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Thursday 17 January 2013
Sanjoy Bhattacharya Charged with False Statements to an Agency of the United StatesRead the Press Release
SANJOY BHATTACHARYA, age 56, a resident of New Orleans, Louisiana, was charged in a one-count indictment filed today for false statements to an agency of the United States, announced U. S. Attorney Dana J. Boente.
According to the Bill of Information, prior to and during the time of Hurricane Katrina, BHATTACHARYA resided on Tyler Drive in Slidell, Louisiana. On or about September 21, 2007, BHATTACHARYA applied for funds from the Louisiana Road Home Program claiming his primary residence at the time of the storm was on Joseph Street in New Orleans, a property he knew was leased to and inhabited by his tenants at time of the storm. As a result of the false statements in his application, BHATTACHARYA fraudulently received approximately $84,423 from the United States Department of Housing and Urban Development (“HUD”), an agency and department of the United States.
If convicted, BHATTACHARYA faces a maximum term of imprisonment of five (5) years, a $250,0000 fine, restitution to the HUD, three (3) years of supervised release following any term of imprisonment, and a $100 special assessment.
U. S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.The case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant U. S. Attorney Julia K. Evans.
(Download Indictment )
Rickey Groves Sentenced to More Than 118 Years in Prison for Carjacking, Armed Robbery SpreeRead the Press Release
Memphis, TN – Rickey Groves, a/k/a Rickey Hughes, 29, of Memphis, Tennessee, was sentenced today to 1424 months in federal prison by U.S. District Judge John T. Fowlkes, Jr., announced U.S. Attorney Edward L. Stanton III.
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In April and May of 2008, Groves carjacked at least two individuals and robbed at least four restaurants at gunpoint near Southeast Memphis. The robbery spree included the McDonalds located at 3377 Winchester Road; the McDonalds located at 1755 Getwell Road; the Popeye’s located at 4720 Showcase Boulevard; and The Kettle located at 4139 Winchester Road.
On August 15, 2011, Groves was convicted by a jury of carjacking and possession of a firearm during and in relation to a crime of violence. He was also convicted by a jury on October 30, 2012 of four counts of robbery of a business engaged in interstate commerce and four counts of using a firearm during each robbery. There is no parole in the federal system.
“This sentence is the product of a true collaborative effort between federal and local law enforcement,” said U.S. Attorney Stanton. “Rickey Groves had a criminal history marked by violent acts perpetrated against innocent citizens across Memphis. His conviction under federal statutes which promise no opportunity for parole, coupled with today’s stiff sentence, sends a message to anyone who chooses to use a firearm to commit unlawful acts that you will be brought to justice and be held accountable to the fullest extent of the law.”
The investigation was conducted by the Safe Streets Task Force, specifically by the Memphis Police Department and the FBI. This case was prosecuted by First Assistant U.S. Attorney Michelle Kimbril-Parks.Registered Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
A Des Moines, Washington, man was sentenced this afternoon in U.S. District Court in Seattle to ten years in prison for possession of child pornography, announced U.S. Attorney Jenny A. Durkan. GREGORY SEAN O’NEALL, 51, a convicted sex offender originally from Houston, Texas, was arrested in June 2012. He pleaded guilty in September 2012. Chief U.S. District Judge Marsha J. Pechman also sentenced O’NEALL to lifetime supervised release including sex offender treatment and the use of special software to monitor his computer.
According to records in the case, O’NEALL came to the attention of the Internet Crimes Against Children Task Force because of his postings on an online file sharing site. A Homeland Security Investigation agent working undercover on the site observed sexually explicit images of children being distributed from the internet protocol address at O’NEALL’s residence. The agent engaged O’NEALL in an online chat. O’NEALL discussed various photographs. Further investigation revealed that O’NEALL had posted other pictures in albums on a web site. More than 100 of the photos had been surreptitiously taken of young girls shopping with their families at retail stores. The ‘up-skirt’ photos focused on the underwear area of the young girls, but were not child pornography. Prior to his arrest O’NEALL worked for a contractor providing food samples at a Costco store in Federal Way, Washington. Some of the pictures appear to have been taken at that store.
O’NEALL has a prior sex offense conviction for molesting a 6-year-old girl who was left in his care. On December 2, 1991, he was convicted in Fort Worth, Texas, for Indecency with a Child (Contact), and sentenced to 7 years of probation.
In asking for a 135 month sentence prosecutors wrote to the court, “A substantial period of imprisonment is the only effective means to protect our community from the defendant, and it is also a fitting and just sanction for the harm he has caused.”
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 case was investigated by ICE’s Homeland Security Investigations (HSI) as part of the Internet Crimes Against Children Task Force (ICAC).
The case was prosecuted by Assistant United States Attorney Jerrod Patterson, who coordinates Project Safe Childhood for the U.S. Attorney’s Office.
Rafael Antonio Murillo Indicted on Illegal Re-entry ChargeRead the Press Release
RAFAEL ANTONIO MURILLO, age 41, a citizen of El Salvador, was charged today in a one-count indictment by a Federal Grand Jury for illegal re-entry by an alien previously removed, announced U. S. Attorney Dana J. Boente.
According to court documents, on or about December 19, 2012, MURILLO, an alien who had previously been removed from the United States, was found in the United States, in Jefferson Parish within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
If convicted, MURILLO, who was convicted of a felony prior to his previous removal, faces a maximum term of imprisonment of ten (10) years, a fine of $250,000 and three (3) years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.The case was investigated by U. S. Immigration and Customs Enforcement (ICE) - Enforcement and Removal Operations with the assistance of the Jefferson Parish Sheriff’s Office. The case is being prosecuted by Special Assistant U. S. Attorney Robert Weir.
(Download Indictment )
Queen City Man Sentenced to Federal Prison for Drug CrimeRead the Press Release
CONCORD, NH - Neville Padmore, 30, of Manchester, was sentenced in United States District Court for the District of New Hampshire to forty-eight months in prison and three years of supervised release for possessing controlled substances with the intent to distribute them, announced United States Attorney John P. Kacavas.
On February 2, 2012, the Manchester Police Department found distribution quantities of oxycodone and marijuana in Padmore’s possession when they executed a warrant to search Padmore’s Manchester apartment.
This matter was investigated by the Manchester Police Department and was prosecuted by Assistant U.S. Attorney Bill Morse.
Prior Felon Sentenced to 70 Months in Prison for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Anthony Chavez, 30, of Albuquerque, N.M., was sentenced this morning to 70 months in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Chavez was indicted in Aug. 2011, and was charged with unlawfully possessing a semiautomatic pistol and ammunition in Bernalillo County, N.M., on April 14, 2011. At the time, Chavez was prohibited from possessing firearms or ammunition because he previously had been convicted of (1) intentional child abuse and larceny, and (2) cocaine trafficking, in the Second Judicial District Court for the State of New Mexico.
Chavez was arrested on Sept. 21, 2011, and has been in federal custody since that time. On April 11, 2012, Chavez pled guilty to the indictment. As part of his plea agreement, Chavez was required to forfeit the firearm and ammunition that were in his possession on April 14, 2011.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Louis E. Valencia.
Ottumwa Man Is Sentenced to 87 Months Imprisonment for Fraudulent Investment SchemeRead the Press Release
DES MOINES, IA – United States District Court Judge John Jarvey sentenced John Francis Holtsinger, age 52, of Ottumwa, Iowa, to 87 months imprisonment on wire fraud and tax evasion charges, announced U.S. Attorney Klinefeldt. Judge Jarvey also ordered the federal sentence to be served consecutive to a five-year sentence Holtsinger recently received on unrelated state charges. Holtsinger also was ordered to pay $948,239.67 in restitution to the victims of his offense, and will have to serve 60 months of supervised release following the completion of his prison term.
In an earlier hearing, Holtsinger admitted to soliciting and receiving more than $1.1 million from investors in the State of Iowa between 2005 and 2012. He represented to the investors that he would put their money into investment accounts; however, he actually used most of it for personal expenses or to pay back investors whose money he had misappropriated earlier.Holtsinger admitted that he ended up exhausting all the funds he received from investors. He then attempted to conceal his fraud by falsely informing the investors that their funds had been frozen as a result of actions taken by state or federal authorities. In reality, the funds were gone.
Holtsinger also admitted during the earlier hearing to attempting to convince investors to lie to law enforcement officers regarding the purpose of the funds they had given him. He instructed them to describe their payments to him as “interest free loans,” when in reality they were investments. Holtsinger also threatened that anyone who cooperated with law enforcement officers would not be repaid.
U.S. Attorney Nicholas A. Klinefeldt said the sentence reflects the seriousness of the offense and should have a deterrent effect on others. “These victims thought they were investing their money in a safe place,” he said. “In reality, it was nothing more than a Ponzi scheme. I am pleased that Holtsinger will have to spend more than seven years in jail as punishment for defrauding people who considered him to be a friend, and I hope his sentence will convince anyone else who might be tempted to engage in similar conduct not to do so.”
The case was investigated by the United States Secret Service, Internal Revenue Service, and Iowa Attorney General’s Office, and was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Odessa Physician Enters Guilty Plea in Connection with A Methamphetamine Distribution and Fraudulent Prescription SchemeRead the Press Release
In Midland, 59–year-old Odessa physician Barrett Doyle Whitefield, faces a mandatory minimum ten-year federal prison term after pleading guilty this morning to conspiring to possess with intent to distribute and distribute controlled substances, announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit.
By pleading guilty, Whitefield admitted that from late 2011, to July 19, 2012, when Drug Enforcement Administration agents and Midland Police Department Narcotics Detectives executed a search warrant at his medical office in Odessa, he wrote prescriptions for hydrocodone to numerous individuals upon request, without examining them, and on some occasions for individuals whom he never saw as patients. Whitefield further admitted that he was aware his co-defendants were selling the hydrocodone pills to other individuals in the Midland/Odessa area. Additionally, Whitefield admitted that he delivered a package of methamphetamine to an individual in Lamesa, TX, at the direction of his co-defendants.
Also this morning, Whitefield’s codefendants, Christina Rene Barfield, Megan Lynn Maner, and Cynthia Marie Constanzo, pleaded guilty to the conspiracy charge. By pleading guilty, Barfield admitted to directing co-defendants to sell hydrocodone and methamphetamine; Maner and Constanzo, to distributing hydrocodone and methamphetamine. Yesterday, co-defendant Cody Wayne Hearn entered a guilty plea to the conspiracy charge and admitted that he filled fraudulent hydrocodone and Xanax prescriptions written by Whitefield and distributed methamphetamine at the direction of Barfield. After pleading guilty, Barfield, Maner, Constanzo and Hearn each face a mandatory minimum of ten years in federal prison. No sentencing dates have been scheduled.
Jury selection for the three remaining co-defendants, Robert Michael Handlon, Matthew Christian Woodside, and Amanda Leigh Glenn, is scheduled for 8:30am on February 11, 2013. All face the same conspiracy to possess with intent to distribute and distribute controlled substances charge.
The case was investigated by the Drug Enforcement Administration and the Midland Police Department. Assistant United States Attorney Brandi Young is prosecuting the case on behalf of the Government.North Wales Man Sentenced for Illegally Exporting GoodsRead the Press Release
PHILADELPHIA - Timothy Gormley, 52, of North Wales, PA, was sentenced today to 42 months in prison for five counts of violating the International Emergency Economic Powers Act (IEEPA). Gormley was employed by Amplifier Research, in Souderton, Pennsylvania, a manufacturer and supplier of microwave amplifiers with both domestic and foreign customers. On November 30, 2011, the Department of Commerce (DOC), Office of Export Enforcement, received a voluntary self-disclosure from Amplifier Research. Many of their products are classified under an Export Control Classification Number and require a license for export to most destinations outside of Europe. These amplifiers are controlled for National Security reasons, and have application in military systems which include radar jamming, weapons guidance systems, and other uses. Amplifier Research became aware that Gormley had committed numerous violations of government regulations, between June 7, 2006 and June 28, 2011.
