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Monday 4 February 2013
Colorado Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that Gary Hassell, age 48, of Colorado Springs, Colorado appeared before U.S. Magistrate Judge Mark A. Moreno and pled guilty to a Superseding Information that charged him with Failure to Pay Child Support Obligations. Hassell was convicted of that offense and sentenced on February 1, 2013 to probation. He is also to repay the outstanding child support in the amount of $18,452.63.
Hassell was indicted for Failure to Pay Legal Child Support by a federal grand jury on January 10, 2012. The charges stem from an incident occurring from on or about April 1, 1999, and continuing to the present. Hassell, while residing in a different state than his minor child, willfully and unlawfully failed to pay a past due child support obligation, as ordered by the Sixth Judicial Circuit, Lyman County, South Dakota. As of August 31, 2011, Hassell had an outstanding child support obligation in the amount of $18, 452.63.
The investigation was conducted by the Office of the Inspector General and Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Brimfield Man Pleads Guilty to Mortgage FraudRead the Press Release
BOSTON - A former Brimfield man was convicted today in U.S. District Court in Springfield of falsifying information on a loan application.
Jeffrey Dodge, 53, pleaded guilty before U.S. District Judge Michael A. Ponsor to bank fraud and false statement on a loan application.
Between June 2006 and November 2006, Dodge supplied false information and false documents to Bank of America while applying for a government-guaranteed mortgage loan. Dodge falsely stated that he had not been foreclosed upon when in fact he had, just months earlier, after defaulting on another government mortgage loan.
Sentencing is scheduled for May 14, 2013. The maximum sentence under the statutes is 30 years in prison, followed by five years of supervised release and a $1 million fine on each count.
The case was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorneys Alex J. Grant and Michelle L. Dineen Jerrett of Ortiz's Springfield Branch Unit.
Berlin Man Sentenced to 8 Years on Child Pornography OffensesRead the Press Release
CONCORD, N.H. – George McAlpin, 34, of Berlin, was sentenced in United States District Court for the District of New Hampshire to 8 years in federal prison and 15 years of supervised release after pleading guilty to transportation and possession of child pornography, announced United States Attorney John P. Kacavas.
In May of 2010, law enforcement agents in Chicago, IL, conducted an investigation into the illegal trafficking of child pornography. Information forwarded to the Federal Bureau of Investigation indicated that images of child pornography had been sent to the defendant’s email account. McAlpin was interviewed by agents of the FBI, and admitted to knowingly possessing and transmitting images of child pornography via computer. A search of the defendant’s computer revealed thousands of images and numerous videos depicting the sexual assaults of children.
McAlpin will be required to register as a sex offender in any state in which he lives or works following his release from prison.
This case was investigated by the Federal Bureau of Investigation, the Berlin Police Department and the Internet Crimes Against Children Task Force. The case was prosecuted by United States Attorney John P. Kacavas and Assistant United States Attorney Helen White Fitzgibbon, the U.S. Attorney’s coordinator for Project Safe Childhood.
Project Safe Childhood is a nationwide initiative of the United States Department of Justice aimed at combating the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Beaver Dam Woman Who Defrauded Social Security Administration Sentenced to 3 Months Incarceration and Orders to Pay $67,683 in RestitutionRead the Press Release
United States Attorney James L. Santelle announced that on February 1, 2013, Sara Livingston (age: 42) of Beaver Dam was sentenced to serve 3 months of incarceration and ordered to pay $67, 683 in restitution to the Social Security Administration. Livingston had previously pled guilty to theft of government funds and making false statements to the Social Security Administration (SSA).
In February 2008, Livingston applied for and received Social Security Disability benefits based on false information. Livingston failed to inform the SSA that she was employed by a Beaver Dam chiropractic clinic and earning income above allowable limits. Additionally, in September 2008, Livingston started a home childcare business and earned substantial income while still collecting Social Security disability benefits.
The Inspector General’s Office for the Social Security Administration began their investigation in September 2011 after they received an anonymous tip. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.
Arizona Man Sentenced for Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Arizona man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on January 29, 2013 by Chief U.S. District Judge Jeffrey L. Viken. Ronald Eugene Stocker, age 73, was sentenced to time served, 2 years' supervised release and a $100 special assessment to the Victim Assistance Fund.
The charge relates to Stocker conspiring with another person to distribute 50 grams or more of methamphetamine in the District of South Dakota and elsewhere in 2011 and 2012. Stocker pleaded guilty to the charge on September 6, 2012.
This case was investigated by the Drug Enforcement Administration and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Apple Valley Woman Pleads Guilty to Defrauding A Home Health Care Company and MedicaRead the Press Release
MINNEAPOLIS—Earlier today in federal court, an Apple Valley woman pleaded guilty to defrauding both her employer and Medica. Lori Jo Mueller, age 48, pleaded guilty to one count of wire fraud and one count of health care fraud in connection to the crime. Mueller, who was charged on January 9, 2013, entered her plea before United States District Court Judge David S. Doty. In her plea agreement, Mueller admitted that from June of 2006 through June of 2012, she embezzled approximately $840,000 from Edelweiss Home Health Care, using the funds for her personal use.
Mueller began working for Edelweiss, located in Maple Grove, in 2002, and was ultimately promoted to the position of vice president of operations. In that capacity, she was responsible for the review and payment of corporate invoices, bookkeeping, and other financial matters. Mueller admitted using her access to the corporate checking account to issue payments to herself. She also concealed her actions from the company owners and made misrepresentations concerning the company’s financial state.
In addition, from March of 2010 through June of 2012, Mueller defrauded Medica, a non-profit corporation that provides health insurance products to individuals and families. She submitted claims to various insurers, seeking reimbursement for services provided by Edelweiss nursing staff. In some instances, Mueller double-billed by allowing claims for the same services to multiple insurance providers. For example, Mueller allowed both Minnesota Medicaid and Medica to be billed for identical services provided to one client. The particular double-billing resulted in a double-payment to Edelweiss with Medicaid being the proper payer and Medica being the overpayer. As a result of this criminal behavior, Mueller caused more than $631,000 in fraudulent proceeds to be paid by Medica.
For her crimes, Mueller faces a potential maximum penalty of 30 years in federal prison for wire fraud and ten years for health care fraud. Judge Doty will determine her sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services-Office of Inspector General (“DHHS-OIG”). It is being prosecuted by Assistant U.S. Attorney David M. Genrich.
The U.S. Attorney’s Office participates in a task force with the Medicaid Fraud Control Unit at the Minnesota Attorney General’s Office that focuses on home health care fraud trends. The task force includes the DHHS-OIG, the FBI, the Internal Revenue Service, and other federal, state, and local law enforcement partners.
As a result of federal convictions for health care fraud, defendants are excluded from participating in federal health benefit programs, including Medicare and Medicaid. Exclusion determinations are made by the U.S. Department of Health and Human Services. Nationwide, more than 3,000 individuals were excluded from program participation in Fiscal Year 2010 based upon criminal convictions or patient abuse or neglect, license revocations, or other factors.
For more information, visit http://www.stopmedicarefraud.gov/or http://www.stopfraud.gov/protect-health.html.Alabama Woman Pleads Guilty in a Stolen Identity Refund Fraud SchemeRead the Press Release
Larreka Jackson pleaded guilty today in the Middle District of Alabama to her role in a multi-million dollar conspiracy to use stolen identities to obtain tax refunds, the Justice Department and the Internal Revenue Service (IRS) announced today.
On Aug. 15, 2012, a federal grand jury in Montgomery, Ala., returned a 25-count indictment charging Larreka Jackson for conspiring to file false tax returns using stolen identities, filing false claims, wire fraud and aggravated identity theft. According to the indictment, Jackson operated a tax preparation business called It’s Tax Time in Montgomery. Jackson used It’s Tax Time as a front to file false tax returns using stolen identities. Jackson unlawfully obtained the names and Social Security numbers of actual persons and filed false tax returns using those names. Jackson directed the fraudulent tax refund to bank accounts controlled by her and her co-conspirators.
The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Accountant Enters Guilty PleaRead the Press Release
PITTSBURGH - An accountant has entered a guilty plea in Pittsburgh to charges of conspiracy and violating federal tax laws, United States Attorney David J. Hickton announced today.
Martin R. Bujaky, 63, of Gibsonia, Pa., entered a guilty plea to six counts before United States District Judge Terrence F. McVerry.
According to evidence presented to the Court by Assistant United States Attorney Margaret E. Picking, between approximately 2000 and 2007, Bujaky, an accountant, conspired with others to harbor out-of-status aliens employed in the hotel housekeeping industry in the Pittsburgh area, as well as Cleveland, Columbus, and Cincinnati, Ohio, by knowingly preparing false tax returns on behalf of their employers, which failed to report their wages as income. Bujaky assisted in the preparation and presentation of false quarterly tax returns for portions of 2005 and 2006 for B&M Best Consulting Co. by understating the size of the payroll and the employment taxes due to the Internal Revenue Service. These false returns accounted for approximately $3 million in unreported wages. U.S. Attorney Hickton stated that the entire scheme, over the course of seven years, resulted in a tax loss of approximately $3.7 million.
The law provides for a maximum total sentence of 23 years in prison, a fine of $1.5 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation, Department of Homeland Security- Homeland Security Investigations and U.S. Department of Labor conducted the investigation that led to the prosecution of Bujaky.
