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22 February 2013
Ross T. Pattison Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 21, 2013, before Chief U.S. District Judge Richard F. Cebull, ROSS T. PATTISON, a 49-year-old resident of Hardin, appeared for sentencing. PATTISON was sentenced to a term of:
- Prison: 20 months
- Special Assessment: $100
- Forfeiture: 625 West 1st Street, Hardin, MT
- Supervised Release: 3 years
PATTISON was sentenced in connection with his guilty plea to maintaining a drug involved premises.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
In approximately March of 2011, law enforcement received a complaint that PATTISON and Travis Birdinground were distributing marijuana to numerous people in Hardin and other places in Big Horn County. Through investigation and interviews, law enforcement determined that PATTISON possessed a Montana medical marijuana card but was not listed as a caregiver because he is a convicted felon. Law enforcement also determined that Birdinground worked for PATTISON delivering marijuana. Birdinground also possessed a medical marijuana card and was a caregiver for only one patient. Law enforcement observed Birdinground leave PATTISON's residence numerous times a night and make trips to several residences within Hardin. Law enforcement also observed several individuals drive to PATTISON's residence to purchase marijuana from PATTISON.
On April 22, 2011, law enforcement executed search warrants for PATTISON's Hardin residence and two pickup trucks. Law enforcement seized approximately five pounds of marijuana, approximately $124,000 in cash, digital scales, a paper grocery bag full of zip-lock bags, a methamphetamine pipe with residue, hashish, and photocopies of patient medical marijuana cards for marijuana caregivers Brandon Strecker, Jason Gierke, Birdinground, and another individual.
On May 23, 2011, law enforcement executed a search warrant at Strecker's Hardin residence. Law enforcement seized a total of 420 marijuana plants - 112 marijuana plants in the attached garage, 239 marijuana plants in the bedroom, one plant in the living room, 68 in the greenhouse and shed. They also seized loose marijuana.
Several witnesses confirmed that PATTISON would take and receive orders for marijuana and Gierke, Birdinground, and another individual would deliver marijuana to the buyers. Several witnesses will testify that after Ross PATTISON's house was searched, all deliveries were then made by Strecker or the others.
During an interview with law enforcement on April 22, 2011, Birdinground admitted his role in the conspiracy to distribute marijuana from PATTISON's and Strecker's Hardin residences. The marijuana that he possessed on April 22, 2011, was marijuana that he was delivering for PATTISON and Strecker. The marijuana was ordered through PATTISON. Birdinground would pick up the marijuana from PATTISON and give PATTISON the money after the transaction. PATTISON and Strecker paid Birdinground $800 every two weeks.
During an interview with law enforcement on May 25, 2011, Gierke stated that he helped set up the greenhouses and watering system as part of the marijuana grow operation at Strecker's Hardin residence. Gierke obtained his marijuana from PATTISON and Strecker. Gierke, PATTISON, and Strecker were "business partners." PATTISON put it all together and they grew the marijuana at Strecker's residence.
Chemists with the DEA laboratory in San Francisco tested the marijuana items submitted from the search of Strecker's residence. Some of the items were plant clippings as well as loose marijuana. The result of the analysis was that those items contained a detectable amount of marijuana, a Schedule I controlled substance.
Gierke, Strecker, and Birdinground pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they 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 a cooperative effort between the Drug Enforcement Administration, the Montana Division of Criminal Investigation.
Residential Care Facility Exec Sentenced to Probation with Confinement for Failing to File Tax ReturnsRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County has been sentenced in federal court to five years probation, the first three months to be served at a Community Corrections Center and the following six months to be served in home confinement, on his conviction of willfully failing to file an income tax return, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on William J. Dugan, Jr.
According to information presented to the court, on or before Sept. 15, 2006, Dugan, formerly the Vice President, Secretary and Treasurer of Dugan’s Residential Care, Inc., a business which operated six residential care facilities for mentally handicapped adults in Allegheny and Butler Counties, and based in Cheswick, Pennsylvania, failed to file a corporate income tax return for the calendar year 2005, as required by law, resulting in a tax loss to the Internal Revenue Service of $128,706. Dugan and his estranged wife, Maureen Dugan, the CEO and Executive Director of Dugan's Residential Care, Inc., failed to file both corporate and personal tax returns for the years 2003 to 2006, resulting in a total loss of approximately $320,000. Maureen Dugan previously entered a plea of guilty to a similar charge and was sentenced to serve a five-year term of probation.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service for the investigation leading to the successful prosecution of Dugan.
Pittsburgh Man Made False Statements on Forms to Obtain Siblings' Life Insurance BenefitsRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County pleaded guilty in federal court to a charge of false statements, United States Attorney David J. Hickton announced today.
William R. Cook, Sr., 34, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Terrence F. McVerry.
According to information presented to the court, Clarence Williams, the father of the defendant, was a Postal Service employee who had Federal Employees Group Life Insurance (FEGLI). Mr. Clarence Williams designated his four children as his beneficiaries to each receive an equal share of the payout. Without the knowledge or consent of his siblings, William Cook filled out federal forms purporting to be his sister and two brothers. The forged forms directed that the payout monies all be sent to the defendant's address. Cook collected and spent the monies intended for his three siblings. When the fraud was discovered, the government paid each of the three siblings $39,102.59 thus incurring a loss in the total amount of $117,307.77.
Judge McVerry scheduled sentencing for June 28, 2013. The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Office of Personnel Management, Office of Inspector General, conducted the investigation leading to the indictment in this case.
Pennsylvania Jeweler Pleads Guilty to $3 Million Ponzi SchemeRead the Press Release
ALEXANDRIA, Va. – Matthew James Addy, 34, of Lancaster, Penn., pleaded guilty today to securities fraud charges for running a $3 million Ponzi scheme that involved the fake purchase and resale of wholesale jewelry and loose precious stones.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge James C. Cacheris.
Addy faces a maximum penalty of 20 years in prison when he is sentenced on May 10, 2013.
According to court records, Addy owned Edward J. & Company, which operated a retail jewelry store in Lancaster called La Porte Jewelers. In 2010, Addy began recruiting individuals to invest in promissory notes purportedly linked to transactions involving wholesale jewelry and loose precious stones, which would be purchased through Addy’s businesses and resold to retail jewelers for a profit. Addy ultimately recruited more than 40 investors from throughout the United States, including within the Eastern District of Virginia, and Europe, and obtained more than $3 million in invested funds. Addy recruited many of the victim investors from within religious groups with which he was associated and used the affiliations to gain their trust.
The investment scheme was a fraud. Addy never conducted any of the contemplated wholesale jewelry transactions, and Addy used the vast majority of the invested funds on unrelated business and personal expenses. Approximately $670,000 was paid back out to investors during the course of the fraud as supposed profits on their investments and was designed to conceal the fraud and induce further investments in the scheme. Much of these payouts came directly from funds contributed by new investors, known as “Ponzi” payments.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Palm Beach County Residents Arrested for Sex Trafficking of MinorsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that defendants Dontavious M. Blake, 32, and Tara Jo Moore, 26, both of Palm Beach County, were charged in a federal criminal complaint with sex trafficking of minors. Pre-trial detention hearings for Blake and Moore are scheduled for Tuesday, February 26, 2013.
More specifically, the complaint charges Blake and Moore with sex trafficking of children and conspiracy to commit sex trafficking of children, and inducing a minor to engage in commercial sex act, in violation of Title 18, United States Code, Sections 1591, 1594 and 2422, respectively. If convicted, Blake and Moore face a maximum possible statutory sentence of up to life in prison.
This case stemmed from an investigation into the production of child pornography. According to the allegations in the complaint affidavit, a victim revealed that she had engaged in prostitution in the summer of 2011, at the age of 15. The victim stated that she had worked in hotels in the Palm Beach County area and identified Blake and Moore as her pimp and his girlfriend. Blake would post online escort advertisements, with photographs of the victim, on Backpage.com listing a phone number belonging to him. Moore would allegedly answer the calls from clients and negotiate a price for prostitution services and schedule a “date.” Once the price had been agreed upon, Blake would contact the minor and drive her to location for the “date.” At the conclusion of the date, the victim would pay a portion of the proceeds to Blake, including payment for a portion of the cost of the hotel room.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
A complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Attachments: Complaint (PDF)
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.
Owner of "Clean Green Fuel" Sentenced to over 12 Years in Scheme to Violate EPA Regulations and Sell $9 Million in Fradulent Fuel CreditsRead the Press Release
Rodney Hailey Falsely Claimed His Company Produced 23 Million Gallons of Renewable FuelBaltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Rodney R. Hailey, age 34, of Perry Hall, Maryland, today to 151 months in prison followed by three years of supervised release in connection with a scheme in which he sold $9 million in renewable fuel credits which he falsely claimed were produced by his company, Clean Green Fuel, LLC. Judge Quarles enhanced Hailey’s sentence upon finding that he obstructed justice by concealing, selling and spending assets that were protected by court order. Judge Quarles also ordered that Hailey pay restitution of $42,196,089.78 to over 20 companies, and forfeit $9.1 million in proceeds of the fraud including cars, jewelry, his home and bank accounts already seized by the government in partial satisfaction of such $9.1 million judgment.
Hailey was convicted on June 25, 2012, of eight counts of wire fraud, 32 counts of money laundering and two counts of violating the Clean Air Act. He has been detained since the guilty verdict.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David G. McLeod, Jr. of the Environmental Protection Agency’s (EPA) Criminal Investigation Division; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Thomas Muskett of the EPA Office of Inspector General - Office of Investigations - Washington Field Office; U.S. Marshal for Maryland Johnny Hughes; and Chief James W. Johnson of the Baltimore County Police Department.
“Any government program that is based on trust is vulnerable to a fraudster like Rodney Hailey,” said U.S. Attorney Rod J. Rosenstein. “The only thing Rodney Hailey’s ‘Clean Green Fuel’ business produced was the dirty money he used to fund his lavish lifestyle.”
“Congress created the Renewable Fuel Standard program to ensure that transportation fuel sold in this country contains a requisite amount of renewable fuel to promote a cleaner and healthier environment,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program in Maryland. "The joint investigation into the defendant’s so-called biodiesel operation revealed no evidence that biofuel ever existed. Today’s sentence demonstrates that those who blatantly thumb their nose at the law in order to make money illegally will be prosecuted.”
“Ultimately, Mr Hailey’s greed has deprived him of his freedom as well as his personal property,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today’s sentence reaffirms that IRS Criminal Investigation, in cooperation with our law enforcement partners, is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to evidence presented at the six day trial, Hailey owned Clean Green Fuel, LLC, located in the Baltimore area. Hailey registered Clean Green Fuel with the EPA as a producer of bio-diesel fuel, a motor vehicle fuel derived from renewable resources. In order to encourage the production of renewable fuel and lessen the nation’s dependence on foreign oil, all oil companies that market petroleum in the U.S. are required to produce a given quantity of renewable fuel or to purchase credits, called renewable identification numbers (RINs), from producers of renewable fuels to satisfy their renewable fuel requirements.
Between March 2009 and December 2010, Hailey engaged in a massive fraud scheme, selling over 35 million RINs (representing 23 million gallons of bio-diesel fuel) to brokers and oil companies, when in fact Clean Green Fuel had produced no fuel at all and Hailey did not have a facility capable of producing bio-diesel fuel.
Federal law enforcement agents investigated the scheme after a Baltimore County police detective working with Maryland’s federal financial crimes task force received a report about a large number of luxury cars parked in front of Hailey’s house. The financial crimes task force contacted the EPA’s Criminal Investigation Division and initiated a criminal investigation.