Gormley pleaded guilty on October 17, 2012, admitting that he had: altered invoices and shipping documents to conceal the correct classification of amplifiers to be exported so that they would be shipped without the required licenses; listed false license numbers on export paperwork for defense article shipments; and lied to fellow employees about the status and existence of export licenses. Gormley's actions resulted in at least 50 unlicensed exports of national security sensitive items to destinations including China, India, Hong Kong, Taiwan, Thailand, Russia, Mexico, and other countries. When Gormley admitted to the conduct, he explained it by saying he was "too busy" to obtain the licenses. Gormley claimed he was overwhelmed at work and that was his only excuse.
In handing down her sentence, U.S. District Court Judge Gene E.K. Pratter cited the risk to the community in allowing National Security goods to be exported without proper licenses and the need for deterrence. In addition to the prison term, Judge Pratter ordered three years of supervised release and fined Gormley $1,000.
The case was investigated by the Department of Commerce and was prosecuted by Assistant United States Attorney Nancy Winter.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525North Tonawanda Man Sentenced in Pharmacy BurglaryRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Timothy J. Lichtenburger, 30, of North Tonawanda, N.Y., who was convicted of burglarizing a pharmacy and possession with intent to distribute the various controlled substances taken in the burglary, was sentenced to 70 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on May 15, 2011, the defendant broke into the Rite Aid Pharmacy at 1381 Nash Road, in the City of Tonawanda, on two separate occasions and stole in excess of $26,000 worth of various Schedule II, III and IV controlled substances. Lichtenburger then distributed the narcotic prescription pain pills between the date of the burglary and his arrest on May 21, 2011. The defendant was also ordered to pay restitution to Rite Aid in the amount of $27,197.37.
The sentencing is the culmination of an investigation on the part of the North Tonawanda Police Department Detective Bureau, under the direction of Police Chief Randy Szukala, and Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.
North Suburban Man Sentenced to 10 Years in Prison for $4 Million Fraud of 50 Investors in Sleep Disorder BusinessesRead the Press Release
CHICAGO — A north suburban man with a history of multiple bankruptcies, financial schemes and civil lawsuits that twice resulted in contempt findings, was sentenced today to 10 years in federal prison for fraudulently obtaining more than $4 million from 51 investors in a now-defunct sleep disorder businesses that he operated in Northbrook. The defendant, KENNTH A. DACHMAN, pleaded guilty without a plea agreement last October to 11 counts of wire fraud. The government established that Dachman misappropriated at least $2 million of comingled funds from investors and the companies to benefit himself and his family.
Dachman, 52, of Glencoe and formerly of Lake Forest, was ordered to pay both restitution and forfeiture totaling just over $4 million each by U.S. District Judge James Zagel, who set a hearing for Jan. 30 to decide when Dachman will begin serving his sentence. Judge Zagel also placed Dachman on three years of supervised release following his sentence.
“His business was not sleep apnea but putting money in his pocket,” Judge Zagel said in imposing the sentence. Three investors spoke at the sentencing hearing and told the judge that Dachman’s crimes had seriously affected their lives and retirement security. The sentence was announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Dachman operated Central Sleep Diagnostics, LLC, which purported to treat sleep apnea and sleep-related illnesses by conducting diagnostic studies in a patient’s own home instead of a hospital or clinic, and Advanced Sleep Devices, LLC, which purported to sell equipment used to treat sleep disorders to patients. He also operated Key Partners, LLC, to handle marketing for both businesses.
Between June 2008 and September 2010, Dachman fraudulently obtained funds from investors by misrepresenting the use of the funds, the expected return on and risks involved in investments, his business background, the financial condition of Central Sleep and Advanced Sleep and the status of investments. Instead of using the funds to operate the businesses as he promised, Dachman used a significant amount of the investors’ funds to purchase a two-acre mansion in Lake Forest, to operate a tattoo parlor in Chicago that was co-owned by his son-inlaw, to purchase vacations and cruises for himself and his family to Italy, Nevada, Florida and Alaska, to purchase a new sport utility vehicle, to fund personal gambling in Las Vegas and stock trading, and to purchase rare books and antiques.
According to the indictment, Dachman and an individual he retained as director of investor relations offered and sold at least three forms of investments in Central Sleep and Advanced Sleep to the public: an “Assignment of Units” agreement which gave investors units or shares in Central Sleep or Advanced Sleep; a “Convertible Debt Agreement” in which Dachman personally guaranteed he would repay investors’ principal, as well as monthly payments equal to between 5 and 24 percent annually; and an agreement which enabled investors to purchase various sleep-related equipment and lease it back to Central Sleep Diagnostics. Dachman told prospective investors and investors that the funds he raised would be used to purchase sleep-related equipment, to rent office space, to set up the companies’ offices, to hire and pay administrative personnel, and to retain and pay physicians to review sleep diagnostic studies.
From July 2008 through January 2009, Dachman falsely represented to the first 15 investors in Central Sleep that their combined funds of approximately $1.4 million would be used to open and operate Central Sleep. In fact, he intended to and did use almost $1 million of these funds for his own use and benefit, including more than $200,000 for personal stock trading, more than $180,000 to operate the tattoo parlor, Windy City Ink, and more than $160,000 to fund checks made payable to himself and his wife, even though at the time, Central Sleep had not received any income from the operation of its business.
Dachman personally guaranteed to repay certain investors’ principal without disclosing that he had almost no assets to fund the guarantees and that he had declared personal bankruptcy on seven prior occasions. Dachman falsely told victims that he had a PhD from Northwestern University, and that he had invested his own funds in Central Sleep, knowing that he had not done so. To induce additional investments as late as March 2010, Dachman represented to investors that Central Sleep was a successful company and was “on pace to be the most important and largest sleep diagnostic firm in the world,” despite knowing that he was draining the financially-troubled business of previous investor funds.
The government is being represented by Assistant U.S. Attorney Sunil Harjani. The U.S. Securities and Exchange Commission assisted the investigation conducted by the FBI.
The Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: www.StopFraud.gov.
Member of Multi-State Pharmaceutical Theft Scheme Admits Possession and Sale of Stolen GoodsRead the Press Release
NEWARK, N.J. – A Florida man today admitted his role in conspiring to possess a stolen interstate shipment of prescription respiratory medicine manufactured by a subsidiary of Mylan Inc., that was stolen while on route by tractor-trailer from Texas to a customer in Florida, U.S. Attorney Paul J. Fishman announced.
Reynaldo Tapanes, 46, of Miami, Fla., pleaded guilty before U.S. District Judge William J. Martini to an Information charging him with conspiring to possess the stolen prescription medicine, as well as an additional count of conspiracy to receive and sell stolen L’Oreal hair care products.
On May 3, 2012, Tapanes was charged in a Complaint with conspiracy to deal in stolen goods with Ernesto Romero-Vidal, a/k/a “Bemba,” of Hallandale, Fla.; Rocke R. Lopez-Batista, a/k/a “El Nino;” and Ariel Garcia, of Coral Gables, Fla. Tapanes and Romero-Vidal were charged with conspiracy to receive and sell the stolen L’Oreal hair care products, and Tapanes, Lopez-Batista, and Garcia were charged with conspiracy to possess the stolen Mylan pharmaceuticals. Romero-Vidal and Lopez-Batista were also charged with conspiracy to receive and sell stolen Sandoz prescription respiratory medicine.
Eight other defendants were also charged on May 3, 2012, in two separate Complaints, as part of the same long-term investigation by the FBI into illegal trafficking of pharmaceuticals and other stolen goods.
According to documents filed in this case and statements made in court:
On Sept. 8, 2009, a tractor-trailer containing pharmaceutical products manufactured by a subsidiary of Mylan Inc., was stolen in Tampa. Mylan has estimated the value of the stolen pharmaceuticals – which included Ipratropium Bromide Inhalation and Albuterol Sulfate Inhalation Solutions – to have a wholesale acquisition cost (WAC) of approximately $264,000.
Tapanes admitted that from September 2009 through October 2009, he conspired with others to possess the stolen prescription respiratory medicine. On Oct. 20, 2009, Tapanes and a conspirator delivered samples of the stolen prescription medicine to a confidential source in Elizabeth, N.J. Nine days later, Tapanes and a conspirator delivered a tractor-trailer containing the stolen prescription respiratory medicine to the confidential source. Tapanes admitted that he received a payment. Later that same day of $140,000 in cash at the home of one of the conspirators in payment for the sale and delivery of the stolen prescription respiratory medicine.
Tapanes admitted he conspired with others to receive and sell the stolen L’Oreal hair care products. On Oct. 21, 2009, Tapanes and a conspirator delivered the stolen L’Oreal hair care products to a warehouse in Newark. The products had been shipped from Ohio and were destined for a customer in Florida when they were stolen in Florida in August 2008. L’Oreal has estimated the value of the stolen hair care products – which included shampoo, mousse, and hair color gels – to have a WAC of approximately $330,000. Tapanes also admitted that he and a conspirator received approximately $40,000 in cash from a confidential source in a Toys-R-Us parking lot in North Bergen, N.J., for the sale and delivery of the stolen goods.
The charges against the other defendants remain pending. These charges are merely accusations, and all defendants are considered innocent unless and until proven guilty.On both of the conspiracy counts, Tapanes faces a maximum potential penalty of five years in prison and a fine of $250,000 on each count. Sentencing is scheduled for April 25, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; and detectives of the North Bergen Police Department, under the direction of Chief Robert J. Dowd, for the investigation leading to today’s guilty plea.
The government is represented by Special Litigation Counsel Leslie Faye Schwartz and Assistant U.S. Attorney Jane H. Yoon of the U.S. Attorney’s Office Criminal Division in Newark.
13-032Defense Counsel: John C. Whipple Esq., Chatham, N.J.
Tapanes, Reynaldo Information
Maxton Man Sentenced for Drug TraffickingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrance W. Boyle sentenced ALEX MICHAEL LOCKLEAR, 61, of Maxton, North Carolina, to 300 months imprisonment followed by 5 years supervised release.
On October 4, 2012, LOCKLEAR pled guilty to conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and 28 grams or more of cocaine base (crack), in violation of Title 21, United States Code, Section 841(a)(1) and all in violation of Title 21, United States Code Section 846.
The evidence presented at the sentencing hearing revealed that LOCKLEAR was a significant trafficker of cocaine who from at least 2005 until the time of his arrest on August 3, 2012, was responsible for the distribution of over 185 kilograms of cocaine.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the North Carolina State Bureau of Investigation, and the Robeson County Sheriff’s Office.
Maryland Man Sentenced to More Than Eight Years in Prison for Distribution of Child PornographyRead the Press Release
WASHINGTON - Tonio Calhoun, 31, of Bowie, Md., was sentenced today to 100 months in prison for distribution of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Calhoun pled guilty to the charge in October 2012 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable John D. Bates. Upon completion of his prison term, Calhoun will be placed on 10 years of supervised release. He also must register as a sex offender for 25 years.
According to the government’s evidence, in April 2012 an undercover officer with the FBI's Child Exploitation Task Force entered a social network site. Between April 30, 2012, and June 13, 2012, the undercover officer and defendant communicated by e-mail and text message. During this time, Calhoun sent the officer two images of child pornography and expressed interest in getting together for the purpose of photographing young girls in public. On June 13, 2012, Calhoun traveled to a previously arranged meeting place where he was arrested.
Following the arrest, law enforcement reviewed the defendant’s cellphone, laptop computer and mail accounts and identified more than 80 videos of child pornography and more than 300 other images of child pornography.
This case was investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 those who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Acting Assistant Director in Charge Smith and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Julieanne Himelstein, who provided assistance in the case, and Assistant U.S. Attorneys Cassidy Kesler Pinegar and Amy Zubrensky, who prosecuted the matter.
13-014Manhattan U.S. Attorney Charges Yonkers Pharmacy Store Manager with Illegal Distribution of OxycodoneRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian R. Crowell, the Special Agent in Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), announced the arrest today of JI YUN LEE for conspiring to distribute oxycodone and for distribution of oxycodone at a pharmacy (the “Pharmacy”) in Yonkers, New York. LEE will be presented later today before U.S. Magistrate Judge Kevin N. Fox.
