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21 February 2013
Two Williamsport Residents Charged with Conspiracy to Submit False Income Tax ReturnsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that charges have been filed against Cheryl Cobia and Sharieff Wilkins, both of Williamsport, Pennsylvania.
According to United States Attorney Peter J. Smith, Cobia, age 27, is charged with conspiracy to file false income tax returns claiming false refunds between 2009 and 2011. It is alleged she attempted to receive refunds totaling more than $1,000,000. She is also charged with making false statements in applications for food stamp and medical assistance benefits.
Wilkins, age 35, is charged with conspiracy to submit false claims to the United States government. The charge alleges he submitted multiple false income tax returns for himself and others for tax years 2009-2011 and claimed refunds to which he was not entitled.
The investigations were conducted by the Internal Revenue Service, Criminal Investigation Division and the Office of Inspector General Department of Health and Human Services. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute for both defendants is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Two Philadelphia Men Charged in Bank Fraud ConspiracyRead the Press Release
Eric Young, 39, and Calvin Johnson, 41, both of Philadelphia, Pennsylvania, were charged today by Indictment with one count of conspiracy to commit bank fraud and one count of bank fraud, announced United States Attorney Zane David Memeger.
According to the indictment, Young and Johnson ran a scheme in which they hired individuals to open bank accounts, made phony deposits, and made withdraws from the accounts knowing there were insufficient funds. The indictment alleges that the defendants defrauded the banks of more than $100,000 between December 2011 and August 2012.
If convicted on all counts, Young and Johnson each face a maximum possible sentence of 35 years imprisonment, a five-year period of supervised release, a fine of up to $1.25 million, a $200 special assessment, and full restitution.
The case was investigated by the Bensalem Police Department and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Two Men Arrested for Alleged Extortion of Detroit-Area Restaurant OwnerRead the Press Release
Two men were arrested today on charges of allegedly extorting a Detroit-area restaurant owner, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan and Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Division.
Giuseppe D’Anna, aka “Joe,” 60, and Girolamo D’Anna, aka “Mimmo,” 48, were charged in an indictment unsealed today in U.S. District Court in the Eastern District of Michigan. Both defendants made their initial court appearances today in Detroit.
The defendants are charged in a three-count indictment with one count of Hobbs Act conspiracy and two counts of attempted Hobbs Act extortion, each of which carries a maximum penalty of 20 years in prison. According to the indictment, the defendants and other co-conspirators allegedly attempted to extort the owner of a Shelby Township, Mich., restaurant from approximately 2009 through approximately April 2011.
Indictments are only charges and not evidence of guilt. The defendants are presumed to be innocent until and unless proven guilty.
The investigation of this case was led by the FBI’s Detroit Field Division. Assistant U.S. Attorney Eric Straus of the Eastern District of Michigan and Principal Deputy Chief David Jaffe of the Organized Crime and Gang Section in the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.
Title Insurance Company President Sentenced to Federal PrisonRead the Press Release
Orlando, Florida - Senior U.S. District Judge G. Kendall Sharp sentenced Douglas Wayne Bartle, III, also known as Ridgely Douglas Bartle and Douglas Wayne Bartle, Jr., (49, Winter Park) to 20 months in federal prison for wire fraud. The court also ordered Bartle to pay $862,770.12 in restitution to his victim. Bartle pleaded guilty on November 27, 2012.
According to court documents, in 2004 Bartle and others opened a title insurance company named Vision Title. Vision Title had offices in various counties throughout Florida. The offices were formed as Florida limited liability companies (Vision LLCs). In 2009, to cover living and other personal expenses, Bartle embezzled money from Vision Title’s escrow account. To ensure that Vision Title’s insurance underwriters were unaware of the theft, Bartle used a computer in Orange County, Florida, to access the Internet and obtain bank statements on computer servers in North Carolina. Bartle then altered those bank statements and provided copies to Vision Title’s insurance underwriters. These fraudulent bank statements prevented the insurance underwriters from detecting the fraud and caused the insurance underwriters to allow Vision Title to stay in business. As Vision Title continued to operate, Bartle was able to steal more money. Because of Bartle’s actions, Vision Title had insufficient funds to cover claims that could have been made on title insurance issued by Vision Title. When law enforcement detected the fraud, Vison Title offices throughout Florida were immediately shut down. Vision Title employees lost their jobs with no advance notice. In total, Bartle embezzled approximately $1.1 million.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Insurance Fraud. It was prosecuted by Assistant United States Attorney Vincent A. Citro.
Three Individuals Sentenced in Orlando Federal Court for Scheme to Cash Fraudulent Refund ChecksRead the Press Release
Orlando, FL - U.S. District Judge Charlene E. Honeywell sentenced three individuals for their roles in a conspiracy to defraud the government. Eliseo Dela Rosa (38, Orlando) was sentenced to 15 months in federal prison, Ana Torres (27, Kissimmee) was sentenced to two years' probation and Ada Lopez (39, Orlando) was sentenced to six months' home confinement as a condition of four years of probation. All three pleaded guilty on November 16, 2012.
According to court documents, the Internal Revenue Service discovered that Dela Rosa and others fraudulently received IRS refunds and stimulus checks. They then cashed or deposited the checks at Bank of America. Torres and Lopez worked as bank tellers at Bank of America. Between May 2007 and July 2008, Dela Rosa took several Treasury checks to Lopez and Torres. Lopez and Torres would either cash or deposit the checks into another individual's Bank of America checking account. The women would then give the money to Dela Rosa or one of his runners who dropped off the checks for him.