Two civil inspectors from EPA’s Air Enforcement Division visited Clean Green’s headquarters on July 22, 2010, to inspect Hailey’s bio-diesel production facility, in response to a complaint alleging that Clean Green had been selling false RINs. Hailey was not able to provide an exact location for the bio-diesel fuel production facility, nor any records to support claims that Clean Green Fuel had produced bio-diesel fuel. When asked to explain his method of production, Hailey falsely stated that he paid employees and contractors to recover waste vegetable oil from 2,700 restaurants in the “Delmarva” area and bring it to his production facility where he converted it to bio-diesel fuel. Hailey claimed that only the drivers who picked up the oil knew the names of the restaurants, and Hailey could not provide the names of the drivers.
Hailey made over $9.1 million from selling the false RINs. The loss to the traders and major energy companies who purchased Hailey’s false RINs is over $40 million, but the loss also extends to small bio-diesel companies which, as a result of Hailey’s scheme, were unable to sell their RINs and have been forced out of business.
Hailey used the proceeds of the scheme to purchase luxury vehicles, including BMWs, Ferraris, Bentleys, a Mercedes Benz, a Rolls Royce Phantom, a Lamborghini, a Maserati and others, as well as real estate and more than $80,000 in diamond jewelry. In all of these transactions, Hailey generally used cash or checks drawn on accounts he controlled to make the purchase, including a check for $645,330.15 to buy his home in Perry Hall.
For their work in this investigation, United States Attorney Rod J. Rosenstein praised the members of the Maryland Financial Crimes Task Force, including the U.S. Marshals Service, the Baltimore County Police Department and IRS - Criminal Investigation; and the EPA Criminal Investigation Division, U.S. Postal Inspection Service, and EPA Office of Inspector General - Office of Investigations. Mr. Rosenstein thanked Assistant United States Attorneys Tonya N. Kelly and Stefan Cassella, who prosecuted the case.
Oregon Man indicted for flying without Airman's CertificateRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that an Oregon resident was indicted by the federal grand jury sitting in Anchorage, Alaska, for flying without a valid airman’s certificate. The offenses charged occurred in Alaska from April 1, 2010, through June 10, 2010.
Mark Alan McAlister, age 49, of Medford, Oregon was charged by the federal grand for flying a Piper Supercub, N226T, as a pilot in command when he lacked the necessary airman’s certificate authorizing him to serve in that capacity.
The maximum penalty for flying in command as a pilot without being certified is up to three years in prison and a $250,000 fine. An arraignment date has not been set.
Ms. Loeffler commends the Federal Aviation Administration for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
New Jersey Man Admits to Scamming NunsRead the Press Release
PHILADELPHIA - Adriano Sotomayor, 54, of Margate, New Jersey, pleaded guilty, late today, to 17 counts of wire fraud in connection with a scheme to defraud members of the Dominican Sisters of the Rosary of Fatima (“Sisters of Fatima”), and others, between May 2009 and February 2012. Sotomayor was captured by the FBI Fugitive Squad in Las Vegas, Nevada, on February 27, 2012. He went on the run November 16, 2011, one day after he was indicted.
The defendant launched his scheme by causing an elderly nun to believe that she had been named in a will as the beneficiary of an estate estimated at approximately $2.1 million. In order to lure the elderly nun into this scheme, the defendant caused his victim to believe that the man who notified her about the will was a Catholic priest from New Jersey, and the testator was one of his parishioners. Sotomayor fraudulently induced the elderly nun to begin sending money to him in Atlantic City, New Jersey, by telling her that she needed to pay taxes, processing fees, and various legal fees associated with the fictitious will. He went on to target other victims in Levittown and Philadelphia who initially sent money to him on the elderly nun’s behalf. Sotomayor caused at least 50 victims to send a total of at least $1.3 million from Pennsylvania and elsewhere to him in New Jersey over a two year period. The defendant received wire transfers at the Trump Plaza Hotel and Casino, the Showboat Hotel and Casino, and Bally’s Park Place, among other places.
U.S. District Court Judge Eduardo C. Robreno scheduled a sentencing hearing for June 12, 2013. Sotomayor faces a possible advisory sentencing guideline range of 70 to 188 months in prison.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Karen M. Klotz.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mount Vernon Woman Pleads Guilty to Theft of Government FundsRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 22, 2013, Mary Barnett-Johnson, 51, of Mount Vernon, Illinois, pled guilty to Theft of Government Funds as charged in a one count indictment returned on December 11, 2012, by a Federal Grand Jury sitting in East St. Louis, Illinois. Theft of Government Funds carries a statutory maximum possible punishment of up to ten years imprisonment, a fine of up to $250,000, a period of supervised release of up to three years and the payment of a $100.00 special assessment. Sentencing is scheduled for May 30, 2013, at 10:30 a.m. in United States District Court in Benton, Illinois.
During her plea, Barnett- Johnson admitted that she had fraudulently continued to receive and use her deceased mother’s social security benefits knowing that she was not entitled to receive or use those funds for her own personal benefit. Barnett-Johnson admitted that she received $85,353.00 in social security payments from August of 2003 through September of 2011 that were intended for her mother who died in 2003.
The investigation was conducted by the Social Security Administration’s Office of Inspector General and is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Monterey County Strawberry Farm Owner Sentenced to 12 Months Imprisonment for Submitting Fraudlent Claims for Federal Disaster ReliefRead the Press Release
SAN JOSE, Calif. – An owner-operator of a Monterey County Commercial Strawberry Farm was sentenced on Monday to 12 months and one day in prison for submitting fraudulent claims to the U.S. Department of Agriculture’s Community Credit Corporation which resulted in his receiving over $223,000 in federal crop disaster assistance, United States Attorney Melinda Haag announced.
Marco Antonio Barbosa, 50, of Salinas, California, pleaded guilty on December 15, 2010, to making a false statement to the Commodity Credit Corporation, in violation of 15 U.S.C. § 714m(a). Barbosa admitted in his plea agreement that he and his wife Maria Guadalupe Barbosa owned and operated a commercial strawberry farm named “Barbosa Farms JV (joint venture)” in Monterey County, California. Barbosa admitted that he submitted fraudulent claims to the Community Credit Corporation to receive crop disaster assistance funds to which he was not entitled. Barbosa defrauded two federal programs: the Crop Disaster Program and the Non-insured Crop Disaster Assistance Program. Barbosa falsely claimed that he had suffered strawberry crop losses due to excessive heat, falsely claimed to be farming as a joint venture instead of a corporation, and failed to disclose the full extent of his strawberry production. Barbosa received over $223,000 in federal disaster relief as a result of his fraudulent claims.
Lori Chan, the Special Agent-in-Charge for the Western Region of the U.S. Department of Agriculture’s Office of Inspector General for Investigations, said, “the Office of Inspector General will continue to vigorously investigate individuals and entities that seek to violate USDA farm programs and misuse public funds.”
In sentencing Barbosa, U.S. District Court Judge Ronald M. Whyte emphasized that Barbosa had committed a “serious offense,” and that “deterrence is an appropriate concern here.” Judge Whyte stressed that “programs like the one involved here are threatened if people steal from them and don’t respect the requirements of the program.” In addition to the prison sentence, Judge Whyte ordered the defendant to pay $223,484 in restitution, and debarred him from any Department of Agriculture program or Farm Service Agency contract, and sentenced him to a three-year period of supervised release.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Legal Assistant Laurie Worthen. The prosecution is the result of a multi-year investigation by U.S. Department of Agriculture’s Office of Inspector General for Investigations.
Milton Man Sentenced to 160 Years on Child Pornography OffensesRead the Press Release
CONCORD, NEW HAMPSHIRE: John Allen Wright, 46, of Milton, appeared in United States District Court today and was sentenced to 160 years in prison, the maximum penalty allowed, after pleading guilty to five counts of sexual exploitation of children and one count of possession of child pornography, announced United States Attorney John P. Kacavas.
In February, 2011, a member of New Hampshire’s Internet Crimes Against Children (NH ICAC) Task Force initiated an undercover investigation to locate and identify individuals possessing and trading images of child pornography through file sharing networks. Information obtained as a result of the investigation led to the issuance of a search warrant for Wright’s residence in Milton, New Hampshire. In the course of the search, computers and peripherals were seized and forensic examination revealed several videos depicting Wright sexually assaulting minor children who were passengers aboard his school bus. The children, some of whom were completely non-verbal, suffered from a variety of disabilities.The initial search of Wright’s computer also revealed thousands of child sexual assault images that had been downloaded from the internet. A subsequent federal search warrant yielded more evidence linking Wright to the production of his own videos. The defendant has been in custody since his indictment in October, 2011. He entered guilty pleas to all counts in the indictment in September of last year.
United States Attorney Kacavas observed that “this case represents yet another example of our resolve to eradicate the threat to our children posed by predators like the Defendant. While a sentence of this duration is beyond man’s capacity to serve, justice for the young victims and a just punishment for this Defendant are beyond our capacity to achieve. Therefore, only the maximum possible punishment authorized by law is appropriate and like-minded individuals who seek to prey on our children be warned.”
United States Attorney Kacavas would like to thank the NH ICAC Task Force, the Federal Bureau of Investigation, the Rochester Police Department, the New London Police Department, the Strafford County Attorney’s Office, the Dover Police Department, and the Kittery (ME) Police Department, all of whom contributed valuable time and effort to this investigation and prosecution.
This case was prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Middlesex County, NJ, Man Sentenced to 18 Months in Prison for Attempted Escape from Hospital While in Federal CustodyRead the Press Release
TRENTON, N.J. – A Middlesex County, N.J., man who was in custody awaiting a hearing for allegedly violating conditions of his federal supervised release was sentenced today to 18 months in prison for attempting to flee from a Trenton hospital, U.S. Attorney Paul J. Fishman announced.
Joseph Vitale, 59, of Milltown, N.J., pleaded guilty on Nov. 8, 2012, before U.S. District Judge Freda L. Wolfson in Trenton federal court to an Information charging him with attempted escape.
According to documents filed in this case and statements made in court:On March 12, 2008, Vitale was convicted in U.S. District Court of bank fraud. He was sentenced to prison and released in April 2009, when he began serving five years of supervised release. In January 2012, Vitale was charged with violating several conditions of his supervised release and was taken into custody by the U.S. Marshal’s Service on Feb. 7, 2012. After making an appearance in court, Vitale complained of chest pains and was taken to St. Francis Medical Center in Trenton, where he was placed in the custody of a private security service that has a contract with the U.S. Marshal’s Service to provide security for federal prisoners being treated at the hospital. Vitale remained under 24-hour armed guard.
On Feb. 13, 2012, as one of the security guards was adjusting Vitale’s leg restraints, Vitale ran out of his room, evaded the two security guards, and ran down the hallway in an attempt to escape. The two security guards ran down the hallway after Vitale and yelled at him to stop. At one point, Vitale screamed, “I’m getting the (expletive) out of here.” The two security guards caught up to Vitale and while attempting to subdue him, one of the security guards struck his knees on the floor. Vitale continued to struggle with the security guards and made several attempts to grab one of their guns, but he was unable to remove it from its holster. With the assistance of at least one other individual, the security guards were able to subdue Vitale and handcuff him.
In addition to the prison term, Judge Wolfson sentenced Vitale to three years of supervised release.
U.S. Attorney Fishman credited deputy marshals of the U.S. Marshal’s Service, under the direction of U.S. Marshal Juan Mattos Jr., with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Organized Crime/Gangs Unit.13-089
Defense counsel: David Schafer Esq., Assistant Federal Public Defender, TrentonMiddlesex County, N.J., Man Charged with Production and Distribution of Child PornographyRead the Press Release
NEWARK, N.J. –A Middlesex County, N.J., man was arrested today for allegedly producing and distributing numerous images of child pornography, some taken in his own bedroom, U.S. Attorney Paul J. Fishman announced.
Kenneth Christensen, 44, of Edison, N. J., is charged by Complaint with one count of distribution of child pornography and one count of sexual exploitation of a child. He appeared before U. S. Magistrate Judge Patty Schwartz in Newark federal court this afternoon.
