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Wednesday 16 January 2013
Omaha Woman Sentenced in Spa Prostitution CaseRead the Press Release
United States Attorney Deborah R. Gilg announced that Kimberly A. Bivens, age 46, was sentenced today in Omaha by Chief United States District Judge Laurie Smith Camp to 37 months in federal prison followed by 3 years of supervised release. Ms. Bivens had previously pled guilty to one count of conspiracy to use facilities in interstate commerce to promote a business enterprise involving prostitution and to persuade an individual to travel in interstate commerce to engage in prostitution.
Kimberly Bivens managed or owned three spa locations during 2009 to October 24, 2011, in Omaha, Nebraska. She placed advertisements for each of the three spas on the internet. Each of the spas was, in fact, a front for prostitution. The majority of customers received sex acts from the workers, rather than legitimate spa services, in exchange for money. Some customers traveled to the spas from Iowa and from other states to obtain sex acts for money.
There were five or more participants operating and managing these three spa locations. During the time when Kimberly Bivens managed or owned these three spa locations, there were more than twenty workers providing commercial sex acts.
The investigation of this matter was conducted by the Federal Bureau of Investigation and the Omaha Police Department.Olney Man Charged with Child Pornography OffenseRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Daniel F. Gillard, 48, of Olney, Illinois, was charged in an Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, with possession of child pornography and with accessing the internet with intent to view child pornography.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
With respect to each of the two counts, if convicted, Gillard faces up to 10 years imprisonment, up to a $250,000 fine, and from 5 years to lifetime supervised release to follow any incarceration.
The investigation in this case was conducted by the Richland County Sheriff’s Department and the Illinois State Police.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, 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.”
The case is assigned to Assistant United States Attorney Thomas E. Leggans.
North Carolina Man Sentenced to 21-Month Prison Term for Assaulting Ambassador at Gabonese Embassy- Defendant Was Arrested After Demonstration Turned Violent -Read the Press Release
WASHINGTON - Leon Obame, 45, of Raleigh, N.C., was sentenced today to 21 months in prison for assaulting the ambassador of Gabon during a demonstration in December 2011 at the Gabonese Embassy, U.S. Attorney Ronald C. Machen Jr. announced.
Obame was found guilty by a jury in October 2012 of one count of assaulting a foreign official. The verdict followed a trial in the U.S District Court for the District of Columbia. He was sentenced by the Honorable Senior Judge Gladys Kessler.
In addition to the assault charge, Obame was charged with arson and damage to property occupied by a foreign government for a pair of fires in 2009 at the embassy. The jury was unable to reach a verdict on those charges, and the government has dismissed those counts.
The assault took place on Dec. 9, 2011 at the embassy’s temporary location, in the 1600 block of Connecticut Avenue NW. That morning, according to the government’s evidence, Obame punched the ambassador, knocking him to the ground.
Obame had been in custody since his arrest at the demonstration at the Gabonese Embassy, but he was released after the jury verdict last fall. He is to receive credit for the time that he already has served and now must report back to serve the rest of the 21 months. Following completion of his prison term, he will be placed on a year of supervised release.
In announcing the sentence, U.S. Attorney Machen commended the efforts of those who investigated the case from the District of Columbia Fire and Emergency Medical Services Department, the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, and the Diplomatic Security Service. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Selena Zuhoski, Devron Elliott, and Elizabeth Barns, Legal Assistant Donice Adams, and Litigation Technology Specialist Thomas Royal. Finally, he thanked Assistant U.S. Attorneys Frederick W. Yette and T. Patrick Martin, who prosecuted the case.
13-012Niagara Falls Man Sentenced for Obstructing JusticeRead the Press Release
BUFFALO, N.Y.---U.S. Attorney William J. Hochul, Jr. announced today that Maurice Ubiles, of Niagara Falls, N.Y., who was convicted of obstructing justice, was sentenced to 22 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that the defendant lied to law enforcement officers about a controlled drug purchase he allegedly made from a target of a Niagara Falls Police and U.S. Drug Enforcement Administration narcotics investigation. As a result of the false information provided by Ubiles, the target was arrested and charged in federal court. The charges were later dismissed once law enforcement officers and the United States Attorney’s Office determined that the defendant had lied about the drug purchase.
“While the facts underlying this case are fortunately a rare occurrence, today’s prosecution and sentence demonstrate this Office’s commitment to pursue justice under all circumstances, as well as substantial punishment that will be given to anyone who deceives law enforcement in its efforts to fight crime," said U.S. Attorney Hochul.
The sentencing is the result of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.
Newport News Man Indicted for 28 Armed RobberiesRead the Press Release
NEWPORT NEWS, Va. – Ronald Wayne Carr, 38, of Newport News, Va., has been indicted by a federal grand jury accused of participating in twenty-eight armed robberies in Hampton, Newport News and York County. Prior to Carr’s arrest on December 27, 2012, he was known as the “fake beard” robber.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and James Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the indictment was returned.
The indictment charges Carr with interference with commerce by robbery, under a federal statute that makes it a federal crime to rob a business whose operations affect interstate commerce. According to the indictment, Carr committed armed robberies within three separate jurisdictions in Hampton Roads from December 18, 2010 through November 16, 2012. Some of the businesses were robbed multiple times. The robberies occurred at the following businesses - the Auto Zone Store in York County and Hampton; Dollar General in Newport News; Advance Auto Store in Hampton and Newport News; Family Dollar Store in Hampton and Newport News; Captain D’s Restaurant in Newport News; Long John Silver Restaurant in Hampton; and, Bojangle’s Restaurant in Hampton.The indictment alleges that in the course of the robberies Carr brandished a firearm and pointed the firearm at employees and demanded money belonging to the businesses. The combined total losses from the twenty-eight businesses exceed $47,000.
This investigation is being conducted by ATF’s Washington Field Division, Hampton Police Department, Newport News Police Department and the York County Sheriff’s Office. Assistant United States Attorney Robert E. Bradenham, II is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Minneapolis Man Indicted for Armed Robbery of Three Convenience Stores and A Jimmy John’sRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 26-year-old Minneapolis man was indicted in connection with the armed robbery of three Twin-Cities area convenience stores and on two separate occasions, the same Jimmy John’s sandwich shop. Derrel Johon Pruitt was charged with five counts of interference with commerce by robbery, pursuant to the Hobbs Act, five counts of possession of a firearm in furtherance of a crime of violence, and one count of possession of an unregistered firearm.
The indictment alleges that on five occasions, Pruitt stole money from the businesses while brandishing a sawed-off shotgun: On October 13, 2011, he allegedly robbed the Quick Stop store in South St. Paul; on October 22, 2011, he allegedly robbed the Stop N’ Go store in Minneapolis; on November 18, 2011, he allegedly robbed the Jimmy John’s in Minneapolis; on November 24, 2011, he allegedly robbed the Holiday store in Inver Grove Heights; and on December 2, 2011, he allegedly robbed the same Jimmy John’s in Minneapolis.
In addition, on December 5, 2011, Pruitt possessed the shotgun, which had a barrel length of less than 18 inches and an overall length of less than 26 inches. The firearm was not registered to Pruitt in the National Firearms Registration and Transfer Record, as required by law.As stated, Pruitt was charged in federal court under the Hobbs Act, which was passed by Congress in1946. The Act allows federal prosecutors to prosecute violent habitual criminals who commit armed robberies in places of business that involve interstate commerce. Federal prosecution of these cases is sometimes beneficial since federal penalties are often tougher than those imposed under state law. Moreover, because the federal system has no parole, those who receive federal sentences serve virtually their entire prison terms behind bars.
If convicted, Pruitt faces a potential maximum penalty of 20 years in federal prison on each count of violating the Hobbs Act, ten years for possession of an unregistered firearm, and a mandatory minimum of seven years on each count of possession of a firearm in furtherance of a crime of violence. The potential maximum penalty on those counts is life in prison. All sentences will be determined by a federal district court judge.
This case is the result of an investigation conducted by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Federal Bureau of Investigation, and the police departments of Inver Grove Heights, Minneapolis, St. Paul, and South St. Paul. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Amber Brennan.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Mexican Man Sent to Prison for Bribery of A Public OfficialRead the Press Release
McALLEN, Texas - Jose Luis Huerta-Aguilar, 32, of Rio Bravo, Tamaulipas, Mexico, has been ordered to federal prison for bribery of a public official, United States Attorney Kenneth Magidson announced today. Huerta-Aguilar pleaded guilty Monday, Nov. 5, 2012.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty plea, handed Huerta-Aguilar an 18-month sentence. As an illegal alien, Huerta-Aguilar is expected to face deportation proceedings following his release from prison.
On June 14, 2012, a Customs and Border Protection (CBP) agent began communicating with via radio with Huerta-Aguilar who was requesting assistance in obtaining entry for himself and two other undocumented aliens. On June 16, 2012, Huerta-Aguilar met with the agent at the Progreso Port of Entry at which time Huerta-Aguilar delivered United States and Mexican currency to the agent as payment to permit Huerta-Aguilar and the aliens entry into the United States without inspection.
Huerta-Aguilar will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges against Huerta-Aguilar was conducted through a joint effort with The Department of Homeland Security-Office of Inspector General, Office of Professional Responsibility, Customs and Border Protection - Office of Internal Affairs and Customs and Border Protection. Assistant United States Attorney Juan Villescas prosecuted the case.
Member of Carbon County Drug Trafficking Conspiracy Sentenced to 39 Months in PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a member of a Carbon County-based drug trafficking conspiracy was sentenced Tuesday by Senior U. S. District Court Judge James M. Munley to 39 months in prison.
According to United States Attorney Peter J. Smith, Imani Simelani, age 30, of Allentown, Pennsylvania, who used the street name “E,” previously pleaded guilty to conspiracy to distribute cocaine base (“crack”) and cocaine. Simelani admitted to being a member of the drug conspiracy from early 2006 to April 2007.
Simelani was indicted by a federal grand jury in April 2007, as a result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police. Simelani was one of 11 people charged in the case. Ten of the co-defendants pleaded guilty to drug-related charges and have been sentenced to prison. Krishna Mote, one of the leaders of the drug ring, was recently convicted after a jury trial and is awaiting sentencing.
Judge Munley also ordered Simelani to be placed on supervised release for four years following his prison sentence and pay a fine of $500.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Maryland Man Sentenced to 19 Months in Prison for Medicaid Fraud Involving Power Wheelchairs and Incontinence Supplies-Emerald Medical Services Submitted More Than $600,000 in False Claims-Read the Press Release
WASHINGTON – Uche Ben Odunzeh, 32, of Laurel, Md., was sentenced today to 19 months in prison on a federal charge stemming from the submission of more than $600,000 in false health care claims, announced U.S. Attorney Ronald C. Machen Jr.
Joining in the announcement were Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office, Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS - OIG) for the region including the District of Columbia, and Charles J. Willoughby, District of Columbia Inspector General.
Odunzeh pled guilty in October 2012 in the U.S. District Court for the District of Columbia to one count of conspiracy to commit health care fraud. As part of his plea agreement, Odunzeh agreed to pay $277,383 in restitution to the District of Columbia. He also agreed to entry of a consent order of forfeiture requiring him to forfeit the proceeds of the fraud. He was sentenced by the Honorable Ellen S. Huvelle.
According to a statement of offense signed by the defendant as well as the government, Odunzeh is a Nigerian national whose visa expired in 2004. He was the sole owner of Emerald Medical Services, LLC, based in the District of Columbia. Emerald Medical sold durable medical equipment, or DME, such as power wheelchairs and adult incontinence supplies.
