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Monday 28 January 2013
Winchester Woman Accused of Making False Statements While Purchasing FirearmRead the Press Release
ALEXANDRIA, Va. – Brita Lanette Jackson, 51, of Winchester, Va., was arrested today accused of making a false statement in connection with the purchase of a firearm.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and James Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Jackson’sinitial appearance before United States Magistrate Judge Ivan D. Davis.
Jackson was arrested based on a criminal complaint and faces a maximum penalty of 10 years in prison, if convicted.
According to court documents and court proceedings today, Jackson is alleged to have attempted to purchase a 7.62 x 39mm firearm from a licensed dealer in Manassas, Va., on May 24, 2012. To purchase the firearm, Jackson indicated on official paperwork that she was the actual buyer of the firearm; however, Jackson allegedly intended to transfer the firearm to a male with multiple felony convictions. Court records allege that Jackson previously purchased between 15 and 20 firearms since January 2012 on behalf of the convicted felon.
The investigation was conducted by ATF’s Washington Field Division. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Watertown Man Sentenced for Stealing from Iron MountainRead the Press Release
BOSTON - A Watertown man was sentenced today for stealing over $1 million from his former employer.
John J. Palandjian, 35, was sentenced by U.S. District Judge Mark L. Wolf to 41 months in prison, to be followed by three years of supervised release and a $7,500 fine and ordered to pay $1,148,063 in restitution. In October 2012, Palandjian pleaded guilty to 10 counts of wire fraud.Palandjian, a sourcing manager for Iron Mountain, a public company headquartered in Massachusetts, was responsible for purchasing supplies, reviewing credit card statements and requesting wire transfers for payment of credit card bills. From August 2010 to June 2011, Palandjian used Iron Mountain’s credit card to make unauthorized purchases and cash advances in excess of $1,148,000. Palandjian then altered the monthly credit card statements to hide his unauthorized charges and ensured that the bills were paid.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner Edward Davis, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption and Special Prosecutions Unit.
Virginia Man Sentenced to Serve 168 Months in Prison on Child Pornography ChargesRead the Press Release
An Orange County, Va., man was sentenced today to serve 168 months in prison following his March 2011 guilty plea to child pornography charges that originated in three different federal districts.
The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Heaphy of the Western District of Virginia, U.S. Attorney Neil H. MacBride of the Eastern District of Virginia and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
Anthony C. Jeffries was sentenced by Senior U.S. District Judge Norman K. Moon in the Western District of Virginia. On March 28, 2011, Jeffries pleaded guilty to one count of distributing child pornography and one count of possessing child pornography on charges contained in an indictment filed in the Western District of Virginia and two separate one-count criminal informations originally filed in the Eastern District of Virginia and the Southern District of Florida, each charging him with distributing child pornography. Jeffries was sentenced to 168 months in prison for each count of distributing child pornography and 120 months in prison for possessing child pornography. The prison sentences for each count will be served concurrently. In addition to his prison term, Jeffries was sentenced to serve lifetime supervised release.
According to information presented in court, Jeffries assisted in running an online forum from his Orange County home that was dedicated to posting pictures and chatting about young girls. The defendant was responsible for one-fourth of the images available on the forum.
In February 2010, undercover FBI agents working in Richmond, Va., and Miami logged onto a peer-to-peer file sharing network and downloaded numerous images of child pornography from Jeffries. In June 2010, a search warrant was obtained and computer equipment was seized from the defendant’s Virginia home. A forensic examination of that equipment revealed thousands of image files, including images of young children engaged in sexual acts with adults.
The investigation of the case was conducted by the Orange County Sheriff’s Office, the FBI, the Charlottesville, Va., Police Department, the University of Virginia Police Department and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Assistant U.S. Attorney Nancy Healey and Trial Attorney Darcy Katzin with the Criminal Division’s CEOS are prosecuting the case for the Western District of Virginia. Elizabeth Wu is prosecuting the case for the Eastern District of Virginia.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney's Office Taking Proactive Measures to Address Active Shooter IncidentsRead the Press Release
BUFFALO. N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that the Western District of New York, which covers 17 upstate counties, is sponsoring three upcoming training sessions that will address violent crime, in particular shootings, and how it impacts law enforcement, schools and businesses.
"In light of the recent shootings at Sandy Hook Elementary School in Newtown, Connecticut and Webster, N.Y., the timing of these trainings couldn’t be better," said U.S. Attorney Hochul. "As someone who has worked directly with our local police and federal agencies for the past three decades, the public needs to know that our law enforcement officers are well trained and dedicated when it comes to handling these highly volatile situations. Nevertheless, we must continue to be proactive and do all we can do to educate and prepare not only members of law enforcement, but also the public."
The first training, "Street Survival and Officer Safety," is scheduled for February 8, 2013. Organized specifically for members of law enforcement, this training will focus on three case studies which involved the death or serious injuries of police officers and the safety training that followed these incidents. This training is co-sponsored by the U.S. Attorney's Office, Middle Atlantic-Great Lakes organized Crime Law Enforcement Network (MAGLOCLEN), the Federal Bureau of Investigation, and Hilbert College.
On March 15, 2013, the U.S. Attorney’s Office, together with the United States Secret Service, The University at Buffalo, and the National Center for Missing and Exploited Children, will co-sponsor the 10th Annual Safe Schools Initiative Seminar. This all day program, entitled "Understanding Human Aggression and Violence, and Making Our Schools Safe," is designed for school officials and officers, and will feature Lt. Col. Dave Grossman, one of the world's foremost experts in the field of human aggression and the roots of violence and violent crime.
Finally, the U.S. Attorney's Office, along with other local police agencies, are in the planning stages of a training to be held in April that will focus on active shooters in a business environment. The goal of the training is to educate employees and owners of local businesses and equip them with the tools needed to be protect their staff and operations from a violent crime incident.
"By partnering with law enforcement, the education and business communities on a topic as important as active shooter, I believe we can better protect the public and each other from the many challenges such a scenario presents,” said U.S. Attorney Hochul.
“While no one solution exists which will eliminate all violent crime, by collectively discussing and implementing best practices, we will all be in a better position to ensure that the proper steps are taken to both prevent, and address, such dangerous situations if they ever present themselves again."
For more information about these trainings, please contact Public Affairs Officer Barbara Burns at 716-842-5817.
Two Charged in Bribery Scheme Involving Orange County Company That Sold Components to Panasonic for Use in Personal ComputersRead the Press Release
SANTA ANA, California – Federal prosecutors today filed criminal charges against the chief executive of an Irvine company who for years paid kickbacks to ensure contracts for his firm, as well as an official with Panasonic’s American subsidiary who accepted the bribes from the Californian supplier of electronic components.
The two men who were charged today with “honest services” wire fraud are:
William McMahon, 47, of Norco, California, the CEO and co-owner of Trustin Technology, andSean Volin, 38, of Oakland, New Jersey, a manager with the Panasonic Corporation of North America in Secaucus, New Jersey.
In addition to criminal informations filed in United States District Court, prosecutors filed plea agreements in which both men admit their criminal conduct and agree to cooperated with investigators in their ongoing probe.
According to the court documents, for the past decade Trustin sold random access memory modules and then hard drives to Panasonic for use in at least one line of laptop computers. Panasonic was Trustin’s largest and most important customer.
Approximately 10 years ago, Volin approached the then-CEO of Trustin to discuss a price reduction for hard drives Trustin was supplying to Panasonic. In response, the then-CEO proposed a kickback scheme in which Panasonic would continue to pay the same price for hard drives, but Trustin would give Volin half of the proposed price reduction for each unit sold. Volin “agreed with [the CEO’s] proposal, did not obtain a price reduction for Panasonic, and a stream of illicit payments between Trustin and [Volin] began,” according to Volin’s plea agreement.
McMahon became CEO of Trustin in 2005, and he learned of the kickback arrangement that had already brought more than $100,000 to Volin. The payments stopped under McMahon’s watch for a period of time, but the payments resumed as McMahon developed a relationship with Volin. Instead of paying a kickback for each hard drive sold to Panasonic, McMahon made regular payments in exchange for Volin “looking out for Trustin’s interests and [as] a reward for defendant’s prior assistance to Trustin,” according to Volin’s plea agreement.
From November 2005 through the end of 2011, McMahon oversaw payments of more than $555,000 that went to a company Volin had established to accept the illicit payments from Trustin. In total, Volin was paid more than $664,900 by Trustin. Volin and McMahon also admit in the court documents that the Panasonic employee received other benefits, including trips to the Kentucky Derby and Napa Valley.
“In exchange for this stream payments, and acting with the intent to defraud Panasonic of [Volin’s] duty of honest services, [Volin] continued to assist Trustin in obtaining additional business from Panasonic, including Panasonic’s designating Trustin a ‘Master Vendor,’” according to court documents, which say that as a result of the scheme “Trustin was able to obtain tens of millions of dollars of business from Panasonic.”
The wire fraud charge alleged in the two cases filed today carries a statutory maximum penalty of 20 years in federal prison.
McMahon and Volin will be summoned to appear in federal court in Orange County in February.
The cases are the result of an ongoing investigation being conducted by U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation.
Panasonic Corporation of North America fully cooperated with the government’s investigation.
Release No. 13-014
Two Brothers Indicted for Tax Fraud and Identity TheftRead the Press Release
Allegedly Used Personal Information Stolen from Puerto Rican Residents To File False Tax Returns from Maryland Seeking RefundsGreenbelt, Maryland - A federal grand jury indicted Ewdy Jose Olivo, age 28, of Rockville, Maryland and his brother Juan Manuel Olivo, age 30, of Hyattsville, Maryland today for obtaining false tax refunds by stealing the identities of others to prepare and file false income tax returns.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “We are aggressively pursuing identify thieves and working with the U.S. Attorney’s Office in bringing to justice those who harm and steal from the American taxpayer.” The Olivo brothers owned and operated Oligil Tax Services located at 8549 Piney Branch Road in Silver Spring, Maryland.
