY JAY WEASELBEAR, SR., a 39-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, appeared for sentencing. WEASELBEAR was sentenced to a term of:
Prison: 135 months
Special Assessment: $100
Supervised Release: 10 years
WEASELBEAR was sentenced in connection with his guilty plea to incest.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case for the government.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WEASELBEAR will likely serve all of the time imposed by the court. In the federal system, WEASELBEAR does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Eighth Member of Conspiracy That Traded Child Pornography SentencedRead the Press Release
WASHINGTON – The last conspirator charged in the Western District of Virginia was sentenced today for his role in a conspiracy that disseminated thousands of images and videos of the sexual abuse of children, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and the U.S. Attorney for the Western District of Virginia Timothy J. Heaphy.
Jesse Leon Coleman, 48, of Lynchburg, Va., was sentenced today following his previous plea to one count of receipt of child pornography by Senior U.S. District Judge Norman K. Moon in the Western District of Virginia to serve 135 months. Following his release, Coleman must register as a sex offender.
In January 2012, a grand jury charged nine individuals, including Coleman, with conspiracy to receive, distribute, possess and access with intent to view child pornography.
Co-defendants Manuel Antonio Mares, 57, of Miami; Jeremy Hart Yost, 26, of West Bend, Ore.; Richard Phillip Allen, 66, of Redondo Beach, Calif.; James Calvin Boyd, 59, of Pell City, Ala.; and Peter Franklin Ortiz, 57, of Greenville, S.C., were previously sentenced in the Western District of Virginia for their roles in the conspiracy. Co-defendants Thomas Syfor, 71, and Matthew Ackerman, 49, both of Bethlehem, Pa., were previously transferred to the Eastern District of Pennsylvania for disposition in that district. The ninth defendant, known as “Andy Danilov” is believed to reside in Russia and remains at large.
According to court documents, beginning in August 2010 and continuing until at least November 2011, Danilov distributed emails to a group of individuals, including the defendant, that contained links to compressed files and file attachments depicting minors engaged in sexually explicit conduct. Danilov often used the screen name “Cinemaboy” in the emails. According to information presented at the plea hearing, forensic analysis of each of the defendants’ computers confirmed their involvement in the conspiracy, and some of the defendants were found to possess very large numbers of images and movies depicting the sexual abuse of children.
Evidence presented at the sentencing hearing indicated that, while in the military, Coleman was convicted for possession of child pornography, and sexually abused three minor boys overseas.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit ww.projectsafechildhood.gov.
The investigation of the case was conducted by the FBI Innocent Images Operations Unit. The case is being prosecuted by Assistant U.S. Attorney Nancy Healey of the Western District of Virginia and Trial Attorney Darcy Katzin of the Criminal Division’s Child Exploitation and Obscenity Section.Eagle Butte Man Sentenced for Disorderly ConductRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of two counts of Disorderly Conduct was sentenced on April 18, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Frankie Delgado, age 53, was sentenced to a $1,000 fine and a $10 special assessment.
Delgado was indicted for 3 counts of Abusive Sexual Contact by a federal grand jury in December 2011. He pled guilty to a Superseding Information charging him with two counts of Disorderly Conduct on April 18, 2013.
The conviction stems from two incidents that occurred in May 2011 in Eagle Butte.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Eagle Butte Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Bevan Ray Bordeaux, age 26, was indicted on April 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 18, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment on each count. Restitution may also be ordered.
The charges relate to an allegation that Bordeaux assaulted an Eagle Butte man on December 28, 2012 with shod feet and that the assault resulted in serious injury to the victim.
The charges are merely accusations, and Bordeaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Bordeaux was released on bond pending trial. A trial date has not been set.
Duluth Felon Indicted for Possessing Two FirearmsRead the Press Release
MINNEAPOLIS—Recently in federal court, a 36-year-old Duluth felon was indicted for possessing a nine-millimeter pistol and a .357-caliber revolver. On April 22, 2013, Ronald Paris Riles was specifically charged with one count of being a felon in possession of a firearm.
The indictment alleges that on February 6, 2013, Riles possessed the two firearms. Because he is a felon, Riles is prohibited under federal law from possessing a firearm at any time. He was previously convicted in Illinois for first-degree murder (1993) as well as manufacturing and delivering cannabis (2007).
