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10 April 2013
Justice Department Settles Race and National Origin Lawsuit Against Lee County, FloridaRead the Press Release
The Justice Department announced today that it has reached a settlement with Lee County, Fla. that, if approved by the district court, will resolve allegations that the county discriminated against three Hispanic employees on the basis of race and national origin in violation of Title VII of the Civil Rights Act of 1964, as amended.
The department’s complaint, previously filed in the Middle District of Florida, alleged that Lee County discriminated against Facilities Management Tradesworkers Leonides Sepulveda, Marco Ferreira, and Eduardo Rivera by subjecting them to racial and ethnic harassment. According to the complaint, from early 2007 through January 2009, the three employees were regularly subjected to racial and ethnic slurs by several of their co-workers. The discriminatory actions by co-workers included mocking Ferreira’s and Rivera’s accents, and making false accusations against Ferreira and Rivera to Lee County’s Office of Equal Opportunity in an effort to have the county terminate the two employees. The complaint further alleged that despite timely complaints about the harassment by the employees to their supervisors, as well as the supervisors’ direct observation of the harassment, Lee County failed to take any meaningful action to stop the harassment until January 2009, when the harassers were terminated. After the United States filed suit against Lee County, the three employees who were allegedly subjected to race and national original discrimination intervened in the lawsuit.
Under the terms of the settlement agreement, which must still be approved by the federal district court, the county is required to review and, if appropriate, revise its anti-discrimination policies for its workforce to protect its employees from discrimination. The county must also provide mandatory equal employment opportunity training to all Facilities Management employees that includes an emphasis on preventing race and national origin discrimination in the workplace. The settlement agreement also requires the county to pay the three affected employees $292,500 in monetary relief, including compensatory damages and attorney’s fees.
“Title VII ensures that employees have the right to work in an environment free of harassment based on their race and national origin,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “This settlement demonstrates the Civil Rights Division’s commitment to eradicate discriminatory harassment from the workplace.”
The continued enforcement of Title VII has been and remains a priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.usdoj.gov/crt/ .
Justice Department Seeks to Shut Down Mo’ Money Taxes Return-Preparation Firm and Its OwnersRead the Press Release
The United States has filed a civil injunction lawsuit seeking to shut down Mo’ Money Taxes, a Memphis, Tenn., based tax-preparation chain that at one time operated as many as 300 offices in 18 states, the Justice Department announced today. The United States accuses Mo’ Money Taxes and its owners, Markey Granberry and Derrick Robinson, and store manager Eumora Reese of creating and maintaining a business environment that encourages the preparation of fraudulent federal income tax returns.
The government suit alleges that the defendants promote a culture that favors volume and profits over accuracy and integrity, and creates an environment where fraudulent return preparation and tax-law violations flourish. According to the complaint, Mo’ Money Taxes’ managers, licensees and employees prepare fraudulent returns that cause their customers to incorrectly report their federal tax liabilities and underpay their taxes and charge customers bogus and unconscionably high fees.
The complaint alleges that the defendants style themselves as savvy marketers and promoters of the Mo’ Money Taxes brand and image – as evidenced by their commercials – and that Granberry and Robinson decided to change the business’s name following bad publicity in 2012 surrounding customer allegations that Mo’ Money Taxes failed to provide tax refunds to customers in a reasonable amount of time, if at all. According to the complaint, Granberry and Robinson now do business under the name Marquis Taxes and, along with Reese, under the name Southern King Taxes.
According to the complaint, the defendants encourage Mo’ Money preparers to
· Falsely claim the earned-income credit;
· Claim improper filing status;
· Claim bogus education credits;
· Improperly prepare returns using paystubs rather than employer-issued W-2 forms;
· Fabricate bogus W-2 forms;
· File tax returns without customers’ consent;
· Sell false and deceptive loan products; and
· Charge deceptive and unconscionable fees.
The complaint cites alleged examples of Mo’ Money Taxes customers in Memphis; Atlanta; Richmond, Va.; Jackson, Miss.; and Nashville, Tenn., whose returns had such fraudulent claims. The complaint also refers to several state-government actions related to Mo’ Money Taxes’ sale of refund-anticipation loans and charging of undisclosed or improper fees.
The complaint alleges that the estimated tax loss from fraudulent tax return preparation at Mo’ Money Taxes offices in Memphis, Atlanta, Richmond and Jackson in 2011 exceeds $9 million.
Return preparer fraud, claiming false income or expenses to secure larger refundable credits such as the earned-income credit, and identity theft are among the IRS’s “ Dirty Dozen ” Tax Scams for 2013.
“The nation’s tax system relies on the integrity of tax preparers,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “Most tax preparers are honest. We owe it to them and to all American taxpayers to use appropriate law enforcement tools to stop those who prepare fraudulent tax returns or who lure customers with deceptive loan products.”
“Americans understand that the timely and equitable collection of tax revenues is essential to ensuring the financial security of our citizens and nation as a whole,” said Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee. “Those who abuse the tax filing process by fraudulently diverting public revenues into their own pockets are essentially stealing from every American and should expect to be held accountable to the fullest extent of the law.”
The United States previously obtained a permanent injunction against Toney Fields and Trumekia Shaw, who operated a Mo’ Money Taxes location in Nashville.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website . For more information about choosing a tax return preparer, see the IRS website and the IRS YouTube Channel.
Related Materials:
United States v. Markey Granberry, et al.
Complaint for Permanent Injunction and Other Relief (PDF)Joplin Woman Pleads Guilty to Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Joplin, Mo., woman pleaded guilty in federal court today to fraudulently receiving federal disaster benefits following the May 22, 2011 tornado.
Amy Cherie Feagan, 28, formerly of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Dec. 13, 2012 federal indictment.
Feagan admitted that she applied for disaster assistance in June 2011. On June 3, 2011, Feagan met a FEMA inspector at a tornado-damaged apartment building in Joplin. Feagan completed an inspection, claiming to the inspector that the apartment building was her primary residence and answering his questions regarding her “residence.” Based on those representations, FEMA authorized an $11,764 payment to replace the contents of her claimed residence as well as numerous household items for herself and her children.
Feagan admitted today, however, that she did not reside in that apartment building at the time of the disaster. She had previously resided at that apartment, but moved some time earlier. At the time of the Joplin tornado, Feagan resided in transitional housing in Springfield following her release from incarceration.
By pleading guilty, Feagan admitted that she knowingly and fraudulently made materially false, fictitious, and fraudulent statements and representations to FEMA in connection with her application for disaster assistance.
Under federal statutes, Feagan is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by 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.
Husband and Wife Guilty of Falsifying Client Tax ReturnsRead the Press Release
HOUSTON – Marlin Jermaine Beckett and Gia Cooper Beckett have been convicted of tax fraud, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI).
The Becketts are husband and wife tax return preparers. Both were charged in separate, but related cases just last month. According to the factual basis in support of their respective pleas, they each admitted they claimed false business mileage deductions for local clients that fraudulently increased tax refunds by approximately $360,000 for tax years 2006 through 2009.
Just a short time ago, Marlin Beckett entered a guilty plea before U.S. District Judge Nancy F. Atlas, while Gia Beckett pleaded guilty last week. Both are set for sentencing on Sept. 24, 2013, at which time, each faces up to three years in prison and $250,000 fine. The plea agreement also requires that both defendants make full restitution for all of the fraudulent refunds.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Guilty Pleas Entered in Family-Run Tax Fraud SchemeRead the Press Release
BROWNSVILLE, Texas – Judy Lynn McCune, Loretta Ann McCune and Rania Ann Sanchez have pleaded guilty for conspiring to defraud the federal government in a scheme to prepare federal tax returns and cash refund checks in the name of deceased individuals, United States Attorney Kenneth Magidson announced today along with Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz.
Loretta Ann McCune and Sanchez entered their pleas just moments ago before U.S. District Judge Andrew S. Hanen, while Judy Lynn McCune pleaded guilty on April 8, 2013.
Judy Lynn McCune admitted she recruited members of her family, including her mother, Loretta Ann McCune, and her sister, Sanchez, into the scheme. The conspiracy involved obtaining Social Security numbers and dates of birth for deceased individuals through the Internet and then filing both paper and electronic federal income tax returns using the identifiers of these deceased individuals. The refunds were directly deposited in the personal bank account or mailed to the personal addresses of the accused. The total scheme consisted of approximately 340 false claims totaling $763,124 in filed false claims.
The three women face up to 10 years in federal prison as well as a possible $250,000 fine at their sentencing, which has been set for July 15, 2013, at 8:30 a.m. before Judge Hanen. They were permitted to remain on bond pending that hearing.
Robert and Edward Gutierrez, Judy Lynn McCune’s sons, are also charged in the scheme and are currently set for trial in June 2013. They are presumed innocent unless convicted through due process of law.
The case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Karen Betancourt.
Grand Jury Indictments Broaden Alleged Fraud Charges Related to $1.25 Million GrantRead the Press Release
SPRINGFIELD, Ill. – Three indictments returned today by the grand jury in Springfield, Ill., collectively broaden allegations of fraud related to a $1.25 million state grant awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program owned by Regina R. Evans, former police chief for Country Club Hills, Ill., and her husband, Ronald W. Evans, Jr., also formerly employed with the Country Club Hills Police Department. The grant agreement provided for an estimated 40 participants to receive bricklaying and electrical pre-apprenticeship training and GED preparation, at the Regal Theater, another entity owned by the Evanses.
Regina, 50, and her husband, Ronald Evans, 45, are charged in a third superseding indictment with fraudulent use of grant funds, specifically wire fraud (three counts), money laundering (seven counts each), and conspiracy to commit wire fraud and money laundering (one count). According to the indictment, at the time of the alleged fraud, from February 2009 to June 2010, Regina and Ronald Evans owned various for-profit and not-for-profit entities, including the Prime Time Group, Inc., the Regal Theater, LLC., and We Are Our Brother’s Keeper (WAOBK.) In February 2009, on behalf of WAOBK, Evans and her husband applied for grant funding offered under the Employment Opportunities Grant Program and administered by the Illinois Department of Commerce and Economic Opportunity (DCEO.) In September 2009, DCEO disbursed the $1,250,000 award for the two-year period, beginning on June 1, 2009, and ending on May 31, 2011. In fact, the indictment alleges that little, if any, of the training provided in the grant agreement, was ever completed.
Following the return of a prior superseding indictment against the Evanses, in June 2012, the grand jury investigation continued relating to unindicted offenses and persons, including potential money laundering offenses. The investigation included a review of more than $100,000 in checks issued by the Evanses and Ricky McCoy, Regina Evans’ brother, involving grant funds and made payable to various associates of the Evanses, including McCoy and Jeri L. Wright, purportedly for work done by associates under the grant program. The indictment alleges that more than $60,000 from the proceeds of the checks was deposited back into accounts which the Evanses controlled.
Another indictment returned today charges Jeri L. Wright, 47, of Hazel Crest, Ill., with money laundering (two counts), making false statements to federal law enforcement officers (two counts), and giving false testimony before a grand jury (seven counts), related to the investigation of the alleged fraudulent use of grant funds.
According to the indictment, Wright, a close friend and associate of the Evanses, allegedly received three checks in November 2009, totaling approximately $28,000, purporting to be for work related to the grant, and approximately $20,000 of the proceeds of the checks was allegedly deposited back into accounts controlled by the Evanses. The indictment further alleges that Wright made false statements to federal law enforcement officers when she was interviewed on various occasions in 2012, and that on Nov. 7, 2012, Wright made materially false statements to the grand jury.
A third, related indictment returned today charges Regina Evans, and her brother, Ricky McCoy, 52, of Chicago, with obstruction of justice, witness tampering, and conspiracy to obstruct justice and witness tampering, related to the ongoing investigation of the alleged fraudulent use of grant funds. In addition, McCoy is charged with three counts of money laundering. According to the indictment, McCoy served as the executive director of We Are Our Brother’s Keeper. The indictment alleges that on Nov. 12, 2009, a check in the amount of $16,249 was issued to McCoy, cashed, and the check’s proceeds deposited into a bank account controlled by the Evanses. Regina Evans and McCoy were previously charged by complaint with the charges related to obstruction and witness tampering. As a result of the additional charges filed in the criminal complaint, on Mar. 29, 2013, U.S. Magistrate Judge Byron Cudmore ordered that Evans be detained pending trial and her bond was revoked.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The ongoing investigation is being conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. The Illinois Department of Commerce and Economic Development is also cooperating in the investigation. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
If convicted, the maximum statutory penalty for each count of the various offenses charged is as follows: wire fraud - up to 20 years in prison; money laundering - up to 20 years in prison; obstruction of justice – up to 10 years in prison; witness tampering – up to 20 years in prison; conspiracy to obstruct justice and witness tampering – up to five years in prison; making a false statement to a federal law enforcement officer – up to five years in prison; providing false testimony before a grand jury – up to five years in prison. If convicted, Regina Evans faces additional penalties of up to 10 years in prison to be served consecutive to any sentence ordered for the underlying offenses because the offenses were allegedly committed while the defendant was on pre-trial release.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Georgia Resident Enters Plea to Cocaine ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
MARTINSBURG, WEST VIRGINIA — A 35-year old Stone Mountain, Georgia, resident entered a plea of guilty on April 9, 2013, in United States District Court in Martinsburg before Magistrate Judge David J. Joel.
United States Attorney William J. Ihlenfeld, II announced that: CHRISTOPHER MICHAEL ROOF entered a plea of guilty to “Possession with Intent to Distribute Cocaine Base and Cocaine Hydrochloride” in Martinsburg, West Virginia. ROOF, who is in custody pending sentencing currently scheduled for July 22, 2013, faces up to 20 years imprisonment and a $1,000,000 fine. This case was prosecuted by Assistant United States Attorneys Stephen L. Vogrin and former Assistant United States Attorney Thomas O. Mucklow and investigated by the Martinsburg Police Department.
Fridley Man Indicted for Transporting Others to Engage in ProstitutionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 27-year-old Fridley man was indicted for transporting another to engage in prostitution, pursuant to federal law. Napoleon Long, Jr., was charged with one count of enticing another for interstate travel to engage in prostitution and one count of transportation with intent to engage in prostitution. Federal law prohibits the interstate transportation of individuals for the purpose of prostitution.
The indictment alleges that in October 2011, Long, also known as Nate, persuaded a woman to travel to Colorado for the purpose of engaging in prostitution.
If convicted, Long faces a potential maximum penalty of 20 years in prison. All sentences would be determined by a federal district court judge. This case is the result of an investigation by the Anoka County Sheriff’s Office and United States Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also said approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.ice.gov/human-trafficking/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.
Four Harrison County Residents Sentenced on Crack Cocaine ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA - Four Harrison County Residents were sentenced on April 9, 2013, in United States District Court in Clarksburg by Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, announced that:
TYQUAY WILLIAMS a/k/a “LOON,” age 20 of Clarksburg, was sentenced to 97 months imprisonment to be followed by six years of supervised release. WILLIAMS entered a plea of guilty on December 7, 2012, to “Distribution of Crack Cocaine within 1,000 Feet of Monticello Avenue Park Playground” on March 5, 2012. WILLIAMS, was remanded to the custody of the United States Marshal pending designation to a Federal institution.
DANTE DUPREE, age 40, of Bridgeport, West Virginia, was sentenced to 63 months imprisonment to be followed by six years of supervised release. DUPREE entered a plea of guilty on November 28, 2012, to “Distribution of Crack Cocaine within 1,000 Feet of Glen Elk City Park” on June 21, 2012. DUPREE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
BRADLEY HUTSON, age 53, of Clarksburg, was sentenced to 63 months imprisonment to be followed by six years of supervised release. HUTSON entered a plea of guilty on November 28, 2012, to “Distribution of Crack Cocaine within 1,000 Feet of Glen Elk City Park” on March 22, 2012. HUTSON’s sentenced was increased due to his drug usage while on pretrial release. HUTSON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
REBECCA POWELL, age 50, of West Milford, West Virginia, was sentenced to 33 months imprisonment to be followed by six years of supervised release. POWELL entered a plea of guilty on December 4, 2012 to “Distribution of Crack Cocaine within 1,000 Feet of Glen Elk City Park” on March 22, 2012. POWELL, who is free on bond, will self-report to the designated Federal institution on May 9, 2013.