Lopez cashed checks for Dela Rosa and received payment for each check she cashed. All checks already had been endorsed before Lopez received them. If a check was not endorsed, Lopez would give the check back to Dela Rosa who would bring the check back later. Lopez cashed about $244,000 in checks.
Between May 2, 2007, and September 11, 2007, Torres also deposited Treasury checks received from Dela Rosa or his runners. She cashed a total of approximately $46,000 in checks. Torres withdrew her fee for cashing the checks and gave the remainder of the proceeds to Dela Rosa.
This case was investigated by the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Tanya Davis Wilson.
Three Charged in Scheme to Defraud New York City School Construction Authority of over $32 Million; Two Others Charged with Structuring to Conceal FraudRead the Press Release
A criminal complaint was unsealed this morning in federal court in Brooklyn charging Muzaffar Nadeem, Afzaal Chaudry, and Zainul Syed with conspiring to defraud the New York City School Construction Authority (SCA) by falsely certifying that workers on the defendants’ SCA-funded construction projects received the legally and contractually mandated prevailing wage for their work.1 The complaint also charges Syed, as well as Irfan Muzaffar and Arun Gandham, an employee of a check-cashing business located in Jersey City, New Jersey, with structuring financial transactions in violation of federal law. The defendants arrested this morning have their initial appearances scheduled later today before United States Magistrate Judge Viktor V. Pohorelsky at the U. S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Eric T. Schneiderman, New York State Attorney General, Rose Gill Hearn, Commissioner, New York City Department of Investigation (DOI); Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS), New York; and Special Agent-in-Charge Robert Panella, New York Regional Office of the U.S. Department of Labor, Office of Inspector General (DOL IG), Office of Labor Racketeering and Fraud Investigations.
As alleged in the complaint and other court filings by the government, Nadeem operated a construction company, SM&B Construction Co., Inc. (SM&B) in Brooklyn, which has been awarded over $72 million in contracts by the SCA since 1997 and has received over $32 million in fraud-induced payments from the SCA since 2008. Chaudry and Syed worked as a foreman and office manager, respectively, at SM&B. Both New York State Labor Law and the terms of its contracts with the SCA required SM&B to pay workers on SCA-funded projects a prevailing wage rate, which was set by the New York City Comptroller. In fact, SM&B paid workers on its projects, including bricklayers and laborers, in cash at rates far below the prevailing wage and then falsely certified to the SCA that the workers had been paid the prevailing wage. For example, bricklayers renovating a Brooklyn elementary school were paid $250 for each eight-hour day, rather than the $580 daily wage to which they were legally entitled. Laborers on the same project were paid about $125 per day, rather than the $460-$540 daily wage to which they were legally entitled. As alleged in a detention memorandum filed today by the government, more than $3 million of SM&B’s proceeds from the charged fraud scheme were laundered through shell companies and then sent to Pakistan to fund an investment in an amusement park and resort complex there.
To conceal the charged fraud scheme from law enforcement, and to obtain cash to pay the illegally low wages to workers, Syed, Muzaffar, and Gandham allegedly engaged in illegal structuring, specifically, cashing multiple checks, each for less than $10,000, on a single day, for a total amount of more than $10,000, and thereby avoiding the required filing of Currency Transaction Reports (CTRs). According to the complaint, since January 2008, more than $3.6 million in structured checks were written on SM&B’s account.
“As charged in the complaint, the defendants promised workers a fair wage for a day’s work - work that was often difficult manual labor, but shortchanged them to line their pockets. They also defrauded the taxpayers by falsely stating to the School Construction Authority that they were paying a full day’s wages for a full day’s work. Their lies resulted in the awarding of contracts they were not entitled to, tens of millions of taxpayer dollars obtained by fraud, and the exploitation of workers,” stated United States Attorney Lynch. “They will now be held to account for their actions.” Ms. Lynch expressed her grateful appreciation to the New York City School Construction Authority Office of the Inspector General, the New York State Office of the Attorney General Organized Crime Task Force, the New York City Police Department, and the New York County District Attorney’s Office for their assistance in the investigation.
Attorney General Schneiderman stated, “My office will not tolerate employers who violate New York’s labor laws, steal taxpayer dollars and violate the public trust. Instead of complying with the law and paying their employees the fair and legally required wages, these unscrupulous business owners cheated their workers and stole tens of millions of dollars from New York City schools.”
DOI Commissioner Gill Hearn stated, “The defendants were well schooled in cheating their workers, according to the charges, and even sent millions they skimmed overseas to fund an amusement park. But defrauding the City’s school construction program is a serious crime that no one in law enforcement finds amusing. DOI thanks our partners in this case for their enduring commitment to rooting out fraud in our City’s construction industry.”
IRS Special Agent-in-Charge Weirauch stated, “Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act. Such investigations are important because structuring is essentially a form of money laundering. The structuring activities alleged in this complaint not only hid a major fraud, but they provided the means to deprive hard working individuals of honest wages.”
DOL IG Special Agent-in-Charge Panella stated, “Today’s charges serve as a deterrent to those who would allegedly defraud unions and workers by falsifying payroll records to conceal their crimes. The Office of Inspector General will continue to work closely with our law enforcement partners to investigate these types of allegations.”
If convicted, the defendants charged with conspiracy to commit mail fraud each face a maximum sentence of 20 years’ imprisonment. If convicted, the defendants charged with illegally structuring financial transactions each face a maximum sentence of five years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Paul Tuchmann, Lan Nguyen and Claire Kedeshian.
