Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
12 April 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Brison K. Williams, 20, of South Bend, Indiana, a defendant in the case US v Shaw et al., pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of racketeering.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 7/15/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Cedric Hill, 33, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession of a firearm by a convicted felon.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 7/18/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Sandra Alfaro, 35, of Indianapolis, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offenses of conspiracy to harbor illegal aliens and conspiracy to commit mail fraud.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 7/18/13. These charges were filed as a result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Postal Service-Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Kenneth Hays.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Lorenzo Jackson, 33, of South Bend, Indiana, was sentenced by District Judge Jon DeGuilio to 117 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of possession of marijuana with the intent to distribute, possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm as a convicted felon.According to documents filed by the government in this case, Jackson admitted that he sold and distributed marijuana to other persons in 2012 and possessed a shotgun during this period in order to protect himself from robbery while distributing the marijuana.Jackson has prior felony convictions including dealing in cocaine and possession of marijuana.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Efrain Castenada, 31, a citizen of Mexico, was sentenced by District Judge Jon DeGuilio to 151 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of possession of a firearm by an illegal alien and unlawful hostage taking/detention.According to documents filed by the government in this case, Castenada used a firearm to threaten to kill his wife, and taking her and two children hostage. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Jose Nevarez, 37, of South Bend, Indiana, was sentenced by District Judge Jon DeGuilio to two years of supervised release and a $2000.00 fine after pleading guilty to the felony offense of structuring transactions to evade reporting requirements.According to documents filed by the government in this case, Nevarez structured several deposits into his bank account under $10,000 t in June and July of 2010 to avoid the reporting requirements banks have to make to the federal government when cash deposits are made that exceed $10,000. This case was the result of an investigation by the Internal Revenue Service-Criminal Investigations Division.This case was prosecuted by Assistant United States Attorney William Grimmer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Ronald Parks, 60, no known address/homeless, pled guilty before Senior District Judge Rudy Lozano to the felony offenses of kidnapping and, in a separate matter, the bank robbery of Citizens Bank in Hammond, Indiana.Sentencing in both cases has been set for 7/11/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation and the Hammond Police Department.These cases are being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Imaru Jones, 29, of Griffith, Indiana, pled guilty before Magistrate Judge Paul Cherry to the felony offense of distribution of marijuana.Magistrate Cherry is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Jazneen Williams, 22, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of making false statements in connection with the purchase of a firearm.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chicago Police Department.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
William Weigand, 43, of Portage, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney David Nozick.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Robert Lockhart, 20, of East Chicago, Indiana, a defendant in the case US v Briseno et al., was sentenced by Chief Judge Philip Simon to 240 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to participate in racketeering activity. Lockhart, a member of the Imperial Gangsters street gang, admitted that during the course of the conspiracy he was responsible for the murder of Miguel Colon. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department, and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County HIDTA.This case was prosecuted by Assistant United States Attorney David J. Nozick.
Aaron Grant, 33, of East Chicago, Indiana, was sentenced by Chief Judge Philip Simon to 30 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm as a convicted felon.Grant has a prior conviction for possession of cocaine in 2005.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Jeremiah Stevenson, 23, of Gary, Indiana, a defendant in the case US v Elmore et al., was sentenced by Senior District Judge Rudy Lozano to 78 months imprisonment, $17,954.35 in restitution and 3 years of supervised release after pleading guilty to the felony offenses of the robbery of Auto Zone and the robbery of Gamestop in Hammond, Indiana; and the armed robbery of Tech Credit Union in East Chicago, Indiana.
Lavelle Hatley, 18, of Gary, Indiana, a defendant in the case US v Elmore et al., was sentenced by Senior District Judge Rudy Lozano to 108 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of the robbery of Rallys, Family Dollar, and Church’s Chicken restaurants in Gary, Indiana; the robbery of Kentucky Fried Chicken restaurants in Merrillville and Hammond, Indiana; the robbery of Domino’s Pizza in Merrillville, Indiana; and the robbery of Auto Zone in Merrillville and Hammond, Indiana.
These cases were the result of an investigation by the Federal Bureau of Investigation, the East Chicago Police Department, the Gary Police Department, the Hammond Police Department and the Merrillville Police Department.These cases were prosecuted by Assistant United States Attorney Dean Lanter.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION:
Patrick O’Quinn, 30, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 60 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of distribution of methamphetamine.This case was the result of an investigation by the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Wanblee Man Sentenced for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota man convicted of Distribution of a Controlled Substance was sentenced on April 2, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jordan Long Solider, age 41, was sentenced to 1 year probation, a $250.00 fine, and a $100 special assessment to the Victim Assistance Fund.
On December 14, 2011, Long Solider did knowingly and intentionally distribute marijuana at Wanblee. Long Solider pled guilty to the charge on November 21, 2012.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, and the Federal Bureau of Investigation. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
U.S. Attorney Announces Additional $63,437 Restitution for Crusade for ChildrenRead the Press Release
– U.S. District Court Judge Orders Held Payment Released From Sale Of Defendant Paul Barth’s Former Home
LOUISVILLE, Ky. – The United States District Court Clerk in Louisville, Kentucky will forward an additional restitution payment, in the amount of $63,437, to the WHAS Crusade for Children, announced United States Attorney David J. Hale. The funds are proceeds from the sale of the former home of convicted former McMahon Fire Protection District Chief Paul Barth. The funds are being released at the request of the United States, pursuant to a Court Order entered today by U.S. District Judge John G. Heyburn II.
“This is another significant step in the effort to recover the funds stolen by Paul Barth from the Crusade for Children. This money can now go where it was intended: to help the many children and their families in our community who rely on the important services provided by the Crusade’s charitable donations. A total of $196,608.57 has now been applied toward the $198,277 restitution obligations, and we expect the remaining amount to be paid in full,” stated U.S. Attorney Hale.
Barth pleaded guilty to one count of mail fraud, two counts of wire fraud, and 12 counts of money laundering, on June 21, 2012. He was sentenced on November 19, 2012 in federal court by U.S. District Judge Heyburn to a sentence of 41 months imprisonment, which Barth began serving on December 20, 2012. At sentencing, the Court also ordered Barth to make restitution to his victims, the WHAS Crusade for Children and the McMahon Fire Protection District (MFPD). The restitution order in favor of the Crusade was $190,000, and the order in favor of MFPD was $8,277, for a total of $198,277.
The private sale of Barth’s real estate in Jeffersontown, Kentucky was completed on January 15, 2013. At that time, the United States and American Alternative Insurance Corporation, insurer of McMahon Fire District, each maintained liens on the real estate. In addition to the initial $130,410.56 recovered from the sale of the real estate – which was returned as restitution to the Crusade and the McMahan Fire Department – an additional $66,198.01 from the proceeds of the sale was paid into a registry account held by the U. S. District Court Clerk’s Office in Louisville, Kentucky. The U. S. Attorney’s Office asked the Court to also apply these additional funds to the restitution owed by Barth. American Alternative Insurance Corporation asserted an interest in the proceeds. Today’s Court Order resolved the dispute in favor of the United States’ position.
This case was prosecuted by Assistant U. S. Attorneys David Weiser and Bryan Calhoun. The restitution collection efforts are led by Assistant U. S. Attorney Joe Ansari. The case was investigated by the United States Secret Service - Kentucky Electronic Crimes Task Force, which includes the University of Louisville Police Department, the United States Postal Inspection Service, and the Criminal Investigation Division of the Internal Revenue Service.
Two Participants in Illegal Campaign Contribution Scheme Plead GuiltyRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that two individuals pleaded guilty today in New Haven federal court to conspiracy charges stemming from a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives. JOSHUA NASSI, 34, of Fairfield, and BENJAMIN HOGAN, 33, of Southington, each pleaded guilty before United States District Judge Janet Bond Arterton to one count of conspiracy to make false statements to the Federal Election Commission and to impede the FEC’s enforcement of federal campaign finance laws.
“With today’s guilty pleas, six individuals have now acknowledged their involvement in a scheme to disguise the source of contributions to a federal campaign, contributions that were given to influence legislation pending before the Connecticut General Assembly,” stated U.S. Attorney Fein. “The Department of Justice is committed to prosecuting those who corrupt our system of government, our campaign finance laws and the electoral process.”
“Today’s guilty pleas serve as a reminder that there are consequences for those who undermine the integrity of the legislative process by engaging in a concealed pay-to-play system,” stated FBI Special Agent in Charge Mertz. “The public interest was not being served. The only interests being served were those of the defendants who put their own interests above all. This investigation demonstrates the FBI’s commitment to the investigation of corruption at all levels of government.”
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, HOGAN, Paul Rogers, Harry Raymond “Ray” Soucy, David Moffa and others engaged in a scheme to direct conduit campaign contributions into the campaign of a candidate for the U.S. House of Representatives. The candidate was also a member of the Connecticut General Assembly. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign, and Rogers, HOGAN and other conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
At the time, NASSI was the Campaign Manager for the campaign of the candidate for the U.S. House of Representatives, and HOGAN was an employee of Smoke House Tobacco, an RYO smoke shop with two locations in Waterbury, which was co-owned by Rogers. Soucy had a pre-existing relationship with NASSI and the member of the General Assembly who was running for Congress.
In November and December 2011, HOGAN, Rogers, Soucy, Moffa and others made four $2,500 conduit contributions to the Campaign. HOGAN was aware of the purpose of the contributions and that the contributions were being made in the names of others.
On approximately January 31, 2012, the Campaign Committee submitted to the Federal Election Commission (“FEC”) a report of the Campaign Committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the Campaign Committee during that time period.
On April 3, 2012, Soucy contacted NASSI and told him that RYO owners wanted to provide additional contributions to the Campaign. That same day, the Connecticut General Assembly’s Joint Committee on Finance, Revenue and Bonding voted in favor of Senate Bill 357, legislation that would have deemed RYO smoke shop owners to be tobacco manufacturers under Connecticut law, a designation that would have subjected RYO smoke shop owners to a substantial licensing fee and tax increase. Later that day, Soucy contacted NASSI again to state his displeasure with the vote.
Approximately one week later, Soucy, Rogers and an FBI special agent working in an undercover capacity delivered four $2,500 checks in the names of conduit contributors to NASSI. On April 23, 2012, NASSI advised Soucy that one of the checks had bounced and Soucy indicated that the contributor had been given cash to deposit. NASSI stated that the Campaign needed the check by midnight the following day, and Soucy delivered a replacement check by that deadline. On May 2, 2012, the Campaign submitted a fundraising report to the FEC stating that the four contributions given in April were from the conduit contributors when, in fact, they were not.
Over the next two weeks, NASSI continued to advise Soucy on the status of the RYO legislation and Soucy told NASSI that he would be delivering $10,000 if the legislation died. On May 9, 2012, the legislative session ended and the legislation had not been called for a vote by either chamber of the General Assembly.
On May 14, 2012, Soucy, Rogers and HOGAN met at Smoke House Tobacco where Soucy provided Rogers with $10,000 in cash to be used to reimburse additional conduit contributors. Prior to the meeting, HOGAN had approached Waterbury business owner Daniel Monteiro and an employee of Monteiro’s and asked them to serve as conduit contributors. Monteiro subsequently wrote a $2,500 check to the Campaign, and his employee obtained a bank check in the amount of $2,500. Both were assured that they would be reimbursed. These two checks, and another $2,500 bank check drawn on HOGAN’s own account but not in his name, were given to Soucy at the meeting. Also, at NASSI’s request, Rogers gave Soucy a fourth $2,500 check from a conduit contributor that was payable to a political party. Soucy then delivered the four checks to NASSI at a political event.
On May 16, 2012, after Soucy informed the Campaign that one of the contributions had been made in the name of an RYO shop owner and should not be deposited, Soucy met NASSI and provided him with a replacement $2,500 check in the name of someone who was not affiliated with any RYO shops.
HOGAN and NASSI are scheduled to be sentenced on July 9 and July 16, 2013, respectively. Both face a maximum term of imprisonment of five years and a fine of up to $250,000.
Rogers, Soucy, Moffa and Monteiro have also pleaded guilty to charges related to this scheme and await sentencing.
As to the two other individuals who have been charged as a result of this investigation, U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Two Defendants Plead Guilty to Involvement in International Criminal Network Organized to Sexually Exploit ChildrenRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that two additional defendants pleaded guilty Thursday for their involvement in an international criminal network organized to sexually exploit children in connection with their participation in the Dreamboard child exploitation operation. United States District Judge S. Maurice Hicks presided over the hearing.
