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Wednesday 30 January 2013
Six Charged in Identity Theft ConspiracyRead the Press Release
Jackson, Miss – Ladonna Cooper, 30, of Jackson, Marietta Harris, 37, of Jackson, Tony Jones, 30, of Jackson, Nikki Thomas, 37, of Jackson, S’Ade Tyler, 27, of Jackson, and Shekeila Jones, 26, of Jackson, were charged in a 42-count federal indictment for conspiracy to commit identity theft and tax fraud, announced U.S. Attorney Gregory K. Davis, Allen Bryant, Resident Agent in Charge, U.S. Secret Service, and Damon Rowe, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation.
According to the indictment, the defendants were involved in a conspiracy to illegally obtain the names and social security numbers of others which they then used to file fraudulent federal tax returns for the purpose of obtaining fraudulent refunds.
“Identity theft is a serious crime that victimizes honest taxpayers and causes immense hardship,” said Damon Rowe, Acting Special Agent in Charge, IRS Criminal Investigation. Today’s actions should serve as a warning that we will continue to work with our law enforcement partners and the U.S. Attorney’s office to hold accountable those individuals who undermine our income tax system by filing false claims for refunds.”
Five of the defendants appeared for arraignment before U.S. Magistrate Judge Keith Ball on January 29, 2013. They are scheduled for trial before U.S. District Judge Henry T. Wingate on April 8, 2013. Shekeila Jones remains at large.
This case was investigated by the U.S. Secret Service and Internal Revenue ServiceCriminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue.
The public is reminded that, as in any criminal case, a person is presumed innocent until and unless proven guilty. The charges filed merely contain allegations of criminal conduct.###
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You can also fax information to:
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or e-mail it to:
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Selma Man Sentenced to Twenty Years Confinement in Drug Trafficking CaseRead the Press Release
MOBILE, AL-- United States Attorney Kenyen R. Brown announces that Daniel Louis McReynolds, Jr., was sentenced to twenty years confinement today for his involvement in an extensive drug trafficking conspiracy. McReynolds was previously indicted with co-defendants Labarry Soloman, Allen Nettles, Marlon Smith, Glenn Edward Williams, Jr. and Keatrick Lewis. All the other co-defendants were sentenced in 2012. The Court also ordered the forfeiture of five vehicles that were used in the drug trafficking conspiracy. The vehicles will be sold and eighty percent of the proceeds from the sale will be given to the Selma Police Department. Congress has made it mandatory for federal drug defendants who are convicted of drug offenses to forfeit drug proceeds they obtained from selling illegal drugs as well as assets they used to facilitate drug transactions. The United States Attorney, Kenyen R. Brown, praised the efforts of the Drug Enforcement Administration and the Selma Police Department, who worked together for approximately two years to bring the case to fruition. The United States Marshal’s Service, Fugitive Investigation Team, also assisted in finding and arresting McReynolds after he was declared a fugitive.
This case was prosecuted by Assistant United States Attorney George F. May of the United States Attorney’s Office for the Southern District of Alabama.
Rosebud Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man has been indicted by a federal grand jury for Assault with Intent to Commit Murder, Assault Resulting in Serious Bodily Injury, Assault with a Dangerous Weapon, Assault by Habitual Offender and Child Abuse.
Michael O’Rourke, age 27, was indicted by a federal grand jury on January 16, 2013. He appeared before United States Magistrate Judge Mark A. Moreno on January 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 20 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 charges are merely accusations and O’Rourke is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant United States Attorney Marie H. Ruettgers is prosecuting the case.
O’Rourke was released to a third party custodian pending trial. A trial date has not been set.
Roma Man Convicted of Marijuana Conspiracy Using Boats to Navigate the Intra-coastal WaterwayRead the Press Release
CORPUS CHRISTI, Texas – Alberto Lopez, aka Alberto Lopez-Reyna, 39, of Roma, has entered a plea of guilty to one count of conspiracy to possess with the intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Lopez entered into a written plea agreement before Senior U.S. District Judge Janis Graham Jack just a short time ago in Corpus Christi.
From November 2010 until his arrest in December 2012, Lopez facilitated the transportation of large amounts of marijuana concealed in the hulls of altered shallow-bottom fishing boats from Port Mansfield to Corpus Christi via the intra-coastal waterway in an effort to circumvent the United States Border Patrol checkpoints in Falfurrias and Sarita.
He admitted his role in supplying various loads of marijuana over the course of the conspiracy and mapping out boat docks in the Corpus Christi area that would be used to retrieve the marijuana-laden vessels for further transportation to Houston. The government detailed how four loads of marijuana were intercepted and a total of 1,600 kilograms of marijuana were seized over the last two years.
Members of the conspiracy who served as drivers include Lombardo Zarate, 49, Rogelio Mendoza, 37, Glen Dial 56, Luz Ramirez, 25, and Hector Perez-Gonzales, 39, all of whom have previously pleaded guilty before U.S. District Judges in Corpus Christi and have either been sentenced to terms of imprisonment at the Bureau of Prisons or await sentencing.
Lopez faces a minimum of five and up to 40 years in prison as well as a possible $5 million fine and a substantial money judgment. Sentencing will be before Senior U.S. District Judge Janis Graham Jack on a date yet to be determined.This case is the result of a two-year investigation led by Homeland Security Investigations with the assistance of the Kingsville Narcotics Task force. Assistant United States Attorney Jeffrey D. Preston is prosecuting the case.
Robin Godwin Sentenced in Bank of Brewton RobberyRead the Press Release
Kenyen Brown, U.S. Attorney for the Southern District of Alabama, announces that defendant Robin Godwin, who previously pled guilty to being involved in the February 17, 2012 robbery of the Bank of Brewton, has been sentenced to 18 months in prison and required to pay $124,026.00 in restitution.
On October 17, 2012, Robin Godwin pled guilty to one count of stealing from a bank. As part of the plea agreement, Godwin admitted to the following facts:
Prior to February 17, 2012, Godwin and co-defendant Pamela Steele formulated a plan to rob the Bank of Brewton, which is where Steele worked as a teller. On February 17, 2012, Godwin entered the Bank of Brewton and walked up to Steele’s teller window. Godwin disguised her true appearance by wearing a blue poncho, grey fedora, black gloves, khaki pants, large sunglasses, a black Afro wig, black face paint, and body padding. Godwin asked Steele about renting a safety deposit box, so Steele took Godwin into the bank vault to look at the various box sizes available. While in the vault, Godwin pulled a large bag out from under her poncho and demanded that Steele fill it with cash. At this point, Steele filled th bag with approximately $255,000 in cash. Thereafter, Godwin fled the bank with the bag full of money.
Two months after the robbery, Steele confessed and led the FBI and local law enforcement to Godwin. Approximately half of the stolen money was recovered.
Co-defendant Pamela Steele has already been sentenced to 12 months and a day for her role in this offense.
This matter was investigated by the Escambia County Sheriff’s Office and the FBI offices Monroeville, Mobile, and Pensacola. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Psychologist Sentenced for $1 Million Health Care FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a psychologist practicing in the Lebanon, Mo., area was sentenced in federal court today for engaging in a $1 million scheme to defraud Medicare and Medicaid.
“Those who defraud the government are stealing from the pockets of law-abiding taxpayers,” Dickinson said. “This psychologist flagrantly abused the system to enrich himself for more than three years, but today he is being held accountable for his actions.”
Rhett E. McCarty, 67, of Lake Ozark, Mo., was sentenced by U.S. District Judge Howard F. Sachs to three years in federal prison without parole. The court also ordered McCarty to pay $1 million in restitution to Medicaid and Medicare.
McCarty was a licensed psychologist and private practitioner who provided psychotherapy services to recipients of both Medicare and Medicaid in their homes in the Lebanon area. On Aug. 16, 2012, McCarty pleaded guilty to health care fraud and to forgery.
“Rhett McCarty violated the trust extended to him by the American taxpayers to provide medical services to our Medicare and Medicaid beneficiaries,” said Special Agent in Charge Gerry Roy of the Health and Human Services – Office of Inspector General. “He is now being held responsible for his violations. At HHS-OIG, we will continue to work with our federal and state law enforcement and prosecution partners to ensure the solvency and integrity of our federally-funded health care programs.”
Between Sept. 17, 2008, and April 5, 2012, McCarty submitted Medicare and Medicaid claims for daily or near daily psychotherapy services to 19 beneficiaries for which he was paid $1,276,334. According to the claims that McCarty submitted, he routinely saw beneficiaries seven days per week and worked long hours every day. Moreover, according to McCarty’s claims, he worked every single day of the calendar year from mid-September 2008 through early April 2012, except for Christmas day. McCarty routinely billed for every weekend day and for all holidays except Christmas day.
Although McCarty did provide some services for most of these beneficiaries, he admitted that he did not see those beneficiaries more than once a week. McCarty also admitted that the amount he was paid by Medicare and Medicaid for services he did not provide to these 19 beneficiaries was $1 million.
McCarty also admitted that he forged (or caused another person to forge) the signatures of five of the beneficiaries on patient sign-in sheets in order to obtain $418,507 in Medicare and Medicaid payments.
This case was prosecuted by Assistant U.S. Attorney Lucinda S. Woolery. It was investigated by Health and Human Services – Office of Inspector General, the FBI and the Medicaid Fraud Control Unit.Previously Deported Mexican National Sentenced to Nine Years for Violating Immigration LawsRead the Press Release
Defendant’s Sentence Enhanced for Raping a Female Illegal Alien During Smuggling Expedition Involving Nine Illegal AliensALBUQUERQUE – Yesterday afternoon, Alberto Cuevas-Gonzalez, 49, a Mexican national from Senora, Mexico, was sentenced to 102 months in prison for his conviction for transporting illegal aliens and re-entering the United States after previously having been deported subsequent to an aggravated felony conviction. Cuevas-Gonzalez’s sentence was enhanced from the recommended sentencing range of 63 to 78 months based on the court’s findings that Cuevas-Gonzalez raped one of the aliens whom he had smuggled into the United States.
Cuevas-Gonzalez also was sentenced to 12 months in prison for violating his conditions of release on a prior sentence. Six months of this sentence are to be served concurrently with the 102 month sentence, resulting in a total prison sentence of 108 months. Cuevas-Gonzalez will be deported after he completes his prison sentence.
The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Chief Patrol Agent Scott A. Luck, El Paso Sector, U.S. Border Patrol.
Cuevas-Gonzalez, whose true name is Jose Angel Cardenas-Aguilar, was arrested by U.S. Border Patrol Agents in Hidalgo County, N.M., on May 3, 2012, for smuggling nine illegal aliens from Mexico into the United States. He has been in federal custody since that time. On June 27, 2012, Cuevas-Gonzalez pled guilty to transporting illegal aliens and re-entering the United States without authorization after previously having been deported subsequent to an aggravated felony conviction.
Court records reflect that Cuevas-Gonzales was arrested on May 3, 2012, shortly after leading nine illegally aliens, including a young woman, across the Mexican border into the United States on foot. Each of the nine illegal aliens had paid or agreed to pay a $3000 smuggling fee to Cuevas-Gonzales. During the two-day trek, Cuevas-Gonzales drew the young woman away from the group on two occasions, once in Mexico and again in Arizona, and coerced her into having sex by threatening to kill her, or to leave her and the others to die in the desert.
