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Tuesday 15 January 2013
Johnstown Man Charged with Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been indicted by a federal grand jury in Johnstown on a charge of distribution of heroin, United States Attorney David J. Hickton announced today.
The one-count indictment named Maurice L. Lindsay, 37, as the sole defendant.
According to the indictment, on Nov. 3, 2011, Lindsay distributed less than 100 grams of heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Investment Company Owner Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Glen Galemmo, 48, of Cincinnati, who owned Queen City Investments and other investment companies in the Cincinnati area, pleaded guilty in U.S. District Court to wire fraud and money laundering, admitting that he defrauded investors by soliciting millions of dollars from them between 2005 and July 2013 and spent the money rather than investing it.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the pleas entered today before Senior U.S. District Judge Herman Weber.
According to court documents, Galemmo lured investors with promotional materials falsely claiming returns of more than 30 percent over seven years.
From 2006 to July 2013, Galemmo received approximately $87 million cumulatively from individual investors, trusts, charitable organizations, and retirement accounts. During this time, Galemmo also received approximately $29 million from some of these investors in the form of short-term loans. The vast majority of these funds were never invested in anything. Rather, the funds were paid to other investors in the form of principal and/or interest payments or spent by Galemmo to finance other businesses or pay for personal expenses.
To induce investors to continue to invest with him, Galemmo mailed or emailed fraudulent monthly statements to investors. To create the monthly statements, each client's principal investment balance was merely multiplied by a fictitious percentage of return, consistent with the returns that Galemmo had promised to his clients. The statements showed positive account balances and fictitious earnings, when in fact, the money had not been invested as promised. Galemmo issued account statements for approximately 260 different investment accounts for the month of April 2013 reporting that these accounts held a total of approximately $109 million. In fact, Queen City Investments held only a small fraction of that balance on behalf of clients.
Galemmo’s investment scheme involved approximately 200 investors.
Each crime is punishable by up to 20 years in prison, restitution and forfeiture but the court will determine the actual sentence after it conducts its own investigation. Judge Weber scheduled sentencing for May 28, 2014 at 10 a.m.
Galemmo agreed to forfeit three pieces of real estate, including a condo in Marco Island, Florida, the contents of bank and investment accounts and five vehicles. The plea agreement requires Galemmo to make restitution to the investors in an amount to be determined by the court prior to sentencing.
“A person who creates a web of financial lies will soon be caught up in it. Mr Galemmo offered rates of return of over 30% to his clients and unfortunately these were false promises, “ said Kathy A. Enstrom, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the investigation by IRS special agents as well as Assistant U.S. Attorneys Emily Glatfelter and Tim Mangan, who are prosecuting the case.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 11, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
ERIN RUTH SMITH, a 22-year-old resident of Wyola, appeared on (3) counts of assault resulting in serious bodily injury. He is currently detained. If convicted of these charges, SMITH faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release for each count. Assistant U.S. Attorney E. Vincent Carroll is the prosecutor for the United States. The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Information for Victims Regarding the Sentencing of Russell Wasendorf, Sr.Read the Press Release
The sentencing in United States v. Russell R. Wasendorf, Sr. has been set for January 31, 2013, at 9:00 a.m. The hearing will be held at 111 7th Avenue SE, Cedar Rapids, Iowa, in Courtroom 1 (2nd Floor), before Chief United States District Court Judge Linda R. Reade. Russell Wasendorf, Sr. remains in custody pending sentencing.
Under the Crime Victims Rights Act (Title 18, United States Code, Section 3771), victims of federal crimes generally have the right to attend and be reasonably heard at the sentencing of a defendant. Victims wishing to attend Russell Wasendorf, Sr.’s sentencing hearing and/or address the Court during the hearing are requested to contact Shari Konarske, Victim-Witness Coordinator, so that appropriate arrangements can be made. Victims may contact Ms. Konarske at [email protected] or (319) 363-6333. Media interested in seating in the courtroom should contact Robert Phelps, Clerk of Court, at
(319) 286-2311.The United States Attorney’s Office for the Northern District of Iowa has a dedicated telephone line and a page on its website to provide case updates and other information for victims in this case. The telephone number for the U.S. Attorney’s Office Victim Information Line has changed. The new number is (319) 731-4034. Victims can call this number to hear a recorded message providing the latest updates on the case. Victims can also view the Victim Witness Assistance link on the United States Attorney’s website to receive updated case information. The website can be found at www.justice.gov/usao/ian/VWwasendorf.html.
Hillsborough County Real Estate Director Pleads Guilty to Mortgage FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Anthony Haynes (53, Seffner) today pleaded guilty to two counts of wire fraud affecting a financial institution. He faces a maximum penalty of 30 years in federal prison on each count. As part of the plea agreement, Haynes has agreed to a money judgment of at least $990,498.00, representing the proceeds of his conduct. Haynes was indicted on September 21, 2012. A sentencing date has not yet been set.
According to the plea agreement, Haynes, who was employed as the real estate services director for Hillsborough County Board of County Commissioners, made material misrepresentations in connection with loan applications and closing documents for two personal mortgages. The mortgages were for his purchase of nine land lots located in Tennessee. The mortgages were funded by interstate wires from a federally insured bank, and the closing was conducted by mail.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Henry Lopez and April Tyson Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 14, 2013, before U.S. District Judge Sam E. Haddon, HENRY LOPEZ, a 50-year-old resident of Los Angeles, California, and APRIL ANN TYSON, a 29-year-old resident of Seattle, Washington, appeared for sentencing. Anthony Ryan Yeverino, a 19-year-old resident of Seattle/Los Angeles, and Louis James Romero, a 44-year-old resident of Seattle/Los Angeles, were previously sentenced for their role in the conspiracy.
LOPEZ was sentenced to a term of:
Prison: 360 months
Special Assessment: $100
Supervised Release: 5 years
TYSON was sentenced to a term of:
Prison: 120 months
Special Assessment: $100
Supervised Release: 5 years
YEVERINO was sentenced to a term of:
Prison: 63 months
Special Assessment: $100
Supervised Release: 5 years
ROMERO was sentenced to a term of:
Prison: 235 months
Special Assessment: $100
Supervised Release: 6 years
LOPEZ, TYSON, Yeverino and Romero were all sentenced in connection with their guilty pleas to conspiracy to possess with the intent to distribute methamphetamine or possession with intent to distribute methamphetamine.
In Offers of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
During late November 2010, LOPEZ, Louis Romero, and X.X. began devising a plan and agreement to distribute methamphetamine from Los Angeles, California, and Seattle, Washington, to the state of Montana. April Tyson and Anthony Yeverino also became involved in this agreement. LOPEZ, Romero, and X.X. helped find people in Montana to distribute and sell the methamphetamine in Browning and Great Falls.
In early 2011, LOPEZ, Romero, and X.X. began supplying and fronting a confidential source (CS) with methamphetamine to sell in Montana. The CS was instructed to return the payments from the sale of the methamphetamine to LOPEZ, Romero, and X.X.. From approximately January through May of 2011, over 500 or more grams of a substance containing a detectable amount of methamphetamine was distributed in Browning and Great Falls under the direction of LOPEZ, Romero, and X.X.. In addition, on two separate occasions in June 2012, LOPEZ mailed over 50 grams or more of a substance containing a detectable amount of methamphetamine to Great Falls.
Law enforcement then became alerted to TYSON and Yeverino, who lived in Seattle, Washington. TYSON and Yeverino helped assist LOPEZ, Romero and X.X., with the distribution of methamphetamine to Montana. On June 22, 2012, Yeverino, Romero and X.X., intended to bring approximately an additional four pounds of methamphetamine to Montana. The plan did not occur on that date, however, they agreed to bring the methamphetamine a few days later, on June 27, 2012.
X.X., Romero, Yeverino, and TYSON agreed that Yeverino would bring the methaphetamine by train from Seattle to Shelby, Montana. Romero paid for Yeverino's train ticket, and TYSON drove Yeverino to the train station. Yeverino had 500 or more grams of a substance containing a detectable amount of methamphetamine concealed under his shirt. Law enforcement arrested Yeverino in Shelby, Montana.
The coordinated efforts of local, state and federal law enforcement in this case is truly a testament to what can be accomplished by a team mentality," said United States Attorney Michael W. Cotter, District of Montana. "The arrests and convictions in this case have stopped a torrent of methamphetamine that was coming in from out-of-state and poisoning our communities."
FBI Special Agent in Charge David J. Johnson of the FBI Salt Lake City Division: "Cities such as Great Falls and Browning, Montana should never become home base for illegal drug operations and this case highlights how law enforcement collaboration bring defendants to justice and leads to safer communities. I would like to congratulate the Montana Regional Violent Crimes Task Force for its dedicated work on this investigation and its tireless efforts to rid our cities of drugs, gangs, and violence."
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that all defendants will likely serve all of the time imposed by the court. In the federal system, defendants do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation Montana Regional Violent Crimes Task Force.
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.Greenland, New Hampshire Man Sentenced to 33 Months in PrisonRead the Press Release
CONCORD, N.H. – William Orestis, 64, of Greenland, New Hampshire, was sentenced in United States District Court for the District of New Hampshire to 33 months in prison and 3 years of supervised release for a mail fraud offense, announced United States Attorney John P. Kacavas.
From approximately November 2003 to July 2010, Orestis and Steven Lewis solicited money on behalf of a sham investment company, Equivest, LLC. Orestis and Lewis falsely assured investors that their money would be used to purchase foreign currencies and to support Equivest’s business activities. They provided bogus account statements to investors that falsely claimed that impressive profits had been earned in Equivest accounts by other investors. They also falsely assured many investors that their accounts would earn 12 percent interest annually and promised other investors that their accounts would earn income at rates as high as 18 percent annually.Orestis and Lewis fraudulently obtained approximately $696,732 from investors, but used only a portion of that money to buy foreign currencies and made payments totaling approximately $124,715 to some investors in order to lull them into a false sense of security regarding the performance of their Equivest accounts. As a result, the investors were defrauded of about $572,017.
On December 11, 2012, Lewis pled guilty to wire fraud. He is scheduled to be sentenced on March 28, 2013.
The case was investigated by the United States Postal Inspection Service and prosecuted by Assistant United States Attorney Bob Kinsella.
Fulton Man Sentenced to 20 Years for Child Pornography OffensesRead the Press Release
SYRACUSE, NY – United States Attorney Richard S. Hartunian announced that LEONARD ALLEN, age 46, of Fulton, New York was sentenced today in U.S. District Court in Syracuse following his earlier guilty plea in January 2012 to knowingly distributing, receiving and possessing child pornography via the Internet.
United States District Court Judge Hon. Norman A. Mordue sentenced ALLEN to concurrent terms of imprisonment of 240 months imprisonment for distributing, receiving and possessing child pornography. Following his term of incarceration ALLEN will be placed on supervised release for life, and he will be required to register as a sex offender.
ALLEN’s arrest came after he sent images of child pornography to an undercover police officer in Keene, New Hampshire, in 2010. Based upon that information, the Oswego County Sheriff’s Office executed a search warrant at ALLEN’s Fulton residence, and found that ALLEN had been distributing child pornography to others on the internet, and that he had downloaded and collected thousands of images and videos depicting children in engaged in sexually explicit conduct.
ALLEN’s arrest is the result of an investigation by the Oswego County Sheriff’s Office, the Keene, New Hampshire Police Department, and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Lisa Fletcher.
ALLEN was prosecuted by the United States Attorney’s Office as part of 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.
