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11 March 2013
Georgia Man Pleads Guilty to Sex Trafficking Multiple Teen Girls and Running A Child Exploitation EnterpriseRead the Press Release
ALEXANDRIA, Va. – Edwin Barcus Jr., aka “Boo,” 27, of Georgia, pleaded guilty to running a commercial sex business that prostituted at least seven juvenile girls in Herndon, Va., and other locations throughout Virginia, Maryland, North and South Carolina, Georgia, and Florida.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Virginia Attorney General Kenneth Cuccinelli, II; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Lt. Colonel James A. Morris, Acting Fairfax County Chief of Police, made the announcement after the plea was accepted by United States District Judge Gerald Bruce Lee.
Barcus pleaded guilty to engaging in a child exploitation enterprise and faces a mandatory minimum of 20 years and a maximum of life in prison when he is sentenced on June 7, 2013.
“Edwin Barcus made his living exploiting vulnerable young girls and luring them into prostitution,” said U.S. Attorney MacBride. “Barcus saw these girls as his property – even making them get tattoos with his nickname. Thanks to the FBI, Fairfax County Police Department and the members of our Northern Virginia Human Trafficking Task Force, his operation is shut down and can no longer victimize these girls.”
“Recruiting, exploiting and transporting juveniles for the purpose of underage prostitution is a cruel form of modern-day slavery,” said Assistant Director in Charge Parlave. “Prostitution is not a victimless crime. The FBI is committed to apprehending individuals who sexually exploit juveniles, and we will continue to work to identify these predators and their victims.”
According to a statement of facts filed with his plea agreement, since August 2007, Barcus has led and organized a commercial sex organization that has prostituted at least 23 women, including at least four of whom were 16 years old and at least three were 17 years old when Barcus began prostituting them. He targeted juveniles who had run away from home or lived in a broken home, sometimes making them believe that he or other members of the organization were romantically interested in them. Barcus also stated that he purchased clothing and shoes for girls he wanted to recruit as a means of luring them into the venture.
Barcus admitted that he used Backpage.com and other erotic internet sites to advertise the girls’ services and to recruit girls to work for his organization. When the girls found it difficult to repeatedly have sex with strange men, Barcus and others provided them with alcohol and narcotics to make them more vulnerable and susceptible to prostitution.
Barcus and other conspirators carried and, when necessary, brandished firearms while engaging in prostitution-related activities, and Barcus battered at least three of the females working for his commercial sex enterprise. At times, Barcus had the women and girls he prostituted tattooed with his nickname: “Boo.”
In November 2012, Barcus was prostituting at least one juvenile in Herndon, Va., while another member of his organization was prostituting other females in Atlanta, Ga. Because the venture was yielding substantial profits in Herndon, Barcus instructed the conspirator to bring two 17-year-old girls to Herndon. When one of the girls objected, she was told that “under the rules of the game” she had to go to Virginia. Barcus admitted that each girl servicing clients in Herndon could obtain $500 or more per day. All of the money was turned over to Barcus or other members of the enterprise.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department, with assistance from the Northern Virginia Human Trafficking Task Force. Assistant United States Attorney Michael J. Frank and Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum are prosecuting the case on behalf of the United States.
Founded in 2004, the Northern Virginia Human Trafficking Task Force is a collaboration of federal, state, and local law enforcement agencies – along with nongovernmental organizations – dedicated to combating human trafficking and related crimes.
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.Four Sentenced in Connection with El Paso Area Drug Distribution SchemeRead the Press Release
In El Paso, four individuals have been sentenced for their roles in a cocaine distribution ring that operated in El Paso and southern New Mexico announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, El Paso Division and Pecos Valley (NM) Drug Task Force Commander Carroll A. Caudill, II.
This afternoon, U.S. District Judge David C. Guaderrama sentenced 53–year-old Edward Villa of Carlsbad, NM, to six years in federal prison followed by four years of supervised release. Judge Guaderrama also ordered that Villa pay a $1,000 fine. Last month, Judge Guaderrama sentenced Villa’s codefendants--56-year-old Tony S. Garcia of Las Cruces, NM, and 50–year-old David Lopez of Malaga, NM–to 90 months and 37 months in federal prison, respectively. Tony Garcia’s nephew and fourth defendant in this case, 27-year-old of Gabriel M. Garcia of Las Cruces, NM, received five years probation after pleading guilty to one count of misprision of felony in connection with the scheme.
In October, Villa, Lopez and Tony Garcia all pleaded guilty to conspiracy to possess with intent to distribute cocaine. By pleading guilty, the defendants admitted that in May 2012, Tony Garcia together with Gabriel Garcia transported approximately two kilograms of cocaine from El Paso to Villa and Lopez in Carlsbad, NM. According to court documents, during the exchange, Villa paid $24,000 to Tony Garcia for the cocaine. Subsequently, traffic stops were conducted on both Garcia and Villa’s vehicles where authorities seized the cocaine and cash.
In a related matter, 35-year-old Cirilio Cortez of Carlsbad, NM, was sentenced in January to 121 months in federal prison followed by eight years of supervised release and ordered to pay a $5,000 fine for his role in the cocaine distribution scheme. In addition, U.S. District Judge David Briones ordered that Cortez pay a $117,000 monetary judgment to the Government. On April 27, 2012, Cortez pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine. By pleading guilty, Cortez admitted that he distributed over 50 kilograms of cocaine in the southern part of New Mexico.
“The Pecos Valley Drug Task Force is extremely proud of the working relationship that we have with the United States Attorney’s Office and the Drug Enforcement Administration. This partnership has insured another successful prosecution of those individuals who believe that they are above the law and chose to sell drugs in our community. We will continue to work with United States Attorney’s Office and Drug Enforcement Administration to keep our children and our community safe and these predators off the street,” stated Commander Carroll A. Caudill, II, Pecos Valley Drug Task Force.
The case was investigated by DEA agents together with the Pecos Valley Drug Task Force in Carlsbad, New Mexico. Assistant United States Attorney Daniel Crumby prosecuted this case on behalf of the Government.
Four Plead Guilty in Fraudulent Prisoner Income Tax Refund SchemeRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Pamela C. Marsh announced today that four individuals pled guilty before Chief U. S. District Judge M. Casey Rodgers to their involvement in a fraudulent prisoner income tax refund scheme. The indictment of Cora Beard (68) of Morriston, William Scott Folk (36) and Christopher Jesse Lee (36) both currently incarcerated with the Florida Department of Corrections, and Gail Anita Moss (60) of Miami Gardens was returned by a federal grand jury on January 15, 2013. Count One charged all four defendants with conspiracy to defraud the government with respect to claims, and Count Two charged all four defendants with conspiracy to commit mail fraud. Cora Beard and Gail Anita Moss were also charged with seven counts of filing false claims against the government and seven counts of theft from the government. The indictment also charged Beard with one count of aggravated identity theft, and Moss with two counts of aggravated identity theft.
In today’s hearing, Beard pled guilty to Counts One through Nine, Seventeen through Twenty-Three and Thirty Two; Moss pled guilty to Counts One, Two, Eleven through Sixteen, Twenty-Five through Thirty and Thirty-One through Thirty-Three; and Lee and Folk each pled guilty to Counts One and Two. All four defendants are scheduled to be sentenced on May 20, 2013, by Chief Judge Rodgers. The individuals were charged in a multi-year scheme in which they and others used the names and social security numbers of inmates incarcerated in the Florida Department of Corrections, and on occasion, other individuals who were not incarcerated, to file fraudulent tax returns. As part of this scheme, Cora Beard and Gail Anita Moss used their home addresses as well as the home addresses of previously indicted co-conspirators, Mary Blair, Thomas Rabeau, Nikki Kight, Elton Blair and others, so IRS refund checks would be mailed to them. The other co-conspirators were indicted in January 2012, and all pled guilty to their involvement in the fraudulent income tax scheme.During the course of the scheme charged in the indictment, the defendants and others filed and caused to be filed approximately 344 false and fraudulent federal income tax returns, which falsely claimed approximately $1,656,721 in false, fictitious, and fraudulent refunds from the United States. A copy of the indictment is attached.
At sentencing, each defendant faces a maximum of ten years in prison for Counts One and Two. For the counts of filing false claims against the government, Cora Beard and Gail Anita Moss face up to five years in prison on each of their counts. For the counts of theft from the government, Cora Beard and Gail Anita Moss face up to ten years in prison on each of their counts. For the counts of aggravated identity theft, Cora Beard and Gail Anita Moss face a minimum mandatory sentence of two years imprisonment on each count, which must be run consecutively to any other sentence imposed.
The case was prosecuted by Assistant U.S. Attorney Tiffany Eggers as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters. The investigation is the result of an investigation by the Internal Revenue Service – Criminal Investigations.
Fort Worth Man Remanded into Custody Following His Guilty Plea in Child Pornography CaseRead the Press Release
FORT WORTH, Texas — Richard D. Anderson, 59, of Fort Worth, Texas, pleaded guilty on Friday, before U.S. District Judge John McBryde, to an indictment charging one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Anderson faces a maximum statutory penalty of up to 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge McBryde set a June 21, 2013, sentencing date and remanded Anderson into custody.
According to documents filed in the case, in September 2012, officers with the Fort Worth Police Department’s Internet Crimes Against Children (ICAC) Unit executed a search warrant at Anderson’s home and seized computers and removable storage media. A forensic exam revealed images and videos of child pornography. Anderson admitted that he had downloaded images of child pornography from the Internet using newsgroups and that he’d moved images from his computer to his flash drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by the Fort Worth Police Department’s ICAC and prosecuted by Assistant U.S. Attorney Aisha Saleem.
Former Salina Shop Owner Who Sold Marijuana-Like Drug Sentenced to A Year on Federal ProbationRead the Press Release
WICHITA, KAN. – A former coffee shop owner from Salina, Kan., has been sentenced to a year on federal probation for selling a misbranded product known as Aromatic Potpourri that contained a substance mimicking the active ingredient in marijuana, U.S. Attorney Barry Grissom said today.
Erick Srack, 44, Salina, Kan., pleaded guilty to one count of introducing a misbranded drug into interstate commerce. In his plea, he admitted that while he owned The Grind, a coffee shop in Salina, he sold Aromatic Potpourri, which contained synthetic chemicals generally known as "JWH compounds" that mimicked the effects of THC, the active ingredient in marijuana.
Aromatic Potpourri was intended to be used as a recreational drug that would be smoked. Srack sold the Aromatic Potpourri in zip lock plastic bags with a paper label. The label did not list JWH Compounds among the ingredients.
The U.S. Food and Drug Administration is the federal agency charged with enforcing federal health and safety laws pertaining to drugs sold for human use. The federal Food, Drug and Cosmetic Act requires that drugs be labeled so that a layperson can administer the drug safely for the purposes for which it is intended. The FDA considers street drug alternatives like Aromatic Potpourri to be unapproved new drugs and misbranded drugs that violate the FDCA.
Srack is serving a sentence in state prison in Kansas after being convicted in state district court of selling illegal drugs.
Grissom commended the FDA and Assistant U.S. Attorney Tanya Treadway for their work on the case.
Former Detroit Mayor Kwame Kilpatrick, His Father Bernard Kilpatrick and City Contractor Bobby Ferguson Were Convicted on Racketeering, Extortion, Bribery, Fraud and Tax ChargesRead the Press Release
Today a federal jury returned guilty verdicts against Kwame M. Kilpatrick, 42, of Southlake, Texas and Bobby W. Ferguson, 44, of Detroit, on charges that they used Kwame Kilpatrick’s positions as Mayor of Detroit and Michigan State House Representative to execute a wide ranging racketeering conspiracy involving extortion, bribery and fraud, United States Attorney Barbara L. McQuade announced. Bernard Kilpatrick, 70, of Detroit was convicted of a felony tax offense.
McQuade was joined in the announcement by Robert D. Foley, III, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation, Randall Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency, Special Agent in Charge Erick Martinez, IRS Criminal Investigation and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development - Office of Inspector General.
Kwame Kilpatrick was convicted of 24 counts extortion, mail fraud, tax violations and racketeering, Bobby Ferguson was convicted of 9 counts of extortion and racketeering and Bernard Kilpatrick was convicted of one count of filing a false tax return.
Co-defendants Victor Mercado, former Director of the City of Detroit Water and Sewerage Department and Derrick Miller, former Chief Administrative Officer of the City of Detroit were also indicted as being part of the conspiracy and both pleaded guilty to their roles and are waiting sentencing.
The jury deliberated for about 14 days before returning the verdicts, concluding a five-month long trial before United States District Judge Nancy G. Edmunds.
