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Tuesday 29 January 2013
Former Iraqi Terrorists, Living in Kentucky, Sentenced for Terrorist ActivitiesRead the Press Release
– Defendants Attempted to Ship Weapons and Money from the United States to Iraqi Insurgents
– Defendants Admitted to Extensive Terrorist Activities Against U.S. Soldiers in IraqBOWLING GREEN, Ky. – Two Iraqi citizens living in Bowling Green, Kentucky, who admitted using IEDs against U.S. soldiers in Iraq and who attempted to send weapons and money to Al-Qaeda in Iraq (AQI) for the purpose of killing U.S. soldiers, were sentenced today to serve federal prison terms by Senior Judge Thomas B. Russell in U.S. District Court, announced Lisa Monaco, Assistant Attorney General for National Security; David J. Hale, U.S. Attorney for the Western District of Kentucky; and Perrye K. Turner, Special Agent in Charge of the FBI Louisville Division. Mohanad Shareef Hammadi, 25, a former resident of Iraq, was sentenced to life imprisonment in federal prison; and Waad Ramadan Alwan, age 31, a former resident of Iraq, was sentenced to 40 years in federal prison, followed by a life term of supervised release. Both defendants had pleaded guilty to federal terrorism charges.
"These two former Iraqi insurgents participated in terrorist activities overseas and attempted to continue providing material support to terrorists while they lived here in the United States. With today's sentences, both men are being held accountable," said Lisa Monaco, Assistant Attorney General for National Security. “I thank the dedicated professionals in the law enforcement and intelligence communities who were responsible for this successful outcome.”
“These are experienced terrorists who willingly and enthusiastically participated in what they believed were insurgent support operations designed to harm American soldiers in Iraq,” stated David J. Hale, United States Attorney. “The serious crimes of both men merit lengthy punishment, and only the value of Alwan’s immediate and extensive cooperation with law enforcement justifies our recommendation of a reduced sentence for him. Bringing these men to justice is the result of a comprehensive law enforcement effort. The FBI agents of the Louisville Division, along with the federal and local law enforcement members of the Joint Terrorism Task Forces here in Kentucky, including the Bowling Green Police Department, and our many other partners, are to be commended.”
"Protecting the United States from terrorist attacks remains the FBI's top priority," said Perrye K. Turner, Special Agent in Charge of the FBI in Kentucky. "Using our growing suite of investigative and intelligence capabilities, FBI Agents and Analysts assigned to our Bowling Green office were able to neutralize a potential threat. Our local Joint Terrorism Task Force, comprised of FBI Agents and other local, state and federal agencies from across the Commonwealth, remains committed to dismantling extremist networks and cutting off financing and other forms of support provided by terrorist sympathizers, whether they are operating in Kentucky or worldwide."
"Today, the sentencing of Alwan and Hammadi represents the culmination of the extensive, effective and focused efforts of the U.S. Attorney's Office and the Kentucky Division of the FBI for their roles in the investigation and prosecution of these would-be terrorists. I want to thank U.S. Attorney David Hale, the Kentucky Division of the FBI and the members of the FBI Bowling Green local office for their individual and collective efforts in bringing Alwan and Hammadi to justice for their crimes against the people of Kentucky and the United States,” stated Chief Doug Hawkins, Bowling Green Police Department.
Alwan, whose fingerprints were found on an unexploded IED found in Iraq, pleaded guilty earlier in the case on December 16, 2011 to all counts of a 23-count federal indictment. He pleaded guilty to conspiring to kill U.S. nationals abroad; conspiring to use a weapon of mass destruction (explosives) against U.S. nationals abroad; distributing information on the manufacture and use of IEDs; attempting to provide material support to terrorists and to Al Qaeda in Iraq (AQI); and conspiring to transfer, possess and export Stinger missiles. Hammadi pleaded guilty on August 21, 2012 to a 12-count superseding indictment. Charges against him included attempting to provide material support to terrorists and to Al Qaeda in Iraq (AQI); conspiring to transfer, possess and export Stinger missiles; and making a false statement in an immigration application. At today’s sentencing, at the request of the United States, Alwan received a reduced sentence due to his cooperation with federal law enforcement. The United States asked for no reduction of Hammadi’s sentence.
According to information presented by the United States in connection with today’s sentencings, Hammadi and Alwan both admitted, in FBI interviews that followed waiver of their Miranda rights, to participation in the purported material support operations in Kentucky, and both provided the FBI details of their prior involvement in insurgent activities while living in Iraq. Both men believed their activities in Kentucky were supporting AQI. Alwan admitted participating in IED attacks against U.S. soldiers in Iraq, and Hammadi admitted to participating in 10 to 11 IED attacks as well as shooting at a U.S. soldier in an observation tower.
Court documents filed in this case reveal that the Bowling Green office of the FBI’s Louisville Division initiated an investigation of Alwan in which they used a confidential human source (CHS). The CHS met with Alwan and recorded their meetings and conversations beginning in August 2010. The CHS represented to Alwan that he was working with a group to ship money and weapons to Mujahadeen in Iraq. From September 2010 through May 2011, Alwan participated in ten separate operations to send weapons and money that he believed were destined for terrorists in Iraq. Between October 2010 and January 2011, Alwan drew diagrams of multiple types of IEDs and instructed the CHS how to make them. In January 2011, Alwan recruited Hammadi, a fellow Iraqi national living in Bowling Green, to assist in these material support operations. Beginning in January 2011 and continuing until his arrest in late May 2011, Hammadi participated with Alwan in helping load money and weapons that he believed were destined for terrorists in Iraq.
Documents filed by the United States describe in detail the material support activities of the men in Bowling Green. Without Hammadi present, Alwan loaded money and weapons he believed were being sent to Iraq on five occasions from September 2010 through February 2011, handling 5 rocket-propelled grenade launchers, 5 machine guns, 2 sniper rifles, 2 cases of C4 explosive, and what he believed to be $375,000. After Hammadi joined Alwan in January 2011, the two men loaded money and weapons together on five occasions from January to May 2011. Together, on these five occasions, they loaded 5 rocket-propelled grenade launchers, 5 machine guns, 5 cases of C4 explosive, 2 sniper rifles, 1 box of 12 hand grenades, 2 Stinger surface-to-air missile launchers, and what they believed to be a total of $565,000. Alwan and Hammadi were recorded by video during these operations.
In speaking with the CHS, Alwan spoke of his efforts to kill U.S. soldiers in Iraq, stating “lunch and dinner would be an American.” Hammadi told the CHS that he had experience in Iraq with “Strelas” (a Russian made, portable, shoulder-fired surface-to-air missile launcher) and discussed shipping “Strelas” in future operations.
According to the charging documents, Hammadi entered the United States in July 2009, and, after first residing in Las Vegas, moved to Bowling Green. Hammadi and Alwan were arrested on May 25, 2011, in Bowling Green on criminal complaints. Both defendants were closely monitored by federal law enforcement authorities in the months leading up to their arrests. Neither was charged with plotting attacks within the United States. All of the weapons, including Stinger missiles, had been rendered inert before being handled by Hammadi and Alwan. The weapons and money handled by the men in the United States were never provided to AQI, but instead were carefully controlled by law enforcement as part of the undercover operation.
The prosecution was handled by Assistant U.S. Attorneys Michael Bennett and Bryan Calhoun from the U.S. Attorney’s Office for the Western District of Kentucky and Trial Attorney Larry Schneider from the Counterterrorism Section of the Justice Department’s National Security Division.
This case was investigated by the Louisville Division of the FBI. Assisting in the investigation were members of the Louisville and Lexington Joint Terrorism Task Forces, U.S. Immigration and Customs Enforcement, U.S. Marshals Service, U.S. Department of Defense, U.S. Citizenship and Immigration Services and the Bowling Green Police Department.
Former Iraqi Terrorists Living in Kentucky Sentenced for Terrorist ActivitiesRead the Press Release
Two Iraqi citizens living in Bowling Green, Ky., who admitted using improvised explosive devices (IEDs) against U.S. soldiers in Iraq and who attempted to send weapons and money to Al-Qaeda in Iraq (AQI) for the purpose of killing U.S. soldiers, were sentenced today to serve federal prison terms by Senior Judge Thomas B. Russell in U.S. District Court for the Western District of Kentucky.
The sentences was announced Lisa Monaco, Assistant Attorney General for National Security; David J. Hale, U.S. Attorney for the Western District of Kentucky; and Perrye K. Turner, Special Agent in Charge of the FBI Louisville Division.
Mohanad Shareef Hammadi, 25, a former resident of Iraq, was sentenced to life in federal prison, and Waad Ramadan Alwan, 31, a former resident of Iraq, was sentenced to 40 years in federal prison, followed by a life term of supervised release. Both defendants had pleaded guilty to federal terrorism charges.
“These two former Iraqi insurgents participated in terrorist activities overseas and attempted to continue providing material support to terrorists while they lived here in the United States. With today’s sentences, both men are being held accountable,” said Assistant Attorney General Monaco. “I thank the dedicated professionals in the law enforcement and intelligence communities who were responsible for this successful outcome.”“These are experienced terrorists who willingly and enthusiastically participated in what they believed were insurgent support operations designed to harm American soldiers in Iraq,” stated U.S. Attorney Hale. “The serious crimes of both men merit lengthy punishment, and only the value of Alwan’s immediate and extensive cooperation with law enforcement justifies our recommendation of a reduced sentence for him. Bringing these men to justice is the result of a comprehensive law enforcement effort. The FBI agents of the Louisville Division, along with the federal and local law enforcement members of the Joint Terrorism Task Forces here in Kentucky, including the Bowling Green Police Department, and our many other partners, are to be commended.”
“Protecting the United States from terrorist attacks remains the FBI's top priority,” said FBI Special Agent in Charge Turner. “Using our growing suite of investigative and intelligence capabilities, FBI agents and analysts assigned to our Bowling Green office were able to neutralize a potential threat. Our local Joint Terrorism Task Force, comprised of FBI Agents and other local, state and federal agencies from across the Commonwealth, remains committed to dismantling extremist networks and cutting off financing and other forms of support provided by terrorist sympathizers, whether they are operating in Kentucky or worldwide.”
“Today, the sentencing of Alwan and Hammadi represents the culmination of the extensive, effective and focused efforts of the U.S. Attorney's Office and the Kentucky Division of the FBI for their roles in the investigation and prosecution of these would-be terrorists. I want to thank U.S. Attorney David Hale, the Kentucky Division of the FBI and the members of the FBI Bowling Green local office for their individual and collective efforts in bringing Alwan and Hammadi to justice for their crimes against the people of Kentucky and the United States,” stated Chief Doug Hawkins, Bowling Green Police Department.Alwan, whose fingerprints were found on an unexploded IED found in Iraq, pleaded guilty earlier in the case on Dec. 16, 2011, to all counts of a 23-count federal indictment. He pleaded guilty to conspiring to kill U.S. nationals abroad; conspiring to use a weapon of mass destruction (explosives) against U.S. nationals abroad; distributing information on the manufacture and use of IEDs; attempting to provide material support to terrorists and to AQI and conspiring to transfer, possess and export Stinger missiles.
Hammadi pleaded guilty on Aug. 21, 2012, to a 12-count superseding indictment. Charges against him included attempting to provide material support to terrorists and to AQI; conspiring to transfer, possess and export Stinger missiles; and making a false statement in an immigration application. At today’s sentencing, at the request of the United States, Alwan received a reduced sentence due to his cooperation with federal law enforcement. The United States asked for no reduction of Hammadi’s sentence.
According to information presented by the United States in connection with today’s sentencings, Hammadi and Alwan both admitted, in FBI interviews that followed waiver of their Miranda rights, to participation in the purported material support operations in Kentucky, and both provided the FBI details of their prior involvement in insurgent activities while living in Iraq. Both men believed their activities in Kentucky were supporting AQI. Alwan admitted participating in IED attacks against U.S. soldiers in Iraq, and Hammadi admitted to participating in 10 to 11 IED attacks as well as shooting at a U.S. soldier in an observation tower.
Court documents filed in this case reveal that the Bowling Green office of the FBI’s Louisville Division initiated an investigation of Alwan in which they used a confidential human source (CHS). The CHS met with Alwan and recorded their meetings and conversations beginning in August 2010. The CHS represented to Alwan that he was working with a group to ship money and weapons to Mujahadeen in Iraq. From September 2010 through May 2011, Alwan participated in ten separate operations to send weapons and money that he believed were destined for terrorists in Iraq. Between October 2010 and January 2011, Alwan drew diagrams of multiple types of IEDs and instructed the CHS how to make them. In January 2011, Alwan recruited Hammadi, a fellow Iraqi national living in Bowling Green, to assist in these material support operations. Beginning in January 2011 and continuing until his arrest in late May 2011, Hammadi participated with Alwan in helping load money and weapons that he believed were destined for terrorists in Iraq.Documents filed by the United States describe in detail the material support activities of the men in Bowling Green. Without Hammadi present, Alwan loaded money and weapons he believed were being sent to Iraq on five occasions from September 2010 through February 2011, handling five rocket-propelled grenade launchers, five machine guns, two sniper rifles, two cases of C4 explosive and what he believed to be $375,000. After Hammadi joined Alwan in January 2011, the two men loaded money and weapons together on five occasions from January to May 2011. Together, on these five occasions, they loaded five rocket-propelled grenade launchers, five machine guns, five cases of C4 explosive, two sniper rifles, one box of 12 hand grenades, two Stinger surface-to-air missile launchers and what they believed to be a total of $565,000. Alwan and Hammadi were recorded by video during these operations.