From on or about Jan. 8, 2008, through on or about March 18, 2011, Emerald Medical submitted 100 claims to the District of Columbia’s Medicaid program for power wheelchairs, totaling $591,653. The D.C. Medicaid program paid Emerald approximately $480,272 for those claims. All of those claims were for the most expensive power wheelchair, referred to by its procedural billing code of K0011. In fact, however, Emerald Medical provided only more basic, less expensive wheelchairs. The D.C. Medicaid program paid Emerald Medical approximately $6,157 per K0011 chair – nearly twice as much as it would have paid for the less sophisticated chairs that Emerald Medical actually provided. Odunzeh admitted that the program paid Emerald Medical at least $232,470 more than what the company might otherwise have been entitled to receive.
During the same period, Emerald Medical also submitted numerous claims to the D.C. Medicaid program for DME items that it never provided to Medicaid recipients. For example, the D.C. Medicaid program paid Emerald Medical about $44,913 for adult incontinence supplies such as diapers, disposable underpads and gloves that were never actually provided.
Acting on an anonymous tip that he was leaving the country, federal agents arrested Odunzeh in July 2012 at Baltimore/Washington International Thurgood Marshall Airport. A separate indictment was handed up and an arrest warrant has been issued for Odunzeh’s alleged co-conspirator, Patricia Mubanga Chisanga, who is believed to have fled to Zambia, Africa.
In announcing the sentence, U.S. Attorney Machen, Acting Assistant Director in Charge Smith, Special Agent in Charge DiGiulio, and Inspector General Willoughby commended the efforts of those who investigated the case from the FBI’s Washington Field Office, HHS-OIG, and the Medicaid Fraud Control Unit, D.C. Office of the Inspector General. They also acknowledged the efforts of Special Assistant U.S. Attorney Stuart Silverman, of the Medicaid Fraud Control Unit, as well as the U.S. Marshal’s Service.
Finally, they commended those who worked on the case from the U.S. Attorney’s Office, including Financial Analyst Bryan J. Snitselaar; Legal Assistant Nicole Wattelet; Assistant U.S. Attorney Zia M. Faruqui and former Assistant U.S. Attorney Emily Scruggs, who handled the asset forfeiture portion of the case; Assistant U.S. Attorney Lionel Andre, and Assistant U.S. Attorney Ted L. Radway, who is prosecuting the matter.
13-011Marietta Man Pleads Guilty to Filing False Claims for Federal Income Tax Refunds While in State PrisonRead the Press Release
ATLANTA - Arnold Tobias Gervais, 34, of Marietta, Georgia, pleaded guilty today in federal court to charges arising out of a scheme to defraud the IRS out of more than $3.4 million in federal income tax refunds while he was in state custody.
United States Attorney Sally Quillian Yates said, “Those who cheat the IRS take money away from everyone who pays his or her fair share of taxes. The United States Attorney’s Office and the IRS are on the lookout for tax cheats and will aggressively pursue those individuals who try to beat the system.”
“One of the many ways that IRS Criminal Investigation protects taxpayer money involves identifying, investigating and prosecuting those who file fraudulent refund claims,” stated Special Agent in Charge, Veronica Hyman-Pillot. “Mr. Gervais defrauded the government and the taxpaying public and will be justly punished for his actions.”
According to United States Attorney Yates, the charges and other information presented in court, Gervais was convicted in May 2008 and sentenced to five years in prison by the Superior Court of Cobb County, Georgia for theft by taking for submitting a fraudulent tax return in an attempt to obtain a tax refund of more than $600,000 from the State of Georgia. Gervais was incarcerated on that charge from July 13, 2007 through February 26, 2010.
On March 16, 2009, while in state custody, Gervais caused his then wife to file with the IRS a phony income tax return, Form 1040, for tax year 2008, which contained a claim for payment of an income tax refund in the amount of $811,073, which Gervais knew to be false, fictitious, and fraudulent.
In addition, Gervais filed, or caused to be filed, six more false claims for federal income tax refunds - five in his own name for tax years 2004, 2005, 2006, 2007, and 2009, and one in the name of an acquaintance for tax year 2009.
All seven of the returns claimed false wages and federal tax withholding. And all seven of the returns falsely claimed that the taxpayer had earned a significant amount of wages from a fictitious company called “Safety Shoes & More, Inc.,” which was allegedly located in Rome, Georgia. The returns also falsely claimed that the corporation had withheld from those wages a significant amount of federal income tax.
The total intended tax loss to the IRS was $3,488,135, and of that amount, $2,832,268 was actually paid by to Gervais by the IRS.
The United States Attorney’s Office in this district filed two civil forfeiture actions, which resulted in the seizure of $2,232,012 from accounts controlled by Gervais; thereby, reducing the out-of-pocket loss to the IRS.
Gervais pleaded guilty to a Criminal Information charging him with one count of filing false claims for income tax refunds. He could receive a maximum sentence of five years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding, but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for March 28, 2013 at 10 a.m., before United States District Judge Timothy C. Batten, Sr.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
Assistant United States Attorneys Russell Phillips and Michael J. Brown are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Man Who Stole Almost $1.5 Million from Victims in Early Mortgage Pay-off Scheme Sentenced to Eight Years in PrisonRead the Press Release
Las Vegas, Nev. – A former resident of Las Vegas who defrauded 17 individuals of almost $1.5 million in an investment fraud and marketing scheme involving early mortgage payoffs, was sentenced today to just over eight years in prison for his guilty pleas to fraud and tax evasion charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Mr. Maharaj repeatedly solicited victims through fraud and deception knowing that they would never receive the monetary rewards he pitched,” said U.S. Attorney Bogden. “Although he tried to avoid facing the reality of a conviction by fleeing to Fiji and causing the United States to extradite him, he was eventually brought to justice and will spend much of the next decade behind bars.”
Aneal Maharaj, 65, currently in custody, was sentenced by U.S. District Judge James C. Mahan to 100 months in prison, five years of supervised release, and ordered to pay $1,473,111 in restitution. Maharaj received a greater sentence because of the significant loss amount and number of victims, and because he obstructed justice by failing to appear for trial in the case and fled to Fiji to avoid prosecution. Maharaj pleaded guilty on Oct. 18, 2012, to one count of mail fraud, two counts of wire fraud, one count of tax evasion, six counts of bank fraud, and one count of making a false declaration in a bankruptcy petition.
Beginning in about 1990 and continuing to about October 2004, Maharaj operated a multi-level marketing program from Las Vegas wherein he promised persons that they could pay off a 30-year mortgage in five years or less by investing and becoming franchise owners in a business he called “PowerNet Marketing Systems,” and a “home loan plan” he called Systematic Mortgage Amortization Reduction Technology (SMART). The system required the investors to recruit additional persons into the program, which Maharaj told them would entitle them to substantial commissions and income. Maharaj knew that no individual had ever paid off a 30-year mortgage in five years or less using the SMART plan, and that he had no intention of paying the commissions and income to the participants. At least 17 individuals each invested a minimum of $25,000 and up to $500,000 with Maharaj to become franchise owners in his fraudulent marketing program. The plea agreement states that Maharaj convinced one victim to sign over his interest in his $100,000 life insurance benefit.
Maharaj was originally charged in September 2005 with mail fraud and wire fraud. Additional charges were filed against Maharaj in October 2008, including structuring cash transactions, money laundering, tax evasion, bank fraud and making a false declaration in relation to a bankruptcy proceeding. Shortly thereafter, the government filed a motion requesting the court to detain Maharaj pending trial, alleging that Maharaj was committing new crimes while on pretrial release including engaging in the same conduct for which he was originally indicted. The court did not immediately detain Maharaj, and set a hearing on the matter. Maharaj fled to Fiji and failed to appear at the hearing. In February 2009, the U.S. Department of Justice began extradition proceedings. Maharaj fought extradition for more than two years, but on Nov. 15, 2011, he was extradited to Las Vegas to face the charges.
Maharaj has not filed a tax return since at least 1995, and admitted in his guilty plea that from 1995 to about October 2004, he kept a substantial portion of the payments that the victims made to “Powernet” for his own use and benefit and did not pay taxes on the income. Maharaj used the proceeds of the fraud scheme to purchase homes in Las Vegas and Henderson between December 2003 and August 2004. Maharaj financed the homes through Countrywide Home Loans and caused false and fraudulent information to be included in the home loan applications concerning his employment, income, assets and liabilities. Maharaj also filed for bankruptcy and made false statements in his petition concerning ownership of the homes.
The case was investigated by the FBI and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Brian Pugh and Nicholas Dickinson.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Man Sentenced for the Armed Robbery of A Bemidji Convenience StoreRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Duluth, a 22-year-old man was sentenced for committing the December 30, 2011, armed robbery of Newby’s Market in Bemidji. United States District Court Judge Richard H. Kyle sentenced Jason Lee King, no known address, to 132 months in federal prison on one count of interference with commerce by robbery, pursuant to the Hobbs Act, and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. King was indicted on April 3, 2012, and pleaded guilty on June 11, 2012.
In his plea agreement, King admitted that on December 30, 2011, he stole approximately $1,476 from the store while threatening a store clerk with a loaded, short-barreled shotgun. According to a law enforcement affidavit filed in the case, the market was robbed just before 9:00 p.m. by two masked men armed with a shotgun and a knife. After the robbery, the men fled in a blue pickup.
In responding to the robbery, officers spotted the truck and the men abandoning it and fleeing into the woods. King and a juvenile male were ultimately found and taken into custody. Officers recovered the 20-gauge shotgun in the woods, along the route the men had taken in their attempt to escape authorities. Inside the pickup, police also found $1,420 in cash, a black ski mask, several Newby’s Market receipts, and a check made out to Newby’s Market.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute violent, habitual criminals who commit armed robbery in places of business involved in interstate commerce. Federal prosecution of these cases is sometimes beneficial since the penalties are often tougher than under state law. Furthermore, because the federal system has no parole, those who receive federal sentences serve virtually their entire sentence behind bars.
This case was the result of an investigation by the Beltrami County Sheriff’s Office and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.Luzerne County Man Sentenced to PrisonRead the Press Release
For Federal Heroin Trafficking Charges
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Luzerne County man was sentenced by Senior United States District Judge James M. Munley to serve 60 months in prison on the charge of conspiracy to distribute heroin.
According to United States Attorney Peter J. Smith, David Gilliam, age 27, of Forty Fort, previously admitted to participating in a conspiracy to distribute heroin in the Luzerne County area between January and November 2011. In March 2011, investigators seized 660 bags of heroin from a residence located on Wyoming Avenue in Forty Fort where Gilliam was residing.
In addition to the prison term, Judge Munley also ordered that Gilliam be supervised by a probation officer for three years following his prison sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Luzerne County Drug Task Force, and the Kingston and Hanover Police Departments.The case was prosecuted by Assistant United States Attorneys Robert J. O’Hara.
Local Businessmen on Bond Following Arrest for Possession with Intent to Distribute 100 Kilograms or More of MarijuanaRead the Press Release
Joel Valencia Salazar Owns Primo Produce in Dallas
DALLAS — Two men, who were arrested Friday on federal drug charges, made their initial appearance in federal court in Dallas before U.S. Magistrate Judge Renée Harris Toliver, who released each of them on a personal recognizance bond. Gabriel Delgado, Jr., 35, of Dallas and Joel Valencia Salazar, 38, of McKinney, Texas, are charged in a federal criminal complaint with possession with intent to distribute 100 kilograms or more of marijuana. Salazar, according to the criminal complaint, is the owner of Primo Produce, located on Ladybird Lane in Dallas. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint, on January 11, 2013, after inspecting suspicious freight pursuant to a state search warrant at the Averitt Express freight company warehouse in Grand Prairie, Texas, law enforcement located approximately 122 kilograms of marijuana in a shipment that had just arrived at the facility from Brownsville, Texas. The marijuana was hidden in large plastic storage bins that were placed inside cardboard boxes. The shipment’s bill of lading stated that the freight contained 10 containers of scales and metal plates.