Four Conspirators Arrested for Operating "Pill Mills"Read the Press Release
Owner and Doctors at AMARC Clinics Charged with Illegally Distributing Large Quantities of Oxycodone Pills and Other Controlled Substances
ATLANTA – A pain clinic owner, an office manager who was the wife of the owner, and two doctors have been indicted for the illegal sale and distribution of pain killers to addicts and drug dealers at three AMARC pain clinics in metropolitan Atlanta. Godfrey Ilonzo, 63, of Alpharetta, Georgia; Bona Ilonzo, 51, of Alpharetta, Georgia; Dr. Nevorn Askari, 57, of Monroe, Georgia; and Dr. William Richardson, 59, of Atlanta, Georgia, were indicted and arrested on federal drug and money laundering charges for their respective roles in operating so-called “pill mill” pain clinics. Godfrey Ilonzo was also indicted individually on charges relating to federal bankruptcy fraud. The defendants were arraigned today at 2 p.m., before United States Magistrate Judge Janet F. King. The federal grand jury indicted the defendants on January 8, 2013.
United States Attorney Sally Quillian Yates said, “The abuse of pain medication has become epidemic and now accounts for more deaths than all traditional illegal drugs combined. The defendants in this case are charged with preying on drug addicts, feeding their addictions in order to make a profit. Prosecuting those who perpetrate prescription drug abuse is one of the critical missions of this office, and we will continue to investigate and prosecute other pill mills in this district.”
Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division said, “DEA and its law enforcement counterparts will continue to target and crack down on unscrupulous pain clinics. Today’s arrests have dismantled this criminal enterprise, which was responsible for the illegal distribution of dangerous doses of oxycodone and other controlled substances. The success of this investigation is a direct result of the hard work and dedication put forth by our federal, state, and local law enforcement counterparts.”
“IRS Criminal Investigation is proud to contribute our financial expertise in an effort to halt the illegal sale and distribution of prescription drugs,” stated Special Agent in Charge, Veronica Hyman-Pillot. “We are committed to unraveling financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case necessitated the expertise of several federal law enforcement agencies due to the various criminal charges alleged. The FBI will continue to work with its local, state, and federal law enforcement partners in bringing such investigations forward for prosecution.”
According to United States Attorney Yates, the charges and other information presented in court: In 2009, agents of the Tactical Diversion Squad of the Drug Enforcement Administration (DEA), learned that physicians at an AMARC clinic, located at 1755 Lakewood Avenue, Atlanta, Georgia, prescribed pain pills outside the bounds of legitimate medical practice. Subsequently, DEA, working with IRS, FBI, and officers from other state and local agencies, learned that Godfrey Ilonzo has financed and operated multiple pain clinics in the Atlanta area under the “AMARC” name, including the Lakewood Avenue clinic and two other clinics located at 1135 Senoia Road, Tyrone, Georgia, and 207 Edgewood Avenue, Atlanta, Georgia. Bona Ilonzo (Godfrey Ilonzo’s wife) served as the office manager at the main AMARC pain clinic at Lakewood Avenue. At various times, Askari and Richardson served as the primary doctors for the AMARC pain clinics.
The indictment charges that, in their respective capacities, the defendants worked together to facilitate the prescribing of oxycodone pills and other controlled substances to addicts and distributors. The clinics generated mass profits by charging patients cash for appointments during which Askari and Richardson issued prescriptions for controlled substances for medically inappropriate and potentially lethal dosages and combinations. Askari and Richardson allegedly did so, however, without conducting adequate medical examinations. The indictment also alleges that, after an initial in-person appointment, Askari repeatedly “pre-signed” additional prescriptions for the same amounts and types of controlled substances for patients without ever seeing the patients again in-person. Askari did so, however, while falsely indicating in the patient’s file that she had conducted an in-person examination of the patient.
The indictment alleges that the AMARC pain clinics constituted a drug distribution operation with very high volumes of patients, many of whom visited the clinics in groups from other counties in Georgia and surrounding states. Many of those visiting had apparent signs of being addicts or drug dealers. The defendants allegedly made millions of dollars during the operation of the AMARC pain clinics which they used to recruit additional physicians and patients to the AMARC pain clinics, and to open additional clinics under the “AMARC” name. The indictment also seeks to forfeit the professional medical licenses that Askari and Richardson used to further the illegal prescribing at the AMARC pain clinics.
The charges each carry a maximum statutory penalty of 20 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.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
This case was investigated by Special Agents of the Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation.Assistant United States Attorneys G. Scott Hulsey and Laurel R. Boatright 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.
Fort Dodge Man Pleads Guilty TO Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty January 15, 2013, in federal court in Sioux City.
Troy Fulkerson, 42, from Fort Dodge, Iowa, was convicted of one count of conspiring to distribute methamphetamine and one count of possessing with intent to distribute methamphetamine.
At the plea hearing, Fulkerson admitted his involvement in a conspiracy from about 2011 through October 2012 that distributed more than 150 grams of actual (pure) methamphetamine in the Fort Dodge, Iowa, area. Fulkerson also admitted to distributing more than 19 grams of methamphetamine on four separate occasions to individuals cooperating with law enforcement. On October 1, 2012, law enforcement officers executed a search warrant at Fulkerson’s residence and seized over 30 grams of actual (pure) methamphetamine which Fulkerson admitted he planned to distribute to others. Fulkerson resides within 1000 feet of a protected location, Holy Rosary School Park.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Fulkerson remains in custody of the United States Marshal pending sentencing. On the conspiracy conviction, Fulkerson faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, a special assessment of $100, and at least ten years of supervised release following any imprisonment. On the possession conviction, Fulkerson faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 80 years’ imprisonment, a $10,000,000 fine, a special assessment of $100, and at least eigth years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Clay County Sheriff’s Office, Story County Sheriff’s Office, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3049.
Former Port Authority Board Member Sentenced to 57 Months in PrisonRead the Press Release
Robert M. Peto, a former member of the Cleveland-Cuyahoga County Port Authority, was sentenced to more than four years in prison today after previously pleading guilty to violating the Hobbs Act, law enforcement officials said today.
Peto, 58, lives in Gates Mills, Ohio. He served as a member of the Port Authority Board between December 2004 through in or around August 2012, according to court documents.
Peto obtained property not due to him or his Port Authority office including free and discounted home improvements and materials, entertainment, and a financial benefit related to a vehicle acquisition, according to court documents.
The property and objects were provided by Michael Forlani and/or Doan Pyramid LLC and Neteam, AVI, companies in which Forlani had an ownership interest, according to court documents.
“This sentence shows the high cost to those who would violate the public’s trust in exchange for personal gain,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “Corruption – in this case taking bribes and utilizing his position as a board member for the Port Authority – will not be tolerated.”
The conduct took place between 2004 and Oct. 2, 2007, according to court documents.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Nancy L. Kelley following an investigation by the Federal Bureau of Investigation, the Department of Labor and Internal Revenue Service – Criminal Investigation.
Former Oklahoma City Attorney Pleads Guilty to $3 Million Dollar FraudRead the Press Release
Tulsa, Oklahoma - United States Attorney Danny C. Williams, Sr., announced today that John Merritt, 74, a former Oklahoma City attorney, entered guilty pleas to numerous fraud related offenses in Oklahoma City before Federal District Judge J. Thomas Marten, Wichita, Kansas. According to documents filed in the three separate cases, Merritt had devised fraud schemes that resulted in losses totaling more than $3 million.
Danny C. Williams, Sr., United States Attorney for the Northern District of Oklahoma, was appointed by the Office of the Deputy Attorney General following the recusal of the United States Attorney's Office for the Western District of Oklahoma to investigate and prosecute any offenses that Merritt is believed to have committed. Merritt was indicted on April 17, 2012, in a twelve count indictment charging he used forged federal and state court orders to steal over $450,000 of settlement funds of lawsuits involving car accidents from children who were his clients. Merritt pled guilty to those crimes in July and is awaiting sentencing.
The fraud charges to which Merritt pled guilty yesterday include allegations that: (1) in 2007, Merritt defrauded Advocate Capital, Inc., of Nashville, Tennessee, using false financial statements and income tax returns to fraudulently obtain a line of credit totaling more than $1,750,000; (2) from 2007 through 2011, Merritt defrauded Quail Creek Bank of Oklahoma City, Oklahoma, by providing false financial statements and income tax returns to obtain a line of credit totaling $800,000; and (3) in 2011, Merritt forged the signature of another attorney on two settlement checks totaling $500,000 which he deposited into a Quail Creek Bank account and thereafter withdrew the fraudulently obtained funds.
Sentencing is expected to be set in May 2013.
The charges result from a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. The prosecutions of the cases are being handled by Special Attorneys Charles M. McLoughlin and Kevin C. Leitch.
Former Finance Directory Agrees to Plead Guilty to Embezzling More Than $435,000 from the City of CherryvilleRead the Press Release
Another Former City Employee Pleads Guilty to Embezzling Over $92,900
CHARLOTTE, N.C. – A criminal bill of information was filed today in U.S. District Court charging Cherryville’s former Finance Director, Bonny Verley Alexander, with embezzling over $435,000 from the City of Cherryville, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Another former Cherryville employee, Jennifer Neal Hoyle, has also been charged with embezzling over $92,900 from the city.
Alexander, 58, and Hoyle, 34, both of Cherryville, have agreed to plead guilty to the charges stemming from a joint federal and state investigation into misappropriated city funds.
Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Greg McLeod, Director of the State Bureau of Investigation (NC SBI), and Chief James W. Buie of the Gaston County Police Department join U.S. Attorney Tompkins in making today’s announcement.
According to the bill of information and the filed plea agreement, up until her retirement in December 2011, Alexander was employed by the City of Cherryville as its Finance Director and supervised the city’s Finance Department. In that capacity, Alexander oversaw the city’s accounting, financial reporting and treasury divisions, as well as the city’s revenue collections and customer service departments. As the Finance Director, Alexander also had access to and was able to process payroll payments to Cherryville employees, direct payments for city expenses, issue checks on behalf of the city, remove cancelled checks from the city’s records and make adjustments to Cherryville’s electronic accounting systems, court records indicate.
From about August 2005 through December 2011, Alexander embezzled at least $435,294 of Cherryville’s funds and used the money to pay personal expenses. Court documents show that Alexander made weekly payroll payments to herself which were more than 300% of her authorized net pay from the city. In total, Alexander embezzled approximately $309,594 from the City of Cherryville in this manner.
Court records also show that Alexander used city funds to pay for personal expenses, including shopping and travel expenses, she charged on her personal American Express credit card by issuing checks from the City of Cherryville made out to American Express. According to filed documents, Alexander issued the city checks and forged on those checks the signature of another Cherryville employee who was the authorized signatory on the account. Then, to avoid detection, after the forged checks had cleared and were returned by the bank, Alexander would remove them from the city’s records, court documents show. Alexander issued and forged a total of 26 checks from the City of Cherryville totaling approximately $97,000 to pay off personal charges on her American Express card.
Hoyle, a former Senior Customer Service Representative/Utility Supervisor for the City of Cherryville, has been charged with and has agreed to plead guilty to three counts of federal program fraud for embezzling approximately $92,922 from the City of Cherryville. According to the federal charging document and the filed plea agreement, Hoyle was responsible for the collection and posting of utility payments made by Cherryville utilities customers. Hoyle, who reported to Alexander, was terminated in May 2012.
According to filed court documents, beginning in January 2008 through May 2011 Hoyle embezzled approximately $92,922 from the City of Cherryville by taking cash payments made by customers paying their utilities bills for her own use. Court records show that Hoyle would accept the cash payments from the customers and issue paper receipts. Hoyle would credit the customers’ accounts with the payment, keep the cash, and then, using her supervisory override privileges, would go in the computer system and delete the transaction, court records show. Court records also show that, in order to avoid any potential customer complaints, Hoyle would create entries in the “extra charge” journal in which she would “write off” the cash amount the customers paid so that bills containing the embezzled amount would not be issued, records show. According to the bill of information, Hoyle’s fraud was uncovered when a customer questioned the duplicate charges on her bill and brought in her paper receipt as proof of payment, after Hoyle had failed to convert the customer’s cash payment as a “write off” in the “extra charge” journal.