In speaking with the CHS, Alwan spoke of his efforts to kill U.S. soldiers in Iraq, stating “lunch and dinner would be an American.” Hammadi told the CHS that he had experience in Iraq with “Strelas” (a Russian made, portable, shoulder-fired surface-to-air missile launcher) and discussed shipping “Strelas” in future operations.
According to the charging documents, Hammadi entered the United States in July 2009, and, after first residing in Las Vegas, moved to Bowling Green. Hammadi and Alwan were arrested on May 25, 2011, in Bowling Green on criminal complaints. Both defendants were closely monitored by federal law enforcement authorities in the months leading up to their arrests. Neither was charged with plotting attacks within the United States. All of the weapons, including Stinger missiles, had been rendered inert before being handled by Hammadi and Alwan. The weapons and money handled by the men in the United States were never provided to AQI, but instead were carefully controlled by law enforcement as part of the undercover operation.
This case was investigated by the Louisville Division of the FBI. Assisting in the investigation were members of the Louisville and Lexington Joint Terrorism Task Forces, U.S. Immigration and Customs Enforcement, U.S. Marshals Service, U.S. Department of Defense, U.S. Citizenship and Immigration Services and the Bowling Green Police Department.
The prosecution was handled by Assistant U.S. Attorneys Michael Bennett and Bryan Calhoun from the U.S. Attorney’s Office for the Western District of Kentucky and Trial Attorney Larry Schneider from the Counterterrorism Section of the Justice Department’s National Security Division.
Former Finance Director of the Flood Team Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO - Ruth Jackson pled guilty to embezzling over $40,000 by diverting checks and funds payable to The Flood Team.
The Flood Team provides remediation and restoration services related to water damage, and in August 2011, hired Ruth Jackson as Director of Finance for the business. In that capacity, Jackson had responsibility for a variety of matters relating to the books, records and finances of The Flood Team. Jackson's responsibilities included paying bills, preparing deposits and managing various bank accounts.
According to court documents, Jackson secretly kept an old corporate account open and hidden from the owner of the business. Between November 2011 and late April 2012, Jackson embezzled over $40,000 by diverting checks and funds payable to The Flood Team into the secret account and wrote checks to herself, which she cashed at various locations in the area.
RUTH JACKSON, St. Louis, MO, pled guilty to one felony count of bank fraud before United States District Judge John Ross. Sentencing has been set for May 2, 2013.
Bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million.
In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.The case was investigated by the United States Postal Inspection Service. Assistant United States Attorney John Bodenhausen is handling the case for the U.S. Attorney's Office.
Former Executive Convicted for Role in Price-Fixing Conspiracy Involving Coastal Freight Services Between the Continental United States and Puerto RicoRead the Press Release
WASHINGTON – Following a two-week trial, a federal jury in Puerto Rico today convicted a former executive of a Florida-based coastal water freight transportation company for his participation in a conspiracy to fix rates and surcharges for water transportation of freight between the continental United States and Puerto Rico, the Department of Justice announced.
Frank Peake, the former president of Sea Star Line LLC, was found guilty today in the U.S. District Court for the District of Puerto Rico, of participating in a conspiracy to fix rates and surcharges for water transportation of freight between the continental United States and Puerto Rico from at least as early as late 2005, until at least April 2008.
“The coastal shipping price-fixing conspiracy affected the price of nearly every product that was shipped to and from Puerto Rico during the conspiracy,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice's Antitrust Division. “This successful prosecution shows that the division will hold accountable high-level executives who perpetuate these crimes.”
Sea Star pleaded guilty on Dec. 20, 2011, and was sentenced by Judge Daniel R. Dominguez to pay a $14.2 million criminal fine for its role in the conspiracy from as early as May 2002, until at least April 2008. Sea Star transports a variety of cargo shipments, such as heavy equipment, perishable food items, medicines and consumer goods, on scheduled ocean voyages between the continental United States and Puerto Rico.
According to evidence presented at trial, Sea Star, Peake and co-conspirators carried out the conspiracy by agreeing during meetings and communications to allocate customers of Puerto Rico freight services and to rig bids and fix the rates and surcharges to be charged to purchasers of water transportation of freight between the continental United States and Puerto Rico. The department said the conspirators also engaged in meetings for the purpose of monitoring and enforcing adherence to the agreed-upon rates and sold Puerto Rico freight services at collusive and noncompetitive rates.
Including today’s jury conviction, as a result of this ongoing investigation, three companies and six individuals have pleaded guilty or been convicted at trial. The five individuals and three companies that have been sentenced have been ordered to serve a total of more than 11 years in prison and to pay more than $46 million in criminal fines.
Peake was convicted of price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s conviction arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the coastal water freight transportation industry, which is being conducted by the Antitrust Division’s National Criminal Enforcement Section; the Baltimore Resident Agency of the Department of Defense’s Office of the Inspector General, Defense Criminal Investigative Service (DCIS); the Miami Field Office of the Department of Transportation’s Office of Inspector General; and the J acksonville Field Office of the FBI. Anyone with information concerning anticompetitive conduct in the coastal water freight transportation industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.htm or contact DCIS’s Baltimore Resident Agency at 410-347-1620.
Former Dockworker Sentenced to 30 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. – A former International Longshoremen’s Association (“ILA”) member was sentenced to 30 months in prison today for conspiring to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Edward Aulisi, 53,of Flemington, N.J., previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh in Newark federal court to conspiring to extort Christmastime tributes from the ILA Local 1235 members – Count Three of the Second Superseding Indictment against him.
According to documents filed in this case and statements made in court:Edward Aulisi conspired with his father, Vincent Aulisi – the former President of ILA Local 1235 who succeeded another co-defendant, Albert Cernadas – and Michael Coppola, a Genovese organized crime family captain, in the scheme. Coppola was convicted in July 2009 following a trial in the Eastern District of New York of racketeering and racketeering conspiracy, based in part on acts relating to extortion and wire fraud concerning ILA Local 1235.
Edward Aulisi admitted he participated in telephone calls in furtherance of the extortion conspiracy in March 2007 with Coppola – who was then a fugitive from a New Jersey state murder after having been served with a summons to provide DNA in 1996. Edward Aulisi agreed that he passed information to Coppola on the calls – specifically that Cernadas had told Vincent Aulisi the Christmastime extortion scheme would cease once Cernadas left the presidency, and Vincent Aulisi stated it would continue. Edward Aulisi also admitted Vincent Aulisi had asked him to tell Coppola the Christmastime extortion collections had almost doubled.
Edward Aulisi admitted it had been his intention to deliver Christmastime tribute money extorted from ILA Local 1235 members to Coppola had Coppola not been arrested shortly after the phone calls.
In addition to the prison term, Judge Cavanaugh sentenced Edward Aulisi to two years of supervised release and fined him $10,000.
Coppola is serving a 16-year prison term on his conviction.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey and New York and the Department of Labor’s Office of Inspector General with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jacquelyn M. Kasulis and Jack Dennehy of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
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Defense counsel: Robert E. Lytle Esq., Lawrenceville, N.J.Former Dockworker Sentenced to 30 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. – A former International Longshoremen’s Association (“ILA”) member was sentenced to 30 months in prison today for conspiring to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Edward Aulisi, 53,of Flemington, N.J., previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh in Newark federal court to conspiring to extort Christmastime tributes from the ILA Local 1235 members – Count Three of the Second Superseding Indictment against him.
According to documents filed in this case and statements made in court:
Edward Aulisi conspired with his father, Vincent Aulisi – the former President of ILA Local 1235 who succeeded another co-defendant, Albert Cernadas – and Michael Coppola, a Genovese organized crime family captain, in the scheme. Coppola was convicted in July 2009 following a trial in the Eastern District of New York of racketeering and racketeering conspiracy, based in part on acts relating to extortion and wire fraud concerning ILA Local 1235.
Edward Aulisi admitted he participated in telephone calls in furtherance of the extortion conspiracy in March 2007 with Coppola – who was then a fugitive from a New Jersey state murder after having been served with a summons to provide DNA in 1996. Edward Aulisi agreed that he passed information to Coppola on the calls – specifically that Cernadas had told Vincent Aulisi the Christmastime extortion scheme would cease once Cernadas left the presidency, and Vincent Aulisi stated it would continue. Edward Aulisi also admitted Vincent Aulisi had asked him to tell Coppola the Christmastime extortion collections had almost doubled.
Edward Aulisi admitted it had been his intention to deliver Christmastime tribute money extorted from ILA Local 1235 members to Coppola had Coppola not been arrested shortly after the phone calls.
In addition to the prison term, Judge Cavanaugh sentenced Edward Aulisi to two years of supervised release and fined him $10,000.
Coppola is serving a 16-year prison term on his conviction.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey and New York and the Department of Labor’s Office of Inspector General with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jacquelyn M. Kasulis and Jack Dennehy of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
Defense counsel: Robert E. Lytle Esq., Lawrenceville, N.J.
Former CENTCOM Employee Pleads Guilty to Attempted Sexual Enticement of A ChildRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces today that Stephen Governale (49, Tampa) pleaded guilty to attempted enticement of a minor to engage in a sexual activity. Governale is facing a mandatory minimum of 10 years, up to life in federal prison. His sentencing hearing has been set for June 13, 2013. Governale was indicted on October 10, 2012.
Governale is a United States Air Force Reserve Lieutenant Colonel, who, at the time of his arrest, was a protocol officer at CENTCOM in Tampa. According to court documents, on September 11, 2012, the Federal Bureau of Investigation was contacted by the parents of a 17-year-old child who was receiving sexually inappropriate messages from Governale. In an interview, the child victim explained meeting Governale through an organization affiliated with the military. The child victim stated that he had gone with Governale to conferences and had stayed in Governale’s hotel room. The victim also said that they had watched pornographic movies in the hotel room and engaged in sexual activity.
On September 21, 2012, as Governale was planning to travel to Central Florida for business, a Task Force Agent with the FBI assumed the child victim’s on-line identity. The agent began to communicate with Governale using FaceBook. In the FaceBook chats, Governale attempted to entice the child victim to engage in sexual activity. Governale arranged to meet the victim at a location in Central Florida. When Governale arrived, he was arrested by the FBI.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Bessemer Housing Authority Bookkeeper Sentenced to 30 Months in PrisonRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former bookkeeper for the Bessemer Housing Authority to 30 months in prison and six months home detention for stealing nearly $200,000 from the agency with forged checks, announced U.S. Attorney Joyce White Vance and Housing and Urban Development Inspector General David A. Montoya.
U.S. District Judge L. Scott Coogler sentenced LAWANA R. LAWRENCE, 50, of Jasper, to six months in prison and six months of home detention for theft of government property, plus two years in prison for aggravated identity theft. Lawrence pleaded guilty to the charges in August. Lawrence also must forfeit $198,700 to the government as proceeds of illegal activity and pay the same amount in restitution.
She is scheduled to report to prison April 8.
“This defendant worked for a government agency whose mission is to help low-income families find affordable rental housing. She undercut that mission and took advantage of her position to steal from the program and the tax payers who support it,” Vance said. “Her abuse of the public trust warrants this sentence.”
HUD governs the rental assistance program and annually provides money to the Bessemer Housing Authority to support it.
Lawrence worked as a bookkeeper for the Bessemer Housing Authority in 2010. From June through September that year, she wrote 28 checks to herself or to the person she was living with and affixed electronic signatures of the Housing Authority’s executive director and its board chairman to the checks, according to Lawrence’s plea agreement with the government. She had access to the signatures on her work computer, but placed them on the checks without authorization.
Between July 6, 2010, and Sept. 13, 2010, Lawrence deposited the checks into a bank account assigned to Lawana R. Lawrence, doing business as Woni’s Bookshelf. Lawrence owned Woni’s, a bookstore in Sumiton, according to the plea agreement. Housing Authority checks deposited into that account totaled $198,700.
The HUD Office of Inspector General, in cooperation with the Bessemer Police Department and the Jefferson County District Attorney’s Office in Bessemer, investigated the case, and it is being prosecuted by the U.S. Attorney’s Office for the Northern District of Alabama.
Former Alabama Officer Indicted for Using Excessive ForceRead the Press Release
A federal grand jury today indicted a former Town Creek, Ala., police officer for violating an individual’s civil rights during the course of an arrest, announced Assistant Attorney General for the Civil Rights Division Thomas E. Perez, U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The indictment charges Brandon Shane Mundy, 32, of Oxford, Ala., with striking a man with a dangerous weapon and causing bodily injury during the man’s November 2009 arrest in a northern Alabama town. Mundy’s action deprived the man, identified as J.T., of the constitutional right to be free from the use of unreasonable force by someone acting under the color of law, according to the indictment.
If convicted, Mundy could face a maximum sentence of 10 years in prison and a $250,000 fine. An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The FBI is investigating the case, and is being prosecuted by Assistant U.S. Attorney Elizabeth Holt and Justice Department Civil Rights Division Trial Attorney Daniel H. Weiss.
