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27 March 2013
Justice Department’s Civil Injunction Program Shuts Down Fraudulent Tax Return Preparers and Promoters NationwideRead the Press Release
The Justice Department today announced recent results of its civil injunction efforts to combat unscrupulous tax return preparers and tax fraud promoters. According to Internal Revenue Service (IRS) estimates, 60 percent of taxpayers use tax professionals to prepare and file their tax returns. Paid tax return preparers now prepare more than 80 million individual tax returns annually. For more than a decade, the department’s Tax Division, working with the Internal Revenue Service, has pursued a civil injunction program to stop fraudulent return preparers and promoters from violating federal tax laws and consumer protection laws. With the current tax-filing season underway, the Tax Division in the last six months has obtained permanent injunctions against more than 30 preparers and promoters doing business all over the United States.
Since Oct. 1, 2012, the Tax Division has obtained civil injunctions against both large-scale return preparation franchises and smaller, independent return preparers and promoters across the country. For example, on Oct. 22, 2012, a U.S. District Court in Dayton, Ohio, entered preliminary injunctions against ITS Financial LLC and its CEO, Fesum Ogbazion. ITS Financial is the parent company that owns the Dayton-based Intstant Tax Service tax-preparation franchise operation. Instant Tax Service claims to be the fourth-largest tax-preparation firm in the nation. The preliminary injunction remains in force pending trial on the government’s request for a permanent injunction, currently scheduled for May 2013. During December, January and February, federal district courts also permanently enjoined current and former Instant Tax Service franchisees in Las Vegas, Kansas City and Los Angeles , and entered a preliminary injunction against an Instant Tax Service franchisee in Indianapolis. Similarly, on March 1, 2013, a U.S. District Court in Tennessee permanently shut down a licensee of Memphis-based Mo’ Money Taxes LLC and MoneyCo USA LLC. Federal courts have also shut down return preparers in Mississippi, Florida, Louisiana and South Carolina, and promoters of alleged tax-fraud schemes in Michigan, New York and Kansas.
As alleged in the Tax Division’s civil injunction complaints, fraudulent return preparers commonly falsify information to take advantage of refundable credits available under federal tax law, often improperly manipulating customers’ income, expenses and dependents to hit the so-called “sweet spot” to maximize the refundable credit claimed. They also take advantage of customers by selling deceptive loan products with exhorbitant fees. As identified in the government’s complaints, some of the fraudulent schemes and practices that have been stopped through injunction orders recently include:
· Preparing phony tax-return forms with fabricated businesses and income;
· Claiming false education and homebuyer credits;
· Claiming false and inflated deductions;
· Claiming false filing status;
· Claiming false dependents;
· Selling deceptive loan products;
· Filing tax returns without customer consent or authorization;
· Preparing bogus W-2 forms, based on information from employee paystubs;
· Falsifying information on returns to claim inflated earned income tax credits; and
· Filing fraudulent tax returns using stolen taxpayer identities to obtain improper tax refunds.
Some preparers try to conceal their fraud by not signing the returns they prepare and by using stolen or fake social security numbers to misidentify the paid preparer.
“It is important that we make clear, especially now when honest taxpayers are filing their returns, that we will pursue those who would abuse our nation’s tax laws,” said Assistant Attorney General for the Tax Division Kathryn Keneally. “Fraudulent tax return preparers and tax scheme promoters too often seek to take advantage of their customers as well as to undermine our tax system. I commend the Tax Division’s attorneys and our colleagues at the Internal Revenue Service for their steady diligence and tireless work in uncovering and shutting down these schemes and scams.”
In the past decade, the 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. Return preparer fraud is one of the IRS’s “ Dirty Dozen Tax Scams.” For more information about choosing a tax return preparer, see the IRS website and the IRS YouTube Channel.
Justice Department Settles Sex-Discrimination Suit Against Summit CountyRead the Press Release
The Department of Justice announced today that it has entered into a consent decree with Summit County, Ohio, and related parties, which if approved by the court, will resolve a sex discrimination lawsuit in which the United States intervened in June 2012.
The United States joined a lawsuit brought in the U.S. District Court for the Northern District of Ohio by 21 female deputy sheriffs at the Summit County Jail who claimed they were subjected to discrimination due to a sex-segregated job assignment system implemented at the jail in January 2012. The United States’ complaint in intervention alleged that this system discriminated against female deputies because of their sex and constituted a pattern or practice of sex discrimination in violation of Title VII of the Civil Rights Act of 1964. As a result of this discriminatory practice, the United States alleged female deputies lost the job assignments and shifts they had earned based on their seniority as well as opportunities to bid on overtime postings.
“Bringing an end to practices in the law enforcement community that discriminate against women is a major priority of the Justice Department and the Civil Rights Division. Practices that facially discriminate on the basis of sex that cannot be justified under the law, like the job assignment system used by Summit County, present a major hurdle to workplace equality that the Justice Department will not ignore,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General, Civil Rights Division.
In July 2012, shortly after the United States joined the lawsuit, Summit County abandoned its sex-segregated job assignment system. Under the terms of the consent decree, Summit County has agreed to take several steps to ensure that any job assignment system implemented at the Summit County Jail will comply with Title VII and only use sex-based assignments, if at all, to the limited extent that they are reasonably necessary to the normal operation of the jail.
To make this determination, the county will conduct a staffing analysis and develop a lawful staffing plan, which it will review regularly during the life of the decree. The county will also provide training on sex discrimination as well as engage in recruitment efforts to encourage qualified female applicants to apply for deputy positions.
Finally, the county will pay $400,000 in individual monetary relief to the affected female deputies and to cover their attorney fees.
“This agreement ensures that female deputies at the Summit County Jail will have the opportunity to do the same jobs as their male counterparts,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “We will continue to press for equality for women in the workplace.”
This is the first pattern or practice lawsuit brought by the Justice Department as a result of a joint project with the Equal Employment Opportunity Commission (EEOC) designed to ensure vigorous enforcement of Title VII against state and local governmental employers by enhancing cooperation between the EEOC and the Civil Rights Division. Enforcement of federal employment discrimination laws is a top priority for the Justice Department with this case being handled by attorneys assigned to both the Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Ohio.
“Our partnership with Department of Justice allows for the strategic investigation and efficient resolution of discrimination claims in the public sector,” said EEOC District Director Spencer H. Lewis Jr., of the EEOC Philadelphia District Office. The Philadelphia District Office of the EEOC oversees Pennsylvania, Maryland, Delaware, West Virginia and parts of New Jersey and Ohio.
Title VII prohibits discrimination in employment on the basis of gender, race, color, national origin or religion, and prohibits retaliation against an employee who opposes an unlawful employment practice, or because the employee has made a charge or participated in an investigation, proceeding or hearing under the act. More information about Title VII and other federal employment laws is available on the Department of Justice website at www.usdoj.gov/crt/emp/index.html.
The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its website at www.eeoc.gov.
Justice Department Settles Sex Discrimination Suit Against Summit County, OhioRead the Press Release
The Department of Justice announced today that it has entered into a consent decree with Summit County, Ohio, and related parties, which if approved by the court, will resolve a sex discrimination lawsuit in which the United States intervened in June 2012. The United States joined a lawsuit brought in the U.S. District Court for the Northern District of Ohio by 21 female deputy sheriffs at the Summit County Jail who claimed they were subjected to discrimination due to a sex-segregated job assignment system implemented at the jail in January 2012. The United States’ complaint in intervention alleged that this system discriminated against female deputies because of their sex and constituted a pattern or practice of sex discrimination in violation of Title VII of the Civil Rights Act of 1964. As a result of this discriminatory practice, the United States alleged female deputies lost the job assignments and shifts they had earned based on their seniority as well as opportunities to bid on overtime postings.
“Bringing an end to practices in the law enforcement community that discriminate against women is a major priority of the Justice Department and the Civil Rights Division. Practices that facially discriminate on the basis of sex that cannot be justified under the law, like the job assignment system used by Summit County, present a major hurdle to workplace equality that the Justice Department will not ignore,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General, Civil Rights Division.
In July 2012, shortly after the United States joined the lawsuit, Summit County abandoned its sex-segregated job assignment system. Under the terms of the consent decree, Summit County has agreed to take several steps to ensure that any job assignment system implemented at the Summit County Jail will comply with Title VII and only use sex-based assignments, if at all, to the limited extent that they are reasonably necessary to the normal operation of the jail. To make this determination, the county will conduct a staffing analysis and develop a lawful staffing plan, which it will review regularly during the life of the decree. The county will also provide training on sex discrimination as well as engage in recruitment efforts to encourage qualified female applicants to apply for deputy positions. Finally, the county will pay $400,000 in individual monetary relief to the affected female deputies and to cover their attorney fees.
“This agreement ensures that female deputies at the Summit County Jail will have the opportunity to do the same jobs as their male counterparts,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “We will continue to press for equality for women in the workplace.”
This is the first pattern or practice lawsuit brought by the Justice Department as a result of a joint project with the Equal Employment Opportunity Commission (EEOC) designed to ensure vigorous enforcement of Title VII against state and local governmental employers by enhancing cooperation between the EEOC and the Civil Rights Division. Enforcement of federal employment discrimination laws is a top priority for the Justice Department with this case being handled by attorneys assigned to both the Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Ohio.
“Our partnership with Department of Justice allows for the strategic investigation and efficient resolution of discrimination claims in the public sector,” said EEOC District Director Spencer H. Lewis Jr., of the EEOC Philadelphia District Office. The Philadelphia District Office of the EEOC oversees Pennsylvania, Maryland, Delaware, West Virginia and parts of New Jersey and Ohio.
Title VII prohibits discrimination in employment on the basis of gender, race, color, national origin or religion, and prohibits retaliation against an employee who opposes an unlawful employment practice, or because the employee has made a charge or participated in an investigation, proceeding or hearing under the act. More information about Title VII and other federal employment laws is available on the Department of Justice website at www.usdoj.gov/crt/emp/index.html.
The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its website at www.eeoc.gov.Related Materials:
Summit County Proposed Consent Decree
Inmate Sentenced for Filing False Tax Returns While in Alabama Federal PrisonRead the Press Release
David Marrero, a federal inmate in the custody of the Bureau of Prisons, was sentenced today to 46 months in prison for tax fraud committed while in prison, the Justice Department and the Internal Revenue Service (IRS) announced. Twenty-four months of the sentence imposed will run concurrent with Marrero’s current 10 year federal sentence, and 22 months will run consecutive to his 10 year sentence. Marrero had pleaded guilty in December 2012 to filing false claims.
According to court documents, while serving his federal sentence in Montgomery County, Ala., Marrero began sending various false documents to the IRS and to the federal judge who had presided over his case in Florida. Among the documents Marrero sent were fictitious money orders and false tax returns making claims for refunds, including one tax return claiming a $2,719,438 refund—the amount of restitution Marrero had been ordered to pay following his conviction in Florida. The fraudulent tax returns were based upon false IRS Forms 1099-OID on which Marrero had fraudulently claimed that various companies withheld a substantial amount of federal taxes from him when, in fact, the companies had withheld nothing. Marrero also used financial documents he had obtained from other people, without their knowledge or consent, as supporting documentation for his fraudulent claims.
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason Poole and Justin Gelfand, who prosecuted the case.
Form 1099-OID schemes are one of the IRS’s “Dirty Dozen” tax scams. Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Inmate Sentenced for Filing False Tax Returns While in Alabama Federal PrisonRead the Press Release
Montgomery, Alabama - David Marrero, a federal inmate in the custody of the Bureau of Prisons, was sentenced today to 46 months in prison for tax fraud committed while in prison, announced U.S. Attorney George L. Beck. Twenty-four months of the sentence imposed will run concurrent with Marrero’s current 10 year federal sentence, and 22 months will run consecutive to his 10 year sentence. Marrero pleaded guilty in December 2012 to filing false claims.