Christopher Blackford, 28, of Charleston, S.C., pleaded guilty to participating in a child exploitation enterprise and faces 20 years to life in prison, a $250,000 fine, and five years supervised release. According to the stipulated factual basis contained in the plea agreement, Blackford joined Dreamboard Dec. 29, 2009, and placed 84 online bulletin board posts containing child pornography.William Davis, 39, of Bristol, N.H., pleaded guilty to conspiracy to advertise child pornography and faces 15 to 30 years in prison, a $250,000 fine, and five years to life of supervised release for his part in the Dreamboard child exploitation operation. According to the stipulated factual basis contained in the plea agreement, during his time on Dreamboard, Davis posted advertisements offering to distribute child pornography to other members of the board.
Sentencing has been set for July 29, 2013.Blackford and Davis were charged in an indictment unsealed on Aug. 3, 2011. The charges are the result of Operation Delego, an ongoing investigation launched in December 2009 that targeted individuals around the world for their participation in Dreamboard. Dreamboard was a private, members-only, online bulletin board that was created and operated to promote pedophilia and encourage the sexual abuse of very young children in an environment designed to avoid law enforcement detection.
A total of 72 individuals, including Blackford and Davis, have been charged as a result of Operation Delego. To date, 57 of the 72 charged defendants have been arrested in the United States and abroad. Forty-seven individuals have pleaded guilty, and one was convicted after trial. Forty-two of the 48 individuals who have pleaded guilty or found guilty for their roles in the conspiracy have been sentenced to prison and have received sentences ranging between 10 years to life in prison. Three defendants have received life sentences, including one who was convicted at trial. Fifteen of the 72 charged individuals remain at large and are known only by their online identities. Efforts to identify and apprehend these individuals continue. Operation Delego represents the largest prosecution to date in the United States of individuals who participated in an online bulletin board conceived and operated for the sole purpose of promoting child sexual abuse, disseminating child pornography and evading law enforcement.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 as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana and Trial Attorney Keith Becker of CEOS. The Criminal Division’s Office of International Affairs provided substantial assistance. The investigation was conducted by ICE-Homeland Security Investigations, the Child Exploitation Section of ICE’s Cyber Crime Center, CEOS, CEOS’s High Technology Investigative Unit and 35 ICE offices in the United States and 11 ICE attaches offices in 13 countries around the world, with assistance provided by numerous local and international law enforcement agencies across the United States and throughout the world.
The investigation was part of Operation Predator, a nationwide ICE initiative to identify, investigate and arrest those who prey on children, including human traffickers, international sex tourists, Internet pornographers and foreign-national predators whose crimes make them deportable.ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Two Anchorage Women plead guilty to drug and weapons chargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage resident pled guilty yesterday in federal court to charges of possession of a controlled substance with intent to distribute and felon in possession of firearms.
Nancie Caridad Modeste, 27, entered her guilty plea before U.S. District Court Judge Sharon L. Gleason. In connection with the guilty plea, Special Assistant U.S. Attorney Erin White Bradley, advised the court that Modeste and her co-defendant, Ashley Helene Hilton, possessed firearms in September 2012. Both defendants have prior felony convictions. Modeste was convicted of felony tampering with evidence in 2005, and Hilton was convicted of second degree felony robbery that same year. Modeste admitted to possessing three semi-automatic pistols, while her co-defendant admitted to possessing only one of the pistols. In addition to the firearms, Modeste also possessed 85 grams of crack cocaine, which she intended to sell to others. On March 8, 2013, Hilton entered a plea of guilty to the charge of felon in possession of a firearm.Modeste is scheduled to be sentenced by Judge Gleason on July 1, 2013, and Hilton’s sentencing is set for May 17, 2013. For Modeste, the law provides for a mandatory minimum sentence of five years in prison, a potential maximum sentence of 40 years, a potential fine of five million dollars, or both.
Hilton faces a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history of the defendants.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation of this case.Three Men Handed Massive Sentences in Attempted Cocaine RobberyRead the Press Release
HOUSTON – Three Colombian nationals have been ordered to prison for lengthy terms following multiple convictions including drug conspiracy, firearms charges, identity theft and false claims of citizenship, United States Attorney Kenneth Magidson announced today. The jury returned its verdicts against Carlos Manuel Boria, Francisco Javier Rodriguez, and Edwin Rivera-Otero, on Monday, Oct. 1, 2012, following a five-day trial.
Today, Boria was handed nearly a 41-year-term of federal imprisonment, while Rodriguez and Rivera-Otero will serve nearly 18 and more than 34 years in federal prison, respectively.
All were convicted of aiding and abetting the possession with the intent to distribute cocaine, aiding and abetting the use of a firearm during the commission of a drug trafficking crime, conspiracy to possess with the intent to distribute cocaine and conspiracy to use a firearm. Boria and Rivera-Otero were also convicted of possession of a firearm by a convicted felon. In the midst of trial, Boria and Rivera-Otero also entered guilty pleas to aggravated identity theft and false claims to United States citizenship.
Today, U.S. District Judge Melinda Harmon handed down the sentences. Boria, aka Luis German Rodriguez or Victor, was ordered to serve a total of 405 months in federal prison for all but the aggravated identity theft and the aiding and abetting use of a fireams charges. Those charges resulted in respective terms of 24 and 60 months in federal prison, which must be served consecutively for a total sentence of 489 months. Edwin Rivera-Otero, aka Luis Angel Maldonado Barroso, received a 327-month-term in addition to the mandatory 24 months for the identity theft and 60 months for the firearms charge for a total sentence of 411 months, while Francisco Javier Rodriguez, aka Siver Jesus Cundumi-Bonilla, will serve a total of 211 months in prison – 151 months for all but the aiding the use of a firearm charge which added an additional 60 months.
As illegal aliens, all are expected to face deportation proceedings following release from prison.
In handing down the sentences, Judge Harmon noted that Boria was the organizer who brought others into the conspiracy and that he had been in Houston illegally since 1998. She added that Rivera-Otero occupied a managerial role, was found with a false identification and was arrested less than nine months after release from prison on previous drug conspiracy charges in the Western District of Texas.
At trial, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) testified that they interdicted a group of seven individuals who were preparing to rob a cocaine stash house of multiple kilograms of cocaine. The group was dressed in clothing identifying them as police and planned to use firearms to subdue any occupants of the stash house. Testimony further revealed agents recovered five firearms, four of which were reported as stolen, as well as multiple zip-ties and additional police clothing.
Testimony revealed insight into the planning stages of the robbery. The robbery crew met at an apartment before the planned robbery and displayed their police clothing, commenting about who looked the most official. Assignments for the home invasion were doled out and the crew was prepared to forcibly rob the stash house for cocaine. It was then, according to agents, that law enforcement intervened and arrested the crew.
Upon pleading guilty to the other charges, Boria and Rivera-Otero admitted that at the time of their arrest, they were in possession of fraudulently obtained identification cards and Social Security numbers.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the ATF, United States Postal Inspection Service, Homeland Security Investigations, Drug Enforcement Administration and the Houston Police Department. Assistant United States Attorneys Mark E. Donnelly and Richard J. Magness prosecuted the case.
Three Members of Jewelry Theft Ring Plead Guilty to Racketeering ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Members of a violent and highly sophisticated jewelry theft ring pleaded guilty this week for their participation in a racketeering conspiracy.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after multiple pleas were entered this week.
Lucesita Argueta, 33, aka “Lucy,” of Richmond, Va., pleaded guilty on Monday before U.S. Magistrate Judge Tommy Miller in the Eastern District of Virginia to racketeering conspiracy. Jose Alfredo Rivero-Garcia, 52, aka “Alfredo” and “Jose Ribero,” of Richmond, pleaded guilty on Thursday before U.S. Magistrate Judge Douglas Miller in the Eastern District of Virginia to racketeering conspiracy. Luis Muchado, 33, of Henrico, Va., pleaded guilty today before U.S. Magistrate Judge Douglas Miller in the Eastern District of Virginia to racketeering conspiracy.According to court documents, Alexander Cuadros-Garcia, aka “Alex,” “Brujo,” “Aleto” and “Manuel Gonzalez”, 37, of Richmond, led an organized criminal group that stole more than $4.6 million in jewelry from victims in Virginia and at least six other states. In March 2012, Cuadros-Garcia, Argueta, Rivero-Garcia, and Muchado were charged along with four other individuals who were members of the Richmond-based ring that regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise. In addition, the robbers would puncture the victims’car tires and steal their cell phones to reduce the chance of pursuit or apprehension. After a successful robbery, members of the ring would travel to New York to sell the merchandise to businessmen who coordinated re-selling the stolen property or melting it down for future use.
At sentencing, Argueta, Rivero-Garcia, and Muchado each face a maximum penalty of 20 years in prison.
This week’s guilty pleas follow the guilty plea of Cuadros-Garcia, on March 29, 2013, and sentencings of Raul Antonio Escobar-Martinez, on March 7, 2013, and William Leandro Herrera-Bohorquez, on March 14, 2013, who both previously pleaded guilty for their roles in the theft ring. Escobar-Martinez and Herrera-Bohorquez were each sentenced to serve 87 months in prison, followed by three years of supervised release.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.
Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia and Trial Attorney Jerome M. Maiatico of the Criminal Division’s Organized Crime and Gang Section prosecuted the case on behalf of the United States.The Prosecution of Tax Cases Continues as the April 15 Deadline ApproachesRead the Press Release
DENVER – U.S. Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announce the prosecution of several criminal tax offenders this week in the District of Colorado. As the deadline for filing tax returns is this Monday, federal officials remind citizens that it is important to file complete and accurate tax returns. Those who deliberately evade this obligation will be criminally prosecuted.
Recent tax cases prosecuted in the District of Colorado include the following:
Elizabeth A. Eurioste, age 62, of Aurora, Colorado, who was indicted by a federal grand jury in Denver on April 9, 2013 for aiding and assisting in preparing false Form 1040 U.S. Individual Income Tax Returns for years 2006 and 2007. She willfully advised her clients and prepared for them false tax returns, including false deductions, overstated expenses and false business losses when in fact the taxpayers were not entitled to the deductions which resulted in the under-reporting of taxable income. She falsified losses as much as $158,374 on a single 2007 Form 1040 U.S. Individual Income Tax Return. She was charged with twenty counts of aiding and assisting in the preparing of false tax returns which carries a penalty of not more than 3 years imprisonment, and a fine of up to $250,000 per count.
James Stanley Golob, age 54, of Pueblo, Colorado, was charged by Information on April 11, 2013 with income tax evasion for calendar year 2007. According to the information, Golob took a variety of measures to avoid the assessment and payment of income tax $586,618 of income generated during 2007 through rental properties and through his roofing business, including paying his mortgage, utilities, and other personal expenses from business accounts, titling his home in family member’s name, and filing a false tax return for 2007 in which he falsely reported total compensation for the year of $13,800. Income tax evasion carries a penalty of not more than 5 years imprisonment, and a fine of up to $250,000.
Daniel Dinner, age 61, of Denver, Colorado, was charged by Information on April 12, 2013 with willfully filing a false U.S. individual income tax return for calendar year 2009. According to the information, Dinner’s return falsely reported his net income as $17,495, which resulted in a tax deficiency of approximately $28,810. He faces a penalty of not more than 3 years imprisonment, and a fine of up to $250,000.
Richard K. Sears, age 64, of Parker, Colorado, was formally charged by criminal Information on April 12, 2013 with three counts of willfully failing to file U.S. individual income tax returns. Failing to file U.S. individual income tax returns carries a penalty of not more than 1 year imprisonment, and a fine of up to $100,000 per count.
“As citizens and residents of the United States, we all have an obligation to file tax returns, and to ensure that those tax returns are complete and accurate,” said U.S. Attorney John Walsh.
“Tax evasion is not a victimless crime; we all pay when others attempt to defraud the government,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “This is a reminder that all taxpayers should file complete and accurate tax returns.”
Charges in an indictment and information are allegations and the defendants are presumed innocent unless and until proven guilty.
The criminal cases are being prosecuted by Assistant United States Attorneys Anna K. Edgar, Matthew T. Kirsch, Suneeta Hazra and Tim R. Neff, respectively, all of the U.S. Attorney’s Office Economic Crimes Section for the District of Colorado, with assistance from Department of Justice Trial Attorney Kevin F. Sweeney.
####
Ten Bay Area Residents Charged with Federal Passport OffensesRead the Press Release
SAN FRANCISCO – Over the past 18 months, ten Bay Area residents have been charged with federal passport offenses, United States Attorney Melinda Haag and Diplomatic Security Service Special Agent in Charge Dean K. Shear announced.
