Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 27 February 2013
Somali Pirates Convicted for Attack of the USS AshlandRead the Press Release
NORFOLK, Va. – Mohamed Ali Said,a/k/a Maxamad Cali Saciid; Mohamed Abdi Jama, a/k/a Mohammed Abdi Jamah; Abdicasiis Cabaase, a/k/a Ahmed Mahomood; Abdirazaq Abshir Osman, a/k/a Abdirasaq Abshir; and Mohamed Farah, a/k/a Mohamed Farraah Hassan, were found guilty by a federal jury of engaging in piracy and committing other offenses pertaining to the attack on the Navy ship, the USS Ashland.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and George Venizelos, Assistant Director in Charge of the FBI's New York Field Office, made the announcement after the verdicts were accepted by United States District Judge Raymond A. Jackson.
The five men are scheduled to be sentenced on July 1st and July 2nd, 2013. The maximum sentence for the convictions are as follows: Conspiracy to commit hostage taking carries a maximum sentence of life in prison; Conspiracy to commit kidnapping, carries a maximum sentence of life in prison; Conspiracy to perform act of violence against persons on a vessel carries a maximum sentence of 20 years in prison; Conspiracy involving firearm and a crime of violence carries a maximum sentence of 20 years in prison; Piracy under the Law of Nations carries a maximum sentence of life in prison; Attack to plunder vessel carries a maximum sentence of 10 years in prison; Assault with a dangerous weapon on federal officers and employees carries a maximum sentence of 20 years in prison; Act of violence against persons on a vessel carries a maximum sentence of 20 years in prison; and Use/Possession of firearm during crime of violence carries a mandatory minimum of 10 years in prison and a maximum of life in prison if convicted of one count. A second or subsequent conviction adds an additional 25 years, making the prison term a minimum mandatory 35 years.
“These men were pirates – plain and simple,” said U.S. Attorney MacBride. “They attacked a ship hoping to hold it ransom for millions of dollars. Few crimes are older than piracy on the high seas, and today’s verdict shows that the United States takes it very seriously.”
Assistant Director Venizelos said, “These defendants are headed where they belong: to federal prison. Let this send a clear message of deterrence to anyone who threatens those who traverse the high seas. I commend U.S. Attorney MacBride and the U.S. Navy for their diligence in the investigation and prosecution of this case.”
Said,Jama, Cabaase, Osman, and Farah were charged in a second superseding indictment that was filed on August 8, 2012. According to court records and evidence at trial, they attacked the USS Ashland on April 10, 2010, and three of the defendants, Mohamed Ali Said, Mohamed Abdi Jama and Abdicasiis Cabaase, had previously gone to sea in February 2010 for purposes of capturing another vessel but were instead intercepted by the HMS Chatham of the Royal Navy.
This investigation was conducted by the FBI and the Naval Criminal Investigative Service. The prosecution is being handled by Assistant U.S. Attorneys Benjamin L. Hatch and Joseph DePadilla, from the U.S. Attorney’s Office for the Eastern District of Virginia, and Trial Attorney Jerome Teresinski of the National Security Division of the Department of Justice.
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.usdoj.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 http://pacer.uspci.uscourts.gov.Smithfield Man Convicted of Federal Drug ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday, Calvin Dwight MITCHELL, 27, of Smithfield, North Carolina, was convicted for his role in a drug trafficking conspiracy as well as distributing cocaine.
On August 8, 2012, a Federal Grand Jury returned a Criminal Indictment that charged one count of conspiring to distribute and possess with the intent to distribute cocaine in violation of Title 21, United States Code, Section 841(a)(1) and one count of distributing cocaine in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code Section 2, on May 24, 2012. On February 26, 2013, after a two-day trial, a jury found MITCHELL guilty of both counts. Based on these convictions, MITCHELL faces up to 60 years in prison.
The evidence in the case demonstrated that from at least March 2001, up to and including May 24, 2012, MITCHELL and at least two other individuals conspired to distribute cocaine. In his statement, MITCHELL admitted that he had obtained approximately 80 kilograms of crack cocaine from his sources of supply for re-distribution. During the investigation, a controlled buy of cocaine was conducted from MITCHELL which was recorded with an audio/video device. In addition, the evidence established that, upon his arrest, MITCHELL confessed to being a drug dealer and named approximately two other co-conspirators with whom he had been trafficking crack cocaine.
Investigation of this case was conducted by the Smithfield Police Department, the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Skokie Business Owner Charged with Tax Evasion for Allegedly Hiding Funds in Secret Offshore Account with Swiss Bank UBSRead the Press Release
CHICAGO — The owner of a cemetery monument business in Skokie was charged with federal tax evasion for allegedly failing to report all of his income, including money he held in a secret offshore financial account with UBS, a global financial services firm headquartered in Switzerland. The defendant, PETER TROOST, was charged in a felony information filed late yesterday in U.S. District Court.
Troost, 78, of Skokie, owns and operates Troost Memorials, a closely-held company that designs and sells cemetery monuments and gravestones. The business is located in a strip mall that Troost owns at 9853 Gross Point Rd., Skokie, and he owns another strip mall located at 1816-44 Arlington Heights Rd., in Arlington Heights. The defendant is not involved with Peter Troost Monument Company, of Hillside, which is a different company from Troost Memorials.
Troost will be arraigned in U.S. District Court on a date yet to be determined.
Troost is the first taxpayer charged in Federal Court in Chicago in connection with an ongoing investigation of U.S. taxpayer clients of UBS and other overseas banks that hid foreign accounts from the Internal Revenue Service. In February 2009, UBS entered into a deferred prosecution agreement with the United States, admitting that it helped taxpayers hide accounts from the IRS. As part of the agreement, UBS provided the government with the identities of, and account information for, certain customers of UBS’ U.S. cross-border banking business.
According to the charging document, Troost maintained at least one offshore account with UBS, which he managed with the assistance of a UBS personal banker based on the island of Jersey.
In 2007, Troost received gross income of at least $647,040, and owed federal income tax of at least $212,503, the charge states. Troost allegedly attempted to evade payment of at least $193,641 of that income tax by maintaining a secret Swiss account with UBS, to which he transferred income earned in the United States and also earned additional interest income in that account.
On his federal income tax returns for 2007-09, Troost allegedly stated that his total income was $80,271.35 in 2007; $60,802.37 in 2008; and $211,256.86 in 2009, when he knew that his total income was actually greater than those amounts in each of those years. In addition, Troost allegedly stated on his returns for each of those years that he did not have an interest in a financial account in a foreign country, when, in fact, he knew he maintained the offshore UBS account.
The charge was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
“With the April tax deadline looming, we encourage taxpayers to think of the serious consequences, including civil and criminal penalties, for willfully presenting false information on their federal tax returns. All taxpayers must honor their obligation to report all of their income and pay all of the taxes they owe,” Mr. Lee said.
Tax evasion carries a maximum penalty of five years in prison and a $250,000 fine. In addition, a defendant convicted of tax offenses faces mandatory costs of prosecution and remains civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. Federal tax law requires U.S. taxpayers pay taxes on all income earned worldwide. Taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. A deliberate failure to file a Report of Foreign Bank and Financial Accounts (FBAR) with the U.S. Treasury Department can result in a penalty of up to 50 percent of the amount in the account at the time of the violation. If convicted, the Court must determine a reasonable sentence to be imposed under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Brian Havey.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
Six Arrested in San Fernando Valley-Based Tax Fraud Scheme That Used Stolen Identities to Seek More Than $19 Million in Tax RefundsRead the Press Release
LOS ANGELES – Authorities this morning arrested six people linked to a large-scale tax fraud scheme that allegedly used stolen identities to fraudulently file more than 2,500 income tax returns that sought over $19 million in fraudulent tax refunds.
The arrests by special agents with IRS - Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) are the result of “Operation National Treasure,” an eight-month investigation into a ring that allegedly obtained nearly $10 million from the IRS.
The six arrested this morning are among eight defendants named in a 132-count indictment that was filed Monday in United States District Court. The eight defendants allegedly operated a scheme that started in 2010 with the theft of personal identifying information, such as driver’s license and Social Security numbers. Armed with this data, members of the conspiracy allegedly submitted income tax returns to the IRS under the names of the identity theft victims. Members of the conspiracy allegedly established mailing addresses, which were used to receive the refunds sent through the U.S. Mail as United States Treasury checks. According to the indictment, the defendants took the fraudulently obtained checks to various “check cashers,” who took their own “cuts” before providing cash to the defendants.
“Identity theft is one of the nation’s fastest growing crimes, and it impacts more and more Americans every year,” said United States Attorney André Birotte Jr. “This Los Angeles-based crime ring is alleged to have combined identity theft with tax fraud to create an intrusive and sophisticated scheme designed to victimize more than 1,800 individuals and to defraud the United States Government out of millions of dollars.”
Richard Weber, Chief of IRS - Criminal Investigation, stated: “These individuals demonstrated a blatant disregard for the integrity of the United States tax system and caused immeasurable hardship to innocent victims. IRS - Criminal Investigation remains committed to the pursuit of identity theft and, together with our law enforcement partners and the United States Attorney’s Office, we will hold those who engage in similar conduct accountable.”
Those taken into custody this morning are:
Ashot Karapetian, 47, of North Hollywood;Suren “Sonny” Gambaryan, 33, of North Hollywood;
Artak “Max” Berberyan, 33, of Van Nuys;
Vigen “Vic” Tsaturyan, 47, of Sun Valley;
Armen “Roman” Berberyan, 33, of Van Nuys; and
Arman Zargaryan, 30, of Granada Hills.
These defendants are expected to be arraigned on the indictment this afternoon in federal court in Santa Ana, where this case will be litigated.
Additionally, two defendants named in the indictment are currently being sought be authorities. They are:
Akop “Jack” Kantrdzyan, 33, of Sylmar; and
David Samsonyan, also known as “Little Guy,” 31, of Winnetka.
According to the indictment, members of the scheme obtained 1,844 stolen identities. Many of the stolen identities came from retired individuals and residents of homeless shelters, some of whom had not filed federal income tax returns in years. In an effort to conceal their activities, the indictment alleges that the conspirators used coded language to refer to Treasury checks, referred to each other by nickname, and used false home addresses on their own driver’s licenses and other identity documents, and used third-party “straw buyers” to purchase property for the defendants’ own use.
The indictment specifically alleges that members of the conspiracy filed at least 2,977 false federal income tax returns (Forms 1040) with the IRS that fraudulently claimed a total of $19,324,632 in refunds. The IRS paid out approximately $9,952,077 based on the false and fraudulently filed 1040 Form tax returns.
“Today’s arrests are a clear warning that anyone who steals the identities of innocent taxpayers to file fraudulent income tax returns for personal profit will be aggressively pursued, investigated and prosecuted,” said Claude Arnold, Special Agent in Charge of HSI Los Angeles. “These crimes are pure theft, and they victimize us all. HSI will continue to use its unique investigative authorities to identify and dismantle these harmful schemes.”
The indictment contains charges of conspiracy, theft of government money, mail fraud, money laundering, aggravated identity theft, cashing government checks with forged signatures. All eight defendants are charged in the conspiracy count, and each are charged in various mail fraud counts. If convicted, each defendant would face a statutory maximum penalty of at least 45 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
In addition to the six defendants named in the tax fraud case who were arrested this morning, authorities took into custody another two individuals on unrelated charges. Those also arrested this morning are:
Armine Nazaryan, 41, of North Hollywood, who was indicted on charges of making false statements to HSI agents; and
Spartak Karapetian, 23, of North Hollywood, the son of Ashot Karpetian, who was arrested on suspicion of being a felon in possession of a firearm.
Operation National Treasure was an investigation conducted by IRS - Criminal Investigation and HSI, which received substantial assistance from the Los Angeles Police Department.