The 18 count indictment alleges that from April 2007 to January 2010, the brothers stole personal identifying information such as social security numbers and birth dates of others, many of whom were residents of Puerto Rico and were not required to file federal income tax returns so long as all of their income was derived from Puerto Rican sources. The brothers allegedly prepared false income tax returns in the victims’ names and filed them electronically with the IRS from Maryland. They requested that the IRS mail tax refund checks to addresses controlled by them and deposited the checks into their bank accounts. The amount of individual refunds claimed ranged from $1,562 to $4,950.
The indictment seeks the forfeiture of $88,960 seized on April 10, 2012 from the defendants’ tax office and the home of Juan Olivo.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit wire fraud and for each of 11 counts for wire fraud; and a mandatory minimum of two years in prison consecutive to any other sentence imposed on each of six counts of aggravated identity theft. Their initial appearance has not yet 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.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Robert K. Hur, who is prosecuting the case.
Twin Falls Man Sentenced to Six Years for Trafficking MethRead the Press Release
BOISE – Ramon G. Zamarripa, 54, of Twin Falls, Idaho, was sentenced today in United States District Court to 72 months in prison for possession of a controlled substance with intent to distribute and possession of a firearm in furtherance of drug trafficking, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Zamarripa to serve five years of supervised release and forfeit the firearm found in his possession.
Zamarripa was charged in a superseding information with possession with intent to distribute 48.12 grams of methamphetamine and possession of a .25 caliber handgun on March 12, 2012, in furtherance of drug trafficking. At his plea hearing on November 13, 2012, Zamarripa admitted that he possessed the methamphetamine with the intent to distribute it and possessed the firearm to facilitate a drug trafficking crime.
The case was investigated by the Twin Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Three Tax Preparers Indicted for Preparing False Tax ReturnsRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier today charges three Minnesota tax preparers with filing false tax returns on behalf of their customers. Solomon Frank-Sawari, Chasma Dixon, and Tameca Stokes were each indicted on one count of conspiracy to defraud the United States and one count of aggravated identity theft. In addition, Frank-Sawari was charged with nine counts of preparing false income tax returns, and both Dixon and Stokes were charged with five counts of preparing false income tax returns. The indictment, which was filed on January 15, 2013, was unsealed following the defendants’ initial appearance in federal court.
The indictment alleges that from 2007 through February of 2010, the defendants conspired with each other to obstruct the Internal Revenue Service (“IRS”) in its collection of income taxes. At the time, Frank-Sawari owned and operated two tax-return preparation businesses: Merit Tax Service in Robbinsdale and Capitol Income Tax in Minneapolis. Dixon worked at Merit in 2007 and at Capitol in 2008 and 2009. Stokes worked at Capitol. All three prepared and filed federal and state income tax returns on behalf of customers.
Allegedly, the defendants prepared false tax returns that generated excessive refunds, totaling more than $200,000. In turn, those refunds purportedly resulted in excessive fees and other payments to the defendants.For tax years 2006 through 2009, the defendants prepared and filed hundreds of federal and state tax returns.
The tax returns also allegedly contained false or inflated income figures as well as false dependents, whose identities the defendants used unlawfully. The false dependents fraudulently qualified the customers for a more favorable filing status, allowed them to take dependent exemptions, and inflated their refundable earned income and child tax credits.
The indictment alleges that the defendants recruited customers, instructing them to sign false income declarations and other paperwork. In many instances, one of the defendants reportedly accompanied the customers to check-cashing businesses to ensure that the defendants would receive some portion of the fraudulent tax refund checks.
If convicted, the defendants face a potential maximum penalty of five years in federal prison for conspiracy, three years on each count of preparing false tax returns, and a mandatory minimum penalty of two years on each count of aggravated identity theft. All sentences will be determined by a federal district court judge.
This case is being investigated by the IRS-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney William J. Otteson.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial. Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.Suburban Chicago Lawyer Who Hosts National Radio Talk Show Indicted in $9.7 Million Mortgage Fraud SchemesRead the Press Release
CHICAGO — A suburban Chicago lawyer who hosts a national radio talk show was indicted on federal charges for allegedly engaging in two mortgage fraud schemes that defrauded lenders of a total of approximately $9.7 million. The defendant, WARREN BALLENTINE, allegedly schemed with others to obtain more than two dozen fraudulent mortgage loans and represented buyers at multiple closings, knowing that they were fraudulently qualified for loans to purchase homes in Chicago and various southern suburbs.
Ballentine, 41, of Durham, N. Car., and formerly of Country Club Hills, owns the Law Office of Warren Ballentine, LLC, in Country Club Hills. He was charged with two counts of bank fraud, two counts of making false statements to lenders, and one count each of mail fraud and wire fraud in a six-count indictment returned last Thursday by a federal grand jury. The indictment also seeks forfeiture of approximately $9,775,000 in alleged fraud proceeds.
Ballentine is scheduled to be arraigned at 9:30 a.m. on Feb. 5 before U.S. District Judge Matthew Kennelly in Federal Court in Chicago.
The indictment was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Thomas P. Brady, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
According to the indictment, between December 2004 and February 2005, Ballentine schemed with others to fraudulently cause various lenders to make at least eight loans totaling approximately $3.6 million by making false statements in loan documents, including applications, HUD-1 settlement statements, and occupancy statements concerning the buyers’ intention to occupy the homes they purchased as a primary residence. Ballentine then represented buyers recruited by others at real estate closings, knowing that they had signed and submitted false documents and had been fraudulently qualified to purchase the properties in Chicago, Monee, Woodridge, and Mokena.
Between February 2005 and May 2006, Ballentine allegedly engaged in a similar, separate scheme with others to fraudulently cause various lenders to make at least 20 loans totaling approximately $6.1 million by making false statements in mortgage documents, including the buyers’ intention to occupy the homes as a primary residence. Ballentine also represented these buyers at closings, knowing that they had been fraudulently qualified for the loans based on false documents, including some that Ballentine advised them to sign at closings. These homes were scattered throughout Chicago and other suburbs, including Country Club Hills, Richton Park, and Markham.
Each count of the indictment carries a maximum penalty of 30 years in prison and a $1 million fine or, as an alternative, the Court may impose a fine of twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Jason Yonan.
The Financial Fraud Enforcement 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. For more information on the task force, visit: www.StopFraud.gov.
Indictment
South Shore Drug Traffickers Charged in Oxycodone Distribution RingRead the Press Release
BOSTON - Seven individuals were charged today in federal court with conspiracy to distribute Oxycodone.
Charged in a criminal complaint with the drug conspiracy, Steven Dunn, 47, of Brockton; Robert Henriques, 55, of Brockton; Jodi Kilday, 46, of Brockton; Jose Silva, 34, of Whitman; Gail Fitzgibbons, 30, of Abington; Gennaro “Jerry” Dellatorre, 35, of Abington; and Adam Roberts, 29, of Brockton. Dunn, Henriques, Kilday, Fitzgibbons, Dellatorre were all arrested this morning. Silva was previously in state custody.
According to the criminal complaint affidavit, a Court-authorized wiretap was utilized to intercept communication between the defendants over the course of approximately eight months. It is alleged that Roberts sold and distributed wholesale quantities of Oxycodone to Dunn and others throughout the South Shore. On Aug. 21, 2012, shortly after purchasing a quantity of Oxycodone from Fitzgibbons, Roberts was arrested and 274 Oxycodone pills were seized. Dunn purchased wholesale quantities of Oxycodone from Roberts, Kilday and others, and then distributed the pills to “street level” customers through Henriques. Silva sold wholesale quantitites of Oxycodone to Fitgibbons and Dellatorre. On Dec. 8, 2012 Silva was arrested while returning from New York and 1,744 Oxycodone pills were seized.
U.S. Attorney Carmen M. Ortiz said, “I want to acknowledge the unprecedented cooperation in this investigation between federal, state and local authorities, which reached from Southeastern Massachusetts to New York to Florida.”
“These arrests demonstrate the commitment of DEA and our law enforcement partners in targeting and bringing to justice those responsible for illegally supplying and distributing Oxycodone in our neighborhoods,” said Special Agent in Charge John Arvanitis. “We are steadfast in our commitment to assisting communities who suffer through the abuse of diverted prescription medicines.”
According to court documents, from June 2012 through December 2012, Dunn, Henriques, Kilday, Silva, Fitzgibbons, Dellatorre and Roberts purchased, sold, and distributed wholesale quantities of Oxycodone.
If convicted, the maximum penalties for each defendant is up to 20 years in prison, to be followed by up to lifetime supervised release and a $1 million fine.United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent-in-Charge of the Drug Enforcement Administration - Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Colonel Timothy Alben, Superintendent of the Massachusetts State Police made the announcement today.
The case was investigated by the DEA Cape Cod Task Force and the Massachusetts State Police Detective Unit assigned to the Plymouth County District Attorney’s Office. Substantial assistance was provided by the Police Departments of Brockton, Marshfield, Wareham, Plymouth, and Barnstable; MSP Cape and Islands Detective Unit; DEA New York Field Division Strike Force Group 23 and West Palm Beach, Fla. Resident Office; Del Ray Beach, Fla. Police Department; and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys James E. Arnold and Michael I. Yoon of Ortiz's Organized Crime Drug Enforcement Task Force.
The details contained in complaint affidavit the are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Smithfield Man Convicted of Federal Drug ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on Friday, January 25, 2013 GREGORY DEVON OBEY, 28, of Smithfield, North Carolina, was convicted for his role in a drug trafficking conspiracy as well as multiple counts of distributing cocaine and crack cocaine.
On August 8, 2012, a Federal Grand Jury returned a Criminal Indictment that charged OBEY with one count of conspiring to distribute and possess with the intent to distribute 280 grams or more of crack cocaine and 5 kilograms or more of powder cocaine. The Indictment also charged OBEY with 7 counts of distributing powder cocaine and 28 grams or more of crack cocaine from August 30, 2011, up to and including June 13, 2012. On January 25, 2013, after a three-day trial, a jury found OBEY guilty on all counts. Based on these convictions, OBEY faces up to a life sentence in prison.