United States Attorney Barbara L. McQuade stated, "Although this investigation spanned many years, this case is not about the past. It is about the future. This verdict has sent a powerful message that corruption will not be tolerated in this community. The people of Detroit deserve better and expect better. Candidates should seek public office to make a difference, not to make money for themselves."
FBI Special Agent in Charge Foley stated, "The FBI Led Detroit Area Public Corruption Task Force worked tirelessly to pursue and prosecute individuals associated with a criminal enterprise run for years out of the Detroit Mayor's Office. Due to the scope and complexity of the investigation, it was imperative to make sure no corners were cut and no stone was left unturned. With this conviction, the public can be reassured that no corrupt activity will be left unchecked. No violation of the public's trust will go unpunished. The citizens of the state of Michigan and in this case the City of Detroit, deserve and expect the highest quality of government, and we remain dedicated to ensuring they receive it."
"Corruption at any level diminishes the hard work and dedication of the thousands of elected officials and government employees who are dedicated to providing honest services to the American public”, said Richard Weber, Chief of IRS Criminal Investigation. "IRS-CI stands committed to weed out individuals who ignore the public's well being, and choose to take the path to financial success by using greed and corruption. Mr. Kilpatrick attempted to conceal his public corruption by failing to report to the Internal Revenue Service his illicit receipt of hundreds of thousands of dollars. When elected officials disregard their sworn oath because greed has clouded their judgment, let this case serve as a reminder that no one is above the law and everyone is accountable for their misdeeds."
"The U.S. EPA mandated the improvement of the Detroit Water & Sewerage Department to address long term non compliance with the city's discharge permit," said Randall K. Ashe, Special Agent in Charge of EPA's criminal enforcement program in Michigan. "Sadly, former Mayor Kwame Kilpatrick used the awarding of these contracts as an opportunity to enrich himself and Bobby Ferguson. EPA CID is very grateful to the jury for rendering this verdict and hope that this sends a clear message to all municipal officials that this conduct will not be tolerated."
HUD Special Agent in Charge Barry McLaughlin stated, “The citizens of Detroit should not have to tolerate those who use deceit and fraud to fill their pockets with money reserved to improve this community. This case will serve notice that the United States Attorney Office and HUD - Office of Inspector General will make every effort to ensure that these funds are used for this community, and will vigorously investigate those that work scams at the expense of Detroiters”.
The evidence presented at trial established that Kwame Kilpatrick and Bobby Ferguson participated in a racketeering conspiracy to financially enrich themselves, their associates and their families by using the power and authority of Kwame Kilpatrick’s position as Mayor of Detroit, as well as his position as a member of the Michigan House of Representatives, to commit extortion, bribery and fraud, as well as by defrauding donors to nonprofit entities under the control of Kwame Kilpatrick and his associates, including the Kilpatrick Civic Fund, Kilpatrick for Mayor, and the Kilpatrick Inaugural Committee.Extortion of Municipal Contractors. At the heart of the conspiracy was a scheme to use the power and authority of Kwame Kilpatrick’s office as Mayor of Detroit to extort municipal contractors by coercing them to include Ferguson in public contracts, and to rig the award of public contracts to ensure Ferguson obtained a portion of the revenue from those contracts. Ferguson obtained at least eighty-three million dollars in revenues from municipal contracts through this scheme, a portion of which he shared with his co-conspirators. At trial, the government presented evidence regarding multiple instances of attempted or actual extortion and contract rigging, including the following:
• Kwame Kilpatrick held up a $50 million sewer lining contract until Inland Waters, the winning bidder, agreed to pay Ferguson, who ultimately received $24.7 million in contract revenue when the contract was increased to $138 million.
• Kwame Kilpatrick held up a $12 million amendment to a sewer lining contract until Inland Waters agreed to pay Ferguson $350,000 for work Ferguson wanted at a large sewer collapse at 15 Mile Road in Sterling Heights, although Ferguson did no work in exchange for the payments.• Ferguson extorted Lakeshore Engineering Services to give Ferguson $1.7 million from a $28 million sewer outfalls contract although Ferguson did no work for the payments.
• Ferguson extorted Walbridge Aldinger Company for $5 million in work for Ferguson on a contract to construct the Baby Creek combined sewer overflow facility and the Patton Park recreational facility.
Defrauding the State and Non-Profit Donors. Evidence showed that during Kwame Kilpatrick’s tenure as a Representative of the Michigan House and as the Mayor of Detroit, Kwame Kilpatrick, Bobby Ferguson, and Bernard Kilpatrick obtained over half a million dollars from the State of Michigan and donors to nonprofit entities they controlled, including the Kilpatrick Civic Fund, Kilpatrick for Mayor, and the Kilpatrick Inaugural Committee, under the false pretense that the money would be used to better the community or for campaign expenses when, in reality, the money was used for personal or other impermissible expenses. This included the following: • Kwame Kilpatrick, while a member of the State House of Representatives and with the assistance of Ferguson, defrauded the State of Michigan by directing over $280,000 in grant money from the State to nonprofit entities controlled by Ferguson and Kwame Kilpatrick’s wife. The State grant money, which was supposed to help children and seniors in the Detroit area, was spent in large part by Kilpatrick on personal expenses and by Ferguson to refurbish the offices of his company.• Kwame Kilpatrick defrauded donors to Kilpatrick for Mayor, the Kilpatrick Inaugural Committee and the Kilpatrick Civic Fund by taking cash kickbacks of over $250,000 from his fundraising director.
• Kwame Kilpatrick, defrauded donors to the Kilpatrick Civic Fund by using at least $200,000 in Civic Fund money for personal expenses, $200,000 for friends and family, and $150,000 in improper campaign expenses.
Bribery/Extortion Involving Other Public Contracts and Investments. Further evidence showed that during Kwame Kilpatrick’s tenure as Mayor, he and Bernard Kilpatrick solicited and accepted payments and property valued at over one million dollars from persons seeking business with the City or its General Retirement System or Police and Fire pension funds. Included in this bribery/extortion scheme were the following:
• Karl Kado paid Kwame Kilpatrick and Bernard Kilpatrick approximately a quarter-million dollars in cash for favorable treatment with respect to his contracts for cleaning and electrical services at Cobo Hall;
• Jon Rutherford provided money and campaign-related payments totaling over $300,000 on behalf of Kwame and Bernard Kilpatrick in return for Kwame Kilpatrick’s support of Rutherford’s waterfront casino development plan; • Tony Soave provided free private jet service and other benefits to Kwame and Bernard Kilpatrick worth over $300,000, so that he would not be harmed with respect to his business interests with the City; and
• Marc Andre Cunningham paid Bernard Kilpatrick a portion of his commission on a pension fund consulting deal from a venture capital firm (totaling at least $15,000) for Kwame Kilpatrick’s support of Cunningham’s firm getting the pension fund monies.
Proceeds from the Extortion/Bribery Conspiracy. Evidence was presented that in return for the proceeds from the public contracts Ferguson received, Ferguson kicked back significant sums of cash, items of value or other benefits to Kwame Kilpatrick. Further evidence was presented that during his tenure as Mayor, Kwame Kilpatrick used over $840,000 cash, derived from the extortion/bribery/fraud conspiracy, to make deposits into his bank accounts, pay his credit card bills, purchase cashier’s checks, and clothing, and to repay loans. During his son’s tenure as Mayor, Bernard Kilpatrick deposited over $840,000 in cash into his personal bank accounts.
As a result of the lengthy and wide-ranging investigation into corruption in the City of Detroit, the government has obtained convictions from thirty-two other individuals. Attached is a list detailing these convictions.
The investigation of this case was conducted by agents of the FBI, EPA-CID and IRS-CID. The case is being prosecuted by Assistant U.S. Attorneys Mark Chutkow, R. Michael Bullotta, Jennifer Blackwell and Eric Doeh.
Finland, Minnesota, Men Sentenced for Violating the Endangered Species ActRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 32-year-old from the northern Minnesota community of Finland was sentenced for violating the Endangered Species Act. United States District Court Judge Ann D. Montgomery sentenced Kyler James Jensen to time served on two counts of violating the Endangered Species Act. Jensen was indicted on July 16, 2012, and pleaded guilty on November 13, 2012.
On March 7, 2013, Judge Montgomery sentenced Vernon Lee Hoff, age 55, also of Finland, to one month in prison and a $2,500 fine on one count of violating the Endangered Species Act and one count of false statements to a federal officer, a felony. He was convicted by a jury in Duluth on November 16, 2012. As a result of his felony convictions, Hoff will no longer be able to possess firearms and may be ineligible for federal contracts.
Following today’s sentencing, Gregory Jackson, Special Agent in Charge for the Midwest Region of the U.S. Fish and Wildlife Service (“USFWS”) Office of Law Enforcement, said, “We are pleased with the outcome, and want to thank the conservation offices from the Minnesota Department of Natural Resources for their partnership and continued commitment to working together in an effort to fight wildlife crime in Minnesota.”The evidence presented at trial proved that Hoff lied to a USFWS official when asked whether he spoke on the telephone with Jensen about transporting two wolf carcasses that Jensen purposely killed with his vehicle on February 17, 2010. In fact, Hoff denied that any call had taken place. After the call, Jensen loaded the two gray wolves into his vehicle, traveled to Superior National Forest, and buried them with the use of a bulldozer, as instructed by Hoff. At the time, the gray wolf was listed as a threatened species under the Endangered Species Act. It was removed from that list in Minnesota in January of 2012.
This case was the result of an investigation by the USFWS and the Minnesota Department of Natural Resources. It was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.Court Bars Florida Tax Return Preparer from Preparing Returns for OthersRead the Press Release
A federal district judge in Jacksonville, Fla., permanently barred Thomas G. Bandzul from preparing federal income tax returns for others, the Justice Department announced today.
According to the government complaint, Bandzul repeatedly prepared federal tax returns that unlawfully understated customers’ federal tax liabilities. The suit alleged that the defendant concocted bogus losses, expenses, education credits, business expenses, and charitable contributions, which he falsely reported on his customers’ federal income tax returns.
The suit alleged that the Internal Revenue Service has examined over 250 tax returns prepared by Bandzul and found that over 90 percent of tax returns understated the taxpayer’s liability. According to the complaint, the total harm to the U.S. Treasury caused by Bandzul’s misconduct could exceed $17 million.
In addition, Bandzul allegedly filed returns that claimed a refund larger than what Bandzul had disclosed to the taxpayer. Once the refund was paid, the suit alleged, Bandzul retained the additional amount without the taxpayer’s knowledge.
Bandzul consented to the entry of the injunction.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website .
Cooper City Resident Sentenced for Tax Refund FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), announced today’s sentencing of defendant David Forbes, 43, of Cooper City, Florida, on charges of theft of government monies resulting from his participation in a stolen identity tax refund scheme. At today’s hearing, U.S. District Judge Kenneth A. Marra sentenced Forbes to 48 months in prison. In addition, Forbes was sentenced to three years of supervised release and was ordered to pay restitution in the amount of $372,342.41.
Forbes had previously pled guilty to the theft of government funds in connection with an identity theft tax refund scheme in which the defendant converted more than $1,574,791.83 in tax refunds and had those amounts deposited into his personal and corporate bank accounts. These tax refund payments had been obtained through the filing of false tax returns using stolen personal identification information of unwitting victims. During the investigation and prosecution, defendant Forbes consented to the government’s seizure of $888,399.08. In addition, other bank accounts were identified and an additional $313,550.00 was frozen and returned to the government.
Mr. Ferrer commended the investigative efforts of the IRS-CID and Secret Service. The case is being prosecuted by Assistant U.S. Attorney Laurie Rucoba.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Coleman County, Texas, Man, Is Sentenced to 18 Months in Federal Prison and Ordered to Pay Nearly $300,000 in Restitution for Shooting at Crop DusterRead the Press Release
LUBBOCK, Texas — James R. Cate, 69, was sentenced late Friday afternoon, by U.S. District Judge Sam R. Cummings, to 18 months in federal prison and ordered to pay a total of $297,179 in restitution, following his guilty plea in November 2012 to a superseding information charging the federal felony offense of making a threat to an aircraft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Cummings ordered that Cate, who resides near Talpa, Texas, surrender to the Bureau of Prisons on April 12, 2013.
According to documents filed in the case, on February 29, 2012, Cate, using a Ruger Number One, 25-06 caliber single shot rifle with a Redfield scope, shot a crop duster plane. At the time Cate shot the aircraft, it was flying over a field neighboring Cate’s land near Talpa, dusting crops. Before he actually shot the aircraft, Cate fired three rounds from the rifle into the air. Cate admits that he threatened the aircraft to frighten the pilot away from his crops.