Release No. 13-027
Simon Guilty PleaRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux announced that INGRID J. SIMON, age 49, of Baton Rouge, pled guilty today before U.S. District Judge James J. Brady to using interstate facilities in aid of racketeering (bribery), in violation of Title 18, United States Code, Section 1952. SIMON faces up to five years in prison and a $250,000 fine. The sentencing date has not been set.
SIMON’s conviction is based on her taking and soliciting cash bribes on approximately thirty (30) occasions while working as a clerk at the Baton Rouge City Court from 2007 through 2010. During today’s hearing, SIMON admitted that she would take and solicit cash in exchange for causing traffic matters to be dismissed. As part of the scheme, SIMON would cause the City Court computer records to falsely reflect that the matters had been dismissed at the request of the prosecutor.
U.S. Attorney Cazayoux stated, “Our office, together with our federal, state, and local partners, will continue to aggressively and tenaciously root out public corruption wherever found. Our citizens deserve a criminal justice system based on the merits alone, free from the inequality and injustice that comes from corruption. Our local and state courts are full of many honest employees whose good work should not be overshadowed by such corruption.”
This investigation of SIMON was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as the Senior Deputy Chief of the Criminal Division.
Ruidoso Man Sentenced to Probation and Fined $2,500 for Trespassing on a National Wildlife Refuge During Oryx HuntRead the Press Release
ALBUQUERQUE – Kenneth Espinosa, 46, of Ruidoso, N.M., was sentenced this morning to a year of probation and ordered to pay a $2,500 fine for trespassing on the San Andres National Wildlife Refuge. Espinosa’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Nicholas E. Chavez, Special Agent in Charge of the Southwest Region, U.S. Fish and Wildlife Service Office of Law Enforcement.
Espinosa and John Hughes, 51, also of Ruidoso, were separately charged with trespassing on National Wildlife Refuge System land, a misdemeanor offense, in Dec. 2010. According to the criminal complaints filed in those cases, Espinosa, Hughes and James Gladin, a 53-year old Georgia resident, unlawfully entered onto land that is part of the National Wildlife Refuge System on Jan. 7, 2006. Espinosa was convicted of this offense after a one-day bench trial on Dec. 14, 2011.
According to the evidence at trial, on Jan. 7, 2006, Hughes, the owner of Elite Outfitters, a Ruidoso-based company specializing in guided big-game hunting expeditions, and Espinosa, a guide employed by Elite Outfitters, were guiding Gladin on an Oryx hunting trip on the White Sands Missile Range when they entered the San Andres National Wildlife Refuge. Although the three men had been advised by officials that the Refuge was a closed area, they nevertheless entered the Refuge and parked their vehicle within the Refuge’s eastern boundary near Oñate Peak, located approximately 23 miles north of U.S. Highway 70 along the San Andres Mountains. During their expedition, Gladin killed a bull Oryx.
On Feb. 23, 2011, Hughes entered a guilty plea to the criminal complaint and was sentenced to five years of probation and fined $2,500. Gladin, 53, who was cited by the U.S. Fish and Wildlife Service, paid a $525 fine and forfeited the bull Oryx he had killed during the hunt.
The San Andres National Wildlife Refuge was established on Jan. 22, 1941, for the conservation and development of natural wildlife resources. It currently provides the best habitat for desert bighorn sheep in the state of New Mexico. “Our national wildlife refuges were established to help conserve important and sensitive species and habitat,” said Special Agent in Charge Nicolas E. Chavez of the U.S. Fish and Wildlife Service's Office of Law Enforcement Southwest Region. “Refuges are a national treasure, and willful illegal trespass is a serious matter.”
This case was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office and was investigated by the U.S. Fish and Wildlife Service.
The U.S. Fish and Wildlife Service is the principal Federal agency responsible for conserving, protecting and enhancing fish, wildlife and plants and their habitats for the continuing benefit of the American people. The Service manages the 95-million-acre National Wildlife Refuge System, which encompasses 545 national wildlife refuges, thousands of small wetlands and other special management areas. It also operates 69 national fish hatcheries, 64 fishery resources offices and 81 ecological services field stations. The Service enforces federal wildlife laws, administers the Endangered Species Act, manages migratory bird populations, restores nationally significant fisheries, conserves and restores wildlife habitat such as wetlands, and helps foreign and Native American tribal governments with their conservation efforts. It also oversees the Federal Assistance program, which distributes hundreds of millions of dollars in excise taxes on fishing and hunting equipment to state fish and wildlife agencies. For more information on its work and the people who make it happen, visit www.fws.gov. Connect with its Facebook page at www.facebook.com/usfws, follow its tweets at www.twitter.com/usfwshq, watch its YouTube Channel at http://www.youtube.com/usfws and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq.
Rosebud Woman Indicted for Assault and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury and Child Abuse.
Kelcey Andrews, age 21, was indicted by a federal grand jury on February 13, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Andrews is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Andrews was released on bond pending trial. Trial has not been set.
Rocky Point, N.M., Woman Sentenced to Prison for DWI-Related Involuntary Manslaughter and Assault ConvictionRead the Press Release
ALBUQUERQUE –Adrienne Alexandra Skeets, 24, an enrolled member of the Navajo Nation who resides in Rocky Point, N.M., was sentenced to 33 months in prison followed by three years of supervised release for her conviction on involuntary manslaughter and assault charges. Skeets also was ordered to pay $5,754.70 in restitution to the victims of her offenses.
U.S. Attorney Kenneth J. Gonzales said that Skeets was convicted by guilty plea of three felony offenses arising out of a driving while intoxicated incident that resulted in the death of a Navajo man and serious injuries to another Navajo man and a Navajo woman. She entered a guilty plea to one count of involuntary manslaughter and two counts of assault resulting in serious bodily injury on Oct. 12, 2012.
In entering her guilty plea, Skeets admitted that on Jan. 21, 2012, she was driving while under the influence of alcohol in the vicinity of Manuelito, N.M., which is located on the Navajo Indian Reservation, when she crashed her vehicle. One of Skeet’s three passengers was fatally injured when he was ejected from the vehicle and died at the scene. The other two passengers sustained serious injuries that required medical attention.
The case was investigated by the Crownpoint Division of the Navajo Nation Department of Public Safety, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Ringleader of Firearms Conspiracy Convicted in TexasRead the Press Release
St. Thomas, USVI – A ringleader of a firearms conspiracy involving more than 30 firearms, six of which were seized from crime scenes in the territory, was found guilty in Texas, United States Attorney Ronald W. Sharpe announced today.
On February 19, Tyrone Reid, 22, was found guilty of a conspiracy involving numerous co-defendants who lied to federal firearms dealers in the purchase of firearms, announced United States Attorney Kenneth Magidson of the Southern District of Texas. The Houston federal jury returned its verdict after three days of trial and approximately two hours of deliberation.
“The conviction of this firearms trafficker would not have occurred without the outstanding inter-agency cooperation by members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the Virgin Islands Police Department,” U.S. Attorney Sharpe said. “Indeed, the conviction of Reid will send a message to all in the Virgin Islands and beyond that illegal firearms trafficking will not be tolerated. I commend not only my colleagues in the United States Attorney’s Office for the Southern District of Texas for their substantial efforts in the prosecution of this case, but all of the Special Agents and Officers of ATF, HSI and VIPD for their coordinated efforts that made this prosecution a success. My office will continue to work with our federal and local law enforcement partners to do all that we can to stem the illicit flow of firearms into the Virgin Islands.”
Evidence presented at trial demonstrated that Reid would induce others to claim that they were the actual buyers of the firearms, even though Reid supplied the money and immediately took possession from the buyers. Testimony revealed that none of the purported buyers kept any of the more than 30 firearms they purchased, many of which were later found at crime scenes, both in the continental United States and Virgin Islands. Of the seven firearms seized in the Virgin Islands, six were seized from crime scenes, including a homicide. Two firearms also were found at New Jersey crime scenes, including an aggravated armed robbery.
According to the evidence presented at trial, Western Union receipts sent from the Virgin Islands to the continental United States reflected more than $60,000 in payments received by Reid. Three of the firearms were recovered by agents in a search at the home of one of Reid's associates, who also was linked
to money sent from the Virgin Islands to Reid in Houston.According to U.S. Attorney Magidson, Reid's grandmother traveled to Houston for the trial and testified that Reid sent guns to her in the Virgin Islands. Reid then took the stand on his own behalf and called his grandmother a liar.
Reid’s sentencing is scheduled for May 14, 2013 in Houston, Texas. He faces a maximum penalty of 20 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the Virgin Islands Police Department.
Rapid City Man Pleads Guilty to Escape from CustodyRead the Press Release
United States Attorney Brendan V. Johnson announced that Eric Ladeaux, age 24, of Rapid City, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on February 14, 2013 and pled guilty to a charge of Escape from Custody. The maximum penalty upon conviction is 5 years' imprisonment and/or $250,000 fine.
In September 2012, Ladeaux left Community Alternatives of the Black Hills, where he was serving the remainder of a federal sentence, and did not return as required. The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and a sentencing date was set for May 20, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Philadelphia Man Sentenced to 12 Months in Prison for Role in Forging U.S. Postal Service Money OrdersRead the Press Release
TRENTON, N.J. – A Philadelphia man was sentenced today to one year and one day in prison for his role in a conspiracy to forge U.S. Postal Service money orders, U.S. Attorney Paul J. Fishman announced.
Yacouba Magadji, 36, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an Information charging him with one count of conspiracy to falsely and materially alter money orders. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Magadji and others allegedly agreed to buy U.S. Postal Service money orders for small amounts and then alter them to show a higher face value. Magadji met three times with buyers who were actually confidential informants. At each meeting, Magadji sold the confidential informant 10 money orders with an apparent face value of $1,000. Each of the money orders had been purchased for a much smaller amount, and then altered.
In addition to the prison term, Judge Cooper sentenced Magadji to three years of supervised release and ordered him to pay restitution of $392,646.
Fishman credited inspectors of the U.S. Postal Inspection Service, Newark, under the direction of Acting Inspector in Charge Maria Kelokates,n with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Charlton A. Rugg of the Economic Crimes Unit in Newark.
13-096
Defense counsel: Pasquale F. Giannetta Esq., of Wayne, N.J.
Pawtucket Felon Sentenced to 10 Years in Federal Prison for Possession of A Machine Gun, AmmunitionRead the Press Release
PROVIDENCE, R.I. – Isaiah Gasperini, 30, of Pawtucket, was sentenced today in federal court in Providence to 132 months and one day in federal prison for being in possession of an unregistered machine gun and ammunition, and for violating the terms of supervised release following a lengthy federal prison sentence on a previous federal firearm conviction, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
Gasperini was sentenced today by U.S. District Court Chief Judge Mary M. Lisi to serve 120 months in federal prison on his most recent conviction for possession of a machine gun and being a felon in possession of ammunition, to be followed by a consecutive sentence of 12 months and one day in federal prison for violating the terms of supervised release for a 2003 conviction on a firearm charge.
In 2003, Gasperini was sentenced to 110 months in federal prison, to be followed by 3 years of supervised release for being a felon in possession of a firearm. Gasperini was on supervised release at the time of his most recent in June 2012.
He pleaded guilty to the most recent charges on November 29, 2012.
According to information presented to the court, at approximately 3 A.M., on June 12, 2012, Providence Police received calls from a residential neighborhood of repeated gun fire. As an unmarked police vehicle approached the area, an officer witnessed a vehicle leaving the area and failing to stop at a stop sign. When the officer attempted to stop the vehicle, it sped up and traveled onto Rte. 95. The vehicle came to a stop several minutes later when it attempted to exit Rte. 95 in Pawtucket and crashed into a truck.