According to the affidavit filed with the complaint, Averitt Express had contacted an individual about picking up the freight at the dock, and the individual was informed that there was an outstanding balance of more than $600 that would have to be paid before the freight could be released. Shortly thereafter, an individual, driving a box truck, arrived at Averitt Express and parked. Afterwards, a Chevrolet Tahoe pull up behind the box truck and that driver exited the vehicle, approached the driver of the box truck and handed the driver some papers. The box truck then entered Averitt Express, where the driver paid for the freight. While he was awaiting loading instructions, he was approached and detained by officers. Law enforcement officers who were located outside the business approached and detained the two men inside the Tahoe, which had remained parked across the street from Averitt Express. The Tahoe’s driver was identified as Delgado and the passenger was identified as Salazar.
Delgado said he was being paid $500 to coordinate picking up the freight and delivering it to a warehouse on Ladybird Lane in Dallas. Salazar said that he agreed to allow Delgado to use his warehouse in exchange for $500.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the offense charged, however, is not less than five years and up to 40 years in prison and a $5,000,000 fine.
The case is being investigated by the Drug Enforcement Administration and the Fort Worth Police Department. Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.
Knoxville Woman Sentenced to 20 Months in Federal Prison for Defrauding U.S. Department of Veterans Affairs and Social Security AdministrationRead the Press Release
KNOXVILLE, Tenn.- On Jan. 16, 2013, Martha Ann Kaczmarczyk, 63, of Knoxville, Tenn., was sentenced to serve 20 months in federal prison today by the Honorable Thomas W. Phillips, U.S. District Judge, for fraudulently obtaining disability payments from the U.S. Department of Veterans Affairs (VA) and the Social Security Administration.
As part of the scheme, Kaczmarczyk assisted her husband in obtaining disability payments based on a false claim of combat-related Posttraumatic Stress Disorder. Additionally, Kaczmarczyk herself defrauded the Social Security Administration by falsely claiming that she was disabled due to a back injury. In addition to the 20 month prison sentence, Kaczmarczyk was ordered to pay $326,390.90 in restitution to the VA and Social Security Administration.
“These benefits are intended for our veterans. The outcome of this case sends a message to all who consider trying to falsely obtain veteran benefits. We will continue to prosecute those who wrongfully receive government benefits,” said U.S. Attorney Bill Killian.
The investigation was a joint effort between the Federal Bureau of Investigation, Department of Veterans Affairs Office of Inspector General, Social Security Administration Office of Inspector General, and the U.S. Air Force.
Assistant U.S. Attorney Zachary Bolitho represented the United States.
Kewa Pueblo Man Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – This afternoon Aaron M. Coriz, 22, a member of Kewa Pueblo who resides in Taos, N.M., pled guilty to an indictment charging him with intentional child abuse under a plea agreement with the U.S. Attorney’s Office.
During today’s plea hearing, Coriz admitted abusing an Indian child under the age of 12 years on April 21, 2010. In his plea agreement, Coriz admitted punishing the child victim by striking the child on the buttocks, back, hips, legs, with his hands, resulting in redness, raised skin, and bruising on those areas of the child’s body. Coriz committed this offense on Kewa Pueblo land.
Under the terms of his plea agreement, Coriz faces up to six months of imprisonment to be followed by a term of supervised release to be determined by the Court. Following his arrest on Nov. 27, 2012, Coriz was released to a half-way house under conditions of release. He remains on conditions of release pending his sentencing hearing, which has yet to be scheduled. The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Southern Pueblos Agency, and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
KC Man Pleads Guilty to Child Sex Trafficking, Producing Child PornRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri Kansas City, Mo., announced that a Kansas City, Mo., man pleaded guilty in federal court today to child sex trafficking and producing child pornography, which was discovered during an investigation into an extortion and blackmail scheme.
Corey M. McKinney, also known as “Chef FireFlame Corey,” 36, of Kansas City, pleaded guilty before U.S. District Judge Greg Kays. McKinney’s plea came during the second day of his trial on the charges contained in an Aug. 30, 2011, federal indictment.
By pleading guilty today, McKinney admitted that he was sexually active on numerous occasions with the child victim since she was 14 years old, identified in court documents as “CV.” McKinney, who was the legal guardian of CV, admitted that he used computers and video equipment to record sexual activity between himself and CV. McKinney also admitted that he caused CV to engage in prostitution as part of an extortion and blackmail scheme.
On March 24, 2011, McKinney was hiding in the bedroom closet while CV was having sex with a man identified in court documents as “John Doe.” John Doe had just met CV, whom he believed to be 17 years old, on Facebook the day before. McKinney secretly recorded the sexual encounter on his cell phone and on a nearby computer.
John Doe returned to the apartment the next day to have sex again. McKinney burst into the room, asking John Doe if he knew how much trouble he could get into because his sister was only 16 years old. John Doe did not know that the girl was actually 16 years old, or that McKinney had recorded the earlier illicit encounter. He did not know that the 16-year-old girl was not actually McKinney’s sister, but rather was a former neighbor that McKinney himself – a 34-year-old man at the time, a few years older than John Doe – had been exploiting sexually.
After demanding $500 in exchange for not exposing John Doe to his family, friends, employer, or the authorities, McKinney made John Doe go with him to a nearby ATM to get some form of this payment. John Doe was only able to pay $100 at that time and McKinney demanded that he pay the balance in the next few days.
After this encounter, John Doe received a flurry of text messages from McKinney, who made threats and demanded money. McKinney claimed he sent the video file to a friend who worked at a local news agency. He also attempted to confront John Doe by arriving unannounced at his home. After numerous texts and an attempted in-face confrontation, John Doe approached the authorities and advised them of the extortion attempts. The text message threats from McKinney continued, and soon John Doe learned that McKinney was posting information about him and his wife on his Facebook page. Eventually, an exchange was arranged (through the direction of the Kansas City Police Department) to pay the remainder of the money in exchange for a USB drive with the video on it.
On April 7, 2011, McKinney was arrested at DeVry University in Kansas City, Mo. (where he was a student) after he exchanged a USB drive containing the video for money that he had been demanding from John Doe. Evidence uncovered during the investigation included various videos and images constituting child pornography with McKinney engaged in sexual activity with the same child victim. When investigators searched the minor’s cell phone, they found several sexually explicit photos of McKinney and the minor as well as sexually explicit photos of John Doe and the minor.
McKinney admitted that while he was incarcerated after his arrest he called the child victim dozens of times in repeated efforts to get her to recant her prior statements and testimony and persuade her to submit a statement on his behalf in the hopes of getting the charges against him dismissed.
Under federal statutes McKinney is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick D. Daly and Brian P. Casey. It was investigated by the Kansas City, Mo., Police Department and the FBI in conjunction with the Human Trafficking Rescue Project.Joint Federal and State Firearms Operation Nets More Than 40 Arrests - Over 100 Firearms Taken Off of the StreetsRead the Press Release
Tampa, FL - U.S. Attorney Robert E. O'Neill, along with Special Agent in Charge (Tampa) Julie Torres of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Lisa Womack, Lakeland Police Department, announce the results of a joint operation charging twenty-five individuals with federal firearms and drug trafficking crimes. In addition, sixteen more individuals are charged with state offenses. The penalties faced by defendants in this investigation vary based upon the drug amounts and types, as well as their criminal histories. Maximum penalties for some include up to life imprisonment.
Beginning in July 2012, Operation “Smoke-N-Guns” began targeting convicted felons, drug dealers and gang members who were illegally possessing or selling firearms in the Lakeland, Florida area.
“This investigation targeted those criminals and felons who are prohibited from possessing guns,” said U.S. Attorney Robert O’Neill. “Today’s operation was aimed at getting those illegal guns out of the hands of criminals and off the streets.”
“Operation ‘Smoke-N-Guns’ is the essence of great law enforcement collaboration and teamwork,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Julie Torres. “I am very proud of the men and women of ATF who worked very hard alongside our partners to put the worst of the worst behind bars. This case is a good representation of what we should continue to achieve.”
Lakeland Police Chief Lisa Womack stated, “Reducing gun violence in the City of Lakeland and our area is a top priority of this department. The proliferation of gun violence in our area and across the nation is disturbing and this operation is a step in the right direction in reducing the number of guns on our streets. The teamwork between Lakeland officers and our partners in this operation was phenomenal and we look forward to future operations to address this issue. We never have a problem putting those behind bars that want to bring their illegal activities to our area.” An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeland Police Department. The cases will be prosecuted by Assistant United States Attorneys Stacie B. Harris, Joseph Swanson, Mark Bini, Jennifer Peresie and Josie Thomas. It is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Ira Isaacs Sentenced to 48 Months in Prison in Los Angeles Adult Obscenity CaseRead the Press Release
WASHINGTON – Ira Isaacs was sentenced today to serve 48 months in prison for engaging in the business of producing and selling obscene videos and distributing obscene videos, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office and Los Angeles Police Department Chief Charlie Beck.
Isaacs, 61, of Los Angeles, was sentenced by U.S. District Court Judge George H. King in the Central District of California. In addition to his prison term, Isaacs was sentenced to three years of supervised release and ordered to pay a $10,000 fine.
On April 27, 2012, Isaacs was convicted by a federal jury in Los Angeles on all counts of a superseding indictment filed in April 2011.
Evidence presented at trial established that beginning in or about 1999 and continuing until at least 2011, Isaacs, doing business under the name L.A. Media, operated numerous websites, through which he advertised and sold obscene videos that he acquired from other people. The obscene videos included a video approximately two hours in length of a female engaging in sex acts involving human bodily waste and a video one hour and 37 minutes in length of a female engaged in sex acts with animals.
The evidence presented at trial also established that in approximately 2004, Isaacs began operating under the name Stolen Car Films, and made obscene videos in which he instructed women to engage in sexual activity involving human bodily waste. He subsequently advertised and sold the videos through his various websites.
The case is being prosecuted by Trial Attorney Michael W. Grant and Deputy Chief Damon King of the Criminal Division’s Child Exploitation and Obscenity Section, with the assistance of Trial Attorney Jeannette Gunderson of the Criminal Division’s Asset Forfeiture and Money Laundering Section. The investigation was conducted by the FBI and Los Angeles Police Department.
Hudson County, N.J., Pediatrician Charged with Fraudulently Billing Medicaid for Nearly $1 MillionRead the Press Release
NEWARK, N.J. – A Hudson County, N.J., pediatrician was arrested at his home this morning for fraudulently billing Medicaid $900,000 for wound-repair treatments on children that were never rendered, U.S. Attorney Paul J. Fishman announced.
Badawy M. Badawy, M.D., 50, of Bayonne, N.J., a licensed pediatrician who owns and operates Sinai Medical Center of Jersey City LLC, a medical practice focusing primarily on pediatrics and family medicine, billed Medicaid thousands of times for nearly $900,000 worth of wound repairs on children and adolescents. He was charged by Complaint with healthcare fraud and is scheduled to make his initial court appearance later today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the Complaint:
From January 2004 through December 2008, Badawy billed Medicaid, through its
managed care companies, for certain wound repairs more frequently than any other service provider in the State of New Jersey. His claims for these supposed treatments represented a strong majority of all such claims submitted to Medicaid by all New Jersey medical providers during this time period, including 99.4 percent of all claims for the suturing or stapling of facial wounds larger than 30 centimeters.Virtually all of these claims, which were submitted for supposed wound repairs on children, were fraudulent. Badawy’s patient charts for a large sample of these children who supposedly received treatment revealed no entry, notation, or other evidence, such as suturing or other closing methods, to support his claims that these procedures were actually performed.
