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11 April 2013
Mission Woman Sentenced for Assault and Aiding and AbettingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota woman convicted of Assault with a Dangerous Weapon and Aiding and Abetting was sentenced on April 9, 2013 by U.S. District Judge Roberto A. Lange.
Misty Fawn Swalley, age 22, was sentenced to 15 months in custody, 18 months of supervised release, and a $100 special assessment to the Victim Assistance Fund.
Swalley was indicted by a federal grand jury on July 18, 2012 and pled guilty to the charge on January 9, 2013.
The conviction stems from an incident that took place on October 1, 2011, when Swalley and others assaulted and beat the victim, which ended when Swalley stabbed the victim with a broken bottle.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Timothy M. Maher.
Swalley was remanded to the custody of the U.S. Marshal.
Mission Man Pleads Guilty to LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that Harvey LaPointe, age 62, of Mission, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 8, 2013 and pled guilty to Larceny. 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.
The conviction stems from incidents that took place between August 1, 2009 and December 31, 2010, when LaPointe took money and property from the St. Francis Volunteer Fire Department to which he was not entitled.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for June 24, 2013. The defendant was released pending sentencing.
Miami Man Sentenced in $1.6 Million Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, and Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, announced that defendant Frantz Charles, 38, of Miami, was sentenced yesterday for his participation in a $1.648 million stolen identity tax refund scheme. Specifically, U.S. District Judge William P. Dimitrouleas sentenced Charles to 61 months in prison, followed by 4 years of supervised release, and restitution in the amount of $1.648 million. Charles previously pled guilty to one count of conspiracy to file false and fraudulent claims and another count of aggravated identity theft.
According to information in court documents, Charles was charged in a multi-count indictment along with other co-conspirators for participating in an identity theft tax refund scheme involving the use of the identities of over 900 deceased individuals to file fraudulent income tax returns. The tax refunds generated from the filing of these fraudulent returns were, in turn, deposited into bank accounts controlled by the defendant and other co-conspirators.
Mr. Ferrer commended the investigative efforts of IRS-CID, the U.S. Secret Service, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Jose A. Bonau.
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.
Meth Cook Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Daniel Thomas Leslie Pence, 33, of Elmore, Alabama, was sentenced to 155 months imprisonment in federal court today for his participation in a conspiracy to manufacture methamphetamine in Baldwin County. Pence entered a guilty plea to the charges in November of 2012. Court documents established that Pence was arrested when he was caught red-handed manufacturing methamphetamine at the residence of his co-defendant, Michael Hinote, on County Road 85 in Robertsdale during May of 2011. Hinote also entered a guilty plea to the charges but has not yet been sentenced.
Judge William H. Steele imposed the sentence in Pence’s case after conducting a hearing. Judge Steele found that the low end of the advisory guideline range, 155 months, was a reasonable sentence in light of the factors that federal sentencing statutes require to be considered, including the seriousness of the offense and Pence’s criminal history and background. The judge also ordered that Pence serve a five-year term of supervised release to begin after he serves his term of imprisonment. No fine was imposed, but the judge ordered that Pence pay the special mandatory assessment of $100.
The case was investigated by the Loxley Police Department, the Robertsdale Police Department and the Baldwin County Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Mescalero Apache Man Pleads Guilty to Unlawful Possession of A FirearmRead the Press Release
ALBUQUERQUE – Gary Raymond Ahidley, Jr., 27, a member and resident of the Mescalero Apache Nation, entered a guilty plea this morning to being a felon in possession of a firearm under a plea agreement with the U.S. Attorney’s Office.
Ahidley pled guilty to Count 1 of a superseding indictment charging him with unlawfully possessing a firearm in Nov. 2010, in Otero County, N.M. At the time, Ahidley was prohibited from possessing firearms or ammunition because he previously had been convicted on assault charges in federal court in Las Cruces, N.M., and ordered to serve a 41 month prison sentence in Feb. 2007.
In entering his guilty plea this morning, Ahidley admitted possessing a Luger 9 mm handgun in Nov. 2010. Court records reflect that Bureau of Indian Affairs (BIA) agents learned about the firearm in Dec. 2010 from a Mescalero woman who reported that Ahidley had assaulted her on Nov. 30, 2010. Based on information provided by the victim, the BIA agents were able to retrieve the weapon from a residence on the Mescalero Apache Reservation.
Ahidley has been in federal custody since his arrest in July 2012 and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Ahidley faces a maximum penalty of ten years in prison. Under the terms of the plea agreement, Count 2 of the superseding indictment, charging Ahidley with assault, will be dismissed after Ahidley is sentenced.
This case was investigated by the Mescalero Agency of the BIA Office of Justice Services and is being prosecuted by Assistant U.S. Attorneys Mick I.R. Gutierrez and Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
Maryland Man Sentenced to Eight-Month Prison Term for Failing to Register as A Sex OffenderRead the Press Release
WASHINGTON – Daniel Girard Coles, Jr., 46, of Laurel, Md., was sentenced today to eight months in prison on a federal charge of failure to register as a sex offender, announced U.S. Attorney Ronald C. Machen Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Coles has one prior conviction in Maryland for a sex offense involving a minor victim, which requires him to register as a sex offender. Prior to his sex offense conviction, Coles was an officer for the Metropolitan Police Department. According to the government’s evidence, Coles was registering as a sex offender in the District of Columbia, but, between August 2010 and December 2012, he lived in Laurel, Md., and did not register that information with the District of Columbia and, for the majority of that time, did not register that information with the State of Maryland.
Coles pled guilty in January 2013 in the U.S. District Court for the District of Columbia to one count of failure to register as a sex offender. He was sentenced by the Honorable John D. Bates. Upon completion of his prison term, Coles will be placed on five years of supervised release.
As part of an overall strategy to combat child exploitation, the U.S. Marshals Service launched a nationwide operation in 2010 to target sex offenders who knowingly fail to comply with their sex offender registration requirements. The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act in 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist the states in locating and apprehending non-compliant sex offenders.
In announcing the sentence, U.S. Attorney Machen and U.S. Marshal Hughes praised the members of the D.C. Superior Court Sex Offender Investigations Section of the U.S. Marshals Service, who investigated the case, and Assistant U.S. Attorney Cassidy Kesler Pinegar, who prosecuted the case.
13-130Mansfield Man Sentenced to More Than Four Years in Prison for Making Bomb ThreatsRead the Press Release
A Mansfield man was sentenced to more than four years in prison for making threats to courthouses in Nebraska, Washington, Oregon, Tennessee and Mississippi, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation for the Northern District of Ohio.
Lonny L. Bristow, 39, pleaded guilty today to with six counts of willfully making threats. He admitted to calling in bomb threats in November and December 2012.
U.S. District Judge Dan Aaron Polster sentenced Bristow to 51 months in prison.
Bristow made the threats using prepaid calling cards that purchased at the Wal-Mart Supercenter in Upper Sandusky, Ohio, according to court documents. Bristow had purchased several pre-paid calling cards and those pre-paid calling cards were linked to the false bomb threats placed to various courthouses spanning five states, according to court documents.
"These threats caused fear and panic throughout courthouses around the country," Dettelbach said. "The FBI did a tremendous job in piecing this case together."
"Lonny Bristow induced panic in hundreds of people across several states who were simply trying to do their work," Anthony said. "The FBI will continue efforts to aggressively pursue charges against anyone, such as Mr. Bristow, who chooses to make reckless and malicious bomb threats."
The case is being prosecuted by Assistant United States Attorney Thomas Getz after an investigation by agents of the Federal Bureau of Investigation.
Man Pleads Guilty to Bankruptcy FraudRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday TODD ALLEN FULCHER 49, of Phoenix, Arizona (formerly of New Bern) North Carolina pled guilty before United States District Judge Terrance W. Boyle to Bankruptcy Fraud, in violation of Title 18, United States Code, Section 157(3) and the destruction, alteration or falsification of records in violation of Title 18, United States Code, Section 1519.
According to the investigation, FULCHER filed a voluntary petition for relief under Chapter 13, of Title 11, in the United States Bankruptcy Court for the Eastern District of North Carolina on or about January 9, 2010. Pursuant to the Chapter 13 proceedings, FULCHER was required to file Schedules of assets and liabilities and a Statement of Financial Affairs with the United States Bankruptcy Court. Those Schedules and the Statement are filed under penalty of perjury. FULCHER failed to disclose his interest in certain personal and real property. FULCHER also hid a boat and a motorcycle from his creditors.
From on or around January 9, 2010, through November 2011, FULCHER made false and fraudulent representations concerning, and in relation to, a proceeding under Title 11, United States Code, after filing of the petition. Additionally, FULCHER knowingly concealed, covered up, and falsified information to obstruct the investigation or proper administration of a case filed under Title 11 (the Bankruptcy Code).
FULCHER faces a maximum sentence of 25 years imprisonment along with a total of 6 years of supervised release at sentencing.
Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Man Indicted for Producing Child PornographyRead the Press Release
MINNEAPOLIS—Recently in federal court, a 26-year-old man, formerly of St. Paul, was indicted for producing, distributing and possessing child pornography. On April 9, 2013, Douglas Luke Robinette was charged with four counts of production of child pornography, two counts of distribution of child pornography, and one count of possession of child pornography.
The indictment alleges that on three occasions in 2010, Robinette induced a 14-year-old boy to engage in sexually explicit conduct for the purpose of producing visual depictions of that activity on his cell phone. It also alleges that between July 1 and August 30, 2010, Robinette enticed that same victim to engage in similar conduct for the purpose of producing a video of that activity. In addition, the indictment alleges that on July 12 and July 18, 2010, Robinette distributed child pornography via a computer and on August 30, 2010, possessed child pornography on his computer.
If convicted, Robinette faces a potential maximum penalty of life in prison on each production count, 40 years on each distribution count, and 20 years on the possession count. All sentences would be determined by a federal district court judge.This case is the result of an investigation by the Rice County Sheriff’s Office, the Minnesota Bureau of Apprehension, and the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.
Production, distribution, and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Lubbock Man Admits Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Njeazeh Roderigue Ambeabet, 24, of Lubbock, appeared in federal court today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of production of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Ambeabet faces a statutory sentence of not less than 15 years or more than 30 years in federal prison, up to a $250,000 fine, and up to a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Ambeabet has been in custody since his arrest in February 2013.
According to documents filed in the case, last year, Ambeabet met an 11-year-old girl online and engaged in a texting relationship with her, frequently asking her to engage in sexual relations with him. He admitted that he was well aware of her age, and that he received sexually explicit images of her that were taken with her cell phone at his request.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by the FBI and the Lubbock Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Lorain Man Indicted Following Seizure of 40 FirearmsRead the Press Release
A Lorain man was indicted today on charges of being a felon in possession of firearms after he was found with 40 handguns and rifles, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jose Romero, age 32, was found to have 40 pistols, rifles and revolvers despite having a 2005 conviction in Lorain County for domestic violence, according to the indictment.
“This office places a high priority on keeping firearms out of the hands of those who are forbidden by law from obtaining them,” Dettelbach said. “Whether it is a person using a gun to commit a violent crime, a felon illegally obtaining a firearm or a straw purchaser trying to circumvent the law, we will aggressively pursue those who would violate our nation’s firearms laws.”
Romero told a confidential informant that he was interested in purchasing large numbers of firearms in an effort to influence their availability in Lorain, according to court documents.
The information indicated that Romero stores many of his firearms inside a safe inside his grandmother’s residence on Charleston Avenue in Lorain. Law enforcement officers subsequently searched Romero’s home on East 31st Street and the Charleston Avenue home on Feb. 26, 2013, according to court documents.