Alexander is charged five counts of program embezzlement. She has agreed to plead guilty to the charges and faces a maximum term of 10 years in prison and a $250,000 fine per count. Hoyle has agreed to plead guilty to three counts of program fraud. She faces a maximum prison term of 10 years and a $250,000 fine per count. The defendants’ initial appearances and plea hearings will be scheduled by the U.S. District Court.
The investigation into Alexander was handled by the FBI and SBI. The investigation into Hoyle was handled by the FBI, SBI and the Gaston County Police Department. The prosecution is handled by Michael Savage, of the U.S. Attorney’s Office in Charlotte.
Former FEMA Executive Pleads Guilty to Federal Conflict of Interest Charge-Defendant Sought Job from Company That Did Work for FEMA-Read the Press Release
WASHINGTON – Timothy W. Cannon, 63, the former director of human resources at the Federal Emergency Management Agency (FEMA), pleaded guilty today to a charge of conflict of interest for negotiating employment with a polling and consulting services company that had a multimillion-dollar contract with FEMA, supervised by Cannon.
The plea occurred before the Honorable Amy Berman Jackson, of the U.S. District Court for the District of Columbia. Sentencing is scheduled for April 9, 2013. The charge carries a statutory maximum of five years in prison.
The guilty plea was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Assistant Attorney General Lanny A. Breuer of the U.S. Department of Justice’s Criminal Division; Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office; Christopher Cherry, Special Agent in Charge of the General Services Administration Office of Inspector General for the National Capital Region, and Mike Dawson, Special Agent in Charge of the U.S. Department of Homeland Security Office of Inspector General’s Washington Field Office.
According to the government’s evidence, from July 2007 through February 2009, Cannon was the director of FEMA’s Human Capital Division. In 2007, Cannon had discussions with a firm, identified in court papers as “Company A,” about FEMA hiring the firm to provide consulting services on human resources matters at FEMA. The work would be done through a project that would eventually be called the “BEST Workforce Initiative.”
In March 2008, the Chief Executive Officer of Company A emailed another Company A employee, stating Cannon “said he has done everything to get a job at [Company A] because he believes so much in our products . . . said he wants to do a real good job at FEMA and that mabye [sic] he would try again . . . .” On April 22, 2008, Company A’s CEO emailed another Company A employee that “. . . [I]f [CANNON] gets us a big deal at FEMA . . . i [sic] think we should hire him . . . because he will be a ‘client’ hire . . . which might be good[.]” Later in the same email chain, Company A’s CEO asked, “[I]s the ink dry yet on our deal with fema [sic] [?]” The Company A employee replied, “[N]o might be mid-May.” Company A’s CEO then stated, “[W]e should wait of course to see if we win a big quality deal here[.]”
On Aug. 12, 2008, Company A was hired to administer the BEST Workforce Initiative at FEMA. The contract was valued at approximately $6 million over five years.
On Nov. 18, 2008, a Company A employee advised Company A’s CEO in an email, “I talked to Tim today. He asked for a job.” Company A’s CEO then stated, “What about ethics . . . are we okay with all of that . . . he is a significant client . . . am sure you know the rules . . . gee he seems like a winner to me . . . I don't think these guys are as expensive as one might think . . . and he has a military background[.]”
In December 2008 and January 2009, Cannon requested additional funding for the BEST Workforce Initiative. On Jan. 6, 2009, in an email to a Company A employee, Cannon stated, “. . . [A]h yes, I got another 500k put on the contract. Cool huh?”
On Jan. 12, 2009, Cannon had an employment interview with Company A in Washington, D.C. On Feb. 9, 2009, Company A sent an employment offer letter by email to Cannon. The letter offered Cannon “the opportunity to join [Company A] as a Partner with our Government Division in Washington, D.C.[,]” and guaranteed him a minimum annual salary of $175,000 for the first two years of employment. Cannon responded to the email the same day, stating, “I am very excited about joining [Company A] and I look forward to working with you . . . .” Following Cannon’s acceptance of Company A’s employment offer, Cannon continued to oversee and work on the BEST Workforce Initiative at FEMA.
Cannon retired from FEMA effective on Feb. 27, 2009. On his Public Financial Disclosure Report, known as a Form SF-278, Cannon indicated that he did not have any agreements or arrangements for “future employment” and he specifically did not list his future employment with Company A. On Feb. 27, 2009, Cannon requested that Company A provide him with an offer letter dated after Feb. 27, 2009, so that it would falsely appear that Cannon received Company A’s employment offer after he had resigned from FEMA. On March 2, 2009, Company A sent an updated version of the offer letter, with the new date of March 2, 2009, to Cannon. Cannon signed this updated version of the offer letter on March 3, 2009, and returned it to Company A.
In March 2009, a Company A employee voiced concerns internally about Cannon’s hiring. In addition, on March 25, 2009, a Company A employee stated in an email to another Company A employee, “Well, I just got a call from and am getting more red flags about Tim Cannon. Apparently, word is getting around about his departure and joining [Company A]. There is speculation among is [sic] co-workers that this is improper. They are pretty mad. This may get in the way of future business with FEMA. . . . This, plus the bankruptcy, plus appearance of ethics violations, both on [Company A] and FEMA side. This is not good. . . . I think we are getting too many sign[s], and I do not think this will work.” On March 26, 2009, Company A informed Cannon that Company A’s offer of employment was being withdrawn. Company A told Cannon that he did not meet the background check requirements.
Later, on Sept. 17, 2009, Cannon sent an email to Company A’s CEO advising that Cannon had joined a consulting firm and asking to have lunch. Company A’s CEO forwarded that email to other Company A employees stating, “This is a guy that was our sponsor at FEMA . . . he is so [Company A] gung ho . . . when he was applying we broke some of the rules of the US Gov on the 'how' we do it . . . so we had to let him go . . . .”
In announcing the guilty plea, U.S. Attorney Machen, Assistant Attorney General Breuer, Acting Assistant Director in Charge Smith, Special Agent in Charge Cherry, and Special Agent in Charge Dawson commended the outstanding investigative work of agents of the FBI’s Washington Field Office, Assistant Special Agent in Charge Floyd Martinez of the GSA OIG, and agents of the DHS OIG, as well as agents and auditors of other federal investigative agencies that assisted with this case. They also praised the efforts of members of the U.S. Attorney’s Office and the Criminal Division Fraud Section, including Paralegal Specialists Diane Hayes and Nicole Wattelet; Legal Assistant Jamasee Lucas; Information Technology Specialist Joshua Ellen; forensic accountants in the Fraud and Public Corruption Section; and Assistant U.S. Attorney David Johnson, Trial Attorney Brian Young, and former Trial Attorney James Graham, who have prosecuted the case.
13-009Former Des Moines, Washington Resident Sentenced to 32 Years in Prison for Attack on Guard at Federal Detention CenterRead the Press Release
A 22-year-old Des Moines, Washington man will spend 32 years in prison for the January 2012 beating of a prison guard, and for the forced labor of two juveniles in the sex trades, announced U.S. Attorney Jenny A. Durkan. SABIR SHABAZZ was in federal custody for sex trafficking two 13-year-old girls, when on January 3, 2012 he and another inmate assaulted a guard at the Federal Detention Center at SeaTac. SHABAZZ beat the guard with a pipe. The men claimed the attack was an escape attempt, but video of the assault shows it was just a brutal attack. Other inmates intervened in the assault, likely saving the guard’s life. At sentencing U.S. District Judge James L. Robart said the attack was carefully planned… “the blows were done to injure.“
“This brutal assault on a prison guard rightfully earned this defendant a lengthy term behind bars,” said U.S. Attorney Jenny A. Durkan. “He preyed on vulnerable 13-year-old girls while on the streets and viciously attacked one of the people we trust to keep our prisons and communities safe and secure. This conduct will not be tolerated.”
According to records filed in the case, in September 2010, SHABAZZ was arrested in connection with the sex trafficking of two 13-year-old girls. SHABAZZ posted ads featuring the girls on backpage.com and with a co-conspirator took the earnings the young girls made in the sex trades. SHABAZZ was being held on the sex trafficking charges when he assaulted the guard at the federal detention center. The guard suffered significant head wounds, which were nearly fatal. He has required surgery and significant rehabilitation. He likely will never be able to return to work as a prison guard.
In their sentencing memo prosecutors wrote, “It is hard to imagine a worse set of offenses - an assault calculated at killing a defenseless jail guard and involvement in the commercial sexual exploitation of two 13 year old girls…. Both girls were runaways and looking for shelter. Unfortunately, they sought help from two people, including SHABAZZ, who viewed the two girls as tools to make money without regard for their well being.”
The Tacoma Police Department and the FBI’s Innocence Lost Task Force investigated the sex trafficking case; the FBI and Federal Bureau of Prisons (BOP) and the Washington State Patrol Crime Scene Response Team (CSRT) investigated the prison assault. The cases against SHABAZZ are being prosecuted by Assistant United States Attorneys Bruce Miyake and Mike Lang.
Former Alabama Corrections Officer Pleads Guilty to Civil Rights Violations and Obstruction of JusticeRead the Press Release
Today, Matthew E. Davidson, a former corrections officer of the Alabama Department of Corrections, pleaded guilty in U.S. District Court in Montgomery, Ala., to two counts of violating the civil rights of a former inmate at Ventress Correctional Facility in Clayton, Ala., and to one count of conspiring with other corrections officers to obstruct justice by covering up the incident.
Davidson was charged by a grand jury on March 8, 2012, with two counts of felony civil rights violations, four counts of obstruction of justice-related violations and one count of making false statements . These charges stem from an incident that occurred at the Ventress prison on Aug. 4, 2010, when an inmate, 24-year-old Rocrast Mack, was severely beaten, suffered significant injuries and died the following day in a Montgomery hospital.
According to court documents, Davidson admitted that he tackled Mack on the prison yard and punched Mack in the head and upper torso area several times. After this beating on the prison yard, Davidson and former corrections officer Scottie Glenn, who pleaded guilty to similar charges in November 2011, escorted Mack in handcuffs to an office at the prison, knowing that Mack would be beaten again.
According to court documents, Davidson admitted that once the officers were inside the office, they were instructed by a supervisor to remove the handcuffs. After Davidson removed the handcuffs, the supervisor repeatedly stomped on, kicked, hit and struck Mack with a baton. Davidson also admitted that another officer struck Mack with a baton. Mack was severely injured as a result of this beating and was taken to the health care unit in the prison. Once there, Mack was pulled off the examination table by his handcuffs and repeatedly stomped on by the supervisor. Davidson further admitted that he and the other officers obeyed directions from the supervisor to lie in written reports and lie to investigators to cover up the beatings.
Davidson faces a maximum penalty of 20 years in prison on the civil rights violations and a maximum penalty of 20 years in prison on the obstruction of justice related violation when he is sentenced before U.S. District Court Judge Myron H. Thompson.
“Mr. Davidson admitted that he participated in, and attempted to cover up, the brutal and ultimately fatal assaults of Rocrast Mack,” said Assistant Attorney General Perez. “The Justice Department will continue to vigorously prosecute corrections officers who violate the constitutional rights of inmates, and who then use their official position to try to cover up their crimes.”
On March 8, 2012, former corrections officers Michael Smith and Joseph Sanders were also charged with felony civil rights violations, obstruction of justice-related violations and false statements violations. Their trial is scheduled to begin on June 10, 2013. Assistant Attorney General Perez and U.S. Attorney Beck emphasized that an indictment is merely an accusation, and the defendants are presumed innocent until proven guilty.
This case is being prosecuted by Trial Attorney Patricia Sumner of the U.S. Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Jerusha Adams of the U.S. Attorney’s Office for the Middle District of Alabama.