Manhattan U.S. Attorney Preet Bharara said: “Our society is in the throes of its own ‘opiates war’ and some pharmacies are serving more as pass-through ‘opiate dens’ than as legitimate professional dispensers of dangerous drugs. As alleged, Ji Yun Lee exploited his access to highly addictive pain medication and functioned as a ‘go-to’ prescription pill dispenser for those who were willing to pay his inflated prices. The number of people who die from prescription pill abuse ever year is staggering and bears repeating – almost 16,500 – which is more than illegal street drugs like heroin and cocaine combined. We are bound and determined to thwart those who facilitate the spread of this epidemic and to ensure that they are prosecuted for their crimes.”
Special Agent-in-Charge Brian R. Crowell said: “The perception that illegal prescription drug abuse is a safer high than street drugs, has spread like wildfire through our communities. According to the Drug Abuse Warning Network (DAWN), visits to hospital emergency rooms involving the misuse or abuse of pharmaceutical drugs have doubled over the past five years and there were more visits from pharmaceutical drug overdoses than all other illicit drugs combined. Over 7 million Americans reported using prescription medication for non-medical purposes and the rate is steadily rising each year as opiate abusers find new methods of obtaining diverted medication. As alleged, Ji Yun Lee took advantage of his position to allegedly accept and fill fraudulent prescriptions in exchange for money, just like a street dealer who puts lives at risk throughout our community. The investigations of medical professionals who choose the path to intentionally fuel this deadly threat to our society, just like traditional heroin traffickers, are one of our highest investigative priorities.”
The following allegations are based on the Complaint unsealed today in Manhattan Federal Court:
From 2011 to January 2013, LEE served as the store manager at the Pharmacy in Yonkers, New York, but was not a licensed pharmacist or physician in the State of New York. The investigation revealed that LEE was distributing large amounts of oxycodone by filling prescriptions for several individuals that he knew were fraudulently issued without a legitimate medical purpose. A confidential informant (“CI-1”) told law enforcement that LEE filled multiple fraudulent oxycodone prescriptions for CI-1 each month beginning in early 2011, prior to the time that CI-1 began working with law enforcement. LEE never requested identification prior to filling the fraudulent prescriptions. When CI-1 presented the fraudulent prescriptions, CI-1 would initially provide them to an employee of the Pharmacy, who would in turn provide them to LEE who would then approach CI-1, tell CI-1 when the oxycodone would be ready and what the price would be. LEE typically charged $1,075 for 180 30-milligram oxycodone pills.
When presented with a prescription from CI-1, LEE would enter information from the fraudulent prescription into a computer, return the prescription to CI-1, and provide a time that the oxycodone would be ready. Legitimate pharmacies retain prescriptions at the time they are initially presented for their records and for reporting requirements. According to CI-1, LEE engaged in this unusual practice to avoid a situation whereby other co-conspirators – who sometimes knew when fraudulent prescriptions were brought to the Pharmacy by others, and knew the fake names on those prescriptions – would visit the Pharmacy before the person who had dropped off the prescription and, without that person’s knowledge or permission, pick up the oxycodone.
A second confidential informant (“CI-2”) also knew that fraudulent oxycodone prescriptions were filled at the pharmacy. Together, CI-1 and CI-2, working with law enforcement, presented multiple fraudulent oxycodone prescriptions to LEE from September 2012 to January 2013, which LEE filled and the confidential informants paid for in cash. On at least two occasions, the names on the prescriptions provided to LEE were for people of different genders than those of the confidential informants. CI-1 and CI-2 would provide cash in exchange for the oxycodone, often placing the cash into paper or plastic bags, which were then handed to LEE. A review of the Pharmacy bank records revealed monthly cash deposits between January and September 2012 of over $100,000.
Records from the DEA and New York State’s Bureau of Narcotics Enforcement revealed that:
o The number of oxycodone dosage units purchased by the Pharmacy in 2012 is more than double the number of oxycodone dosage units purchased by any other pharmacy in the same zip code.
o The number of dosage units of oxycodone purchased by the Pharmacy more than doubled from 2010-2011 and then again more than doubled from 2011-2012.
o Many of the oxycodone prescriptions issued by the same practitioner contained sequential serial numbers, and were paid for in cash.
If convicted of the charges in the complaint, LEE faces a maximum penalty of 20 years in prison and a fine of $1 million.
Mr. Bharara praised the efforts of the DEA’s New York City Tactical Diversion Squad, comprised of members from the DEA, New York City Police Department, Westchester County Department of Public Safety, the New York State Insurance Bureau, the Rockland County Drug Task Force and the Internal Revenue Service. Mr. Bharara also thanked the Westchester County District Attorney’s Office, comprised of members of the New York State Police, the Yonkers Police Department, and District Attorney Investigators for their work on the investigation. He noted that the investigation is ongoing.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Elisha Kobre is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Ji Yun Lee Complaint
Manhattan U.S. Attorney Charges 13 Members and Associates of Bronx Narcotics Organization with Crack Cocaine and Heroin DistributionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner for the City of New York (“NYPD”), announced today the unsealing of an Indictment charging 13 members and associates of a drug trafficking organization (the “Organization”) operating in the Bronx with narcotics trafficking. Of the defendants charged, all thirteen defendants were arrested today, including four defendants who were already in custody on state charges that have been transferred to federal custody. Eleven defendants arrested today were presented in Manhattan federal court before Chief United States Magistrate Judge Kevin Nathaniel Fox. The case has been assigned to U. S. District Judge Deborah A. Batts.
Manhattan U.S. Attorney Preet Bharara said: “Today we continue our efforts to rid the Southern District of drug trafficking crews who peddle their lethal product in our neighborhoods, this time by taking down an alleged group of crack cocaine and heroin dealers in the Bronx. This case is the latest example of law enforcement working together to keep our neighborhoods safe.”
FBI Assistant Director-in-Charge George Venizelos said: “Crack and heroin are a blight on the communities they infest. Even absent the violence that almost always comes with the territory, there would be reason enough to target drug trafficking. But it isn’t just a matter of stopping the spread of poison. Drug trafficking entails violence with such frequency that curbing drug activity means reducing violent crime.”
NYPD Commissioner Raymond W. Kelly said: “Just as the NYPD collaborates with landlords in our "Clean Halls" program to suppress drug dealing and its associated violence in privately-owned buildings in the Bronx, we collaborated with the FBI and Federal prosecutors to suppress drug trafficking in and around Bronx public housing in this case. Residents of crime-prone neighborhoods deserve a modicum of safety others take for granted. Thanks to the detectives, agents and prosecutors who worked together on this case, law-abiding residents of the Bronx are that much safer today.”
According to the allegations in the Indictment filed in Manhattan federal court, other publicly filed documents, and statements made in court earlier today:
Since at least June 2012, the Organization’s members have sold crack cocaine and heroin to street level drug customers, and supplied it to other Bronx drug dealers, primarily in and around the John Adams Housing Project near Tinton Avenue in the Bronx.
The investigation into the Organization’s narcotics trafficking included the court-authorized interception of phone calls and text messages to and from the cellular telephone of a member of the Organization, as well as a number of controlled buys of heroin and crack cocaine by a confidential informant. The investigation was conducted in concert with an investigation into the 2010 murder of an individual on Nelson Avenue in the Bronx. The murder was suspected to have been committed by, among others, Jermaine Smalls, a leading member of the Organization. In October 2012, during the course of the investigations, Smalls was shot and killed outside a Manhattan night club. The investigation into both murders continues.
The defendants are charged with one count of conspiring to distribute, and possess with intent to distribute, crack cocaine and heroin, which carries a mandatory minimum sentence of ten years in prison and a potential maximum sentence of life in prison. Charts containing the names, ages, and residences for the defendants are attached.
Mr. Bharara praised the outstanding investigative work of the FBI and the NYPD, and added that the investigation is continuing.
The prosecution is being handled by the Office’s Violent Crimes Unit. Assistant U.S. Attorneys Kan Nawaday and Andrew Bauer are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
Lynnwood Company, Owner and Executives Indicted for Trafficking in Counterfeit GoodsRead the Press Release
A Lynnwood, Washington electronics company, its owner and two company executives, and a Chinese company and its representative were indicted today in U.S. District Court in Seattle for conspiracy to traffic in counterfeit goods, announced U.S. Attorney Jenny A. Durkan. According to the indictment, CONNECTZONE.COM LLC had websites that advertised and sold computer networking products including products bearing trademarks owned by U.S. companies Cisco, but the investigation revealed the company obtained its products from multiple foreign suppliers of counterfeit goods including a Chinese firm, XIEWEI ELECTRONICS.
“Protecting the intellectual property of American companies is critical to job growth and economic recovery – especially in our high tech industries,” said U.S. Attorney Durkan. “I commend the dedicated investigators who uncovered this scheme.”
Three of the individuals charged will appear in court tomorrow, January 18, 2013. The CONNECTZONE.COM LLC defendants include: DANIEL OBERHOLTZER, 50, of Lynnwood, the company owner; WARREN LANCE WILDER, 46, of Auburn, the sales manager; and EDWARD VALES, 31, of Seattle, the production manager. SHENZHEN XIEWEI ELECTRONIC LTD, headquartered in Shanghai, China and its representative MAO MANG, aka “BOB MAO” are also indicted.
The indictment alleges that as early as 1997, while the company was operating as Electro Products, Incorporated, it was distributing counterfeit equipment manufactured in China. The indictment alleges that DANIEL OBERHOLTZER, LANCE WILDER and EDWARD VALES would advise BOB MAO and XIEWEI ELECTRONICS and other Chinese companies regarding how to manufacture products that would look like genuine Cisco trademarked goods. Some of the goods would be labeled “samples” when shipped to the U.S. to try to deceive U.S. Customs officials. The U.S. based conspirators falsely advertised the counterfeit goods as genuine and offered it for sale at a much lower price than genuine Cisco equipment. The indictment describes the various emails sent between the conspirators as they ran their scheme. In addition to the conspiracy count, the indictment also charges two counts of mail fraud and four counts of trafficking in counterfeit goods.
“Counterfeiting high dollar goods can be very lucrative for enterprising criminals,” said Brad Bench, special agent in charge of HSI Seattle. “Their illicit activities ultimately come at the expense of trademark owners and consumers. They don’t contribute to research and development and the knockoffs they sell generally don’t match the quality and safety of genuine items.”
Conspiracy to traffic in counterfeit goods is punishable by up to ten years in prison and a $2 million fine; Mail fraud is punishable by up to 20 years in prison and trafficking in counterfeit goods is punishable by up to 10 years in prison. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Seattle-Tacoma Border Enforcement Security Task Force (BEST) led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) with the Seattle Police Department, the Port of Seattle Police Department and assistance from U.S. Customs and Border Protection Office of Field Operations (CBP OFO). BEST Seattle is comprised of full time members from HSI; CBP OFO; the U.S. Secret Service; the Port of Seattle Police Department; the U.S. Coast Guard Investigative Service; and the FBI. The BEST investigates smuggling and related crimes and combats criminal organizations seeking to exploit vulnerabilities at the Seattle and Tacoma seaports and adjacent waterways.
The case is being prosecuted by Assistant United States Attorney Norman Barbosa.
London Doctor Admits Evading Hundreds of Thousands of Dollars in TaxesRead the Press Release
LONDON, KY - A London, KY., physician, who worked in eastern Kentucky and Tennessee, admitted he evaded hundreds of thousands of dollars in federal income taxes.
Werner Grentz, 64, pleaded guilty today to tax evasion in front of U.S. District Judge Gregory F. Van Tatenhove. As part of his plea, Grentz agreed to pay the IRS approximately $900,000.