Court records reflect that Cuevas-Gonzales was convicted for illegal entry into the United States in 1995 and 1999 and for illegal re-entry after deportation in 2002. He also has two prior felony convictions for marijuana trafficking offenses.
The case was investigated by the U.S. Border Patrol, Lordsburg Border Patrol Station, with assistance from the Cochise County (Arizona) Sheriff’s Department, and was prosecuted by Assistant U.S. Attorney Mick I.R. Gutierrez of the U.S. Attorney’s Branch Office.
President of Excavating Company Pleads Guilty to Tax ChargesRead the Press Release
RICHMOND, Va. – Jimmy Holland Boyd, 63, of Fredericksburg, Virginia pled guilty on January 29, 2013, to failing to pay employment taxes and failing to file personal income tax returns. As part of the plea, he admitted that he had not filed personal income tax returns since 1988 and owes the United States $350,000 in back taxes.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Sheila A. Olander, Acting Special Agent in Charge of the Criminal Investigation Division of the Internal Revenue Service, made the announcement after the plea was accepted by United States Magistrate Judge M. Hannah Lauck. Boyd is facing a maximum sentence of 5 years in prison and $250,000 in fines on the employment tax charge and 1 year in prison and $100,000 on the personal tax charge when he is sentenced by United States District Judge James R. Spencer on May 3, 2013.
At all material times, Boyd was President of Spring City Company Excavating, Inc., a Virginia-based real estate developing and excavating business. He pled guilty to failing to pay over $5,776 in federal income and FICA taxes on $34,864.62 of wages paid to his employees for the first quarter of 2009, ending March 31, 2009, in violation of 26 U.S.C. Section 7202.
As part of the written statement of facts accompanying his plea, Boyd also admitted that from 2005 through 2009 he paid employees of Spring City Excavating Company approximately $248,504 in net wages that were subject to federal income and FICA taxes, but to failed to pay the $41,170.77 of federal income and FICA taxes due the United States on those wages. Boyd also failed to issue IRS forms W-2 or 1099 to those employees.
Boyd also pled guilty to failing to file his personal tax return for 2007, even though he had gross income of $567,428.69 that year, in violation of 26 U.S.C. Section 7203. In the written statement of facts, Boyd admitted that he had not filed tax returns since 1988 and also acknowledged that he owes the IRS approximately $350,000 in personal taxes.
This case was investigated by the Criminal Investigation Division of the Internal Revenue Service. Assistant United States Attorney David T. Maguire is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Presho Man Charged with Unlawful Taking of Bald and Golden Eagles and Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Presho, South Dakota man has been indicted by a federal grand jury. Jeffery Jessop, age 50, was indicted by a federal grand jury on January 16, 2013 for Unlawful Taking of Bald and Golden Eagles and Migratory Birds and Lacey Act Violations.
Jessop appeared before US Magistrate Judge Mark A. Moreno on January 29, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 2 years of imprisonment, $250,000 fine, or both; 1 year of supervised release and 1 additional year of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered. The charges are merely accusations, and Jessop is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Fish and Wildlife Service and Assistant United States Attorney Meghan N. Dilges is prosecuting the case. Jessop was released on bond pending trial. A trial date has not yet been set.
Portland Man Indicted for Tax FraudRead the Press Release
Portland, Ore. - Ricky Lee Greenwood, 31, of Portland, Oregon, has been indicted on nine counts of wire fraud, nine counts of filing false claims for tax refunds, and eight counts of aggravated identity theft, the Justice Department and the Internal Revenue Service announced. Greenwood made his initial appearance in court today before U.S. Magistrate Janice Stewart, and entered a plea of not guilty. The defendant was released on pre-trial conditions and ordered to appear for trial on April 2, 2013.
According to the 26-count indictment, Greenwood electronically filed at least 66 false tax returns with fictitious wage and false dependent information, requesting at least $300,000 in fraudulent refunds. Greenwood is alleged to have obtained the names and Social Security numbers of unemployed individuals in order to file fraudulent tax returns in their names. According to the indictment, Greenwood also obtained the social security numbers of children and claimed them on the tax returns of unrelated individuals to maximize refundable credits - such as the Earned Income Tax Credit and the Additional Child Tax Credit - and further inflate the fraudulent refunds. In addition, according to the indictment, Greenwood had the fraudulent refunds delivered to him or deposited into accounts that he controlled.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Greenwood faces a maximum sentence of five years in prison for each false claims count, up to 20 years imprisonment for each wire fraud count, and a mandatory two-year sentence on the aggravated identity theft counts. If convicted, he could be subject to fines, mandatory restitution, and a money judgment.
"Investigating refund fraud and identity theft is a top priority for IRS Criminal Investigation," said Richard Weber, Chief, IRS Criminal Investigation. "Be assured that we are serious about investigating these crimes and we will vigorously pursue the criminals who steal from the American taxpayer."
This case was investigated by the IRS Criminal Investigation Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Todd P. Kostyshak of the Justice Department's Tax Division and Assistant U. S. Attorney Claire Fay are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Physician Pleads Guilty to Role in Health Care Fraud ConspiracyRead the Press Release
Dr. Daniel K. Leong Owned South Dallas Community Medical Center
DALLAS — On the day his trial was to begin in U.S. federal court, Dr. Daniel K. Leong, 59, who owned South Dallas Community Medical Center (SDCMC) on Martin Luther King Blvd., in Dallas, pleaded guilty to one count of conspiracy to commit health care fraud. Leong, who is in federal custody, faces a maximum penalty of five years in federal prison, a $250,000 fine and restitution. Sentencing is set for May 1, 2013, before U.S. District Judge Ed Kinkeade.
Leong’s co-conspirator, Cal Graves, who worked as a physician assistant at the SDCMC, pleaded guilty in July 2012 to the same offense. He is scheduled to be sentenced by Judge Kinkeade on February 13, 2013.
According to plea documents filed in the case, from February 2010 to February 2011, Leong and Graves engaged in a conspiracy to defraud Medicare and Medicaid by falsely representing that office visits and diagnostic tests were medically necessary.
PIn exchange for submitting themselves to diagnostic tests, patients at the clinic were prescribed controlled substances. This ensured that the patients would return to the clinic the next month, thus making themselves available for more tests. Often, patients would exaggerate their pain level to provide a basis for a prescription for narcotics. Leong benefitted from the exaggeration because this gave him “cover” to order more tests. The patients were rarely referred to specialists for their persistent pain and this process was repeated for up to several years without any actual treatment for some patients.
Leong and Graves frequently ordered tests known as electromyograms (EMG), which are used to diagnose neurological and nueromuscular problems. These tests are also highly-reimbursable by Medicare and Medicaid. Often, the results of these tests were never read and Graves did not have the proper training to read them.
In addition, in February 2010, Leong signed a blank prescription that reflected Leong’s authority to prescribe controlled substances. Leong instructed Graves and other SDCMC staff to copy this prescription as needed. When patients came to SDCMC, Graves used the pre-signed prescriptions.
Medicare and Medicaid would not have paid claims for office visits, diagnostic testing, or prescriptions if they had known either that the services were medically unnecessary and that Leong did not prescribe the medications.
The case is being prosecuted by Assistant U.S. Attorneys Michael McCarthy and Mindy Sauter. The investigation was conducted by the FBI, U.S. Health and Human Services (HHS) Office of the Inspector General (OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit.
Since their inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Parma Man Accused of Having More Than $100,000 Worth of Counterfeit Clothing, Boots and ShoesRead the Press Release
A federal grand jury in Cleveland returned an indictment charging Walid Hanna, age 27, of Parma, Ohio, with trafficking in counterfeit merchandise, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about June 16, 2011, Hanna intentionally trafficked and attempted to traffic in goods, specifically counterfeit apparel, which, if genuine, would be valued at approximately $107,808, including: Gucci sweatshirts (9), belts (41) and shoes (30 pair); Ralph Lauren Polo shirts (193), fleece jackets (36) and caps (186); UGG boots (101 pair); New Era sports caps (656); and North Face jackets (43), which contained counterfeit marks, logos, labels, hang tags, patches, stickers, emblems, holograms and packaging.
The marks on the merchandise were identical to and substantially indistinguishable from marks used on genuine merchandise, and were in use and registered for such goods on the principle register of the United States Patent and Trademark Office. The indictment alleges that the use of such counterfeit and spurious marks was likely to cause confusion, mistake or to deceive.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
This case is being prosecuted by Assistant U.S. Attorney Robert W. Kern of the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Office Immigration and Customs Enforcement.
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.
Ocean County, N.J., Woman Admits Bankruptcy FraudRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., woman today admitted concealing from a bankruptcy trustee profits she had made on a Ponzi scheme investment, U.S. Attorney Paul J. Fishman announced.
Marjorie Parise, 51, of Manahawkin, N.J., pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to one count of bankruptcy fraud.
According to documents filed in this case and statements made in court:
In 2003, Parise and her husband invested approximately $115,750 with a company known as Global Trading Investments, LLC, and received in return, profits totaling $429,154.91. However, the owners of Global Trading were operating a Ponzi scheme and the profits that Parise received were actually the investments of other individuals. Global Trading subsequently filed for Chapter Seven bankruptcy protection.
On Aug. 24, 2006, a judgment was entered against Parise requiring her to return the profits she had made from her investments in the scheme. However, Parise took numerous steps to fraudulently conceal a significant amount of funds and assets from the Trustee, including making false statements and omissions during a deposition in the bankruptcy proceeding.
Parise also took other steps to avoid detection and to keep assets from being seized as part of this proceeding. From Sept. 14, 2006, through Dec. 8, 2006, she withdrew at least $455,850 in cash from the bank accounts which had not been disclosed to the trustee. Parise made 67 currency withdrawals, none of which exceeded the $10,000 threshold for the filing of Currency Transaction Reports. In November 2006, Parise transferred ownership of her residence from her name only to the names of both her and her husband, and increased the home equity line of credit on the home.
On July 7, 2008, Parise filed for individual Chapter Seven bankruptcy protection. On her bankruptcy petition, she fraudulently failed to report millions of dollars in real estate holdings plus hundreds of thousands of personal assets.
The count of bankruptcy fraud to which Parise pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for May 10, 2013.
U.S. Attorney Fishman credited special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen in Newark for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko, of the U.S. Attorney’s Office in Trenton.
13-047
Defense counsel: Michael Pinsky Esq., Haddon Township, N.J.
Parise Indictment
North Versailles Man Sentenced to Prison for Possessing Child Pornography CollectionRead the Press Release
PITTSBURGH, Pa. - On Jan. 29, a resident of Allegheny County was sentenced in federal court to 36 months imprisonment, to be followed by 10 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Harold J. Grant, III, 20.
According to information presented to the court, on Feb. 2, 2011, Grant possessed thousands of videos and still images in computer graphics files, depicting the sexual exploitation of minors, many of whom were infants and very young children engaging in sexually explicit conduct. Grant's collection of child pornography depicted particularly violent sexual acts, which he had carefully categorized.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Grant.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
North Carolina Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
Delane F. Alston, a resident of Rocky Mount, N.C., pleaded guilty today before Judge Terrence W. Boyle to two counts of aiding and assisting in the preparation of false federal income tax returns, the Justice Department and the Internal Revenue Service (IRS) announced today. Alston’s sentencing hearing is scheduled for May 6, 2013.