According to court documents, while serving his federal sentence in Montgomery County, Ala., Marrero began sending various false documents to the IRS and to the federal judge who had sentenced him in Florida. Among the documents Marrero sent were fake money orders and false tax returns making claims for refunds, including one tax return claiming a $2,719,438 refund—the amount of restitution Marrero had been ordered to pay following his conviction in Florida. In the false tax returns, Marrero lied that he had various companies. He also lied that these companies had withheld substantial amount of federal taxes from him when, in fact, the companies had withheld nothing. Marrero also used financial documents he had stolen from other people, as supporting documentation for his fraudulent claims.
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason Poole and Justin Gelfand, who prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Illinois Man Charged with Illegally Distributing PeptidesRead the Press Release
PITTSBURGH - A resident of Palatine, Ill., was indicted on March 26, 2013, by a federal grand jury in Pittsburgh on charges of mail fraud, misbranding of drugs and money laundering, United States Attorney David J. Hickton announced today.
The three-count indictment named Adam F. Higdon, 40, as the sole defendant.
According to the indictment, Higdon maintained two websites for the illegal distribution of peptides - chemical compounds which require a prescription for dispensation, but which are illegitimately sought by body-builders for muscle enhancement. Higdon deceived the Internet service provider and the FDA by falsely representing on the websites that he was selling these substances "for research use only . . . not for human consumption." During the period from January 2010 until January 2011, Higdon allegedly paid $131,472.50 to acquire the substances from suppliers in the Peoples Republic of China; and he thereafter sold the peptides for $397,662.00.
The law provides for a maximum total sentence of 20 years in prison and a fine of $250,000 on the mail fraud count; three years in prison and a fine of $250,000 on the misbranding count; and 20 years in prison and a fine of $500,000 on the money laundering count. 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 Leo M. Dillon is prosecuting this case on behalf of the government.
The prosecution arose from the combined efforts of agents with the FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Resident Gets Enhanced Sentence for Raping Undocumented Honduran AlienRead the Press Release
LAREDO, Texas – Juan De Dios Rodriguez, a 34-year-old Mexican National has been handed a 60-month-term of federal imprisonment for transporting an illegal alien, United States Attorney Kenneth Magidson announced today.
Rodriguez had been illegally living in the Laredo area after losing his border crossing card in 2003. While here, he became involved in transporting undocumented aliens for financial gain. Specifically, Rodriguez encountered an undocumented female from Honduras on March 15, 2012, who had never been to the United States and had limited education. At 11:30 p.m. on the same day of encounter, Rodriguez picked up the undocumented alien whom he was supposed to take to a tractor trailer for further transportation north.
However, he instead took her to a secluded area, where he sexually assaulted her for hours in a vehicle. Afterwards, he took her to a motel where he assaulted her again. In addition to the assault, he took $800 from the undocumented alien as a form of payment for smuggling fees.
Before pronouncing sentencing, the court noted that Rodriguez had previously demonstrated violent tendencies toward other women, who were never at fault. At the hearing, he again chose to not acknowledge his wrongdoing stating that the encounter was consensual. However, he had repeatedly threatened her to comply. Out of fear for her life, the undocumented alien did as she was told despite her contention that this was the worst pain she had ever experienced.
Upon recommendation of the government, the court upwardly departed from the U.S. Sentencing Guidelines by imposing the 60-month sentence based on the egregious conduct involved in the case in addition to prior incidents.
The case was investigated by Homeland Security Investigations and Laredo Police Department.
Assistant United States Attorney Suntrease Williams is prosecuting the case.
Idaho Home Builder Sentenced for Tax EvasionRead the Press Release
Ordered to Pay $429,436 in Restitution to the IRS
BOISE – Justin D. Schoenauer, 41, also known as Corey J. Schoenauer, a resident of Twin Falls County, Idaho, was sentenced today in United States District Court to 27 months in prison for income tax evasion. Schoenauer was also sentenced to three years of supervised release and ordered to pay $429,436 in restitution. Schoenauer was indicted in February 2012 and pleaded guilty to the offense on October 30, 2012.
According to court documents, Schoenauer was a general contractor who, for the past ten years, operated a sole proprietorship called Patagonia Construction (Patagonia), a business engaged primarily in building homes. Schoenauer admitted that during tax years 2005 through 2008, he concealed Patagonia’s business receipts. Schoenauer further admitted that he directed some customers to make checks payable to him personally, rather than to Patagonia, then ensured that those checks were not deposited into Patagonia’s main bank account. When having tax returns prepared, Schoenauer falsely told his return preparer that all of his business receipts were deposited into the main Patagonia bank account, thereby concealing Patagonia’s gross receipts and causing the preparation and filing of false tax returns. Schoenauer paid the IRS $35,000 at sentencing, which will be applied to his outstanding tax liability.
“When a business owner cheats on his taxes, he gains an unfair advantage over honest businesses and cheats all honest taxpayers,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “Today’s sentence shows that we will hold such criminals accountable.”
“Paying income tax is a solemn obligation of citizenship,” said United States Attorney Wendy J. Olson. “Integrity in business transactions required to be reported to the federal government is essential to the proper functioning of our economy. Those who hide income, evade taxes and launder profits undermine our democracy. This sentence sends a strong message that those who seek to avoid their tax responsibilities will be properly punished.”
“The license to run a business is not a license to evade paying taxes,” said Richard Weber, Chief, IRS Criminal Investigation. “Mr. Schoenauer’s misconduct, concealing business receipts and having checks made payable to himself, is offensive to all honest business owners. IRS Criminal Investigation continues to protect the U.S. tax system by investigating and bringing to justice individuals who violate tax laws.”
Assistant Attorney General Keneally and United States Attorney Olson commended the efforts of special agents from IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Michael J. Romano and Mark L. Williams, who prosecuted the case.
Idaho Falls Man Pleads Guilty to Possessing More Than 600 Images of Child PornographyRead the Press Release
POCATELLO – James Brown, 50, of Idaho Falls, Idaho, pleaded guilty today in United States District Court in Pocatello to one count of possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Brown was charged by information on February 12, 2013.
According to the plea agreement, Brown admitted that on August 15, 2012, he possessed a laptop computer with more than 600 sexually explicit images of minors. Many of the images depicted sexual activity between adults and children under the age of 12. When Brown was interviewed by special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, he admitted to possessing “thousands” of images of sexually explicit conduct, approximately half of which he estimated were images of minor children.
Authorities were alerted to Brown’s illegal activities in April 2011, when the Federal Bureau of Investigation learned that Brown’s e-mail account had been used to send an image of child pornography to another person. An investigation led authorities to suspect the illegal activity was being conducted using the computer network of Brown’s employer, ON Semiconductor. Once notified, the company promptly undertook an internal investigation and cooperated fully with law enforcement’s investigation. Brown’s employment was terminated in conjunction with his confession to the authorities.
The charge of possessing sexually explicit images of minors is punishable by up to ten years in prison, a maximum fine of $250,000, and a minimum term of five years up to lifetime supervised release. The government is seeking forfeiture of the computer equipment used in the offense.
Sentencing is set for June 17, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Hubbard Man Faces Heroin ChargeRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury sitting in Cleveland, Ohio, returned a one-count indictment charging Andre M. Little, age 27, of Hubbard, Ohio, with possession with the intent to distribute heroin.
The indictment charges that on or about February 13, 2013, Andre M. Little possessed with the intent to distribute more than 1,000 grams of heroin.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration - Youngstown Resident Office. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Honeywell Resins and Chemicals to Pay $3 Million Penalty, Upgrade Air Pollution Controls at Hopewell, Virginia, PlantRead the Press Release
Honeywell Resins and Chemicals LLC has agreed to pay a $3 million civil penalty for alleged Clean Air Act violations at its Hopewell, Va., plant, and improve the facility’s air pollution control equipment and processes, the Justice Department and the U.S. Environmental Protection Agency (EPA) announced today.
The proposed consent decree resolves violations of federal and state air pollution regulations at the Hopewell plant, the world’s largest single-site producer of caprolactam used in the production of nylon, and ammonium sulfate used for fertilizer. According to EPA and the Virginia Department of Environmental Quality, the facility violated Clean Air Act limits on emissions of nitrogen oxide (NOx), benzene and other volatile organic compounds (VOCs) and particulate matter. The plant also allegedly failed to comply with requirements to upgrade air pollution control equipment, to detect and repair leaks of hazardous air pollutants, and to develop safeguards on benzene waste.
In addition to the $3 million civil penalty, Honeywell has agreed to reduce harmful air pollutants, install selective catalytic reduction at four production trains at the facility, conduct a third-party benzene waste operations audit, and implement an enhanced leak detection and repair program at the facility. Honeywell will also perform a mitigation project valued at approximately $1 million at the facility. The settlement reduces annual emissions of NOx by about 6,260 tons, and cuts annual emissions of benzene, other VOCs and hazardous air pollutants by 100 tons. The estimated cost for injunctive relief to address these emissions will be approximately $66 million dollars. The civil penalty will be split evenly between Virginia and the United States.
As part of the settlement, Honeywell did not admit liability for the violations, but has certified that it is now in compliance with applicable Clean Air Act regulations. The proposed consent decree is subject to a 30 day public comment period and final court approval. For more information, see http://www.justice.gov/enrd/ConsentDecrees/Honeywell_Consent_Decree_Lodged.PDF
Hartford Crack Dealer Sentenced to More Than Eight Years in Federal PrisonRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that DERRICK BAILEY, also known as “Fry,” 44, of Hartford, was sentenced today by United States District Judge Janet C. Hall in New Haven to 105 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford. The investigation revealed that BAILEY distributed crack cocaine to co-defendants who redistributed the drug to numerous street-level dealers, including gang members, in the area of Enfield Street in Hartford.
BAILEY’s criminal history includes multiple narcotics-related felony convictions, as well as a firearms conviction.
BAILEY has been detained since his arrest on May 9, 2012. On January 2, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Garfield Man Sentenced for Constructing A Road Through A Protected Wetland BasinRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Fergus Falls, a 49-year-old man from the central Minnesota community of Garfield was sentenced for constructing a road through land he knew was a federally protected wetland basin. United States Magistrate Judge Leo I. Brisbois sentenced James Bosek to two years of probation on one misdemeanor count of filling a wetland that was subject to a federal easement under the National Wildlife Refuge System Act. In addition, Bosek was ordered to remove the road and complete the restoration as outlined by the U.S. Fish and Wildlife Service (“USFWS”). Bosek was convicted on January 4, 2013, based on evidence presented to Judge Brisbois during a bench trial last August.
Judge Brisbois told Bosek that the restoration of the wetland is the only way to “undo the injury to the public interest.” So, he fined Bosek $2,500, but said if the restoration is completed by March 31, 2014, the fine will be waived.
Following today’s sentencing, Larry Martin, USFWS Fergus Falls Wetland Management District Project Leader, said, “The USFWS purchases wetland easements to protect wetlands from this type of alteration, along with any type of drainage activity, and we are pleased to see the Court upholding our easement and restoration efforts in Minnesota.”Judge Brisbois found that Bosek engaged in prohibited activity when he built a road across the eastern edge of his property, which is located in rural Douglas County. The property is subject to a perpetual easement that the U.S. Department of Interior purchased in 1963. Bosek bought the property subject to the easement in 2001.
Bosek acknowledged during the trial that he knew of the easement before building the road. In finding him guilty, Judge Brisbois found that Bosek failed to obtain permission or authorization from the USFWS to construct the road over the protected wetlands. The USFWS discovered the road while making an unrelated visit to Bosek’s property in April 2008. Judge Brisbois credited the trial testimony of a USFWS biologist, who surveyed the property and concluded that Bosek’s action damaged the wetland as a protected native habitat for waterfowl. Bosek was charged on August 19, 2011, after refusing the USFWS’s request that he remove the road and restore the wetland.
This case was the result of an investigation by the USFWS. It was prosecuted by Assistant U.S. Attorneys Lola Velazquez-Aguilu, Thomas Calhoun-Lopez, and William J. Otteson.Four Jefferson County Men Indicted on Federal Mail Fraud ChargesRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Four Port Arthur, Texas men have been indicted and arrested in connection with a mail fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
An indictment was returned by a federal grand jury on Mar. 6, 2013 charging Christopher Thomas, 41, Lawrence Thomas, 42, Haleem Collins, 35, and Quarmi Garlington, 25, with conspiracy to commit mail fraud.