The individuals are part of more than 225 Bay Area residents who have been charged with or prosecuted for false passport offenses since 2007. According to court records and proceedings, the following 10 defendants all misrepresented their identity on applications for United States passports or committed related offenses in violation of either 18 U.S.C. § 1542, false statement in application for a passport, or 18 U.S.C. § 1028, fraud in connection with identification documents:
Ricardo Montano of San Jose, Calif., is alleged to have applied for a passport using another person’s birth certificate. Montano eluded arrest in September 2011, and remains a fugitive.
Xeres Mari Luciano Garcia Anicete II of San Francisco, Calif., was convicted of possessing a false identification document when he applied for a passport. Anicete II was sentenced to 24 days of imprisonment on September 30, 2011.
Erik Alan Murphy of San Francisco, Calif., was convicted of possessing a false identification document when he applied for a passport. Murphy was sentenced to 30 days of imprisonment on January 27, 2012.
Luse Lilomaiava of San Francisco, Calif., was convicted of possessing a false identification document when she applied for a passport. Lilomaiava was sentenced to three years of probation on July 26, 2012.
Mikhail Nijjar of Oakland, Calif., was convicted of applying for a passport using another person’s name. Nijjar was sentenced to approximately four and one-half months of imprisonment on August 29, 2012.
Marco Matute of San Francisco, Calif., was convicted of attempting to possess a false passport. Matute was sentenced to approximately two and one-half months of imprisonment on September 6, 2012.
Ruben Reyes Diaz of Oakland, Calif, was convicted of possessing a false identification document when he applied for a passport. Diaz was sentenced to approximately 50 days of imprisonment on February 20, 2013.
Richard Emmett Monroe of Santa Rosa, Calif., is alleged to have applied for a passport using another person’s name. Monroe was charged by a felony criminal complaint on January 11, 2013, and is currently in the custody of the Sonoma County Sheriff.
Manuel Sanchez of Salinas, Calif., was convicted of possessing a false identification document when he applied for a passport. Sanchez was sentenced to 10 months of imprisonment on March 14, 2013.
Quentin Chiang of San Jose, Calif., is alleged to have applied for a passport using another person’s name. A Federal grand jury in San Jose returned an indictment against Chiang on March 13, 2013. Chiang is currently in the custody of the United States Marshals while his case proceeds.
The prosecutions are the result of ongoing investigations by DSS.
Anyone with information about false or fraudulently issued passports or entry visas, or the whereabouts of the above fugitives, is encouraged to contact Diplomatic Security Service at (415) 705-1176.
Please note: Charges described in this document contain only allegations against defendants who must be presumed innocent unless and until proven guilty.
Strip Liquor Store Owners Charged with Tax EvasionRead the Press Release
LAS VEGAS, Nev. – The owners of several liquor stores on the Las Vegas Strip have been charged with federal felony tax crimes for failing to report approximately $4 million in income from their stores on their federal individual and corporate tax returns, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Ramzi Suliman and Jeffrey Nowak, are charged in a criminal indictment dated April 10, 2013, with one count of conspiracy to defraud the United States, three counts of assisting in filing false corporate tax returns, and four counts of attempting to evade and defeat tax. They have been summoned to appear for an initial hearing and arraignment on April 18, 2013, at 3:00 p.m. before U.S. Magistrate Judge Carl W. Hoffman. If convicted, they face up to five years in prison on each of the conspiracy and tax evasion counts and up to three years in prison on each false tax return count, and fines of up to $250,000 on each count.
According to the indictment, from about 2006 to present, Suliman and Nowak owned and operated three liquor stores in Las Vegas, Super Liquor South Strip at 3999 S. Las Vegas Boulevard, Super Liquor Mid Strip at 2301 S. Las Vegas Boulevard, and Super Liquor McCarran Village at 384 E. Tropicana Avenue. Suliman and Nowak allegedly diverted receipts from the stores to their own use by presenting false books and records to the corporate accountant for use in preparing corporate and individual tax returns for the businesses and the defendants.
From about 2006 to 2009, Suliman and Nowak allegedly maintained multiple sets of accounting records for the Super Liquor South Strip store, one which was accurate, and one which was false, and another which compared the two. Suliman and Nowak allegedly skimmed some of the cash they received from the Super Liquor South Strip store and agreed not to report it the IRS. Suliman and Nowak omitted the skimmed cash from the accounting records that they provided to their accountant for the preparation of their tax returns. Nowak was primarily responsible for keeping the accounting records, and Suliman was aware of and consented to the skim and occasionally made entries in the records. In total, Suliman and Nowak allegedly failed to report gross receipts and sales from the Super Liquor South Strip store of approximately $4 million for the tax years 2006 through 2009.
The case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Kathryn C. Newman.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Statement of Assistant Attorney General Bill Baer on<br /> Changes to Antitrust Division’s Carve-Out Practice Regarding Corporate Plea AgreementsRead the Press Release
Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division issued the following statement today on changes to the division’s carve-out practice regarding corporate plea agreements:
“Over the years, the Antitrust Division’s efforts to investigate and prosecute price fixing and other cartel conduct have produced outstanding results in holding both corporations and individuals accountable for their wrongdoing. We are committed to continuing these efforts and to build on the division’s past successes.
“Going forward, we are making certain changes to the Antitrust Division’s approach to corporate plea agreements. In the past, the division’s corporate plea agreements have, in appropriate circumstances, included a provision offering non-prosecution protection to those employees of the corporation who cooperate with the investigation and whose conduct does not warrant prosecution. The division excluded, or carved out, employees who were believed to be culpable. In certain circumstances, it also carved out employees who refused to cooperate with the division’s investigation, employees against whom the division was still developing evidence and employees with potentially relevant information who could not be located. The names of all carved-out employees were included in the corporate plea agreements, which were publicly filed in the district courts where the charges were brought.
“As part of a thorough review of the division’s approach to corporate dispositions, we have decided to implement two changes. The division will continue to carve out employees who we have reason to believe were involved in criminal wrongdoing and who are potential targets of our investigation. However, we will no longer carve out employees for reasons unrelated to culpability.
“The division will not include the names of carved-out employees in the plea agreement itself. Those names will instead be listed in an appendix, and we will ask the court for leave to file the appendix under seal. Absent some significant justification, it is ordinarily not appropriate to publicly identify uncharged third-party wrongdoers.
“The Antitrust Division will continue to exclude from the non-prosecution protections of corporate plea agreements any employees whose conduct may warrant prosecution. The division will continue to make these decisions on an employee-by-employee basis consistent with the evidence and the Principles of Federal Prosecution. We will continue to demand the full cooperation of anyone who seeks to benefit from the non-prosecution protection of a corporate plea agreement, and will revoke that protection for anyone who does not fully and truthfully cooperate with division investigations.”
St. Louis Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
A St. Louis man pled guilty on April 11, 2013, in federal court to being a member of a large cocaine distribution organization, the United States for the Southern District of Illinois, Stephen R. Wigginton, announced today. Mario Orduna, 46, pled guilty to Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine. He also admitted the Forfeiture Allegation contained in the Indictment.
Orduna is currently scheduled to be sentenced on July 19, 2013, in United States District Court in East St. Louis. He faces a potential sentence of ten years to life in prison, a fine of up to $5,000,000, at least 5 years of supervised release, and a $100 special assessment.
To date, twenty-nine other members of the organization have been convicted and sentenced.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Marshal Service, the Granite City Police Department, Fairmont City Police Department, Collinsville Police Department, Fairview Heights Police Department, Caseyville Police Department, Pontoon Beach Police Department, Park Hills (Missouri) Police Department, the St. Clair County Sheriff’s Department, and the Illinois State Police. This case is assigned to Assistant United States Attorney Randy G. Massey.
Springfield, Missouri Financial Advisor Nadia Cavner Pleads Guilty to Federal Interstate Stalking ChargeRead the Press Release
Memphis, TN – Nadia Cavner, 53, of Springfield, MO, pleaded guilty today to a criminal information charging her with one count of violating the federal interstate stalking statute, announced U.S. Attorney Edward L. Stanton III.
# # # #
According to the information, from July 9, 2011, until November 15, 2011, Cavner, and individuals employed by her, traveled from Springfield, MO to Memphis with the intent to injure, harass, or intimidate her daughter’s former boyfriend and his new girlfriend. These actions caused substantial emotional distress to the individuals, their families, and close acquaintances.
As stated in open court, Cavner utilized multiple means to stalk and harass the victims including making and causing others to make harassing and defamatory phone calls; leaving anonymous notes designed to harass and intimidate the victims, having the victims followed during trips; hiring people to disrupt the victims’ relationship; and paying for an associate to temporarily move to Memphis for the purpose of conducting surveillance upon the victims. In addition, Cavner sought to have electronic listening devices installed in the victims’ homes.
Cavner will be sentenced before U.S. District Judge John T. Fowlkes on Thursday, August 1, 2013, at 9:00 a.m. This case was investigated by the FBI. Assistant United States Attorney Brian K. Coleman is prosecuting this case on behalf of the government.Seattle Man Sentenced to Nine Years in Prison for Dealing High Powered Narcotic while Possessing Multiple FirearmsRead the Press Release
A Seattle man who had a home loaded with drugs, guns and cash, was sentenced today in U.S. District Court in Seattle to nine years in prison, announced U.S. Attorney Jenny A. Durkan. BERNARD AMIN MUSTAFA III, 37, was arrested April 19, 2012, when agents with a search warrant found multiple drugs, fentanyl, cocaine, methamphetamine, BZP, oxycodone and ecstasy at his Seattle home. Investigators also found more than $300,000 in cash and three firearms. One of the guns, a high powered rifle, was set in a tripod and aimed out at the front window of the home toward the street. At sentencing, U.S. District Judge Robert S. Lasnik said MUSTAFA “was a sophisticated drug dealer with deadly drugs and dangerous weapons.”
According to records filed in the case, the investigation of MUSTAFA began in early 2012 with the arrest of a street level dealer of fentanyl. MUSTAFA was identified as the dealer’s source of supply. When agents searched MUSTAFA’s home they found enough fentanyl for $200,000 worth of street sales. Fentanyl is very powerful, with users requiring only a few nanograms of the drug. Because it is usually diluted with a cutting agent before it is sold, and because those mixtures are generally inconsistent, it is a very dangerous drug on the street. Unless the product distributor competently and completely mixes the “cut” with the active ingredient, an unbalanced mixture can result, leading to overdose and death. According to DEA, the Community Epidemiology Work Group in King County reported 10 fentanyl overdose deaths in 2011.
In addition to the drugs in his home, MUSTAFA, a convicted felon, illegally possessed three firearms and body armor to protect the drugs and cash: a Remington brand .308 caliber rifle found near a safe containing money and drugs; an FNAR-brand 7.62 mm caliber rifle in the tripod on the table; and a Springfield Armory .40 caliber pistol found in the living room of the residence, next to a couch.
While MUSTAFA was incarcerated on these charges, his girlfriend was found dead from a drug overdose – fentanyl was one of the drugs in her system. The death is still being investigated by the Seattle Police. In asking the court for an 11 year sentence, prosecutors wrote: “Defendant’s criminal past has affected many people, ranging from those to whom he sold drugs, to his friends and to his family. He also placed the people closest to him in danger each time he had them in his home. The use, sale and possession of fentanyl undoubtedly contributed to the death of (his girlfriend).”
The case was investigated by the Drug Enforcement Administration and the Seattle Police Department. The case was prosecuted by Assistant United States Attorney Roger Rogoff.
Scripps Media Heir Convicted at Trial for Stealing Millions from FamilyRead the Press Release
PHILADELPHIA – An heir to the Scripps Media fortune was convicted today by a federal jury in Philadelphia for embezzling $3.6 million from members of his family to fund his lavish lifestyle, New Jersey U.S. Attorney Paul J. Fishman announced.
Michael Scripps, 36, of Detroit, was convicted of all seven counts of wire fraud in the Indictment against him in the third day of jury deliberations following a one and a half week trial. The case was prosecuted in Philadelphia by Assistant U.S. Attorneys from the U.S. Attorney’s Office for the Eastern District of Pennsylvania, supervised by the U.S. Attorney’s Office for the District of New Jersey as the former office was recused from the case.