Floridian Sentenced to 7 Years in Prison for Orlando-to-New Castle Prescription Pill RingRead the Press Release
PITTSBURGH - A resident of Jupiter, Fla., has been sentenced in federal court to seven years and three months incarceration on his conviction of one count of conspiracy to distribute narcotics, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Larry James Dorsey, 34, formerly a resident of New Castle, Pa.
According to evidence presented to the court, Dorsey transported more than 40,000 oxycodone pills that he purchased for $9 each on the black market from the Orlando, Fla., area to drug dealers in the New Castle area, between 2008 and 2011. Those dealers then sold the oxycodone to drug abusers for $20-25 per pill. Oxycodone is a Schedule II narcotic that is classified as having "a high potential for abuse." Popularly called "hillbilly heroin," oxycodone is sold illegally and abused in many states in the Northeast, Midwest and South.
Dorsey found profit in his drug business. In February 2010, $109,000 in cash was seized from Dorsey by agents at the Pittsburgh International Airport, as he prepared to board a flight for Orlando. In September 2010, police in North Carolina intercepted a car from New Castle bound for Orlando, and discovered hidden in a door panel $158,000 in cash, destined for Dorsey. Following his indictment in the Western District of Pennsylvania in July 2011, agents seized boxes containing $99,930 and $79,900 from Dorsey's home and his mother's home, both in the Orlando area, and 5,000 oxycodone tablets.
Eight other individuals, all residents of Western Pennsylvania, were named in the indictment with Dorsey, and are awaiting trial.
Assistant United States Attorney Gregory J. Nescott prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, the New Castle Police and the Pennsylvania State Police for the investigation leading to the successful prosecution of Larry Dorsey.
Five-Year-Sentence for Bomb-Plot Hoaxes Against Ford Federal Bulding and Palisades Nuclear PlantRead the Press Release
GRAND RAPIDS, MICHIGAN – Anthony Mario Fortuna, 36, of Allendale, Michigan, was sentenced Monday to serve the maximum-authorized penalty of five years in Federal prison for falsely reporting, to the FBI and the U.S. Marshals Service (USMS), plots to bomb the Gerald R. Ford Federal Building, in Grand Rapids, and the Palisades Nuclear Plant, in Covert, Michigan. Fortuna pled guilty to the charge in September, 2012.The sentence was imposed by Chief U.S. District Judge Paul L. Maloney in Kalamazoo, who commented that the maximum sentence was necessary based on Fortuna’s prior criminal history, which included a 2000 Federal conviction in Alabama for lying to the FBI about a murder-for-hire plot, and because the false reports required both the FBI and the USMS to waste time and resources conducting extensive investigations of what, if true, would have been extremely serious plots.
Commenting on the sentence, U.S. Attorney Patrick A. Miles Jr. stated, “Falsely reporting a serious crime to Federal law-enforcement agencies is itself a serious crime because it wastes the limited resources of agencies such as the FBI and of my Office. Time spent running down false leads is time that cannot be spent pursuing genuine crime. For that reason, there is nothing harmless or funny about hoaxes such as those perpetrated by Mr. Fortuna, and people who engage in them will be treated sternly.”
Fortuna perpetrated the first hoax in February 2010, when he reported a fictitious plot by several others to blow up the Ford Building in retaliation for a Federal prosecution that was, in fact, ongoing at the time. Joint investigation by the FBI and USMS established that Fortuna’s story was a hoax. Four months later, however, Fortuna again contacted the FBI with another false report, this time involving an insider plot against the Palisades plant. After a second investigation by the FBI determined that this story was also untrue, Fortuna was indicted on two counts of making false statements to Federal agents. Although the second charge involving the Palisades facility was dismissed as part of his plea-agreement with the Justice Department, Fortuna admitted that he committed both offenses, and explained that he was motivated by a desire to gain favor with the FBI in the hope that doing so would limit his punishment in State of Michigan prosecutions that were then ongoing. U.S. District Judge Maloney was able to consider all of the conduct in selecting a sentence..
END
Final Defendant in Detroit Drug Conspiracy Case Sentenced to Lengthy Prison TermRead the Press Release
The final defendant in a Detroit narcotics conspiracy was sentenced today to almost ten years in prison, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge David McCain, Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Field Division.
Chief United States District Judge Gerald E. Rosen sentenced Tyrone Wooten, 26, of Detroit, to 114 months in prison. Wooten pleaded guilty in September to Conspiracy To Distribute Controlled Substances. Wooten was charged as one of the co-leaders of the drug conspiracy. The indictment charged seven defendants with participating in the conspiracy to distribute at least 280 grams of crack cocaine and more than a kilogram of heroin.During the investigation, a search warrant at a Detroit home uncovered 79 grams of crack cocaine and 15 grams of heroin, along with packaging materials and other narcotics paraphernalia.
In addition to Wooten, each of the charged defendants pleaded guilty to narcotics charges and were sentenced as follows; Stefan Toliver, 100 months; George Wooten: 60 months; Rashawn Marcel Jones: 180 months; Ryan Terrel Jones: 49 months; Jabron Poydras: 32 months and Maurice Curry: 168 months.
“We are focusing our drug enforcement efforts on drug trafficking organizations, which can lead to violence in our neighborhoods,” McQuade said. “We hope that prosecutions like this one can improve public safety for residents in our community.”
U.S. Attorney McQuade thanked the ATF for their work in the successful investigation of the case. The case was prosecuted by Assistant United States Attorney Susan Gillooly.Federal Inmate Charged with Possessing Heroin and MarijuanaRead the Press Release
JOHNSTOWN, Pa. - An inmate at FCI Loretto, Pa., has been indicted by a federal grand jury in Johnstown on a charge of possession of contraband in prison, United States Attorney David J. Hickton announced today.
The one-count indictment named Lonnie Johnston, 31, as the sole defendant.
According to the indictment, on Oct. 31, 2012, inmate Johnston possessed heroin and marijuana.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Special Investigative Staff at the Federal Correctional Institution at Loretto conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Court Permanently Bars San Antonio Tax Preparers from Preparing Tax ReturnsRead the Press Release
A federal court has permanently barred Pete Escalante Gutierrez and Jeanette Gutierrez from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, to which the Gutierrezes consented without admitting the allegations against them, was signed yesterday by Judge Orlando L. Garcia of the U.S. District Court for the Western District of Texas. The injunction permits their companies, FCRE Inc., Fast Cash Refund Express Electronic Tax Service LLC, Fast Cash Refund Express and Fast Cash Express Electronic Services, to continue to operate, though the Gutierrezes must sell their interests in these businesses and take no role other than administrative matters until they are sold. While the companies operate, they are permanently barred from promoting any false tax schemes and from advising or encouraging taxpayers to attempt to evade their correct federal tax liabilities. Each of the businesses and the Gutierrezes must turn over the names of the people for whom they prepared tax returns or claimed tax refunds since Jan. 1, 2012.
The government’s complaint alleged that Pete and Jeannette Gutierrez, through their companies, which have offices in San Antonio, prepared federal tax returns for customers that claimed false and exaggerated personal deductions, business deductions, educational and energy tax credits, and other tax credits to which their clients were not entitled, in order to unlawfully understate tax liabilities. As alleged in the complaint, the amount of tax loss resulting from these improper tax preparation activities likely exceeds $3 million for the years 2006 through 2010.
The IRS lists tax-preparer fraud as one of the “Dirty Dozen” tax scams. The Justice Department has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters in the past decade. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. FCRE, Inc., et al.
Complaint for Permanent Injunction and Other Relief (PDF)
Stipulated Order of Permanent Injunction (PDF)
Eleven Defendants Indicted for Alleged Roles in Scheme <br /> to Fraudulently Control Homeowners’ Associations in Las VegasRead the Press Release
WASHINGTON – A federal grand jury in Nevada today returned an indictment against 11 individuals for their alleged roles in a scheme to fraudulently take control of homeowners’ associations in the Las Vegas area. The indictment was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, Acting FBI Special Agent in Charge William C. Woerner of the Las Vegas Field Office, Sheriff Douglas C. Gillespie of the Las Vegas Metropolitan Police Department and Richard Weber, Chief of IRS-Criminal Investigation (IRS-CI).
The charged defendants, all from the Las Vegas area, include: Jose Luis Alvarez, 45; Rodolfo Alvarez-Rodriguez, 44; Ricky Anderson, 49; David Ball, 44; Leon Benzer, 46; Edith Gillespie, 51; Keith Gregory, 59; Maria Limon, 45; Barry Levinson, 45; Charles McChesney, 47; and Salvatore Ruvolo, 84. Each is indicted on one count of conspiracy to commit mail and wire fraud. Most of the defendants are also variously charged with individual counts of mail fraud and/or wire fraud. Limon is additionally charged with making a false statement to law enforcement.
According to court documents, the fraud scheme operated from approximately August 2003 through February 2009 to direct construction defect litigation and repairs at condominium complexes to a particular, conspiring law firm and Benzer’s construction company, Silver Lining Construction (SLC).
In order to accomplish the scheme, according to the indictment, Benzer and co-conspirators identified homeowners’ associations (HOAs) that could potentially bring construction defect cases. They then allegedly enlisted real estate agents to identify condominium units within the HOA communities for purchase.
According to court documents, Benzer and others, including Gillespie, then enlisted “straw purchasers” to use their names and credit to purchase condos in the complexes. The indictment alleges that Alvarez, Alvarez-Rodriguez, Anderson, Ball, Gillespie, Limon, McChesney and Ruvolo acted as straw purchasers. On at least 37 occasions, Benzer and certain co-conspirators allegedly provided the down payments and monthly payments on behalf of the straw purchasers, including HOA dues and mortgage payments, and various false and misleading statements were made to secure financing for the properties. To manage the properties, Benzer and others allegedly conspired to open at least five bank accounts through which they moved more than $8 million. Eventually, 33 of the 37 units went into foreclosure.
According to court documents, on several occasions and at the direction of Benzer, co-conspirators transferred a partial interest in particular condominiums to other co-conspirators to make them look like homeowners who could stand for election to the HOA board of directors, which many of these individuals and the straw purchasers agreed to do. To ensure conspirators won the elections, according to the indictment, the defendants employed deceitful tactics, such as submitting fake and forged ballots, some of which were sent through the U.S. mail. Co-conspirators also hired complicit attorneys to run the HOA board elections as “special election masters,” to preside over the HOA board elections and supervise the counting of ballots.
Once elected, according to the indictment, the conspiring board members met with Benzer and other co-conspirators in order to manipulate board votes and process, including the selection of property managers, contractors, general counsel and attorneys to represent the HOA – including Benzer’s construction company and the conspiring law firm. Gregory and Levinson, both attorneys licensed in Nevada, allegedly agreed to become the general counsel for the Vistana and Sunset Cliffs; and Park Avenue and Pebble Creek complexes, respectively.
Limon, Benzer and others also allegedly agreed to open a property management company in order to provide services at Chateau Nouveau and other condo complexes in furtherance of the scheme. According to the indictment, Limon falsely told law enforcement officials she did not communicate with Benzer about this and did not know he funded and controlled her company.
At the conclusion of the scheme, millions of dollars of Vistana’s construction defect settlement proceeds were transferred to Benzer and SLC, according to the indictment.
According to court documents, the defendants were each given cash or things of value from Benzer and others for their alleged roles in the conspiracy.The maximum potential penalty for each count of conspiracy to commit mail fraud and wire fraud, mail fraud, or wire fraud is 30 years in prison and a $1 million fine. The maximum potential penalty for making a false official statement is five years in prison and a $250,000 fine.
The charges and allegations against the indicted defendants are merely accusations, and the defendants are considered innocent unless and until proven guilty. Twenty-six other individuals have entered guilty pleas in this case and await sentencing. The investigation is ongoing.
The case is being prosecuted by Deputy Chief Charles La Bella, Trial Attorneys Thomas B.W. Hall and Mary Ann McCarthy and Senior Deputy Chief Kathleen McGovern of the Criminal Division’s Fraud Section. The case is being investigated by the FBI, the Las Vegas Metropolitan Police Department, Criminal Intelligence Section, and IRS-CI.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.