The indictment, which was unsealed today, alleges that from Nov. 6, 2006, to Mar. 8, 2012, the defendants conspired with each other to defraud numerous auto insurance companies by submitting fraudulent insurance claims for personal injury and economic loss through the U.S. Postal Service. According to the indictment, the defendants repeatedly staged automobile collisions in Port Arthur after having purchased policies on the vehicles involved. Once the defendants either actually crashed the vehicles, or staged a collision, they would contact police and assume the roles of drivers and passengers for emergency personnel. The indictment also alleges that the defendants would use aggressive driving tactics to induce automobile accidents with other unsuspecting drivers. Following these collisions, the defendants would falsely claim to be injured and submit, by means of the mail, fraudulent accident claims.
The defendants were taken into custody and made initial appearances this week before U.S. Magistrate Judge Zack Hawthorn.
If convicted of the conspiracy charge, the defendants each face up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Port Arthur Police Department, and the National Insurance Crime Bureau and is being prosecuted by Assistant U.S. Attorney Baylor Wortham.
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.
Four Facing Charges in Multi-Faceted Mortgage Fraud ConspiracyRead the Press Release
PITTSBURGH - A resident of Verona, Pennsylvania and three residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, wire fraud, bank fraud, filing false tax returns, and failing to file tax returns, United States Attorney David J. Hickton announced today.
The 20-count superseding indictment, returned on March 26, 2013, named George Kubini, 48, of Verona, Pa.; Dov Ratchkauskas, 46, of Pittsburgh, Pa.; Sandra Svaranovic, 52, of Pittsburgh, Pa.; and Arthur Smith, 63, of Pittsburgh, Pa.
According to the superseding indictment presented to the Court, Kubini, Ratchklauskas, Svaranovic, Smith, and a number of other individuals who have already pleaded guilty, participated in a multi-faceted mortgage fraud conspiracy involving hundreds of properties and tens of millions of dollars worth of fraudulent loans.
Kubini and Ratchkauskas operated businesses that purchased and sold real estate. The superseding indictment alleges that Kubini and Ratchkauskas sold properties financed through a complex mortgage fraud scheme and that they executed settlement statements that they then knew were fraudulent. The superseding indictment also alleged that Kubini and Ratchkauskas made false representations to borrowers about making improvements to the properties.
Other members of the alleged conspiracy who already pleaded guilty included Robert Arakelian, who operated a mortgage broker business called Pittsburgh Home Loans, and Rhonda and Rochelle Roscoe, who operated another mortgage broker business called Riverside Mortgage. The superseding indictment alleges that Arakelian and Rhonda and Rochelle Roscoe, in furtherance of the conspiracy, submitted loan applications to lenders that falsely represented that the borrowers were intending to make payments at the time of the closings related to the purchase of the properties and that they had sufficient assets to make those payments from their own funds. This false representation was corroborated by Verification of Deposits that falsely represented that the borrowers had sufficient money in their bank accounts to make the payments at the closings.
Other members of the conspiracy included Bartholomew Matto, Cynthia Pielin, and Crystal Spreng, who all worked at financial institutions and all pleaded guilty to their roles in the conspiracy. Their role was to sign the fraudulent Verifications of Deposit that falsely represented that the borrowers had sufficient funds in their accounts to make the payments at the closings.
The conspiracy also involved fraudulent settlement statements that overstated the true sales prices of the properties and falsely represented that the purchases of the properties made substantial payments in connection with the purchase of the properties. Daniel Sporrer was and attorney who executed some of these fraudulent settlement statements and Karen Atkison was an assistant for Sporrer. Sporrer and Atkison all pleaded guilty to their roles in the conspiracy. The superseding indictment alleges that Smith, who is an attorney specializing in closing real estate transactions, similarly participated in the conspiracy by executing fraudulent settlement statements, by fraudulent withdrawing money from his trust account, and by making misrepresentations to a title insurance company.
In addition, the conspiracy involved appraisers who made false representations about the properties serving as collateral for the loans. The superseding indictment alleges that Svaranovic, as part of the conspiracy, prepared fraudulent appraisals that falsely represented the conditions of the properties serving as collateral for the loans and overstated the fair market values of those properties.
The superseding indictment also alleges that Kubini filed false income tax returns with the Internal Revenue Service that understated his Adjusted Gross Income, and that Smith failed to file his tax returns for the calender years 2007 through 2009 despite earning sufficient income to trigger his legal obligation to file his income tax returns.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Mortgage Fraud Task Force conducted the investigation leading to the indictment in this case. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Texas Health and Human Services Investigator Guilty of Theft of Federal FundsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 62-year-old Diboll, Texas woman has pleaded guilty to theft of federal funds in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Melva Darlene Blakemore pleaded guilty to an Information charging her with theft of federal funds on Mar. 26, 2013 before U.S. District Judge Marcia Crone.According to information presented in court, in May of 2008, while Blakemore was employed as a Senior Investigator with the Texas Health and Human Services Commission advised an individual receiving Supplemental Nutrition Assistance that they had been overpaid $2,520 on their Lone Star Card. Blakemore told the individual that if they did not repay the money, she would be indicted and prosecuted. Blakemore also advised the individual that if the money was paid in cash, with no receipt expected, Blakemore would send the money to someone she knew in Austin and that no charges would be filed. The individual contacted local authorities who were able to observe the individual meeting Blakemore in a Nacogdoches, Texas parking lot. Blakemore left the parking lot and drove away with the money before stopping to deposit a portion of it into her bank account. The remainder of the money was found in her vehicle.
Blakemore faces up to 10 years in federal prison and restitution of up to $31,008.00. A sentencing date has not been set.
This case is being investigated by the Texas Health and Human Services Commission, Texas Rangers, Federal Bureau of Investigation, Texas Department of Public Safety and the Nacogdoches County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Former President of the Native Village of Tatitlek arrested for theft of funds from and Indian Tribal OrganizationRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was arrested today on allegations that she misapplied over $200,000 of funds from the Native Village of Tatitlek for her personal use. Charges include that a $20,000 cash withdrawal of Tatitlek funds that she is alleged to have provided to her brother was also improperly misapplied.
On March 21, 2013, Lori “Sue” Johnson, 45 (married name now Lori Clum) of Anchorage, Alaska, was named in a four-count indictment with three counts of Theft from an Indian Tribal Organization. Johnson’s brother, James Kramer, 47, of Valdez, Alaska, was named in one count of the indictment for Theft from an Indian Tribal Organization.
The indictment alleges that Lori Johnson was voted out of office as President of the Native Village of Tatitlek in April 2008, but refused to acknowledge the election ousting her and maintained control over the village bank accounts until April 2009. During this time, it is alleged that she paid herself duplicate paychecks, took significant cash withdrawals, and wrote checks to herself totaling over $200,000. This amount included a $28,750 cash withdrawal she deposited into her personal bank account; a check for $19,500 that she wrote to herself and deposited into her personal bank account; and a $20,000 cash withdrawal that she gave to her brother James Kramer that he used for personal expenses.
The Native Village of Tatitlek receives the majority of its funding from federal sources including the Bureau of Indian Affairs, the U.S. Environmental Protection Agency, and the Department of Health and Human Services..
The FBI, and the U.S. Environmental Protection Agency Office of Inspector General with assistance from the IRS Criminal Investigations Division, conducted the investigation leading to the indictment in this case.
Assistant United States Attorney Aunnie Steward, who presented the case to the grand jury, indicated that the law provides for a maximum sentence of 5 years in prison, a fine of $250,000, or both on each count. Under the federal sentencing statutes, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.Former Murray County Sheriff's Captain Obstructed InvestigationRead the Press Release
ROME, Ga. - Michael Henderson pleaded guilty today to obstructing a pending civil rights investigation by tampering with a witness while employed as a Murray County Sheriff’s Captain.
“Mr. Henderson violated both the law and the public’s trust when he lied to his fellow law enforcement officers and obstructed a civil rights investigation,” said United States Attorney Sally Quillian Yates. “Bottom line, the citizens of Murray County at minimum deserve police officers who obey the laws that they have sworn to enforce.”“The citizens of this State should have every expectation that those who serve do so with integrity and within the bounds of the law,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The conduct of this now former law enforcement officer, as presented in this case, was clearly not within those standards and the FBI will continue to work with its law enforcement partners in ensuring that the public’s trust is well deserved.”
“The State of Georgia will not tolerate criminal activity by those officials with the duty to enforce its laws,” said Vernon Keenan, GBI Director.According to United States Attorney Yates, the charges and other information presented in court, sometime in July 2012, then-Captain Henderson received information that a white Dodge vehicle was being used to carry drugs. He passed this information along to other deputies with the Murray County Sheriff’s Office.
Henderson and separately charged former Deputy Sheriff Joshua L. Greeson participated in a traffic stop of the white Dodge car on August 14, 2012. During the stop, Greeson found methamphetamine in a metal can hidden under the wheel well of the car. After finding the drugs, they arrested the driver and owner/ passenger of the vehicle. Shortly thereafter, the Georgia Bureau of Investigation (GBI) received information that the drugs had been planted on the vehicle by another individual, in an attempt to falsely implicate the car’s owner. As a result, the state drug charges against the owner of the white Dodge were dismissed.
On August 22, 2012, agents from the GBI interviewed Henderson in connection with a civil rights investigation. During the interview, Henderson falsely stated to the GBI agents that he had never told any other members of the Murray County Sheriff’s Office that he had received information that the white Dodge was allegedly carrying drugs. As stated above, Henderson had in fact received information that the white Dodge vehicle carried controlled substances.
On August 31, 2012, Henderson was fired from the Sheriff’s Office.Henderson, 41, of Murray County, Ga. could receive a maximum sentence of 20 years in prison and a fine of up to $250,000. However, 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.
Sentencing is scheduled for May 31, 2013, at 1:30 p.m., before United States District Judge Harold L. Murphy.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and the Georgia Bureau of Investigation.
Assistant United States Attorneys Jeffrey W. Davis and Michael Herskowitz are prosecuting the case.
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.
Former Los Alamos National Bank Employee Sentenced to Prison for Bank Fraud ConvictionRead the Press Release
ALBUQUERQUE – Deborah Gayle Wood, 56, currently residing in Grove, Okla., was sentenced yesterday afternoon to eight months in prison followed by five years of supervised release for her bank fraud conviction. Wood also was ordered to pay $4,390.93 in restitution and a $10,000.00 fine.
Wood pled guilty in Dec. 2011 to a felony information charging her with bank fraud. In her plea agreement, Wood admitted that, from 2004 to 2005, while she was employed as a trust officer by the Los Alamos National Bank, she defrauded the Bank on numerous occasions by obtaining reimbursement for personal expenditures that she falsely represented as expenditures made on behalf of a bank trust account client. Wood also admitted using a Bank credit card issued in the client’s name on numerous occasions to make personal purchases that she falsely represented as expenses made on behalf of the client.
Court filings reflect that, between 2003 and 2006, Wood was the trust officer for the trust account of an elderly client suffering from Alzheimer’s disease. As trust officer, Wood’s responsibilities included making sure that the client’s living expenses were provided for and that her bills were paid in a timely manner. In the course of her work, Wood regularly purchased items for her personal use and falsely informed the Bank that the items were for the client’s benefit and should be charged to the client’s trust account. When the Bank learned that Wood had engaged in a multi-year pattern of fraud against the client’s trust account, the Bank reimbursed the client by crediting her trust account in the amount of $101,391.10.
The case was investigated by the Santa Fe office of the FBI and was prosecuted by Assistant U.S. Attorney John C. Anderson.