The Defendants:
MUZAFFAR NADEEM
Age: 57
Residence: Brooklyn, NYAFZAAL CHAUDRY
Age: 46
Residence: Brooklyn, NYZAINUL SYED
Age: 38
Residence: Brooklyn, NYIRFAN MUZAFFAR
Age: 28
Residence: Brooklyn, NYARUN GANDHAM
Age: 44
Residence: Jersey City, NJ_____________________________
1The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Third Member of Three-Woman Bank Robbery Ring Sentenced to 19 Years for Participation in String of Bank RobberiesRead the Press Release
Case Results in Conviction of Three Individuals and Resolves Three Bank Robberies in Kalamazoo and an Attempted Bank Robbery in FlintGRAND RAPIDS, MICHIGAN – LaTasha Ann Nichols, 28, of Flint, Michigan, was sentenced by U.S. District Judge Robert Holmes Bell to 19 years in Federal Prison for her role in a string of bank robberies that took place between 2009 and 2012. Nichols pled guilty to two counts of armed bank robbery and one count of using a firearm in the commission of a violent felony. In addition to the 19 year sentence for Nichols, Judge Bell previously sentenced Miranda Jamelle Dixon (28) to 17 years and Suzanne Cherre Alguarelles (38) to six years in prison for their roles in what the judge described as a dangerous and violent string of robberies.
U.S. Attorney Patrick A. Miles Jr. stated, “Armed bank robbery is a very serious crime that terrorizes members of our society and has the very real potential of causing serious personal injury, if not death, to innocent bystanders. This prosecution and the lengthy prison terms imposed reflect that violent crime will not be taken lightly in this district.”
The bank robbery string began in June, 2009, when Nichols, Dixon and Alguarelles stole a Dodge Neon from an apartment complex in Kalamazoo, Michigan. Nichols and Dixon drove the Dodge Neon to the National City Bank on Stadium Drive where they robbed the bank at gunpoint and obtained over $8,000.00. Nichols and Dixon then abandoned the stolen vehicle and traveled on foot to a nearby apartment complex where Alguarelles served as the get-away driver and facilitated their escape to the Detroit area. Nichols and Dixon attempted another bank robbery in Flint, Michigan, on November 16, 2011, but were thwarted by a security guard. The two traveled to Kalamazoo, Michigan, and on November 17, 2011, stole another Dodge Neon and robbed the Charter One Bank on West Main Street at gun-point. The bank tellers handed over $7,222.01 after Dixon threatened that if the tellers used dye-packs she would come back and get them. Finally, on February 14, 2012, Dixon, acting alone, robbed the PNC Bank on Gull Road in Kalamazoo Township. Dixon again threatened the tellers with a firearm and obtained over $4,000.00.
The Kalamazoo office of the Federal Bureau of Investigation, the Kalamazoo Department of Public Safety, and the Kalamazoo Township Police Department jointly investigated the robberies. The cases were prosecuted by Assistant U.S. Attorney Ronald M. Stella.
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St. Petersburg Store Owner and Clerk Indicted for Food Stamp FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Mehdi Babul (58) and Isam Nasser (30) with one count each of conspiracy to defraud the United States and to commit wire fraud, five counts of wire fraud, and five counts of food stamp fraud. If convicted of the conspiracy charge, Babul and Nasser each face a maximum penalty of five years in federal prison. For each wire fraud count, they face a maximum penalty of twenty years in federal prison. And, if convicted, they each face up to one year in federal prison for each of the food stamp fraud charges.
According to the indictment, Babul owned and operated Hungry Baba, LLC, a convenience store located in St. Petersburg. Isam Nasser was a clerk at Hungry Baba. During the time frame of the alleged conspiracy, Hungry Baba was a participant in the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. From November 2008 through April 2010, Babul, Nasser, and others allegedly conspired and schemed to cheat SNAP by purchasing SNAP benefits from Hungry Baba customers. They exchange the benefits for cash, minus a fee of approximately 50% of the total amount charged to the individual recipient’s SNAP account. This is an illegal practice known as “discounting” or “cash-back.”
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service, the United States Department of Agriculture, Office of the Inspector General, the Florida Department of Law Enforcement, and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller.
Speaker Bios for Project FutureRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWayne Campbell - Wayne Campbell is the President of Tyler’s Light — a non- profit organization that is helping to bring awareness to communities in Northern West Virginia about the dangers of prescription and illegal drug use. The organization is named after Wayne’s son, Tyler, who fought an addiction to prescription pain medication and died of an accidental heroin overdose in July 2011. Tyler's Light has made great strides in encouraging people who know someone struggling with an addiction to “Speak Up, Save a Life.”
Phil Bauer - Since the prescription drug related death of his youngest son, Mark, in 2004, Phil Bauer has been helping others avoid this tragic fate. He has told his son’s story and spoken about prescription drug abuse nationwide to high school students, law enforcement representatives, health care professionals, community groups, and parent groups.
Philicia Barbieri - Philicia Barbieri is a teacher who lost her job, her home and so much more when prescription medication and heroin took over her life. Philicia tells a compelling story of how her recreational use of drugs and alcohol in high school led her to a life of addiction, crime and desperation. Her story provides a first-hand insight into the dangers of drug addiction and the struggles of withdrawal and recovery.
Sixty Year Old Individual Arrested for Child PornographyRead the Press Release
SAN JUAN, Puerto Rico —U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF) arrested a Las Piedras resident Tuesday for production of child pornography.