Friday 1 February 2013
Westminster Man Is Sentenced to 72 Months in Prison for Orchestrating A $1.7 Million Real Estate SchemeRead the Press Release
DENVER – Steven J. Mascarenas, 53, of Westminster, Colorado, was sentenced recently by U.S. District Court Judge Robert E. Blackburn to serve 72 months in federal prison for wire fraud, making a false statement to a pretrial services officer, and escape, U.S. Attorney John Walsh, Denver FBI Special Agent in Charge James Yacone and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Mascarenas was ordered to spend 3 years on supervised release after he serves his term of imprisonment. Judge Blackburn also ordered Mascarenas to pay restitution totaling $1,776,152.21. Mascarenas will surrender to the Bureau of Prisons once a facility is designated.
Steven Mascarenas was indicted on April 22, 2010 along with co-defendants Kathy Mascarenas (wife of Steven) and Katrina Roberts. He pled guilty on July 3, 2012 before Judge Blackburn. Katrina Roberts pled guilty and was sentenced to 20 months in prison on July 27, 2012. Kathy Mascarenas pled guilty and was sentenced to 24 months in prison on November 6, 2012.
According to court documents, in 2004, Defendant Steven J. Mascarenas, then an attorney and licensed real estate broker, orchestrated the purchase and resale of residential properties in “The Broadlands”, a subdivision in Broomfield, Colorado. He arranged to have individuals serve as “credit buyers” to obtain loans, purchase the properties, and resell them shortly thereafter at inflated prices to other “credit buyers” in his select group. He concealed from the lenders that these “credit buyers” were only acting at his direction and were being compensated after the closings for their participation in having obtained the loans and purchased the properties.
Mascarenas had Roberts prepare appraisal reports in which she fraudulently inflated the fair market values of the properties by $100,000 to $325,000. To make the inflated values in all of her reports appear legitimate, she falsely represented that the purchases, which were actually sales at market value, were “distressed” sales or “quick” sales below market value.
Then, based on the fraudulent appraisals, Steven Mascarenas set the prices for the resales far beyond their true market values, and arranged for the buyers to obtain 100% financing for them.
To ensure that the desired funding would be approved for the buyers for both the purchases and the resales, Steven Mascarenas caused false information about their qualifications to be incorporated into their loan applications to enable them to qualify for the loans.
He caused the proceeds from the second sales to be directed to entities of his choice.
Kathy Mascarenas conducted financial transactions as necessary to facilitate, perpetuate, and conceal the fraud.
All of the loans went into default, and the loss to the lenders was approximately $1,776,162.21.
While out on bond in the Fall of 2011, Mascarenas repeatedly lied to his supervising pretrial services officer, telling him that he was employed making sandwiches at a local Quizno’s restaurant. In fact, he was managing the store under the assumed name of “Steven Jay”, in violation of the conditions of his bond.
In June of 2011, as a condition of Steven’s bond, he was required to reside in a halfway house and he was not permitted to leave the facility without permission. Hours before he was to be taken to a prison facility, he fled. An arrest warrant was issued, and on December 4, 2011, Steven was arrested by the Lakewood Police department at a motel in Lakewood, Colorado.
“Mortgage fraud harms everyone involved in buying a home – buyers, appraisers, real estate agents, and bankers,” said U.S. Attorney John Walsh. “Lying on mortgage applications is a fraud, and a federal criminal felony. As the financial crisis of 2007 and 2008 showed us, following the rules in real estate transactions matters – and those who don’t, face time in federal prison.”
“Mortgage fraud has had a significant impact in Colorado,” said Denver FBI Special Agent in Charge James Yacone. “Mascarenas was an attorney and licensed realtor who used his professional license to instill trust in others. His conviction and recent sentencing sends a clear message that using positions of trust to commit fraud will not be tolerated.”
“Mortgage fraud erodes our economy, and threatens the financial health of the communities in which we live; this sentence reminds us there are consequences for committing such fraud," said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
This case was investigated by the Federal Bureau of Investigation and the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Linda Kaufman and James Allison.
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Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Phillip Ramos, II, 25, of East Chicago, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of possession with the intent to distribute cocaine.Sentencing has been set for 4/23/13.These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney David Nozick.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Francisco Ramirez, 50, of East Chicago, Indiana, a defendant in the case US v Lozano et al., was sentenced by Chief Judge Philip Simon to 5 months imprisonment, $4,108.50 in restitution, and 1 year of supervised release, to include 5 months of home detention, after pleading guilty to the felony offense of receipt of a bribe by an agent of a local government receiving Federal Funds.Ramirez was the Treasurer of the School City of East Chicago.According to documents filed in this case, the scheme provided that Gerardo Lozano, who operated Greentree Builders, perform free home improvement work at Ramirez’s residence in return for contracts and payments from the School City to Greentree Builders.Ramirez created the work and made sure that the School City could pay for it. In the end, it cost the School City more than $173,000.Ramirez handled almost all of the paperwork, including signing the payment claim forms. The agreement also called for Lozano to overbill the School City. This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Gary Bell.
James Reynolds, Jr., 46, of Lafayette, Indiana, was sentenced by Senior District Judge Rudy Lozano to 30 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of making false statements in the purchase of a firearm.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Steven Moten, 53, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 60 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of crack cocaine.According to documents filed in this case, Moten has previous convictions for murder in 1977 and dealing cocaine in 2002.This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Fort Wayne, Indiana- The United States Attorney’s Office announced the following activity:
DISPOSITION:
Roberto Villa, 38, of Milford, Indiana, was sentenced by District Judge Theresa Springmann to 48 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Villa has a prior conviction for dealing cocaine.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Two Omaha Men Found Guilty of Conspiracy to Distribute Crack CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that after a jury trial which began January 22, 2013, Guy E. Allen and Christopher Mallett were found guilty of conspiracy to distribute crack cocaine. Several crack users testified about the defendants’ distribution in the near south area of Lincoln. The jury also heard evidence of several drug purchases made by undercover Lincoln Police officers. Lincoln Police also seized crack from Guy Allen and Terrell Tyler during the investigation. The conspiracy started in the fall of 2009 and lasted until at least the arrest of Allen, June 15, 2011.
This case was investigated by the Lincoln Police Department.
Texas Man Charged with Mailing Threatening CommunicationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Texas man was indicted by a federal grand jury for Mailing Threatening Communications.
Carlos Kidd, age 33, was indicted in the United States District Court for the District of North Dakota on November 6, 2012, for mailing threatening letters to a federal judge in North Dakota. He appeared before U.S. Magistrate Judge Karen Klein in Bismarck, North Dakota on January 24, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine. The charge is merely an accusation and Kidd is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman is prosecuting the case. Kidd was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Tampa Man Charged with Multiple Child Pornography OffensesRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces today the filing of a criminal complaint charging Michael Alan Klevene (61, Tampa) with transportation, receipt, and possession of child pornography. If convicted, Klevene faces a mandatory minimum of 5 years, up to 20 years in federal prison for the transportation and receipt charges, and up to 10 years in federal prison on the possession charge.
The complaint alleges that Klevene traded child pornography with others on the Internet and admitted to collecting images and videos depicting child pornography for more than 20 years. On February 1, 2013, a federal search warrant was executed at Klevene's residence in Tampa. Pursuant to the search, law enforcement seized computers, thumb drives, an external hard drive, and other media that Klevene admitted belonged to him. A preview of Klevene's desktop computer and thumb drives revealed that they contained hundreds of images depicting child pornography. During an interview, Klevene told law enforcement that he posted non-pornographic images of children on the Internet in order to obtain more child pornography. A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Florida Department of Law Enforcement (FDLE) and the Tampa Police Department. It will be prosecuted by Assistant United States Jennifer L. Peresie.
It is another case 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."
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Tallahassee Tax Preparer Indicted for Tax Fraud and Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Monique Shevette Kimble, 41, of Tallahassee, has been indicted for preparing false income tax returns, filing false claims against the government, and identity theft. The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
The 13-count indictment alleges that between February and April 2009, Kimble, the owner- operator of Speedie Tax Service in Tallahassee, prepared federal income tax returns seeking refunds based upon false claims for first-time home buyer and education tax credits. Kimble is also alleged to have used W-2 forms to file fraudulent claims for tax refunds, falsely reporting that two taxpayers had received income from a temporary employment agency where Kimble knew the taxpayers had never worked. The indictment charges that Kimble unlawfully used the name and social security number of one of these taxpayers in connection with the falsified W-2 return.
Kimble is scheduled for trial on April 1, 2013 before Judge Robert L. Hinkle in Tallahassee, Florida.
- If convicted, Kimble faces a maximum of five years in prison on each of the charged offenses.
- U.S. Attorney Marsh praised the work of the Internal Revenue Service, whose investigation led to the indictment in the case.
- The case is being prosecuted 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.
The case is being prosecuted by Assistant U.S. Attorney Eric K. Mountin.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Social Networking Company to Pay $800,000 for Collecting Personal Information from MinorsRead the Press Release
The company that operates Path, an online social networking application, agreed to pay an $800,000 penalty to settle charges that it violated the Federal Trade Commission (FTC) Act and the Children’s Online Privacy Protection Rule, the Justice Department announced today.