The evidence in the case demonstrated that from at least March 2011, up to and including June 12, 2012, OBEY and at least seven other individuals conspired to distribute crack and powder cocaine. In his statement, OBEY admitted that he had obtained over 55 kilograms of crack cocaine and over 79 kilograms of powder cocaine from his sources of supply for re-distribution. During the investigation, seven controlled buys of cocaine and crack cocaine were conducted from OBEY, each recorded with an audio/video device. In addition, the evidence established that, upon his arrest, OBEY confessed to being a drug dealer and named approximately seven other co-conspirators with whom he had been trafficking cocaine and crack cocaine. The evidence developed also revealed that, shortly before his arrest, OBEY threatened a witness in the case.
Investigation of this case was conducted by the Smithfield Police Department, the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Sioux Falls Man Indicted for Wire FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls man has been indicted by a federal grand jury for Wire Fraud.
Terry Stimpert, age 37, was indicted by a federal grand jury on December 4, 2012 for Wire Fraud. He appeared before US Magistrate Judge John E. Simko on January 24, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 20 years imprisonment and/or a $250,000 fine. The charge is merely an accusation and Stimpert is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Assistant United States Attorney Jeffrey C. Clapper is prosecuting the case. Stimpert was released on bond pending trial.
Sheyenne Man Sentenced for Damaging Law Enforcement VehicleRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on Jan. 28, 2013, Weldon Littleghost, 21, of Sheyenne, N.D., was sentenced before U. S. District Judge Ralph R. Erickson on charges of damage to government property, possession of stolen firearms, and escape by prisoner.
Judge Erickson sentenced Littleghost to one year and nine months in prison. The sentence is to be followed by three years of supervised release. Littleghost was ordered to pay restitution, joint and several with co-defendant Lucas Little, in the amount of $42,358.19, and to pay a $225 special assessment to the Crime Victim's Fund. Littleghost pleaded guilty to the charges on Sept. 26, 2012.
Co-defendant Lucas Little of Tokio, N.D., pleaded guilty to the same charges on Sept. 25, 2012. Little was sentenced on Dec. 18, 2012, to one year and 10 months in prison to be followed by two years of supervised release. Little was ordered to pay restitution, joint and several with co-defendant Weldon Littleghost, in the amount of $42,358.19, and to pay a $225 special assessment to the Crime Victim's Fund.
On Aug. 24, 2011, Little and Littleghost were arrested on tribal charges on the Spirit Lake Indian Reservation and placed in the back seat of a Bureau of Indian Affairs police vehicle. While the arresting officer was tending to the medical needs of another person arrested with Little and Littleghost, Little managed to gain access to the front seat of the police vehicle and drove away with Littleghost in the vehicle.The two men drove a distance and were able to remove their handcuffs. Then Little and Littleghost severely damaged the vehicle by destroying the digital video and radio systems, and shooting the back window and the exterior of the vehicle. Finally, the vehicle was eventually recovered from Horseshoe Lake when the pair missed a curve in the road and drove into the lake. During the search for the escaped prisoners, a U.S. Border Patrol helicopter with thermal imaging capabilities was used to locate Little along
the shore. Littleghost was apprehended at the home of a relative.The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs with assistance from the United States Border Patrol.
Assistant U. S. Attorney Janice M. Morley prosecuted the case.
Serial Sex Offender from Utah Sentenced to Eight Years in PrisonRead the Press Release
BOISE – Bo B. Burdick, 21, of Tremonton, Utah, was sentenced today in United States District Court in Boise to 96 months in prison followed by ten years of supervised release for travel with intent to engage in illicit sexual contact, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also imposed a no contact order and ordered Burdick to pay $21,683.83 in restitution to the victim. Burdick pleaded guilty to the charge on August 20, 2012.
According to the plea agreement, in January 2011, Burdick solicited a “Facebook” friend request from a 13-year-old girl living in Idaho. The girl accepted and learned that Burdick was a volunteer firefighter and EMT living in Utah. Burdick and the girl began to chat via text messaging, using cellular telephones and an iPod. Early in their online relationship, Burdick sent the girl a nude picture of himself, and the girl complied with Burdick's request to send him sexually provocative pictures of herself, including pictures of her in underwear and fully nude. The girl e-mailed the pictures from her e-mail account to the e-mail address provided by Burdick.
Idaho State Police Cyber Crimes Unit recovered text messages and e-mail sent in January 2011 from the girl to Burdick, and from Burdick to the girl. The messages clearly show that the girl told Burdick she was 13 years old. They also show Burdick giving the girl instructions about the kinds of pictures he wanted her to send.
According to the plea agreement, Burdick was interviewed by agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations in Utah in March 2012. At the interview, Burdick admitted that he traveled from Utah to Idaho to visit the girl on four separate occasions in 2011; that he rented hotel rooms and that he and the girl engaged in sexual intercourse. Burdick also told investigators that he had saved nude pictures of the girl on his laptop computer. Initial forensic analysis of the computer by Idaho State Police identified files in folders containing digital images of the girl in various stages of undress, images of other young females, and pictures of recognizable locations in three Idaho towns. An SD card contained many of the same images recovered from the laptop. Examination of Burdick's cellular phone also found thumbnail images of the girl, which were transferred to the laptop.
According to court documents, during the investigation, investigators discovered that the 13-year-old in this case is not Burdick's only victim. Burdick admitted that between the ages of 17 and 20, he had sexual encounters with 11 females in Utah whom he had met online. Burdick told investigators four of the females were under the age of 16, including the Idaho victim. Burdick admitted that when he was age 19, he had a sexual relationship with a 14-year-old female in Utah and fathered a child with her.
“Mr. Burdick’s eight year sentence sends the strong message that those who sexually exploit children will receive significant punishment,” said Olson. “The criminal conduct in this case is tragic for the victim and her family. The dangers of sexual predators who lurk on the internet is real and persistent. Idaho law enforcement at all levels will work together to aggressively pursue these offenders.”
“This case illustrates the importance of parental involvement in a child's digital life,” said Brad Bench, special agent in charge of HSI Seattle, who oversees HSI investigations in Idaho. “If not for the intervention of the girl's parents who discovered and reported the illicit activity, Burdick could be free to victimize others. While parents are the first line of defense in protecting children, they are not alone. Every day HSI and its law enforcement partners work tirelessly to investigate, arrest and prosecute child predators.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Idaho State Police.
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, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Samurai Sword Wielding Palm Coast Man Sentenced to 10 Years in Federal Prison for Receiving Child PornographyRead the Press Release
Jacksonville, Florida - U.S. District Judge Marcia Morales Howard today sentenced Kamil Mezalka (21, Palm Coast) to 10 years in federal prison for receiving child pornography over the Internet. As part of his sentence, Mezalka is also required to serve a 10-year term of supervised release, following his release from prison, and ordered to forfeit his computers and other digital media.
According to court documents, in March 2012, an agent with the Federal Bureau of Investigation (FBI) in Philadelphia began an Internet undercover investigation to identify persons using a particular file sharing program to obtain and share child pornography. Using a computer, the agent logged into this file sharing program and observed that an individual using a particular screen name was logged into the network. The agent browsed the user’s shared directory and observed that over 4,000 files were being shared therein, many of which contained titles and descriptors indicative of child pornography and the sexual abuse of children. The investigation revealed that during the time frame of these two download sessions, this particular IP address was issued to an account registered to an individual at a residence in Palm Coast, Florida. Subsequent investigation revealed that Kamil Mezalka was an occupant of this residence.
On May 8, 2012, FBI agents executed a federal search warrant at Mezalka’s residence. As agents gained entry to the residence, Mezalka came out of a second floor bedroom, observed the agents, and quickly turned and went back inside the same bedroom and closed the door. Despite repeated commands to come out of the bedroom, Mezalka remained in the bedroom and proceeded to use a samurai sword to attempt to destroy his computers and compact disks. Agents made entry into Mezalka’s bedroom, where he was eventually arrested. During an interview, Mezalka admitted to, among other things, having a file sharing program on his computer which he used to download pornography that included child pornography. He further stated that most of it would be on the laptop computer and that some of the images might be on the desktop computer.
During the search, the agents seized, among other things, a desktop computer and a laptop computer. Both of these computers were damaged by Mezalka’s use of the samurai sword. Subsequent forensic analysis revealed that one hard drive contained over 12,000 images and over 3,000 videos, of which at least 500 images and 100 videos depicted child pornography.
This case was investigated by the Federal Bureau of Investigation in Philadelphia and Jacksonville, the Florida Department of Law Enforcement, and the Flagler County Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Rosebud Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Failure to Register as a Sex Offender was sentenced on January 23, 2013 by United States District Judge Roberto A. Lange. Darrell Bear Robe, age 23, was sentenced to 15 months in custody, 5 years of supervised release, and a $100 special assessment to the Victim Assistance Fund.
Bear Robe was indicted by a federal grand jury on July 18, 2012 and pled guilty to the charge on October 29, 2012.
On April 13, 2009 Darrell Bear Robe was convicted of Abusive Sexual Contact. The Court sentenced Bear Robe to 24 months in custody and five years of supervised release and also ordered that he register as a sex offender. Bear Robe began his term of supervised release on July 12, 2010 and absconded from supervised release on June 15, 2011. During the time he absconded from supervised release until he was apprehended in Oregon on May 9, 2012, Bear Robe failed to complete his bi-annual sex offender registration requirement.
The investigation was conducted by the United States Marshal Service. The case was prosecuted by Assistant United States Attorney Marie H. Ruettgers.
Bear Robe was remanded to the custody of the United States Marshal.
Rapid City Woman Charged with Concealing Person from ArrestRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota woman has been indicted by a federal grand jury for Concealing Person From Arrest. Megan Crazy Thunder, age 24, was indicted on January 16, 2013.