Investigators found firearms, marijuana and cocaine at the East 31st Street residence and a safe with 28 firearms at the Charleston Avenue residence, as well as marijuana, according to the court documents.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendants’ prior criminal record, the defendants’ roles in the offense and the characteristics of the violation. The sentence will not exceed the statutory maximum and in most cases will be less than the maximum.
This case is being handled by Assistant United States Attorney Robert F. Corts following an investigation by the Lorain Police Department, the Drug Enforcement Administration, Lorain County Drug Task Force and Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is only a charge and is not evidence of guilty. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lennie Brown Sentenced for Double ArsonRead the Press Release
LENNIE BROWN, age 23, a resident of New Orleans, Louisiana, was sentenced yesterday to 60 months of incarceration by United States District Court Judge Susie Morgan for two arsons that were committed in Gentilly in 2010, announced U. S. Attorney Dana J. Boente.
BROWN had previously pleaded guilty to two arson counts, one count of conspiracy to commit arson, conspiracy to use a destructive device, possession of a destructive device, and manufacturing a destructive device on May 11, 2011.
The Fuel Zone gas station/convenience store was the victim of two separate acts of arson in June of 2010. According to court documents, Larry Moses offered BROWN $1,500.00 cash to maliciously start a fire inside the store. On the evening of June 5, 2010, Moses and BROWN purchased a plastic squeeze bottle and filled it with gasoline. Moses and BROWN then drove their vehicle to a parking lot adjacent to the Fuel Zone. Before entering the Fuel Zone store, BROWN called Moses’ cell phone so that Moses, who remained in the getaway vehicle, could hear what was happening while BROWN was inside the store. Surveillance video showed BROWN, wearing a motorcycle helmet to disguise his identity, entered the store and proceeded to spray gasoline onto contents of shelves down one of the store aisles. BROWN started the fire using a lighter and exited the store as the fire erupted. BROWN ran back to the getaway vehicle and Moses quickly drove away from the scene.
In the days following the June 5th arson, Moses informed BROWN that he would not be paid until he committed a second more destructive fire at the Fuel Zone store but increased his offer to $3,000.00. BROWN then hired Michael Collins to assist him in a second act of arson. Moses instructed BROWN that for this second arson, the fire should be started near the store’s cash register area.
Las Cruces Woman Pleads Guilty to Robbing First Convenience Bank in January 2013Read the Press Release
ALBUQUERQUE – Yolanda Boyle, 58, of Las Cruces, N.M., pled guilty this morning to a felony information charging her with bank robbery. Boyle entered her guilty plea without the benefit of any plea agreement in federal court in Las Cruces.
During today’s plea hearing, Boyle admitted robbing the First Convenience Bank located in the Pro’s Ranch Market on Wyatt Drive in Las Cruces on Jan. 24, 2013.
According to court records, Boyle was arrested on Jan. 25, 2013, after several witnesses identified her as the bank robber. On the day of the robbery, a witness identified Boyle as the bank robber after seeing a bank surveillance photograph that had been posted on the Internet. Bank employees who viewed the surveillance photograph also recognized the bank robber as Boyle, who previously had been a bank customer.
On Jan. 25, 2013, another witness told law enforcement authorities that he went to a casino with Boyle the night before and that Boyle was in possession of a large sum of money and gave him gambling money. When Boyle was arrested later that day, she was in possession of some money stolen from the bank. During a post arrest interview, Boyle admitted robbing the bank.
Boyle, who was released on bond following her arrest, was remanded into the custody of the U.S. Marshals Service after she entered her guilty plea and will remain detained pending her sentencing hearing, which has not been scheduled. At sentencing Boyle faces a maximum penalty of 20 years in prison.
The case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office.Joplin Woman Sentenced for Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., woman has been sentenced in federal court for fraudulently receiving federal disaster benefits following the May 22, 2011 tornado.
Amber Nicole Peters, 22, of Joplin, was sentenced by U.S. District Judge Greg Kays on Wednesday, April 10, 2013 to 14 months in federal prison without parole, followed by five years of supervised release. The court also ordered Peters to pay $3,596 in restitution.
Peters pleaded guilty on Oct. 23, 2012, to disaster fraud. Peters admitted that she applied for federal disaster benefits by falsely claiming that her home and property had been damaged or destroyed in the May 22, 2011 tornado. In reality, Peters met a FEMA inspector at the tornado-damaged home belonging to her recently-deceased grandmother, which she falsely claimed was her primary residence. FEMA authorized payment in the amount of $3,596, of which $2,658 was for loss of personal property and $938 was for rental assistance. Peters was paid by electronic funds transfer on June 7, 2011.
As a result of Peters’s false claim, FEMA initially denied the legitimate claim later filed by her aunt, who lived at the home with Peters’s grandmother.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Indictments: Tax Preparers in KCK, Wichita Filed False Income Tax ReturnsRead the Press Release
KANSAS CITY, KAN. – A woman from Kansas City, Kan., has been charged with preparing fraudulent federal income tax returns for 13 people, U.S. Attorney Barry Grissom said today.
Kelly N. Kittrell, 42, is charged with 13 counts of preparing false and fraudulent income tax returns on forms 1040A and 1040 EZ for other taxpayers. The indictment alleges she falsified information about wages earned, amounts withheld and dependents claimed.
If convicted, she faces a maximum penalty of three years in federal prison and a fine up to $250,000 on each count. IRS - Criminal Investigation investigated. Justice Department Tax Division Trial Attorney Matthew Kluge and Assistant U.S. Attorney Scott Rask are prosecuting.
OTHER INDICTMENTS
Lata L. Tomlinson, 33, Wichita, Kan., is charged in a superseding indictment with 19 counts of preparing false federal income tax returns for a total of 17 people during tax years 2007, 2008 and 2009. The crimes are alleged to have occurred in Sedgwick County, Kan.
Tomlinson initially was charged in an indictment filed in March 2012 in U.S. District Court in Wichita.
The superseding indictment alleges she falsely stated deductions for depreciation, home improvements, business repairs, contract labor, legal fees, home repairs, medical expenses, advertising, insurance, car and truck expenses, hay and grain expenses, cell phones and care of dependents.
If convicted, she faces a maximum penalty of three years in federal prison and a fine up to $100,000 on each count. IRS - Criminal Investigation investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Jose Del Refugio Sanchez, 23, who is in federal custody in California, and Anabel Sanchez, 33, De Soto, Kan., are charged with one count of conspiracy to possess with intent to distribute methamphetamine. In addition, Anabel Sanchez is charged with maintaining a residence in De Soto, Kan., in furtherance of drug trafficking and one count of making false statements to the Drug Enforcement Administration; and Jose Sanchez is charged with one count of distributing methamphetamine. The crimes are alleged to have occurred during 2012 in De Soto, Kan.
The indictment alleges the defendants conspired with Leslie Kingsley II, Kristy Sherley, Tino Soriano and others to distribute methamphetamine. Those defendants were indicted in 2012.
Upon conviction, the crimes carry the following penalties: Conspiracy: Not less than 10 years and not more than life and a fine up to $4 million.
Maintaining a residence in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $500,000.
Distributing methamphetamine: Not less than 10 years and not more than life and a fine up to $4 million.
Making a false statement: A maximum penalty of five years and a fine up to $250,000.The Drug Enforcement Administration investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
James Scott Nickerson, 36, Fort Riley, Kan., is charged with one count of theft of public money, one count of Social Security disability fraud, three counts of wire fraud and three counts of making false statements to the Social Security Administration. The crimes are alleged to have occurred in 2009, 2010 and 2011 in Fort Riley, Kan.
The indictment alleges Nickerson defrauded the Social Security Administration of approximately $71,734 in disability payments by concealing from the agency his true work activity while serving in the U.S. Army.
Upon conviction, the crimes carry the following penalties: Theft of public funds: A maximum penalty of 10 years in federal prison and a fine up to $250,000.
Social Security disability fraud: A maximum penalty of five years and a fine up to $250,000.
Wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Making a false statement: A maximum penalty of five years and a fine up to $250,000 on each count.The Office of the Inspector General for the Social Security Administration investigated. Special Assistant U.S. Attorney Trey Alford is prosecuting.
Mauricio Matias, 32, a citizen of Mexico who has been living in Olathe, Kan., is charged with two counts of using false documents to be employed in the United States, two counts of making false statements to the government, two counts of misusing a Social Security number while employed at Aspen Lawn and Landscape in Olathe, and six counts of aggravated identity theft. The crimes are alleged to have occurred in 2004 and 2010.
Upon conviction, the crimes carry the following penalties: Using false documents: A maximum penalty of 10 years in federal prison without parole and a fine up to $250,000 on each count.
Making false statements to the government: A maximum penalty of five years and a fine up to $250,000 on each count.
Misusing a Social Security number: A maximum penalty of five years and a fine up to $250,000 on each count.
Aggravated identity theft: A mandatory two years in federal prison and a fine up to $250,000.The Social Security Administration - Office of Inspector General investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Illegal Sports Bookmaker Sentenced for Conspiring to Commit Sports BriberyRead the Press Release
United States Attorney Laura E. Duffy announced that Paul Joseph Thweni was sentenced today by the Honorable Anthony J. Battaglia to serve 30 months in custody, followed by three years supervised release, for his role in a criminal conspiracy.
The indictment charged that Thweni and nine others enriched themselves by operating an illegal sports gambling business and by distributing marijuana. Using proceeds from those crimes, Thweni and his co-conspirators influenced the outcome of basketball games at the University of San Diego (USD) during the 2009-2010 season, and then attempted to recruit players to do the same during the 2010-2011 season. Thweni pleaded guilty to the indictment on August 2, 2012.
According to court documents and other admissions, Thweni and his co-conspirators bribed co-defendant Brandon Johnson to influence the outcome of basketball games during the 2009-2010 season while Johnson was a member of USD’s basketball team. The co-conspirators then profited by placing bets at Las Vegas casinos on games Johnson influenced. Co-defendant Steve Goria, who was sentenced to 30 months imprisonment in October 2012, admitted that the conspiracy made more than $120,000 from the game-fixing scheme. Thweni previously admitted that during the 2010-2011 season, the co-conspirators attempted to recruit current college basketball players at USD and other schools to influence the outcome of basketball games in exchange for cash.
Judge Battaglia ordered the defendant to report on April 19, 2013 to begin serving his sentence.
DEFENDANT Criminal Case No. 11CR1345-AJB Paul Joseph Thweni SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371 - Conspiracy
INVESTIGATING AGENCYFederal Bureau of Investigation
Criminal Case Number: 11cr1345AJB: Convictions:
Steve Warda Goria
Richard Francis Garmo
Thaddeus James Brown
Brandon Johnson
Richard Thweni
David Gates
Jake SalterIdentity Thief Enters Guilty PleaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Maurice Hester, of Milledgeville, Georgia, entered a plea of guilty on April 8, 2013, to Counts One, Five, Six, Seven, Eight, Ten, and Eleven of a Superseding Indictment.
Count One of the Indictment charged Mr. Hester with Mail Fraud, in violation of Title 18 United States Code, Section 1341; Count Five charged Wire Fraud, in violation of Title 18 United States Code, Section 1343. The defendant faces a statutory penalty of up to 20 years imprisonment, a maximum fine of $250,000, followed by a term of supervised release of 3 years.
Counts Six through Eight charged False Claims Against the Government, in violation of Title 18 United States Code, Section 287. The maximum possible sentence is 5 years imprisonment and a maximum fine of $250,000 followed by a term of supervised release of 3 years.
Count Ten charged Theft of Stolen Government Money and Property, in violation of Title 18 United States Code, Section 641. The maximum possible sentence is 10 years imprisonment with a maximum fine of $250,000.
Count Eleven charged Aggravated Identity Theft, in violation of Title 18 United States Code, Section 1028A. The mandatory minimum sentence is 2 years imprisonment, to run consecutive to all other sentences. The defendant is subject to a mandatory assessment of $100.00 for each count.