In a complaint filed on Jan. 31, 2013, the United States alleged that San Francisco-based Path Inc. violated the Children’s Online Privacy Protection Rule by collecting personal information from children under the age of 13 without obtaining parental consent. According to the complaint, in over 3,000 instances, Path collected personal information from the address books in children’s mobile devices, including the names, addresses, phone numbers and email addresses of the child’s contacts. Path also collected personal information from children during the registration process and by allowing them to post content online.
“The rules established by the Children’s Online Privacy Protection Act play an important role in keeping kids safe online,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division. “Companies that market to children must respect their privacy by getting parental consent before collecting any personal information, and the Justice Department will work with the FTC to ensure that they do.”
According to the complaint, Path also violated the FTC Act by failing to disclose to consumers that it was automatically collecting information from users’ address books on their mobile devices. Path’s privacy policy and “Add Friends” feature led consumers to believe that this information would be collected only with the user’s consent.
Along with the civil penalty, Path agreed to an injunction barring future violations of the FTC Act and the Children’s Online Privacy Protection Rule. Path further agreed that it would delete all information previously collected from children under age 13, implement a comprehensive privacy program, and submit to regular assessments by an independent third party.
The FTC, which oversees the Children’s Online Privacy Protection Rule, referred the case to the Justice Department. The lawsuit, United States v. Path Inc., was filed in the Northern District of California.
Principal Deputy Assistant Attorney General Delery thanked the FTC for investigating this matter and referring it to the department. The Consumer Protection Branch of the Justice Department’s Civil Division brought the case on behalf of the United States.
Sentences Imposed in Two Mortgage Fraud ProsecutionsRead the Press Release
Syracuse, NY—United States Attorney Richard S. Hartunian and IRS Criminal Investigation Division Special Agent in Charge Toni Weirauch, announced the sentences imposed in United States District Court in Syracuse on Kevin M. O’Connell and Kevin D. O’Connell, two defendants in a long-term mortgage fraud investigation.
Kevin M. O’Connell, 35, and Kevin D. O’Connell, 62, both of Albany, NY were each sentenced to 24 months incarceration by Senior District Court Judge Norman A. Mordue. In addition, Kevin M. O’Connell was ordered to pay restitution in the amount of $2,275,584.88 and to pay a forfeiture judgment in the amount of $4,628.886.48. Kevin D. O’Connell, was ordered to pay restitution in the amount of $2,136,444.09.
Kevin M. O’Connell was a principal of PB Enterprises and employed his father, Kevin D. O’Connell to assist in a series of transactions that defrauded banks that were offering mortgages in the Albany area. The essence of the fraud was that PB Enterprises found inexpensive properties, usually rental properties that were for sale. They then recruited buyers to purchase the property at higher prices, with promises that the buyer would pay “no money down” and would instead receive a check at the closing. In dozens of transactions, PB Enterprises fraudulently obtained mortgages for those purchasers at the higher purchase price by providing false information to the lenders. PB Enterprises then arranged with closing agents to submit documents to the lenders that disguised the fact that the purchase prices were inflated and that the purchaser and the principals of PB Enterprises were splitting the excess mortgage money. The mortgage lender was falsely led to believe that the mortgage proceeds were necessary to purchase the property, and had not been diverted to pay the buyer and PB Enterprises. The restitution figures imposed by Judge Mordue represent the losses suffered by the lenders from this practice.
The principals of another such organization, Team Title, who were engaged in a similar scheme, pled guilty and were sentenced previously in Albany. Another principal of PB Enterprises, Michael Crowley, is scheduled to be sentenced on February 5, 2013, in Syracuse. A closing agent used by PB Enterprises and Team Title, attorney Michael G. Bouchard, was found guilty of conspiracy and bank fraud after trial in Syracuse in December. Mr. Bouchard and his two paralegals are scheduled to be sentenced in April.
This case is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division in Albany, NY. Further questions or inquiries may be directed to Assistant United States Attorney Michael Olmsted, the prosecutor handling the case, at (315) 448-0672.
Rocky Mount Tax Service Owner Agrees to Plead GuiltyRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court yesterday, charges were filed under a Criminal Information against TINA LURETHA TYREE JOHNSON, 45, of Rocky Mount, North Carolina. JOHNSON has entered into a plea agreement in which she will pled guilty to Tax Fraud and Aiding and Abetting in violation of Title 18, United States Code, Section 287 and 2. The case is to be scheduled before Chief United States District Judge James C. Dever
U.S. Attorney Walker stated, “Our tax system relys on the honesty of tax payers with a heightened duty of honesty expected from professional tax preparers. Whenever someone like JOHNSON deliberately files false returns, the U.S. Attorney’s Office in support of the IRS will pursue the matter through the Courts as provided by our laws.”
According to the Criminal Information filed on January 31, 2013, JOHNSON, beginning in or about January 2008 and continuing until on or about June 2008, did knowingly make and present, and caused to be made and presented, to the Internal Revenue Service claims against the United States for payment that were false by preparing federal income tax returns for individuals totaling approximately $40,867.00.
“A federal tax return is one of the most important financial documents that many individuals or families deal with in a given year and taxpayers need and deserve return preparers who are ethical, fully qualified and able to provide the best possible service,” stated Jeannine A. Hammett, Special Agent in Charge for IRS Criminal Investigation- Charlotte Field Office. “Taxpayers are cautioned to seek out a reputable return preparer with the proper credentials. The IRS is increasing its education and enforcement presence in the return preparer community this filing season in an effort to combat this type of fraud. Please don’t fall victim,” said Hammett.
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney J. Gaston B. Williams is handling the prosecution on behalf of the government.
Rockford Woman Sentenced to 30 Months in Federal Prison for the Robbery of Associated Bank in RockfordRead the Press Release
ROCKFORD C A Rockford, Ill. woman was sentenced today in federal court for bank robbery. LATOYA SHAUNTA BURROWS, 32, of Rockford, was sentenced to 30 months in federal prison by U.S. District Judge Frederick J. Kapala for the robbery of Associated Bank, 612 North Main St., Rockford, Ill., on March 20, 2012.
Burrows pled guilty to the charge on Oct. 29, 2012. According to the written plea agreement, Burrows entered Associated Bank through the west doors at about 10:57 a.m. on March 20, 2012, wearing pink pants and a black t-shirt. Burrows immediately approached the teller counter, by passing the roped off waiting line, and handed the teller a folded piece of paper, which read: APut the money in the bag and nobody will get hurt.@ The teller removed cash from the teller drawer, but told Burrows that he did not have a bag to put the money into. Burrows took the money from the teller=s hand, stuffed the cash into her bra, and walked out of the bank. Shortly after the robbery, Burrows was arrested by the Rockford Police Department in the vicinity of the bank. She has been held in federal custody since her arrest.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent in Charge of the Chicago Office of Federal Bureau of Investigation; and Chet Epperson, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Scott A. Verseman.
Ridgefield Woman Charged with Embezzling from Fairfield Housing AuthorityRead the Press Release
February 1, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging ELIZABETH JO GUTIERREZ, 47, of Ridgefield, with one count of theft concerning programs receiving federal funds. The indictment alleges that GUTIERREZ embezzled $30,000 from the Fairfield Housing Authority.
The indictment was returned on January 23, 2013, and GUTIERREZ appeared yesterday before United States Magistrate Judge Donna F. Martinez in Hartford, pleaded not guilty to the charge and was released on a $50,000 bond.
The Fairfield Housing Authority administers federal housing programs for the U.S. Department of Housing and Urban Development with the mission of providing affordable housing for eligible low-income families and the elderly. According to the indictment, GUTIERREZ served as the Executive Director of the Fairfield Housing Authority from approximately July 2010 to December 2011. In the summer of 2011, GUTIERREZ issued two checks, each in the amount of $15,000, from the Fairfield Housing Authority’s checking account and subsequently deposited them into her own checking account.
The charge of theft concerning programs receiving federal funds carries a maximum term of imprisonment of 10 years.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case has been assigned to United States District Judge Robert N. Chatigny in Hartford.
This matter is being investigated by the Department of Housing and Urban Development – Office of Inspector General. The case is being prosecuted by Special Assistant United States Attorney Sean Beaty.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Registered Sex Offender Charged with Sexual ExploitationRead the Press Release
BOSTON – A Williamstown man who is a registered sex offender was charged today with sexually exploiting a 16-year-old boy.
Ronald Brown, 50, was charged in a complaint with sexual exploitation of children.
According to the complaint, Brown is a level 2 registered sex offender, based upon a 1995 Connecticut conviction for sexual assault of a 12-year-old boy. In December 2012, Brown met a 16-year-old male on a website, called silverdaddies.com. Brown engaged the boy in a long series of texts, chat sessions, and emails, many of which involved explicit sexual communications. On Jan. 8, 2013, Brown viewed the boy masturbating online via Skype and received a photograph of the boy displaying his penis.Brown also arranged for the boy to run away from home so that they could live together as romantic partners. Brown purchased a one-way airline ticket for the boy to fly from his home to Newark, NJ, sent $150 for traveling expenses, and instructed him to erase files on his computer. On Jan. 19, 2013, the boy ran away from his home and flew to Newark, where Brown met him. The two drove into New York where they engaged in sex, before continuing toward Massachusetts. Ultimately, Brown was stopped by the police, who had been alerted to the boy’s disappearance.