Former Judicial Candidate Convicted on Child Enticement & Child Pornography ChargesRead the Press Release
BIRMINGHAM – A federal jury today convicted a Birmingham man and former candidate for a Jefferson County Circuit Court judgeship of attempting to entice a minor to engage in sexual activity and of receiving and possessing child pornography, announced U.S. Attorney Joyce White Vance and Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
Following a two-day trial before U.S. District Judge R. David Proctor, the jury deliberated about two hours before convicting CHUCK HUNTER, 59, for using the Internet and a telephone in an attempt to persuade a person he believed to be a 14-year-old boy to engage in a sexual act. The jury also convicted Hunter of receiving child pornography over the Internet, and of possessing child pornography with the intent to view it.
Hunter was immediately taken into federal custody. He is scheduled for sentencing July 9.
“My office is committed to keeping our communities safe, and we continue to work aggressively to prosecute those who would seek to exploit children,” Vance said.
Hunter was arrested in June after an undercover police officer, posing as a 14-year-old boy, responded to an advertisement posted on the Internet seeking people less than 30 years old for sex, according to court testimony. Following several communications in which the Alabama Internet Crimes Against Children Task Force officer continued to identify himself as a minor child, Hunter arranged a meeting at a restaurant in Jefferson County with the person he thought to be 14 years old. Police arrested Hunter when he showed up for the meeting. Following Hunter’s arrest, police obtained a search warrant for his Southside Birmingham home and seized computer media containing images of child pornography, according to testimony.
Hunter had been a candidate for a place on the Jefferson County Circuit Court, but was removed from the November ballot following his arrest.
The Internet Crimes Against Children Task Force and HSI investigated the case. Assistant U.S. Attorneys Daniel J. Fortune and Elizabeth Holt prosecuted the case.
Former IT Manager at Cuyahoga Heights School District Charged with Crimes Related to Theft of $3.4 MillionRead the Press Release
A three-count information was filed charging a former employee of the Cuyahoga Heights School District with crimes related to the theft of more than $3.4 million from the district, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Joseph M. Palazzo, age 31, of Independence, Ohio, was charged with conspiracy to commit mail fraud, conspiracy to commit money laundering, and wire fraud.
“This defendant is accused of lining his pockets with millions of dollars intended to be used to educate the children of the Cuyahoga Heights School District,” Dettelbach said. “Our office will continue to go after those who would abuse the public trust.”
“This investigation uncovered a multi-million dollar embezzlement scheme laced with a web of financial lies that left a local school district in financial peril,” said Denise Rocawich, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
“Joseph Palazzo violated the trust that the citizens and students of Cuyahoga Heights had placed in him by funding his personal account with millions of their tax dollars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”
Palazzo was employed by the Cuyahoga Heights School District as its Information Technology Director until February 2011. Palazzo was responsible for managing the District’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the District and its students, according to the information.
Palazzo devised a scheme to divert millions of dollars of District funds to his personal use and the personal use of others. This scheme involved Palazzo submitting to the District for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the District’s IT Department to benefit the District. Palazzo represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to the information.
However, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the District from another source. The companies named on the invoices did not supply such goods to or perform such services for the District and were nothing more than “shells,” according to the information.
Palazzo’s actions caused the District to issue checks to these shell vendor corporations, which were established and owned by others working with Palazzo who are not named in the information. The shell vendor corporation owners, in turn, kept approximately half of the stolen money themselves and funneled the remainder of the money back to Palazzo for his personal use, according to the information.
As a result of the conduct of Palazzo and his unnamed co-conspirators, the District was defrauded and sustained a total loss of at least $3,333,448, according to the information.
Palazzo also engaged in a second scheme to defraud the District. It involved Palazzo purchasing various personal electronic items, such as I-Pads, cameras, and televisions, from legitimate District vendors. Palazzo then altered the invoices from such purchases to falsely reflect that classroom items, such as digital microscopes, projectors, and laptops, had been purchased for the District and submitted those invoices to the District for payment. Upon receipt of these personal electronic items, Palazzo sold them to third-parties at a discounted price and kept the money from such sales for his own personal use, according to the information.
As a result of the Palazzo’s conduct in the second scheme, the District was defrauded and sustained an additional loss of at least $76,214, according to the information.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation, both located in Cleveland, with the assistance of the State of Ohio Auditor’s Office and the United States Postal Inspection Service.
The case is being prosecuted by Assistant United States Attorney Rebecca Lutzko, Special Assistant United States Attorney Perry Mastrocola, and Assistant United States Attorney James L. Morford.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Brighton Resident and Son Convicted in Real Estate Investment FraudRead the Press Release
A Brighton businessman and his son were found guilty today by a federal jury of conspiracy and multiple counts of wire fraud, announced United States Attorney Barbara L. McQuade.
U.S. Attorney McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge of the Detroit office of the Federal Bureau of Investigation, and Merri Jo Gillette, Regional Director of the Chicago Office of the Securities and Exchange Commission.
The jury convicted John Bravata, 45, and Antonio Bravata, 25, after an eight- week trial before U.S. District Judge Paul D. Borman.
As part of the same prosecution, a guilty plea to wire fraud was entered by Richard J. Trabulsy, 32, of Canton, a former business partner of John Bravata.
The evidence at trial showed that from 2006 to 2009, John Bravata conspired with his son Antonio Bravata to defraud more than 500 investors of more than $50 million dollars, money that largely represented the life savings of investors. In executing the scheme to defraud John and Antonio Bravata solicited money for their company “BBC Equities” by using false and fraudulent statements and promises. These false statements included promises of guaranteed safety of principal and high interest returns. Rather than investing the money in safe real estate transactions as promised, a large portion of the money was used by the defendants to support their lavish lifestyles.
Both John Bravata and Antonio Bravata furthered their scheme to defraud through free lunch seminars that targeted retirees. At these presentations they not only made false promises of a safe investment, they falsely claimed that they did not get paid unless the company was profitable, that no fees or commissions would be charged or taken on investments and that real estate was purchased with cash.
John Bravata was convicted of Conspiracy to Commit Mail and Wire Fraud and 15 counts of Wire Fraud. Antonio Bravata was convicted of Conspiracy to Commit Mail and Wire Fraud. Each count carries a maximum possible penalty of 20 years in prison and a $250,000 fine.
“White collar criminals may use sophisticated methods, but their crime is nothing more than stealing other people’s money,” McQuade said. “These defendants targeted and preyed upon victims and stole their life savings. Many of these victims are seniors who lack the resources or the time to recoup the loss.”
FBI Special Agent in Charge Foley stated: "These individuals engaged in an investment scheme that stole millions of dollars from hundreds of investors. The FBI is committed to stopping such predatory acts and holding criminals responsible."
Sentencing has been set for June 18, 2013. Bond was continued as to defendant Antonio Bravata. John Bravata’s detention was continued.
The case was prosecuted by Assistant United States Attorneys Frances Carlson and Karen Reynolds, as well as Special Assistant United States Attorney Jonathan Polish. SAUSA Polish was detailed to this case from the Chicago Region of the Securities and Exchange Commission. The case was investigated by the FBI and the SEC.
Five Individuals Indicted for Tax FraudRead the Press Release
PANAMA CITY, FLORIDA – Two federal grand jury indictments were unsealed today charging five individuals with using the personal identifying information of other individuals to file fraudulent tax returns. The indictments were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The first indictment charges two individuals: Versiah M. Taylor, 32, of Panama City, and Tracy L. Collier, 47, an inmate at the Florida Department of Corrections’ Lake Butler Reception & Medical Center. Taylor and Collier are charged in a forty-five count indictment with conspiring to defraud the government with respect to claims, filing false claims against the United States, wire fraud, and aggravated identity theft.
The indictment alleges that Taylor and Collier conspired to file false federal income tax returns with the Internal Revenue Service (IRS), claiming refunds of more than $503,273.00, knowing that they were not entitled to receive those funds. Collier, while incarcerated at Okaloosa Correctional Institution, obtained the names, dates of birth, and social security numbers of various inmates, often without the individual’s knowledge or authorization. According to the indictment, Collier provided the personal identifying information to Taylor, and Taylor then used the information to file false tax returns claiming fraudulent refunds. The false returns submitted to the IRS in this scheme included fabricated amounts of wages, names of false employers and financial institutions, and false amounts of interest income and Social Security income. As a result of the scheme, Taylor and Collier caused the United States Treasury to pay fraudulent income tax refunds by loading said refunds onto prepaid debit cards purchased in the Bay County area or onto prepaid debit cards mailed by various financial institutions to locations throughout the Bay County area.
The second indictment charges Anthony Q. Atkinson, 31, Anthony L. Smith, Jr., 25, and John Jerome Fagin, 30, all of the greater Panama City area. Atkinson, Smith and Fagin are charged in a ten count indictment with conspiring to defraud the government with respect to claims, filing false claims against the United States, wire fraud, and aggravated identity theft.
The indictment alleges that Atkinson, Smith, and Fagin conspired to file fraudulent federal income tax returns with the IRS, claiming refunds of more than $37,526.00. As part of the scheme, Smith provided personal identifying information to Atkinson, who would then file fraudulent tax returns using the false and stolen information. The indictment alleges that Fagin provided his own personal identifying information, as well as the addresses of other individuals to Smith and Atkinson to facilitate the filing of false tax returns. The false tax claims submitted in this scheme included fabricated amounts of Social Security income, taxable interest income, tax withholdings and names of financial institutions. As a result, Atkinson, Smith and Fagin caused the United States Treasury to pay fraudulent income tax refunds by loading refunds onto prepaid debit cards purchased in the Bay County area or onto prepaid debit cards mailed by financial institutions to locations throughout the Bay County area.
If convicted of the charges contained in these two indictments, the defendants face up to twenty years in prison, a fine of up to $250,000, up to three years of supervised release, restitution, criminal forfeiture, and a $100 special monetary assessment on each count of conviction. Additionally, each count of aggravated identity theft carries a potential minimum mandatory sentence of two years in prison, which must be served consecutively to any other sentence imposed.
The indictment results from an investigation conducted by agents of IRS Criminal Investigation and this case is being prosecuted by Assistant United States Attorney Kathryn Risinger as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters. U.S. Attorney Marsh commended the work of the Internal Revenue Service – Criminal Investigations whose investigations led to the indictments in these cases.
An indictment is merely a formal charge by a grand jury that a defendant has committed a violation of federal criminal law. All defendants are presumed innocent unless and until the government proves their guilt beyond a reasonable doubt to the satisfaction of a jury at trial.
Firearms and Explosives Charges Filed Against Rootstown ManRead the Press Release
A federal grand jury returned a three-count indictment charging Samuel Oaks, age 61, of Rootstown, Ohio, with improperly stored high explosives, possession of an unregistered firearm, and possession of a firearm with an obliterated serial number, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 of the indictment charges that on or about December 4, 2012, Oaks knowingly, improperly and illegally stored nine Dupont electronic detonators/blasting caps, at a Rootstown, Ohio, residence.
Counts 2 and 3 of the indictment charge that on or about December 19, 2012, Oaks possessed a FMJ, model M-11/Nine, 9mm submachine gun, which was not registered to him in the National Firearms Registration and Transfer Record, and which submachine gun had an obliterated serial number.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Final Defendant in Pot Trafficking Conspiracy Sentenced to Ten Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Antwane J. Rhodes, aka “Rho”, 34, formerly of Springfield, Ohio was sentenced in U.S. District Court today to 120 months in prison, fined $5,000 and ordered to forfeit cash, vehicles and jewelry for his leadership role in a major marijuana trafficking organization in the Columbus area.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Denise Rocawich, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Franklin County Sheriff Zach Scott and Columbus Police Chief Kimberley Jacobs announced the sentence imposed today by U.S. District Judge Michael H. Watson.
Rhodes pleaded guilty on September 25, 2012 to one count of conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and one count of money laundering.
According to court documents, the investigation into the organization began in 2007. Sources identified Rhodes as one of the leaders of a drug trafficking organization that included Springfield. Loads of marijuana were received from a variety of sources, sometimes via shipment to a warehouse on the west side of Columbus. Rhodes also received shipments of 100 – 200 pounds of marijuana delivered on a motorcycle trailer to his house.