She appeared before United States Magistrate Judge Mark A. Moreno on January 23, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Crazy Thunder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshal Service. Assistant United States Attorney Marie H. Ruettgers is prosecuting the case.
Crazy Thunder was released on bond pending trial. A trial date has not been set.
Puerto Rican Man Sentenced to Two Years in Prison for Distributing Counterfeit, Chinese-Made Pharmaceuticals Across United StatesRead the Press Release
LOS ANGELES – A Puerto Rican man was sentenced today to two years in federal prison for being a key member of an organization that distributed large quantities of Chinese-made, counterfeit pharmaceuticals across the United States.
Francis Ortiz Gonzalez, 36, was sentenced late this morning by United States District Judge George H. Wu, who also ordered the defendant to pay $324,530 in restitution to the pharmaceutical companies that manufacture brand name products such as Lipitor, Viagra, Xanax and Cialis.
In September 2009, federal agents executed a search warrant at Ortiz Gonzalez’s residence in Trujillo Alto, a suburb of San Juan, Puerto Rico. Inside the home, investigators found more than 100,000 pills that resembled a variety of popular prescription medications made by companies such as Pfizer Inc. and Eli Lilly and Company. Investigators developed evidence that Ortiz Gonzalez obtained the counterfeit pills from China and had shipped more than 140,000 of them to individuals throughout the United States. If the drugs had been authentic, the retail value of the pills shipped throughout the United States by Ortiz Gonzalez and possessed in his home would be more than $1 million.
After a six-day trial last summer, Ortiz Gonzalez was convicted on one count of conspiracy and seven counts of trafficking in counterfeit pharmaceuticals. Ortiz Gonzalez was acquitted on three charges. His wife, Ideliz Aleman-Valentin, was acquitted on all charges.
Ortiz Gonzalez packaged and shipped more than 140,000 counterfeit tablets during a seven-month period in 2009 while working as a “dropshipper” for a counterfeit drug ring allegedly headed by Bo Jiang, 34, a Chinese national whose last known residence was in New Zealand. In January 2011, Jiang was taken into custody on a provisional arrest warrant by New Zealand law enforcement authorities, but he fled shortly after being released on bond. Jiang remains a fugitive.
In a related case before Judge Wu, a North Hollywood man was found guilty on January 11 of federal charges involving the trafficking of counterfeit pharmaceuticals.
Edward Alarcon, 44, was convicted of two counts of trafficking in counterfeit OxyContin and Cialis (he was acquitted on two other counts). The evidence presented during a three-day jury trial showed that Alarcon had purchased the counterfeit OxyContin from
Bo Jiang, the same man who allegedly supplied Ortiz Gonzalez. On November 10, 2009, federal agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) found approximately 237 counterfeit OxyContin pills and approximately 1,592 counterfeit Cialis pills in Alarcon’s car and house. Investigators also found hundreds of other counterfeit pills, including Viagra and Levitra. Only a month before the federal search, Alarcon had been convicted in state court on counterfeit drug charges for selling counterfeit Cialis to an undercover Los Angeles Police Department officer in 2008.
Alarcon is scheduled to be sentenced by Judge Wu on April 4. At that time, Alarcon faces a statutory maximum sentence of 20 years in federal prison.
The cases against Ortiz Gonzalez and Alarcon are the result of investigations by HSI; the Food and Drug Administration, Office of Criminal Investigations; and the United States Postal Inspection Service.Release No. 13-013
Preschool Teacher Pleads Guilty to Producing Child PornographyRead the Press Release
ALEXANDRIA, Va. – James Douglas Manring, 54, of Fredericksburg, Va., pleaded guilty today to producing child pornography by filming his sexual abuse of several five-year-old students while teaching in Japan.Manring taught preschool in Bethesda, Md., prior to his arrest on Nov. 13, 2012.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after the guilty plea was accepted by United States District Judge Claude M. Hilton.
Manring pleaded guilty to two counts of production of child pornography, which carry a mandatory minimum penalty of ten years and a maximum penalty of 20 years in prison, for each count.
According to statement of facts and other court records, Manring filmed himself performing sexual acts on several students who were approximately five years of age while teaching at a preschool in Japan from 1996 till 1999. In 1999, Manring returned the United States and brought DVDs containing the child pornography he produced with him.
Between April 2010 and February 2011, Manring purchased approximately 46 “naturist” videos for more than $2,000. These videos depict the graphic and simulated lascivious exhibition of the genitals and pubic areas of minor boys and were mailed from New York to Manring’s residence in Fredericksburg.
This case was investigated by the U.S. Postal Inspection Service’s Washington Division’s Child Exploitation Investigations. Special Assistant United States Attorney Alicia J. Yass is prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov..
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Permanent Injunction Entered Against Michigan-Based Manufacturer of Soy ProductsRead the Press Release
U.S. District Judge David M. Lawson, of the Eastern District of Michigan, entered a consent decree of permanent injunction against Ann Arbor, Michigan-based Green Hope LLC, dba Rosewood Products, and its president, Phil G. Ye, the Justice Department announced today.
The company manufactures and sells ready-to-eat organic tofu and soy milk products to businesses in Michigan and Minnesota, including organic supermarket chains. As alleged in the complaint filed against the company and Ye, numerous Food and Drug Administration (FDA) inspections since 2009 found persistent violations at the company’s manufacturing facility involving insanitary conditions. FDA’s inspections found that Green Hope did not store food properly, did not address employee cleanliness issues, permitted waste water to come into contact with tofu during processing and failed to clean all food-contact surfaces and equipment. These violations raised the possibility of contamination of the company’s food products.
The consent decree orders Green Hope and Ye to take a wide range of actions to correct the violations and ensure that they do not happen again. Among other actions, Green Hope must develop and implement sanitation control programs; provide FDA the opportunity to inspect the facilities to assure Green Hope’s compliance with the consent decree, the Food, Drug and Cosmetic Act, and applicable regulations; and receive written authorization from FDA to resume operations. Green Hope must also make structural repairs to its facility necessary to protect against contamination of raw ingredients, in-process and finished articles of food, containers and packaging materials.
“This company has a long history of not complying with federal statutes and regulations intended to protect the public health,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. “Consumers expect, and deserve, that their food be safe to eat, and the Department of Justice will continue to take enforcement action against food manufacturers whose conduct can endanger public safety.”
This case was litigated by Dan Baeza of the Consumer Protection Branch in the Department of Justice’s Civil Division in conjunction with Assistant U.S. Attorney Peter A. Caplan of the U.S. Attorney’s Office for the Eastern District of Michigan and Christopher Fanelli of the FDA’s Office of Chief Counsel. The case was investigated by the FDA’s Detroit District Office.
The FDA Warning Letter against Green Hope can be found at: www.fda.gov/ICECI/EnforcementActions/WarningLetters/2011/ucm254923.htm
Parmelee Woman Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota woman has been indicted by a federal grand jury for Involuntary Manslaughter.
Kamelia Ione No Moccasin, age 28, was indicted by a federal grand jury on January 16, 2013. She appeared before United States Magistrate Judge Mark A. Moreno on January 24, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 8 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and No Moccasin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. Assistant United States Attorney Marie H. Ruettgers is prosecuting the case.
No Moccasin was released on bond pending trial. A trial date has not been set.
Oxon Hill Man Exiled to 16 Years in Prison on Gun and Drug ChargesRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Antonio Timothy Bailey, age 34, of Oxon Hill, Maryland, today to 16 years in prison followed by five years of supervised release for possession with intent to distribute crack cocaine base, and being a felon in possession of a firearm. Chief Judge Chasanow enhanced Bailey’s sentence upon finding that he is an armed career criminal based on three previous narcotics and gun convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to Bailey’s plea agreement, on November 8, 2011, Bailey was sitting in his car, parked outside a known open air drug market, when he was approached by officers with the Prince George’s County Police Department (PGPD). As officers approached his vehicle, Bailey jumped out and ran away, followed by police. During the chase, Bailey threw a plastic bag containing 29 blue glassine baggies, containing a total of 3.06 grams of crack cocaine. Bailey was arrested and charged in the District Court for Prince George’s County, Maryland, with possession with intent to distribute crack cocaine, among other charges.
After additional investigation, on February 3, 2012, PGPD officers searched Bailey’s apartment in Oxon Hill. Bailey was found in the apartment and officers recovered: a loaded 9 mm caliber, semi-automatic pistol; 20.65 grams of crack cocaine, packaged in small glassine baggies; approximately 11 grams of marijuana; and drug distribution paraphernalia, including two electronic scales, empty glassine baggies, a cooking cup, baking soda, and a razor blade.
During a subsequent interview with police, Bailey admitted to purchasing two ounces of powder cocaine every two weeks, cooking it into crack cocaine at his apartment, packaging it for sale, and selling it at various locations in Prince George’s County. Bailey stated that he kept the gun in his apartment for protection.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Steven E. Swaney and Special Assistant U.S. Attorneys Jonathan Ophardt, assigned from the U.S. Department of Justice, and Paul Nitze, assigned from the Social Security Administration, who prosecuted the case.
Owings Mills Woman Indicted in Tax Fraud SchemeRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Karen Kimble, a/k/a âKaren Kimble-Mamah,â and âKaren Mamah,â age 38, of Owings Mills, Maryland, on charges of wire fraud, subscribing to a false tax return, aiding in the filing of a false tax return, aggravated identity theft and visa fraud. The indictment was returned on January 24, 2013. Kimble has an initial appearance scheduled today at 2:15 p.m. in U.S. District Court in Baltimore, Courtroom 7B before U.S. Magistrate Judge Susan K. Gauvey.
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 Enforcementâs (ICE) Homeland Security Investigations (HSI); Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.