The Complaint also identifies by initials 10 children whom Badawy claimed to have treated for wound repairs on numerous occasions.
∙ From April 2004 through June 2007, Badawy purportedly treated three children on 28 separate occasions for a total of 49 procedures involving some type of wound repair. According to the children’s mother, none of these children has ever had a cut that required stitches or other methods of wound closure.
∙ From March 2006 through February 2007, Badawy submitted eight claims for facial wound repairs, including two 30-centimeter facial wound repairs, on a single teenager during four different visits. According to the teenager, he had never seen Badawy for wounds to his face or other body parts.
∙ From July 2005 through July 2007, Dr. Badawy supposedly performed 15 wound repairs, including six 30-centimeter facial wound repairs, on a boy on eight separate occasions. According to the boy, he was never treated for a cut to his face.
The charge of health care fraud carries a maximum potential penalty of up to 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss resulting from the crime.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell, and the FBI, under the direction of Acting Special Agent in Charge David Velazquez, with the investigation leading to today’s arrest.
The government is represented by Scott B. McBride of the U.S. Attorney’s Health Care and Government Fraud Unit.13-030
Defense counsel: Michael J. Keating Esq., Cranford, N.J.Badawy Complaint
Hampton Man Sentenced for Role in Drug Deal ShootoutRead the Press Release
NEWPORT NEWS, Va. – Randell Lamont Woods, 24, of Hampton, Virginia, was sentenced yesterday to 66months in prison, followed by four years of supervised release, for conspiracy to distribute cocaine.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Anton A. Bell, Commonwealth’s Attorney for the City of Hampton, made the announcement after sentencing by United States District Judge Raymond A. Jackson.Woods pled guilty on June 11, 2012.
According to court documents, on December 27, 2011, Woods planned a drug delivery in the parking lot of the Hampton Walmart. During the course of the drug deal, twenty-five shots were exchanged between Christopher Vinson, David Andrews, and a third individual. Woods was armed with a stolen .45 caliber firearm and provided cover to Andrews during the shootout. Woods and Andrews retreated to a nearby motel where they surrendered to Hampton Police after a seven hour standoff.Christopher Vinson pled guilty to his participation in the crime on April 23, 2012 and was sentenced on September 10, 2012, to 96 months in prison and three years of supervised release. David Andrews pled guilty on June 5, 2012, and was sentenced on September 24, 2012, to 228 months in prison and five years of supervised release.
This case was investigated by the Federal Bureau of Investigation and the Hampton Police Division. Special Assistant United States Attorney Timothy Murphy prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Hamburg Woman Indicted on Fraud and Tax ChargesRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo returned a 17 count indictment charging Sheri L. Becirovic, 46, of Hamburg, N.Y., with conspiracy to defraud the United States, conspiracy to file fraudulent tax returns, filing a fraudulent tax return, misuse of social security numbers, and aggravated identity theft. The charges carry a maximum penalty of 20 years, a mandatory minimum of two years for each aggravated identity theft conviction, and a fine of $250,000.
Assistant U.S. Trini E. Ross, who is handling the case, stated that according to the indictment, the defendant obtained the social security numbers of seven family members and friends. Becirovic provided those numbers to a co-conspirator who used them to file fraudulent tax returns for the tax year 2011.
The indictment is the culmination of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector in Charge Kevin M. Niland, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
Goffstown Man Sentenced to 8 Years on Child Pornography OffenseRead the Press Release
CONCORD, N.H. – Joseph Edwards, 38, of Goffstown was sentenced in United States District Court for the District of New Hampshire to 8 years in federal prison and 10 years of supervised release after pleading guilty to one count of possession of child pornography, announced United States Attorney John P. Kacavas.
Edwards was arrested in April of 2012 following a criminal investigation by the Goffstown Police Department and the Federal Bureau of Investigation that began when a citizen reported that images of child pornography had been observed in Edward’s residence. A search warrant executed at Edward’s residence revealed numerous videos depicting the sexual assault of children that had been downloaded through the internet and stored on a computer owned by Edwards.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Goffstown Police Department, the Federal Bureau of Investigation and Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon, the U.S. Attorney’s coordinator for Project Safe Childhood.
Georgia Man Sentenced for FraudRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Tony Leon Smith, 64, of Snellville, Georgia, who was convicted after a jury trial of wire fraud and money laundering, was sentenced to 96 months in prison and ordered to pay restitution in the amount of $5,175,000 by U.S. District Judge Charles J. Siragusa.
According to Assistant U.S. Attorneys Tiffany H. Lee and John J. Field, who handled the prosecution of the case at trial, the defendant defrauded two investors in the Western District of New York in two separate high yield investment schemes out of a total of $5,175,000. Smith claimed to be a multi-millionaire and experienced investor and employed an elaborate ruse to convince his victims that he had experience in international investments. The defendant promised his victims high yield returns in a short period of time. Smith convinced one victim to wire him $5,000,000 to an offshore bank account in St. Kitts. Instead of investing the amount as promised, the defendant wire transferred the money back to himself and others into bank accounts in Rochester, NY. Neither victim ever got their money back.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Christopher M. Piehota and the United States Postal Inspection Service, under the direction of Kevin M. Niland, Inspector in Charge, Boston Division.
Former Employee Admits Using Hospital Credit Card for Personal UseRead the Press Release
PITTSBURGH - A resident of Allegheny County pleaded guilty in federal court to a charge of wire fraud, United States Attorney David J. Hickton announced today.
Timothy L. Mangis, 49, of Imperial, Pa., pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, Mangis, as a former Facilities Director at Magee-Womens Hospital of UPMC, used a UPMC credit card to obtain merchandise for himself, including auto repair services for his car, building materials and appliances, and electronic equipment at retailers such as Pep Boys, Lowe's, Home Depot and Best Buy.
Judge Hornack scheduled sentencing for April 9, 2013. The law provides for a maximum total sentence of 20 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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Timothy L. Mangis.
Former Convicted Felon and Gang Member to Serve 46 Months in Prison for Possession of Firearms Purchased at Gun ShowRead the Press Release
Oklahoma City, Oklahoma – JORDAN ABE CHAVIRA, 22, of Oklahoma City, was sentenced by United States District Judge Stephen P. Friot to serve 46 months in prison for unlawful possession of firearms as a prior convicted felon, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. The firearms were purchased at a local gun show.
"It is a priority of this office to work with law enforcement to keep firearms out of the hands of felons," said U.S. Attorney Coats. "The defendant, a convicted felon, was able to purchase two semiautomatic firearms and ammunition at a local gun show without the necessity of a background check. Fortunately, alert Oklahoma City Police Officers were able to arrest and unarm the defendant before a violent crime was committed. Anyone who is legally prohibited from possessing firearms or ammunition, including convicted felons, better think twice before doing so. Law enforcement is committed to protecting law-abiding citizens from gun violence, and at the core of that effort is the apprehension and prosecution of felons who possess guns."
"The successful prosecution of Chavira by U.S. Attorney Coats highlights the cooperation between the Oklahoma City Police Department and ATF during the last 13 months to proactively keep firearms out of the hands of criminals who use gun show venues to purchase firearms," said OCPD Chief Bill Citty.
"This investigation is an example of ATF's partnership with the Oklahoma City Police Department to address violent crime associated with violent gangs and convicted felons in the Oklahoma City area as they attempt to illegally acquire firearms as tools of their trade," said Robert R. Champion, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to Judge Friot’s findings at sentencing, attached below, Chavira is a convicted felon and former member of the Southside Locos, a gang with a long history of violent criminal activity in Oklahoma City. On March 18, 2012, gang enforcement officers from the Oklahoma City Police Department were participating in a surveillance of a gun show in Oklahoma City. At the gun show, officers overheard Chavira approach a vendor and say, “no paperwork right,” referring to an ATF form used for a background check in order to purchase a firearm. After the dealer stated that paperwork was required because he was a federal firearms licensee, Chavira walked away and did not purchase any items from that dealer.
At the gun show, Officers observed Chavira purchase an Intratec 9 mm semiautomatic machine pistol with a high capacity magazine walk from one private vendor, a Glock Model 22, 40 caliber semiautomatic handgun from a different private vendor, and ammunition from a yet another private vendor. Each of these purchases was made by Chavira with cash and without any receipts or other paperwork completed.
Chavira and his friend left the gun show in a vehicle which was subsequently stopped by OCPD officers. In the vehicle, officers found a 9 mm semiautomatic handgun capable of handling a large capacity 32-round magazine, a .40 caliber Glock Model 22 semiautomatic handgun, three high capacity magazines, one box of 9 mm bullets with 40 rounds, and .22 caliber bullets.
Chavira was indicted on June 5, 2012. On August 10, 2012, he pled guilty to the indictment without a plea agreement.
Judge Friot ordered that Chavira serve 46 months in federal prison, followed by three years of supervised release. As a convicted felon, Chavira is prohibited from possessing firearms or ammunition in the future.
This case was the result of an investigation conducted by the Oklahoma City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Lee Borden.
Reference is made to court documents for further information.
Former College Bursar Sentenced to 27 Months in Prison for Embezzlement SchemeRead the Press Release
Ordered to Repay Over $398,000 in Restitution to College
Oklahoma City, Oklahoma – Today, BRANDI J. HENSON, 49, of Yukon, Oklahoma, was sentenced to 27 months in federal prison in connection with a scheme to embezzle nearly $400,000 from Oklahoma City Community College, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Henson worked as the bursar at Oklahoma City Community College (“OCCC”) from 2003 through 2011. As bursar, she had access to the college’s PayPal account. PayPal allows users to maintain financial accounts for the purpose of transferring money over the Internet. In her duties as bursar, Henson used OCCC’s PayPal account to process refunds to students’ credit cards.
Henson was charged on July 10, 2012, with wire fraud relating to a scheme to embezzle money from OCCC. On August 16, 2012, Henson pled guilty to one count of wire fraud. At the plea hearing, she admitted that she improperly used the college’s PayPal account to post refunds/credits to her personal credit cards. Henson also admitted that the embezzlement scheme lasted from 2004 to 2011. According to the Information filed against her, Henson paid off more than $398,000 in personal credit card bills with OCCC refunds that she posted to her personal accounts.
At today’s sentencing, United States District Judge David L. Russell sentenced Henson to 27 months in federal prison, followed by three years of supervised release. In addition, Judge Russell ordered Henson to pay restitution to OCCC in the amount of $398,315.12. Henson must report to federal prison on February 18, 2013.
The case is the result of an investigation conducted by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Former Bank Examiner Sentenced for Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former bank examiner for the Federal Deposit Insurance Corporation (FDIC) was sentenced in federal court today for participating in a mortgage fraud scheme involving the sale of his house in Lee’s Summit, Mo.
Rodney Foster, 47, of Lee’s Summit, was sentenced by U.S. District Judge Brian C. Wimes to 12 months in federal prison without parole. Foster was taken into custody immediately after the hearing to begin serving his sentence.
On July 20, 2012, Foster was convicted of participating in a conspiracy to commit aggravated identity theft and wire fraud from Nov. 28 to Dec. 9, 2005, related to the sale of the Lee's Summit residence.
Foster and his co-conspirators obtained names, birth dates and Social Security numbers of others, without their knowledge or permission. They used this stolen identity information to apply for mortgage loans to purchase real estate. Conspirators used the stolen identities to disguise the fact that they did not have sufficient credit to purchase the properties using their own identities. Conspirators deposited the proceeds of the mortgage loans in fraudulent bank accounts of non-existent businesses in order to take cash out of each transaction.