If convicted of the federal charge now levied against him, Riles faces a potential maximum penalty of ten years in prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Duluth Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.District Man Sentenced to 82-Year Prison Term for First-Degree Premeditated Murder and Other Charges in Two Slayings and Related Violence-Opened Fire in Two Attacks in Northwest Washington in 2011-Read the Press Release
WASHINGTON – Irvin Johnson, 27, of Washington, D.C., was sentenced today to 82 years of incarceration for killing two men and wounding another, and shooting at a fourth man, in a pair of shootings in 2011, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson was found guilty in February 2013 of a total of 15 charges following a two-week trial in the Superior Court of the District of Columbia. They included two counts of first-degree premeditated murder, two counts of assault with intent to kill while armed, and numerous related firearms offenses. The Honorable Lynn Leibovitz sentenced him today.
According to the government’s evidence, the violence stemmed from a longstanding dispute between Johnson and the victims, stemming from a robbery that Johnson had committed against one of their friends in 2008. During the evening hours of June 21, 2011, Johnson and an associate entered the 1500 block of Spring Place NW and shot at a man. No one was injured during the shooting, but a number of cars and buildings in the block were damaged.
Nearly three weeks later, in the early morning hours of July 9, 2011, in the 1400 block of Parkwood Place NW, Johnson ambushed and executed by shooting in the head Jimmie Simmons, 32, and Dominique Barbour, 31. The defendant also shot Anthony Thomas, then 21, in the head and chest. Miraculously, Mr. Thomas survived. Sadly, after a year of struggling from the injuries inflicted by the defendant, Mr. Thomas took his own life.
Immediately after the shooting, Johnson went on the run. He hid at friends’ homes in Washington, D.C., and eventually fled to a relative’s house in Lusby, Md., where he was apprehended by the Capitol Area Regional Fugitive Task Force on Sept. 9, 2011.
During the sentencing hearing, family members of the victims emotionally expressed their deep sorrow for the loss of their loved ones. After reviewing submissions from the government, attorneys for the defendant, and many victim impact statements from the family members and friends of the victims, Judge Leibovitz sentenced the defendant to the 82-year prison term followed by five years of supervised release. Immediately before the judge imposed sentence, Johnson yelled out, “Just throw the book at me and be done with it. I got things to do.”
In announcing the sentence, U.S. Attorney Machen praised the outstanding investigative work of the Metropolitan Police Department, the U.S. Marshals Service, including the Superior Court Warrant Squad; the Capitol Area Regional Fugitive Task Force, and the Maryland State Police. Mr. Machen thanked Dr. Carolyn Revercomb, formerly of the Office of the Chief Medical Examiner of the District of Columbia, as well as the Court Supervision and Offender Services Agency. He expressed appreciation for the work of Paralegal Specialists Alesha Matthews, Meridith McGarrity, Sandra Lane, Sharon Newman, and Fern Rhedrick; Intelligence Analysts Lawrence Grasso and Sharon Johnson; Criminal Investigators Tommy Miller and Durand Odom; Witness Security Specialists David Foster, La June Thames, and Debra Cannon; Litigation Services Specialists Joshua Ellen, William Henderson and Paul Howell; and Victim Advocates Marcey Rinker and Christina Principe for their support. Mr. Machen acknowledged the work of Assistant United States Attorney Erin O. Lyons, who investigated the case and Assistant United States Attorneys Erin O. Lyons and Glenn L. Kirschner, who tried the case.
13-145District Man Convicted of Assault with Intent to Kill While Armed and Other Charges in Northeast Washington Shooting-Shots Were Fired at Two Cars from Vehicle That Defendant Was Driving-Read the Press Release
WASHINGTON - Brian Woodings, 26, of Washington, D.C., was found guilty by a jury today of six counts of assault with intent to kill while armed and numerous other charges for his role in a shooting that targeted victims who were riding in two cars in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The jury also convicted Woodings of one count of aggravated assault while armed, three counts of assault with significant bodily injury, and related weapons offenses. The Honorable Stuart G. Nash scheduled sentencing for July 12, 2013.
According to the government’s evidence, on March 9, 2012, the six victims decided to go to the Scene nightclub in Northeast Washington to celebrate some friends’ birthdays. Woodings and some of his friends also decided to go to the nightclub that night. While there, Woodings got into a fistfight with one of the victims, and everyone involved in the fight was ejected.
Woodings, unsatisfied with the resolution of the fight, decided to recruit a friend with a gun and follow the victims out of the club. He and his accomplice got into a Honda Accord owned by a female friend of his, and followed the victims’ two cars down Bladensburg Road, and then onto Benning Road near the Langston Golf Course.
As the three cars crossed the bridge on Benning Road over Interstate 295, at about 3:55 a.m. on March 10, 2012, Woodings drove up next to each car, allowing his accomplice to fire multiple rounds into each vehicle. The victims were in the cars that were fired upon.