Andrés Ruiz-Huertas, 60, was arrested after a referral from the Puerto Rico Police Department to HSI led to the execution of a search warrant during which several digital electronic storage devices were seized. A preliminary analysis of the materials seized revealed sexually explicit videos of Ruiz-Huertas engaging in sexual acts with multiple minors.
According to one female minor victim, on February 18, 2013, defendant Andres Ruiz- Huertas, who she previously knew from the Las Piedras area, picked her up at the Fajardo Ferry port to drive her to her mother’s residence at Las Piedras, PR. On the way to her mother’s residence, Ruiz-Huertas told the victim that he had previously engaged in sexual intercourse with three of her female minor friends. Ruiz-Huertas also told her that he had also engaged in sexual acts with two other minors whom he identified. He then proceeded to show the victim sexually explicit images from a phone described by the minor as a black iPhone with a black cover that he utilized as his personal phone.
The defendant then took the victim to his office, showed her sexually explicit images on his computer and purportedly sexually assaulted her. Once he dropped her off at her residence, she told her mother what had happened and together they filed a formal complaint with the Puerto Rico Police Department.
Ruiz-Huertas was transferred to the Metropolitan Detention Center in Guaynabo awaiting the outcome of his case. If convicted, he faces a mandatory minimum sentence of 15 years incarceration and a possible maximum statutory sentence of 30 years incarceration.
“The U.S. Department of Justice, through its Project Safe Childhood, will continue prosecuting sexual predators of minors,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodriguez. “The US Attorney’s Office, along with law enforcement agencies in Puerto Rico, will continue to track down these criminals, arrest them and bring them to justice,” said US Attorney Rosa Emilia Rodríguez-Vélez.
“All children have an absolute right to grow up free from the fear of sexual exploitation,” said Angel Melendez, special agent in charge of HSI San Juan. “HSI relentlessly pursues predators who sexually abuse children, whether that abuse is physical in nature or if it's accomplished by exploiting their images. HSI will not tolerate such despicable crimes. Our agents will continue to police cyberspace and target those who exploit the most vulnerable segment of our society -- our children.”
The case is being prosecuted by Assistant U.S. Attorney Marshal D. Morgan.
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
Sentences for February 20, 2013Read the Press Release
Jason M. Johnson, 25, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 20, 2013, for being a felon in possession of a firearm. Johnson was arrested in Casper, Wyoming. He received 62 months of imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Selma Man Sentenced on Federal Drug ChargesRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court yesterday in Wilmington, North Carolina, SHOUNTARIO DEVON WALKER, 30, of Selma, North Carolina, was sentenced by the Honorable James C. Fox to 180 months’ imprisonment for his role in a drug trafficking operation.
On September 5, 2012, a Federal Grand Jury returned a Criminal Indictment that charged WALKER with one count of possessing with the intent to distribute 500 grams or more of cocaine and 6 counts of distributing cocaine. On November 5, 2012, WALKER pleaded guilty to all counts.
The evidence in the case revealed that WALKER was a drug dealer in the Smithfield, North Carolina, area and that from April 24, 2012, through June 5, 2012, WALKER possessed and sold more than 500 grams of cocaine to an individual working with law enforcement. Based on the extent of his drug trafficking and prior record, WALKER was sentenced to 180 months’ imprisonment.
Investigation of this case was conducted by the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Sanjoy Bhattacharya Pleads Guilty to False Statements to an Agency of the United StatesRead the Press Release
SANJOY BHATTACHARYA, age 56, a resident of New Orleans, Louisiana, pled guilty in federal court today before U.S. District Judge Carl J. Barbier to one count of making false statements to an agency of the United States, announced U. S. Attorney Dana J. Boente.
According to court documents on or about September 21, 2007, BHATTACHARYA applied for funds from the Louisiana Road Home Program claiming his primary residence at the time of the storm was at 2436-38 Joseph Street in New Orleans, a property he knew was leased to and inhabited by his tenants at time of Hurricane Katrina. As a result of his false statements in his application, BHATTACHARYA fraudulently received approximately $84,423 from the United States Department of Housing and Urban Development (“HUD”), an agency and department of the United States.
Upon sentencing scheduled for May 30, 2013, BHATTACHARYA faces a maximum term of imprisonment of five (5) years, a $250,0000 fine, restitution to the HUD, and three (3) years of supervised release following any term of imprisonment, and a $100 special assessment.
The case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant U. S. Attorney Julia K. Evans.
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Raleigh Man Sentenced for Receipt of Child PornographyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced DOUGLAS STEVENS, 53, to 63 months imprisonment followed by 15 years supervised release and ordered to pay a $2,000 fine.
On September 5, 2012, STEVENS pled guilty to one count of the Receipt of child pornography in violation of Title 18, United States Code, Section 2252(a)(2).
Evidence discovered during the investigation initiated by the Bureau of Immigration and Custom Enforcement’s Cyber Crimes Crimes Center determined that STEVENS had downloaded and received in excess of 4,000 images of prepubescent children engaging in sexually explicit conduct. STEVENS admitted to downloading the images since 2005.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the Bureau of Immigration and Custom Enforcement (ICE), the North Carolina State Bureau of Investigation (SBI), and the Raleigh Police Department (RPD). Assistant United States Attorneys Ethan A. Ontjes prosecuted the case for the government.
