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19 March 2013
Trio Charged in Armed RobberyRead the Press Release
PHILADELPHIA - Three Philadelphia men are charged with conspiracy and Hobbs Acts robbery in a superseding indictment filed yesterday, announced United States Attorney Zane David Memeger. Marcus Jones, 23, Jonte King, 22, and Maleek Brown, 22, are charged with planning and carrying out the March 14, 2012 armed robbery of the Peralta Grocery Store, located at 6935 Dicks Avenue, Philadelphia. According to the indictment, Brown acted as the getaway driver while Jones and King, brandishing firearms, robbed the store. The indictment further charges Jones and King with the March 24, 2012 armed robbery of the Golden Kingdom II Restaurant, located at 7100 Elmwood Avenue, Philadelphia. The indictment further charges Jones with the March 22, 2012 armed robbery of Aya’s Pizza, located at 7144 Elmwood Avenue, in Philadelphia.
If convicted of all charges, Jones faces a mandatory 57 years in prison up to life; King faces a mandatory 32 years in prison, up to life; Brown faces a mandatory seven years in prison up to life. Each defendant also faces possible fines, mandatory special assessments, and supervised release.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Timber Lake Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Timber Lake, South Dakota man has been charged by Information with Assault by Striking, Beating and Wounding.
Brent Biegler, age 32, was charged by Information on March 7, 2013. He appeared before U.S. Magistrate Mark A. Moreno on March 14, 2013 and pled not guilty to the Information. The maximum penalty upon conviction is 6 months in custody, a $5,000 fine, or both; restitution; and a $10 special assessment.
The charge relates to an allegation that Biegler assaulted a Timber Lake woman on September 15, 2012. The charge is merely an accusation, and Biegler is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case. Biegler was released on bond pending trial. A trial date has not been set.
Three Sentenced in Gift Card SchemeRead the Press Release
LYNCHBURG, VIRGINIA -- A former route driver for a shredding company, and two other associates, were sentenced today in the United States District Court for the Western District of Virginia in Lynchburg on fraud charges.
Mark Allen Mobley, 33, of Concord, Va., Sean Patrick Mixon, 40, of Lynchburg, Va., and Spencer Glenn Payne, 23, of Gladys, Va., all previously pled guilty to one count of credit card fraud for the unauthorized use of gift cards.
According to evidence presented by Assistant United States Attorney Daniel Bubar, while working on his shred route, Mobley would steal discarded but still active gift cards from the shred bins he was hired to empty at an area mail fulfillment company. He then either used these cards for his personal use or gave them to Mixon and Payne, who both accepted the gift cards knowing they were stolen.
In all, Mobley was responsible for intended financial losses in excess of $120,000. Payne caused financial losses of at least $40,000 and Mixon caused financial losses of at least $29,000. Today in District Court, Mobley was sentenced to 21 months incarceration, Payne was sentenced to six months incarceration and Mixon was sentenced to five years of supervised probation.
The investigation of the case was conducted by the United States Secret Service and the Campbell County Sheriff’s Office. Assistant United States Attorney Daniel Bubar prosecuted the case for the United States.
Thirteen Individuals Indicted in Health Care Fraud and Drug Distribution SchemeRead the Press Release
Five Doctors, Four Pharmacists, and Home Health Agency Owner among those indicted in follow-up to the Babubhai Patel case
Thirteen individuals have been charged in a large-scale health care fraud and drug distribution scheme, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Robert L. Corso of the Drug Enforcement Administration, Special Agent in Charge Robert D. Foley III, of the Federal Bureau of Investigation, and Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services.
The superseding indictment, unsealed yesterday, adds 13 new defendants and new charges to a 2011 indictment, which charged Canton Pharmacist Babubhai ‘Bob” Patel with overseeing a massive health care fraud and drug distribution ring at more than 20 pharmacies that he owned and controlled in metro-Detroit.
The 13 new defendants named in the superseding indictment include five doctors, four pharmacists, and a home health agency owner: pharmacist Mehul Patel, 34, of Canton; pharmacist Pradeep Pandya, 49, of Grand Blanc; pharmacist Vikas Sharma, 34, of Windsor; pharmacist Mukesh Khunt, 33, of Toronto; physicians Richard Utarnachitt, 71; of Clinton Township, physician Ruben Benito, 72; of Madison Heights, physician Javaid Bashir, 59, of Jackson, physician Carl Fowler, 60; of West Bloomfield, physician Rajat Daniel, 47; of West Bloomfield, home health agency owner Vinod Patel, 40; of Canton, business associate Atul Patel, 31, of Canton; marketer Anthony Macklin, a.k.a. “Jimbo,” of Detroit; and marketer
Michael Thoran, a.k.a. “Ace,” also of Detroit.The 21-count superseding indictment charges that Babubhai Patel was the owner and controller of approximately 26 Michigan pharmacies. The indictment alleges that Babubhai Patel would offer and provide kickbacks, bribes, and other illegal benefits to physicians to induce those physicians to write prescriptions for patients with Medicare, Medicaid, and private insurance. Patel would also direct that those prescriptions be presented to one of the Patel Pharmacies for billing. In exchange for their kickbacks and inducements, the physicians would write prescriptions for the patients, and bill the relevant insurers for services supposedly provided to the patients, without regard to the medical necessity of those prescriptions and services. The physicians would direct the patients to fill their prescriptions at one of the Patel Pharmacies, where Babubhai Patel and his pharmacists would bill insurers, including Medicare, Medicaid, and private insurers, for dispensing the medications, despite the fact that the medications were medically unnecessary and, in many cases, never provided. Patients were recruited into the scheme by patient recruiters or “marketers,” who would pay kickbacks and bribes to patients in exchange for the patients’ permitting the Patel Pharmacies and the physicians associated with Patel to bill their insurance for medications and services that were medically unnecessary and/or never provided.
The indictment further alleges a conspiracy to distribute controlled substances at the Patel pharmacies to facilitate the submission of false and fraudulent claims to Medicare, Medicaid, and private insurers. According to the indictment, Babubhai Patel and his associates paid physicians kickbacks for prescriptions for controlled substances for their patients, and directed those patients to fill the prescriptions at a Patel Pharmacy. The controlled substances included the Schedule II drug oxycodone (Oxycontin), the Schedule III drug hydrocodone (Vicodin, Lortab) the Schedule IV drug alprazolam (Xanax), and the Schedule V drug cough syrup with codeine. According to the indictment, prescriptions for these drugs were written outside the course of legitimate medical practice. Babubhai Patel and his pharmacists would then dispense the controlled drugs to patients without medical necessity. The distribution of controlled substances in this manner was intended, in part, as a kickback to the patients for agreeing to enable their insurance cards to be billed for medications purportedly dispensed at the Patel Pharmacies. The indictment also alleges that Babubhai Patel and his pharmacists dispensed controlled substances outside the scope of legitimate medical practice to patient recruiters or “marketers,” as a kickback for their efforts in to recruit patients into the scheme.
In addition to his pharmacies, the indictment alleges that Babubhai Patel had an ownership interest in a home health agency managed by his brother, Vinod Patel. The indictment alleges that Vinod Patel, Babubhai Patel, and others bribed physicians and other referral sources for referrals to that home health agency, and then billed the Medicare program for home health services that were medically unnecessary and never provided.
Of the 26 defendants originally charged in the indictment, six, including Babubhai Patel and four pharmacists, were convicted at a trial last summer. Fifteen additional defendants, including six pharmacists and two doctors, have pleaded guilty in the case. The five remaining defendants whose charges were renewed in the superseding indictment are set for trial on June 10, 2013. On February 1, 2013, Babubhai Patel was sentenced to 17 years imprisonment by U.S. District Judge Arthur J. Tarnow.
“Taxpayers fund Medicare and Medicaid to provide health care for needy citizens,” McQuade said. “We hope that doctors and pharmacists will take note that if they exploit these programs for personal profit, they will face serious consequences.”
Robert L. Corso, Special Agent in Charge of DEA's Detroit Field Division stated, "Confronting the illegal diversion and abuse of controlled pharmaceuticals is a top priority of DEA and our law enforcement partners. Today's indictments, particularly of the medical professionals are significant. It is alleged that these individuals abused their positions of trust and endangered the lives of countless people by illegally distributing opiate painkillers and depressants throughout southeast Michigan. This investigation makes it clear that the DEA and our partners in law enforcement will continue to investigate and bring to justice those individuals that are responsible for the illegal distribution of prescription medicines."
FBI Special Agent Foley stated, "Dishonest health care providers and pharmacists who exploit Medicare and Medicaid through fraudulent billing and other schemes will be held accountable for their crimes. The FBI remains committed to investigating this type of fraud and bringing those who abuse the system to justice."
“Schemes involving the illegal diversion and/or distribution of controlled substances go hand and hand with the fraudulent billing of Medicare and other health care programs” said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General – Chicago Regional Office. “The OIG and our law enforcement partners are acutely aware of the potential for those who commit health care fraud to utilize this blended approach when seeking to line their pockets with tax payer dollars. The indictments and arrests announced today illustrate our combined commitment and effort to protect the safety and well-being of the public and as well as the health care programs they rely upon.”
The investigation in this case was handled by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys John K. Neal and Wayne F. Pratt.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Texarkana Teen Sentenced for Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsTEXARKANA, Texas – A 19-year-old Texarkana, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Temetrius Manning pleaded guilty on Oct. 30, 2012, to bank robbery and was sentenced to 84 months in federal prison today by U.S. District Judge Michael H. Schneider. Manning was also ordered to pay restitution in the amount of $3,490.99.According to information presented in court, on Aug. 27, 2012, Manning entered the Wells Fargo Bank in Texarkana, Texas, and presented a threatening note to a bank teller demanding money. Manning then fled the bank with the money before being apprehended shortly after. Manning admitted to the charges following his arrest. He was indicted by a federal grand jury on Sep. 12, 2012 and charged with bank robbery.
This case was investigated by the FBI and the Texarkana, Texas Police Department and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Tampa Woman Sentenced to More Than 9 Years in Federal Prison for Tax Fraud and Identity FraudRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore yesterday sentenced Iris Locklear to nine years and seven months in federal prison for mail fraud. Locklear was also ordered to pay restitution in the amount of $249,686.02, and to serve three years of supervised release, following her release from prison. As part of her sentence, the court also entered a money judgment in the amount of $8,373.29, the proceeds of the offense. Locklear pleaded guilty on December 13, 2012.