Grentz admitted he made $356,073 in taxable income in 2009 working as an independent physician contractor for a hospital in Jellico, Tenn., and a medical office in London, Ky. In order to hide his income, Grentz had his earnings deposited into bank accounts of companies that he controlled, and he did not file a tax return or pay federal income taxes.
Grentz admitted that he failed to pay $900,068 in taxes since 1999. He was indicted in April of last year.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement today.
The investigation preceding the indictment was conducted by the Internal Revenue Service, Criminal Investigation Division. The United States is represented in the case by Assistant United States Attorney John Patrick Grant.
Grentz is scheduled to appear for sentencing on May 16 at 2:30 p.m., in Federal court in London. He faces a maximum prison sentence of five years. However, the court must consider the United States Sentencing Guidelines and the federal statute before imposing a sentence.
Logan County Man Pleads Guilty to Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Mickell Close, 31, of Quincy, Ohio pleaded guilty in U.S. District Court to one count of using minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, William A. Hayes, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, Franklin County Sheriff Zach Scott who heads the Franklin County Internet Crimes Against Children (ICAC) Task Force, and Logan County Sheriff Andrew J. Smith announced the plea entered today before U.S. District Judge Edmund A. Sargus Jr.
According to a statement read by an HSI agent during the hearing, law enforcement officials patrolling the internet in June 2012 identified an email account connected to sharing child pornography. The account was traced to Close.
Further investigation found that Close used his cell phone to secretly record videos of three prepubescent female victims at his residence while the victims were using the bathroom or bathing. Portions of the videos showed close-up depictions focused on the nude genitalia of each of the victims. After recording the videos he made still images from the videos and traded the videos and images with other individuals on the internet in exchange for images and videos of child pornography.
Forensic examination of computers and storage media at Close’s residence revealed at least 34 images of mainly prepubescent females engaged in sexually explicit activity or posed in a sexually explicit manner while in bondage.
“Once images of exploitation are on the internet, they never go away,” U.S. Attorney Stewart said. “This adds to the indignity and humiliation the victim is already facing.”
Logan County Sheriff’s deputies working with HSI arrested Close on November 9. He has been in custody since his arrest.
“Today's conviction is the first step toward healing for the victims of the depraved acts perpetrated by the defendant in this case,” said William Hayes, acting special agent in charge of HSI Detroit, which covers Michigan and Ohio. “While we cannot restore the innocence stolen from the young victims in cases like these, we will continue to make the aggressive pursuit of their predators among our highest priorities.”
“Individuals who represent the worst of the worst are the reasons why we do what we do,” Franklin County Sheriff Scott said. “Close’s conviction can prevent other children from horrific and unimaginable abuse. It's because of the cooperative effort between all of the agencies that make up the Franklin County Internet Crimes Against Children Task Force and HSI, that predators like Close are identified and brought to justice.”
In the plea agreement, the parties have agreed that a term of incarceration between 252 months and 318 months followed by 20 years under court supervision is the appropriate sentencing range. The court will conduct a pre-sentence investigation before deciding whether or not to accept the terms of the plea agreement.
Close also agreed to forfeit all computer equipment and visual depictions of the child pornography that were seized from him at the time of the execution of the search warrant in this case. The plea agreement also allows the U.S. Probation Office to install monitoring software on any computer he owns, uses or has access to during his period of supervised release. He will also be required to register as a sex offender anywhere he lives, works or goes to school.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. 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 as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Lengthy Federal Prison Sentences for Two Providence Felons for Crimes Involving FirearmsRead the Press Release
PROVIDENCE, R.I. – For the second time this week, a federal court judge has sentenced a previously convicted felon to a lengthy federal prison sentence for crimes involving the use or possession of a firearm, announced United States Attorney Peter F. Neronha; Providence Police Chief Colonel Hugh T. Clements, Jr; and Guy N. Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Boston Field Office.
U.S. District Court Judge William E. Smith on Wednesday sentenced Juan Colon, 22, of Providence, to 96 months in federal prison. Colon was convicted by a federal court jury in September 2012 on drug trafficking and firearm charges, brought as a result of a Providence Police investigation into Colon’s drug trafficking activities. At the time of Colon’s arrest in December 2011, Providence Police seized three loaded firearms and more than 100 rounds of ammunition associated with the defendant.
On Monday, Alphonso D. Johnson, 38, of Providence, a career offender, was sentenced by U.S. District Court Judge John J. McConnell, Jr. to 312 months in federal prison for robbing a Providence convenience store clerk at gunpoint in April 2011, and for robbing and assaulting a Providence restaurant owner with a pistol two days later. Johnson pleaded guilty on October 10, 2012, to two counts of Hobbs Act robbery, two counts of being a felon in possession of a firearm, and use and possession of a firearm during a crime of violence.
United States Attorney Peter Neronha commented, “As I stated earlier this week, I am pleased that, working with the Providence Police Department and with Attorney General Peter Kilmartin, we continue to bring gun-wielding criminals to justice, whether in federal or state court. These cooperative efforts are essential to removing illegal guns from the streets to ensure that our neighborhoods are safe for all Rhode Islanders.”
Providence Police Chief Colonel Hugh T. Clements, Jr. said, "Thanks to the continued hard work and collaboration between the Providence Police Department and our federal partners in law enforcement, two dangerous criminals no longer threaten our community. I commend the U.S. Attorney’s Office for its successful prosecution of these men, and look forward to future cooperation between our agencies."
“The Bureau of Alcohol, Tobacco, Firearms and Explosives will continue to work with our law enforcement partners, in these cases the Providence Police Department, to investigate career criminals who commit firearms related crime,” stated ATF Special Agent in Charge Guy N. Thomas, Boston Columbus Field Division. “The lengthy sentences both individuals received should send a clear message to others who commit firearm related violent crime.”
According to evidence presented to a federal jury, a court authorized search of Juan Colon’s residence on December 5, 2011, resulted in the seizure of a loaded firearm which Colon attempted to hide as officers entered the residence, a significant quantity of ammunition, and various quantities of cocaine and marijuana. A search of two vehicles parked outside of Colon’s residence resulted in the seizure of two loaded firearms and $10,000 in cash, all associated with the defendant. On September 13, 2012, a federal jury convicted Colon of possession with intent to distribute marijuana, possession of a firearm by a convicted felon, and possession of a firearm with an obliterated serial number.
At the time of his guilty plea in U.S. District Court on October 10, 2012, Alphonso Johnson admitted to the court that on April 18, 2011, he robbed a Providence convenience store clerk at gunpoint of several hundred dollars in cash, cigarettes and a box of cigars. He also admitted to the court that two days later he robbed a West End restaurant owner at gunpoint of more than $4,300 cash in restaurant proceeds, struck her in the face twice with a .25 caliber pistol and kicked her before fleeing on foot.
Juan Colon was prosecuted by Assistant U.S. Attorneys Paul F. Daly and Milind M. Shah. Alphonso Johnson was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of both of these matters.
Contact: 401-709-5357
[email protected]Leader in Latrobe Homes Drug Conspiracy Exiled to over 10 Years in PrisonRead the Press Release
Distributed Up To a Ton of Marijuana During the ConspiracyBaltimore , Maryland - U.S. District Judge Catherine C. Blake sentenced Raymond Williams, age 36, of Baltimore, Maryland today to 121 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with the intent to distribute between 1,400 and 2,000 pounds of marijuana as part of a drug organization that operated in the Latrobe Homes area of East Baltimore and elsewhere. Judge Blake also ordered that Williams forfeit over $315,000, including $101,580 seized during a search of his home, and a Land Rover.
A total of sixty-six defendants were charged in March 2011 - 31 in federal court and 35 in state court – for dealing drugs at Latrobe Homes in East Baltimore, an area prone to violence and drug activity. The federal indictments alleged that the conspirators obtained heroin and marijuana from suppliers in New York and California, and that violent crimes were committed in furtherance of the conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Robert Brisolari of the Drug Enforcement Administration - Washington Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Williams’ plea agreement, from at least 2008 through March 10, 2011, Williams participated in a conspiracy to distribute drugs in the Latrobe Homes area of Baltimore and elsewhere, purchasing significant quantities of marijuana from suppliers in California, and selling marijuana to other conspirators for further distribution. Between June 2010 and March 2011, Williams, who lives in Maryland, maintained a residence in San Diego, California, which functioned as a distribution center for his drug trafficking operation. Williams used the home to receive large quantities of marijuana, which were then broken down into smaller quantities by Williams and others for shipment to purchasers around the country. Williams oversaw an operation in which he and his associates shipped boxes of marijuana weighing between 10 and 25 pounds each from California to locations in Maryland, New Jersey, and Pennsylvania for distribution in Maryland. Law enforcement agents have identified more than 500 pounds of marijuana shipments associated with accounts Williams maintained at a shipping company between December 2010 and March 2011.
Williams sent some of the proceeds of the marijuana sales back to California to purchase more marijuana for distribution. Williams mailed cash to associates in California, transferred drug proceeds deposited in Maryland bank accounts to individuals in California, and paid couriers to fly to California carrying large amounts of cash on their persons and in their luggage. During the investigation, U.S. Postal Inspectors seized a total of $214,280 in cash from packages mailed or received by individuals associated with the conspiracy, including $15,000 that was seized from a package that, during surveillance of Williams, law enforcement had seen being mailed on Williams’ behalf. In addition, $101,580 in cash was recovered on March 10, 2011, during a search of Williams’ San Diego house, along with trace amounts of marijuana and handwritten instructions on how to package marijuana for shipment. Williams admits that the money seized was the proceeds of drug trafficking.
All 31 federal defendants have pleaded guilty to their participation in the drug trafficking conspiracy, including Shawn Johnson, age 41, of Bronx, New York, who was sentenced to 160 months in prison; Dana Bowman, age 39 and Donald Wright, age 41; both of Baltimore, who were each sentenced to 151 months in prison; and Antonio McNeely, age 34, of Baltimore, sentenced to 136 months in prison. Another co-defendant, Melvin Thompson, age 31, of Baltimore, Maryland, was sentenced earlier this week to 10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein praised Baltimore City Assistant State’s Attorney Christopher M. Mason who assisted in the federal prosecution, and Baltimore City Assistant State’s Attorneys Tony Gioia, Miabeth Marosy, Jeanne Canal and Anna Mantegna, who are prosecuting related state cases. Mr. Rosenstein thanked Assistant United States Attorney Benjamin M. Block, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Knoxville Woman Sentenced to One Year in Prison for Lying to Court About Cancer DiagnosisRead the Press Release
KNOXVILLE, Tenn. – Angela Elwood, 48, of Knoxville, Tenn., was sentenced on Jan. 17, 2013, by the Honorable Thomas W. Phillips, U.S. District Court Judge, to serve one year in federal prison.
On Aug. 17, 2012, United States Attorney William C. Killian filed an information in U.S. District Court charging Elwood with obstructing justice by lying to the court about having cancer so that she could delay her reporting date to the federal Bureau of Prisons to begin a prison term imposed for a bank fraud conviction.
According to court documents, Elwood admitted that following her bank fraud conviction in 2009, and while awaiting designation and a reporting date to a federal prison facility, she obstructed the due administration of justice by having the Court extend her reporting date to federal prison based on medical documents submitted to the Court that she fabricated to falsely state that she had been diagnosed with breast cancer and needed immediate medical treatment. At the time Elwood submitted the false medical documents to the Court, she already had been told by a medical professional that she in fact did not have breast cancer.
This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney F. M. (Trey) Hamilton III represented the government.
Justice Department Seeks to Shut Down Florida Tax PreparerRead the Press Release
The United States has asked a federal court in Jacksonville, Fla., to stop Thomas G. Bandzul from preparing tax returns for others, the Justice Department announced today. According to the government complaint, Bandzul has repeatedly prepared federal tax returns that unlawfully understate customers’ federal tax liabilities. The suit alleges that Bandzul concocts bogus or inflated deductions, business expenses, education credits and charitable contributions, which he falsely reports on his customers’ federal income tax returns.
The suit alleges that the Internal Revenue Service (IRS) 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.