Federal Prosecutors Charge Adams Produce CEORead the Press Release
BIRMINGHAM – Federal prosecutors today charged the CEO of Adams Produce Company with fraud against the company, failure to report a felony against the government and failure to file federal income tax returns, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and IRS Criminal Investigation Division Acting Special Agent in Charge Veronica Hyman-Pillot.
The U.S. Attorney’s Office charged former Adams Produce Chief Executive Officer SCOTT DAVID GRINSTEAD in a four-count information filed in U.S. District Court. Prosecutors also filed a plea agreement with Grinstead, in which he acknowledges his guilt and agrees to plead guilty.
As part of his plea agreement, Grinstead, 45, of Birmingham, must pay $450,000 in restitution to the bankruptcy estate of Adams Produce for the benefit of the company’s employees who were not fully paid because of Adams’ abrupt closing and its filing for bankruptcy last year.
“This case involves the chief executive officer of a company who allowed officers and employees to continue cheating the government on contracts involving military bases and schools while, at the same time, he continued to steal from the company,” Vance said. “This plea holds him responsible for criminal acts that harmed the government and his company. We are pleased that resolution of this case will bring some compensation to the employees who lost their jobs and did not receive their final paychecks from Adams Produce,” she said. “The investigation of wrongdoing by former officers and employees continues, and any who have committed crimes will be held accountable.”
Grinstead is the second Adams Produce official prosecutors have charged in connection with fraud at the Birmingham-based company that had been a leading distributor of fresh fruits and vegetables across the Southeast for many years. In December, the U.S. Attorney’s Office charged Christopher Alan Pfahl, 41, of Birmingham, with conspiracy to defraud the federal government of several hundred thousand dollars through a scheme to create false invoices and purchase orders. Pfahl was a purchasing program specialist for Adams Produce. He pleaded guilty to the charge last week.
That conspiracy involved Pfahl and other officers and employees of Adams Produce engaging in a scheme to create false records that reflected a higher purchasing cost for fruits and vegetables than the company actually paid. The inflated costs were then presented to the U.S. Government, which had agreed to pay a certain amount over Adams’ cost for produce.
The federal government, through the Defense Supply Center Philadelphia, was one of Adams’ customers. The supply center contracted with Adams Produce to provide fresh fruits and vegetables to military bases, public school systems, junior colleges and universities. Adams Produce entered into contracts with the government worth millions of dollars, according to court records.
One of the charges against Grinstead is misprision of a felony for knowing of the fraud Pfahl and others were engaged in and allowing it to continue and end slowly, so as to avoid raising red flags with the government, rather than stopping it immediately and reporting it to authorities.
Grinstead also is charged with wire fraud for wiring hundreds of thousands of dollars from an Adams Produce account to American Express to pay for clothing, jewelry, personal travel for himself and his family, lawn care at his home, and items for a house on Lake Martin, according to the information.
Grinstead faces two counts of failure to file a federal tax return, one for 2009 and one for 2010. The information charges that Grinstead had a gross income of about $748,801 for the 2009 calendar year and willfully failed to file an income tax return with the Internal Revenue Service. In 2010, according to the information, Grinstead received about $1,878,700 in gross income and willfully did not file a return with the IRS.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine. For misprision of a felony, the maximum sentence is three years in prison and a $250,000 fine. The maximum penalty for failure to file an income tax return is one year in prison and a $100,000 fine.
The FBI and the IRS investigated the case, and it is being prosecuted by Assistant U.S. Attorney George A. Martin Jr.
Federal Jury Finds Mortgage Broker Guilty in $100 Million Fraudulent Loans SchemeRead the Press Release
PITTSBURGH - After deliberating for three hours, a federal jury of five men and seven women found Lewis Whoolery guilty of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Whoolery, 44, currently of Delray Beach, Fla., and formerly of Port Vue, Pa., was tried before United States District Judge Joy Flowers Conti in Pittsburgh.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that Whoolery operated a mortgage broker business called First Capital Home Equity ("First Capital"). In 2003, Whoolery recruited an unlicensed appraiser named Kenneth Cowden to prepare fraudulent appraisals for First Capital. Between 2003 and 2005 Cowden prepared more than $67 million in fraudulent appraisals for Whoolery and First Capital. The appraisals were fraudulent not only because they falsely represented that a licensed appraiser prepared the appraisals, but also because the appraisals overstated the values of the properties serving as collateral for the loans. In addition, Cowden altered the pictures of the properties being appraised to make it look like the properties were in better condition than they really were, and in some cases he substituted pictures of completely different properties than the properties subject to the appraisals.
Also in 2003, Whoolery recruited Jeannette Gray, who was a licensed appraiser from the Philadelphia area, and Whoolery's sister, Kimberly Baldwin, to join the conspiracy. Gray, for $4,000 a month, agreed to allow Baldwin to prepare appraisals for First Capital and to sign Gray's name to the appraisals as if Gray prepared the appraisals. The appraisals, however, were not just fraudulent because they falsely represented that a licensed appraiser prepared the appraisals, but also because the appraisals overstated the values of the properties serving as collateral for the loans. Baldwin, like Cowden, also substituted pictures of properties.
In 2004, Gray stopped authorizing First Capital's use of her license. At that point, Whoolery recruited Jason Sheraw, a licensed appraiser from Irwin, Pa., to join the conspiracy. Similar to Gray, Sheraw, in exchange for $4,000 per month, agreed to allow Baldwin to prepare appraisals under his license as if he were actually preparing the appraisals. Baldwin then began to prepare her fraudulent appraisals for First Capital under Sheraw's name. Between 2003 and 2007, Baldwin prepared hundreds of fraudulent appraisals for First Capital resulting in the funding of tens of millions of dollars of fraudulent loans.
Whoolerly supervised loan officers who submitted loans using the fraudulent appraisals, including Lawrence Kraynak, Daniel O'Connor, Mark Hipsley, John Polosky, Daniel Gillen, Shawn Cupp, Elizabeth Drake, and others. The submissions to the lenders, however, were not just fraudulent because of the appraisals. Rather, the submissions to the lenders also often included representations that overstated the borrowers' financial condition, including their income and assets. Whoolery and the loan officers also often submitted fake documents in support of those false representations, including fake pay stubs and bank statements. Cowden, Kraynak, O'Connor, Hipsley, Polosky, Gillen, Cupp, Drake, Gray, Sheraw, and Baldwin have all been convicted of mortgage fraud related offenses.
In total, the government estimates that the fraudulent submissions related to this scheme led to the funding of more than $100 million in fraudulent loans, making this case the largest mortgage fraud case ever to go to trial in the Western District of Pennsylvania. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the criminal history, if any, of the defendant.
The Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Whoolery and the other individuals referred to above. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service - Criminal Investigation; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Federal Jury Convicts Newark, N.J., Man of Illegal Firearm/Drug PossessionRead the Press Release
CAMDEN, N.J. – A Newark, N.J., man was convicted by a federal jury today of possession of cocaine and marijuana with intent to distribute, possession of a firearm in furtherance of a drug trafficking offense and unlawful possession of a loaded handgun by a convicted felon, U.S. Attorney Paul J. Fishman announced.
Jimmil Henderson, 29, was convicted of all three counts of a Superseding Indictment following a five-day trial before U.S. District Judge Joseph H. Rodriguez in Camden federal court.According to documents filed in this case and the evidence at trial:
On Feb. 18, 2011, Newark Police Department officers were patrolling the area of Lincoln Park in Newark and saw Henderson engaging in a hand-to-hand drug transaction. Upon seeing the officers, Henderson ran through Lincoln Park, tossing a 9mm firearm loaded with 11 rounds of ammunition into the park. When the officers apprehended him at the corner of Broad and Pennington streets, they recovered quantities of cocaine and marijuana.
At sentencing, Henderson faces potential penalties as follows:
∙ Count One (possession with intent to distribute) – maximum of 20 years in prison and a $1 million fine.
∙ Count Two (possession of a firearm in furtherance of a drug trafficking offense) – minimum of 5 years in prison, maximum of life in prison, and a $250,000 fine; sentence to run consecutively to any other sentence
∙ Count Three (unlawful possession of a firearm by a convicted felon) – maximum of 10 years in prison and a $250,000 fine).U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Donald J. Soranno; and the Newark Police Department, under the direction of Police Director Samuel A. DeMaio and Chief Sheilah A. Coley, for the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorney Dara A. Govan and Special Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
13-045
Defense counsel: Michael Huff Esq., PhiladelphiaHenderson Superseding Indictment
Federal Jury Convicts Albuquerque Man for Transporting an Illegal AlienRead the Press Release
ALBUQUERQUE – This afternoon, a federal jury sitting in Albuquerque, N.M., convicted Efrain Gonzales-Perez, 42, of Albuquerque, for transporting an illegal alien after a two-day trial. The guilty verdict was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Chief Patrol Agent Scott A. Luck, El Paso Sector, U.S. Border Patrol.
Gonzales-Perez was indicted on May 8, 2012, and charged with transporting an illegal alien in New Mexico on March 15, 2012. Trial of the case began on Jan. 28, 2013 and concluded this afternoon when the jury returned a guilty verdict on the sole count of the indictment.
The evidence at trial established that, in summer 2011, the FBI and U.S. Border Patrol obtained information about Gonzales-Perez’s alien smuggling activities. The agents used the information to initiate a covert investigation into Gonzales-Perez during which they recorded telephone conversations relating to alien smuggling. The recorded telephone conversations revealed that in March 2012, Gonzales-Perez made arrangement for others to transport an illegal alien from El Paso, Texas, to Albuquerque. Gonzales-Perez was arrested on March 15, 2012, in the vicinity of an Albuquerque-area truck stop after he had picked up the illegal alien and paid a $1200 transportation fee.
The jury deliberated for approximately an hour and a half before returning the guilty verdict.
At sentencing, Gonzales-Perez faces a maximum penalty of ten years in prison. He remains on conditions of release pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque office of the FBI and the U.S. Border Patrol, and is being prosecuted by Assistant U.S. Attorney Norman Cairns and Special Assistant U.S. Attorney Raquel Ruiz-Velez.
Family Members Charged in Mail Fraud Conspiracy Involving Local Travel Agency Are Arrested by U.S. Postal Inspectors in New YorkRead the Press Release
DALLAS — Three Dallas residents, Jorge Armando Flores, 45, his wife Roxana Flores, 43, and her son, Julio C. Funes-Alas, 27, were arrested by U.S. Postal Inspectors this morning in Amityville, New York, on conspiracy and mail fraud charges outlined in a 19-count indictment returned by a federal grand jury in Dallas last week, and unsealed today, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. All three defendants appeared before a U.S. Magistrate Judge, who ordered that they be detained and transported to the Northern District of Texas for further court proceedings.
According to the indictment, Jorge and Roxana Flores were employed as sales agents in the Latin Department by U.S.A. Gateway, Inc., an international wholesale travel agent, located on Spring Valley Road in Dallas. Gateway was registered with the Airline Reporting Corporation which enabled it to purchase airline tickets directly from the airlines. Gateway then sold these tickets to subagents, or retail travel agencies, that in turn would sell the tickets to their customers. Among the subagents that purchased airline tickets from Gateway were Ramon Travel & Services, Inc., located in Providence, Rhode Island; Your Travel Agent Con Sabor Latino, located in Carrollton, Texas; and Jeanette Travel, located in Lowell, Massachusetts.
The indictment alleges that beginning at least as early as March 2007, and continuing until August 2011, the three defendants conspired with each other, and others, to commit mail fraud by converting to their benefit, checks that were mailed to Gateway from subagents. As part of the conspiracy Jorge Flores circumvented accounting procedures and caused checks mailed by subagents to Gateway to be diverted and deposited into bank accounts that the defendants set up and controlled. When a check was received, Jorge Flores would forge the signatory’s notation on a photocopy to indicated the subagent’s check had been received and then deliver the falsified photocopy to the accounts receivable department for recording. The original check would be diverted into bank accounts that the defendants had set up to receive the stolen funds. The defendants would then write checks, withdraw funds, make electronic withdrawals or transfers, make ATM withdrawals, and make debit purchases on these accounts for their personal benefit and use.
In addition to the conspiracy count, Jorge Flores is charged with 18 counts of mail fraud; Roxana Flores is charged with 12 counts of mail fraud; and Julio C. Funes-Alas is charged with six counts of mail fraud. Each of these counts represents a check of between $9,000 and $33,000 from the subagent to Gateway, which was diverted by the defendants.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, each count of the indictment carries a maximum penalty of 20 years in federal prison and a $250,000 fine.
The case is being investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
FBI Arrests Glendale Man in ‘Sextortion’ CaseRead the Press Release
Defendant Allegedly Coerced Young Women to Expose Themselves on Internet
LOS ANGELES – A Glendale man accused of hacking into hundreds of Facebook, Skype and email accounts and extorting women into showing him their naked bodies was arrested today on federal computer hacking charges.
Karen “Gary” Kazaryan, 27, was arrested this morning without incident by special agents with the FBI. Kazaryan, who was named in a 30-count indictment returned last Friday by a federal grand jury, is being arraigned this afternoon in United States District Court.