The maximum sentence under the statute is 50 years in prison, followed by a lifetime of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was investigated with the assistance of the Williamstown Police Department, the Massachusetts State Police and the New York State Police. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Realtor Sentenced to 30 Months for Mortgage FraudRead the Press Release
Oklahoma City, Oklahoma – SAFIYYAH TAHIR BATTLES, formerly a real estate agent with T&T Realty in Oklahoma City, has been sentenced to thirty months in prison for mortgage fraud and money laundering, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma
On June 21, 2012, a jury convicted Battles of using an interstate wire facility to defraud Saxon Mortgage and engaging in a monetary transaction with more than $10,000 from the proceeds of crime. The evidence at trial showed that in April of 2007, she used her sister’s mortgage brokerage company, Lending Leaders, to apply for a $500,000.00 loan from Saxon Mortgage of Fort Worth, Texas. Saxon required her to provide twelve months of bank statements to support her income and assets. The jury heard evidence that the bank statements had been altered by adding more than $100,000.00 to the ending balance on each statement, by deleting her husband’s name as an account holder, and by removing numerous overdraft fees.
At the closing on May 4, 2007, Battles signed a final loan application that stated falsely that she earned $344,677.92 per year and had $165,907.70 in her bank account. According to a tax return that she filed in March of 2009, Battles’s adjusted gross income for 2006 was $14,001.00; according to the records of First Security Bank, her actual account balance on May 4, 2007, was $852.50.
Based on the application information, a forged letter, and communications with the mortgage brokerage on the day of closing, Saxon Mortgage authorized $102,630.01 from the loan proceeds to be paid to a local builder. Battles took the $102,630.01 check at closing, deposited into her own bank account, and used it for her own purposes. The money-laundering count relates to a $15,000.00 check that Battles wrote to her mother, Trina Tahir, two days after she deposited the $102,630.01 check.
Today, United States District Judge Timothy D. DeGiusti sentenced Battles to thirty months in prison and ordered her to pay restitution of $326,902.34. She will be required to serve two years on supervised release after her prison term, including 104 hours of community service. The court also imposed a forfeiture judgment in the amount of $102,630.01. The sentence was based on the counts of conviction, as well as fraud that Battles perpetrated in connection with five other residential mortgages.
This sentence is the result of an investigation conducted by the IRS Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Chris M. Stephens.
Rapid City Women Charged with Concealing Person from Arrest and False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that two Rapid City women have been indicted by a federal grand jury for harboring a fugitive and lying to a federal law enforcement agent.
Tina LaDeaux, age 40, and Lori Brave, age 37, were indicted on January 23, 2013, for Concealing Person From Arrest and False Statement. LaDeaux and Brave appeared before U.S. Magistrate Judge Veronica L. Duffy on January 28, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years' imprisonment and/or a $250,000 fine. The charges are merely an accusation and LaDeaux and Brave are presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshals Service. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case. LaDeaux and Brave were released on bond pending trial. A trial date has not been set.
Provider of Home Health Care Services Pleads Guilty to $294,000 Medicaid FraudRead the Press Release
NORFOLK, Va. – Angie L. Gilchrist, 57, of Suffolk, Va., pleaded guilty today in Norfolk federal court to health care fraud.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Virginia Attorney General Ken Cuccinelli made the announcement after Gilchrist’s plea was accepted by United States District Senior Judge Henry C. Morgan, Jr.
Gilchrist faces a maximum penalty of 10 years in prison and a fine of $250,000 when she is sentenced on May 22, 2013.
According to a statement of facts filed with her plea agreement, Gilchrist owned and operated A-Z Alpha Omega In-Home Personal Care Service LLC, a business located in Suffolk that was authorized to provide respite care to Medicaid recipients. Respite care is designed to provide temporary, substitute care for a Medicaid recipient that is normally provided by the family or another unpaid primary caregiver of the recipient. These services are provided on a short-term basis because of the emergency absence or need for routine or periodic relief of the primary caregiver. Between October 2008 and October 2012, Gilchrist filed approximately 385 false and fraudulent claims with the Virginia Medicaid program, representing that respite care had been provided by her company to 38 Medicaid recipients, when in fact no such care had been provided. As a result, Gilchrist obtained health care benefit payments in the approximate amount of $294,713.00 to which she was not entitled.
This case was investigated by the FBI and the Office of the Virginia Attorney General, Medicaid Fraud Control Unit. Assistant United States Attorney Alan M. Salsbury is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pharmacist/pharmacy Owner Sentenced to 17 Years for Health Care Fraud, Drug OffensesRead the Press Release
A 50-year-old Canton pharmacist who owned and operated 26 pharmacies in the metro-Detroit area was sentenced today to 17 years in prison, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge, Federal Bureau of Investigation, Robert Corso, Special Agent in Charge, Drug Enforcement Administration and Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services.
U.S. District Judge Arthur J. Tarnow sentenced BABUBHAI "Bob" PATEL on 26 convictions for a health care fraud conspiracy, a drug conspiracy, and related fraud and drug violations.
Evidence presented at a six-week jury trial concluding in August 2012 showed between 2006 and 2011, the pharmacies billed Medicare and Medicaid more than $57 million. At least 25% of those billings were for drugs that were either medically unnecessary never dispensed. Additional amounts were fraudulently billed to private insurers such as Blue Cross Blue Shield of Michigan. The pharmacies operated on a business model that paid kickbacks to physicians in exchange for writing prescriptions for expensive medications. The affiliated doctors would also write prescriptions for controlled substances, without regard to medical necessity, which would be filled at the pharmacies and distributed to paid "patients" and patient recruiters. The expensive non-controlled medications would be billed but not dispensed.
In sentencing the defendant, the court told the defendant that "what you have done is reprehensible." The criminal conduct engaged in by other health care fraud violators sentenced by the court was "small scale compared to this."“Taxpayers fund Medicare and Medicaid to provide health care to needy Americans,” McQuade said. “It is gratifying to see courts impose strong sentences on defendants who exploit these programs for personal gain.”
FBI Special Agent in Charge Foley stated, "Those individuals who engaged in this health care fraud scheme stole millions of dollars over several years, from a system designed to provide health care to those in need. The FBI is committed to stopping these illegal acts and prosecuting these criminals."
"The conduct that occurred in this case was deplorable, inexcusable and dangerous" said Lamont Pugh III, Special Agent in Charge of the Chicago Region of the U.S. Department of Health & Human Services, Office of Inspector General. "The OIG will continue to work with our law enforcement partners to combat prescription drug fraud in the Medicare and Medicaid programs and seek to ensure the safety of program beneficiaries and taxpayer dollars."
Of the 26 defendants charged in the original indictment in this case, 20 defendants have either pleaded guilty or been convicted at trial. Six defendants are scheduled for trial in June. Out of 12 pharmacists charged, 11 have been convicted at trial or pleaded guilty, with one waiting to be tried. Out of four doctors charged, two have pleaded guilty, with two waiting to be tried.
Earlier this week, Judge Tarnow sentenced several of the other pharmacists who were convicted at trial. BRIJESH RAWAL, 36, of Canton; ASHWINI SHARMA, 34, of Novi; and LOKESH TAYAL, 36, of Northville, were each sentenced to terms of imprisonment of 68 months for their participation as pharmacists in these criminal offenses. These three pharmacists were non-U.S. citizens who entered the United States under a visa program for certain skilled workers, and each will be deported to the country of their citizenship upon the completion of their sentences. Defendant RAWAL is a citizen of Canada, while defendants SHARMA and TAYAL are citizens of India.
In addition to the prison sentence, defendant BABUBHAI PATEL was ordered to pay restitution to the Medicaid and Medicare programs in the amount of $17.3 million, and restitution to Blue Cross Blue Shield in the amount of $1.5 million. Defendant PATEL, who has been held without bond since his arrest on August 2, 2011, will receive credit toward his sentence for the time he has served.
U.S. Attorney McQuade thanked the Drug Enforcement Administration, the FBI, the Department of Human Services, Office of Inspector General, and Blue Cross and Blue Shield of Michigan for their tireless work in the investigation and prosecution of the case. The case is being prosecuted by Assistant United States Attorneys John K. Neal and Wayne F. Pratt.Pennsylvania Man Sentenced to 10 Years in Prison for Receipt of Child PornographyRead the Press Release
Took Videos of Boys in Public Restrooms in Maryland Without Their KnowledgeBaltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Brian Matthew Williams, age 28, of West Chester, Pennsylvania, today to 10 years in prison followed by 50 years of supervised release for receipt of child pornography.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Edward D. E. Rollins, III; Harford County State’s Attorney Joseph I. Cassilly; and United States Attorney for the Eastern District of Pennsylvania Zane D. Memeger.
“This defendant egregiously violated the privacy of young boys by secretly recording them in public restrooms, a crime that gives every parent nightmares,” said U.S. Attorney Rod J. Rosenstein. “I am grateful to the vigilant citizen who noticed the unusual behavior and immediately called 9-1-1, and to the police and prosecutors who conducted an urgent investigation.”