“At its peak, the organization was receiving between 1,200 and 1,800 pounds of marijuana in a month,” U.S. Attorney Stewart said. “The organization was generating hundreds of thousands of dollars a year through the sale of illegal drugs.”
Evidence shows Rhodes laundered the money he was receiving from the sale of the marijuana by buying vehicles and custom jewelry, making deposits into bank accounts of a small company called T & J Investments of Ohio LTD and other means. Rhodes made trips to Las Vegas with his co-conspirators and gave each of them just under $10,000 cash to carry with them.
Rhodes was ordered to forfeit his interests in three vehicles, more than $27,000 in cash seized during execution of a search warrant and ten pieces of jewelry.
Four Springfield men and one other defendant from Columbus have already been sentenced for their roles in the conspiracy.
Marc Clark, 32, was sentenced on January 7, 2013 to 100 months in prison. Steve Blackmon, 33, was sentenced November 29, 2012 to 15 months in prison. Jayson Reed, 31, was sentenced on February 27, 2013 to 12 months and a day, Shawnte M. Lynn, 35, was sentenced on January 25, 2013 to 15 months in prison. Erik Neely, 34, of Columbus, was sentenced on January 25, 2013 to 18 months in prison.
Rhodes has been in custody since June 2012.
U.S. Attorney Stewart commended the cooperative long-term investigation by Columbus Police officers, Franklin County deputies and IRS agents, as well as Assistant U.S. Attorney Kevin Kelley, who represented the United States in this case.
Felon Indicted for Possessing A .45-caliber HandgunRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier this week charges a 31-year-old felon for possessing a .45-caliber handgun. The indictment, which was filed on March 19, 2013, charges Nathan Anderson, of Bloomington, with one count of being a felon in possession of a firearm. The indictment was unsealed following Anderson’s initial appearance in federal court on March 25, 2013.
The indictment alleges that on March 2, 2013, Anderson possessed the gun. Because he is a felon, Anderson is prohibited under federal law from possessing firearms or ammunition at any time. His prior Hennepin County convictions include theft (2001), terroristic threats (2001), third-degree burglary (2003), and second-degree assault (2005). Because these convictions constituted crimes of violence, Anderson is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.
This case is the result of an investigation by the Bloomington Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.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.
Federal, State and Local Agencies Arrest 10 in Cocaine, Crack Distribution RingRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a year-long undercover investigation resulted in 10 arrests in the Marksville and Alexandria areas on distribution of cocaine and crack cocaine charges.
Federal, state and local law enforcement officials seized more than $60,000, 5 kilograms of powder cocaine, 350 grams of crack cocaine, and numerous firearms over the course of the investigation. The defendants are charged with various counts of cocaine and crack cocaine distribution, possession with intent to distribute, conspiracy, and firearms offenses that took place in Avoylles and Rapides parishes between January 2012 and March 2013.
Those arrested are: Michael J. Wright, 27, Houston; Dontour D. Drakes, 37, Alexandria; Sedrick D. Porter, 36, Alexandria; Abraham Baylor III, 39, Alexandria; Earnest G. “Gucci” Miles III, 25, Alexandria; Terrace D. Winchester, 34, Alexandria; Brandon C. “Lanky B” Thomas, 31, Marksville; Leotis V. Perry, 36, Alexandria; Falon S. Maricle, 31, Marsksville; and Dennis Lee Bradford, 30, Cottonport.
The charges and arrests are part of the Safe Streets Task Force “Operation Double Down.” The FBI-Central Louisiana Gang Safe Streets Task Force; Alexandria Police Department; Avoyelles Parish Sheriff’s Office; Rapides Parish Sheriff’s Office; U.S. Marshall’s Service; Louisiana State Police; and Louisiana State Department of Probation and Parole, participate in the task force program and conducted the operation.
A federal grand jury returned the first “Operation Double Down” indictment March 20, 2013, charging the defendants on 16 counts related to the cocaine and crack cocaine distribution ring’s activities.
The defendants face a variety of federal and state charges. The penalties range from mandatory 10 years incarceration to life imprisonment. Initial appearance was held Tuesday before U.S. Magistrate Judge James D. Kirk. Detention hearings have been set for April 1.
“It took the combined effort of federal, state, and local law enforcement agencies to make these arrests happen,” Finley said. “I want to thank the Alexandria Police Department, Avoyelles and Rapides sheriff’s offices, the Louisiana State Police, the Louisiana State Department of Probation and Parole, the U.S. Marshals, and the FBI for their roles in removing these drugs from our streets.”“This operation will have a significant impact on the landscape of illegal drugs in Central Louisiana,” said Alexandria Police Chief Loren Lampert. “This investigation and its success serve as a perfect example of how federal, state and local law enforcement can and should cooperate in fighting crime. We are extremely pleased with the efforts of all agencies and the results of those efforts. We look forward to future cooperative efforts such as this to improve the quality of life in our community.”
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney James Cowles Jr. is prosecuting the case.Federal Prison Inmates Among Group Charged in Drug ConspiracyRead the Press Release
PHILADELPHIA - An indictment, filed today, charges eight people, including two federal prison inmates, with conspiracy to distribute 500 grams of methamphetamine, announced United States Attorney Zane David Memeger. The indictment alleges that federal inmates Jose Cardenas-Covarrubias and Donaciano Contreras-Monje, imprisoned at FCI McKean, initiated the sale of large amounts of methamphetamine to two law enforcement officers posing as Philadelphia drug dealers.
According to the indictment, defendant Silvestre Garcia-Andaya spoke with the undercover officers by telephone and negotiated a price for the delivery of large quantities of methamphetamine. Defendants Garcia-Andaya, Erika Garcia, and Alfredo Moralez-Bustos came to Philadelphia from California to meet with the “buyers” and discuss the delivery. On February 20, 2013, it is alleged that Garcia-Andaya and defendant Esau Zendejaz-Bustos delivered approximately 11 pounds of methamphetamine to one of the undercover officers and, the next day, another two pounds to the officer, accepting $10,000 as a partial payment. It is further alleged that on March 6, 2013, Garcia-Andaya met with defendants Rodolfo Luviano and Juan Antonio Lopez, who drove from Oklahoma to Philadelphia, to accept a delivery of methamphetamine.In addition to the conspiracy, Garcia-Andaya is charged with distributing 500 grams or more of methamphetamine and possession with intent to distribute; Zendejas-Bustos is charged with distributing 500 grams or more of methamphetamine, possession with intent to distribute cocaine, and possession with intent to distribute marijuana; Luviano and Lopez are also charged with distributing 500 grams of more of methamphetamine.
If convicted, each defendant faces a mandatory ten years in prison with a maximum possible sentence of life, a mandatory term of five years supervised release to lifetime supervised release, a fine of up to $10 million, and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney David L. Axelrod.
INFORMATION REGARDING THE DEFENDANTS
Silvestre Garcia-Andaya, 31, of Lynwood, CA
Erika Garcia, 25, of Lynwood, CA
Alfredo Moralez-Bustos, 30, of Fresno, CA
Esau Zendejas-Bustos, 26, of Lincoln University, PA
Jose Cardenas-Covarrubias, 29, FCI McKean
Donaciano Contreras-Monje, 37, FCI McKean
Rodolfo Luviano, 24, of Oklahoma City, OK
Juan Anthonio Lopez, 22, of Tulsa, OKClick here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Federal Grand Jury Indicts Four Men in Separate Bank RobberiesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted four men in connection to four separate bank robberies in North Alabama, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The four men are charged in three separate indictments filed in U.S. District Court. JOHN DAVID VANSTEENIS, 28, of Decatur, and JOSEPH MICHAEL BORDEN, 52, who was homeless, are charged with the Jan. 25 robbery of a Decatur branch of The People’s Bank. Vansteenis and Borden also face a charge of brandishing a firearm, a Glock Model 27 pistol, during the crime of violence.
CHRISTOPHER ALLAN COOPER, 33, of Kentucky, is charged with two bank robberies in Huntsville. He is charged with the Dec. 12 robbery of a Regions Bank branch on Memorial Parkway South, and with the Jan. 8 robbery of a Regions Bank branch on Drake Avenue SW.
CHRISTOPHER BRUCE, 35, of McCalla, also was indicted for two bank robberies. Bruce is charged with the Nov. 16 robbery of First Financial Bank on U.S. Highway 11 North in Vance, and with the Nov. 26 robbery of West Alabama Bank on Alabama Highway 5 in Woodstock.
The FBI investigated these cases, and the U.S. Attorney’s Office for the Northern District of Alabama is prosecuting them. The Vance and Woodstock Police Departments and the Bibb County Sheriff's Department assisted in the case involving Bruce. The Huntsville Police Department assisted in the case that led to the charges against Cooper, and the Hartselle and Decatur Police Departments assisted in the case that led to charges against Vansteenis and Borden.
The bank robbery charge carries a maximum sentence of 20 years in prison and a $250,000 fine. The charge of brandishing a firearm during a crime of violence carries a mandatory sentence of seven years in prison, to be served after completion of any other sentence imposed for the crime.
Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on March 27, 2013: Glenda Brickey, 27, of Ligonier, Indiana, is charged in a two count Indictment with possession of methamphetamine and possession with intent to distribute methamphetamine, both occurring on or about December 21, 2012. These charges were filed as a result of an investigation by the Drug Enforcement Administration, IMAGE Drug Task Force, comprised of Noble County Sheriff’s Department, Kendallville Police Department, Steuben County Sheriff’s Department, Auburn Police Department, and the DeKalb County Sheriff’s Department; Noble County Prosecuting Attorney’s Office; Indiana State Police, ISP ACE Team, and ISP Emergency Response Team; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Northeast Indiana SWAT; Ligonier Police Department; Fort Wayne Police Department, Internal Revenue Service, Indiana State Excise Police and FWPD Emergency Services Team. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Juan J. Sandoval, 45, of Fort Wayne, Indiana, is charged in a four count Indictment with distribution of methamphetamine on or about February 27, 2013, and March 12, 2013; domestic violent felon in possession of a firearm on or about March 21, 2013, and possession of a firearm not registered to him on or about March 21, 2013. This Indictment also seeks forfeiture of firearms and ammunition. These charges were filed as a result of an investigation by the Drug Enforcement Administration, IMAGE Drug Task Force, comprised of Noble County Sheriff’s Department, Kendallville Police Department, Steuben County Sheriff’s Department, Auburn Police Department, and the DeKalb County Sheriff’s Department; Noble County Prosecuting Attorney’s Office; Indiana State Police, ISP ACE Team, and ISP Emergency Response Team; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Northeast Indiana SWAT; Ligonier Police Department; Fort Wayne Police Department, Internal Revenue Service, Indiana State Excise Police and FWPD Emergency Services Team. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Javier Madrigal, 48, and Lizbeth Correa, 34, of Wawaka, Indiana. Madrigal is charged in
5 of 6 counts in the Indictment with distribution of methamphetamine on or about January 31, 2013, February 7, 2013, February 15, 2013, March 14, 2013 and March 21, 2013. Correa is charged in 2 of 6 counts in the Indictment with distribution of methamphetamine on or about March 21, 2013, and profiting from maintaining a drug involved premises from on or about January 31, 2013 to on or about March 21, 2013. This Indictment also seeks forfeiture. These charges were filed as a result of an investigation by the Drug Enforcement Administration, IMAGE Drug Task Force, comprised of Noble County Sheriff’s Department, Kendallville Police Department, Steuben County Sheriff’s Department, Auburn Police Department, and the DeKalb County Sheriff’s Department; Noble County Prosecuting Attorney’s Office; Indiana State Police, ISP ACE Team, and ISP Emergency Response Team; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Northeast Indiana SWAT; Ligonier Police Department; Fort Wayne Police Department, Internal Revenue Service, Indiana State Excise Police and FWPD Emergency Services Team. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Eagle Pass Man Enters Guilty Plea to Aiding and Abetting Former Maverick County Precinct 2 Commissioner in Bulk Cash Smuggling SchemeRead the Press Release
In Del Rio, 62-year-old Jose Luis Aguilar of Eagle Pass, TX, faces up to five years in federal prison after pleading guilty this morning to aiding and abetting bulk cash smuggling announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before United States District Judge Alia Moses, Aguilar admitted that on January 4, 2011, he and co-defendant, 28-year-old David Gelacio, brought a total of $13,000 in U.S. Currency from Mexico through the Eagle Pass Port of Entry without declaring it to federal authorities. According to the factual basis filed in the case, Aguilar was carrying $7,000; Gelacio, $6,000. Aguilar also admitted that the money was the proceeds from selling a Ford truck owned by former Maverick County Precinct 2 Commissioner and co-defendant Rodolfo Heredia to individuals associated with the Los Zetas Cartel in Piedras Negras, Mexico. At the behest of Heredia, Aguilar had sold the truck in Mexico. The factual basis further states that after selling the truck, Heredia did not want Aguilar to declare the money to law enforcement when he entered the United States. So, he sent Gelacio to assist Aguilar in transporting the money from Mexico into the United States. Aguilar admitted that he knew he was assisting Heredia in his efforts to smuggle the funds back into the United States without having to declare the funds to the appropriate authorities.