The gunfire struck one victim—the person involved in the fight with Woodings at the club—in the face. Another victim was shot in the neck, and a third was shot in the back.
After the shooting, Woodings fled the scene. The stunned victims collected themselves and drove home before calling the police and ambulances. Using license plate reader technology, the Metropolitan Police Department (MPD) identified the car the defendant was driving at the time of the assault, and they were ultimately able to use that information to identify the defendant. The shooter has yet to be identified and the case remains under investigation.
In announcing the verdicts, U.S. Attorney Machen commended the work of the MPD, the FBI, and the District of Columbia Department of Forensic Sciences, which were involved in the investigation and prosecution of this case. U.S. Attorney Machen also expressed appreciation to Paralegal Specialists Theresa Nelson, Kwasi Fields, and Kendra Johnson, Witness/Victim Advocate James Brennan, Litigation Technology Specialist Paul Howell, and Assistant U.S. Attorneys Veronica M. Sanchez and Erik M. Kenerson, who investigated and tried the case.
13-144Defendant Convicted in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the conviction of Nael Dawud Sammour, 52, of Pompano Beach, after a three day jury trial in front of U.S. District Court Judge William P. Dimitrouleas.
More specifically, Sammour was convicted of two counts of aggravated identity theft in violation of 18 U.S.C. § 1028A, for his role in possessing and transferring the means of identification of identity theft victims in conjunction with the transfer and attempted negotiation of fraudulently obtained U.S. Treasury tax refund checks. Prior to trial, Sammour pled guilty to eight counts of theft of public money in violation of 18 U.S.C. § 641. Sentencing has been scheduled for July 1, 2013 at 1:15 P.M. in front of the Honorable William P. Dimitrouleas in Ft. Lauderdale. At sentencing, Sammour faces a maximum statutory sentence of up to ten years in prison on each of the theft of public money counts, as well as mandatory two year consecutive sentences on the Aggravated Identity Theft counts.
According to testimony and evidence presented at trial, as well as from court documents, unknown individuals used stolen identification information, including the names, dates of birth, and social security numbers of unsuspecting taxpayers to fraudulently apply for and receive U.S. tax refunds to which they were not entitled. Thereafter, Sammour obtained many of these fraudulently obtained U.S. Treasury tax refund checks and later transferred these checks, along with counterfeit driver’s licenses and Social Security cards, to undercover IRS agents posing as check cashers. In total, agents seized 75 fraudulently obtained U.S. Treasury tax refund checks totaling $750,369.45 from Defendant Sammour. Moreover, when Sammour was arrested, law enforcement located and seized $30,128.24 in U.S. currency.
Mr. Ferrer commended the investigative efforts of the IRS-CID and the FBI for their work on the case. This case is being prosecuted by Assistant U.S. Attorney Marc Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Convicted in $39 Million Mortgage Fraud CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Steve Linick, Inspector General, Federal Housing Finance Agency, Office of Inspector General, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced yesterday’s conviction of defendant Quelyory A. Rigal, a/k/a “Kelly”, of Homestead, FL, after a jury trial before U.S. District Judge William J. Zloch in Fort Lauderdale, FL. Sentencing is scheduled for July 18, 2013 at 10:30 a.m.
Rigal was originally indicted with seven other defendants in Case No. 12-60088-CR-Williams, for fraudulently obtaining mortgages for the purchase of condominium units at Marina Oaks Condominiums in Fort Lauderdale, FL. The indictment charged defendant Rigal with conspiracy to commit wire fraud and mail fraud, as well as substantive counts of wire fraud and mail fraud. Defendant Rigal was found guilty on all counts charged in the indictment. Rigal faces a maximum penalty of 30 years in prison on each count.
The other defendants were: Juan Carlos Sanchez, of New York, N.Y., Sandra P. Campo, of Colombia, Osbelia Lazardi, of Southwest Ranches, FL, Dayanara Montero, of Miramar, FL, Edward R. Mena, of Miami, FL, Celeste Mota, of Fort Myers, FL, and David Arboleda, of Doral, FL. With the exception of Rigal who proceeded to trial, all other defendants plead guilty to conspiracy to commit mail and wire fraud. Defendant Sanchez was sentenced to 180 months in prison and three years of supervised release. Defendant Mena was sentenced to 54 months in prison and three years of supervised release. Defendant Arboleda was sentenced to 30 months in prison and three years of supervised release. Defendant Montero was sentenced to 22 months in prison and three years of supervised release. Defendant Mota was sentenced to five years of supervised release. Defendants Lazardi and Campo are awaiting sentencing. The sentencings are scheduled for May 5 and May 6, 2013, respectively, before Judge Zloch in Fort Lauderdale, FL.