According to court documents, between January 2006 and August 2011, Locklear used the mails to execute a scheme to defraud the U.S. Treasury and a number of individual victims. The superseding indictment alleged that Locklear misappropriated others' identifying information and conducted fraudulent financial transactions to enrich herself.
This case was investigated by the Internal Revenue Service Criminal Investigation and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Robert T. Monk.
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Tampa Man Sentenced to 15 Years in Federal Prison for Tax Fraud and Identity TheftRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore sentenced Russell B. Simmons, Jr. yesterday to 15 years in federal prison for defrauding the Internal Revenue Service and for aggravated identity theft. The court also ordered Simmons to forfeit a 2005 Bentley, more than $100,000 in jewelry, $25,000 cash, and more than $118,000 worth of fraudulently obtained tax refunds, which are traceable proceeds of the offense.
Simmons pleaded guilty to one count of wire fraud and one count of aggravated identity theft on December 11, 2012.
According to court documents, starting in the summer of 2011, investigators learned that Simmons was engaging in tax fraud at his business, Simmons Auto Sales. Simmons was selling vehicles in exchange for United States Treasury checks obtained from the filing of fraudulent federal income tax returns. The fraudulently obtained Treasury checks that Simmons received were for a much higher value than the sales price of the vehicles sold. Simmons negotiated the checks and laundered the proceeds through his business accounts. The investigation also revealed that Simmons filed fraudulent tax returns from his computer located at his business, and maintained a ledger that contained numerous personal identifiers associated with the fraudulent filings. On or about July 28, 2011, surveillance video captured Simmons using a pre-paid debit card at a Wal-Mart. Simmons used the card to conduct a transaction totaling $2,050.04, including the purchase of four $500.00 money orders. Investigators learned that on or about July 22, 2011, a tax refund in the amount of $9,997.00 was loaded onto the card. Simmons was also captured on video on or about July 27, 2011, using the same card to withdraw cash at an ATM in Gibsonton.
On or about August 7, 2011, Simmons was captured on video at a Wal-Mart store in Brandon. He made a total purchase of $11,500, including twenty-one $500.00 money orders and two $400.00 money orders. He also withdrew $200.00 in cash. Simmons utilized seven different debit cards. Each of the seven pre-paid debit cards were loaded with funds derived from the filing of fraudulent tax returns in names other than Simmons'. The fraudulently obtained tax refunds loaded onto cards totaled $76,088.20. The money orders from Wal-Mart were paid for with debit cards that were loaded with fraudulent tax refunds. When Simmons negotiated the money orders at the bank, he made them payable to Simmons Auto Sales and endorsed them with his name.
Law enforcement officials interviewed several individuals whose names appeared on the prepaid cards used by Simmons. Each of the victims stated that they did not know Russell Simmons and did not give him permission to use their identity.
In total, the Internal Revenue Service confirmed that Simmons filed approximately 120 false returns, with refunds totaling $1,176,787 for the 2010 tax year. These fraudulent filings were accepted by the IRS and resulted in the payment of refunds. Investigators further determined that Simmons made or attempted to make additional false claims with the IRS that were rejected, with refunds totaling more than $3 million. Records obtained from TurboTax show that returns filed from the IP addresses assigned to Simmons' residence and business transmitted or attempted to transmit federal income tax returns that claimed and attempted to claim approximately $8.9 million in fraudulent refunds.
This case was investigated by the U.S. Secret Service, the Internal Revenue Service Criminal Investigation, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.
This case was brought as part of Operation Rainmaker, an initiative dedicated to combating the growing problem of identity theft and the fraudulent filing of electronic tax claims. This initiative is coordinated and implemented with the cooperation of the U.S. Attorney’s Office, Middle District of Florida, U.S. Secret Service, U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation Division, Federal Bureau of Investigation, and Tampa Police Department.
Talbot County Attorney Indicted in Real Estate Investment Fraud Scheme with over $747,000 in LossesRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Aaron G. Seltzer, age 36, of Trappe, Maryland, on nine counts of wire fraud in connection with a scheme in which he converted funds intended for real estate investments to his personal use. The indictment was returned on March 14, 2013, and unsealed today upon Seltzer’s arrest.
The indictment 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); and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the nine count indictment, Seltzer was a licensed Maryland attorney who handled real estate transactions and maintained an office in Crofton, Maryland. The indictment charges that from January 2008, through 2010, Seltzer offered victims fraudulent investment opportunities then diverted the money intended for the investments for his own benefit. The indictment alleges that Seltzer obtained a total of $747,860 through eight fraudulent transactions and seeks forfeiture of that amount as the proceeds of the scheme.
For example, Seltzer offered to sell an investor 45% of an Anne Arundel County real estate company, claiming that he owned 100% of the stock, assets and liabilities of the company, when in fact, he did not. The investor sent a total of $92,000 to Seltzer, which Seltzer allegedly used for his own benefit. During the summer of 2009, Seltzer contacted a lawyer in New York and represented that a client of Seltzer’s was seeking a business loan. According to the indictment, Seltzer proposed that the loan be secured by a mortgage on three commercial properties located in Virginia, purportedly owned by Seltzer’s client. The New York attorney assembled a group of investors to fund the loan. Seltzer presented the attorney with a fraudulent promissory note, which Seltzer falsely claimed was signed by a representative of his client. Seltzer further falsely represented that he had conducted the closing for the loan and presented the attorney with fabricated closing documents. On behalf of the investors, the attorney wired Seltzer $497,527 to fund the loan, which Seltzer allegedly diverted to his own benefit.
Seltzer faces a maximum sentence of 20 years in prison on each of the nine counts of wire fraud. Seltzer is scheduled to have his initial appearance at 3:45 p.m. today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 praised HSI Baltimore, and the FBI and for their work in the investigation and recognized the Maryland Attorney Grievance Commission for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
Staff Sergeant Pleads Guilty in Army Finance Office MisconductRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today JASON BEGANY, 31, of Erwin, North Carolina, pled guilty before United States District Judge Terrence W. Boyle to converting property of another that came into his possession as a result of his employment with a department of the United States, and aiding and abetting another, all in violation of Title 18, United States Code, Sections 654 and 2.
United States Attorney Thomas G. Walker reflected, “Public corruption such as this defendant’s criminal conduct undermine our nation’s reconstruction efforts overseas and dishonors the sacrifice our military makes every day.”
According to the Criminal Information filed on February 5, 2013, and information provided in open court today, BEGANY, a Staff Sergeant in the United States Army and deployed with the 82nd Finance Battalion to Kabul, Afghanistan, was the Non-Commissioned Officer in Charge of the Camp Eggers Finance Office. Working in his position in the Finance Office, he, along with Sergeants Edwin Vando and Juan Lamboy-Rivera (both of whom previously pled guilty to the same offense), were responsible for ensuring that authorized contract payments were made to vendors, such as Abdul Wasi Faqiri Company, Ltd. who provided a variety of military apparel and equipment.
In May, 2009, a representative from Abdul Wasi Faqiri Company, Ltd., contacted the Camp Eggers Finance Office regarding a possible overpayment of $1,297,959.31. BEGANY, Vando, Lamboy-Rivera, and an interpreter were tasked with reviewing the contract to determine if an overpayment had been made. BEGANY, Vando, Lamboy-Rivera and the interpreter determined that there was not an overpayment but thereafter devised a plan to steal the money. BEGANY, through the interpreter, contacted the vendor, claimed that an overpayment had been made, and directed the vendor to wire the money to a specific bank account. The bank account was set up by the interpreter to facilitate the theft. The interpreter then withdrew approximately $500,000 from the account, met Vando at the gates to Camp Eggers, and gave approximately $400,000 to Vando. Vando concealed the money in a backpack and gave the money to BEGANY. BEGANY¸ Vando and Lamboy-Rivera shared the money. They purchased rugs and shipped some of the rugs to the United States.
BEGANY’s commanding officer became aware of the theft and reported it to authorities. An investigation ensued and on June 13, 2009, law enforcement recovered $297,680 from BEGANY. Law enforcement also recovered money orders from Vando and Lamboy-Rivera as well as the rugs purchased with the money. In addition, law enforcement recovered $897,960 from the interpreter.
At sentencing set for the Court’s June 17th, 2013, term of Court, BEGANY faces up to 10 years imprisonment followed by up to three years supervised release and a fine of up to $250,000.
Vando and Lamboy-Rivera have also been charged and are currently awaiting sentencing.
Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office, commented, "By giving in to greed and dishonesty, SSG Begany tarnished the professional reputation and prestige of the US Armed Forces, while taking advantage of the very Afghan citizens whose trust we were trying to gain. Resulting from a lengthy and exhaustive investigation, this guilty plea reinforces that DCIS agents' relentless pursuit of violators, through multiple resources and partnerships, has proven highly effective in recovering precious American taxpayer dollars stolen or diverted through fraud and corruption."
Investigation of this case was conducted by the Defense Criminal Investigative Service; the United States Department of Army - Criminal Investigation Command, Major Procurement Fraud Unit; and the Federal Bureau of Investigation. Assistant United States Attorney Banumathi Rangarajan prosecuted the case.
Smock, Pa., Postal Officer Charged with Misappropriating Funds, Stealing from MailRead the Press Release
PITTSBURGH, Pa. - Jennifer M. Soltis of Smock, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of misappropriation of postal funds and theft of mail by a postal officer and employee, United States Attorney David J. Hickton announced today.
The two-count indictment named Soltis, 38, as the sole defendant.
According to the indictment, from Oct. 8, 2012 to January 9, 2013, Soltis, while employed as the Acting Officer in Charge with the United States Postal Service at the Smock, Pa., post office, converted to her own use postal money orders, stamps and cash having a total value of $5,729.65. The indictment also charges that on or about Dec. 9, 2012, Soltis embezzled a Walmart gift card from an item of mail.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, 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 Mary McKeen Houghton is prosecuting this case on behalf of the United States.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Six Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA - Six individuals were sentenced on March 18, 2013, in United States District Court in Martinsburg by Judge Gina M. Groh.