According to his plea agreement, on May 6, 2012, Williams spent nearly five hours at the Maryland House and Chesapeake House rest stops on I-95, walking in and out of the men’s restrooms filming several minor males, most of whom were prepubescent, as they used the urinals. Williams positioned himself at an adjacent urinal and used his cell phone to create 21 videos. Williams would then leave the restroom and capture full length images of the young boys as they walked out, including their faces. After the parents of one of the victims reported Williams’ suspicious behavior to Maryland State Police, he was arrested, charged in Cecil County and released on bond the same day.
On June 13, 2012, a search warrant was executed at Williams’ residence and computers and other digital media were seized. A number of hard drives appeared to have been removed, and the operating system on the remaining hard drive had been reinstalled on May 28, 2012.
A subsequent background investigation of Williams revealed that he had been questioned by law enforcement on two previous occasions under similar circumstances. In 2007, law enforcement contacted Williams after they received several complaints that he had followed minors into the restroom at a college basketball game. In June 2010, Williams was questioned and released after an off-duty police officer saw him in the restroom of a movie theater pointing his cell phone at the genitals of young boys using the urinals.
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police, Cecil County State’s Attorney’s Office, Harford County State’s Attorney’s Office and the U.S. Attorney’s Office for the Eastern District of Pennsylvania for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Paralegal Charged in Scheme to Defraud Bay Area Law Firm and Its ClientsRead the Press Release
OAKLAND, Calif. – Ana Lissa Reyes, of San Lorenzo, Calif., was arraigned yesterday on an information charging her with multiple counts of mail fraud and tax evasion, United States Attorney Melinda Haag and IRS Criminal Investigation Special Agent in Charge Jose M. Martinez announced.
According to the information, Reyes is alleged to have worked as a secretary, office manager and paralegal for a Bay Area personal injury law firm. From about 2006 through June 2011, Reyes, without authorization, settled claims without the knowledge of the law firm or its clients and stole the settlement proceeds. It is also alleged that Reyes engaged clients without the law firm’s knowledge and stole client retainer fee payments. To carry out the scheme to defraud, Reyes created a bogus company to correspond with clients without the law firm’s knowledge and to defraud the clients into believing their cases were ongoing.
Reyes is also charged with willfully attempting to defeat a large part of the income tax due and owing for the calendar years 2006, 2007, 2008, 2009, 2010 and 2011. It is alleged that, for each of those tax years, Reyes knew her joint taxable income was substantially in excess of the amount stated on the returns, and, upon the additional taxable income, a substantial additional tax was due and owing to the United States.
Reyes made her initial appearance in federal court in Oakland yesterday and is currently out on bond. She is next scheduled to appear in federal court in Oakland at 2 p.m. on Feb. 28, 2013, for a status hearing before Judge Yvonne Gonzalez Rogers.
The maximum statutory penalty for each count of mail fraud in violation of 18 U.S.C. § 1341 is 20 years in prison and a fine of $250,000. The maximum statutory penalty for each count of tax evasion in violation of 26 U.S.C. § 7201 is six years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
AUSA Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of a year-long investigation by the Federal Bureau of Investigation and IRS, Criminal Investigation.
Please note, an information contains only allegations against an individual and, as with all defendants, Reyes must be presumed innocent unless and until proven guilty.
(Reyes Information )
Palmer County, Texas, Man Sentenced to 57 Months in Federal Prison for Committing Armed Robbery of Friona Federal Credit UnionRead the Press Release
AMARILLO, Texas — John Michael Garibay, 22, of Friona, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 57 months in federal prison and ordered to pay $6,541 in restitution for committing the August 27, 2012, armed robbery of the Friona Federal Credit Union, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, at approximately 12:06 p.m. that Monday, a man wearing a gas mask, who was later identified as Garibay, entered the Credit Union, walked to a teller and demanded money. He then pulled a handgun out of his waistband and showed it to the teller. The teller gave Garibay cash, and he left the bank and headed down an alley, spilling some of the cash. He left the scene in a gray Dodge Charger.
Shortly thereafter, law enforcement located Garibay at a residence in a trailer park, where they had observed the gray vehicle. During a search of the residence, officers found items used in the robbery including matching clothing, a black Nike single strap backpack, with a five dollar bill inside the bag, and a bank money strap with “Teller 33" stamped on it. Law enforcement located a .45 caliber plastic case and .45 and .38 caliber handgun rounds in the trash can in the kitchen. Garaby identified an area two spaces down from his trailer where law enforcement located a black .45 caliber semi-automatic Taurus handgun.
As law enforcement transported Garibay to the Randall County Jail, he asked how much time he would get and said, “I made the case for you by telling you where the gun was.”
The case was investigated by the FBI, the Friona Police Department and the Palmer County Sheriff’s Office. Assistant U.S. Attorney Christy Drake of the U.S. Attorney’s Office in Amarillo, Texas, was in charge of the prosecution.
Oxon Hill Man Sentenced to 5 Years in Prison for Receipt of Child PornographyRead the Press Release
Stole the Identities of Doctors Who Applied for Fellowships at Johns Hopkins Hospital Where His Girlfriend WorkedGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Raymond Talley III, age 34, of Oxon Hill, Maryland, today to five years in prison, followed by six years of supervised release, for receipt of child pornography. Chief Judge Chasanow ordered that upon his release from prison, Talley must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation - Washington Field Office.
According to the plea agreement, on three occasions in August and September 2011, undercover law enforcement agents downloaded child pornography from files that Talley was sharing over the internet using a file sharing program. On October 7, 2011, two laptops, both with file sharing programs installed, were seized during a search of Talley’s home. Over 1,700 videos of children engaged in sexually explicit conduct had been downloaded and saved onto the laptops.
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, who prosecuted the case.
Opa-Locka Police Captain Sentenced as Part of Drug Trafficking OrganizationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), J.D. Patterson, Acting Director, Miami-Dade Police Department (MDPD), and Addy M. Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), announce that Arthur Balom, 44, of Miramar, a Captain with the City of Opa-Locka Police Department, was sentenced yesterday by U.S. District Judge Joan A. Lenard to 87 months imprisonment for his participation in the distribution of cocaine, ecstasy and oxycodone in Opa-Locka in violation of Title 21, United States Code, Section 846.
According to statements made in court during the change of plea and at the sentencing hearing, and those contained in court filings, Balom was part of a drug trafficking organization operating out of an Opa-Locka apartment complex known as “The Back Blues.” More specifically, according to in court statements, while Balom was a Captain in the Opa-Locka Police Department (OLPD), Balom aided and abetted in the distribution of drugs by the organization by: (1) providing the organization with information related to police activity in the area; (2) directing officers to leave the area; and (3) assisting members of the organization when they came into contact with law enforcement.
In one instance, discussed in court and in the pleadings, FBI agents provided Balom with a notebook containing photographs of various suspects related to an armed robbery. The FBI agents asked Balom about a suspected co-conspirator. The day after speaking with FBI agents about the suspect, Balom met with that very suspect and showed him the notebook provided by the FBI. In another instance, Balom provided ballistic vests to members of the drug organization.
Mr. Ferrer commended the FBI, ATF, the MDPD, and FDLE for their efforts in the investigation of this case. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Nicaraguan National Sentenced on Drug Trafficking ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Miami Field Division, announce the conviction and sentencing of Franklin William McField-Bent, a/k/a “Buda.” McField-Bent, 55, a Nicaraguan national, was sentenced yesterday by U.S. District Judge K. Michael Moore to a 235-month term of incarceration on drug trafficking conspiracy charges in violation of Title 21, United States Code, Section 963, and a 180-month term of incarceration for his participation in a conspiracy to provide weapons to a designated terrorist organization in violation of Title 18, United States Code, Section 2339B. The 180-month term of incarceration –the highest possible sentence allowable under the statute – was ordered to run concurrent to the 235-month term of incarceration. McField-Bent had previously agreed to plead guilty on November 8, 2012.
McField-Bent conceded in a factual proffer that, during the time of the charged conspiracy, he had had numerous meetings and phone calls with Colombian law enforcement officers who, posing as members of a foreign terrorist organization, sought to obtain weapons that they intended to use to launch attacks on the Colombian government. McField-Bent arranged for the March 2010 sale of six grenade launchers, 20 grenades, an Uzi submachine gun and 100 rounds to the Colombian law enforcement officers. McField-Bent also admitted to participating in the shipment of three multi-hundred kilogram loads of cocaine to Central America knowing that the cocaine would be unlawfully imported into the United States.
U.S. Attorney Wifredo A. Ferrer stated, “International drug traffickers, like this defendant, continue to pose a direct and immediate threat to our national security. Through proactive efforts and dedicated resources of our office, together with considerable international and domestic cooperation, we will continue to combat those who threaten the welfare of our citizens.”
DEA Special Agent in Charge Mark R. Trouville stated, “The sentence of Nicaraguan National William McField-Bent highlights the DEA’s commitment to target the highest level of drug traffickers regardless of their nationality. There is no danger greater than the marriage of drug trafficking and terrorism.”
“The arrest, conviction and subsequent sentencing of McField-Bent is an important accomplishment for the U.S. Government and its international partners due to the magnitude of his criminal violations and threat to the homeland,” said Alysa D. Erichs, Special Agent in Charge of ICE-HSI in Miami. “We will continue to work shoulder to shoulder with our domestic and international law enforcement partners to identify and dismantle drug and weapons trafficking organizations.”