According to the charging documents, Alston worked as a return preparer at P&A Tax Services, a tax return preparation business, between 2007 through 2011. Alston initially prepared returns at a P&A Tax Services office located in Rocky Mount, but she later transferred to the Spring Hope, N.C., office. Alston was the manager of the Spring Hope office in 2008, 2009 and 2011. At the hearing, Alston pleaded guilty to preparing false 2008-2010 tax returns for P&A Tax Services clients that contained false and fraudulent claims for tax refunds. Alston generated the refunds by reporting false information on client tax returns, including false dependent information and false deductions.
Alston is subject to a maximum potential sentence of three years in prison and a fine of up to $250,000 for each count of conviction.
This case was investigated by IRS-Criminal Investigation. Trial Attorney Adam Hulbig of the Justice Department’s Tax Division is prosecuting the case.
North Carolina Man Sentenced in Murder PlotRead the Press Release
DANVILLE, VIRGINIA -- A North Carolina man who previously pleaded guilty to conspiracy to possess with the intent to distribute marijuana and murder charges, was sentenced yesterday in the United States District Court for the Western District of Virginia.
Following an extensive joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Henry County Sheriff’s Office and the Henry County Commonwealth Attorney’s Office, Keith Clifton Hairston, 26, of Greensboro, N.C., pleaded guilty to one count of conspiracy to possess with the intent to distribute marijuana and one count of possessing a firearm in furtherance of a drug trafficking crime and in the course of that violation did result in the death of another person in the first degree.
Yesterday in District Court, Hairston was sentenced to 600 months in Federal prison.
"Mr. Hairston and his co-conspirators have been justly held accountable for their brazen act of violence," United States Attorney Timothy J. Heaphy said today. "The Department of Justice will continue to devote all possible resources to reduce acts of violent crimes like this senseless murder."
“When individuals brazenly disregard the law with such violence, make no mistake, ATF will take these individuals off our streets. ATF’s mission is to remove violent offenders from our streets and put them behind bars where they belong,” said Acting Special Agent in Charge James Newman.
Previously, Rodney Lamar Hairston, 22, Tremain Alando Thomas, 27, Quentin Dwayne McNebb, 36, and Andrew Albert Christian Edward Armour, 21, each pleaded guilty to the same conspiracy and murder charges as Keith Hairston.
According to a statement of facts entered into the record and agreed to by each defendant, in 2010, Rodney Hairston, a Henry County marijuana dealer, contacted his cousin, a known gang member, to recruit other gang members to help him rob one of his regular drug customers. Ultimately, Keith Hairston, Thomas, Armour and McNebb agreed to conduct the robbery.
While Demarcus Levon Hairston and Akorean JaJauntex Murphy – the customers – were purchasing marijuana from Rodney Hairston at his trailer home in Henry County, Keith Hairston, Thomas, McNebb and Armour had driven down the road approximately one mile away and were setting up an ambush.
As the two customers left Rodney Hairston’s home, Thomas and Keith Hairston had exited their own vehicle, both armed with loaded pistols. McNebb and Armour waited inside the vehicle.
When Demarcus Hairston’s car pulled up to a stop sign, Keith Hairston and Thomas fired shots into the car, hitting both Demarcus Hairston and Murphy, who was in the passenger seat. Murphy returned fire. After the shooting ended, the car Demarcus Hairston was driving rolled through the intersection and into a ditch, where it came to rest.
Shortly after the shooting, Demarcus Hairston got out of his vehicle and was picked up by a passing truck and taken to a local hospital. Murphy laid on the front passenger floorboard severely injured and moaning. Keith Hairston reached into the vehicle and grabbed the bag of marijuana that was underneath Murphy’s body. Murphy later died of gunshot wounds to his head and chest.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Henry County Sheriff’s Office and the Henry County Commonwealth Attorney’s Office. Assistant United States Attorney Donald Wolthuis prosecuted the case for the United States.
Ninth Defendant Sentenced to Prison in "Operation See Change"Read the Press Release
TALLAHASSEE, FL – Nine men have now been sentenced to federal prison in connection with Operation See Change, a six-month undercover investigation targeting street-level drug distribution along Tallahassee’s Alabama Street corridor.
On Tuesday, Esaias Jyjuan Tucker, 24, of Tallahassee, was sentenced to 240 months in prison for conspiracy to distribute and possession with intent to distribute powder and crack cocaine. Tucker was the source of supply for a substantial quantity of the drugs being distributed in the Alabama Street corridor.
Those sentenced in Operation See Change include:
Eddie Jerome Boyd, 44, was sentenced to 262 months;
Antwan Santez Bullard, 27, was sentenced to 188 months;
Danny Ray Crittenden, Jr., 27, was sentenced to 188 months;
Deonte Deangelo Hill, 19, was sentenced to 15 months;
Tommy Clarence Jackson, 54, was sentenced to 192 months;
Willie Powell, 23, was sentenced to 96 months;
Marquiz Donnell Rollins, 32, was sentenced to 10 months; and
Denson Jacarrus Washington, 24, was sentenced to 188 months.Jackson’s 192-month prison term also included sentences for possession of a firearm during a drug trafficking crime, possession of a stolen firearm, and possession of a firearm while a convicted felon.
The United States Attorney’s Office, the State Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Leon County Sheriff’s Office, the Tallahassee Police Department, and the Florida Department of Law Enforcement initiated Operation See Change in July 2011. Relying on current crime data and statistics, Operation See Change focused on the city’s most violent and active open-air drug market in the Alabama Street-Griffin Heights area. Working undercover, detectives from the Leon County Sheriff’s Office and the Tallahassee Police Department worked with federal agents to make strong cases against drug dealers – many of whom had long criminal histories of violence and drug trafficking crimes.
In announcing the sentence, the U.S. Attorney for the Northern District of Florida, Pamela C. Marsh, stated: “Attacking violent crime and making our communities safer is one of Attorney General Holder’s highest priorities for the Department of Justice, nationwide.
Operation See Change was our local initiative aimed at reducing violent crime here in Tallahassee. Taking such violent felons out of our communities for a significant period of time should send a message of deterrence to others who might be attracted to the gang lifestyle and culture. Both state and federal laws give us strong enforcement tools that we will not hesitate to use.” U.S. Attorney Marsh also expressed her grateful appreciation for the work and partnership of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Leon County Sheriff’s Office, the Tallahassee Police Department, and the Florida Department of Law Enforcement, whose joint investigation led to the convictions in these cases.The cases were prosecuted by Assistant U.S. Attorney Jason Coody.
New York Man Pleads Guilty to Three MurdersRead the Press Release
NEWPORT NEWS, Va. – Phillip Michael Bryant, 25, of Brooklyn, New York pled guilty today to three counts of murder in aid of racketeering activity. Bryant pled to the murder of Sean McCracken on or about November 1, 2009, and the murder of Johnny Avery on March 19, 2010. Both murders were committed on Lincoln Park Housing Development property in Hampton. In addition, Bryant waived venue in New York and pled guilty to the murder of Jeremy Kane, a New York State Corrections Officer, who was killed on June 28, 2009, outside of a beauty salon in Brooklyn, New York.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Juan C. Molina, Acting Special Agent in Charge of the FBI's Norfolk Division and Thomas Townsend, Acting Chief of Hampton Police made the announcement after the plea was accepted by United States District Judge Robert G. Doumar.
“Phillip Bryant used threats and murder to take over a Lincoln Park public housing development and turn it into the center of operations for his drug distribution network,” said U.S. Attorney MacBride. “Thanks to the strong case developed by the FBI Safe Streets Task Force and Hampton Police Division, Bryant admitted to murdering three men and will be held responsible for his reign of terror in our community.”
Bryant was indicted in March, 2012, on drug and firearm charges. A superseding indictment charging him with racketeering and murder charges was filed in May, 2012. According to court records, the defendant and two others from New York were part of a criminal organization known as the “Miller Time Bloods,” a neighborhood set of the national gang known as “the Bloods.” Bryant and the others travelled to Virginia to operate a drug trafficking business and were known locally as the “New York Boys.” The members and associates engaged in trafficking cocaine base, cocaine and marijuana brought from New York for sale in Lincoln Park. The alleged gang members protected the criminal enterprise and activities through the use of intimidation, violence and threats of violence – including the murders of Sean McCracken and Johnny Avery. It is believed that Jeremy Kane was murdered as retaliation for Kane pressing charges against a gang member’s brother in New York. Bryant faces mandatory life in prison when he is sentenced on May 7, 2013.
This case was investigated by the Federal Bureau of Investigation Safe Streets Task Force and Hampton Police Division. Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Ndangoh SentencedRead the Press Release
BATON ROUGE, LA— United States Attorney Donald J. Cazayoux, Jr., announced that TERENCE NDANGOH, age 25, of Baton Rouge, Louisiana, was sentenced by United States District Court Chief Judge Brian A. Jackson to twenty-one (21) months of imprisonment. NDANGOH was also ordered to repay victims $138,239 in restitution
NDANGOH had previously pled guilty to wire fraud involving a fake internet business purporting to sell frozen chicken feet and other food items to prospective wholesale buyers. NDANGOH collected more than $138,000 from victims who placed orders for the frozen products which were never fulfilled.
According to the Indictment, NDANGOH created Frozen Foods to advertise the sale of food items on the internet. Frozen Foods was not licensed or registered to do business in Louisiana, and neither NDANGOH nor Frozen Foods possessed or had access to the items purportedly for sale.
In addition to creating a fictitious internet company, NDANGOH also transmitted phony licenses, permits and other business certificates to potential buyers to make Frozen Foods look like a legitimate Louisiana-based business. Once purchase details were finalized, NDANGOH emailed the buyer purchasing documents with wiring instructions. The buyer then wired a deposit for the purchase to NDANGOH. NDANGOH never fulfilled the orders or made arrangements to fulfill the orders, despite having received payment for the goods.
This investigation was conducted by United States Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney J. Lane Ewing, Jr.
Nacogdoches Man Sentenced for Drug Trafficking in East TexasRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 30-year-old Nacogdoches, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Cedrick Fowler pleaded guilty on Aug. 28, 2012, to conspiracy to possess with intent to distribute 5 kilograms or more of crack cocaine and was sentenced to 245 months in federal prison on Jan. 29, 2013 by U.S. District Judge Ron Clark.
Tremaine Smith, 27, of Nacogdoches, Texas, pleaded guilty on Sep. 5, 2012, to
According to information presented in court, from 2008 to June 20, 2012, Donald Dixon, a.k.a. “Black”, Cedrick Fowler, a.k.a. “C” and “C-Murder”, Kerry Wayne Griffin, a.k.a. “Big Boy”, Omar Paunetto, Jose Angel Bustillos, Michael John Pereira, Rodney Stevenson, a.k.a. “Arod”, Darius Thorn, a.k.a. “Bs” and “Beez”, Tremaine Smith and Anthony Fowler conspired to traffic cocaine and crack cocaine throughout East Texas.
On June 20, 2012, a federal grand jury returned a 10-count indictment charging 10 defendants, including Fowler, with drug trafficking violations.
This case is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Nacogdoches Police Department, and the Nacogdoches County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Baylor Wortham.
####Morrison Man Indicted by Federal Grand Jury for Possession of Destructive DevicesRead the Press Release
DENVER – Richard Lawrence Sandberg, age 35, of Morrison, Colorado, was indicted by a federal grand jury in Denver earlier this week on three firearm (destructive device) related charges United States Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Andrew Traver announced. The indictment was obtained on January 28, 2013. Sandberg was originally arrested on January 24, 2013 based on a Criminal Complaint obtained on January 23, 2013.