RGV DME Owner and Two Others Convicted in $11 Million Health Care Fraud SchemeRead the Press Release
McALLEN, Texas - The owner of a now defunct McAllen area durable medical equipment (DME) business, his wife and another former employee have been convicted for their roles in a conspiracy and scheme to defraud Medicare and Medicaid through fraudulent billings, United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott announced today. As part of his plea, RGV DME Owner Marcello Herrera, 40, admitted he sent more than $11.1 Million in false claims to Medicare and Medicaid.
Herrera and his wife Carla Cantu Herrera, 32, along with their former employee Ramon De La Garza, 52, all of Mission, entered a plea of guilty to conspiring to defraud Medicare and Texas Medicaid. Marcelo Herrera and Ramon De La Garza also each pleaded guilty to one count of aggravated identity theft for unlawfully using the identity of a beneficiary to bill Medicare and Medicaid $5,000 for a power wheelchair that was not requested, prescribed, needed or delivered.
From early 2004 through late 2011, Marcello Herrera, who did business as RGV DME in the McAllen area, engaged in and directed a scheme to submit fraudulent claims to Medicare and Texas Medicaid for power wheelchairs, incontinent supplies, hospital beds and mattresses as well as other DME supplies. At various times, Carla Cantu Herrera, De La Garza and Beatriz Ramos, 28, of Edinburg, participated in the conspiracy and aided Marcello Herrera and each other in the submission of fraudulent billings, wire fraud and theft of the identities of beneficiaries and doctors.
Marcelo Herrera admitted in court today that during the time of his fraudulent scheme he submitted or caused the submission of more than $11.1 million in false and fraudulent claims to Medicare and Texas Medicaid for which he illegally received in excess of $6.1 million dollars. Carla Herrera admitted that the fraudulent billings exceeded $9.9 million for which they received illegal payments exceeding $5.5 million during her participation in the conspiracy, while De La Garza admitted that during his participation in the conspiracy the fraudulent billing exceed $9.6 million for which payments exceeded $5 million. All admitted that 85% of their Medicare and Texas Medicaid billings were false and fraudulent. All have also agreed to orders of restitution for the amounts attributable to them individually.
The defendants admitted marketers were used to obtain Medicare and Medicaid identification numbers and other information from beneficiaries which they in turn used to fraudulently bill Medicare and Medicaid for DME that was either never prescribed or prescribed but never delivered. The Herreras also admitted that they or their marketers attempted to obtain referrals of patients or orders for DME from doctors in exchange for gifts.
Conspiracy to commit health care fraud carries a maximum punishment of 10 years in federal prison without parole and a $250,000 fine upon conviction. Aggravated identity theft carries a mandatory two-year additional prison term which must be served by Marcelo Herrera and De La Garza after serving the term of imprisonment imposed for their respective conspiracy convictions.
As part of their pleas of guilty, Marcelo Herrera and Carla Cantu Herrera further agreed to forfeit wheelchairs, scooters and other DME items discovered in his leased storage facility in Alamo, which had been rented by him and ultimately seized by the FBI. In addition, Marcelo Herrera and Carla Cantu Herrera agreed to the entry of money judgments against themselves in the sums of $6,103,953.74 and $5,519,703.37, respectively. The money judgment against De La Garza is $5,059,198.96.
Sentencing of the defendants was scheduled for May 16, 2013. Marcelo Herrera and De La Garza, who have been in custody since June 28, 2012, will remain in custody. Carla Cantu Herrera was permitted to remain on bond pending a hearing on Feb. 27, 2103.
Ramos entered a guilty plea on Oct. 16, 2012, to one count of conspiracy to commit health care fraud and remains free on bond awaiting sentencing, set for April 17, 2013.
The investigation leading to the charges was conducted by the U.S. Department of Health and Human Services-Office of Inspector General, the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney (AUSA) Grady Leupold are prosecuting the case. AUSAs Mary Ellen Smyth and Kristine Rollinson assisted with the asset forfeiture aspects of the case.
Previous Officers of Corporate Entity Formerly Known as Blackwater Plead Guilty & Are SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today GARY JACKSON and WILLIAM WHEELER MATTHEWS, JR. pled guilty before United States District Judge Louise W. Flanagan, to one count each of failing to make and maintain records related to firearms in violation of Title 18, United States Code, Sections 922(m) and 923(g)(1)(A).
Additionally, Judge Flanagan sentenced JACKSON and MATTHEWS to 3 years probation, 4 months house arrest with stipulations, and fined them $5,000.00.
According to the Criminal Information filed on February 14, 2013, JACKSON and MATTHEWS, between 2005 and 2007, were employees of a corporate entity formerly known as Blackwater which was a licensed federal firearms manufacturer and dealer, and whose responsibilities for a certain period of time included direct or indirect supervisory authority over employees whose duties included the making and maintenance of records required by federal law. JACKSON and MATTHEWS failed to make and maintain or cause to be made and maintained adequate records specifying the actual location where firearms were stored on Blackwater’s premises and failed to make and maintain or cause to be made and maintained required records with respect to registration of certain firearms.
The corporate entity formerly known as Blackwater has entered into a Deferred Prosecution Agreement with the government in which it has agreed to extensive ongoing compliance programs and the payment of approximately 7 million dollars in fines.
Assistant United States Attorneys John Bowler and Eric Goulian with the Eastern District of North Carolina, along with Senior Trial Counsel Clifford Rones with the Department of Justice Counter Espionage Section, are handling the prosecution on behalf of the government.