The suit further alleges that, in some instances, Bandzul filed returns that claimed a refund larger than what Bandzul had disclosed to the taxpayer. Once the refund was paid, Bandzul retained the additional amount without the taxpayer’s knowledge.
Claiming bogus tax refunds is one of the IRS’s Dirty Dozen Tax Scams. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Thomas G. Bandzul
Complaint for Permanent InjunctionJohnstown Man Pleads Guilty to Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court on a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
Douglas Teeter, 37, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on March 13, 2009, Teeter knowingly possessed videos and images as computer graphic files containing images of child pornography, which had been shipped and transported in interstate or foreign commerce by means of a computer.
Judge Gibson scheduled sentencing for June 6, 2013, at 10:30 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Homeland Security Investigations, with the assistance of the Johnstown Police Department, conducted the investigation that led to the prosecution of Teeter.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse, led by the United States Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims.
Jackson Purchase Medical Center Agrees to Pay $850,343.84 to Settle False Medicare BillingsRead the Press Release
– United States alleges violations of the False Claims Act, the Anti-Kickback Statue, and the Physician Self-Referral Law
LOUISVILLE, Ky. – PineLake Regional Hospital, LLC doing business as Jackson Purchase Medical Center (JPMC), has voluntarily entered into a settlement with the United States of America to pay $850,343.84 to settle allegations that the acute care facility submitted or caused to be submitted false claims for payment to the Medicare program in violation of the Federal False Claims Act, the Anti-Kickback Statue, and the Physician Self-Referral Law announced the Office of Inspector General of the Department of Health and Human Services and David J. Hale, United States Attorney for the Western District of Kentucky.
“Pursuing health care fraud is a priority of my Office and the Department of Justice. We will continue to work with the Department of Health and Human Services to ensure that medical providers who overbill Medicare are investigated,” stated David J. Hale, United States Attorney for the Western District of Kentucky. “Those that do not follow the rules designed to safeguard our nation’s limited health care resources will be held to account.”
According to the settlement agreement, the United States contends Dr. Raymond Charette, an orthopedic surgeon in private practice, received improper financial benefits from JPMC and, in return, referred patients to and treated patients at JPMC, a 107 licensed bed facility located in Mayfield, Kentucky.
The improper financial relationship, alleged by the United States, between JPMC and Dr. Charette, occurred for a period of seven years beginning in July 2004 through August 31, 2011. The United States alleged that from November 1, 2007, through August 31, 2011, JPMC employed a nurse practitioner who worked primarily and extensively for Dr. Charette; from July 1, 2007, through December 31, 2007, JPMC relieved Dr. Charette from his monetary rental obligations for space in JPMC’s medical building without modifying the lease in a signed agreement; and from July 6, 2004, through August 31, 2011, JPMC failed to collect rent on an equipment lease for an x-ray machine used by Dr. Charette’s medical practice. Having received financial benefits in the form of a Nurse Practitioner and reduced rental obligations, Dr. Charette referred patients to and treated patients at JPMC. As a result of these actions, the United States contends that JPMC submitted claims to Medicare for services rendered to these referred patients in violation, of the False Claims Act, the Anti-Kickback Statue, the Physician Self-Referral Law, and other federal statutes and common law doctrines.
This settlement agreement is neither an admission of liability by JPMC nor a concession by the United States that its claims are not well founded.
This case was prosecuted by Assistant United States Attorney Benjamin S. Schecter and it was investigated by the Office of Inspector General for the Department of Health and Human Services.
Insurance Broker Defrauds Seniors Out of Annuity FundsRead the Press Release
Williamsburg’s William Lowder Pleads Guilty to Wire Fraud and Tax ChargesGRAND RAPIDS, MICHIGAN – William Edward Lowder, age 57, of Williamsburg, Michigan, pleaded guilty to one count of wire fraud and one count of filing a false federal income tax return, U.S. Attorney Patrick A. Miles, Jr. announced today. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation Division, Special Agent in Charge Robert D. Foley III of the FBI, and Sheriff Thomas Bensley of the Grand Traverse Sheriff’s Office.
According to a Felony Information filed on January 9, 2013, Lowder was a licensed insurance agent and annuities producer who operated as Lowder Insurance and Ash Brokerage. Beginning in 2001, Lowder began defrauding several of his elderly clients by convincing them to liquidate existing annuity investments under the promise that the proceeds would be reinvested in annuities earning higher rates of return. After the clients liquidated their annuities, Lowder convinced them to provide the proceeds directly to him for reinvestment. Instead of reinvesting the proceeds, Lowder deposited the proceeds into his own bank account. To conceal his fraud, Lowder provided these clients with false statements of account.
“Vigorous prosecution of professionals who commit financial crimes remains one of the top priorities of this Office,” said U.S. Attorney Miles. “This case is especially troubling given that Mr. Lowder stole significant amounts of money from elderly clients who, like most citizens, rely upon their limited investments to provide for their financial security.” FBI Special Agent in Charge, Robert D. Foley III, agreed, stating “those who target elderly victims, many of whom live on a fixed income, rob them of their hard-earned savings and their security. The FBI is committed to stopping predatory scams against seniors.”
Between 2001 and 2009, Lowder stole in excess of one million dollars from his clients, which he used to fund his own comfortable lifestyle. As part of his plea, Lowder admitted that he did not claim the amounts stolen from his clients as income on his U.S. individual income tax returns from 2006 to 2009, despite knowing that he had an obligation to do so.
“There is never a time when it is okay to steal from someone, especially our seniors. IRS Criminal Investigation is committed to finding these perpetrators and pursuing them to the full extent of the law,” said Special Agent in Charge Erick Martinez..
END
Indictment Returned in Hammond Federal CourtRead 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 that the following Indictments were returned on January 16, 2013:
Brealon B. Miller, Jr., 24, and David L. Hardin, Jr.,22, both of Gary, Indiana, were charged in an Indictment with the robbery of BMO Bank in Hammond, Indiana and use of a firearm in relation to a crime of violence, to wit: armed robbery.Miller was also charged with possession of a stolen firearm.These charges were filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
Octavio Alejandre-Mata, 44, of Hobart, Indiana, was charged in an Indictment with four counts of distribution of cocaine and one count of being an illegal alien, having been previously deported from the United States.These charges were filed as the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Allen Ray Evens, 24, of Gary, Indiana, was charged in an Indictment with two counts of possession of a firearm by a convicted felon.These charges were filed as the result of an investigation by the by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Nicholas Padilla.
Charles E. Johnson, Jr., 32, of Gary, Indiana, was charged in an Indictment with one count of possession with the intent to distribute crack cocaine.These charges were filed as the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Hyattsville Man Sentenced to 12 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Juan Alvizures Oliva, age 30, of Hyattsville, Maryland, today to 12 years in prison, followed by five years of supervised release, for production and possession of child pornography. Oliva will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). It is expected that Oliva will be deported upon his release from prison.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“Crimes against children and others who are most vulnerable in our community are inexcusable,” said Prince George’s County Police Chief Mark Magaw. “I am proud of the work the Prince George’s County Police Department and our law enforcement partners did to arrest and prosecute Oliva to ensure he can’t harm anyone else.”
According to his plea agreement, on February 20, 2011, Oliva engaged in sexually explicit conduct with a four year old female, whom he was babysitting at the time. Oliva also had the child take off her clothes and expose her genitals and used his cell phone to take a photograph of the child in that state.
On April 4, 2011, Oliva was interviewed and admitted his conduct. Oliva’s cell phone and home computer were seized and forensically examined by law enforcement. The photo Oliva had taken of the victim was found on his cell phone and had also been uploaded onto the computer for availability to distribute.
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 "resources" tab on the left of the page.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas, assigned from the Department of Justice Child Exploitation and Obscenity Section, who prosecuted the case.
Huntsville Army Officer Convicted of False Statements and Theft of Government PropertyRead the Press Release
HUNTSVILLE – A federal jury today convicted a U.S. Army officer for making false statements to a department of the United States and for stealing government property, announced U.S. Attorney Joyce White Vance and John F. Khin, special agent in charge, Defense Criminal Investigative Service, U.S. Department of Defense.
The jury convicted Lt. Col. James O. McLinnaham, 45, who is stationed at Redstone Arsenal in Huntsville, after a three-day trial before U.S. District Judge Abdul K. Kallon. The jury found McLinnaham guilty of three counts of making false statements on official, confidential disclosure forms; one count of making false statements in a questionnaire for national security clearance; and three counts of making false statements in work orders submitted to the Army print shop.
Evidence at trial showed the defendant had certified that the financial disclosure forms were true when he had failed to disclose his position with an outside business, and to having received wages and other payments from that business. The evidence showed that the defendant had certified that his questionnaire for national security clearance was true when he had failed to disclose his association with the same business, a prior marriage, and a prior misdemeanor arrest. The defendant was required to fill out all these forms as part of his official duties with the U.S. Army.False statements on the work orders related to McLinnaham certifying that posters printed and mounted by the Army print shop were for official purposes when they were actually for his outside business. The theft of government property charge related to the same posters, and to the defendant obtaining a conference table from Redstone Arsenal for which his business received a $400 credit toward the purchase of another conference table from a local furniture store.
“The citizens are entitled to expect honesty and integrity from all government employees, including military personnel,” Vance said. “This case is important because it demonstrates our commitment to investigating and prosecuting those who do not live up to the trust that our citizens have placed in them,” she said.
The defendant faces a maximum sentence of five years in prison and a $250,000 fine for the false statement charges. He also faces a maximum sentence of 10 years in prison and a $250,000 fine for the theft charge.
McLinnaham is tentatively scheduled for sentencing in April.
The case was investigated by the Defense Criminal Investigative Service, with assistance from the U.S. Army Criminal Investigation Command, and the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorneys Russell E. Penfield and Terence M. O’Rourke prosecuted the case.
Hudson County, N.J., Man Indicted for Distributing Images of Child Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A Hudson County, N.J., man was charged today in an Indictment with one count each of possessing and distributing images of child sex abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Jonathan Martin, 23, of Jersey City, N.J., and Short Hills, N.J., was previously arrested on a Complaint and is currently in federal custody.
According to documents filed in the case and statements made in court:
On August 7, 2012, special agents of the FBI executed a search warrant at Martin’s Jersey City residence and seized digital evidence containing more than 2000 images depicting child sexual abuse, including prepubescent minors and portrayals of sadistic or masochistic conduct. The digital evidence seized included 50 files previously downloaded from Martin by law enforcement agents working in an undercover capacity on a publicly available peer-to-peer network.
On the distribution count, Martin faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years, and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, Newark Division’s Child Exploitation Task Force, under the direction of Acting Special Agent in Charge David Velazquez, and the Jersey City Police Department, under the direction of Acting Police Director Robert Kakoleski and Chief Thomas Comey with the investigation leading to today’s Indictment.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Alan Zegas Esq., Chatham, N.J.Martin, Jonathan Indictment
Hualapai Nation Tribal Member Sentenced to Prison for Assault on A Federal OfficerRead the Press Release
PHOENIX – On Jan.14, 2012, Jordan Reed Sumatzkuku, 25, of Peach Springs, Ariz., was sentenced by U.S. District Judge David G. Campbell to 36 months in prison. Sumatzkuku was also sentenced to 12 months in prison for violating his supervised release in another case. The sentences were ordered to run consecutively for a total sentence of 48 months in prison, followed by a term of three years of supervised release. Sumatzkuku, a member of the Hualapai Nation Indian Tribe, pleaded guilty on Nov. 7, 2012 to assault on a federal officer. Sumatzkuku’s sister, co-defendant Raema Sumatzkuku, was sentenced to 12 months in prison for assault on a federal officer on Dec. 17, 2012.
According to court records, on July 2, 2012, when a Hualapai Nation Police Officer tried to arrest Sumatzkuku’s sister, Sumatzkuku grabbed the officer, knocked him to the ground, and wrestled with the officer. The victim sustained a fracture to his left foot as a result of the assault.