Mr. Hester entered a guilty plea to Filing False Claims against the Government and Wire Fraud by filing false income tax returns and fraudulent claims for refunds, including one claim for a fraudulent refund of over $600,000. In addition, Mr. Hester pleaded guilty to Aggravated Identity Theft by filing tax returns in the names of others and then transmitting false refunds into his own bank accounts. The Indictment also charged Mr. Hester with Mail Fraud for unlawfully diverting the mail of another taxpayer, so the he could wrongfully intercept a U.S. Treasury check.
“When Mr. Hester committed these acts of fraud and identity theft, he stole from honest tax-paying citizens,” said U.S. Attorney Moore. Sentencing is set for June 25, 2013.
The investigation was handled by the United States Secret Service and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Graham Thorpe is prosecuting the case for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.
IRS Employee Pleads Guilty to Filing False Tax ReturnRead the Press Release
OAKLAND, Calif. – Kimberly S. Daniels, 46, an Internal Revenue Service (IRS) employee in Oakland, California, pleaded guilty yesterday to filing a false United States Individual Income Tax Return, announced United States Attorney Melinda Haag, Assistant Attorney General of the United States Department of Justice’s Tax Division Kathryn Keneally, and the Treasury Inspector General for Tax Administration J. Russell George.
According to the plea agreement, while an employee of the IRS in March 2011, Daniels filed her 2010 income tax return in which she fraudulently claimed two dependents, knowing they were not her dependents, and requested a tax refund of $4,175 to which she was not entitled.
Treasury Inspector General for Tax Administration J. Russell George noted that his office aggressively investigates all allegations of IRS employee corruption. “All IRS employees must properly file their tax returns, as they are expected to execute their duties with the highest standards of integrity in order to maintain the public’s trust in the American system of tax administration,” he said.
Daniels’ sentencing is scheduled for July 24, 2013 at 2:30 PM before United States District Court Judge Phyllis J. Hamilton in Oakland. The maximum statutory penalty for filing a false tax return as an IRS agent, in violation of Title 26, U.S.C. § 7214(a)(7) is 5 years in prison, a $250,000 fine, and mandatory dismissal from employment with the IRS. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is the result of an investigation conducted by Treasury Inspector General for Tax Administration investigators. United States Department of Justice Tax Division Trial Attorney Matthew J. Kluge and Assistant United States Attorney Michael G. Pitman are prosecuting this case.
Grand Jury Adds Tax Charges in Superseding Indictment of Former Bank Officer in Kanakee CountyRead the Press Release
Urbana, Ill. – A former loan officer and bank vice president, David Rabideau, 42, of Clifton, Ill., faces additional charges after a federal grand jury returned a superseding indictment yesterday that charges him with two counts of filing a false income tax return and a single count of making a false bank entry. The grand jury previously charged Rabideau in July 2012, with the illegal receipt of money for procuring a loan and money laundering.
The first indictment, filed in July 2012, alleged that in 2007, Rabideau corruptly received $75,000 as a kickback in connection with a real estate loan while he was employed as a loan officer and vice president of the State Bank of Herscher, in Kankakee county, Ill., and then used more than $10,000 of the proceeds in a financial transaction.
In addition to the original charges, the superseding indictment charges Rabideau with filing false income tax returns for the 2006 and 2007 tax years. Specifically, the indictment alleges that Rabideau omitted more than $50,000 he received as income in 2006, which should have resulted in an adjusted gross income of approximately $196,733 instead of the $143,988 reported in Rabideau’s 2006 return. As a result, the indictment alleges Rabideau should have paid additional tax of $16,334 for the 2006 tax return. For the 2007 income tax return, the indictment alleges that Rabideau omitted more than $120,000 in income, which should have resulted in an adjusted gross income of approximately $244,462 instead of the $156,860 reported in Rabideau’s 2007 return. As a result, Rabideau allegedly should have paid $39,854 additional tax for the 2007 return.
Rabideau is also charged with making a false bank entry in 2010, related to a $100,000 line of credit advance from the State Bank of Herscher to a friend’s business. Rabideau allegedly approached the friend to obtain a loan after Rabideau was instructed by the bank to repay the $75,000 he had allegedly received in connection with a loan in 2007. To hide the purpose of the draw from the line of credit, Rabideau instructed a bank employee to record that the loan was to “purchase golf car batteries.” According to the indictment, on Nov. 1, 2010, Rabideau’s friend wrote Rabideau a business check for $75,000, which Rabideau deposited into an account at another bank, and then allegedly wrote a check to the State Bank of Herscher to repay the bank $75,000.
The charges are the result of an investigation by the Internal Revenue Service Criminal Investigation Division; the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and, the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
A status hearing is currently scheduled for Rabideau to appear before U.S. District Judge Michael P. McCuskey in Urbana, Ill., on June 19, 2013. The U.S. Clerk of the Court will issue a summons for Rabideau to appear for arraignment on the additional charges.
If convicted, for the offense of accepting a kickback for procuring a loan, the maximum statutory penalty is up to 30 years in prison; for money laundering, the maximum statutory penalty is ten years in prison; for making a false bank entry, the penalty is up to 30 years in prison; and for each count of filing a false tax return, the statutory penalty is up to three years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Galion Man Sentenced to More Than A Decade in Prison for Child-Pornography ConvictionRead the Press Release
A Galion, Ohio, man was sentenced to more than a decade in federal prison after previously pleading guilty to a child-pornography charge, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Richard Cooper, age 32, was sentenced last week to 121 months in prison by U.S. District Judge Sara Lioi. He pleaded guilty in October 2012 to one count of receipt and distribution of visual depiction of minors engaged in sexual activity.
“Protecting our children from predators is a priority of this office and the Department of Justice,” Dettelbach said. “The evidence found here by the FBI and Galion Police Department is profoundly troubling, and this defendant deserves to be behind bars.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “Richard Cooper possessed an alarming amount of child pornography and must be held accountable. The FBI, along with our law enforcement partners, is committed to protecting children from predators.”
On Oct. 12, 2011, Galion police officers executed a search warrant and discovered 47 videos and approximately 772 images of child pornography being shared by Cooper’s computer, and an additional 644 additional images of possible child pornography recorded on two compact discs, according to court records.
A subsequent forensic examination of the computers and CDs revealed 1,416 images of child pornography and 47 videos depicting child pornography. The videos and images include children, some as young as four months, engaged in sexual acts with other minors and adults, including humiliating, sadistic conduct, according to court records.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Galion Police Department and Federal Bureau of Investigation, Mansfield Office.
Four Men Sentenced in Massive Smuggling CaseRead the Press Release
HOUSTON – Four Mexican nationals have been sentenced to federal prison for their roles in a large human smuggling case that resulted in the discovery of more than 80 illegal aliens in a Houston residence, United States Attorney Kenneth Magidson announced today. Luis Trejo-Onofre, 30, Jose Santos-Solorzano, 24, Jose Victor Perez-Olivas, 42, and Gumecindo Jaime-Martinez, 37, all pleaded guilty Oct. 31, 2012, to conspiracy to harbor and transport illegal aliens.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty pleas, handed each man a 37-month-term of federal imprisonment. As illegal aliens, they are expected to face deportation proceedings following release from prison.
The case began on Sept. 18, 2012, when a Nicaraguan national flagged down a Houston police officer to report that her 17-year-old daughter was being held by an alien smuggling organization extorting additional smuggling fees as a condition of her release. The woman, who had traveled from San Antonio to pick up her daughter from the smuggling organization, was directed to wire $1,700 to Jalisco, Mexico, via Western Union. The smugglers instructed her to deposit the money if she wanted to see her daughter again.
After several calls, the woman was told to meet at a local drug store where she could have her daughter for $1500. An undercover agent accompanied the woman to the meeting and observed the girl in the suspects’ vehicle. Soon after, agents and officers blocked the vehicle and activated emergency lights and sirens. Trejo-Onofre and Santos-Solorzano were in the two front seats, but refused to open the doors and rammed one of the vehicles surrounding them. Agents with Homeland Security Investigations (HSI) broke one of the windows, rescued the girl and took the suspects into custody.
The minor female advised that she was held along with several other illegal aliens, including children, who were being held by armed smugglers and often mistreated. The residence was soon located on the 3400 block of Boxelder in Houston. Perez-Olivas was observed and followed as he left to purchase food at a local store and return to the residence. Agents and officers then began to secure the residence and identify those inside.
Most of the male subjects were only wearing underwear. One of the agents recognized Perez-Olivas among the group whom several of the aliens pointed out as a smuggler as well as Jaime-Martinez.
Several aliens were struck and some were locked in a closet. The smugglers carried weapons which were found and seized by agents at the residence. The smugglers also ordered some of the aliens to remove their clothing in order to make it more difficult for the aliens to attempt an escape.
A total of 82 aliens were being held in the house from six different countries. Eight of them were juveniles.
Trejo-Onofre, Santos-Solorzano, Perez-Olivas and Jaime-Martinez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by HSI, the Texas Department of Public Safety and the Houston Police Department. Assistant United States Attorney Douglas Davis prosecuted the case.
Fort Yates Man Pleads to Assault with a Dangerous WeaponRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 11, 2013, Duane Kidder, Fort Yates, N.D., pleaded guilty in U.S. District Court to two counts of assault with a dangerous weapon.
On Jan. 16, 2012, Kidder assisted co-defendant, Lionel Jewett, in assaulting a woman in Fort Yates. Jewett assaulted the woman by using a garden hoe and a fence post pounder. Jewett pleaded guilty on Aug. 20, 2012. The victim’s injuries required medical treatment but were not life threatening.
In a separ ate incident, on Jan. 30, 2013, Kidder assaulted a woman by kicking her in the face with his foot while he was wearing shoes. The injury to the woman required medical treatment.
Each count of assault with a dangerous weapon carries a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Standing Rock Agency.
Sentencing for Kidder has been scheduled for July 19, 2013, in U.S. District Court in Bismarck, N.D.
Sentencing for Jewett has been scheduled for April 29, 2013, in U.S. District Court in Bismarck, N.D., at 2:30 p.m.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Former marathon runner and Olympic hopeful sentenced to eight years in prisonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Palmer, Alaska, man was sentenced in federal court in Anchorage to 96 months in prison for one count of possessing methamphetamine with intent to distribute and one count of felon in possession of a firearm and ammunition.
Brandon Wayne Moen (a.k.a. “Scooter”), 28, from Palmer, Alaska, was sentenced today by U.S. District Court Judge Timothy M. Burgess, to 96 months’ prison and 5 years’ supervised release.
According to Assistant U.S. Attorney Kyle G. French, who prosecuted the case, Alaska State Troopers arrested Moen in June 2012, for an outstanding State of Alaska arrest warrant issued based on allegations of a felony probation violation. When the Troopers placed Moen under arrest, they discovered a loaded Ruger .380 caliber semi-automatic pistol and $2,599 in United States currency in Moen’s attire.
Troopers impounded the vehicle Moen was in at the time of his arrest and a drug detection dog subsequently alerted to the odor of controlled substances in Moens’ vehicle. A search warrant was obtained and the Troopers found and seized various items from the vehicle, including methamphetamine, a bulletproof vest, syringes, hundreds of unused gram-sized baggies used for distributing narcotics, four grams of heroin, a digital scale, a pistol magazine, ammunition, and a tattoo gun. DEA laboratory testing determined that the methamphetamine he possessed was 99.4% pure.
According to an April 6, 2008, Central Illinois sports article, Moen was an elite athlete whose talent could not be “fully appreciated by a review of his stellar times and margins of victory.” Moen’s long-term goal was to break the 1:05:00 half marathon mark and qualify for the 2012 Olympic Trial Marathon. Moen was piling up marathon victories at that time and running 80 to 90 miles a week.