âFraud schemes involving identity theft cause tremendous financial damage and can make honest taxpayers face a more difficult time obtaining their lawful refund,â said Shelia Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. âMs. Kimbleâs refund fraud scheme victimized innocent taxpayers and tampered with the integrity of our nationâs tax system. The IRS will remain vigilant in our investigation of these schemes and will continue to work with prosecutors to combat this type of criminal conduct.â
The 21-count indictment alleges that from February 2008 through at least April 2012, Kimble, who falsely held herself out to others as a âcertified tax preparer,â conducted a tax fraud scheme by submitting fraudulent tax returns for clients. Specifically, the indictment alleges that Kimble falsely inflated credits and deductions and clientsâ tax returns, as well as on her own tax returns, in order to fraudulently increase the tax refund. Kimble provided her clients with a tax return that did not reflect the false deductions and credits, nor did she inform them of the fraudulent deductions/credits. Kimble filed the fraudulent returns without her clientsâ knowledge or permission, using their personally identifiable information. Kimble directed that the tax refunds be mailed or directly deposited with all of the refund sent to Kimble, or with some of the refund sent to the taxpayer and some to Kimble. The indictment alleges that Kimble received a total of over $221,000 in fraudulent federal and tax refunds, none of which she reported as income on her own tax returns. The indictment seeks forfeiture of $221,698, alleged to be the proceeds of the scheme.
The indictment also alleges that on February 14, 2008, Kimble married a Ghanian citizen, knowing that the marriage was not valid because the Ghanian was not legally divorced from his first wife.
Kimball faces a maximum sentence of 30 years in prison for each of six counts of wire fraud; three years in prison for each of five counts of subscribing to a false tax return, and for each of five counts of aiding in the filing of a false tax return; a mandatory two years in prison, consecutive to any other sentence, for each of four counts of aggravated identity theft; and 10 years in prison for visa fraud.
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.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, IRS-Criminal Investigation and the USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter M. Nothstein, who is prosecuting the case.
Orlando Man Pleads Guilty to Tax Fraud Scheme Involving RefundsRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces that Salvador Cuevas (Orlando) today pleaded guilty to conspiring to defraud the government with respect to false claims. Cuevas faces a maximum penalty of 10 years in federal prison.
Cuevas is part of a fraudulent tax refund scheme using the stolen identities of Puerto Rican residents to obtain paper refund checks. The refunds (Treasury checks) were delivered to various addresses in the Orlando area.
According to the plea agreement, in September 2007, Cuevas opened a checking account at Washington Mutual (now known as JP Morgan Chase). Cuevas was the only signatory on the account. About that same time, he paid another individual $300 to use the individual's address on Venezia Plantation Drive, in Orlando, Florida to receive “mail,” referring to U.S. Treasury checks. ln October 2007, Cuevas began depositing Treasury refund checks into the account. After the checks cleared, large cash withdrawals and/or personal expenditure purchases were made against the account. According to the WAMU bank records, the third-party Treasury checks that were deposited represented 75% of the total credits into the account. Cuevas admitted to depositing the refund checks, which were in the names of other people, into his bank account.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
Omaha Man Sentenced for Possession of Stolen ExplosivesRead the Press Release
United States Attorney Deborah R. Gilg announced that Travis McQueen, age 28 of Omaha, was sentenced today in Omaha by Chief United States District Judge Laurie Smith Camp to 63 months in federal prison followed by 3 years of supervised release. Mr. McQueen had previously pleaded guilty to one count of knowing possession of stolen explosives.
On August 11, 2011, one or more persons broke into storage units at the Buckley Powder Company in rural Cass County, Nebraska, and stole 100 pounds of blasting agent, 3,000 feet of detonating cord and two cases of boosters. A lengthy investigation into the matter eventually led investigators to place reward flyers in various locations in eastern Nebraska. An anonymous caller contacted authorities and suggested Travis McQueen might be involved. Investigators following up on the lead were able to determine that Mr. McQueen had been involved in disposing of the materials by throwing them into the Missouri river. Excavating equipment was brought in by the Bureau of Alcohol, Tobacco and Firearms and investigators were able to locate some of the materials. Investigators believe the bulk of the stolen materials were, in fact, thrown into the river.
The investigation of this matter was conducted by the Bureau of Alcohol, Tobacco and Firearms.
Ohio Woman sentenced for role in drug and money laundering conspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that, Brenna Sue Hauenstein of Columbus, Ohio, was sentenced in federal court in Juneau for her role in a drug and money-laundering conspiracy.
Hauenstein, 31, was sentenced by United States District Court Judge Timothy M. Burgess to 24 months in prison and 3 years of supervised release.
According to information presented to the court by Assistant U.S. Attorney Jack S. Schmidt, the defendant was a member of a large scale drug conspiracy operation where oxycodone was delivered to Juneau, Alaska, from sources located in Sacramento, California, through commercial package delivery services and drug couriers flying on commercial flights. Oxycodone was delivered to other members of the conspiracy in Juneau for subsequent distribution and drug proceeds were sent back to other co-conspirators located in Sacramento, California, via bank deposits, wire remittance services, or drug couriers. Hauenstein had lived in Juneau, Alaska, between January 2010 and June 2010, during which time she distributed oxycodone and laundered drug proceeds through local banks with the intent to conceal and disguise the nature, location, source, ownership, and control of the drug proceeds.
Prior to imposing sentence, Judge Burgess indicated the extreme seriousness of the offense and the substantial need to deter the defendant and others from engaging in such criminal behavior.
Ms. Loeffler commended the Drug Enforcement Agency (DEA), Internal Revenue Service Criminal Investigations, Port of Seattle Police Department, and the Juneau Police Department-Drug Metro Unit for the investigation leading to the successful prosecution of the above listed defendants.
Mount Olive Inmate Pleads Guilty to Mailing Threatening CommunicationsRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Mt. Olive Correctional Complex inmate pleaded guilty in federal court for mailing threatening communications. Joseph Michael Pettaway, 38, admitted that beginning around 2000 and continuing until 2012, he wrote several letters that contained threats to harm a former acquaintance.
Specifically, Pettaway admitted that on approximately October 6, 2011, he mailed a letter to his former acquaintance. The defendant was incarcerated Mt. Olive Correctional Complex at the time the letter was mailed. Pettaway admitted that the letter contained descriptions of violent acts that he intended to commit, including beating and raping his former acquaintance, following his release from prison. The letter was mailed from Mount Olive Correctional Complex and delivered to the individual’s Huntington residence.
Pettaway admitted that along with the letter was an attached violation report containing information about an incident at the prison. The violation report provided details of an incident in which the defendant was reprimanded for throwing boiling water onto another inmate. The inmate suffered second degree burns as a result of the incident.
Pettaway faces up to five years in prison and a $250,000 fine when he is sentenced on May 1, 2013 by United States District Judge John T. Copenhaver, Jr.
The FBI conducted the investigation. Assistant United States Attorney Blaire Malkin is in charge of the prosecution.
Monett Man Sentenced for Obscenity; Possessed Cartoons of Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Monett, Mo., man was sentenced in federal court today for possessing cartoons that depicted child pornography.
Christjan Bee, 36, of Monett, was sentenced by U.S. District Judge Dean Whipple to three years in federal prison without parole, followed by five years of supervised release.
On Oct. 15, 2012, Bee pleaded guilty to possessing an obscene image of the sexual abuse of children. The pornographic cartoon, which depicted children engaging in sexual behavior, is categorized as obscene and therefore illegal. The original indictment, which charged Bee with receiving child pornography, was dismissed today as part of the plea agreement.
On Aug. 8, 2011, Bee’s wife contacted the Monett Police Department and reported that she had found files she believed to be child pornography on a computer used by her husband. Police officers executed a search warrant at Bee’s residence and seized his computer.
During the forensic examination of Bee’s computer, a collection of electronic comics, entitled “incest comics,” were discovered on the computer. These comics contained multiple images of minors engaging in graphic sexual intercourse with adults and other minors. The depictions clearly lack any literary, artistic, political or scientific value.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Monett, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Michigan Man Pleads Guilty to Tax ChargesRead the Press Release
Steven Kern of Marine City, Mich., pleaded guilty today before U.S. District Court Judge Arthur J. Tarnow in the Eastern District of Michigan to eight counts of filing false corporate tax returns and eight counts of failing to file his individual tax returns, the Justice Department and Internal Revenue Service (IRS) announced today.
According to filed court documents and court proceedings, Kern operated the Kern Chiropractic Center from Marine City and diverted cash and check payments from the business for his own personal use. The indictment alleges that Kern failed to file individual tax returns for tax years 2003 to 2010, despite earning more $1.2 million in gross income during that time period. According to filed court documents and court proceedings, Kern told IRS-Criminal Investigation Special Agents he believed signing and filing a completed tax return was a violation of his constitutional rights.
Each count of filing a false corporate tax return carries a maximum penalty of three years in prison and a $250,000 fine. Each count of failing to file an individual tax return carries a maximum penalty of twelve months imprisonment and a fine of up to $100,000. Kern is scheduled to be sentenced on April 30, 2013.
The case is being prosecuted by Trial Attorneys Mark McDonald and Jeff Bender of the Justice Department’s Tax Division. The investigation was conducted by IRS Criminal Investigation.
Miami-Area Therapist Sentenced to Prison in Florida in $205 Million Community Mental Health Fraud SchemeRead the Press Release
Miami-area resident Nichole Eckert, former therapist at the mental health care company American Therapeutic Corporation (ATC), was sentenced today to serve 48 months in prison for participating in a $205 million Medicare fraud scheme.
The sentence was announced today by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent-in-Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher Dennis of the Health and Human Services’ Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Eckert, 35, was sentenced by U.S. District Judge Patricia A. Seitz in the Southern District of Florida. In addition to the prison term, Judge Seitz sentenced Eckert to serve three years of supervised release and ordered her to pay more than $72 million in restitution, jointly and severally with her co-defendants.On Nov. 15, 2012, a federal jury in the Southern District of Florida found Eckert guilty of one count of conspiracy to commit health care fraud after a 16-day trial. She has been in federal custody since her conviction.