Aguilar and Gelacio have remained in custody since their arrest in October 2012. Sentencing for Aguilar has yet to be scheduled. On January 24, 2013, Gelacio pleaded guilty to the same charge. Gelacio, who faces up to five years in federal prison, is scheduled to be sentenced on July 8, 2013. Heredia is currently scheduled for jury selection on May 21, 2013.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
Defendant Jae Chul Shin Found GuiltyRead the Press Release
ALICIA A. G. LIMTIACO, United States Attorney for the Districts of Guam and CNMI, announced that a verdict was reached on Tuesday, March 26, 2013, after a two-week jury trial in the criminal case of U.S. v. Jae Chul Shin, Criminal Case No. 12-00041.
Defendant Shin, age 34, was found guilty of Importation of Methamphetamine Hydrochloride, in violation ofTitle 18, United States Code, § 2 and Title 21, United States Code, §§ 22, 952 and 960. The defendant used a courier to import 407 grams of methamphetamine worth approximately $250,000.
The defendant was remanded to the custody of the United States Marshal and will be held in jail until sentencing which is scheduled for July 8, 2013, at 1:30 P.M. in the District Court of Guam. Under federal law, the defendant faces a mandatory minimum of ten years imprisonment without parole and a maximum fine of four million dollars.
Assistant U.S. Attorney Karon V. Johnson prosecuted the case for the United States and was assisted by Special Agents from the Department of Homeland Security, Immigration and Customs Enforcement. Special credit is also given to Officer Shaun Kim of the Guam Police Department who acted as interpreter.
Cincinnati Construction Contractor Sentenced for Role in Bribery and Embezzlement SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – The owner and president of Sigma Capital, Inc. in Cincinnati, Samuel P. Mays, 62, was sentenced in U.S. District Court today to 51 months in prison followed by three years of supervised release for bribing a government official and stealing from his employees’ 401k funds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Hughes, Acting Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Elton Malone, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch, and L. Joe Rivers, Regional Director, U.S. Department of Labor, Employee Benefits Security Administration announced the sentence handed down today by Senior U.S. District Judge Sandra S. Beckwith.
A jury convicted Mays in September 2012 of one count each of bribery of a public official, conspiracy, theft or embezzlement from an employee pension plan, and making false statements.
The scheme involved Mays and another construction contractor, Paul McDonald, 70, of Pleasant Hill, California, and David Mersch, 61, the former Operations Officer for the Cincinnati offices of the U.S. Centers for Disease Control in Cincinnati.
According to trial testimony, Mersch, who lived in Florence, Kentucky accepted bribes from Mays and McDonald in the form of cash and home improvements with a value of at least $175,000 between 2005 and 2011. The jury also convicted Mays of deducting approximately $125,000 from his employees’ paychecks for contribution to their 401k plans, but never depositing the money.
“The nature of a bribery offense is difficult to quantify, because the victim is the public at large and the damage extends beyond the dollars exchanged,” Assistant U.S. Attorney Tim Mangan wrote in a memorandum filed with the court prior to sentencing. “This pattern of bribery undermines the government contracting process and destroys the presumed impartiality of federal contracting officers.”
McDonald pleaded guilty on November 9, 2011 to one count of bribery. He was sentenced on October 31, 2012 to serve five years of probation including 21 months of home confinement and pay a $5,000 fine. He was also disqualified from holding any office of honor, trust or profit and ordered to resign his employment with Entek Mechanical Corporation and to cooperate with the United States in seeking the surrender of Entek’s certification as a government contractor. Mersch pleaded guilty on July 19, 2011 to bribery and is serving 42 months in federal prison. Both testified against Mays during the trial.
“Mays victimized taxpayers and jeopardized his hard-working employees’ futures,” said Elton Malone, Special Agent in Charge of the Special Investigations Branch within the U.S. Department of Health and Human Services’ Office of Inspector General. “We will not tolerate conspiracy schemes and will continue to work tireless to punish such corruption.”
“Employer sponsored retirement plans serve a vital role in providing a financially secure retirement for America’s workers,” said L. Joe Rivers, Regional Director for the Cincinnati Regional Office of the Labor Department’s Employee Benefits Security Administration. “This case underscores EBSA’s commitment to protecting the assets of 401(k) and other employee benefit plans and punishing those who would divert these funds for their own enrichment.”
Stewart commended the cooperative investigation by FBI, HHS inspector general, and Department of Labor investigators, as well as Assistant U.S. Attorneys Timothy Mangan and Christy Muncy, who represented the United States in this case.
Mays will surrender to begin serving his prison sentence on a date to be set by the U.S. Marshals Service and the Bureau of Prisons.
Chief Money Launderer for National Drug Organization SentencedRead the Press Release
NORFOLK, Va. – Alano Christobo Blanco, 46, of Newport News, Va., was sentenced today to 235 months in prison, followed by 5 years of supervised release, for his participation in a complex drug trafficking organization operating between New York, California, and the Virginia Peninsula.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Mythili Raman, Acting Assistant Attorney General for the Criminal Division, made the announcement after sentencing by United States District Judge Mark S. Davis.
Blanco was found guilty by a federal jury on Nov. 7, 2012, and convicted of drug conspiracy, money laundering conspiracy, and interstate travel in aid of racketeering.
Blanco was charged, along with several co-defendants, in a superseding indictment returned on Aug. 15, 2012. According to court documents and evidence presented in court, suppliers of multi-kilogram quantities of illegal drugs in New York, California, Georgia, North Carolina and Texas distributed cocaine and marijuana to leaders of the long-running organization for further distribution on the Virginia Peninsula. Blanco was part of a sophisticated drug network that supplied the Thug Relations street gang, which was located primarily in the Aqueduct Apartments and Warwick Lawn Apartments in the Denbigh area of Newport News. From approximately 2004 until 2009, Blanco helped launder money from the drug sales in seemingly legitimate ventures, and served as one of several couriers who would transport kilograms of cocaine and large bulk cash payments between New York and the Virginia Peninsula.
This case was investigated by the FBI Safe Streets Task Force, the Virginia State Police, the Newport News Police Department, the Peninsula Narcotics Enforcement Task Force, and Homeland Security. Assistant United States Attorney Eric Hurt and Trial Attorney Louis Crisostomo of the Organized Crime and Gang Section in the Justice Department’s Criminal Division prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Caroline County Man Pleads Guilty to Stealing Property from the Goddard Space Flight CenterRead the Press Release
Stole Tools and Scaffolding Which He Sold at Pawn Shops in Baltimore, Anne Arundel and Queen Anne’s CountiesGreenbelt, Maryland – Brandon Scott Gauss, age 28, of Preston, Maryland pleaded guilty late yesterday to theft of government property from the Goddard Space Flight Center, part of the National Aeronautics and Space Administration (NASA).
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Inspector General Paul K. Martin, NASA Office of Inspector General.
According to his plea agreement, Gauss was a contract employee at NASA. As an engineering technician at the Goddard Space Flight Center, he had access to tools and other property NASA owned. From October 2011 through November 2012, Gauss stole tools and aluminum scaffolding belonging to the government, which he sold to pawn shops for cash. Gauss made over 60 visits to pawn shops throughout Maryland, including Baltimore, Anne Arundel and Queen Anne Counties, and received at least $16,974. The government has recovered some of the items, worth at least $29,736. Gauss admits that he owes the government at least $11,574.35, the money he received from selling the stolen materials the government has been unable to recover.
As part of his plea agreement, Gauss will be required to pay restitution of $11,574.35 to the U.S. government; $4,461 to Fast Cash Pawn Shop in Annapolis, Maryland; and to forfeit at least $29,412.89.
Gauss faces a maximum sentence of 10 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for July 2, 2013 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the NASA OIG, Office of Investigations for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Sujit Raman, who are prosecuting the case.
Cannon Ball Man Sentenced for Assaulting a Federal OfficerRead the Press Release
BISMARCK - U.S. Attorney Timothy Q. Purdon announced that on March 27, 2013, Raymond Blue Arm, 40, of Cannon Ball, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of assaulting a federal officer. Blue Arm pleaded guilty to the charge on Nov. 14, 2012.
Judge Hovland sentenced Blue Arm to 10 months in federal prison, to be followed by three years of supervised release. Blue Arm was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On July 4, 2012, at Prairie Knights Casino, Blue Arm was harassing patrons and was asked to leave, but he refused. When law enforcement officers arrived, Blue Arm used a back pack to hit one of the officers in the side.
The case was investigated by the Federal Bureau of Investigation and the Standing Rock Police Department, with the assistance of the Standing Rock Tribal Prosecutor's Office.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Bristol Man Sentenced to 11 Months in Prison for Violating Conditions of Supervised ReleaseRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that PATRICK J. WEGNER, 36, of Bristol, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 11 months of imprisonment for violating the conditions of his supervised release that followed a 2007 conviction for possession of child pornography.
According to court documents and statements made in court, on June 20, 2007, Judge Burns sentenced WEGNER to 46 months of imprisonment, followed by five years of supervised release, for possessing child pornography. WEGNER was released from the custody of the Bureau of Prisons in December 2009 and he began serving his term of supervised release. As special conditions of his supervised release, WEGNER was required to register as a sex offender and not to associate with any child under the age of 18 except in the presence of a responsible adult who is aware of the nature of his offense and who has been approved by the United States Probation Office.
On March 11, 2013, the U.S. Probation Office learned that WEGNER was residing with a woman who was babysitting two children, at the children’s home, while the children’s parents were away on vacation. The parents of the children were not aware that a registered sex offender was staying at their home, and WEGNER had not notified the U.S. Probation Office or the Connecticut State Police Sex Offender Registry of his new address.
Previously, on April 29, 2010, Judge Burns sentenced WEGNER to two months of imprisonment after he was found to have violated his supervised release by being in the presence of children without supervision on more than one occasion in February and March 2010, and by not being truthful when questioned by a U.S. Probation officer.
At the conclusion of today’s court proceeding, WEGNER was taken into the custody of the U.S. Marshals Service to begin serving his 11-month sentence.
This case was prosecuted by Assistant United States Attorney Edward Chang with the assistance of law student intern Lauren Biksacky.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Brighton Man Pleads Guilty to Sex Trafficking of MinorsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Thomas Cramer, 43, of Brighton, N.Y., pleaded guilty to sex trafficking of minors before U.S. District Judge Frank Geraci, Jr. The charge carries a mandatory minimum 10 years in prison, a maximum penalty of life, a fine of $250,000 or both.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that between April and December 2011, the defendant enticed, promoted and profited from the commercial sex activities of at least four females knowing, or in reckless disregard of the fact, that the females were under 18 years old. One incident involved the exchange of text messages between Cramer and a girl. The defendant enticed the girl by telling her she could make much more money performing commercial sex acts than she could working at a grocery store. Although the girl initially told Cramer she was older than 18, when she informed the defendant that she was 17 years old, Cramer was undeterred and continued to engage in salacious texting with the female.