According to documents filed in this case and statements made in court:On May 14, 2012, Christensen, who works as a school crossing guard at a middle school in Metuchen, emailed from his personal computer 240 images depicting child pornography. Among them were three images of a boy who appeared to be about 5 years old. During a search conducted Feb. 21, 2013, at Christensen’s residence, the FBI discovered on his computer the three images from the emails, as well as several hundred more images depicting child pornography.
Since as early as 2002, Christensen has produced photographs of a young boy, who at the time was approximately 12 years old, engaged in sexually explicit conduct. In several of the photos discovered by law enforcement at Christensen’s residence, the boy was naked and his hands and feet were bound with handcuffs, duct tape, plastic ties, or cloth ties. Most of the photos were taken in Christensen’s bedroom.
On the distribution count, the maximum potential penalty is 20 years in prison, with a mandatory minimum sentence of five years in prison, and a fine of $250,000. On the exploitation charge, the maximum penalty Christensen faces is 30 years in prison, with a mandatory minimum sentence of 15 years in prison and a fine of $250,000.U.S. Attorney Fishman praised special agents with the FBI-Innocent Images Unit, under the direction of Special Agent James Tareco, and Acting Special Agent in Charge David Velasquez, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney David M. Eskew 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 defendant is presumed innocent unless and until proven guilty
13-090
Defense counsel: K. Anthony Thomas, Assistant Federal Public Defender, Newark
Christensen Complaint
Life Sentenced Ordered Marijuana Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A total of nine men have now been sentenced to federal prison as a result of the efforts of a multi-agency Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. The conspiracy ran from 2003 until their arrests in June 2012.
Jesus Marroquin, 50, and Flavio Tamez, 47, both of Rio Grande City; Adrian De la Garza, 41, of Sullivan City; Rene Salazar, 42, Jose Figueroa, 36, Edwardo Munoz, 36, Samuel Garcia, 52, and Onofre Lopez, 37, all of Falfurrias; and Alejandro Garza, 43, of Mission - each entered their guilty pleas before U.S. District Judge Nelva Gonzales Ramos on Sept. 6, 2012. Three others - Roberto Garza, 42, and Jesus Gregorio Lopez aka Goyo Lopez, 63, both of Mission; and Ramon Zamora, 52, of Rio Grande City, were convicted following a seven-day trial on Oct. 25, 2012.
Today, Judge Ramos ordered Roberto Garza, identified as a leader in the conspiracy, to serve the rest of his life in prison. Zamora, also considered a leader, was also sentenced today, to a term of 360 months in federal prison.
On Feb, 6, 2013, Lopez aka Goyo, was sentenced to 292 months, at which time his interest in ranch property was ordered forfeited to the United States. Last month, Garcia was sentenced to 120 Months, while De la Garza, Salazar, Figueroa, Munoz and Lopez received respective sentences of 50, 30, 15, eight and 84 months. The remaining three defendants - Garza, Tamez and Marroquin are set for sentencing next month.
The criminal organization specialized in avoiding the Falfurrias Border Patrol Checkpoint by using ranches adjacent to the checkpoint.
Evidence presented at trial by the government included 19 marijuana seizures directly linked to this organization, totaling more than three tons of marijuana seized by law enforcement. Further, evidence presented showed that an outdoor restroom (outhouse) was used by the organization to hide marijuana on one of the ranches. The outhouse has a secret underground compartment where they stored up to 1000 pounds of marijuana at a time. Evidence also included multiple vehicles used by this organization to circumvent the checkpoint, including trucks and multiple all-terrain vehicles.
Tamez has agreed to the criminal forfeiture of two pieces of real property located in Starr County - a house built by Tamez using drug proceeds and a business used by Tamez to conduct his drug business. Tamez also agreed to forfeit $230,000 in currency seized from a safe deposit box where Tamez hid drug proceeds. Marroquin has also agreed to criminally forfeit several pieces of jewelry and $6,000 in currency seized during his arrest.
The real properties involved in this conspiracy were either purchased with drug proceeds or used to facilitate the drug-trafficking activity. The ranch known as “Campo de Goyo” or the “Carolina Ranch,” was specifically used by this organization as a staging area to store large quantities of marijuana before proceeding through the ranches around the Falfurrias Border Patrol Checkpoint.
The OCDETF investigation leading to the criminal charges was conducted in Corpus Christi lead by Homeland Security Investigations, Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, Brooks County Sheriff’s Office, U.S. Border Patrol, Customs and Border Protection and the United States Marshals Service. This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Korean ‘Salon’ Operator Sentenced to Prison for Immigration Fraud ConspiraciesRead the Press Release
A Korean National who fraudulently gained U.S. Citizenship in a fake marriage, was sentenced today to two years in prison and three years of supervised release for Conspiracy to Commit Immigration Fraud, Conspiracy to Harbor, Transport, and Induce Illegal Aliens and Attempt to Commit Immigration Fraud, announced U.S. Attorney Jenny A. Durkan. MIYOUNG ROBERTS, 42, of Auburn, Washington, operated the Blue Moon bar in Federal Way. In her supervisory role, ROBERTS arranged for more than two dozen Korean women to travel to and around the U.S. to work at various clubs, and she counseled them on how to avoid detection by immigration authorities. At sentencing U.S. District Judge Ronald B. Leighton stated that ROBERTS’ conduct was “degrading” and “shameful.”
Between 2009 and 2012, ROBERTS worked first as an ‘Assistant Madam’ and later a ‘Madam,’ at the Blue Moon, hiring the women who served as “bar girls” and arranging their transportation from Korea to the U.S. ROBERTS also arranged apartments for the women to live in and supervised some of the women’s prostitution activities. ROBERTS herself entered into a fraudulent marriage to obtain a green card in the U.S. and attempted to arrange a fraudulent marriage for another co-conspirator. The groom she recruited was actually an agent working undercover on the case.
ROBERTS did not limit her activities to the areas of King and Pierce Counties, but was prominent in supplying women to similar Korean bar businesses across the country. “The defendant was involved in criminal activity for over three years, and even when not employed at the Blue Moon, she was actively recruiting and coordinating the travel of illegal Korean National women to work at various room salon [bar] businesses in New York, New Jersey, Texas, and Colorado. ….Through such recruitment, the defendant was able to secure a job for herself at any one of these room salons around the country, and earned a reputation for being a successful room salon madam. ….Through her work as a room salon madam, the defendant induced numerous Korean women to unlawfully enter and stay in the United States to work at various room salons in different cities,” prosecutors wrote in their sentencing memo.
The owner of the Blue Moon salon, Chang Kim, will be sentenced next month.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Washington State Liquor Control Board (WSLCB), the Internal Revenue Service Criminal Investigation (IRS-CI) and the FBI.
The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Matthew Thomas.
Justice Department Sues to Shut Down Tennessee Tax Return PreparersRead the Press Release
The United States has asked a federal court in Memphis, Tenn., to permanently bar husband and wife team Ahmed Grant and Lillian Madyun from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint, Grant and Madyun have operated multiple tax return preparation businesses in the Memphis area, including SuperFast Taxes, MG Services, and most recently, Taxes-R-Us.
The complaint alleges that Grant and Madyun have prepared returns that unlawfully overstate refunds and understate tax liability through a variety of schemes. Specifically, the government alleges that Grant and Madyun have prepared returns that unlawfully claim the Earned Income Tax Credit for their clients by reporting fictitious Schedule C business income. The government alleges that Grant and Madyun also prepared returns that claimed the American Opportunity Credit, to which their clients were not entitled, without their clients’ knowledge or consent. According to the complaint, ninety percent of the American Opportunity Credits claimed on their clients’ returns were false. The complaint further alleges that Grant and Madyun improperly ensured that their clients’ refunds were deposited into their own business’s bank account. The estimated harm to the government is over $2 million for the 2010 tax year alone, and may be as high as $5 million, according to the complaint.
This lawsuit is part of the Justice Department’s nationwide crackdown on tax scams, including the preparation of fraudulent federal tax returns. In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Ahmed Grant, et al.
Grant Madyun Complaint (PDF)Johnny Ray Rowland Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 22, 2013, before Chief U.S. District Judge Richard F. Cebull, JOHNNY RAY ROWLAND, a 38-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, appeared for sentencing. ROWLAND was sentenced to a term of:
- Prison: 46 months
- Special Assessment: $200
- Supervised Release: 3 years
ROWLAND was sentenced in connection with his guilty plea to assault with a deadly weapon and assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On June 21, 2012, the victim was giving a neighbor a ride home to Muddy Cluster, when he was confronted by the neighbor's husband, ROWLAND. The confrontation stemmed from a tussle over a bottle of alcohol. The neighbor tried to take a bottle of alcohol from the car. When the victim tried to stop her, she yelled and got the attention of ROWLAND. The victim was sitting in the passenger front seat when ROWLAND approached the car and punched the victim in the head with brass knuckles. ROWLAND continued to punch the victim in the head and face area with the brass knuckles, yelling threats and his intent to kill the victim. DNA extracted from blood recovered from the interior of the car matches the victim's DNA.
The victim ultimately got out of the car to defend himself. At this point, ROWLAND pulled out a knife and slashed the victim on his head and below his chin. The victim eventually fell to the ground and ROWLAND kicked the victim a few times while he was lying on the ground.
The victim sought medical treatment for his injuries that meet the definition of serious bodily injury.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ROWLAND will likely serve all of the time imposed by the court. In the federal system, ROWLAND does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 21, 2013, before U.S. Magistrate Judge R. Keith Strong, the following individuals were arraigned:
KE XU, a 25-year-old resident of San Gabriel, California, appeared on charges of conspiracy to commit fraud, wire fraud, access device fraud, and aggravated identity theft. He is currently detained. If convicted of these charges, XU faces possible penalties of twenty years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Bryan Whittaker is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
LIANG WANG, a 30-year-old resident of Monterey, California, appeared on charges of conspiracy to commit fraud, wire fraud, and access device fraud, and aggravated identity theft. He is currently detained. If convicted of these charges, WANG faces possible penalties of twenty years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Bryan Whittaker is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
RODNEY LANE COOPER, a 50-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. He is currently detained. If convicted of these charges, COOPER faces possible penalties of a mandatory minimum of 5 years in prison up to 40 years in prison, a $2,000,000 fine, and 4 years supervised release. Assistant U.S. Attorney Jessica Betley is the prosecutor for the United States. The investigation was conducted by the Tri-Agency Drug Task Force.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 21, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individuals were arraigned:
JAMES TYRONE DAVIS, a 28-year-old resident of Missoula, appeared on a charge of conspiracy to possess with intent to distribute methamphetamine. He is currently released on special conditions. If convicted of this charge, DAVIS faces possible penalties of a minimum mandatory 10 years in prison up to life in prison, a $10,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Tara J. Elliott is the prosecutor for the United States. The investigation was conducted by a cooperative effort between the Drug Enforcement Administration and Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force.
The defendant pled not guilty to the charge.
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.
Illegal Marketer of Medicare Information Admits Role<br /> in Detroit-area Home Health Care Fraud SchemeRead the Press Release
A health care worker who sold Medicare beneficiary information to Detroit-area home health agency operators as part of a $24.7 million home health care fraud conspiracy pleaded guilty today for his role in the scheme, which sought to profit by billing for home healthcare services that were medically unnecessary and not provided.
The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Clarence Cooper, 54, of Detroit, pleaded guilty before U.S. District Judge Victoria A. Roberts in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
According to court documents, Cooper and others conspired to defraud Medicare through purported home health care companies operating in the Detroit area, including now-defunct First Choice Home Health Care Services Inc. and Reliance Home Care, LLC. Cooper admitted that he sold Medicare information he obtained from Detroit-area Medicare beneficiaries to other conspirators at these and other health care companies, knowing that it was to be used to submit claims to Medicare for home health services that were not medically necessary and/or not provided. According to court documents, from 2008 through May 2012, Cooper sold co-conspirators the Medicare information of hundreds of Medicare beneficiaries, at $200 to $300 per beneficiary, and this Medicare information was used at these companies to bill Medicare for nearly $1 million in home health care services.