As the officer approached the vehicle, Gasperini fled on foot, but was quickly apprehended and arrested following a brief struggle. Additional officers responded to the area and recovered a loaded 9mm machine gun a short distance from the vehicle, and more than 120 rounds of ammunition, duct tape, gloves and a ski mask from inside the vehicle.
The matter was investigated by Providence Police with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
Contact: 401-709-5357
[email protected]Owners of Miami Home Health Companies Sentenced to Prison<br /> in $48 Million Health Care Fraud SchemeRead the Press Release
The owners and operators of two Miami health care agencies were sentenced to nine years and more than four years in prison today, respectively, and ordered to pay millions in restitution for their participation in a $48 million home health Medicare fraud scheme that billed for unnecessary home health care and therapy services.
The sentences, imposed in federal court in the Southern District of Florida, were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
U.S. District Judge Frederico A. Moreno sentenced Rogelio Rodriguez, 43, and Raymond Aday, 48, both of the Miami-Dade area, to 108 months and 51 months in prison, respectively. In addition to the prison term, Judge Moreno sentenced Rodriguez to pay $33 million in restitution, and Aday to pay $2.1 million in restitution. Both defendants were also sentenced to serve three years of supervised release and pay a $100,000 fine. In December 2012, each pleaded guilty to one count of conspiracy to commit health care fraud.
According to court documents, Rodriguez was the owner of both Caring Nurse Home Health Corp. and Good Quality Home Health Inc., and Aday was a manager at Caring Nurse and owner of Good Quality.
According to plea documents, Rodriguez and Aday conspired with patient recruiters for the purpose of billing the Medicare program for unnecessary home health care and therapy services. Rodriguez, Aday and their co-conspirators paid kickbacks and bribes to patient recruiters. In return, recruiters provided patients to Caring Nurse and Good Quality, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Rodriguez and Aday used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which both Rodriguez and Aday knew was in violation of federal criminal laws.
According to court documents, nurses and office staff at Caring Nurse and Good Quality falsified patient files to make it appear the Medicare beneficiaries qualified for services they did not. Rodriguez admitted to knowing that these files were falsified so the Medicare program could be billed for medically unnecessary therapy and home health related services.
From approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or were not provided. According to court documents, Medicare paid approximately $33 million for these fraudulent claims.
This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owners of Miami Home Health Companies Sentenced to Prison in $48 Million Health Care Fraud SchemeRead the Press Release
The owners and operators of two Miami health care agencies were sentenced to nine years and more than four years in prison today, respectively, and ordered to pay millions in restitution for their participation in a $48 million home health Medicare fraud scheme that billed for unnecessary home health care and therapy services.
The sentences, imposed in federal court in the Southern District of Florida, were announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
U.S. District Judge Frederico A. Moreno sentenced Rogelio Rodriguez, 43, and Raymond Aday, 48, both of the Miami-Dade area, to 108 months and 51 months in prison, respectively. In addition to the prison term, Judge Moreno sentenced Rodriguez to pay $33 million in restitution, and Aday to pay $2.1 million in restitution. Both defendants were also sentenced to serve three years of supervised release and pay a $100,000 fine. In December 2012, each pleaded guilty to one count of conspiracy to commit health care fraud.
According to court documents, Rodriguez was the owner of both Caring Nurse Home Health Corp. and Good Quality Home Health Inc., and Aday was a manager at Caring Nurse and owner of Good Quality.
According to plea documents, Rodriguez and Aday conspired with patient recruiters for the purpose of billing the Medicare program for unnecessary home health care and therapy services. Rodriguez, Aday and their co-conspirators paid kickbacks and bribes to patient recruiters. In return, recruiters provided patients to Caring Nurse and Good Quality, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Rodriguez and Aday used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which both Rodriguez and Aday knew was in violation of federal criminal laws.
According to court documents, nurses and office staff at Caring Nurse and Good Quality falsified patient files to make it appear the Medicare beneficiaries qualified for services they did not. Rodriguez admitted to knowing that these files were falsified so the Medicare program could be billed for medically unnecessary therapy and home health related services.
From approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or were not provided. According to court documents, Medicare paid approximately $33 million for these fraudulent claims.
This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Omaha Man Pleads Guilty to Conspiracy to Defraud the United States in Collection of Income TaxesRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 27, 2013, an Information was filed in United States District Court for the District of Nebraska charging Michael D. Haffke age 50 of Omaha Nebraska, with one count of conspiracy to defraud the United States in violation of Title 18, United States Code, Section 371. The maximum penalty for the offense is five years imprisonment, a $250,000 fine, and three years of supervised release. Haffke appeared before United States District Court Judge Joseph F. Bataillon for arraignment on February 27, 2013 and entered a plea of guilty to the conspiracy charge. Sentencing has been set for May 31, 2013.
According to the Information, from January 1, 2000, through on or about December 31, 2007, Haffke participated in a conspiracy with fraudulent tax planners and others which was designed to hide or remove his name from income producing assets for the purpose of evading personal tax liabilities. As part of the conspiracy, Haffke created in excess of 40 nominee entities purporting to claim ownership of assets that were actually owned and controlled by Haffke. A limited partnership called The Rock Place was created and the partnership purported to lease equipment, real estate and improvements from the nominee entities for the purpose of artificially increasing costs in order to reduce income of the partnership which would have been attributed to Haffke for tax purposes. However, monies from these purported lease payments were deposited into nominee bank accounts in Colorado and the funds were ultimately distributed to Haffke for his own personal use. As a further part of this scheme, Haffke did not file any personal tax returns during the years 2003 through 2008. The IRS determined the tax loss associated with the scheme was $422,350.00.
In 2012, Haffke did file personal tax returns with the IRS for tax years 2003 through 2007. As part of the plea agreement, Haffke has agreed to work with the IRS to determine what additional taxes might be due and owing and to satisfy those tax liabilities.
This case was investigated by the Internal Revenue Service Criminal Investigation Division. Sybil Smith, Special Agent in Charge of the Internal Revenue Service CID, stated, “Placing income and property in the names of nominee corporations to conceal the true facts from the IRS is not tax planning; it’s criminal activity.”
Nixa Woman Sentenced for Counterfeit Check, Mail Theft, Identity Theft ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nixa, Mo., woman has been sentenced in federal court for participating in a conspiracy to create and cash more than $134,000 in counterfeit checks in a three-state area. The scheme involved stealing mail from businesses in Missouri, Arkansas and Oklahoma in order to create counterfeit business checks, then using stolen identities to cash the counterfeit checks.
Lisa Strait-Destefano, 39, of Nixa, was sentenced by U.S. District Judge Richard E. Dorr on Monday, Feb. 25, 2013 to five years and seven months in federal prison without parole. The court also ordered Strait-Destefano to pay $76,295 in restitution.
Strait-Destefano pleaded guilty on Dec. 20, 2011 to conspiracy, bank fraud and aggravated identity theft. Strait-Destefano and co-defendant Derrick Haggard, also known as "Disco," 35, of Nixa, led the conspiracy to create counterfeit checks using original checks and other material that the group stole from private mailboxes in Missouri, Arkansas and Oklahoma. During the time of the conspiracy, the group was successfully able to pass $61,335 in counterfeit checks at financial institutions in Missouri, Arkansas and Oklahoma. The group unsuccessfully attempted to pass an additional $73,111 in counterfeit checks.
On Jan. 13, 2012, Haggard was convicted at trial of all 27 counts charging him with leading a conspiracy to commit bank fraud, create and cash counterfeit checks and steal mail from July 1 to Oct. 25, 2010. He was sentenced on July 31, 2012, to 18 years in federal prison without parole. The court also ordered Haggard to pay $76,295 in restitution, for which he is jointly and severally liable with Strait-Destefano.
Derrick Haggard recruited individuals, including co-defendant Dietrich Haggard, also known as "D-Ball," 31, of St. Robert, Mo., to steal mail from private mailboxes. Dietrich Haggard, along with others associated with the scheme, primarily stole mail from business locations, looking for mail which contained original checks so that the original checks could be counterfeited. They provided those checks to Derrick Haggard and Strait-Destefano, who created the counterfeit checks.
Derrick Haggard recruited persons to take the counterfeit checks to financial institutions or commercial establishments and attempt to cash them. Strait-Destefano directed Derrick Haggard and others as to which businesses to approach, based upon her experiences in the banking industry. Strait-Destefano and Derrick Haggard provided the check passers with false identification documents, which used the identity of real persons without their permission to match the names placed on the counterfeit checks.
Dietrich Haggard was sentenced to three years in federal prison without parole after pleading guilty to his role in the conspiracy.
Strait-Destefano is the eighth and final defendant to be sentenced in this case. Co-defendant Zachary Skinner, 25, of Springfield, Mo., was sentenced to 17 months in federal prison after pleading guilty to his role in the conspiracy. Co-defendant Paul Douglas, Jr., 45, of Ft. Leonard Wood, Mo., pleaded guilty and was sentenced to 18 months in federal prison without parole and ordered to pay $35,601 in restitution. Christopher Quale, 26, of Saint Robert, pleaded guilty and was sentenced to 16 months in federal prison without parole and ordered to pay $6,618 in restitution.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the U.S. Postal Service, the U.S. Secret Service, the police departments of Springfield, Branson, Hollister, St. Robert, Carthage, Nixa, Troy, Strafford, Union, Washington, Linn, Lebanon, and Neosho in Missouri, the Tulsa, Okla., Police Department, the Missouri State Highway Patrol, the Christian County, Mo., Sheriff's Department, the Greene County, Mo., Sheriff=s Department, the Fayetteville, Ark., Police Department, the Arkansas State Police, and the Crawford County, Kan., Sheriff=s Department.
Nine Current or Former Roxbury Correctional Officers Chargedin Connection with Two Assaults on an InmateRead the Press Release
Two separate indictments charging a total of nine current or former officers at Roxbury Correctional Institution (RCI) were unsealed today, in relation to two assaults of an inmate, and subsequent obstruction of justice, announced Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.
In the first indictment, four current or former RCI officers face federal charges in connection with an assault on K.D., an inmate, during the 11 p.m. to 7 a.m. (midnight) shift on March 8-9, 2008. Former RCI Correctional Officers James Kalbflesh and Jeremy McCusker face civil rights and conspiracy charges for their roles in the midnight shift assault on K.D.
In addition, Kalbflesh, McCusker, RCI Correctional Officer Walter Steele and RCI Lieutenant Jason Weicht face conspiracy charges for their efforts to cover up information related to the midnight shift assault on K.D. RCI Lieutenant Weicht also faces an obstruction of justice charge for encouraging officers to get together to get their stories straight, providing home telephone numbers for the involved officers so that they could arrange for a cover-up meeting, and giving an officer books on interrogation techniques so that he would be prepared to mislead investigators. Finally, RCI Officer Steele faces two more counts for providing false and misleading information to state and federal authorities.
McCusker faces a maximum sentence of 50 years in prison. Kalbflesh and Weicht face a maximum of 25 years in prison. Steele faces a maximum term of 30 years in prison.
In the second indictment, five current or former RCI officers are charged. RCI Lieutenant Edwin Stigile and former Correctional Officers Tyson Hinckle, Reginald Martin, and Michael Morgan were charged with conspiring to have officers assault K.D. during the 7 a.m. to 3 p.m. (daylight) shift on March 9, 2008. RCI Sergeant Josh Hummer and former Correctional Officers Hinckle, Martin, and Morgan also were charged with a civil rights violation for the daylight assault on K.D. The indictment alleges that RCI officers kicked and punched inmate K.D. inside his cell in order to punish K.D. for a prior incident involving another officer. K.D. had to be transported to a local hospital following this beating.
All of the defendants in the second indictment are charged with conspiring to obstruct the investigation into assault. In addition, the indictment alleges that Lieutenant Stigile obstructed justice when he used a magnetic device to destroy and alter surveillance tapes related to the assault on inmate K.D. Sergeant Hummer also faces two obstruction of justice counts for making false and misleading statements to state and administrative authorities.