These cases were prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Harrison County Drug Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.
Former Union Leader Sentenced for Theft of Union FundsRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Joseph R. Grygorcewicz , 63, of Amherst, N.Y., who was convicted of embezzlement and theft of labor union assets, was sentenced to three years probation by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that while working as the elected Secretary-Treasurer of Local 1566, a union which represents railroad workers in the transportation industry, Grygorcewicz embezzled $39,989.72 in union funds. As Secretary-Treasurer, Grygorcewicz had check writing authority and access to the checking account of Local 1566. The defendant wrote checks to himself and forged the signature of the president of the union to illegally obtain the money. Of the amount that Grygorcewicz embezzled, $14,020.94 was paid back to the union before the crime was discovered.
The sentencing is the culmination of an investigation on the part of investigators from the United States Department of Labor, Office of Labor-Management Standards, under the direction of Joseph Wasik, District Director of the Buffalo District Office.Former Loan Officer Convicted of Fraud and Identity Theft Related to Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Following a six-day jury trial, Nicholas Lindsey, 40, of, Billings, Montana, was convicted today of nine counts of wire fraud and one count of aggravated identity theft for his role in a mortgage fraud scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Many innocent homeowners in Nevada have suffered because of this type of crime involving fraudulent residential mortgage transactions,” said U.S. Attorney Bogden. “Since 2008 when the FBI and our office made mortgage fraud prosecutions a priority, we have investigated, charged and convicted hundreds of persons for federal mortgage fraud crimes and most of them are now serving time in federal prison.”
According to the indictment and evidence presented to the jury during the trial, from about May to September 2006, Lindsey, who worked as a loan officer for Clear Mortgage and Signature Mortgage, recruited straw buyers to participate in what he described as a lucrative real estate investment opportunity by purchasing five homes in the Las Vegas area. Evidence at trial demonstrated that Lindsey secured over $3 million in mortgage loans by knowingly causing to be placed in the straw buyers’ mortgage loan applications false information concerning the buyers’ income, assets, and intent to occupy the homes. Once the mortgages were approved, Lindsey fraudulently diverted to his bank account a portion of the proceeds disbursed from escrow and used these funds for his own benefit. Lindsey realized additional profits by living in or renting out properties in the buyers’ names.
In addition to the five homes of which the buyers were aware, Lindsey stole two buyers’ identities and used their personal information to purchase three additional properties in their names. The evidence established that Lindsey leased two of these properties and collected rental income and used the third as his own personal residence. After collecting profits, Lindsey stopped making the mortgage payments on the properties and allowed all eight homes to default in the borrowers’ names, causing an estimated loss to lenders of $1.6 million.
Lindsey was ordered detained pending sentencing. He is scheduled to be sentenced by Senior U.S. District Judge Lloyd D. George on July 22, 2013, at 9:00 a.m. He faces up to 30 years in prison on each fraud count, as well as two years in prison on the aggravated identity theft count, which must be served consecutively to any prison term ordered on the fraud counts. He also faces fines of up to $1 million on each count.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Christina Brown and Department of Justice Trial Attorney Brian Young.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Former Hockey Association Treasurer Sentenced for Tax EvasionRead the Press Release
MINNEAPOLIS— Earlier today in federal court in St. Paul, a former Minnesota Amateur Hockey Association, District 2, treasurer was sentenced for evading his personal income taxes in 2010. United States District Court Judge Richard H. Kyle sentenced Steven Brier to eight months in prison on one count of tax evasion. Brier was charged on December 4, 2012, and pleaded guilty on December 17, 2012.
In his plea agreement, Brier admitted from April 2005 through September 2011, he stole at least $384,000 during his time as treasurer for the Minnesota Amateur Hockey Association, District 2. As treasurer, Brier had signature authority for the District 2 bank accounts and only one signature was required on the checks issued by the Association. Brier acknowledges that he wrote unauthorized checks to himself from District 2’s bank account. The treasurer position was not a paid position, so Brier was only supposed to receive money from the Association for reimbursable expenses paid out-of-pocket. To avoid detection and to make the checks look legitimate, Brier wrote “scheduling” and “playoff expense” in the memo line to make it appear that the checks were reimbursements of expenses he paid out-of-pocket.Over the years, Brier tried to pay back the amounts he owed before anyone found out. However, the defendant still owes District 2 much of the money that he stole. Brier tried to gamble at various casinos in an attempt to win back the money he owed to the Association.
During the tax year 2010, Brier evaded his personal income taxes by approximately $74,473. Brier also acknowledges that he attempted to evade his personal income taxes by approximately $240,396 during tax years 2007 through 2010. Brier failed to inform his return preparer of the money he took from District 2. Since Brier calculated his business income and expenses for his return preparer, he did not have to submit his business or personal bank statements, which would have shown the deposits from District 2. Brier agrees that the tax loss resulting from his evasion is at least $68,000 for the tax years 2007 through 2010.
This case was the result of an investigation by the Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Kevin S. Ueland.
Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.Five Indicted in Armed Robbery Conspiracy in Which Two Victims Were ShotRead the Press Release
Charges the Result of Investigation by the FBI’s Cross Border Task ForceGreenbelt, Maryland - A federal grand jury has returned a superseding indictment today charging five men in connection with a series of armed robberies, including an armored car robbery and a carjacking in which a victim was shot.
The following defendants are charged in the indictment:
Tonnie Floyd, age 21.;
Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 22;
Anthony Terrell Cannon, age 23.;
Keith Willie Reed, age 23; and
Tobias Richard Dyer, age 21.
Floyd, Freeman, Cannon and Reed are all from Washington, D.C. Dyer is from Upper Marlboro, Maryland.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and by Chief Alan Goldberg of the Takoma Park Police Department.
The 10-count indictment alleges that between October 26 and December 11, 2012, the defendants planned and organized armed robberies and other crimes of violence, used stolen vehicles in the commission of the crimes and attempted to conceal their identities.
Specifically, the indictment alleges that on October 26, 2012, after obtaining a stolen vehicle and arming themselves, Floyd, Freeman and Cannon robbed a Garda employee at gunpoint outside a store in the 1300 block of University Boulevard in Takoma Park. During the robbery, the defendants stole approximately $3,911 and fired a gun. They attempted to escape in the stolen vehicle, but were unable to do so when the car was disabled. The defendants then allegedly carjacked another vehicle, shooting the driver. According to the indictment, Floyd, Freeman and Cannon fled into Washington, D.C., where they set the vehicle on fire and continued their escape.
On December 11, 2012, Reed, Dyer and Cannon allegedly obtained stolen vehicles and armed themselves, then attempted to rob the BB&T Bank on S. Glebe Road in Arlington, Virginia. The indictment alleges that Reed, Dyer and Cannon then robbed a Loomis employee at gunpoint outside a store in the 6300 block of Linvingston Road in Oxon Hill, Maryland. After shooting the employee, the defendants allegedly stole $2,350 and the .40 caliber semi-automatic handgun belonging to the Loomis employee, then took the stolen vehicles into Washington, D.C., where they were abandoned.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each count of armed robbery; a maximum of life in prison for using, carrying and discharging a weapon during a crime of violence; and a maximum of 10 years in prison for interstate transportation of a stolen vehicle. Floyd, Freeman and Cannon also face a maximum of 25 years in prison for carjacking. An initial appearance has been scheduled for Freeman on April 16, 2013, in U.S. District Court in Greenbelt. Initial appearances for the remaining defendants have not yet been scheduled. The defendants are detained pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later crimina proceedings.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department and the Takoma Park Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who are prosecuting the case.
Fifty-Seven Charged with Operating <br /> Illegal Online Sports Gaming BusinessRead the Press Release
Thirty-four individuals and 23 entities have been indicted and accused of operating an illegal sports bookmaking business that solicited more than $1 billion in illegal bets, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Oklahoma Sanford C. Coats.
“These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds,” said Acting Assistant Attorney General Raman. “Today’s charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates, or where the defendants reside.”
“The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries,” said U.S. Attorney Sanford C. Coats. “I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise.”
According to the indictment, Bartice Alan King, aka “Luke” and “Cool,” 42, of Spring, Texas, conspired with others to operate internet and telephone gambling services first from San Jose, Costa Rica and then from Panama City, which took wagers almost exclusively from gamblers in the United States seeking to place bets on sports. Known since 2003 as Legendz Sports, the enterprise allegedly used bookies located in the United States to illegally solicit and accept sports wagers as well as settle gambling debts.
The 34 defendants are alleged to have been employees, members and associates of the ongoing Legendz Sports enterprise. The 23 corporate defendants are alleged to have been used by Legendz Sports to facilitate gambling operations, operate as payment processors, own websites and domain names used in the enterprise, launder gambling funds and make payouts to gamblers.
The indictment alleges that Legendz Sports sought to maximize the number of gamblers who opened wagering accounts by offering both “post-up” betting, which requires a bettor to first set up and fund an account before placing bets and “credit” betting, which allowed the bettor to place a wager without depositing money in advance through face-to-face meetings with bookies or agents.
The indictment alleges that Legendz Sports solicited millions of illegal bets totaling over $1 billion.
“These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds,” said Acting Assistant Attorney General Raman. “Today’s charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates, or where the defendants reside.”
“The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries,” said U.S. Attorney Sanford C. Coats. “I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise.”
“Individuals cannot skirt the laws of the United States by setting up illegal internet gambling operations in a foreign country, while living in the United States and enjoying all the benefits of U.S. citizens,” said Jim Finch, Special Agent in Charge of the FBI Oklahoma City Field Office. “The FBI, along with our law enforcement partners, will continue to be diligent in investigating such violations of federal law.”
“Combining the financial investigative expertise of the IRS with the skills and resources of the FBI makes a formidable team for combating major, greed-driven crimes,” said Andrea D. Whelan, Internal Revenue Service Special Agent in Charge. “This massive indictment is the result of our highly effective law enforcement partnership.”
If convicted, the defendants face up to 20 years in prison for racketeering, up to 20 years in prison for conspiring to commit money laundering, up to 10 years in prison for money laundering and up to five years in prison for operating an illegal gambling business.
In addition, the indictment seeks a forfeiture money judgment of at least $1 billion traceable to numerous specific assets that include real estate, bank accounts, brokerage and investment accounts, certificates of deposit, individual retirement accounts, domain names, a Sabreliner aircraft, a gas lease and vehicles.
The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty.
This case is the result of an investigation by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Susan Dickerson Cox and William Lee Borden Jr., from the Western District of Oklahoma and Trial Attorney John S. Han with the Department of Justice Criminal Division Organized Crime and Gang Section.For further information, reference is made to the 95-page indictment which can be found at www.justice.gov/usao/okw/index.html.
Fifty-Seven Charged with Operating Illegal Online Sports Gaming BusinessRead the Press Release
Indictment Seeks Forfeiture Money Judgment of $1 Billion
Oklahoma City, Oklahoma -- Thirty-four individuals and 23 entities have been indicted and accused of operating an illegal sports bookmaking business that solicited more than $1 billion in illegal bets.
United States Attorney Sanford C. Coats for the Western District of Oklahoma and Acting Assistant Attorney General Mythili Raman of the Criminal Division made the announcement after the indictment was unsealed.
"The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries," said U.S. Attorney Sanford C. Coats. "I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise."
"These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds," said Acting Assistant Attorney General Raman. "Today's charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates, or where the defendants reside."
According to the indictment, Bartice Alan King, aka "Luke" and "Cool," 42, of Spring, Texas, conspired with others to operate internet and telephone gambling services first from San Jose, Costa Rica, and then from Panama City, Panama, which took wagers almost exclusively from gamblers in the United States seeking to place bets on sports. Known since 2003 as Legendz Sports, the enterprise allegedly used bookies located in the United States to illegally solicit and accept sports wagers as well as settle gambling debts.
The 34 defendants are alleged to have been employees, members and associates of the ongoing Legendz Sports enterprise. The 23 corporate defendants are alleged to have been used by Legendz Sports to facilitate gambling operations, operate as payment processors, own websites and domain names used in the enterprise, launder gambling funds, and make payouts to gamblers.
The indictment alleges that Legendz Sports sought to maximize the number of gamblers who opened wagering accounts by offering both "post-up" betting, which requires a bettor to first set up and fund an account before placing bets, and "credit" betting, which allowed the bettor to place a wager without depositing money in advance through face-to-face meetings with bookies or agents.
The indictment alleges that Legendz Sports solicited millions of illegal bets totaling over $1 billion.
If convicted, the defendants face up to 20 years in prison for racketeering, up to 20 years in prison for conspiring to commit money laundering, up to 10 years in prison for money laundering, and up to five years in prison for operating an illegal gambling business.
In addition, the indictment seeks a forfeiture money judgment of at least $1 billion traceable to numerous specific assets that include real estate, bank accounts, brokerage and investment accounts, certificates of deposit, IRA, domain names, a Sabreliner aircraft, a gas lease, and vehicles.
"Individuals cannot skirt the laws of the United States by setting up illegal internet gambling operations in a foreign country, while living in the United States and enjoying all the benefits of U.S. citizens," said Jim Finch, Special Agent in Charge of the FBI Oklahoma City Field Office. "The FBI, along with our law enforcement partners, will continue to be diligent in investigating such violations of federal law."
"Combining the financial investigative expertise of the IRS with the skills and resources of the FBI makes a formidable team for combating major, greed-driven crimes," said Andrea D. Whelan, Internal Revenue Service Special Agent in Charge. "This massive indictment is the result of our highly effective law enforcement partnership."
The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty.
This case is the result of an investigation by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Susan Dickerson Cox and William Lee Borden, Jr., from the Western District of Oklahoma and Trial Attorney John S. Han with the Department of Justice Criminal Division Organized Crime and Gang Section.
Federal Jury Convicts St. Paul Felon for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found a 36-year-old felon guilty of possessing a nine-millimeter pistol. Following a three-day trial, the jury convicted Christopher Sean Daniels, of St. Paul, on one count of being a felon in possession of a firearm. Daniels was indicted on October 1, 2012.
Evidence presented at trial proved that on September 3, 2012, Daniels possessed a Smith & Wesson, nine-millimeter pistol. Because he is a felon, Daniels is prohibited under federal law from possessing a firearm at any time. Daniels was previously convicted in Illinois in 1995 and 1997 for delivery of a controlled substance. In addition, he was convicted in Hennepin County in 2006 for being a felon in possession and for second-degree assault. And in 2010, he was convicted in Anoka County for fourth-degree assault. Since all of those prior offenses were crimes of violence or major drug crimes, Daniels is now subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison. United States District Court Judge Donovan W. Frank will determine his actual sentence at a future hearing, yet to be scheduled.This case is the result of an investigation by the St. Paul Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and John E. Kokkinen.
Federal Judge Sentences Pittsburgh Heroin Dealer to 25 Years in PrisonRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh was sentenced on April 9, 2013, in federal court for violating federal narcotics trafficking and firearm laws, United States Attorney David J. Hickton announced today.
Harold Bacon, 30, was sentenced to serve 25 years in prison followed by eight years of supervised release by United States District Judge Arthur J. Schwab. From at least Jan. 18, 2010, when 18 bricks of heroin were seized from his rental car by Pittsburgh police detectives to March 3, 2011, when he was arrested after being indicted in federal court, Bacon supplied brick after brick of heroin to other heroin dealers. Bacon used young runners to store and distribute heroin for him and he used a female to pick up and transport hundreds of bricks of heroin from outside Pennsylvania to Pittsburgh.