The investigation in this case was conducted by the Hualapai Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8182-PCT-DGC
RELEASE NUMBER: 2013-005_SumatzkukuFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Houston Area Man Handed 45 Years for Multiple Child Pornography ConvictionsRead the Press Release
Defendant calls himself a “monster” during the hearing
HOUSTON - DJ Christopher Lowe, 37, has been sentenced to a total of 540 months in federal prison for his convictions of possession, distribution as well as production of child pornography, United States Attorney Kenneth Magidson announced today. Lowe pleaded guilty Dec. 2, 2011, admitting he exploited six different children in order to produce child pornography.
Just moments ago, U.S. District Judge Ewing Werlein Jr. handed Lowe the statutory maximum of 360 months for each of three counts of sexual exploitation of children (production of child pornography) and 120 months for the possession charge all to run concurrently with each other and to the 240-month sentence for the distribution conviction. He was further ordered to serve 180 months for three additional charges of sexual exploitation of children which will run concurrently to one another but consecutively to the other sentences imposed today for a total sentence of 540 months. Lowe will also have to serve the rest of his life on supervised release following completion of that prison term and pay an $8000 fine.
Lowe spoke at the hearing and called himself a monster.
In handing down the sentence, U.S. District Judge Ewing Werlein Jr. noted that someone who victimizes half a dozen children requires a sentence that would deter others from becoming the monster as Lowe described himself to be. He called Lowe’s conduct “reprehensible,” and noted that each child should be considered of independent worth. He further noted that Lowe’s collection of pornographic images and videos was one of the largest he had ever seen.
The production and distribution charges occurred as far back as 2009 and June 2010, respectively, while he possessed the child pornography as recently as Aug. 13, 2010.
Lowe’s activities were discovered when an individual was arrested on similar charges in Italy. On that man’s computer, were child pornography images and chats between he and Lowe, including child pornography images/videos of Lowe’s own relatives. Based on the information obtained in Italy, a federal search warrant was executed on Lowe’s home in Houston on Aug. 13, 2010, at which time, more than 17,000 images and hundreds of videos of child pornography were found. All of the children used in the production of child pornography have been identified and were, at the time of Lowe’s arrest, as young as two years old.
At the time the warrant was executed, Lowe was interviewed and admitted to downloading, possessing and distributing child pornography. He acknowledged his communication with the Italian individual and exchanging digital images and videos of child pornography with him.
Lowe will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Lowe are the result of an investigation conducted by members of the Innocent Images Unit of the Houston FBI, which focuses its attention on investigating offenses involving the exploitation of children via the Internet.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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."
Homedale Man Pleads Guilty to Possessing Sexually Explicit Images of MinorsRead the Press Release
BOISE – David Jay Wheeler, 70, of Homedale, Idaho, formerly of Declo, Idaho, pleaded guilty today in U.S. District Court in Boise to possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, members of the Idaho Internet Crimes Against Children (ICAC) Task Force received information that between at least September 2011 and April 4, 2012, Wheeler had regularly used peer-to-peer file sharing software on his computer to access child pornography. A search warrant was executed at his home in Declo, which resulted in the seizure of a computer and computer storage media that contained sexually explicit images and videos of minors as young as four years of age. Court records state that Wheeler was sitting at a desktop computer and was in the process of downloading child pornography videos at the time the investigators executed the search warrant.
The National Center for Missing and Exploited Children reviewed the child pornography seized from Wheeler and reported that the material had been produced depicting child sexual abuse victims from Idaho, Washington, Montana, Colorado, North Carolina, Pennsylvania, Texas, Nevada, Hawaii, California, Illinois, Delaware, Georgia, Florida, New Hampshire, New Jersey, the Netherlands, France, United Kingdom, Belgium, Italy, Germany, Ukraine, Canada, Denmark, Sweden, Germany, Norway, Austria, and Brazil.
The charge of possessing sexually explicit images of minors carries a maximum punishment of up to ten years in prison, a fine up to $250,000, and a minimum term of five years up to lifetime supervised release.
Wheeler is set for sentencing on April 9, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by officers from the Boise Police Department, assisted by agents and investigators from the Idaho Attorney General's Office, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Idaho State Police, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), all members of the ICAC Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Fraudulent Tax Return Scheme Nets Prison TermRead the Press Release
TUCSON, Ariz. -- On Jan. 16, 2013, Corleen Ladawn Thompson, 36, of Casa Grande, Ariz., was sentenced by U.S. District Judge Raner C. Collinsto 37 months in federal prison and was ordered to pay $403,002.00 in restitution. After her release from prison, Thompson will serve a term of 36 months supervised release. Thompson pleaded guilty on Nov. 7, 2012, to conspiracy to defraud the government-false claims
“Because tax fraud undermines the integrity of our income tax system and therefore impacts all of us as taxpayers, our office places a high priority on the investigation and prosecution of this type of crime,” said U.S. Attorney Leonardo.
Thompson admitted that from March 13, 2010, and continuing through Jan. 28, 2012, she and others conspired to defraud the United States government by filing false and fictitious tax returns which falsely claimed refunds. At least 150 false federal individual income tax returns were filed claiming $548,653.00 false refunds. Thompson offered to pay various sums of money to people whose identities were used. Some of the identity information used by Thompson was passed, by her, or to her, by inmates at detention facilities. Thompson provided or was provided names, social security numbers and dates of birth to use in filing false federal income tax returns. Some of the individuals in whose name false claims for refunds were filed were, in fact, inmates in state and local detention facilities. Thompson and others electronically submitted the false income tax returns to the Internal Revenue Service through the internet.
The investigation in this case was conducted by Internal Revenue Service Criminal Investigation, Arizona Department of Public Safety, Pinal County Attorney’s Office, and the Casa Grande Police Department. The prosecution is being handled by Danny N. Roetzel, Trial Attorney, Department of Justice, Tax Division and Sandra M. Hansen, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-12-000766-RCC
RELEASE NUMBER: 2013-006_ThompsonFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Former Wilkes-Barre, Pa. Football Coach Pleads Guilty to Producing Child Pornography, Interstate Extortion and Cyber StalkingRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Joseph J. Ostrowski, age 29, of Wilkes-Barre, pleaded guilty today before Senior United States District Court Judge Edwin M. Kosik to producing and attempting to produce child pornography, interstate extortion, and cyber stalking.
The plea agreement calls for Ostrowski to be sentenced to 25 years in prison, to be followed by a lifetime of supervised release. The court ordered a pre-sentence investigation to be completed after which a date for sentencing will be scheduled.
According to United States Attorney Peter J. Smith, a Superseding Information was filed in December 2012 charging that Ostrowski, a former football coach at Holy Redeemer High School in Wilkes-Barre, persuaded and enticed, and attempted to persuade and entice, minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, including live transmissions via webcam, and used the internet to extort and attempt to extort additional nude photographs, images and live transmissions of sexual conduct from his victims.
Ostrowski was indicted by a federal grand jury in Scranton in May 2012 and taken into custody. He was also indicted for cyber stalking by a federal grand jury in the Western District of Michigan. That case was transferred to the Middle District of Pennsylvania for prosecution.
According to a summary of the Government’s evidence presented at today’s hearing by Assistant United States Attorney Francis P. Sempa, Ostrowski=s production and attempted production of child pornography, interstate extortion activities and cyber stalking occurred during 2006 through May 2012, and involved victims in Pennsylvania, New York, North Carolina, California, Texas, Florida, New Jersey, Michigan, Ohio, Virginia, Minnesota, Indiana, Alabama, and Maryland. Some victims were adults; some were minors; they included students who participated in athletic programs. Ostrowski admitted that he frequently posed as students, school alumni, and other persons and used Facebook, Skype, e-mail, instant messaging, and cellular text messaging to commit the crimes.
Ostrowski's charges resulted from an investigation by the Federal Bureau of Investigation in Scranton and Michigan and the Michigan State University Police.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Upper Big Branch Mine Superintendent Sentenced to PrisonRead the Press Release
IN CONNECTION WITH A FEDERAL INVESTIGATION AT UPPER BIG BRANCH
BECKLEY, W.Va. – Upper Big Branch Mine (UBB) superintendent Gary May was sentenced today to 21 months in prison in connection with a federal investigation at the former Massey Energy Company’s UBB Mine, announced U.S. Attorney Booth Goodwin. Gary May, 43, of Bloomingrose, West Virginia, previously pleaded guilty in March 2012 to conspiracy to impede the Mine Safety and Health Administration's (MSHA) enforcement efforts at UBB between February 2008 and April 5, 2010. Upper Big Branch was the site of a fatal explosion on April 5, 2010 that killed 29 miners. May was the mine's Superintendent at the time of the explosion.
In February 2012, United States Attorney Booth Goodwin filed a one-count information against May, charging him with conspiracy to defraud the United States by impeding MSHA in carrying out its lawful functions, a felony violation of 18 U.S.C. § 371.
U.S. Attorney Booth Goodwin said, "With this sentence, Judge Berger took the opportunity to send a powerful message to this mine manager and other mine managers who would put profits over safety: if you violate mine laws and put miners at risk you will go to jail."
May admitted that he and others conspired to impede MSHA in administering and enforcing mine health and safety laws at UBB. He acknowledged giving advance warning of MSHA inspections, often using code phrases to avoid detection. May also admitted to concealing health and safety violations when he knew inspections were imminent. The violations concealed included poor airflow in the mine; piles of loose, combustible coal; and scarcities of rock dust, which prevents mine explosions.
May further acknowledged that he ordered a mine examination book to be falsified. He also said he told miners to rewire the methane gas detector on a piece of mine equipment so the equipment could run illegally.
The Court also ordered May to pay a $20,000 fine. May was also sentenced to three years of supervised release.
In sentencing May, United States District Judge Irene C. Berger emphasized that his actions risked catastrophic consequences. Judge Berger said that the sentence should send a message to any mine official who might put business interests ahead of safety laws.
The Federal Bureau of Investigation and the United States Department of Labor's Office of Inspector General conducted the investigation. Counsel to the United States Attorney Steve Ruby handled the prosecution.
Former Personal Banker Sentenced to Prison in Bank Fraud Case, Admitted Sharing Personal Information of Account-Holders-Defendant Participated in Identity Theft Scheme Involving $121,400 in Forged Checks-Read the Press Release
WASHINGTON – LeRoy Brown, a former personal banker from Washington, D.C., was sentenced today to six months in prison, to be followed by six months of home detention, for his role in an identity theft scheme involving $121,400 in forged checks, U.S. Attorney Ronald C. Machen Jr. announced.
Brown, 32, pled guilty in October 2012 in the U.S. District Court for the District of Columbia to a charge of conspiracy to commit bank fraud. He was sentenced by the Honorable John D. Bates. As part of his plea agreement, Brown agreed to pay $72,800 in restitution to Wells Fargo Bank, covering the bank’s losses. Upon completion of his prison sentence, Brown will be placed on three years of supervised release.
According to a statement of offense, signed by the defendant as well as the government, Brown and others participated in the scheme from November 2009 until January 2010, conspiring to steal funds from the accounts of customers of Wachovia Bank, now operating as Wells Fargo Bank. Brown began participating in the scheme after he was approached by another person at the bank branch where he worked, in the 1900 block of Seventh Street NW.
The person offered to pay Brown for providing the type of customer information that would be needed to fraudulently obtain funds from customer accounts with balances of at least $15,000. Brown subsequently obtained this information concerning the accounts of seven customers, including their dates of births, addresses, telephone numbers and Social Security numbers. Brown turned over the information and received $2,000 in cash.
Various members of the conspiracy obtained $72,800 and attempted to obtain another $48,600 by forging checks drawn on five of the accounts targeted by Brown. When he was confronted by bank investigators in January 2010, and later when he was arrested in February 2010, Brown admitted that he had illegally accessed the accounts of bank customers, and had provided personal and account information in exchange for money.
In announcing the sentence, U.S. Attorney Machen commended the efforts of those who investigated the case from the Metropolitan Police Department. He also praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Diane Hayes and Lenisse Edloe, and Assistant U.S. Attorney Daniel Friedman, who investigated the matter. Finally, he thanked Assistant U.S. Attorney Matt Graves, who prosecuted the case.