The extradition of McField-Bent is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) led by DEA and HSI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commends the outstanding investigative efforts of DEA and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Adam Fels.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Nampa Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
BOISE – Jesus Manuel Zuniga, 28, of Nampa, Idaho, pleaded guilty yesterday in United States District Court to an information charging him with one count of unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on October 30, 2012, a Nampa Police officer initiated a traffic stop on a vehicle pursuant to a warrant for Zuniga’s arrest for violating his federal supervised release. After the vehicle stopped, Zuniga, who was a passenger in the vehicle, attempted to elude two Deputy U.S. Marshals. He was apprehended and arrested in possession of a firearm, later identified as a Phoenix Arms .22 semi-automatic pistol. Because Zuniga had previously been convicted in 2010 of unlawful possession of a firearm, a federal offense punishable by a term of imprisonment exceeding one year, he is prohibited from possessing firearms.
The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and at least three years of supervised release.
Sentencing is set for April 10, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Nampa Police Department, and the U.S. Marshals Service.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Muscatine Man Sentenced for Drug and Gun OffensesRead the Press Release
DAVENPORT, IA – On January 31, 2013, Robert Leslie Ranck, age 46, was sentenced to 130 months imprisonment, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Ranck to three years supervised release following imprisonment, ordered him to pay a $200 special assessment to the crime victim fund, and ordered him to forfeit all firearms and ammunition involved in the offense.
On April 7, 2012, Ranck was stopped by the Burlington, Iowa, police for a traffic violation. Police discovered that Ranck, a multi-time convicted felon, was in possession of a high-capacity, semi-automatic 9mm pistol. Ranck had just received the pistol from Justin Adams, who purchased the pistol for Ranck at a Burlington gun shop. Ranck, after being arrested and booked by police, was released on bond.
On April 18, 2012, Ranck again was arrested in Scott County, Iowa, while making a delivery of six pounds of marijuana to a police informant. Police searched Ranck’s residence in Muscatine, Iowa, finding additional marijuana packaged for sale, growing marijuana plants, several firearms, and ammunition.
Ranck was indicted in United States District Court for possessing firearms and ammunition as a felon and possessing marijuana with intent to distribute, and Adams was separately indicted for making false statements in connection with the purchase of a firearm. Ranck and Adams both entered guilty pleas, and Adams’ sentencing is still pending.
This case was investigated by the Burlington, Iowa, Police Department, the Davenport, Iowa, Police Department, the Muscatine Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa
(Download Press Release )
Mobridge Woman Pleads Guilty to Charge of Escape from CustodyRead the Press Release
United States Attorney Brendan V. Johnson announced that Camille Touche, age 27, of Mobridge, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on January 28, 2013, and pled guilty to a charge of Escape from Custody. The maximum penalty upon conviction is 5 years' imprisonment and/or $250,000 fine.
In December 2012, Touche left Community Alternatives of the Black Hills without permission, where she was serving the remainder of a federal sentence. The investigation was conducted by the United States Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date was set for June 7, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Maypearl Podiatrist Sentenced for Health Care/Tax FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas — A 46-year-old Maypearl, Texas podiatrist has been sentenced to federal prison for health care and income tax fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shannon Gallentine pleaded guilty on May 10, 2012, to one count of health care fraud and one count of failing to file an income tax return and was sentenced to 24 months in federal prison on Jan. 31, 2013, by U.S. District Judge Thad Heartfield. Gallentine was also ordered to pay health care fraud restitution of $391,628.08 and $407,942.47 to the Internal Revenue Service. Of the restitution, $254,377.41 will be paid to Medicare, $110,622.59 to Medicaid, and $26,628.08 to Blue Cross Blue Shield.
According to information presented in court, from January 2004 through May 2007, Gallentine, a podiatrist, owned and operated Ambulatory Foot Care in Lancaster, Texas. During this time, Gallentine submitted false and fraudulent claims to Medicare seeking reimbursement for procedures which he did not perform. As a result of these false claims, Gallentine received in excess of $365,000.00 to which he was not entitled. Additionally, Gallentine willfully failed to file federal income tax returns for calendar years 2004 and 2005. Gallentine was indicted by a federal grand jury on Mar. 9, 2011, and charged with federal violations.
Gallentine will report to the U.S. Marshals Service on Mar. 18, 2013 to be transported to federal prison.
This case was investigated by the FBI, U.S. Department of Health and Human Services - Office of the Inspector General (HHS-OIG), IRS, DEA, Texas Office of the Attorney General - Medicaid Fraud Control Unit (OAG-MFCU), and Blue Cross/Blue Shield of Texas and was prosecuted by Assistant U.S. Attorney James Peacock.
####Maryland Resident Pleads Guilty in Credit Card Fraud Scheme Involving over 50 VictimsRead the Press Release
Skimmed Data from Retail Customers’ Credit Cards Where He WorkedBaltimore, Maryland - Tri Tran, a/k/a “Tony,” age 35, a citizen of Vietnam unlawfully in the country and residing in Maryland, pleaded guilty today to mail fraud in connection with a scheme to skim credit card account data and re-encoding the data onto different credit cards used to buy merchandise at retail stores.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; Harford County Sheriff L. Jesse Bane; and Harford County State’s Attorney Joseph I. Cassilly.
According to his plea, beginning in 2009 through February 28, 2011, co-conspirator Nghia Nguyen, a Vietnamese citizen residing in Santa Ana, California, mailed an electronic skimming device to Tran in Maryland who used the device at the business where he was employed to access data from customer credit cards. During 2009, Tran mailed Nguyen the skimming device approximately twice a month, typically when the data of five to 15 credit cards was stored on the skimmer. This pace picked up slightly in 2010, and in 2011 there were about four to five exchanges prior to his arrest. Tran would also mail several credit cards bearing his name to Nguyen.
Nguyen would then extract the data from the skimmer and re-encode the magnetic strip of the other cards with the victims’ data. Nguyen would then send Tran three or four re-encoded cards in return, and Tran would use these cards, typically for one or two transactions at about $200 per transaction before the accounts were shut down. This process was repeated several times over the course of the scheme.
On January 14, 2011, the Harford County Sheriff’s Office began investigating a complaint related to credit card skimming activity at the retail location where Tran worked. Tran’s residence was searched on February 28, 2011. Computer equipment and peripheral devices used in the creation of the fraudulent credit cards were seized.
As a result of the scheme, over 50 victims incurred losses totaling over $70,000.
Tran faces a maximum sentence of 20 years in prison and a $250,000 fine for mail fraud. U.S. District Judge James K. Bredar scheduled sentencing for May 24, 2013 at 4:00 p.m.
Nghia Nguyen, age 35, previously pleaded guilty to his participation in the scheme and was sentenced on December 17, 2012 to six years in prison.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked HSI Baltimore, USSS, Harford County Sheriff’s Office and the Harford County State’s Attorney’s Office for their work in the case. Mr. Rosenstein also recognized HSI Orange County, the Drug Enforcement Administration and U.S. Postal Inspection Service in California, City of Orange Police Department, Costa Mesa Police Department and the U.S. Attorney’s Office for the Central District of California for their assistance in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Maryland Man Found Guilty After Trial and Sentenced to <br /> 30 Years in Prison in International Child Pornography Conspiracy CaseRead the Press Release
A Maryland man was found guilty by a federal jury yesterday and sentenced today to serve 30 years in prison for his participation in a global online child pornography conspiracy, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Joseph H. Hogsett of the Southern District of Indiana.
Following a four-day trial, Roger Lee Loughry Sr., 57, of Baltimore, was found guilty yesterday by a federal jury in the Southern District of Indiana of one count of conspiracy to advertise child pornography, one count of conspiracy to distribute child pornography, 12 counts of advertising child pornography and two counts of distributing child pornography, in connection with his role as an administrator of an online child pornography bulletin board.
Loughry was sentenced today by U.S. District Court Judge Sarah Baker in the Southern District of Indiana. In addition to his prison term, Loughry was sentenced to serve lifetime supervised release.
Evidence presented at trial revealed that Loughry had been an active member of a child pornography bulletin board since November 2005 and had participated in numerous administrative functions on the online board during his membership, including adding new members to the board. In addition, evidence introduced at trial established that Loughry’s home was searched in September 2008, at which time computers and computer media were seized. Trial evidence showed that upon review of the seized materials, investigators discovered images and videos depicting minors engaging in sexually explicit conduct.
The charges against Loughry were a result of “Operation Nest Egg,” a joint investigation led by the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the U.S. Attorney’s Office for the Southern District of Indiana, the U.S. Postal Inspection Service (USPIS) and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). Operation Nest Egg, launched in February 2008, targeted 26 defendants charged in the Southern District of Indiana, as well as approximately 500 additional individuals located throughout the world for their involvement in an online group dedicated to trading images of child pornography.
Loughry had previously been tried and convicted of the same charges in April 2010. On Oct. 11, 2011, his convictions were reversed and the case was remanded for a new trial.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant U.S. Attorney Steven D. DeBrota of the Southern District of Indiana and CEOS Trial Attorneys Keith Becker and Amy Larson. The investigation was conducted jointly by CEOS’ High Technology Investigative Unit, USPIS and ICE, with assistance provided by the Indiana Internet Crimes Against Children Taskforce, Indiana State Police, and numerous local and international law enforcement agencies across the United States and Europe.