In addition, on June 17, 2010, Bacon possessed a Desert Eagle .40 caliber pistol in furtherance of a drug trafficking crime. Bacon obtained the Desert Eagle pistol on that date in return for heroin. Bacon then attempted to transfer the Desert Eagle pistol to someone else shortly after he acquired it.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Police Department, the United States Postal Inspection Service, the Pennsylvania State Police, the Allegheny County Sheriff's Office, the Ross Township Police Department, the Canonsburg Police Department, and the Allegheny County Police Department for the successful investigation leading to the conviction and sentence in this case.
Federal Grand Jury Indicts Texas Man for Mailing Threats to Law EnforcementRead the Press Release
DALLAS — A federal grand jury returned an indictment today charging Jesse Brister, aka “Bozo,” with two counts of mailing threatening communications to law enforcement, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Brister, 27, of Conroe, Texas, is presently in custody in the Texas prison system, in New Boston, Texas, in an unrelated case. A date has not yet been set for him to make his initial appearance before a U.S. Magistrate Judge in federal court in Dallas.
“Based on the serious nature of the threats in these letters, resources were diverted from important investigations, such as those in Kaufman County, to investigate these threats, which ultimately proved to be hoaxes,” said U.S. Attorney Saldaña. “Such threats cause significant diversions of law enforcement resources and result in substantial disruption of public services. They will be prosecuted to the fullest extent of the law.”
The indictment alleges that on two occasions, on or about March 21, 2013, and on or about March 28, 2013, Brister mailed a communication, addressed to the U.S. Attorney in Dallas, that contained a threat to injure someone in retaliation for the prosecution of members of the Aryan Brotherhood of Texas.
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, each count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
The investigation into these threats was conducted by the Kaufman County Sheriff’s Office, the Texas Rangers (Texas Department of Public Safety), the FBI and other local, state and federal law enforcement agencies. Criminal Chief Assistant U.S. Attorney Chad Meacham is prosecuting.
Federal Court Shuts Down Louisiana Tax Return PreparerRead the Press Release
A federal court in Baton Rouge, La. permanently barred Ann Williams and her tax preparation firm, Ann’s Tax Service, from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, to which Williams and Ann’s Tax Service agreed without admitting the allegations against them, was signed by Judge James J. Brady of the U.S. District Court for the Middle District of Louisiana.
The government complaint alleged that Williams and her business had repeatedly prepared false federal income tax returns that understated customers’ tax liabilities. According to the complaint, Williams inflated or fabricated business expenses, reported fictitious business income, and fraudulently claimed the earned-income credit on customers’ tax returns. The government suit alleges that Williams’s fraudulent practices may have resulted in as much as $2.2 million in lost tax revenue. The U.S. Attorney’s Office of the Middle District of Louisiana assisted in the filing of this lawsuit by acting as local counsel.
The IRS lists return-preparer fraud as one of the Dirty Dozen Tax Scams for 2013. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Ann M. Williams , etc.
Complaint for Permanent Injunction (PDF)
Order of Permanent Injunction (PDF)
Ethan Allen Insurance Scam Sends Another to Federal PrisonRead the Press Release
HOUSTON – Robert Steve Mills, 58, of Bonita Springs, Fla., has been ordered to federal prison following his conviction of conspiracy to launder money, United States Attorney Kenneth Magidson announced today. Mills pleaded guilty July 26, 2012, to the charge in relation to the Ethan Allen Insurance Scam.
Today, U.S. District Judge Sim Lake, who accepted the guilty plea, handed Mills a sentence of 120 months in federal prison. He was further ordered to pay a $2,455,531 in restitution and will also be required to serve three years of supervised release following completion of the prison term.
Mills had admitted to conspiring to launder the proceeds of a fraud scheme that sold fake liability insurance policies through “benefit associations” operated from Texas called International Property Owners Association Ltd. and Global Property Owners Association Inc. and through a company domiciled in Pago Pago, American Samoa, called American Transport Insurance Corporation. The fake insurance was purchased by apartment complexes, condominium associations, bars, restaurants, trucks, taxi cabs, charter aircraft services and other businesses in the United States and Caribbean. One company that purchased the insurance was Shoreline Cruises Inc. which operated a 40-foot tour boat called the Ethan Allen on Lake George, N.Y. The tour boat operator discovered its insurance policy was fictitious after the Ethan Allen sank on Oct. 2, 2005, in a tragic accident that claimed the lives of 20 elderly tourists.
Mills has been in custody since Jan. 10, 2011, when a U.S. magistrate judge found he presented a serious risk of flight, having fled the United States in 2009 because of the government’s investigation.
Three others have also been convicted in this scheme. Christopher Purser pleaded guilty to conspiracy to commit wire fraud, while Edmund Benton and Malchus Irvin Boncamper pleaded guilty to conspiracy to launder money. Purser previously received a sentence of 188 months, while Boncamper and Benton are serving 97 and 120 months in prison, respectively.
The convictions were the result of an intensive investigation conducted by Internal Revenue Service – Criminal Investigation with assistance from Homeland Security Investigations and the Texas, New York and California Departments of Insurance. During this four-year investigation, the U.S. government also received extensive and valuable assistance from the governments of St. Kitts and Nevis and also St. Vincent and the Grenadines. Investigators also received valuable assistance from the governments of The Bahamas, Nicaragua, The Philippines and Australia.
Assistant U.S. Attorneys John R. Lewis and Belinda Beek are prosecuting the case.English Language School Officials Indicted for Immigration FraudRead the Press Release
Accused of Using School to Issue Fraudulent Student Visas
ATLANTA – The head of College Prep Academy in Duluth, Ga. and other school officials have been indicted on charges of conspiring to bring illegal aliens into the country and issuing them fraudulent immigration documents.
“These defendants are charged with using a student visa program as a front to cashing in on bringing immigrants here to work in local bars,” said United States Attorney Sally Quillian Yates. “From manufacturing false documents, to charging thousands of dollars in tuition payments to maintain the immigrants on their rolls, the defendants are charged with subverting the purpose of the student VISA program for profit.”
“Granting access to American schools to foreign students enriches both the student and the United States,” said Brock D. Nicholson, special agent in charge of Homeland Security Investigations, Atlanta. “Protecting the integrity of that system from fraud and abuse is an important part of our overall enforcement of immigration law.”
“The FBI remains a key law enforcement partner with respect to the ongoing and continued efforts to enforce immigration laws,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. Those individuals who systematically abuse our generous system that provides for higher education within the U.S. should rightly be a focus of those law enforcement efforts.”
According to United States Attorney Yates, the charges and other information presented in court; Dong Seok Yi, 52, of Duluth, Ga., is the President and CEO of the English language school named College Prep Academy. He also owns the Korean Times Atlanta, a newspaper company. In 2009, Yi filed an application with the U.S. Department of Homeland Security, Student and Exchange Visitor Program, and obtained approval for College Prep Academy to enroll foreign-born students and issue I-20 forms, which enables students to stay in the United States. Foreign-born students who are issued I-20s from universities and other institutions of higher education can get F-1 student visas permitting them to remain in the United States during the time of their schooling.
Once Yi obtained Student and Exchange Visitor Program certification for College Prep Academy, he and his co-defendants allegedly began facilitating the issuance of F-1 student visas to foreign-born individuals who were not entitled to, or eligible for, the visas. Yi allegedly conspired with Korean bar owners to enroll females into the school with the understanding that the females would not attend classes as required but would instead work as prostitutes in the bars. College Prep Academy issued them fraudulent I-20s that included false financial information.
Co-defendant Sook An Kil, a/k/a Stacy Kil, 41, of Duluth, Ga., who is the Academic Coordinator and Designated School Official for College Prep Academy, signed the I-20s under penalty of perjury. She also certified in the Student and Exchange Visitor Information System, a computerized system maintained by the Department of Homeland Security, that College Prep Academy’s “students” were active and attending class even though most never attended. Student and Exchange Visitor Information System records show that the school claimed enrollment of up to 100 students when less than half that number were attending class. Many simply began living and working in the country after obtaining a student visa from College Prep Academy.
Yi and co-defendant Chang Seon Song, 51, of Suwanee, Ga., the Academic Director for CPA, referred individuals to another co-defendant, Sang Houn Kim a/k/a Chris Park, 53, of Diamond Bar, Calif., to obtain false documents to support their F-1 visa applications. Kim allegedly manufactured and provided fraudulent passports, I-94 forms, school transcripts, bank statements, family registries, and other false documents to illegal immigrants to use in support of applications for F-1 visas. Kim charged the aliens thousands of dollars for the fraudulent documents. Yi and College Prep Academy profited by charging thousands in quarterly tuition payments for maintaining the immigrant on the student rolls.
A federal grand jury indicted the defendants on March 5, 2013, and returned a superseding indictment against them on April 2, 2013. Federal agents also executed a federal search warrant at the school this morning and seized bank accounts associated with the school.
The indictment charges one count of conspiracy and eight counts of making false statements in immigration documents. The conspiracy count carries a maximum sentence of five years in prison, and each false statement count carries a maximum sentence of ten years in prison. Each count carries a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the United States Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation.
Given the enforcement action against College Prep Academy’s owner, designated school official and academic director, investigators have been working with the U.S. Department of State – Consular Affairs Section to provide legitimate and prospective students with information regarding their options for maintaining their F-1 status. Students will be given the option of enrollment and transfer to another accredited educational program or returning to their home countries voluntarily.
Assistant United States Attorneys Stephen H. McClain, Susan Coppedge, and Thomas J. Krepp are prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Eleven Indicted for Money Laundering, Trafficking Cocaine Through East TexasRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Eleven individuals have been indicted for being involved in a major cocaine distribution ring responsible for money laundering and trafficking drugs through the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
An indictment was returned by a federal grand jury on Apr. 4, 2012, charging three individuals with conspiracy with intent to distribute cocaine. A separate two-count indictment was returned on Feb. 6, 2013 charging eight individuals with conspiracy with intent to distribute cocaine and conspiracy to launder money. Federal agents with the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation executed arrest warrants today for the 11 defendants. Those named in the indictments, which were unsealed today, are:
Jerry Trevino, 46, of Spring, Texas; Alvin Nelson, 60, of Houston; Thomas Drew Widak, 44, of Houston; Cesar I. Alvarez-Barrera, 43, of Tomball, Texas; Eduardo Silva, 39, of Roma, Texas; Juan Javier Correa, 53, of McAllen, Texas; Douglas Francis Waindel, 29, of Atlanta, GA; Jaime Luis Vivero-Flores, 46, of Houston; Jesus Amaya-Saenz, 29, of Hockley, Texas; Alfredo Soto-Valdez, 39, of Austin; and
Sandra Calderon Martinez, 31, of Houston.The April 2012 indictment alleges that from 1995 to June 2011, Trevino, Nelson and Widak conspired with others to distribute at least five kilograms of cocaine in the Eastern District of Texas and elsewhere.
The February 2013 indictment alleges that from 2003 to February 2013, Alvarez-Barrera, Silva, Correa, Waindel, Vivero-Flores, Amaya-Saenz, Soto-Valdez, and Martinez conspired to distribute at least five kilograms of cocaine in the Eastern District of Texas and elsewhere. They are also charged with conspiring to launder the proceeds of their illegal drug trafficking enterprise.
This case is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. During this operation, two individuals (Barrera and Trevino) believed to be leaders of major drug trafficking were arrested. Correa, who is also believed to be the leader of a major drug trafficking organization, remains at large. Law enforcement authorities are also still searching for Amaya-Saenz and Martinez.
The defendants all face a minimum of 10 years and up to life in prison for the drug conspiracy charge. The money laundering conspiracy charge carries a penalty of up to 20 years in federal prison.
This case is being investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, the Jefferson County Sheriff’s Office, the Port Arthur Police Department, the Houston Police Department, the Harris County Sheriff’s Office, the Nacogdoches County Sheriff’s Office, the U.S. Marshals Service and the Texas Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorney John Craft.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.El Salvador Citizen Convicted for Deportation Order NoncomplianceRead the Press Release
ALEXANDRIA, La.– United States Attorney Stephanie A. Finley announced today that Manuel Rivas, 45, of El Salvador, was found guilty on Friday by a federal jury on two counts of resisting his deportation. United States District Judge Dee D. Drell presided over the trial.
Rivas’ trial started Thursday and ended Friday morning with the jury returning the guilty verdict after deliberating for 28 minutes. Immigration and Customs Enforcement agents arrested Rivas on July 11, 2011, and he was issued an administrative order for removal because he was an alien convicted of a felony. According to court documents, Rivas refused to fill out necessary paperwork for his request for travel documentation from El Salvador on July 3, 2012, and Aug. 16, 2012.
“There is no basis for the defendant to remain in the United States after being convicted of a felony,” Finley stated. “His refusal to comply with deportation orders on multiple occasions caused unnecessary cost to ICE. I want to thank the prosecutor in the case and ICE officials who investigated this case.”
“Immigration and Customs Enforcement will continue to dedicate all its resources to prosecuting individuals who hamper their removal,” said Scott L. Sutterfield, acting field office director for the New Orleans Field Office. “This case illustrates our close cooperation with the U.S. Attorney’s Office for the successful prosecution of egregious immigration law violators who pose a threat to public safety and border security.”
Rivas faces four years in prison, a $250,000 fine, and one year of supervised release for each count. Sentencing has been set for July 5, 2013.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Earl M. Campbell and Special Assistant U.S. Attorney Seiji Ohashi prosecuted the case.
Eagan Man Pleads Guilty to Defrauding Investors in A Real Estate Investment ProgramRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 52-year-old Eagan man pleaded guilty to participating in a scheme to defraud real estate investors. On April 9, 2013, Tonii Carlos Greene pleaded guilty to one count of transactional money laundering. Greene, who was charged on March 20, 2013, in a superseding indictment, entered his plea before United States District Court Judge Donovan W. Frank.
In his plea agreement, Greene admitted that from early 2007 through at least August of 2008, he devised and participated in a scheme that involved the solicitation of money from investors under false pretenses. In particular, Greene solicited investments in a purported program through which properties were to be bought at a discount, rehabilitated, and either refinanced or sold. Investors were told that their money was a short-term investment loan and would be repaid with profits or interest. Investors were not told that their funds would be used for Greene’s personal use, or that their purported investment returns would be paid from later investor funds. The estimated loss to victims due to Greene’s actions is more than $1 million.
For his crime, Greene faces a potential maximum penalty of ten years in federal prison. Judge Frank will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigations, and the Minnesota Department of Commerce, with cooperation from the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Benjamin F. Langner and William J. Otteson.
This law enforcement action is in part sponsored by the interagency Financial Fraud
Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.The task force and the U.S. Attorney’s Office wants to remind people to protect themselves from investment fraud. For more information, visit http://www.stopfraud.gov/protect-securities.html.
District Man Sentenced to 40 Years in Prison for Murdering 16-Year-Old in Northwest WashingtonVictim, A Student at Roosevelt High School, Was Walking with the Defendant and Friends When the Defendant Suddenly Shot and Killed HimRead the Press Release
WASHINGTON – Raymond Roseboro, 23, of Washington, D.C., was sentenced today to 40 years in prison for first-degree premeditated murder while armed and related weapons charges in the slaying of a 16-year-old boy, U.S. Attorney Ronald C. Machen Jr. announced.
Roseboro was found guilty by a jury in February 2013, following a trial in the Superior Court of the District of Columbia. Two previous trials, in March and September of 2012, had resulted in hung juries. During the trial this year, the government presented additional evidence.
In sentencing Roseboro, the Honorable Russell F. Canan described the murder as a “senseless and cowardly killing” in which the defendant essentially “lured” the victim, Prince Okorie, to his death. The judge also ordered that, upon completion of his prison term, Roseboro will be placed on five years of supervised release.
According to the government's evidence presented at trial, the homicide occurred just before 4:25 p.m. on Nov. 30, 2010, near the intersection of Delafield Place and 8th Street NW, near the Sherman Circle area. Mr. Okorie was a student at Roosevelt Senior High School, along with the defendant and other witnesses.