According to the indictment, from January 2007 through November 2008, the defendants conspired to recruit individuals who would be willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyers’ incentive,” which payment was not disclosed to the lenders or reflected on any of the closing documents. The conspirators would then prepare materially false mortgage applications for the buyers on HUD Uniform Loan Application Form 1003. These forms contained false information as to material facts regarding the borrowers’ credit worthiness in order to qualify the borrowers for mortgages to purchase the Marina Oaks Condominiums. The conspirators would allegedly also create false documents to support the mortgage applications. Once the loans closed, the conspirators would divert portions of the mortgage proceeds for their personal use and benefit. The indictment alleges that the conspirators obtained approximately $39 million in fraudulent mortgage loans at Marina Oaks, resulting in $34 million in losses to the various lenders including Fannie Mae, which reported losses over $4.1 million to date, while Freddie Mac faces potential exposure of an additional $8.5 million.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency Office of the Inspector General, as the lead investigative agency in the prosecution of Rigal, and IRS-CI and the Broward Sheriff’s Office for their participation in this investigation. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
C’erra Dawn Clark Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 25, 2013, before U.S. Magistrate Judge Keith Strong, C'ERRA DAWN CLARK, a 23-year-old resident of Poplar, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for July 26, 2013.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On March 18, 2012, CLARK became frustrated and shook her infant child, K.M.B. She then threw the infant on the bed. CLARK admitted to law enforcement that she had shaken the baby. Another individual witnessed this, and recalled seeing CLARK shake the baby enough to "really upset him." Shortly after CLARK shook her, the baby began having seizures.
The child was taken to the local hospital then transported out of state to a Colorado children's hospital, where she was diagnosed with retinal hemorrhages and underwent an operative procedure involving the placement of a bilateral subdural-peritoneal shunt. The child's diagnosis for fully-restored sight is "guarded," as described by medical personnel.
CLARK faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
Criminal Complaint Filed Against Tinian Casino and Two Men in Investigation of Failure to File Currency Transaction ReportsRead the Press Release
ALICIA A. G. LIMTIACO, United States Attorney for the Districts of Guam and the
Northern Mariana Islands, announced that a criminal complaint was filed against two individuals and a corporation on April 19, 2013. A copy of the unsealed complaint is attached. The complaint charges GEORGE QUE, TIM BLYTHE, and the entity known as HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO with conspiracy to cause a financial institution to fail to file currency transaction reports and causing a financial institution to fail to file currency transaction reports. The maximum sentence for each offense is imprisonment for not more than 10 years, a fine of not more than $500,000 for an individual, and a fine of not more than $1,000,000 for a corporation.Federal law requires that a Currency Transaction Report (CTR) be filed with the IRS by financial institutions, including casinos, in regard to any currency transaction over $10,000.
According to the criminal complaint, beginning in or around September 2009 and continuing through the present, the TINIAN DYNASTY HOTEL & CASINO engaged in a pattern of accommodating gamblers in conducting transactions involving more than $10,000 without filing CTRs with the government. Defendants BLYTHE and QUE allegedly did not file any CTRs or cause anyone else to do so, despite their knowledge of the reporting requirement.
The criminal complaint alleges that in May 2012, IRS Criminal Investigation initiated an undercover operation concerning possible illegal activities at the TINIAN DYNASTY HOTEL & CASINO by having two agents pose as gamblers wishing to use large amounts of currency but not wanting any reports filed with the government about their use of cash. Between February 28, 2013, and March 4, 2013, HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO, GEORGE QUE, and TIM BLYTHE caused the TINIAN DYNASTY HOTEL & CASINO to fail to file required CTRs related to nine transactions involving undercover IRS agents. Each of these transactions, individually, exceeded the reporting threshold for CTRs.
The criminal complaint states that, upon conviction, HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO, GEORGE QUE, and TIM BLYTHE would forfeit their interest in two bank accounts held in Guam, two bank accounts held in Saipan, and in the TINIAN DYNASTY HOTEL & CASINO.
This Thursday morning, April 25, 2013, federal agents executed a federal search warrant on the TINIAN DYNASTY HOTEL & CASINO. In conjunction with the search warrant execution, QUE was arrested. Federal agents also executed warrants to seize property subject to forfeiture at the TINIAN DYNASTY HOTEL & CASINO, and its bank accounts.