On January 29, 2013, the government argued during a detention hearing that Sandberg should be held without bond pending a resolution of his case. That hearing was continued until today, January 30, 2013, to allow the court and defense to view a video recorded by an ATF undercover agent. U.S. Magistrate Judge Michael J. Watanabe after reviewing the video ordered that Sandberg be held without bond pending a resolution of his case.
Counts one and two of the indictment charge Sandberg with possession of firearms (destructive devices) not registered to him in the National Firearms Registration and Transfer Record. Count three of the indictment charges Sandberg with one count of being a prohibited person in possession of firearms (destructive devices) because he is an unlawful user of and addicted to any controlled substance.
According to the original affidavit in support of the Criminal Complaint, the investigation began when a Denver Police detective learned from a confidential informant that an individual who possessed destructive devices. The detective contacted ATF regarding this information. ATF, acting on this information, worked with the confidential informant to introduce an undercover agent to meet the subject, who turned out to be Richard Sandberg. After a number of phone conversations the undercover agent and the confidential informant went to Sandberg’s residence, where they were shown the devices. Sandberg reportedly said he wanted to trade the devices for cocaine, or for $300 each.
During the meeting, Sandberg made numerous threatening statements towards law enforcement and specifically ATF. At the conclusion of the meeting, Sandberg gave the undercover agent three devices, which contained explosive powder, a fuse and shrapnel in the form of stainless steel ball bearings. ATF confirmed that Sandberg was not allowed to possess such devices.
Sandberg is charged with two counts of possession of a firearm (which includes destructive devices) which is not registered in the National Firearms Registration and Transfer Record. If convicted, the defendant faces not more than 10 years in federal prison, and a fine of not more than $10,000. He also faces one count of possession of a firearm (which includes destructive devices) by an individual who is an unlawful user or addict to any controlled substance. If convicted of that count, he faces not more than 10 years in federal prison, and a fine of up to $250,000.
This case was investigated by ATF, the Denver Police Department and the Jefferson County Sheriff’s Office. The Denver Police Department Bomb Squad, the Jefferson County Sheriff Bomb Squad and the Colorado Springs Regional Explosives Unit provided assistance at Sandberg’s residence, where the destructive devices were found.
Sandberg is being prosecuted by Assistant U.S. Attorney Jeremy Sibert.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
####
Media AdvisoryRead the Press Release
Montgomery, Alabama - The press conference scheduled for Wednesday, January 30, 2013, at 1:00 p.m., by George L. Beck, Jr., United States Attorney for the Middle District of Alabama, Veronica Hyman-Pillot, Internal Revenue Special Agent in Charge, and Clayton Slay, U.S. Secret Service Resident Agent in Charge, has been moved to Thursday, January 31, at 1:30 p.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama. The press conference will announce the government’s continued crackdown on identity theft and fraudulent tax preparers. Since this is the beginning of the tax filing season for 2012 taxpayers, it is a perfect time to warn taxpayers about these fraudulent tax preparers and identity theft. Press release and other handouts will be provided at the conference. The media is invited.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Media AdvisoryRead the Press Release
There will be a press conference held on January 31, 2013, at the federal courthouse located at 111 Seventh Avenue SE, Cedar Rapids, Iowa. The press conference will be held in the United States Attorney’s second floor conference room approximately 30 minutes following the sentencing in United States v. Russell R. Wasendorf, Sr., 12-CR-2021 LRR, scheduled to begin at 9:00 a.m. Acting United States Attorney Sean R. Berry and Thomas R. Metz, Special Agent In-charge of the Omaha Division of the Federal Bureau of Investigation, will comment on the sentencing of Russell R. Wasendorf, Sr.
Press releases and interview opportunities will be available.
United States Attorney’s Office staff will be available beginning at approximately 8:45 a.m. to escort members of the press with any camera equipment directly to the conference room upon entering the courthouse. Camera equipment will not be allowed in any other areas of the building. No mobile telephones will be allowed in the building.
Massachusetts Woman Sentenced Pursuant to Her Plea of Guilty to Traveling to West Virginia to Have Sex with A MinorRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WV – United States Attorney William J. Ihlenfeld announced that CARISSA HADS, age 25, of Quincy, Massachusetts, was sentenced on January 29, 2013, in United States District Court in Clarksburg by Judge Irene M. Keeley.
HADS was sentenced to 87 months imprisonment to be followed by lifetime supervision. HADS entered a plea of guilty on October 10, 2012, to “Traveling in Interstate Commerce with the Intent to Engage in Illicit Sexual Conduct” on February 23, 2012, when HADS traveled from Massachusetts to North Central West Virginia to have sex with a minor. Court documents indicate that HADS posed as an 18-year old man on a social media website and also took steps to change her appearance in order to deceive the victim as to her true identity. HADS met the alleged victim online in 2010 and the two communicated for over a year before the first in-person meeting took place. HADS traveled at least three times from Massachusetts to visit the alleged victim, and was arrested at the Pittsburgh International Airport by F.B.I. agents on May 25, 2012, on one of her visits to the area. As part of her plea, HADS agreed to the forfeiture of the computer and electronic equipment seized from her and her residence.
HADS was remanded to the custody of the United States Marshal pending designation to a
Federal institution.The case was prosecuted by Assistant United States Attorney Shawn A. Morgan, Chief of the Criminal Division for the U.S. Attorney’s Office and investigated by the West Virginia Internet Crimes Against Children Task Force and the Federal Bureau of Investigation.
Manhattan U.S. Attorney Settles Lawsuit Against Owners and Operators of Rosa Mexicano Restaurants for Violations of the Americans with Disabilities ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today a settlement of a lawsuit against the owners and operators of the three Manhattan locations of the popular Rosa Mexicano restaurant chain for violations of the Americans With Disabilities Act of 1990 (“ADA”). The defendant owners and operators of the Rosa Mexicano restaurants are ROSA MEXICANO COMPANY, WEST 62 OPERATING LLC, FENIX RESTAURANT, INC., and ROSA MEXICANO USQ LLC. The settlement, in the form of a consent decree, was approved today by U.S. District Judge Richard J. Sullivan.
The lawsuit was the first to be brought as a result of the Manhattan Restaurants ADA Compliance Initiative, announced in September 2011. As part of the initiative, the U.S. Attorney’s Office is reviewing and evaluating the ADA compliance of the “most popular” restaurants in Manhattan as designated by the 2011 Zagat Guide.
Manhattan U.S. Attorney Preet Bharara said: “The comprehensive corrective measures agreed to by Rosa Mexicano will give individuals with disabilities an equal opportunity to enjoy one of New York City’s most popular restaurants, as is required by the ADA. While we hope that other proprietors will voluntarily comply with this important civil rights law rather than face litigation, our Office remains committed, through our ongoing Restaurants Initiative, to ensuring that everyone can have access to the world-class offerings on the menu in New York City restaurants.”
According to the Complaint filed in Manhattan federal court and other public documents:
The U.S. Attorney’s Office identified numerous violations of the ADA at each of Rosa Mexicano’s Manhattan locations: 61 Columbus Avenue (“Rosa Mexicano Lincoln Center”), 1063 First Avenue (“Rosa Mexicano First Avenue”), and 9 East 18th Street (“Rosa Mexicano Union Square”). Most significantly, Rosa Mexicano Lincoln Center lacks an accessible main entrance, and its “alternate entrance” is also non-compliant in several respects. Rosa Mexicano
First Avenue similarly lacks an accessible entrance, and all three of its restrooms are inaccessible to persons with disabilities. At Rosa Mexicano Union Square, both the main and “alternate” entrances fail to comply with the ADA, as do the men’s and women’s restrooms.
Today’s consent decree requires the restaurants to improve the accessibility of their entrances, waiting areas, bar areas, dining areas, and restrooms. Notably, the consent decree provides for renovations to the main and alternate entrances at Rosa Mexicano Lincoln Center; the creation of an accessible alternate entrance and the construction of an accessible restroom at Rosa Mexicano First Avenue; and renovations to the entrance and the men’s and women’s restrooms at Rosa Mexicano Union Square. In addition, the owners and operators of the restaurants will pay a $30,000 civil penalty to the United States.
Since President George H.W. Bush signed the ADA into law in 1990, the U.S. Attorney’s Office for the Southern District of New York has taken a leading role in bringing numerous New York City institutions into compliance with the ADA regulations. They include Avery Fisher Hall at Lincoln Center, the Metropolitan Opera, Yankee Stadium, Madison Square Garden, the Apollo Theater, the Puck Building, the Shubert Theaters, the Rainbow Room, and Radio City Music Hall.
Mr. Bharara thanked the Disability Rights Section of the Department of Justice, in particular its architectural staff, for their assistance in this matter.
The Restaurants Initiative is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Amy A. Barcelo, Christopher Connolly, and Cristine Irvin Phillips are in charge of the Initiative.
To file a complaint alleging that a restaurant or any other place of public accommodation within the Southern District of New York is not accessible to persons with disabilities, use the Civil Rights Complaint Form available on the United States Attorney’s Office’s website, www.usdoj.gov/usao/nys. Complaints should be sent to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York, 10007
Attention: Chief, Civil Rights Unit
U.S. v. Rosa Mexicano Settlement
Manager of Commodities Fund Pleads Guilty to ConspiracyRead the Press Release
SAN JOSE - Rodney Hatfield pleaded guilty in federal court in San Jose today to conspiracy to commit wire fraud, United States Attorney MELINDA HAAG announced.
In pleading guilty, Mr. Hatfield admitted that he conspired with his co-defendant to obtain money from investors by means of materially false representations about the value of their investment accounts. Mr. Hatfield admitted that he defrauded members of his own Jehovah’s Witness congregation in Watsonville, California. As part of the conspiracy, he solicited millions of dollars in investment money from his fellow congregants and others to invest in Landmark Trading Company, LLC (“Landmark”), a company he and his co-defendant had set up as a holding company for the purpose of trading in foreign currency exchange.
While Landmark did initially engage in legitimate currency trades on behalf of its investors, the company quickly began to run a negative return on its trading activity. Rather than accurately report this negative trading activity to investors, Hatfield and his co-defendant distributed false reports to investors in e-mails claiming that their trading accounts were profitable and increasing in value. While some investors did receive all or most of their principal back, Hatfield admitted his actions resulted in a net loss to investors of more $1 million but less than $2.5 million.
Mr. Hatfield, age 63, of Salinas, California, was indicted by a federal Grand Jury on December 17, 2009. He was charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, along with nine counts of wire fraud, in violation of 18 U.S.C. § 1343. Under the plea agreement, Mr. Hatfield pled guilty to the first count of the Indictment, conspiracy to commit wire fraud.
Mr. Hatfield remains free on a secured bond pending sentencing on Monday, June 24, 2013, at 1:30 p.m., before the Honorable Edward J. Davila in San Jose. The maximum statutory penalty for a violation of conspiracy to commit wire fraud is 20 years of imprisonment, a fine of $250,000 or twice the amount of gain or loss, whichever is greater, restitution if appropriate, and a special assessment. 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.