Cramer placed advertisements on adult web sites regarding the availability of the minor females for commercial sex acts. The acts took place at hotels in the Rochester and Buffalo and in Cramer’s residence. Furthermore, customers were charged between $180 and $200 per hour to engage in sexual activities with the minor girls and that Cramer received a portion of those proceeds.
"Our Office along with our partners at all levels of government are aggressively fighting all forms of human trafficking, including the sex trafficking of minors," said U.S. Attorney Hochul. "Of particular concern is that many victims are being lured over the internet making them more vulnerable than ever to defendants like Thomas Cramer."
“Few crimes strike at our community the way sex trafficking does,” said James C. Spero, Special Agent in Charge of HSI Buffalo. “The sexual exploitation of children and young adults for financial gain demonstrates the extreme greed and depravity of sex traffickers. Our HSI special agents relentlessly pursue sexual predators to rescue their victims.”
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the New York State Police, under the direction of Major Mark Koss, and the Greece Police Department, under the direction of Todd K. Baxter.
Sentencing is scheduled for June 27, 2013 at 2:00 p.m. before Judge Geraci.
Blue Springs Couple, KCMO Residents among 20 Indicted for $814,000 PCP, Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Blue Springs husband and wife and 13 Kansas City, Mo., residents are among 20 defendants who have been indicted by a federal grand jury for their roles in an $814,000 conspiracy to distribute PCP, cocaine and crack cocaine.
Walter Sorrells, 36, and his wife Bettie Sorrells, 36, both of Blue Springs; Reginald Marchbanks, 31, his brother, Parish Marchbanks, 28, Keith Williams, 39, Joey Frazier, 31, William Chaney, 25, Ronald Washington, 68, John Hicks, 36, Michael Harbin, 27, Jarell Mayberry, 29, Antonio Robertson, 35, Charles Littlejohn, 42, Maurice McCrary, 24 or 25, and Brett Stanley, 40, all of Kansas City, Mo.; Joseph Marshall, 30, of Kansas City, Kan.; Stephon Williams, 29, of Lynwood, Calif.; Vincent Hart, 39, and Arin Lamar Taylor, 31, both of Fontana, Calif.; and Colette Douglas, 36, of Grand Prairie, Texas, were charged in a two-count indictment that was returned under seal by a federal grand jury on March 13, 2013. The indictment was unsealed and made public today upon the arrests and initial court appearances of most of the defendants.
The federal indictment alleges that each of the co-defendants participated in a conspiracy to distribute one kilogram or more of PCP, 500 grams or more of cocaine and 280 grams or more of crack cocaine between Jan. 1, 2007 and March 13, 2013.
According to the indictment, at least 10 law enforcement-controlled purchases of PCP, cocaine and crack cocaine were conducted with at least five of the defendants. At least 10 arrests or searches of co-conspirators occurred where PCP, cocaine or crack was recovered, the indictment says, and on multiple occasions during the conspiracy, defendants were found in possession of hundreds or thousands of dollars in cash, with no known legitimate income.
The indictment also alleges that each of the co-defendants participated in a money-laundering conspiracy during that time. They allegedly conducted financial transactions that involved the proceeds of illegal drug trafficking. Cash and other items obtained from drug sales were used to purchase additional drugs for sale, the indictment alleges, and those items were taken in payment of drug debts and exchanged for additional drugs, which promoted the drug-trafficking conspiracy.
The indictment contains a forfeiture allegation, which would require all of the co-defendants to forfeit to the government $814,000, which was received in exchange for the unlawful distribution of PCP, cocaine or crack cocaine. According to the indictment, that is based upon a conservative street price of $200 per ounce of PCP (3,099 ounces distributed), $1,000 per ounce of cocaine (129 ounces distributed) and $1,100 per ounce of crack cocaine (60 ounces distributed).
The forfeiture allegation would also require Reginald Marchbank to forfeit his 2002 BMW and $9,280, which was seized by Kansas City, Mo., police officers following his arrest. Littlejohn would be required to forfeit his 2003 Cadillac, which he used to distribute PCP. Williams would be required to forfeit $4,500 of drug proceeds. Stanley would be required to forfeit his residence, which the indictment says was used extensively during the conspiracy for the distribution and storage of controlled substances.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the FBI and IRS-Criminal Investigation.Baltimore Man Exiled to 15 Years in Prison on Gun and Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Joseph McKinsey Brown, age 29, of Baltimore, Maryland, today to 15 years in prison followed by five years of supervised release for conspiracy to distribute and possess with the intent to distribute cocaine, and possession of a firearm in furtherance of a crime of violence, in connection with the planned robbery of a drug dealer.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Brown’s guilty plea, Brown, Donte Wise, and another co-conspirator, met with a confidential source of information (CS) and with an ATF undercover officer posing as a drug courier to plan the robbery of a drug dealer. Wise and his co-conspirators agreed to commit the armed robbery in exchange for half of the stolen cocaine, expected to be as much as seven kilograms, which they would then distribute. On August 15, 2012, the CS picked up Brown and his co-conspirators and drove to a location in Baltimore to meet the undercover officer, who was to provide a minivan for the conspirators to use to commit the robbery. After arriving at the meet location, ATF agents approached to arrest the conspirators. All three fled, discarding their weapons as they ran, but were caught and arrested. Brown and Wise each threw away a loaded 9mm handgun, which were recovered, along with the .45 caliber handgun thrown on a roof by the third conspirator. A search also recovered black rubber gloves and a black balaclava from Wise and black rubber gloves and a black ski mask from Brown.
Donte Wise, age 30, of Baltimore, Maryland, was previously sentenced to 15 years in prison on the same charges.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted the case.
Austin Computer Parts/Accessories Store Owner Pleads Guilty in Tax CaseRead the Press Release
In Austin, Richard Culleton, President of First E-Commerce, Inc. d/b/a Discount Electronics, faces up to five years in federal prison as well as restitution after pleading guilty this afternoon to evading the payment of an estimated $110,000 in corporate income taxes announced United States Attorney Robert Pitman and IRS-Criminal Investigation Special Agent In Charge Steve McCullough.
A two-count Information filed last week alleges that Culleton knowingly caused the filing of the Discount Electronics’ 2006 and 2007 tax returns which underreported the taxable income. Culleton is currently on bond pending sentencing. Sentencing is scheduled for 9:00am on June 6, 2013, before U.S. District Judge Lee Yeakel.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.
Anchorage Couple sentenced for defrauding adopted child of over three quarters of a million dollars and filing a false tax returnRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that two Anchorage residents were sentenced on five counts of wire fraud and one count of filing a false income tax return.
Lori Wiley-Drones, 57, and Edward Drones, 62, were each sentenced today by U.S. District Court Judge Sharon L. Gleason, to 46 months in prison, to be followed by three years’ supervised release. The court ordered the defendants to pay a total of $829,417.74 in restitution to the victim.
According to Assistant U.S. Attorney Kim Sayers-Fay, who prosecuted the case, in 1996 the Drones became foster parents to a child who had experienced abuse. The Drones later adopted this child and then filed a lawsuit on his behalf charging the State of Alaska with failure to protect. The lawsuit resulted in establishment of a trust fund of over $830,000 for the child.
According to information presented in court, in March 2009, after the child’s professional trustee declined Lori Wiley-Drones’ demand that the child purchase the family’s home, the Drones began arranging the removal of the professional conservator in favor of Edward Drones, who falsely stated that he had not filed for bankruptcy in the past ten years. When Edward Drones assumed control of the child’s trust fund in December 2009, he assured the state court that he understood his obligation to keep the child’s property separate from his own and never to use the child’s property for his own benefit. However, upon gaining control of the trust account, Edward Drones immediately shared this control with his wife. The defendants admitted that over the next ten months, Lori Wiley-Drones and Edward Drones spent virtually all of the trust money. In one instance, Lori Wiley-Drones bought and renovated a house in Washington with the child’s trust money. The Drones used over $125,000 to pay credit card bills, $67,088 to purchase cars, and $38,000 to purchase jewelry. By December 2010, only $15.05 remained in the child’s trust account. The Drones filed a false income tax return by failing to report any of the more than $700,000 in misappropriated funds as income in 2010.
In sentencing the Drones, Judge Gleason observed that by decimating their adoptive son’s trust fund, the Drones destroyed his ability to trust people, which was an attribute all the more precious because of the trauma he had endured in early life. The judge noted that the sentence she imposed reflected that this fraud was particularly damaging: the victim’s biological father compromised his childhood, and then the Drones compromised his future – and for things like Coach Purses, fine jewelry, clothes and cars.
“This type of fraud is as damaging as it is heartbreaking. The sentence reflects the need to protect those who are our most vulnerable individuals and deter those who would trade on and take advantage of that vulnerability”, stated U.S. Attorney Karen L. Loeffler.
Kenneth J. Hines, Special Agent in Charge of the IRS Criminal Investigation Division in the Pacific Northwest, indicated he was pleased with the 46-month sentences for Edward and Lori Wiley-Drones and stated, “Being a parent is one of the most important things we will have the pleasure of doing in our lifetime. So when greed clouds people’s judgment to the point where they cause harm to their children, as a law enforcement officer it’s my duty and responsibility to vigorously pursue the investigation. This sentencing proves that in our community, crimes against the vulnerable will not go unpunished.”
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation Division for the investigation of this case.Al Shabaab Operative Sentenced in Manhattan Federal Court to 111 Months in Prison for Conspiring to Support and Receive Military-Type Training from A Foreign Terrorist OrganizationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MOHAMED IBRAHIM AHMED was sentenced today in Manhattan federal court to 111 months in prison for conspiring to provide material support to, and receive military-type training from, al Shabaab, a terrorist organization based in Somalia. The U.S. Department of State has designated al Shabaab as a Foreign Terrorist Organization. He was sentenced by U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Preet Bharara said: “Mohamed Ibrahim Ahmed traveled thousands of miles to align himself with al Shabaab, to aid their campaign of terror, and to learn their ‘ways of war.’ Today, his journey ends in prison and marks the latest victory in our constant effort to protect Americans from terrorism at home and around the world.”
According to the Superseding Information filed in Manhattan federal court, and prior court filings:
Al Shabaab has used violent means to destabilize the government of Somalia and to force the withdrawal of foreign troops from the country. The group has recruited foreign fighters to join in its “holy war” in Somalia, resulting in men from other countries, including the United States, traveling there to engage in violent jihad. Al Shabaab has also made numerous public statements demonstrating its intent to harm the United States.
In early 2009, AHMED left his home in Sweden and traveled to Somalia in order to support and receive military-type training from al Shabaab. While in Somalia, AHMED contributed approximately 3,000 Euros to al Shabaab, received training and instruction with respect to bomb-making and bomb-detonation, and purchased an AK-47 rifle, additional magazines, and two grenades. AHMED subsequently provided the rifle and magazines to an al Shabaab military commander.
In addition to the prison term, an order of judicial removal was signed, and AHMED will be deported upon completion of the sentence. He was also ordered to pay a mandatory $200 special assessment.
AHMED, 38, a native of Eritrea and a lawful resident of Sweden, was arrested in Nigeria in November 2009. On March 6, 2010, AHMED was transferred to the custody of the United States and subsequently transported to the Southern District of New York for prosecution.
AHMED pled guilty in June 2012 to one count of conspiracy to provide material support to a Foreign Terrorist Organization (al Shabaab) and one count of conspiracy to receive military-type training from a Foreign Terrorist Organization (al Shabaab).
Mr. Bharara praised the outstanding investigative work of the FBI’s Joint Terrorism Task Force based in Manhattan – which principally consists of special agents of the FBI and detectives of the New York City Police Department. He also expressed gratitude to the U.S. Department of Justice’s National Security Division, the Office of International Affairs, and the U.S. Department of State for their extraordinary assistance in the case. Mr. Bharara also thanked the Governments of Sweden and Nigeria for their assistance in this matter.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Benjamin Naftalis, John P. Cronan, and Rachel P. Kovner are in charge of the prosecution.
Akron Woman Charged with Tax ViolationsRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced that Kelly Prigmore was indicted on two counts of making and subscribing false federal income tax returns for the years 2006 and 2007.