QUE appeared in court this afternoon before Designated Judge Robert C. Naraja who ordered that he be released on conditions including verification of location monitoring at his residence by the U.S. Probation Office. An arrest warrant is outstanding for BLYTHE. Chief Judge Ramona V. Manglona of the District Court of the NMI issued a summons requiring the corporate representative of HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO to appear in court on May 3, 2013, at 9:00 a.m.
Kenneth J. Hines, Special Agent in Charge of IRS CI in the Pacific Northwest region said that, “Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities. IRS Criminal Investigation is committed to enforcing these laws and following the money, wherever it leads.”
“CTRs are important law enforcement tools for uncovering criminal activity. Individuals and financial institutions who seek to evade the federal reporting requirements will be pursued by the Department of Justice and its partners in federal law enforcement,” said U.S. Attorney Alicia A.G. Limtiaco.
The case is being investigated by IRS Criminal Investigation. The Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Marshals Service, and Homeland Security Investigations assisted IRS CI in the execution of the search warrant. The United States Coast Guard assisted in transporting the federal agents from Saipan to the TINIAN DYNASTY HOTEL & CASINO.A criminal complaint is only a charge, and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Complaint
Cranberry Township Woman Pleads Guilty in Student Loan Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Cranberry Township, Pa., pleaded guilty in federal court to charges of bank fraud and mail fraud, United States Attorney David J. Hickton announced today.
Meredith Shuster, 36, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Shuster fraudulently obtained $729,000 in private lender student loans through using the identities and financial information of her parents.
Judge Hornak scheduled sentencing for Aug. 8, 2013 at 9:30 a.m. The law provides for a total sentence of 50 years in prison, a fine of $500,000, 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 Shuster on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, Postal Inspector Molly Hackimer, the Department of Education, Office of Inspector General and the Pennsylvania Higher Education Assistance Agency conducted the investigation that led to the prosecution of Meredith L. Shuster.
Convicted Felon, Melvin James, Jr., Indicted for Possession of Heroin and FirearmsRead the Press Release
MELVIN JAMES, JR., a 43-year old resident of New Orleans, Louisiana, was charged today in a three-count indictment by a Federal Grand Jury for his possession with intent to distribute 98 grams of heroin, being a convicted felon in possession of four firearms, and possessing those firearms in furtherance of narcotics trafficking, announced U.S. Attorney Dana J. Boente.
According to the indictment, JAMES was arrested following an attempt to sell heroin in Slidell, Louisiana. A search of his residence in New Orleans, Louisiana uncovered 98 grams of heroin, digital scales, products used to “cut” the heroin prior to distribution, over $3,000 in U.S. currency, marijuana, and other tools of the narcotics trafficking trade including four firearms of various makes and calibers.
If convicted of the possession with intent to distribute heroin charges, JAMES. faces a maximum penalty of ten years imprisonment, a $250,000 fine, and a three year term of supervised release. If convicted of the felon in possession of a firearm charge, JAMES faces a maximum penalty of eight years imprisonment, a $250,000 fine, and a three year term of supervised release. JAMES faces additional penalties for the possession of firearms in furtherance of narcotics trafficking charge of up to a term of life imprisonment, a $250,000 fine, and a five year term of supervised release.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
(Download Indictment )
Convicted Armed Robber Sentenced to Federal Prison After Selling Firearms, Ammunition and MarijuanaRead the Press Release
Ocala, Florida - Senior U.S. District Judge William Terrell Hodges today sentenced Marcus Jalany Durias (25, Lake County) to 10 years in federal prison for possession of a firearm and ammunition by a convicted felon), possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. Durias pleaded guilty to the offenses on February 7, 2013.
According to court documents, from June 22, 2012 through July 3, 2012, Durias repeatedly sold firearms, ammunition and quantities of marijuana to a confidential source working in cooperation with law enforcement. Specifically, Durias sold two .38 caliber revolvers, ammunition and more than 420 grams of marijuana. One of the revolvers included in the transaction had been previously reported stolen. Durias engaged in this activity even though he was already serving a 15-year state probationary sentence for a 2008 armed robbery. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law. Now that his federal case has been resolved, Durias will face another sentencing proceeding in state court for his violation of probation in the armed robbery.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA) and the Lake County Sheriff's Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Columbia Man Pleads Guilty to Distributing Heroin Resulting in Death, Faces 22 Years in PrisonRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to distributing heroin, which resulted in the death of another Columbia man last year.
Ellison Lee Hutchison, Jr., also known as “Lucky,” 37, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a June 27, 2012 federal indictment.