Sometime after school let out at 3:15 p.m., Mr. Okorie and other teenagers were standing on a nearby neighborhood porch when Roseboro and Roseboro’s girlfriend walked by, heading towards the direction of the defendant’s nearby home. Mr. Okorie and some of his friends then left that porch and headed toward another home near the intersection of 7th and Emerson Streets NW, which was a frequent hangout among teenagers.
Soon thereafter, Roseboro appeared and asked Mr. Okorie to walk to the store with him. Two of Mr. Okorie’s friends joined them. As the group of four began walking to a nearby store, one of them had a quick conversation with a parent before rejoining the group along their walk. That parent recognized the defendant’s face as being among the young men who were walking with Mr. Okorie, and later selected Roseboro from a photo array.
The group continued walking along. There were no signs of animosity or tension, and Roseboro revealed only a calm exterior. Suddenly, just as the group had turned onto Delafield Place, shots rang out. One of Mr. Okorie’s friends in the group heard the shots and saw the victim falling; this friend ran off, his ears ringing. A second of Mr. Okorie’s friends, whose ears were also ringing and who had been distracted at seeing an adult across the street doing something with trash, heard a gunshot and looked to see Mr. Okorie lying on the ground. When that second friend looked up, he saw the defendant standing near Mr. Okorie with a gun in his hand and a mean “mug” on his face. The second friend then ran away, north on 8th Street, and heard additional shots as he ran from the scene.
Meanwhile, the adult across the street looked over at some point after the first shot and saw the victim lying on the ground and the shooter standing over him, firing at the victim with a gun in his hand. The adult was not able to recognize or identify the shooter, but did notice that the gunman had a hairstyle that consisted of short twists or dreads, and that the shooter ran into an alley that pointed in a southeasterly direction. The adult was also certain that the gunman had been walking among the group that was with the victim before the shooting.
Additional evidence revealed that Roseboro was the only one in the group with the hairstyle described by the adult. In addition, the direction of the alley that the shooter was seen running into pointed towards Roseboro’s home, which was a short walk from the murder scene. Autopsy evidence revealed that the shooting was at close range, consistent with witness accounts. Firearms evidence was also consistent with the witness accounts of there being one shooter, as the three .45 caliber casings that were recovered from the scene were fired from the same gun.
The government also presented evidence at trial that Roseboro was seen not long after the murder at his home, where he attended a meeting with a job counselor who arrived at the residence no earlier than 5:13 p.m.. The defendant’s demeanor at that meeting was as calm and relaxed as witnesses had reported his demeanor just seconds before the shooting.
As at previous trials, in the most recent trial Roseboro took the witness stand and contended that he had walked home after school with his girlfriend and remained with her at his home during the entire time period until the job counselor arrived. The defense also relied on the testimony of two of Roseboro’s relatives, the defendant’s mother and his cousin, to argue that the defendant had arrived home and stayed at home with his girlfriend during this entire time period.
In addition, the defendant himself denied even knowing the faces of Mr. Okorie’s friends who were with the victim at the time of his murder, claiming that was the case even after hearing their names during jury selection and then seeing them when they took the stand at the first trial. Roseboro also denied ever having hung out near the porch where Mr. Okorie and his friends were before the shooter walked up and asked Mr. Okorie to come along with him to the store. Roseboro did acknowledge that the murder scene was a five- or ten-minute walk from his home.
At the most recent trial, the government presented rebuttal witnesses. The first, who had been called by the defense and had testified similarly at the last trial, testified that the defendant, Mr. Okorie, and Mr. Okorie’s friends did indeed know one another and were all friends, and had all hung out together on previous occasions. The witness also testified that Roseboro had been hanging out with the others near 7th and Emerson Streets on prior occasions before Mr. Okorie’s murder.
The second was Roseboro’s girlfriend at the time of the murder, who was then 16 years old. Her testimony conflicted with that of the defendant and his relatives. The girlfriend’s account – and the defendant’s cellphone records -- refuted his contention that he was snuggling with her on the living room couch, and being watched by his mother, at the time of the murder.
In announcing the sentence, U.S. Attorney Machen praised the work of the Metropolitan Police Department, including homicide detectives, mobile crime officers, and firearms examiners, as well as the work of the Office of the Chief Medical Examiner for the District of Columbia. Mr. Machen also thanked the records custodian office for Sprint. U.S. Attorney Machen additionally commended the efforts of those who assisted with the case at the U.S. Attorney’s Office, including Paralegal Specialists Marian Russell, Starla Stolk, Diana-Maria Laventure, Brendan Tracz, and Phaylyn Hunt; Marcey Rinker and Shawn Slade of the Victim Witness Assistant Unit; and Joseph Calvarese and Anisha Bhatia of the Litigation Services Unit. He additionally thanked librarians Lisa Kosow and Abbie Blankman, and Victim/Witness Service Coordinator La June Thames.
Finally, he thanked Assistant U.S. Attorney Stephen J. Gripkey, who indicted and tried the case each of the three times.
13-127District Man Pleads Guilty to Possession of Child PornographyRead the Press Release
WASHINGTON – Keith Dietterle, 28, of Washington, D.C., pled guilty today to a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Dietterle, a former intelligence analyst at the FBI, entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Amy Berman Jackson is to sentence him on June 27, 2013. Dietterle faces a maximum of 10 years of imprisonment as well as a fine of $250,000. Under federal sentencing guidelines, he faces a likely sentencing range of 97 to 121 months in prison.
According to the government's evidence, on Nov. 7, 2013, Dietterle contacted a man he believed to be the father of an under-aged girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next several days, Dietterle engaged in online e-mail and instant message conversations with the undercover officer.
During this period of time, Dietterle sent the undercover officer three images of child pornography which depicted, among other things, adult men engaged in sexual acts with children. In addition, Dietterle sent the undercover officer various links to videos depicting graphic child pornography. Dietterle was arrested on Nov. 23, 2012 and has been in custody ever since.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Assistant U.S. Attorneys Julieanne Himelstein and Ari Redbord, who are prosecuting the case.
13-128Department of Justice FY 2014 Budget RequestRead the Press Release
Attorney General Eric Holder announced today that President Obama’s FY 2014 Budget proposal totaling $27.6 billion for the Department of Justice identifies over $561.4 million in efficiencies, savings and rescissions while providing resources to increase critical national security programs, and uphold the department’s traditional missions with an increased focus on gun safety, cyber security, financial and mortgage fraud, immigration laws, civil rights, prisons and detention capacity, and assistance for our state, local and tribal law enforcement partners. Although sequestration cut over $1.6 billion from the department’s budget in FY 2013 and creates countless operational challenges, the President’s budget replaces and repeals joint committee enforcement and provides for the department’s key priorities. The request represents a 3 percent increase in budget authority from the FY 2012 enacted level.
“The President’s budget request reflects a strong commitment to building upon the record of progress we have established in fulfilling the Justice Department’s most critical missions. The proposed budget will provide the department with the resources necessary to protect the American people from terrorism and other national security threats; to prevent and respond to violent crime; to enforce the civil rights to which everyone in this country is entitled; to protect the most vulnerable among us; to combat financial and mortgage fraud; and to work alongside key state, local and tribal law enforcement partners in achieving the goals we share,” said Attorney General Holder. “As in previous years, this budget incorporates department-wide savings and efficiencies, but the need for a balanced, bipartisan deficit reduction plan remains an urgent priority. And it is imperative that we eliminate current fiscal uncertainty and ensure that these critical enhancements can be implemented.”
The $27.6 billion budget request includes investments for critical administration priorities, including $4.4 billion to sustain the department’s critical national security mission; $395.1 million to combat gun violence; $92.6 million to increase funding for enforcement of cyber security; $55 million to investigate and prosecute financial and mortgage crimes; $25 million increase to address the growing immigration caseload; $7.5 million increase to prevent human trafficking, hate crimes and police misconduct; and $236.2 million to ensure prisoners and detainees are securely confined. The budget addresses the federal prison population by allowing eligible inmates to earn sentence reductions for good behavior and participation in certain reentry programs, freeing up federal prison space and reducing long-term costs. Finally, the budget continues to foster valued partnerships through state, local and tribal assistance to enhance public safety, protect women and children, and reduce recidivism.
The Department of Justice’s key priorities include:
· $4.4 billion for national security;
· $395.1 million to protect Americans from gun violence;
· $92.6 million enhancement for cyber security;
· $55 million increase for investigating and prosecuting financial and mortgage fraud;
· $25 million increase to support immigration laws;
· $258.6 million to help meet the Nation’s civil rights challenges;
· $236.2 million investment for federal prisons and detention;
· $2.3 billion – a net increase of $201.3 million – to maintain assistance to state, local and tribal law enforcement; and
· $561.4 million in federal program offsets and rescissions (includes $236.8 million in efficiencies, savings and offsets and $324.6 in one-time balance rescissions).
National Security
Defending our nation’s security from both internal and external threats remains the Department of Justice’s highest priority. The FY 2014 budget request provides a total of $4.4 billion to maintain critical counterterrorism and counterintelligence programs and sustain recent increases for intelligence gathering and surveillance capabilities.
The Administration supports critical national security programs within the Department, including those led by the FBI and the National Security Division (NSD). In FY 2012, the FBI dedicated approximately 4,200 agents to investigate more than 33,000 national security cases. NSD has continued to carry out its primary functions to prevent acts of terrorism and espionage in the United States and to facilitate the collection of information regarding the activities of foreign agents and powers.
In FY 2014, the department is investing $14 million to improve intelligence coordination and collection, expand information sharing efforts, and strengthen investigations of national security efforts in order to protect the nation and secure the homeland.
For more information, view the National Security Fact Sheet at www.justice.gov/jmd/2014factsheets/
Gun Safety
Gun violence has touched every state, county, city, and town in America. The President laid out a comprehensive plan to reduce gun violence and save lives. As part of this effort, the department’s FY 2014 request of $395.1 million, including $173.1 million invested in federal programs and a total of $222 million in grant programs, provides additional resources to combat gun violence and improve the process used to ensure that those prohibited from purchasing or owning guns are kept from doing so. Funding increases are also provided to improve criminal history records information; initiate a new Comprehensive School Safety Program; provide active shooter response training to state and local law enforcement officers, first responders and school officials; and enhance the enforcement of existing gun laws.
Specifically, the request strengthens the national background check system by investing $100 million to double the existing transaction capacity of the FBI’s National Instant Criminal Background Check System (NICS). This is vital to ensure the NICS system can support a Universal Background Check requirement. We are also taking a thorough look at our federal laws and our enforcement priorities to ensure that we are doing everything possible at the federal level to keep firearms away from traffickers and others prohibited by law from possessing firearms. As directed by the President, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has recently published guidance to federal agencies on how to trace recovered firearms and requests $51.1 million to support additional investigative and regulatory resources as well as improvements to ATF’s tracing system. The department is also requesting $22 million to enhance the National Integrated Ballistics Information Network and better support law enforcement’s ability to connect incidents of criminal firearms use.
And while most of the Department’s efforts will be focused on keeping guns out of the wrong hands, we also want to help those on the ground prevent and mitigate violent situations when they do occur. To this end, t he grant program request includes $55 million to improve the submission of state criminal and mental health records to NICS; $150 million to develop and improve school safety plans and enable states to hire additional school resource officers and to purchase school security equipment. It will further provide $2 million to encourage the development of innovative gun safety technology and $15 million for the VALOR Initiative, including training for active shooter situations.
For more information, view Gun Safety Fact Sheet at www.justice.gov/jmd/2014factsheets/
Cyber Security
Investigating cybercrime and protecting our nation’s critical network infrastructure is a top priority of the department in an era when cyber-attacks and crimes are increasingly common, sophisticated, and dangerous. The President’s FY 2014 budget request maintains recent increases for the FBI’s cyber terrorism investigations, the National Cyber Investigative Joint Task Force (NCIJTF) and the forensic examination of digital evidence by expanding funds to support the Next Generation Cyber Initiative and capabilities to combat cyber threats from individuals, organized groups, and rogue actors.
The department has a unique and critical role in cyber security that emphasizes domestic mitigation of threats and involves countering these threats by investigating and prosecuting intrusion cases, gathering intelligence, and providing legal and policy support to other departments. The department is also responsible for establishing effective internal network defense and serving as a model for other departments and agencies.
The department is committed to carrying out its role consistent with the Administration’s Executive Order on Improving Critical Infrastructure Cyber Security which emphasizes intelligence and information sharing as well as the preservation of privacy, data confidentiality, and civil liberties. As part of this effort, the department continues to maintain and strengthen its cyber security environment to counter cyber threats, including insider threats, and to ensure personnel have unimpeded access to the IT systems, networks, and data necessary to achieve their missions. In FY 2014, the department is requesting $92.6 million to support efforts to combat and keep pace with increasingly sophisticated and rapidly evolving cyber threats.
For more information, view the Cyber Security Fact Sheet at www.justice.gov/jmd/2014factsheets/
Financial Fraud Law Enforcement
Investigating and prosecuting financial fraud continues to be a priority for the Obama Administration. The Justice Department is proposing a program increase of $55 million for financial and mortgage fraud initiatives to complement ongoing efforts to combat financial and health care fraud, that are supported by existing direct resources and reimbursable funding.
Continuing efforts already underway, the FY 2014 budget requests resources to strengthen the department’s ability to pursue large-scale financial fraud investigations ensuring that Americans, their investments and our financial markets are protected. The department remains committed to efforts to help restore confidence in our financial markets, protecting the federal Treasury and defending the interests of the U.S. government.
Ongoing efforts by the President’s Financial Fraud Enforcement Task Force (FFETF) are included in the department’s requests for program increases for a variety of financial fraud enforcement efforts. This increase will support additional FBI agents, criminal prosecutors, civil litigators, investigators, forensic accountants and other support positions. The additional resources will sustain the department’s investigation and prosecution of securities and commodities fraud, investment scams and mortgage foreclosure schemes and a broad range of financial crimes, including cases being investigated and brought by the FFETF’s Residential Mortgage-Backed Securities Working Group.
For more information, view the Financial and Mortgage Fraud Fact Sheet at www.justice.gov/jmd/2014factsheets/ .
Immigration
The department maintains substantial responsibilities with respect to immigration, including enforcement, detention, judicial functions, administrative hearings, and litigation. The department’s Executive Office for Immigration Review (EOIR) maintains a nationwide presence overseeing the immigration court and appeals process. EOIR receives cases directly from the Department of Homeland Security (DHS) enforcement personnel. Combined with the Civil Division’s Office of Immigration Litigation, the department has a wide and important role in immigration enforcement.
However, in recent years, the department’s resource enhancements have not kept pace with immigration enforcement efforts, thereby undermining the effectiveness and efficiency of overall immigration enforcement, adjudication and detention programs. For example, EOIR’s immigration court caseload has continued to outpace department resources increasing by 42 percent, from 229,000 to 326,000, between FY 2009 and FY 2012.
The 2014 request includes a $25 million investment to support an additional 30 Immigration Judge Teams and 15 Board of Immigration Appeals attorneys. This will allow EOIR to address caseload increases emanating from DHS programs, including the Secure Communities Initiative and the Criminal Alien Program. Additional funding is included to enable EOIR to create a pilot program that provides counsel to vulnerable populations, such as unaccompanied alien children, and to expand their Legal Orientation Program that improves efficiencies in immigration court proceedings for detained aliens.
For more information, view the Immigration Fact Sheet at www.justice.gov/jmd/2014factsheets/
Civil Rights
It is the mission of the department to uphold the civil and constitutional rights of all Americans, particularly the most vulnerable members of our society. Accomplishing this requires necessary resources both to investigate and to litigate. The department maintains substantial responsibilities with respect to enforcing the nation’s civil rights laws and protecting vulnerable populations. The FY 2014 budget will support the department’s vigorous enforcement of federal civil rights laws – including human trafficking, hate crimes, police misconduct, fair housing, fair lending, disability rights, and voting. As such, the department’s FY 2014 budget requests $258.6 million to help meet the nation’s civil rights challenges. The request includes $7.5 million in program increases for the Civil Rights Division and Community Relations Service.