Court documents show that the larger scheme in which Cooper participated resulted in more than $24.7 million in claims to Medicare for the cost of home health services, psychotherapy and other medical services.
Cooper faces a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is currently scheduled for July 23, 2013.
This case is being prosecuted by Trial Attorney William G. Kanellis and Assistant Chief Gejaa Gobena of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Harrisburg Ambulance Company Owner Pleads Guilty to Submitting False Statement to MedicareRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the owner of a Harrisburg-based ambulance company has pleaded guilty to a False Statement charge related to Medicare fraud.
Serge Sivchuk, age 27, the owner of Advantage Medical Transport, Inc, headquartered at 733 Fire House Lane, Harrisburg, pleaded guilty before U.S. District Court Judge Christopher C. Conner today to one count of False Statements in Health Care Matters. The charge is punishable by up to five years imprisonment and a $1,000,000 fine.
According to U.S. Attorney Peter J. Smith, Sivchuk was indicted in January 2011 on multiple False Statement and Medicare Fraud charges. The Indictment alleged that between January 2009 and June 2011 Sivchuk perpetrated a scheme to defraud Medicare by submitting hundreds of claims for the nonemergency transport of Medicare beneficiaries to and from dialysis treatment centers. The Indictment alleged the claims were fraudulent because the patients were ambulatory and the ambulance transports were not medically necessary.
The Indictment focused on an August 2010 audit conducted by Medicare and a June 2, 2011 search of Advantage’s business premises by federal law enforcement officers. In response to the audit Sivchuk provided Medicare with dozens of ambulance Trip Sheets, which are prepared by Emergency Medical Technicians (EMTs) at the time of each ambulance transport. The Trip Sheets contain a narrative section that describes the patient’s physical condition and ability to ambulate. The Trip Sheets serve as the primary support document for each ambulance transport claim for which Medicare was billed.
The June 2, 2011 search by the FBI and investigators from the Health and Human Services (HHS) Inspector General’s Office revealed that Sivchuk did not submit the original trip sheets to the auditors but instead submitted copies of other trip sheets that had been re-written and forged to conceal the fact the beneficiaries were able to walk and stand. During his court appearance before Judge Conner today, Sivchuk admitted he directed a subordinate to re-write and forge the signatures of two EMTs on a Trip Sheet pertaining to the ambulance transport of a dialysis treatment beneficiary on August 19, 2010.
Medicare paid Advantage approximately $166 for each leg of a transport to and from a dialysis treatment center, plus $5.49 per mile. Many dialysis patients underwent 3 treatments per week. Thus, one week’s transport of just one dialysis patient would result in Advantage being paid by Medicare more than $1,000.Under the terms of the plea agreement, Judge Conner will determine the overall loss to Medicare. During the guilty plea proceeding Assistant U.S. Attorney Kim Douglas Daniel told the Court that the government intends to show during the loss hearing that the total loss to Medicare as the result of the fraud scheme was approximately $740,000. Daniel also noted that at the time the investigators executed the June 2, 2011 search warrant, the U.S. Attorney’s Office filed a civil action in federal court that froze more than $936,000 in bank accounts controlled by Advantage and Sivchuk.
The case is part of a priority program within the U.S. Department of Justice and the U.S. Attorney’s Office focusing on Health Care Fraud. Anyone with information concerning suspected health care fraud should contact the FBI at 717-232-8686.
Glen Dale Resident Sentenced on Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
February 22, 20132
FOR IMMEDIATE RELEASEWHEELING, WEST VIRGINIA - A 26-year old Glen Dale, West Virginia, resident was sentenced on February 21, 2013, in United States District Court in Wheeling by Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that: JOSEPH “JOEY” MCDONALD was sentenced to 27 months imprisonment to be followed by six years of supervised release. MCDONALD entered a plea of guilty on January 3, 2013, “Distribution of Oxycodone within 1,000 Feet of the Glen Dale Park” on May 21, 2012. MCDONALD 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 John C. Parr and investigated by the Marshall County Sheriff’s Department, the Glen Dale Police Department and the Drug Enforcement Administration.
Four Individuals Indicted for Drug TraffickingRead the Press Release
SAN JUAN, P.R. – Yesterday evening, February 21, 2013, a Federal grand jury returned a two-count indictment charging Luis Francisco Alicea-Colón, Pedro Carlos Calderón-Andino, Astrid Martínez-Valentin, and Karen Coralis Torres-Ilarraza with conspiracy to possess with the intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto. The investigation was conducted by the FBI, ATF and the Carolina Drug Unit of the Puerto Rico Police Department (PRPD).
On February 20, 2013, members of the PRPD Carolina Drug Unit executed a state search warrant in a residence located in sector Roberto Resto, in Trujillo Alto, Puerto Rico. The defendants were present at the location when agents were conducting the search. The following items were found during the search: an AK-47, ammunitions, a bullet proof vest, a money counting machine, and three bags with marijuana.
The PRPD officers contacted the Federal agents, pursuant to the provisions of the interagency “Illegal Firearms and Violent Crimes Initiative”. All four subjects were taken into custody by the FBI and later charged. If convicted, the individuals face up to a maximum of 20 years imprisonment for the drug charges, and from 5 years to life in prison for the firearms violation.
“These arrests should send a message to those involved in drug trafficking. We will continue working with our state and local partners to identify, arrest, and prosecute those responsible for selling narcotics in Puerto Rico, and who contribute to the violence and criminal activity in the island.” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“The FBI's message is clear and unequivocal, we will work together with our federal, state and local law enforcement partners to assign all necessary resources to identify, locate, and arrest violent crimes offenders. They will face our justice system. They will be prosecuted to the fullest extent of the law,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.The case is being prosecuted by Assistant United States Attorney Alberto López-Rocafort and Special Assistant United States Attorney Normary Figueroa-Rijo. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Former Owner of Lansing-area Chain of Coffee Stores Sentenced to Federal PrisonRead the Press Release
David Lewis Many Defrauded Investors of Over One Million DollarsGRAND RAPIDS, MICHIGAN – U.S. District Judge Robert Holmes Bell sentenced David Lewis Many, 42, formerly of Lansing, Michigan, to 63 months in federal prison for his fraud scheme that bilked investors in his chain of coffee stores out of over one million dollars. The court further ordered Many to make restitution to his victims in the amount of $1,515,896.00.
“Our economy depends upon investors who are willing to assume legitimate business risks after receiving honest representations. Individuals like Mr. Many, who misrepresent the truth so that they can personally gain from the hard-earned money of honest individuals, will be prosecuted to the fullest extent of the law,” said U.S. Attorney Patrick A. Miles, Jr.
Many’s scheme began in 2006 when he started his first CornerStone Coffee Store with money from relatives, promising them employment that he never delivered. Many then attracted investors in additional stores by misrepresenting his personal net worth, claiming he gained special retail computer software skills while working as an engineer for Microsoft, representing that his business was profitable, and telling investors that he would not draw a salary from the company. In reality, the stores were losing money and Many was drawing significant funds from the company to spend on an extravagant lifestyle that included luxury cars, an executive-style home, and entertainment at local gentlemen’s clubs.
By 2007, Many began selling franchise locations in an effort to satisfy obligations to prior investors and to try to keep his stores afloat. Many represented that a franchisee’s investment would be placed into an escrow account and used solely for the costs of constructing the franchise location. In reality, Many defrauded the franchisees by obtaining hundreds of thousands of dollars up front, and then using the money for his personal benefit and to operate his existing corporate locations. The last franchisee invested over $280,000.00 for his store location but received nothing but a building with stud-walls and a dirt floor. Many then fled to Texas.
The Lansing office of the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Ronald M. Stella conducted the prosecution.
END
Former Member of Board of Directors Charged in Scheme Contributing to Closure of Local Federal Credit UnionRead the Press Release
PHILADELPHIA – Miqueas Santana, 43, was charged today by information with embezzlement and money laundering in a case that contributed to the closure of the Borinquen Federal Credit Union (BFCU), announced United States Attorney Zane David Memeger. According to the information, Between July 2009 and June 2011, Santana, with the permission and approval of the former manager of BFCU, withdrew money from his BFCU bank accounts without depositing sufficient money into the accounts to cover the withdrawals, resulting in deficit account balances in his five personal and business savings and checking accounts of more than $500,000. Santana used this money to purchase multiple pieces of real estate throughout Philadelphia.
BFCU was a federal credit union in Philadelphia. In June 2011, the National Credit Union Association took over the operation of the BFCU, but within two weeks, closed the credit union and liquidated its assets. Its former manager, Ignacio Morales, has previously been convicted of multiple counts relating to embezzlement from BFCU and conspiracy to defraud the government regarding the cashing of fraudulent tax refund checks. Morales is currently serving a 7 ½ year sentence for his crimes.
If convicted of all charges,Santanafaces a maximum sentence of 40 years imprisonment, 5 years supervised release, a $1,250,000 fine (or a $1,000,000 fine plus twice the value of the criminally derived property) and a $200 special assessment.
This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Arlene D. Fisk.
Click here to view the indictment
An Indictment or an Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Longview Club Owner Sentenced to Prison for Meth DealingRead the Press Release
The former owner of a Longview nightclub and long-stay hotel, was sentenced today in U.S. District Court in Tacoma to five years in prison and five years of supervised release, announced U.S. Attorney Jenny A. Durkan. CHRISTOPHER LONNIE REID, 52, pleaded guilty in October 2012 to distribution of methamphetamine. REID was charged federally in 2011 following an undercover investigation by the Drug Enforcement Administration (DEA) and the Cowlitz-Wahkiakum Narcotics Task Force. At sentencing U.S. District Judge Ronald B. Leighton said, “this crime (methamphetamine distribution) destroys the fabric of a community brick by brick.”
According to records filed in the case on October 22, 2010 and again on October 27, 2010 REID distributed methamphetamine to a person working with law enforcement.
In their sentencing memo, prosecutors noted that REID was distributing drugs at the same time he was making money by renting rooms to drug addicts. “Reid has owned a residential hotel-type building in Longview for the past several years. Reid’s business, the Smallwood Hotel, rented small rooms. The hotel had the reputation in the community of housing drug addicts,… Given Reid’s drug dealing, the fact that he ran a hotel for drug addicts is an aggravating factor that this Court should consider when sentencing Reid,” prosecutors wrote in their sentencing memo.
The case was investigated by the DEA and the Cowlitz-Wahkiakum Narcotics Task Force. The case was prosecuted by Assistant United States Attorney Brian Werner.
Former Head of Youth-Oriented Non-Profit Pleads Guilty to Tax Charge Involving $110,000 Grant That Funded an Inaugural BallPlea Is Part of the Investigation That Led to Conviction of Former District of Columbia Council Member Harry L. Thomas, Jr.Read the Press Release
WASHINGTON – Millicent D. West, the former director and chief executive officer of a non-profit organization that promotes youth opportunities, pled guilty today to a criminal tax charge for her role in channeling $110,000 in youth grant funds used to pay for an inaugural ball.
The guilty plea, which took place in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation.
West, 43, pled guilty to a charge of attempting to interfere with the administration of the Internal Revenue Service laws. The Honorable John D. Bates scheduled sentencing for May 24, 2013. The charge carries a maximum statutory sentence of three years in prison and a fine of up to $250,000. Under federal sentencing guidelines, the parties have agreed that the likely range is six months to 12 months of incarceration and a fine of $2,000 to $20,000.
West is the fifth person to plead guilty to charges in an ongoing investigation into activities involving former District of Columbia Council Member Harry L. Thomas, Jr. Thomas pled guilty last year to charges stemming from a scheme in which he used more than $350,000 in taxpayers’ money that was earmarked for the arts, youth recreation, and summer programs for his own personal benefit, including to pay for vehicles, clothing and trips. He resigned as a condition of his plea agreement and is now serving a 38-month prison sentence.