According to the evidence at trial:
From November 2001 through October 2006, Michael Scripps persuaded his uncle and mother to transfer millions of dollars in trust funds to the Merrill Lynch Trust Co. and brokerage firm. With the assistance of Richard Gleeson, then a Merrill Lynch financial advisor in Media, Pa., Scripps used fraudulent authorizations to transfer his uncle’s and mother’s money to his own account at Merrill Lynch, resulting in $3.6 million in losses.
Gleeson awaits sentencing, having pleaded guilty to two counts of wire fraud for his participation in the scheme and testified at trial.
The jury heard testimony that Scripps used some of the ill-gotten gains to lead a playboy lifestyle, including by purchasing expensive jewelry including Tiffany earrings, a diamond ring, and Cartier necklace. He also used some of the stolen money to purchase a car for his girlfriend, four properties in New Orleans and for luxury travel across the U.S.
Each count of wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 15, 2013. Scripps could also be ordered to pay restitution to his victims as part of his sentence.
U.S. Attorney Fishman credited special agents of the Philadelphia FBI, Newtown Square Resident Agency, under the direction of Special Agent in Charge Edward J. Hanko, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Terri Marinari and L.C. Wright of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
13-166
Defense counsel: Mark Durant Esq., Philadelphia; Paul W. Broschay Esq. and Michael R. Dezsi Esq., DetroitSavannah Couple Plead Guilty ToStealing over $150,000 from the ArmyRead the Press Release
SAVANNAH, GA: BO DUKES, 29, and EMILY DUKES, 29, husband and wife from Savannah, Georgia, pled guilty on Monday before United States District Court Judge William T. Moore, Jr. to conspiring to steal over $150,000 worth of property paid for by the Army.
Evidence presented at the guilty plea hearing showed that BO DUKES, a Unit Supply Specialist in the United States Army, ordered televisions, cameras, power tools, cooper wires and other property totaling over $150,000, which he was able to fraudulently bill to the Army through the General Services Administration (GSA). BO DUKES caused the fraudulently obtained items to be shipped to his personal residence. He and his wife EMILY DUKES then pawned the items for their own personal benefit.
United States Attorney Edward J. Tarver said, “These Defendants used Bo Dukes position of trust and his authorization to enter into transactions on behalf of the United States Government to steal from the American taxpayers. Their plan was both unsophisticated and hazardous. Neither the law nor this United States Attorney’s Office can allow this type of fraud to go unpunished.”
Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit said, "We are very pleased with the guilty pleas. Stealing money during a time of war is reprehensible and we, along with our federal counterparts, will continue to do everything in our investigative power to bring those responsible to justice."
General Services Administration Inspector General Brian D. Miller said, "By working with our law enforcement partners, we were able to stop these individuals from their continuous abuse of American taxpayer money and stealing of government goods. We will remain vigilant against people who use GSA for personal gain."
BO and EMILY DUKES both face a maximum penalty of 5 years in prison and a fine of up to $250,000. A sentencing date will be set after the United States Probation Office conduct a presentence investigation.
The DUKES’ conviction arose out of a joint investigation by the General Services Administration and the Department of the Army, Criminal Investigation Command, Major Procurement Fraud Unit. Assistant United States Attorney Tania D. Groover is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547Rudolph Lee Shane, 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 10, 2013, before U.S. District Judge Richard F. Cebull, RUDOLPH LEE SHANE, SR., a 64-year-old resident of Crow Agency, was sentenced to a term of:
Probation: 5 years, with 6 months house arrest
Special Assessment: $100
Fine: $5,000
SHANE was sentenced in connection with his guilty plea to tampering with a victim.
In an Offer of Proof filed by Assistant U.S. Attorneys Marcia Hurd and Lori Harper Suek, the government stated it would have proved at trial the following:
On February 23, 2012, the Federal Bureau of Investigation received a report alleging that SHANE had harassed a victim in a pending criminal case in federal court.
On February 21, 2012, SHANE had contacted the victim who described the meeting as intimidating and stated she was concerned for her safety. She believed he wanted her to "drop charges" or change her story. The victim did not initially know who he was and had no idea how SHANE knew how to find her.
On February 22, SHANE called the victim's cell phone twice and left a message. In addition, SHANE's daughter contacted the victim at the request of SHANE. SHANE had also called the victim's mother earlier in the case and asked her to talk to the victim about dropping the charges.
When interviewed, SHANE admitted the contact and indicated he did so because he believed that the victim would take pity on the defendant in the case and "do the right thing." When asked what he was thinking by contacting the victim, SHANE reported that he thought if the victim withdrew her complaint or changed her mind, it would help the defendant.
The investigation was conducted by a cooperative effort between the Federal Bureau of Investigation and Bureau of Indian Affairs.
Robert Dean Boucher Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 8, 2013, before U.S. District Judge Sam E. Haddon, ROBERT DEAN BOUCHER was sentenced to a term of:
Prison: 135 months
Special Assessment: $100
Supervised Release: 5 years
BOUCHER was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
During January 2012, law enforcement originally became alerted to a methamphetamine distribution ring from Washington state to Great Falls.
In June 2012, law enforcement learned of an individual, Mark Abresch, who made repeated trips from Great Falls to Washington to obtain methamphetamine to re-sell in Great Falls.
On June 29, 2012, a CI (confidential informant) informed the drug task force that Abresch was returning to Great Falls from Washington with methamphetamine. The task force arranged for a controlled drug buy from Abresch near the University of Great Falls. The CI purchased methamphetamine. The CI then continued to make numerous controlled drug buys from Abresch over the next few days.
Law enforcement located Abresch's car in early July 2012, and the task force tracked this car from Great Falls to Spokane, Washington. The car stayed in Spokane for less than two hours before returning to Great Falls. Law enforcement initiated a traffic stop of the car just outside of Great Falls and they obtained two ounces of methamphetamine. Abresch, the driver of the car, told law enforcement he had traveled to Spokane to buy methamphetamine from "Bert." He had been supplied by Bert, who was identified as BOUCHER, since February or March 2012. In total, Abresch believed he had obtained and distributed approximately ten ounces of methamphetamine that he received from BOUCHER.
Abresch told law enforcement that BOUCHER provided him with a GPS system in order for Abresch to find BOUCHER's house in Spokane. Once Abresch obtained the methamphetamine from BOUCHER, Abresch would sell the methamphetamine by the gram for $100 around Great Falls. BOUCHER sold the methamphetamine to Abresch for $1,400 an ounce.
Abresch and BOUCHER also dealt methamphetamine with other individuals in Great Falls. The methamphetamine dealing continued into the fall of 2012. During the end of October 2012, detectives interviewed additional witnesses, several of which stated they had obtained methamphetamine from BOUCHER.
BOUCHER stored the methamphetamine in the hood and trunk of his car. He then divided the methamphetamine between the sellers who obtained the methamphetamine on credit. BOUCHER stayed in town at an individual's house until the money was collected. This individual would then repackage the methamphetamine into eight-ball baggies and distribute it to other sellers.
Law enforcement seized over 50 grams of pure methamphetamine in this investigation.
Abresch pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BOUCHER will likely serve all of the time imposed by the court. In the federal system, BOUCHER 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 High Intensity Drug Trafficking Area (HIDTA) Task Force - Russell County Drug Task Force.
Ricky Allen Dennis 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 11, 2013, before U.S. District Judge Richard F. Cebull, RICKY ALLEN DENNIS, a 38-year-old resident of Billings, appeared for sentencing. DENNIS was sentenced to a term of:
Prison: 73 months
Special Assessment: $600
Supervised Release: 3 years
DENNIS was sentenced for (4) counts of being a felon-in-possession of a firearm and conspiracy to commit a robbery affecting interstate commerce.
The case was prosecuted by Assistant U.S. Attorneys Marcia K. Hurd and Jessica T. Fehr. Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DENNIS will likely serve all of the time imposed by the court. In the federal system, DENNIS 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 Bureau of Alcohol, Tobacco, Firearms and Explosives.
Reno Woman Sentenced to over Six Years in Prison for Loan FraudRead the Press Release
RENO, Nev. – A woman who fraudulently obtained a $228,000 home equity loan in her father and mother-in-law’s names by forging their signature and the signatures of others, has been sentenced to 81 months in prison and ordered to pay $228,000 in restitution for her guilty pleas to identity theft and money laundering charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Tandy Anne Kertanis, 33, of Reno, Nev., was sentenced on Thursday, April 11, 2013, by U.S. District Judge Larry R. Hicks. Kertanis pleaded guilty on Aug. 20, 2012, to one count of money laundering and one count of aggravated identity theft.
According to the court records, on about June 19, 2007, Kertanis called Wells Fargo Bank and identified herself as Joann L. Kertanis and applied for a home equity loan in the names of Robert P. Kertanis and Joann L. Kertanis, her father and mother-in-law. Neither Robert nor Joann Kertanis was aware of the application, nor did they authorize Tandy Kertanis to apply for the loan. In late June 2007, Tandy Kertanis returned a package of loan documents to Wells Fargo. The documents contained the forged signatures of Joann L. Kertanis and/or Robert P. Kertanis, as well as forged signatures of a notary public and the defendant’s mother. The defendant submitted updated loan request documents on July 3, 2007, again containing the forged signatures of her father and mother-in-law, as well as the forged signature of the notary public, her mother, and a Reno attorney with whom she had consulted on a prior occasion. On about July 6, 2007, Wells Fargo Bank approved the home equity loan and electronically deposited $228,000 into the defendant’s U.S. Bank account in Reno.
On July 10, 2007, Tandy Kertanis allegedly transferred $180,000 from her U.S. Bank checking account into a money market account in the name of her husband at Linsco/Private Ledger in Reno. On July 13, 2007, Kertanis allegedly purchased a Toyota truck at Reno Toyota for $33,534, using the home equity loan monies she unlawfully obtained from Wells Fargo.
On Feb. 22, 2012, while Kertanis was awaiting trial in this case, her attorney filed a motion to continue the trial alleging that Kertanis’ young child was suffering from several serious health problems. Attached to the motion were letters from four medical specialists in Reno and California. These medical specialists were contacted and stated that the letters were false and that the young child was not suffering from any serious disease.
Kertanis is free on a personal recognizance bond and must self-report to federal prison on June 10, 2013.
The case was investigated by the FBI and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Ramona Tax Preparer Sentenced for Murder-For-Hire, Witness Tampering, Filing False Tax Returns with the IRS, Identity Theft, Money Laundering, and FraudRead the Press Release
San Diego - Former Internal Revenue Service agent-turned-tax preparer Steven Martinez was sentenced today by U.S. District Court Judge William Q. Hayes to almost 24 years in prison for defrauding clients out of more than $11 million and then plotting their murders to prevent them from testifying about the theft.
In addition to a 286-month sentence, the judge ordered Martinez to pay more than $14 million in restitution to the victims, the IRS and the California Franchise Tax Board. Judge Hayes also entered a preliminary order of forfeiture as to certain real and personal property, including an $11 million money judgment. Following Martinez’s service of his sentence, Judge Hayes placed him on five years of supervised release.
In comments at today’s hearing, Assistant U.S. Attorney Joseph Orabona argued for a significant sentence in part because Martinez meticulously planned the murders by giving a would-be assassin – who was a cooperating witness for the FBI - detailed instructions and information about each of the four victims contained in “packets.” One of the exchanges between Martinez and the cooperating witness was captured on video.
“These victims were surveilled. They were watched. Their habits were documented. It’s disturbing,” Orabona said. “This was a cool and calculating individual. He knew how the victims lived. He’s explaining it to the hit man on the video.”
Before imposing a sentence, Judge Hayes noted that the defendant did not make a heat-of-the moment decision to commit a crime. Rather, it was a long-term fraud spanning years and culminating with the carefully planned murder-for-hire plots. “Mr. Martinez in my view had some time to think about what he was doing.” He called the defendant’s actions “cold blooded.”
U.S. Attorney Laura Duffy said she was pleased with the outcome of the prosecution. “This is a case of greed so extreme that what began as serious – but not violent - white-collar crimes almost escalated to the murders of four people. Fortunately FBI intervention prevented the violence and today justice was served with a decades-long sentence. As tax day quickly approaches, this is a reminder that anyone who chooses to undermine the integrity of our tax system risks prosecution.”
FBI Special Agent in Charge, Daphne Hearn, commented, “Once the FBI became aware of Mr. Martinez’s murder-for-hire plot, FBI agents took immediate steps to disrupt this plot. In doing so, the FBI ensured that no harm would come to potential witnesses or others. I commend the efforts of the agents and prosecutors who worked tirelessly in this investigation.”