For more information, view the Civil Rights Fact Sheet at www.justice.gov/jmd/2014factsheets/.
Prisons and Detention
The department has made strategic investments in law enforcement initiatives that have improved the nation’s security and made communities safer. The result of these important enforcement efforts has been an expansion in the need for prison and detention capacity. The department continues to prioritize the maintenance of secure, controlled detention and prison facilities, as well as investment in programs that can reduce recidivism. The FY 2014 budget requests a total of $8.5 billion for prisons and detention. The request invests in prisons and detention capacity, providing $236.2 million for program increases to maintain current services, improve prisoner reentry and ensure prisoners are confined in secure facilities.
For the Federal Bureau of Prisons (BOP), the budget includes resources to begin activation of three prisons – FCI Hazelton, W.Va., U.S. Penitentiary Yazoo City, Miss., and Administrative Maximum U.S. Penitentiary Thomson, Ill. – and full activation for two prisons that received partial funding in FY 2012 – Federal Corrections Institution (FCI) Aliceville, Ala., and FCI Berlin, N.H. These resources will increase federal prison capacity and address overcrowding and related security issues.
Additionally, the request provides funds for renovation of the Thomson Correctional Center, additional contract beds, and plans to expand the residential drug abuse treatment program, Residential Reentry Centers, and reentry-specific education programs. These resources provide critical opportunities for inmates to successfully transition back into the community, resulting in fewer taxpayer resources directed at housing inmates.
For more information, view the Prisons and Detention Fact Sheet at www.justice.gov/jmd/2014factsheets/
State, Local and Tribal Law Enforcement
In total, the FY 2014 budget requests $2.3 billion for state, local and tribal law enforcement assistance. These funds will allow the department to continue to support our state, local and tribal partners who fight violent crime, combat violence against women and support victim programs. The FY 2014 request will bolster the department’s efforts to ensure that federal grant funding flows to evidence-based purposes and helps to advance knowledge of what works in state and local criminal justice.
The request increases funding for an evaluation clearinghouse; enhances funding for evidence-based competitive programs; and couples formula grant programs with competitive “bonus” funds to incentivize better, evidence-based, uses of funds. The request also includes funding to address school safety and gun violence with additional resources to improve criminal history records information and to fund a comprehensive school safety program.
The FY 2014 budget request for the Office on Violence Against Women (OVW), a total of $412.5 million, will provide communities with the opportunity to combat sexual assault and violence against women. The request includes an increase of $3.5 million to the Rural Domestic Violence and Child Abuse Enforcement Assistance Program, which will improve the safety of children, youth and adults who are victims of domestic violence, dating violence, sexual assault and stalking by supporting projects uniquely designed to address and prevent these crimes in rural jurisdictions. The department is requesting $1.5 billion for the Office of Justice Programs’ (OJP) grant programs to expand established programs that have shown to be successful, such as the Residential Substance Abuse Treatment, Second Chance and Byrne Criminal Justice Innovation Programs. It also proposes to create new competitive grant programs that are structured on evidence-based principles and funding to establish programs that will provide supplementary awards to states and localities using base formula grant funds for evidence-based purposes. The OJP request also includes additional funding to address gun violence, including funding for a gun safety research initiative and enhanced funding for the National Criminal History Improvement Program and the VALOR Initiative.
For more information, view the State, Local and Tribal Law Enforcement Fact Sheet at www.justice.gov/jmd/2014factsheets/ .
Defendants Indicted for Filing False Federal Tax Returns, Theft of Government Property, and Identify TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that a federal grand jury in Macon, Georgia has charged Michelle Blankenship of Upson County, Georgia, age 32, and Edna Yvonne Orr Goff of Sumter County, Georgia, age 37, in a multi-count Indictment with Conspiracy to Defraud the Federal Government in violation of Title 18 United States Code, Section 286. Ms. Blankenship is also charged in Counts two (2) through fourteen (14) with Theft of Public Money in violation of Title 18 United States Code, Section 641 and Section 2. Ms. Blankenship and Ms. Goff are charged in Counts fourteen (14) through seventeen (17) with Identity Theft in violation of Title 18 United States Code, Section 1028A and (2).
If convicted of the conspiracy charge, Ms. Blankenship and Ms. Goff face a maximum possible sentence of five (5) years incarceration. A conviction for theft of government property carries a maximum possible sentence of ten (10) years for each charge. Each count of Identity Theft carries a maximum possible sentence of two (2) years imprisonment.
The Indictment alleges that the defendants engaged in a scheme and conspiracy to defraud the United States by filing false federal income tax returns using names and identity information of other individuals without their knowledge.
An indictment is only an accusation, and the defendants are presumed innocent until proven guilty at trial.
Ms. Goff entered a plea of not guilty on March 25, 2013, and Ms. Blankenship, a former employee of the Internal Revenue Service, entered a plea of not guilty on April 9, 2013. Both defendants are awaiting trial, which will be scheduled by the Court.
This case was investigated by the Internal Revenue Service Criminal Investigation Division, with the assistance of the Sumter County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Charles L. Calhoun.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.
Davenport Man Sentenced to 4 Years in Prison for Theft of Patient InformationRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. sentenced Serrgei Kusyakov (39, Davenport) this week to four years in federal prison for conspiracy and wrongful disclosure of individually identifiable health information. He pleaded guilty on January 7, 2013.
According to court documents and evidence introduced during sentencing, Kusyakov was involved in the operation of two chiropractic clinics in Central Florida (Metro Chiropractic and Wellness Center, and City Lights Medical Center). He also served as a volunteer at Florida Hospital in Celebration. While volunteering at Florida Hospital, he met Dale Munroe, II. Munroe worked as a Registration Representative in the Emergency Department. Munroe's duties included registering patients as they came in the main emergency entrance. Kusyakov recruited Munroe to obtain the personal health information of hospital patients who had been involved in motor vehicle accidents. Munroe disclosed the information to Kusyakov who, along with others, used the stolen information to solicit Florida Hospital patients for chiropractic and legal services. Kusyakov paid Munroe for his role in providing the stolen information.
On January 14, 2013, Dale Munroe II (35, Winter Haven) was sentenced to 12 months and one day in federal prison for his role in the conspiracy. His wife, Katrina Munroe, also an employee of Florida Hospital in Celebration, was terminated by the hospital in August 2012 after becoming a suspect in a data breach incident. On December 27, 2012, she pleaded guilty to one count of conspiracy. She faces a maximum penalty of five years in federal prison. Her sentencing hearing has been set for July 8, 2013.
These cases were investigated by the Federal Bureau of Investigation and the Florida Department of Financial Services, Division of Insurance Fraud. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
DBSI Principals Indicted for Securities Fraud, Wire Fraud, Mail Fraud, Bank Fraud and ConspiracyRead the Press Release
BOISE – Douglas L. Swenson, 64, of Eagle, Idaho; Mark A. Ellison, 64, of Boise, Idaho; David D. Swenson, 35, of Boise, Idaho; and Jeremy S. Swenson, 40, of Meridian, Idaho, were indicted today by a federal grand jury in Boise for conspiracy to commit securities fraud, wire fraud, mail fraud, and interstate transportation of stolen property stemming from their involvement in the DBSI Group of Companies (DBSI), U.S. Attorney for the District of Idaho Wendy J. Olson announced.
Defendant Douglas Swenson is the founder and former President of DBSI. Mark Ellison, another founder of DBSI, served as DBSI’s general counsel during the period charged in the indictment. David D. Swenson and Jeremy S. Swenson were assistant secretaries for DBSI. Founded in 1979 and headquartered in Meridian, Idaho, DBSI was essentially a conglomerate of real estate and non-real estate companies, including DBSI Housing and DBSI Securities.
According to the indictment, from January 2007 through November 2008, the defendants publicly represented that DBSI was a profitable company and had a net worth in excess of $105 million. The indictment further alleges that the defendants knew and believed that, contrary to the disclosures made to investors and their own DBSI employees involved with the marketing and selling of DBSI investments, DBSI’s real estate and non-real estate business activities were universally unprofitable; DBSI’s much-touted Master Lease investment product was losing approximately $3 million dollars a month; and DBSI was relying on new investor funds, including investor money that DBSI represented would only be used in particular circumstances, to continue operations and pay returns to other DBSI investors. The indictment alleges that the conspiracy continued until DBSI filed for bankruptcy in November 2008. The eighty-three count indictment also charges all of the defendants with thirty-nine counts of securities fraud, thirty-four counts of wire fraud, six counts of interstate transportation of stolen property taken by fraud, and two counts of bank fraud. Former President Douglas Swenson is also charged with conspiracy to commit money laundering.
Based on the conspiracy and fraud charges, the indictment seeks forfeiture of properties and assets totaling $169 million.
According to the indictment, DBSI purported to be an industry leader in locating, acquiring, developing, managing and providing real estate investment opportunities throughout the United States. The criminal allegations center around material omissions, as well as false and fraudulent representations, made to investors about investment products that involved tenant-in-common 1031 exchange interests (TIC investments) and the related “Master Lease” investment product. DBSI promoted the Master Lease, whereby DBSI leased back commercial real estate that it first sold to TIC investors, as providing investors with a reliable, fixed monthly return on their investment, backed by the financial support and substantial net worth of DBSI.
Also according to the indictment, although the defendants knew of DBSI’s true and deteriorating financial position, they withheld accurate financial information and took steps to conceal DBSI’s true financial condition from investors, financial advisors, broker dealers, due diligence officers, DBSI wholesalers, and other DBSI employees. The indictment alleges that in disclosures to investors, the defendants falsely and fraudulently misrepresented DBSI Housing’s net worth; failed to disclose DBSI’s cash shortages and deteriorating finances; misrepresented the likelihood of repayment on large investments in technology start-up companies; and failed to disclose DBSI’s dependence on new investor money to meet its existing obligations.
The indictment further alleges that, as part of its Master Lease investment product, DBSI collected funds called “Accountable Reserves” from investors. The indictment alleges that although DBSI told investors that their Accountable Reserves would only be used for specific expenses associated with their TIC properties and not co-mingled with other DBSI funds, the defendants conspired to and did in fact commingle and divert at least $80 million in investor’s Accountable Reserves for purposes other than those disclosed to investors, including payment of the promised fixed investment returns to existing investors, operation expenses, and investments in technology start-up companies.
The defendants are also charged with defrauding investors of approximately $89 million dollars from a 2008 notes offering, based on disclosures that misrepresented assets on DBSI Housing’s balance sheet. These assets included account receivables from affiliated DBSI entities, which were made up of more than $200 million in loans to technology start-up companies. The indictment alleges that the four defendants conspired to conceal the investments in, and DBSI’s dependence on, more than $200 million in loans to technology start-up companies, which were made through DBSI affiliated entities. The indictment further alleges that defendants took steps to conceal these loans, which were treated as fully collectible, despite DBSI having received no prior material repayments and there being no likelihood of any future material repayments.
According to the indictment, the fraud and conspiracy charges involved the non-public offerings for multiple commercial real estate investment projects in, among others, six different states: Virginia, Illinois, Georgia, Missouri, North Dakota and Texas. The bank fraud charges arise out of projects in Georgia and Illinois, in which DBSI originally obtained financing from financial institutions in order to purchase commercial real estate, which it then repackaged and resold to TIC investors. The indictment alleges that the defendants made false and fraudulent statements in order to secure those loans.
In a related case, former DBSI Chief Operating Officer Gary Bringhurst pleaded guilty in federal court in Boise on Monday, April 8, 2013, to one count of conspiracy to commit securities fraud. Bringhurst, 46, is originally from Utah. According to the plea agreement, Bringhurst conspired to mislead DBSI investors by, among other things, falsifying financial statements for DBSI Housing. The plea agreement further states that one of the properties about which DBSI made false and fraudulent representations was Oakwood Plaza, LLC, in Alton, Illinois.
“Investment fraud undermines markets, bilks investors of promised returns and creates unnecessary loss at a time when our economy is struggling to recover,” said Olson. “Those who seek to induce others to invest their hard earned money in complex financial deals have a solemn duty to act with honesty and integrity. I commend the hard work and detailed investigation of the FBI and IRS agents who have spent countless hours on this case.”
“Defrauding investors is like a ‘house of cards’; the underlying structure can fall apart at any time leaving many investors in financial ruin,” said Stephen Boyd, IRS Criminal Investigation Special Agent-in-Charge for the State of Idaho. “IRS CI along with our law enforcement partners will vigorously pursue corporate officers who victimize their investors and violate the public trust.”
The conspiracy to commit securities fraud, wire fraud, mail fraud and interstate transportation of stolen property charge is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The conspiracy to commit money laundering charge is punishable by up to twenty years in prison, a maximum fine of $250,000, and up to five years of supervised release. The securities fraud charges are each punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The wire fraud charges are each punishable by up to twenty years in prison, a maximum fine of $250,000, and up to five years of supervised release. The bank fraud charges are each punishable by up to thirty years in prison, a maximum fine of $1 million, and up to five years of supervised release. The interstate transportation of stolen property charges are each punishable by up to ten years in prison, a maximum fine of $250,000, and up to one year of supervised release. The false statement charge is punishable by up to two years in prison, a maximum fine of $250,000, and up to one year of supervised release.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistants United States Attorney George Breitsameter and Anthony Hall, and Department of Justice Tax Division Trial Attorney Mark Williams.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Charlotte Woman Sentenced to Prison for Tax Refund Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A Charlotte woman was sentenced in U.S. District Court today to 21 months in prison for her involvement in a tax refund fraud scheme, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Joining U.S. Attorney Tompkins in making today’s announcement is Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
Leeora Anderson, also known as “Leeora Robinson” and “Lou Robinson,” 42, of Charlotte was sentenced to 21 months in prison and three years of supervised release by U.S. District Court Judge Frank D. Whitney.
U.S. Attorney Tompkins said, “Tax fraudsters like Anderson pocket money by defrauding the government and leave the rest of us to pick up the tab for their illegal tax schemes. Today we are sending a clear message: tax fraud will not be tolerated and we will make sure tax fraudsters pay the price for their actions, both financially and in prison time.”
“IRS-CI is determined to stop these false tax refund schemes. The message this case sends is that participation in refund fraud schemes does not pay and those who do will be prosecuted,” stated IRS Special Agent in Charge Jeannine A. Hammett, Charlotte Field Office Criminal Investigation.
In February 2012, Anderson pleaded guilty to one count of false claims conspiracy. According to filed court documents and today’s sentencing hearing, from in or about 2005 through in or about 2009, Anderson participated in a false tax refund conspiracy by obtaining, or helping others obtain, fraudulent tax refunds from IRS based upon false tax returns. Court records show that Anderson recruited individuals to file fraudulent federal income tax returns using their own names and social security numbers. To perpetrate the fraud, according to court documents and court proceedings, Anderson created fictitious W-2 forms for the recruited individuals, which contained fictitious names of employers and fabricated amounts of wages and withholdings. Anderson then caused legitimate tax preparers to prepare and file false tax returns based on the fraudulent information on behalf of the individuals recruited by the defendant.
Court records show that in some instances Anderson accompanied the recruited individuals to the tax preparers’ offices where the individuals had tax returns prepared and filed electronically. The recruited individuals would then file for refund anticipation loans (“RAL”) through the tax preparer, which allowed the recruited individuals to receive cash advances on their false tax refunds from the financial institutions within three to five days after the fraudulent returns were electronically filed. Anderson then accompanied the recruited individuals to pick up the RAL checks and to cash them at check cashing services, all according to court records. Anderson and others would then keep a portion of loan proceeds. Court records indicate that Anderson’s scheme resulted in the filing of 57 false tax returns, falsely claiming approximately $331,949 as refunds from the U.S. government.