Related Materials:
Benzer Indictment
Drug Trafficker Pleads Guilty to Conspiracy to Launder Drug Proceeds, Distribution of CocaineRead the Press Release
More than $4M in Cash, 89 Kilograms of Cocaine Seized from Organization
CAMDEN, N.J. – A California man today admitted his role in a drug trafficking organization from which the government has seized $4.6 million and intercepted 89 kilograms of cocaine, U.S. Attorney Paul J. Fishman announced.
Edgar Bracamonte, 39, of California, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an Information charging him with one count of conspiracy to distribute 50 to 150 kilograms of cocaine and with one count of conspiracy to launder narcotics proceeds, U.S. Attorney Fishman announced.
According to documents filed in this case and related cases, and statements made in court:Bracamonte was a member of a sophisticated drug trafficking organization (DTO) that was responsible for transporting cocaine from California to New Jersey and elsewhere. In an effort to avoid detection from law enforcement, the cocaine was transported in secret compartments of tractor trailers, including in gas tanks. Once in New Jersey, the cocaine was stored in a warehouse in Passaic County and in “stash houses.” The narcotics proceeds, too, were funneled from New Jersey back to California in hidden compartments of tractor trailers.
From February 2011 through November 2011, law enforcement seized $4.6 million and 89 kilograms of cocaine from the DTO. Fifteen people connected with the DTO have been charged by the U.S. Attorney’s Office, of whom 13 have entered guilty pleas to either conspiracy to distribute narcotics and/or conspiracy to launder money.
The conspiracy to distribute narcotics count to which Bracamonte pleaded guilty is punishable by a mandatory minimum of 10 years in prison, a maximum of life in prison and a fine of $10 million. The conspiracy to launder money count is punishable by a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the value of the property involved in the transaction, whichever is greater. Sentencing is scheduled for April 26, 2013.
U.S. Attorney Fishman credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Robert G. Koval, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney José R. Almonte of the U.S. Attorney’s Office Narcotics/OCDETF Unit in Newark.
13-029
Defense counsel: Angel Navarro Esq., Los Angeles, Calif.
Bracamonte, Edgar Information
District Man Pleads Guilty to Second-Degree Murder While Armed in 2012 Shooting in Northeast Washington-Defendant Also Pleads Guilty to Shooting at Second Victim in the Attack-Read the Press Release
WASHINGTON – Sean Carter, 22, of Washington, D.C., pled guilty today to charges of second-degree murder while armed and assault with intent to kill stemming from a shooting last year in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Carter pled guilty in the Superior Court of the District of Columbia. The Honorable Robert E. Morin scheduled sentencing for April 12, 2013. Carter faces up to 45 years in prison.
According to the government’s evidence, on Aug. 23, 2012, at approximately 10:15 p.m., Carter saw Bidley Warren, 22, walking with a teenager on Rhode Island Avenue NE. Carter recognized both of them and went to his nearby home, where he retrieved a gun. Then he hurried toward them in the 1000 block of Rhode Island Avenue.
When Mr. Warren and the teenager saw Carter approaching with the gun, they ran away from him. Carter chased after them and began shooting. Mr. Warren tripped and fell, and the teenager stopped to check on him. Carter, meanwhile, shot again at the teenager, nearly striking him in the head. Due to the assault with gunfire, the teenager was forced to leave Mr. Warren behind and he ran away. Carter then stood over Mr. Warren and shot Mr. Warren in the head. Mr. Warren died soon afterward from the gunshot wound to his head.
After the murder, Carter fled to Atlanta. He was apprehended there by the U.S. Marshals Service on Oct. 2, 2012. The next day, Carter admitted to two detectives with the Metropolitan Police Department (MPD) that he chased and shot at Mr. Warren and the teenager, and that he then shot Mr. Warren in the head while Mr. Warren was on the ground.
In announcing the guilty plea, U.S. Attorney Machen commended the work of the detectives of MPD’s Criminal Investigations Division and the officers of MPD’s Fifth District. He also acknowledged the efforts of the Atlanta Police Department, the U.S. Marshals Service, and the U.S. Attorney’s Office for the Northern District of Georgia. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Victim Witness Advocate Marcia Rinker and Paralegal Specialist Marian Russell. Finally, U.S. Attorney Machen praised the work of Assistant U.S. Attorney Shana Fulton of the Homicide Section, who prosecuted the case.
13-010Detroit Man Sentenced to Federal Prison for Heroin PossessionRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Detroit man was sentenced to two years and three months in federal prison for heroin possession. Gerald L. Height, also known as “Tim Lewis,” 37, of Detroit, previously pleaded guilty in September 2012 to possession with intent to distribute heroin.
On March 12, 2012, law enforcement agents with the Huntington Violent Crime and Drug Task Force observed the defendant enter a vehicle at the Greyhound bus station in Huntington. Law enforcement agents were conducting surveillance at the Greyhound location at the time. Officers performed a traffic stop on the vehicle and a Huntington Police Department K-9 gave a positive indication of the presence of drugs. Officers discovered a total of 62 bags of heroin with a weight of 35.5 grams in the defendant’s suitcase. Height admitted to possessing the heroin for distribution.
The Huntington Violent Crime and Drug Task Force, the Huntington Police Department and the Barboursville Police Department conducted the investigation. Assistant United States Attorney Gregory McVey handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers
Deported Guatemalan Charged with Illegally Re-entering U.S.Read the Press Release
JOHNSTOWN, Pa. - A citizen of Guatemala, has been indicted by a federal grand jury in Johnstown on a charge of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Jose Arqimedes Guevera-Amaya, 30, of Altoona, Pa., as the sole defendant.
According to the indictment, on Nov. 19, 2012, Guevera-Amaya, an alien who had been deported from the United States on Oct. 11, 2001, was found in Blair County, Pennsylvania. He had unlawfully re-entered this country without receiving permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to do so.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Colorado Resident Sentenced to 168 Months in Prison for Defrauding Investors in Texas Real Estate SchemeRead the Press Release
WASHINGTON – The owner and president of Evans Real Estate Group LLC was sentenced today to 168 months in prison for defrauding investors in real estate funds that invested in the acquisition, renovation and continued operation of existing apartment complexes in Texas, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Thomas B. Evans, 48, of Centennial, Colo. – a property manager and organizer of real estate investment funds – was sentenced today by U.S. District Judge Christine M. Arguello in Denver. In addition to his prison term, Evans was sentenced to serve five years of supervised release and ordered to pay $12,339,038.53 in restitution.
On Jan. 20, 2012, Evans pleaded guilty to one count of conspiracy to commit mail and wire fraud. According to plea documents, from at least April 2005 until April 2007, Evans and a co-conspirator engaged in a scheme to defraud investors in the Garden Stone Apartments LP; Ventana Apartments LP; and Aspen Chase Investments LP real estate investment funds, which invested in existing apartment complexes in Austin, Dallas and San Antonio, Texas. The complexes were to be sold for a profit when renovation was complete.
According to court documents, Evans and a co-conspirator misappropriated project funds; prepared monthly false financial statements for the projects that were sent to investors, banks and other lending institutions; prepared quarterly letters to investors misrepresenting the progress of apartment renovations and occupancy rates; and prepared falsified rent rolls to banks and lending institutions. When a receiver assumed operation of the properties in April 2007, Evans and his co-conspirator provided access to their electronic accounting system without informing the receiver that the system contained falsified information. Investors in Evans’ real estate ventures lost over $12 million.
The case is being prosecuted by Trial Attorney Fred Medick of the Criminal Division’s Fraud Section and investigated by the U.S. Postal Inspection Service.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.
Charlotte Woman Sentenced to 24 Months in Prison for Tax and Mortgage FraudRead the Press Release
CHARLOTTE, N.C. – On Tuesday, January 14, 2014, Chief U.S. District Judge Frank D. Whitney sentenced a Charlotte woman to 24 months in prison for committing tax fraud and mortgage fraud, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Tega Burns, 41, of Charlotte, was also ordered to serve two years under court supervision following her prison term and to pay $201,039.43 in restitution to IRS, $57,450.00 in restitution to Bank of America, and $48,483.00 in restitution to CIT Group Consumer Finance.
U.S. Attorney Tompkins is joined in making today’s announcement by Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service - Criminal Investigation Division (IRS-CID).
Burns, a/k/a Tega Foy, was the owner of Family Homecare Services, a Charlotte-based company that provided in-home care services in the area from 2007 through 2011. According to filed court documents and yesterday’s sentencing hearing, Burns failed to pay a large part of the employment taxes her company owed for the relevant tax years. Specifically, court records show that during the relevant time period, Burns had an outstanding liability of more than $200,000 relative to the employment taxes. According to statements made during sentencing, Burns utilized nominees, including her son and her step-father, to hide funds from the IRS and to evade payment of the outstanding taxes.
Court records also show that in May 2007, Burns obtained mortgage loans using false information – including fake employment documentation from her company – to purchase two homes in the name of another individual. Both of these homes were eventually foreclosed on, with losses to the banks.
In July 2012, Burns pleaded guilty to one count of failure to account for and pay over employment tax and one count of making a false statement on a loan application.
Burns will be ordered to begin her prison sentence and be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was conducted by IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jenny Grus Sugar of the U.S. Attorney’s Office in Charlotte.
Career Drug Offender Sentenced to 30 Years in Federal PrisonRead the Press Release
Tampa, FL - U.S. District Judge James Whittemore sentenced Anton Hernandez (32, Tampa) yesterday to 30 years in federal prison for possessing with intent to distribute 28 grams or more of crack cocaine. A federal jury found Hernandez guilty on September 13, 2012.
According to court documents and facts revealed at trial, on September 6, 2009, Hernandez delivered crack cocaine to undercover Hillsborough County Sheriff's Deputies. Hernandez had brought his then five-year old child with him to the drug deal. Hernandez was arrested on state narcotics charges. While out on bond, on December 21, 2009, Hernandez delivered additional crack cocaine to undercover HCSO Deputies. Hernandez then became a fugitive for almost two years. On August 5, 2011, HCSO Deputies tracked Hernandez down and caught him with an additional 36.1 grams of crack cocaine. At the time of his arrest, Hernandez had twenty-one prior criminal convictions, including five cocaine delivery-related felonies.
This case was investigated by the Hillsborough County Sheriff's Office. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
California Woman Sentenced for Bank Fraud and Identity TheftRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Cassandra Montrevel, 26, of Sacramento, CA, who was convicted of conspiracy to commit bank fraud and aggravated identity theft, was sentenced to 70 months in prison and ordered to pay restitution in the amount of $326,00 by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Tiffany H. Lee, who is handled the case, stated that the defendant conspired with others to execute a scheme to defraud Bank of America by flying to different branches across the country, posing as actual bank account holders, and attempting to make cash withdrawals. Montrevel flew into the Western District of New York in March 2011. On March 18, 2011, the defendant went to Bank of America
branches in Irondequoit, Gates and Batavia and attempted to withdraw money from the account of a Texas resident by presenting a fake Texas driver's license using the name of the actual account holder. Montrevel also presented the correct social security number of the true account holder. She admitted to having executed the scheme in Florida, Georgia, Tennessee, Illinois and New York as well.The sentencing is the culmination of an investigation on the part of the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast, the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, the Gates Police Department, under the direction of Chief David DiCaro, the Irondequoit Police Department, under the direction of Chief Richard Boyan, and the Batavia Police Department under the direction of Chief Shawn Heubusch.
California Tax Return Preparer Pleads Guilty to Tax Refund ConspiracyRead the Press Release
Masood Chotani, a CPA and tax return preparer from Los Angeles County, Calif., pleaded guilty today to conspiracy to defraud the United States, the Justice Department and Internal Revenue Service (IRS) announced.