The last round that Cate fired hit the propeller of the aircraft, penetrated the engine cowling traveling toward the rear of the plane, passed through the firewall and the spray hopper (which contained nearly 500 gallons of chemical used for the crop spraying), entered the cockpit where it fragmented into multiple pieces (at least one of which tore through the leg of the jeans the pilot was wearing), then into the rear fuselage, all of which caused damage to the aircraft.
The investigation was conducted by the FBI and the Federal Aviation Administration. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Career Criminal Sentenced to 14 ½ Years in Federal Prison for Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. –Rolando A. Rojas, 34, of Providence, was sentenced today to 175 months in federal prison for trafficking crack cocaine. Rojas, a career criminal who was previously convicted on drug trafficking, firearms, felony assault and robbery charges, was convicted by a federal court jury on July 18, 2012, with selling crack cocaine on three occasions to an undercover federal agent.
At sentencing, U.S. District Court Judge John J. McConnell also ordered Rojas to serve eight years of supervised release upon completion of his prison term. Rojas’ sentenced was announced by United States Attorney Peter F. Neronha and Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Boston Field Office.
At trial, the government presented evidence that Rojas sold an undercover ATF agent nearly 28 grams of crack cocaine on January 10, 2011; two ounces of crack cocaine on February 17, 2011; and approximately four ounces of crack cocaine on March 1, 2011. All of the transactions were electronically recorded. The jury convicted Rojas on one count of distribution of cocaine base and two counts of distribution of 28 grams or more of cocaine base.
Rojas is awaiting trial in state court on a charge of murder in connection with the October 2010 alleged murder of Alfredo Barros, 20, of Pawtucket. Barros was allegedly shot and killed while he sat in a vehicle stopped at a red light.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
Providence, Central Falls and Pawtucket Police assisted ATF in the investigation of this matter.
Contact: 401-709-5357
[email protected]Blue Springs Man Pleads Guilty to Producing Child Porn; Faces at Least 15 Years in PrisonRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man pleaded guilty in federal court today to producing child pornography and related charges.
Christopher R. Lockhart, 30, of Blue Springs, pleaded guilty before U.S. District Judge Beth Phillips to producing child pornography, attempting to distribute child pornography and possessing child pornography. Lockhart has been in federal custody since his arrest.
By pleading guilty today, Lockhart admitted that he used a minor – identified in the indictment as John Doe – to produce child pornography. Lockhart also admitted that he attempted to distribute an image of child pornography over the Internet on April 20, 2012, and that he was in possession of child pornography on May 30, 2012.
According to court documents, a detective with the Clay County Sheriff’s Department identified Lockhart’s computer during an undercover investigation of a peer-to-peer file-sharing network as containing child pornography. The detective downloaded 346 files from Lockhart’s computer, of which 161 files matched known suspected child pornography.
Law enforcement officers executed a search warrant at Lockhart’s residence on May 30, 2012, and seized numerous computers, including laptops, flash drives and other media. Some of them contained video files and images of child pornography, including a video produced by Lockhart of an adult man engaged in sex with the child victim, who is believed to be three years old at the time.
Under federal statutes, Lockhart is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 60 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Western Missouri Cyber Crimes Task Force and the Blue Springs, 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."Baltimore Police Officer Pleads Guilty to Drug Dealing and Gun Charge Uncovered by Federal WiretapRead the Press Release
Treacherous Officer Protected Drug Dealer, Filed False Police Reports, Planned Armed Robbery and Sold Stolen PropertyBaltimore, Maryland - Baltimore Police officer Kendell Richburg, age 36, of Baltimore, pleaded guilty today to conspiracy to distribute heroin and possession of a firearm in furtherance of drug trafficking.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“Kendell Richburg’s treacherous conduct harms all police officers,” said U.S. Attorney Rod J. Rosenstein. “He helped a drug dealer avoid arrest while planning an armed robbery and filing false police reports about other suspects.”
“Kendell Richburg's unacceptable criminal actions are an affront to the law enforcement profession and the hard working men and women of the Baltimore Police Department,” said Baltimore Police Commissioner Anthony W. Batts. “Today's plea agreement is a victory for the citizens of Baltimore and a representation of this agency's unwavering commitment to accountability and the delivery of justice.”
According to his plea agreement, from June 2011 through October 2012, Richburg, who was assigned to the Violent Crimes Impact Section in the Northwestern District of the Baltimore Police Department, conspired with a street level drug trafficker to distribute heroin. Richburg’s co-conspirator was a registered confidential informant with the Baltimore Police Department. The co-conspirator sold drugs in the Pimlico area of Northwest Baltimore. Richburg provided information to the co-conspirator that permitted him to sell drugs without interference from law enforcement, telling the co-conspirator on a near daily basis when it was “safe” to go out to sell drugs. In return, the co-conspirator provided Richburg with information about his drug customers so that Richburg could arrest them. Richburg paid his co-conspirator, with official Baltimore Police Department funds for providing the information that resulted in the arrest of the drug customers. Richburg sometimes gave the co-conspirator back some of the drugs seized from the drug purchasers so that the co-conspirator could re-sell the drugs. Richburg falsified the arrest documents to eliminate the co-conspirator’s involvement, often falsely stating that Richburg had witnessed a drug transaction.
In early 2012, the FBI received information that Richburg was trafficking in stolen property, including iPhones, iPads and other electronics, and obtained a wiretap of Richburg’s cellphone. Intercepted conversations confirmed that Richburg was trafficking in stolen property and led to the discovery of Richburg’s drug trafficking.
Richburg and the co-conspirator were also overheard discussing the “planting” of evidence, and arranging an armed robbery. For example, on September 2, 2012, Richburg and the co-conspirator discussed having the co-conspirator plant a gun in an unlicensed cab, then having Richburg pull over and arrest the cab driver on a gun violation and pay the co-conspirator $350 to $400. On October 9, 2012, Richburg, armed with his service weapon, searched a person, without probable cause, and located a large amount of cash. The victim told Richburg that he had just received his paycheck. Richburg contacted his co-conspirator and arranged for the co-conspirator, whom Richburg knew was armed, to rob the victim, identifying where the victim was located.
Richburg faces a minimum mandatory sentence of five years in prison and a maximum of 40 years in prison for the drug conspiracy, and a minimum mandatory sentence of five years in prison, consecutive to any other sentence, and a maximum of life in prison for use of a firearm in relation to a drug trafficking crime. U.S. District Judge Richard D. Bennett scheduled sentencing for June 11, 2013, at 3:00 p.m. Richburg remains detained.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Peter M. Nothstein, who are prosecuting the case.
Baltimore Immigration Judge Participates in Naturalization CeremonyRead the Press Release
BALTIMORE --Immigration Judge John F. Gossart, Jr. from the Executive Office for Immigration Review, Baltimore Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 75 candidates during a naturalization ceremony at the George H. Fallon Federal Building in Baltimore, Md., on March 8, 2013. The Baltimore District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General William French Smith appointed Judge Gossart in October 1982. Judge Gossart received a bachelor of science degree in 1967 from the University of Maryland and a juris doctorate in 1974 from the University of Baltimore School of Law. From 1975 through 1982, he served in various positions at the former Immigration and Naturalization Service, including general attorney, trial attorney, and deputy assistant commissioner for naturalization. Since 1997, Judge Gossart has served as an adjunct professor of immigration law at the University of Baltimore School of Law; has been a faculty member at the National Judicial College; and has guest lectured at numerous law schools and for the Maryland Institute for Continuing Professional Education of Lawyers. From 1967 to 1969, he served in the U.S. Army. Judge Gossart is a member of the Maryland State and District of Columbia Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration Review8 Men Indicted for Conspiring to Distribute More Than 1,000 Kilograms of MarijuanaRead the Press Release
MINNEAPOLIS—A federal indictment unsealed last week charges eight men for conspiring to distribute more than 1,000 kilograms of marijuana in Minnesota. The indictment, which was filed on March 5, 2013, charges Irineo Serio Moreno, age 34, of Minneapolis; Ryan Timothy Solon, age 34, of Eden Prairie; Christopher David Schumacher, age 35, of Bloomington; Shawn Andrew Withrow, age 38, of Shakopee; Jeremy Allen Anderson, age 38, of Circle Pines; Corey William Johns, age 27, of Mounds View; Arthur Eugene Johns, age 29, of New Brighton; and Matthew Ryan Waste, age 27, of Carnelian Bay, California; with one count of conspiracy to distribute marijuana. The indictment was unsealed on March 8, 2013, following the defendants’ initial appearance in federal court.
The indictment alleges that from January 2009 through December 20, 2012, the defendants conspired with each other and others to distribute 1,000 or more kilograms of marijuana.
If convicted, the defendants face a potential maximum penalty of life in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the United States Drug Enforcement Administration, the West Metro Drug Task Force, the West Hennepin Public Safety Department, the Medina Police Department, the Orono Police Department, the Mound Police Department, the Hennepin County Sheriff’s Office, and the Southwest Hennepin Drug Task Force. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.
During the investigation, authorities have seized numerous items including pickup trucks, jet skis, trailers, vehicles, motorcycles, and more than $200,000 in cash. The U.S. is seeking forfeiture of all of these items.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.
12 Southeast Texas Residents Arrested on Federal Racketeering ChargesRead the Press Release
Department of Justice
Office of Public AffairsFour defendants face capital murder charges
BEAUMONT, Texas – Twelve Southeast Texas residents have been indicted and arrested in connection with a “white’s only” racketeering enterprise that engaged in methamphetamine distribution and murder in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
The four-count superseding indictment was returned by a federal grand jury on Mar. 7, 2013. Seven of the charged defendants were already in custody and the remaining five were arrested on Mar. 8, 2013. The indictment, which was unsealed today in the Eastern District of Texas, names Kenny Don Stanley, 25, of Vidor, Texas; Tanner Lynn Bourque, a/k/a “Two Shoes,” a/k/a “Hitman,” 33, of Port Arthur, Texas; Kristopher Leigh Guidry, a/k/a “Hollywood,” 28, of Vidor; Vicki Stark-Fitts, 49, of Hull, Texas; Craig Pipps, a/k/a “Lone Wolf,” 40, of Vidor; Erica Nicole Parrott, 27, of Vidor; Ricky Allen Nichols, 54, of Vidor; Michael Taylor Word, 45, of Silsbee, Texas; Juanette Marie Cunningham, a/k/a “Netty,” 46, of Vidor; Mikell Allen Cunningham, a/k/a “Mikey,” 28, of Vidor; Cassi Diane Hetzel, 37, of Silsbee; and Mack Langston Warner, 33, of Silsbee. The indictment alleges that six of the defendants, Stanley, Bourque, Guidry, Stark-Fitts, Pipps, and Mikell Cunningham, participated in the operation and management of the SWS gang. The defendants are scheduled to make initial appearances before U.S. Magistrate Judge Zack Hawthorn today.
According to the indictment, SWS is a race-based organization operating inside and outside of jails and prisons, primarily in Texas. SWS was founded during the 1990s by inmates within the Texas Department of Criminal Justice. SWS, which was founded as the “Stupid Woods,” is also known as “Solid Wood Soldiers” and “Separate White State.” SWS protects its power, territory, and profits through intimidation and violence, including assaults, robbery, and murder. SWS has a chain of command of president, vice-president, council, major, captain, lieutenant, sergeant, and soldier. SWS members, prospects, and associates refer to the gang as the "wolf pack," “pack,” or "family." The indictment states that SWS has a written constitution and bylaws that outline the duties, responsibilities, and requirements associated with membership. Prospective members, called “prospects,” must be “white” and sponsored by another SWS member. Prospects must serve a probationary period during which their conduct is observed by SWS members. During this period, prospects study and learn the SWS constitution and by-laws and may be required to “work” for the enterprise. “Work” means illegal activity. Prospects are considered part of the SWS family and are therefore subject to the rules and orders of the enterprise, including violent beatings known as “disciplines.” SWS leaders determine if and when a prospect is eligible for initiation into membership. SWS initiation requires a “blood in, blood out” commitment. That is, prospects are subject to a violent beating in order to become a “member.” Members or prospects that leave SWS are likewise subject to a violent beating.According to the indictment, SWS members, prospects, and associates are required to further SWS goals through criminal activity. Members and prospects are therefore required to commit that they will follow without question any order of SWS leadership. In particular, members and prospects are required, when ordered, to perform violent acts without hesitation. Maintaining power and avoiding loss of stature motivates SWS members, prospects, and associates to commit violent acts against individuals and groups believed to be disrespectful or detrimental to SWS.