N. Dawn Mertz, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office, commented: “The activities of Steven Martinez are an example whereby tax crimes, malicious financial greed and a blatant disregard for the law can turn into potential violent criminal activity. Today’s sentencing reinforces IRS Criminal Investigation’s commitment to pursue those committing tax and financial crimes and to partner with our law enforcement community to bring justice to those who behave as if they are above the law.”
Martinez pleaded guilty on August 10, 2012, to criminal charges including murder-for-hire, witness tampering involving attempted murder, solicitation of a crime of violence, mail fraud, filing false tax returns, Social Security fraud, aggravated identity theft, and money laundering. Martinez pleaded guilty to 12-counts in a superseding indictment.
As part of his guilty plea, Martinez admitted that in late February 2012, he solicited a third party to murder four witnesses with the intent to prevent their testimony in his pending criminal tax case.
The third party contacted the San Diego division of the FBI on February 28, 2012 to report the murder-for-hire plot by Martinez and agreed to cooperate with the FBI in the investigation. According to the complaint, a subsequent meeting between the FBI’s cooperating witness and Martinez was recorded and videotaped by the FBI.
In reference to two of the murder targets, Martinez told the would-be assassin “he could make him rich for the rest of his life, $100,000 cash, if he eliminated the lady in Rancho Santa Fe and the lady in La Jolla,” according to court records. The cooperating witness said Martinez “suggested that the former employee use two different pistols for the murders and that he acquire a silencer.”
Martinez admitted in court that he tried to prevent the former clients’ testimony by offering the FBI’s cooperating witness $100,000 to murder them. He admitted he provided the third party with four written packets of detailed information about the former clients, including photos of the soon-to-be murder victims, their homes and personal information. Martinez admitted that once the murders took place, he would pay the perpetrator $40,000 in cash, followed by the remaining $60,000 in cash within 72 hours of the murders.
In addition, Martinez admitted that he filed false tax returns and defrauded his clients by stealing over $11 million in tax payments. Martinez admitted that he presented his clients with completed tax returns indicating that they owed a significant amount of tax. He requested that his clients write checks payable for the amount of taxes due and owing to an alleged client trust account (instead of directly to the IRS or the California Franchise Tax Board).
Martinez also convinced these same clients to write checks during the tax year for estimated tax payments to the same alleged client trust accounts. Rather than deposit these checks into a true trust account, Martinez admitted that he took the checks and deposited them into several nominee bank accounts. In an attempt to conceal his fraud, Martinez admitted that he filed a different set of false tax returns indicating that his clients owed little or no income tax.
Martinez admitted that he converted approximately $11 million in stolen taxpayer funds for his own personal benefit, and used them to make home improvements, purchase real estate, purchase a beach home in Mexico, pay for the use of a private airplane, make investments of more than $2 million in other entities, and make payments of more than $2 million for his personal use credit cards and loans.
As part of his fraudulent tax scheme, Martinez admitted that he committed Social Security fraud and aggravated identity theft by using the Social Security numbers of his clients without authorization when he filed the false tax returns with the IRS. Martinez admitted he committed mail fraud by mailing the false tax returns to the IRS. Martinez also admitted that he laundered approximately $2 million through nominee bank accounts for his own business and personal use.
Finally, Martinez admitted that he knowingly and intentionally filed false personal income tax returns for tax years 2004, 2005, 2006, and 2007.
DEFENDANT Criminal Case No. 11CR1445WQH Steven Martinez Age: 51 Ramona, California CHARGES THAT DEFENDANT PLED GUILTY TO:Count 4: Title 18, United States Code, Section 1341 - Mail Fraud
Maximum Penalties: 20 years of imprisonment and a fine equal to twice the gross loss caused to persons by the offenseCount7: Title 26, United States Code, Section 7206(2) - Procuring False Tax Returns
Maximum Penalties: 3 years of imprisonment and $250,000 fineCounts 21: Title 42, United States Code, Section 408(a)(8) - Social Security Fraud
Maximum Penalties: 5 years of imprisonment and $250,000 fineCounts 33: Title 18, United States Code, Section 1028A - Aggravated Identity Theft
Maximum Penalties: 2 years of imprisonment, consecutive to any other sentenceCount 47: Title 26, United States Code, Section 7206(2) - Making False Tax Returns
Maximum Penalties: 3 years of imprisonment and $250,000 fineCount 49: Title 18, United States Code, Section 1957 - Money Laundering
Maximum Penalties: 10 years of imprisonment and $250,000 fineCounts 50 through 53: Title 18, United States Code, Section 1512(a)(1)(A) - Witness Tampering
Maximum Penalties: 30 years of imprisonment and $250,000 fine per countCount 54: Title 18, United States Code, Section 1958 - Use of a Facility of Interstate Commerce in Commission of Murder-For-Hire
Maximum Penalties: 10 years of imprisonment and $250,000 fineCount 55: Title 18, United States Code, Section 373 - Solicitation of a Crime of Violence
AGENCIES
Maximum Penalties: 15 years of imprisonment and $250,000 fineInternal Revenue Service, Criminal Investigation
Federal Bureau of InvestigationQuad Cities Man Sentenced to 30 Years Imprisonment for Armed Bank RobberyRead the Press Release
DES MOINES, IA – Des Moines area real estate developer John C. Kline was sentenced to 30 months in prison for his participation in a bank fraud scheme, announced United States Attorney Nicholas A. Klinefeldt. Chief Judge James E. Gritzner also ordered Kline to serve a term of 5 years of supervised release following release from prison, pay $1,169,490.72 restitution and directed Kline to pay a $200 special assessment to the crime victims fund.
Kline pleaded guilty to committing bank fraud on January 11, 2013, in connection with a condominium development project on the south side of Des Moines, known as the Meadow Cove project, and a residential development project in Dallas County, known as the Heritage Hills project. Kline had been charged with diverting funds borrowed for those projects to pay for a variety of other items and projects. A consortium of at least twelve Iowa and Missouri banks participated in loans to the projects. Kline’s co-defendant, Randal L. Walters, was sentenced by Chief Judge Gritzner in February of 2013.
The case was investigated by the Federal Bureau of Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Producer of Fraudulent Identification Documents Pleads Guilty in Federal CourtRead the Press Release
Mario Bravo Romualdo, 27, of Mexico pleaded guilty today in U.S. District Court to document fraud, arising from his possession of devices designed for making false federal and state identification documents, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
Romualdo was arrested on October 24, 2012 while attempting to sell fraudulent identification documents including a Social Security Card and an Employment Authorization Card. He was indicted by a federal grand jury on November 29, 2012, along with co-defendants Isaias Hernandez Ramos, Juan Tello Leynes, and Maria Marquez Ramirez, who were charged with document fraud and conspiring with Bravo Romualdo to produce, transfer, and possess false identification documents, including false Social Security Cards and false Permanent Resident Cards. Charges against the co-defendants are pending.
“The production and sale of false identification documents is a threat to our national security and to the integrity of government programs,” said Acting U.S. Attorney David Rivera. “This office will remain committed to prosecuting those who commit document fraud.”
"Document fraud is an incredibly serious crime that potentially enables terrorists and other criminals to enter the United States under false pretenses," said Homeland Security Investigations New Orleans Special Agent in Charge Raymond R. Parmer Jr. "Homeland Security Investigations will aggressively investigate and seek prosecution of individuals who threaten national security by producing fraudulent government documents.” Parmer oversees a five-state area to include Tennessee, Alabama, Arkansas, Louisiana and Mississippi.
During the plea hearing, Bravo Romualdo admitted possessing document-making devices, including 17 blank cards bearing a seal of the United States Department of Justice; 54 blank cards bearing the names and emblems of various states; and a specialized card printer and other electronic equipment designed for manufacturing false identification documents. Romualdo further admitted using these devices to produce false documents, including false Permanent Resident Cards.
Romualdo is scheduled to be sentenced by Senior Judge John T. Nixon on July 26, 2013. He faces up to 15 years in prison and a fine of up to $250,000.
This case was investigated by agents with the U.S. Department of Homeland Security, Homeland Security Investigations and by the Tennessee Department of Safety and Homeland Security Identity Crimes Unit. The case is being prosecuted by Assistant United States Attorney William F. Abely.
An indictment is merely an accusation and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.
Pine Ridge Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man convicted of Sexual Abuse of a Minor was sentenced on April 8, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Benjamin Samuel Leonard, age 57, was sentenced to 30 months’ imprisonment, 5 years’ supervised release and ordered to pay $100 to the Victim Assistance Fund.
In August 2010 at Pine Ridge, Leonard engaged in a sexual act with a child under the age of 16. He pled guilty on December 26, 2012.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
People Reminded of Stiff Penalties for Violating Tax Laws as Filing Deadline ApproachesRead the Press Release
Several Ohioans have been found guilty and sentenced for violating federal tax laws over the past few months, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Denise Rocawich, Acting Special Agent in Charge of the IRS-Criminal Investigation, Cincinnati Field Office.
As the 2013 tax filing deadline approaches, these cases serve as reminders that there are civil and sometimes criminal penalties to filing erroneous tax returns.“Tax day is not fun, but the vast majority of Americans who properly report and pay their fair share need to know that we will aggressively prosecute those who shirk or flaunt their obligations,” Dettelbach said.
“With the April 15 tax deadline looming, it is important for people to have confidence that when they pay their taxes, their neighbors and competitors will do the same,” Rocawich said. “Every time someone in America cheats on their taxes, there are over 300 million victims.”
Details on a few cases over the past year:
Nelida I. Velasco of Chardon was sentenced last year to more than three years in prison for conspiracy to make false claims, making false claims, misuse of Social Security account numbers, and aggravated identity theft. A co-defendant, David T. Tufts, also of Chardon, was previously sentenced to 4 years imprisonment. Both pleaded guilty to the charges, which involved the filing of at least 35 false tax returns claiming at least $155,000 in false refund claims using stolen identification information of the 35 purported claimants.
Aesha Johnson of Beachwood was sentenced last year to 21 months in prison for making false income tax refund claims totaling approximately $84,244 for tax clients.
John W. Hufgard of Bath was sentenced in February to 18 months imprisonment for attempting to evade approximately $397,659 of his personal income tax liabilities for 2007 through 2009. The taxes were owed on unreported income Hufgard received from selling manufacturing racks to metal scrap dealers for cash. Hufgard pleaded guilty to the charges in November 2012.
Steven R. Hinz, Heather L. English, Patricia A. Polk, and William E. Phillips, III were sentenced in earlier this year prison for conspiracy and making false claims for income tax refunds. Led by Hinz, the conspiracy involved filing at least 17 false tax returns claiming refunds totaling more than $3 million based on fictitious amounts of tax withholdings under the so-called “OID process.” All four defendants pleaded guilty in October 2012. Hinz, formerly of Youngstown, was sentenced to nine years in prison, while English was sentenced to 2 1/2 years.
Brandon M. Mace of Canton pleaded guilty in February to two counts of making false claims for income tax funds totaling nearly $5.5 million. Mace prepared and filed false tax returns containing those claims while incarcerated in Ohio on state charges. Mace is scheduled to be sentenced in May.
Participant in $100 Million Medicare Fraud Sentenced in Manhattan Federal Court to 135 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that HERAYER BAGHOUMIAN was sentenced today to 135 months in prison for his role in a $100 million massive Medicare fraud scheme. BAGHOUMIAN pled guilty to racketeering in March 2012, and was sentenced today by U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentence, Herayer Baghoumian becomes the latest defendant who took part in this widespread fraud to be punished for his conduct. At a time when the Medicare trust fund is under great strain, his conduct is particularly egregious.”
According to the Indictment and other documents filed in this case:
From 2006 through 2010, BAGHOUMIAN and others participated in a nationwide Medicare scam that fraudulently billed Medicare for over $100 million. As part of the conspiracy, the defendant created dozens of “phantom clinic” health care providers that existed only on paper, had no doctors, and treated no patients. The scheme involved at least 118 fraudulent Medicare providers that were located in approximately 25 states, and that submitted fraudulent bills for at least approximately $100 million, and received approximately $35.7 million in reimbursements from Medicare.
In addition to his prison term, Judge Gardephe sentenced BAGHOUMIAN, 57, of Burbank, California, to three years of supervised release, and imposed a $100 special assessment fee. Judge Gardephe also ordered BAGHOUMIAN to forfeit $472,545, and property he acquired with the proceeds of the crime, including two homes in California and a Maserati.