According to court records, Prigmore, 42, resides in Akron, Ohio.
The indictment alleges that Prigmore worked as a self-employed home health care provider for a client who paid her for live-in 24 hour services. Prigmore allegedly filed joint personal income tax returns on which she omitted approximately $209,601 of her home health care service income.
For 2006, she reported total income of $8,600 and omitted additional income of approximately $96,806. For 2007, she reported total income of $8,990 and omitted additional income of approximately $112,795, according to the indictment.
If convicted, Prigmore’s sentence will be determined by the court after review of factors unique to this case, including her prior criminal record, if any, her role in the offenses, and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases they will be less than the maximum.
This case is being prosecuted by Special Assistant United States Attorney Perry D. Mastrocola and Assistant United States Attorney John Siegel, following an investigation by the Internal Revenue Service, Criminal Investigation, Akron, Ohio.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Abilene Man Sentenced to 20 Years in Federal Prison for Throwing Molotov Cocktails onto Roof of Convenience Store That Resulted in Injury to His Ex-WifeRead the Press Release
ABILENE, Texas —Kenneth Mark McWilliams, 54, was sentenced yesterday by U.S. District Judge Jorge A. Solis to 20 years in federal prison for throwing Molotov cocktails onto the roof of a convenience store in Abilene, that resulted in personal injury to his ex-wife when she ran out of the building and he shot and assaulted her. McWilliams, a resident of Abilene, has been in custody since his arrest following the incident in May 2010. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
McWilliams pleaded guilty in September 2012 to a superseding information charging one count of maliciously damaging a building by fire resulting in personal injury. According to documents filed in the case, on May 31, 2010, McWilliams went to Allsup’s Convenience Store, located on Ambler Avenue in Abilene, where his ex-wife was working, and parked his vehicle at the back of the store. Armed with Molotov cocktails, McWilliams lit two of them and threw both of them on the store’s roof. They ignited and started a fire on the roof that resulted in significant damage to the building.
McWilliams waited at the rear corner of the building until his ex-wife and another female employee left the burning building. When he saw his ex-wife, McWilliams fired one round from a .12 gauge shotgun at her, striking her. Both women ran and McWilliams caught up to his ex-wife and held her against her will, used a stun gun to shock her and tried to tie her with a rope. When officers with the Abilene Police Department arrived at the store, they saw McWilliams assaulting her. They subdued and restrained McWilliams.
McWilliams had several Molotov cocktails in his vehicle, and during a search of his residence, law enforcement found not only plastic and metal gasoline containers, but a diagram that indicated a plan that McWilliams would use to carry out his assault on the convenience store, his ex-wife and others who may have been present.
The case was investigated by the Abilene Police Department, the Abilene Fire Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
26 March 2013
Wisconsin Man Charged with Taking Part in Cyber-Attack on Koch Industries in WichitaRead the Press Release
WICHITA, KAN. – A Wisconsin man has been charged with taking part in a cyber-attack on Koch Industries in Wichita that was organized by a group called Anonymous, U.S. Attorney Barry Grissom said today.
Eric J. Rosol, 37, Black Creek, Wis., is charged with one count of conspiracy to damage a protected computer and one count of damaging a protected computer. The indictment alleges the following:
In February 2011, a loosely organized group of computer hackers called Anonymous began using Internet Relay Chat (IRC) channels to advertise a dedicated denial of service attack against Koch industries and seeking participants to the attack. Such an attack aims at making a computer resource unavailable to users by saturating the target computer with large numbers of external communication requests. If successful, the attack causes the target computer to be unable to respond or to respond so slowly as to be effectively unavailable to users.
The attack was to be undertaken using a tool known as a “Low Orbit Ion Cannon” that could send a high volume of repeated requests to Koch Web sites.
On Feb. 27, 2011, Anonymous told conspirators to use the Low Orbit Ion Cannon to attack a Koch Industries Web site, “quiltednorthern.com.”
On Feb. 28, 2011, Anonymous told conspirators to attach a Koch Industries Web site, “Kochind.com.” Rosol and others launched Low Orbit Ion Cannon attacks on “Kochind.com.”
As a result of the attack, the Web site “Kochind.com” crashed and was unavailable for legitimate traffic.
If convicted, the defendant faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER INDICTMENTS
Maurice Kariuki Gita Waweru, 36, a citizen of Kenya, is charged two counts of failing to depart the United States as ordered and two counts of forcibly resisting agents of Homeland Security. The crimes are alleged to have occurred in January 2013 in Sedgwick County.
If convicted, he faces a maximum penalty of four years in federal prison without parole and a fine up to $250,000 on each count of failing to depart the country as ordered, and a maximum penalty of eight years and a fine up to $250,000 on each count of forcibly resisting. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Rigoberto Navarrete-Pena, 33, a citizen of Mexico, is charged with one count of unlawful possession of a firearm by an illegal alien, one count of possessing a stolen firearm, one count of unlawful possession of a firearm by a user of controlled substances and one count of possession of methamphetamine. The crimes are alleged to have occurred March 19, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison without parole and a fine up to $250,000 both on the counts of unlawful possession of a firearm by an alien and possession of a stolen firearm. He faces a maximum penalty of a year in prison and a fine up to $1,000 on the misdemeanor methamphetamine charge. The Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Marcus Sanders, 30, Wichita, Kan., and Christopher Williams, 30, Wichita, Kan., are charged with one count of possession with intent to distribute crack cocaine. In addition, Sanders is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Aug. 2, 2012, in Sedgwick County, Kan.
Upon conviction the crimes carry the following penalties: Possession with intent to distribute crack: Not less than five and not more than forty years and a fine up to $2 million.
Unlawful possession of a firearm in furtherance of drug trafficking:Not less than five years and a fine up to $250,000.The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
William P. Cadle, 49, DeKalb, Texas, is charged with one count of making false statements to a government agency, four counts of loan fraud, and one count of criminal conversion of mortgaged property. The crimes are alleged to have occurred at various times during 2008 through 2012 in Montgomery County, Kan.
The indictment alleges he made false statements in order to qualify for a Farmer Service Agency operating loan and that he overvalued property in order to defraud the First National Bank.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000 on the charge of making false statements to the government; a maximum penalty of 30 years and a fine up to $1 million on each count of loan fraud; and a maximum penalty of five years and a fine up to $250,000 on the count of criminal conversion of mortgaged property. The U.S. Department of Agriculture investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Leonel Vazquez-Juarez, 40, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found March 8, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison without parole and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Edgar Juarez-Perez, 25, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found March 8, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison without parole and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Paul David Lieder, 39, Hillsboro, Kan., is charged with one count of Social Security disability fraud. The crime is alleged to have occurred at various times from November 2008 to August 2012 in Marion County, Kan.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Social Security Administration - Office of Inspector General investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
L.T. Baker, 54, Wichita, Kan., is charged with is charged with one count of Social Security disability fraud. The crime is alleged to have occurred at various times from 2000 to September 2012 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Social Security Administration - Office of Inspector General investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Curtis Profit, 31, Wichita, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Jan. 24, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Weiser Man Sentenced for Conspiracy to Traffic Meth in IdahoRead the Press Release
BOISE – Dawson Lee Moore, 60, of Weiser, was sentenced today in United States District Court to 36 months in prison followed by five years of supervised release for conspiracy to possess with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Dawson appeared today before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. He pleaded guilty to the charge on January 4. Dawson is the twelfth defendant sentenced in the case.
According to court documents, Dawson admitted that from early November 2011 through May 16, 2012, he conspired with others, including co-defendants, to distribute a total of approximately 11 pounds of methamphetamine in Canyon, Payette and Washington counties in Idaho.
Sentenced in February 2013 to serve federal prison sentences were co-defendants Benjamine L. Vertner, of Ontario, Oregon, to 138 months; Patric Campbell, of Boise, to 124 months; Kristopher Hensley, of Weiser, to 51 months; Johnny A. Tambunga, of Weiser, to 47 months; Jacob James Clevenger, of Weiser, to 188 months; Mario Martinez, Jr., of Greenleaf, Idaho, to 57 months; and Fabian Jordano Beltran, of Weiser, to 36 months.
Three co-defendants await sentencing following their January 22 conviction for conspiracy to distribute methamphetamine. Michael Dennis Morris, Jim Allen Loveland, and Jesus Guadalupe Sanchez a/k/a Jose Salazar, a Mexican national, who was also convicted of possession of methamphetamine with intent to distribute, are scheduled to be sentenced on April 8.
The case was investigated by the Idaho State Police.
Waynesboro, Georgia Tax Preparer Indicted for Preparing False Tax ReturnsRead the Press Release
AUGUSTA, GA: Carlos Newton, 43, from Waynesboro, Georgia, was indicted by a federal grand jury sitting in Savannah earlier this month for his role in the preparation of numerous false and fraudulent federal tax returns. Newton was arraigned on his federal charges yesterday before U.S. Magistrate Judge W. Leon Barfield.
According to allegations within the indictment, Newton held himself out as an income tax preparer for hire from 2009 through 2011. During this time, Newton put fictitious businesses, fictitious income, and fictitious expenses on federal income tax forms, which fraudulently qualified some of his clients for refunds through the earned income tax credit. Newton would then allegedly take a cut of the refunds fraudulently received.
The indictment charges Newton with 22 separate counts of preparing false tax returns. If convicted, Newton faces a maximum statutory penalty of 3 years in prison and a $250,000 fine on each count. An indictment is only an accusation and is not evidence of guilt. The Defendant is entitled to a fair trial, during which it will be the Government’s burden to prove the Defendants’ guilt beyond a reasonable doubt.
Special Agent Roger M. Garland of IRS Criminal Investigations conducted the investigation which led to the indictment. This case is being prosecuted by Assistant United States Attorney Lamont A. Belk. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Waltham Police Officer Arrested on Child Pornography ChargesRead the Press Release
BOSTON – A Waltham police officer was charged today with sending and receiving child pornography.
Paul Manganelli, 46, of Waltham, was charged in a criminal complaint with receipt of child pornography. The statute provides for a mandatory minimum sentence of five years and up to 20 years in prison, followed by a lifetime of supervised release and a $250,000 fine. At an initial appearance this afternoon, Chief Magistrate Judge Leo T. Sorokin ordered Manganelli detained until March 28, 2013 when he will return to court for a detention hearing.
According to court documents, agents learned that Manganelli, using a Yahoo! email address, had been sending and receiving images containing child pornography from his home in Waltham to individuals outside of Massachusetts. On March 25, 2013, a search warrant was executed at Manganelli’s home, during which Manganelli admitted possessing, receiving and distributing child pornography via email. Manganelli further identified images of child pornography as being photos he sent and received.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit.Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
This case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint affidavit are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Utah Man Sentenced to Prison for Transportation of Another with Intent to Engage in Illegal Sexual ActivityRead the Press Release
TUCSON – On March 25, 2013, Jordan Munah Yow Choy Anthony, 21, of Pleasant Grove, Utah, was sentenced by U.S. District Judge Raner C. Collins to four years in the Bureau of Prisons. Following incarceration, Anthony will be on lifetime supervision with sex offender conditions, including registering as a sex offender. Anthony pleaded guilty on Nov. 2, 2012, to transportation of another with intent to engage in illegal sexual activity.
From March 14-18, 2011, in Arizona, and elsewhere, Anthony used the internet and a cellular phone to communicate with a minor in Arizona, who he knew to be 14 years old. In December 2010, Anthony sent an e-mail to the minor about plans to pick her up and drive to Florida. On March 14, 2011, Anthony traveled from his hometown in Pleasant Grove, Utah, to Arizona, to pick up the minor at her residence. He traveled with the minor through New Mexico and into Galveston, Texas intent on continuing to Florida. On March 18, 2011, they were found in Galveston and Anthony was arrested by local police officers.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Pima County Sheriff’s Department, and the Galveston, Texas, Police Department. The prosecution is being handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-11-1387-TUC-RCC
RELEASE NUMBER: 2013-023_AnthonyFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/