Port Orange Man Sentenced to More Than 7 Years for Receiving Child PornographyRead the Press Release
Orlando, Florida -U.S. District Judge Charlene Edwards Honeywell sentenced Wilfred Reginald Breuer (50, Port Orange) to 7 years and six months in federal prison for receipt and possession of child pornography. The court also ordered Breuer to forfeit the computer he used to receive the child pornography and to serve a ten year term of supervised release following his incarceration. Breuer pleaded guilty on November 28, 2012.
According to court documents, Breuer received child pornography using a Peer to Peer shared directory. Breuer admitted to downloading child pornography images and videos for more than five years. A forensic examination of Breuer’s computer discovered 1,456 images and 343 movies of involving the sexual exploitation of prepubescent children.
The 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 (CEOS), 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.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Volusia County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
Pittsburgh Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County has been sentenced in federal court to 36 months imprisonment, to be followed by 15 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Matthew Lawrence Gamret, 28.
According to information presented to the court, on Jan. 16, 2012, Gamret possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Gamret.
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.justice.gov/psc.
Operators of Idaho Aquarium Arrested for Wildlife ViolationsRead the Press Release
Florida Indictment Alleges Two Illegally Purchased Marine Life
BOISE – Ammon Covino, 39, of Meridian, Idaho, and Christopher Conk, 40, of Middleton, Idaho, were arrested today for violations of the Lacey Act, U.S. Attorney Wendy J. Olson announced. A federal grand jury in the Southern District of Florida returned a sealed indictment on November 8, 2012, charging the defendants with conspiracy to violate the Lacey Act and violating the Lacey Act by purchasing Florida protected marine life in interstate commerce.
The four count indictment, which was unsealed today, alleges that Covino and Conk purchased four spotted eagle rays (Aeobatus nairnari) and two lemon sharks (Negaprion brevirostris) for approximately $6,300. The marine wildlife were allegedly harvested illegally and without a permit.
Covino and Conk appeared this afternoon before Chief U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Boise. The court ordered the defendants to appear on March 15, 2013, before U.S. Magistrate Judge Lurana S. Snow, at the Sidney M. Aronovitz Federal Courthouse in Key West, Florida.
The defendants are each charged with one count of Conspiracy and three counts of Illegal Purchase and Sale of Fish/Wildlife. Each count is punishable by up to five years in prison, a maximum fine of $250,000, and at least three years of supervised release. The indictment also includes a forfeiture count.
The case is being investigated by U.S. Fish and Wildlife Service (USFW), National Oceanic and Atmospheric Administration (NOAA), and Idaho Department of Fish and Game.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
Ohkay Owingeh Pueblo Man Pleads Guilty to Brandishing a Firearm During a Home Invasion on Santa Clara PuebloRead the Press Release
ALBUQUERQUE – Joshua W. Phillips, 20, a member and resident of Ohkay Owingeh Pueblo, N.M., pled guilty yesterday to brandishing a firearm during a crime of violence under a plea agreement with the U.S. Attorney’s Office. The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Phillips was arrested on June 22, 2012, on a criminal complaint charging him with assault with a dangerous weapon and with the intent to do bodily harm. According to the criminal complaint, Phillips assaulted a man on Feb. 12, 2011, on Santa Clara Pueblo land within Rio Arriba County, N.M.
During yesterday’s plea hearing, Phillips pled guilty to brandishing a firearm in relation to an assault with a dangerous weapon. In his plea agreement, Phillips admitted that on Feb. 12, 2012, he and an accomplice committed a home invasion in a Santa Clara Pueblo residence for the purpose of robbing the owner. Phillips was armed with a rifle and the accomplice was armed with a knife. After forcing their way into the residence, Phillips fired a round from the rifle into the ceiling when one of the residents failed to comply with his demand for money. When the homeowner attempted to wrest the rifle away from Phillips and prevent Phillips from escaping, the accomplice kicked, punched and stabbed the homeowner so that Phillips could get away.
Under the terms of the plea agreement, Phillips will be sentenced to seven years in prison. A sentencing date has yet to be scheduled.
The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Northern Pueblos Agency, with assistance from the Santa Clara Pueblo Tribal Police Department and the Espanola Police Department, and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Newark Man Admits Role in Scheme to Steal Checks from U.S. MailRead the Press Release
Deposited Hundreds of Thousands of Dollars into Personal Accounts
NEWARK, N.J. – A Newark man today admitted his role in a scheme to gain access to personal checks from the U.S. mail, fraudulently endorse and deposit them into personal checking accounts, U.S. Paul J. Fishman announced.
Kurtis Steele, 26, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an Information charging him with one count of conspiracy to commit bank fraud.According to the documents filed in this case and statements made in court:
Steele and his conspirators gained access to blank checks that were sent via U.S. Mail and stolen from unsuspecting victims. Steele and his co-conspirators then fraudulently endorsed the blank checks for a certain sum and deposited those checks into legitimate bank accounts that defendants and unnamed conspirators opened at the banks, including TD Bank, Bank of America, Capital One Bank, Garden State Community Bank, Hudson City Savings Bank, PNC Bank and Valley National Bank. Before the victims and banks discovered the checks were fraudulent, Steele and his conspirators had withdrawn the funds either via Automated Teller Machine (ATM) or by entering the banks and filling out a withdrawal slip. During the investigation, U.S. Postal Inspection Service and FBI agents were able to obtain bank video surveillance which captured Steele making fraudulent deposits of the stolen checks and withdrawals of the proceeds of those checks.
Steele and his conspirators deposited $1.5 million in fraudulent checks stolen from 122 victims, which were deposited into 258 different banks. Steele and his conspirators’ conduct resulted in approximately $625,000 in loss.Steele faces a maximum potential penalty of 30 years in prison on the conspiracy charge and a maximum fine of $1 million or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for May 29, 2013.