Lieutenant Stigile faces a maximum sentence of 35 years in prison. Sergeant Hummer faces a maximum of 55 years in prison. Hinckle, Morgan, and Martin each face a maximum term of imprisonment of 25 years.
These cases, which are ongoing, are being investigated by the Frederick Resident Agency of the FBI, and are being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Justice Department’s Civil Rights Division, with the assistance of the U.S. Attorney’s Office for the District of Maryland.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
New York City Woman Sentenced for Mortgage FraudRead the Press Release
BOSTON - A New York City woman was sentenced Monday afternoon for using a stolen identification to sign fraudulent mortgage loan documents.
Judy Bonas, 56, was sentenced by U.S. District Judge George A. O’Toole to six months in prison, followed by two years of supervised release and ordered to pay $936,600 in restitution to the mortgage lenders. In April 2012, Bonas pleaded guilty to six counts of wire fraud and three counts of identity fraud.Bonas was solicited by co-defendant Peterson Cherimond to pose as the buyer for the purchase of three residential properties in Brockton, Mattapan and Halifax. Bonas was paid approximately $4,500 to use a stolen identification to execute mortgage loan closing papers for each of the properties. The fraudulent loans resulted in losses exceeding $1 million.
In July 2012, Cherimond pleaded guilty to nine counts of wire fraud and three counts of money laundering. In October 2012, he pleaded guilty to four additional counts of wire fraud, seven counts of identity fraud and two counts of aggravated identity theft. Sentencing is scheduled for April 11, 2013. In July 2012, co-defendant Allison Gates pleaded guilty to similar charges involving four additional properties. Gates is scheduled to be sentenced on March 14, 2013.
United States Attorney Carmen M. Ortiz, Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. The case was prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Brian Perez-Daple of Ortiz’s Civil Division.
Navajo Man from Chichilta, N.M., Pleads Guilty to Federal Child Sex Abuse ChargeRead the Press Release
ALBUQUERQUE – Timothy Ignacio Duboise, 28, an enrolled member of the Navajo Nation who resides in Chichilta, N.M., pled guilty this morning to an aggravated child sexual abuse charge under a plea agreement with the U.S. Attorney’s Office.
According to the criminal complaint, the FBI initiated a criminal investigation into Duboise after the Navajo Division of Social Service reported an allegation of child sexual assault. Duboise was arrested on July 30, 2012, and has been in federal custody since that time.
During this morning’s plea hearing, Duboise admitted that, between July 15, 2011 and Aug. 15, 2011, he sexually assaulted a Navajo child by touching the child’s genitals. Duboise further admitted that the sexual assault occurred on the Navajo Indian Reservation.
Under the terms of the plea agreement, Duboise will be sentenced to ten years in prison followed by a minimum five year term of supervised release. He also will be required to register as a sex offender. Duboise’s sentencing hearing has yet to be scheduled.
The case was investigated by the Gallup office of the FBI, with assistance from the Navajo Division of Social Services, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Multiple Charges Lodged Against Terrell Wright for Pointing A Gun at Gang InvestigatorsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that a three-count Indictment was returned today in United States District Court charging TERRELL WRIGHT, age 28, of Syracuse, with: (1) assaulting two detectives from the Syracuse Gang Violence Task Force (“GVTF”) (Count One); (2) use and carry of a handgun during the assault (Count Two); and (3) being a convicted felon in possession of a handgun (Count Three).1
The charges arose from an incident on December 18, 2012 in which WRIGHT pulled a handgun from his waistband and pointed it at two Syracuse Police detectives from the GVTF. WRIGHT then fled the scene and was apprehended minutes later. The gun used in the assault - a loaded .40 caliber semi-automatic handgun - was recovered.
If convicted of these crimes WRIGHT faces the following penalties:
Count One: Up to 20 years imprisonment, followed by three years of supervised release, and up to a $250,000 fine;
Count Two: At least seven years imprisonment that must run consecutive to any sentence on Counts One and Three, followed by three years of supervised release, and up to a $250,000 fine;
Count Three: Up to 10 years imprisonment, followed by three years of supervised release, and up to a $250,000 fine;
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 448-0672.
__________________________________
1The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Mission Woman Indicted for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota woman has been indicted by a federal grand jury for Larceny. Clarice Brave, age 50, was indicted by a federal grand jury on February 13, 2013.
She appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Brave is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Brave was released on bond pending trial. A trial date has not been set.
Middlesex County, N.J., Man Charged with Trafficking in Counterfeit Male Enhancement Pills and Money LaunderingRead the Press Release
NEWARK, N.J. – A Middlesex County, N.J. man was charged today with trafficking in counterfeit male enhancement supplements imported from China and with laundering proceeds of more than $1 million, U.S. Attorney Paul J. Fishman announced.
Shuja Ali Syed, 52, originally from Pakistan and now a resident of Iselin, N.J., was arrested this morning by U.S. Department of Homeland Security-Homeland Security Investigations special agents. He was charged in a two-count Complaint and is scheduled for an initial appearance this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the Complaint filed in Newark federal court:
From February 2012 through January 2013, Syed trafficked in counterfeit, purportedly all-natural male enhancement products, namely Libigrow, Blue Diamond, Nite Rider, and ExtenZe. Syed imported counterfeit Libigrow, Blue Diamond, Nite Rider, and ExtenZe from China, and sold the products to undercover law enforcement agents and other individuals in New Jersey and New York. Syed represented that the products were “all natural,” when, in fact, laboratory analyses of the counterfeit products indicated that they contained either sildenafil, commonly known as Viagra, or tadalafil, commonly known as Cialis. Both Viagra and Cialis are prescription drugs approved by the Food and Drug Administration and used to treat, among other things, erectile dysfunction.
From December 2011 through November 2012, Syed deposited more than $600,000 into New Jersey bank accounts and wired more than $1 million to China, all of which were proceeds from the illegal importation and sale of the counterfeit products.
The criminal Complaint charges Syed with one count of trafficking in counterfeit goods, which carries a maximum potential penalty of 10 years in prison and a fine of $2 million, and one count of money laundering, which is punishable by a maximum potential penalty of 20 years in prison and a fine of $500,000 or twice the value of the property involved in Syed’s financial transactions.
U.S. Attorney Fishman credited law enforcement agents of the U.S. Department of Homeland Security-Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Maria Kelokates, for the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Aaron Mendelsohn of the Economic Crimes Unit and Evan Weitz of the Asset Forfeiture and Money Laundering Unit of the U.S. Attorney’s Office in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The charges and allegations contained in the Complaint against Syed are merely accusations, and he is considered innocent unless and until proven guilty.
13-093
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, TrentonSyed Complaint
Medical Doctor and 5 Others Indicted for Operating A Pill MillRead the Press Release
4 Additional Defendants Have Already Pled Guilty for Their Roles in the
Operation of a Purported Garden City, Georgia Pain ClinicSAVANNAH, GA - A federal indictment, unsealed yesterday in federal court, has charged 6 defendants with conspiring to traffic oxycodone, hydrocodone, and other drugs through a purported pain clinic known as East Health Center, which operated in Garden City, Georgia from February through May of 2011.
The indictment alleges that during the time that East Health Center was open, members of the conspiracy unlawfully prescribed and caused to be prescribed more than four million milligrams of oxycodone without any legitimate medical purpose. During this same period, prescriptions were written for numerous “patients” who lived outside the state of Georgia, including over 130 from Kentucky; over 50 from North Carolina; over 30 from South Carolina; and over 80 from Florida.
United States Attorney Edward Tarver said, “During the last two years, we’ve seen a number of pill-mills relocate their unlawful businesses to the State of Georgia. These so-called clinics operate under the guise of a stethoscope and a white coat, and they prey upon their so-called ‘patients.’ Any pill mills that seek to do business in the Southern District of Georgia can expect to be investigated and prosecuted like every other drug trafficking organization that pushes poison in our communities.”
Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the DEA, remarked, “ The DEA will continue to aggressively investigate those who cause to be dispensed addictive pain medications without legitimate medical purpose under the pretext of a medical doctor’s care.”
The indictment results from a joint investigation by the DEA, IRS - Criminal Investigations, GBI, Chatham Savannah Counter Narcotics Team (CNT), and the United States Marshals Service. Personnel from the Ware County Sheriff’s office assisted in making arrests.
Any defendant found guilty of the drug conspiracy charged in the indictment faces a maximum penalty of up to 20 years in prison and a fine of $1,000,000. The money laundering count also charged carries a maximum penalty of 20 years in prison and a fine of $500,000. The United States is also seeking to forfeit various items of personal property involved in the offenses, including $365,000 as the alleged proceeds of the defendants’ drug operation. The indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The 6 defendants indicted are:
Sean Michael Clark, 34, of Boca Raton, Florida;
Adelaida M. Lizama, 27, of Boca Raton, Florida;
Daniel John Wise, 34, of Fort Lauderdale, Florida;
Dr. Najam Azmat, 55, of Waycross, Georgia;
Candace Anne Carreras, 25, of Boca Raton, Florida; and,
Shelly Lynn Morford, 31, of Fort Lauderdale, Florida.
Other targets of the investigation have already pled guilty for their role in the East Health Center pill-mill. Adelard LeFrancois, III, 43, of Boca Raton, Florida and Francis J. Barbuscia, 36, of Plantation, Florida, entered guilty pleas before U.S. District Court Judge William T. Moore, Jr. on August 3, 2012. Each pled guilty to conspiring to dispense controlled substances, including oxycodone, without a legitimate medical purpose. Konstantinos Afthinos, 32, of Florida pled guilty to misprision of felony on November 5, 2012. On November 7, 2012, Dr. Kenneth Gossett, 51, of Rome Georgia, pleaded guilty to conspiring to dispense controlled substances, including oxycodone, without a legitimate medical purpose.
Assistant United States Attorneys Karl Knoche, Greg Gilluly, and Jeff Buerstatte are prosecuting the case for the Government. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
McLaughlin Man Arraigned on Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man has been indicted by a federal grand jury for Assaulting a Federal Officer.
Verle Janis a/k/a Verl Janis, age 31, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on February 14, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 20 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years. The charge is merely an accusation and Janis is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley is prosecuting the case. Janis was remanded to the custody of the U.S. Marshal. A trial date has not been set.
McCracken County, Kentucky Man Guilty of Distribution and Possession of Child PornographyRead the Press Release
PADUCAH, Ky. – A McCracken County, Kentucky man pleaded guilty to a four count federal superseding indictment yesterday, in United States District Court, before Senior Judge Thomas B. Russell, charging him with possession and distribution of child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Matthew Francis Ferreira, 27 was indicted by a federal grand jury, meeting in Paducah, Kentucky, on November 9, 2012, and was charged with three counts of distribution of child pornography via a computer, one count possession of child pornography via a computer.
In court, Ferreira pleaded guilty to utilizing peer-to-peer software and Skype software to knowingly distribute images of child pornography. According to the plea agreement, between January and March of 2012, law enforcement from the Kentucky Attorney General’s Cybercrime Unit, downloaded through the internet, several video files containing child pornography images, from the peer-to-peer software on Ferreira’s computer. Ferreira agreed to forfeiture of personal items used in the commission of this crime.
At sentencing, Ferreira faces a combined maximum term of imprisonment of 70 years, a combined maximum fine of $1,000,000, and supervised release of at least 5 years and up to any number of years, including life, which the Court may specify.
This case is being prosecuted by Assistant United States Attorney David Sparks and is being investigated by the Kentucky Attorney General’s Cybercrime Unit.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Maryland Resident Sentenced to 14 Years in Prison for $8 Million “Ponzi” SchemeRead the Press Release
Michael Winans, Jr., 30, of Jessup, Maryland, was sentenced today to 14 years in federal prison for defrauding investors out of approximately $8 million dollars, United States Attorney Barbara McQuade announced.