Evidence at trial demonstrated that the defendant and her co-conspirators caused the submission of false and fraudulent claims to Medicare through ATC, a Florida corporation headquartered in Miami that operated purported partial hospitalization programs (PHPs) in seven different locations throughout South Florida and Orlando. A PHP is a form of intensive treatment for severe mental illness. The defendant and her co-conspirators also used a related company, American Sleep Institute, to submit fraudulent Medicare claims.Evidence at trial revealed that ATC secured patients by paying kickbacks to assisted living facility owners and halfway house owners who would then steer patients to ATC. These patients attended ATC, where they were ineligible for the treatment ATC billed to Medicare and where they did not receive the treatment that was billed to Medicare. After Medicare paid the claims, some of the co-conspirators then laundered the Medicare money in order to create cash to pay the patient kickbacks.
Eckert was a therapist at ATC’s Ft. Lauderdale, Fla., center from September 2005 to September 2007, and returned to ATC as a therapist from late 2009 to October 2010, when ATC closed its doors as a result of federal charges. Evidence at trial revealed that Eckert fabricated therapist notes and other documents for patient files and submissions, and taught others to fabricate them, to make it appear both that ATC patients were qualified for PHP treatment and that they were receiving the intensive, individualized treatment PHP is supposed to be. ATC used those patient files to substantiate false and fraudulent claims to Medicare. Included in these submissions were claims for patients who were in the late stages of diseases causing permanent cognitive memory loss and patients who had substance abuse issues and were living in halfway houses. These patients were ineligible for PHP treatments, and because they were forced by their assisted living facility owners and halfway house owners to attend ATC, they were not receiving treatment for the diseases they actually had.
ATC and related company Medlink pleaded guilty in May 2011 to conspiracy to commit health care fraud. ATC also pleaded guilty to conspiracy to defraud the United States and to pay and receive illegal health care kickbacks. On Sept. 16, 2011, the two corporations were sentenced to five years of probation per count and ordered to pay restitution of $87 million. Both corporations have been defunct since their owners were arrested in October 2010. Dozens of individuals have been convicted at trial or pleaded guilty for their participation in the scheme.
Evidence at trial showed that the ATC scheme resulted in a total of $205 million in fraudulent Medicare billings.
The cases were prosecuted by Senior Trial Attorney Jennifer L. Saulino and Trial Attorney Laura M.K. Cordova of the Justice Department Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Mexican National Sentenced to 14 Years for Distributing Meth in the Magic ValleyRead the Press Release
POCATELLO – Jose Tapia-Lopez, 29, a Mexican national formerly living in Heyburn, Idaho, was sentenced today in United States District Court to 168 months in prison for possession with intent to distribute 50 grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Tapia-Lopez to serve five years of supervised release. He pleaded guilty to the charge on November 5, 2012.
According to the plea agreement, on April 11, 2012, Tapia-Lopez arranged to distribute a half pound of methamphetamine to an individual in Twin Falls, Idaho. While en route to the meeting, law enforcement officers attempted to stop Tapia-Lopez’s vehicle. Tapia-Lopez tried to elude the officers, during which he threw methamphetamine from the car’s window. The officers recovered the substance. Forensic analysis later determined the substance contained in excess of fifty grams of actual methamphetamine.
On November 5, 2012, Tapia-Lopez’s co-defendant, Eulalio Loya, 56, of Rupert, Idaho, pleaded guilty to possession with intent to distribute 50 grams or more of actual methamphetamine. According to the plea agreement, on February 16, 2012, Loya arranged to distribute a quarter pound of methamphetamine in Fort Hall, Idaho, and subsequently met and sold the individual in excess of 50 grams of actual methamphetamine. Loya is scheduled to be sentenced on February 11, 2013, at the federal courthouse in Pocatello. He faces a minimum sentence of ten years up to life in prison, a maximum fine of $10 million, and at least five years of supervised release.
The case was investigated by the Drug Enforcement Administration and the Idaho State Police, with assistance by the Minidoka County Sheriff’s Office and Cassia County Sheriff’s Office.
Mexican Man Sentenced to 12+ Years for Drug Trafficking in WichitaRead the Press Release
WICHITA, KAN. – A Mexican citizen has been sentenced to 151 months in federal prison for his role in a drug trafficking organization that distributed heroin, cocaine and methamphetamine in Wichita, U.S. Attorney Barry Grissom said today.
Juan Arellano Padilla, 36, Kansas City, Kan., pleaded guilty to one count of conspiracy to distribute heroin, one count of conspiracy to distribute methamphetamine, one count of conspiracy to distribute cocaine and one count of distributing methamphetamine.
Beginning in late 2009, the Wichita Police Department began conducting an investigation into suspected drug trafficking involving a number of persons, some of who had ties to Mexico. During the investigation:
– Oklahoma City Police stopped a van in Norman, Okla., and seized 137.5 pounds of marijuana bound for Wichita.
– Investigators obtained wiretaps to monitor traffickers’ phones.
– Investigators monitored global positioning devices on specified cell phones.
– Investigators arranged to buy drugs from conspirators.In his plea, Padilla admitted that in 2010 he was part of the trafficking organization and conspired with others to distribute drugs.
Co-defendants include:
Carlos Ramirez, who was sentenced to 96 months in federal prison.
Alejandro R. Hernandez, who was sentenced to 87 months in federal prison.
Ponciano Munoz-Meraz, who was sentenced to 70 months.
Guillermo Amparan, who was sentenced to 24 months in federal prison.Grissom commended the Wichita Police Department, the Oklahoma City Police Department, the Drug Enforcement Administration and Assistant U.S. Attorney Debra Barnett for their work on the case.
Meridian Man Pleads Guilty to Gun CrimeRead the Press Release
BOISE – Douglas Todd Campbell, Jr., 33, of Meridian, Idaho, pleaded guilty today in United States District Court to possession of a firearm and ammunition by a prohibited person, U.S. Attorney Wendy J. Olson announced.
According to court documents and Campbell’s admission in court, on January 10, 2012, Campbell, then being an unlawful user of a controlled substance, knowingly possessed a Springfield .45 firearm and five rounds of .45 ammunition.
The charge of possession of a firearm and ammunition by a prohibited person is punishable by up to ten years in prison, a maximum fine of $250,000, and at least three years of supervised release.
Sentencing is set for April 22, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Man Pleads Guilty to Inmate Tax Fraud SchemeRead the Press Release
PANAMA CITY, FLORIDA – Michael William Joseph, III, 53, formerly an inmate at Apalachee Correctional Institution in Sneads, has entered a plea of guilty before United States District Judge Richard Smaok to forty-one (41) counts of the indictment returned against him in July of last year. The guilty plea was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Joseph pled guilty to conspiracy to defraud the government with respect to claims, conspiracy to commit mail fraud, twenty-four counts of filing false claims against the government and fifteen counts of theft from the government. As a part of his plea, Joseph admitted to conspiring to file false claims for refunds against the government in the names of inmates incarcerated in Florida Department of Corrections from February 7, 2008 through July 10, 2012. The majority of the false refunds issued as a result of the scheme were directed to a bank account under the control of Michael Joseph or were sent in checks to the residence of Joseph’s mother to be later cashed.
Joseph is scheduled for sentencing before Judge Smoak on March 20, 2013 and faces the following maximum prison sentences: ten years in prison for Count One; five years in prison on each count for Counts Two through Twenty-eight; twenty years in prison for Count Twenty-nine, and ten years in prison on each violation alleged in Counts Thirty through Forty-six.
This prosecution resulted from the collaborative investigative efforts of IRS Criminal Investigation, the U.S. Postal Inspection Service, the Florida Department of Law Enforcement, the State Attorney’s Office for the 14th Judicial Circuit of Florida, and the Florida Department of Corrections. The case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.Man from Liberal Sentenced to 18 Months for Tax EvasionRead the Press Release
WICHITA, KAN. – A man from Liberal, Kan., has been sentenced to 18 months in federal prison for tax evasion, U.S. Attorney Barry Grissom said today. In addition, he was ordered to $188,097 in restitution and fined $20,000.
Sule Braimah, 52, Liberal, Kan., pleaded guilty to one count of tax evasion. In his plea, he admitted that in April 2008 he filed a joint tax return falsely reporting that in 2007 he and his wife had a taxable income of $631,166. In fact, he failed to report another $185,229 in income.
Grissom commended IRS Criminal Investigation and Assistant U.S. Attorney Alan Metzger for their work on the case.
Magic Valley Man Pleads Guilty to Bankruptcy FraudRead the Press Release
BOISE – Christopher Brandon Craner, 32, of Buhl, Idaho, pleaded guilty today in United States District Court to one count of bankruptcy fraud-asset concealment, U.S. Attorney Wendy J. Olson announced. Craner was indicted by a federal grand jury on May 8, 2012.
According to the plea agreement, on March 24, 2009, Craner filed for Chapter 11 bankruptcy. Simultaneously with the bankruptcy petition, Craner filed a schedule of assets. According to the plea agreement, Craner admitted that between March 24 and May 4, 2009, he knowingly and fraudulently concealed from creditors and the bankruptcy trustee, his interest in a “Ranger Boat Certificate,” which had been awarded to him on March 14, 2009.
Bankruptcy fraud is punishable by up to five years in prison, a maximum fine of $250,000, and at least three years of supervised release.
Sentencing is set for April 22, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by United States Trustee’s Office.
Louisiana Man Pleads Guilty to Mail Fraud in Connection with Sovereign Citizen Lien Scheme; Sentenced to 30 Months in Federal PrisonRead the Press Release
SALT LAKE CITY – Robert Clifton Tanner, age 45, of Mansura, Louisiana, pleaded guilty to mail fraud Thursday afternoon in U.S. District Court in connection with a scheme to use the mail to assert false claims of indebtedness totalling billions of dollars against judges and others. U.S. District Judge David Sam imposed a 30-month sentence following the guilty plea.