His counsel, Assistant Federal Defender Jamie McGrady, said Moen turned to drug use and became addicted after the tragic suicide of his bother. Ms. McGrady observed and stated in a court filing that “Mr. Moen can serve as a cautionary tale to others in prison and working on sobriety – his was a rare talent, and it was wasted because of his drug abuse.” At sentencing, Ms. McGrady also noted that Moen’s arrest probably saved his life.
In sentencing Moen, Judge Burgess emphasized that this was an opportunity for Moen to retake control of his life.
“Although Mr. Moen has a chance to rebuild his life,” U.S. Attorney Loeffler notes, “the destruction and waste of enormous talent caused by using drugs is sad and cannot be undone. While our entire community as a whole suffers from the corrosive harm caused by illegal narcotics, Mr. Moen is yet another reminder that the harm and resulting consequences occur at a very tangible individual and personal level.”
Ms. Loeffler commends the Alaska State Troopers and especially the Trooper’s Mat-Su Drug Unit, the ATF and the DEA who conducted the investigation leading to the successful prosecution of Moen.
Former U.S. Army Sergeant Pleads Guilty to Making False StatementsRead the Press Release
ALEXANDRIA, Va. – Ramy Elmery, 43, of Woodbridge, Va., pleaded guilty today to one count of false statements stemming from his failure to disclose a series of financial transactions with an Iraqi contractor in an application for top secret security clearance.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Stuart W. Bowen, Special Inspector General for Iraq Reconstruction; and Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office, made the announcement after the plea was accepted by United States District Judge T.S. Ellis, III.
Elmery faces a maximum penalty of five years in prison when he is sentenced on July 12, 2013.
In a statement of facts filed with his plea agreement, Elmery admitted that, while he was stationed in Iraq in 2007, he performed interpretation services in contract negotiations between the U.S. Army and an Iraqi contractor. In 2008, Elmery returned to the United States and asked the Iraqi contractor to pay him $500,000. At Elmery’s instruction, the contractor began wiring payments to an Egyptian bank account that belonged to Elmery’s brother. Elmery then opened an Egyptian bank account in his own name and received a payment into that account as well. In total, Elmery received approximately $47,000 from the Iraqi contractor.
In 2011, Elmery applied for top secret security clearance in conjunction with a defense contractor position. In his application, he failed to disclose the relationship with the Iraqi contractor and claimed that he had no foreign bank accounts. In an interview subsequent to submitting the application, Elmery again failed to disclose the relationship with the Iraqi contractor or the existence of the foreign bank accounts.
Pursuant to the plea agreement, Elmery also will forfeit the money he obtained from the Iraqi contractor.
This case was investigated by the Federal Bureau of Investigation, the Defense Criminal Investigative Service, the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command, and the Special Inspector General for Iraq Reconstruction (SIGIR). Assistant United States Attorney Kosta S. Stojilkovic of the Eastern District of Virginia and Special Trial Attorney Mark Grider of the Justice Department Criminal Division’s Fraud Section, on detail from SIGIR, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.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.Former Senior Audit Partner at KPMG Charged with Insider TradingRead the Press Release
Former Chief of KPMG’s Audit Practice For The Pacific Southwest Received Cash Bribes For Passing Confidential Information About KPMG Clients That Led To More Than $1 Million In Illegal Profits
LOS ANGELES – A former senior partner from the accounting firm KPMG LLP, who oversaw KPMG’s audit practice for the Pacific Southwest, was charged today for his involvement in an alleged insider trading scheme, announced United States Attorney André Birotte Jr., the United States Attorney for the Central District of California, and Bill L. Lewis, Assistant Director in Charge of the Federal Bureau of Investigation in Los Angeles.
Scott London, 50, of Agoura Hills, is charged in a federal complaint with one count of conspiracy to commit securities fraud through insider trading. The 24 page affidavit filed in support of the federal criminal complaint alleges that London provided confidential information about KPMG clients to Bryan Shaw, a close friend of his, over a period of several years and that Shaw used this information to make highly profitable securities trades that generated more than $1 million dollars in illegal proceeds.
“The public has every right to fully expect a level playing field in our financial markets," said United States Attorney André Birotte Jr. “As alleged in the complaint, Mr. London chose to betray the trust placed in him as a financial auditor and to tip the trading scales for the benefit of insiders like himself.”
“Mr. London’s alleged activity paints a disturbing picture in which confidential information was compromised for personal greed at the expense of the investing public,” said Bill L. Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI is committed to investigating allegations of insider trading and holding its beneficiaries accountable.”
In a separate action today, the U.S. Securities and Exchange Commission (SEC) announced the filing of civil charges against London and Shaw.
According to the criminal complaint filed today:
London was a senior partner at KPMG who supervised more than 500 accounting professionals at the firm and personally handled audits for major KPMG clients, including Herbalife Ltd. and Skechers USA, Inc. As a result of his position, London had access to confidential information about KPMG’s clients before that information was disclosed to the public.
From late 2010 and continuing until March 2013, London secretly passed highly sensitive and confidential information to Shaw regarding upcoming earnings announcements by certain KPMG clients, including Herbalife, Skechers, and Deckers Outdoor Corporation, before that financial information was disclosed to the public. On some occasions, London called Shaw two to three days before press releases were issued for KPMG clients and read confidential information from the draft releases to Shaw. London also disclosed to Shaw confidential information about impending mergers concerning KPMG clients before that information was made public. At times, London even discussed with Shaw how to structure Shaw’s purchases of the stock in certain companies in order to protect them from being discovered.
In exchange for passing the confidential information about KPMG’s clients, Shaw gave London tens of thousands of dollars in cash, typically arranging with London to meet him on a side street near Shaw’s business in order to give him bags containing $100 bills wrapped in $10,000 bundles. Shaw also gave London a Rolex Daytona Cosmograph watch worth an estimated $12,000, as well as jewelry and concert tickets, in exchange for the confidential information. Shaw profited more than $1 million from illegal securities trades based on the confidential information given to him by London.
As part of the government’s investigation of London’s insider trading scheme, Shaw agreed to cooperate with federal authorities and recorded conversations with London. In recorded conversations, London told Shaw specific details about upcoming earnings announcements for Herbalife and another KPMG client, Deckers Outdoor Corporation. In one call, London referenced rumors that had been spread about Herbalife going private, and told Shaw that if that took place, “[t]hat is going to be where you make a ton of money.” He suggested to Shaw that if London learned that Herbalife was going to go private, “what we oughta do is, when I know that it’s gonna start happening, what you do is you start just buying in small blocks, right, so it doesn’t draw attention and then, you know, then it doesn’t look unusual at all.”
On two occasions, acting at the direction of the Federal Bureau of Investigation, Shaw met with London and gave him cash as supposed payment for confidential information about KPMG clients. In the first instance, London met with Shaw on a street corner in Encino, California and accepted a bag with $5,000 in cash as payment for confidential information about Herbalife’s earnings announcement in February 2013. London later met with Shaw in a parking lot in Woodland Hills, California and accepted another bag with $5,000 in cash, which was supposedly London’s share of the illegal profits from trades based on confidential information about Decker’s February 2013 earnings announcement. In accepting the money, London told Shaw that they would have more opportunities to make money in the future. A surveillance photograph of London accepting one of these payments from Shaw is attached as an exhibit to the complaint.
London is expected to make his initial court appearance in United States District Court this afternoon at the Roybal Federal Courthouse in downtown Los Angeles.
The federal charge of conspiracy to commit securities fraud through insider trading carries a statutory maximum penalty of 5 years in prison, and a fine of $250,000 or twice the gross gain or loss from the offense.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The criminal investigation in this case is being conducted by the Federal Bureau of Investigation. United States Attorney Birotte praised the investigative work of the FBI and also thanked the SEC.
Release No. 13-049
Former Santa Fe Resident to Serve Four Years in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Carl Labadie, 60, a Colorado resident, was sentenced earlier today to four years in prison followed by ten years of supervised release for his child pornography conviction. Labadie also was ordered to pay $500.00 in restitution to each of the two victims whose images he possessed on his computers and computer-related media. Labadie will be required to register as a sex offender after he completes his prison sentence.
Labadie pled guilty on Jan. 11, 2013, to an indictment charging him with possessing child pornography in Santa Fe, N.M., on March 1, 2012. At the time he committed the offense, Labadie was a resident of Santa Fe, where he was self-employed as an acupuncture and massage therapist.
In his plea agreement, Labadie acknowledged that on March 1, 2012, agents of the New Mexico State Police (NMSP) and Homeland Security Investigations (HSI) executed a search warrant at his Santa Fe residence and seized computers and computer-related media. The search warrant was obtained based on a NMSP undercover investigation that began in Jan. 2012, which determined that an IP Address registered to Labadie was being used to access child pornography. While the agents were executing the search warrant at Labadie’s residence, Labadie voluntarily participated in an interview with NMSP and HSI agents during which he admitted using file-sharing programs to download child pornography for approximately four years.
Labadie also acknowledged that an examination of the images and videos on his computers and computer-related media by the National Center for Missing and Exploited Children revealed 5,350 images and 200 videos of 129 children who have been identified as child pornography victims and have been rescued.
Labadie has been in federal custody since entering his guilty plea.This case was investigated by the NMSP, HSI and the New Mexico Regional Computer Forensic Lab, and was prosecuted by Assistant U.S. Attorney Charlyn E. Rees.
U.S. Attorney Kenneth J. Gonzales said that Labadie was charged as part of Operation Artemis, an investigative effort by federal, state and local law enforcement affiliates of the New Mexico Internet Crimes Against Children (ICAC) Task Force aimed at identifying individuals throughout New Mexico involved in the distribution, receipt, and possession of child pornography through peer-to-peer file sharing programs. In March 2012, federal, state and local law enforcement officers executed thirteen unrelated federal and state search warrants at residences throughout New Mexico, and seized computers and computer-related evidence related to child pornography offenses. To date, ten individuals have been arrested for violating federal and state child pornography laws based on the search warrants executed as part of Operation Artemis. The law enforcement agencies that participated in Operation Artemis include: HSI, NMSP, New Mexico Attorney General’s Office, FBI, Albuquerque Police Department, Los Lunas Police Department, Santa Fe Police Department, Rio Rancho Police Department, and the New Mexico Regional Computer Forensic Lab.
Operation Artemis 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/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Regional Director of Federal Protective Service <br /> Pleads Guilty to Accepting Bribes from Government ContractorRead the Press Release
Derek Matthews, 46, of Harwood, Md., pleaded guilty today to accepting bribes from a government contracting company in exchange for using his position to help the company find and win contracts.
Neil H. MacBride, U. S. Attorney for the Eastern District of Virginia, Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division, and Charles K. Edwards, U.S. Department of Homeland Security (DHS) Deputy Inspector General, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
Matthews was charged by criminal information on April 11, 2013, with one count of conspiracy to commit bribery. Matthews faces a maximum penalty of five years in prison when he is sentenced on July 19, 2013.
Matthews served as Deputy Assistant Director for Operations for the DHS’s Federal Protective Services (FPS) and was later promoted to FPS Regional Director for the National Capital Region. In the fall of 2011, Matthews agreed with Keith Hedman, an executive at an Arlington, Va., security service consulting company referred to as Company B in court records, that in exchange for a monthly payment from Company B and a percentage of any new business obtained, Matthews would use his position to help Company B find and win U.S. government contracts, including with FPS. Matthews engaged in a series of official acts, including lobbying of government officials and sharing of information with Hedman, in an effort to obtain business for Hedman and Company B. In turn, Hedman and Company B paid Matthews three monthly payments totaling $12,500.
Hedman pleaded guilty on March 18, 2013, to conspiracy to commit bribery in connection with Matthews’ scheme, along with conspiracy to commit major government fraud as part of a separate scheme to fraudulently obtain more than $31 million in government contract payments that should have gone to disadvantaged small businesses.