The others who have pled guilty include James Garvin and Marshall D. Banks, leaders of one of the non-profits used in the scheme. Both men, from the Langston in the 21st Century Foundation, pled guilty to misprision of a felony, a charge holding them accountable for failing to report and concealing the misappropriation of $392,000 in government grants. Additionally, Danita C. Doleman, the president of Youth Technology Institute, pled guilty to filing a false return in connection with her assistance in funneling public money to pay for the 51st State Inaugural Ball. Garvin, Banks and Doleman are awaiting sentencing.
According to the government’s evidence, West’s conduct covered up the actual beneficiaries of the youth grant funds and later led to the filing of false and misleading tax forms.
“Millicent West was by all accounts a dedicated public servant who was truly committed to the mission of serving young people in the District of Columbia,” said U.S. Attorney Machen. “Unfortunately, as we have seen too many times, she agreed to break the law to appease a crooked public official who was intent on carrying out a criminal scheme. As a result, she allowed more than $100,000 intended to keep D.C. kids off drugs to be used to throw a party for adults. This prosecution underscores the importance of standing up to corruption rather than becoming complicit in it. We hope that this guilty plea allows Ms. West to put this mistake behind her and return to doing good works. We also hope that it reminds other public servants and government employees not to jeopardize their careers by facilitating politicians’ wrongdoing.”
“By concealing and failing to report the illegal use of public funds, Ms. West allowed money to be diverted away from programs that supported the youth of our city,” said Assistant Director in Charge Parlave. “Her guilty plea today demonstrates that those who commit corruption, as well as those who allow it, will be held accountable for their actions.”
“Federal grant funds entrusted to a non-profit and subsequently diverted to an ineligible entity is fraudulent,” said Special Agent in Charge Kelly. “Ms. West’s attempts to defraud the government, interfere with the administration of Internal Revenue laws and disguise the true nature of funds earmarked for a tax exempt entity failed. Today’s plea confirms the commitment of IRS-Criminal Investigation, along with its law enforcement partners, to the American public that we are poised and prepared to investigate any financial scheme to defraud the American taxpayer.”
According to a statement of offense, signed by the defendant as well as the government, from in or about July 2008 to in or about October 2009, West was the director and chief executive officer of a non-profit public-private partnership that provided resources and developed programs to benefit children and youth in the District of Columbia. The partnership was primarily funded by the District of Columbia government through funds designated by the Mayor and Council for particular youth-related purposes. The partnership provided grants to organizations for programs tailored for children and youth.
Thomas, who took office in January 2007 as the Ward 5 representative, served during his first term as Chair of the Council’s Committee on Libraries, Parks, Recreation and Planning, which involved oversight responsibility for the D.C. Department of Parks and Recreation. In that role, he worked with the non-profit public-private partnership. Also, an individual identified as “Staff Member 1” worked on the Thomas’s staff and served as Director of the Committee.
Thomas was closely involved in the planning of the 51st State Inaugural Ball, held on Jan. 20, 2009 in the Wilson Building. It was a formal, black-tie event open to members of the public who had purchased tickets. But ticket sales and other contributions did not generate nearly enough money to cover costs of the event.
Several days after the event, West was contacted for the first time about the 51st State Inaugural Ball and told that organizers had not collected enough funds to pay for it. According to West, Thomas told her that youth had been able to attend the event to honor the historic inauguration of President Obama. West believed that the event served the partnership’s target population.
On Jan. 29, 2009, “Staff Member 1” submitted budget paperwork to the public-private partnership seeking a grant of $110,000 for a political organization that would fund a “youth/young adult inauguration celebration.” “Staff Member 1” also identified a potential funding source: the Drug Prevention/Children at Risk Fund, a separate fund established to raise money for programs that prevented drug and alcohol consumption and supported youth who had direct or indirect contact with drugs. The D.C. Council agreed in 2008 to transfer the administration of this fund to the public-private partnership, but had not yet done so.
West told “Staff Member 1” that the public-private partnership would move to fund the grant request for the Inaugural Ball once it got the money from the drug prevention fund. The plan hit an obstacle, however, when an employee of the public-private partnership expressed concern about the legality of granting money to a political organization.
Thomas subsequently directed “Staff Member 1” to change the grant recipient to the Youth Technology Institute, another non-profit, and new paperwork was submitted. On Feb. 5, 2009, West directed that the check be issued, with the money coming from the drug prevention fund.
In truth, after the grant was issued, the Youth Technology Institute immediately forwarded nearly the entire amount to the political organization, which paid expenses from the 51st State Inaugural Ball. West learned that this took place at a later date.
At all times, West viewed the ball as an event that was organized and sponsored by Council member Thomas. She failed to consider which individuals or organizations were responsible for the ball’s debts. Additionally, she caused the records maintained by the public-private partnership to inaccurately and falsely show that the $110,000 grant was given to an organization that was a tax-exempt entity. This resulted in a failure to report to the IRS that the ultimate beneficiaries of the grant funds included ineligible recipients.
West resigned from the partnership in October 2009 to become the District of Columbia’s director of homeland security and emergency management. The following year, the public-private partnership filed its tax forms with the Internal Revenue Service, listing the $110,000 grant as going to Youth Tech for “funding to provide programming for children and youth,” instead of providing the accurate accounting.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge Parlave and Special Agent in Charge Kelly praised the work of the investigators from the FBI’s Washington Field Office and IRS-CI who worked on the case. They also acknowledged the efforts of those who worked on the case form the U.S. Attorney’s Office, including Criminal Investigators Matthew Kutz, Mark Crawford and Melissa Matthews; Paralegal Specialists Tasha Harris, Diane Hayes, Shanna Hays, Lenisse Edloe and Monica Johnson; Legal Assistant Krishawn Graham, and former Assistant U.S. Attorney Bridget Fitzpatrick. Finally, they commended the work of Assistant U.S. Attorneys Jonathan W. Haray, David Johnson, and James E. Smith, who are prosecuting the matter.
13-063Former Ft. Campbell Soldier Sentenced to 20 Years in Prison for Violating Child Pornography Laws While Residing on Military BasesRead the Press Release
LOUISVILLE, Ky. – A former Fort Campbell, Kentucky, soldier was sentenced to 20 years in federal prison, followed by a lifetime of supervised release by Senior Judge Thomas B. Russell today, for knowingly possessing, mailing, transporting and shipping child pornography while residing within the Fort Campbell Military Reservation and during active duty in Iraq, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Timothy Lee Hansen, age 25, pleaded guilty to a four-count federal Indictment brought by a federal grand jury on August 17, 2011. Prior to his indictment, Hansen had been charged in a Criminal Complaint on July 19, 2011.
According to court records, between February 2010, and February 15, 2011, Hansen, also known as “Hydes420,” used a “peer-to-peer” internet file sharing software to download, store and trade digital images of child pornography. A subpoena issued by the Federal Bureau of Investigation (FBI), tracked the IP address of the computer used to distribute child pornography to a computer belonging to Hansen and located in a soldier’s barracks at Fort Campbell. The information was turned over to the United States Army, Criminal Investigation Division (CID) at Fort Campbell on February 14, 2011.
Hansen was identified as an active-duty soldier assigned to the 5th Special Forces Group. According to the Complaint, Hansen told investigators that he possessed approximately 100 megabytes of child pornography on his personal computers at Fort Campbell.
This case was prosecuted by Assistant United States Attorney Jo E. Lawless and was investigated by the FBI and United States Army CID.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Conroe Resident Gets 30 Years for Conspiring to Produce Child PornographyRead the Press Release
HOUSTON – Matthew David Eyerly, 36, has been handed a 30-year term of federal imprisonment following his conviction of conspiracy to produce child pornography and possession of child pornography, United States Attorney Kenneth Magidson announced today. Eyerly pleaded guilty May 16, 2012.
Today, U.S. District Judge Keith P. Ellison handed Eyerly the 360-month term which will be followed by a term of supervised release to last the rest of his life. Eyerly was further ordered to pay restitution to two known victims totaling $6,000 and will also be ordered to register as a sex offender.
The investigation into Eyerly began following several downloads of child pornography over the Internet by FBI officers in Tulsa, Okla.; Buffalo, N.Y.; and Detroit, Mich., which were traced to a computer used by Eyerly. On Nov. 9, 2006, agents located Eyerly at an apartment on Wilson road in Conroe along with an adult female and minor child. When agents told Eyerly they were there regarding a file server, Eyerly admitted to having operated one but said he gave it up, in part, due to his new relationship with the female. At that time, Eyerly consented to a search of his computer.
According to documents in support of his guilty plea, when asked about the minor child in the apartment, Eyerly admitted there would be pictures of the child on the computer. Eyerly admitted to digital and oral contact with the genitals of the child and having taken pictures of these acts. He said this took place at an earlier visit in July 2006 in Conroe when the woman left him alone with the child in a motel room. Eyerly also claimed the woman sent him nude photos of the child over the Internet.
A forensic exam was conducted which revealed images of the child on his computer as well as additional images of child pornography downloaded from the Internet not involving the minor child.
Eyerly will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant United States Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Bank Teller Pleads Guilty in Scheme That Used Stolen Identifying Information to Seek More Than $20 Million in Fraudulent Tax Refunds-Identities Stolen from Nursing Home Patients, Others-Read the Press Release
WASHINGTON – Aisha Mayo, 24, a former bank teller from Greenbelt, Md., pled guilty today to a federal conspiracy charge stemming from her role in an identity theft and tax fraud scheme involving the filing of returns seeking more than $20 million in fraudulent refunds.
The plea, in the U.S. District Court for the District of Columbia, comes one week after another defendant, Kevin Brown, 42, of Capitol Heights, Md., pled guilty to federal charges stemming from his role as a key organizer and leader of the scheme. The case represents one of the largest prosecutions to date involving the use of stolen identifying information.
Today’s guilty plea was announced by U.S. Attorney Ronald C. Machen Jr.; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Eric M. Thorson, Inspector General, U.S. Department of Treasury; and David Beach, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Mayo pled guilty before the Honorable Magistrate Judge Alan Kay to a charge of conspiracy to defraud the United States with respect to claims. She will be sentenced at a later date by the Honorable Ellen S. Huvelle. The charge carries a statutory maximum of 10 years in prison, a fine of up to $250,000, restitution, and other penalties. Under federal sentencing guidelines, Mayo most likely faces 24 to 30 months in prison and a fine of up to $50,000.
According to evidence presented to the Court by Assistant U.S. Attorney Sherri L. Schornstein, Mayo was among participants in a massive identity theft and false tax refund scheme involving an extensive network of more than 100 people, many of whom were receiving public assistance. It also involves bank tellers and postal carriers. From 2006 to date, they allegedly caused the filing of at least 7,000 fraudulent federal income tax returns seeking more than $20 million in refunds. The case remains under investigation.
According to the government’s evidence in this case, the refunds were sought in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. At one nursing home alone, at least 14 identities were stolen, including five from people who were deceased at the time tax returns were filed in their names. Some people sold their identifying information. Some victims unwittingly turned over their identifying information after being told that they were due an income tax refund or were entitled to some “Obama Stimulus Money.”
The government’s evidence showed that participants in the schemes had various roles: some stole the identifying information; some permitted their personal identifying information to be used; some created and mailed the fraudulent federal tax returns; some permitted their addresses to be used for receipt of the refund checks. Some helped cash the checks; some provided bank accounts for negotiation of checks, and some forged endorsements of identity theft victims on the refund checks.
The false returns typically claimed that the “taxpayer” operated a sole proprietorship, such as a barber, claimed phony dependents, and then reported income that was sufficient to generate tax refunds based on the Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes.
Mayo was employed as a bank teller in Largo, Md. According to the government’s evidence, from on or about Oct. 4, 2011, until on or about April 3, 2012, she received roughly 62 U.S. Treasury checks from another participant in the conspiracy, totaling approximately $226,558; these were fraudulent income tax refunds generated through the scheme.