Martin Woman Pleads Guilty to Distribution of Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Ashley Cottier, age 36, of Martin, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on January 28, 2013 and pled guilty to distribution of a controlled substance. The maximum penalty upon conviction is 20 years' imprisonment and/or a $1,000,000 fine.
On or about June 6, 2012, Cottier illegally distributed Fentanyl. This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Northern Plains Safe Trails Drug Enforcement Task Force, the Martin Police Department, and the South Dakota Division of Criminal Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Laura A. Shattuck.
A presentence investigation was ordered and a sentencing date was set for May 7, 2013. The defendant was released on bond pending sentencing.
Martin Man Pleads Guilty to Distribution of Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Ashley Cottier, age 36, of Martin, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on January 28, 2013 and pled guilty to distribution of a controlled substance. The maximum penalty upon conviction is 20 years' imprisonment and/or a $1,000,000 fine.
On or about June 6, 2012, Cottier illegally distributed Fentanyl. This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Northern Plains Safe Trails Drug Enforcement Task Force, the Martin Police Department, and the South Dakota Division of Criminal Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Laura A. Shattuck.
A presentence investigation was ordered and a sentencing date was set for May 7, 2013. The defendant was released on bond pending sentencing.
Mark Ryan Coyle Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 1, 2013, before Chief U.S. District Judge Richard F. Cebull, MARK RYAN COYLE, a 35-year-old resident of Billings, appeared for sentencing. COYLE was sentenced to a term of:
Prison: 130 months
Special Assessment: $100
Supervised Release: 5 years
COYLE was sentenced in connection with his guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On November 4, 2011, the drug task force in Billings conducted a controlled buy of methamphetamine from an individual, identified here as Z.Z., using a confidential informant (CI). The CI bought .6 grams of meth for $30. Later on that same day, Z.Z. was stopped and consented to a search of his car and house. The searches netted cash ($1,887) and methamphetamine (8.4 grams), as well as a marijuana pipe, marijuana, a digital scale, a gun, and ammunition. After the search, Z.Z. identified his source as COYLE and agreed to cooperate.
On November 8, 2011, the task force bought two ounces of meth from COYLE using Z.Z. as a CI. In an interview of Z.Z. after the purchase, Z.Z. admitted that he had bought approximately 30 ounces from COYLE over a period of six months. He admitted that he got the gun that was seized during the search of his car by trading meth for it.
Again, on December 30, 2011, the task force used Z.Z. to buy one ounce of meth from COYLE. The transaction took place at COYLE's house. After the transaction, the task force obtained a search warrant for the house.
On January 2, 2012, COYLE was stopped on the interstate. COYLE agreed to talk with law enforcement and admitted that he was selling meth in Billings for approximately a year, and that he had been traveling to Denver to pick up meth for about 7 months. He admitted to getting 20-30 pounds of meth from his Denver source and selling it in Billings. COYLE admitted that he had traveled to Denver the previous week and bought 5 pounds of meth, which was in his bedroom.
Law enforcement seized approximately 5 pounds of meth during the search of COYLE's house, as well as some guns, scales, cash, and drug paraphernalia. COYLE's truck was searched, on January 4, 2012, and some meth, cocaine, and drug paraphernalia were found.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that COYLE will likely serve all of the time imposed by the court. In the federal system, COYLE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the High Intensity Drug Trafficking Area (HIDTA) Task Force.
Ligonier Man Sentenced for Role in Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Westmoreland County has been sentenced in federal court to six months imprisonment, $80,000 in restitution and three years supervised release on his conviction of wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Samuel Hayden, 70, of Ligonier, Pa.
According to the information presented to the court, in October, 2010, Hayden and another person solicited funds from an investor in which he promised a significant return on a foreign commodity investment, but, instead Hayden used part of the funds for his personal benefit.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Hayden.
Leeper SentencedRead the Press Release
BATON ROUGE, LA— United States Attorney Donald J. Cazayoux, Jr., announced that WAYNE A. LEEPER, III, age 44, of Metairie, Louisiana, was sentenced on Thursday, January 31, 2013 by United States District Court Judge James J. Brady to forty-eight (48) months of imprisonment. LEEPER was also ordered to repay the Louisiana Workforce Commission (LWC) $96,966 in restitution.
LEEPER had previously pled guilty to wire fraud and aggravated identity theft. While employed as an operations manager with a dental supply company from approximately November 2009 until May 2010, LEEPER fraudulently obtained the personal identifying information of numerous co-workers and applied for Louisiana Unemployment Insurance (UI) benefits in their names. As office manager, he enjoyed access to employee’s personnel files, which included information such as their date of birth and social security numbers. LEEPER also obtained the personal identifying information of unwitting friends and family members and applied for UI benefits in their names.
LEEPER executed his scheme to defraud by supplementing their unlawfully obtained identifiers with fictitious information regarding their place of employment and address. The addresses listed for these individuals, and for the most part, their employers, were addresses controlled by LEEPER or vacant addresses. UI funds would be wired to a debit card account created by Chase. Leeper would have the debit card sent to an address controlled by him. LEEPER would then use the funds obtained, including making numerous cash withdrawals at automatic teller machines, and using the cards at retail establishments for his own personal benefit. In total, LEEPER submitted approximately $102,219 in unemployment insurance claims to the LWC.
This investigation was conducted by United States Department of Labor, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Shubhra Shivpuri.
Leader in Bank Fraud Scheme Sentenced to 12 Years in PrisonRead the Press Release
Deposited Altered and Counterfeit Checks Into Bank Accounts They ControlledGreenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Nathan A. Silla, age 39, of Glenn Dale, Maryland, today to 12 years in prison followed by five years of supervised release for conspiracy to commit bank fraud, two counts of bank fraud and aggravated identity theft, in connection to a scheme in which he and his co-conspirators created counterfeit checks and stole money using misappropriated bank account information and the personal identifying information of individuals. Judge Williams ordered Silla to forfeit $900,000 in cash, six flat panel TVs and other electronics, a 2004 Land Rover Range Rover, and jewelry, including a Cartier watch. Judge Williams also ordered Silla to pay restitution of $331,449 and to forfeit $100,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office.
Silla pleaded guilty after two days of trial. According to his plea agreement, Silla and co-conspirators Kodjo Kakra Duncan, Kodjo Panyin Duncan, Caleb K. Otsibah and Stephen L. Wise opened bank accounts at financial institutions in Montgomery and Prince George’s Counties in Maryland, and in Washington, D.C., in their own names, in false names, in family members’ names and in the names of shell corporations they controlled. Silla, the Duncans and Caleb Otsibah used stolen identifying information of individuals to open some of those accounts and obtain check cards.
Silla admitted that he and other conspirators obtained checks from victim individuals and corporations, which they washed to remove the actual payee’s names, then printed with the name of a conspirator, or one of the names being used by the conspirators. Silla and others also created counterfeit checks by printing the misappropriated name and bank account information of victim individuals and companies onto counterfeit checks. They wrote those checks payable to conspirators or companies controlled by conspirators. They deposited these altered and counterfeit checks into accounts they controlled.
Silla admitted that the intended loss from the scheme was at least $400,000.
Kodjo Kakra Duncan, age 39, of Capitol Heights, Maryland; Kodjo Panyin Duncan, age 39, of Lanham, Maryland; Caleb K. Otsibah, age 39, of Lanham; and Stephen L. Wise, age 23, of Washington, D.C., have previously pleaded guilty to their participation in the conspiracy. Each has been sentenced to between 37 and 66 months in prison, and ordered to pay restitution of at least $58,974.61 and up to $175,632.67.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christen A. Sproule, who prosecuted the case.
Leader in Baltimore Heroin Distribution Ring Sentenced to over 15 Years in PrisonRead the Press Release
LEADER IN BALTIMORE HEROIN DISTRIBUTION RING SENTENCED TO OVER 15 YEARS IN PRISON
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Danilo Garcia, age 43, of Bronx, New York, today to 188 months in prison followed by five years of supervised release for conspiracy to possess with intent to distribute heroin and four counts of possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to testimony at Garcia’s 12 day jury trial, Garcia was a leader in a heroin trafficking organization, supplying heroin to distributors in Maryland and elsewhere. During the investigation, the FBI overheard phone calls in which Garcia arranged to sell heroin to co-defendants Walter Powell, Diego Amparo and others. For example, on July 22, 2011, agents set up physical surveillance in Philadelphia, after intercepting telephone calls in which Garcia brokered a deal for Powell to pick up heroin from Amparo in Philadelphia. Agents observed Powell arrive at the meeting place in Philadelphia and leave a short time later. Powell was stopped on I-95 while driving back to Maryland with approximately 144 grams of heroin in his possession. On four occasions between April 17, 2009 and August 5, 2011, law enforcement seized heroin from Garcia or one of his co-conspirators.
The jury found that Garcia was responsible for the distribution of at least one kilogram of heroin.