United States Attorney William J. Ihlenfeld, II, announced that:
ERIC LAMONT DAVIS, age 44, of Martinsburg, was sentenced to 92 months imprisonment to be followed by three years of supervised release. DAVIS entered a plea of guilty on October 2, 2012, to “Possession with Intent to Distribute Crack Cocaine.” DAVIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
JENNY DAVIS, age 34, of Martinsburg, was sentenced to 70 months imprisonment to be followed by six years of supervised release. DAVIS entered a plea of guilty on October 1, 2012, to “Distribution of Crack Cocaine within 1,000 Feet of a School” in Martinsburg. DAVIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
SABRINA DEHAVEN, age 30, of Martinsburg, was sentenced to 37 months imprisonment to be followed by three years of supervised release. DEHAVEN entered a plea of guilty on October 1, 2012, to “Possession with Intent to Distribute Cocaine.” DEHAVEN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
This case was prosecuted by Assistant United States Attorney Jarod J. Douglas and former Assistant United States Attorney Thomas O. Mucklow and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
DOMINGO HERNANDEZ-HERNANDEZ, age 29, of Winchester, Virginia, was sentenced to 63 months imprisonment to be followed by three years of supervised release. HERNANDEZ-HERNANDEZ entered a plea of guilty on August 6, 2012, to four counts of “Distribution of Cocaine” and one count of “Possession with Intent to Distribute Cocaine.” HERNANDEZ-HERNANDEZ was remanded to the custody of the United States Marshal pending designation to a Federal institution.
This case was prosecuted by Assistant United States Attorney Paul T. Camilletti and former Assistant United States Attorney Thomas O. Mucklow and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
DANIEL LEE MASON, age 30, of Martinsburg, was sentenced to 13 months imprisonment to be followed by three years of supervised release. MASON entered a plea of guilty on October 24, 2012, to “Possession and Transfer of Stolen Firearms” on May 26, 2011, when MASON pawned two firearms and sold a firearm, all of which had been stolen. MASON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
This was prosecuted by Assistant United States Attorney Robert H. McWilliams and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Sheriff’s Department.
JUAN MARRON-CERDA, age 32, was sentenced to 4 months and 9 days imprisonment. MARRON-CERDA entered a plea of guilty on February 15, 2013, to “Unlawful Reentry into the United States” without Consent from the Department of Homeland Security after having previously been deported. MARRON-CERDA was remanded to the custody of the United States Marshal pending deportation.
This case was prosecuted by Assistant United States Attorney Paul T. Camilletti and was investigated by US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).
San Anselmo Contractor Pleads Guilty to Tax FraudRead the Press Release
SAN FRANCISCO, Calif. – John Kieran Hynes pleaded guilty last week to filing a false tax return, United States Attorney Melinda Haag and IRS-CI Special Agent in Charge Jose M. Martinez, announced.
According to court documents, during 2005, Hynes was the owner of Newtown Construction. Hynes admitted that when he received check payments for contracted construction services rendered during the 2005 tax year, he would either deposit the entire check into his business bank account, cash the entire amount of the check, or cash a portion of the check and deposit the remainder of the check into his business account. The amount Hynes received back in cash when he deposited only a portion of the check was called a “less-cash withdrawal.”
Hynes’ bookkeeper relied on the deposited amounts shown on his monthly bank statements to determine his gross business receipts in 2005. Hynes intentionally did not tell his bookkeeper about the less-cash withdrawals to prevent his bookkeeper from including the less-cash withdrawal amounts among the gross receipts that the bookkeeper tracked in the company accounting records.
In order to file his 2005 tax return, Hynes provided his tax return preparer with the company accounting records prepared by his bookkeeper. Hynes knew those accounting records understated the gross receipts earned under the name Newtown Construction because the gross receipts recorded did not include the less-cash withdrawals.
On his 2005 tax return, Hynes knowingly failed to report additional gross receipts of $214,595 earned by Newtown Construction which resulted in a tax loss to the United States of $66,524.
On June 21, 2012, Hynes, 45, of San Anselmo, California, was charged with four counts of filing a false tax return. According to the plea agreement, he pleaded guilty to one count.
The maximum statutory penalty for each count of making and subscribing to a false income tax return, in violation of Title 26, U.S.C § 7206(1) is three 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.
Special Assistant United States Attorney Charles Parker and Assistant United States Attorney Thomas Moore are prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Rutherford County Sheriff’s Deputy Arrested Forcocaine TraffickingRead the Press Release
Complaint Alleges Armed Deputy Arranged Purchase Of Seven Kilograms of Cocaine
Luis Reynaldo Parra Flores, 35, of Murfreesboro, Tennessee, a deputy with the Rutherford County Sheriff’s Department, was charged in a federal complaint in Nashville yesterday, with conspiring to distribute more than five kilograms of cocaine, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
According to the affidavit in support of the complaint, on March 13, 2013, agents with the Drug Enforcement Administration (DEA) intercepted a courier who arrived at the Nashville International Airport with seven kilograms of cocaine in his luggage. Federal agents and Metro Nashville drug detectives conducted an undercover operation to identify the individuals who planned to receive the cocaine. The affidavit alleges that Flores met with the cooperator and attempted to take delivery of the cocaine. After he did so, federal agents placed him under arrest and found that he was carrying a firearm and a badge identifying him as a Rutherford County Sheriff’s Deputy.
“The actions of a few corrupt law enforcement officers harms the reputation of the many dedicated men and women who wear the badge with honor,” said U.S. Attorney Jerry E. Martin. “We will always pursue those few who choose to dishonor their badge and will bring them to justice.”
“Flores failed the citizens of Rutherford County and the dedicated employees of the Rutherford County Sheriff’s Office and violated their trust,” said Rutherford County Sheriff Robert Arnold. “We have a black eye and a bruised jaw. I am ashamed of his actions and I apologize to the citizens of Rutherford County. He has tarnished his badge and ruined the trust the citizens placed in him. His employment was immediately terminated and his badge has been destroyed and will never be worn again.”
If convicted, Flores faces a sentence of ten years to life in prison and a $10 million fine.
The case was investigated by the DEA, the 20th Judicial District Drug Task Force and the Metropolitan Nashville Police Department. Assistant United States Attorney Alex Little is representing the government.
A criminal complaint is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Rosebud Man Pleads Guilty to Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Jesse Young, age 36, of Rosebud, South Dakota appeared before U.S. Magistrate Judge Mark A. Moreno on March 15, 2013 and pled guilty to Assaulting, Resisting, or Impeding Certain Officers. The maximum penalty upon conviction is 1 year in custody, a $100,000 fine, or both; 1 year of supervised release; and a $25 special assessment.
The conviction stems from an incident that took place on May 29, 2012, when the victim was escorting Young to a restraint chair. Young was non-compliant and spat at the victim, hitting the victim with saliva on his face and ear.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Rodriguez-Garza Sentenced for Reentry of Deported AlienRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on March 19, 2013, Adan Rodriguez-Garza, 40, of Salinas Hidalgo, Mexico, pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of reentry of deported alien.
Judge Hovland sentenced Rodriguez-Garza to serve one year and one day in federal prison.
On Jan. 8, 2013, Rodriguez-Garza was a passenger in a vehicle involved in a traffic accident in Williams County, N.D. U.S. Border Patrol officials discovered that Rodriguez-Garza was a citizen of Mexico and in the United States illegally. Rodriguez-Garza had been convicted of aggravated assault in Texas state court on Jan. 8, 1997, and was deported from the United States on Jan. 15, 1997.
The case was investigated by the U.S. Border Patrol and the N.D. Highway Patrol.
Assistant U.S. Attorney David Hagler prosecuted the case.
Rockford Man Charged with Fraud Involving Fictitious Money Orders Exceeding $500,000Read the Press Release
ROCKFORD — A Rockford, Ill. man was indicted by a federal grand jury today for producing and passing fictitious money orders. BRADLEY SHERMAN HAMPTON, 53, was charged with nine counts of fraudulently producing and passing fictitious financial instruments that appeared to be issued under the authority of the United States Department of the Treasury. The nine fictitious money orders, totaling $547,578, were dated between July 15, 2009 and Oct. 14, 2009.
Hampton is scheduled to appear at the Federal Courthouse in Rockford on Friday, March 22, 2013, at 11:00 a.m., for arraignment. The arraignment will be conducted by United States Magistrate Judge P. Michael Mahoney.
The indictment was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Frank Benedetto, Special Agent-in-Charge of the Chicago Field Office of the U.S. Secret Service, Department of Homeland Security; and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Members of the public are reminded that a criminal indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt of the defendant beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Indictment
Rochester Man Sentenced for Swindling $11 Million from InvestorsRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 35-year-old Rochester man was sentenced for swindling more than $11 million through an investment scam. On March 18, 2013, United States District Court Judge Ann D. Montgomery sentenced Jason Michael Meyer to 60 months in federal prison on one count of wire fraud and one count of money laundering. Meyer was charged on August 21, 2012, and pleaded guilty on September 18, 2012.
In his plea agreement, Meyer admitted that he started an investment company, 3 Hooligans Investment Properties, LLC (3 Hooligans), in 2007. Meyer then represented that he was an experienced investor and began soliciting people to invest their money with 3 Hooligans. He promised his clients both significant and rapid returns for their investments, with little or no risk. He deposited their money into a bank account he opened at Wells Fargo. Instead of investing their money, however, Meyer often used the funds to pay for his personal expenses, including payments on his house in Rochester, family vacations, and car payments on his wife’s BMW. To continue the scheme, Meyer found new clients and used their money to pay previous clients.Until the fraudulent scheme was discovered in 2010, Meyer participated in approximately 30 transactions of money laundering and 30 transactions of wire fraud, which together, resulted in losses exceeding $11 million.
This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
The U.S. Attorney’s Office wants to remind people to protect themselves from investment fraud. For more information, visit http://www.stopfraud.gov/protect-securities.html.Rhode Island Man Sentenced to 18 Months in Prison for Narcotics OffenseRead the Press Release
March 19, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that EDWARD PREZIOSO, also known as “Wu Loc,” 25, of Westerly, R.I., was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 18 months of imprisonment, followed by one year of supervised release. On December 14, 2012, PREZIOSO pleaded guilty to one count of using a telephone to facilitate a narcotics felony.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven.
On February 6, 2012, PREZIOSO was intercepted over a court-authorized wiretap discussing the acquisition and distribution of crack cocaine with a co-defendant in New Haven.
On April 9, 2012, a grand jury returned an indictment charging 18 individuals, including PREZIOSO, with narcotics distribution offenses stemming from this investigation. To date, nine of the defendants have pleaded guilty. The other nine defendants are detained while awaiting trial.
With respect to the defendants awaiting trial, 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.