13-013Former Owner of Commercial Mortgage and Finance Company Convicted of FraudRead the Press Release
ROCKFORD — Anthony F. D’Agostino, 79, the former owner, CEO and President of Commercial Mortgage and Finance Co., in Rockford, was found guilty today by U.S. District Judge Frederick J. Kapala on seventeen counts of mail fraud, one count of wire fraud, and one count of securities fraud, in connection with a scheme to defraud investors in Commercial Mortgage. The decision was filed today in U.S. District Court in Rockford, following a six-day bench trial in September 2013.
According to the decision, D’Agostino raised capital for his business by selling instruments known as Promissory Notes and Certificates of Participation to investors. The evidence showed that D’Agostino concealed from the investors the fact that Commercial Mortgage had a negative net worth that steadily increased during the years that D’Agostino owned the company. Specifically, by year-end 2003, when Commercial Mortgage’s net worth had fallen to -$12,860,653 and it had been six years since Commercial Mortgage had made a profit, it became clear to D’Agostino that Commercial might not recover and D’Agostino engaged in a scheme to defraud investors by utilizing Commercial Mortgage’s long-standing good will and reputation in order to obtain and retain money from investors. From the end of 2003 through October 8, 2008, D’Agostino’s fraud scheme exposed the investors to losses of more than $20 million.
Judge Kapala found that D’Agostino made specific false statements to several of the investors. Specifically, defendant told Commercial Mortgage customers that Commercial Mortgage was “doing well,” “doing great,” “very fine,” or “wonderful.” According to the decision, D’Agostino made these statements about Commercial Mortgage’s financial circumstances and the statements were false.
No sentencing date has been set at this time. Each count of mail fraud and wire fraud carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater. Securities fraud carries a maximum penalty of up to 5 years in prison, and fine of up to $10,000. The Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution.
The conviction was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation; and Illinois Secretary of State Jesse White.
The government is being represented by Assistant U.S. Attorneys Scott A. Verseman and Scott R. Paccagnini.
Former NMSU Student Sentenced to Prison for Making False Bomb ThreatsRead the Press Release
ALBUQUERQUE – This morning, a federal judge in Las Cruces, N.M., sentenced Daud Anwar, 30, of Albuquerque, N.M., to 24 months in prison to be followed by three years of supervised release for his conviction for making false bomb threats. Anwar’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
On March 21, 2012, Anwar was charged with using electronic communication devises on March 3, 2011, to falsely claim that buildings on the New Mexico State University (NMSU) campus would be damaged or destroyed by an explosive device. Anwar was arrested on March 27, 2012, and has been in federal custody since that time. On April 30, 2012, Anwar pled guilty to the indictment without the benefit of a plea agreement.
According to court records, on the morning of March 3, 2011, Anwar, who was then a student at NMSU, used telephones and the Internet to falsely claim that there was a bomb on the NMSU campus and to threaten that there would be casualties if the campus was not evacuated. Anwar made six separate false bomb threats that morning which caused substantial disruption at NMSU and resulted in the evacuation of parts of the NMSU campus as law enforcement officials and University administrators responded to the bomb threats.
“Threats like the ones made by Daud Anwar are serious crimes and warrant a serious response,” said U.S. Attorney Gonzales. “In a post-9/11 world, each and every bomb threat must be taken seriously. False bomb threats drain our already overburdened public safety agencies, and prevent them from pursuing real threats to our security and other serious crimes. For this reason, we will diligently investigate and prosecute these cases.”
“The safety and security of our schools and communities are of the utmost importance to the FBI and the Joint Terrorism Task Force, which includes partnerships with the NMSU Police and Computer Security Team, and the U.S. Attorney's Office,” said Special Agent in Charge Lee. “Threats like the ones in this case are taken very seriously by the FBI and all of our law enforcement partners.”
The case was investigated by the Las Cruces office of the FBI and the NMSU Police Department with assistance from the Computer Security Team in the NMSU Information and Communications Technology Department, and was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
Former Employee of Concrete and Material Company Pleads Guilty to Tax EvasionRead the Press Release
CAMDEN, N.J. – A former employee of Atlantic County Concrete and Material Co. admitted today evading federal income taxes on nearly $700,000 she received in 2008, U.S. Attorney Paul J. Fishman announced.
Nancy Armienti, 59, of Elmer, N.J., pleaded guilty before U.S. District Court Judge Joseph H. Rodriguez in Camden federal court to an Information charging her with one count of tax evasion.
According to documents filed in this case and statements made in court:
During 2008, Armienti took $589,947 from her employer through cash withdrawals and payments to QVC for items she ordered. Armienti created false business expense records to conceal her receipt of these funds and instructed the company’s bookkeeper to record the cash withdrawals and QVC payments as business expenses. Armienti failed to file a 2008 federal income tax return and failed to pay the IRS the income tax due on the $682,129 in total income she received in 2008.
The tax evasion charge to which Armienti pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for April 23, 2013.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
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Defense counsel: Richard Coughlin Esq., Assistant Federal Public Defender, Camden
Armienti, Nancy Information
Former Department of Homeland Security Office of Inspector General Agent Admits Role in Records Falsification SchemeRead the Press Release
A former special agent of the Department of Homeland Security’s Office of Inspector General (DHS-OIG) pleaded guilty today in a Southern District of Texas federal court to participating in a scheme to falsify records and to obstruct an internal field office inspection, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Wayne Ball, 40, of McAllen, Texas, entered his guilty plea before U.S. District Judge Randy Crane to one count of conspiracy to falsify records in federal investigations and to obstruct an agency proceeding.
DHS-OIG is the principal component within DHS with the responsibility to investigate alleged criminal activity by DHS employees, including corruption affecting the integrity of U.S. borders. According to court documents, Ball served as a special agent with DHS-OIG at its McAllen Field Office from January 2009 to November 2012.
According to court documents, in September 2011, DHS-OIG conducted an internal inspection of the field office to evaluate whether its internal investigative standards and policies were being followed. Beginning in August 2011, Ball and at least two other DHS-OIG employees, identified in court documents as “Supervisor A” and “Special Agent A,” allegedly engaged in a scheme to falsify documents in investigative case files. The scheme’s purpose was to conceal lapses – including significant periods of inactivity in pending criminal investigations over periods of months or years – from personnel conducting the inspection and DHS-OIG headquarters, including by falsifying investigative activity which had not taken place, according to court documents.
According to court documents, a criminal investigation was initiated by DHS-OIG in March 2010 into allegations that a Customs and Border Protection officer was assisting the unlawful smuggling of undocumented aliens and narcotics into the United States. Special Agent A allegedly drafted false memoranda of activity (MOAs), at Supervisor A’s direction, to fill gaps of inactivity in the investigation, to which Special Agent A was assigned. With the intention of filling gaps that had occurred when Special Agent A was either not present at the office to investigate cases or was not employed by DHS-OIG at all, Special Agent A allegedly attributed the investigative activity to Ball, who signed and backdated the false MOAs. Supervisor A also allegedly signed and backdated the documents, which were placed in the investigation’s case file in advance of the internal inspection.
The charge of conspiracy carries a maximum potential penalty of five years in prison and a $250,000 fine. Ball is scheduled to be sentenced on April 16, 2013.
The case is being prosecuted by Trial Attorneys Timothy J. Kelly and Eric L. Gibson of the Criminal Division’s Public Integrity Section. The case is being investigated by agents of the FBI, San Antonio Division.
Former Credit Union Employee Pleads to EmbezzlementRead the Press Release
BOSTON – An Adams woman and former credit union employee was convicted today of embezzlement and making false entries into the books of the credit union.
Patricia Piscioneri, 67, pleaded guilty before U.S. District Judge Michael A. Ponsor to a 30 count indictment charging her with embezzlement of funds by a credit union employee and false entries.
While employed as the manager of the former Adams Municipal Employees Federal Credit Union (AMEFCU), Piscioneri embezzled credit union funds by creating fraudulent loan accounts in the names of credit union members and depositing the proceeds of these fraudulent loans into her own account(s), her husband’s account(s), or other family members’ account(s), or used the proceeds to pay off previously obtained fraudulent loans. In an attempt to avoid detection, Piscioneri created fraudulent loan documentation, such as loan applications and promissory notes, and forged signatures on the fraudulent loan documentation. Additionally, Piscioneri created false entries in the AMEFCU accounting system and advanced the payment due dates of the fraudulent loans.
Sentencing is scheduled for April 25, 2013. Piscioneri faces up to 30 years in prison to be followed by five years of supervised release and a $1 million fine.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Health Care Fraud Unit.
Former Columbus Police Officer Pleads Guilty to Sexual Coercion of MinorsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –Todd L. Smith, 50, of Columbus pleaded guilty in U.S. District Court today to one count of coercion and enticement of minors for sexual activity.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the plea entered today before U.S. District Judge Algenon L. Marbley.
“Today’s guilty plea underscores that inappropriate contact with minors using texts and the internet are federal crimes,” said U.S. Attorney Stewart. “Smith’s job as a police officer charged with safeguarding children highlights the seriousness of this offense.”
According to a statement read during the hearing, the FBI began investigating Smith on July 2, 2012. The investigation found that Smith, a Columbus Police officer, who was assigned as a resource officer at a local high school was having an illicit relationship with a 15-year old female. He told the student that he had a sex addiction and that she could help him by having sex with him. Between July 24, 2012 and the morning hours of July 25, 2012, Smith exchanged approximately 113 text messages with an undercover FBI agent posing as the victim.
On July 27, 2012, the FBI became aware of another 15-year old victim who had been coerced through similar text messages into having a sexual relationship with Smith. The FBI found that this relationship began in early 2012 and that they exchanged more than 6,000 text messages during the course of the relationship.
FBI agents arrested Smith on July 26, 2012 and he has been in custody since his arrest. Coercion and enticement of minors is punishable by at least ten years and up to life in prison. Judge Marbley will determine the sentence and schedule a hearing following a pre-sentence investigation by the court.
“Police officers are the guardians of our community and to whom our children should be able to turn for safety,” said FBI Special Agent in Charge Hanko. “The actions of one officer should not negatively reflect on the good work of other officers. This investigation highlights the efforts of the U.S. Attorney’s Office, FBI, and Columbus Police Department to ensure those who sully their positions as police officers are held accountable.”
Stewart commended the FBI agents conducting the investigation, and Assistant U.S. Attorneys Doug Squires and Michael Hunter, who are prosecuting the case.
Former Cedar Rapids Resident Sentenced for Defrauding FEMARead the Press Release
A woman who lied to the Federal Emergency Management Agency (FEMA) to get disaster benefits following the June 2008 Eastern Iowa flood was sentenced on January 16, 2013, to eighteen months in federal prison.
Emily Protsman, age 37, now of Coralville and formerly from Cedar Rapids, Iowa, received the prison term after an October 30, 2012, guilty plea to one count of disaster benefits fraud.
At the October 30, 2012, guilty plea hearing, Protsman admitted that, on July 18, 2008, she submitted a fraudulent application to FEMA seeking benefits related to the June 2008 flood in Eastern Iowa. Protsman admitted she falsely claimed she lived at a specific residence in Cedar Rapids at the time of the flood and that her home and personal property were damaged. Protsman admitted that, at the time of the flood, she did not live at the residence identified in the application and Protsman’s home and personal property were not damaged.
Protsman was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Protsman was sentenced to eighteen months’ imprisonment to be followed by five years of supervised release. A special assessment of $100 was imposed, and she was ordered to make $8846.95 in restitution. There is no parole in the federal system.Protsman was released on previously set conditions and is to surrender to the United States Marshal on February 20, 2013.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-62.
Former Cape Cod Man Sentenced for Impersonating A Federal AgentRead the Press Release
BOSTON –A former Centerville man was sentenced today for impersonating a federal agent.