The indictment charges four of the defendants, Stanley, Bourque, Guidry, and Stark-Fitts with murder in aid of racketeering. According to the indictment, on Mar. 14, 2011, the four used a firearm to murder James Lee Sedtal, a/k/a “Lil Bit,” in Liberty County, Texas. The indictment alleges that the four murdered Sedtal on behalf of SWS, after Sedtal assaulted Word, an Aryan Brotherhood of Texas (ABT) associate. The indictment states that ABT was poised to retaliate against SWS, and Bourque, Guidry, Stanley, and Stark-Fitts sought to maintain and increase their position within SWS by murdering Sedtal. If convicted of murder as charged, the defendants each face either life imprisonment or the death penalty. The indictment charges all of the defendants with conspiring to distribute methamphetamine between Sep. 2010 and Mar. 2011. If convicted of the conspiracy charge, the defendants each face from 10 years to life in federal prison.
This case is being prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The case is being investigated by the ATF, U.S. Marshals Service, U.S. Secret Service, DEA, FBI, U.S. Bureau of Prisons, Texas Rangers, Department of Public Safety CID, Texas Department of Criminal Justice OIG, Orange County Sheriff’s Office, Hardin County Sheriff’s Office, Jasper County Sheriff’s Office, Tyler County Sheriff’s Office, Jefferson County Sheriff’s Office, the Beaumont Police Department, and the Silsbee Police Department and is being prosecuted by Assistant U.S. Attorney John B. Ross.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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9 March 2013
Council Bluffs Man Sentenced on Firearm ChargesRead the Press Release
COUNCIL BLUFFS, IA – On March 8, 2013, Ronald Wayne Reed, II, age 27, of Council Bluffs, Iowa, was sentenced in United States District Court in Council Bluffs on the charge of felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Reed to 46 months imprisonment, to be followed by a 2 years term of supervised release. The Court also ordered Reed to forfeit the firearm and ammunition which he had possessed, and to pay a $100.00 special assessment for the Crime Victim Fund. Reed remains in the custody of the United States Marshal pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence.
On December 5, 2012, Reed pled guilty to the charge of felon in possession of a firearm. The charge arose out of the purchase by an undercover officer with the SouthWest Iowa Narcotics Task Force, of a .357 caliber revolver and ammunition.
This investigation was conducted by the SouthWest Iowa Narcotics Task Force and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
8 March 2013
Wyoming Men Sentenced for Assault and Weapons PossessionRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on March 4, 2013, Casey James Nowlin, a 28 year old Eastern Shoshone tribal descendant, was sentenced for five violent assault charges, one involving assault resulting in serious bodily injury and four counts involving assaults with a dangerous weapon with intent to do bodily harm in connection with Nowlin coming up behind young people at an alcohol party on the Wind River Indian Reservation and hitting them in the head and other areas with a log in April of 2012. In one instance, the victim suffered permanent and life threatening injury. Nowlin was sentenced by Chief U.S. District Judge Nancy Freudenthal to 137 months imprisonment, three years of supervised release, and a $500.00 special assessment.
Nowlin’s 19 year old codefendant, Lorenzo Roman, an enrolled Northern Arapaho Tribal member, was sentenced on March 4, 2013 in connection with his role in one count of assault with a dangerous weapon with intent to do bodily harm in connection with his role in kicking a victim who had already been hit in the head by Nowlin with a log and was lying on the ground. Roman was sentenced to 30 months imprisonment, two years of supervised release, and a $100.00 special assessment.
Nowlin was ordered to pay $154,694.34 in restitution in connection with the most seriously injured victim, $2441.00 jointly and severally with Roman in connection with a second victim’s injuries, and $3731.00 in connection with a third victim’s injuries.
Roman was ordered to pay $2441.00 jointly and severally with Nowlin in connection with injuries to the victim of his crime.United States Attorney Christopher A. Crofts announced today that Leo Lone Bear III a.k.a. “Bronco”, an enrolled Northern Arapaho Tribal member, appeared in federal court on March 6, 2013, for a preliminary hearing and detention hearing. Mr. Lone Bear had been recently charged by criminal complaint with one count of abusive sexual contact, in violation of 18 U.S.C. § 2244(a)(5) and 1153, which carries a potential penalty of up to life imprisonment. At the March 6th hearings held in Lander, Wyoming, Mr. Lone Bear was represented by counsel, at which time he waived his preliminary hearing and was detained pending further proceedings. The allegations against Mr. Lone Bear will now be presented to the federal Grand Jury for their consideration. A criminal complaint is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
Jacob Scott Anderson, 24, of Wellington, Colorado, was sentenced by Federal District Court Judge Clarence A. Brimmer on March 1, 2013, for attempted bank robbery. Anderson self-surrendered. He received 40 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Federal Bureau of Investigation.
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on March 4, 2013, David M. Gehl, 26, a non-tribal member from Fort Washakie, was charged with possessing an unregistered illegal firearm, that is, a weapon made from a shotgun with a barrel less than 18 inches in length, in violation of Title 26, United States Code Sections 5841, 5845(a)(1) and (d), 5861(d), and 5871. These charges are punishable by up to 10 years imprisonment, a $10,000 fine or both. A criminal complaint is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
Women Plead Guilty in Conspiracy to Embezzle Crime Stoppers’ Cash RewardsRead the Press Release
One Defendant Worked as a Bank Teller
DALLAS — Two local women, Amelia Blair Lopez, of Lancaster, Texas, and Eva Barrientos, of Red Oak, Texas, both 26, appeared in federal court this week and admitted embezzling Crime Stoppers’ funds on deposit at JP Morgan Chase Bank, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Specifically, each woman, who remains on bond, pleaded guilty to one count of conspiracy to commit theft, embezzlement or misapplication by a bank employee and faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. Sentencings are set for this summer.
According to documents filed in the case, from February to April 2010, Lopez, a teller with JP Morgan Chase Bank, and Barrientos, embezzled approximately $18,750 of money entrusted to the care of JP Morgan Chase Bank by the North Texas Crime Commission.
Lopez provided Barrientos and Barrientos’s husband with confidential Crime Stoppers tip information, including tip numbers and code words necessary to collect the Crime Stoppers cash rewards. Barrientos, Barrientos’s husband and others would present the tip numbers and code words to Lopez, and other tellers at the bank, to collect the Crime Stoppers cash rewards. After Barrientos, Barrientos’s husband and others collected the cash rewards, they would divide the cash among the coconspirators.
The case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Errin Martin is in charge of the prosecution.
Woman Ordered to Pay Restitution for Filing False Day Care Services Claims to Federal ProgramRead the Press Release
LAKE CHARLES, La: United States Attorney Stephanie A. Finley announced that Annette Victorian, 44, of Lake Charles, was ordered Thursday by U.S. District Judge Patricia Minaldi to pay $71,660.70 in restitution, a $1,000 fine, serve five years probation, and complete 100 hours of community service, for defrauding the Louisiana Department of Children and Family Services.
Victorian is the owner/director of Annette’s Developmental and Learning Center located in Lake Charles, which receives payments for child care services through the Child Care Assistance Program (CCAP). Prior to being paid by CCAP for child care services she provided, Victorian was required to submit accurate provider invoices for each child. According to court documents, beginning in April 2007 and continuing through October 2009, Victorian submitted invoices which contained false and fraudulent information, inflating the number of children who received care and the hours the children were present. In some instances, Victorian claimed reimbursement for children who were no longer enrolled at her day care center.
“The money this defendant took should have been used to help those in need of day care services,” Finley said. “Instead, the money was siphoned out of the community and grant system for personal use. Our office will continue to aggressively prosecute those who defraud these programs.”
CCAP is funded by a U.S. Department of Health and Human Services’ grant and is administered by the Louisiana Department of Children and Family Services.
The Department of Health and Human Services and the Louisiana Department of Children and Family Services investigated the case. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Ruben Trevino, 35, of Weslaco, Texas, a defendant in the case US v Doty et al., pled guilty before District Judge Jon DeGuilio to the felony offense of conspiracy to distribute marijuana.Sentencing has been set for 6/13/13.These charges were filed as a result of an investigation by the Drug Enforcement Administration with assistance from the Laporte County Prosecutor’s office, the Laporte County Drug Unit, the Elkhart County ICE unit.This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Javon Thomas, 20, of South Bend, Indiana, was sentenced by District Judge Robert Miller, Jr. to 120 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of carrying a firearm which discharged during a drug trafficking crime and crime of violence.According to documents filed by the government in this case, Thomas was one of four armed men who broke into the home of a known drug dealer and the drug dealer’s girlfriend and four children. One of the men (not Mr. Thomas) shot the drug dealer. The four men stole drugs and money, split the money, and distributed the marijuana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Wesley King, 42, of Gary, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 5/22/13.These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Joshua Kolar.
Maria Guadalupe Sustaita, 50, of East Chicago, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of aggravated identity theft and obstruction of correspondence.Sentencing has been set for 4/16/13.These charges were filed as a result of an investigation by the United States Postal Service-Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Toi Houston.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Richard Jenkins, 39, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 33 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute crack cocaine.According to documents filed by the government in this case, law enforcement conducted multiple trash pulls at Jenkins’ residence after receiving a tip regarding drug dealing occurring at the residence. The pulls uncovered evidence indicative of drug packaging material, drug trafficking activity and drug sales taking place.A search warrant was executed on the residence where law enforcement recovered a knotted plastic bag containing 20 clear plastic bags, each containing crack cocaine, digital scales, a compact disc case containing two razor blades and a scale with white powder residue confirmed to be cocaine and marijuana.Jenkins admitted that he had been selling crack cocaine for months. This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Gregorio Valencia, 29, of Griffith, Indiana, was sentenced by Chief Judge Philip Simon to 121 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute five hundred grams of more of methamphetamine.According to documents filed by the government in this case, a confidential source made arrangement to meet with Valencia to receive a free sample of methamphetamine and to negotiate a future purchase of 5 kilograms of methamphetamine.After the agreement was made, Valencia met with the source to deliver the drugs.Agents moved in and arrested Valencia.The Agents recovered a black duffel bag from Valencia’s vehicle containing 5 kilograms of methamphetamine and another 1 kilogram from his residence during a subsequent search.This case was the result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Dante Christopher Vasquez, 44, of East Chicago, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 210 months imprisonment and 20 years of supervised release after pleading guilty to the felony offense of production of child pornography.According to documents filed by the government in this case, the Hammond Police started an investigation after receiving a complaint of an adult family member taking nude pictures of a juvenile.The responding officer interviewed the mother and her child about the complaint and learned that Vasquez was related to her and had frequently cared for her children and had used the mother’s camera to take nude pictures of the child.Law enforcement executed a search warrant at the Vasquez residence, locating multiple computers revealing images indicative of child pornography that included the child involved in the initial complaint.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney Jill Koster.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Fort Wayne, Indiana- The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Antonio Sewell, 31, of Fort Wayne, Indiana, a defendant in the case US v Buchanan et al., pled guilty before Magistrate Judge Roger Cosbey to the felony offense of conspiracy to distribute and possession with the intent to distribute crack cocaine.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Federal Bureau of Investigation/G-NET, the Indiana State Police, the Fort Wayne Police Department, the Allen County Police Department, the Allen County Drug Task Force and the New Haven Police Department.This case is being prosecuted by Assistant United States Attorneys Anthony Geller and Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Watertown Man Sentenced to 15 Years Pursuant to the Armed Career Criminal StatuteRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that SHAWN J. ADAMS (39, of Watertown, NY) was sentenced to today by United States District Court Judge Glenn T. Suddaby to 15 years imprisonment for being a three time convicted felon in possession of a firearm.
The charges stemmed from an incident on November 8, 2010, at approximately 1:00 a.m., when the Watertown Police Department received complaint involving a man with a gun that had entered the complainant’s residence through an open third floor window. Upon arrival at the third floor apartment, Watertown police officers located SHAWN J. ADAMS asleep on a couch along with a gun case near an open window. The officers then woke ADAMS and arrested him. Thereafter, ADAMS stated that the firearm in the gun case belonged to him and that the gun was a Remington. The officers then opened the gun case and located a Remington, SPR 453, 12 gauge, semi-automatic shotgun manufactured in Russia.