Foster acted as a mortgage broker for the sale of the residential property in Lee=s Summit, which belonged to he and his wife (they have subsequently divorced). Foster agreed that the property could be sold for $280,000 to a straw buyer through the mortgage fraud scheme, with the proceeds split among Foster and the other conspirators. Foster knew the appraisal for the residence had been fraudulently inflated in order for conspirators to receive cash out of the purchase based on artificial equity. A portion of the proceeds – approximately $56,000 – was wired to a fraudulent bank account in the name of an identity theft victim.
Several of Foster's co-conspirators, who were not charged in this indictment, have been convicted in separate cases related to the Lee’s Summit residence and other similar schemes.
This case was prosecuted by Assistant U.S. Attorney John E. Cowles. It was investigated by Federal Deposit Insurance Corporation, Office of Inspector General, the U.S. Secret Service and IRS-Criminal Investigation.
Financing Scheme Gets Florida Man 41 Months in Federal PrisonRead the Press Release
SHREVEPORT, La.: United States Attorney Stephanie A. Finley announced that Alcides Roman, age 53, of Ocoee, Florida, was sentenced Monday to 41 months in prison and 3 years supervised release for defrauding $340,000 from individuals in Louisiana seeking business loans. The sentence was handed down by United States District Judge Tom Stagg. Roman was also ordered to pay $340,000 to his victims.
In November 2007, Roman, doing business as Amstar Investment Properties, procured wire transfers of money from two different advanced fee contracts. The first transfer involved a wire transfer of $200,000 by an individual looking for financing on several properties in Alabama and Florida. Roman represented that he could secure financing in the amount of $26 million for an advance fee of $200,000. The individual sent the money as requested but never received the financing or a refund on the fee as promised. The investigation revealed a second set of victims in Texas who also sent money in November of 2007.
Roman pleaded guilty to wire fraud in September 2012. He is to report to the Bureau of Prisons on February 25, 2013.
The case was investigated by the FBI-Shreveport Resident Agency, and was prosecuted by Senior Litigation Counsel Joseph G. Jarzabek.
Final Defendant Sentenced in Kankakee Clean Air Act ProsecutionRead the Press Release
Urbana, Ill. – Michael Pinski, who previously pled guilty to violation of the Clean Air Act related to illegal and unsafe asbestos removal from a Kankakee, Ill., building he owned, has been sentenced. On Monday, Jan. 14, 2013, U.S. District Judge Michael P. McCuskey ordered that Pinski, 44, of Kankakee, Ill., serve six months in prison, followed by two years of supervised release including six months of home detention. Pinski was ordered to report to the federal Bureau of Prisons on Feb. 20, 2013. On Aug. 19, 2011, Pinski entered a plea of guilty to violating the Clean Air Act by failing to notify the Illinois EPA of an asbestos removal job that took place at a warehouse in Kankakee, Illinois that Pinski owned. Pinski was charged in June 2010, along with Duane “Butch” O’Malley, 60, of Bourbonnais, and James A. Mikrut, 50, of Manteno.
Mikrut, who pled guilty to five counts of violating the Clean Air Act, was sentenced on Sept. 20, 2012, to 12 months and one day in prison, followed by one year of supervised release under home detention. Mikrut was ordered to pay restitution of $47,085 to the Environmental Protection Agency along with co-defendant O’Malley. On July 25, 2012, O’Malley, convicted by a jury in September 2011, was sentenced to 10 years in prison, fined $15,000, and ordered to remain on supervised release for a period of three years following completion of his prison sentence.
Under provisions of the Clean Air Act, the EPA has promulgated rules, regulations and requirements to control the removal, handling and disposal of asbestos, a hazardous air pollutant. Any owner or operator of a renovation or demolition activity which involves removal of specified amounts of asbestos-containing material must comply with the EPA regulations.
Pinski pled guilty to violation of the Clean Air Act related to the illegal and unsafe removal of asbestos-containing insulation from pipes in a five-story building at 197 South West Ave., in Kankakee, that was owned by Pinski through his company, Dearborn Management, Inc. In August 2009, Pinski hired O’Malley, owner and operator of Origin Fire Protection. During O’Malley’s trial, the government presented evidence that neither O’Malley nor his company was trained to perform the asbestos removal work and that O’Malley agreed to remove the asbestos insulation for an amount that was substantially less than a trained asbestos abatement contractor would have charged to perform the work. Further, O’Malley arranged for Mikrut to recruit and oversee workers to remove the asbestos.
The government’s evidence showed that there was no notification of the planned asbestos removal work given to the Illinois EPA or the U.S. EPA, among other various violations of the Clean Air Act and EPA regulations.
The charges were investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division, with assistance from the Illinois Environmental Protection Agency and the U.S. Environmental Protection Agency’s Superfund Division. Assistant U.S. Attorney Eugene L. Miller and Special Assistant U.S. Attorney James Cha prosecuted the case.
Federal Jury Convicts Felon of Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a jury found a St. Paul man guilty of being a felon in possession of a nine-millimeter, semi-automatic pistol. Demetrius Demarco Spencer, age unknown, was convicted on one count. He was indicted on November 14, 2012.
According to the indictment and the evidence presented at trial, Spencer possessed the gun on August 23, 2012. On that day, officers on routine patrol outside of a Minneapolis nightclub saw Spencer standing in the parking lot. He reached into his pants and removed an “L-shaped” item covered with a white sock. He carried the item to a nearby car and placed it under the front seat. Later officers recovered the pistol, which had been hidden inside the sock.
Because he is a felon, Spencer is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include possession of a pistol by a prohibited person (2003), assault in the third degree (2007), and aggravated robbery (2007). Spencer was also convicted in Ramsey County for possession of a pistol by a prohibited person (2000).In the current federal case, Spencer faces a potential maximum penalty of ten years in prison. United States District Court Chief Judge Michael J. Davis will determine his sentence at a future hearing, yet to be scheduled.
This case resulted from an investigation by the Minneapolis Police Department and the Violent Impact Team for the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.Federal Jury Convicts Courtnee BrantleyRead the Press Release
Tampa, Florida - A federal jury today found Courtnee Nicole Brantley (24, Seffner) guilty of misprision of felony in regard to the shooting deaths of Tampa Police Department Officers David Curtis and Jeffrey Kocab by convicted felon Dontae Morris. The verdict is a result of Brantley’s knowledge of a federal felony (the possession of a firearm by a convicted felon), her failure to report, and concealment of that crime. She faces a maximum penalty of three years in federal prison. A sentencing date has not yet been scheduled. Brantley was indicted on October 6, 2010.
Evidence presented during the trial revealed that on June 29, 2010, Brantley was stopped by Officer Curtis for driving without a vehicle license tag. During the stop, Officer Curtis learned that Morris, a passenger in Brantley’s vehicle, had an active warrant for his arrest. When Officer Curtis attempted to arrest Morris, with the assistance of Officer Kocab, Morris shot and killed both officers. Brantley fled from the scene to a nearby apartment complex. She parked her car nearly 500 yards away from the apartment. Brantley was found at the apartment later that day. Phone and text message records revealed communications between Brantley and Morris following the shootings. In a lengthy interview process, Brantley repeatedly refused to name the passenger in her vehicle.
This case was investigated by the Tampa Police Department, with assistance from the Federal Bureau of Investigation, Florida Department of Law Enforcement, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hillsborough County Sheriff’s Office. Additional agencies participated in the manhunt for Morris. The case is being prosecuted by Assistant United States Attorney James C. Preston, Jr.
Federal Grand Jury Indicts Rocky and Leon Houston for Federal Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. – On Tuesday, Jan. 15, 2013, a federal grand jury in Knoxville returned a 14-count indictment against Rocky Houston, 52, charging him with being a felon in possession of firearms. A one-count indictment was also returned again Leon Houston, 54, for possession of firearms while being an unlawful user of controlled substances.
Both Houstons are residents of Ten Mile, Tenn. If convicted, each faces up to 10 years in prison and a fine of up to $250,000.
Arraignment for Rocky Houston is scheduled for 3:00 p.m., Wednesday, Jan. 16, 2013, in U.S. District Court in Knoxville. An arraignment and detention hearing for Leon Houston is scheduled for 1:30 p.m., Thursday, Jan. 17, 2013, also in U.S. District Court in Knoxville.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Faribault Man Pleads Guilty to Bank FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 39-year-old Faribault man pleaded guilty to writing 127 fraudulent checks to himself. Ronald Leo Schaeffer pleaded guilty to one count of bank fraud in connection to the crime. Schaeffer was charged on December 6, 2012, and entered his plea before United States District Court Judge David S. Doty.
In his plea agreement, Schaeffer admitted that from August of 2008 through April of 2012, he stole approximately $432,504.10 from his employer, Environmental Tillage Systems, Inc. (“ETS”). ETS, an agricultural manufacturing company in Faribault, hired Schaeffer as its sole in-house accountant. Among other duties, he was responsible for using the QuickBooks accounting software to record information regarding payments owed by ETS to vendors and employees.
Schaeffer admittedly wrote approximately 127 fraudulent checks against the ETS checking account, in amounts ranging from approximately $400 to $12,000, for deposit into his personal account. To conceal his actions, he also made false entries in ETS’s QuickBooks accounting records in an effort to make it appear as if the checks were issued to legitimate ETS vendors.For a period of time, Schaeffer had the authority to use a signature stamp to validate company checks. Beginning in November of 2010, he was directed to obtain the actual signatures of ETS’s CEO or CFO on all checks before disbursing them. At that point, he began forging the signature of the CEO or CFO on any check he wrote to himself. He used the money he stole to build a lake home in Elysian, Minnesota, and make payments on his auto and home-equity loans.
For his crime, Schaeffer faces a potential maximum penalty of 30 years in federal prison, as well as possible fines and orders of forfeiture. Judge Doty will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Benjamin F. Langner.Excelsior Springs Man Sentenced for $3.5 Million Securities Fraud, False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Chris Koster, Missouri Attorney General, announced that an Excelsior Springs, Mo., man was sentenced in federal court today on charges related to several investment schemes in which at least a dozen victims lost more than $3.5 million.
Daniel Meredith, 51, of Excelsior Springs, was sentenced by U.S. District Judge Brian C. Wimes to 11 years in federal prison without parole, which is the longest penalty recommended under the federal sentencing guidelines. The court also ordered Meredith to pay $3,572,526 in restitution to his victims.
On Aug. 7, 2012, Meredith pleaded guilty to one count of securities fraud and two counts of filing false tax returns. Meredith admitted that he obtained more than $3.5 million by defrauding at least 12 victims in Missouri and Kansas through various schemes through the end of March 2012. His victims were his friends and neighbors. Five of the victims invested hundreds of thousands of dollars and one victim lost millions of dollars. According to court documents, Meredith cheated one victim out of an additional $28,000 several months after confessing his crimes to federal authorities, while he was negotiating his guilty plea. One victim was forced to file for bankruptcy as a result, according to court documents, and an elderly victim’s life savings was decimated, causing his family severe financial hardship.
Meredith’s fraud schemes included a Bolivian land scheme and fake Scooter’s Coffeehouse franchise agreements. Instead of investing their money as promised, he lost it at the blackjack tables at Ameristar and Isle of Capri. He spent the rest on extravagant purchases, including fine horses, lavish trips and a beautiful rental home near Excelsior Springs on acreage with private stables.
Bolivian Land Scheme
Meredith solicited investors beginning in 1995 to collect money for his purported Bolivian land deal. Meredith told prospective investors that his father had been in the CIA in the 1960s and that somehow he had a special opportunity to obtain valuable property in Bolivia. Meredith said his land is comprised of 300,000 acres, including a mansion, an air strip, oil fields, gold mines, and other valuable attributes. He promised investors lavish returns on their investments.