Timothy J. Lucey is the Assistant United States Attorney who is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of a multi-year investigation by the United States Postal Inspection Service. The Commodities Future Trading Commission and the United States Trustee for the Northern District of California were also instrumental in this investigation.
Lake Andes Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Albert Fischer, age 22, of Lake Andes, South Dakota appeared before United States District Judge Karen E. Schreier on January 28, 2013 and pled guilty to assault resulting in serious bodily injury. The maximum penalty upon conviction is 10 years' imprisonment and a $250,000 fine.
Fischer assaulted a man in July of 2012 wherein the victim's jaw was broken. The investigation was conducted by the Bureau of Indian Affairs Law Enforcement Services - Yankton Reservation, and the FBI. The case is being prosecuted by Assistant US Attorney Thomas J. Wright.
A presentence investigation was ordered and a sentencing date was set for April 22, 2013. The defendant was remanded to the custody of the US Marshal pending sentencing.
Kentlands Area Cocaine Dealer Sentenced to More than 17 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams Jr. sentenced Xavier Eccleston, age 35, of Bethesda, Maryland, today to 210 months in prison, followed by eight years of supervised release, for conspiring to distribute powder and crack cocaine, and four counts of possession with intent to distribute the drugs and use of a telephone to further the drug activity.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Robert Brisolari of the Drug Enforcement Administration - Washington Field Division; Acting Assistant Director in Charge Debra Evans Smith of the Federal Bureau of Investigation - Washington Field Office; Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to evidence presented during the six-day trial, from June 2010 to September 2011, Eccleston purchased ounce quantities of powder cocaine from his suppliers in the Kentlands area of Prince George’s County, Maryland, including a crack house located at the Eaton Square apartment complex on Sheriff Road in Landover, Maryland. Eccleston socialized with co-conspirators who also sold crack cocaine and knew of such sales. The jury had found Eccleston responsible for re-distributing between 500 grams and five kilograms of powder cocaine and 28 grams of crack cocaine per month during the 16 month conspiracy, using a telephone at times to arrange the drug sales.
A cooperating witnesses testified that Eccleston had assaulted him and threatened the cooperator’s family unless the cooperating witness agreed to lie to the jury and testify that Eccleston was only a user of cocaine and not a distributor. Judge Williams also enhanced Eccleston’s sentence upon finding that he obstructed justice.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, IRS - Criminal Investigation, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Jonathan Lenzner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
KC Man Sentenced for Attempting to Carry Loaded Handgun onto AirplaneRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for attempting to board an aircraft with a concealed dangerous weapon after a loaded handgun was discovered by screeners in his carry-on luggage at Kansas City International Airport.
Anthony Winn, 27, of Kansas City, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to six years in federal prison without parole.
Winn pleaded guilty on May 25, 2012, to attempting to get on an aircraft with a concealed dangerous weapon. He also acknowledged that he was a felon who illegally possessed the firearm, a Glock 9mm handgun with 22 live rounds of ammunition in the magazine and one live round of ammunition in the chamber. Winn has several felony convictions including unlawful use of a weapon, attempted first degree burglary, first degree burglary and second degree burglary.
An x-ray machine operator at the Delta terminal at Kansas City International Airport saw Winn place his carry-on bag on the x-ray belt to be examined by Firstline Security screeners on Dec. 28, 2011. The x-ray machine operator observed on the monitor what he believed to be the image of a loaded firearm inside the carry-on bag. Officers with the Kansas City International Airport Police were contacted and found the firearm when they inspected Winn's bag.
Winn was arrested and searched; officers removed $4,906 from his pants pockets, along with boarding passes to travel one-way from Kansas City, Mo., to Minneapolis, Minn., then to Tucson, Ariz. Kansas City, Mo., police officers later found $26,515 in various pockets of three pairs of men's jeans that were in the carry-on bag.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the Kansas City International Airport Police, the Kansas City, Mo., Police Department, the Department of Homeland Security and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Illegal Alien Sentenced for Drug Trafficking in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 38-year-old El Salvadorian man illegally living in Tyler, Texas, was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Francisco Antonio Soriano pleaded guilty on Sep. 21, 2012, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Michael H. Schneider. Soriano will be deported following the completion of his prison term.
According to information presented in court, beginning on Dec. 14, 2011, Soriano conspired with others to acquire and distribute methamphetamine in the Eastern District of Texas. Soriano admitted he was responsible for the distribution of more than 500 grams of pure methamphetamine.
Soriano, Jose Lopez, and Jorge Perez Sanchez were indicted by a federal grand jury on Jan. 11, 2012 and charged with drug trafficking violations. Lopez was sentenced to 168 months in federal prison on Oct. 1, 2012. Sanchez was sentenced to 30 months in federal prison on Oct. 1, 2012.
This case is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, the Tyler Police Department, and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin. ####Husband and Wife Sentenced on Fraud ChargesRead the Press Release
ROANOKE, VIRGINIA -- A local husband and wife who admitted to committing fraud and stealing the identities of others were sentenced today in the United States District Court for the Western District of Virginia in Roanoke.
Michelle A. Ferguson and William J. Ferguson Jr., both of Roanoke, Va., each previously pled guilty to one count of conspiracy to commit fraud. In addition, Michelle Ferguson pled guilty to one count of aggravated identity theft. Today in District Court, Michelle Ferguson was sentenced to a total of 29 months in Federal prison. William Ferguson was sentenced to a total of 14 months in Federal prison.
“Mr. and Mrs. Ferguson lied to their clients and used the stolen the identities of innocent people for their own financial gain.,” United States Attorney Timothy J. Heaphy said today. “They abused their positions as tax preparers for their own selfish greed.”
“Return preparer fraud and identity theft is a blight against our nation’s communities and threatens the veracity of our tax system,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “The Ferguson’s had a duty to their clients to protect their personal identifying information and to comply with the tax law. Today’s sentence serves as a reminder that all tax professionals have to respect the law and safe guard the financial interests of their clients’ and the taxpaying public.”
According to evidence presented at various hearing by Assistant United States Attorney C. Patrick Hogeboom III, the Fergusons operated a tax return preparation business out of their Roanoke home and committed fraud in two specific manners.
When meeting with clients face-to-face to prepare their taxes, the Fergusons would have their clients sign the return without reviewing its contents. The returns were set-up to have any refunds deposited directly into an account controlled by the defendants. To maximum refunds, Mr. and Mrs. Ferguson, without the knowledge of their clients, would include phony Schedule C's, Profit and Loss from Business to the returns. The Schedule C's would overstate income and deductions in order to maximize the amount of the false claim for refund. Once the tax refund was received by the defendants, they would write a check to each client for a fraction of the total refund received.
In addition, the defendants filed false tax returns using Social Security Numbers which had been stolen. Again, to maximize refunds, the defendants included phony Schedule C Businesses on the returns. However, the individuals who had their identity stolen did not receive any portion of the criminal proceeds obtained through the false claim for refund.
The investigation of the case was conducted by the Internal Revenue Service Criminal Investigations and the Social Security Administration. Assistant United States Attorney C. Patrick Hogeboom prosecuted the case for the United States.
Huntington Man Pleads Guilty to Federal Heroin ChargeRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced that a Huntington man pleaded guilty to aiding and abetting the possession with intent to distribute a quantity of heroin. Stephen Michael Hopkins, 36, of Huntington, admitted to the charge in federal court on Jan. 30.
On March 16, 2011, officers with the Charleston Police Department responded to a call near the 2600 block of 6th Avenue in Charleston. Upon arriving at the scene, officers approached Hopkins and his known associate. Both Hopkins and his associate were sitting inside of a parked vehicle at the time. A responding officer asked Hopkins and his associate to step out of the vehicle. Hopkins, who admitted that he refused to obey the order given by law enforcement, turned the vehicle on and drove away. Law enforcement officers pursued the defendant and his associate as they fled. During the pursuit, Hopkins lost control of his vehicle and crashed at the intersection of 7th Street and Iowa Street in Charleston. Hopkins and his associate attempted to flee on foot, but were eventually arrested by officers. Officers conducted a search of the vehicle and recovered a plastic bag underneath the driver’s seat of the vehicle. The bag contained $10,920 in cash, suspected heroin, and suspected marijuana. The suspected heroin was submitted to the West Virginia State Police lab for testing and was found to be heroin weighing 26.6 grams.
Hopkins faces up to 20 years in prison and a $1 million fine when he is sentenced on May 2, 2013 by United States District Judge John T. Copenhaver, Jr.
The Charleston Police Department conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
Head of Debt Collection Agency Sentenced to Five Years in Prison for Role in Multi Million Fraud SchemeRead the Press Release
January 30, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD PINTO, 68, of Wellington, Fla., was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by five years of supervised release, for his role in a mulitimillion dollar fraud scheme at Oxford Collection Agency, where PINTO served as Chairman of the Board. Judge Underhill also ordered to PINTO to serve the first three years of his supervised release in home confinement, and to pay restitution of approximately $12.3 million.
“Over several years, this defendant orchestrated a substantial fraud through which his company stole millions of dollars from clients, lenders and investors,” stated U.S. Attorney Fein. “We are committed to working with IRS-Criminal Investigation, the FBI, SIGTARP, and the other members of the Connecticut Securities, Commodities and Investor Fraud Task Force to root out financial fraud and prosecute responsible individuals.”
According to court documents and statements made in court, Oxford Collection Agency (“Oxford”) was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania and Florida. Businesses and other entities contracted with Oxford to collect debts on their behalf. Oxford’s clients included, among others, an educational institution, a laboratory, a computer company and various banks. Oxford collected debts from consumers under the pretense that it would report all such collections to its clients and remit the appropriate amount to the client. However, PINTO and other Oxford executives routinely caused Oxford to collect debts that were never remitted to its clients. The co-conspirators referred to these unremitted collections as a client’s “backlog.” To hide the backlog, co-conspirators would make periodic fraudulent collection reports to certain clients that under-reported the amount of funds collected. PINTO and others diverted various funds from their client remittances and used them for their own ends.
Certain co-conspirators also transferred money from one client trust account to another client account, from Oxford’s operating account to a client account, or from a client account to Oxford’s operating account to cover various shortfalls and backlogs or to improperly use collections to directly fund Oxford’s operations.
Starting in April 2007, Oxford secured a line from credit from Connecticut-based Webster Bank, a bank that received funds through the Troubled Asset Relief Program (TARP), without informing Webster Bank about its significant client backlogs or outstanding payroll taxes. PINTO and others sent falsified financial statements to Webster Bank, eventually increasing the credit line to $6 million, and laundered funds from the credit line to promote the ongoing fraud scheme against their clients. During that same period, PINTO and others also solicited millions of dollars in investments from various investors, without ever disclosing to their investors the existence of their backlogs. Some of the investor funds were deposited into PINTO’s personal bank account without investor knowledge.
Oxford’s victims lost more than $12 million as a result of this scheme.
The investigation also has revealed that Oxford sometimes obtained and retained business with its banking clients by paying bribes and kickbacks to bank officials.
On May 11, 2012, PINTO pleaded guilty to one count of conspiracy to commit wire fraud, bank fraud and money laundering, and one count of wire fraud.
Four other Oxford executives including PINTO’s son, Chief Executive Officer Peter Pinto, Vice-President of Finance and Chief Financial Officer Randall Silver, Executive Vice President Charles Harris, and Chief Operations Officer Carlos Novelli, have pleaded guilty to charges stemming from this scheme. They await sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities and Investor Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan, Special U.S. Attorney John McReynolds and Deputy U.S. Attorney Deirdre Daly.