On June 23, 2010, Chotani was indicted by a federal grand jury in Riverside, Calif., on charges of engaging in a scheme to file false returns with the IRS using the names and Social Security numbers of deceased individuals.
According to the indictment and the plea agreement, in 2002 and 2003, Chotani misappropriated employer identification information from his client files and provided the information to his co-conspirator, Haroon Amin. Amin and another co-conspirator, Ather Ali, used the stolen employer data, as well as deceased people’s Social Security numbers and other identification information obtained from the Internet, to prepare and file fraudulent returns. These returns had fictitious Form W-2 wage and tax statements as attachments, falsely stating that the deceased people earned wages from those employers from which income tax had been withheld.
Chotani admitted that he was a knowing participant in this scheme. He also admitted filing similar false returns himself, in his parents’ names, also using employer identification information misappropriated from his files.
According to documents filed in two related cases, the scheme resulted in the filing of over 250 false returns claiming an aggregate of more than $2 million in income tax refunds. Although the IRS rejected the bulk of these refund claims, a number of refund checks were issued and delivered to addresses controlled by Amin, Ali, and their co-conspirators. Most of these refund checks then were delivered overseas to be deposited in bank accounts in Armenia and Pakistan.
Amin pleaded guilty to conspiracy to defraud the United States on Jan. 25, 2010, and is serving a 30-month prison term. Ali subsequently pleaded guilty to the same crimeon Feb. 12, 2010, and is serving a 37-month prison term.
Judge S. James Otero scheduled Chotani’s sentencing for April 22, 2013. Chotani faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000. In addition, under the plea agreement, Chotani has agreed to pay restitution to the IRS for the losses arising from the tax fraud scheme.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of agents from the IRS Criminal Investigation Division in Laguna Niguel, Calif., as well as Assistant U.S. Attorney Charles E. Pell and Tax Division Trial Attorneys Joseph A. Rillotta and Ignacio Perez de la Cruz, who are prosecuting the case.
More information about the Tax Division and its enforcement efforts is available at www.usdoj.gov/tax .
Caldwell County Man Charged with Defrauding Social Security Disability and Medicaid ProgramsRead the Press Release
– Received benefits for 20 years by alleging he was disabled
PADUCAH, Ky. – A federal grand jury meeting in Paducah, Kentucky today charged a Caldwell County, Kentucky resident with failure to report to Social Security Administration his ability to work and fraudulently received disability and Medicaid benefits for 20 years announced David J. Hale, United States Attorney for the Western District of Kentucky.
Travis L. Vickery, age 47, was charged in a two count federal indictment that alleges between September 1991 and October 2011, Vickery, who was not disabled from working, knowingly and willfully concealed and failed to disclose to the Social Security Administration that he was able to work and not disabled. The indictment further alleges that Vickery knowingly and willfully executed a scheme and artifice to defraud the Medicaid Program, by falsely representing he was disabled from working, and thereby received health care benefits, items, and services to which he was not entitled.
If convicted at trial, Vickery faces no more than 15 years in prison, a fine of $500,000 plus restitution, and a period of no more than three years of supervised release.
Vickery is scheduled for arraignment on the charges before U.S. Magistrate Judge Lanny King on January 17, 2013, in United States District Court located in Paducah, Kentucky.
This case is being prosecuted by Assistant United States Attorney James H. Barr and was investigated by the Social Security Administration’s Office of Inspector General.
Butler County Woman Pleads Guilty in Counterfeit Credit Card SchemeRead the Press Release
PITTSBURGH - A resident of Butler County pleaded guilty in federal court to a charge of conspiracy to use counterfeit credit cards, United States Attorney David J. Hickton announced today.
Janie M. Bey, 54, of Mars, Pa., pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, from June 2010 through June 2011, Janie M. Bey agreed with other persons to use counterfeit credit cards at Walmart stores in Western Pennsylvania to purchase merchandise.
Judge Cohill scheduled sentencing for April 30, 2013. The law provides for a maximum total sentence of five years in prison, a fine of $250,00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Inspectors from the United States Postal Inspection Service along with agents from the United States Secret Service who, as part of the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Janie M. Bey. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Brooklyn Real Estate Developer Charged in $2 Million Mortgage Fraud SchemeRead the Press Release
Brooklyn-based real estate developer Schelton Assoumou was arrested today on charges of bank fraud and wire fraud for his participation in a multi-year mortgage fraud scheme. The defendant’s initial appearance is scheduled this afternoon before United States Magistrate Judge Robert M. Levy at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Cary Rubenstein, Special-Agent-in-Charge, United States Department of Housing and Urban Development - Office of Inspector General; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Steve Linick, Federal Housing Finance Agency - Office of Inspector General.
As detailed in the criminal complaint, between approximately June 2008 and June 2012, Assoumou purported to be a real estate developer doing business as the President of Renaissance Development, Inc. In that capacity, Assoumou sold homes in Brooklyn as investment properties. Assoumou assured the investors that he would manage the real estate properties on their behalf, including collecting rents and making mortgage payments to lenders. In fact, Assoumou made little more than token efforts to manage the properties and failed to maintain mortgage payments as promised. As a consequence, each of the loans Assoumou procured fell into default. The loss to the lenders described in the complaint was over $2 million. As noted therein, these were not the only fraudulent transactions disclosed during the government’s investigation.
As part of the scheme, Assoumou submitted fraudulent mortgage applications to the lenders. The applications contained various misrepresentations, including falsely inflated information concerning one borrower’s bank balance and false claims that certain borrowers would live at the properties – a requirement for receipt of certain federally insured loans. To further the scheme, Assomou provided to the lenders fraudulent documentation to support the false claims in the mortgage applications.
If convicted of all charges, the defendant faces a maximum sentence of 30 years in prison, restitution, and a fine of up to twice the loss inflicted by the defendant’s conduct.
“As alleged in the complaint, Schelton Assoumou purported to run a real estate development business that invested in the revitalization of the Bedford-Stuyvesant neighborhood in Brooklyn. Instead, his goal was to fleece investors and lending institutions alike, using false promises and fraudulent documents to carry out his scheme. Assoumou engaged in the very type of fraud that contributed to the recent collapse of the housing market,” stated United States Attorney Lynch. “Those who engage in such conduct will be vigorously investigated and prosecuted.”
FBI Special-Agent-in-Charge Venizelos said, “The defendant allegedly deceived both mortgage lenders and borrowers to enrich himself. Profiting from dishonest business doesn’t revitalize the economy, it undermines it.”
Federal Housing Finance Agency Inspector General Linick said, “The complaint
alleges a scheme to defraud in which home mortgage lenders, among them Fannie Mae and Freddie Mac, lost millions of dollars as a result of Schelton Assoumou’s activities. My Office is committed to prosecuting such fraud schemes to the fullest extent under law.”This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The Task Force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The government’s case is being prosecuted by Assistant United States Attorney Michael Warren.
The Defendant:
SHELTON ASSOUMOU
Age: 36
Residence: Brooklyn, NYBrooklyn Man Sentenced to 5 Years Imprisonment and Ordered to Pay $297,554.00 in Restitution for Credit Card FraudRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that PAUL HILL (24, of Brooklyn, New York) was sentenced to 60 months imprisonment by United States District Court Judge Norman A. Mordue for Access Device Fraud and Aggravated Identity Theft. Judge Mordue also ordered HILL to pay restitution in the amount of $297,554.00 to seven banks that had been defrauded by the credit card scam.
Pursuant to his plea agreement with the government, HILL admitted that he fraudulently obtained, without permission via the internet, credit and debit card account numbers (account numbers) that belonged to other persons. Those account numbers were issued by financial institutions that engaged in interstate and foreign commerce. After obtaining the account numbers, PAUL HILL stored the information on his computer at his residence in Brooklyn, New York. Thereafter, PAUL HILL converted plastic cards, usually gift cards, into counterfeit credit or debit cards by re-encoding the cards with the fraudulently obtained account numbers and other information that belonged to other persons. Thereafter, PAUL HILL mailed the manufactured counterfeit cards to co-defendant Andre Greaves in Syracuse, New York.
After receiving the counterfeit cards, Andre Greaves utilized the manufactured counterfeit cards to effect transactions at numerous merchant locations in Onondaga County and elsewhere. Specifically, Greaves utilized the manufactured counterfeit cards to purchase stored value gift cards (gift cards). After purchasing the gift cards, Greaves redeemed a portion of the gift cards for his own personal use, and on the instruction of PAUL HILL, mailed a portion of the gift cards to HILL in Brooklyn, New York.
At the time PAUL HILL manufactured and mailed the counterfeit credit cards to Andre Greaves, he knew that the account numbers belonged to real people who had not authorized either Greaves or HILL to make the purchases. HILL, aided and abetted by Greaves, knowingly, willfully, and with the intent to defraud, used the manufactured counterfeit cards during a one year period to obtain items of value amounting to more than $1,000.00. Specifically, between June 2010 and April 2011, Andre Greaves made purchases totaling approximately $16,314.36 using unauthorized access devices that he obtained from HILL.
On March 27, 2012, Andre Greaves pled guilty to Access Device Fraud and Aggravated Identity Theft. On August 1, 2012, Judge Mordue sentenced Greaves to 36 months imprisonment and also ordered him to pay the same amount of restitution as HILL.
These arrests followed from a lengthy investigation conducted by the United States Secret Service, Syracuse Resident Office, the United States Secret Service, New York Field Office, the United States Postal Inspectors, and the Syracuse Police Department. The case is being prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Assistant Branch Manager Indicted for Bank EmbezzlementRead the Press Release
HOUSTON – Hannah Gonzales, 24, of Houston, has been arrested following the return of an 11-count indictment alleging she embezzled from International Bank of Commerce (IBC), United States Attorney Kenneth Magidson announced today.
Gonzales was arrested this morning without incident. She is expected to make her initial appearance before U.S. Magistrate Judge Frances Stacy at 2:00 today.
According to the indictment returned Wednesday, Jan. 9, 2013, Gonzales was an assistant branch manager at IBC. During 2010-11, Gonzales allegedly began withdrawing money from CD accounts of customers without their authorization. The indictment further alleges she chose customers who were either elderly or out of the country in order to reduce the chance she would get caught. By the time she was fired in July 2011, Gonzales had allegedly withdrawn almost $100,000.
The indictment also indicates she took money from her teller boxes without authorization. Gonzales allegedly conducted transactions in which there was no customer in addition to simply taking customer’s cash deposits without placing the cash into her teller box. On the day she was fired, IBC’s audits revealed she was short approximately an additional $24,000.
The indictment also includes notice of the government’s intent to seek a forfeiture of approximately $124,000.
If convicted, she faces up to 30 years on each count of conviction as well as a possible $1 million fine.
The investigation was conducted by the U.S. Secret Service. Assistant United States Attorney Sharad S. Khandelwal is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Arizona Man Sentenced for Conspiracy to Distribute MethRead the Press Release
United States Attorney Brendan V. Johnson announced that an Arizona man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on January 3, 2013, by Chief U.S. District Judge Jeffrey L. Viken. James Lee Walker, age 45, was sentenced to time served, 2 years' supervised release, and a $100 special assessment to the Victim Assistance Fund.
The charge relates to Walker conspiring with another person to distribute 50 grams or more of methamphetamine in the District of South Dakota and elsewhere in 2011 and 2012. Walker pled guilty to the charge on September 7, 2012.
This case was investigated by the Drug Enforcement Administration and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Albuquerque Businesswoman Sentenced to a Month in Prison for Misdemeanor Tax Conviction - Also Ordered to Pay $125,776.54 in Restitution to IRSRead the Press Release
Also Ordered to Pay $125,776.54 in Restitution to IRS
ALBUQUERQUE – Delilah S. Haller, 56, of Albuquerque, N.M., was sentenced this morning to a month in prison followed by a year of supervised release, which will include four months of location monitoring, for her misdemeanor conviction for willfully failing to file a federal tax return. Haller also was ordered to pay $125,776.54 in restitution to the IRS.