According to the indictment, Kazaryan gained unauthorized access to – in other words, hacked into – the victims’ accounts, and changed the passwords, which locked victims out of their own online accounts. Once he controlled the accounts, Kazaryan searched emails or other files for naked or semi-naked pictures of the victims, as well as other information, such as passwords and the names of their friends. Using that information, Kazaryan posed online as women, sent instant messages to their friends, and persuaded the friends to remove their clothing so that he could view and take pictures of them.
When the victims discovered that they were not speaking with their friends, Kazaryan often extorted them again, using the photos he had fraudulently obtained to again coerce the victims to remove their clothing on camera.
The indictment charges Kazaryan with 15 counts of computer intrusion and 15 counts of aggravated identity theft.
According to a search warrant executed in 2011 and unsealed today, Kazaryan repeatedly contacted victims to demand that they expose their breasts to him on Skype, and used their email and Facebook accounts to make contact with other victims. Kazaryan allegedly posted nude photos of some victims on their Facebook pages when they failed to comply with his demands.
Investigators estimate that Kazaryan victimized more than 350 women, but they have not identified all of the victims whose accounts were hacked. Authorities found approximately 3,000 pictures of nude or semi-nude women – some of which were taken from their online accounts, and some of which were taken by Kazaryan on Skype – on Kazaryan’s computer. Anyone who believes they may have been a victim in this case should contact the FBI’s Los Angeles Field Office at (310) 477-6565.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted on all counts, Kazaryan faces a statutory maximum penalty of 105 years in federal prison.
The investigation was conducted by the Federal Bureau of Investigation.
Release No. 13-016
Ex-Augusta Tax Preparer Sentenced to 41 Months in Prison for Preparing False Tax ReturnsRead the Press Release
AUGUSTA, GA: PAULA M. PENDLETON, 54, formerly of Augusta, Georgia, was sentenced last week by United States District Court Dudley H. Bowen, Jr. to 41 months in prison for conspiring to obtain names, dates of birth, and social security numbers of other individuals to be used in false income tax returns, to prepare and file false income tax returns, and then attempt to conceal such acts.
Evidence presented at hearings in this case showed that PENDLETON taught others how to prepare false income tax returns that exploited the Earned Income Tax Credit. Two tax preparers who learned from PENDLETON are KISHA KUWANDA MCCLADDIE and LINDA PERKINS ZIEGLER who were sentenced in federal court in 2011 to 20 and 18 months imprisonment, respectively.
United States Attorney Edward J. Tarver said, “This defendant not only prepared false tax returns that stole tens of thousands of dollars from our country, she taught others to do the same. Her sentence should serve as a lesson to all who are tempted to follow her example; lying on tax returns can result in a lengthy prison stay.”
IRS-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot said, “Return preparer fraud is like a contagious disease, it affects not only the preparer, but the individuals who have filed false information with the Internal Revenue Service. It is our hope that Ms. Pendleton's sentence will send a strong message that tampering with the integrity of our nation's tax system can result in jail time.”
In addition to her prison sentence, PENDLETON was ordered to pay restitution, as well as serve three years of supervised release after she is released from prison. Regarding the length of the prison sentence, Tarver noted that there is no parole in the federal system.
IRS Special Agents Andres Hernandez and Brian Mohrmann conducted the investigation of PENDLETON. Assistant United States Attorney David Stewart prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Essex County, N.J., Man Indicted for Using Stolen Identities to Obtain Tax Refund ChecksRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man was indicted today by a federal grand jury for using stolen identities to file false tax returns and obtain more than $1 million in tax refund checks, U.S. Attorney Paul J. Fishman announced.
Hakeem Awe, 39, of Irvington, N.J., was previously arrested on a Complaint. He was indicted today on one count of mail fraud, one count of filing false claims to the United States government, and two counts of aggravated identity theft.
According to documents filed in this case and statements made in court:
Awe acquired the names, Social Security numbers, and other personally identifying information from identity theft victims, and then used this information to commit a three-part scheme: (1) Awe filed false tax returns, using fictitious financial information to make it appear that the filer was entitled to a tax refund; (2) Awe listed the filer’s address as one of several post office boxes that he controlled in and around New Jersey; (3) Awe received the checks at his post office boxes and then deposited them into bank accounts that he controlled.
On the mail fraud count, Awe faces a maximum sentence of 20 years in prison and a fine that is $250,000 or double the total loss or gain, whichever is greatest.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation under the direction of Acting Special Agent in Charge Shantelle P. Kitchen in Newark, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorneys Andrew J. Bruck of the General Crimes Unit and Jacques S. Pierre of the Special Prosecutions Division, both of the U.S. Attorney’s Office in Newark.
13-042Defense counsel: Timothy R. Anderson Esq., Red Bank, N.J.
Awe, Hakeem Indictment
Dover Developer Indicted for Bank Fraud and Money LaunderingRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Michael A. Zimmerman, age 55, of Dover was indicted by a federal grand jury on January 23, 2013 for numerous bank fraud-related offenses. More specifically, Mr. Zimmerman was charged with one count of conspiracy to commit bank fraud and seven counts of making a false statement to a financial institution, each punishable by a maximum term of 30 years imprisonment and a fine of $1,000,000.00. The indictment also charges Mr. Zimmerman with one count of money laundering in violation of Title 18, United States Code, § 1957. This charge carries a maximum term of 10 years imprisonment and a fine of $250,000.00.
Zimmerman, a developer operating primarily in Kent and Sussex Counties, obtained financing in excess of $37 million from the Wilmington Trust Company (“Wilmington Trust”) in connection with three development projects— Salt Pond Plaza, Compass Pointe, and the Shoppes at Fieldstone. In March 2011, prior to its acquisition by M&T Bank, Wilmington Trust sold the debt associated with these, as well as other projects in which Zimmerman was a buyer, to a third party. Wilmington Trust incurred a loss on these three projects alone in excess of $26 million.
The Indictment alleges that in 2007 and 2008, in connection with the Salt Pond Plaza, Compass Pointe, and Shoppes at Fieldstone projects, Zimmerman and uncharged co-conspirators submitted false draw requests for payment from the bank and requested and received advanced funds in violation of the terms of the loan agreements with Wilmington Trust. Wilmington Trust funded the draw requests, which were not utilized for the purposes that Zimmerman and his co-conspirators had represented. In one instance, Zimmerman requested and received $150,000.00 in funds from Wilmington Trust that he represented to be for architectural and engineering costs, but instead used the money to finance acquisition of a personal interest in a development in the Bahamas.
United States Attorney Oberly said, “The Indictment reflects this Office’s commitment to hold accountable those who criminally contributed to the failure of the Wilmington Trust Company. The shareholders and employees of the bank, as well as the community, have been harmed by this failure, and the government remains firmly committed to prosecuting those whose fraudulent acts compromised the soundness and viability of a Delaware institution. The investigation continues.”
“The FBI is committed to ensuring banks and similar financial institutions are seen as sound and stable institutions, said Stephen Vogt, Special Agent in Charge of the FBI’s Wilmington Office. “Those who perpetrate sophisticated fraud schemes threaten the stability of financial institutions and, with the assistance of our law enforcement partners, will be prosecuted to the fullest extent of the law.”
“The IRS, along with our law enforcement partners, will vigorously pursue unscrupulous individuals who abuse our financial systems and violate the public trust,” said Akeia Conner, Special Agent in Charge, IRS Criminal Investigation. “This indictment demonstrates the federal law enforcement agencies’ collective determination to restore and ensure that trust.”
“Zimmerman’s alleged large scale fraud against a TARP bank included diverting construction loans for unauthorized purposes, such as for a project in the Bahamas,” said Christy Romero, Special Inspector General for Troubled Asset Relief Program (SIGTARP). “Defrauding a TARP bank is the same as defrauding American taxpayers who funded the bailout, and SIGTARP and our law enforcement partners will bring to justice those responsible for crimes related to TARP.”
“We are committed to working with our law enforcement partners in holding accountable wrongdoers whose fraudulent actions materially impact the safety and soundness of financial institutions regulated by the Federal Reserve Board,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Office of Inspector General, Board of Governors of the Federal Reserve System. The case is being prosecuted by Assistant United States Attorneys Robert F. Kravetz and Lesley F. Wolf.Members of the public are reminded that an Indictment is only an allegation and that a defendant is presumed innocent until proven guilty.
Indictment
Dominican National Sentenced to 63 Months in Prison <br /> for Leading Role in Identity Trafficking SchemeRead the Press Release
A Dominican national was sentenced today to 63 months in prison for his leading role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico; Director John Morton of U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI); Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); Gentry Smith, Acting Director of the U.S. State Department’s Diplomatic Security Service (DSS); and Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber.
Rafael Joaquin Beltre-Beltre, 36, formerly of Caguas, Puerto Rico, was sentenced by U.S. District Judge Gustavo A. Gelpí, in the District of Puerto Rico. In addition to Beltre-Beltre’s prison term, Judge Gelpí ordered him to forfeit $424,793 in illegal proceeds and ordered the removal of Beltre-Beltre from the United States to the Dominican Republic after the completion of his sentence. On Sept. 4, 2012, Beltre-Beltre pleaded guilty in Puerto Rico to one count of conspiracy to commit identification fraud, one count of conspiracy to commit alien smuggling for financial gain and one count of international money laundering.
Beltre-Beltre was charged in a superseding indictment returned by a federal grand jury in Puerto Rico on March 22, 2012. To date, a total of 53 individuals have been charged for their roles in the identity trafficking scheme, and 25 defendants have pleaded guilty.
Court documents allege that individuals located in the Savarona area of Caguas, Puerto Rico (Savarona suppliers), obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States (identity brokers) allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The superseding indictment alleges that identity brokers ordered the identity documents from Savarona suppliers, on behalf of the customers, by making coded telephone calls. The conspirators are charged with using text messages, money transfer services and express, priority or regular U.S. mail to complete their illicit transactions.
Court documents allege that some of the conspirators assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers allegedly generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
According to court documents, various identity brokers were operating in Rockford, Ill.; DeKalb, Ill.; Aurora, Ill.; Seymour, Ind.; Columbus, Ind.; Indianapolis; Hartford, Conn.; Clewiston, Fla.; Lilburn, Ga.; Norcross, Ga.; Salisbury, Md.; Columbus, Ohio; Fairfield, Ohio; Dorchester, Mass.; Lawrence, Mass.; Salem, Mass.; Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington, N.C.; Hickory, N.C.; Hazelton, Pa.; Philadelphia; Houston; Abingdon, Va.; Albertville, Ala.; and Providence, R.I.
Beltre-Beltre admitted that he operated as a Savarona supplier and was a leader and organizer in the conspiracy. He also admitted that he and his co-conspirators sold personal identifying information pertaining to real Puerto Rican U.S. citizens, including minors, and that he knew some of the identities would be used to commit tax fraud and some would be used to fraudulently apply for U.S. passports. According to court documents, in June 2011, an unauthorized alien in Arlington, Va., applied for a U.S. passport using legitimate Puerto Rico identity documents that had been supplied by Beltre-Beltre. Law enforcement agents uncovered the fraudulent application and prevented the issuance of the U.S. passport.
On Jan. 11, 2012, Beltre-Beltre was arrested and found to be in possession of over 100 legitimate identity documents in other people’s names, in addition to four legitimate but blank Puerto Rico birth certificates. Beltre-Beltre admitted that at the time of his arrest he possessed a firearm with an obliterated serial number in relation to his identity trafficking and alien smuggling operation. Beltre-Beltre is the 12th defendant to be sentenced in this case.
The charges are the result of Operation Island Express, an ongoing, nationally-coordinated investigation led by the ICE-HSI Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable assistance.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Courtney B. Schaefer and Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of Acting Assistant Deputy Chief Jeannette Gunderson of the Criminal Division’s Asset Forfeiture and Money Laundering Section, and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Middle District of North Carolina, Southern District of Ohio, District of Rhode Island, Southern District of Texas and Western District of Virginia provided substantial assistance.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; www.ssa.gov/pubs/10064.html; www.fbi.gov/about-us/investigate/cyber/identity_theft; and www.irs.gov/privacy/article/0,,id=186436,00.html.
Deported Alien Charged with Illegally Re-entering U.S.Read the Press Release
PITTSBURGH, Pa. - An individual found in Coraopolis, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Mauro Zerecero-Soto, 24, formerly from Mexico, as the sole defendant.
According to indictment, Mauro Zerecero-Soto, an alien, was removed from the United States by United States Immigration and Customs Enforcement on April 5, 2011. Mauro Zerecero-Soto was found in Coraopolis on Jan. 4, 2013.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delwayne Denny Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 29, 2013, before U.S. Magistrate Judge Keith Strong, DELWAYNE DENNY, a 30-year-old resident of Box Elder and an enrolled member of the Chippewa Tribe, pled guilty to sexual abuse. Sentencing has been set for May 10, 2013.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On March 11, 2012, DENNY, along with three other adults, returned to a house located on the Rocky Boy's Indian Reservation. The victim, who was very intoxicated, was taken into one of the bedrooms, by two concerned teenage boys, to "sleep it off." At some point in the evening DENNY went into the bedroom and engaged in sexual intercourse with the victim, even though she was passed out.