In pronouncing the sentence, Judge Whitney emphasized the importance of general deterrence in tax cases since the tax code is based on honesty and noted that serious punishment was necessary because tax fraud victimizes honest taxpayers. Judge Whitney ordered Anderson to pay restitution to IRS in the amount of $202,577.
At the sentencing hearing, Anderson was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the IRS. The prosecution was handled by Assistant U.S. Attorney Jenny G. Sugar, of the U.S. Attorney’s Office in Charlotte.
Bryan Man Convicted in TSU Bomb Threat CaseRead the Press Release
HOUSTON – Dereon Tayronne Kelley, 22, of Bryan, has been found guilty on all counts for communicating a bomb threat to an academic institution, United States Attorney Kenneth Magidson announced today. The verdict was returned less than an hour ago after two days of trial and approximately one hour of deliberation.
Kelley was accused of three counts of using the Internet to convey a false threat involving an explosive device in order to intimidate individuals at Texas State University (TSU).
According to evidence and testimony presented in court, Kelley used his cell phone and “hacked” into his former girlfriend’s Yahoo email account and sent three separate emails threatening to bomb the Admission’s Office at Texas State University. Kelley’s girlfriend was a former student at TSU.
The defense attempted to convince the jury that the crime was committed by some other person. However, this assertion was contradicted by the email header and cell phone service provider records.
The intensive investigation was initiated by the FBI’s Joint Terrorism Task Force (JTTF) - College Station Resident Agency, working together with the Texas A&M University Police Department. The JTTF is comprised of the FBI, Bryan Police Department, Texas A&M University Police Department, College Station Police Department, Brazos County Sheriff’s Office, the United States Secret Service and Waller County Sheriff’s Office.
U.S. District Judge Lynn Hughes, who presided over the trial, has set sentencing for May 2013, at which time Kelley faces up to 10 years in federal prison and a possible $250,000 fine.
The case is being prosecuted by Assistant United States Attorney S. Mark McIntyre and Craig Feazel.
Brunswick, Georgia Resident Sentenced to Prison for Felony Lacey Act ViolationRead the Press Release
BRUNSWICK, GA - Lewis Jackson Sr., 58, a resident of Brunswick, Georgia, was sentenced last week by Chief United States District Judge Lisa Godbey Wood to 6 months in prison for unlawfully acquiring loggerhead sea turtle eggs, in violation of the Lacey Act. Among other things, the Lacey Act makes it unlawful for any person to acquire, receive, and transport loggerhead sea turtle eggs, as loggerheads are endangered species under federal law.
According to evidence presented during the guilty plea and sentencing hearings, in May, 2012, Jackson took over 156 loggerhead sea turtle eggs from nests on Sapelo Island, Geogia. When seized from Jackson, the loggerhead eggs were packaged in a manner indicating they would be sold to others. Loggerhead eggs fetch as much as $15 per egg on the black market.United States Attorney Edward Tarver said, “This defendant attempted to profit by unlawfully exploiting an endangered species. Loggerhead sea turtles are a national treasure that must be protected for our enjoyment and that of future generations.”
Darwin Huggins, Acting Special Agent in Charge, Southeast Region, U.S. Fish and Wildlife Service, Office of Law Enforcement, said of Jackson’s sentence: “This sentence sends a loud and clear message that the commercialization of Southeast Georgia coastal natural resources will not be tolerated. We take very seriously our mission to support our state counterpart wildlife enforcement agencies and we will continue to concentrate on and aggressively pursue individuals who are involved in the illegal trade of protected species of wildlife.”
In addition to his prison sentence, Jackson was ordered to perform 156 hours of community service, an hour for each loggerhead sea turtle egg taken.
Assistant United States Attorneys E. Greg Gilluly, Jr. prosecuted the case for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Blairsville Man Facing Child Exploitation ChargesRead the Press Release
PITTSBURGH, Pa. - A resident of Blairsville, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of sexual exploitation of a minor, and distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on April 9, 2013, named Charles Joseph Payson, 45.
According to the indictment presented to the court, in and around August 2010, Payson produced images of a minor engaging in sexually explicit conduct. On or about Nov. 7-9, 2012, Payson distributed visual depictions of a minor. From August 2010 through Nov. 24, 2012, Payson possessed visual depictions, namely images and videos contained in computer, camera and cellular telephone graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 60 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Soo C. Song is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, along with the Pennsylvania State Police, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Aurora Driving School Owner and Clerk Arrested for Taking Bribes for Documents to Obtain Driver LicensesRead the Press Release
DENVER – The United States Attorney’s Office, Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service – Criminal Investigations and the Colorado Department of Revenue, Motor Vehicle Investigations Unit announced that today Stuart Bryan King, age 52, of Centennial, who is the owner of Little Lake Driving Academy, and Griselda Trevino De Valenzuela, age 42, of Aurora, the driving academy’s clerk, were arraigned in U.S. District Court in Denver on charges of conspiracy to commit wire and mail fraud, aggravated identity theft, Social Security Fraud and Bribery. A tentative trial date of June 3, 2013 has been set.
According to the indictment, Little Lake Driving Academy, located at 1415 Havana Street in Aurora, Colorado, acted as a third party tester for the State of Colorado’s Department of Revenue, Division of Motor Vehicles, administering written and driving examinations on behalf of the State of Colorado in order for an individual to obtain a Colorado Driver’s License. All driving schools must meet specific requirements and comply with Colorado State law in order to be a third party tester for the Division. The company provided the requisite testing for individuals to obtain a basic operators driver’s license and/or instruction permit in the State of Colorado. The defendant, King, owns Little Lake Driving Academy, and is a licensed tester with the State of Colorado. King was authorized to conduct driver education classes as well as certify an applicant’s successful written and driving examinations so they could receive the valid Colorado driving documents.
Co-defendant Griselda Trevino De Valenzuela acted as the secretary/manager of Little Lake Driving Academy. Her responsibilities included informing applicants of the documentation required to obtain a Colorado driver’s license, collecting the documentation from the applicants, translating certain documents from English to Spanish, providing applicants with a study guide, administering the written test to applicants, grading those tests and collecting money from the applicants. She would then give the money to King.
From August 2009 through November 2012, King and De Valenzuela knowingly devised and participated in a scheme to defraud the Colorado Department of Revenue, Division of Motor Vehicles (DMV) by falsely certifying that applicants for a Colorado Driver’s License and instruction permit had successfully completed the required testing. As part of the scheme, the two defendants falsely certified that applicants had taken and passed the written tests. The applicants then presented the certified documents to the DMV and received by mail a State of Colorado driver’s license and/or instruction permit.
As part of the scheme, defendants charged approximately $130 to $420 in cash payments from applicants in return for fraudulently issuing passing grades. The defendants are also alleged to have falsified the written test results for applicants who could not speak, read and/or write English adequately, or could not pass the written test for other reasons.
The investigation into King, De Valenzuela and Little Lake Driving Academy revealed that conspirators transported people who could not speak, read or write English from Missouri and other states to Colorado. Those transported to Colorado from Missouri had previously purchased the identities of U.S. citizens and obtained Missouri identification cards in the names of the stolen identities. These individuals, after utilizing the services of Little Lake, turned in their Missouri identification cards to obtain Colorado driver’s licenses and instruction permits. Last year, as part of this same investigation, 20 individuals who had utilized the services of Little Lake and who turned in Missouri identification cards were indicted in Colorado for Aggravated Identity Theft. To date, Catarina Alcon, Elias Garcia-Perez, Jose Antonio Rivera, and Candelario Hernandez-Perez have been arrested based on the Aggravated Identity Theft indictments.
As a result of this investigation, the Colorado DMV is working on notifying the affected parties in this case. The DMV is working internally on the procedure and protocol for handling each individual applicant.
“Shutting down these types of illegal operations is an important process in maintaining the integrity of one of the most used forms of identification in the United States – the driver’s license,” said Kumar C. Kibble, special agent in charge of HSI Denver. “HSI leads the Document and Benefit Task Force, which includes many other government agencies, to specifically address these threats to national security.”
“The IRS is aggressively pursuing those who steal others’ identities and we will work with our law enforcement partners to bring those to justice who commit such crimes,” said Stephen Boyd, Special Agent in Charge for IRS – Criminal Investigation, Denver Field Office.
“Little Lake is one of 114 driving schools that provide customers with written and driving testing,” said Michael Dixon, Senior Director, Division of Motor Vehicles. “These schools provide a valuable service to the citizens of Colorado. It is unfortunate when a tester may be taking advantage of customers, but it is the exception rather than the rule. The DMV audits 100 percent of the driving schools each year.”
King faces one count of conspiracy to commit wire and mail fraud. If convicted of this count, he faces not more than 20 years in federal prison, and up to a $250,000 fine. He also faces one count of bribery concerning programs receiving federal funds. If convicted of this count, he faces not more than 10 years in federal prison, and up to a $250,000 fine.
De Valenzuela faces one count of conspiracy to commit wire and mail fraud. If convicted of this count, he faces not more than 20 years in federal prison, and up to a $250,000 fine. She faces one count of aggravated identity theft. If convicted of this crime she faces not more than 2 years imprisonment consecutive to any felony conviction herein, and up to a $250,000 fine. Lastly, she faces one count of Social Security Fraud, which carries a penalty of not more than 5 years in federal prison and up to a $250,000 fine.
This case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service – Criminal Investigation, and the Colorado Department of Revenue, Motor Vehicle Investigations Unit.
The defendants are being prosecuted by Assistant U.S. Attorney Joseph Mackey.
The charges contained in the Indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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Arrests Made in Internet Gambling InvestigationRead the Press Release
Albany, New York —United States Attorney Richard S. Hartunian announced the filing of criminal complaints, in the Northern District of New York in Albany, that charge four individuals with federal money laundering and gambling felonies arising out of a multi-agency investigation of an international internet gambling operation. Four additional defendants were charged with New York State gambling offenses.
Philip Gurian of Boca Raton, Florida, and Michele Lasso of Delray Beach, Florida, are charged by federal complaint with the crime of conspiracy to launder monetary instruments. If convicted, Gurian and Lasso each face a maximum of 20 years in prison. Jay Goldman of Lake Worth, Florida, and Alan Gould of Plantation, Florida, are each charged by federal complaint with transmission of wagering information. If convicted, Goldman and Gould face a maximum of 2 years in prison. All four individuals charged with federal felonies were arrested at their homes in Florida and appeared before United States Magistrate Judge William Matthewman in the Southern District of Florida. Gurian has been detained pending a detention hearing in West Palm Beach, Florida, on Monday, April 15 th. Lasso, Gould ,and Goldman were ordered released on bond and other pretrial conditions and were directed to appear in U.S. District Court in the Northern District of New York before United States Magistrate Judge Randolph F. Treece on April 22, 2013 at 2:00 p.m.
Craig Hayner, Christopher Socola, Timothy Robillard, James Cerniglia, all of Clifton Park, and Joseph Carucci of Latham, are charged in Albany County by felony complaints alleging enterprise corruption. Robillard and Cerniglia are correction officers with the Albany County Sheriff’s Office.
These charges are the result of a joint investigation initiated by the Albany County Sheriff’s Office, and joined by the Albany County District Attorney’s Office, the Saratoga County District Attorney’s Office, the Federal Bureau of Investigation, the Internal Revenue Service, the Broward County Money Laundering Task Force, and the Office of the United States Attorney for the Northern District of New York. The federal case is being prosecuted by Assistant U.S. Attorneys Robert L. Sharpe and Jeffrey Coffman.
As a part of the ongoing investigation, the Federal Bureau of Investigation and the Internal Revenue Service applied for and obtained a total of fifteen search warrants in Florida, New Hampshire and California and a seizure warrant for numerous bank accounts in the Northern District of New York. The Albany County Sheriff’s Office applied for and obtained two search warrants for locations in Albany County. Seizures so far seized have included more than $1 million in U.S. Currency.
U.S. Attorney Hartunian said , “Gambling on sporting events is strictly regulated and, in most cases, prohibited outright under federal and state law. Internet gambling operations may be perceived as offering privacy and anonymity to bookmakers and bettors, but the outstanding cooperative efforts of the federal, state, and local law enforcement agencies who participated in this investigation are shining a spotlight through the electronic mist onto the alleged conduct of these defendants.”
Albany County Sheriff Craig Apple stated, “Today’s arrests end one phase of a multi-year investigation. We will continue to work with the District Attorney, U.S. Attorney’s Office, and the FBI to combat illegal gambling and seek out other Officers that may have been involved in this bookmaking ring.”
Albany County District Attorney P. David Soares stated, “While interstate investigations can be very lengthy and resource intensive, when partnerships between local, state, and federal authorities are leveraged we are all able to hold individuals accountable to the fullest extent of the laws available to each agency. The success of this investigation was due to cooperation between several law enforcement partners and I thank United States Attorney Richard S. Hartunian, Albany County Sheriff Craig Apple and his staff of investigators, and the FBI and the IRS for their respective roles in this long term case. I would also like to recognize the efforts of Saratoga County District Attorney Jim Murphy and his staff for their assistance throughout this investigation.”
Saratoga County District Attorney James A. Murphy, III said,"We are very fortunate to have so many law enforcement agencies and prosecutorial offices in the area that work so well together. This investigation exemplifies such a collaborative effort because this particular criminal enterprise extended well beyond one jurisdiction and required the endeavors of many law enforcement agencies to bring about the common goal of holding these individuals responsible for their actions."
FBI Special Agent in Charge Andrew W. Vale stated, “I commend the long-term collaborative efforts of our law enforcement partners throughout this complex investigation.”
IRS-Criminal Investigation Special Agent in Charge Toni Weirauch stated, “IRS-Criminal Investigation is always eager to work with our law enforcement partners on complex financial investigations. The investigation of money laundering and the underlying crime that laundering seeks to conceal remains a top priority for us.”
A criminal complaint is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
Alabama Man Convicted for Attempted online Enticement of a Minor While Vacationing in Panama City BeachRead the Press Release
PANAMA CITY, FLORIDA – Following a three day trial in federal court, a jury found Thomas Monroe Lee, 40, of Gadsden, Alabama, guilty of using the Internet in an attempt to persuade, induce, and entice a minor to engage in sexual activity.
Evidence presented during trial proved that, on June 14, 2012, law enforcement officers posed as a 14-year-old boy named Skylar and responded to an advertisement entitled “Last call!!!! – m4m – 1840 (PCB/Laguna beach),” which had been posted under the “Casual Encounters” link on Craigslist. Over the next 48 hours, Lee engaged in email chats and text messages with Skylar that were sexual in nature. Subsequently, Lee drove to a location where he had arranged to meet Skylar and transport him back to his residence to engage in sexual activity. Once Lee arrived at the location, officers from various law enforcement agencies arrested him for attempted online enticement of a child.
As a result of the guilty verdict, Lee faces a sentence of ten years to life in prison, a fine of up to $250,000, not less than five years and up to a life term of supervised release, and a $100 special monetary assessment.
In announcing the verdict, Pamela C. Marsh, United States Attorney for the Northern District of Florida, credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida ICAC, particularly U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Marshals Service, Bay County Sheriff’s Office, Walton County Sheriff’s Office, and the Gainesville Police Department. Ms. Marsh said, “The safety and well-being of our children is a top priority for the Department of Justice. Our office will continue to aggressively prosecute these cases to protect the community and children, who are our most innocent victims. Great praise is deserved by all of our law enforcement partners who contributed to the success of this investigation.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant United States Attorney Kathryn Risinger.