Haller was indicted in March 2011 and charged with willfully failing to file federal tax returns for tax years 2005, 2006 and 2007. At the time of the misdemeanor offenses charged in the indictment, Haller did business as Rosewood Equities, LLC.
On May 17, 2012, Haller pled guilty to the third count of the indictment, charging her with willful failure to file a tax return for tax year 2007. In entering her guilty plea, Haller admitted that, although she earned more than $19,600 in income in 2007, she willfully failed to file a federal tax return for that year as required.
Haller filed tax returns for the three years charged in the indictment as well as for tax year 2004 before entering her guilty plea. Since then, Haller also has filed tax returns for tax years 2008 through 2011.
As required by the plea agreement, Counts 1 and 2 of the indictment were dismissed after Haller was sentenced. Haller is to surrender to the U.S. Marshals Service within a week to begin serving her prison sentence.
The case was investigated by the IRS, Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Sasha Siemel.
Agoura Hills Man Sentenced to Seven Years in Federal Prison for Defrauding Investors in Advertising Ponzi SchemeRead the Press Release
LOS ANGELES – An Agoura Hills man who used his business to defraud dozens of victims in a multi-million dollar investment scheme has been sentenced to seven years in federal prison.
Dean P. Gross, 50, was sentenced yesterday afternoon by United States District Judge Stephen V. Wilson, who also ordered the defendant to pay restitution of approximately $15.4 million.
The sentencing of Gross was announced today by United States Attorney André Birotte Jr. and Bill Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office.
Gross, who was charged with operating the investment scheme between 2006 and 2009, pleaded guilty to one count of wire fraud on August 6, 2012. While running the scheme, Gross collected more than $35.8 million from approximately 39 investors.
Gross operated the scheme through his home business, which he called Bridon Entertainment. When recruiting investors, Gross falsely represented to victims that he was a veteran of the advertising industry and, therefore, had significant connections that allowed him to purchase advertising time and space at discounted rates. Gross falsely advised investors that he would then resell the discounted advertising to large, well-known corporations at a substantial profit. Gross told investors that if they invested in Bridon Entertainment, their money would be used to purchase the advertising time and space and that investment returns would be generated by the profitable resale of that advertising.
The investigation revealed that Gross never used investors’ money to buy or sell advertising and that he did not have relationships with the well-known corporations he said would buy the ads.
In classic Ponzi-style fashion, investors were paid with money from new investors, and none of their returns were generated from advertising sales. The investigation indicated that 29 of the investors suffered $15.4 million in losses.
The investigation also revealed that Gross used millions of dollars in investor money to pay for personal expenses, including the construction of a vacation house.
This case was investigated by the Federal Bureau of Investigation.
Release No. 13-009
ATF and Lansing Police Department Arrest Seven on Federal Drug and Firearm ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – Federal and State authorities arrested seven residents of Northwest Lansing on various federal drug and firearm charges following the return of multiple federal indictments, U.S. Attorney Patrick A. Miles, Jr., Acting Special Agent in Charge Gilbert Salinas, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Teresa Szymanski, Lansing Police Department (LPD), announced today. The ATF and LPD are jointly targeting drug activity and violent crime in Northwest Lansing.Merza Mizori, 23, Gregory Dalton, 23, DeShun Dalton, 21, and Serwan Mizori, 22, (who was already in custody on unrelated state charges), jointly face multiple drug charges, including conspiring to distribute and to possess with intent to distribute crack cocaine and marijuana and actually distributing or possessing with intent to distribute those drugs as well as heroin. They face a minimum of ten years and up to life in prison on the conspiracy charge, up to 20 years in prison on the cocaine and heroin charges and up to five years in prison on the marijuana charges.
In a separate indictment, Jerome Houston, 26, faces charges for possessing firearms as a convicted felon, while Keith Houston, 22, stands charged with receiving a firearm while under indictment for a felony drug offense. Each charge is punishable by up to ten years in prison.
In another unrelated indictment, Brandon Jones, 26, (also already in custody on unrelated state charges) has been charged with possessing firearms, including an SKS rifle, as a convicted felon. That charge is punishable by up to ten years in prison.
Finally, Demanual Porter, 24, and Kevin Henry, 43, separately face charges for distributing crack cocaine. Each charge is punishable by up to 20 years in prison.
The charges in a federal indictment or state felony information are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
18 Defendants Charged with Operating a Large Scale Drug Organization in Anne Arundel and Howard CountiesRead the Press Release
Indictment Seeks a Money Judgment of at Least $10 Million, and the Forfeiture of Eight Properties, 22 Bank Accounts and 24 VehiclesBaltimore, Maryland - Eighteen defendants alleged to be part of a large drug trafficking organization operating in Anne Arundel and Howard Counties, Maryland; New Jersey; and California, have been charged in connection with distributing large amounts of marijuana, diverted pharmaceuticals, steroids, cocaine and other controlled substances. Approximately 250 law enforcement agents participated in the execution of today’s search and arrest warrants. Fifteen of the defendants have been charged by indictment with conspiring to distribute 1,000 kilograms or more of marijuana, and all of these defendants except Charles Thomson are also charged with conspiring to launder the drug proceeds:
- Kerem Dayi, a/k/a “Kenny” and “Cashmir,” age 40, of Gambrills, Maryland, and California;
- Robert Randall Glickman, age 61 , of Dallas, Texas;
- Scott Russell Segal, age 31, of Glen Burnie and Hanover, Maryland;
- Gabriel Gonzalez, age 26;
- Gokahn Bergal, age 29, of Clifton, New Jersey;
- Steven Neil Madden, age 43, of Randallstown, Maryland;
- Martin Dandy, age 31, of Arnold, Maryland;
- Patrick Russo, age 39 , of Fairfield, New Jersey;
- Ryan Burton Wheeler, age 32, of Annapolis, Maryland;
- Anthony Caesar Santoiemma, a/k/a “Bo,”age 43, of Annapolis;
- Anthony Evans Owings Seen, age 26, of Glen Burnie;
- Christopher John Garner, age 41, of Hanover;
- Frederick Blair Thomas, age 31, of Glen Burnie;
- Sae Hyong Hwang, age 33, of Odenton, Maryland; and
- Charles Michael Thomson, age 62, of Savage Minnesota.
The indictment was returned under seal on January 10, 2013. Three defendants are charged by complaint with the marijuana conspiracy:
- Alexandros Lineberry, age 36, of Arnold;
- Jeffrey Dennis Small, age 32, of Annapolis; and
- Donald Goodman, age 63, of Baltimore.
The complaint was filed yesterday under seal. The indictment and complaint were unsealed today upon the arrests of 15 defendants and the execution of search warrants at 17 residences and businesses of the defendants in Maryland, five in New Jersey and one in California. At least 30 vehicles, 60 pounds of marijuana, $300,000 in cash and 35 firearms have been seized.
The indictment and complaint were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Robert Brisolari of the Drug Enforcement Administration - Washington Field Division; Anne Arundel County Police Chief Larry W. Tolliver; Howard County Police Chief William McMahon; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
“The Drug Enforcement Administration, working in partnership with both federal and local law enforcement, including the U.S. Attorney's Office for the District of Maryland are bringing to justice18 members of a narcotic trafficking organization operating throughout the United States,” stated Acting Special Agent in Charge Robert Brisolari of DEA’s Washington Division. “As a result of this investigation numerous properties, vehicles and banks accounts have been seized totaling millions of dollars.”
The affidavits supporting the complaint and search warrants allege that the defendants operated a drug trafficking organization in Anne Arundel and Howard Counties, primarily dealing in marijuana, but also dealing in cocaine and diverted pharmaceuticals. The investigation began when defendant Frederick Thomas was in a single car accident on Route 100 at Quarterfield Road in Anne Arundel County on January 7, 2012. Inside his car, agents discovered a shrink-wrapped package of 590 grams of marijuana, a money counting machine, a talley sheet and 126 bank money bands for $2,000.
The affidavits allege that further investigation revealed that Dayi is the drug organization’s leader. Dayi obtains the marijuana from contacts in California and New Jersey. Dayi has 20 pounds or more of marijuana shipped, or 50 to 400 pounds of marijuana driven, to Maryland at a time. Dayi directs the storage of marijuana at houses rented and managed by him and members of the organization, and directs the movement of marijuana and cash between Maryland, California, Ohio and New Jersey.
According to the affidavits, Dayi supplies the marijuana to Segal who is the main wholesale distributer in Anne Arundel County. Segal maintained a stash house off of Interstate 97 in Anne Arundel County. Santoiemma allegedly brokers deals on behalf of Dayi and makes a commission. Marijuana proceeds were allegedly sewn into handbags and delivered to the source of supply in California. Santoiemma allegedly supplied young women to the organization who would fly from BWI to California with these handbags. Thomas allegedly worked at the direction of Dayi, Segal and Santoiemma.
The affidavits allege that Wheeler is a wholesale cocaine customer of Dayi, and supplies ounce and pound quantities of marijuana and cocaine to others for further distribution. Co-defendants Segal, Madden, Bergal, Gonzalez, Glickman, Hwang, Dandy, Seen and Russo are in Dayi’s innermost, trusted circle of lieutenants, who either buy/sell drugs, participate in the laundering of money and/or operate the daily business of Krush.
Glickman allegedly advises Dayi as to the laundering of drug proceeds. The drug organization allegedly launders the drug proceeds by: smuggling bulk cash in cars; sending cash through the mail and commercial delivery services; structuring deposits into bank accounts and removing it from banks in other states; and by investing money into, and removing money from, otherwise legitimate businesses operated by members of the conspiracy . The organization allegedly established an Ebay business named Krush, NYC, LLC for use as a front for marijuana distribution and the laundering of the proceeds. Krush conducts EBay sales of liquidated shoes, clothing and accessories, and uses a warehouse in Jessup, Maryland for business purposes and allegedly for distribution of marijuana.
The indictment seeks a money judgment of at least $10 million, and the forfeiture of eight properties, 22 bank accounts, 24 vehicles, and the assets and inventory of three businesses.
All of the defendants face a maximum sentence of life in prison for the drug conspiracy; and the 14 defendants charged in the indictment with the money laundering conspiracy face a maximum sentence of 20 years in prison. Initial appearances of the defendants arrested in Maryland began at 2:00 pm today in U.S. District Court in Baltimore.
“IRS Criminal Investigation’s unique role in major drug trafficking investigations is to provide financial expertise by targeting the profit and financial gains of narcotics traffickers, enabling increased criminal prosecutions and asset forfeitures,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today’s successful execution of multiple arrests and search warrants is an important victory for the American public. IRS Criminal Investigation will continually collaborate on organized crime investigations along with its law enforcement partners to financially disrupt and dismantle those organizations and bring criminals to justice.”
An indictment and complaint are not a finding of guilt. An individual charged by indictment or complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, Anne Arundel County Police Department, Howard County Police Department, ATF, IRS - Criminal Investigation, HSI Baltimore, U.S. Postal Inspection Service, and the Maryland Financial Crime Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea Smith and Brooke Carey, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Monday 14 January 2013
Wheeling Man Admits to International Firearm TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA — A 25-year old Wheeling, West Virginia, man has admitted to acquiring firearms in the Ohio Valley and then shipping them to other countries in violation of federal law.
United States Attorney William J. Ihlenfeld, II, announced that MICHAEL STEVEN FRANK entered pleas of guilty to “Conspiracy to Export Firearms” and “Money Laundering” in the United States District Court in Wheeling. FRANK admitted in court that from February 7, 2012, to August 2, 2012, he unlawfully exported twenty-four firearms to purchasers in Canada and Israel. At least one of the foreign sales was funded through an unlawful money laundering transaction in which the buyer anonymously shipped $2,000 in currency to FRANK.