Of the 28 defendants charged in U.S. v. Armen Kazarian, et al., 16 have now been sentenced. Six others have pled guilty and are awaiting sentencing. Charges have been dismissed against one defendant, and remain pending against five defendants. The charges pending against the five outstanding defendants are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Mr. Bharara thanked the Federal Bureau of Investigation, the New York City Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Department of Health and Human Services for their work in the investigation.
The prosecution is being handled by the Office’s Organized Crime Unit. Assistant U.S. U.S. Attorneys Jennifer Burns and Harris Fischman are in charge of the prosecution.
Oxycodone Traffickers Face Federal ChargesRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces the return of an indictment charging Abdul Cunningham and Jana Harris-Cunningham with five counts of wire fraud, five counts of filing a false claim with the Internal Revenue Service, four counts of theft of government property, and five counts of aggravated identity theft. If convicted, each faces a maximum penalty of 20 years in federal prison for each wire fraud count, five years in federal prison for each false claim count, ten years in federal prison for each theft of government property count, and a consecutive sentence of two years for each aggravated identity theft count. The indictment also notifies Cunningham and Harris-Cunningham that the United States intends to seek a money judgment in the amount of $560,731.00, the traceable proceeds of the alleged offenses. Cunningham and Harris-Cunningham were arrested on a criminal complaint on March 11, 2013, and March 28, 2013, respectively.
According to the indictment, Cunningham and Harris-Cunningham engaged in a scheme to defraud the U.S. Treasury Department by filing fraudulent income tax returns and negotiating fraudulent tax refunds using stolen identities, commonly referred to as Stolen Identity Refund Fraud (SIRF). It is alleged that, as part of their scheme, they used the stolen identities, along with false and fraudulent wage and withholding information, to prepare, and to cause to be prepared, fraudulent federal income tax returns falsely claiming refunds. After filing the false returns, they accepted, negotiated, and “swiped” reloadable debit cards, knowing the cards contained fraudulently obtained income tax refunds. It is alleged that Cunningham and Harris-Cunningham filed 145 false claims with the IRS for tax years 2010 and 2011. These false claims totaled $816,790. Of that amount, the IRS paid out $560,731.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and the Rockledge Police Department. It will be prosecuted by Assistant United States Attorney David Haas.
Owner of Marijuana Dispensary Sentenced to Prison for Drug DealingRead the Press Release
A 32–year-old Seattle woman who co-owned and operated two “medical marijuana” dispensaries, was sentenced today in U.S. District Court in Seattle to 42 months in prison for conspiracy to distribute marijuana and conspiracy to engage in money laundering, announced U.S. Attorney Jenny A. Durkan. JING JING MO, 32, was a co-owner of Seattle Cannabis Cooperative with locations in the Rainier Valley and Greenwood. She and her partner, Craig Douglas Dieffenbach, 61, pleaded guilty in August 2012. Both admitted selling marijuana for profit under the guise of running a cooperative for sick people. At sentencing, Chief U.S. District Judge Marsha J. Pechman said the defendants “abused the public trust” when they distributed marijuana to people without medical authorizations and in large amounts. “They did it for greed,” Chief Judge Pechman said.
In her plea agreement, Mo admitted offering to sell 25 pounds of marijuana for distribution across the country. The couple also admitted laundering funds from the sale of marijuana to pay to modify homes for marijuana production. The pair were also tied in to other drug traffickers including one distributing substantial amounts of ecstasy. The couple admitted operating the marijuana stores for profit, selling pound quantities of marijuana to people who presented no medical authorization card.
In asking for a 42 month sentence, prosecutors told the court, “Ms. Mo was not engaged in some selfless attempt to help truly sick people access marijuana for medical purposes. Instead, she was simply dealing drugs, for profit, in blatant violation of both the letter, and the spirit, of state and federal law. Calling her operation a medical marijuana dispensary was little more than a cynical attempt to hide her activities behind a fiction of quasi-legality.”
MO is a citizen of Singapore who likely will be deported following her prison term.
The case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Vince Lombardi.
Osnin Isaac Urbina-maradiaga Sentenced for Illegal Use of A Social Security NumberRead the Press Release
OSNIN ISAAC URBINA-MARADIAGA, age 25, a citizen of Honduras, was sentenced today in federal court by U. S. District Judge Lance M. Africk, announced U. S. Attorney Dana Boente. URBINA was sentenced to approximately five months imprisonment. In addition to the term of imprisonment, Judge Africk ordered that URBINA be placed on one year of supervised release following his term of imprisonment, during which time the defendant will be under federal supervision and risk an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on January 24, 2013, URBINA pled guilty to a one-count indictment admitting that on October 19, 2012, he falsely represented that a Social Security number had been assigned to him by the Commissioner of Social Security with intent to deceive, for the purpose of obtaining a Louisiana Identification Card at a Louisiana Office of Motor Vehicles located in St. John the Baptist Parish. URBINA also admitted that he was illegally present in the United States.
This case was investigated by United States Immigration and Customs Enforcement - Enforcement and Removal Operations and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Ogden Pleads Guilty to Wire, Securities Fraud; Agreement Includes Recommendation for 10-Year Sentence; Millions in RestitutionRead the Press Release
SALT LAKE CITY – Wayne Reed Ogden, age 48, of Koosharem, Utah, charged with wire and securities fraud in connection with a Ponzi scheme involving real estate, pleaded guilty Friday morning in federal court to one count of wire fraud and one count of securities fraud. In a separate case tried to a federal jury earlier this year, Ogden was convicted of mail and wire fraud in connection with another real estate Ponzi scheme. As part of the plea agreement executed Friday, federal prosecutors and Ogden agreed to recommend 120-month concurrent sentences in both cases. Ogden also admitted to owing restitution of more than $3 million in each case.
Ogden admitted, as a part of the plea agreement, that from September 2005 to September 2006, he devised and executed a scheme to defraud investors. Throughout the scheme, Ogden was on parole with the State of Utah stemming from a 1998 conviction in connection with a third real estate Ponzi scheme. As a part of his parole restrictions, Ogden was prohibited from participating in and soliciting investment funds or any activities related to real property investments. Ogden admitted that, despite these restrictions, he participated in investment activities involving real property and misled his parole officer into believing he was in compliance with conditions of his parole.
Ogden admitted to recruiting his brother, co-defendant Terry Ogden, age 47, of Mesquite, Nevada, to form Paradigm Acceptance, LLC and directed him to open a business bank account for the company. Ogden admitted he operated, controlled, and managed Paradigm throughout the fraud period and that he misrepresented to his parole officer that he worked for Terry and that he had limited responsibilities with the company, knowing that his parole officer would have taken immediate steps to terminate his involvement with the company if he knew the truth.
Ogden admitted creating a business plan that included finding financially distressed homeowners; negotiating their personal debts and/or mortgages; using investor money to pay off negotiated personal debts and/or mortgages; securing refinancing for homeowners; and requiring a fixed fee of $1,500 plus a percentage of money saved by virtue of Paradigm’s negotiation efforts. Throughout the fraud period, Ogden, or other individuals acting at his direction, solicited investors to invest in the business plan, promising returns ranging from 20 percent over a two to four-week period to as much as 100 percent over several days. Investors also were told that their investments involved little or no risk because they were secured by homeowner properties.
Ogden admitted that rather than using investor funds to pay off homeowner debt, he used those funds to make Ponzi payments to prior investors, pay business expenses, and pay personal expenses for himself and his brother, Terry. Ogden admitted that beginning in May 2006, Paradigm began receiving complaints from investors who were owed returns or were demanding the return of their principal. In response to the complaints, Ogden and his brother issued checks to investors knowing they would be returned for insufficient funds until new investor money was received. They also provided investors with false excuses, blaming the delayed returns on bank errors, failures in the fedwire system, and delayed loan refinancing. Despite these complaints and problems, Ogden and his brother continued to solicit new investments into Paradigm, knowing that investor funds would be diverted and used primarily to make Ponzi payments to prior investors.
The case against Terry Ogden, who was also charged in the indictment, is pending.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City. The FBI, SEC, Utah Attorney General’s Office, Weber County Attorney’s Office, Utah Division of Real Estate, Utah Division of Securities, Utah Insurance Fraud Division, and the Utah Department of Corrections contributed to the investigation.
Oakton Dentist Sentenced for Narcotics Distribution, Health Care Fraud & Identity TheftRead the Press Release
ALEXANDRIA, Va. – Hamada Makarita, 51, of Oakton, Va. was sentenced to 25 months in prison, followed by a term of supervised release for using his position as a dentist to illegally distribute prescription medication and for using the identity of another dentist to fraudulently bill an insurance company for more than $160,000 in claims.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the sentencing by United States District Judge Leonie M. Brinkema.
On November 16, 2012, after a multi-week trial, Makarita was found guilty by jury on multiple counts to include conspiracy, health care fraud, aggravated identity theft, and five counts of dispensing controlled substances.
According to court records and evidence at trial, Makarita owns and operates a dental practice in Oakton, Va., and advertised online at http://www.fixasmile.com/. From about 2007 to 2012, Makarita illegally distributed and dispensed prescription medicine (Fentanyl, Vicodin, and Valium) to patients, employees, and at least one girlfriend, all without a legitimate dental purpose and beyond the bounds of a dental practice. Makarita directed those who received the prescriptions he issued to return to him some or all the prescribed medicine. On multiple occasions, Makarita would distribute prescription pills to patients and at least one girlfriend in social settings and for sexual purposes. On one occasion, the defendant took explicit photographs of an unconscious girlfriend who was under the influence of alcohol and Vicodin.
In addition, the jury found that Makarita provided more than $160,000 in services to his family members and billed them to an insurance provider in violation of the provider’s contract. He billed the services under the name of another dentist who did not practice in Makarita’s office at that time. Makarita received more than $91,000 in reimbursement from the provider for these fraudulent claims.
The investigation was conducted by the FBI’s Washington Field Office. Special Assistant U.S. Attorneys Mazen M. Basrawi and Danya E. Atiyeh and Assistant U.S. Attorney Gene Rossi prosecuted the case on behalf of the United States.
This case is part of an Organized Crime and Drug Enforcement Task Force (“OCDETF”) investigation (Operation “Cotton Candy”), which has been focusing on the illegal distribution by numerous doctors, pharmacists, nurses, and patients of pain medication. This OCDETF matter has secured more than 200 drug-trafficking convictions.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov/ or on https://pcl.uscourts.gov/.North Carolina Man Charged in Odometer Tampering SchemeRead the Press Release
In an information made public today, the United States charged Francis Marimo, of Raleigh, N.C., with two counts of odometer tampering.
The information, filed in U.S. District Court for the Eastern District of North Carolina on April 10, 2013, alleges that from 2008 through 2012, Marimo fraudulently caused odometers in used motor vehicles to be altered to reflect false, low mileages. According to the Information, Marimo purchased used vehicles primarily through online advertisements, replaced the existing odometers with odometers showing lower mileages, and then sold the vehicles to consumers while representing the low mileages as accurate. One of the vehicles described in the Information was “rolled back” more than 100,000 miles.
“Consumers rely on mileage readings to determine the value and safety of used vehicles,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “Victims of odometer fraud lose thousands of dollars on what can turn out to be unreliable and potentially dangerous vehicles. We will continue to prosecute these schemes wherever we find them.”
The North Carolina Division of Motor Vehicles and the National Highway Traffic Safety Administration Office of Odometer Fraud Investigation investigated this case. The case is being prosecuted by the Justice Department’s Consumer Protection Branch.
The charges in the information are only allegations, and the defendant is presumed innocent unless and until proven guilty.
New Jersey Man Sentenced for Child ExploitationRead the Press Release
PHILADELPHIA – Patrick Mergen, 40, of Sewell, NJ, was sentenced yesterday to 25 years in prison for using a child to produce child pornography. He pleaded guilty on November 20, 2012. In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered 10 years of supervised release, computer monitoring, no unsupervised contact with minors, and sex counseling.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Michael Levy.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Haven Man Charged with Tax Fraud OffensesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned a 15-count indictment charging WILLIE E. McKAY, 38, of New Haven, with aiding and assisting in the preparation and filing of false federal income tax returns. The indictment was returned on April 9 and unsealed today.
According to the indictment, McKAY, the pastor of The Love Temple Church, Inc. in West Haven, provided individual tax preparation services to members of his church and others. In the course of preparing numerous individual federal income tax returns for clients in 2007 and 2008, McKAY improperly reduced the amount of tax due in a variety of ways, including falsely reporting wages and withholdings, and falsely claiming deductions for state taxes, personal property taxes, real estate taxes, mortgage interest payments, qualified mortgage insurance payments, charitable contributions, and business expenses.