This case was being investigated by the FBI’s New Haven Safe Streets Task Force, which includes officers from the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The investigation was significantly assisted by the Connecticut State Police, the United States Marshals Service and the Westerly (R.I.) Police Department.
The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Retired Henderson Fireman Sentenced to Prison for Tax EvasionRead the Press Release
LAS VEGAS, Nev. – A retired Henderson fireman convicted by a jury in October of five counts of willful tax evasion and one count of filing a false and fictitious tax return, has been sentenced to 21 months in prison, three years of supervised release, and ordered to pay the IRS $177,310 in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Dwight C. Jackson, 53, of Henderson, was sentenced on March 18, 2013, by Senior U.S. District Judge Philip M. Pro. Jackson is released on a personal recognizance bond and must report to federal prison by July 24, 2013.
“If you knowingly cheat on your taxes, you will likely be convicted of a felony offense and will go to prison,” said U.S. Attorney Bogden. “Cheating on your taxes is never a smart option - no matter who you are, your income level, your employer, your profession or your place of business.”
From 2004 through 2008, Jackson was employed as a fireman with the City of Henderson and earned over $113,000 each year. The approximate federal income tax he owed for those years was between $22,000 and $29,000. Jackson willfully attempted to evade the federal taxes he owed by substantially understating his wages on his individual tax return, falsely claiming the earned income tax credit, untimely filing his returns for 2004 to 2006, submitting false W-4 forms with his employer claiming he was exempt from federal tax withholdings, and concealing his actual income from the IRS. For the year 2009, Jackson knowingly presented a false income tax return which contained a “corrected” W-2 form stating that he earned no wages in 2009 when he truth, he had earned $247,492 that year from the City of Henderson.
According to the evidence presented by the government at trial, Jackson carried out his scheme with the help of a southern California man, James Mattatall, whom he met at a sovereign citizen’s meeting in Las Vegas and whom prepared Jackson’s tax returns. Sovereign citizens take the position that they are answerable only to common law and are not subject to any statutes or proceedings at the federal, state or municipal levels. Sovereign citizens do not recognize U.S. currency and believe most forms of taxation are illegitimate.
“For all of us in public service, we are profoundly aware that our salaries come from taxes,” said Paul Camacho, Special Agent in Charge of IRS Criminal Investigation in Nevada. “It would be insulting to all the hard working Americans who paid these taxes for any of us to willfully evade paying our fair share. This sentence is a strong message to anyone who chooses satisfying greed over duty.”
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Gregory Damm.
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.
Rapid City Woman Pleads Guilty to Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Raylene C. Chips, a/k/a Raelene C. Chips, a/k/a Raelene C. Chipps, age 24, of Rapid City, South Dakota appeared before U.S. Magistrate Judge Mark A. Moreno on March 14, 2013, and pled guilty to a Superseding Information charging her with Simple Assault. The maximum penalty upon conviction is 6 months’ imprisonment, a $5,000 fine or both, and a period of supervised release of not more than 1 year.
The conviction stems from an incident on the 4th day of May, 2012 when Chips was riding in a car in Mission, South Dakota and the vehicle came upon two women walking along the road and stopped. Two occupants of the vehicle exited and confronted the victim. A fight ensued and Chipps joined in the assault. As a result, the victim sustained a broken jaw, among other injuries.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered. A sentencing date has not been set. The Defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Plymouth Man Pleads Guilty to Smuggling Thousands of Rounds of Ammunition to the UkraineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 37-year-old Plymouth man pleaded guilty to smuggling ammunition from the United States to the Ukraine. Paul Kalash pleaded guilty to one count of smuggling goods from the United States. Kalash, who was charged on February 11, 2013, entered his plea before U.S. District Court Chief Judge Michael J. Davis.
On February 22, 2011, U.S. Custom and Border Protection (“CBP”) agents seized two packages shipped by Kalash to the Ukraine containing a firearm stock and 2,600 rounds of assorted ammunition. Packages seized on March 6 and 10, 2011, each contained 1,700 rounds of ammunition. And several packages seized on April 1, 2011, contained 2,850 rounds and 300 9-millimeter shell cases.
On March 7, 2011, CBP sent Kalash a notice of seizure, explaining that his packages were seized, and that a license was required to export ammunition. On April 3, 2011, Kalash responded and requested that the ammunition be returned to him. In his letter, Kalash argued that he was sending the items for the purpose of providing his friend with better marksmanship competition-grade ballistics.Following his receipt and acknowledgement of the letter, on May 6, 2011, CBP seized yet another package sent by Kalash containing 950 rounds of assorted ammunition. In addition, Kalash admitted that he shipped other packages to the Ukraine during this time period about which the government was not fully aware.
For his crime, Kalash faces a potential maximum penalty of ten years in federal prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and CBP. It is being prosecuted by Assistant U.S. Attorney Charles J. Kovats.Parmalee Man Arraigned on Sexual Abuse ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a superseding indictment for Aggravated Sexual Abuse of a Child, Abusive Sexual Contact of a Child, and Abusive Sexual Contact of a Child While Required to Register as a Sex Offender has been filed against a Parmalee, South Dakota man.
Randy Never Misses A Shot, age 48, was indicted by a federal grand jury on March 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 15, 2013, and pled not guilty to the superseding indictment. The maximum penalty upon conviction is life imprisonment. The charges are merely accusations and Never Misses A Shot is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy Morley is prosecuting the case. Never Misses A Shot was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Newtown Man Sentenced to 20 Years in Federal Prison for Producing Child PornographyRead the Press Release
March 19, 2013David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that DAVID CSANADI, 36, of Newtown, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 240 months of imprisonment, followed by 15 years of supervised release, for producing child pornography.
According to court documents and statements made in court, in 2006 and 2007, CSANADI sexually abused three female children, videotaped the abuse and maintained the tapes at his home in Newtown. All three children were prepubescent minors under the age of 12 at the time of the abuse. One child was approximately 18 months old at the time of the abuse.
In addition to filming and maintaining video tapes of the sexual abuse that he inflicted on female children, CSANADI downloaded from the Internet and obtained other images and videos of child pornography on his home computer.
“Working with the FBI, the Connecticut Child Exploitation Task Force and our other law enforcement partners, the U.S. Attorney’s Office is committed to protecting children from sexual exploitation and removing sexual predators from the community,” stated U.S. Attorney Fein. “I commend the Newtown and Monroe Police Departments for their investigative efforts, and the Danbury State’s Attorney’s Office for the critical assistance it has provided to the investigation and prosecution of this heinous but important case.”
“The sexual abuse of children and production of child pornography are detestable crimes, and the harsh reality of it all is that those who commit these unspeakable crimes live and work among us,” stated Special Agent in Charge Mertz. “The Connecticut Child Exploitation Task Force’s devotion to identifying those who commit these monstrous crimes and to bringing them to justice remains, and always will remain, resolute.”
CSANADI has been detained since April 15, 2011, when he was arrested and charged with multiple state child sexual exploitation offenses.
On November 2, 2012, CSANADI pleaded guilty in federal court to one count of production of child pornography. In January 2013, he pleaded guilty in state court to the charges of sexual assault in first degree, illegal sexual contact with a minor and possession of child pornography. CSANADI is scheduled to be sentenced in state court next month.
This matter was investigated by the Federal Bureau of Investigation, Connecticut Child Exploitation Task Force, and the Newtown and Monroe Police Departments. The case was prosecuted by Assistant United States Attorneys Neeraj Patel and Krishna Patel.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Jersey Man Sentenced to 10 Years in Prison for Luring Teen to Pennsylvania, Downloading Images of Child Sex AbuseRead the Press Release
NEWARK, N.J. – A Sussex County, N.J., man was sentenced today to 120 months in prison for luring a teenage boy to Pennsylvania for illegal sexual activity, as well as downloading and receiving images on his home computer of children being sexually abused, U.S. Attorney Paul J. Fishman announced.
Robert Mucha, 58, of Newton, N.J., previously pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to one count of enticing a minor to engage in criminal sexual activity and one count of receiving child pornography. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed and statements made in court:In October 2010, Mucha convinced a teenage boy to travel from New Jersey to Pennsylvania to spend the day with him and then sleep over at Mucha’s apartment in Stroudsberg, Pa. After he was arrested in July 2012, Mucha admitted to sexual contact with the teenager.
Prior to his arrest, Mucha worked as a volunteer Emergency Medical Technician in Andover, N.J. He also previously taught band and Bugle Corps to teenagers in Belleville, N.J., and Lakewood, N.J.In addition to the prison term, Judge Walls sentenced Mucha to serve a lifetime of supervised release – during which his access to computers, the Internet and children will be restricted – and ordered him to pay $10,000 in restitution. Mucha is also required to register as a sex offender.
Today’s sentencing is part of Operation Holitna, an ongoing HSI-led investigation that originated in Boston. U.S. Attorney Fishman credited special agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to sentencing. He also thanked the U.S. Attorney’s Office for the District of Massachusetts and the HSI Boston office.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or its online tip form at http://www.ice.gov/tips Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children at 1-800-843-5678 or http://www.cybertipline.com.
The government is represented by Assistant U.S. Attorney Andrew J. Bruck of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Assistant Federal Public Defender Carol Gillen Esq., NewarkMission Woman Indicted for Burglary and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota woman has been indicted by a federal grand jury for Second Degree Burglary and Larceny.
Monique Flood, age 20, was indicted by a federal grand jury on February 13, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 15, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 15 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Flood is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Flood was released on bond pending trial. A trial date has been set for April 30, 2013.
Miami Man Convicted in $3.3 Million Identity Theft Tax Refund Fraud SchemeRead the Press Release
Defendant Filed Approximately 400 Fraudulent Tax Returns Seeking Refunds
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, announced that a jury convicted Charlton Escarmant, 29, of Miami, of one count of conspiracy to submit false claims to the Internal Revenue Service, in violation of Title 18, United States Code, Section 287, one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing has been scheduled for June 17, 2013, before U.S. District Judge Lenard. At sentencing, he faces a possible statutory maximum sentence of 24 years in prison.
On October 5, 2012, Charlton Escarmant and co-conspirator Arthy Icart were charged in a five-count indictment for their participation in an identity theft tax refund scheme. According to testimony and evidence presented at trial, some of the personal identification information used by Escarmant and Icart to file fraudulent tax returns was stolen from Tallahassee Community College’s (TCC) financial aid office. In fact, more than 3,200 names found on a computer in Escarmant’s possession came from TCC.