Tanner and Maria Melody Fuentes Cecil Mobo, age 42, of Spanish Fork, Utah, were indicted in August on four counts of mail fraud. The charges alleged they filed or attempted to file liens and claims against judges, attorneys, and others in Utah by mailing documents and filing fictitious judgments and liens that were intended to create an appearance of indebtedness for the judges, attorneys, and others.
As a part of his plea agreement, Tanner admitted that on April 23, 2012, he used the U.S. Postal Service to send a fraudulent document to Utah County as a part of his fraud scheme. The indictment identified the title of the document as a “Petition for Agreement and Harmony in the Nature of a Notice of International Commercial Claim Administrative Remedy.” He admitted that the mailed documents were designed to support false and fraudulent claims which were filed with the Utah County Clerk’s Office.
Federal prosecutors said other state and federal jurisdictions in Louisiana and Utah had agreed to forego additional charges against Tanner as a part of the plea agreement and 30-month sentence.
Mobo faces a Feb. 25, 2013, trial date on four counts of mail fraud.
Local Attorney Pleads Gulty to Federal Fraud ChagesRead the Press Release
St. Louis, MO - Stephen B. Evans pled guilty to mail and wire fraud charges involving his failure to pay clients and expenses, and instead keeping client insurance money for himself.
According to court documents, between 2007 and 2012, Evans was a local attorney with a general practice, including the representation of people who were injured or had claims based on contract or negligence where he would enter into a contingent fee arrangement. Mr. Evans would receive a certain percentage of any successful settlement. When he prevailed on behalf of his clients, the insurance company would typically mail a check to Evans at his law firm address, Evans Partnership in St. Louis, payable to Evans and his client, which was deposited into Evans' bank account. On many occasions, he kept funds payable to his client and his client's expenses. The amount of money that Evans defrauded his clients is between $70,000 and $120,000.
STEPHEN B. EVANS, St. Louis County, pled guilty to one felony count each of mail and wire fraud before United States District Judge Jean C. Hamilton. Sentencing has been set for April 26, 2013.
Each count carries a maximum penalty of 20 years in prison and/or fines up to $250,000. 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.
Larry Eugene Green, 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 25, 2013, before Chief U.S. District Judge Richard F. Cebull, LARRY EUGENE GREEN, JR., a 26-year-old resident of Billings, appeared for sentencing. GREEN was sentenced to a term of:
Prison: 150 months
Special Assessment: $300
Restitution: $13,419.82
Supervised Release: 5 years
GREEN was sentenced in connection with his guilty plea to assault on a federal officer, conspiracy to possess methamphetamine with intent to distribute and distribute, and carrying a firearm in furtherance of a drug trafficking offense.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On June 5, 2012, members of the United States Marshals Montana Violent Offenders Task Force were in the process of executing an arrest of GREEN with a valid arrest warrant, when GREEN was seen driving a silver Chevrolet Malibu. GREEN attempted to run away as members of the Task Force attempted to box in his car to execute the arrest. GREEN accelerated his car and struck a Deputy United States Marshal's government vehicle, a black Dodge Charger, in the area around the driver's side door, while a Deputy United States Marshal was operating the vehicle. GREEN struck the vehicle in an attempt to inflict harm to stop his apprehension by law enforcement.
GREEN exited the vehicle on foot and members of the Task Force engaged in a foot pursuit. GREEN was apprehended following the foot pursuit and arrested. A firearm was recovered in the floorboard area of GREEN's vehicle on the driver's side. Approximately eleven (11) grams of suspected methamphetamine was recovered on GREEN's person.
A search warrant for GREEN's vehicle was applied for and executed by law enforcement. The search yielded approximately 370 grams of suspected cocaine, approximately 156 grams of suspected methamphetamine, and approximately 5 grams of suspected marijuana, and 19 suspected ecstasy tablets. The suspected methamphetamine and suspected cocaine tested positive for the listed compounds using a presumptive field test. A second firearm was also located in the vehicle.
Following the assault on the Deputy U.S. Marshal and the search of GREEN's car, law enforcement discovered that GREEN was part of a larger methamphetamine distribution organization in Yellowstone County. The investigation uncovered that from January 2010 to June 2012, GREEN conspired with others to receive and distribute over 500 grams of a mixture containing a detectable amount of methamphetamine in Yellowstone County.
Additionally, law enforcement learned that during the course of his involvement in the methamphetamine conspiracy GREEN carried a firearm for personal protection and the protection of his drugs, specifically a Phoenix Arms, .22 cal. semi-automatic.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that GREEN will likely serve all of the time imposed by the court. In the federal system, GREEN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the United States Marshals Montana Violent Offenders Task Force and the Billings Big Sky Safe Streets Task Force.
Kanawha County Man Pleads Guilty to Illegal Firearm PossessionRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Kanawha County man pleaded guilty in federal court to illegal possession of a firearm. Scott Allen Perry, 42, of South Charleston, Kanawha County, W.Va., was charged in a one-count indictment in October 2012. Perry admitted that on July 2, 2012, he possessed a shotgun that contained a barrel of less than 18 inches and an overall length less than 26 inches that was not registered to him in the National Firearms Registration and Transfer Record.
Perry faces up to 10 years in prison and a $250,000 fine when he is sentenced on April 25, 2013 by United States District Judge John T. Copenhaver, Jr.
The investigation was conducted by the South Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
This case is also being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Justice Department Sues to Permanently Enjoin Florida Tax Return PreparerRead the Press Release
The Justice Department filed suit today asking the U.S. District Court for the Middle District of Florida to permanently bar Torrey Burden from preparing federal tax returns for others. The civil injunction suit alleges that Burden prepares returns through A&L Financial Solutions in St. Petersburg, Fla.
According to the complaint, Burden prepares tax returns using false information in order to reduce his customers’ tax liabilities. Specifically, the government alleges that Burden claims false or overstated deductions and claims tax credits that his customers were not eligible to claim. The Internal Revenue Service (IRS) has examined 80 returns prepared by Burden and found that 92.5 percent resulted in additional taxes owed. As alleged in the complaint, the IRS projects that the tax loss from the returns prepared by Burden could exceed $1,000,000.
Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Torrey Burden, et al.
Complaint (PDF)
Justice Department Signs Agreement with the City of Memphis, Tenn., to Ensure Physical Accessibility for People with Disabilities at Liberty Bowl Memorial StadiumRead the Press Release
The Justice Department has reached an agreement with the city of Memphis, Tenn., under the Americans with Disabilities Act (ADA) to improve physical accessibility for people with disabilities at Liberty Bowl Memorial Stadium, home of the AutoZone Liberty Bowl, Memphis Tigers and Southern Heritage Classic football games.
“Today’s agreement marks a new chapter for historic Liberty Bowl Memorial Stadium, which will permit all spectators, with and without disabilities, to attend college football games – both regular season and bowl games -- at the stadium,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.
Under the settlement agreement, Memphis will install a total of 282 wheelchair spaces and an equal number of companion seats around the stadium at Row 25, and in the upper concourses on the home and away sides of the Liberty Bowl. The agreement requires installation of additional wheelchair spaces in seating areas renovated in the future, such as the suites and press boxes. The 282 wheelchair spaces will be dispersed vertically and horizontally throughout the Liberty Bowl, and will provide people in wheelchairs with lines of sight over standing spectators that are comparable to those offered to individuals without disabilities.
In addition, Memphis will ensure ADA compliance for concession stands, gates, elevators, suites and press boxes, ramps, and restrooms throughout the Liberty Bowl. Memphis will retain an architect to certify that the city has corrected each ADA violation. Memphis must report its progress to the United States.
Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The Department will actively monitor the city’s compliance with the agreement, which will remain in effect for three years.
More information about the Civil Rights Division and the laws it enforces is available at the website www.justice.gov/crt . More information about the ADA and today’s agreement with the City of Memphis can be accessed at the ADA website at www.ada.gov or by calling the toll-free ADA information line at 800-514-0301 or 800-514-0383 (TTY).
Related Materials:
Liberty Bowl Settlement Agreement
Jonesboro Man Indicted for Wire Fraud and Lying on Workers Compensation FormsRead the Press Release
SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that Curtis Roller, 56, of Jonesboro, was indicted Thursday by a federal grand jury for 11 counts of wire fraud after obtaining Federal Emergency Management Agency grants and four counts of making false statements on workers compensation forms.
According to the indictment, from Jan. 1, 2002 to Dec. 31, 2010, Roller submitted false information on grant applications he sent to FEMA so Louisiana and Arkansas fire departments he wrote grants for were eligible to receive the funds. Roller is accused of inflating population data, agency coverage areas and numbers of responded calls on the FEMA grant applications. He also is accused of overstating the type of calls responded to, under-reporting the size of budgets and increasing the scope of their needs on the
applications.It is further alleged in the indictment that Roller asked those awarded the FEMA grants to purchase equipment from his two companies, Louisiana Firefighters Services and a vehicle manufacturing company in Smyrna, Ga. It is against FEMA rules and policies for a grant writer to financially benefit from money awarded.
Also as part of the indictment, Roller was accused of not reporting income on his workers compensation form when he filed for benefits from Oct. 29, 2007 to March 28, 2008. At the time, he was employed at the U.S. Postal Service when he filed his claim. He did not report that he was receiving income from his job as a fire chief of the Ward 4 Fire Protection District in the Jonesboro area. He also received income as owner of his fire services and vehicle manufacturing companies.
If convicted, Roller faces a maximum penalty of 20 years in prison, a $250,000 fine, or both on each count of wire fraud and a maximum penalty of five years in prison, a $250,000 fine or both for each count of false statements.
Roller will appear for arraignment in U.S. District Court in Monroe at a date and time to be scheduled by the Court.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The U.S. Department of Homeland Security, U.S. Postal Service/Office of Inspector General, and the U.S. Department of Labor/Office of Inspector General conducted the investigation. Assistant U.S. Attorney Earl Campbell is prosecuting the case.