By pleading guilty today, Hutchison admitted that he distributed heroin to Maximillion Shackelford on Jan. 23, 2012, and that Shackelford died as a result of using that heroin.
Under the terms of today’s binding plea agreement, Hutchison will be sentenced to 22 years in federal prison without parole and is subject to a fine up to $1 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Columbia police officers were called to the apartment where Shackelford lived with his mother on Jan. 23, 2012. Shackelford was deceased when officers arrived at his apartment. Officers found two syringes lying with Shackelford on the bed, and two recent injection sites were visible on his right wrist. An autopsy was conducted and the medical examiner declared the cause of death to be an overdose of heroin.
Officers examined Shackelford’s cell phone and learned that he had made arrangements earlier that evening to meet Hutchison. Shackelford’s brother told investigators that Hutchison was a heroin dealer with whom he and the victim had prior dealings. Investigators also interviewed the person who drove Shackelford to the location where the drug transaction occurred.
Columbia police officers and Boone County, Mo., sheriff’s deputies executed a search warrant at Hutchison’s residence on Jan. 25, 2012. Hutchison, who was arrested, was in possession of two cell phones, $3,892 in cash and a small baggie of marijuana. A search of Hutchison’s residence resulted in a number of items being seized, including a surveillance system, an electronic scale, two containers of Dormin (a common cutting agent for heroin), a large number of plastic baggies with the corners removed (consistent with having been used to package drugs) and $17,740 in cash. The electronic scale was later sent to the Missouri State Highway Patrol Crime Lab and found to have residue of heroin, cocaine and THC (the active ingredient in marijuana). Investigators examined the cell phones and found text messages between Shackelford and Hutchison, apparently referencing prior drug deals.
Hutchison was questioned and eventually admitted that he sold Shackelford a quarter gram of heroin for $45.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry, Special Assistant U.S. Attorney Stephanie Morrell (an assistant prosecutor for the Boone County Prosecutor’s office who was appointed for this case) and Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration, the Boone County, Mo., Prosecuting Attorney’s Office, the Boone County, Mo., Sheriff’s Department and the Boone County, Mo., Medical Examiner’s Office.
Collierville Company American Marsh Pumps, Inc and Sales Vp Michael J. Florio Plead Guilty to A Felony Charge of Making False StatementsRead the Press Release
Memphis, TN – J-Line Pump, Inc., d/b/a American Marsh Pumps, Inc. (AMP), a Tennessee Corporation headquartered in Collierville, and Michael J. Florio, 40, of Collierville, pleaded guilty today to making false statements to a government agency that resulted in more than a half-million dollars in fraudulent sales of water pumps to an Egyptian company, announced U.S. Attorney Edward L. Stanton III.
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“When our government undertakes to provide development programs throughout the world, it must be able to trust its partners,” said U.S. Attorney Stanton. “Government contractors are neither exempt from nor allowed to turn a blind eye to the rules and requirements designed to prevent fraud and malfeasance. Today’s guilty plea should serve notice to those who engage in procurement fraud that there is zero tolerance for such conduct, and ultimately you will be held accountable.”
The charge in the information grew out of an indictment filed December 14, 2011, alleging that AMP conspired with international interests in order to rig the outcome of bidding process for 10 large industrial water pumps intended for an Egyptian company.
This conspiracy violated the regulations established by the United States Agency for International Development (USAID) Commodity Import Program (CIP). One of the provisions required that the pumps be manufactured in the United States, but the pumps sold by AMP and Florio, the Vice President of Sales and Marketing for AMP, were manufactured in China. Other provisions required that the pumps be tested and certified, when in fact, none of the pumps were tested. During the plea hearing, it was revealed that the pumps were eventually sold to the Egyptian government, and proved to be of inferior quality. Six of the pumps were eventually returned to the manufacturer in China.
In pleading to the information, AMP agreed to forfeit $536,750, representing the proceeds obtained as a result of the false statements made. Florio will be sentenced by U.S. District Judge T. Fowlkes, Jr. on May 30, 2013. He could receive up to five years in federal prison.
“I would like to express my thanks for the excellent work of our investigators and our colleagues at the Department of Justice involved with this case,” said USAID Deputy Inspector General Michael Carroll. “Today’s pleas send a strong message to those who would obtain taxpayer funds intended to support USAID programs through fraud. The USAID Office of Inspector General will continue to use all necessary resources of the U.S. government to bring to justice those who wrongfully profit from the American taxpayer.”