Joining in the announcement was Wayne County Prosecutor Kym Worthy and Special Agent in Charge Robert D. Foley, III, Federal Bureau of Investigation (FBI).
In addition to the prison sentence, United States District Judge Sean Cox also ordered Winans to pay restitution in the amount of $4.7 million dollars to the hundreds of victims he defrauded as well as a $175,000 fine, which is the maximum allowed by law.
Winans pleaded guilty in October, 2012 to operating the Winans Foundation Trust (the Trust) and representing that the Trust was a company investing in crude oil bonds in Saudi Arabia. Winans initially recruited eleven other individuals, whom he called "shareholders" in the Trust, to invest in the crude oil bonds. Winans required the so-called "shareholders" to solicit additional investors and then send the investors' funds to the Trust. Over 1,000 victim investors from several states sent over $8,000,000 to the Trust. All of these victims were led to believe they were investing in Saudi Arabian crude oil bonds that Winans well knew did not exist. In reality, Winans converted some of the victim investors' money to his own personal use. He also redistributed some of his later victims’ money to the earlier victims while falsely representing to them that it was the return on their "investments" he had promised.
"Investor fraud schemes like this one are just a fancy way to steal other people's money," McQuade said. "Anyone who robs citizens of their hard-earned savings will be brought to justice."
"We are pleased that the many victims of Michael Winans can rest easier tonight knowing that he has been convicted and will be spending his time in federal prison," said Prosecutor Kym L. Worthy.
FBI Special Agent in Charge Foley, "Those individuals who engage in illegal investment schemes will face severe penalties for their criminal activity. The FBI is committed to vigorously pursuing anyone who commits these crimes."This case was a joint investigation with the FBI, the Wayne County Prosecutor’s Office and the Michigan Department of Licensing and Regulatory Affairs, Office of Financial and Insurance Regulation (OFIR).
The case is being prosecuted by Assistant United States Attorney Abed Hammoud.
A telephone line and e-mail address have been set up by the FBI/United States Attorney’s Office to collect information about potential victims. Individuals who believe they may have been a victim of the Winans Foundation Trust should provide their name, address, phone number and e-mail address to one of the following: e-mail: [email protected] or toll free 1-888-702-0553.Marietta Woman Pleads Guilty to Social Security FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Patricia Hodges, 65, of Marietta, Ohio pleaded guilty in U.S. District Court to one count of theft of government money for concealing her mother’s death in order to continue receiving her mother’s Social Security benefits.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General, announced the plea entered today before Senior U.S. District Judge George C. Smith.
According to testimony in today’s hearing by an agent with the Social Security Inspector General, a Social Security Administration official interviewed Hodges at her Marietta home in November 2011. Hodges claimed her mother was on a cruise and planned to live with a niece in New York after the cruise.
Further investigation by the Social Security Administration and Marietta Police concluded that Hodges’ mother had died in 1997 and that Hodges had buried her mother’s body in the back yard of a house in Lake Worth, Florida where they had lived. Florida law enforcement investigators recovered the skeletal remains of Hodges’ mother.
Hodges admitted that she concealed her mother’s death in order to collect $141,962 in Social Security benefits she was not entitled to receive between 1997 and October 2011.
Theft of government money is punishable by up to ten years in prison, a $250,000 fine and three years of supervised release. Restitution can also be ordered as part of the sentence.
Judge Smith will schedule a date for sentencing. Hodges remains free on bond.
Individuals who want to report suspected cases of can contact the Social Security Office of Inspector General’s Fraud Hotline, 1-800-269-0271, or complete an online fraud reporting form at www.socialsecurity.gov under the “Useful Links” tab.
Stewart commended the investigation by the Social Security Administration’s Office of Inspector General and the Marietta Police, and Assistant U.S. Attorney Dale E. Williams Jr., who is representing the United States in the case.
Man Who Paid Bankruptcy Trustee with Bogus Checks Sentenced to 36 Months in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Todd William Klein, 49, of Cincinnati was sentenced in U.S .District Court to 36 months in prison for obstruction of justice for using bogus checks to pay the trustee in his bankruptcy case.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence imposed today by Chief U.S. District Judge Susan J. Dlott.
According to court documents, Klein filed for bankruptcy in May 2011. A trustee was responsible for collecting payments from Klein and distributing the money to creditors. In September, Klein paid the trustee two checks, each in the amount of $3,275. He later admitted to an investigator with the Springdale Police Department that he created the checks on his computer using an account number from a closed account and paper he purchased at an office supply store.
Klein pleaded guilty on June 15, 2012. Judge Dlott ordered the sentence for obstruction to be served concurrently with his sentence for violating his supervised release in connection with his conviction in 2004 on charges of transportation of stolen vehicles and bank fraud.
U.S. Attorney Stewart commended the investigation by the FBI and Senior Litigation Counsel Anne L. Porter, who represented the United States in the case.
Man Convicted of Defrauding Federal Credit Union in Las VegasRead the Press Release
LAS VEGAS, Nev. – Following a six-day jury trial, Brent Edward Lovett, 50, of Henderson, Nev., was convicted today of bank fraud for making false statements to a federally insured credit union to obtain a $7.5 million commercial real estate loan, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
According to the indictment and evidence presented to the jury during the trial, during 2006, Lovett devised a scheme to defraud Lockheed Federal Credit Union by fraudulently obtaining a commercial real estate loan from which he would skim part of the loan proceeds for himself. Lovett controlled Bay Resorts International, which leased two commercial buildings at 2400 N. Tenaya Way in Las Vegas. From about May to June 2006, Lovett caused Bay Resorts to purchase the buildings for $6 million. Lovett caused Bay Resorts to sell the buildings for $10 million to another company he controlled, Equity Resource, Inc. Lovett caused Equity Resource to apply for a commercial real estate loan with Lockheed Federal Credit Union to purchase the buildings, and in the application and supporting documents, Lovett made false statements and omissions regarding Bay Resorts, Equity Resource, and the sales history of the buildings. Based on those false statements, Lockheed Federal Credit Union made a loan to Equity Resource for $7.5 million. Lovett obtained approximately $1.3 million from the proceeds of the sale of the buildings to Equity Resource. Lovett then allowed the buildings to go into foreclosure and kept the balance of the proceeds for himself.
Lovett is free on a personal recognizance bond and is scheduled to be sentenced by Senior U.S. District Judge Roger L. Hunt on May 29, 2013. He faces up to 30 years in prison and a $1 million fine.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian Pugh.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Major U.S. Treasury Check Theft Ring Sentenced to Federal PrisonRead the Press Release
Defendants Stole Millions in U.S. Treasury Checks from Postal Facility
ATLANTA – Three defendants, including two former postal workers, were sentenced today in federal court for stealing more than $3.5 million in U.S. Treasury checks from an Atlanta mail distribution facility. Over 1,800 victims had their tax refund, Social Security, and Veterans checks stolen during the scheme. The defendants were convicted of conspiracy, theft of government money, and possession of stolen Treasury checks.
United States Attorney Sally Quillian Yates said, “With today’s sentencings, a major U.S. Treasury check theft ring that plagued this State for many years has been successfully dismantled. The defendants stole millions in tax refund, Social Security, and Veterans checks from good people who had expected to receive their checks in the mail only to discover they had been diverted to criminals and identity thieves. The task force will continue to target those who are responsible for making Georgia a hotbed for this kind of criminal activity.”
Special Agent in Charge Guy P. Fallen, Office of the Inspector General, Social Security Administration stated, “Social Security payments are a lifeline for many Americans who are unable to work due to a temporary or permanent disability. Our office is gratified by the U.S. Attorney’s shared commitment to investigate and prosecute those who defraud Social Security trust funds. One of our highest priorities is ensuring that those who steal SSA payments are swiftly detected and prosecuted. Social Security fraud affects all Americans. The individuals sentenced today are a testament to our serious commitment to pursuing those who would victimize Social Security beneficiaries.”
“Check fraud is one of the largest challenges facing financial institutions today. This case illustrates the importance of task force partnerships with state, local and federal law enforcement agencies. The Secret Service will continue to work with our law enforcement partners in combating threats to our nation’s financial payment systems and to protect innocent victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
Special Agent in Charge Quentin G. Aucoin, Department of Veterans Affairs, Office of Inspector General stated, “Thefts of VA benefits checks intended for veterans who honorably served this country will not be tolerated. VA OIG vigorously investigates allegations of criminal activities impacting VA programs.”
According to United States Attorney Yates, the charges and other information presented in court: Gerald Eason worked as a supervisor at the Atlanta Processing and Distribution Center, a centralized mail distribution center, on Crown Road in Atlanta, Georgia. That facility processes mail for delivery to dozens of zip codes in Georgia. Deborah Fambro-Echols worked as a mail handler at the facility. While on the job, Eason and Fambro-Echols stole thousands of U.S. Treasury checks and provided them to a network of brokers and check cashers who would then negotiate the checks and split the criminal proceeds with them. These individuals forged endorsements and used fake identification to pose as the intended recipients of the checks when cashing them. Federal authorities believe that Eason and Fambro-Echols are responsible for a significant portion of the U.S. Treasury checks reported stolen in Georgia over the last four years.
In April 2011, law enforcement authorities searched Fambro-Echols’ residence in Hapeville. They found 661 Treasury checks totaling over $590,000. Almost all of the checks discovered during the search were dated from April 8 to 19, 2011, and thus stolen over less than a two-week period.
On March 7 and 11, 2012, Eason stole over 1,300 Treasury checks worth more than $2.8 million. Federal agents video recorded him stealing the checks at the mail facility and then observed him drive the checks to a residence, where he thought they would be distributed to co-conspirators who would cash them. He was arrested while attempting to collect his portion of the proceeds from the second delivery.
Eason and Fambro-Echols stole millions in U.S. Treasury checks during their employment with the U.S. Postal Service. Wendy Frasier and Daralyn M. Weaver acted as brokers for Fambro-Echols. They recruited others to cash the stolen checks at banks and business establishments. Jabril O. McKee and Ohmar D. Braden worked as check cashers in the scheme, negotiating stolen checks with the help of fake identification documents and sharing the proceeds with their co-conspirators. In March 2011, McKee and Braden were arrested at a BestBank in Decatur, Georgia attempting to negotiate a stolen Social Security check while impersonating the intended recipient of the check.
United States District Judge Charles A. Pannell, Jr. sentenced Eason, Fambro-Echols, and Weaver today, and previously sentenced McKee and Braden:
- Gerald Eason, 47, of Stockbridge, Georgia, was sentenced to 7 years, 3 months in prison, to be followed by 3 years of supervised release, and fined $15,000.
- Deborah Fambro-Echols, 50, of Hapeville, Georgia, was sentenced to 6 years, 6 months in prison, to be followed by 3 years of supervised release, and fined $12,500.
- Daralyn M. Weaver, 31, of Atlanta, Georgia, was sentenced to 3 years in prison, to be followed by 3 years of supervised release, and fined $5,000.
- Jabril O. McKee, 25, of Riverdale, Georgia, was sentenced on January 30, 2013, to two years, four months in prison, to be followed by three years of supervised release, and fined $3,000.
- Ohmar D. Braden, 37, of Covington, Georgia, was sentenced on December 18, 2012, to two years, four months in prison, to be followed by three years of supervised release, and fined $2,000.
The sentencing for Wendy Frasier, 35, of Atlanta, Georgia is scheduled for March 14, 2013 at 4 p.m. by United States District Judge Charles A. Pannell, Jr.
This case was investigated by the United States Secret Service; United States Postal Service, Office of Inspector General; Social Security Administration, Office of Inspector General; United States Postal Inspection Service; U.S. Department of Veterans Affairs, Office of Inspector General; U.S. Department of the Treasury, Office of Inspector General; Georgia Department of Revenue, Office of Special Investigations; and DeKalb Police Department; with valuable assistance provided by the Fulton County Sheriff’s Office.