The investigation initially indicated the guns were being shipped by a man named “Jason Silvers” but the U.S. Postal Service was able to determine that the shipper was actually FRANK. It was further discovered that FRANK purchased the firearms from local gun dealers and then obliterated the serial numbers on the weapons before shipping them outside of the country in exchange for cash payments. As part of his plea, FRANK will forfeit all firearms involved in the violations as well as a money judgment of $2,000.
FRANK, who is free on bond pending sentencing, faces up to 25 years imprisonment and a fine of up to $750,000.
This case was prosecuted by Assistant United States Attorney Michael D. Stein and was investigated by the Postal Inspection Service; US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI) and the Bureau of Alcohol, Tobacco and Firearms.
U.S.Supreme Court Denies Writ in Matter of Jason PleauRead the Press Release
Today, the United States Supreme Court denied petitions for writs of certiorari filed by Governor Lincoln D. Chafee and defendant Jason Wayne Pleau. This means that the Supreme Court has refused to consider the Governor’s and Pleau’s challenge to the earlier en banc decision of the United States Court of Appeals for the First Circuit, requiring that the state surrender custody of Pleau for trial on pending federal charges.
United States Attorney Peter F. Neronha commented, “I am obviously pleased with the decision of the United States Supreme Court not to review the First Circuit’s entirely correct ruling requiring the State of Rhode Island to surrender custody of Mr. Pleau to the United States for trial in federal court. As we have been since September of 2010, we are prepared to move ahead with this case immediately and without delay.”
Contact: 401-709-5357
[email protected]Two Romanian Nationals Sentenced for Naturalization FraudRead the Press Release
BOISE – Romanian nationals Ramona Alina Fenesan, 32, and Florin Fleischer, 34, both formerly living in Ketchum, Idaho, were sentenced today for unlawful procurement of United States citizenship, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced each defendant to two years’ probation, imposed a $1,000 fine, and entered an order revoking their United States citizenship. They will be subject to immigration enforcement action by U.S. Immigration and Customs Enforcement (ICE). Fenesan and Fleischer pleaded guilty to the charge in September and October 2012, respectively.
According to plea agreements, Fenesan and Fleischer entered into fraudulent marriages with United States citizens in the fall of 2003, with the sole purpose of evading immigration laws and obtaining immigration benefits. According to court documents, the defendants did not reside with the individual they married. Following their marriages, the defendants filed paperwork with the Department of Homeland Security/Citizenship and Immigration Services (USCIS), seeking lawful permanent resident status based on their fraudulent marriage to a U.S. citizen. USCIS subsequently approved their applications and the defendants became naturalized United States citizens. Upon receiving naturalization, Fenesan and Fleischer divorced their U.S. citizen spouses, with whom they had entered into a fraudulent marriage, and married each other.
At today’s sentencing hearings, defense counsel informed the court that as a result of the fraud and the resulting convictions, the defendants lost their home and their jobs, and will be deported back to Romania.
“U.S. citizenship is a privilege deserved only by those who obtain it legally,” said Brad Bench, special agent in charge of HSI Seattle, who oversees HSI investigations in Idaho. “As this case shows, HSI will move aggressively to identify and prosecute fraudsters who corrupt the immigration process for personal gain.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Two Plead Guilty to Federal Gun CrimesRead the Press Release
Cases Related to Ongoing Aryan Knights Investigation
BOISE – Andrew Gallegos, 23, and Cameron James Ball, 25, both of Boise, Idaho, pleaded guilty today in United States District Court to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Gallegos and Ball were charged in two separate indictments filed in August and September 2012, respectively.
Gallegos and Ball pleaded guilty to illegally possessing the firearms after having been convicted of a felony crime punishable by a term of imprisonment exceeding one year. Gallegos admitted in court today that on February 21, 2012, he possessed a Smith & Wesson .357 semi-automatic pistol. According to the plea agreement, Ball admitted that on February 8, 2012, he unlawfully possessed a CHS a Hi-Point .40 semi-automatic pistol.
Unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearms.
Gallegos is set for sentencing on April 8, 2013, before U.S. District Judge Edward J. Lodge, at the federal courthouse in Boise. Ball is set for sentencing on April 9, 2013, before Chief U.S. District Judge B. Lynn Winmill.
The cases were the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, U.S. Marshals Service, and the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole. The investigation focused on illegal drug distribution by the “Aryan Knights,” a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Two Plead Guilty in Alton Heroin Overdose DeathRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Tyrone L. Adams and Cara L. Moss pled guilty in U.S. District Court in East St. Louis on January 14, 2013, to distributing the heroin which caused the death of Leonard O. Hormann, III, in Alton on August 20, 2012.
“These convictions are another strong message to drug dealers throughout Southern Illinois that they peddle poison at their own risk,” said United States Attorney Wigginton. “When such dealers are caught and convicted, those risks are enormous – in this case both defendants face a possible life sentence. My Office is determined to continue its initiative to stop the epidemic of heroin overdose deaths among our young citizens.”
Wigginton also complimented the work of the Alton Police Department and the Madison County State’s Attorney, saying that, “The Alton police conducted an investigation in this case that could serve as a model for future investigations. I am also proud of the fact that these convictions resulted from close coordination with the Madison County State’s Attorney. The results in this case demonstrate the benefits of careful federal and state cooperation.”
Adams, 33, and Moss, 26, admitted selling heroin to Hormann at the residence which Adams and Moss shared at Powhattan Street in Alton. Hormann paid $100 for the heroin which killed him. Hormann’s family found him dead at his own residence in Alton on August 21, 2012. Hormann was 23 years old when he died.
In addition to pleading guilty to the charge of Distribution of Heroin Resulting in Death, Adams and Moss also pled guilty to a second charge of Maintaining Drug-Involved Premises at their residence on Powhattan Street between June 2012 and September 2012. Adams and Moss admitted to selling more than 100 grams of heroin (3 ½ ounces) to various heroin customers who came to their residence during that time period.
In addition, Adams pled guilty to a third charge of Distribution of Heroin Within 1000 Feet of a School. Adams’ residence on Powhattan was located near “The Motivational Achievement Center,” a public school, in Alton.
Adams and Moss are scheduled to be sentenced on April 29, 2013. Both Adams and Moss face a maximum possible sentence of life imprisonment when they are sentenced. Adams and Moss have both been held without bail since they were arrested by Alton police on September 5, 2012.
Alton police conducted the investigation which led to the convictions of Adams and Moss. This case is assigned to Assistant United States Attorney Robert L. Garrison.
Two Newark, N.J., Men Charged with Armed RobberyRead the Press Release
NEWARK, N.J. – Two Newark, N.J., men are expected to appear in federal court this afternoon after being charged with armed robbery of the Golden Palace jewelry store in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
Charles Madison, 41, and Antonio Moore, 44, both of Newark, N.J., are charged by Complaint with one count of robbery and one count of weapon possession. They will make a court appearance today at 1:30 p.m. before U.S. Magistrate Judge Patty Shwartz in Newark federal court.
According to the Complaint:
On August 6, 2012, Madison, Moore, and a co-conspirator agreed to rob the Golden Palace jewelry store. Madison agreed to supply the weapons and serve as the getaway driver, while Moore and the co-conspirator agreed to rob the store at gunpoint. In the early evening of August 6, Moore and the co-conspirator entered the store, pulled stockings over their faces, drew weapons, and demanded that the store’s employees empty all of the jewelry from the display cases.
At one point during the robbery, Moore stated that the employees were taking too long to hand over the jewelry. Moore then approached a 22-year-old female employee and punched her in the head, knocking her against the wall and causing her to collapse to the ground.
After taking approximately $120,000 in jewelry from the store, Moore and the co-conspirator ran into the street and jumped into a white Ford pick-up truck driven by Madison. Approximately one hour later, N.J. State Police pulled over the vehicle on South Orange and Speedway avenues in Newark. All three men were inside. Troopers found dozens of pieces of gold jewelry scattered across the back seat of the car, along with two pairs of stockings and a pair of work gloves. Underneath the car, tucked into the spare tire wheel well, troopers retrieved two firearms, including a semi-automatic handgun with a large-capacity magazine.
If convicted on the robbery charge, both men face maximum sentence of 20 years in prison and a maximum fine of $250,000.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to today’s Complaint. Fishman also thanked the Orange Police Department and the N.J. State Police for their assistance and cooperation on the investigation.
The government is represented by Assistant U.S. Attorney Andrew J. Bruck of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.13-024
Madison, Charles Et. Al. Complaint
Two Mothers Sentenced to Prison Terms for Using Their Children in Staged Accident SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), and Jeff Atwater, Florida Chief Financial Officer, announced that Ana Ovando, 42, of West Palm Beach, was sentenced Friday, January 11, 2013, to 78 months in prison followed by three years of supervised release for her role in a staged accident fraud scheme. On October 25, 2012, a jury convicted Ovando of conspiring with others to commit mail fraud, in violation of Title 18, United States Code, Sections 1341 and 1349 as well as of 14 substantive counts of mail fraud, in violation of Title 18, United States Code, Section 1341. Ovando used her five children – aged between three and seventeen – during three staged accidents that occurred within twelve months.
On January 3, 2013, Janice Velez, 39, also of West Palm Beach, was sentenced to 24 months in prison followed by two years of supervised release for her role in the same staged accident fraud scheme. Velez pled guilty on October 24, 2012 to conspiring with others to commit mail fraud, in violation of Title 18, United States Code, Sections 1341 and 1349, as well as to 8 substantive counts of mail fraud, in violation of Title 18, United States Code, Section 1341. Velez used her two children during one staged accident.
According to court documents and evidence presented at trial, under Florida’s “No Fault” insurance law, insurers must provide Personal Injury Protection (PIP) coverage of $10,000 per person. Ovando and Velez and other co-conspirators unlawfully enriched themselves by submitting fraudulent PIP claims for chiropractic and massage therapy treatments for themselves and their children. Ovando and Velez made false claims that both themselves and their children received chiropractic and massage therapy services that they neither needed nor received over a several month period. Ovando took her children to New York Medical and Rehab Center and Velez took her children to Karow Chiropractic Center, both located in West Palm Beach. There, massage therapists admitted that these patients signed blank treatment sheets that the massage therapists later completed and submitted to the insurance company for reimbursement.
Ovando and Velez are the latest federal defendants to be sentenced in the investigation known as Operation Sledgehammer. To date, a total of 26 defendants have been charged, resulting in 22 federal convictions. Four defendants are fugitives who have fled the United States.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CID, and the Florida Department of Insurance Fraud. Mr. Ferrer also thanked the National Insurance Crime Bureau (NICB) for its assistance in this investigation, as well as the members of the Greater Palm Beach Health Care Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney A. Marie Villafaña.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA - Two individuals were sentenced on January 4,
2013, in United States District Court in Clarksburg by Judge Irene M. Keeley.United States Attorney William J. Ihlenfeld, II, announced that:
JAMES ROBERT HURST, 45, of New Milton, West Virginia, was sentenced to 60 months imprisonment to be followed by three years of supervised release. HURST enterd a plea of guilty on August 29, 2012, to “Manufacturing More than 100 Marijuana Plants” and “Possession with Intent to Distribute More than 100 Marijuana Plants,” both on August 15,
2011, in Doddridge County, West Virginia. HURST, who is free on bond, will self-report to the designated Federal institution.The case was be prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the Doddridge County Sheriff’s Department and the West Virginia State Police.
KRISTEN DAVIS, age 38, of Clarksburg, was sentenced to 27 months imprisonment to be followed by six years of supervised release. DAVIS entered a plea of guilty on September
26, 2012, to the “Distribution of Crack Cocaine within 1,000 Feet of St. Mary’s Grade School” on July 1, 2011, in Clarksburg. DAVIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.The case was prosecuted by Assistant United States Attorney Shawn A. Morgan and investigated by the Harrison County Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.