To execute the scheme, Escarmant filed tax returns using the stolen identification information and also in his own name and created false W-2 forms with fictitious employer information. Escarmant’s W-2 form falsely claimed that he was a veterinarian at Central Broward Animal Hospital. In fact, however, Escarmant never worked at the Central Broward Animal Hospital.
At the time of their arrest, Escarmant and his co-conspirator unlawfully possessed approximately 22 pre-paid tax debit cards in the names of other individuals. In total, during the course of the scheme, the defendant and his co-conspirator submitted approximately 400 fraudulent tax returns to the Internal Revenue Service, seeking more than $3.3 million in tax refunds.
Co-conspirator Arthy Icart pled guilty on January 17, 2013 to charges of conspiracy to file fraudulent claims, access device fraud, and aggravated ID theft. Sentencing is scheduled for April 1, 2013 before U.S. District Judge Lenard.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI and the North Miami Beach Police Department. Mr. Ferrer also thanked the Tallahassee Community College for their cooperation during this investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael B. Nadler and Elina Rubin-Smith.
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.
Mexican National Gets Five Years for Illegal Possession of FirearmRead the Press Release
WICHITA, KAN. – A Mexican national has been sentenced to more than five years in prison for illegal possession of firearms, U.S. Attorney Barry Grissom said today.
Guadalupe Burciaga-Alcantar, 39, lived in Wichita but is from Ojinaga, Mexico. He was arrested in October 2012 after a traffic stop by deputies of the Sedgwick County Sheriff’s Department in which two loaded handguns were recovered from a pickup truck Burciaga was driving. Burciaga admitted to the deputies the firearms were his.
Burciaga pleaded guilty in December to the charge of illegal alien in possession of a firearm. He was sentenced Monday by U.S. District Judge Monti L. Belot to 65 months in a U.S. prison to be followed by deportation to Mexico. The same federal statutes that prohibit felons from possessing firearms also prohibit persons unlawfully in the United States to possess firearms, Grissom said.
“The U.S. Attorney’s office in Kansas aggressively enforces laws that prohibit the unlawful possession of firearms,” Grissom said. “Whether they are felons or have no status in the U.S., if they possess firearms they should expect to be prosecuted and incarcerated.”
Grissom praised the Sedgwick County Sheriff’s office and Homeland Security’s Enforcement and Removal Operations for their investigation of the case and Assistant U.S. Attorney Brent Anderson for his prosecution.Maryland Resident Enters Plea to Drug ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA — A 34-year old Oxon Hill, Maryland, resident entered a plea of guilty on March 12, 2013, in United States District Court in Martinsburg before Magistrate Judge David J. Joel.
United States Attorney William J. Ihlenfeld, II announced that: RONALD PAUL LAWSON, JR., entered a plea of guilty to “Distribution of Cocaine Base within 1,000 Feet of Winchester Avenue Elementary School.” LAWSON, who is free on bond pending sentencing, faces at least 1 and up to 40 years imprisonment and a $2,000,000 fine.
This case was prosecuted by Assistant United States Attorney David J. Perri and former Assistant United States Attorney Thomas O. Mucklow and investigated by the Eastern Panhandle Drug & Violent Crimes Task Force. The Task Force consists of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department.
Martinsburg Resident Enters Plea to Firearms ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA - A 26 year old Martinsburg, West Virginia, resident entered a plea of guilty on March 11, 2013, in United States District Court in Martinsburg before Magistrate Judge David J. Joel.
United States Attorney William J. Ihlenfeld, II, announced that: BRANDON LEE SPAUR entered a plea of guilty to “Possession of a Firearm by a Convicted Felon.” SPAUR, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine on this charge.
This case was prosecuted by Assistant United States Attorney Paul T. Camilletti and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
Manhattan U.S. Attorney Announces Charges Against 37 Members of Nationwide Marijuana and Cigarette Distribution ConspiracyRead the Press Release
Illegally Distributed Nearly 44 Million Cigarettes, Which Resulted in Over $7 Million in Lost Tax Revenue
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced today the unsealing of a three-count Indictment charging 37 members of a Chinese marijuana and contraband cigarette trafficking organization (the “Organization”) that operated throughout the United States. The Organization allegedly conspired to manufacture and distribute over $45 million worth of marijuana, and to illegally distribute nearly 44 million cigarettes, which resulted in over $7 million in lost tax revenue. Thirty-two members of the Organization were arrested this morning in New York, New Jersey, California, Tennessee, Alabama, and Rhode Island as part of a coordinated operation involving federal, state, and local law enforcement officers. The Indictment has been assigned to U.S. District Judge Miriam Goldman Cedarbaum; the 14 defendants arrested in New York and New Jersey will appear before Judge Cedarbaum this afternoon in Manhattan federal court. The remaining 18 defendants will appear before U.S. Magistrate Judges in the Eastern and Central Districts of California, the Northern District of Alabama, the Middle District of Tennessee, and the District of Rhode Island. One additional defendant is scheduled to surrender in Arkansas this afternoon, and four others are still at large.
Manhattan U.S. Attorney Preet Bharara said: “Today’s arrests deal a blow to an organization that allegedly conspired to manufacture multi-million dollar quantities of marijuana that they would then distribute, along with millions of contraband cigarettes, nationwide. Thanks to the coordinated efforts of federal, state, and local law enforcement around the country, this alleged supply chain has effectively been broken.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr., said: “This alleged drug trafficking organization was a highly organized network. These allegedly corrupt people were savvy in their alleged scheme to move hundreds of thousands of dollars and drugs throughout the United States. While some may mistakenly perceive smuggling and trafficking in narcotics as a path to a quick profit, these arrests demonstrate the serious consequences that await those who engage in the smuggling and sale of illegal drugs.”
As alleged in the Indictment and other court documents:
Since 2010, the defendants were part of a nationwide organization that produced and distributed marijuana, and distributed contraband cigarettes from California to various places throughout the U.S., including the New York City area. PAUL COONG LAY and his brother CHAN COONG LAY maintained a network of marijuana grow locations throughout California and elsewhere. For example, in October 2012, law enforcement executed a search warrant at one such location in Porterville, California – after observing PAUL and CHAN LAY visiting the premises – seizing more than 200 pounds of processed marijuana and approximately 185 live marijuana plants.
Marijuana grown by the LAY brothers, along with contraband cigarettes, were then shipped by tractor trailer from the Los Angeles region throughout the U.S., using a trucking company owned and operated by STEVEN QU and his wife YUN XING (the “Trucking Company”). QU’s trucks were followed by law enforcement to locations in Colorado, Tennessee, and New York, where they off-loaded hundreds of pounds of marijuana and/or cases of cigarettes. For example, in the New York area, law enforcement observed on numerous occasions WAI C. AU-YEUNG, RU XIANG MEI, and XIUZHEN LIN meet and unload QU’s trucks at a warehouse in Jersey City, New Jersey. AU-YEUNG, MEI, and LIN then transported the contraband to locations in Manhattan and Brooklyn, where it was distributed. During the course of the investigation, law enforcement seized in excess of 120 pounds of marijuana, 1,816 cartons of contraband cigarettes, and 545,860 counterfeit cigarette tax stamps from the New York arm of the Organization alone.
In the Tennessee area, law enforcement observed on various occasions DENISE RAGLAND and others unloading the trucks at a warehouse maintained by QU’s Trucking Company. Earlier this month, for example, law enforcement observed CHAN LAY – who had traveled from California to Tennessee to supervise the shipment – and OAKLEY SIMPSON, among others, unloading one of the Organization’s trucks. Law enforcement subsequently arrested SIMPSON, who was in possession of approximately 80 pounds of marijuana.
Money generated by the sale of the Organization’s marijuana and contraband cigarettes was also laundered by members of the Organization through a variety of means. For example, members regularly flew from New York and elsewhere to California carrying hundreds of thousands of dollars. In October 2011, for instance, law enforcement seized approximately $180,000 from WAI C. AU-YEUNG, XIUZHEN LIN, and HOA PHAN as they were about to board a flight from New York to California. Other members of the Organization shipped cash from the East Coast back to California using the trucks registered to QU’s Trucking Company. For example, in September 2012, law enforcement seized approximately $110,000 in cash from PAUL LAY, which was concealed in cardboard shipping boxes otherwise filled with lollipops.
Other members of the Organization laundered proceeds of the marijuana and cigarette operations through financial institutions. For example, in September 2012, law enforcement seized approximately $114,000 from TONGMIAO YAN. According to YAN, those funds belonged to JIA QIAO. A review of QIAO’s bank records, among other sources of information, revealed that QIAO and her husband, JAMES CHEN, have been laundering funds for the Organization through two entities that they control.
In conjunction with today’s arrests, law enforcement also seized the contents of 17 banks accounts used by the Organization to launder the proceeds of its marijuana and contraband cigarette distribution business, including accounts belonging to STEVEN QU’s Trucking Company and to the entities controlled by JAMES CHEN and JIA QIAO. Law enforcement also seized a number of vehicles, including four tractor trailers registered to the Trucking Company.
A chart containing the names, ages, residence information, charges against the defendants, and the maximum penalties they face, is attached.
Mr. Bharara praised the outstanding investigative work of ICE HSI. He also thanked the Nassau County Police Department, the Los Angeles Police Department, the U.S. Marshals, and the Internal Revenue Service – Criminal Investigations for their assistance in the case.
This case is being handled by the Office’s Narcotics Units. Assistant United States Attorneys Matthew L. Schwartz, Paul Monteleoni, and Eun Young Choi are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Paul Coong Lay, et al. Indictment
Manhattan U.S. Attorney Announces Arrest of Florida Investment Adviser in Connection with $8 Million Securities Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Richard T. Vignogna, the Acting Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that CRAIG L. BERKMAN was arrested today for perpetrating two separate securities fraud schemes involving the purported sale of pre-Initial Public Offering (“IPO”) shares of Facebook, Inc. stock that neither he nor the entities he controlled owned. BERKMAN received a total of at least $8 million from these schemes – the majority of which he misappropriated for his own benefit. He was arrested at his home in Odessa, Florida, this morning, and is expected to be presented today in federal court in Tampa, Florida.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Craig Berkman seized on the interest in a highly coveted investment opportunity to swindle investors out of millions. With his arrest, this Office continues our work to identify the perpetrators of financial fraud, hold them accountable, and protect investors.”