This case was investigated by the Washington Field Office for the DHS Office of the Inspector General (OIG), the National Aeronautics and Space Administration OIG, the Small Business Administration OIG, the Defense Criminal Investigative Service, and the General Services Administration OIG. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer are prosecuting the case on behalf of the United States.
Former Regional Director of Federal Protective Service Pleads Guilty to Accepting Bribes from Government ContractorRead the Press Release
ALEXANDRIA, Va. – Derek Matthews, 46, of Harwood, Md., pleaded guilty today to accepting bribes from a government contracting company in exchange for using his position to help the company find and win contracts.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division, and Charles K. Edwards, U.S. Department of Homeland Security (DHS) Deputy Inspector General, made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema.
Matthews was charged by criminal information on April 11, 2013, with one count of conspiracy to commit bribery. Matthews faces a maximum penalty of five years in prison when he is sentenced on July 19, 2013.
Matthews served as Deputy Assistant Director for Operations for the DHS’s Federal Protective Services (FPS) and was later promoted to FPS Regional Director for the National Capital Region. In the fall of 2011, Matthews agreed with Keith Hedman, an executive at an Arlington, Va., security service consulting company referred to as Company B in court records, that in exchange for a monthly payment from Company B and a percentage of any new business obtained, Matthews would use his position to help Company B find and win U.S. government contracts, including with FPS. Matthews engaged in a series of official acts, including lobbying of government officials and sharing of information with Hedman, in an effort to obtain business for Hedman and Company B. In turn, Hedman and Company B paid Matthews three monthly payments totaling $12,500.
Hedman pleaded guilty on March 18, 2013, to conspiracy to commit bribery in connection with Matthews’ scheme, along with conspiracy to commit major government fraud as part of a separate scheme to fraudulently obtain more than $31 million in government contract payments that should have gone to disadvantaged small businesses.
This case was investigated by the Washington Field Office for the DHS Office of the Inspector General (OIG), the National Aeronautics and Space Administration OIG, the Small Business Administration OIG, the Defense Criminal Investigative Service, and the General Services Administration OIG. Assistant United States Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former New Jersey Resident Convicted of Preparing False Tax ReturnRead the Press Release
Ashraf Hassan-Gouda, a former resident of Mays Landing, N.J., pleaded guilty to one count of assisting in the preparation of a false federal individual income tax return, the Justice Department and Internal Revenue Service (IRS) announced today. Hassan-Gouda was charged by a federal indictment returned on March 27, 2007.
According to court documents, during 2003, Hassan-Gouda was the owner of Tax World, a tax preparation business located in Atlantic City, N.J. Hassan-Gouda prepared the false tax return for a client at his business.
The matter had been scheduled for trial beginning May 6, 2013 before U.S. District Court Chief Judge Jerome B. Simandle in Camden, N.J. Sentencing is scheduled for June 17, 2013. Hassan-Gouda faces a maximum potential sentence of three years imprisonment and a fine of up to $250,000.
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally thanked special agents of IRS - Criminal Investigation, for investigating the case, and Tax Division Trial Attorneys Yael Epstein, Thomas Voracek and Shawn Noud, who prosecuted the case.
Former NFL Player Sam Hurd Pleads Guilty to Role in Cocaine and Marijuana Distribution ConspiracyRead the Press Release
DALLAS — Samuel George Hurd, III, 27, appeared in federal court this afternoon and pleaded guilty, before U.S. District Judge Jorge A. Solis, to a superseding indictment charging conspiracy to possess with intent to distribute a controlled substance, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. There was no plea agreement between Hurd and the government; Hurd’s trial was to have begun on Monday, April 15, 2013.
That superseding indictment, which was returned by a federal grand jury on March 19, 2013, alleged that from July 2011 to on or about June 6, 2012, Hurd conspired to possess with the intent to distribute five kilograms or more of cocaine and 100 kilograms or more of marijuana. The superseding indictment also includes a sentencing notice stating that on or about June 6, 2012, Hurd, while on pretrial release, attempted to possess with intent to distribute five kilograms or more of cocaine and at least 50 kilograms, but less than 100 kilograms, of marijuana.
Two co-defendants, Toby Lujan and Jesse Tyrone Chavful, have pleaded guilty to their roles in the drug conspiracy and are awaiting sentencing. Both are in federal custody.
Hurd, who has been in federal custody since late August 2012, faces a statutory penalty of not less than 10 years and up to life in federal prison and up to a $10 million fine. Sentencing is set for July 10, 2013.
The investigation was led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Denton Police Department. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorneys John Kull and Errin Martin are prosecuting.
Former Mortgage Broker and Bank Officer Admits Conspiring to Defraud Bank in Connection with $1.48 Million LoanRead the Press Release
TRENTON, N.J. – A former mortgage broker and bank officer today admitted his role in conspiring to commit bank fraud in order to secure a $1.48 million residential real estate loan, U.S. Attorney Paul J. Fishman announced.
James Cockinos, 58, of Englewood Cliffs, N.J., pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an Information charging him with one count of conspiracy to commit bank fraud. Cockinos defrauded Washington Mutual Bank (later acquired by JPMorgan Chase) in New York, for the purpose of securing a $1.48 million residential loan.
According to documents filed in this case and statements made in court:
Cockinos was the owner/president of Federated Mortgage Company of America (“FMCA”). He was also a member of the Board of Directors at Mariner’s Bank. Cockinos, through FMCA, served as the mortgage broker on a residential loan with Washington Mutual Bank, F.A., in an application dated April 19, 2007. The borrower, identified as Individual 2 in the Complaint, applied for the loan at the request of a spouse identified as Individual 1 in the Complaint. There was no co-borrower on the loan.
The loan was for the purpose of purchasing for $1.9 million a property located in Englewood Cliffs. Cockinos was responsible for obtaining certain information from Individual 2 for purposes of completing the loan application. At the time that Individual 2 signed the loan application, Individual 2 did not review the contents of the application, which included information regarding the purpose of the property and Individual 2’s employment, income, and assets.
The application contained false statements concerning Individuals 2’s employment, income and assets. Cockinos also indicated in the application that he obtained the information from Individual 2 through a face-to-face interview, when in fact, no such interview took place.
The application indicated that Individual 2 had $400,000 in a joint checking account at Mariner’s Bank in New Jersey, when, in fact, Cockinos and Individual 1 caused $350,000 to be temporarily deposited into the joint account for the purpose of misrepresenting that amount as Individual 2’s assets. Cockinos also directed a Mariner’s Bank employee to falsely verify that there was $350,000 in the joint account for the prior two months, when in fact, there were significantly less funds in the account over the prior two months.
Washington Mutual ultimately approved a loan of $1.48 million and wired the loan amount to Individual 2’s closing attorney on June 17, 2007. On Sept. 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank. Between Nov. 2, 2010, and Jan. 10, 2011, Individual 2 defaulted on the loan. JP Morgan initiated foreclosure proceedings. The Englewood Cliffs property was sold on March 16, 2012, leaving JPMorgan Chase with a loss of more than $500,000 on the defaulted loan.
The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for July 23, 2013.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent In Charge Aaron T. Ford in Newark; special agents of the Federal Deposit Insurance Corp., under the direction of Special Agent in Charge of the Northeast Region A. Derek Evans; and criminal investigators from the U.S. Attorney’s Office in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Zahid N. Quraishi of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Edward J. Plaza Esq., NewarkCockinos, James Information
Former Helena-West Helena Police Officer Sentenced in Operation Delta BluesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that former Helena-West Helena Police Sergeant Marlene Kalb was sentenced to 30 months imprisonment with three years of supervised release to follow. No fine was imposed. Kalb was convicted on December 14, 2012, following a jury trial, of two counts of attempted extortion under color of official right and two counts of attempt to possess with intent to distribute cocaine. The sentence was imposed by United States District Judge James M. Moody. Kalb has been in custody since the verdict on December 14, 2012.
Kalb's convictions stem from an operation targeting corrupt police officers in the Arkansas Delta, including Helena-West Helena. The jury found that Marlene Kalb, while in uniform and on duty, provided a protective police escort for a purported drug trafficker, who was actually a confidential informant working with the FBI, and his cocaine by trailing him through Helena-West Helena in her police car on September 9, 2011 and September 26, 2011.
The FBI-led sting operation was part of the investigation known as "Operation Delta Blues," which focused primarily on public corruption and drug trafficking activities in the Helena-West Helena and Marianna, Arkansas, areas. Approximately 800 federal, state, and local law enforcement personnel from the FBI, Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigations (IRS-CID), Bureau of Alcohol, Tobacco, and Firearms (ATF), Arkansas State Police (ASP), and the Little Rock Police Department (LRPD) participated in the October 11, 2011, arrests.
The four other police officers indicted on October 11, 2011 previously pleaded guilty. Former Helena-West Helena Police Officer Herman Eaton pleaded guilty to one count of money laundering and one count of attempted extortion under color of official right. On May 16, 2012, U.S. District Judge Leon Holmes sentenced Eaton to 16 months imprisonment and 2 years supervised release. Former Marvell Police Officer Robert Wahls pleaded guilty to attempted interference with commerce by means of extortion ("Hobbs Act") and money laundering. On May 30, 2012, Judge Billy Roy Wilson sentenced Wahls to 24 months imprisonment and 2 years supervised release. Former Phillips County Deputy Sheriff and Helena West Helena Police Officer Dean Jackson pleaded guilty to one count of drug conspiracy relating to his role in the Sedrick Trice/Leon Edwards drug trafficking operation. On June 8, 2012, Judge Moody sentenced Jackson to 80 months imprisonment and 4 years supervised release. Former Helena-West Helena Police Officer Robert Rogers, aka Bam Bam, pleaded guilty to one count attempted interference with commerce by means of extortion ("Hobbs Act"). On August 1, 2012, Judge James M. Moody sentenced Rogers to 14 months imprisonment and 2 years supervised release. All four police officers remained in custody from the time of their arrest October 11.
A sixth former officer, Roxanne Davis, was charged in the Delta Blues case on September 17, 2012. Davis is set for trial on May 20, 2013, before United States District Judge J. Leon Holmes. She was a state probation officer and has also been charged with alleged Hobbs Act violations. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
The investigation was conducted by the United States Attorney's Office, FBI, DEA, ATF, IRS-CID, ASP and LRPD. It was prosecuted by Assistant United States Attorneys Julie Peters, Michael Gordon, and Benecia Moore.
Former Employee of Timeshare Consulting Firm Admits Fraud Conspiracy and Unemployment FraudRead the Press Release
CAMDEN, N.J. – A former employee of The Vacation Ownership Group LLC admitted today to conspiring to defraud owners of timeshare properties, U.S. Attorney Paul J. Fishman announced.
Alfred Giordano, a/k/a “Alex Jordan,” 33. of Myrtle Beach, S.C., pleaded guilty before U.S. District Court Judge Noel L. Hillman in Camden federal court to an Information charging him with one count of conspiracy to commit mail and wire fraud and one count of mail fraud.
According to documents filed in this case and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC (the “VO Group”), purported to offer consulting services to owners of timeshares, including timeshare cancellation services. In March 2010, Alfred Giordano started working at the VO Group and was trained by Adam Lacerda to call customers using prepared scripts. Giordano would call customers and give them the false impression that he was working for a bank or lending institution and that he had the customer’s “complaint file” in front of him. After hearing Giordano’s false representations, some customers sent checks to the VO Group. Giordano admitted to causing over $120,000 in losses.
Giordano also admitted to devising a separate scheme to defraud the New Jersey Department of Labor by collecting unemployment compensation benefits while working at the VO Group. Giordano admitted to applying for and collecting $13,676 in unemployment compensation benefits to which he was not entitled.