Mark E. Daniel, 50, was sentenced by U.S. District Judge Nathaniel Gorton to six months in prison, to be followed by one year of supervised release and restitution to the victim. In October 2012, Daniel pleaded guilty to impersonating a federal agent.Between June 7 and August 8, 2012, Daniel pretended to be a high-level special agent with the Department of Homeland Security assigned to the White House. Daniel carried out this ruse in his dealings with a locally-based photographer. The impersonation started when Daniel, posing as a federal agent, entered the photography business and engaged its female owner in conversation. Daniel told the owner that he was a federal agent, displaying a gold metal star-shaped badge along with identification in a black leather case. Daniel told the owner that he would like to hire her to photograph a private party which was to take place on July 7, 2012 at the Kennedy Compound in Hyannis Port. Daniel claimed the event would be attended by high-profile politicians and government leaders, to include Secretary of State Hillary Clinton and former President of the United States (POTUS) Jimmy Carter.
Thereafter, Daniel carried out his impersonation ruse in future in-person meetings, emails and phone calls. Most of the phone calls were consensually recorded by the owner. In their numerous conversations, Daniel explained that he was National Security and that he handled the Secret Service. According to Daniel, his agency was responsible for the security of the United States, the Constitution and the Presidency. Daniel advised that in his job he frequently spoke with the POTUS, Vice President, Chief of Staff and other White House staff members and that he had “100% access to the White House.” To legitimize this assertion, Daniel sent the owner photographs of President Obama in the Oval Office, explaining that he’d taken the photographs himself. Daniel also offered to introduce the owner to White House photographer, Pete Souza; Daniel told her that he regularly interacted with Souza while working in the White House and while she was listening he purported to call the White House and set up a lunch meeting with Mr. Souza.
In carrying out his impersonation, Daniel arranged various details of the proposed Hyannis Port photography event; notably, Daniel asked the owner to provide photographs of herself and her female assistant, explaining that full body photographs and “head-shots” were necessary for security purposes. Daniel instructed that the photographs should depict the day and evening attire that the owner and her assistant planned to wear to the event, explaining that Secretary of State Clinton would need to approve the selected outfits. The owner provided the requested images to Daniel. As the date of the alleged event neared, Daniel told the owner that the event had been cancelled due to a security breach. Shortly thereafter, Daniel told the owner that he would be accompanying presidential candidate Mitt Romney to the Republican National Convention and that he wanted her to accompany him to photograph this four day event. As with the earlier event, because she would be in close proximity to Mr. Romney, Daniel would have to pre-approve all of the owner’s outfit/clothing selections. In another conversation, Daniel claimed that he would be accompanying President Obama to the London Olympics and asked if she wanted to join him on Air Force One to photograph the trip.
The impersonation scheme unraveled as the owner became suspicious of Daniel, contacted law enforcement and began cooperating with law enforcement. Daniel was arrested at the Barnstable Airport in Hyannis on Aug. 8, 2012 where he had planned to meet the owner as he was purportedly disembarking from a flight from Washington, D.C.
Daniel was previously convicted of impersonating a DEA agent in 1992.
United States Attorney Carmen M. Ortiz and Gregory K. Null, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Office of Inspector General, Office of Investigations, made the announcement today. The United States Secret Service, the Hanover Police Department and the Barnstable Police Department assisted in the investigation. The case was prosecuted by Assistant U.S. Attorney Diane Freniere of Ortiz’s Public Corruption & Special Prosecutions Unit.
Former Business Owner Sentenced to More Than Two Years in Prison for Defrauding IRSRead the Press Release
Urbana, Ill. – A Washington, Ill., man, Imad Ribhi Abdallah, has been sentenced to more than two years in federal prison. On Monday, Jan. 14, 2013, U.S. District Judge Michael P. McCuskey ordered that Abdallah, a former owner of Ayat 1, Inc., which operated as Price Rite Food & Liquor in Decatur, Ill., and Genan 1 Inc., which operated as Super Saver Liquor in Peoria, Ill., serve 27 months in federal prison for conspiracy to defraud the IRS, mail fraud, and making false statements concerning health care benefits. According to court documents, Abdallah was also ordered to pay restitution in the amounts of $638,894 to the IRS in unpaid taxes and $27,320 to the Illinois Department of Human Services related to fraudulently obtained benefits. Abdallah was ordered to report on Feb. 20, 2013, to the Federal Bureau of Prisons to begin serving his prison sentence.
On Jan. 21, 2011, Abdallah entered pleas of guilty to one count of conspiracy to defraud the IRS related to corporate income tax returns filed on behalf of Genan 1 Inc. and Ayat 1 Inc., which under-reported taxable income and tax due and owing. Abdallah also pled guilty to one count of mail fraud and one count of making false statements to obtain health care benefits.
The charges were investigated by the Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, and the Illinois Department of Revenue. The case was prosecuted by Assistant U.S. Attorney Elly M. Peirson.
Former Bank of Oakland President Stephen Henry Pleads Guilty to Bank FraudRead the Press Release
Memphis, TN – Stephen Henry, 46, of Memphis, Tennessee, pleaded guilty to one count of Misapplication of Bank Funds in violation of 18 U.S.C. § 656, announced U.S. Attorney Edward L. Stanton III.
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Henry was serving as president and CEO of Oakland Deposit Bank, which was owned by his family. According to information revealed during his plea hearing, Oakland Bank had made numerous loans to Stephen Sims, a local real estate investor. In late 2007, many of these loans were delinquent. In an effort to keep the loans from going into default, Stephen Henry assisted Stephen Sims in using monies from construction loans to pay on unrelated unsecured loans which had become delinquent. In addition, Stephen Henry manipulated the bank’s books and records to allow bank monies to be used to pay on delinquent loans without being credited to a customer’s account.
The scheme eventually led to Sims defaulting on more than $2.4 million dollars in loans from the bank. As a result, Oakland Deposit Bank was forced to go into receivership and was taken over by officials with the Federal Deposit Insurance Corporation (FDIC). The bank was later sold.
For his role in the scheme, Sims pleaded guilty to three counts of bank fraud and was sentenced to 87 months in federal prison in July 2012. He was also ordered to pay more than $2.4 million in restitution.
Henry will appear before U.S. District Judge Samuel Mays on April 26, 2013 for sentencing. He could receive up to 30 years in prison and up to a one million dollar fine.
This case was investigated by the Federal Bureau of Investigation and the FDIC. Executive Assistant U.S. Attorney Larry Laurenzi represented the government.Former Bank Employee Pleads Guilty to Armed Bank RobberyRead the Press Release
LAREDO, Texas – Ansel Cruz, 30, a life-long resident of Laredo, has entered a guilty plea to one count of armed bank robbery of the Laredo Federal Credit Union where he was formerly employed, United States Attorney Kenneth Magidson announced today.
Cruz admitted to robbing the bank on Corpus Christi Street on Jan. 6, 2012, forcing former co-workers at gunpoint to enter the bank’s vault.
On that date, employees were working after hours. Cruz, wearing black clothing and black face covering, forced employees to give him access through a rear door into the building where the gained entry into the Credit Union’s vault. As one employee exited the rear door, Cruz approached him, tied him up and left him outside the building’s rear entry. Another employee, not realizing the first employee had been restrained, also exited and was forced to let him into the bank. Cruz threatened to shoot both employees with a pistol if they did not cooperate.
After entering the bank, Cruz similarly restrained and threatened two custodians, took their car keys and locked them in a closet. Cruz took the money, exited through the same back door and drove off in the custodians’ vehicle, which was later found abandoned a few blocks away from the bank, close to Cruz’s residence.
Other employees reviewing the surveillance recordings a few days later immediately identified Cruz as the perpetrator, recognizing him as being a former employee who had worked with the Credit Union through 2011. After securing a search warrant for Cruz’s home, FBI agents and officers with the Laredo Police Department (LPD) retrieved the money from various locations, including his home, the stolen vehicle and other persons to whom he gave money. Agents and officers also secured additional items of physical evidence linking Cruz to the robbery, including a bag containing black clothing and gloves, rolls of tape, a pistol slide and ammunition magazine as well as several money bands used by the credit union. Relatives and friends of Cruz informed federal agents and investigators that Cruz admitted having committing the robbery.
The FBI Laboratory was able to confirm Cruz’s fingerprints on the bank bands found with the money in his home, as well as linking fibers on his clothing to the fibers found on the tape used to bind the employees. Blood found on the clothing was also matched to Cruz.
Cruz has been in federal custody since his arrest on Jan. 11, 2012, where he will remain pending his sentencing hearing to be set at a later date. At that time, he faces up to 25 years in federal prison and a possible $250,000 fine.
The matter was investigated by the FBI and LPD. Assistant United States Attorney Homero Ramirez prosecuted the case.
Former Auto Dealership Office Manager Sentenced to 41 Months in Federal Prison for $1.4 Million EmbezzlementRead the Press Release
DES MOINES, IA – Ralph L. Schippers, age 58, was sentenced to 41 months in federal prison for wire fraud, announced United States Attorney Nicholas A. Klinefeldt. Schippers also was ordered to pay restitution in the amount of $1,433,825.37, and was ordered to serve three years of supervised release following release from prison. Sentence was imposed by United States District Judge John A. Jarvey.
Schippers pleaded guilty to the charge on September 17, 2012, and admitted to embezzling more than $1.4 million from his employer, Granger Motors, over a fourteen-year period. Schippers accomplished the fraud by manipulating the dealership’s accounting system and causing monies to be wired or deposited to his personal bank account, making fraudulent journal entries in order to conceal the fraud. Schippers was the dealership’s office manager and, as such, was responsible for managing the dealership’s accounting systems, payroll management, and similar tasks. Schippers admitted that he used some of the embezzled funds to purchase goods and services for himself and his family, including international airline tickets, hotel accommodations, meals at Des Moines-area restaurants, golf-related items, and jewelry.
This case was investigated by the Federal Bureau of Investigation–Des Moines Resident Agency, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Five Canton Men Indicted for Cocaine ConspiracyRead the Press Release
Five Canton men were indicted on a charge of conspiracy to distribute cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation’s Cleveland office.
“This is an example of federal and local law enforcement working together to make sophisticated cases that take out groups that bring down the quality of life for everyone,” Dettelbach said. “We believe this investigation will eliminate some of the worst of the worst offenders in Canton and Stark County.”
“In the past 15 months, collaborative law enforcement efforts have resulted in the indictment of 26 individuals, including nine who were taken into custody this morning, responsible for bringing cocaine and violence to the Canton area,” Anthony said. “The FBI and our local partners will continue efforts to protect the citizens of Canton by dismantling dangerous, illegal drug organizations."
Indicted are: Jamail Cortez Mitchell, 22; Chad Irvin Tucker, 24; Cruz M. Brown, 23; Jermaine E. Gaitor, 28, and Kevin Slater, 57. All were arrested this morning.
Related state charges were filed against three other people as well.
Mitchell, Tucker, Brown, Gaitor and Slater are accused of conspiring to distribute more than five kilograms of cocaine and more than 280 grams of crack cocaine in Canton between June 2010 and October 2011, according to the indictment.
The men purchased crack and powder cocaine from previously indicted conspirators and resold the drugs in and around Canton, according to the indictment.
This case is a supplemental indictment to the one filed on May 22, 2011, which charged 17 people with taking part in a conspiracy that brought heroin and cocaine from Columbus, Ohio, to Stark County. All 17 people have been found guilty and many have been sentenced to terms between five and 10 years in prison. Jasmine Watkins, one of the leaders the conspiracy, pleaded guilty and is facing a mandatory minimum sentence of 20 years in prison.
These cases are being prosecuted by Assistant United States Attorney Linda H. Barr following an investigation by the FBI’s Safe Streets Task Force, which is comprised of the Canton Police Department, Alliance Police Department, Ohio Adult Parole Authority, Stark County Sheriff’s Office, Massillon Police Department and Perry Police Department.
An indictment is merely an accusation. All defendants are presumed innocent of the charges until proven guilty beyond a reasonable doubt in court.