The victim regained consciousness and demanded that DENNY stop having sex with her. The victim grabbed clothes and left the house to look for help. Law enforcement had been called by a neighbor. Law enforcement found the victim in the fetal position in the middle of the roadway, crying hysterically. The victim was transported to the emergency room in Havre and consented to a sexual assault exam.
DENNY faces possible penalties of life in prison, a $250,000 fine and lifetime supervision.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Rocky Boy's Police Department.
Delmont Man Sentenced to Probation with Home Detention for Defrauding Social Security AdministrationRead the Press Release
PITTSBURGH, Pa. - A resident of Delmont, Pa., has been sentenced in federal court to five years probation with six months home detention and restitution of $62,360.24 on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Gavin Fowkes, 40.
According to information presented to the court, over a period of six years, Fowkes stole $62,360.24 worth of Social Security Disability Income payments to which he knew he was not entitled. The payments had been directly deposited by the Social Security Administration into a bank account held by a relative of Fowkes.
Prior to imposing sentence, Judge Diamond took into consideration the defendant's lack of a criminal history, his early acceptance of responsibility and the defendant's ability to pay restitution through his full-time employment as a mechanic.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government. The Office of the Inspector General for the Social Security Administration conducted the investigation that led to the prosecution of Fowkes.
Defendants Sentenced to Prison and Ordered to Pay $8.5 Million to Victims of Mortgagte-Fraud SchemeRead the Press Release
PANAMA CITY, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced that earlier today, United States District Judge Richard Smoak ordered defendants, who were convicted several months ago for their roles in a complicated mortgage-fraud scheme, to pay more than $8.5 million to victims of the scheme. Avinie Maurice Bates, III, 41, of Miami; Jill Beth Newman Zuravel, 47, of Boynton Beach; Alan Jay Nathan, 60, of Boca Raton; and Meredith Lelann King, 38, of Destin were held jointly responsible for repaying the victims $8.5 million in losses caused by the scheme, and Joann V. Walter, 56, of Parkland was held jointly responsible for repaying $2.4 million of the losses.
The evidence presented in the case showed that Bates held himself out as a real-estate investor with a Miami investment company, known as Right Choice Housing, LLC. Zuravel acted as the attorney for Right Choice Housing. Nathan owned Mortgage Bankers of America Group, Inc., a mortgage company located in Boca Raton, and Walter was a mortgage broker with Mortgage Bankers of America. King was a closing agent employed by Blue Dolphin Title, LLC, a title company located in Panama City Beach.
The evidence further showed that, in 2005 and 2006, the defendants obtained over $9 Million in mortgages from lenders to purchase ten properties in Panama City and Panama City Beach. Bates found properties, entered into sales contracts to purchase the properties at one price (the “lower sales price”), and listed the buyer on the contracts as “Right Choice Housing, LLC and/or assigns.” Then Bates, Zuravel, Nathan, and Walter convinced individuals in the Miami area to release their credit information in exchange for up to $30,000. Once these individuals (the “straw buyers”) were in place, Zuravel prepared the legal documents to assign the sales contracts from Bates and Right Choice Housing to the straw buyers at a much higher price (the “higher sales price”).
Once these assignments were made, Nathan and Walter prepared loan applications for the straw buyers, in which they falsely inflated the straw buyers’ income, employment, bank account balances, and intent to reside at the properties – all for the purpose of fraudulently qualifying the straw buyers for the millions of dollars in loans.
After the loans had been approved by the lenders, King conducted the property closings at Blue Dolphin Title in Panama City Beach. At the closing, she used the difference between the lower and higher sales prices to cover the straw buyers’ required down payments and then paid the rest to Bates, Zuravel, and Nathan. Of that balance, King wired over $1.2 million to Bates or to companies owned by Bates, such as Gold by Gold and Bates Enterprises.
By the end of 2006, all of the mortgages were in default, and all of the properties have since been foreclosed upon or are in foreclosure proceedings.
At the sentencing hearings for the defendants, held in September, the Court determined the following terms of imprisonment for each defendant, but reserved ruling on the issue of restitution until a hearing could be held:Bates was sentenced to just over 12 years in prison.
Zuravel, who cooperated in the case, was sentenced to 4 years in prison.
Nathan, who cooperated in the case, was sentenced to just under 3 years in prison.
King, who cooperated in the case, was sentenced to 2½ years in prison.
Walter, who cooperated in the case, was sentenced to 20 months in prison.
Restitution Hearing
The Court held an evidentiary hearing regarding the restitution a week ago, but reserved ruling until today. The Court ordered the defendants Bates, Zuravel, Nathan and King to pay a total of
8,596,595.24 in restitution to the victims on all ten properties as set forth below, and ordered Walter to pay a total of $2,409,462.38 for her involvement with three of the properties. At the hearing, the Government admitted dozens of exhibits reflecting the outstanding balances on the mortgages, as well as the price for which the properties were sold after foreclosure or current taxable value to establish the amount owed to the victim financial institutions and sellers. The Government’s evidence showed that, to date, the total loss on all of the mortgages was approximately $12 million, and the fair market value of the properties was just under $3 million.Property
Restitution Ordered
Victim
23001 Front Beach Road
Panama City Beach, Florida$610,489.42
JP Morgan Chase
$486,865.63
$200,000.00Aurora Loan Services
Ocwen Loan Servicing, LLC21222 Front Beach Road
Panama City Beach, Florida$747,704.42
$375,000.00American Home Mortgage Servicing Inc.
Ocwen Loan Servicing, LLC1501 Trout Lane
Panama City Beach, Florida$421,268.54
$160,000.00
$95,000.00Aurora Loan Services
Wingspan Portfolio Advisors
Marie Beamer483 Wahoo Road
Panama City Beach, Florida$822,957.64
$194,250.00HSBC Bank
Ocwen Loan Servicing, LLC1522 Trout Lane
Panama City Beach, Florida$1,310,350.58
$116,640.00Ocwen Loan Servicing, LLC
Thomas & Deborah Frowert2729 Kings Road
Panama City, Florida$474,640.15
Bank of America
4452 Ashland Road
Panama City, Florida$1,112,849.77
$120,000.00Selene Finance
DTA Solutions, LLC2843 Longleaf Road
Panama City, Florida$895,394.50
Selene Finance
342 Fairway Boulevard
Panama City Beach, Florida$453,184.59
Deutsche Bank
TOTAL
8,596,595.24
“This case is a stark reminder of the lengths to which greed-motivated criminal minds will go,” said U.S. Attorney Marsh. “At a time when the economy and the real-estate market were on a downward trajectory, these defendants were not afraid to make a bad situation worse. In cases driven by greed, restitution to the victims is a critical part of the penalty paid by these offenders.” Ms. Marsh also expressed her deep gratitude to the work of the Florida Office of Financial Regulation – Bureau of Financial Investigations, the Florida Department of Financial Services - Division of Insurance Fraud, and the U.S. Postal Inspection Service, whose excellent work led to the results in this case.
The case was prosecuted by Assistant U.S. Attorney Gayle Littleton.Dayton Man Charged with Viewing Child Pornography While A Patient at VA Medical CenterRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerDAYTON – A federal grand jury has charged Charles E. Suttles, 55, of Dayton with Fairfield with one count of possession of child pornography for allegedly viewing sexually explicit images of minor children while he was a patient at the Veterans Affairs Medical Center in Dayton in 2010.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Gavin McClaren, Resident Agent in Charge, Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, announced the indictment today.
The indictment, which was returned on January 22, 2013, alleges that in July 2010 Suttles possessed one or more matters which contained visual depictions involving the use of a minor engaging in sexually explicit conduct. Suttles was an inpatient at the Dayton VAMC. Suttles allegedly had the material on a removable computer storage device and viewed it in a computer room available to patients at the center.
The crime of possession of child pornography is punishable by at least ten years and up to 20 years in prison when the defendant has been previously convicted of that crime, plus a period of supervised release and requirements to register as a sex offender anywhere he lives, works or raises a family. Suttles was convicted in 2003 of possessing child pornography.
U.S. Magistrate Judge Michael R. Merz ordered Suttles held without bond pending trial at a detention hearing yesterday. U.S. District Judge Timothy S. Black will schedule the trial.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by the VA Inspector General’s Criminal Investigation Division, the Dayton VA Medical Center Police who assisted with the investigation and Assistant U.S. Attorney Benjamin Glassman, who is representing the United States in the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Dallas Man in Federal Custody for Aiming A Laser Pointer at AircraftRead the Press Release
DALLAS — Kenneth Santodomingo, aka “Juan Joel Pagan,” 22, has been charged in a federal criminal complaint with aiming a laser pointer at an aircraft. It is anticipated that he will make his first appearance in federal court in Dallas this afternoon at 2:00 p.m., before U.S. Magistrate Judge Paul D. Stickney. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed late yesterday in federal court in Dallas, at approximately 4:08 a.m. yesterday morning, January 28, 2013, uniformed Dallas Police Department (DPD) officers were operating a DPD helicopter, flying over the area of 8000 Umphress in Dallas, when the cockpit was illuminated, approximately four times, by a laser pointer. The intensity of the light obscured the vision of the pilot and impaired the pilot’s ability to control the aircraft.
The DPD officers in the helicopter pinpointed the location in Dallas where the laser originated and directed officers on the ground to a residence at 7719 Lake June Road, where the laser light originated from the back yard. Santodomingo answered the officers’ knock at the front door of the residence. Officers explained that an individual was observed illuminating the DPD helicopter with a laser pointer from the back yard and was then seen running into the house through the back door. After officers informed Santodomingo that the incident had been recorded, he admitted pointing the green laser light at the helicopter to see how far it would go. The officers obtained the laser pointer from Santodomingo.
The complaint further notes that the video taken by the DPD helicopter showed that the individual using the laser in the backyard fit the description of Santodomingo and appeared to wear the same short style underwear at the time of the offense that Sandodomingo was wearing when talking with officers.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum penalty for the offense charged, however, is five years in prison and a $250,000 fine.
The case is being investigated by the DPD and the FBI. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.
Couple Handed Lengthy Sentences in International Cocaine Trafficking ConspiracyRead the Press Release
BROWNSVILLE, Texas – Norma Alicia Gallegos, 30, and her husband Jose Carlos Aguilar, 32, have been sentenced for their roles in a large-scale international cocaine trafficking conspiracy, United States Attorney Kenneth Magidson announced today. Gallegos aka “La Muchacha” and Aguilar, both of Harlingen, entered pleas of guilty Feb. 28, 2012, to conspiracy to possess with intent to distribute more than five kilograms of cocaine.
Today, U.S. District Judge Hilda G. Tagle, sentenced Gallegos to a total of 112 months in federal prison noting her lack of criminal history. Aguilar will serve 168 months of imprisonment.
At the hearing, additional testimony was presented including that Gallegos was the highest ranking member of the Gallegos Drug Trafficking Organization in the United States and worked closely with the Gulf Cartel in Mexico to move cocaine into the United States. Gallegos utilized her family members, including her sister Conchita Gallegos, brother Erik Gallegos and husband, to transport the cocaine she received from Mexico to various points in the United States including Houston and St. Louis, Mo.Gallegos arranged for the Gulf Cartel to deliver drugs to her and then arranged for her own family members and drivers to assist with the transport of the drugs to the interior of the United States. On June 6, 2011, approximately 25 kilograms of cocaine from the Gallegos Drug Trafficking Organization was intercepted en route from Harlingen to St. Louis by agents with the Drug Enforcement Administration (DEA).
On Dec. 10, 2011, another five kilograms of cocaine was tracked by DEA agents as it was transported from Houston to St. Louis which led to the arrests of nearly all of the leadership of the Gallegos Drug Trafficking Organization.
The 30 kilograms of cocaine was all intended for members of the Black Mafia Family Street Gang - a nationally present and highly organized street gang responsible for numerous drug related and violent crimes throughout the United States. Members of the Black Mafia Family are responsible for the distribution of a significant amount of cocaine, heroin and marijuana in the St. Louis area.
Conchita Gallegos, of Houston, also pleaded guilty and will serve 38 months in prison. Erik Gallegos, of Harlingen, and others were prosecuted in the Eastern District of Missouri and have already been sentenced to federal prison. Additionally, numerous members of the Black Mafia Family of Saint Louis and their associates have been arrested and are pending prosecution in the Eastern District of Missouri in connection with this case.
The investigation leading to the criminal charges was a joint effort between DEA in both Brownsville and Saint Louis, as well as the Harlingen and Saint Louis County Police Departments and the Franklin County, Mo., Drug Task Force.
Assistant United States Attorney Holly D’Andrea prosecuted the case.
Cottage Grove Man Sentenced to Federal Prison for $879,000 Tax FraudRead the Press Release
Defendant filed more than 70 false federal excise tax returns on behalf of his business, Side Pocket Food Company, and owes more than $879,000 in federal excise taxes
Eugene, Ore. - Today, Chief U.S. District Court Judge Ann Aiken sentenced William Myers, 66, of Cottage Grove, Oregon, to serve one year and one day in prison for failing to pay $879,000 in federal excise taxes and for filing more than 70 false federal excise tax returns on behalf of his company, the Side Pocket Food Company. Upon release from prison, the defendant must serve three years of supervised release, including 100 hours of community service each of the three years and pay restitution in the amount of $873,186.88. Pursuant to a plea agreement, defendant admitted that he owes more than $879,000 in federal excise taxes and filed more than 70 false excise tax returns. Additionally, defendant was operating an illegal still inside the company warehouse.