In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
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.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Guilty Plea Entered by One of Five Individuals Charged in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced that Scott F. Saidel, 45, pled guilty today to conspiracy to commit money laundering in violation of Title 18, United States Code, Section 371, before the Honorable Judge Robin S. Rosenbaum. Sentencing has been scheduled for June 7, 2013 at 9:00 am.
Saidel was charged, along with Kimberly Wendell Rothstein, 38, and Stacie Weisman, 49, in September 2012, in connection with certain crimes committed in furtherance of a plot to conceal and dispose of assets which were forfeitable as proceeds of a Ponzi scheme orchestrated by Scott W. Rothstein. At the same time, in September, Eddy Marin, 50, and Patrick Daoud, 54, were also charged in a separate, but related, matter with obstruction of justice and perjury, in violation of Title 18, United States Code, Sections 1512(k) and 1621.
According to the documents filed with the court, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigations, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. However, according to Court documents, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars, for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.
The documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, all of the defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in the bankruptcy proceedings. It is further alleged that Marin and Daoud committed perjury during depositions in connection with the bankruptcy proceedings, and that Kimberly Rothstein, Stacie Weisman and Scott F. Saidel sought to have Scott W. Rothstein testify falsely in connection with those proceedings.
Defendants Eddy Marin and Patrick Daoud are set to commence trial on April 8, 2013.
U.S. Attorney Ferrer commended the investigative efforts of IRS-CID and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence LaVecchio, Jeffrey Kaplan, Paul Schwartz and Evelyn Sheehan.
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.
Georgia Tax Return Preparer Sentenced to Jail<br /> for Identity TheftRead the Press Release
Willie C. Grant, a tax return preparer from Macon, Ga., was sentenced to 60 months in prison by for filing false claims for tax refunds, theft of government money and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. U.S. District Court Chief Judge C. Ashley Royal also ordered Grant to pay over $200,000 in restitution to the IRS.
According to court documents, from 2003 through 2008, Grant owned and operated a tax return preparation business, Grant Income Tax Bookkeeping and Check Cash (GIT) out of his home in Macon. During this time period, Grant filed false federal income tax returns in the names of deceased individuals and used many of his former clients’ names and Social Security numbers to file wholly fraudulent returns without their knowledge or consent. Grant directed the IRS to either electronically deposit refunds into his personal or business bank accounts or issue paper refund Treasury checks which he cashed or deposited into bank accounts he controlled. Grant spent the proceeds of his false refund scheme on personal items including expensive cars and personal living expenses. Grant admitted that that he abused his position of private trust as a professional paid tax preparer in committing these crimes.
“Honest taxpayers are doubly harmed when they entrust return preparers with their information, who turn out to be thieves who steal that information to enrich themselves by making fraudulent refund claims,” said Assistant Attorney General Kathryn Keneally. “The Justice Department will investigate and prosecute stolen identity refund fraud in all of its various forms.”
“When Mr. Grant stole these identities and defrauded the IRS, he victimized not only the people whose names and social security numbers he used, but every tax paying citizen in the United States. My office, with the continued cooperation of our law enforcement partners, will make sure that people like Mr. Grant are held to account for their fraud,” said Michael Moore, U.S. Attorney for the Middle District of Georgia.
“Mr. Grant used a foundation of fraud and deceit in order to cheat the government and victimize innocent taxpayers and is now being held accountable for his egregious behavior,” said Richard Weber, Chief IRS Criminal Investigation. “As a paid tax preparer, Grant held a position of trust in the eyes of his clients. He violated that trust and caused immeasurable harm to innocent victims. IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of those individuals whose identities were stolen, as well as the U.S. tax system.”
Assistant Attorney General Keneally commended the efforts of special agents of IRS – Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Charles M. Edgar, Jr. and Justin K. Gelfand, who prosecuted the case.
Georgia Tax Return Preparer Sentenced to Jail for Identity TheftRead the Press Release
WASHINGTON - Willie C. Grant, a tax return preparer from Macon, Ga., was sentenced to 60 months in prison by for filing false claims for tax refunds, theft of government money and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. U.S. District Court Chief Judge C. Ashley Royal also ordered Grant to pay over $200,000 in restitution to the IRS.
According to court documents, from 2003 through 2008, Grant owned and operated a tax return preparation business, Grant Income Tax Bookkeeping and Check Cash (GIT) out of his home in Macon. During this time period, Grant filed false federal income tax returns in the names of deceased individuals and used many of his former clients’ names and Social Security numbers to file wholly fraudulent returns without their knowledge or consent. Grant directed the IRS to either electronically deposit refunds into his personal or business bank accounts or issue paper refund Treasury checks which he cashed or deposited into bank accounts he controlled. Grant spent the proceeds of his false refund scheme on personal items including expensive cars and personal living expenses. Grant admitted that that he abused his position of private trust as a professional paid tax preparer in committing these crimes.
“Honest taxpayers are doubly harmed when they entrust return preparers with their information, who turn out to be thieves who steal that information to enrich themselves by making fraudulent refund claims,” said Assistant Attorney General Kathryn Keneally. “The Justice Department will investigate and prosecute stolen identity refund fraud in all of its various forms.”
“When Mr. Grant stole these identities and defrauded the IRS, he victimized not only the people whose names and social security numbers he used, but every tax paying citizen in the United States. My office, with the continued cooperation of our law enforcement partners, will make sure that people like Mr. Grant are held to account for their fraud,” said Michael Moore, U.S. Attorney for the Middle District of Georgia.
“Mr. Grant used a foundation of fraud and deceit in order to cheat the government and victimize innocent taxpayers and is now being held accountable for his egregious behavior,” said Richard Weber, Chief IRS Criminal Investigation. “As a paid tax preparer, Grant held a position of trust in the eyes of his clients. He violated that trust and caused immeasurable harm to innocent victims. IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of those individuals whose identities were stolen, as well as the U.S. tax system.”
Assistant Attorney General Keneally commended the efforts of special agents of IRS – Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Charles M. Edgar, Jr. and Justin K. Gelfand, who prosecuted the case.
Four More Indicted in Fraudulent Prisoner Income Tax Refund SchemeRead the Press Release
PENSACOLA – Four Floridians have been federally indicted for their involvement in a fraudulent prisoner income tax refund scheme. The indictment of Cora Beard (68) of Morriston, William Scott Folk (36) and Christopher Jesse Lee (35) both currently incarcerated in the Florida Department of Corrections, and Gail Anita Moss (60) of Miami Gardens was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida. Count One charges all four defendants with conspiracy to defraud the government with respect to claims, and Count Two charges all four defendants with conspiracy to commit mail fraud. Cora Beard and Gail Anita Moss are also charged with seven counts of filing false claims against the government and seven counts of theft from the government. The indictment also charges Beard with one count of aggravated identity theft, and Moss with two counts of aggravated identity theft.
The indictment alleges that beginning around January 2006, the four individuals and others filed fraudulent tax returns using the names and social security numbers of inmates housed in the Florida Department of Corrections, and on occasion other individuals who were not incarcerated. As part of this scheme, Cora Beard and Gail Anita Moss used their home addresses, as well as the home addresses of previously indicted co-conspirators Mary Blair, Thomas Rabeau, Nikki Kight, Elton Blair and others, so IRS refund checks would be mailed to them. The other co-conspirators were indicted last January, and all pled guilty for their involvement in the fraudulent income tax scheme. For her involvement in the scheme, Mary Blair was sentenced to 52 months in prison, Thomas Rabeau was sentenced to 24 months in prison, and a fifth co-conspirator, Carter Hassman, who was already serving a sentence in the Florida Department of Corrections, was sentenced to 10 years in prison.
It is further alleged in the indictment that, during the course of the scheme, the defendants and others filed and caused to be filed approximately 344 false and fraudulent federal income tax returns, which falsely claimed approximately $1,656,721 in false, fictitious, and fraudulent refunds from the United States. A copy of the indictment is attached.Trial will be scheduled before Chief United States District Judge M. Casey Rodgers. If convicted, each defendant faces a maximum of ten years in prison for each of Counts One and Two. For the counts of filing false claims against the government, Cora Beard and Gail Anita Moss face up to five years in prison on each of their seven counts. For the counts of theft from the government, Cora Beard and Gail Anita Moss face up to ten years in prison on each of their seven counts. For the counts of aggravated identity theft, Cora Beard and Gail Anita Moss face a minimum mandatory sentence of two years imprisonment on each count, which must be run consecutively to any other sentence imposed.
The case is being prosecuted by Assistant U.S. Attorney Tiffany Eggers as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters. The indictment is the result of an investigation by the Internal Revenue Service – Criminal Investigations.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government's burden to prove guilt beyond a reasonable doubt.Fort Dodge Woman Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine pled guilty January 25, 2013, in federal court in Sioux City.
Christina Fulkerson, 38, from Fort Dodge, Iowa, was convicted of one count of conspiring to distribute methamphetamine and one count of possessing with intent to distribute methamphetamine.
At the plea hearing, Fulkerson admitted her involvement in a conspiracy from about 2011 through October 2012 that distributed more than 150 grams of actual (pure) methamphetamine in the Fort Dodge, Iowa, area. Fulkerson also admitted to distributing more than 19 grams of methamphetamine during four separate transactions to individuals cooperating with law enforcement. On October 1, 2012, law enforcement officers executed a search warrant at Fulkerson’s residence and seized over 30 grams of actual (pure) methamphetamine which Fulkerson admitted she planned to distribute to others. Fulkerson resides within 1000 feet of a protected location, Holy Rosary School Park.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Fulkerson remains in custody of the United States Marshal pending sentencing. On the conspiracy conviction, Fulkerson faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, a special assessment of $100, and at least ten years of supervised release following any imprisonment. On the possession conviction, Fulkerson faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 80 years’ imprisonment, a $10,000,000 fine, a special assessment of $100, and at least eight years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Clay County Sheriff’s Office, Story County Sheriff’s Office, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3049.
Fort Dodge Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to manufacture methamphetamine was sentenced January 25, 2013, to eleven years in federal prison.
Chad Panzi, 31, from Fort Dodge, Iowa, received the prison term after a September 13, 2012, guilty plea to conspiracy to manufacture methamphetamine. Panzi was previously convicted of possession of a precursor with intent to manufacture methamphetamine in the Iowa District Court for Humboldt County in 2008 and Panzi was also convicted of manufacturing methamphetamine in the Iowa District Court for Webster County in 2004.
At the guilty plea, Panzi admitted that from about 2009 through November 2011 he was involved in a conspiracy which manufactured at least 50 grams of actual (pure) methamphetamine. According to pseudoephedrine logs obtained in the investigation, from January 2011 through November 2011, Panzi acquired at least 45.12 grams of pseudoephedrine for the purposes of manufacturing methamphetamine.
Panzi was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Panzi was sentenced to 132 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Panzi is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigations, and Fort Dodge Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3018.
Former Pharmacy Technician Sentenced for Stealing NarcoticsRead the Press Release
Eugene, Ore. - Denise Richardson, 47, of Roseburg, Oregon, was sentenced to prison for stealing narcotics from the Roseburg Veteran's Affairs Hospital. Richardson is a former pharmacy technician at the Veteran's Affairs Hospital. Chief U.S. District Judge Ann Aiken sentenced Richardson to 24 months in prison and ordered her to pay restitution in the amount of $23,475.23, the amount the VA spent purchasing the narcotics.