U.S. Attorney Fishman credited special agents of the U.S. Postal Inspection Service, under the direction of Philip Bartlett; and special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the Organized Crime/Gangs Unit in Newark.13-087
Defense Counsel: Stephen A. Turano Esq., NewarkSteele, Kurtis Information
New York Man Charged with Sex Trafficking of Young FemalesRead the Press Release
PHILADELPHIA - Justin Williams, a/k/a “New York Ice”, a/k/a “Pimp Juice”, 38, of NY, NY, is charged by indictment, unsealed today, with the sex trafficking of minors, announced United States Attorney Zane David Memeger. According to the indictment, between November 2011 and January 2012, Williams recruited young females to work as prostitutes in his business, created Internet advertisements in which he advertised various females as available for purchase for purposes of prostitution, and engaged in acts of physical violence to force the victims to remain in his business. The advertisements that Williams created featured pictures of the victims, either scantily clad, or topless with their hands covering their breasts, the price, and a phone number to call to arrange a meeting with a female. Williams allegedly forced the victims to engage in sex acts with clients.
If convicted, the defendant faces a 15-year mandatory minimum and maximum life sentence in prison, supervised release and a fine of up to $500,000.
The case was investigated by the FBI and is being prosecuted by Michelle Morgan.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Most Wanted “Deadbeat Parent” Pleads Guilty to Flight to Evade over $1.2 Million in Child Support ObligationsRead the Press Release
Earlier today, defendant Robert D. Sand, the nation’s “Most Wanted Deadbeat Parent” according to a child support enforcement web page, pleaded guilty to two counts of traveling in interstate and foreign commerce with the intent to evade child support obligations totaling over $1.2 million. The proceedings were held before the Honorable Joseph F. Bianco at the United States Courthouse located in Central Islip, New York. Sand faces a maximum sentence of 4 years’ imprisonment when sentenced on May 21, 2013.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Thomas O’Donnell, Special Agent in Charge of the New York Regional Office, Office of the Inspector General, United States Department of Health and Human Services (“OIG-DHHS”) and Charles Dunne, United States Marshal for the Eastern District of New York.
As part of his plea, Sand admitted that he initially relocated from New York to Florida and then fled the United States in order to evade his support obligations following the issuance of arrest warrants in 2000 and 2002. Sand admitted that he had spent much of the past decade in the Kingdom of Thailand where he operated a business. Sand was arrested in late November 2012, upon entering the Republic of the Philippines from Thailand without proper identification documents, and on December 17, 2012, he was deported to Los Angeles, where he was taken into custody by deputies with the United States Marshals Service. During the time Sand was a fugitive, his support obligations continued to grow. At the time of his arrest, Sand owed more than $1.2 Million in back child support.
According to a complaint filed in federal court on April 8, 2002, the New York State Family Court in Nassau County issued an arrest warrant for Sand on November 22, 2000, following multiple contempt findings against him in child support proceedings. A federal arrest warrant was issued for Sand on April 8, 2002. On September 17, 2009, an indictment was filed in the United States District Court for the Eastern District of New York charging Sand with two counts of failure to pay child support, and on February 17, 2010, a federal arrest warrant was issued for Sand’s arrest.
In January 2012, OIG-DHHS launched a child support enforcement web page (http://oig.hhs.gov/fraud/child-support-enforcement/) to seek the public’s help in ongoing federal efforts to bring fugitive “deadbeat parents” to justice. Sand was listed on the site as the number one “Most Wanted Deadbeat Parent” based upon his child support obligations that allegedly totaled more than $1 million.
“Today, the defendant has admitted to abandoning his responsibilities to the children he helped bring into this world, and to leaving the country to do so. Neither court orders nor the familial bond meant anything to him as he fled to avoid his obligations. Today’s guilty plea stands as a strong warning to those who would flee their lawful child support obligations that we will prosecute them to the fullest extent of the law,” stated United States Attorney Lynch. “Neither time, nor distance, will prevent the vigorous pursuit by law enforcement to bring them to justice.” Ms. Lynch expressed her grateful appreciation to the Office of the Inspector General, United States Department of Health and Human Services and the United States Marshals Service for their assistance in this case.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
Name: ROBERT D. SAND
Age: 50Montara Man Charged with Running Bankruptcy Fraud SchemeRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Walter Bruce Harrell, of Montara, with eight counts of bankruptcy fraud and two counts of making false statements in bankruptcy proceedings, United States Attorney Melinda Haag announced. The Indictment alleges that Harrell devised and executed a scheme to defraud creditors who were attempting to lawfully foreclose on numerous properties, and that he did so by delaying and obstructing foreclosure sales through the improper use of the federal bankruptcy process.
According to the Indictment, Mr. Harrell, 71, is alleged to have arranged for property owners to grant fractional interests of between 2% and 20% of their properties to individuals whom Harrell had paid to file bankruptcy cases in the U.S. Bankruptcy Court for the Northern District of California. These actions invoked the “automatic stay” provision of the U.S. Bankruptcy Code, which halts foreclosure sales until the creditor seeks relief from the stay or until the bankruptcy case is dismissed. The Indictment alleges that Harrell’s scheme forced creditors to file motions to lift the automatic stays, or to wait until the debtors’ bankruptcy cases were dismissed, in order to proceed with the foreclosure sales. A number of the creditors affected by the scheme were recipients of funds under the Troubled Asset Relief Program. The Indictment identifies at least six properties involved in the scheme, one of which was occupied by Harrell. The Indictment also charges Harrell with making false statements in bankruptcy proceedings with respect to two bankruptcy cases that Harrell paid an individual identified as “T.W.” to file.