This case was brought as part of the U.S. Attorney’s Stolen Treasury Check Task Force. The Task Force is an informal group of 14 federal, state, and local law enforcement agencies working together to address the problem of stolen U.S. Treasury checks in the Northern District of Georgia.
Assistant United States Attorneys Stephen H. McClain, Loranzo M. Fleming, Christopher C. Bly, and Jeffrey Viscomi are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Luzerne County Man Charged with Drug Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of criminal charges against Frank Suriano, age 44, of Pittston, Pennsylvania, with conspiring to distribution of more than 500 grams of cocaine hydrochloride, and with distributing cocaine on numerous occasions.
According to United States Attorney Peter J. Smith, the Indictment marks a continuation of an investigated into a Pittston area drug ring by special agents of the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Prosecution has been assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 60 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Long Island Financial Advisor Charged in Insider Trading ConspiracyRead the Press Release
A criminal indictment was unsealed today in federal court in Brooklyn charging Damian Perna, a financial advisor from Oceanside, Long Island, with conspiracy to commit insider trading. Perna is charged with conspiring with others to trade in securities of publicly-traded corporations registered under the Securities and Exchange Act of 1934 during the period from June 2011 through October 2012. 1
The defendant was arrested this morning and was arraigned earlier this afternoon before United States Magistrate Judge Ramon E. Reyes, at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York. As the government explained during the arraignment, Perna obtained draft earnings reports for publicly-traded companies before their public release through a contact at an investor relations firm. These companies included Consolidated Graphics, Alamo Group and Miller Industries, which are listed on the New York Stock Exchange, and Innophos Holdings, Inc., which is listed on the NASDAQ. In one meeting, Perna sold an advance copy of an earnings report to an undercover agent of the Federal Bureau of Investigation and was paid $7,000 in cash.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
If convicted, the defendant faces a statutory maximum sentence of 25 years’ imprisonment.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, please visit www.StopFraud.gov.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa and Ilene Jaroslaw.
The Defendant:
DAMIAN PERNA
Age: 30_____________________________
1 The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Little Eagle Woman Arraigned on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota woman has been indicted by a federal grand jury for Assault With Intent to Commit Murder, Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Roxanne Spotted Horse, age 31, was indicted by a federal grand jury on February 13, 2013. She appeared before U.S. Magistrate Judge William D. Gerdes on February 14, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction of Count I is 20 years' imprisonment. The maximum penalty upon conviction of Counts II and III is 10 years' imprisonment. All counts also include a $250,000 fine and period of supervised release of 3 years. The charges are merely accusations and Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley is prosecuting the case. Spotted Horse was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Lexington Man Sentenced to 96 Months for Bank RobberyRead the Press Release
COVINGTON, KY - A federal judge sentenced a Lexington, KY., man to 96 months in prison for robbing a bank in Maysville, Ky., in May of last year.
U.S. District Judge Danny C. Reeves sentenced 36-year-old Patrick Andrew Donald Tuesday for bank robbery.
Donald previously admitted that he and an accomplice robbed the Security Trust Bank in Maysville, Ky., on May 16, 2012. According to testimony at Donald’s sentencing hearing, the two men entered the bank dressed in winter clothing and demanded money from three tellers. Donald’s accomplice insinuated that he had a gun and used his hand to conceal a metal object in his coat pocket. The accomplice then repeatedly pounded the counter in front of the tellers with this object as he demanded money.
Because the metal object was considered a dangerous weapon and used to commit the robbery, Donald received an enhanced sentence.
Donald pleaded guilty to the robbery in September 2012.
Under federal law, Donald must serve at least 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years following his release.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Perrye K. Turner, Special Agent in Charge of the FBI’s Louisville Field Office, Ronald Rice, Chief of Police, Maysville Police Department and Ronnie Bastin, Chief of Police, Lexington Fayette Urban County Government jointly, jointly announced the sentence.
The investigation was conducted by the FBI, the Maysville Police Department, and the Lexington Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorneys Kenneth R. Taylor and Andrew T. Boone.
Killeen Man Sentenced to 40 Years in Federal Prison for Sex Trafficking of ChildrenRead the Press Release
In Waco this afternoon, United States District Judge Walter S. Smith, Jr., sentenced 27-year-old Jerome
Maurice Cole of Killeen, TX, to 40 years in federal prison for sex trafficking of children announced United
States Attorney Robert Pitman and Texas Attorney General Greg Abbott.
In addition to the prison term, Judge Smith ordered that Cole pay a $5,000 fine and be placed under supervised release for a period of ten years after completing his prison term.
“Trafficking children in the sex trade is an unspeakable crime. We will pursue and vigorously prosecute those who engage in such outrageous conduct to the fullest extent of the law,” stated United States Attorney Pitman.
On November 29, 2012, Cole pleaded guilty to the charge. By pleading guilty, Cole admitted that he operated a prostitution venture from November 2011 until August 2012 involving minor females utilizing various technologies, including a personal computer, multiple cell phones, the Internet, and the website Backpage.com, to photograph, post prostitution advertisements, recruit new girls, and communicate with purchasers. On May 15, 2012, officers with the Killeen Police Department responded to a call that a 16-year-old runaway was frightened to leave Cole's residence and needed assistance in escaping. Killeen Police Department rescued the minor from Cole's residence and requested an investigation from the Office of the Texas Attorney General's human trafficking unit. During the course of the investigation, authorities identified another 16-year-old minor as being sexually trafficked by Cole, as well as a third minor who was being actively recruited by Cole.
Cole has remained in custody since his arrest on August 15, 2012, when he arrived at an agreed upon location in Killeen to pick-up the third minor.
This case was investigated by the Office of the Texas Attorney General and the Killeen Police Department with assistance from the United States Marshals Service. Assistant United States Attorney Mary Kucera and Special Assistant United States Attorney/Assistant Attorney General Geoff Barr prosecuted this case on behalf of the Government.Justice Department Prevails in Tax Shelter Case Involving $1 Billion in Tax DeductionsRead the Press Release
A federal court in Baton Rouge, La., on Monday rejected two tax shelter transactions entered into by The Dow Chemical Company that purported to create approximately $1 billion in phony tax deductions. In addition to rejecting the tax benefits from the shelter transactions, Chief Judge Brian A. Jackson also imposed penalties.
As stated in the opinion, the schemes were created by Goldman Sachs and the law firm of King & Spalding, and involved creating a partnership that Dow operated out of its European headquarters in Switzerland. Chief Judge Jackson wrote in his 74-page opinion that the government was correct to reject the artificial tax benefits created by these schemes that were designed to exploit perceived weaknesses in the tax code and not designed for legitimate business reasons. Judge Jackson noted that “tax law deals in economic realities, not legal abstractions.” Judge Jackson also wrote that penalties were appropriate because any reasonable and prudent person should have known that the artificial tax benefits created by the scheme were “too good to be true.” Judge Jackson noted in his opinion that “Dow viewed its tax department as a profit center,” and had at its disposal “numerous lawyers and tax professionals.”
Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division hailed the Louisiana court’s opinion. “It is offensive to all taxpayers who pay their fair share when our largest corporations believe that they can claim hundreds of millions of dollars in tax deductions that are manufactured by abusive tax schemes,” said Keneally. Keneally thanked the agents and attorneys at the Internal Revenue Service who assisted the Justice Department, as well as Tax Division trial attorneys, Thomas Sawyer, Robert Welsh, Thomas Koelbl and Philip Schreiber.
Related Materials:
United States v. Chemtech Royalty Associates, L.P., etc.
Memorandum Ruling (PDF)Jury Convicts Independence Man of Social Security Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was convicted in federal court today of a scheme to receive Social Security disability payments while running a mortgage brokerage firm that he founded in Blue Springs, Mo.
Charles Daniel Koss, 63, of Independence, was found guilty of two counts of theft of government money, one count of Social Security disability fraud, one count of mail fraud and one count of transmitting a false negotiable instrument with the intent to defraud the government.
Evidence introduced during the trial indicated that Koss fraudulently received a total of $212,768 in Social Security disability insurance payments between September 1994 and January 2010. He also fraudulently received a $250 American Recovery and Reinvestment Act payment. During that time, Koss owned and operated Embassy Mortgage in Blue Springs, a company he founded in 1994. Several witnesses during the trial confirmed that Koss worked full-time as a loan officer and ran the business; his wife did paperwork, such as paying bills and processing documents. Embassy Mortgage was involved in approximately 550 closings, nearly all of which were conducted with Koss present.
Koss, who began receiving disability payments in 1987, failed to report any change in his health condition or any income from Embassy Mortgage to the Social Security Administration. In order to qualify for and to keep receiving Social Security disability insurance benefits, a person must be so disabled that they are unable to perform substantial work. Individuals are required to report all work activity to the Social Security Administration. Koss led an active lifestyle that included bowling, golfing, horseshoes, boating, activities at his lake house and frequent visits to Ameristar Casino, where he gambled a total of $260,000 during this time.
On April 15, 2010, Koss received a billing statement from the Social Security Administration requesting repayment of the $212,768 he was overpaid as a result of his unreported work activity. About a month later, he mailed to the Social Security Administration a document entitled “Registered Private Money Order,” a false negotiable instrument purporting to draw on a trust account purportedly held at the United States Treasury. In actuality, the account did not exist and the document was fraudulent.
Koss told federal agents in interviews during the investigation that he has studied redemption theory. Redemption theory involves bogus claims that when the United States government abandoned the gold standard in 1933, it pledged its citizens as collateral so it could borrow money. The movement also asserts that common citizens can gain access to funds in secret accounts using obscure procedures and regulations. According to the theory, the government created a fictitious person (or “straw man”) corresponding to each newborn citizen and each citizen has an alleged secret trust account with the United States Treasury. The theory also claims that through obscure procedures under the Uniform Commercial Code, a citizen can “reclaim” the “straw man” and write negotiable instruments against its accounts. Its adherents sometimes call themselves “sovereign citizens.” The “sovereign citizen” movement is a loosely organized collection of groups and individuals who have adopted anarchist ideology. Its adherents believe that virtually all existing government in the United States is illegitimate and they seek to “restore” an idealized, minimalist government that never actually existed.
Redemption theory and sovereign citizen beliefs are totally without merit and they have no basis in law or fact. Individuals often use these ideas to further various fraudulent schemes.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three and a half hours before returning the guilty verdicts to U.S. District Judge Brian C. Wimes, ending a three-day trial that began Tuesday, Feb. 19, 2013.
Under federal statutes, Koss is subject to a sentence of up to 61 years in federal prison without parole, plus a fine up to $1.1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford, Assistant U.S. Attorney Daniel M. Nelson and Special Assistant U.S. Attorney Kate Hoey. It was investigated by the Social Security Administration – Office of Inspector General, the Department of the Treasury – Inspector General for Tax Administration and the U.S. Postal Inspection Service.Jeffery Stock Sentenced to 46 Months in Federal Prison for Sex Offender Registration CrimeRead the Press Release
Stock placed on federal supervised release for life
GREENEVILLE, Tenn. -- Jeffery Lee Stock, 44, of Newport, Tenn., was sentenced on February 27, 2013, to serve 46 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Stock previously pleaded guilty to a federal grand jury indictment charging him with interstate travel and failure to register as a convicted sex offender.
In January 2013, Stock pleaded guilty in state court in Cocke County, Tenn., to second-degree murder, arson, and theft relating to the disappearance of Megan Maxwell. Under the terms of the plea agreement Stock negotiated with the district attorney general, to serve a term of 18 years in state prison at 100%, with credit for time served since he was arrested on the federal sex offender registration charge and credit for any time he will serve on the federal violation.