Meredith told elaborate false tales to convince investors to continue giving him money. To keep investors interested, he would tell tales of purported telephone calls with former President Bill Clinton, and he circulated a Photoshopped picture of himself with President George W. Bush. Meredith claimed to know the president of Bolivia and claimed Bolivian citizenship. Meredith claimed he once met with George Bush and that they flew down to Crawford, Texas. He frequently claimed that he was flying out of Whiteman Air Force Base to meet with government officials in Washington, D.C., Crawford and elsewhere. He also provided false excuses why he could not pay their money back.
Meredith went to great lengths to make these stories seem plausible, even paying someone to pose as an NSA agent. Meredith spun tales of a hijacked plane and provided an investor with a locked briefcase purportedly containing a fortune, but actually containing bricks.
Meredith admitted that he defrauded one victim out of $1.87 million and other victims out of an additional $950,000. One of the checks written by an investor in August 2007 was used in part to pay a cabinet-maker who had worked on Meredith’s former home. The cabinet-maker said that Meredith was “throwing around $100 bills.” Meredith gutted the house and rebuilt the inside in extravagant fashion, which included tile floors in the garage with his initials.
Scooter’s Coffeehouses
From May 15 to June 30, 2007, Meredith solicited money from individuals for investment in purported Scooter’s Coffeehouses when, in actuality, he had no connection with Scooters. Meredith received $90,000 from two victims who believed that they were investing in Scooter’s Coffeehouses. One victim also provided Meredith with an additional $25,000 in cash. Meredith used the money for gambling and other personal expenses. Meredith did not pay these victims back.
Meredith told one of these victims that his father ran the Meredith Publishing Corporation in Des Moines. The Missouri Attorney General’s Office received a letter from the General Counsel of the Meredith Corporation stating: “…a man named Dan Meredith…has on occasion been making representations that he has access to, and perhaps will inherit, the fortune of the Meredith family. He uses this supposed connection to lure others into questionable business deals. The Meredith family obviously is greatly troubled by these false representations and wants them to cease immediately. Dan Meredith’s actions are particularly troublesome to the Meredith family because our research indicates that he has a prior criminal record, including incarceration.”
Tax Fraud
In 2006 and 2007, Meredith received $510,900 from others under false pretenses. He did not use the money for the purposes intended, and he did not report this income on his tax returns. According to today’s plea agreement, Meredith has an additional tax due and owing for 2006 and 2007 of $139,679.
Although he was required to do so, according to the plea agreement, he did not file returns for 2008 through 2010. During those years, Meredith received at least $1.6 million from the Bolivian land scheme. The total dollar amount Meredith received from his schemes but did not pay taxes on is at least $3.5 million.Use of Proceeds
Meredith owns multiple horses and spends significantly on horse-related items and activities. For example, Meredith wired $19,550 to Oklahoma in 2010 to purchase three horses.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson and Missouri Assistant Attorney General Lauren Barrett. It was investigated by IRS-Criminal Investigation, the Missouri Attorney General’s Office and the Missouri Department of Revenue, Criminal Tax Investigation Bureau.
Meredith had an extensive gambling habit. For 2007 alone, Meredith’s losses tracked at Ameristar Casino totaled $76,454. From 2008 through October 2011, Meredith’s losses totaled an additional $555,863.Eureka Man Pleads Guilty to Intent to Distribute Heroin, Possession of Firearms in Furtherance of Drug TraffickingRead the Press Release
SAN FRANCISCO – Robert Wildman, 31, pleaded guilty in federal court in San Francisco yesterday afternoon to one count of possession with intent to distribute heroin and one count of possession of firearms in furtherance of a drug trafficking crime, announced United States Attorney Melinda Haag.
During yesterday’s plea hearing before U.S. District Court Judge Richard Seeborg, Wildman admitted that on Aug. 22, 2012, he was sitting in the driver’s seat of a Jeep Grand Cherokee in a parking lot when he was approached by a Eureka Police Department officer. As the police officer walked towards Wildman’s vehicle, Wildman drove off through the parking lot and then led the officer on a chase through residential streets and onto Highway 101. The chase lasted approximately 30 minutes. Wildman admitted that he ran through red lights and stop signs and also drove into oncoming traffic during the chase. Also during the chase, Wildman threw a loaded M-11 pistol out of the window of his vehicle. Wildman was eventually apprehended after he ran over a spike strip that officers had set up on the highway. Wildman admitted that he knowingly possessed the SKS assault rifle and 19.6 grams of heroin that officers located in his vehicle.
Wildman has been in custody since his arrest. He is scheduled to be sentenced on April 2, before Judge Richard Seeborg in San Francisco. At sentencing, Wildman will face a minimum mandatory sentence of five years and a maximum sentence of life in prison, a fine of up to $1 million and a maximum term of life on supervised release.
The case is being prosecuted by Assistant U.S. Attorney Randy Luskey with the assistance of Daniel Charlier-Smith. This case was investigated by the Federal Bureau of Investigation’s Eureka Resident Agency and the Eureka Police Department.
(Robert Wildman Information )
East St. Louis Man Pleads Guilty to Firearms OffenseRead the Press Release
An East St. Louis man pled guilty in federal district court on January 16, 2013, to an Indictment charging him with the unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Travis D. Summerville, 33, East St. Louis, IL, faces a term of in prison of not more than ten (10) years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years when he is sentenced on April 26, 2013. Summerville also agreed to forfeit the firearm he illegally possessed.
The violation occurred on December 13, 2010, when members of the Working Against Violent Elements (WAVE) Task Force went to Summerville’s home to investigate an anonymous tip that drugs were being sold and that firearms were also present. Officers obtained a state search warrant for the home and recovered a 9mm semi-automatic firearm hidden in the basement ceiling next to a bag of suspected marihuana. 9mm shells and additional marihuana were found in Summerville’s bedroom. Summerville admitted possession of the gun in a voluntary statement to law enforcement officers, stating that he bought the gun “off the street” for $70. He also admitted that he hid the gun, along with some marihuana, in the basement of the residence. Finally, Summerville admitted knowing that he could not legally possess a firearm because of a previous felony conviction.
The case is assigned to Assistant United States Attorney Angela Scott.
East Side Los Guada Blood Gang Members Sentenced in Arizona for Violent AssaultRead the Press Release
WASHINGTON – Amorette Hough and Denrica Gloria Medina, two members of the East Side Los Guada Bloods, were sentenced today in Phoenix to serve 33 months in prison and 27 months in prison, respectively, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney John S. Leonardo of the District of Arizona.
Hough, 25, and Medina, 25, both of Scottsdale, Ariz., were sentenced by U.S. District Judge Frederick J. Martone in the District of Arizona. In addition to their prison terms, both defendants were sentenced to three years of supervised release after the completion of the prison sentence
On Oct. 16, 2012, Hough pleaded guilty to violent crime in aid of racketeering. On Sept. 26, 2012, Medina pleaded guilty to violent crime in aid of racketeering. Both guilty pleas were for the July 2009 attack of a member of the Salt River Pima Maricopa Indian Community.
Hough and Medina admitted to being members of the violent street gang known as East Side Los Guada Bloods, or East Side Bloods, which operates on the Salt River Pima Maricopa Indian Community in Scottsdale. According to a second superseding indictment filed on March 28, 2012, East Side Bloods members have warred with rival gang members on the reservation and participated in acts of violence including murder, attempted murder, drug distribution, armed robberies, threatening and intimidating witnesses, and firearms trafficking since the gang’s inception in the 1990s. The war that East Side Bloods maintained with rival gangs formed the basis for the July 2009 attack of a member of the Salt River Pima Maricopa Indian Community.
As part of their pleas in this case, Hough and Medina admitted that they were each part of the East Side Bloods gang that was present on July 26, 2009, at the home of a known East Side Bloods associate. The East Side Bloods gang members that were present were wearing red and burgundy – the colors of the East Side Bloods. Hough and Medina both admitted that they knew the victim was the mother of a rival gang member. Hough admitted that the victim came to the gathering, but did not get out of her vehicle after she arrived. After other East Side Blood members at the party realized the victim was in the vehicle, Hough assisted in forcibly removing the victim from the vehicle. According to court documents, Hough, Medina and others hit and kicked the victim to the point of unconsciousness. Hough and Medina also admitted that they continued to hit and kick the victim after the victim lost consciousness. Hough and Medina admitted that the reason for the assault was retaliation for the victim’s son purportedly committing a violent act against other East Side Blood family members. The victim suffered multiple facial fractures, a fractured left orbital socket and brain injury with swelling.
Co-defendants Denean Medina, Timothy Reyes and Christopher John Mack have pleaded guilty and await sentencing.
Co-defendants Martinez Francisco Jr., Delola Graycene Medina and Rudy Chavarria Jr. are awaiting trial, which is scheduled to begin on April 9, 2013, before U.S. District Court Judge Frederick J. Martone in Phoenix.
Denecio Francisco, 26, of Mesa, Ariz., was charged yesterday in a third superseding indictment for his role in the racketeering conspiracy.
This case is being prosecuted by Trial Attorney Leshia M. Lee-Dixon and Hans Miller of the Organized Crime and Gang Section, and Assistant U.S. Attorney Keith Vercauteren. This case was investigated by the Arizona Department of Public Safety GITTEM Task Force, Mesa, Ariz., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Salt River Pima Maricopa Police Department.
East End Man Sentenced to 262 Months for Gun ChargeRead the Press Release
PITTSBURGH - A resident of Pittsburgh was sentenced in federal court on Jan. 15, 2013, to 262 months incarceration on his conviction of federal firearms offense, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Timothy Wilson, 24.
According to information presented to the court, the defendant is a convicted felon who possessed a loaded sawed-off shotgun on April 20, 2011. The defendant gave a false name at the time of arrest and was wanted for escaping from custody after serving more than five years for multiple armed robberies.
Prior to imposing sentence, Judge Cercone considered that the defendant started his criminal career at age 14 when he assaulted his female victim and continued committing crimes after his multiple violent robberies.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of last name of Timothy Wilson.
Dublin Man Pleads Guilty in A Mortgage Fraud SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Gordon L. Yocom, 44, of Dublin, Ohio pleaded guilty to conspiracy to commit money laundering for fraudulently obtaining a mortgage loan to finance the purchase of a real estate property in Powell, Ohio. Yocom agreed to forfeit $119,000, which represented the proceeds of this transaction.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced Yocom’s plea which was entered today before U.S. District Judge Michael Watson.
According to court documents, Yocom owned and operated a mortgage brokerage business called Gordon Lending. Yocom and an employee of his, Nancy Rayfus, worked to arrange for a buyer to purchase a property located at 10577 Durham Place in Powell, Ohio. The buyer was from California, but it was Rayfus’ intent to reside at the property. The purchase contract was negotiated so Rayfus could obtain substantial cash payments at closing through the submission of two false invoices. Yocom knowingly provided funds to Rayfus in the amount of $123,500 for the purpose of funding the majority of the down payment for the purchase this property. Yocom purchased two official checks out of accounts that he controlled. The checks were made payable to Landsel Title. Yocom disguised the fact that he was the one providing the funds by having the bank place a variation of purchaser’s name as the remitter on each of the checks.
Yocom and Rayfus agreed that she would pay back the money used for the down payment from the proceeds of the sale of this property. Rayfus arranged for $350,000 to be paid to her from the seller’s proceeds by submitting false invoices to the lender for renovations supposedly performed at this property by companies under her custody and control. These renovations were never performed, and Rayfus was issued two checks payable to My Home Specialists Network and Norvath Group from Landsel Title in the amounts of $187,500 and $162,500, respectively. Rayfus deposited these funds into her bank accounts and then wrote a check payable to Yocom for $119,900, which Yocom deposited into his bank account. At the time of this deposit, Yocom was aware that these funds were the proceeds of false statements made to the lender.