Two weeks ago, Alfred Giordano’s brother – another former VO Group employee – pleaded guilty to an Information charging him with his role in the fraudulent scheme. On March 27, 2013, Vincent Giordano, 28, of Atlantic county (using the same “Alex Jordan” alias as his brother) pleaded guilty before Judge Hillman to conspiracy to commit mail and wire fraud.
On Jan. 23, 2013, co-owners Adam Lacerda and Ashley Lacerda and other members of the VO Group were charged in a Superseding Indictment with conspiracy to commit mail and wire fraud and other charges. Additional members of the VO Group were also charged by Criminal Complaint in April 2012.The mail and wire fraud conspiracy charge to which Alfred Giordano pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. The mail fraud charge to which Alfred Giordano pleaded guilty is also punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for Jul 22, 2013.
The mail and wire fraud conspiracy to which Vincent Giordano pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. His sentencing is scheduled for July 1, 2013, at 11:30 a.m.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident
Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for their roles in the investigation leading to these guilty pleas. He also thanked the N.J. Department of Labor, Benefit Payment Control Unit, for its assistance.The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk, Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Alfred Giordano: Martin I. Isenberg Esq., Gibbsboro, N.J.
Vincent Giordano: Paul A. Sarmousakis Esq., Avalon, N.J.Giordano Superseding Information
Former Attorney Pleads Guilty to Fraud SchemesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Jackson County, Mo., attorney pleaded guilty in federal court today to bank fraud, which involved stealing funds from the Sam and Lindsey Porter foundation, as well as bankruptcy fraud.
Harley Kent Desselle, 62, of Raytown, Mo., pleaded guilty before U.S. District Judge Dean Whipple to one count of bank fraud and one count of making a false oath in a bankruptcy proceeding. He also admitted that he defrauded the widow of a longtime friend in an investment fraud scheme.
“A disbarred attorney took advantage of his clients, including a grieving mother and a friend’s widow, to line his own pockets,” Dickinson said. “He abused his clients and he abused the legal system for a client who declared bankruptcy. With today’s guilty plea, he will be held accountable for his flagrant misconduct.”
“Concealing assets in a bankruptcy proceeding is a crime that threatens the integrity of the bankruptcy process and public confidence in that process, especially when the concealment is done by the attorney responsible for assuring full disclosure,” stated Nancy J. Gargula, United States Trustee for Missouri, Arkansas and Nebraska (Region 13). “We are grateful to all of our law enforcement partners in this case, and in particular to U.S. Attorney Tammy Dickinson for her commitment to pursuing those who commit bankruptcy fraud and cause harm to consumers.”
At the time of the fraud schemes, Desselle was an attorney in private practice and operated an investment company called New Century Investments. Desselle was suspended from the practice of law in December 2008 and disbarred by the Missouri Supreme Court in April 2009.
Porter Foundation Scheme
Sam and Lindsey Porter were the children of Tina Porter. They disappeared in 2004. Their bodies were not discovered until 2007, when their father admitted his role in their deaths and pleaded guilty to murder. Beginning in 2007, donations were made to a bank account opened at the Bank of Grain Valley under the name of samandlindsey.org, Inc. Funds donated to the bank account were intended for use in building a children's playground.
Desselle charged $2,500 for the initial set up of samandlindsey.org, Inc. He began managing the samandlindsey.org, Inc., bank account in September 2007. At the time the foundation was established, Desselle told Tina Porter he would take care of everything on the account. He was the only person who could sign foundation checks. Porter asked Desselle, on numerous occasions, for bank statements and/or documents related to the account, but Desselle refused to produce documents and would not disclose the bank account information.
On Oct. 25, 2007, Desselle wrote a $12,000 check drawn on the foundation’s account and deposited it into his law firm trust account. Porter did not authorize the $12,000 check. On Oct. 29, 2007, Desselle wrote a $7,500 check drawn on the foundation’s account, made payable to New Century Investments and deposited into his New Century account. Porter was not aware of and did not authorize the $7,500 check.
When Porter learned of the $19,500 in misappropriations she insisted that Desselle return the funds to the foundation’s account. Desselle deposited two checks into the foundation account – a $19,500 check with “original investment” listed in the memo and a $2,238 check with “balance of investment with interest” listed in the memo. The $2,238 check actually came from legal fees earned by Desselle in his law practice and/or money borrowed from friends or family members instead of interest earned on the account.
Nunez Bankruptcy Scheme
Desselle acted as the attorney for Christina Nunez in her bankruptcy filing in 2008. Nunez owned a motorcycle that would not have been exempt under bankruptcy law. Desselle directed Nunez to sell the motorcycle and give him the proceeds, which she believed would be placed in the law firm’s trust account and used to pay down debt due her creditors. Desselle told Nunez the motorcycle sale proceeds would be exempt from bankruptcy creditors and not part of the estate.
Nunez sold the motorcycle for $13,500; she kept $500 and gave the remaining $13,000 to Desselle. Desselle used the $13,000 deposited in trust for Nunez for his own personal expenses rather than payment of Nunez's creditors.
Desselle filed Nunez's bankruptcy on Oct. 13, 2008. Nunez testified at a subsequent bankruptcy hearing that she never reviewed the bankruptcy petition and never signed the schedules. The bankruptcy schedules submitted by Desselle on Nunez's behalf did not include the $13,000 he received from Nunez for the sale of the motorcycle.
On May 12, 2009, the bankruptcy court ordered Desselle to refund all the money withdrawn from Nunez's trust account to the bankruptcy trustee. (Desselle refunded $7,251, but kept the remaining $5,749.) During the hearing, the court stated Desselle was involved in "...numerous acts of malpractice, deceit, and ...stealing," and "...likely falsified all of the bankruptcy schedules and statements and the various documents that had to be filed in order to initiate a bankruptcy filing."
Clifton Life Insurance Scheme
In addition to the two specific counts of the indictment to which Desselle pleaded guilty today, his plea agreement also acknowledges that he defrauded Nancy Clifton, who received $750,000 in life insurance proceeds in 1996 when her husband was killed in a motor vehicle accident. Desselle, a longtime friend of Clifton’s husband, offered to invest the life insurance proceeds for Clifton in New Century and promised her high yields on the investment.
Clifton received only two investment statements from Desselle, one in 2006 and one in 2007. Those statements were both false and fraudulent. Desselle created both documents to lull Clifton into believing her money was safe. In reality, Clifton's funds were lost by Desselle several years earlier, between 1998 and 2000.
Desselle made “interest payments” on Clifton’s investments by creating false documents to lull her into believing she was receiving interest payments, when the funds actually came from Desselle’s law firm or from funds Desselle solicited from family members. One of those payments came from the samandlindsey.org, Inc., account.
When Clifton read newspaper reports of Desselle’s handling of the Porter foundation account in 2008, she told Desselle to liquidate her investments as soon as possible. Desselle eventually admitted that her investments had all been lost.
Under the terms of today's plea agreement, Desselle must pay $343,045 in restitution to Nancy Clifton and $5,759 in restitution to the bankruptcy trustee in the Nunez case. The total restitution due is $348,794. The government and Desselle agree to recommend a sentence of 33 to 41 months in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by FBI and the U.S. Trustee for Region 13 and the Kansas City Office of U.S. Trustee. Region 13 of the U.S. Trustee Program is headquartered in Kansas City, Mo., with additional offices in St. Louis, Mo., Little Rock, Ark. and Omaha, Neb. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
Former Army Soldier Indicted on Bribery and Related Charges for Facilitating Thefts of Fuel in AfghanistanRead the Press Release
Stephanie Charboneau, aka Stephanie Shankel, 34, of Fountain, Colo., formerly a Specialist in the United States Army, has been indicted in the District of Colorado for her alleged role in assisting the thefts of fuel in Afghanistan and laundering the proceeds of crime, Acting Assistant Attorney General Mythili Raman of the Criminal Division announced.
According to the indictment returned on April 9, 2013, and now filed publicly, Charboneau was assigned to Forward Operating Base (FOB) Fenty, in eastern Afghanistan, as part of the 704th Brigade Support Battalion. Her duties included overseeing the movement of fuel by private Afghan trucking companies from FOB Fenty to nearby military bases. The indictment alleges that Charboneau conspired with Sergeant Christopher Weaver, her supervisor, and Jonathan Hightower, a civilian employee of FLUOR Inc., to facilitate the theft of fuel for money. Charboneau and her co-conspirators allegedly received money from a representative of an Afghan trucking company to enable that company to steal truckloads of fuel. The conspirators allegedly authorized the movement of truckloads of fuel from FOB Fenty – ostensibly to nearby bases – knowing and intending that when the fuel left FOB Fenty it would never reach the designated base and would instead be stolen. These events occurred from approximately February 2010 through approximately May of 2010.
In addition, the indictment charges that when Charboneau returned to the United States, she engaged in a series of transactions with the bribe proceeds to avoid the currency transaction reporting requirements. Charboneau allegedly purchased an automobile for $33,179 in cash through a $5,000 down payment, two $9,900 cashier’s checks she funded but were in the name of two acquaintances, and an $8,379 cashier’s check in her name.
Charboneau was charged with conspiracy, bribery, theft, money laundering and structuring. If convicted, she faces penalties of 20 years in prison for money laundering, 15 for bribery, 10 for theft of government property, and five for conspiracy and structuring. She also faces fines of $250,000 per count.
Weaver and Hightower have each pleaded guilty to a bribery conspiracy scheme and are awaiting sentencing.
This case was investigated by former Fraud Section Trial Attorney Mark Pletcher, who is currently an Assistant United States Attorney for the Southern District of California, and Special Trial Attorney Mark H. Dubester. The case was investigated by the Special Inspector General for Afghanistan Reconstruction, the Department of the Army, Criminal Investigations Division, the Defense Criminal Investigative Service and the FBI Denver field office.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Florida Man Charged with Conspiracy and Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Key West, Florida man has been indicted by a federal grand jury.
Michael Pearlingi, age 44, was indicted by a federal grand jury on April 2, 2013 for Conspiracy and Possession with Intent to Distribute a Controlled Substance. Pearlingi appeared before U.S. Magistrate Judge Mark A. Moreno on April 5, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is not more than 20 years of imprisonment, a $1,000,000 fine, or both; at least 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charges are merely accusations, and Pearlingi is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Pearlingi was remanded to the custody of the U.S. Marshal Service. A trial date has been set for May 14, 2013.
Federal Prison Guard Charged with Sexual Acts with an Inmate and Attempting to Aid an EscapeRead the Press Release
PHILADELPHIA - Lamont Lucas, 47, of Philadelphia, PA, was charged by indictment[Note:1]1, unsealed today, with sexual abuse of a ward, providing contraband in a prison, and instigating or assisting an attempted escape, announced United States Attorney Zane David Memeger. Lucas was arrested this morning.
According to the indictment, between February 2012 and May 2012, while working as a guard at the Federal Detention Center in Philadelphia, Lucas engaged in sexual acts with the inmate. It is further alleged that Lucas gave the inmate sterling silver earrings and assisted in an attempted escape by the inmate.
If convicted of all charges, Lucas faces a maximum possible sentence of 20 ½ years in prison.
The case was investigated by the U.S. Department of Justice Office of Inspector General with the assistance of the Federal Detention Center in Philadelphia. It is being prosecuted by Assistant United States Attorney A. Nicole Phillips.
Click here to view the indictment
1An Indictment/ Information/Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Federal Jury Finds New York Man Guilty of Passing Counterfeit $100 Bills at Connecticut StoresRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found SHAUN WHITEHEAD, 26, of Brooklyn, N.Y., guilty of using counterfeit U.S. currency to purchase items at five Connecticut stores. The trial before Senior U.S. District Judge Alfred V. Covello began on April 8 and the jury returned its verdict late yesterday after deliberating for approximately one hour.