According to court records, the Side Pocket Food Company is a distilled spirits plant, primarily in the business of blending and bottling distilled spirits, in Cottage Grove, Oregon. It purchases bulk alcohol and bulk distilled spirits from manufacturers or bulk distillers, and the Alcohol and Tobacco Tax and Trade Bureau (TTB) issued the company an operating permit to operate as a rectifier (processor), warehouseman, and bottler. As a licensed distilled spirits plant, the company was required to file federal excise tax returns with the TTB and to pay federal excise taxes to the TTB.
Despite collecting federal excise taxes from the company's clients, Meyers failed to pay the federal excises taxes to the TTB. Instead, Meyers and others used this money to pay for personal expenses, including car, house, and credit card payments, and business expenses. When approached by TTB about the excise taxes, defendant engaged in a repeated pattern of evasion, intentionally avoiding TTB's efforts to audit his company and to rectify his federal excise tax situation. Defendant operated the illegal still in the middle of the company warehouse, distilling wine for local wineries. When tested, the distilled alcohol had dangerous levels of lead and copper, creating a public health risk to unknowing members of the community.
U.S. Attorney S. Amanda Marshall noted, "Defendant cheated his clients, the taxpayers, and the regulatory system, acting as if the rules did not apply to him or his business. Business owners need to understand that this type of conduct will not be tolerated. There are legitimate ways, like bankruptcy, to work through difficult financial times. Theft and tax fraud puts individuals and communities at risk, it is illegal, and will land you in jail."
Timothy Marsh, Deputy Director for Criminal Enforcement, Alcohol and Tobacco Tax and Trade Bureau, (TTB) said, "Failure to pay taxes is not a victimless crime. It robs the community of revenue and hurts law-abiding businesses. TTB is committed to ensuring a level playing field where businesses can compete on an equal and lawful basis."
This case was investigated by the Alcohol and Tobacco Tax and Trade Bureau and is being prosecuted by Assistant U.S. Attorney Scott E. Bradford.
Corpus Christi Teacher Sentenced for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Jesus Orta, an English as a Second Language teacher in Corpus Christi, has been ordered to prison for 110 months, United States Attorney Kenneth Magidson announced today. Orta, 41, was convicted of possessing child pornography following his guilty plea Nov. 13, 2012.
Today, U.S. District Judge Janis Graham Jack imposed the sentence and expressed the need to protect the public from Orta and to recognize the harm he inflicted upon the victims whose images he possessed. Judge Jack further ordered Orta to serve a lifetime of supervised release following completion of the prison term, noting his crime and his troubling history of employment which placed himself around children. Orta was previously employed as a high school teacher and worked at Mental Health and Mental Retardation State School and La Raza Runaway shelter.
Orta, was arrested by the Corpus Christi Police Department’s (CCPD) Internet Crimes Against Children Task Force following the discovery of child pornography during a routine domestic disturbance call in Corpus Christi. CCPD officers responded to a complaint made by Orta against his brother for criminal trespassing. During the investigation of the trespassing case, the brother notified police that Orta was in possession of child pornography. Orta denied the accusations and refused officers consent to search his home for contraband. After the officers left the home to write up the criminal trespass warnings, Orta was observed discarding items of child pornography in a community dumpster on the housing complex grounds. Officers were able to gain entry into the home and several electronic media storage devices were discovered that contained child pornography in addition to the material removed from the dumpster. A subsequent computer forensic analysis was completed on the seized items and numerous images and videos were discovered. Orta was arrested and admitted to possessing the child pornography discovered in his home and the dumptser.
The case was jointly investigated by CCPD and Homeland Security Investigations.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Conspirator Indicted in Bank Fraud SchemeRead the Press Release
Allegedly Used His Employment With a Residential Mental Health Program To Steal Identity Information of Clients to Open Fraudulent Bank Accounts for Personal UseBaltimore, Maryland - A federal grand jury today indicted Derrick Elrod, age 35, of Philadelphia, Pennsylvania in connection with a bank fraud scheme to use stolen, personal identifying information of individuals to open bank accounts and fraudulently obtain cash, merchandise and services.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Wicomico County Sheriff Michael A. Lewis; Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
“Identity theft and bank fraud is often associated with refund fraud schemes, said Sheila Olander,” Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “The object of these schemes is to defraud the government, financial institutions and the taxpaying public. IRS Criminal Investigation welcomed the opportunity to lend its financial expertise in this investigation to assist in dismantling this criminal enterprise.”
Elrod worked for Resources for Human Development, Inc. (RHD), a nonprofit social services organization headquartered in Philadelphia. Elrod was an advisor at a residential program that supports individuals with mental health needs.
According to the five count indictment, from December 2008 through December 22, 2011, Elrod stole the personal identifying information of past or present residents of RHD. He provided the information to co-conspirators Christopher Devine, Quanishia Williamson-Ross, Lenee E. Williamson, Quashonna Williamson, and John Waters. In Maryland, Pennsylvania and elsewhere, Elrod and his conspirators allegedly used the stolen information to open accounts at banks, which Elrod’s conspirators then controlled. Elrod’s conspirators allegedly deposited fraudulent checks into the accounts and obtained check cards, then used the associated check cards at ATM machines to make cash withdrawals from the accounts.
The indictment further alleges that Elrod’s conspirators made fraudulent identification documents using the stolen personal information, with photographs of Devine, Williamson-Ross and Lenee Williamson, which they used, along with the check cards, to make purchases at retail stores, later returning the purchased items for cash.
The indictment further alleges that Elrod’s conspirators also used the check cards to obtain services, such as utilities, cable and cell phone service, and make purchases for their personal benefit at restaurants, drug stores, grocery stores, gas stations and video rentals and other businesses. Elrod and his conspirators allegedly would not pay for the services and merchandise, and the banks suffered a loss when the fraudulent checks deposited by the defendants were returned as unpaid.
Elrod faces a maximum sentence of: 30 years in prison for the bank fraud conspiracy; and two years in prison, consecutive to any other sentence, on each of three counts of aggravated identity theft. No court appearance has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
In related cases, co-conspirators Christopher Andre Devine, age 33; Quanishia Williamson-Ross, age 31; Quashonna Williamson, age 26, and Lenee E. Williamson, age 22, all of Salisbury, Maryland, Frederica, Delaware and Philadelphia, Pennsylvania, and John Waters, age 38, of Philadelphia, previously pleaded guilty to their participation in the conspiracy. Judge Blake has scheduled sentencing for Devine on March 1, 2013 at 9:30 a.m., and for Quashonna Williamson and Waters on March 29, 2013 at 10:30 a.m. and 2:00 p.m., respectively. Williamson-Ross and Lenee Williamson are scheduled to be sentenced on March 5 and March 6, 2013, respectively.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked HSI Baltimore, the Wicomico County Sheriff’s Office, IRS-CI and the Social Security Administration - Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Paul E. Budlow and Kristi N. O’Malley, who are prosecuting the case.
Colorado River Man Sentenced to 15 Years in Federal Prison for Child AbuseRead the Press Release
PHOENIX – On Jan. 28, 2013, Brice Little, 29, of Parker, Ariz., and a member of the Colorado River Indian Tribes, was sentenced by U.S. District Judge Frederick J. Martone
to 15 years in federal prison followed by supervised release. Little pleaded guilty on Oct. 2, 2012 to child abuse under an assimilated Arizona statute.Little was watching his girlfriend’s daughter, a four-month old infant, in a motel room on the Colorado River Indian Tribes Indian reservation. While under his care, the victim suffered serious injury, including severe head trauma. Little failed to obtain any medical treatment for her, and instead, he watched television. The victim later died as a result of the injuries.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department. The prosecution was handled by Dyanne Greer and Jennifer E. Green, Assistant U.S. Attorneys, District of Arizona, Phoenix.CASE NUMBER: CR-12-0206-PHX-FJM
RELEASE NUMBER: 2013-009_LittleFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Colorado Man Sentenced for Scheming Investors Out of $7 MillionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 37-year-old Colorado man was sentenced for scheming investors out of more than $7 million. United States District Court Judge Patrick J. Schiltz sentenced Evan Matthew Flaxman, of Silverthorne, Colorado, to 52 months in prison on one count of mail fraud in connection to the crime. Flaxman was charged on June 14, 2012, and pleaded guilty on July 25, 2012.
In his plea agreement, Flaxman admitted that from December of 2009 through March of 2012, he induced investors to give him money, telling them he had extensive financial expertise and personal wealth and resources. That was not the case. He subsequently provided one investor with documents indicating investment gains. In reality, however, Flaxman had used investment funds for personal use, including the purchase of a Ferraris and Porsche automobiles and a Rolex watch. He also paid his taxes with the money.
This case was the result of an investigation by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.Citizen of Jamaica Admits Illegally Reentering the U.S. After DeportationRead the Press Release
January 29, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that HAROLD ANTHONY SOLTAU, 43, a citizen of Jamaica last residing in Bridgeport, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of illegal reentry of a removed alien.
According to court documents and statements made in court, SOLTAU was deported from the United States to Jamaica in June 1990 after he was convicted of a felony drug trafficking offense. He subsequently reentered the United States without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the United States.
SOLTAU has been detained since his arrest on July 31, 2012.
SOLTAU is scheduled to be sentenced by Senior United States District Judge Alfred V. Covello on April 23, 2013, at which time SOLTAU faces a maximum term of imprisonment of 20 years.
This case was investigated by U.S. Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Felice M. Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Charleston Man Pleads Guilty in Federal Court to Possession of Child PornographyRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Charleston man pleaded guilty in federal court to possession of child pornography. Jonathan Douglas Layne, 54, admitted that on February 21, 2008, he knowingly possessed on his computer more than 600 images and videos depicting minors engaged in sexually explicit conduct, that is actual or simulated sexual intercourse and the lascivious exhibition of the genitals and pubic area of the minors. Layne admitted that he knew the images and videos constituted child pornography. The defendant also admitted that many of the images depicted prepubescent minors. Layne lived in St. Albans, West Virginia at the time the crime occurred.
Layne also admitted that in or about October 1987, he committed two or more crimes involving sexual abuse of a minor. Layne was previously convicted in June 1989 in the Circuit Court of Kanawha County, West Virginia of first degree sexual abuse involving a minor.
Layne faces a mandatory minimum of 10 years and up to 20 years in prison because of his previous conviction in 1989 in the Circuit Court of Kanawha County of first degree sexual abuse involving a minor. Layne also faces a $250,000 fine when he is sentenced on May 2, 2013 by United States District Judge John T. Copenhaver, Jr.
The U.S. Marshals Service, the West Virginia State Police, the West Virginia State Police Internet Crimes Against Children Task Force, the Kanawha County Sheriff’s Department, and the Federal Bureau of Investigation West Virginia Cyber Crimes Task Force conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/usao/wvs/PSCpage.html. For more information about internet safety education, please visit www.usdoj.gov/psc and follow the link named “Resources.”
Charles Spotted Elk-Booth Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 29, 2013, before Chief U.S. District Judge Richard F. Cebull, CHARLES SPOTTED-ELK BOOTH, JR., a 26-year-old resident of Lame Deer, was sentenced to a term of:
Prison: 100 months
Special Assessment: $100
Supervised Release: 3 years
BOOTH was sentenced in connection with his guilty plea to aiding and abetting assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Lori H. Suek, the government stated it would have proved at trial the following:
On the evening of November 17, 2007, BOOTH, two adult males, and a juvenile male were driving around Lame Deer on the Northern Cheyenne Indian Reservation in southeastern Montana drinking. The group saw the victim walking down the street and decided to pick her up. She was staggering as she walked, because she was drunk. She got into the car with the men and sat in the back between BOOTH and one of the adult males. The group then bought more alcohol - vodka - and continued to drive around Lame Deer until they parked in a remote area in the hills near Lame Deer.
During the time that the group was parked in the remote area, the victim was repeatedly raped and beaten by various members of the group. At some point, she was naked and placed in the trunk of the car. The group then drove around with her in the trunk for several hours until she was rescued from the trunk by police.
When the victim was found in the trunk, she had extensive bruising on her legs, thighs, buttocks, arms and checks, and lacerations and abrasions all over her body. The victim was taken to the hospital for treatment. Photographs of the victim's body were taken at the hospital and several days later. The injuries shown in the photographs, as well as testimony of the victim and medical personnel, would establish that the victim suffered extreme physical pain from the injuries, and suffered a substantial risk of death from having been locked in the trunk for an extended period of time.
All of the participants in the crime, including BOOTH, were interviewed multiple times during the investigation. Through the testimony of co-defendants and the admissions of the defendant, the United States would prove that BOOTH aided and abetted in the assault of the victim and contributed to the injuries suffered by the victim. Additionally, BOOTH previously pleaded guilty to assaulting the victim in tribal court. Although the United States could not use the admissions made during that plea during its case in chief at a trial, the United States would have been able to use those admissions to impeach any contrary testimony BOOTH would give at trial, if he chose to testify on his own behalf.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BOOTH will likely serve all of the time imposed by the court. In the federal system, BOOTH does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Carrollton Man Sentenced for Counterfeit Cell Phone AccessoriesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, TX – A 54-year-old Carrollton, Texas, man has been sentenced to federal prison for a counterfeiting conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shiraz Sherali Odhwani pleaded guilty on Sep. 9, 2011, to conspiracy to traffic in counterfeit goods and was sentenced to 36 months in federal prison by United States District Judge Michael H. Schneider. Odhwani was also ordered to pay restitution in the amount of $950,000.