USPIS Acting Inspector-in-Charge Richard T. Vignogna said: “Today's arrest of Mr. Berkman for allegedly using the popularity of the social networking site Facebook to defraud investors out of millions of dollars is an example of the investigative tenacity of Postal Inspectors to bring to justice anyone who uses the US Mail for fraud.”
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against Berkman.
According to a criminal complaint unsealed today in Manhattan federal court:
Beginning in December 2010, BERKMAN created Ventures Trust II, LLC, a Delaware private equity investment limited liability company that he also controlled. He falsely represented to investors that Ventures Trust II owned shares in Facebook, which at the time was privately held. Owning interests in Facebook stock was a particularly attractive opportunity for investors because of the expectation that it would soon go public through an IPO.
In reality, Ventures Trust II never had any interest in Facebook except for a small indirect interest through another investment fund (“Fund-1”). In early 2012, Fund-1 discovered that Ventures Trust II management had been showing investors a forged letter that purported to be from Fund-1’s lawyer, and which misrepresented Ventures Trust II’s true interest in Fund-1. As a result, Fund-1 terminated Ventures Trust II’s interest.
As recently as August 2012 – after Facebook’s IPO, when investors were beginning to try to redeem their investments – a lawyer acting on behalf of Ventures Trust II wrote to investors to reassure them that the company still owned Facebook stock through Fund-1, and insisted that Ventures Trust II “is not a Ponzi scheme.” Based on misrepresentations by BERKMAN and others, more than 50 investors sent approximately $5.5 million to various accounts in the name of Ventures Trust II, which were controlled by BERKMAN.
In a separate but related fraud, beginning in March 2012, BERKMAN created Face Off Acquisitions LLC, an entity that, according to its offering materials, was designed to acquire a New York-based LLC that already held more than 1 million pre-IPO shares of Facebook (“Fund-2”). BERKMAN told investors that the acquisition would cost approximately $40 to $50 million. He also falsely stated that a prominent billionaire investor had already committed to invest in Face Off, when in fact the billionaire investor had never heard of Face Off. BERKMAN obtained approximately $2.5 million from at least 14 Face Off investors, and then falsely told those investors that Face Off had successfully acquired Fund-2, although he had held only exploratory conversations with Fund-2 intermittently over a period of about two years.
The approximately $5.5 million BERKMAN acquired from the Ventures Trust II investors and the approximately $2.5 million that he acquired from the Face Off investors were subsequently transferred to his personal account. Instead of using the investor funds to acquire shares of Facebook, BERKMAN misappropriated a substantial portion of the money for his own benefit and the benefit of others. He transferred several million dollars of investor funds to lawyers representing him in bankruptcy proceedings, apparently to fund an altogether different settlement with his creditors.
BERKMAN, 71, was arrested at his home in Odessa, Florida. He is charged with two counts of securities fraud and two counts of wire fraud. He faces a maximum sentence of 20 years in prison on each of the four counts in the complaint. He also faces a fine of the greater of $5 million or twice the gross gain or gross loss from the offense on the securities fraud charges, as well as fines of lesser amounts on the wire fraud charges.
Mr. Bharara praised the work of the Criminal Investigators of the United States Attorney’s Office and the USPIS, which jointly investigated this case. He also thanked the SEC.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John J. O’Donnell and Matthew L. Schwartz are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Craig Berkman Complaint
Madison Man Indicted on Counterfeit ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Madison, South Dakota man has been indicted by a federal grand jury for counterfeiting.
Adrian D. Logan, age 25, was indicted by a federal grand jury on March 6, 2013 for Dealing in Counterfeit U.S. Currency and Passing Counterfeit U.S. Currency. He appeared before U.S. Magistrate Judge John E. Simko on March 15, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 20 years imprisonment and a $250,000 fine. The charge is merely an accusation and Logan is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Madison Police Department, the Sioux Falls Police Department, and the United States Secret Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case. Logan was remanded to the custody of the State of South Dakota. A trial date has not been set.
Lower Brule Woman Charged with Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota woman has been indicted by a federal grand jury.
Lauren LaRoche, age 24, was indicted by a federal grand jury on March 13, 2013 for Assaulting, Resisting and Impeding a Federal Officer. LaRoche appeared before U.S. Magistrate Judge Mark A. Moreno on March 14, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 8 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered. The charge is merely an accusation, and LaRoche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. LaRoche was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Lower Brule Man Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Irvin Scott Yazzie, a/k/a Alex Yazzie, age 24, was indicted by a federal grand jury on March 13, 2013 for Assault with a Dangerous Weapon. Yazzie appeared before U.S. Magistrate Judge Mark A. Moreno on March 15, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered. The charge is merely an accusation, and Yazzie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Yazzie was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Loan Fraudster Sentenced to 160 Months in PrisonRead the Press Release
PHILADELPHIA - Allie Speight, 58, of Philadelphia, was sentenced today to 160 months in prison for a loan fraud scheme that included aggravated identity theft, bank fraud, wire fraud, and money laundering. Speight pleaded guilty on April 16, 2012 to orchestrating a scheme to induce others to obtain loans as straw borrowers in return for receiving a percentage of the loans. Co-defendant Jerome Manker received funds from the loans for construction and rehabilitation work that he never performed.
Speight and co-defendant Maurice Thomas would act as brokers, scouting for depressed properties and enticing others to purchase the properties by obtaining loans that were far in excess of the properties' values. Speight and Thomas used a mortgage broker in Pittsburgh to prepare and submit loan applications that contained false W-2 statements and pay stubs, mostly from the fictitious company of "Allied Construction and Development, Corp.," owned by Allie Speight. The mortgage broker, John Polosky, charged elsewhere, received payments from the loan proceeds outside of the payments identified in the HUD-1 settlement sheets for the loans. Speight and Thomas received at least 10-percent of the loan proceeds that they helped to broker. In many cases, Speight and Thomas allegedly created forged letters from the straw borrowers that directed title companies to send the proceeds to Fred A. Johnson, Jr., charged elsewhere, an accountant based in West Philadelphia. Johnson then laundered the loan proceeds by disbursing the monies to various bank accounts according to Speight's and Thomas' directions. By misdirecting the funds to Johnson, the lenders were not aware that the loan monies were ultimately disbursed to individuals not entitled to receive the funds, including Speight, Thomas, and members of Speight's family. More than $3 million in loans were obtained during the course of the conspiracy.
Speight was also charged with a scheme to obtain loans from Wachovia Bank using straw borrowers. Co-defendants Jerome Manker and Andrea McCrea, a former Wachovia employee, submitted loan applications that contained false documents. Over the course of three loans, Manker and McCrae obtained from Wachovia over $300,000 in loan proceeds. In July 2007, after McCrea was no longer working for Wachoiva, McCrea bribed another Wachovia employee to push a third Manker loan using a straw borrower.
In addition to the prison term - 24 months of which is a mandatory term for the aggravated identity theft - U.S. District Court Judge Juan R. Sanchez ordered Speight to pay restitution in the amount of $2,037,700, joint and severally with his co-defendants who have already been sentenced.
Maurice Thomas was sentenced to 78 months in prison; Jerome Manker was sentenced to 51 months in prison; Andrea McCrea was sentenced to 12 months and one day in prison.The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorneys Daniel Velez and Christopher Diviny.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Loan Broker Pleads Guilty in Conspiracy to Fraudulently Obtain over $100 Million in SBA-backed LoansRead the Press Release
SBA Loan Underwriters Relied on False Representations by Borrowers and BrokersBaltimore, Maryland - Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 43, of Falls Church, Virginia, pleaded guilty today to conspiracy to commit bank fraud, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million. Joon Park and others were charged in a second superseding indictment that was returned by a federal grand jury on March 7, 2013.
The guilty plea and indictment were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“SBA underwriters approved $100 million in business loans brokered by Jade Capital based on fraudulent bank statements, checks, gift letters, resumes and tax returns that made it appear as if the borrowers had invested money in the businesses,” said U.S. Attorney Rod J. Rosenstein. “When borrowers and brokers submit false information and fraudulent documents, the underwriting process is defeated and the taxpayers bear the loss.”
“The scope of this audacious scheme to fraudulently secure SBA-backed loans is outrageous,” said Inspector General Peggy E. Gustafson. “The SBA OIG will relentlessly pursue individuals who falsify documents to obtain approval for loans designed to help hard-working Americans realize their dreams of opening a business or expanding their operations. The SBA OIG appreciates the leadership of the U.S. Attorney’s Office and its partnership with the FBI in bringing forth this plea agreement.”
According to his plea agreement, Joon Park and his brother, Loren Park, owned and operated Jade Capital, a loan brokerage company specializing in securing loans for individuals interested in purchasing or refinancing small businesses in the Mid-Atlantic area. According to the indictment, Joon and Loren Park and others under their direction encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.
Joon Park admitted that from 2003 until October 2011, he and others under his direction, including Nick Park (no relation), Joo Hyuk “John” Lee, Sang Hyun Kim, and In Jung Ham, submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients that contained fraudulent documents, including: bank statements for borrowers that were altered to make it look like the borrowers had more cash to inject into the business they were buying than they in fact did; counterfeit cashier’s checks and fake gift letters that made it look like the borrowers had more assets at their disposal to use as down payments than they did; fabricated resumes that made it look like the borrowers had more experience running the businesses they sought to purchase than they did; fake tax returns that made it look like the borrowers had greater income than they did; phony interim financial statements that made other businesses the borrowers owned look more profitable than they were; and a number of other misrepresentations.
The Parks charged a loan brokerage fee to both the financial institutions and the borrowers for assembling and submitting loan application packages that resulted in the issuance of SBA-guaranteed loans. The fees charged to borrowers were hidden from the financial institutions underwriting the loans. The Parks also had undisclosed ownership interests in businesses involved in some of the transactions and received loan proceeds, unbeknownst to the lenders, in a number of transactions. In one instance, the Parks did not have an ownership interest in a company involved in a transaction but persuaded the seller to assign some of the loan proceeds to them and then converted those proceeds to their own personal use.
According to his plea agreement, Joon Park also worked with a settlement attorney to facilitate loan closings for deals that would otherwise fail to meet the lending parameters of the banks making the loans, by misrepresenting to the banks and to the SBA the true amount of money involved in the transactions and/or the true names of the parties taking part in the transactions. In addition to conducting fraudulent closings, this settlement attorney wired money to Jade Capital clients to make it appear as though they qualified for loans, when they did not, and received, at Joon Park’s direction, loan proceeds to repay those loans.