ADAMS had been previously convicted of crimes punishable by a term of imprisonment exceeding one year, that being: (1) a conviction in Saint Lawrence County Court on February 7, 1994, for the felony crime of Burglary in the Third Degree; (2) a conviction in Jefferson County Court, on October 26, 1998, for the felony crime of Attempted Burglary in the Third Degree; and (3) a conviction in Suffolk County Court on November 15, 2001, for the felony crime of Attempted Burglary in the Second Degree.
This prosecution resulted from an investigation conducted by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Syracuse Office, the Watertown Police Department, and the New York State Police Troop D Unit. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Two Men Sentenced to Prison Terms for Robbery of Seven Men in Northwest Washington-Early-Morning Attack Took Place in Courtyard-Read the Press Release
WASHINGTON – Torrell Page, 21, was sentenced today to five years in prison on charges stemming from a robbery in which he and a 17-year-old accomplice targeted seven men in a courtyard in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The co-defendant, Isaiah Harris, 17, was sentenced today to a two-year prison term, with all but six months of the time suspended on the condition that he successfully complete three years of supervised release. Harris also was ordered to perform 80 hours of community service.
Page pled guilty to robbery and Harris pled guilty to attempted robbery in December 2012 in the Superior Court of the District of Columbia. They were sentenced by the Honorable Florence Pan. Upon completion of his prison term, Page will be placed on three years of supervised release. He and Harris also must make restitution to the victims.
According to the government’s evidence, on Oct. 13, 2012, at about 12:35 a.m., Page and Harris staged their attack in a courtyard in the 900 block of Gallatin Street NW. They approached their first victim in the rear of the courtyard, grabbing him and throwing him to the ground. Page pointed what appeared to be a semi-automatic firearm at the victim’s chest. He then pointed it at six other men, who were standing in the courtyard. Page yelled, “Hands up or I’ll kill y’all.” Harris then went into each of the victims’ pockets and took their personal property, including wallets, debit cards, cellphones and other items.
Page and Harris fled the courtyard and the victims chased them through the neighborhood. Both defendants were stopped by the police and identified by each of the seven victims as the men who had robbed them of their property. The weapon, which had been spray painted and taped over to look like a semiautomatic firearm, turned out to be a paintball gun.
In announcing the sentences, U.S. Attorney Machen commended the work of the officers and others who investigated the case for the Metropolitan Police Department. He also praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Debra McPherson and Todd McClelland, and Intelligence Specialist Sharon Johnson. Finally, he thanked Assistant U.S. Attorney Phil Selden, of the Fourth District Unit of the Felony Major Crimes Section, who investigated and prosecuted the case.
13-090Two Maryland Men Sentenced for Wire Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – Two Maryland men have been sentenced for engaging in a scheme to steal nearly $16 million from Vienna-based Southern Management Corporation’s (SMC) employee pension plan.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
Robert Fulton Rood IV, 44, of Potomac, Md., was sentenced to 120 months in prison and Nikolaos M. Hepler, 31, of Gaithersburg, Md., was sentenced to 30 months in prison by U.S. District Judge Claude M. Hilton in Alexandria, VA. Both men pled guilty on Oct. 23, 2012.
Rood conceived and led a scheme to defraud Southern Management Corporation Retirement Trust (SMCRT), a pension plan established by SMC for its employees. As of Dec. 31, 2012, the plan’s assets were more than $30 million, and prior to April 2006 SMCRT generally managed its own investments, which included short-term, high-interest loans to real estate developers.
In April 2006, Rood persuaded SMC’s President and CEO to let Rood locate borrowers, negotiate loans to them, prepare the loan agreements, promissory notes and trust deeds and present loan application packages to the SMCRT loan committee, which would decide whether to purchase the proposed loans. If the committee decided to do so, it would wire the money to purchase the loan to a settlement company designated by Rood. Rood would use the money from SMCRT to fund the loan and would obtain from the borrower an executed loan agreement, promissory note and trust deed, which he would assign to SMCRT. In most cases, the borrowers were not aware of SMCRT’s involvement in the process.
Rood represented to both SMCRT and the borrowers that he would set up escrow accounts for the payment of interest to SMCRT and for construction payments to the borrowers. Instead, the moneys from all the loans were co-mingled into Rood’s principal bank account. When the project was finished and sold, the borrower was to pay back the amount borrowed to SMCRT.
From April 2006 to around October 2007, Rood sold to SMCRT approximately 32 mortgage loans that he had originated, of which 24 went into default after they were funded by SMCRT. One loan, referred to as the “K Street” loan, never closed because the title company was unable to clear title to the property, and Rood simply kept the money that SMCRT paid him to purchase the loan. Two other loans – the “Eastern Shore” and “Accom” loans – involved SMCRT loans that the borrowers refinanced with different lenders and sent their payoffs to Rood, who kept the payoff monies. In each case, Rood, assisted by Hepler, his employee, misrepresented to SMCRT that the loans were in place and performing satisfactorily, including Rood’s making of the monthly interest payments to SMCRT on the nonexistent loans.
When SMCRT requested an independent review of Rood’s accounts, Rood engaged Lloyd M. Mallory, a Maryland certified public accountant, to perform a review of the loans, disbursements and escrows. The accountant issued a report, which was actually prepared by Rood and Hepler, that falsely showed the status of the loans and the funds held by Rood. Mallory was sentenced to 24 months in prison on Aug. 2, 2012, following his plea of guilty to the conspiracy.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Michael E. Rich and Uzo E. Asonye prosecuted 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.Two Japanese Freight Forwarding Companies Agree to Plead Guilty to Criminal Price-Fixing ChargesRead the Press Release
WASHINGTON – Two Japanese air freight forwarding companies have agreed to plead guilty and to pay criminal fines totaling $18.9 million for their roles in a conspiracy to fix certain fees in connection with the provision of air freight forwarding services for air cargo shipments from Japan to the United States, the Department of Justice announced today. “K” Line Logistics Ltd. has agreed to pay a $3,507,246 criminal fine and Yusen Logistics Co. Ltd. has agreed to pay a $15,428,207 criminal fine.Including today’s charges, as a result of this investigation, 16 companies have either pleaded guilty or agreed to plead guilty and have agreed to pay criminal fines totaling more than $120 million.
“Consumers were forced to pay higher prices on the goods they buy every day as a result of the noncompetitive and collusive service fees charged by these companies,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Prosecuting these kinds of global, price-fixing conspiracies continues to be a top priority of the Antitrust Division.”
Freight forwarders manage the domestic and international delivery of cargo for customers by receiving, packaging, preparing and warehousing cargo freight, arranging for cargo shipment through transportation providers such as air carriers, preparing shipment documentation and providing related ancillary services.
According to charges filed separately today in the U.S. District Court for the District of Columbia, “K” Line Logistics and Yusen Logistics engaged in a conspiracy to fix and to impose certain freight forwarding service fees, including fuel surcharges and various security fees, charged to customers for services provided in connection with air freight forwarding shipments of cargo shipped by air from Japan to the United States from about September 2002 until at least November 2007.
According to the charges, the companies carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate and impose certain freight forwarding service fees and charges on customers purchasing freight forwarding services for cargo shipped by air from Japan to the United States. The department said the companies levied freight forwarding service fees in accordance with the agreements reached and engaged in meetings and discussions for the purpose of monitoring and enforcing adherence to the agreed-upon freight forwarding service fees.
Each company is charged with price fixing in violation of the Sherman Act, which carries a maximum $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charges are the result of a joint investigation being conducted by the Antitrust Division’s National Criminal Enforcement Section, the FBI’s Washington Field Office and the Department of Commerce’s Office of Inspector General. Anyone with information concerning the price fixing or other anticompetitive conduct in the freight forwarding industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contract/newcase.htm or call the FBI’s Washington Field Office at 202-278-2000.
Two Hungarian Nationals Sentenced in Tennessee for Roles in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
Hungarian nationals Beatrix Boka and Aleksandar Kunkin were sentenced today to serve 36 months and 46 months in prison, respectively, for their roles in moving approximately $550,000 in illicit proceeds derived from an international online marketplace fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Jerry E. Martin for the Middle District of Tennessee.
Boka, 34, and Kunkin, 40, were sentenced by U.S. District Judge Aleta A. Trauger in the Middle District of Tennessee. In addition to their prison terms, Boka and Kunkin were each sentenced to serve two years of supervised release and ordered to pay $464,581 in restitution.
Boka and Kunkin each pleaded guilty in November 2012 to one count of conspiracy to commit bank and wire fraud.
According to testimony at Boka and Kunkin’s plea hearings, members of the conspiracy fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators sent emails that directed the victims to wire payments to certain bank accounts, and victims never received the vehicles for which they paid. From May to June 2012, Boka and Kunkin visited Bank of America branches in North Carolina and South Carolina and opened bank accounts under false identities, which were supported by fraudulent identity documents including counterfeit Hungarian passports. In total, 36 victims sent approximately $550,102 to accounts opened by Boka and Kunkin. Boka and Kunkin subsequently sent the bulk of the money to co-conspirators located abroad.
The case is being prosecuted by Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Trial Attorney Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section. The case is being investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department and the Cobb County, Ga., Sheriff’s Department.
Two Hungarian Nationals Sentenced in Tennessee for Roles in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
WASHINGTON – Hungarian nationals Beatrix Boka and Aleksandar Kunkin were sentenced today to serve 36 months and 46 months in prison, respectively, for their roles in moving approximately $550,000 in illicit proceeds derived from an international online marketplace fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Jerry E. Martin for the Middle District of Tennessee.
Boka, 34, and Kunkin, 40, were sentenced by U.S. District Judge Aleta A. Trauger in the Middle District of Tennessee. In addition to their prison terms, Boka and Kunkin were each sentenced to serve two years of supervised release and ordered to pay $464,581 in restitution.
Boka and Kunkin each pleaded guilty in November 2012 to one count of conspiracy to commit bank and wire fraud.
According to testimony at Boka and Kunkin’s plea hearings, members of the conspiracy fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators sent emails that directed the victims to wire payments to certain bank accounts, and victims never received the vehicles for which they paid. From May to June 2012, Boka and Kunkin visited Bank of America branches in North Carolina and South Carolina and opened bank accounts under false identities, which were supported by fraudulent identity documents including counterfeit Hungarian passports. In total, 36 victims sent approximately $550,102 to accounts opened by Boka and Kunkin. Boka and Kunkin subsequently sent the bulk of the money to co-conspirators located abroad.
The case is being prosecuted by Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Trial Attorney Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section. The case is being investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department and the Cobb County, Ga., Sheriff’s Department.
The Executive Office for Immigration Review Announces Office of the Chief Immigration Judge Staffing UpdateRead the Press Release
FALLS CHURCH, Va. - The Executive Office for Immigration Review (EOIR) today announced the appointment of a second deputy chief immigration judge (DCIJ). Effective March 10, 2013, Assistant Chief Immigration Judge (ACIJ) Edward F. Kelly will become a DCIJ. Judge Kelly will assume direct supervision of the program components in the Office of the Chief Immigration Judge (OCIJ), including the legal unit, the language service unit, the organizational results unit, the chief clerk, and the executive officer.
“Judge Kelly’s appointment as deputy chief immigration judge is in recognition of his tremendous contributions to OCIJ’s efficiencies and services,” said Chief Immigration Judge Brian M. O’Leary. “With his expanded role, I am confident OCIJ will continue to improve our operations and inspire our staff.”
Biographical information follows:
Attorney General Holder appointed Judge Kelly as an ACIJ in March 2011. He received a bachelor of arts degree in 1982 and a juris doctorate in 1987, both from the University of Notre Dame. From November 2009 to March 2011, Judge Kelly served as senior counsel and chief of staff for OCIJ. From 2007 to 2009, he was counsel for operations for OCIJ at EOIR. From 1998 to 2007, Judge Kelly was a senior legal advisor for the Board of Immigration Appeals (BIA), EOIR. From 1995 to 1998, he served as a supervisory attorney and team leader for the BIA. From 1989 to 1993 and again from 1994 to 1995, Judge Kelly was an attorney advisor for the BIA. From 1987 to 1989, he served as an assistant counsel, Subcommittee on Immigration, Refugees, and International Law, U.S. House of Representatives, Washington, D.C. From 1982 to 1984, he served in the U.S. Peace Corps in Gabon, Africa. Judge Kelly is a member of the Virginia State Bar.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewThe Executive Office for Immigration Review Announces New Senior Executive Service MemberRead the Press Release
FALLS CHURCH, Va. - The Executive Office for Immigration Review (EOIR) today announced an important staffing update within the Office of the Chief Immigration Judge (OCIJ). Effective March 10, 2013, Deputy Chief Immigration Judge (DCIJ) Michael C. McGoings will become a member of the Senior Executive Service, continuing to directly supervise the assistant chief immigration judges and the 58 field courts.