Under the Cocke County judgment, Stock faces no time on supervised release by the state court judicial system. Judge Greer ordered Stock, whom he described as highly likely to commit future offenses and exhibiting a very profound lack of respect for the law, to serve lifetime supervised release by the federal court system upon his release from state court prison.
The indictment and subsequent conviction of Stock was the result of an investigation conducted by the Cocke County Sheriff’s Office, Newport Police Department, and the U.S. Marshals Service. Assistant U.S. Attorney Helen Smith represented the United States.
William C. Killian, U.S. Attorney for the Eastern District of Tennessee, stated, “This is a very good example of federal and state law enforcement authorities working together to maximize protection to local communities. Because of the negotiated plea agreement Stock is now on federal supervised release for the remainder of his life, reducing the chances that he will victimize other young women again.”
Idaho Aquarium Operator Faces Possible Bond RevocationRead the Press Release
Nephew Arrested for Obstruction of Justice
BOISE – Ammon Covino, 39, of Meridian, Idaho, was arrested yesterday for violating the conditions of his pretrial release on a Florida indictment charging violations of the Lacey Act, U.S. Attorney Wendy J. Olson announced. Federal prosecutors earlier filed a motion to revoke Covino’s bond. According to the motion, investigators learned that Covino directed his nephew, Pete Covino IV, to contact an individual in Florida and destroy certain information relating to a recent order Covino placed for undersized and illegal nurse sharks. Pete Covino IV, 20, of Star, Idaho, also was arrested and charged with obstruction of justice based on a complaint filed in the Southern District of Florida. Both men appeared in Boise federal court this morning. Ammon Covino is due back in court on Friday, March 1, to determine if he should be detained pending transfer to the Southern District of Florida. Peter Covino IV is scheduled to appear in Florida federal court on March 15.
Ammon Covino was first arrested February 21 on a November 8, 2012, Southern District of Florida indictment charging him and Christopher Conk with conspiracy to violate the Lacey Act and violating the Lacey Act by purchasing Florida protected marine life in interstate commerce. The four count indictment alleges that Covino and Conk purchased four spotted eagle rays (Aeobatus narinari) and two lemon sharks (Negaprion brevirostris) for approximately $6,300. The marine wildlife were allegedly harvested illegally and without a permit.
At his initial appearance on February 21, Covino was released on a $100,000 bond. Chief U.S. Magistrate Judge Candy W. Dale ordered Covino not to commit any new federal, state or local crimes as one of the conditions of his release. If Judge Dale determines that Covino did violate the conditions of his pretrial release or committed a new crime, she may revoke his bond.
Ammon Covino and Christopher Conk are each charged with one count of Conspiracy and three counts of Illegal Purchase and Sale of Fish/Wildlife. Each count is punishable by up to five years in prison, a maximum fine of $250,000, and three years of supervised release. The indictment also includes a forfeiture count. Pete Covino, IV, is charged with one count of obstruction of justice. That charge is punishable by up to twenty years in prison, a maximum fine of $250,000 and three years of supervised release.
The case is being investigated by U.S. Fish and Wildlife Service (USFW), National Oceanic and Atmospheric Administration (NOAA), and Idaho Department of Fish and Game.
In the federal criminal justice system, indictments and complaints are only allegations of criminal conduct and are not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
Greenfield Attorney Sentenced to Prison for Four Years of Tax EvasionRead the Press Release
BOSTON - A Greenfield attorney was sentenced today in U.S. District Court in Springfield for tax evasion.
Gregory Olchowski, 57, was sentenced by U.S. District Judge Michael A. Ponsor to six months in prison, followed by one year of supervised release, six months of which will be served in home confinement, and an $8,000 fine. In September 2012, Olchowski pleaded guilty to four counts of tax evasion.Between Jan. 1, 2003 and Dec. 9, 2011, Olchowski evaded the proper assessment of his federal income taxes for four separate tax years. Olchowski did so by arranging to receive income in the form of cash and checks to third-parties for his own benefit, which he did not intend to report to the Internal Revenue Service; filing individual income tax returns that did not report this income; concealing documents concerning this unreported income that were responsive to a subpoena in a criminal investigation; and providing materially false information to IRS criminal agents. Prior to the sentencing, Olchowski closed his law practice and repaid the IRS $148,805 in taxes, interest and penalties based upon his tax evasion.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Four indicted by Federal Grand Jury for prisoner tax fraud scheme and aggravated identity theftRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that three men and a woman have been indicted by a federal grand jury in Anchorage, Alaska, on 46 counts of conspiracy to defraud the government, mail fraud, and aggravated identity theft related to a prisoner tax fraud scheme.
The four defendants named in the indictment are Anchorage residents Steven McComb, 46, Michael Sexton, 42, Paulando Williams, 47, and Helen Maloney, 44. McComb, Williams, and Maloney are scheduled to be arraigned in federal court today. Sexton has not yet been arrested.
According to the indictment, between 2010 and 2012, the defendants joined in a conspiracy to file false tax returns and obtain tax refunds from the United States Treasury to which the defendants knew they were not entitled. The defendants obtained the names and social security numbers of individuals, many of whom were inmates at correctional facilities. The defendants prepared false individual income tax returns claiming false wages and withholding amounts, for which there were no W-2 Forms actually issued by employers. Each return claimed that the taxpayer was owed thousands of dollars in refunds for which the defendants were not entitled. The charges allege that the conspirators forged the individuals’ signatures on the false tax returns, used their own personal addresses on those forms and mailed the false income tax returns to the Internal Revenue Service.
The conspiracy allegation includes that the conspirators prepared and submitted by mail approximately 100 false tax returns using the names and social security numbers of approximately 35 individuals seeking approximately $213,267 in fraudulent refund claims. As a result of the fraud, the U.S. Treasury sent refunds of approximately $110,698 out of the $213,267 falsely claimed in their fraudulent tax returns.
The statutory maximum penalty for conspiracy to defraud the government with respect to claims is 10 years’ imprisonment, 3 years’ supervised release, and a $250,000 fine. The statutory maximum penalty for mail fraud is 20 years’ imprisonment, 5 years’ supervised release, and a $250,000 fine. The statutory penalty for aggravated identity theft is a mandatory consecutive sentence of 2 years’ imprisonment. All four defendants are charged with a criminal forfeiture allegation for their interest in any property which constitutes or is derived from proceeds traceable to a violation of mail fraud or a money judgment not to exceed $110,698.
Ms. Loeffler commends the Internal Revenue Service – Criminal Investigation Division for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Four More Co-defendants Sentenced for Trafficking Meth in Southwest IdahoRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that four more co-defendants–members of a southwest Idaho drug trafficking organization–were sentenced in United States District Court in Boise this week for conspiracy to possess with intent to distribute methamphetamine. This brings to 11 the number of defendants sentenced in the case.
On Monday, Chief U.S. District Judge B. Lynn Winmill sentenced Benjamine L. Vertner, 34, of Ontario, Oregon, to 138 months in prison, and Patric Campbell, 36, of Boise, to 124 months. They pleaded guilty in September 2012. Sentenced today by U.S. District Judge Justin L. Quackenbush were Kristopher Hensley, a/k/a Casey (K.C.) Hensley, 26, of Weiser, Idaho, to 51 months in prison, and Johnny A. Tambunga, 40, of Weiser, to 47 months in prison. They pleaded guilty in October 2012. The four defendants were each ordered to serve five years of supervised release following their federal prison term.
According to court documents, the defendants each admitted that from early November 2011 through May 16, 2012, they conspired with others, including co-defendants, to distribute a total of approximately 11 pounds of methamphetamine in Canyon, Payette and Washington counties in Idaho.
Co-defendant Dawson Lee Moore, 60, of Weiser, pleaded guilty on January 4 to one count of conspiracy to possess with intent to distribute methamphetamine. He is scheduled to be sentenced on March 27 at the federal courthouse in Boise.
On February 4, three co-defendants were sentenced to serve federal prison sentences on related drug trafficking charges. Jacob James Clevenger, 31, of Weiser, was sentenced to 188 months; Mario Martinez, Jr., 55, of Greenleaf, Idaho, to 57 months; and Fabian Jordano Beltran, 23, also of Weiser, to 36 months.
On January 22, three co-defendants were convicted by a federal jury of conspiracy to distribute methamphetamine. Jesus Guadalupe Sanchez a/k/a Jose Salazar, a Mexican national, Michael Dennis Morris, and Jim Allen Loveland are scheduled to be sentenced on April 8. Sanchez was also convicted of possession of methamphetamine with intent to distribute.
The case was investigated by the Idaho State Police.
Founder of Violent "Dead Man Incorporated" Gang Exiled to Life in Prison on Federal Racketeering ChargesRead the Press Release
Baltimore, Maryland - James Sweeney, age 36, of Baltimore, Maryland, was sentenced to life in prison, for conspiracy to participate in a violent racketeering enterprise known as the Dead Man Incorporated (DMI). Sweeney was a founder of DMI and became its “Supreme D.”
The sentence was imposed on February 25, 2013, by U.S. District Judge Marcia A. Crone in the Eastern District of Texas, where Sweeney is currently serving a 30 year Maryland sentence for a 1996 second degree murder conviction. As part of his Maryland plea agreement, at the conclusion of the sentencing, federal prosecutors in Texas dismissed an indictment charging Sweeney with the murder of an inmate at the federal prison in Beaumont, Texas.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; Anne Arundel County Police Chief Larry W. Tolliver; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Anne Arundel County State’s Attorney Frank R. Weathersbee.
According to his plea agreement, in 2000, Sweeney was a founding member of DMI, created originally as a prison gang in Maryland. By 2006, DMI expanded its membership by recruiting members outside prison, including women.
Sweeney admitted that prior to his transfer to federal custody he was incarcerated in state prison facilities in Maryland and oversaw the activities of DMI. In order to make money for the gang and to enable white prisoners to retaliate against black gangs and cliques, Sweeney announced that DMI was available to do “hits” for hire. Sweeney participated in the smuggling of drugs into prisons by, and on behalf of, DMI members, including heroin, powder and crack cocaine, marijuana, and prescription drugs. During his years in prison in Maryland and in the federal system, Sweeney ordered numerous “hits” in furtherance of DMI, as well as assaults.
Perry Roark, a/k/a Rock, “Pops,” “Slim,” “Saho the Ghost,” age 42, previously pleaded guilty and was sentenced to life in prison for the racketeering conspiracy. Roark had been the “Supreme Commander” of DMI since it was originally created as a prison gang in Maryland in 2000.
Mr. Rosenstein praised the FBI, ATF, Maryland Department of Public Safety and Correctional Services; Baltimore County Police Department; Anne Arundel County Police Department; Baltimore City Police Department; the Maryland State Police; Baltimore County State’s Attorney’s Office; Baltimore City State’s Attorney’s Office; and Anne Arundel County State’s Attorney’s Office for their assistance in this investigation and prosecution.
United States Attorney Rod J. Rosenstein thanked the U.S. Attorney’s Office for the Eastern District of Texas for their assistance and commended Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Former Trenton, N.J., City Employee Admits Involvement in Corruption and Narcotics ConspiraciesRead the Press Release
TRENTON, N.J. – A former Trenton city employee today admitted his participation in a bribery scheme involving Trenton Mayor Tony F. Mack, the mayor’s brother, Ralphiel Mack, and close associate, Joseph A. “JoJo” Giorgianni, U.S. Attorney Paul J. Fishman announced.