According to information presented in court, Odhwani owns and operates a company known as Turtle Wireless, a wholesale outlet and retail point of sale for cellular telephones and wireless device accessories located in Dallas, Texas. In or about 2008, Turtle Wireless began selling counterfeit cellular telephone accessories purchased from suppliers in China. Through Turtle Wireless, Odhwani then sold the counterfeit products to retailers within the Eastern District of Texas and elsewhere. In connection with this case, law enforcement officials seized more than 130,000 counterfeit items from Odhwani’sstore and leased storage space. The infringement amount of that counterfeit merchandise was estimated at between $2.5 million and $7 million. Odhwani and three others were indicted by a federal grand jury in May 2011.
This case is an example of the type of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.The case was investigated by the Federal Bureau of Investigation, the Dallas County Sheriff’s Department, the Longview Police Department, the Baytown Police Department, and the Austin Police Department. The matter was prosecuted by Assistant U.S. Attorney Frank Coan.
####Columbus Man Sentenced to Prison for Selling Crack Cocaine in McDowell County, W.va.Read the Press Release
BLUEFIELD, W.Va. – U.S. Attorney Booth Goodwin announced that a Columbus man was sentenced on Jan. 29 to one year in federal prison for distributing a quantity of crack cocaine. Thomas Jennings, 53, admitted that on June 28, 2012, he sold a quantity of crack cocaine to a person cooperating with law enforcement authorities. The illegal transaction took place at a residence in Maybeury, McDowell County, W.Va. Jennings also admitted that on June 27, 2012, he sold a quantity of crack cocaine and two morphine pills. The defendant further admitted to selling a quantity of crack cocaine on July 2, 2012.
The West Virginia State Police Bureau of Criminal Investigation and the Southern Regional Drug and Violent Crime Task Force handled the investigation. Assistant United States Attorney John File handled the prosecution. The sentence was imposed by United States District Senior Judge David A. Faber.
The case was brought as part of the Bluefield Pill Initiative. The Bluefield Pill Initiative is a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming Counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation; the Mercer, McDowell and Wyoming County Sheriff’s Departments, and the Bluefield and Princeton Police Departments.
Business Owner Sentenced in Federal Crop Insurance Fraud SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday STEVEN M. HARDWICK, 53, of Nichols, South Carolina, was sentenced by Chief United States District Judge James C. Dever III, to 12 months and one day imprisonment, restitution of $171,513, and 5 years of supervised release. HARDWICK previously pled guilty to conspiring to make false statements, to make material false statements, and to commit mail fraud and wire fraud, all in violation of Title 18, United States Code, Section 371 and aiding and abetting these crimes in connection with the Federal Crop Insurance Program, in violation of Title 18, United States Code, Section 1014.
Mr. Walker stated, “As a farmer, Hardwick understood the importance of the federal crop insurance program as a safety net to the community in times of disaster and yet, he helped another steal from that same program. The sentence imposed today reflects the seriousness of his offense and should serve as a deterrent for others.”
According to the investigation, which stems from an ongoing crop insurance investigation, HARDWICK allowed his name to be used in connection with federal crop insurance and tobacco contracts to facilitate the sale of tobacco not reported to the federal government. The Criminal Information, filed on September 16, 2011, alleges that HARDWICK, maintaining dual residences in Clarendon, North Carolina, and Nichols, South Carolina, owned and operated a sole proprietorship which engaged in the business of tree spraying and planting.
The Information goes on to allege, an unnamed farmer devised the scheme to defraud the government and recruited HARDWICK and others to act as nominee farmers, obtaining federal crop insurance policies in their own names for certain crops, even though they did not engage in any farming. From September, 2006, to June, 2010, HARDWICK and others executed applications for crop insurance for tobacco, soybeans, and peanuts, falsely declaring the crop to be their own. HARDWICK and others secured identifying information for various persons in the community, executing contracts with tobacco companies using the stolen names and identifying information. HARDWICK and other co-conspirators secured flue-cured tobacco marketing agreements in their own names even though they were not the bona fide producer of the crop. The unnamed farmer sold his tobacco and other crops on contracts written in the names of other co-conspirators or unknowing victims, profiting under the scheme by being paid twice for each pound of tobacco. HARDWICK and other co-conspirators profited under the scheme because they were paid for the use of their names on the contracts.
As discussed in open court yesterday, HARDWICK also sold tobacco not reported to the federal government for other farmers separate and apart from the conspiracy described above. HARDWICK also lied to the USDA - Farm Service Agency County Committee on two occasions in an effort to conceal the fraud.
IRS-Criminal Investigation Special Agent in Charge Jeannine A. Hammett stated, “Mr. Hardwick manipulated governmental programs to line his own pockets. The object of this fraudulent scheme was to swindle the government and the taxpaying public.” “Once again, IRS criminal investigators along with the United States Attorney’s Office have vindicated the interests of the people of the United States.”
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation; the United States Department of Agriculture - Office of Inspector General, Investigations; and the United States Department of Agriculture - Risk Management Agency, Special Investigations Branch. Assistant United States Attorney Banumathi Rangarajan is serving as prosecutor for the government.
Bookkeeper Sentenced to Prison for Stealing over $150,000 from Employer and Evading TaxesRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Diane Michelle Pimble, age 41, of Washington, D.C., today to 14 months in prison, followed by three years of supervised release, for interstate transportation of stolen money and tax evasion. Judge Messitte also ordered Pimble to pay restitution of $152,918.03 to her employer and $26,697 to the IRS.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; Chief Cathy L. Lanier of the Metropolitan Police Department; and Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“IRS Criminal Investigation views embezzlement schemes as a form of organized tax evasion,” said Shelia Olander, Acting Special Agent in Charge, IRS Criminal investigation, Washington DC Field Office. “Tax evasion undermines the integrity of our system of taxation. Today’s sentence ensures the public that offenders of these types of schemes are being caught and punished.”
According to her plea agreement, from early 2008 through late 2011 Pimble worked as a bookkeeper for an individual residing in Maryland. Pimble managed her employer’s accounts, paid bills, organized financial information using an accounting software program called QuickBooks, and prepared reconciliation reports of her employer’s bank accounts. In order to help fulfill these duties, at Pimble’s request, her employer gave her a stamp bearing her employer’s signature that Pimble would use to sign her employer’s checks.
Pimble, however, wrote over 100 unauthorized checks to herself, including grossly inflated salary checks for herself, that drew off her employer’s bank accounts. She stamped these unauthorized checks with her employer’s signature, and transported them from Maryland to the District of Columbia, cashing them at her local bank. Pimble concealed her fraud either by falsifying entries in her employer’s QuickBooks accounting program to show that the unauthorized checks had been made to other individuals or entities, or by failing to enter them at all. Pimble also created falsified balance reports so that her employer, when reviewing the documents, would believe that the accounts were balanced. Pimble transported across state lines a minimum of $152,918.03 of her employer’s money that was taken by fraud.
Finally, for the tax years 2008, 2009 and 2010, Pimble filed false federal individual income tax returns with the IRS by not reporting the income she received through her embezzlement, resulting in additional tax owed totaling $26,697.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service, Metropolitan Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
Bergen County, N.J., Man Pleads Guilty to Conspiring with Brother to Violate the Federal Election Campaign ActRead the Press Release
NEWARK, N.J. – A Bergen County man admitted today to conspiring with his brother to violate federal election law in connection with contributions to a federal campaign committee, U.S. Attorney Paul J. Fishman announced.
Benedetto Bigica, 45, of Elmwood Park, N.J., pleaded guilty to an Information charging him with one count of conspiring to violate the Federal Election Campaign Act (FECA). Bigica entered his guilty plea before U.S. District Judge Faith S. Hochberg in Newark federal court.According to documents filed in this case and statements made in court:
From April 2005 to April 2008, Benedetto Bigica conspired with his brother, Joseph Bigica, and others to make $21,400 in illegal contributions to the campaign committee of a federal candidate. Benedetto Bigica agreed to serve as a straw contributor along with two other family members for Joseph Bigica, who then reimbursed them for their contributions to the campaign.
Joseph Bigica previously pleaded guilty to an Information charging him with one count of corruptly interfering with the due administration of the internal revenue laws and one count of conspiring to violate the FECA. On Dec. 11, 2012, Judge Hochberg sentenced Joseph Bigica to 36 months on the tax count and 60 months on the FECA conspiracy, to be served concurrently, and ordered $2,141,836 in restitution. No one associated with the campaign has been accused of any wrongdoing.
The conspiracy charge to which Benedetto Bigica pleaded is punishable by a maximum potential penalty of five years in prison and up to a $250,000 fine. Sentencing is currently scheduled for May 7, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, and criminal investigators from the U.S. Attorney’s Office in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Zahid N. Quraishi and Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
13-043Defense counsel: Michael Baldassare Esq., Newark
Bigica, Benedetto Information
Bedford County Man Sentenced to 3 Years in Prison for Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Osterburg, Pa., has been sentenced in federal court to 36 months imprisonment, 10 years supervised release, and required to register as a sex offender on his conviction of possession of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Joseph Yingling, 40.
According to information presented to the court, on Aug. 4, 2009, Yingling knowingly possessed pictures and videos in individual computer graphic files which were produced using minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Homeland Security Investigations for the investigation leading to the successful prosecution of Yingling.
This case was brought as part of Project Safe Childhood. Launched in Feb. 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
BP Exploration and Production Inc. Pleads Guilty, Is Sentencedto Pay Record $4 Billion for Crimes SurroundingDeepwater Horizon IncidentRead the Press Release
BP Exploration and Production Inc. pleaded guilty today to 14 criminal counts for its illegal conduct leading to and after the 2010 Deepwater Horizon disaster, and was sentenced to pay $4 billion in criminal fines and penalties, the largest criminal resolution in U.S. history, Attorney General Holder announced today.
“Today’s guilty plea and sentencing represent a significant step forward in the Justice Department’s ongoing efforts to seek justice on behalf of those affected by one of the worst environmental disasters in American history,” said Attorney General Holder. “I’m pleased to note that more than half of this landmark resolution – which totals $4 billion in penalties and fines, and represents the single largest criminal resolution ever – will help to provide direct support to Gulf Coast residents as communities throughout the region continue to recover and rebuild.”
“The Deepwater Horizon explosion was a national tragedy that resulted in the senseless deaths of 11 people and immense environmental damage,” said Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. “Through the tenacious work of the Task Force, BP has received just punishment for its crimes leading up to and following the explosion. The Justice Department will keep a watchful eye on BP’s compliance with the plea agreement’s terms, including the requirements of full cooperation with the department’s ongoing criminal investigation, implementation of enhanced safety protocols and adherence to the recommendations of two newly installed monitors. Should BP fail to comply, we will act swiftly and firmly.”
BP’s guilty plea was accepted, and the sentence was imposed, by U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana. During the guilty plea and sentencing proceeding, Judge Vance found, among other things, that the consequential fines imposed under the plea agreement far exceed any imposed in U.S. history, and are structured so that BP will feel the full brunt of the penalties. She also noted that the agreement provides just punishment and significant deterrence, requiring detailed drilling safeguards, monitors and other stringent, special conditions of probation so that BP’s future conduct will be closely watched.
BP pleaded guilty to each count charged in an information filed in U.S. District Court in the Eastern District of Louisiana, including 11 counts of felony manslaughter, one count of felony obstruction of Congress and violations of the Clean Water and Migratory Bird Treaty Acts. In its guilty plea today, BP admitted that, on April 20, 2010, the two highest-ranking BP supervisors onboard the Deepwater Horizon, known as BP’s “Well Site Leaders” or “company men,” negligently caused the deaths of 11 men and the resulting oil spill. The company also admitted that on that evening, the two well site leaders observed clear indications that the Macondo well was not secure and that oil and gas were flowing into the well, but chose not to take obvious and appropriate steps to prevent the blowout. Additionally, BP admitted that as a result of the Well Site Leaders’ conduct, control of the Macondo well was lost, resulting in catastrophe.
BP also admitted during its guilty plea that the company, through a senior executive, obstructed an inquiry by the U.S. Congress into the amount of oil being discharged into the Gulf while the spill was ongoing. BP also admitted that the senior executive withheld documents, provided false and misleading information in response to the U.S. House of Representatives’ request for flow-rate information, manipulated internal estimates to understate the amount of oil flowing from the well and withheld data that contradicted BP’s public estimate of 5,000 barrels of oil per day. At the same time that the senior executive was preparing his manipulated estimates, BP admitted, the company’s internal engineering response teams were using sophisticated methods that generated significantly higher estimates. The Flow Rate Technical Group, consisting of government and independent scientists, later concluded that more than 60,000 barrels per day were leaking into the Gulf during the relevant time, contrary to BP’s representations to Congress.