Walter Powell, age 61, of Baltimore, Maryland, was previously sentenced to 121 months in prison for the heroin conspiracy. Diego Amparo, age 48, was sentenced to seven years in prison for the heroin conspiracy, and for distribution of heroin.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Lancaster Man Sentenced for Attempting to Receive Child PornographyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Joseph Marranca, Jr., 68, of Lancaster, N.Y., who was convicted of attempted receipt of child pornography, was sentenced to five year in prison and five years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated the defendant posted an ad on Craig's list that read in part "looking for a teenager." Marranca engaged in chat conversations online and began talking with a person who indicated that she was a 14 year old girl. During those chats, the defendant asked the 14 year old for pictures and made arrangements to meet her at a park. The individual that Marranca was actually chatting with was an undercover police officer. The defendant was arrested after he drove to the park to meet the officer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of the Special Agents of the Federal Bureau of Investigation, under the direction of Christopher M. Piehota, Special Agent In Charge and the Cheektowaga Police Department under the direction of Chief David Zack.
Justice Department Seeks to Shut Down Riverview, Fla., Tax-preparation Office Allegedly Involved in Identity TheftRead the Press Release
The United States has asked a federal court to shut down a tax-preparation office in Riverview, Fla., the Justice Department announced today. The civil injunction suit, filed in U.S. District Court in Tampa, Fla., alleges that Tyree Middleton, of Palmetto, Fla., operates Middleton Financial Group and Middleton Financial Professional Tax & Accounting Inc. in Riverview and intentionally prepares and files fraudulent federal income tax returns to obtain improper tax refunds.
According to the complaint, Middleton induces potential customers to “get excited” about their tax refunds, asserting that if they “file today,” they will “smile today,” when Middleton has reason to know that his customers are not entitled to the refunds he claims on their behalf. The lawsuit further alleges that Middleton repeatedly prepared federal tax returns that falsely claimed first-time home buyer credits, underreported income, claimed false business deductions, and claimed false education and earned-income credits.
The complaint further alleges that Middleton stole identities so that he could file income tax returns falsely claiming refunds, and have the refunds deposited into his bank account. According to the complaint Middleton prepared income tax returns for two deceased persons, falsely claiming the same items on each return.
The Internal Revenue Service lists return-preparer fraud and identify theft as two of its “Dirty Dozen” tax scams .
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Tyree Middleton, etc.
Complaint and Request for Injunctive Relief
Justice Department Reaches Agreement with Lomita, Calif., to Protect Religious ExerciseRead the Press Release
The Justice Department today announced a settlement with the city of Lomita, Calif., resolving allegations that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied the Islamic Center of the South Bay’s application to build a new mosque on its property. The settlement, which still must be approved by the U.S. District Court in Los Angeles, is in the form of an agreed order and resolves a lawsuit filed today by the United States against the city.
The case arose from the Lomita City Council’s 2010 denial of an application by the Islamic Center to take down the aging, separate structures on its property, which it has been using for worship and various other religious activities since 1985, and construct a single building that would serve its needs. The government’s complaint, which was filed with the court along with the agreed order resolving the lawsuit, alleges that the structures currently being used by the Islamic Center are insufficient to enable the community to come together for worship and fellowship or to perform religious rituals properly. The lawsuit alleges that the city’s denial of the Islamic Center’s application to construct a new center in place of these inadequate facilities imposed a substantial burden on the religious exercise of the Islamic Center and its members.
“Religious freedom is among our most fundamental rights, and there are few aspects of that right more basic than the ability of a religious community to come together for worship and fellowship in a decent and appropriate setting on its own property,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “With RLUIPA, Congress has sought to ensure that this basic right is protected from encroachment by unjustified local zoning actions.”
“The right to religious freedom includes the ability to build places of worship and to assemble at those places,” said U.S. Attorney André Birotte Jr. “This settlement will ensure that worshippers at the Islamic Center will be able to exercise their rights and enjoy the cherished freedoms in our Constitution.”
As part of this settlement, which incorporates portions of a related agreement between the city and the Islamic Center, the city has agreed to consider a renewed application by the Islamic Center on an expedited schedule. The city also agreed that its leaders and employees who make land-use decisions will attend training on the requirements of RLUIPA. In addition, the city periodically will report to the Justice Department.
RLUIPA prohibits land use decisions that discriminate based on religion or impose substantial and unjustified burdens on religious exercise. Persons who believe their rights under RLUIPA have been violated may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743. More information about RLUIPA, including a report on the first 10 years of its enforcement, may be found at www.justice.gov/crt/about/hce/rluipaexplain.php .
Related Materials:
Lomita Proposed Agreed Order
Lomita ComplaintInvestigation Exposes Mansfield Cocaine, Meth Distribution SchemeRead the Press Release
SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that a year-long undercover investigation resulted in 15 being charged for distributing cocaine and methamphetamine in the Mansfield area. Federal and local law enforcement officials arrested 12 so far in connection with
these charges.The charges and arrests are part of the Organized Crime Drug Enforcement Task Force (OCDETF) “Operation Limpiar Casa.” The FBI, the DEA, the Desoto Parish Sheriff’s Office, the Mansfield Police Department, and the Tri-Parish Task Force which includes DeSoto, Sabine and Red River Parishes, participate in the OCDETF program and conducted the operation.
The defendants face a variety of federal and state charges. Two federal indictments and 10 state arrest warrants to date have been returned.
A federal grand jury returned the first “Operation Limpair Casa” indictment Sept. 4, 2012, charging Bartholomew Claiborne, 25, of Mansfield, with 14 counts of distributing cocaine. Claiborne, who was an elected member of the Desoto Parish School Board, is scheduled to plead guilty to one count of distributing cocaine at 9 a.m. Feb. 7, 2013, in Shreveport. Claiborne faces up to 20 years in prison if convicted.
A federal grand jury returned a second indictment Jan. 24, 2013, charging Laquon Ashton, 25, of Arlington, Texas; Seneca Colbert, 32; Brian Davis, 37; and Janette Ashton, 53, all three of Mansfield, with multiple counts including conspiracy and distribution of cocaine. Laquon Ashton and Janette Ashton are also charged with conspiracy and distribution of methamphetamine. The defendants each face 5 to 40 years in prison if convicted.
State distribution of cocaine arrest warrants related to the operation were also obtained for Malcolm Flowers, 24; Johnathan Mcintyre, 23; Curtis Jones, 27; Dominique D. Sanders, 24; Preston Malone, 32; Roderick Canada, 23; Demarcus Green, 24; Mark C. Harris, 42; Roynell O’neal, 23; and James Turner, 37, all of Mansfield.
Federal and local law enforcement officers began making arrests in connection with the case this morning. There are currently 13 defendants in custody. The defendants facing federal charges had their initial appearances before U. S. Magistrate Mark L. Hornsby at 11:00 a.m. this morning.
The following individuals are still being sought by law enforcement: Malcolm Flowers, Roderick Canada, and Roynell Oneal. Anyone with information as to their whereabouts should contact the Desoto Parish Sheriff’s Department at (318) 872-3956, or DeSoto Parish Crime Stoppers at (800) 505-STOP.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
United States Attorney Stephanie Finley stated, “The U.S. Attorney’s Office, along with our federal, state, and local partners, is committed to keeping our communities safe. Breaking up this drug distribution ring is a huge step in countering the flow of these illegal substances into the community,” Finley said. “I want to thank all the agencies who have partnered with us on this operation and who continue to work to enforce both federal and state narcotics laws.”
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
First Assistant U.S. Attorney Alexander Van Hook is prosecuting the case.
Inmate Sentenced for Assault on Guard Using Contraband WeaponRead the Press Release
ALEXANDRIA, La: United States Attorney Stephanie A. Finley announced today that Isaac Hashi, 32, of San Diego, Calif., was sentenced on Wednesday to 18 years in prison for stabbing a federal prison guard with a makeshift knife.
Hashi pleaded guilty on Nov. 16, 2012, to one count of assaulting a prison guard and possessing contraband, which was a four-inch makeshift plexiglass knife. Hashi stabbed the guard multiple times on Nov. 4, 2009 while incarcerated at the U.S. Penitentiary in Pollock. Hashi is serving a prison term at the Pollock Penitentiary for assault after throwing hot oil on a deportation official’s face on Jan. 11, 2008, at the Columbia Care Center in South Carolina.
In addition to the 18-year sentence, he will be required to serve three years of supervised release, which he will serve after the 17-year sentence is completed for the earlier assault charge.
“Federal prison guards play a vital role in our public safety efforts. Neither the FBI or our office takes likely anyone who attempts to impede their work,” Finley said. “We hope this sentence sends a strong message that assaulting a prison guard is a serious crime that has severe consequences.”
The FBI-Alexandria, Louisiana, Resident Agency conducted the investigation. Special Assistant U.S. Attorney Robert J. France prosecuted the case.
Inmate Admits Threatening Federal JudgeRead the Press Release
AMARILLO, Texas — Larry Boyd Wren, II, 40, appeared in federal court in Amarillo, Texas, yesterday, and pleaded guilty before U.S. District Judge Mary Lou Robinson to one count of mailing a threatening communication. Wren faces a maximum penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in June 2012, while he was incarcerated in the Brown County jail, having been accused of committing several state offenses, Wren penned a letter to U.S. District Judge Sam R. Cummings, expressing his dissatisfaction with his incarceration. He made a threatening comment in the letter and mailed the letter to Judge Cummings at the Federal Courthouse in Lubbock, Texas.
The investigation is being conducted by the FBI. Assistant U.S. Attorney Christy L. Drake, of the U.S. Attorney’s Office in Amarillo, is in charge of the prosecution.