“I am so pleased to welcome Judge McGoings into the Senior Executive Service, a corps of government leaders who share a wealth of experience and a true commitment to public service,” said Chief Immigration Judge Brian M. O’Leary. “His well-honed executive skills and broad perspective of government will continue to benefit OCIJ.”
Biographical information follows:
Attorney General Eric Holder appointed Judge McGoings as Deputy Chief Immigration Judge in October 2009. He received a bachelor of arts degree in 1965 from Morgan State University, a master of science degree in 1967 from the University of Illinois, and a juris doctorate in 1973 from The Catholic University of America. From March 1995 to October 2009, Judge McGoings served as an Assistant Chief Immigration Judge. During this time, from February to July 2009, he served as acting Chief Immigration Judge. From 1994 to 1995, Judge McGoings was an associate general counsel serving as Chief of the Enforcement Legal Program and from 1991 to 1994, he was an associate general counsel for the Employer Sanctions and Civil Document Fraud Legal Program at the former Immigration & Naturalization Service (INS). From 1987 to 1990, he worked as assistant general counsel for the former INS. Judge McGoings is a member of the District of Columbia and Pennsylvania bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewTexas Man Pleads Guilty to Possession with Intent to Distribute More Than 50 Grams of MethamphetamineRead the Press Release
Jackson, Miss - Alberto Morales Alejandre, 25, of Dallas, Texas, pled guilty on March 7, 2013 to possession with intent to distribute more than 50 grams of methamphetamine, U.S. Attorney Gregory K. Davis announced.
Alejandre was indicted following his arrest on July 16, 2012 when, during a traffic stop on I-20, he was found to be transporting 9,991 grams of methamphetamine in a hidden compartment beneath the carpet of his vehicle. He will be sentenced on May 23, 2013 at 9:00 a.m. and faces a maximum sentence of life in prison and a $10 million fine.
This case was investigated by the Drug Enforcement Administration and the Pearl, Mississippi Police Department. It was prosecuted by Assistant U.S. Attorney Erin Chalk.###
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Tennessee-Based Therapy Providers to Pay $2.7 Million to <br /> Resolve False Claims Act AllegationsRead the Press Release
The Justice Department announced today that Chattanooga, Tenn., based nursing home manager Grace Healthcare LLC and its affiliate Grace Ancillary Services LLC (collectively, Grace) have agreed to pay $2.7 million, plus interest, to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs of false claims for medically unreasonable and unnecessary rehabilitation therapy. Grace Ancillary Services LLC provided the therapy in some of the skilled nursing facilities Grace Healthcare LLC owns and/or manages in Tennessee and elsewhere.
The settlement resolves claims that in ten nursing home facilities in which Grace provided physical, occupational, and speech therapy for periods ranging from 2007 through June of 2011, Grace pressured therapists to increase the amount of therapy provided to patients in order to meet targets for Medicare revenue that were set without regard to patients’ individual therapy needs and could only be achieved by billing for a large amount of therapy per patient. As part of the settlement, Grace has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
“In today’s economic climate, it is more important than ever for the United States to make sure that Medicare and Medicaid funds are spent appropriately,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “The Department of Justice will not tolerate those who abuse government health care programs by providing services based on their own financial considerations, rather than the needs of their patients.”
“The continued viability of our federal healthcare benefit programs depends, in large part, on the honesty and integrity of the program participants,” said U.S. Attorney for the Eastern District of Tennessee Bill Killian. “Health care providers must make decisions regarding the level of services to be provided based solely on individual patient need rather than a desire to increase the bottom line. As this settlement demonstrates, when aggressive business practices cross the line into waste and abuse, we are committed to working with our federal and state partners to protect public funds.”
“Medicare does not pay for medically unnecessary rehabilitation services,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “The Inspector General is committed to identifying improper billing to Medicare and Medicaid and returning those dollars to the taxpayers.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
The allegations settled today arose from a lawsuit filed by a former Grace employee under the qui tam, or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. The whistleblower in this case will receive $405,000. The case is United States of America and State of Tennessee ex rel. Ottinger v. Grace Healthcare, LLC, Grace Ancillary Services, LLC, and John Does 1-5, No. 3:10-cv-83 (E.D. Tenn.).
The case was handled by the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Tennessee, the Office of the Inspector General of the U.S. Department of Health and Human Services, the Tennessee Attorney General’s Office, and the Tennessee Bureau of Investigation’s Medicaid Fraud Control Unit. This action was supported by the Elder Justice and Nursing Home Initiative, which coordinates the Department’s activities combating elder abuse, neglect and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid and other federal health care programs.The claims settled by this agreement are allegations only; there has been no determination of liability.
Tax Preparer IndictedRead the Press Release
A tax preparer from Waterville, Ohio, was indicted on four tax counts related to efforts to evade his personal income tax obligation on more than $1.3 million in income, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
According to the indictment, Ronald D. Durbin, age 72, was the principal officer and operator of Citizens Tax Service. He is alleged to have failed to have filed income tax returns for the following years in which he had income on which taxes were due:
2006: $286,604
2007: $306,620
2008: $363,031
2009: $348,881
The indictment alleges that he sought to evade payment of his income taxes for these years by using a nominee owner of his tax preparation business and using nominee bank accounts to conceal the income.
This case is being prosecuted by Assistant United States Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations.An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilty beyond a reasonable doubt.
Tax Attorney Convicted of Causing Tax Loss of More Than $2 MillionRead the Press Release
HOUSTON – Tax attorney and Certified Public Accountant (CPA) William R. Zweifel has entered a plea to two counts of willfully aiding and assisting in the preparation and presentation of U.S. Individual Income Tax Returns that were false or fraudulent, United States Attorney Kenneth Magidson announced today along with Special Agent in Charge Lucy Cruz of Internal Revenue Service – Criminal Investigation (IRS-CI)
According to the plea agreement filed in the record of the case, Zweifel acknowledged he was a tax attorney and CPA and that he prepared false income tax returns for some taxpayers that claimed large tax refunds to which the taxpayers were not entitled. The method he used to create a false income tax refund was to offset a taxpayer’s income with an alleged loss from either a partnership in which the taxpayer had no partnership interest or from an S corporation which reported no loss for the taxpayer to claim. Zweifel stipulated in the plea agreement that the tax losses to the United States from the false claims on the two income tax returns listed in the criminal information were approximately $61,000 and approximately $42,000, respectively. Zweifel further admitted that for purposes of determining relevant conduct under the U.S. Sentencing Guidelines, the tax loss to the United States in this case is approximately $2.2 million.
“One of the IRS’s main objectives is to ensure that all tax practitioners, tax preparers and others who practice in the tax law profession adhere to professional standards and follow the law,” said Cruz. “CI’s efforts to deter refund fraud are critical to overall tax compliance. Our special agents play a valuable role in protecting revenue by identifying, investigating and recommending prosecution of abusive return preparers.”
Zweifel also has agreed to pay restitution to the United States of $250,000 and to never again aid or assist in the preparing or presenting of tax returns for any taxpayer other than himself and any entity he owns. He further agreed not to oppose any civil injunction action brought by the United States seeking to enjoin him from preparing income tax returns for anyone but himself and any entity he owns.
The court has set sentencing for May 23, 2013. The maximum penalty Zweifel faces on each count of willfully preparing a false income tax return is imprisonment of three years and a fine of $250,000. He was permitted to remain on bond pending that hearing.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
St. Lucie County Resident Convicted of Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), announced that on March 7, 2013, a Ft. Pierce federal jury found defendant Cameron Dean Bates, 46, of Port Saint Lucie, guilty on all 18 counts of an indictment that charged Bates with receipt and distribution of child pornography via the internet.
U.S. District Judge K. Michael Moore, who presided over the eight day trial, immediately remanded Bates to the custody of the U.S. Marshall Service. Sentencing has been scheduled for June 3, 2013 in Ft Pierce. At sentencing, Bates faces a mandatory minimum of five years in jail and up to 20 years in prison and a lifetime of supervised release on each of the eight counts of receipt of child pornography and the one count of distribution of child pornography. Bates faces up to ten years imprisonment on the eight counts of accessing child pornography and the one count of possession of child pornography. In addition, Bates will be required to register as a sex offender.
According to testimony at trial, in March 2011, SLCSO detectives and members of the South Florida Internet Crimes against Children (ICAC) Task Force began an Internet investigation using Peer-to-Peer (P2P) software. During this investigation, law enforcement found that between December 2010 and June 19, 2012, several internet protocol (IP) addresses linked to Cameron Dean Bates in both St. Lucie County and Palm Beach County were used to download and share child pornography files. Detectives reviewed a number of the files associated with the IP addresses, and confirmed that the files contained child pornography.
On June 29, 2012, a state authorized search warrant was executed at Bates’ residence in Port Saint Lucie, Florida. During the search, law enforcement seized a Dell black/silver laptop computer from Bates’ car. An on-sight forensic preview scan of the computer found numerous, non-deleted, child pornography images and videos, which included a minor child engaging in sexually explicit conduct. A full forensic analysis of Bates’ laptop revealed numerous images and videos of child pornography, along with personally produced adult pornography by Bates.
Mr. Ferrer commended the investigative efforts of the St. Lucie County Sheriff’s Office and HSI for their assistance and their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Carmen Lineberger and A. Marie Villafana.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
St. George Man Faces Fraud, Money Laundering, Tax Charges in Indictment Returned by Federal Grand JuryRead the Press Release
SALT LAKE CITY – A federal grand jury returned a six-count indictment Wednesday afternoon charging Christopher C. Harris, age 46, of St. George, Utah, with wire fraud, money laundering, and failure to file a federal tax return in connection with a scheme to defraud individuals and companies who were trying to purchase large quantities of cement.
According to the indictment, Harris owned a commodities distribution business under the name of Revolution Holdings, Inc., in St. George. Harris purported to supply commodities of all kinds throughout the world by obtaining and arranging for shipping of the commodities. Harris conducted business by, among other things, entering into contracts with customers who wired money into his personal accounts.
The indictment alleges that from about July 2008 to about July 2009, Harris devised a scheme to defraud individuals and companies identified in the indictment as D.D. (DJD International Solutions, LLC) and M.O. (American Quality Importers, LLC).
The indictment alleges Harris told the victims he had purchased and delivered large shipments of cement to prior customers and that he owned a large quantity of cement when, in fact, he did not. Harris also sent victims fraudulent documents purporting to be from third parties indicating that he and Revolution Holdings had fulfilled large-scale contracts in the past and that he had arranged for shipping vessels to transport cement overseas.
The indictment alleges that Harris defrauded victims of about $725,000 through his scheme.
The first three counts of the indictment allege wire fraud in the execution of the scheme by falsely obtaining the money and property of victims through the use of materially false representations and the omission of material facts. Two money laundering counts allege Harris used money he obtained through the scheme to make a $350,000 down payment on a personal residence and to purchase a $121,758 boat. The final count of the indictment alleges Harris did not file a federal tax return for 2008.
The potential maximum penalty for each count of wire fraud is 20 years in prison. The money laundering counts each carry potential 10-year sentences. The potential penalty for the tax charge is up to one year in prison. The indictment also includes a notice that federal prosecutors are seeking a forfeiture judgment of $725,000.
A summons will be issued to Harris to appear for an arraignment on the charges.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Utah and investigated by special agents of the U.S. Secret Service and the IRS Criminal Investigation Division.
Six Men from Northwest Ohio Indicted for Their Roles in Chop-Shop ConspiracyRead the Press Release
Six men from northwest Ohio were indicted on a variety of charges related to their roles in a conspiracy to transport semi-trucks, trailers and cargo stolen in Ohio, Michigan and Indiana, said law enforcement officials said.
The 17-count indictment names Michael Wymer, age 54, of Toledo; Robert W. Debolt, Jr., age 47, of Toledo; Michael A. Deutsch, age 38, of Toledo; Shawn M. Wymer, age 27, of Holland; Gary J. Wymer, age 55, of Rossford, and Terrance L. Wymer, age 28, of Toledo, Ohio.
“This was a highly organized group that stole from people throughout the Midwest,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “The FBI, Ohio State Patrol and all the law enforcement partners involved in this investigation did a tremendous job shutting down this ring.”
“These defendants operated a truck and cargo-theft ring, stealing from Ohio, Michigan and Indiana, which resulted in a multi-million dollar losses,” said Stephen D. Anthony, Special Agent in Chargeof the FBI’s Northern District of Ohio. “This case was a true collaborative effort by all participating agencies, and we are committed to holding accountable those individuals who engage in this organized criminal activity.”