After an investigation by the VA OIG and DEA, Richardson was charged with theft of government property for stealing the narcotics. Sentencing documents noted that Richardson had been a pharmacy technician for approximately 18 years and had access to pharmaceuticals including controlled narcotics like Oxycontin, Oxycodone, and Zolpidem (Ambien). Defendant discovered a way to manipulate the system used to track and dispense narcotics at the VA hospital and used it to divert drugs for her personal use and to provide to friends and/or family. Based on review of the pharmacy records, from approximately January 2010 until June 2011, defendant stole over 6000 pills of Oxycodone, Clonazepam, Zolpidem and Oxycontin from the VA pharmacy that cost the VA $23,475.23. The narcotics had a street value of approximately $250,000, but there is no evidence that defendant ever sold them.
Amanda Marshall, U. S. Attorney for the District of Oregon said "Prescription drug abuse is the fastest growing drug problem in the United States, and Oregon has the second-highest rate of opioid drug abuse in the nation. This defendant's diversion of a dangerous drug put countless lives at risk. Our office is committed to prosecuting theft from government agencies, particularly by employees who steal drugs and destroy lives."
Michael E. Seitler, Special Agent in Charge for the U.S. Department of Veterans Affairs, Office of Inspector General, Northwest Field Office, said "Maintaining the integrity of VA's delivery of healthcare to veterans is a critical issue for the OIG. We will continue to aggressively work with the US Attorney's Office, and our law enforcement partners to ensure that those who abuse the VA system for personal gain are brought to justice."
The VA OIG operates a toll-free hotline for anyone to anonymously report fraud, waste, or abuse. The Hotline can be reached at 1-800-488-8244 or via email at [email protected].
This investigation was conducted by the U.S. Department of Veteran's Affairs, Office of Inspector General, Criminal Investigations Division and the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Amy E. Potter.
Former Palm Beach County Middle School Principal Sentenced for Enticement of A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Miami Field Office, announced that Scott A. Blake, 47, of Palm Beach Gardens, was sentenced today to 120 months imprisonment by Senior United States District Judge Kenneth L. Ryskamp on charges of enticing a minor to engage in an illegal sexual activity in violation of Title 18, United States Code, Section 2422(b).
This case stemmed from an undercover investigation into several geographic location social networking websites. Blake, who at the time was the Principal of Polo Park Middle School, located in Wellington, Florida, contacted the undercover law enforcement officer via those websites. After a number of sexually suggestive conversations, Blake arranged to meet the officer, who he thought was a 15 year old boy, at a local mall for the purpose of engaging in illegal sexual activity. Blake arrived at the mall and was taken into custody. The HSI and other law enforcement officers executed a search warrant at Blake’s residence and seized computers, documents and records that resulted in this federal prosecution.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the members of the South Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorneys Lothrop Morris and Jennifer Millien.
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.
Former New York State Senator from Queens Pleads Guilty to Conspiring to Defraud State of over $87,000Read the Press Release
Earlier today, at the United States District Court for the Eastern District of New York in Brooklyn, New York, former New York State Senator Shirley Huntley pleaded guilty to a criminal Information charging her with conspiracy to commit mail fraud. Huntley served in the New York State Senate, representing the 10th District in Queens, from 2007 to 2012. During part of the time of the charged conspiracy, Huntley was a sitting State Senator.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
As charged in the Information, Huntley ran a Queens non-profit organization known as Parents Information Network, Inc. (PIN) that received public funds to help educate parents about the New York City public school system. From October 2005 through October 2008, Huntley embezzled approximately $87,700 from PIN. In furtherance of this scheme, Huntley falsely certified to New York State that these funds would be used, and had been used, to support PIN’s charitable mission. Instead, Huntley used the money for her own personal benefit and for the benefit of her family members and associates. During this time period, PIN received nearly all of its funding from New York State.
Huntley controlled PIN’s finances through a bank account which held PIN funds. Huntley stole from PIN by writing over $21,000 in checks from the PIN account to herself and a family member. Huntley used $500 of PIN funds to pay her personal credit card bill and embezzled more than $34,000 from PIN through ATM withdrawals. Huntley also embezzled funds from PIN by using straw recipients, who posed as legitimate recipients of payments from PIN. Huntley wrote checks for $24,500 to the straw recipients, who cashed the checks and returned substantially all of the funds to Huntley in cash.
In her plea agreement with the government, Huntley agreed to make restitution of $87,700 to the New York State Department of Education for the funds she embezzled. In addition, Huntley also agreed to make restitution of $1,000 in connection with an unrelated bribery scheme involving a cargo-handling business at John F. Kennedy International Airport.
The guilty plea took place before U.S. District Judge Jack B. Weinstein. When sentenced, Huntley faces up to five years of imprisonment and a fine of $250,000, in addition to restitution.
“Huntley’s experience and influence were supposed to be used for the benefit of her constituents. Instead, Huntley used her knowledge of the system to steal funds intended to help some of her neediest constituents, lining her own pockets at the expense of parents in need, and ultimately their children,” stated United States Attorney Lynch. “She will now be held to account for her crime. This guilty plea underscores our unwavering commitment to hold responsible those who abuse their authority and pursue their own financial interests instead of the public interest.” Ms. Lynch thanked the office of the New York State Attorney General and the Port Authority of New York and New Jersey for their assistance.
FBI Assistant Director-in-Charge Venizelos stated, “Because of the trust placed in them, elected officials should hold themselves to a higher ethical standard than the public at large. The law sets the bar lower, but still Huntley failed to clear it. In a sense, her victims are everyone whose confidence in government is undermined by such conduct.”
The government’s case is being prosecuted by Assistant United States Attorneys Daniel Spector, Paul Tuchmann, and Alexander Solomon.
The Defendant:
SHIRLEY HUNTLEY
Age: 74Former Massachusetts RMV Employee Charged with Conspiracy to Produce False Information DocumentsRead the Press Release
BOSTON - An former employee of the Massachusetts Registry of Motor Vehicles, located in Revere, was charged today in U.S. District Court on charges related to producing a false identification document.
Alexander Brewer, 24, of Boston, was charged in a criminal complaint with conspiracy to defraud the United States in connection with producing false identification documents.
It is alleged that from December 2011 through December 2012, Brewer knowingly and willfully issued Massachusetts driver’s licenses to individuals who presented legitimate Puerto Rican identity documents, in an identity other than their own, to obtain Massachusetts driver’s licenses for the purposes of concealing their true identities.
The punishment under the statute is up to five years in prison to be followed by up to three years of supervised release and up to a $250,000 fine.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of the Homeland Security Investigations in Boston; and Colonel Timothy Alben, Superintendent of the Massachusetts State Police made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption & Special Prosecutions Unit.
The Complaint affidavit sets forth allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Maryland Correctional Officer Pleads Guilty to Conspiracy to Obstruct JusticeRead the Press Release
Ryan Lohr, 26, a former correctional officer at the Roxbury Correctional Institution (RCI) in Hagerstown, Md., pleaded guilty today to conspiring to obstruct justice and destroy evidence from a March 9, 2008, assault of an inmate by RCI officers.
According to court documents filed in connection with his guilty plea, Lohr opened the door to inmate K.D.’s cell to allow other correctional officers to assault K.D. in retaliation for a prior incident involving K.D. and another officer. Lohr watched RCI officers use their fists and feet to strike K.D., who was restrained at the time of the assault. After Lohr learned that there would be an investigation into this beating, he met with other RCI officers and agreed to cover up the assault. Lohr directed others to clean up blood in K.D.’s cell, and watched a supervisor use what appeared to be a magnetic device in an effort to destroy surveillance video footage. A supervisor also told Lohr not to write a report about inmate K.D. and his injuries.
Lohr further admitted in court documents that he lied to RCI investigators and the Maryland State Police, when these agencies asked him about K.D.’s injuries. Lohr also told RCI officers to provide investigators with false information.
“Mr. Lohr admitted that he opened the door so that other correctional officers could assault an inmate, watched other correctional officers assault the restrained inmate, and conspired with others to cover up the assault,” said Assistant Attorney General Thomas E. Perez. “The U.S. Constitution protects inmates and the Justice Department will continue to vigorously prosecute correctional officers who use their official position to assault inmates or to cover up crimes committed by their fellow officers.”
Lohr faces a maximum penalty of 5 years in prison and a fine of $250,000. Sentencing is set for June 18, before U.S. District Judge James K. Bredar.
The case is ongoing and is being investigated by the Frederick Resident Agency of the FBI and is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division of the Department of Justice, with the assistance of the United States Attorney’s Office for the District of Maryland.
Former Employee of Timeshare Consulting Firm Pleads Guilty to Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A former employee of The Vacation Ownership Group LLC admitted today to conspiring to defraud owners of timeshare properties, U.S. Attorney Paul J. Fishman announced.
Eric Reilly, 34, of Galloway, N.J., pleaded guilty to an Information charging him with one count of conspiracy to commit mail and wire fraud. Reilly entered his guilty plea before U.S. District Court Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, purported to offer owners of timeshares consulting services, including timeshare cancellation services. In September 2010, Reilly started working at the VO Group and was trained by VO Group managers to call customers using a prepared script and regularly lie to customers. Reilly would call customers and falsely state that he was calling in response to a complaint they had made to timeshare developers and lenders. He gave customers the false impression that he was working for Wyndham Vacation Resorts, a developer of timeshare resorts. Reilly then would falsely represent that the VO Group could pay off the customers’ timeshares or have their timeshares cancelled. Reilly falsely told some customers that their credit would not be damaged if they stopped paying for their timeshares. Reilly gave some customers “references” who were actually VO Group employees posing as satisfied customers. After hearing Reilly’s false representations, some customers sent checks to the VO Group, including one customer who sent the VO Group a $31,385 check. Reilly admitted to causing more than $70,000 in losses.
At 2:00 p.m. today, other former members of the VO Group who were charged in a Superseding Indictment on Jan. 23, 2013, will be arraigned before Judge Hillman.
The mail and wire fraud conspiracy charge to which Reilly pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for May 17, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident
Agency, under the direction of Special Agent in Charge David Velazquez in Newark; and special
agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.13-048
Defense counsel: Gilbert J. Scutti Esq., Somerdale, Camden, N.J.
Florida Man Sentenced for Role in $30 Million Telemarketing Scam That Victimized over 22,000 PeopleRead the Press Release
John Robert Eddy, 30, of West Palm Beach, FL, was sentenced to 60 months in prison, 5 years supervised release, and ordered to pay a $100 special assessment, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Eddy pled guilty to one count of conspiracy to commit mail fraud and wire fraud. The indictment alleged that Eddy and others were involved in a telemarketing scam under the names Universal Marketing Solutions and Creative Vacation Solutions. The fraudulent companies operated in Florida and bilked over 22,000 victims of $30 million dollars, victimizing consumers in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in twenty eight (28) of the thirty eight (38) counties comprising the Southern District of Illinois.
The criminal indictment alleged that Eddy was an owner of a Universal Marketing Solutions franchise office. Beginning in October 2007, and continuing through at least January 2010, telemarketers for Universal Marketing Solutions and Creative Vacation Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. Telemarketers Eddy supervised then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs – fees they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within the next 60 to 90 days. Despite collecting fees from 22,000 victims, not a single timeshare unit was ever sold. Eddy and his co-conspirators simply pocketed the closing costs.