10 Indicted in West Side Drug ConspiracyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a 12 count indictment charging Oneil Quinones, 33, Jorge Quinones, 35, Oscar Romero, 32, Ellis Colon, 29, Edwin Sanchez, 27, Angel Sanchez, 45, Raul Ramirez-Vargas, 39, Josbel Garcia, 22, Miguel Manso, 42, all of Buffalo, and Jose Rivera, 32, of Niagara Falls with conspiracy to distribute one kilogram or more of heroin and cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a $5,000,000 or both.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to previously filed complaints, the defendants are members of a gang known as the Loiza Boys which has been distributing cocaine and heroin on Buffalo’s West Side since at least 2009. According to the indictment, the charges are the result of a long term investigation that involved the interception of telephone calls of the defendants and the use of undercover drug purchases from some of those arrested.
Defendants Oneil Quinones, Jorge Quiones, Edwin Sanchez and Ellis Colon were previously arrested and charged by complaint on February 27, 2013 for their involvement in this drug conspiracy. Authorities at that time announced the seizure of over 450 grams of heroin, three firearms, and over $70,000 in U.S. currency.
“This case is yet another example of our continuing efforts to eradicate gang and organized narcotics trafficking in the area, as well as the violence often associated with it,” said U.S. Attorney Hochul. “Working side by side with our law enforcement partners, last month, we charged 16 defendants who were allegedly members of two violent street gangs operating on the East Side of Buffalo. Last week, we charged 15 narcotics traffickers allegedly operating out of the City’s Perry public housing project, as well as the Fruit Belt area. With today’s arrests, we have now charged alleged gang members who operated on Buffalo’s West Side, the same location where the 7th and 10th Street gangs operated before their arrests and dismantlement by this Office. Today’s operation sends a clear message we will continue our anti-gang, zero tolerance policy across all portions of this City and Western New York. The public can expect to see us at other locations in the near future.”
“In late February 2013, during the course of the FBI Safe Streets Task Force’s investigation into the Loiza Boys Gang, investigators intercepted conversations that revealed that members of the Loiza Boys Gang were determined to avenge a stabbing that had just occurred at the Alden State Correctional Facility," said FBI Special Agent in Charge Richard M. Frankel. "To prevent further acts of violence from occurring in the Western New York community, the New York State Department of Corrections and Community Supervision assisted the SSTF, Buffalo Police Department, and New York State Police in locating and arresting four Loiza Boys gang members on federal narcotics charges.”
New York State Department of Corrections and Community Supervision Commissioner Brian Fischer said “DOCCS cooperation, including members of the DOCCS Inspector General’s Office and other key department staff, with various law enforcement agencies, once again highlights the effectiveness of these joint efforts. The safety and security of our communities is our highest priority and we will continue to use the resources we have available to contribute to that outcome, both inside and outside our correctional facilities.”
The indictment is the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Richard M. Frankel. The Safe Streets Task Force includes members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Amherst Police Department, under the direction of Chief John Askey, the Cheektowaga Police Department, under the direction of Chief David Zack, the Hamburg Police Department, under the direction of Chief Michael Williams, the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the New York State Police, under the direction of Major Matthew Renneman, the New York State Department of Corrections and Community Supervision, under the direction of Commissioner Brian Fischer. Additional assistance was provided by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the United States Marshals Service, under the direction of Marshal Charles Salina, the Tonawanda Police Department, under the direction of Chief Anthony Palombo, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, the Lackawanna Police Department, under the direction of Chief James Michel, and the Erie County Probation Department, under the direction of Director Brian McLaughlin.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
9 April 2013
Youngstown Woman Sentenced to 3 1/2 Years in Prison for Theft from Health-Benefit Program, Other CrimesRead the Press Release
A Youngstown woman was sentenced to 3 1/2 years in prison and ordered to pay nearly $55,000 in restitution for using false identities to defraud health benefit plans , United States Attorney Steven M. Dettelbach said.
Shari Spencer, 42, previously pleaded guilty to three counts: theft from a health-benefit program, aggravated identity theft and making false statements.
The following description of Spencer’s crimes come from court documents:
Professional Benefits Administrators (“PBA”) was a third-party administrator of health care benefit plans. PBA’s main office was located in Cuyahoga Falls, Ohio, and it had a branch office in Austintown, Ohio. The defendant, SHARI L. SPENCER (“SPENCER”), was employed by PBA in various capacities from 2000 until she left in September 2010, when PBA went into receivership. Spencer was the office manager of PBA’s Austintown office from 2008.
PBA had a number of clients with whom it contracted to provide third-party administration services in relation to the health care benefit plans that the clients sponsored for their employees. Those clients included Northern Ohio Medical Specialists (“NOMS”) and Community Health Care, Inc. (“CHC”).
NOMS
NOMS was the sponsor of the Northern Ohio Medical Specialists Employee Health Benefit Plan - HSA Plan, a self-funded health care benefit plan for the benefit of NOMS’ employees (the “NOMS Health Benefit Plan”). PBA was the third-party adminstrator for the NOMS Health Benefit Plan. PBA was responsible for processing and adjudicating the health benefit claims of NOMS employees and for paying those claims from a bank account at Village Bank (Blain, MN), which PBA held in trust for NOMS (“NOMS Health Benefit Plan Trust Account”).
NOMS also contracted with an insurance carrier, TPAC, to provide “stop-loss” insurance coverage in relation to the NOMS Health Benefit Plan. Under the agreement, NOMS paid the health benefit claims of NOMS employees up to a certain, agreed-upon aggregated amount for all employees. If the combined health benefit claims of NOMS employees exceeded that amount, the stop-loss coverage kicked in, and TPAC was responsible for paying the excess NOMS employee health benefit claims.
To facilitate the collection and making of such stop-loss payments, PBA submitted claims in excess of NOMS’ aggregate claims amount to TPAC. TPAC, in turn, set up an account at Village Bank such that anytime claims exceeded NOMS’s share, TPAC’s account automatically deposited funds in the amount of the required stop-loss payment into the NOMS Health Benefit Plan Trust Account. (As a technical matter, the TPAC account was similar to an overdraft protection account for the NOMS Health Benefit Plan Trust Account.) PBA then prepared checks drawn on the NOMS Health Benefit Plan Trust Account and sent them to the provider in question to pay the claim.
SPENCER had access to the names, addresses, social security numbers, employee numbers, and other personal identification information of NOMS employees, and to other NOMS Health Benefit Plan information. SPENCER also had access to the PBA claims system and to information relating to the NOMS Health Benefit Plan Trust Account.
CHC
PBA was also the third-party administrator services in relation to the self-funded health benefits plan that CHC sponsored for its employees.
Like NOMS, CHC also contracted with an insurance carrier to provide stop-loss insurance coverage for the health benefit claims of CHC employees, but CHC used Trustmark, not TPAC. Under the agreement, CHC paid the health benefit claims of its employees up to a certain agreed-upon amount. If the health benefit claims of CHC employees exceeded that amount, the stop-loss coverage kicked in, and Trustmark was responsible for paying the excess health benefit claims of CHC employees, which it did by making stop-loss payments directly to CHC.
To get stop-loss coverage, CHC was required to provide certain information to Trustmark about its employees and their prior health claims and claims history (“disclosure information”). Trustmark based the premium it charged to CHC for the stop-loss coverage on this disclosure information, and the enforceability of the stop-loss coverage was subject to proper disclosures being made to Trustmark. PBA was responsible for compiling and providing any and all disclosure information relating to CHC employees to Trustmark such that the stop-loss coverage would be in force and cover any excess claims. SHARI L. SPENCER was the sole person responsible for handling this disclosure information for CHC and transmitting it to Trustmark.
The Scheme
Using personal identification information for NOMS employees and/or their covered spouses, Spencer manufactured and submitted two separate fake medical claims for stop-loss payments to TPAC, purportedly on behalf of NOMS. Based on Spencer’s submissions, TPAC paid the claims and funded the NOMS Health Benefit Plan Trust Account even though no medical services were ever rendered in either case. Spencer then diverted the funds from the NOMS Health Benefit Plan Trust Account to other uses.
In the first instance, Spencer diverted $54,809.38 to CHC to cover up Spencer’s failure to provide the proper disclosure information to Trustmark (CHC’s stop-loss carrier), which failure had resulted in Trustmark denying a $54,809.38 claim for a CHC employee. In the second instance, Spencer caused a check in the amount of $21,014.83 to be issued to “S.L. SPENCER HSPT,” which she signed and deposited into her own bank account.This case was prosecuted by Assistant U.S. Attorneys Rebecca Lutzko and John Siegel following an investigation by the Department of Labor, Employee Benefits Security Administration and Office of Inspector General.
Wood County Gun Dealer Guilty of Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 51-year-old Yantis, Texas woman has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Andrea Jaine Burns London pleaded guilty to conspiracy to not keep required records today before U.S. Magistrate Judge Judith Guthrie.
London and Lucretia Beth Brown, 45, also of Yantis, were indicted on July 11, 2012, and charged with gun trafficking violations. Federal agents executed search warrants at their home and business in November 2011. A warrant was issued for their arrest, but it was soon discovered that the pair had left the United States for the Philippines in February 2012. Assistance was requested from the International Investigations Branch and a lead was sent to the Diplomatic Security Service in Manila. On Oct. 9, 2012, Philippine Immigration Agents arrested London and Brown in Cebu without incident. Both subjects were transported to Manila to begin the deportation process. On Nov. 8, 2012, London and Brown were escorted by Philippine Immigration Agents from Manila to Los Angeles where they were taken into custody by the Pacific Southwest Regional Fugitive Task Force.
According to information presented in court, from January 2011 to July 2011, London and Brown transported guns from the inventory of Lake Fork Gunslinger & Outdoors in Emory, Texas, to gun shows in Oklahoma, Missouri, and Arkansas, and then sold the guns without properly recording the name, age, and place of residence of the buyers. Brown pleaded guilty on Feb. 14, 2013, to conspiracy to fail to perform backgrounds checks and is awaiting sentencing.London faces up to 10 years in federal prison at sentencing. A sentencing date has not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Jim Noble.Woman Sentenced to Five Years on Forced Labor ChargesRead the Press Release
BOSTON - A New York woman was sentenced today in federal court in Boston on charges of conspiring to transport women in interstate travel for the purpose of prostitution, forced labor and harboring aliens.
Hong Wei, a/k/a “Ms. Chen,” 37, of Flushing, New York, was sentenced by U.S. District Judge George A. O’Toole to five years in prison, to be followed by five years of supervised release.
From August of 2004 through February of 2010, Wei, along with Jing Liang Chen, a/k/a “Mike,” 30 , of Quincy; Xiang Hua Zhang, a/k/a “Darren,” 27, of Flushing, New York; Yuen Jin, a/k/a “Eric,” 26, of Quincy; and Don Kai Chen, 41, of Quincy, engaged in a conspiracy to entice Asian women to travel to Massachusetts to engage in prostitution. The conspiracy involved the use of advertising in various newspapers in New York, California, Massachusetts, and elsewhere, seeking the services of Asian women to work in the defendants’ brothels. The women generally arrived at South Street Bus Station in Boston from New York and elsewhere around the country and were thereafter transported by the defendants to various apartments throughout Massachusetts where they then engaged in prostitution. Some of the women were not legally in the United States when they were harbored in the brothels. Some of the women were forced to work in the brothels.
Jing Liang Chen has pleaded guilty and is awaiting sentencing; Yuen Jin is pending trial; Don Kai Chen pleaded guilty and was sentenced in March 2012 to 15 months in prison. Xiang Hua Zhang pleaded guilty and in November 2011 was sentenced to 21 months.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Boston Police Commissioner Edward Davis; Chief Paul Keenan of the Quincy Police Department; Sheriff Thomas M. Hodgson of the Bristol County Sheriff’s Office; and Chief Michael Kent of the Burlington Police Department made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Laura J. Kaplan and Timothy Moran in the Organized Crime Strike Force Unit.
U.S. Attorney’s Office Announces Charges from Border Patrol Arrests in Alleged Alien Smuggling Attempt Near Sherwood, N. D.Read the Press Release
BISMARCK – U.S. Attorney for the District of North Dakota Timothy Q. Purdon announced that four defendants have been arrested and charged by Criminal Complaint with criminal immigration offenses in federal court in North Dakota as a result of arrests made by United States Border Patrol in the course of disrupting an alleged alien smuggling attempt near Sherwood, N.D., on April 6, 2013.
Those charged include: • Darwin Catarero-Sanchez (Bringing Aliens into the United States); • Carlos Rolando Ayala-Bonilla (Illegal Entry); • Ericka Julissa Vasquez-Barerra (Illegal Entry); and
• Sahin Iyibas (Illegal Entry)In Bismarck, United States Attorney Purdon said, “The security of our northern border remains a top priority of the U.S. Attorney’s Office. The arrests and charges in this case are a direct result of the great work done by Border Patrol in North Dakota every day as well as the partnerships Border Patrol has built with local law enforcement and our Canadian law enforcement colleagues.”
“This is a great example how the Border Patrol Strategic Plan is taking shape here on the northern border,” said Austin L. Skero II, Chief Patrol Agent, Grand Forks Sector. “This arrest is a testament to how we receive and analyze information, integrate efforts with state, local and tribal partners and then rapidly respond to known threats. The assistance of our border communities is critical to our success.”The alleged smuggling attempt was discovered at 1:30 a.m. on April 6, 2013, when a Border Patrol Agent from the Portal, N.D., station made contact with a group of individuals walking south of the Sherwood, N.D., Port of Entry. The subjects were taken into custody on allegations that they were unlawfully present in the United States. Following these arrests, Border Patrol Agents from the Portal, N.D., station also took other individuals into custody who were at a residence in Minot, N.D., on allegations that they too had crossed the border illegally near the Sherwood, N.D., Port of Entry earlier on April 6. In total eleven individuals were detained by Border Patrol as a result of the disruption of the alleged alien smuggling attempt. The investigation into this matter is continuing.
An indictment or a complaint is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
These cases were investigated by United States Border Patrol with assistance from the Office of Field Operations, Sherwood Police Department, Renville County Sheriff’s Office, Bottineau County Sheriff’s Office, and the Royal Canadian Mounted Police.
These cases are being prosecuted in North Dakota federal court by Assistant U.S. Attorney Clare Hochhalter.
U.S. Attorney's Office Files Motion to Dismiss Without Prejudice Charges Against Former Maverick County Purchasing Agent Juan Carlos MoncadaRead the Press Release
In Del Rio today, the United States Attorney’s Office filed a motion to dismiss without prejudice charges against former Maverick County Purchasing Agent Juan Carlos Moncada.
In October, Moncada was indicted for two counts of wire fraud and one count of theft concerning programs receiving federal funds in case number DR12-CR-1613. Since the indictment was returned, the Government has continued its investigation into this case and has determined that all three counts against Moncada should be dismissed. After indictment, IBC Bank advised that the specific checks used to pay for the forklift at issue did not utilize interstate wire facilities when they were deposited and therefore did not affect interstate commerce. Also after indictment, multiple witnesses exculpated Moncada and informed the Government that Moncada had no knowledge of the scheme to steal funds from the county. Although the Government had probable cause to support an indictment, information developed thereafter that leaves the Government without sufficient evidence to prove beyond a reasonable doubt the elements of the offenses charged against Moncada in the indictment.
U.S. Attorney's Office Announces Press Conference Scheduled for Thursday, April 11, 2013, at 2:30 P.m. to Discuss the Conclusion of A Large Scale Community Safety Operation.Read the Press Release
The United States Attorney for the District of Montana, Michael W. Cotter, announced today that a press conference will be held on Thursday, April 11, 2013, at 2:30 p.m., at the U.S. Attorney's Office, James F. Battin Federal Building, 2601 Second Ave. N., Ste. 3200, Billings, Montana. The press conference attendees are expected to include the United States Attorney for the District of Montana, Michael Cotter, with representatives from the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF"), the Drug Enforcement Administration ("DEA"), the United States Marshal's Service, the Montana Division of Criminal Investigations, the Billings Police Department and Yellowstone County Attorney Scott Twito.