Colonel John Born, Superintendent of the Ohio State Highway Patrol, said: “Criminals are using Ohio’s vast interstate system to engage in vehicle theft and fraud. These crimes degrade the quality of life in Ohio, and we will continue working together to ensure the safety and security of all Ohioans.”
The charges relate conduct that took place from August 2012 through February 2013, according to the indictment.
The men operated a chop shop located at 642 Sterling Street in Toledo, while Gary Wymer and others operated another chop shop at 2322 Consual Street in Toledo, according to the indictment.
The men would dismantle stolen semi-trucks, trailers and cargo, transport the pieces and parts of said stolen items between the two chop shops and the ultimately destroy or scrap the stolen goods, according to the indictment.
They also received stolen motor vehicles and parts with the intent to sell or dispose of them, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Cleveland, Ohio in conjunction with the Ohio State Highway Patrol and the Ohio Bureau of Motor Vehicles. The case is being handled by Assistant United States Attorneys Alissa M. Sterling and Thomas A. Karol.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Second Defendant Pleads Guilty in Tax Rebate ScamRead the Press Release
ROANOKE, VIRGINIA -- For the second time this week, one of three individuals charged with conspiracy and fraud charges related to a scheme to profit from fraudulent United States Treasury checks has pleaded guilty in the United States District Court for the Western District of Virginia in Roanoke.
Thursday in District Court, Khaldoun Khalil Khawaja, 47, of Wesley Chapel, Fla., pled guilty to one count of conspiracy to defraud the United States: buy, sell, exchange treasury checks bearing forged endorsements and one count of conspiracy to commit money laundering.
Earlier this week, Muawua Khalil Abdeljalil, 43, of Roanoke, Va., pled guilty to the same two charges as Khawaja, plus an additional count of structuring. A third defendant, Osama Mahmud Mustafa, has not yet been brought to trial.
“Mr. Khawaja conspired with two other men to negotiate fraudulent income tax refund checks and provided a market for the fraudulent checks,” United States Attorney Timothy J. Heaphy said today. “Stolen identity refund fraud is an emerging problem, one we will continue to prioritize. We will vigorously pursue all forms of fraud against the federal government and do what we can to hold those who commit these crimes accountable.”
“Today’s result is a tribute to strong multi-agency investigative work and efforts to eradicate this type of fraudulent scheme,” said Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Division.
“Return preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today's plea hearing is a reminder that individuals who scheme to defraud the U.S. Government by submitting false claims for profit will be brought to justice.”
The defendants have admitted to purchasing fraudulent income tax return checks and then presenting those fraudulent checks for payment at financial institutions in the Western District of Virginia, the Middle District of Florida and elsewhere.
In all, the defendants fraudulently deposited more than $17.5 million as a result of the scheme.
At sentencing, Khawaja faces up to 25 years in prison and/or a fine of up to $750,000. Abdeljalil faces up to 40 years in prison and/or a fine of up to $1,250,000 on these charges and an additional marriage fraud count charged in a separate indictment.
The investigation of the case was conducted by the Federal Bureau of Investigation, the United States Secret Service, the United States Marshals Service Asset Forfeiture Program, the Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) The United States Attorney’s office for the Middle District of Florida and the United States Attorney’s Office for the Western District of Virginia coordinated the prosecutions of the income tax refund fraud cases. Assistant United States Attorney Joseph Mott of the United States Attorney’s Office for the Western District of Virginia prosecuted the case for the United States.
San Diego Man Indicted for Fraudulently Obtaining Millions of Dollars of Cash and Equipment from CiscoRead the Press Release
SAN FRANCISCO – Yesterday, a federal grand jury in San Francisco indicted Quin Rudin (aka Dean Rubin, aka David Rubin) with two counts of wire fraud and one count of aggravated identity theft, United States Attorney Melinda Haag announced.
According to court documents, Rudin controlled CGC Digital (“CGC”), a company that was as an authorized partner of Cisco Systems, Inc. Last fall, CGC contacted Cisco to arrange for the lease of Cisco equipment on behalf of an end user, Altura Pharmaceuticals Inc. (“Altura”). Based on the information provided by CGC, Cisco approved the lease of equipment to Altura and agreed to provide more than $5.8 million in financing for the lease. According to the agreements, CGC would receive the Cisco equipment and the financing to install and service the equipment at Altura. In truth, Altura did not intend to lease any Cisco equipment, and no employee of Altura had engaged CGC to arrange a lease.
At the end of October 2012, a representative of CGC e-mailed to Cisco signed copies of agreements regarding Altura’s purported lease of Cisco equipment. Each agreement was purportedly signed by Altura’s Chief Financial Officer. Days prior to submission of these forged Altura documents to Cisco, Rudin allegedly caused the creation of an Internet domain purported to be that of Altura ending in “.net.” This .net domain was registered, not to Altura, but to CGC. Rudin then allegedly caused e-mails to be sent from the Altura.net domain to a Cisco representative. Each e-mail purported to be from the same employee at Altura who had executed the agreements, and each e-mail prompted Cisco to make a payment to CGC. These payments to CGC totaled approximately $2 million dollars.
The FBI arrested Rudin in San Diego on February 26. Rudin made his initial appearance in federal court in San Diego, and he remains in custody pending his arrival in San Francisco to face these charges.
The maximum statutory penalty for each count of wire fraud, in violation of 18 U.S.C. § 1343, is 20 years’ imprisonment, a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution if appropriate. The maximum statutory penalty for aggravated identity theft, in violation of 18 U.S.C. § 1028A, is 2 years’ imprisonment, to be imposed consecutively to any term of imprisonment imposed for wire fraud. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Kyle Waldinger and Hallie Hoffman are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth and Rawaty Yim. The prosecution is the result of a one-month investigation by the Federal Bureau of Investigation.
Please note that an indictment contains only allegations against an individual, and, as with all defendants, Rudin must be presumed innocent unless and until proven guilty.
San Angelo, Texas, Man Pleads Guilty in Federal Court to Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — Victor Lopez, 47, of San Angelo, Texas, appeared this morning in federal court in Lubbock, Texas, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of receipt of child pornography. Lopez faces a maximum statutory penalty of not less than five years or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lopez has been in federal custody since his arrest following the execution of a federal search warrant at his residence by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) on January 23, 2013. He was indicted last month on several counts of receiving and possessing child pornography.
According to plea documents filed in the case, Lopez admitted that he used file-sharing software to collect numerous videos of child pornography, including depictions of sadistic and masochistic conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case is being investigated by ICE HSI and prosecuted by Assistant U.S. Attorney Steven M. Sucsy.
Rexford Woman Convicted of Harboring an Illegal AlienRead the Press Release
Albany, New York — A jury convicted Annie George, a/k/a Annie Kolath, a/k/a Sajimol George, age 40, of harboring an illegal alien following a five-day trial announced United States Attorney Richard S. Hartunian and Matthew Scarpino, Resident Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI). Sentencing is scheduled for July 9, 2013 at 11:00 a.m. before the Honorable Gary L. Sharpe, Chief U.S. District Judge. George faces a maximum term of imprisonment of five years and a fine of up to $250,000.
According to the indictment, George harbored an illegal alien from India between about November 2005 and May 3, 2011 in George’s homes in Catskill, Menands, and Rexford, New York.
United States Attorney Hartunian stated: “This case demonstrates our commitment to investigate and prosecute those who harbor illegal aliens. We commend the U.S. Department of Homeland Security’s HSI for the thoroughness and professionalism demonstrated by their Special Agents throughout the course of this case.”
“Today’s conviction is a testament to our solemn commitment to protect those who cannot protect themselves,” said Matthew Scarpino, Resident Agent-in-Charge of HSI Albany. “HSI is committed to giving the victims the help they need to come forward with vigorous enforcement and tough penalties.”
This case was investigated by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI). This case is being prosecuted by Assistant United States Attorney Rick Belliss.
LOCAL CONTACT: Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247TextProvidence Man Sentenced to 8 Years in Federal Prison on Firearm and Drug ChargesRead the Press Release
PROVIDENCE, R.I. – Harold Moody, 47, of Providence, was sentenced today to 96 months in federal prison for being a felon in possession of a firearm and possession with the intent to distribute marijuana, announced United States Attorney Peter F. Neronha, Guy N. Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Boston Field Office, and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U.S. District Court Chief Judge Mary M. Lisi also sentenced Moody to serve three years of supervised release following his prison term. Moody pleaded guilty to the charges on December 19, 2012.
According to information presented to the court, Moody failed to disclose numerous felony convictions, including convictions for armed robbery, assault and drug charges, on ATF forms he signed and submitted in April 2012 to a licensed firearms dealer in an attempt to transfer ownership of a Glock .45 caliber pistol to him from an acquaintance. The firearms dealer refused to transfer ownership of the firearm to Moody after determining that Moody was a convicted felon. Moody admitted to the court that he offered a clerk at the firearms dealership $900 in cash in attempt to persuade him to transfer ownership of the firearm. In June 2010, Moody proceeded to have his wife purchase two firearms for him.According to information presented to the court, an investigation by ATF agents beginning in May 2012 into suspected drug dealing activity by Moody resulted in multiple undercover purchases of marijuana from the defendant. A court authorized search of Moody’s residence on July 31, 2012, by ATF agents and Providence Police, resulted in the seizure of two Glock .45 caliber pistols, more than 58 grams of marijuana and various items used in the distribution of marijuana.
At the time of his guilty plea, Moody admitted to the court that he requested that his wife purchase the firearms from a licensed firearms dealer in June 2012 for protection. Moody also admitted to assisting his wife in making the purchases, and that the firearms belonged to him. In addition, Moody admitted to his drug dealing activities.
Moody has been detained in federal custody since his arrest on July 31, 2012.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
Contact: 401-709-5357
[email protected]Portland Man Sentenced in Child Pornography CaseRead the Press Release
PORTLAND, Ore. – A Portland man will spend six years in prison after pleading guilty to receiving child pornography. At a sentencing hearing held in federal court this morning, U.S. District Judge Anna J. Brown sentenced Keith Henry Jordan, 53, to 72 months in prison followed by a five-year term of supervised release. Jordan will be subject to stringent conditions of supervision, including prohibitions on associating with minors, and restrictions on his use of computers. Jordan will also be required to participate in sex offender treatment, and must register as a sex offender.
U.S. Attorney Amanda Marshall praised the sentence imposed on Jordan. “We as a society cannot and will not tolerate the sexual abuse and exploitation of children,” she said. “Every time someone uploads, downloads, trades, shares, or views images and videos of child sexual abuse, the children in those images are victimized all over again. By creating a demand for such images, those who collect them encourage the ongoing sexual abuse of children.” She added, “There is nothing innocent or harmless about collecting images depicting the sexual abuse of a child.”
The investigation began when a Clackamas County Sheriff’s detective, assigned to the Interagency Child Exploitation Prevention Team (“INTERCEPT”), learned that a computer user, later determined to be Jordan, was making images of child pornography available for download through a “peer-to-peer” file sharing program. INTERCEPT officers served a state search warrant at Jordan’s residence, then in Milwaukie, Oregon, and seized computer equipment and numerous compact discs. A forensic examination revealed that Jordan had almost 1300 images and over 200 videos graphically depicting the sexual abuse of very young children.
In imposing the sentence, Judge Brown described child pornography and the child pornography industry as an “abominable intrusion” into our society. She noted that it is “difficult” for the victims who appear in the images and videos “to ever have peace,” because the images and videos “can never be removed from the internet.” In determining the sentence, Judge Brown balanced the very serious nature of Jordan’s offense against his age, his lack of recent criminal history, and his health issues. Judge Brown expressed confidence that Jordan was not likely to re-offend following his release from prison.
Reading from a brief, prepared statement, Jordan apologized to the court and to the victims. He said he had “no idea” of the pain and suffering the victims continue to endure because the images of their abuse continue to circulate on the internet, but claimed that he understands now.
This case was investigated by the Clackamas County Sheriff’s Office, the INTERCEPT Task Force, and the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant U. S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the U.S. Attorney’s Office in Oregon.
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 and 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.