The indictment further alleges that McKAY altered wage and withholding amounts appearing on the W-2 forms he received from his clients.
The indictment charges McKAY with 15 counts of aiding and assisting in the preparation and filing of false federal income tax returns, a charge that carries a maximum term of imprisonment of three years and fine of up to $250,000 on each count.
McKAY appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport, pleaded not guilty to the charges and was released on a $150,000 bond.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is assigned to U.S. District Judge Janet C. Hall in New Haven.This matter is being investigated by the Internal Revenue Service – Criminal Investigation and the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]More Defendants Sentenced for Roles in Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Three defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced today, in federal court in Wichita Falls, by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
William Corey Peeler, 33, was sentenced to 162 months in federal prison; Cleveland Wilson, 52, was sentenced to 160 months in federal prison; and Nancy Arlene Freeman, 39, was sentenced to 65 months in federal prison.
Peeler and Wilson each pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and to manufacture methamphetamine. Freeman pleaded guilty to one count of possession with intent to distribute methamphetamine.
This is the second group of convicted defendants to be sentenced in this case in which 28 of the 30 defendants charged in the conspiracy have entered guilty pleas. Late last month, Randall Wayne Ezzell, 46, was sentenced to 240 months in federal prison; Jason Alan Haney, aka “A.J. Haney,” 27, was sentenced to 235 months in federal prison; and Troy Radford, 36, was sentenced to 24 months in federal prison. The cases against two of the defendants have not been resolved. All 30 of the defendants charged in the superseding indictment that was returned by a federal grand jury in October 2012, are in custody.
According to documents filed in the case, Peeler admitted that on numerous occasions between August 2011 and September 4, 2012, he sold quantities of methamphetamine, which defendant Steve Ysasaga supplied, to customers in the Wichita Falls area. On one occasion, according to Peeler, Ysasaga brought nine ounces of methamphetamine, a digital scale and small plastic bags to Peeler’s apartment where Ysasaga weighed and repackaged it. Ysasaga gave Peeler one gram of the methamphetamine for allowing him to use his apartment. Peeler also admitted that on various occasions during the conspiracy he accompanied Ysasaga to assist him in collecting drug debts by intimidating the debtors.
Wilson admitted that on multiple occasions between August 2011 and August 2012, he manufactured, or cooked, anhydrous methamphetamine for Ysasaga. Ysasaga supplied the pseudoephedrine tablets and Wilson obtained the rest of the necessary ingredients to manufacture the methamphetamine.
When officers with the Wichita Falls Police Department executed a traffic stop on Freeman’s vehicle in a convenience store parking lot on May 8, 2012, a drug-detecting canine alerted to the presence of narcotics on a backpack that she had placed in the back seat. Officers search the backpack and located 10 small plastic bags containing methamphetamine and two digital scales. She admitted that she possessed the methamphetamine to distribute it at a later time.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Mike Kurt Chilinski Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on April 11, 2013, before Senior U.S. District Judge Charles C. Lovell, MIKE KURT CHILINSKI, a 52-year-old resident of Jefferson City, appeared for sentencing. CHILINSKI was sentenced to a term of:
Prison: 18 months, consecutive to previous sentence
Special Assessment: $100
Supervised Release: 4 years
CHILINSKI was sentenced in connection with his guilty plea to manufacture of marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On October 12, 2011, Jefferson County Sheriff's Office deputies served a search warrant regarding animal cruelty charges at CHILINSKI's Jefferson County residence. During that search warrant execution, the deputies located marijuana plants growing in the residence and on the property. They called the Southwest Montana Drug Task Force. Members of the Southwest Montana Drug Task Force then obtained a search warrant for the marijuana plants. Law enforcement recovered 216 marijuana plants and approximately 1,000 grams of processed marijuana.
On October 13, 2011, the deputies discovered more marijuana plants on the property. The SWMDTF prepared a second search warrant covering all four parcels of CHILINSKI's property for marijuana plants. On October 14, 2011, law enforcement seized an additional 120 marijuana plants.
On October 13, 2011, when interviewed, CHILINSKI stated he purchased marijuana from another caregiver who charged him $260 per ounce of marijuana. The approximate 1,000 grams were for his new patients and to make new edibles. CHILINSKI then sold and gave away marijuana to potential patients. CHILINSKI grew the plants from January through October 2011.
In the past, CHILINSKI may have had as many as 30 patients at one time. CHILINSKI planned to reapply to be a caregiver but had not done the paperwork. He also needed to get new patients and was in the process of getting new patients.
Samples from the marijuana plants as well as the 1,000 grams of marijuana listed above were submitted to the DEA Laboratory for analysis. The result of that analysis found that the items submitted for testing contained a detectable amount of marijuana, a Schedule I controlled substance.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that CHILINSKI will likely serve all of the time imposed by the court. In the federal system, CHILINSKI does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Jefferson County Sheriff's Office, the Montana Division of Criminal Investigation, and the Southwest Montana Drug Task Force.
Medford Man Charged in Bank BurglaryRead the Press Release
Boston - A Medford man was charged late yesterday in federal court with bank burglary.
Terry K. Leigh, 43 was charged in a criminal complaint with bank burglary. On Aug. 11, 2012, at approximately 9:45 p.m., agents were conducting surveillance at the Bank of America located at 465 Columbus Avenue, Boston. According to the complaint affidavit, agents observed an individual, later identified as Leigh, enter the bank’s ATM, wearing a dark green hat, a fake beard and carrying a dark green messenger-style bag. While inside the ATM, agents witnessed Leigh use a tool to pry the ATM’s internal access door open and enter the ATM’s internal room and close the door behind him. According to the affidavit, as the agents approached the bank’s ATM they observed Leigh exit the ATM’s internal room and walk up a rear stairway. Leigh was located and arrested on the roof of the building with the green messenger-style bag, which contained saw blades, gloves, a fake beard and a grinder saw.
A detention hearing is scheduled before United States Magistrate Judge Marianne B. Bowler on April 18, 2013.The statutory maximum penalty is up to 20 years in prison, to be followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz, Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office and Boston Police Commissioner Edward Davis made the announcement. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maxton Man Sentenced for Drug TraffickingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court Thursday, United States District Judge Terrence W. Boyle sentenced MICHAEL DEAN JONES, 42ofMaxton, North Carolinato 120 months imprisonment followed by 4 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on February 15, 2012. On October 11, 2012, JONES pleaded guilty to Distribution of 50 Grams or More of Cocaine Base (Crack), in violation of Title 21, United States Code, Section 841.
According to the evidence presented in Court, on April 8, 2010, JONES sold 54.9 grams of powder cocaine to a confidential informant. On June 9, 2010, JONES again sold crack cocaine to a confidential informant with a weight of about 53.7 grams. All told, JONES was held responsible for distributing over 100 grams of cocaine and over 80 grams of crack cocaine.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina State Bureau of Investigation, and the Robeson County Sheriff’s Office. Assistant United States Attorney Rudy E. Renfer prosecuted the case for the government.
Maryland Man Pleads Guilty to Charges in Series of Home Break-ins-Admits Entering Three Northwest Washington Homes Within A Month, Including One on Christmas-Read the Press Release
WASHINGTON - Tyrone Edmondson, 40, of Temple Hills, Md., has pled guilty to charges stemming from a series of recent break-ins of Northwest Washington homes, including one on Christmas, U.S. Attorney Ronald C. Machen Jr. announced today.
Edmondson pled guilty on April 11, 2013 in the Superior Court of the District of Columbia to three counts of attempted second-degree burglary. The Honorable Stuart G. Nash scheduled sentencing for June 5, 2013. Edmondson faces a statutory maximum of five years of incarceration on each of the three charges.
According to the government’s evidence, on Dec. 25, 2012, at about 8 p.m., Edmondson entered a home in the 800 block of Varnum Street NW through an unlocked rear door. He took computers, a video gaming system, a camera, shoes, jeans, and a jacket.
On Jan. 21, 2013, at about 3:15 p.m., Edmondson entered a home in the 1500 block of Upshur Street NW through an unlocked rear sliding glass door. He took a computer, jewelry, phone and coat. Finally, on Jan. 22, 2013, at about 3:30 p.m., he entered a home in the 1500 block of Crittenden Street NW, once again through an unlocked rear door. This time, he took a television, a Kindle, and loose change. The owner of this home was upstairs at the time, and after hearing noises in her living room, called the Metropolitan Police Department (MPD). Police responded, and found Edmondson in an alley near the house, with the victim’s property.
In announcing the plea, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also praised the efforts of those who worked on the matter from the U.S. Attorney’s Office, including Paralegal Assistant Todd McClelland, Intelligence Specialist Sharon Johnson, and Assistant U.S. Attorney Philip A. Selden, who investigated and prosecuted the case.
13-132Manhattan U.S. Attorney Announces Additional Charges Against 12 Members of Bronx Drug Trafficking Crews for Three Murders, A Drug-Related Shooting, and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), today announced additional charges against 12 alleged members of drug trafficking crews based in the vicinity of Allerton Avenue Co-ops and the Parkside Houses in the Bronx, New York. Eleven of the 12 defendants are charged with conspiracy to distribute crack cocaine, and possessing, brandishing and discharging firearms in connection with, and in furtherance of, the charged crack cocaine conspiracy. In connection with the crack cocaine conspiracy, ARMANI CUMMINGS is charged with the January 2010 murder of Lequan Jones, and the June 2010 murder of Carl Copeland, both of whom were shot in the Bronx. BRYAN RHODES is also charged with Copeland’s murder. JOSE MUNOZ is charged with the December 2011 murder of Shameek Young, who was shot in the Bronx. In addition, JESSIE MCCOLLUM is charged with a non-fatal, drug-related shooting in the Bronx on that same day. Finally, MUNOZ is also charged with conspiracy to commit Hobbs Act robbery, participation in a Hobbs Act robbery, and his use of a firearm in connection with, and in furtherance of, it.
Nine of the defendants are already in custody in connection with charges contained in previous Indictments related to this prosecution, which led to the arrests of 63 individuals and was the result of a coordinated operation involving federal, state, and local law enforcement officers. Two of the defendants were released on bail following their arrests in December 2011. One of the defendants remains at-large. The defendants will be arraigned today in Manhattan federal court before U.S. District Judge Victor Marrero on the charges in the Superseding Indictment at 2:00 p.m.
Manhattan U.S. Attorney Preet Bharara said: “The charges in this indictment once again put the nexus between drugs, guns, and fatal violence into stark relief. Through patient and painstaking work, the investigators and prosecutors targeted violent drug operations, charged drug crimes at first and eventually were able to charge drug-related murders, shootings and other violent crimes, which might have gone otherwise unaddressed. The law enforcement drumbeat will continue until we clean up the streets of our communities once and for all.”
FBI Assistant Director-in-Charge George Venizelos said: “The link between drug trafficking and gun violence could not be better illustrated than with this investigation. The defendants, initially charged with narcotics offenses, now stand charged with crimes of violence including three fatal shootings. Policing drug trafficking reduces the threat of gun violence. That is the reason the FBI and the NYPD work these cases.”
NYPD Commissioner Raymond W. Kelly said: “The charges announced today make clear the nexus between illicit drugs and violence, including murder, as well as the risk faced by police officers who work undercover to provide a modicum of safety to law abiding residents of public housing. I commend the NYPD detectives and the prosecutors in U.S. Attorney’s office for their thorough investigation.”
As alleged in the Superseding Indictment returned Wednesday and other documents filed in Manhattan federal court:
From 2006 through February 20, 2013, undercover officers with the NYPD made hundreds of purchases of “crack” cocaine from drug dealers in the Allerton Avenue Co-ops and Parkside Houses. During the buys, officers were able to purchase significant street level quantities of crack. In addition, members of the drug trafficking organization used firearms, threats of violence, and violence to secure and enforce their drug territory. This included the 2010 murder of Lequan Jones, the 2010 murder of Carl Copeland, and the 2011 murder of Shameek Young, all of which occurred in the Bronx. During the incident involving the fatal shooting of Young, an innocent bystander was shot and critically wounded.
A chart containing the ages, residency information, and charges against the defendants, as well as the maximum penalties they face is attached.
Mr. Bharara praised the outstanding investigative work of the FBI and the NYPD. He added that the investigation is continuing.
The prosecution of this case is being overseen by the Office’s Violent Crimes Unit. Assistant United States Attorneys Timothy D. Sini and Hadassa Waxman are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Armani Cummings, et al. S7 Indictment
Mandan Man Sentenced for Child Pornography ChargesRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 12, 2013, Harold Fetzer, 68, Mandan, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of sexual exploitation of minors and a charge of possession of materials involving the sexual exploitation of minors. Fetzer pleaded guilty to the charges on Nov. 14, 2012.