Conspiracy to commit money laundering is punishable by up to ten years in prison and a fine of up to $250,000, or twice the value of the property involved, whichever is greater.
Yocom was released on bond pending his sentencing, for which a date has not yet been set.
On December 29, 2011, Nancy Rayfus pleaded guilty to one count of money laundering and is scheduled to be sentenced on February 14, 2013.
Stewart commended the cooperative investigation conducted by IRS and FBI agents as part of the Southern Ohio Mortgage Fraud Task Force, along with Assistant U.S. Attorneys Laura Fulton and Dan Brown, who are prosecuting this case.
Department of Justice Will Not Challenge Proposed<br /> New York Hospital Association Gainsharing ProgramRead the Press Release
WASHINGTON – The Department of Justice announced today that it will not challenge a proposal by the Greater New York Hospital Association (GNYHA) to offer a gainsharing program to member hospitals in New York. The department said that the proposed program should not adversely affect competition because hospitals will not exchange any confidential information and because each hospital will independently determine physician gainsharing amounts. According to GNYHA, gainsharing programs are designed to encourage physicians to take into account their use of hospital resources in their decision-making process. The department said that under the program, physicians could receive a share of the savings generated from reducing costs for treating commercial health-insurance and Medicaid and Medicare managed-care patients if the physicians meet hospital-specific quality standards.The department’s position was stated in a business review letter to counsel for GNYHA, from Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.
In issuing the letter, Assistant Attorney General Baer said, “Based on GNYHA’s representations, the proposed information sharing program is unlikely to facilitate collusion or otherwise raise competitive concerns.”
GNYHA is a trade association of hospitals and continuing care facilities in New York and several nearby states. GNYHA proposes to make available a voluntary gainsharing program to the approximately 100 hospitals that are its New York members.
Using publicly available and historical patient discharge data, an independent contractor of GNYHA will calculate a state-wide best practice norm for certain groups of treatments or procedures. The contractor will then use the data to measure the performance of individual physicians practicing at the participating hospitals relative to the best practice norm.
Each participating hospital will individually determine whether and how to use the performance data to determine physician gainsharing payments. Each hospital’s payment amounts to physicians will be limited by a cap that each participating hospital must independently establish. The cap must comply with all applicable fraud and abuse regulations. GNYHA reserves the right to exclude any hospital from the program if GNYHA believes that the hospital’s proposed cap does not comply with those laws and regulations.
Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided. The department reserves the right to challenge the proposed action under the antitrust laws if it produces anticompetitive effects.
A file containing the business review request and the department’s response may be examined in the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530. After a 30-day waiting period, the documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure.
Dea and State Police Bust Meth Distribution RingRead the Press Release
January 16, 2013David B. Fein, United States Attorney for the District of Connecticut, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration for New England, and Colonel Danny R. Stebbins of the Connecticut State Police, today announced that a federal grand jury sitting in Bridgeport has returned an indictment charging three Connecticut men and two California residents with conspiring to distribute methamphetamine. The indictment was returned on January 15, 2013.
According to statements made in court, this matter stems from a joint investigation by the Drug Enforcement Administration and the Connecticut State Police's Statewide Narcotics Task Force. The investigation has included the use of court-authorized wiretaps, controlled purchases of methamphetamine, physical surveillance and the use of an undercover officer. The investigation revealed KEVIN WALLIN of Waterbury allegedly received shipments of methamphetamine from individuals in California. On six occasions between September 2012 and January 2013, it is alleged that the undercover officer purchased methamphetamine from WALLIN.
“This case is a model for cooperation between federal and state law enforcement agencies,” stated U.S. Attorney Fein. “The hard work of the DEA and the Connecticut State Police in this case resulted in the dismantling of what we allege was a significant methamphetamine distribution organization that spanned from California to Connecticut.”
The indictment charges the following five individuals with one count of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine, and 50 grams of actual methamphetamine:
KEVIN WALLIN, 61, of Golden Hill Street, Waterbury
KENNETH DEVRIES, also known as "Lyme," 52, of Golden Hill Street ,Waterbury
MICHAEL NELSON, 40, of Buckland Hills Drive, Manchester
CHAD McCLUSKEY, 43, of San Clemente, Calif.,
KRISTEN LASCHOBER, 47, of Laguna Niguel, Calif.The indictment also charges WALLIN with six counts of possession with intent to distribute methamphetamine.
WALLIN and DEVRIES were arrested on criminal complaints on January 3, 2013. According to statements made in court, a court-authorized search of WALLIN's residence on that date revealed suspected methamphetamine, as well as items that government alleges are drug paraphernalia and drug packaging materials.
McCLUSKEY and LASCHOBER were arrested on criminal complaints in Las Vegas, Nev., on January 10, 2013.
NELSON was arrested yesterday after the indictment was returned.
All five defendants are currently detained, and the investigation is ongoing.
If convicted of the charge of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine, and 50 grams of actual methamphetamine, each of the defendants faces a minimum term of imprisonment of 10 years, a maximum term of imprisonment of life and a fine of up to $10 million. If convicted of the charge of possession with intent to distribute methamphetamine, WALLIN faces a maximum term of imprisonment of 20 years and a fine of up to $1 million, on each count.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being prosecuted by Assistant United States Attorneys Patrick Caruso and H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Council Bluffs Men Sentenced for Bank BurglaryRead the Press Release
COUNCIL BLUFFS, IA – On January 16, 2013, two Council Bluffs men, Robert Glade Edie III (age 35) and Patrick Allen Eggerling (age 19) were sentenced in United States District Court in Council Bluffs, Iowa for the burglary of Farmer’s Bank and Trust in Earling, Iowa, announced United States Attorney Nicholas A. Klinefeldt. United States District Court Judge John A. Jarvey sentenced Robert Edie to 34 months in prison, to be followed by 24 months of supervised release. The Judge sentenced Patrick Eggerling to 15 months in prison, to be followed by 36 months of supervised release. The Judge also ordered each defendant to pay a $100.00 special assessment to the Crime Victim Fund, and ordered that both defendants were jointly and severally liable for $10,918.80 in restitution.
Both defendants had previously entered guilty pleas to the bank burglary charge. The charge arose out of an April 12, 2012 incident in which the defendants during the night entered an exterior lobby of the Farmer’s Bank and Trust in Earling, Iowa, attached a log chain to an ATM, and using a stolen motor vehicle, pulled the ATM from its base and drug the ATM from the bank lobby. The defendants then put the ATM in the back of the stolen SUV and fled Earling, Iowa. The ATM contained approximately $6,000.00 when stolen by the defendants. A high speed chase ensued in which Harrison County Sheriff deputies, Pottawattamie County Sheriff deputies, and Iowa State Patrol troopers pursued the fleeing defendants. The chase included defendants driving at speeds in excess of 90 miles per hour in the wrong direction on the interstate, until Defendant Edie, driving the vehicle, lost control of the vehicle, with the vehicle becoming airborne, leaving the interstate, crashing through a fence, and coming to rest in a field. Law enforcement personnel captured the defendants hiding in a ravine near the wrecked vehicle, and recovered the ATM, still containing the stolen money. Both defendants were on State of Iowa probation or parole at the time of the bank burglary.
This case was investigated by the Shelby County Sheriff’s Department and the Federal Bureau of Investigation, with assistance from the Harrison County Sheriff’s Department, the Pottawattamie County Sheriff’s Department, and the Iowa State Patrol. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Cleveland Man Charged with Being A Felon in Possession of AmmunitionRead the Press Release
A criminal indictment was filed in U.S. District Court today charging a Cleveland man with being a felon in possession of ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Raymone “Ramone” Clements, 42, was found to have one round of .357-caliber ammunition and two rounds of .22-caliber ammunition on Dec. 20, 2012, despite previous convictions in the Cuyahoga County Court of Common Pleas for rape (2006), drug trafficking (2003) and aggravated robbery (1991), according to the indictment.
“This office places a high priority on keeping firearms and ammunition out of the hands of those who are forbidden by law from obtaining them,” Dettelbach said. “Whether is a person using a gun to commit a violent crime, a felon illegally obtaining ammunition or a straw purchaser trying to circumvent the law, we will aggressively pursue those who would violate our nation’s firearms laws.
“We will continue to work side by side with our federal, state, county and local law enforcement partners to make sure those individuals who illegally possess firearms and/or ammunition are held accountable for their actions,” said ATF Special Agent in Charge Robin Shoemaker, Columbus Field Division.
The Unites States Attorney’s Office for the Northern District of Ohio filed 176 indictments for violations of federal firearms laws last year, with the average sentence being more than six years in prison.
This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and Cleveland Heights Police Department.
The charge carries a maximum penalty of 10 years in prison. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, the defendant’s role in the offenses and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Anyone with information about Clements’ whereabouts is asked to call 1-800-ATF-GUNS or the Cleveland Heights Police Department 1-216-321-1234.
Chief Executive Officer of Superior Discount Coins Appears in Court in Colorado for Defrauding Gold Coin Investors Out of over $2.4 MillionRead the Press Release
DENVER – James P. Burg, age 61, formerly of Fairplay, Colorado, faces fraud charges related to a scheme to defraud gold coin investors, the U.S. Attorney’s Office, the FBI, the IRS-CI and the U.S. Postal Inspection Service announced. Burg was indicted by a federal grand jury in Denver on November 6, 2012 for charges of wire fraud, mail fraud, money laundering, and failure to file tax returns. The indictment remained sealed until his arrest in California on November 29, 2012. Burg then appeared in U.S. District Court for the Southern District of California. In court there Burg was ordered to be detained and transferred by U.S. Marshals from California to Colorado. Burg’s first Colorado court appearance occurred on January 2, 2013, where he was advised of his rights and the charges pending against him. He appeared in court on January 7, 2013 and again on January 14, 2013 for the purpose of a detention hearing. On January 14, 2013, U.S. Magistrate Judge Michael E. Hegarty ordered that Burg could be released prior to trial on a $50,000 secured property or cash bond. Once released on that pre-trial bond, Magistrate Judge Hegarty ordered Burg to a halfway house (once bed space is available), pending the resolution of the criminal case.
According to the indictment, beginning on or about October 1, 2007, and continuing through and including on or about January 12, 2012, in Colorado and elsewhere, James P. Burg devised and intended to devise a scheme to defraud customers that ordered coins from a business known as Superior Discount Coins and Gold Run Investments and for obtaining money from those customers by means of materially false and fraudulent pretenses, representations and promises. Burg took and received $2,464,099 from customers that ordered coins and he failed to deliver the coins as promised.
As part of the scheme, Burg represented that he was the Chief Executive Officer of a company known as Superior Discount Coins (“SDC”) and that SDC was in the business of selling coins. Burg also conducted business using a company known as Gold Run Investments (“GRI”) and represented that GRI was in the business of selling coins. At times, Burg operated GRI using the alias “Tim Burke”. Burg advertised and solicited customers through radio advertisements and over the internet using websites he controlled, including; www.superiordiscountcoins.com, www.yourcoinbroker.com, and www.goldruninvestments.net
Burg misrepresented and promised customers that if they ordered coins from SDC or GRI and paid him for those coins, he would deliver the coins to them or to accounts designated by them. He sent, and caused to be sent to customers that ordered coins from SDC or GRI invoices stating amounts of money owed for the coins and, in some cases, providing information about a bank account to which the customers should transfer their money to purchase the coins.
The money Burg received from customers was not used to purchase coins for such customers but instead he converted the money to his own use and benefit. Burg refused to refund money to customers in several instances where the customers requested a return of their money after he failed to deliver coins as originally promised. To prevent the scheme’s detection, Burg sometimes filled customers’ orders for coins only after such customers threatened to take legal action or report him to law enforcement authorities. Burg used one customer’s payment for coins to refund funds to another customer.