According to the evidence presented during the trial, in January and February 2011, WHITEHEAD used counterfeit $100 bills to purchase iPads and Bose headsets from retail stores in Windsor, Waterford, Lisbon, South Windsor and Naugatuck.
WHITEHEAD was found guilty of five counts of passing counterfeit obligations. When he is sentenced, he faces a maximum term of imprisonment of 20 years and a fine of up to $250,000 on each count. A sentencing date has not been scheduled.
WHITEHEAD has been detained since March 9, 2011, when he was arrested in Massachusetts on a state larceny charge. He has been in federal custody since August 24, 2012.
This matter was investigated by the United States Secret Service, with the assistance of the police departments of Windsor, Waterford, South Windsor, Naugatuck and North Attleborough (Mass.), and the Connecticut State Police. The case is being prosecuted by Assistant United States Attorneys Felice Duffy and Ray Miller.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Federal Jury Convicts Bluefield Man on Multiple Crack Cocaine ChargesRead the Press Release
Seized drugs exceed $250,000 street value -- largest ever for Southern Regional Drug Task Force
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin today announced that a Mercer County man was convicted by a federal jury sitting in Bluefield on federal drug and firearm possession charges. Brady Woods, 37, of Bluefield, W.Va., was found guilty on all counts of a five-count indictment: two counts of distributing crack cocaine, one count of possession with intent to distribute more than 280 grams of crack cocaine, one count of possession with intent to distribute cocaine and one count of possessing a firearm in furtherance of a drug trafficking crime.
Evidence at trial proved that on January 31, 2011, the Woods sold crack cocaine near Bluefield. Trial evidence also revealed that in February 2011, Woods sold crack cocaine to an individual cooperating with law enforcement authorities. The illegal drug transaction took place near Bluefield. Woods was also convicted of possessing a .44 caliber firearm in relation to a drug crime.
The Southern Regional Drug and Violent Crime Task Force seized more than three pounds of crack cocaine as a result of this investigation. The drug seizure marks the largest of its kind that the Southern Regional Task Force has recorded. The illegal drugs seized by law enforcement have an estimated street value that exceeds $250,000.
Woods faces up to life in prison when he is sentenced on August 26, 2013 by Senior United States District Judge David A. Faber.
The West Virginia State Police Bureau of Criminal Investigations and the Southern Regional Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorneys Haley Bunn and Miller Bushong handled the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Federal Inmate Sentenced to A Year in Prison for Escaping Fci Prison CampRead the Press Release
BECKLEY, W.Va. – Federal Correctional Institution (FCI) Beckley inmate Randy Fay Prentice was sentenced on April 10 to a year in federal prison for escaping a satellite prison camp, announced U. S. Attorney Booth Goodwin. Prentice, 47, pleaded guilty to a one-count indictment that was returned by a federal grand jury in October 2012.
On September 19, 2012, Prentice knowingly escaped the satellite prison camp at FCI Beckley. A short time after his escape from the prison camp, Prentice was apprehended by prison officials.
The sentence was imposed by United States District Judge Irene C. Berger. The Court ordered the sentence to run consecutive to the defendant’s current prison term. Prentice was previously sentenced in September 2011 in the United States District Court in North Carolina to 81 months in federal prison.
A number of Federal Bureau of Prison institutions have a small, minimum security camps that are in close proximity to the main facility. These camps, often referred to as Satellite Prison Camps, provide inmate labor to the main institution and to off-site work programs.
The investigation was conducted by the U.S. Marshals Service and the Federal Bureau of Prisons. The investigation was also assisted by the West Virginia State Police and the Raleigh County Sheriff’s Department. Assistant United States Attorney John File handled the prosecution.
Federal Grand Jury Indicts San Antonio Businessman in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In San Antonio this morning, federal authorities arrested German Garcia Cano, owner of GGC Enterprises, Inc., on bribery charges in connection with an alleged bribery, kickback and bid-rigging scheme in Maverick County announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
A federal grand jury indictment, returned yesterday in Del Rio and unsealed earlier today, charges the 53-year-old San Antonio resident with two counts of paying a bribe to an agent of an organization receiving federal funds and wire fraud. According to the indictment, Maverick County paid GGC hundreds of thousands of dollars between 2009 and 2012 for leasing heavy equipment used in construction projects in Maverick County. The indictment alleges that Cano paid bribes to two Maverick County employees to insure that GGC secured those leasing contracts with Maverick County and to receive his checks from the county.
Upon conviction, Cano faces up to 10 years in federal prison per count.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Federal Grand Jury Indicts Former Maverick County Solid Waste Authority General Manager in Embezzlement SchemeRead the Press Release
In Del Rio this morning, former Maverick County Solid Waste Authority general manager and chief executive officer of the Maverick County landfill Hector Chavez, Jr., surrendered to the Texas Rangers in connection with an alleged embezzlement scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
A federal grand jury indictment, returned yesterday and unsealed today, charges the 42-year-old Chavez with one count each of possessing forged securities and theft concerning programs receiving federal funds. According to the indictment, from March 9, 2012 to December 28, 2012, Chavez possessed forged Maverick County checks, which he drafted himself, totaling $62,179.18 made out to Chavez and others. The indictment further alleges that all of the checks were subsequently cashed and Chavez collected all of the proceeds.
Upon conviction, Chavez faces up to 10 years in federal prison per charge.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety Texas Rangers Division. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Fargo Man Sentenced on Child Pornography ChargesRead the Press Release
FARGO - First Assistant U.S. Attorney Lynn Jordheim announced that on April 11, 2013, John Robert Ehlen of Fargo, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on one count of receipt of materials involving the sexual exploitation of minors and three counts of possession of materials involving the sexual exploitation of minors. Ehlen, 30, pleaded guilty to the charges on Dec. 3, 2012.
Judge Erickson sentenced Ehlen to 13 years’ imprisonment to be followed by 10 years of supervised release. Ehlen was ordered to pay restitution in the amount of $6,000 to three separate victims depicted in the child pornography images. Ehlen was also ordered to pay a $400 special assessment to the Crime Victim's Fund and to register as a sex offender.
This case came to the attention of law enforcement after officers assigned to the Internet Crimes Against Children Task Force (ICAC) discovered that Ehlen had been offering files of child pornography on the internet. ICAC officers obtained and executed a search warrant for Ehlen’s residence located in Fargo, N.D.
During the search warrant execution, officers seized various electronic media that was forensically examined by a North Dakota Bureau of Criminal Investigation special agent. The examination of such media revealed more than 225,000 images and 570 videos depicting children engaged in sexually explicit conduct. Some of the images depict children as young as one and two years of age.
The case was investigated by Homeland Security Investigations, North Dakota Bureau of Criminal Investigation and the Fargo Police Department.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.Essex County, N.J., Man Admits Credit Card FraudRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man today admitted his role in a scheme to illegally obtain and use duplicate credit cards, U.S. Attorney Paul J. Fishman announced.
Abdullah Bryant, 34, of Irvington, pleaded guilty before U.S. District Judge Dennis Cavanaugh to Count One of an Indictment charging him with bank fraud. Under the terms of the plea, the remaining four counts of aggravated identity theft and four counts of credit card fraud are dismissed.
According to the documents filed in this case and statements made in court:
Bryant and others got JP Morgan Chase Bank to issue and send, via UPS, 21 duplicate credit cards based on phone calls from persons purporting to be the credit card holders. The callers falsely represented that they were Chase Bank credit card account holders who needed replacement cards and requested that the cards be shipped to addresses different from those appearing on Chase's records.
Between Sept. 16, 2011, and Sept. 25, 2011, Bryant unlawfully obtained and used four credit cards issued by Chase Bank, making and attempting to make purchases totaling approximately $60,000. The purchases consisted primarily of luxury items such as jewelry and expensive electronic equipment such as computers, as well as 3D and HD television sets. The aggravated identity theft charges are based on defendant Bryant’s use of the identities of the four true account holders as he used the card.
The bank fraud charge is punishable by a maximum potential penalty of 30 years in prison and a $1 millionfine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 5, 2013.U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lorraine Gerson of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: Dennis Cleary Esq., NewarkBryant, Abdullah Indictment
Eight Mason City People Plead Guilty to Involvement in Meth ConspiracyRead the Press Release
Eight Mason City, Iowa, people who conspired to distribute methamphetamine pled guilty, in federal court in Cedar Rapids, Iowa.
Amy Marie Campbell, age 34, Freddy Lee Jones, age 23, Shelly Marie Rohrer, age 36, Stephen Lynn Collins, age 26, Slade Allen Smith, age 39, Amanda Marie Eldridge, age 33, Chad Michael Seger, age 35, and Corey Alan Gardner, age 33, all of Mason City, Iowa, have pled guilty to one count of conspiring to distribute methamphetamine. Campbell pled guilty March 28, 2013. Jones pled guilty April 3, 2013. Rohrer, Collins, Smith, Eldridge, and Seger, pled guilty April 4, 2013, and Gardner pled guilty April 5, 2013. Campbell, Seger and Gardner also pled guilty to one count of distributing methamphetamine; Jones and Eldridge also pled guilty to one count of possessing methamphetamine with intent to distribute; and Collins also pled to one count of possessing a firearm in furtherance of a drug trafficking crime.
During the conspiracy from November 20, 2011, through January 2013, Campbell, Jones, Rohrer, Collins, Smith, Eldridge, Seger, and Gardner were supplied methamphetamine by several sources, and were involved in the distribution of the methamphetamine. During October 2012 Campbell, Seger and Gardner each distributed methamphetamine to a confidential source. During a search in September 2012, Jones was found to be in possession of methamphetamine, which he intended to resell. During a search in November 2012, Eldridge was in possession of methamphetamine which she had obtained in Minnesota, which she intended to resell. During a traffic stop in November 2012 Collins was armed with a pistol which he used to protect himself in furtherance of his drug activity.
Gardner was previously convicted of a felony drug offense in Cerro Gordo County, Iowa, in April 2006.
Sentencing before United States District Court Chief Judge Linda Reade will be set after a presentence report is prepared. Eldridge, Seger, and Jones were taken into custody, and Rohrer, Gardner, Collins, Smith, and Campbell remain in the custody of the United States Marshal.
Campbell, Collins, Smith, and Eldridge, face a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, a $100 special assessment, and 10 years of supervised release following any imprisonment on the conspiracy charge, Gardner faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, a $100 special assessment, and 20 years of supervised release following any imprisonment on the conspiracy charge, and Jones, Rohrer, and Seger face a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years imprisonment, a $5,000,000 fine, a $100 special assessment, and 4 years supervised release following any imprisonment on the conspiracy charge. On the distribution charge Campbell and Seger face a possible maximum sentence of 20 years imprisonment, a $1,000,000 fine, a $100 special assessment, and 3 years supervised release following any imprisonment, and Gardner faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,000,000 fine, a $100 special assessment and 8 years of supervised release following any imprisonment. On the possess with intent to distribute charge Eldridge faces a mandatory minimum sentence of 5 years imprisonment and a possible maximum sentence of 40 years imprisonment, a $5,000,000 fine, a $100 special assessment, and 4 years supervised release following any imprisonment, and Jones faces a possible maximum sentence of 20 years imprisonment, a $1,000,000 fine, a $100 special assessment, and 3 years supervised release following any imprisonment. On the gun charge, Collins faces a mandatory minimum sentence of 5 years imprisonment and a possible maximum sentence of life imprisonment, to be served in addition to the punishment provided for the drug count, a $250,000 fine, a $100 special assessment and 5 years supervised release
The case is being prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, Clear Lake Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3004.