This case was investigated by the USAID Office of Inspector General. Assistant United States Attorney Christopher E. Cotten represented the government.Clearfield County Man Sentenced to 3 Years in Prison for Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of West Decatur, Pa., has been sentenced in federal court to 36 months in prison with 10 years supervised release, required to register as a sex offender, and ordered to pay restitution of $1,000 on his conviction of possession of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on James L. Scott, 48.
According to information presented to the court, on April 10, 2009, Scott knowingly possessed pictures and videos in individual computer graphic files which were produced using minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Homeland Security Investigations for the investigation leading to the successful prosecution of Scott.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Citizen of Mexico Sentenced for Illegally Returning to U.S. After Being DeportedRead the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico entered a plea of guilty to a one-count indictment and has been sentenced in federal court to three months in prison, no supervised release, and ordered immediately turned over to the custody of the United States Immigration and Customs Enforcement for deportation to Mexico on his conviction of re-entry of a removed alien, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Jose Arqimedes Guevera-Amaya, 30, of Altoona, Pa.
According to information presented to the court, on Nov. 19, 2012, Guevera-Amaya, an alien who had been deported from the United States on Oct. 11, 2001, was found in Blair County, Pennsylvania. He had unlawfully re-entered this country without receiving permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to do so.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security/Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Guevera-Amaya.
Chicago Man Arrested for Allegedly Taking Cash to Assist with Filing False Bankruptcy Case to Avoid City Auto Impound FeesRead the Press Release
CHICAGO — A Chicago man was arrested today for allegedly soliciting and accepting a $600 cash payment to assist with filing a false bankruptcy case to avoid paying a fine or fees to the City of Chicago before obtaining the release of a vehicle from the city’s auto pound. The defendant, DANIEL RANKINS, was charged with bankruptcy fraud after an undercover investigation by the FBI and the City of Chicago’s Office of Inspector General.
Rankins, also known as “Little D,” 30, of Chicago, is scheduled to appear at 2 p.m. today before U.S. Magistrate Judge Mary Rowland in Courtroom 1342 of the Dirksen Federal Courthouse.
According to the unsealed complaint affidavit, authorities are investigating various individuals, including Rankins, who, in exchange for cash payments, orchestrate and assist in the filing of false bankruptcy petitions to avoid paying impound fees to the city. As a result of the allegedly fraudulent bankruptcy cases, the city suffers the loss of fines and fees due for each impounded vehicle, while the U.S. Bankruptcy Court suffers the loss of the $306 filing fee for each case.
In May 2012, the City of Chicago’s Department of Revenue (now Finance Department) alerted the U.S. Trustee for the Northern District of Illinois, which administers individual bankruptcy cases and liquidates debtors’ nonexempt assets, to a significant increase in the number of individuals who appeared to be using bankruptcy as a means of obtaining the release of their vehicles from city auto pounds without paying associated fines or fees. The city requires that individuals present their impound paperwork and pay what is owed at the Revenue Department before the city will release their vehicles from the pound. Revenue Department officials told the U.S. Trustee’s office that it appeared as though individuals were approaching people at the revenue office and assisting with filing false Chapter 7 bankruptcy cases to get their vehicles released without paying fines or fees.
The U.S. Trustee’s Office reviewed and identified more than 1,000 individual pro se bankruptcy filings in which the only creditors identified in the petitions were the Revenue Department and the city’s auto pounds. In almost all of these cases, the debtors filed applications claiming an inability to pay the $306 Bankruptcy Court filing fee.
According to the bankruptcy trustee’s office, almost all of these cases contained additional indications that the cases were filed fraudulently, with the debtors failing to appear at court hearings to review their applications to waive the filing fee. Eventually, nearly all of these cases were dismissed due to the failure of the debtors to file required documents, and the filing fees were never collected.
The complaint affidavit details an undercover operation on Jan. 7, 2013, to identify individuals who accepted cash in exchange for assisting with the filing of a false bankruptcy petition to obtain the release of impounded vehicles. An undercover officer went to the Revenue Department office, located at 400 West Superior St., and was approached by an individual who allegedly arranged for Rankins to contact the officer, which he did, later that day. The undercover officer told Rankins that $4,200 was owed to get a car released from the city pound, and Rankins allegedly said that he usually charged half of what a person owed the city to get their car. The officer told Rankins that he/she had only $600 and they arranged to meet that afternoon.
While driving the officer to the Dirksen Federal Courthouse, Rankins allegedly provided bankruptcy filing paperwork that was already completed except for the petitioner’s personal and vehicle information, and signature. Rankins allegedly explained that the officer was “wiping out” the city as a creditor by filing the bankruptcy. After completing the paperwork, the undercover officer entered the courthouse and filed the bankruptcy petition. The officer returned to Rankins’ vehicle, paid Rankins the $600, and was driven back to the Revenue Department, where Rankins instructed the officer to enter the east side of the building and speak with a Revenue Department representative who accepted the bankruptcy paperwork.