For calendar years 2006, 2007, 2008 and 2009, Burg failed to file income tax returns with the Internal Revenue Service as required by law. These returns were required to be filed with the IRS on April 15 following the subsequent above mentioned years.
“A core mission of the U.S. Attorney’s Office is to protect victims from scam artists who try to trick them out of their hard earned money,” said U.S. Attorney John Walsh.
“The FBI has made protecting innocent investors a priority,” said FBI Special Agent in Charge James Yacone. “As such, we will vigorously investigate those who engage in schemes to swindle and defraud.”
“The U.S. Postal Inspection Service has no shortage of investment investigations and this is another example of greed overcoming honest business practices,” said Adam Behnen, Inspector in Charge, with the U.S. Postal Inspection Service. “These criminal charges illustrate the commitment of the U.S. Postal Inspection Service to protect the American public by investigating individuals who use the U.S. Mail to further their schemes.”
“Fraud schemes are often described as a house of cards and will eventually fall apart exposing the individuals responsible,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “This is a great example of federal agencies working together.”
Burg was charged with six counts of wire fraud, nine counts of mail fraud, four counts of money laundering and four counts of willful failure to file tax returns. If convicted of the wire fraud and mail fraud counts, he faces not more than 20 years in federal prison, and a fine of up to $250,000 per count. If convicted of the money laundering counts, he faces not more than 10 years in federal prison, and a fine of up to $250,000 per count. If convicted of failing to file tax returns he faces not more than 1 year in federal prison, and a fine of up to $25,000 per count.
This case was investigated by special agents with the Federal Bureau of Investigation (FBI), the IRS-Criminal Investigation and the U.S. Postal Inspection Service.
Burg is being prosecuted by Assistant U.S. Attorney Timothy Neff.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
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Chadds Ford Man Pleads Guilty to Copyright InfringementRead the Press Release
PHILADELPHIA - Michael Moore, 45, of Chadds Ford, PA, pleaded guilty today to infringing copyrighted work related to broadcasts of hockey games. Moore admitted that he copied and sold, over the internet, copyrighted recordings of hockey games, parts of hockey games, and other hockey-related material between May 15, 2006 and November 10, 2006. He also admitted to copyright infringement between 2007 and 2010 as well.
Moore operated the website WWW.HDHOCKEY.TV which offered DVDs containing recordings of copyrighted television broadcasts of hockey games, and other copyrighted works, from the National Hockey League and other professional hockey leagues, for $19.99 plus shipping. Moore also operated WWW.BROADSTREETBULLY.COM. For $9.95 per month, subscribers to the website could download an unlimited number of video clips of copyrighted television broadcasts of hockey games, and other copyrighted works such as team and player profiles, from the NHL and other professional hockey leagues. Neither site had the permission of the NHL or any other professional hockey league to reproduce or distribute these recordings. Among the products he sold was an Olympic Games hockey match. When FBI agents searched Moore’s house in 2008, they seized more than 2,000 VHS tapes of copyrighted broadcasts of hockey games and hockey-related material, and commercial-grade equipment for copying the contents of VHS tapes to DVDs. Also seized was equipment to record satellite broadcasts, and equipment to copy multiple DVDs at a time.
U.S. District Court Judge Berle M. Schiller scheduled sentencing for April 15, 2013. Moore faces a maximum statutory sentence of five years in prison, a fine of up to $250,000. He has also agreed to forfeit $155,612 in proceeds as well as certain seized items.
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Albert S. Glenn and Trial Attorney Evan Williams of the Criminal Division's Computer Crimes and Intellectual Property Section, United States Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525California Rap Artist Under Indictment Rearrested for Continuing Credit Card FraudRead the Press Release
A Southern California rap artist who performs under the name “Guerilla Black,” was arrested this morning following allegations he committed new financial frauds while he was on pretrial release, announced U.S. Attorney Jenny A. Durkan. CHARLES TONY WILLIAMSON, 33, of Torrance, California, was taken into custody this morning following a lengthy investigation by the Manhattan Beach Police Department and the U.S. Secret Service (USSS) Electronic Crimes Task force in Seattle and USSS Los Angeles Fraud Task Force. On June 20, 2012, WILLIAMSON was charged with 22 counts of various felony offenses including Conspiracy to Access Protected Computers to Further Fraud, to Commit Access Device Fraud, and to Commit Bank Fraud; Accessing a Protected Computer without Authorization to Further Fraud; Access Device Fraud; Bank Fraud; and Aggravated Identity Theft. The new filing alleges WILLIAMSON continued to use illegally obtained credit card numbers for fraud, even after his indictment in the Western District of Washington.
WILLIAMSON is scheduled to appear in U.S. District Court in the Central District of California today.
According to records filed in the case, Manhattan Beach Police became aware of WILLIAMSON’s ongoing frauds in mid-November 2012. Their investigation revealed that WILLIAMSON was using different ‘runners’ in the Los Angeles area to use counterfeit credit cards to purchase gift cards at a variety of stores. The runners kept some of the gift cards but allegedly returned the bulk of the ill-gotten gain to WILLIAMSON. Working with the U.S. Secret Service Electronic Crimes Task Force in Seattle and Los Angeles, investigators were able to trace the numbers on some of the seized counterfeit cards, discovering that many of the numbers were issued by foreign banks: Corner Banca, (Switzerland); Guaranty Trust Bank (Nigeria); National Westminster Bank (England); and Poste Italiante (Italy). Because the banks are overseas, it can take longer for the fraud to be detected and the card numbers cancelled. Evidence uncovered in the case revealed WILLIAMSON was purchasing the credit card data from various “carding” sites operated by criminals in Eastern Europe.
WILLIAMSON is already indicted for a scheme where he purchased that same type of information from two co-conspirators who have already pleaded guilty in U.S. District Court in the Western District of Washington. David Benjamin Schrooten, 21, a Dutch citizen arrested in Romania, where he operated a carding website, is scheduled for sentencing next month. Christopher A. Schroebel, 21, of Keedysville, Maryland, who hacked into point of sale systems to steal credit card information was sentenced to seven years in prison in August 2012.
The case is being investigated by the Manhattan Beach Police Department, the U.S. Secret Service Electronic Crimes Task Forces in Seattle and the U.S. Secret Service Los Angeles Fraud Task Force (LAFTF). The Seattle Police Department is a key part of the Seattle Task Force. The case is being prosecuted by Assistant United States Attorney Kathryn Warma.
CEO and CFO of Assisted Living Facility Chain Sentenced<br /> in North Carolina to Five Years in Prison for Tax FraudRead the Press Release
Ronald E. Burrell, former chief executive officer (CEO) of Caremerica Inc., and Michael R. Elliott, former chief financial officer (CFO) of Caremerica Inc., were sentenced today in Wilmington, N.C., the Justice Department and Internal Revenue Service (IRS) announced. Judge James C. Fox sentenced both Burrell and Elliott to 60 months imprisonment and ordered them each to pay restitution of over $4.8 million.
Burrell, a resident of Wilmington, N.C., pleaded guilty to conspiracy to defraud the IRS on Jan. 3, 2012, and Elliott, a resident of Loris, S.C., pleaded guilty to conspiracy to defraud the IRS on July 18, 2012.
According to the charging documents, Burrell and Elliott co-owned and operated a chain of assisted living facilities (ALFs) in North and South Carolina. The ALFs were managed by Caremerica Inc., a Leland, N.C.-based company that Burrell and Elliott also owned and operated. Burrell was the president and CEO for Caremerica, the Caremerica ALFs and other related companies. Elliott, formerly a certified public accountant, served as the CFO and tax return preparer for the Caremerica companies. Burrell and Elliott were the corporate officers responsible for ensuring that the Caremerica companies collected, reported and paid over federal employment taxes to the IRS. However, with Burrell and Elliott at the helm, the Caremerica companies accrued more than $4.5 million in employment tax liabilities between approximately 2003 and 2006. Among other things, Burrell and Elliott filed, or caused to be filed, false IRS forms that reported full payment of the employment taxes due, when in fact only a small fraction of the taxes, or none at all, were paid.
Charging documents further allege that in 2003, Burrell and Elliott acquired majority ownership of Partners Pharmacy Services Inc. (PPS), which provided prescription drug and related services to the Caremerica ALFs. In April 2005, Burrell and Elliott sold PPS to a subsidiary of Omnicare Inc. At the closing, Burrell and Elliott received $1.6 million and $1.4 million, respectively. The PPS sale proceeds were disbursed at a time when the IRS was attempting to collect unpaid employment taxes from the Caremerica companies, as well as from Burrell personally. To prevent the IRS from discovering their PPS proceeds, Burrell and Elliott took active steps to conceal them. Among other things, Burrell formed a nominee company in his wife’s name through which he funneled a portion of his PPS sale proceeds in order to avoid IRS collection action. As a result of his concealment efforts, Burrell deceived the IRS into accepting a $29,000 settlement on a $300,000 personal tax liability and opened another assisted living facility with the PPS proceeds. Elliott directed his $1.4 million share to be wired into the bank account of his then-girlfriend. Burrell and Elliott then filed false 2005 federal income tax returns that failed to report the PPS proceeds. Elliott and Burrell also obstructed justice by making false statements under oath in bankruptcy proceedings and in IRS disclosure forms.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of the IRS - Criminal Investigation special agents who investigated the case, and Tax Division Trial Attorneys Adam Hulbig and Todd Ellinwood, who prosecuted the case.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Darryl Parker, 32, of Buffalo, N.Y., who was convicted of using a communication facility to commit a drug felony, was sentenced to 27 months in prison and one year supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Clare Kane, who is handling the case, stated that between January 2008 and July 29, 2008, Parker was intercepted over wiretaps ordering cocaine from a source of supply. The defendant was indicted along with 33 others following an investigation into drug dealing and weapons possession in the Central Park area of the City of Buffalo. A total of 30 defendants have been convicted.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Region and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Brazilian Husband and Wife Plead Guilty in Florida to Human SmugglingRead the Press Release
WASHINGTON – Two Brazilian nationals pleaded guilty today in Miami to smuggling undocumented migrants to the United States for profit, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Juliana Rose Tome-Froes, 36, and her husband, Fabio Rodrigues Froes, 49, pleaded guilty before U.S. District Court Judge Federico A. Moreno in the Southern District of Florida to six counts and two counts, respectively, of bringing and attempting to bring aliens to the United States for commercial advantage and private financial gain.
According to plea documents, from at least October 2008 until approximately September 2010, the defendants organized, operated and managed a human smuggling network that spanned from Brazil to France, England, The Bahamas and the United States. The defendants met with undocumented migrants and negotiated forms of payment to be smuggled into the United States. Before the undocumented migrants departed Brazil, the defendants instructed them to act like tourists and explained that the itinerary through Europe would support a tourist cover story. In exchange for approximately $16,000, Tome-Froes, with assistance from Froes, arranged air transportation from Brazil to Paris, then London and Nassau, Bahamas. Tome-Froes arranged the undocumented migrants’ lodging in Paris and Nassau, and then instructed them to fly to Freeport, Bahamas, where they waited for a boat to transport them to the United States. For the final leg into the United States, Tome-Froes coordinated with various individuals in South Florida to pilot a small boat to Freeport, which picked up the undocumented migrants and transported them to the United States.
At sentencing, scheduled for March 21, 2013, Juliana Tome-Froes faces a maximum penalty of 15 years in prison and a $250,000 fine, and Fabio Froes faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Marton Gyires of the Southern District of Florida.
The investigation was conducted by ICE Homeland Security Investigations in Miami.