Dupo Man Found Guilty of Drug House and Firearms ChargesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Jacob Nelson, 32, of Dupo, IL has been found guilty of “Maintaining Drug-Involved Premises” and “Unlawful Possession of Firearms by a User of Controlled Substances.”
The guilty verdicts were returned in United States District Court in East St. Louis on Thursday, April 11, 2013, after a four-day jury trial. Nelson was acquitted on a fourth count of “Distribution of Heroin Resulting in Death.”
According to evidence presented at trial, Nelson sold heroin, cocaine, marijuana, hydrocodone (Vicodin) and alprazolam (Xanax) from a house on North Third Street where he resided in Dupo, between June 2010 and July 2012.
Nelson’s sentence hearing is scheduled for July 22, 2013 at 9 a.m., in United States District Court in East St. Louis. Nelson faces a maximum possible sentence of no more than 20 years imprisonment.
The investigation which resulted in Nelson’s conviction was conducted by the Columbia, IL Police Department and the Drug Enforcement Administration.
This case was prosecuted by Assistant United States Attorney Robert L. Garrison and Special Assistant United States Attorney Jungmin Lee.
Dunn Couple Sentenced for Health Care FraudRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court yesterday, Senior United States District Judge Malcolm J. Howard, sentenced JOHN CURTIS ALSPAUGH, 67, and HELEN BLUE ALSPAUGH, 59, of Dunn, North Carolina. JOHN ALSPAUGH was sentenced to 40 months imprisonment followed by three years supervised release and ordered to pay restitution in the amount of $1,614,003.26. HELEN ALSPAUGH was sentenced to 18 months imprisonment followed by three years supervised release and ordered to pay restitution in the amount of $1,392,115.21.
On January 8, 2013, the ALSPAUGH’S pled guilty to one count of Tax Fraud conspiracy in violation of Title 18, United States Code, Section 371, and JOHN ALSPAUGH also pled guilty to one count of Health Care Fraud in violation of Title 18, United States Code, Sections 1347 and 2.
Mr. Walker stated, “These crimes committed in this case defraud the IRS and taxpayers of valuable resources and shake the confidence in the system designed to provide medical care for people already in distress and in financial difficulties.” According to the investigation, JOHN AND HELEN ALSPAUGH formed Basic Home Health Care, Inc., a home health care business located in Dunn, North Carolina. Basic Home Health Care, Inc. provided personal care services to people who were homebound and needed assistance with their Activities of Daily Living (ADL) and Instrumental Activities of Daily Living (IADL).
The investigation by the Internal Revenue Service revealed that the Alspaughs collected employment taxes from employees and failed to pay over the taxes to the IRS, resulting in a tax liability in excess of one million dollars for the tax periods beginning in March of 2003 and ending in December of 2010. The investigation by the North Carolina Department of Justice’s Medicaid Investigations Division revealed that, from 2006 through 2011, John Alspaugh submitted bills in excess of $200,000.00 claiming to have provided for services to former clients who were deceased, incarcerated or otherwise not receiving personal care services from Basic Home Health Care, Inc.
“Employees have a right to expect their withheld employment taxes, which fund future benefits will be paid by their employer, “ said Jeannine A. Hammett, Special Agent in Charge of the Charlotte Field Office. “The IRS-Criminal Investigation takes this type of offense seriously and will continue its efforts to protect employees by rooting out employers who violate the tax laws.”
Investigation of this case was conducted by Special Agent Diane Taggart of the Internal Revenue Service-Criminal Investigation, and by Financial Investigator James G. Bryan of the Medicaid Investigations Division of the North Carolina Department of Justice. Assistant United States Attorney J. Gaston B. Williams and Special Assistant United States Attorneys Jacqueline Pérez and Michael Heavner prosecuted the case.
Defendant Charged with Attempting to Damage A Protected ComputerRead the Press Release
United States Attorney James L. Santelle announced that earlier today, Hua Jun Zhao (age 42) was arraigned in federal court on criminal charges that he: (1) had attempted to damage and had deleted information from a federally-protected computer at the Medical College of Wisconsin; and (2) had lied to the Federal Bureau of Investigation (FBI) in connection with an investigation into the alleged theft of an anti-cancer compound and related research data from the Medical College.
According to court records, a federal grand jury returned the two-count indictment against Dr. Zhao on April 9, 2013. If convicted, the defendant faces a maximum term of 10 years’ imprisonment, a fine of up to $250,000, and a maximum of 3 years’ supervised release for the charge of attempting to damage a protected computer, and a maximum term of 5 years’ imprisonment, a fine of up to $250,000, and a maximum of 3 years’ supervised release for the charge of making a false statement.
Court records indicate that Dr. Zhao, a research scientist formerly employed by the Medical College, previously had been charged in a criminal complaint with the theft of the anti-cancer compound, in violation of the Economic Espionage Act. The United States moved to dismiss that complaint without prejudice in light of the indictment returned by the grand jury. According to Court records, the indictment relates to efforts by Dr. Zhao to obstruct the investigation into the theft of the compound by lying to the FBI and by covertly accessing the Medical College’s computer server and attempting to delete proprietary information – including research data – related to the stolen compound.
United States Attorney Santelle explained: “The professional work being done by institutions like the Medical College of Wisconsin is vital to the present care and treatment and the future health and welfare of individuals in Wisconsin, throughout the United States, and across the globe. The United States Department of Justice, the Office of the United States Attorney, and the Federal Bureau of Investigation, in cooperation with our partners in the public and private sectors, are all committed to vigorously enforcing federal criminal law, to ensuring the safety of our community, to guarding against all threats to our economy, and to protecting our nation’s leadership in medical innovation and research.” United States Attorney Santelle added that the investigation into the ultimate disposition of the stolen compound and the ultimate intended use of the proprietary information stolen from the Medical College and transported overseas is continuing.
"Proactive outreach through our Strategic Partnership Program was a key factor in this case, the arrest was a direct result of building awareness of insider threats with our public and private partners," said Teresa L. Carlson, Special Agent in Charge, "the FBI will aggressively pursue those who damage or delete information on protected computer systems to further their own interests."
The investigation in this matter is being conducted by the FBI, and the case is being prosecuted by Assistant U.S. Attorney Stephen A. Ingraham.
Indictments and criminal complaints are merely the formal method of charging an individual and do not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.Dallas Men Indicted on Conspiracy, Kidnapping and Firearms ChargesRead the Press Release
Defendants Planned to Sell Victim into Sex Slavery
DALLAS — A federal grand jury returned an indictment yesterday charging Steric Paul Mitchell, 43, and Gregory Steven Hunt, aka “K.C.,” 40, with conspiracy, kidnapping and firearms charges stemming from their kidnapping last year of a female victim whom they planned to sell into sex slavery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The two men, both residents of Dallas, are currently in state custody. A date has not been set for them to make their initial appearance in federal court before a U.S. Magistrate Judge.
Specifically, the indictment charges each defendant with one count of conspiracy to commit kidnapping, one substantive count of kidnapping and one count of using, carrying and brandishing a firearm during and in relation to a crime of violence. In addition, defendant Mitchell, a convicted felon, is charged with possessing four firearms.
The indictment alleges that in early May 2012 an individual tells the victim in this case that she has a “good friend” who wants to hire a private dancer for a party and that the men are “safe.” At a hotel in Dallas, this individual introduces the victim to defendant Hunt, who pays the individual and then drives the victim to an abandoned house in Dallas, where defendant Mitchell was waiting. Mitchell hired Hunt to pick up the victim at the hotel and transport her to another location under the ruse that Hunt was taking her to a private party, when, in fact, Hunt and Mitchell planned to kidnap and sexually assault her.
At the abandoned house, Mitchell threatened the victim with a firearm and shocked her with a Taser to frighten and restrain her. Hunt then raped her while Mitchell stood guard with a firearm. Mitchell then shocked her again with a Taser, bound her ankles and wrists, wrapped her in a bed sheet, carried her to another motor vehicle and put her in the backseat. The next day, Mitchell drove the victim to another house in Dallas, where he carried her inside and raped her. Afterwards, Mitchell contacted an unknown individual and negotiated the sale of the victim. He told the victim that he was going to sell her into sex slavery and then drugged and bound her again. He again wrapped her in a bed sheet, put her in the backseat of a vehicle and drove her to a house in Duncanville, Texas, where he sexually assaulted her.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy and kidnapping counts each carry, upon conviction, a maximum statutory penalty of life in prison. The using, carrying and brandishing a firearm count carries, upon conviction, a mandatory consecutive sentence of at least seven years in federal prison. The felon in possession count carries, upon conviction, a statutory penalty of not less than 15 years in federal prison. Each count, upon conviction, also carries a statutory maximum fine of $250,000.
The investigation was conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Duncanville Police Department. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
Corpus Man Gets Maximum Sentence for Unlawful Manufacturing and Trafficking of FirearmsRead the Press Release
CORPUS CHRISTI, Texas – Michael Yarbrough, 22, of Corpus Christi, has landed in federal prison for 10 years for the unlawful manufacture and trafficking of AK-47 type firearms, United States Attorney Kenneth Magidson announced today.
Yarbrough was indicted along with Ashley Yarbrough aka Ashley Phillips, 25, and Stephen Atkinson, 29, in July 25, 2012, and arrested shortly thereafter. Michael and Ashley Yarbrough entered their guilty pleas before U.S. District Judge Nelva Gonzales Ramos a few days prior to trial on Jan. 8, 2013, while Atkinson had previously entered a plea of guilty in September 2012.
Today, Judge Ramos handed Michael Yarborough a term of 120 months in federal prison, the statutory maximum allowed by law. The sentence will be followed by a three-year-term of supervised release. Evidence presented at the sentencing hearing included Michael Yarbrough’s purchase of more than 900 parts kits and firearm receivers over a seven-month period, totaling more than $200,000. Also, evidence was presented that Yarbrough was selling the firearms to someone on the Mexico-U.S. border for further transport into Mexico. Several of the AK-47s manufactured by Michael Yarbrough have been seized in Mexico, including one seizure where three men were killed. The government’s evidence included the fact that this was the largest gun seizure in the history of the Corpus Christi Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Ashley Yarbrough, who had pleaded guilty to a lesser charge of making a false statement to federal agents was also sentenced today to three years probation. Atkinson is set for sentencing on May 1, 2013.
Michael Yarbrough and Atkinson were convicted of one count of unlawful manufacturing of firearms between Jan. 1, 2011, and July 2012. Michael Yarbrough also pleaded guilty to one count of transferring firearms knowing that a felony was to be committed. Ashley Yarbrough entered a plea of guilty to one count of making a materially false statement to federal agents regarding the gun activity going on at her residence.
This investigation began on Aug. 15, 2011, with the discovery of an AK-47 manufacturing business at a residence during the execution of an arrest warrant by United States Marshals in Corpus Christi. At that time, deputies encountered several individuals employed by Michael Yarbrough at a Corpus Christi residence. After agents obtained a search warrant, several fully assembled AK-47 firearms were seized along with multiple handguns, gun parts and firearms in various stages of completion. Agents also discovered duffle bags full of fully assembled AK-47 firearms, ammunition magazines and bandoliers. None of the seized firearms had serial numbers and none of the individuals present has a Federal Firearms License.
Agents have also uncovered a great deal of information regarding Michael Yarbrough and the people he employed to build AK-47 firearms for him. Agents discovered Michael Yarbrough sold fully assembled AK-47 firearms with no serial numbers in McAllen, at least 11 of which have been traced in Mexico by the unique tool markings on the firearms and other unique identifiers.
Michael Yarbrough will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Organized Crime Drug Enforcement Task Force investigation leading to the criminal charges was conducted in Corpus Christi lead by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Corpus Christi Police Department, the Texas Department of Public Safety, the Nueces County Sheriff’s Office, the Nueces County Probation Department and the United States Marshals Service. This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.