Charles Hall III, 49, of Trenton, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an Information charging him with one count of conspiracy to obstruct commerce by extortion under color of official right. He also pleaded guilty to one count of conspiracy to distribute oxycodone in a separate conspiracy with Giorgianni and others.According to documents filed in this case and statements made in court:
From September 2010 through June 2012, Hall, Tony Mack, and Ralphiel Mack agreed to accept corrupt cash payments and other things of value from two cooperating witnesses in exchange for the mayor’s official assistance with the cooperating witnesses’ efforts to acquire a city owned lot (the “East State Street Lot”) to develop an automated parking garage. Hall admitted that he, Giorgianni, and Tony Mack agreed that Mack would take official action to fix the sale price of the East State Street Lot at $100,000 in exchange for a $100,000 bribe payment. Hall admitted that he met with a Trenton city official and caused that official to issue a letter offering to sell the East State Street Lot for $100,000, which was substantially lower than what the cooperating witness was willing to pay. Hall further admitted that he, Giorgianni, and Tony Mack agreed to split among themselves the $100,000 bribe payment.Hall said Tony Mack instituted a system of “buffers,” or intermediaries, to receive bribe payments on his behalf. He admitted that Giorgianni and Ralphiel Mack served as Tony Mack’s intermediaries. Hall said that when talking over the telephone, he, Tony Mack, Giorgianni, and Ralphiel Mack limited their conversations to hide the illegal nature of the scheme in case law enforcement was tapping their phones. Hall admitted that “Uncle Remus” was a code word used by Hall, Tony Mack, and Giorgianni to signal that a bribe payment was available for pickup from Giorgianni. On Dec. 6, 2012, the Mack brothers and Giorgianni were charged in an eight-count Indictment with extortion, bribery and mail and wire fraud.
In addition to the parking garage project-related bribe and extortion payments, Hall also admitted his involvement in a narcotics distribution conspiracy involving Giorgianni and others. Hall said he obtained, in coordination with Giorgianni, oxycodone-based pain medication, for the purpose of distribution. Jojo’s Steakhouse, a restaurant operated by Giorgianni and Mary Manfredo, 65, of Lawrenceville, N.J., served as a front where oxycodone pills and drug proceeds were received and distributed. Also charged by Complaint on Sept. 4, 2012, along with Giorgianni and Manfredo in the drug conspiracy are:
Name
Age
Town
31
Trenton
Ralph Dimatteo Sr.
63
Trenton
Giuseppe A. Scordato
47
Hamilton, NJ
Carol Kounitz
57
Hamilton, NJ
Stephanie Lima
41
Yardville, NJ
Mark Bethea
45
Trenton
Eugene Brown
70
Atlantic City, NJ
The investigation did not reveal evidence that either Tony Mack or Ralphiel Mack were involved in the narcotics conspiracy.
The extortion conspiracy count to which Hall pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. The narcotics conspiracy count is punishable by a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for June 5, 2013.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Acting Special Agent in Charge David Velazquez with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.
The charges and allegations in the Indictment and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-094
Defense counsel for Charles Hall III: Alan D. Bowman Esq., Newark
Hall Information
Former Tennessee Driver License Service Center Employee Sentenced to 27 Months in Prison for BriberyRead the Press Release
Larry Murphy,54, of Antioch, Tenn. and Anny Castillo, 30, of Madison, Tenn., were sentenced on February 15, 2013, on federal bribery charges stemming from the fraudulent issuance of Tennessee driver licenses, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
Murphy, who had been employed by the Tennessee Department of Safety and Homeland Security as a licensing clerk, was sentenced to 27 months in prison and ordered to forfeit almost $70,000 in bribes he received for issuing driver’s licenses to unauthorized applicants.
Castillo was sentenced to 90 days in prison and nine months of house arrest for paying bribes to Murphy to obtain licenses for applicants who did not pass the required tests. Castillo was also ordered to forfeit $42,500 which she received to broker the transactions. Both defendants requested more lenient sentences, but U.S. District Judge Kevin Sharp noted that the sentences imposed were called for due to the serious nature of the offense.
“Government employees owe a duty of trust to the citizens of Middle Tennessee that they serve,” said United States Attorney Jerry Martin. “Public employees who corruptly breach that trust should expect to go to prison, even if, like Mr. Murphy, they have not previously been in serious trouble with the law.Raymond R. Parmer, Jr., Special Agent in Charge of Homeland Security Investigations (HSI), New Orleans, who oversees the region that includes Tennessee, added, “Fraudulent documents threaten the security of all citizens by making it easier for criminals to commit a range of offenses from identity theft to potential terrorism. HSI and its law enforcement partners continually work together to identify and prosecute criminals who violate the public trust.”
This case was jointly investigated by Homeland Security Investigations, the FBI and the Tennessee Department of Safety and Homeland Security. The United States was represented by Assistant U.S. Attorney Hilliard Hester.
Tennessee Safety and Homeland Security Commissioner Bill Gibbons stated, “There are homeland security concerns with identity crimes as it relates to driver licenses. Our department initiated this investigation as soon as we learned of possible criminal activity by Mr. Murphy, an employee in one of the state’s driver services centers. With the help of our federal partners, justice was served and the sentence was appropriate for the crime.”Former Middle Smithfield Township Supervisor Robert SpanoRead the Press Release
Enters Guilty Plea To Charge Of Making False Statements In Connection With A Health Care Matter
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Supervisor in Middle Smithfield Township, Monroe County, pleaded guilty today before United States Magistrate Judge Thomas M. Blewitt to the charge of making false statements in connection with health care benefits.
According to United States Attorney Peter J, Smith, Robert Spano, age 63, admitted to violating a federal statute prohibiting the making of false statements in connection with a health care matter.
Spano was previously indicted by a grand jury in November 2011. The indictment alleged that Spano, while he was a Supervisor and employee of Middle Smithfield Township, participated in the township’s group health benefit plan administered by Blue Cross of Northeastern Pennsylvania and in the township’s dental care benefits plan administered by United Concordia.
The indictment charged that Spano completed health insurance and dental insurance enrollment forms in November of 2007 in which he listed his girlfriend, referred to in the indictment as “C.B.,” as his spouse, and as having the last name “Spano,” when in fact her last name was not “Spano,” and she was not his spouse. The indictment stated that Robert Spano was still legally married to another person and had filed for divorce from his wife in January 2011.
As a result of Spano’s misrepresentations, Middle Smithfield Township, Blue Cross of Northeastern Pennsylvania, and United Concordia incurred expenses totaling approximately
$24,488 for medical and dental services provided to C.B. and for higher health insurance premiums between 2007 and 2010.The case was investigated by the Federal Bureau of Investigation and the Northeastern Pennsylvania Insurance Fraud Task Force.
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara
In this particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the federal sentencing guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
A sentencing date has not been scheduled.
Former Logan County Bank President Pleads Guilty to Embezzling from BankRead the Press Release
Springfield, Ill. – The former president of a Logan County bank, Bryson John Russell, 65, of Lincoln, Ill., today admitted that he has embezzled funds from the Hartsburg State Bank. During his appearance before U.S. Magistrate Judge Byron Cudmore, Russell waived indictment and entered a plea of guilty to a single count of embezzlement as charged in an information filed on Feb. 20, 2013, by the U.S. Attorney’s Office for the Central District of Illinois.
According to court documents and statements made during today’s hearing, the government estimates the total loss to the bank to be between $376,000 and approximately $562,292. According to statements presented by the government during today’s hearing, Russell began working at Hartsburg State Bank, in Hartsburg, Ill., in 1966. He became bank president in 1989.
Russell admitted that he began taking cash from the bank to pay for personal items and obligations. At some point, Russell began creating bank loans in the names of various bank customers, including relatives. When the various loans were due, Russell created different, larger loans in relatives’ names and other bank customers’ names to pay off the loans, as well as to embezzle additional money. Further, Russell admitted cashing a customer’s $15,000 certificate of deposit and applying the proceeds to a loan he had created in the customer’s name.
Sentencing for Russell is scheduled on June 27, 2013, before U.S. District Judge Richard Mills. For the offense of embezzlement, the statutory penalty is up to 30 years in prison and a fine of up to $1,000,000. The defendant may also be ordered to pay restitution to the victim.
The charges were investigated by the Federal Bureau of Investigation in coordination with the Hartsburg State Bank. Assistant U.S. Attorney Patrick D. Hansen is prosecuting the case.
Former Lincoln Resident Sentenced for Conspiracy to Distribute Methamphetamine and Cocaine and Failure to AppearRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 27, 2013, Fernando Sanchez-Sanchez, formerly of Lincoln, was sentenced to a total of 235 months in prison for conspiracy to distribute methamphetamine and cocaine and failure to appear.
Sanchez-Sanchez, 27, was originally indicted for conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine and 500 grams or more of a mixture or substance containing cocaine in March of 2009. Information provided to law enforcement indicated that between April of 2007 and September of 2008, Sanchez-Sanchez was responsible for the distribution of 15 kilograms or more of a mixture or substance containing methamphetamine and at least 2 kilograms of a mixture or substance containing cocaine. Sanchez-Sanchez pled guilty to that charge in July of 2009 and was scheduled to be sentenced on October 27, 2009, but he failed to appear for sentencing. In November of 2009, Sanchez-Sanchez was indicted for failure to appear. He was arrested on January 17, 2012, and pled guilty to the failure to appear charge in May of 2012.
The two cases were consolidated for sentencing, and Sanchez-Sanchez was sentenced to 188 months on the drug conspiracy charge and 47 months on the failure to appear charge, with the sentence for the failure to appear to be served consecutively to the sentence on the drug charge. Sanchez-Sanchez was also ordered to serve five years on supervised release following the prison terms and was ordered to pay $200 in special assessments.
The drug conspiracy case was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriffs Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police. The failure to appear case was investigated by the United States Marshal’s Service.
Former Lawrence County Man Sentenced to Prison for Failing to Register as A Sex OffenderRead the Press Release
PITTSBURGH - A resident of Lawrence County has been sentenced in federal court to 18 months imprisonment, to be followed by 10 years of supervised release, on his conviction of failure to register as a sex offender, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on James Andrew Williams, 45
According to information presented to the court, between Dec. 1, 2009, until March 2, 2010, Williams failed to register as a sex offender, as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshals Service for the investigation leading to the successful prosecution of Williams.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former El Paso Businessman Sentenced to Federal Prison for Role in Ammunition Smuggling SchemeRead the Press Release
This morning in El Paso, 49-year-old Hector Ayala, former owner of Uniforms of Texas, was sentenced to two years in federal prison for his role in a scheme to smuggle ammunition and other prohibited items into the Republic of Mexico announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis Ulrich in El Paso.
In addition to the prison term, United States District Judge David Briones ordered that Ayala perform 200 hours of community service and be placed under supervised release for a period of three years after completing his prison term. Furthermore, Judge Briones ordered that Ayala pay a $200,000 monetary judgment as well as forfeit to the Government 8,600 rounds of ammunition, $103,000 in U.S. Currency as well as approximately $1 million worth of military and law enforcement equipment seized by authorities during this investigation.
In December 2012, Ayala pleaded guilty to one count of facilitating the smuggling of goods from the United States. By pleading guilty, Ayala admitted that from September 1, 2009, to December 3, 2011, he concealedand facilitated the transportation of multiple calibers and quantities of ammunition; approximately 300 high capacity ammunition magazines and drums; and, approximately 800 ballistic vests with ceramic plates knowing that the items were intended to be exported from the United States into Mexico.
Dennis A. Ulrich, special agent in charge for HSI El Paso, said this case goes to the core of HSI’s mission,
which is to disrupt and dismantle transnational criminal organizations. “Our special agents are charged with investigating and arresting individuals who threaten national security and public safety by violating U.S. laws,” said Ulrich. “Successful prosecution of criminals who illegally export weapons and ammunition to Mexico also helps secure our border.”
The case was investigated by ICE-HSI agents together with the Bureau of Alcohol, Tobacco, Firearms and
Explosives as well as the El Paso Police Department Stash House Unit. Assistant United States Attorney Greg McDonald prosecuted this case on behalf of the Government.