The purpose of the press conference is to announce and discuss the results of ATF's "Billings Area Criminals" or "BAC" operation, a one-year covert investigation focusing on identifying, investigating and prosecuting the criminal activity of violent criminals in the Billings, Montana, area.
Questions about the event may be directed to AUSA Jessica T. Fehr at [email protected].
Two Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA - Two individuals were sentenced on April 8, 2013, in United States District Court in Clarksburg by Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, announced that:
TESHIA DAVIS, age 20, of Clarksburg, West Virginia, was sentenced to 33 months imprisonment to be followed by six years of supervised release. DAVIS entered a plea of guilty on November 30, 2012 to “Distribution of Crack Cocaine within 1,000 Feet of Monticello Avenue playground” on May 3, 2012. DAVIS forfeited her interest in $1,220 in U.S. currency, firearms, ammunition, cell phones, digital scales, thumb drive and a television which were seized from her residence and which constitute proceeds from the drug activity. DAVIS was remanded to state custody pending a revocation hearing in Marion County.
RITA WATKINS, age 52, of Fairmont, West Virginia, was sentenced to 12 months imprisonment to be followed by four years of supervised release. WATKINS entered a plea of guilty on November 29, 2012, to “Distribution of Hydrocodone within 1,000 Feet of Simpson Elementary School” on December 11, 2011. WATKINS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
These cases were prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Harrison County Drug Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.
Six Kentuckians Admit Defrauding Financial Assistance ProgramsRead the Press Release
COVINGTON, KY - Several eastern Kentuckians defrauded state and federal benefit programs out of hundreds of thousands of dollars, according to plea agreements filed in federal court.
Two men and four women from Carter, Boyd, Lawrence, Morgan and Morgan Counties pleaded guilty Monday, in separate cases, to charges related to Supplemental Security Income (SSI) fraud. One of the women also pleaded guilty to the additional charge of aggravated identity theft.
In their plea agreements, the defendants admitted they fraudulently obtained benefits from the Social Security Administration (SSA), and in some instances from the Medicaid Program, by concealing and intentionally failing to disclose their true living arrangements and financial resources.
Court documents indicate that, as far back as 1998 in one case, some of the defendants lied to SSA agents, telling the agents that they had divorced or separated from their spouses when in fact they were living together and sharing living expenses. In one case, a woman even forged the signature of her husband to further the scheme.
Collectively, the defendants defrauded the SSA and the Medicaid Program out of nearly $450,000.
Had the defendants’ provided the SSA with their true living arrangements and financial resources, the defendants would have either been ineligible for SSI and Medicaid benefits or their eligibility would have been greatly reduced.
SSI is an income assistance program designed to provide financial assistance to elderly and disabled individuals who meet the program’s eligibility requirements. Kentuckians who are eligible for SSI also qualify for benefits under the Medicaid Program.
The defendants in the case are Diana Lynn Rice, 66, of Webbville, KY., Ila Jean Rose, 57, of Olive Hill, KY., Granvell Windfred Ramey, 73, of Catlettsburg, KY., Junia Kay Ratliff, 66, of West Liberty, KY., Randall Dale Ratliff, 74, of West Liberty, KY., and Linda Lou Tackett, 73, of Grayson, KY.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Guy P. Fallen, Special Agent in Charge, Social Security Administration, Office of Inspector General, jointly announced the guilty pleas.
The investigation was conducted by the SSA, Office of Inspector General. Assistant U.S. Attorney Chris Nasson represents the U.S. Attorney’s Office in this case.
Sentencing dates have not been announced. Supplemental Security Income Fraud carries a maximum of five years in prison upon conviction. Aggravated identity theft carries a mandatory two years in prison upon conviction.Seven People Arrested in Connection with Camden Drug GangRead the Press Release
Seven Alleged Members and Supplier of Drug Trafficking Organization Charged
CAMDEN, N.J. – Agents of the FBI, the N.J. State Police and detectives and investigators of the Camden Police Department and Camden County Prosecutor’s Office arrested seven people this morning for their alleged involvement with an illegal drug trafficking operation in Camden, U.S. Attorney Paul J. Fishman announced.
The arrests deal a significant blow to a drug trafficking organization (DTO) allegedly headed by Carl Wiles, a/k/a “Call Call,” 23, of Camden, which operated in the area of Eighth and Tulip streets in the Morgan Village section of Camden. This DTO allegedly sold heroin, crack cocaine and powder cocaine to customers who arrived on foot and by car and who called ahead for service. The arrests of seven of the eight people charged today include all levels of the DTO, from Wiles himself to one of his primary suppliers to lower level managers and workers. Drugs, weapons, ammunition and cash were seized during the arrests, including seven firearms recovered at the residence where Wiles was arrested. The defendants (see chart below) are scheduled to make their initial court appearances this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.
“The defendants in this case operated a well-organized, open-air drug market 24 hours a day, seven days a week, for at least a year,” U.S. Attorney Fishman said. “This prosecution confirms that all of us in law enforcement remain fully committed to improving the quality of life for the people who live in this neighborhood.”
“Dismantling violent gangs is a continuing priority for the FBI, and our law enforcement partners,” Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division, said. “Today’s arrests are the result of a lengthy investigation by the South Jersey Violent Offender and Gang Task Force, and are an important step toward reclaiming the city of Camden from the thugs who have run its streets for far too long.”
Camden County Prosecutor Warren Faulk said, “These arrests are another example of the cooperative effort among all the law enforcement agencies operating in the city of Camden. Every success in this city stems from these kinds of cooperative efforts.”
“This violent gang has flagrantly terrorized our already challenged city for far too long,” said Camden Police Chief Scott Thomson. “Let today's arrest send a very loud and very clear message to criminals that law enforcement at every level will aggressively target and remove them from the streets with our dynamic C4 (Camden County Crime Commission).initiative.”
According to documents filed in this case and statements made in court:The organization controlled an area that includes the area of Eighth and Tulip streets, a retail shopping plaza in the 700 block of Morgan Boulevard and areas within the Crestbury Apartments public housing project, located in the 2500 block of South Eighth Street.
An investigation using surveillance, confidential informants, controlled drug purchases, record checks and telephone wiretaps revealed that the Carl Wiles DTO acquired and distributed heroin, crack and powder cocaine; maintained various stash houses; and rented cars to conduct drug-related business. Wiles and Pulliam handled call-in customers personally and also directed customers to be served at 8th and Tulip streets. Intercepted conversations and surveillance established that Jackson resupplied Wiles when the organization ran low on heroin.
Intercepted telephone conversations and controlled drug buys reveal that the Wiles DTO used a color-coding based upon the uniform colors of professional sports teams to refer to the different narcotics it sold. Crack cocaine was packaged in blue-colored bags (“Giants”). Powder cocaine was sold in clear bags and referred to as “White Sox,” “clear” or “white.” Heroin was sold over time in red bags (“Redskins”), yellow bags (“Steelers”) and green bags (“Green Bay” or “Jets”). The narcotics were sold in individual user amounts as well as in re-distribution amounts (bundles), with a heroin bundle typically consisting of 10 to 12 individual bags and a crack bundle containing approximately 40 individual bags.
The investigation further established that Wiles led the organization, with managers Fuquan Pulliam and Kahlil Mims overseeing the workers, William Gideon, Justin Gould, Marqueis Thomas-Randall, Elquinzie Lewis and others. Intercepted calls reveal not only how the operation was supplied and proceeds collected, but also Wiles’ leadership role. He was intercepted discussing with Pulliam replacing a worker and chastising DTO members for missing customers by moving too slowly, miscounting or not being out on the street enough. In one conversation, Wiles told a worker: “My thing is loyalty. You rolling with us, you got loyalty. You all right. You rolling with us that mean everybody you see got your back a hundred percent, like that’s what I mean by loyalty. It’s bigger than what’s just going on.”
U.S. Attorney Fishman credited special agents of the FBI’s Cherry Hill, N.J., resident Agency, Philadelphia Division and the South Jersey Violent Offender and Gang Task Force, under the direction of FBI Special Agent in Charge Hanko; the Camden County Prosecutor’s Office, under the direction of Prosecutor Faulk; the Camden City Police Department, under the direction of Chief Scott Thomson; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Camden Collaborative Crime Commission (“C4”), with the investigation leading to today’s arrests. He also thanked the Philadelphia Police Department, the N.J. Parole Board, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the N.J. Division of Criminal Justice, the Voorhees Police Department, the Gloucester County Prosecutor’s Office, the Salem County Prosecutor’s Office, the Camden County Sheriff’s Office, the Woodbury Police Department and the Pennsauken Police Department for their roles in the case.
The government is represented by Special Assistant U.S. Attorney Ira M. Slovin of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case was developed through the work of the Camden Collaborative Crime Commission (C-4). Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop investigative strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute the most dangerous criminals in one of our nation’s most dangerous cities.
13-158
Defendants
Name
Age
Residence
Role
23
Oaklyn, N.J.
Leader
Keith Jackson
30
Camden, N.J.
Supplier
Fuquan Pulliam
23
Pennsauken, N.J.
Manager
Khalil Mims
22
Camden, N.J.
Manager
Justin Gould
24
Camden, N.J.
Worker
Marqueis Thomas-Randall
21
Camden, N.J.
Worker
William Gideon
19
Camden, N.J.
Worker
Elquinzie Lewis*
21
Camden, N.J.
Worker
*Not in custody
Wiles et al. Complaint
Carl Wiles
Fuquan Pulliam
Justin Gould
Kahlil Mims
Keith Jackson
Marqueis Thomas-Randall
William Gideon
Elquinzie LewisRockford, Illinois Woman Sentenced to 17 Months in Federal Prison for Embezzling from Local Labor UnionRead the Press Release
ROCKFORD — A Rockford, Ill. woman was sentenced today to 17 months in federal prison for having embezzled over $190,000 from a local labor union. U.S. District Judge Frederick J. Kapala sentenced Grace Rathke, 57, Rockford, to prison for embezzling monies and funds belonging to Local 32 of the Laborers International Union of North America between November 2004 and March 2009.
Rathke had been indicted on August 2, 2011, and charged with embezzling from Local 32. On January 3, 2013, she pleaded guilty to embezzlement. According to the written plea agreement, beginning in November of 2004 and continuing until March 2009 Rathke, the office manager for Local 32, embezzled over $190,000 from the union local.
Rathke was also sentenced to pay full restitution, consisting of $34,836 to Laborers’ Local 32 and $170,000 to its bonding company, Zurich American Insurance Co. Rathke was taken into custody on April 1, 2013, after having been found to have used marijuana while on release pending sentencing. After she is released from prison, she will be on supervised release for 3 years.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, James Vanderberg, Special Agent-In-Charge of the Chicago office of the United States Department of Labor, Office of Inspector General, Office of Fraud and Labor Racketeering Investigations, and Mary Kebisek, District Director of the Chicago office of the United States Department of Labor – Office of Labor-Management Standards.
The government has been represented by Assistants U.S. Attorney John G. McKenzie and Monica V. Mallory.
Rockford Tax Preparer Charged with Filing False Personal Income Tax ReturnsRead the Press Release
ROCKFORD — A Rockford, Ill. woman was indicted by a federal grand jury today on charges of tax fraud. ANNA MARTINEZ, 44, was charged with three counts of filing a false income tax return with the United States Internal Revenue Service. The alleged false returns Martinez filed were for tax years 2006, 2007, and 2008.
According to the indictment, Martinez owned and operated Community Tax Service, a tax preparation business, in Rockford, Illinois. Martinez allegedly filed her U.S. Individual Income Tax Return Form 1040 with schedules and attachments for the calendar year 2006, that she verified by written declaration made under the penalties of perjury, and allegedly failed to disclose approximately $68,026 of receipts of Community Tax Service for 2006. The indictment similarly charges Martinez with failing to disclose approximately $236,524 of receipts of Community Tax Service for the 2007 tax year, and approximately $79,594 of receipts of Community Tax Service for the 2008 tax year.
Martinez is scheduled to appear at the Federal Courthouse in Rockford on Monday, April 15, 2013, at 11:00 a.m., for arraignment. The arraignment will be conducted by United States Magistrate Judge P. Michael Mahoney.
Each count of filing a false tax return carries a penalty of up to 3 years in prison, and a maximum fine of $100,000. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution.
The indictment was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-In-Charge of the Chicago Field Office of Internal Revenue Service - Criminal Investigation Division.
Members of the public are reminded that a criminal indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt of the defendant beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Indictment
Platte City Contractor Sentenced in $900,000 Kick-back SchemeRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Platte City, Mo., contractor has been sentenced in federal court for his role in a nearly $900,000 bid-rigging conspiracy that involved several contractors.
Tim Rowland, 45, of Platte City, was sentenced by U.S. District Judge Gary A. Fenner on March 30, 2013 to five years of probation and ordered to pay $298,765 in restitution.
On Oct. 19, 2012, Rowland pleaded guilty to his role in a conspiracy to commit mail fraud. Rowland was the owner of ATNJ, a construction company that fulfilled contracts for Aimco Apartment Management. Between November 2004 and May 2009, Rowland conspired to pay approximately $298,765 in kickbacks to co-conspirators Christopher Grimsley, 43, of Overland Park, Kan., and JoDen Napper, 40, of Lenexa, Kan.
Grimsley and Napper were directors of construction for Aimco (and, later, Cres Management) and in charge of procuring bids for renovating apartment complexes. In exchange for these kickbacks, Grimsley and Napper agreed to rig bids in Rowland’s favor without the knowledge of Aimco or Cres Management.
Grimsley was sentenced on March 28, 2011 to 41 months in federal prison without parole and ordered to pay $538,340 in restitution after pleading guilty to mail fraud. Between May 2003 and May 2009 Grimsley accepted approximately $538,340 in kickbacks from various contractors in the Kansas City area. In exchange for these kickbacks, Grimsley agreed to rig bids in favor of the contractors without the knowledge of Aimco.
Napper pleaded guilty to mail fraud and awaits sentencing. Between August 2004 and May 2009 Napper accepted approximately $355,749 in kickbacks from various contractors. In exchange for these kickbacks, Napper agreed to rig bids in favor of the contractors without the knowledge of Cres Management.
In separate but related cases, three more contractors have pleaded guilty to paying bribes in exchange for construction contracts and await sentencing.
Chris Childers, 43, of Olathe, Kan., pleaded guilty on Jan. 15, 2013 to conspiracy to commit mail fraud. Childers was the owner of All State Renovations, which fulfilled construction contracts for Cres Management. Between May 2004 and April 2009, Childers conspired to pay approximately $179,570 in kickbacks to Grimsley and Napper. In exchange for these kickbacks, they agreed to rig bids in Childers’s favor without the knowledge of Cres Management.
Tom Villirillo, 49, of Olathe, Kan., pleaded guilty on Jan. 3, 2013 to participating in a conspiracy to commit mail fraud. Villirillo was the owner of Reliable Construction, which fulfilled construction contracts for Cres Management. Between June 2008 and May 2009, Villirillo conspired to pay approximately $105,560 in kickbacks to Grimsley and Napper. In exchange for these kickbacks, they agreed to rig bids in Villirillo’s favor without the knowledge of Cres Management. Among other things, Villirillo used his credit card to pay for hotel accommodations in Las Vegas for Grimsley and his wife in exchange for granting his bids to complete construction work.
Bernie Belcher, 56, of Olathe, Kan., pleaded guilty on Nov. 8, 2012 to participating in a conspiracy to commit mail fraud. Belcher was the owner of All State Roofing, which fulfilled construction contracts for Aimco Apartment Management. Between May 2003 and May 2009, Belcher conspired to pay approximately $201,224 in kickbacks to Grimsley and Napper. In exchange for these kickbacks, they agreed to rig bids in Belcher’s favor without the knowledge of Aimco.
These cases are being prosecuted by Assistant U.S. Attorney William L. Meiners. They were investigated by the Environmental Protection Agency and the U.S. Department of Housing and Urban Development, Office of Inspector General.