Bankruptcy fraud carries a maximum penalty of five years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Rankins’ arrest and charge were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, and Joseph Ferguson, City of Chicago Inspector General. The U.S. Bankruptcy Court and the U.S. Trustee’s Office for the Northern District of Illinois cooperated and assisted with the investigation, which is continuing.
The government is being represented by Assistant U.S. Attorney Megan Church.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
California CPA Sentenced to Two Years in Prison and Ordered to Pay Restitution for Role in Stolen Identity Tax Refund SchemeRead the Press Release
Masood Chotani, a certified public accountant from Los Angeles , was sentenced today to 24 months in prison, followed by one year of supervised release, the Justice Department and Internal Revenue Service (IRS) announced. Chotani was also ordered to pay $60,705 in restitution to the IRS.
On June 23, 2010, Chotani was indicted by a federal grand jury on charges of engaging in a scheme to file false tax returns with the IRS using the names and Social Security numbers of deceased individuals. He pleaded guilty to conspiracy to defraud the United States on January 15, 2013.
According to the indictment and the plea agreement, in 2002 and 2003, Chotani misappropriated employer identification information from his client files and provided them to his co-conspirators, Haroon Amin and Ather Ali. Amin and Ali then prepared and filed fraudulent tax returns falsely stating that these deceased individuals earned wages from which income tax had been withheld. As part of the scheme, Chotani caused 47 tax returns to be filed with the IRS claiming an aggregate of $372,558 in false refunds. Although the IRS rejected the bulk of the refund claims filed in the scheme, a number of refund checks were issued and delivered to addresses controlled by Amin, Ali, and their co-conspirators, including various mailboxes opened by Ali. Most of these refund checks then were delivered overseas to be deposited in bank accounts in Armenia and Pakistan. Chotani admitted that he was a knowing participant in this scheme.
Amin and Ali are serving prison sentences of 30 and 37 months, respectively.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of agents from the IRS Criminal Investigation Division in Laguna Niguel, Calif., as well as Assistant U.S. Attorney Charles E. Pell and Tax Division Trial Attorneys Joseph A. Rillotta and Ignacio Perez de la Cruz, who prosecuted the case.
More information about the Tax Division and its enforcement efforts is available at www.usdoj.gov/tax .
Bureau of Prisons Employee Admits Receiving Unlawful GratuitiesRead the Press Release
Baltimore, Maryland - A day after her trial began in federal court, Susan A. Pratt, age 47, of Crofton, Maryland, pleaded guilty on April 23, 2013 to receipt of unauthorized payments as a government employee.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge M. Elise Chawaga, Fraud Detection Office, U.S. Department of Justice Office of the Inspector General.
Pratt was a supervisory traffic management specialist in the Bureau of Prisons (BOP) Relocation Services section, located in Annapolis Junction, Maryland. Relocation Services is responsible for paying the relocation expenses of BOP employees when they are reassigned to another duty station. Pratt was responsible for providing relocating BOP employees with a list of approved movers. After the employee selected the carrier, Pratt referred the move to agents of the carrier. Pratt later signed the government bills of lading, which became the agreement between BOP and the carrier/agent for the move.
According to her plea agreement, from 2007 to 2008, Pratt caused moves for employees who chose Mayflower as their carrier to be sent to a Mayflower agent – Klavuhn Moving & Storage. In January 2006 and December 2007, the sales representative for Klavuhn Moving & Storage provided two gift cards to Pratt for a salon and spa, in the amounts of $1,007 and $790, and Pratt accepted and used the gift cards, which were significantly more than the $50 in gifts that government employees are allowed to receive annually from individuals with whom they do business. Her receiving the gift cards also served to supplement her government salary and inappropriately compensated her for her work as an employee of the BOP.
Pratt also received free moving services from two moving companies in December 2007 and May 2010.
Pratt faces a maximum sentence of one year in prison and a $100,000 fine. U.S. District Judge Ellen L. Hollander scheduled sentencing for June 25, 2013 at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised the U.S. Department of Justice Office of Inspector General for its work in the investigation and thanked Assistant United States Attorneys Joyce K. McDonald and Special Assistant U.S. Attorneys Sean Marlaire and Matthew W. Lunder, assigned from the Antitrust Division of the U.S. Department of Justice, who are prosecuting the case.