Judge Hovland sentenced Fetzer to serve 24 years and five months in federal prison, to be followed by a lifetime of supervised release. Fetzer was also ordered to register as a sex offender for life. Fetzer was ordered to pay restitution of $9,208.01 and to pay a $200 special assessment to the Crime Victim’s Fund.
From Jan. 2009 until July 2012 Fetzer was found to have produced and possessed visual depictions of minors engaging in sexually explicit conduct. Fetzer was in possession of 1,216 still images and 274 videos which depicted child pornography.
This investigation was conducted by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, and the Mandan Police Department, with the assistance of the Morton County
State’s Attorney’s Office.This case was brought as a 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 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.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Man Who Fired Shots in Apartment Parking Lot Sentenced to Ten Years in Prison for Gun Crime and ID TheftRead the Press Release
A felon with a history of domestic violence, burglary and illegal weapons possession, was sentenced today in U.S. District Court in Seattle to ten years in prison, announced U.S. Attorney Jenny A. Durkan. PISETH P. MAM, 34, was arrested in August 2012, a few days after a shooting incident at an apartment complex in Tukwila, Washington. No one was injured in the shooting, but video of the scene showed many adults and children in the area at risk. At sentencing, Chief U.S. District Judge Marsha J. Pechman said, “Anyone who would fire (a handgun) into a car in a crowded parking lot over a perceived slight is a dangerous person.”
According to records filed in the case, on August 12, 2012, police in Tukwila responded to a report of shots fired at the Ridge Springs Apartments. Witnesses described the driver of a white Honda firing gunshots in the parking lot before speeding away. A witness who was standing near the car when the driver started firing, was able to identify the shooter as MAM. A few days later, MAM was arrested at the Emerald Queen Casino. His car was impounded in the parking garage. When investigators with a court authorized search warrant went through the car, they found a stolen 9mm Beretta Pistol. MAM was prohibited from possessing firearms due to prior convictions for domestic violence assault (Washington 2004), burglary (Washington 2004) and possession of an assault weapon (California 2007). Also in the car, investigators found dozens of pieces of stolen mail. The investigation determined that MAM had used a credit card stolen from the mail to illegally make purchases at Home Depot. The conviction for aggravated identity theft means MAM faces a mandatory minimum of two year sentence to run consecutive with the sentence for the gun crime.
In asking for a significant sentence, prosecutors noted the danger of firing the gun in an apartment parking lot. “The video shows several people, many who were small children, in the area of the shooting,” prosecutors wrote in their sentencing memo.
The case was investigated by the Tukwila Police Department, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecuting Attorney specially designated to prosecute gun crimes in federal court.
Lexington Man Sentenced to 41 Months for Attempting to Evade Paying Taxes and Wire FraudRead the Press Release
LEXINGTON, KY - A Lexington business man who admitted he used hundreds of thousands of dollars of his clients’ money to purchase sports collector cards, was sentenced today to 41 months in prison.
U.S. District Judge Karl S. Forester sentenced 46- year-old David Byron for wire fraud and attempting to evade paying income taxes. Judge Forester also ordered Byron to pay $688,530.89 in restitution to the victims of his crime.
Byron previously admitted that from 2006 through April 2010 he devised a scheme to defraud at least seven clients of his bookkeeping business. According to the plea agreement, Byron told them he would facilitate payment of their taxes owed to the Internal Revenue Service (IRS) and other state and federal government agencies. In reality, Byron wired money from their bank accounts to his bank account and then used the money to supplement his lifestyle and purchased $350,000 worth of baseball and sports collector cards.
Under federal law, Byron must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for three years.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, and Paul R. Johnson, Special Agent in Charge, United States Secret Service, jointly made the announcement today after the sentencing.
The investigation was conducted by the Internal Revenue Service and the United States Secret Service. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Kevin Dicken.
Lexington Man Sentenced to 103 Months for Receiving Child PornographyRead the Press Release
LEXINGTON, KY - A Lexington man, who admitted downloading child pornography images over the internet, was sentenced to 103 months in federal prison.
U.S. District Judge Karen Caldwell sentenced 33-year-old Jason Daniel Meade Thursday for receiving child pornography. In addition to the 103-month term, Judge Caldwell also ordered Meade to be under the supervision of the U.S. Probation Office, for the rest of his life.
According to court documents, Meade downloaded hundreds of images of minors engaged in sexually explicit conduct. Meade’s sentence was enhanced because many of these images contained minors under the age of 12 and some were sadistic and violent in nature.
In September 2011, undercover law enforcement agents identified a computer in Lexington that was offering child pornography for downloading. Authorities traced the location of the computer to a locked room that Meade kept at his mother’s residence. During the execution of a search warrant at the residence, law enforcement found the images of child pornography on two computers and a CD.
Under federal law, Meade must serve at least 85 percent of his prison sentence and must register as a sex offender when he is released.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI, and Jack Conway, Kentucky Attorney General, jointly announced the sentence today.
The investigation was conducted by the Kentucky Attorney General’s Office and the FBI.
Lawyer Pleads Guilty in Manhattan Federal Court to Participating in Massive Immigration Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Raymond W. Kelly, the Commissioner of the Police Department for the City of New York (“NYPD”), and Patricia A. Menges, the Director of the New York Asylum Office of the United States Citizenship and Immigration Services (“USCIS”), announced that attorney JOHN LIN pled guilty today in Manhattan federal court to one count of conspiring to commit immigration fraud. LIN is the eighth lawyer charged for his participation in a massive immigration fraud scheme involving thousands of fraudulent asylum applications that were allegedly submitted by at least 10 law firms in the New York City area. He pled guilty before U.S. Magistrate Judge Andrew J. Peck.
Manhattan U.S. Attorney Preet Bharara said: “For those seeking asylum from persecution in their native countries, United States immigration laws provide a vital escape hatch. Not only did John Lin abuse those laws and violate his duties as an officer of the court, but he also made it harder for legitimate asylum-seekers. We will continue to work with our law enforcement partners to identify and prosecute those who violate this country’s immigration laws.”
FBI Assistant Director-in-Charge George Venizelos: “Lin, a lawyer and officer of the court, violated the ethical obligations of his profession while breaking the law. Assisting others with their fraudulent asylum claims enabled them to enter the country under false pretenses. The scheme exploited a program designed to provide safe haven for real victims of persecution.”
NYPD Commissioner Raymond W. Kelly said: “It’s bad enough when new arrivals to this country are victimized by common criminals, but despicable when a member of the bar dishonors his sworn duties to exploit a system designed to protect some of the most vulnerable among us.”
USCIS New York Asylum Office Director Patricia A. Menges stated: “Asylum is a humanitarian protection that represents the best of American values. USCIS is committed to ensuring that criminals like Mr. Lin aren’t allowed to abuse this protection for personal gain. We appreciate the efforts of U.S. Attorney Bharara’s office, the NYPD, the FBI and USCIS’s Fraud Detection and National Security Program in helping us protect the integrity of this important program.”
According to the Information and other documents filed in this case:
LIN was an attorney at a law office located in New York City (the “Law Firm”). As part of the scheme, the defendant and his co-conspirators profited by creating and submitting asylum applications containing false stories of persecution, purportedly suffered by Chinese alien applicants.
The law firm made up stories of persecution that often followed one of three fact patterns: (a) forced abortions performed pursuant to China’s family planning policy; (b) persecution based on the client’s belief in Christianity; or (c) political or ideological persecution, typically for membership in China’s Democratic Party or followers of Falun Gong. Since 2006, the Law Firm has submitted more than 500 asylum applications.
LIN, 53, of Staten Island, New York, faces a maximum sentence of five years in prison and three years of supervised release. He is scheduled to be sentenced by U.S. District Court Judge Sidney H. Stein, on August 12, 2013 at 4:00 pm.
Mr. Bharara praised the investigative work of the FBI, NYPD, and USCIS.
The prosecution is part of Operation Fiction Writer, a joint investigation led by the United States Attorney’s Office for the Southern District, the FBI, the NYPD, and the USCIS. To date, 28 defendants, including eight lawyers, have been charged with participating in nine separate but overlapping immigration fraud schemes in New York City. Of the 28 defendants charged, two defendants – LIN and attorney Meng Fei Yu – have pled guilty. Charges against the remaining 26 defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
This case is being handled by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris Fischman and Robert Boone are in charge of the prosecution.
U.S. v. John Lin Information
Last Two Convicted in Houston Armored Car RobberiesRead the Press Release
HOUSTON – Walter Keitric Freeman, of Houston, and Allen Moore Jr., of Dallas, have entered pleas of guilty in relation to the robbery and attempted robbery of two armored cars operating in and around Houston, United States Attorney Kenneth Magidson announced today.
Freeman, 23, and Moore, 46, each pleaded guilty today to one count of discharging of a firearm during the commission of a crime of violence. Freeman also pleaded to one count of conspiracy to interfere with commerce by robbery, while Moore pleaded to a count of interference with commerce by robbery. Three others also charged in the case - Hendrick Dwayne Lynn, 30, Chad Eric Haywood, 24, and Corinthians Lachell Phillips, 28, all of Houston – had previously also entered guilty pleas for their roles in the crimes. Lynn and Haywood were both convicted of two counts of interference with commerce by robbery, while Lynn and Phillips also admitted to the conspiracy charge. Haywood also pleaded guilty to a count of discharging a firearm during a crime of violence.
Loomis Armored US Inc., who operated the trucks during the alleged robbery and robbery attempt, maintains offices throughout the United States and was engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
Lynn, Haywood and Moore were charged with their involvement in the Aug. 7, 2009, attempted robbery of a Loomis armored truck at the Bank of America at 3704 Old Spanish Trail in Houston. Lynn drove to the location, at which time Haywood and Moore, who were armed with Glock pistols, jumped out and shot at the guard. The guard has since recovered. The guard had been filling an ATM machine, but it was already locked and no money was obtained.
The second incident occurred on Nov. 21, 2009, at which time another guard was shot. On that date, Lynn drove Freeman and Haywood to Senor Check Cashing Store #2 located at 5950 S. Gessner Rd. in Houston. Freeman fired his pistol and shot in the direction of the guard. The guard was hit, but survived. On that same date, Phillips drove a second vehicle to the Gessner location and, following the robbery, switched vehicles with Haywood, Freeman and Lynn.
The conspiracy charge and the convictions for interference with commerce by robbery both carry as possible punishment up to 20 years in prison as well as a possible $250,000 fine. Haywood, Moore and Freeman will also face at least an additional 10 years in federal prison for discharging a firearm during the commission of the robberies which must be served consecutively to the other terms imposed.
U.S. District Judge Gray H. Miller, who accepted the guilty pleas, has set sentencing for Freeman and Moore for July 10, whiel the remaining defendants are set for July 12, 2013. With the exception of Phillips, all will remain in custody pending that hearing.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Kirk Jenkins Indicted for Violations of the Federal Controlled Substances Act and Federal Gun Control ActRead the Press Release
KIRK JENKINS, age 39, a resident of New Sarpy, Louisiana, was charged today in a 3-count indictment by a Federal Grand Jury for distribution of heroin and illegal possession of firearms, announced U. S. Attorney Dana J. Boente.
According to the indictment, on January 14, 2013, and March 6, 2013, JENKINS distributed quantities of heroin. The indictment further charges that on March 14, 2013, JENKINS possessed a High Point .40 caliber, semiautomatic pistol and a Ruger .380 caliber semi-automatic pistol. According to the indictment, JENKINS was prohibited from possessing the firearms because he had a previous felony conviction in 2002 for possession of heroin in Orleans Parish Criminal District Court. Under federal law it is illegal for anyone who has been previously convicted of a felony to be in possession of any firearm or ammunition.
If convicted on the heroin distribution, Counts 1 and 2 of the indictment, JENKINS faces a maximum term of imprisonment of 20 years, a $1,000,000 fine, a minimum of 3 years supervised release, and $100 special assessment fee. If convicted for being a felon in possession of a firearm, Count 3 of the indictment, JENKINS faces a maximum term of imprisonment of 10 years, a $250,000 fine, 3 years supervised release, and $100 special assessment fee.
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 case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisiana State Police and the St. Charles Parish Sheriff’s Office. The case is being prosecuted by Assistant U. S. Attorney Nolan D. Paige.
(Download Indictment )