Pierce County Man Sentenced to 72 Months in Prison for Interstate Prostitution and Money Laundering Conspiracies, and Tax FraudRead the Press Release
A Milton, Washington man who owned a Federal Way Korean bar where Korean National women were promoted for prostitution was sentenced today to 72 months in prison and five years of supervised release, announced U.S. Attorney Jenny A. Durkan. CHANG YOUNG KIM, 59, was also ordered to pay $112,050 in restitution and over $1.6 million in back taxes and penalties to the Internal Revenue Service. KIM pleaded guilty in November 2012 to conspiracy to transport individuals for prostitution, conspiracy to engage in money laundering, bribery of a public official and tax evasion. KIM owned the Blue Moon Korean bar business in Federal Way which utilized Korean National women working illegally as ‘bar girls’ and prostitutes. KIM was indicted in three separate criminal schemes, some related to the club, and others to fraudulent business dealings. At sentencing U.S. District Judge Ronald B. Leighton said to the defendant, “you were a one-man criminal enterprise . . . [and] the most instrumental of everyone on a host of fronts.”
During 2010 and 2011, KIM owned the Blue Moon using ‘madam’ Miyoung Roberts, 42, of Auburn, Washington to recruit and manage more than two dozen “bar girls” and arranging their transportation from Korea to the U.S. KIM and his co-defendants arranged apartments for the women to live in and supervised some of the women’s prostitution activities. During the undercover investigation by law enforcement, KIM offered and paid $15,000 to a Washington State Liquor Control Board investigator believing the investigator was corrupt and that he was getting advance warning of inspections. The investigator was reporting the bribes as part of the undercover investigation.
In a separate scheme, KIM convinced two clients of his real estate company, Royal Realty, to invest $400,000 in the purchase of a Cle Elum, Washington motel. However there was no deal to purchase the property and KIM and two co-conspirators used the money for their own expenses. Finally, KIM attempted to evade more than $1.6 million in income taxes by failing to report income and by putting assets in other people’s names.
In asking for a significant sentence prosecutors wrote to the court that KIM “has spent a good part of his adult life steeped in fraud and deception. ….In order to commit these crimes, the defendant was willing to use his family members to further his personal objectives, causing them to place themselves in financial and legal jeopardy. He was willing to violate the law through bribery….. It is as though the defendant had no limits as to how far he would go to lie, cheat, and steal.”
“Kim operated a sex club a few blocks away from homes and schools, degrading the quality of life in the community as well as the women involved,” said Brad Bench, special agent in charge of HSI Seattle. “HSI will continue to work closely with its law enforcement partners to attack and dismantle these kinds of enterprises that prey on the vulnerable and often bring other criminal activity into the area.”
“Our communities deserve better than to have human trafficking going on in them,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “IRS Special Agents bring their unique skills in conducting financial investigations, ranging from tax evasion to money laundering, to the team of law enforcement professionals working to erase this type of crime from our region.”
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Internal Revenue Service Criminal Investigation (IRS-CI), the Washington State Liquor Control Board (WSLCB), the Federal Way Police Department, Lakewood Police Department, and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorney Ye-Ting Woo.
Pennsylvania Police Officer Pleads Guilty to Federal Civil Rights OffenseRead the Press Release
Mark E. Thom Jr., 31, a Springdale Borough, Penn., Police Officer, pleaded guilty to a one count information charging him with violating the civil rights of an individual on Jan. 23, 2011 in Springdale, announced Thomas E. Perez, Assistant Attorney General for the Civil Rights Division and David J. Hickton, U.S. Attorney for the Western District of Pennsylvania.
According to the information and plea documents, on Dec. 17, 2011, Thom used excessive force on the victim during the course of making an arrest by assaulting him with his fists and deploying a Taser, all while the victim was handcuffed and not posing a threat to Thom or others. In accordance with his guilty plea, Thom admitted that his conduct amounted to a willful deprivation of the victim’s right to be free from unreasonable seizures.
“Police officers who abuse their power to assault citizens undermine the system of constitutional government they are sworn to uphold,” said Assistant Attorney General Perez. “As the plea in this case shows, the Civil Rights Division will work closely with our United States Attorneys to aggressively enforce the laws that prohibit police misconduct.”
“Thom admitted to using excessive force by punching and using a Taser against a handcuffed, non-resisting victim,” said U.S. Attorney Hickton. “Thom’s unlawful and unjustified conduct constitutes a clear deprivation of the man’s civil rights, a violation that this office takes seriously, and will vigorously investigate and prosecute.”
“The FBI holds as one of its highest priorities the investigation of civil rights violations, and the Pittsburgh Division will pursue those who are entrusted with protecting our citizenry and violate that trust. The FBI will continue to work with its law enforcement partners to ensure that justice is served,” said FBI Special Agent in Charge of the Pittsburgh Field Office G. Douglas Perdue. “I encourage the public to contact our FBI Civil Rights Public Corruption Hotline at 412-432-4122 to report any potential Civil Rights violation.”
Sentencing is scheduled for July 12, 2013. Thom faces a maximum sentence of 10 years in prison, a fine of $250,000 and three years of supervised release.
This case was investigated by the Pittsburgh Office of the FBI, and is being prosecuted by Assistant U.S. Attorney Shaun Sweeney and Civil Rights Division Trial Attorney Adriana Vieco.
Pennsylvania Man Sentenced for Possesion of child PornographyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Graham Godbey, 25, of Allentown, Pennsylvania, who was convicted of possession of child pornography, was sentenced to two years in prison and five years supervised release by
U.S. District Court Judge Richard J. Arcara.Assistant U.S. Attorney Fauzia K. Mattingly, who handled the case, stated that on June 29, 2010, the defendant attempted to enter Canada from the United States at the Peace Bridge. During an inspection of Godbey's vehicle by the Canada Border Services Agency, officers recovered a laptop computer which contained images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the result of an investigation being handled by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Niagara Regional Police, under the direction of Chief Jeffrey McGuire.Orlando Woman Agrees to Plead Guilty to Operating Multi-Million Dollar Fraud SchemeRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces that Tina Mangiardi (50, Orlando) has agreed to plead guilty to one count of conducting a prohibited monetary transaction. Mangiardi was charged by information on March 7, 2013, and faces a maximum penalty of 10 years in federal prison. The information also notifies her that the United States is seeking a money judgment in the amount of $100,000.00, the proceeds of the prohibited monetary transaction.
Mangiardi’s initial appearance and arraignment are scheduled for March 20, 2013, at 10:00 a.m. before United States Magistrate Judge David A. Baker.
According to the information and plea agreement, between 2009 and 2012, Mangiardi, under the corporate name of TLM Design and Construction, Inc. (TLM), engaged in a scheme wherein she fraudulently obtained more than $2.5 million from investors. During the scheme, Mangiardi convinced victims to invest large sums of money in a construction“bid bond” investment. In return, and as inducements to invest, Mangiardi promised the return of the investors’ initial investment, as well as bonus money and additional monetary payments at rates as high as 100%. However, Mangiardi was not awarded bid bond contracts with the investment funds because the construction projects that she allegedly bid on, never existed. Instead, Mangiardi diverted the money for her own use.
An information 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 United States Secret Service with the assistance of the Orlando Police Department Economic Crimes Unit. It will be prosecuted by Assistant United States Attorney David Haas.
New York-Based Corning Incorporated to Pay U.S. $5.65 Million<br /> to Resolve False Claims AllegationsRead the Press Release
Corning Incorporated has agreed to pay the U nited States $5.65 million to resolve claims that it knowingly presented false claims to the United States for laboratory research products sold to federal agencies through Corning’s Life Sciences division. Corning, a New York based corporation, creates and makes glass and ceramic components for consumer electronics, mobile emissions controls, telecommunications and life sciences.
T he settlement resolves claims relating to a contract entered into by Corning in 2005 to sell laboratory research products to federal government entities through the General Services Administration’s (GSA) Multiple Award Schedule (MAS) program. The MAS program provides the government and other General Services Administration authorized purchasers with a streamlined process for procurement of commonly-used commercial goods and services. To be awarded a MAS contract, and thereby gain access to the broad government marketplace and the ease of administration that comes from selling to hundreds of government purchasers under one central contract, contractors must agree to disclose commercial pricing policies and practices, and to abide by the contract terms.
The settlement resolves allegations that, in contract negotiations and over the course of the contract’s administration, Corning knowingly failed to meet its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, including discounts offered to other customers, and that Corning knowingly made false statements to GSA about its sales practices and discounts . The settlement further resolves allegations that Corning knowingly failed to comply with the price reduction clause of its GSA contract by failing to disclose to GSA discounts Corning gave to its commercial customers when they were higher than the discounts that Corning had disclosed to GSA, and by failing to pass those discounts on to government customers. The United States alleged that, because of these improper dealings, it received lower discounts and ultimately paid far more than it should have for Corning products.
“This settlement shows that the United States expects all contractors participating in the MAS program to make full and accurate disclosures of their commercial pricing practices to the GSA and to act in good faith when dealing with the United States government,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division. “The failure to make full and accurate disclosures material to the government’s contracting processes will not be tolerated.”
“At a time when our political leaders are making tough choices about how to rein in federal spending, government contractors need to understand that they will not get away with overbilling the taxpayer,” said U.S. Attorney for the District of Columbia Ronald C. Machen Jr. “Companies that want to take advantage of federal contracts are obligated to deal openly and fairly with their government customers. When contractors fail to meet their obligations, we will hold them accountable and seek to make the taxpayer whole.”
“Contractors need to be honest and follow through with their promises to the federal government – or pay the consequences," said Brian D. Miller, Inspector General for the General Services Administration.
The settlement resolves a lawsuit filed in the U.S. District Court for the District of Columbia by a former Corning Life Sciences sales representative Kevin Jones under the qui tam, or whistleblower provisions, of the False Claims Act. Under the Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. Mr. Jones will receive $904,000 as his share of the government’s recovery.
This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the District of Columbia; the Department of Justice, Civil Division, Commercial Litigation Branch; and the GSA’s Office of Inspector General in investigating the allegations in this case. The claims settled by this agreement are allegations only, and there has been no determination of liability.
New York-Based Corning Incorporated to Pay United States $5.65 Million to Resolve False Claims AllegationsRead the Press Release
WASHINGTON – Corning Incorporated has agreed to pay the United States $5.65 million to resolve claims that it knowingly presented false claims to the United States for laboratory research products sold to federal agencies through Corning’s Life Sciences division. Corning, a New York based corporation, creates and makes glass and ceramic components for consumer electronics, mobile emissions controls, telecommunications and life sciences.
The settlement resolves claims relating to a contract entered into by Corning in 2005 to sell laboratory research products to federal government entities through the General Services Administration’s (GSA) Multiple Award Schedule (MAS) program. The MAS program provides the government and other General Services Administration authorized purchasers with a streamlined process for procurement of commonly-used commercial goods and services. To be awarded a MAS contract, and thereby gain access to the broad government marketplace and the ease of administration that comes from selling to hundreds of government purchasers under one central contract, contractors must agree to disclose commercial pricing policies and practices, and to abide by the contract terms.
The settlement resolves allegations that, in contract negotiations and over the course of the contract’s administration, Corning knowingly failed to meet its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, including discounts offered to other customers, and that Corning knowingly made false statements to GSA about its sales practices and discounts. The settlement further resolves allegations that Corning knowingly failed to comply with the price reduction clause of its GSA contract by failing to disclose to GSA discounts Corning gave to its commercial customers when they were higher than the discounts that Corning had disclosed to GSA, and by failing to pass those discounts on to government customers. The United States alleged that, because of these improper dealings, it received lower discounts and ultimately paid far more than it should have for Corning products.
"At a time when our political leaders are making tough choices about how to rein in federal spending, government contractors need to understand that they will not get away with overbilling the taxpayer,” said U.S. Attorney Ronald C. Machen Jr. “Companies that want to take advantage of federal contracts are obligated to deal openly and fairly with their government customers. When contractors fail to meet their obligations, we will hold them accountable and seek to make the taxpayer whole.”
“This settlement shows that the United States expects all contractors participating in the MAS program to make full and accurate disclosures of their commercial pricing practices to the GSA and to act in good faith when dealing with the United States government,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division. “The failure to make full and accurate disclosures material to the government’s contracting processes will not be tolerated.”
“Contractors need to be honest and follow through with their promises to the federal government – or pay the consequences," said Brian D. Miller, Inspector General for the General Services Administration.
The settlement resolves a lawsuit filed in the U.S. District Court for the District of Columbia by a former Corning Life Sciences sales representative Kevin Jones under the qui tam, or whistleblower provisions, of the False Claims Act. Under the Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. Mr. Jones will receive $904,000 as his share of the government’s recovery.
This settlement was the result of a coordinated effort by the U.S. Attorney=s Office for the District of Columbia; the Department of Justice, Civil Division, Commercial Litigation Branch; and the GSA’s Office of Inspector General in investigating the allegations in this case. The claims settled by this agreement are allegations only, and there has been no determination of liability.
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