Mayo deposited these checks into 59 different bank accounts at her bank, without the account holders’ knowledge. When the checks cleared, she obtained the proceeds, kept about $200 to $300 per check, and gave the balance of the funds to the other person in the scheme.
In announcing the guilty plea, U.S. Attorney Machen, Special Agent in Charge Kelly, Inspector in Charge Barksdale, Inspector General Thorson, and Special Agent in Charge Beach commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo, Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues, and Assistant U.S. Attorney Sherri L. Schornstein, who is prosecuting the case.
13-064Florida Man Sentenced in Manhattan Federal Court to 74 Months in Prison for Engaging in A Fraudulent Investment SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CLIFFE R. BODDEN was sentenced today in Manhattan federal court to 74 months in prison for participating in an investment scheme that defrauded foreign investors out of nearly $1 million. As part of the scheme, investors were lured with false promises that their funds would be safely invested in the U.S. financial markets through a legitimate broker-dealer. Instead, the money was misappropriated, used to pay certain expenses, and transferred to, among other places, entities related to BODDEN. He pled guilty in September 2012 to one count of conspiracy to commit wire fraud and one count of wire fraud and was sentenced by U.S. District Judge Katherine B. Forrest.
Manhattan United States Attorney Preet Bharara said: “With today’s sentence, Cliffe Bodden now knows there is a price to be paid for lying to investors, no matter where the victims live. Our ongoing efforts to prosecute the perpetrators of investment fraud are not limited by geographic boundaries.”
According to the court filings and statements made in court:
BODDEN held himself out as a Managing Director of Lempert Capital Management, Ltd., a corporation purportedly incorporated in the Cayman Islands. Starting in approximately 2005, foreign investors were lured into sending nearly $1 million to Lempert Capital’s purported management company Lempert Brothers under the pretense that those funds would be invested in the U.S. financial markets by Lempert Brothers, which was a registered broker-dealer. To induce investors into wiring funds, among other false promises, investors were told that the funds would be safeguarded, and that if the value of the funds dropped more than 20%, the money would be frozen and all remaining funds available for return to investors. In fact, the nearly $1 million of investor funds were misappropriated and diverted to, among other things, entities affiliated with BODDEN.
To keep the scheme going, BODDEN sent fraudulent monthly account statements to the investors. These statements falsely reflected that the investors’ funds were invested and earning substantial income. When investors attempted to withdraw funds from their accounts, BODDEN made additional false and fraudulent representations as to why the funds could not be returned when requested. For example, BODDEN falsely told investors that their money was illiquid because it had been invested in various companies that had not yet gone public.
In addition to the prison sentence of 37 months on each count to run consecutive for a total term of imprisonment of 74 months, Judge Forrest sentenced BODDEN, 49, of Tampa, Florida to two years of supervised release to run consecutively and ordered him to pay a fine of $25,000 and a special assessment of $200. Judge Forrest ordered restitution and forfeiture in the amount of $946,509, which represents the amount of the crime proceeds.
The charges against BODDEN’s co-defendant S. George Milter, 34, of New York, New York, are pending. These charges and the allegations against Milter are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecution.
Felon in Possession Handed 15-Year Prison TermRead the Press Release
MCALLEN, Texas – A convicted felon in possession of a firearm and ammunition has been handed a significant federal term of imprisonment, United States Attorney Kenneth Magidson announced today. Jose Antelmo Mendez, 49, of Mission, pleaded guilty Feb. 6, 2012.
Today, Chief U.S. District Judge Ricardo H. Hinojosa sentenced Mendez to a total of 180 months of imprisonment to be followed by a two-year-term of supervised release. His sentence was subject to enhancements for being an armed career criminal as he had been convicted on two previous occasions of delivering of a controlled substance.
On July 5, 2010, Hidalgo County Sheriff’s Deputies responded to a call for assistance in relation to an allegation of domestic abuse. When deputies responded to the Mendez residence, they discovered him in possession of a 12-gauge shotgun and 10 shotgun shells. Mendez was taken into custody and subsequently found to be a convicted felon.
Previously released on bond, Mendez was taken into custody following a violation of his bond conditions, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hidalgo County Sherriff’s Department. The case was prosecuted by Assistant United States Attorney (AUSA) Steven Schammel. AUSA Juan Alanis handled the sentencing hearing today.
Felisha Monet Mitchell Indicted for Threatening President ObamaRead the Press Release
FELISHA MONET MITCHELL, age 32, a resident of Palm Springs, California, was charged in a one-count indictment today for threatening the President of the United States in violation of Title 18, United States Code, Sections 871(a) announced U.S. Attorney Dana Boente.
According to the Indictment and previously filed court documents, from January 21, 2013 through January 24, 2013, MITCHELL posted numerous statements on her public Twitter feed and Facebook page threatening President Obama and the First Family. In an interview with United States Secret Service Agents, MITCHELL admitted to posting the online threats using her cell phone while in New Orleans.
If convicted, MITCHELL faces a maximum penalty of five (5) years imprisonment, a $250,000 fine, and a three (3) year term of supervised release.
U.S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by Special Agents of the United States Secret Service and prosecution is being handled by Assistant United States Attorney Gregory M. Kennedy.
(Download Indictment )
East St. Louis Tow Truck Operator Sentenced for Theft of Government Property, Making False Statements to the F.B.I. and Making False Declarations Before A Federal Grand JuryRead the Press Release
Eddie Johnson, Jr., 47, of Cahokia, IL, was sentenced to fifteen months in prison the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. In addition to the prison sentence, Johnson was ordered to serve three years supervised release and was ordered to repay to the F.B.I. $6,194.66 in investigative costs.
Johnson was charged in a three-count Indictment that charged theft or conversion of government property; making a false statement to a federal law enforcement officer; and making a false declaration before a federal grand jury.
The prosecution is the result of an investigation by the Federal Bureau of Investigation who was investigating allegations of potential corruption in the City of East St. Louis. The F.B.I. conducted an integrity test wherein federal agents placed diamond earrings, a purse, a debit card and other valuables in a Mercedes automobile which appeared to be an abandoned stolen vehicle. Audio and video surveillance was in place around the vehicle. On February 12, 2011, Johnson responded to the location following a call from the East St. Louis Police Department to a towing company. Johnson stole diamond earrings and other valuables from the vehicle which was set up as a stolen vehicle crime scene. Johnson subsequently made false statements to the F.B.I. and to a federal grand jury in the investigation of the theft.
The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Norman Smith.
Dublin Doctor Convicted of Drug Distribution ChargesRead the Press Release
ROANOKE, VIRGINIA -- A former medical doctor from Dublin, Va., who was indicted in May 2012 on charges related to her illegal distribution of controlled substances, was convicted late Thursday evening on 172 of the 173 counts she was facing.
In May, a Federal Grand Jury charged Linda Sue Cheek, 63, of Dublin, Va., with 86 counts of distributing scheduled controlled substances without holding a valid certificate of DEA Registration, 81 counts of using a DEA registration number issued to another person, five counts of using a DEA registration number which has been revoked or suspended and one count of maintaining a drug-involved premise.
Following an 8-day trial in the United States District Court in Roanoke, a jury convicted the former doctor on all but one of the counts leveled against her. Evidence at trial determined that Cheek wrote prescriptions for controlled substances on her revoked DEA number and wrote prescriptions on a DEA number that belonged to another person.
“Despite losing her license to prescribe medication, Dr. Cheek repeatedly provided pain medication to vulnerable patients,” United States Attorney Timothy J. Heaphy said today. “Her motive was greed, and she collected thousands of dollars over the course of her illegal scheme. The abuse of prescription drugs in Southwest Virginia is a public health crisis, one that is tearing families apart. We will continue to investigate and prosecute health care providers like Linda Cheek who circumvent the rules and illegally dispense these highly addictive substances.”
"Dr. Cheek broke the law over and over again by illegally prescribing prescription drugs and exploiting vulnerable patients," said Virginia Attorney General Ken Cuccinelli. "We will not tolerate criminal behavior as a 'cost of doing business' or for purposes of greed. We will continue our fight to protect Virginia's most vulnerable citizens."
The investigation of the case was conducted by the Drug Enforcement Administration, the Department of Health and Human Services, the Virginia State Police and the Office of the Attorney General for the Commonwealth of Virginia, Medicaid Fraud Control Unit. Assistant United States Attorney Jennie L.M. Waering and Virginia Assistant Attorney General and Special Assistant United States Attorney Vaso T. Doubles are prosecuting the case for the United States.District Man Sentenced to Six Months in Jail for Brutal Abuse of Kittens-Defendant Pled Guilty to Animal Cruelty Charges -Read the Press Release
WASHINGTON - Eric Gaskin, 39, of Washington, D.C., was sentenced today to 360 days in jail, with all but 180 days suspended, on two counts of animal cruelty stemming from the abuse of two kittens, announced U.S. Attorney Ronald C. Machen Jr.
Gaskin pled guilty to the charges in November 2012 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Patricia A. Broderick. Following the 180 days of jail time, Gaskin will be placed on three years of probation. Judge Broderick ordered that, during that time, Gaskin must undergo mental health treatment, take parenting classes, not have any pets, and perform 40 hours of community service.
According to the government’s evidence, on May 4, 2012, Gaskin purchased two kittens at a corner store and brought them to his sister’s house, where he was staying at the time. Within the next day or two, the defendant, who is not a veterinarian or otherwise trained in animal medical care, attempted to de-claw the kittens or possibly even to amputate their toes using some sort of clippers and without any anesthesia.
Following this brutal home amputation, the kittens sat for days, unable to walk, as the open wounds in their paws festered and caked over with kitty litter and fecal matter. Gaskin’s sister noticed how injured the kittens were and brought them to the attention of the Washington Humane Society. However, the injuries were so severe that the kittens had to be euthanized.
In a report summarizing various medical examinations of the kittens, Dr. Matthew Braun, a veterinarian, wrote: “The degree of amputation (complete or partial) of the distal phalanges is more strongly suggestive of an intent to amputate the digit rather than clip the claws.”
Dr. Braun further stated that, this would have been an extremely painful experience for the kittens, and they would have struggled to get away. Indeed, as the kittens struggled against the defendant’s grip, most of the bones in each foot and leg were crushed, causing excruciating pain and profuse bleeding.
Dr. Megan McAndrew, Medical Director of the Washington Humane Society, added that “these kittens literally had their toes cut off without any sort of pain control.”
In announcing the sentence, U.S. Attorney Machen praised the work of the Washington Humane Society and its law enforcement officer who investigated the case. He also commended the efforts of Assistant U.S. Attorney Peter Lallas, who investigated and prosecuted the matter.
13-067District Man Sentenced to Five-Year Prison Term for Two Bank Robberies in 2008-Crimes Committed Within One Week-Read the Press Release
WASHINGTON – Tony Wilkerson, 41, of Washington, D.C., was sentenced today to a five-year prison term for carrying out two bank robberies within one week, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD)
Wilkerson earlier pled guilty to two counts of bank robbery. He was sentenced by the Honorable Ellen S. Huvelle in the U.S. District Court for the District of Columbia. Upon completion of his prison term, Wilkerson will be placed on three years of supervised release. He also will be required to pay a total of $10,380 in restitution.
According to the government’s evidence, on Nov. 17, 2008, at approximately 10:40 a.m., Wilkerson entered an M&T Bank in the 6400 block of Georgia Avenue NW. Wilkerson was wearing a grey sweatshirt with stripes, and a blue baseball cap. While inside the bank, he walked to the teller's counter and presented a note demanding money.
The teller complied and provided him with $5,000. Wilkerson took the cash and fled the bank, but he left the demand note behind. The bank's security guard, who had been patrolling the area around the bank at the time of the robbery, soon learned what had happened and began following Wilkerson. The guard lost sight of Wilkerson but found in a nearby yard a grey sweatshirt with stripes and a blue baseball hat consistent with the clothing that the robber wore.