Joon Park faces a maximum penalty of 30 years in prison. As part of his plea agreement, Joon Park will be required to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for May 28, 2013 at 1:00 p.m.
Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, was sentenced to 33 months in prison; and Joo Hyuk “John” Lee, age 39, of Richmond, Virginia, and Sang Hyun Kim, age 35, of Fairfax, Virginia, were each sentenced to three years in prison, for conspiracy to commit bank fraud. Kim’s wife, In Jung Ham, age 30, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Judge Quarles ordered Lee to pay restitution of $1,900,325 and ordered Ham to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively.
In addition to Joon Park, Loren Young Park and Jade Capital & Investments, who were charged previously, the second superseding indictment included two new defendants, Seung E. Oh, a/k/a Sandy Oh, age 44, of Great Falls, Virginia; and Seung Hyun Shin, a/k/a/ Phillip Shin, age 39, of Villanova, Pennsylvania. Oh is an attorney with offices in Annandale, Virginia and the owner operator of Washington Settlement Group, a title company located in Annandale. From 2004 through 2008, Shin was the owner and operator of Cosmopolitan Title and Settlements, LLC, a title company located in Rockville, Maryland. The indictment alleges that the defendants engaged in a conspiracy to commit bank fraud, bank fraud and money laundering, resulting in losses of more than $102 million.
The defendants face a maximum sentence of 30 years in prison for the bank fraud conspiracy and for each count of bank fraud; and 20 years in prison for each count of money laundering. Seung Hyun Shin had his initial appearance on March 18, 2013, and Seung E. Oh is scheduled to have her initial appearance on April 5, 2013, in U.S. District Court in Baltimore. Loren Park is believed to be in Korea.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
These law enforcement actions are part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the SBA Office of Inspector General, U.S. Postal Inspection Service and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who are prosecuting the case.
Lapwai Man Admits Illegally Possessing FirearmRead the Press Release
COEUR D’ALENE – Alex James Ellenwood, 24, of Lapwai, Idaho, pleaded guilty today in United States District Court in Coeur d’Alene to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on September 5, 2012, Ellenwood was arrested at a Clearwater County campground on an outstanding warrant. During a search incident to the arrest, law enforcement found a Ruger .44 pistol in Ellenwood’s backpack. Ellenwood is prohibited from possessing firearms due to his 2008 federal conviction for assault with a deadly weapon, a felony punishable by a term of imprisonment exceeding one year. Ellenwood agreed to forfeit the firearm found in his possession.
The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Ellenwood is scheduled to be sentenced on June 11, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
The case was investigated by Nez Perce Tribal Police, Clearwater County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Justice Department Settles with Georgia School District to Re-Zone Schools and Ensure DesegregationRead the Press Release
The Department of Justice announced last week that it has entered into a settlement agreement with the McDuffie County Schools in Georgia to modify the zoning of the district’s elementary schools and ensure the school district complies with other obligations to desegregate its schools in the areas of student assignment, faculty recruiting and assignment and transportation.
The consent order, if approved by the court, requires the district to alter the elementary school zones in order to increase the number of African-American students in the de jure white school, where the enrollment has remained majority white and disproportionate to the racial composition of the district as a whole. The consent order also requires the district to eliminate racial disparities in how teachers and staff are assigned to the district’s schools and to engage in affirmative efforts to recruit African-American personnel. The consent order also contains provisions for student transfers, gifted and talented programs, discipline, transportation, and monitoring and reporting. Finally, the district will establish a diversity advisory council to evaluate and monitor the implementation of the zone changes and the district’s continued efforts toward desegregation. The consent order allows the district, upon demonstration of successful implementation of the provisions in the order, to move for unitary status on Dec. 15, 2015.
“We applaud the McDuffie County Schools for agreeing to take prompt voluntary corrective actions to ensure that it fully meets its desegregation obligations in three years,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “The Civil Rights Division will continue to work to ensure that McDuffie and all school districts under federal desegregation orders fully eliminate the vestiges of segregation in their schools.”
Edward J. Tarver, U.S. Attorney for the Southern District of Georgia, said, “I admire the McDuffie County School District’s efforts in working to amicably resolve what were once highly contentious issues in our society. The United States Attorney’s Office will provide assistance to the School District and the Civil Rights Division to ensure continued compliance with this Consent Order.”
The enforcement of the Equal Protection Clause and Title IV of the Civil Rights Act of 1964 in school districts is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt
Justice Department Settles Service Animal Case Against Connecticut SchoolRead the Press Release
March 19, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that The Learning Clinic, a private school in Brooklyn, Conn., has agreed to pay $35,000 as compensation to a family for denying a child access to the school with his service animal. The school also has agreed to train its employees and adopt new policies to ensure compliance with the provisions of the Americans with Disabilities Act (ADA).
The Learning Clinic is a private school in Brooklyn that offers educational and clinical services through residential boarding and day school programs. The settlement resolves a Department of Justice investigation into the school’s service animal policies and practices under the ADA and the Fair Housing Act (FHA). The Department of Justice initiated this investigation after the parents of a minor child attending the school alleged that the school discriminated against their child on the basis of disability by denying the child equal access to the school’s campus with his service dog. The school failed to provide reasonable modifications to permit the child to attend school accompanied by his service dog and to live with his service dog in his room on TLC’s campus.
Under Title III of the ADA, schools are places of public accommodation and must reasonably modify policies, practices, and procedures, to allow children with disabilities equal access to education, school services, and school facilities. In addition, the FHA prohibits discrimination in school housing based on race, color, religion, national origin, sex, disability, and familial status.
This matter was handled by Assistant United States Attorney Ndidi Moses of the District of Connecticut, with the assistance of the Disability Rights and Housing Sections of the U.S. Department of Justice Civil Rights Division.
Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office by calling 203-821-3700. Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD).
Complaints about housing discrimination can also be made by phone to the Housing Discrimination Tip Line at 1-800-896-7743 or by email at [email protected].
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Jury Convicts Edmond Man of Transporting and Downloading Child PornRead the Press Release
Oklahoma City, Oklahoma – Late last week, JORY MICHAEL NANCE, 28, of Edmond, Oklahoma, was convicted by a jury of 57 out of 59 counts of transportation, receipt, and attempted receipt of child pornography, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The jury convicted Nance of transporting child pornography across state lines as he traveled with his job as well as transferring child pornography to an undercover Edmond Police Department detective through peer-to-peer file sharing. The jury also convicted Nance of downloading and attempting to download child pornography through peer-to-peer file sharing.
Nance was charged in a Superseding Indictment returned by a federal grand jury on January 22, 2013. United States District Court Judge Joe Heaton will sentence Nance in approximately three months. For each count, he faces at least five years and up to 20 years in prison, a $250,000 fine, and 5 years to life supervised release. Upon release from prison, Nance will have to register as a sex offender.
This case was part of Project Safe Childhood, the flagship program in the Department of Justice’s National Strategy for Child Exploitation Prevention and Interdiction, and was the result of an investigation conducted by the Edmond Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Brandon Hale and Chris M. Stephens.
Jeannette Man Charged with Possessing Sexually Explicit Images and Videos of ChildrenRead the Press Release
PITTSBURGH, Pa. - A Westmoreland County man has been indicted by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The one-count indictment named Timothy Kelly, 38, as the sole defendant.
According to the indictment, on or about Feb. 11, 2013, Kelly possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, 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 Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Greensburg Police Department and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jason Bryan Martin Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 18, 2013, before U.S. District Judge Sam E. Haddon, JASON BRYAN MARTIN, a 29-year-old resident of Helena, appeared for sentencing. MARTIN was sentenced to a term of:
Prison: 12 months
Special Assessment: $100
Restitution: $10,051.46
Supervised Release: 3 years
MARTIN was sentenced in connection with his guilty plea to theft of government property.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan R. Whittaker, the government stated it would have proved at trial the following:
From February 25, 2002, until September 16, 2005, MARTIN was enlisted in the United States military. He was discharged on September 16, 2005, under "Other than Honorable" conditions.
Just prior to his discharge from the military, MARTIN purchased fictitious DD-214 forms from a fellow solider at Miramar Air Force Base who was responsible for providing discharge documents. These fictitious DD-214 forms showed MARTIN's discharge status as "Honorable" rather than the correct discharge status of "Other than Honorable." MARTIN then created an ink stamp signature which he then used to authenticate the fictitious DD-214 forms.
On December 7, 2006, MARTIN fraudulently re-entered the military by submitting one of these fictitious DD-214 forms to the Montana Army National Guard which reflected his prior discharge status as "Honorable." Based upon the fraudulent DD-214 form, MARTIN was re-enlisted into the Montana Army National Guard. MARTIN admitted to investigators that he created and submitted the fraudulent form for the purpose of re-enlisting in the military.
Approximately one month later, MARTIN requested Montgomery GI Bill ("MGIB") educational benefits by submitting an Application For VA Education Benefits, VA Form 22-1990. Also in support of his application, MARTIN submitted a 1606 Educational Application Form and Notice of Basic Eligibility Form attesting to his eligibility in the military for education benefits. Based upon his fraudulent representations, MARTIN was awarded MGBI benefits.
MARTIN received regular monthly (except during the summer) benefit payments under MGIB from January 2007, until May 14, 2009. Based upon his fraudulent re-enlistment, MARTIN obtained more than $10,000 in education benefits which he was not entitled to receive.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MARTIN will likely serve all of the time imposed by the court. In the federal system, MARTIN 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 U.S. Department of Veterans Affairs - Office of Inspector General.
Indictment Charging Three Luzerne County Residents for Firearms Straw Purchases, Unlawful Possession of Firearms and Cocaine Distribution UnsealedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an indictment returned on March 12, 2013 charging three Luzerne County residents with their alleged roles in a conspiracy to make straw purchases of firearms and other firearms charges, including possession of a machine gun and distribution of cocaine was unsealed Monday following their arrest.
According to United States Attorney Peter J. Smith, Jovon Martin, age 31, of Kingston, was charged with conspiracy to make false statements in connection with the purchase of a firearm, prohibited possession of a firearm, possession of a machine gun in furtherance of drug distribution, possession of an illegal weapon (machine gun), possession of an unregistered weapon (machine gun) and possession with intent to deliver cocaine.