Approximately twenty-four others have been charged in connection with the Creative Vacation Solutions telemarketing scam. The company’s former chief executive, Jennifer Kirk, pled guilty to a criminal Information on June 30, 2011. She was sentenced on January 9, 2012 to over 16 years in prison and five years supervised release. More than a dozen others have also been sentenced, receiving prison terms that range from 1 to 14 years.
The prosecution follows an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, the Florida Attorney General’s Office, the Florida Department of Agriculture and Consumer Services, and the Boynton Beach Florida Police Department. The prosecution of the case was handled by Special Assistant U.S. Attorney Katherine Lewis and Assistant U.S. Attorney Bruce Reppert.
Felon Who Possessed Loaded Sawed-off Rifle in New Haven Sentenced to 63 Months in Federal PrisonRead the Press Release
January 30, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JOSEPH DONABY, also known as “Bummy Jack,” 32, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 63 months of imprisonment, followed by three years of supervised release, for possessing a loaded sawed-off rifle.
According to court documents and statements made in court, on June 23, 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received information that an individual known as “Bummy Jack” was attempting to sell a sawed-off shotgun for $350. At the direction of law enforcement, an individual called Bummy Jack’s cell phone to arrange a meeting in the area of Whalley Avenue and Blake Street in New Haven to conduct a transaction of the firearm. However, in the late afternoon of June 23, while they were en route to the meet location, ATF Task Force Officers heard radio transmissions related to the arrest of an individual who was in possession of a sawed-off firearm in the area of the designated meet location.
At approximately 6:00 p.m. on June 23, New Haven Police Department Dispatch notified officers via police radio that “Shot Spotter” had detected one gun shot on Blake Street in between Osborn Avenue and Diamond Street. Shot Spotter is a computerized system that has sensors throughout New Haven capable of detecting the location of gun shots through the monitoring of sound waves. New Haven Police officers responding to the area saw DONABY walking quickly on Blake Street across Osborn Avenue. As officers approached DONABY, he began to run. DONABY then removed a large brown and black firearm from his waist area in the vicinity of 96 Blake Street, refused orders to “drop the gun,” and threw the firearm over a fence. He then attempted to climb the fence and made further attempts to resist arrest before he was ultimately subdued by officers and placed under arrest.
New Haven Police subsequently recovered a sawed-off Weatherby, model Mark XXII, .22 caliber semi-automatic rifle, loaded with seven rounds of ammunition, in the area where DONABY had discarded a firearm.
Further investigation revealed that the number of a cell phone that was in DONABY’s possession at the time of his arrest is the same number used by ATF Task Force officers to arrange the firearm transaction with Bummy Jack earlier that day.
Prior to June 2011, DONABY had sustained several state convictions and a federal conviction for possession of a firearm by convicted felon. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
DONABY has been incarcerated since his arrest on June 23, 2011. On November 15, 2012, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case was prosecuted by Assistant United States Attorney Tracy Lee Dayton.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
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[email protected]Federal Court Preliminarily Bars Indianapolis Instant Tax Service Franchisee from Preparing Federal Tax ReturnsRead the Press Release
A federal court in Indianapolis has barred David Ray Franklin and his company, Instant Refund Tax Service (IRTS) – which does business as Instant Tax Service—from preparing tax returns and from operating a tax-preparation business, the Justice Department announced today. Instant Tax Service is a national tax-preparation chain operated by ITS Financial LLC, based in Dayton, Ohio. A federal court entered a preliminary injunction against the Ohio firm and its owner last November.
The Indiana preliminary injunction order, which remains in effect pending final resolution of the civil lawsuit, was signed by Judge Sarah Evans Barker of the U.S. District Court for the Southern District of Indiana. The court also permanently barred an alleged IRTS manager, William Brown, from preparing federal tax returns for others. The defendants consented to the court orders without admitting the allegations against them.
The government complaint in the case alleges that Franklin owned and operated 22 Instant Tax Service locations that prepared and filed over 10,000 federal tax returns in 2010 and 2011 combined. Brown allegedly worked for Franklin and managed one of Franklin’s busiest Instant Tax Service offices. The United States accused Franklin’s offices and Brown of preparing false and fraudulent income tax returns for customers, fabricating income for phony businesses to obtain larger tax credits, forging forms W-2, filing returns improperly based on paycheck stubs rather than W-2 wage statements, claiming false education tax credits and reporting false filing status. The complaint also alleged that Franklin’s offices filed tax returns without authorization and sold false and deceptive loan products to Instant Tax Service customers.
The case is one of five similar civil actions that the Justice Department brought against Instant Tax Service franchises and the corporate franchisor, ITS Financial, which claims to be the fourth-largest tax-preparation firm in the nation. The trial on the government’s request in the Ohio case to permanently shut down the Instant Tax Service franchisor is scheduled for May.In the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax-fraud schemes and the preparation of fraudulent returns. More information about those cases is available on the Justice Department website.
Related Materials:
United States v. David Ray Franklin, et al.
Stipulated Order for Permanent Injunction Against William Brown
Agreed Preliminary Injunction Order Against David Franklin and Instant Refund Tax Service, Inc.
Father and Son Sentenced for Their Roles in Fraud SchemeRead the Press Release
Tampa, Florida - U.S. District Judge Susan C. Bucklew today sentenced John Henley Fowler (64, Ft. Myers) to 5 years and ten months in federal prison for conspiracy to commit mail fraud and wire fraud. The court also sentenced his son, Jeffrey Robert Fowler (35, Ft. Myers), to 3 years and one month in federal prison on a similar charge. As part of the sentence, the court also ordered the forfeiture of bank accounts, vehicles, real property, computer equipment, a big screen television, iPad and iPhone, which are traceable to proceeds of the fraud scheme. In addition, the court ordered a money judgment in the amount of $3,771,701.88, the proceeds of the fraud scheme. In a related civil forfeiture proceeding, the government had already forfeited more than $2 million in fraudulent proceeds. The U.S. Attorney's Office will seek approval to have these funds distributed to the victims of this crime.
John Fowler pleaded guilty on September 19, 2012. Jeffrey Fowler pleaded guilty on September 18, 2012.
According to court documents, from about December 2010 through November 2011, conspirators developed a plan to use false and fraudulent representations to solicit victim-investors to wire funds into bank accounts, which they controlled, for investment in a purported gold futures program. The investment program was supposedly run by an existing New York-based investment firm called Paulson & Co., Inc. To further the fraud scheme, the Fowlers caused the incorporation of a Florida corporation named Paulson & Co., Inc. (Paulson-Florida), leased office space for the corporation in Ft. Myers, and opened bank accounts in the name of the corporation, all for the purpose of making Paulson-Florida appear to be legitimate. The Fowlers and their co-conspirators fraudulently represented that Paulson-Florida was a branch office of the real Paulson & Co., Inc. In fact, there was no connection whatsoever between the two entities.
The Paulson-Florida bank accounts and other accounts were used to receive more than $4 million in funds from victim-investors, who wanted to invest in the purported gold futures investment program. The Fowlers and their co-conspirators used the funds to perpetuate the fraud scheme for the personal enrichment of themselves, their family members, and friends.
This case was investigated by the United States Secret Service and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Ex-TSA Officers Sentenced for Conspiring to Smuggle Drugs Through Hartsfield-JacksonRead the Press Release
ATLANTA – Two now former TSA officers who conspired and attempted to smuggle drugs through Hartsfield-Jackson International Airport security have been sentenced by United States District Judge Charles Pannell. Today, Richard C. Cook II, 28, of Henry County, Georgia was sentenced to 11 years in prison; and on January 4, 2013, Timothy G. Gregory, 26, of DeKalb County, Georgia, was sentenced to 6 years in prison.
United States Attorney Sally Quillian Yates said, “The defendants abused their positions as TSA officers to smuggle drugs through the world’s busiest airport. The citizens of this district deserve better than Mr. Cook and Mr. Gregory – they deserve officers who obey the laws that they are entrusted to enforce. These significant prison sentences should serve as stinging reminders that corruption will not be tolerated.”
James E. Ward, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (OIG), Atlanta Field Office stated, “Let today’s sentencing demonstrate to the public that federal and local law enforcement agencies stand committed to eradicate corruption, particularly among the few who choose to tarnish their badge and oath of office. DHS OIG and its law enforcement partners will continue to hold such shameless individuals accountable.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “As officers of TSA, these two defendants abandoned their positions of trust and today they will answer for their actions. The FBI remains committed in working with its various law enforcement partners in bringing forward for prosecutions all matters concerning public corruption.”
According to United States Attorney Yates, the charges and other information presented in court: Beginning in January 2012, on multiple occasions, Cook and Gregory misused their positions as officers with the Transportation Security Administration (TSA) to smuggle what they believed to be illegal drugs through Atlanta’s airport security.
The investigation began after authorities received information from various sources that Cook was willing to use his position to smuggle contraband into secure facilities. Based on that information, federal law enforcement officers initiated an investigation into Cook’s activities. Specifically, on January 11, 2012, Cook met with two undercover officers, both of whom were posing as drug cartel members. During the meeting, the undercover officers provided Cook with 3 kilograms of fake drugs, that Cook believed to be heroin, and $3,500 in cash, which was partial payment to Cook to smuggle the drugs through airport security. Thereafter, Cook, who was wearing his TSA uniform, went to the airport, transported the drugs through the TSA security checkpoint, and delivered the drugs to an undercover officer inside the terminal. Cook was then paid another $4,000 in cash, which was the remaining payment for smuggling the drugs through security.
Similarly, on January 26, 2012, Cook met with an undercover officer before reporting for his TSA shift at the airport. During this meeting, the undercover officer provided Cook with 3 kilograms of fake drugs that Cook believed to be heroin, and $4,000 in cash, which was partial payment to Cook to smuggle the drugs through airport security. Thereafter, Cook, who was wearing his TSA uniform, went to the airport, transported the drugs through the TSA security checkpoint, and delivered the drugs to another undercover officer in the terminal. The undercover officer then paid Cook $3,500, which was the remaining portion of Cook’s fee for smuggling the drugs through security. In both sting operations, Cook believed that he was smuggling heroin through airport security.In February 2012, Cook resigned from the TSA. However, Cook recruited TSA Officer Gregory to assist with the drug smuggling operation. Cook introduced Gregory to the undercover officers who were posing as drug traffickers, and received a referral fee of $1,000.
On February 24, 2012, an undercover officer provided Gregory with 5 kilograms of fake cocaine and $5,000 in cash. Thereafter, Gregory, who was wearing his TSA uniform, went to the airport, transported the cocaine through the TSA security checkpoint, and delivered the drugs to another undercover officer in the terminal.On May 4, 2012, undercover officers provided Gregory with 10 kilograms of fake cocaine, which Gregory had agreed to transport from Atlanta to Commerce, Georgia.
Today, Cook was sentenced to 11 years in prison, to be followed by 5 years of supervised release, and fined $16,000. On January 4, 2013, Gregory was sentenced to 6 years in prison, to be followed by 5 years of supervised release, and fined $5,000.This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security - Office of the Inspector General, and the United States Marshals Service.
Assistant United States Attorney Jeffrey W. Davis prosecuted this case.
The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney's Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.