These items were collected by law enforcement and sent to the FBI for analysis. Tests identified DNA found on the clothing as belonging to Wilkerson. His DNA was in the criminal justice system because of a prior conviction. The FBI also matched Wilkerson’s fingerprints to the demand note and a toy recovered with the robbery clothing.
The government’s evidence also showed that, on Nov. 24, 2008, Wilkerson robbed a SunTrust branch in the 6400 block of Georgia Avenue NW. Shortly after 10 a.m. that day, he passed a demand note to the teller that stated, “this is a robbery give me $8,000.” Wilkerson leaned forward, placing his palm on the counter of the teller station. The teller opened her drawer and gave Wilkerson bills totaling $5,380.
Wilkerson took the money and began to leave. However, he realized he had forgotten his demand note, and so he returned to the window, grabbed the note, and fled. Law enforcement recovered a palm print from the counter that Wilkerson touched and later submitted it to the FBI for analysis. The FBI Laboratory was tasked with comparing Tony Wilkerson's fingerprints, on file with the Integrated Automated Fingerprint Identifications System (IAFIS), with the latent palm print obtained from the bank counter. Upon completion of the comparison, the FBI Laboratory advised that Tony Wilkerson’s palm print was a match.
The investigation showed that the two bank robberies were carried out in a similar manner. The witnesses at the M&T Bank were shown a surveillance photograph of the person who robbed the SunTrust Bank, and they identified him as the robber as well.
Wilkerson was arrested in North Carolina in May 2012.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier commended the exceptional investigative work of the FBI/MPD Violent Crimes Task Force. They also commended the work of former Assistant U.S. Attorney Sean Lewis and Special Assistant U.S. Attorney Brittan Heller, who prosecuted the matter.
13-068Defendant Sentenced in $1.8 Million Scheme to Defraud Kaiser PermanenteRead the Press Release
OAKLAND, Calif. – Asim Waqar, a former employee of Kaiser Permanente, headquartered in Oakland, California, was sentenced on Wednesday, February 20, 2013, to 33 months in prison and ordered to pay restitution in the amounts of $1,803,667 to Kaiser and $142,530 to the United States Treasury for his guilty pleas to the conspiracy to commit wire fraud and tax evasion, United States Attorney Melinda Haag announced.
According to court documents, Waqar was employed by Kaiser in 2005 as a manager working in Oakland, California. Waqar convinced his college friend, co-defendant Farid Rahman, and his wife, co-defendant Mina Kuhl, living in the Detroit, Michigan area, to join Waqar in a scheme to defraud Kaiser by encouraging Kaiser to hire Kuhl who would purportedly work from Michigan under Waqar’s supervision. In fact, once Kuhl was hired by Kaiser, Waqar would arrange for Kuhl to be paid without having to perform any work. With Waqar’s assistance, Kaiser hired Kuhl and between 2005 and 2008, when Kaiser Permanente management learned of the fraudulent scheme, Waqar had authorized payment of $1,803,667.84 to third party vendors for the employment of Kuhl. From the money paid to Kuhl, Kuhl and Rahman kicked back $428,300 to Waqar, who failed to pay federal taxes in the amount of $142,300 due on this income.
Waqar was placed on administrative leave on August 21, 2008 and resigned from Kaiser on September 4, 2008.
Waqar, 40, Farid Rahman, 44, and Minda Kuhl, 38, all of Windsor, Canada, were charged in a Superseding Information filed in this district on November 3, 2011, with the conspiracy to commit wire fraud, and Rahman and Waqar were also charged with tax violations. The charges against Kuhl and Rahman were transferred to the Eastern District of Michigan where they both pleaded guilty and were sentenced. Rahman received a sentence of 18 months in custody and Kuhl was sentenced to a year and 1 day in custody. Both defendants were ordered to pay restitution to Kaiser, jointly with Waqar.
The case was prosecuted by Assistant U.S. Attorney Patrick Hurford in the Eastern District of Michigan and Assistant U.S. Attorney Stephen Corrigan in the Northern District of California, with the assistance of Chief Legal Tech Kathleen Turner. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.
Corrupt bank employee pleads Guilty for roll in tax fraud conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Hilda Josephine Hernandez-McMullen, 47, of Anchorage, Alaska, pled guilty on Thursday to eight separate felony counts based on her role assisting others in opening bank accounts and fraudulently negotiating tax refund checks using stolen identities.
Specifically, on February 21, 2013, Hernandez-McMullen pled guilty to seven counts of bank fraud for assisting others to open bank accounts in false names as well as one count of assisting an individual in negotiating a forged U.S. Treasury check. She faces a maximum sentence of 30 years in prison for each bank account she helped open as well as a maximum sentence of 10 years in prison for her role in negotiating the forged U.S. Treasury check. Sentencing is currently scheduled for June 10, 2013, before United States District Court Judge Timothy M. Burgess.
Hernandez-McMullen was indicted in July 2012, along with 10 other defendants for her role in an alleged $25 million dollar tax fraud and identity theft scheme that used stolen Puerto Rican identities to file false tax returns and obtain fraudulent income tax refunds.
According to her plea agreement, Hernandez-McMullen worked as a personal banker at Wells Fargo Bank in Anchorage between December 2008 and September 2010, and opened several bank accounts for defendants also charged in the scheme. Hernandez-McMullen opened the accounts despite knowing that the names and identifying information used to open them were false.
Court documents state that these and other bank accounts were then used to negotiate income tax refund checks that defendants in this case were not entitled to receive and which were not in their names.
Hernandez-McMullen admitted to assisting in the fraudulent negotiation of checks totaling $37,978.15. She further admitted that she negotiated these checks despite the fact that they were issued to people who were not at the bank at the time the checks were being negotiated.
Trial for the remaining defendants in the case is scheduled for May 14, 2013, at 9:00 AM in Anchorage.
The case is being prosecuted by Assistant U.S. Attorney James Barkeley, Thomas C. Bradley, and Stephanie C. Courter of the U. S. Attorney’s Office, District of Alaska. The case was investigated and prosecuted under the purview of the Organized Crime and Drug Enforcement Task Force, which is made up of personnel from the U.S. Attorney’s Office, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, ICE Homeland Security Investigations, Internal Revenue Service–Criminal Investigations, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard and the Anchorage Police Department.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites, including the Federal Trade Commission, the Justice Department, the Social Security Administration, and the IRS.
Convicted Sex Offender Sentenced to 30 Months in Federal Prison for Failure to Register with the Kentucky Sex Offender RegistryRead the Press Release
OWENSBORO, Ky. – A convicted sex offender living in Owensboro, Kentucky was sentenced to 30 months in prison, followed by a five-year term of supervised release, by Chief District Judge Joseph H. McKinley, Jr. this week, for failure to register with the Kentucky Sex Offender Registry announced David J. Hale, United States Attorney for the Western District of Kentucky. Russell Jones, age 49, of Owensboro, Kentucky pleaded guilty to a one count indictment on November 27, 2012. According to court records, Jones was convicted on charges of attempted rape in the Court of Common Pleas in Franklin County, which is in Columbus, Ohio. That conviction rendered Jones a Sexually-Oriented Offender and required him to register as a sex offender for ten years. Jones initially registered in Columbus, Ohio with the Franklin County Sheriff’s Department on March 19, 2004 and maintained his sex offender registration in Franklin County until August 2011, then registered with the Miami, Dade County Police Department after moving to Florida.
On May 26, 2012, the Owensboro Police Department arrested Jones for Public Intoxication. At the time of his arrest, employment records revealed that Jones had been living and working in Owensboro beginning in February 2012. Despite living and working in Kentucky for several months, Jones did not register with the Kentucky Sex Offender Registry - as required to do so under the terms of his Ohio conviction and the laws of Kentucky. This case was prosecuted by Assistant United States Attorney Jo E. Lawless and was investigated by the United States Marshals Service.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Congressional Candidate Charged with Violation of the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today that Justin Lamar Sternad, 35, was charged with having violated the Federal Election Campaign Act (Election Act) in connection with the 2012 Democratic Party primary election for Florida’s 26th Congressional District.
Defendant Sternad is expected to make his initial appearance in federal court before U.S. Magistrate Judge Alicia Otazo-Reyes on February 22, 2013 at 2:00 p.m.
The Criminal Information, filed earlier today, charges Sternad with engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and accepting illegal campaign contributions (Count 3). If convicted, Sternad faces a maximum statutory term of imprisonment of up to five years and a fine up to $250,000 on each count.
U.S. Attorney Wifredo Ferrer stated, “The Election Act seeks to promote transparency in the campaign process and thereby increase accountability from our elected officials. Sternad, however, violated the Election Act and lied to conceal the true source of funds being used by his campaign. He sought to secretly provide and accept contributions in excess of the limits prescribed by law, using cash and third party checks to conceal the source and amount of contributions made to his campaign. He then compounded his crimes by filing false campaign reports to cover his trail. We are committed to promoting transparency and accountability from our elected officials and from those running for office. Our citizens deserve no less.”
“For citizens to have confidence in their government, they must be certain that their elected officials are fairly elected. We will not tolerate people who violate federal election law,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “The South Florida community can be assured that public corruption will remain a top priority for the FBI.”
Mr. Ferrer commended the investigative efforts of the agents of the FBI for their hard work in this matter. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill and Richard C. Pilger of the Public Integrity Section of the U.S. Department of Justice.
An Information is only an accusation and a defendant is presumed innocent until proven guilty.
Attachments: Information (PDF)
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.
Colorado Springs Man Sentenced to Federal Prison for Armed Robbery and Possession of A Firearm During A Crime of ViolenceRead the Press Release
DENVER – Joshua Bodean Smith, age 22, of Colorado Springs, was sentenced today by U.S. District Court Judge Christine M. Arguello to serve 483 months (40 years and 3 months) followed by 8 years of supervised release for two counts of armed robbery (Hobbs Act) and two counts of possession of a firearm during a crime of violence, United States Attorney John Walsh and FBI Denver Special Agent in Charge James Yacone announced. Smith, who appeared at the hearing in custody, was also ordered to pay $895 in restitution to the two victims of his crime.
Smith was charged by Criminal Complaint on November 16, 2010. He was indicted by a federal grand jury on December 13, 2010. On November 21, 2012, the defendant was found guilty following a two week trial of the robbery (Hobbs Act) and gun charges. Smith was sentenced today, February 22, 2013.
According to the indictment, and facts presented at trial, on August 31, 2010 Smith, robbed a Cricket Communication Store located on South Nevada Avenue in Colorado Springs, Colorado. He used a firearm in relation to that crime of violence. On October 11, 2010, Smith robbed a Burger King restaurant on base within Fort Carson. He used a firearm during the commission of that crime of violence as well.
This case was investigated by the Federal Bureau of Investigation, the Colorado Springs Police Department and the Army Criminal Investigation Division at Fort Carson.
This case was prosecuted by Assistant U.S. Attorney Kurt Bohn and Special Assistant U.S. Attorney Beth Gibson.
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Citizen of El Salvador Sentenced to 37 Months in Federal Prison for Illegally Reentering the U.S.Read the Press Release
February 22, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that DANILO ALVARADO-CARBAJAR, 29, a citizen of El Salvador, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 37 months of imprisonment for illegally reentering the United States following his deportation.
According to court documents and statements made in court, ALVARADO-CARBAJAR was deported from the United States to his native El Salvador in May 2007 following a state conviction for sexual assault in the second degree. In approximately May 2012, ALVARADO-CARBAJAR illegally reentered the U.S. without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the U.S.
On June 22, 2012, ALVARADO-CARBAJAR was arrested by the Norwalk Police Department on a state probation violation. Subsequent investigation revealed that ALVARADO-CARBAJAR was in the country illegally. He has been detained since his arrest.