According to the sentence imposed by Judge Vance pursuant to the plea agreement, more than $2 billion dollars will directly benefit the Gulf region. By order of the court, approximately $2.4 billion of the $4.0 billion criminal recovery is dedicated to acquiring, restoring, preserving and conserving – in consultation with appropriate state and other resource managers – the marine and coastal environments, ecosystems and bird and wildlife habitat in the Gulf of Mexico and bordering states harmed by the Deepwater Horizon oil spill. This portion of the criminal recovery is also to be directed to significant barrier island restoration and/or river diversion off the coast of Louisiana to further benefit and improve coastal wetlands affected by the oil spill. An additional $350 million will be used to fund improved oil spill prevention and response efforts in the Gulf through research, development, education and training.
BP was also sentenced to five years of probation – the maximum term of probation permitted under law. The company is also required, according to the order entered by the court pursuant to the plea agreement, to retain a process safety and risk management monitor and an independent auditor, who will oversee BP’s process safety, risk management and drilling equipment maintenance with respect to deepwater drilling in the Gulf of Mexico. BP is also required to retain an ethics monitor to improve its code of conduct to ensure BP’s future candor with the U.S. government.
The charges and allegations pending against individuals in related cases are merely accusations, and those individuals are considered innocent unless and until proven guilty.
The guilty plea and sentence announced today are part of the ongoing criminal investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill. The Deepwater Horizon Task Force, based in New Orleans, is supervised by Assistant Attorney General Breuer and led by Deputy Assistant Attorney General John D. Buretta, who serves as the director of the task force. The task force includes prosecutors from the Criminal Division and Environment and Natural Resources Division of the Department of Justice; the U.S. Attorney’s Office for the Eastern District of Louisiana, as well as other U.S. Attorneys’ Offices; and investigating agents from: the FBI; Environmental Protection Agency, Criminal Investigative Division; Environmental Protection Agency, Office of Inspector General; Department of Interior, Office of Inspector General; National Oceanic and Atmospheric Administration Office of Law Enforcement; U.S. Coast Guard; U.S. Fish and Wildlife Service; and the Louisiana Department of Environmental Quality.
This case was prosecuted by Deepwater Horizon Task Force Director John D. Buretta, Deputy Directors Derek A. Cohen and Avi Gesser, and task force prosecutors Richard R. Pickens II, Scott M. Cullen, Colin Black, and Rohan Virginkar.
Attempted Illegal AK-47 Purchaser Sentenced to 5 YearsRead the Press Release
Jacksonville, FL- U.S. District Judge Marcia Morales Howard yesterday sentenced Antwan Cameron (29, Jacksonville) to 5 years in federal prison for making a false statement to a federally licensed firearms dealer. A federal jury found Cameron guilty on October 17, 2012.
According to testimony presented at trial, Cameron attempted to purchase a Century Arms 7.62 x 39mm rifle from Shooters Firearms and Accessories of Jacksonville. Cameron lied on the required ATF paperwork and claimed that he had never been convicted of a domestic violence offense. A background check by the Florida Department of Law Enforcement (FDLE) confirmed that Cameron was a prohibited person and employees at Shooters stopped the sale. Cameron received a higher sentence after Judge Howard found that he obstructed justice by attempting to contact one of the trial jurors through Facebook.
This case was investigated by the Jacksonville Sheriff's Office Gun Crime Unit and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Frank Talbot.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Andrews Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
United States Attorney Robert Pitman announced that 27-year-old Francisco Jose Cantu, of Andrews, TX, faces five to twenty years in federal prison after pleading guilty to receipt of materials relating to the sexual exploitation of children.
Appearing before United States Magistrate Judge David Counts yesterday, Cantu admitted that in October 2012, he received images of child pornography via the Internet. According to the factual basis filed in this case, Cantu also admitted to distributing images of child pornography via the Internet. On November 29, 2012, Homeland Security Investigations (HSI) agents executed a search warrant at Cantu’s residence and seized several computer devices. A forensics examination of the seized items revealed the presence of more than 600 images of minors engaged in sexually explicit conduct.
Sentencing before United States District Judge Robert A. Junell in Midland has not yet been scheduled.
This case was investigated by Homeland Security Investigations agents. Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.
Albuquerque Man to Serve Forty-Six Months in Prison for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Christopher Daves, 26, of Albuquerque, N.M., was sentenced to 46 months in prison followed by five years of supervised release for his possession of child pornography conviction. Daves also will be required to register as a sex offender after he completes his prison sentence. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Acting Special Agent in Charge Dennis A. Ulrich, II, with El Paso Homeland Security Investigations (HSI).
Daves was arrested on July 11, 2012, as the result of an undercover operation initiated by the New Mexico State Police. Based on that investigation, HSI executed a search warrant at Daves’ residence on May 2, 2012, and seized his laptop computer. While the warrant was being executed, Daves voluntarily agreed to be interviewed, and admitted that he used his laptop to download child pornography on multiple occasions. A forensic examination of Daves’ laptop computer uncovered hundreds of images of child pornography.
The case was investigated by HSI and the New Mexico State Police, and was prosecuted by Assistant U.S. Attorney Charlyn E. Rees.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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/.
The case also was brought as part of the New Mexico Internet Crimes Against Children Task Force whose mission it is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alamance County Residents Plead to Health Care FraudRead the Press Release
Conducted Fraudulent Medicaid Billing SchemeGREENSBORO, N.C. – United States Attorney for the Middle District of North Carolina Ripley Rand announced today that EVELYN FULLER and MICHAEL MCLEAN pleaded guilty in federal court in Greensboro before United States District Judge Catherine C. Eagles to felony charges of conspiracy to commit health care fraud and health care fraud.
Fuller, age 61, is a resident of Mebane, North Carolina. McLean, age 56, is a resident of McLeansville, North Carolina. Fuller operated a mental health business in Mebane, North Carolina, called Harvest House Community Development Corporation, Inc., which allegedly provided community support services to Medicaid clients. McLean worked as a manager for Harvest House.
Fuller and McLean pleaded guilty to charges that they submitted or aided and abetted the submission of claims to the North Carolina Medicaid program for mental health services which were never provided. Between June 2007 and November 2008, Fuller and McLean submitted approximately $400,000 in claims to the Medicaid program for services that were not provided and paid cash to some Medicaid recipients in order to obtain access to the recipient’s Medicaid numbers. The numbers are required for billing Medicaid and were used in the fraudulent billing scheme.
Each of the defendants faces a maximum penalty of ten years confinement. The plea agreements also require the defendants to make restitution to the Medicaid program. Sentencing will occur in Greensboro on June 13, 2013.
The case was investigated by the Health and Human Services Office of Inspector General and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. The case is being prosecuted by Assistant United States Attorney Robert Hamilton and Special Assistant United States Attorney/Assistant Attorney General Jacqueline Perez.
###Alabama Woman Indicted for Stolen Identity Refund FraudRead the Press Release
A federal grand jury in Montgomery, Ala., returned an indictment charging LaQuanta Clayton with aggravated identity theft and theft of government money, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to the indictment, Clayton used stolen identity information to facilitate the theft of federal tax refunds. As alleged, Clayton used the stolen identity information to open bank accounts at the bank where she was working and then stole federal tax refunds that were deposited into the bank accounts.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Clayton faces a maximum potential sentence of 10 years in prison for each of the 15 theft of government money counts and a mandatory two-year sentence for the aggravated identity theft counts. She is also subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.
Alabama Woman Indicted for Her Role in a Million Dollar Identity Theft SchemeRead the Press Release
A federal grand jury in Montgomery, Ala., returned an indictment charging Scottie Alice Johnson with a conspiracy to commit theft of public funds and to defraud the Internal Revenue Service (IRS) and with theft of public funds, the Justice Department and the IRS announced today.
According to the indictment, between 2006 and 2012, Johnson conspired with others to defraud the IRS and commit theft of public funds. Co-conspirators filed false federal income tax returns with stolen identities and had refunds directly deposited into several bank accounts, including bank accounts in the name of Scottie Alice Johnson and another individual. The bank accounts associated with the conspiracy received at least $1.3 million in false tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Johnson faces five years in prison for the conspiracy count and 10 years in prison for each theft of public funds count. Johnson is also subject to fines, mandatory restitution and forfeiture.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Alabama State Employee Indicted for Identity TheftRead the Press Release
Chequ li a Motley, a resident of Montgomery, Ala., was indicted by a federal grand jury for her involvement in a conspiracy to use stolen identities to file fraudulent tax returns, the Justice Department and the Internal Revenue Service (IRS) announced today. Motley was indicted on various charges, including conspiracy, five counts of wire fraud and five counts of aggravated identity theft.
According to the indictment, Motley worked for an Alabama state government agency and had access to individuals’ personal identifying information as part of her job. She stole identities and sold them to several co-conspirators, the indictment alleges. Those co-conspirators used the stolen identities to file false tax returns that fraudulently requested tax refunds from the IRS.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Motley faces a maximum potential sentence of 10 years in prison for the conspiracy charge, up to 20 years in prison for each wire fraud charge and a mandatory two-year sentence for the aggravated identity theft counts. She will also be subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS – Criminal Investigation. Trial Attorneys Michael Boteler and Jason Poole of the Justice Department’s Tax Division are prosecuting the case, with the assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
Alabama Employee Indicted for Providing Names to a Million Dollar Identity Theft SchemeRead the Press Release
A federal grand jury in Montgomery, Ala., returned an indictment charging Lea’Tice Phillips for conspiring to file false tax returns using stolen identities, the Justice Department and the Internal Revenue Service (IRS) announced today. The 37 count indictment charges Phillips with conspiracy to file false claims, wire fraud, computer fraud and aggravated identity theft.
According to the court documents, Phillips worked for an Alabama state agency and had access to state databases which contained means of identification of individuals. Between October 2009 and April 2012, Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. On multiple occasions, Phillips accessed a state database to obtain means of identification. Phillips used her state email to send means of identification to Djonret. Djonret and others used those means of identification to file false tax returns. Djonret and her co-conspirators filed most of the tax returns from her residence in Montgomery. Djonret and her co-conspirators used an elaborate network of individuals to launder the tax refunds. They recruited individuals to purchase prepaid debit cards and to provide the cards to Djonret and her co-conspirators. The fraudulent tax refunds were directed to the prepaid debit cards. Djonret and her co-conspirators would then use the prepaid debit cards to obtain the proceeds. Some of the prepaid debit cards were in the name of Lea’Tice Phillips. In total, Djonret filed over 1,000 false tax returns that claimed over $1.7 million in fraudulent tax refunds.
On Aug. 9, 2012, a federal grand jury in Montgomery returned a superseding indictment charging Antoinette Djonret, Angelique Djonret, Tabitha Stinson, Melba Wilson, Chantresa Hayes and Corey Means for their roles in the same conspiracy.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the Phillips faces 10 years imprisonment for the conspiracy to file false claims, 20 years for each wire fraud count, 10 years imprisonment for each computer fraud count and a mandatory two-year sentence for the aggravated identity theft counts. She is also subject to fines, mandatory restitution and forfeiture.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
12 Georgia Residents Indicted on Tax Fraud and Identity Theft ChargesRead the Press Release
AUGUSTA, GA - An indictment, today unsealed in federal court, has charged 12 Georgia residents for their role in a fraudulent income tax refund ring. The indictment follows a 14-month joint investigation by the IRS Criminal Investigation, the FBI and the Richmond County Sheriff’s Office.
According to the indictment, from 2009 to 20011, the defendants conspired to file at least 90 phony income tax returns on behalf of individuals whose identities had been stolen. The income tax returns fraudulently sought refunds from the IRS totaling more than $500,000.
United States Attorney Edward Tarver said, “These defendants are alleged to have systematically stolen the identities of others, all in an effort to steal from the United States taxpayers. The United States Attorney’s Office will hold identity thieves and fraudsters accountable, and will make sure that the only identity they’ll be able to use will be the one stitched on their prison jumpsuit.”
“Identity theft is a despicable crime that victimizes honest taxpayers and causes immense hardship,” said Veronica Hyman-Pillot, IRS Criminal Investigation Special Agent in Charge. “Identifying, investigating and vigorously prosecuting those individuals involved in tax related identity theft schemes remains a top priority for IRS Criminal Investigation. The recent indictments and arrests are just a sample of what is to come as we join forces with our law enforcement partners and the United States Attorney’s office to put an end to identity theft.”
The 12 defendants indicted include:
ANGELA WILLINGHAM, 40, Hephzibah, Georgia
SANTANA WILLINGHAM, 23, Hephzibah, Georgia
JAMES BUTLER, 21, Hephzibah, Georgia
DENTAVIA MCNAIR, 23, Augusta, Georgia
BRITTNEY WRIGHT, 25, Evans, Georgia
JANICE SMALLEY, 47, Augusta, Georgia
PATRICE ROBERSON, 36, Waynesboro, Georgia
CHERYL WILLINGHAM, 37, Augusta, Georgia
MATTHEW HARRINGTON, 45, Savannah, Georgia
SANTRECE WILLINGHAM, 22, Hephzibah, Georgia
LASANDRA WHITFIELD, 42, Waynesboro, Georgia
KELLY BARTON, 35, Augusta, Georgia.An indictment is only an accusation and is not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Government’s burden to prove the Defendants’ guilt beyond a reasonable doubt.
Assistant United States Attorneys Patricia Green Rhodes is prosecuting the case for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.