Johnson County Man Sentenced on Bank Fraud ChargesRead the Press Release
KANSAS CITY, KAN. – A Johnson County man has been sentenced to 15 months in federal prison on bank fraud charges, U.S. Attorney Barry Grissom said today. In addition, he was ordered to pay a $5,000 fine.
Kevin M. Mahoney, 44, Stilwell, Kan., pleaded guilty to one count of conspiracy to commit wire fraud. In his plea, he admitted he conspired with co-defendant Paul Hartfield and others to make false representations to lenders in order to fraudulently obtain funds from mortgage lenders.
Hartfield owned two businesses: Hart Investments, Inc., and Diamond Mortgage, both in Overland Park, Kan. Kevin Mahoney was a loan officer for Diamond Mortgage.
Hart Investments purchased depressed properties in order to rehabilitate them and sell them at a profit. Hart Investments obtained loans to rehabilitate homes on a “subject to appraisal” basis that allowed the company to withdraw money as rehabilitation progressed. Starting in October 2006, Hartfield stopped rehabilitating houses. Instead, Hartfield, Mahoney and others made false representations to lenders in order to fraudulently obtain loan funds.
Mahoney made false statements on loan applications and submitted them to mortgage lenders to fraudulently obtain loan funds for the following properties: 11339 Sycamore Terrace, Kansas City, Mo.; 3401 Tauromee Avenue, Kansas, City, Kan; 48 Z Lake Shore Drive, Lake Lotawana, Mo.; 58 T Lake Shore Drive, Lake Lotawana, Mo.; 4132 Charlotte Street, Kansas City, Mo.; and 3921 Wyoming Street, Kansas City, Mo.
Co-defendants included:
Paul Hartfield, who was sentenced to 78 months in federal prison and ordered to pay $2.6 million restitution.
Brian D. Jaimes, who was sentenced to 24 months.
John T. Bradfield, who was sentenced to 15 months.Grissom commended the FBI, the Internal Revenue Service, the FDIC- Office of Inspector General, Assistant U.S. Attorney Jabari Wamble and Assistant U.S. Attorney David Smith for their work on the case.
Jacksonville Man Indicted for Operating A Fraudulent Investment SchemeRead the Press Release
Jacksonville, Florida - U.S. Attorney Robert E. O'Neill announces today the arrest and unsealing of a federal indictment charging Anderson Scott Hall (48, Jacksonville)with ten counts of mail fraud and ten counts of wire fraud in connection with his operation of a fraudulent investment scheme. If convicted, Hall faces a maximum penalty of 20 years in federal prison for each count of mail and wire fraud, and fines of up to $5 million. His initial appearance is scheduled today at 2:30 p.m. in Jacksonville before U.S. Magistrate Judge Thomas Morris.
According to the indictment, while working for a national investment services company, Hall operated a sham company (Abaco Securities International, Ltd.), which he held out to be a legitimate international investment company. It is alleged that Hall was the mastermind behind a complex scheme to defraud numerous investors, including Duval County school teachers and administrators. Hall would allegedly induce victim investors into transferring their retirement savings from legitimate life insurance companies and investment companies over to his control. It is further alleged that instead of investing victim investors' funds as promised, Hall would use the funds for his own personal use, including purchasing high value luxury items, and commercial and residential real estate. On occasion, as part of the fraud scheme, Hall would use money taken from new investors to pay earlier investors. In total, Hall allegedly defrauded investors of more than $4 million.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the State of Florida's Department of Financial Services and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant United States Attorney Mark Devereaux.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 25, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
WAYLON RONALD BURNS, a 35-year-old resident of Lame Deer, appeared on charges of aggravated sexual abuse and attempted aggravated sexual abuse. He is currently detained. If convicted of these charges, BURNS faces possible penalties of life in prison, a $250,000 fine, and 5 years supervised release. Assistant U.S. Attorney Lori H. Suek is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
WALTER MITCHELL STEWART, JR., a 57-year-old transient, appeared on charges of abusive sexual contact, failure to register as a sexual offender with enhancements, and penalties for registered sexual offenders. He is currently detained. If convicted of these charges, STEWART faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to 30 years, a $250,000 fine, and 5 years supervised release. Assistant U.S. Attorney Marcia K. Hurd is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the United States Marshals Service.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Hope Mills Man Sentenced for Drug & Weapons OffensesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today DEVON LAMAR MARION, 33, of Hope Mills, North Carolina was sentenced by Chief United States District Judge James C. Dever to 168 months imprisonment.
On August 22, 2012, MARION pled guilty to possession with intent to distribute more than twenty-eight (28) grams of cocaine base (crack), a quantity of powder cocaine and a quantity of marijuana in violation of Title 21, United States Code, Section 841(a)(1); one count of possession of a firearm in furtherance of a drug trafficking offense in violation of Title 18, United States Code, Section 924(c)(1)(A); and one count of possession of a firearm and ammunition by a felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
According to the investigation, MARION was a cocaine dealer in the Cumberland County, North Carolina area. As a result of a search warrant executed at his home, MARION was foundto have drugs, a gun, and ammunition in Hope Mills, North Carolina.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Cumberland County Sheriff’s Office, and the Fayetteville Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Hampton Man Pleads Guilty to Robbery and Firearm ChargesRead the Press Release
NEWPORT NEWS, Va. – Christian Johnson, 24, of Hampton, pled guilty today to robbery, as well as possessing and brandishing a firearm in furtherance of a crime of violence. Johnson was set to begin trial today in Norfolk Federal Court.
Neil H. MacBride, U. S. Attorney for the Eastern District of Virginia; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; and James D. Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the plea was accepted by United States District Judge Henry C. Morgan.
Johnson was charged in a superseding indictment returned on September 20, 2012, with three counts of robbery and two counts of possessing and brandishing a firearm in furtherance of a crime of violence. Johnson faces a maximum penalty of 20 years in prison on the robbery charge and a mandatory total consecutive sentence of 32 years on the firearm counts when he is sentenced on May 1, 2013 in Norfolk.
In a statement of facts filed with his plea agreement, Johnson admitted to robbing Approved Cash Advance located in Norfolk, on June 21, 2012, and a 7-Eleven store on Kecoughtan Road in Hampton on July 3, 2012. During both robberies he possessed and brandished a firearm. Following the 7-Eleven robbery, Johnson was seen entering a vehicle dressed in a black hooded sweatshirt, t-shirt and jeans, and wearing a black ski mask and gloves. A witness followed Johnson’s vehicle and reported it to police. A high speed chase ensued when Johnson failed to yield to law enforcement. Johnson drove across the James River Bridge and began throwing items out of the car on the bridge. The chase ended 30 minutes later when Johnson struck a median, lost control and crashed into several trees. He then fled the scene on foot and was apprehended by the Virginia State Police.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the Norfolk Police Department, Hampton Police Division, Chesapeake Police Department, and the Virginia State Police. Trial Attorneys Louis Crisostomo of the Organized Crime and Gang Section, and Teresa Wallbaum of the Human Rights and Special Prosecutions Section, both in the Justice Department’s Criminal Division, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.HPD Officers Arrested for Conspiring to Protect CocaineRead the Press Release
HOUSTON – Houston Police Officers Emerson Canizales, 26, of Kingwood, and Michael Miceli, 26, of Humble, have been arrested following the return of an indictment charging conspiracy to violate the Hobbs Act and conspiracy to possess a controlled substance, United States Attorney Kenneth Magidson announced today.
Canizales and Miceli were arrested yesterday afternoon as they reported for duty. They are expected to appear in federal court this morning at 10:00 a.m. before U.S. Magistrate Judge Mary Milloy.
The two-count indictment, returned on Jan. 23, 2013, and unsealed upon their arrest, alleges the officers conspired in the possession of cocaine with intent to distribute in the Houston area and that they accepted money for the protection service.
Both officers are alleged to have conspired in the possession of cocaine on or about Dec. 26, 2012, and allegedly received a payment of $1000 for the protection they provided.
If convicted of possession with the intent to distribute, each faces no less than 10 years and up to life in prison as well as a possible $10 million fine. For extortion under color of law (Hobbs Act violation), they could also receive up to 20 years imprisonment and a $250,000 fine, if convicted.
The operation was an effort conducted by Houston Police Department - Internal Affairs, Drug Enforcement Administration and the High Intensity Drug Trafficking Area Program - Major Drug Squad. The case is being prosecuted by Assistant United States Attorney James McAlister.
Gang Member Sentenced for Assault in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. – A member of a Dodge City street gang targeted in a federal racketeering case has been sentenced to 46 months in federal prison for assaulting what he thought were members of a rival gang, U.S. Attorney Barry Grissom said today.
Humberto Ortiz, 20, Dodge City, Kan., pleaded guilty to one count of assault with a dangerous weapon in aid of racketeering. In his plea, Ortiz admitted that on Aug. 27, 2011 in Dodge City, he and other gang members assaulted what they thought were members of the Sureno street gang. At the time, Ortiz was a member of Los Carnales Chingones, a street gang in Dodge City associated with the Norteno street gang. He was accompanied by members of the Diablos Viejos, who also were associated with the Norteno gang.
During a confrontation at a party at 703 9th Avenue in Dodge City, Ortiz and four associates accused the victims of being Surenos, which the victims denied. When a fight began, two victims were stabbed. One of the victims received life-threatening injuries and was flown to a hospital in Wichita for treatment.
In his plea, Ortiz admitted that while he was an associate of the Nortenos the gang was engaged in a continuing criminal enterprise that employed acts of violence including murder and robbery to protect and expand the gang’s operations.
Co-defendants awaiting trial include Jason Najera, 28, Dodge City; Fabian Neave, 25, Dodge City; Jesus Torres, 28, Dodge City; and Jose Neave, 23, Dodge City. They were among 23 defendants indicted in May who were charged under the federal RICO Act (Racketeering Influenced and Corrupt Organizations Act.) The indictment marked only the second time federal prosecutors in Kansas have filed charges under RICO and VICAR (Violent Crimes in Aid of Racketeering).
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant U.S. Attorney Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.