On December 13, 2012, ALVARADO-CARBAJAR pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Criminal Alien Program. The case was prosecuted by Assistant United States Attorney Neeraj N. Patel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]California Man Pleads Guilty in Methamphetamine Distribution SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Sacramento, Calif. pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Dominick Spickle, 79, pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Spickle was involved in a conspiracy to distribute more than 50 grams of methamphetamine.
Judge Conti scheduled sentencing for June 14, 2013. The law provides for a maximum total sentence of not less than 5 years and up to 40 years in prison, a fine of $5,000,000, 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.
Pending sentencing, the court continued defendant's bond.
Assistant United States Attorney Stephen R. Kaufman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Spickle.
Broward Man Sentenced to 159 Months for Stealing More Than 23,000 Identities in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) in Minneapolis, José A. Gonzalez, Special Agent in Charge, IRS-CI, Miami Field Office, Larry Gomer, Chief, North Miami Beach Police Department, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announced that defendant Rodney Saintfleur, 28, was sentenced today to 159 months in prison, to be followed by three years of supervised release. Saintfleur pled guilty on November 27, 2012 to one count of conspiracy to submit fraudulent claims to the government, one count of access device fraud, and one count of aggravated identity theft.
According to the Information, the defendant and co-conspirators agreed on a plan to use stolen personal identifying information of others to file fraudulent tax returns seeking refunds. The defendant obtained documents that listed tens of thousands of names with corresponding dates of birth.
According to the factual proffer and statements made at sentencing, the defendant searched an online proprietary database and fraudulently obtained the Social Security numbers of more than 23,000 people whose names and dates of birth appeared on the documents in 2010 and 2011. The defendant provided these Social Security numbers to co-conspirators for an identity theft tax refund fraud scheme. Co-conspirators then filed fraudulent and unauthorized tax returns seeking refunds using the stolen personal identifying information provided by the defendant.
Mr. Ferrer commended the investigative efforts of IRS-CI, the North Miami Beach Police Department, and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Brandon Lee Strecker Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 21, 2013, before Chief U.S. District Judge Richard F. Cebull, BRANDON LEE STRECKER, a 38-year-old resident of Hardin, was sentenced to a term of:
- Prison: 12 months and 1 day
- Special Assessment: $100
- Forfeiture: Route 1 Box 1263A
- Supervised Release: 3 years
He was sentenced in connection with his guilty plea to maintaining drug involved premises.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
In approximately March of 2011, law enforcement received a complaint that Ross Pattison and Travis Birdinground were distributing marijuana to numerous people in Hardin and other places in Big Horn County. Through investigation and interviews, law enforcement determined that Pattison possessed a Montana medical marijuana card but was not listed as a caregiver because he is a convicted felon. Law enforcement also determined that Birdinground worked for Pattison delivering marijuana. Birdinground also possessed a medical marijuana card and was a caregiver for only one patient. Law enforcement observed Birdinground leave Pattison's residence numerous times a night and make trips to several residences within Hardin. Law enforcement also observed several individuals drive to Pattison's residence to purchase marijuana from Pattison.
On April 22, 2011, law enforcement executed search warrants for Pattison's Hardin residence and two pickup trucks. Law enforcement seized approximately five pounds of marijuana, approximately $124,000 in cash, digital scales, a paper grocery bag full of zip-lock bags, a methamphetamine pipe with residue, hashish, and photocopies of patient medical marijuana cards for marijuana caregivers STRECKER, Jason Gierke, Birdinground and another individual.
On May 23, 2011, law enforcement executed a search warrant at STRECKER's Hardin residence. Law enforcement seized a total of 420 marijuana plants - 112 marijuana plants in the attached garage, 239 marijuana plants in the bedroom, one plant in the living room, 68 in the greenhouse and shed. They also seized loose marijuana.
Several witnesses confirmed that Pattison would take and receive orders for marijuana and Gierke, Birdinground, and another individual would deliver marijuana to the buyers. Several witnesses will testify that after Ross Pattison's house was searched, all deliveries were then made by STRECKER or the others.
During an interview with law enforcement on April 22, 2011, Birdinground admitted his role in the conspiracy to distribute marijuana from Pattison's and STRECKER's Hardin residences. The marijuana that he possessed on April 22, 2011, was marijuana that he was delivering for Pattison and STRECKER. The marijuana was ordered through Pattison. Birdinground would pick up the marijuana from Pattison and give Pattison the money after the transaction. Pattison and STRECKER paid Birdinground $800 every two weeks.
During an interview with law enforcement on May 25, 2011, Gierke stated that he helped set up the greenhouses and watering system as part of the marijuana grow operation at STRECKER's Hardin residence. Gierke obtained his marijuana from Pattison and STRECKER. Gierke, Pattison, and STRECKER were "business partners." Pattison put it all together and they grew the marijuana at STRECKER's residence.
Chemists with the DEA laboratory in San Francisco tested the marijuana items submitted from the search of STRECKER's residence. Some of the items were plant clippings as well as loose marijuana. The result of the analysis was that those items contained a detectable amount of marijuana, a Schedule I controlled substance.
Gierke, Pattison, and Birdinground pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they 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 following federal, state and local law enforcement agencies: the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Criminal Investigation Division of the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Environmental Protection Agency-Criminal Investigation Division, U.S. Customs and Border Protection-Border Patrol, and the Occupational Safety and Health Administration. These federal agencies were assisted by local High Intensity Drug Trafficking Area task forces, the Northwest Drug Task Force, the Kalispell Police Department, the Flathead County Sheriff's Office, the Missoula Police Department, the Missoula County Sheriff's Office, the Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force, the Great Falls Police Department, the Cascade County Sheriff's Office, the Central Montana Drug Task Force, the Billings Police Department, the Yellowstone County Sheriff's Office, the Eastern Montana High Intensity Drug Trafficking Area (HIDTA) Task Force, the Dillon Police Department, the Beaverhead County Sheriff's Office, the Park County Sheriff's Office, the Bozeman Police Department, the Gallatin County Sheriff's Office, the Belgrade Police Department, the Missouri River Drug Task Force, the Helena Police Department, the Lewis & Clark Sheriff's Office, and the Eastern Montana Drug Task Force - Miles City.
"Bling Bandit" Sentenced for Three Portland Bank RobberiesRead the Press Release
Ivory Joe Watkins Receives Sentence of 65 months in Federal Prison
PORTLAND, Ore. – Ivory Joe Watkins, 37, of Portland, Oregon was sentenced by U. S. District Court Judge Michael W. Mosman to 65 months in prison following his pleas of guilty to two counts of unarmed bank robbery and one count of attempted unarmed bank robbery. Watkins, who had been given the moniker of the “Bling Bandit” because of the jewelry worn during the bank robberies, was also ordered to pay $3,641 in restitution to U.S. Bank. In Watkins’ guilty pleas, he admitted to the following bank robberies:
(1) April 26, 2012 – U.S. Bank, N.E. 122nd Ave.; (2) June 29, 2012 – Wells Fargo Bank (attempted robbery), S.E. 82nd Ave.; (3) July 16, 2012 – U.S. Bank, N.E. 122nd Ave.
These cases were investigated by the Portland Police Bureau and prosecuted by Assistant U. S. Attorney Fred Weinhouse.
21 February 2013
Wilmington Man Sentenced for Two Robberies-Samuel GainesRead the Press Release
ELIZABETH CITY - United States Attorney Thomas G. Walker announced that in federal court yesterday SAMUEL EARL GAINES, 29, was sentenced by United States District Judge Terrence W. Boyle to 204 months imprisonment; 3 years supervised release, and was ordered to pay a $400.00 special assessment.
On October 23, 2012, GAINES pled guilty to Possession with Intent to Distribute Marijuana in violation of Title 21, United States Code 841(a) and Possessing and Using a Firearm during a Drug Trafficking Offense which occurred on July 11, 2011. In addition GAINES pled guilty to Robbery of a Business in violation of Title 18 United States Code 1951 and Possessing and Using a Firearm during a Crime of Violence which occurred on July 21, 2011.
On July 11, 2011, in Wilmington, he and others went to the home of a man who they believed had a large quantity of marijuana in hopes of robbing the man of his drugs. During the course of the robbery, the victim was shot four times. GAINES and his co-defendants stole various items of personal property from the victim along with a quantity of marijuana which they divided among themselves.
On July 21, 2011, GAINES and others went to Able Auto Insurance Agency in Wilmington and robbed the business of money while holding the employees at gun point. The investigation revealed GAINES and his two co-defendants went to a Dollar General store immediately before the robbery to buy sunglasses to wear during the robbery.
When questioned by law enforcement, GAINES admitted his involvement in both robberies.
Investigation of this case was conducted by the Wilmington Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the University of North Carolina at Wilmington Police Department. Special Assistant United States Attorney Charity Wilson is serving as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
Wilmington Man Sentenced for Two RobberiesRead the Press Release
ELIZABETH CITY - United States Attorney Thomas G. Walker announced that in federal court yesterday SHERWIN ARCHIE, 59, was sentenced by United States District Judge Terrence W. Boyle to 264 months imprisonment; 3 years supervised release, and was ordered to pay a $200.00 special assessment.
On June 5, 2012, ARCHIE pled guilty to Possession of a Firearm by a Felon, in violation of Title 18 United States Code 922(g), Robbery of a Business in violation of Title 18 United States Code 1951 and Possessing and Using a Firearm during a Crime of Violence.
On October 19, 2011, in Wilmington ARCHIE went into a Family Dollar store and demanded money from the clerk. ARCHIE put the gun to the stomach of the clerk and threatened her with the firearm. ARCHIE was wearing a distinctive shirt that was described to law enforcement. He robbed the store of approximately $187. During a separate investigation, law enforcement executed a search warrant on ARCHIE’S home, where they discovered a .25 caliber hangun and ammunition and the sweatshirt worn during the course of the robbery. When ARCHIE was questioned about the robbery, he admitted to stealing the money from the Family Dollar. ARCHIE was sentenced as an Armed Career Criminal for having three or more violent felony convictions on his record.
Investigation of this case was conducted by the Wilmington Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the University of North Carolina at Wilmington Police Department. Special Assistant United States Attorney Charity Wilson is serving as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
Wilmington Man Sentenced for Drug TraffickingRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced John Thomas VAUGHN, 33, of Wilmington, North Carolina, to 252 months imprisonment followed by 5 years supervised release.
On May 17, 2012, VAUGHN pled guilty to conspiring to possess with the intent to distribute and distributing more than 28 grams of cocaine base (crack).
On August 12, 2010, VAUGHN was stopped in a vehicle by the Wilmington Police Department. VAUGHN was traveling from Tabor City to Wilmington North Carolina. A Wilmington Police Detective found a quantity of cocaine in VAUGHN’S vehicle. The investigation revealed that VAUGHN had made several trips to South Carolina in order to pick up cocaine.
During the course of the investigation it was also uncovered that VAUGHN and other persons took part in home invasions of drug dealers, stealing cocaine and drug proceeds.
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The cocaine was then sold by VAUGHN and/or people associated with him. VAUGHN was responsible for the importation, conversion, and distribution of more than 3 kilograms of cocaine and 2 kilograms of cocaine base (crack). VAUGHN was primarily supplying crack cocaine in the Wilmington area.
This case was brought as a part of an Organized Crime Drug
Enforcement Task Force (OCDETF) Operation entitled Buggsnatcher, investigating importers and multi-level distributors of cocaine and crack cocaine. So far 18 persons have been sentenced in federal court as a part of this OCDETF.
Investigation of this OCEDTF case is being conducted by the
Bureau of Alcohol, Tobacco, and Firearms and Explosives; the North Carolina State Bureau of Investigations; the Wilmington Police Department; the New Hanover County Sheriff’s Office and the Brunswick County Sheriff’s Office. Special Assistant United States Attorney Timothy Severo represents the government. Mr. Severo is a prosecutor with the New Hanover District Attorney’s Office. District Attorney Ben David has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.