Christine Hanahan, age 30, also of Kingston, was charged with unlawful transfer of a firearm to a prohibited possessor. John Teslicko, age 50, of Larksville, was charged with conspiracy to make false statements in connection with the purchase of a firearm, false statements in connection with the purchase of a firearm, unlawful transfer of a firearm to a prohibited possessor and prohibited possession of a firearm. The offenses allegedly occurred between March 2012 and March 2013 in Luzerne County.
The straw purchase of a firearm is the unlawful use by individuals who are unable to purchase a firearm to utilize others who do not have a criminal record to make the purchase in their own name and then transfer the firearm to the prohibited possessor. The investigation also allegedly uncovered cocaine distribution closely related to the straw purchases.Martin, Hanahan and Teslicko were arraigned before Magistrate Judge Thomas Blewitt and Martin was ordered detained pending trial on May 20, 2013.
This case was the result of a joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kingston Police Department.
Prosecution is assigned to Assistant United States Attorney Amy C. Phillips.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, Martin faces a mandatory minimum of 30 years’ imprisonment.
The maximum penalty under the federal statute for Hanahan and Teslicko is 10 years’ imprisonment.
All three face a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Indictment Charges Tax Preparer with Fraud SchemeRead the Press Release
PHILADELPHIA - Crystal Graham, 42, of Philadelphia, was charged today by indictment with filing false claims with the United States through federal income tax returns she prepared for clients, announced United States Attorney Zane David Memeger. According to the indictment, Graham created bogus wage statements and other false financial information which she placed on tax returns that she prepared for individuals for the purpose of obtaining tax refunds in the names of the filers. The refunds were based on the filer’s alleged entitlement to the First Time Home Buyer’s Credit and the Earned Income Tax Credit which are two tax credits that could result in a tax refund in 2008 even when the filer had little, if any, taxes withheld from income in that year.
According to the Indictment, Graham had her clients sign statements giving her the authority to deposit the clients’ refund checks into her savings account, or to have the refund checks placed on prepaid access devices. This gave Graham the ability to take a substantial portion of the fraudulent refunds before giving her clients the remainder.
If convicted, Graham faces a maximum possible statutory sentence of 55 years in prison, a fine of $2.75 million, a special assessment of $1,100, and three years of supervised release.The case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Floyd J. Miller.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Huntsville Narcotic Treatment Center Agrees to Pay $95,000 PenaltyRead the Press Release
BIRMINGHAM – A Huntsville-area Methadone treatment center has agreed to pay the United States a $95,000 penalty for numerous record-keeping and inventory violations cited in a 2012 regulatory investigation, announced Acting U.S. Attorney John H. England III and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.The settlement agreement between the U.S. Attorney for the Northern District of Alabama and Metro Treatment of Alabama, doing business as Huntsville Metro Treatment Center, was finalized Monday. The settlement was reached without any filings in U.S. District Court. With payment of the penalty, the government agrees to release Huntsville Metro Treatment Center from all civil liability for violations of record-keeping requirements established under the Controlled Substances Act.
"The $95,000 penalty in this matter represents the largest penalty ever collected in Alabama in a DEA drug diversion investigation," England said. "It is imperative that treatment centers which handle controlled substances keep clear and current records on the shipments and use of those narcotics so that they can be tracked and not diverted for illegal use in our communities," he said.
The Huntsville Metro Treatment Center is a facility registered with the DEA. It is one of several narcotic treatment centers in Alabama owned or operated by Colonial Management Group. The settlement agreement comes in response to allegations by the DEA that the Huntsville center failed to maintain complete and accurate records and inventories of controlled substances dispensed or received.
The violations cited in a DEA Scheduled Regulatory Investigation from March 26, 2012, to June 26, 2012, at the Huntsville center included its failure to account for about 3,423 dosage units of Methadone and failure to accurately complete required DEA forms on multiple shipments of Methadone. The DEA investigation also cited the center for not properly maintaining DEA forms and for a "general failure to maintain complete and accurate records."
The Huntsville center, as part of the settlement agreement, denies any intentional violation of regulations, but states it has altered several record-keeping procedures at the DEA's request.
Highland Woman Sentenced for Access Device FraudRead the Press Release
A Highland woman, convicted of Access Device Fraud, was sentenced in federal district court on March 19, 2013, to 3 years of home detention as a condition of a term of her sentence of 5 years of probation, ordered to pay $8,099.68 in restitution, and ordered to pay a special assessment of $100.00, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On September 14, 2012, Christina Dawn Whittaker, 52, admitted to using the social security number and date of birth of another person, without that person’s knowledge or permission, to open two credit card accounts. The credit cards were opened and utilized to defraud multiple companies between October of 2011 and March of 2012.
The investigation was conducted by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Hardin County Lawyer Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 40-year-old Silsbee, Texas lawyer has been sentenced to federal prison for bank fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Matthew Taylor Morones pleaded guilty on Sep. 6, 2012 to bank fraud and was sentenced to 24 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Dec. 21, 2005, Morones was appointed as the receiver for the Indian Paintbrush Development (IPD). At that time, the organization had approximately $365,000 in its bank accounts, held at two different financial institutions. From May to July 2007, Morones used the money from IPD’s account to purchase six certificates of deposit (CDs) from Guaranty Bank totaling $365,000. On July 30, 2007, Morones obtained a $90,000 loan from Guaranty Bank, which was used to purchase a home. Morones used one of the CDs purchased with IPD’s money as collateral to obtain the loan. Morones was indicted by a federal grand jury on Mar. 21, 2012.
Morones has already paid back over $200,000.00. He was ordered today to pay the remaining restitution in the amount of $165,000.00.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Goodwin Announces Guilty Plea from Mingo Pill Mill OperatorRead the Press Release
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin today announced that a Williamson woman has pleaded guilty in connection with her role in operating a Mingo County pill mill. Myra Sue Miller, 49, of Williamson, Mingo County, W.Va., pleaded guilty in federal court in Charleston to misusing a Drug Enforcement Administration registration number that did not belong to her. Miller admitted that beginning on February 17, 2010 until February 19, 2010, she and other known individuals used the DEA registration number assigned to former Mingo County doctor William F. Ryckman to illegally distribute the painkiller hydrocodone, as well as the prescription drug alprazolam, also known as “Xanax.”
Miller was employed as the office manager at Ryckman’s principal medical practice formerly located in Williamson, W.Va. Miller admitted that on February 17, 2010, she faxed several blank “doctors lists” from Ryckman’s Williamson office to Dr. Ryckman who, at the time, was at his Pennsylvania residence.
“This pill mill did enormous harm across a wide swath of our state and beyond,” said U.S. Attorney Goodwin. “Every time we put a law-breaking doctor or clinic out of business, it’s a big step toward getting this problem under control.”
Ryckman previously admitted that he signed and faxed the list back to Miller and other known individuals who were at his Williamson office. Ryckman also previously admitted that under his authorization, the blank lists were then improperly used to prescribe controlled medications for individuals that he did not evaluate or see as patients.
Miller further admitted that during the scheme, she directed other known individuals to fill in the blank doctor’s list with information that included patients' names, dates of birth and prescription type, strength, and quantity. The improperly authorized lists were then faxed to local pharmacies in order to be filled and dispensed. Miller also admitted that while Dr. Ryckman was absent from his Williamson office on February 18 and 19, 2010, she accepted cash fees from known individuals who arrived at the office and then directed them to one of at least two pharmacies located in Mingo County, W.Va., to obtain prescription painkillers that included hydrocodone and Xanax.
William Ryckman, 66, was previously sentenced in March 2012 to six months in prison followed by one year of supervised release for conspiracy to misuse his Drug Enforcement Administration (DEA) registration number.
Miller faces up to four years in prison and a $250,000 fine when she is sentenced on June 18, 2013 by United States District Judge John T. Copenhaver, Jr.
The matter is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Assistant United States Attorney John Frail is in charge of the prosecution.Gerrardstown Resident Enters Plea in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA — A 22-year old Gerrardstown, West Virginia, resident entered a plea of guilty on March 13, 2013, in United States District Court in Martinsburg before Magistrate Judge David J. Joel.
United States Attorney William J. Ihlenfeld, II announced that: TONI LEE OLSHEFSKI-BEATTY entered a plea of guilty to “Theft of Government Funds.” From March 1, 2011, to March 1, 2012, OLSHEFSKI-BEATTY received, negotiated and converted to her own use $8,834 in benefits which were designated for a qualified recipient.
This case was prosecuted by Assistant United States Attorney Michael D. Stein and investigated by the United States Social Security Administration-Office of Inspector General.
Georgia Man Pleads Guilty to Sending Notice over the Internet Seeking to Produce and Receive Child PornographyRead the Press Release
Jacksonville, Florida - United States Attorney Robert E. O'Neill announced that Stephen Joseph Woods (34, Savannah, Georgia) has pleaded guilty to sending a notice over the Internet offering to produce and receive child pornography. Woods faces a mandatory minimum penalty of 15 years, up to 30 years in federal prison and a potential life term of supervised release. Woods has been in custody since his arrest on November 2, 2012. A sentencing hearing has not yet been set.
According to court documents, during October and November 2012, multiple law enforcement agencies including the Volusia County Sheriff’s Office (“VCSO”) and the St. Johns County Sheriff’s Office (“SJCSO”), conducted operations in which officers worked undercover on the Internet to target individuals seeking to have sex with minor children. On October 12, 2012, an undercover SJCSO detective, posing as the relative of a 14-year-old female, posted a notice on a bulletin board on a website. Woods responded to the notice by email. During the ensuing email conversation, Woods confirmed that the “child” was 14 years-old and suggested in substance that he (Woods) could teach the “child” about sex.
During the next two weeks, Woods and the undercover detective, who used the persona of the child, engaged in online conversations in which Woods indicated his desire to have sex with the child.On October 29, 2012, Woods and the “child” engaged in an online conversation and discussed a location for their meeting. They discussed meeting in St. Augustine on November 2, 2012. During the conversations, Woods offered several times to produce videos of the “child” engaged in sexually explicit conduct. On the evening of November 2, 2012, Woods arrived at the agreed upon motel in St. Augustine. Woods approached the undercover detective, whom he believed was the “child’s” relative, and asked the detective to have the “child” come outside. Woods was subsequently arrested.
This case was investigated by the St. Johns County Sheriff’s Office, the Clay County Sheriff’s Office, the Volusia County Sheriffs’ Office, the Bay County Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."