Mr. Harrell was arrested in Montara on February 20, 2013, and he made his initial appearance in federal court in San Francisco on February 21, 2013. He was released on a $50,000 bond. The defendant’s next scheduled appearance is at 9:30 a.m. on February 25, 2013, for identification of counsel before Magistrate Judge Maria-Elena James.
The maximum statutory penalty for each count of bankruptcy fraud, in violation of Title 18, United States Code, Section 157, and each count of making false statements in bankruptcy proceedings, in violation of Title 18, United States Code, Section 152(3), is 5 years in prison and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Kyle F. Waldinger is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation and the Special Inspector General for the Troubled Asset Relief Program, as well as investigators from the Alameda County District Attorney’s Office.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Harrell must be presumed innocent unless and until proven guilty.
Miami Man Charged in $12 Million Identity Theft Tax Refund Fraud Scheme Involving Thousands of Fraudulently Obtained U.S. Treasury ChecksRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the filing of a criminal complaint charging defendant Frankie Jermaine Anderson, 40, of Miami, with conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371, theft of government money or property, in violation of Title 18, United States Code, Section 641, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to the affidavit filed in support of the criminal complaint, from about February through June 2012, a check casher in Perrine, Florida (J&S Taxes) cashed thousands of fraudulently obtained U.S. income tax refund checks worth over $12 million. The defendant allegedly provided the vast majority of these fraudulently obtained checks to the check casher for cashing. Proceeds from this fraud were then used by the defendant to purchase two separate homes—one for the defendant and one for the defendant’s mother (each valued at approximately $250,000). In addition, the defendant used the proceeds from the fraud to purchase a 2012 BMW 530i, a Porsche Cayenne, a 2012 Porsche Panamera, a 212 Cadillac CTS, a 2012 Jaguar XF, a 2013 BMW X6, a 2012 Jaguar XJ, and a 2013 Bentley GT Coupe. According to State of Florida employment records, the defendant has been unemployed since 2003.
According to the affidavit, on November 28, 2012, the defendant was arrested in possession of 35 U.S. Treasury checks totaling approximately $119,165.60, including at least one check issued in the name of a deceased person.
Mr. Ferrer thanked IRS-CI, USSS, USPIS, and FBI for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger, Evelyn Baltodano -Sheehan and Elijah Levitt.
A criminal complaint is only an accusation and the defendant is presumed innocent until proven guilty.
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.
Marysville Man Pleads Guilty to Coercion of A MinorRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Justin S. Mote, 33, of Marysville pleaded guilty in U.S. District Court today to one count of using the internet to coerce a minor to engage in unlawful sexual activity. The plea agreement provides for a sentence between 240 and 300 months in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, and members of the Franklin County Internet Crimes Against Children Task Force (ICAC), announced the plea entered today before U.S. District Judge Edmund A. Sargus, Jr.
According to testimony presented during the plea hearing, Mote met a 12-year old girl online and went to Connecticut and Pennsylvania to visit her in 2012. Franklin County ICAC investigators received information from a Newtown, Connecticut police officer on October 16, 2012 after the girl’s father found letters, text messages and gifts from Mote. Investigators executed a search warrant at Mote’s residence on October 19 and found fully nude photographs of the victim on various media devices including a tablet computer belonging to Mote.
Mote, who was under indictment on state charges of attempted unlawful sexual contact with a minor and importuning in connection with a separate incident that occurred in August 2011, was arrested. He has been in custody since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by HSI agents and ICAC task force officers, as well as Assistant U.S. Attorney Heather Hill, who is prosecuting the case.
The court will conduct a pre-sentence investigation before accepting the terms of the plea agreement and schedule a date for sentencing.
Manhattan U.S. Attorney Announces Arrest of Virgin Islands-Based Investment Adviser for Multi-Million Dollar Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Keith Milke, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today that JAMES TAGLIAFERRI, who managed and controlled TAG Virgin Islands, Inc. (“TAG”), an SEC-registered investment adviser, was arrested today for executing a scheme to defraud TAG clients. Through TAG, TAGLIAFERRI received undisclosed payments in exchange for causing his clients to invest in certain securities; used client funds for improper purposes, including making payments to other clients who were demanding their funds; and caused false and fictitious securities instruments to be placed in client accounts. In total, TAGLIAFERRI received more than $3 million in undisclosed payments in connection with the fraud. He was arrested in St. Thomas, U.S. Virgin Islands, and is expected to be presented today in federal court in St. Thomas.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, James Tagliaferri concocted an elaborate scheme to defraud his clients, including taking millions of dollars in undisclosed compensation in exchange for placing their hard-earned money in certain investments. Financial advisers have a professional and legal responsibility to act in their clients’ best interests which is exactly the opposite of the conduct in which Tagliaferri allegedly engaged.”
Inspector-in-Charge Keith Milke said: “Today's arrest of James Tagliaferri for allegedly investing client funds in risky ventures, then using part of their investments as a ‘fee’ violated the trust his clients placed with him, leaving many financially scarred. His arrest should serve as a reminder that whenever someone uses the US Mail for illegal activities Postal Inspectors will bring them to justice.”
According to an Indictment unsealed today in Manhattan federal court:
Beginning in or about 2007, TAGLIAFERRI opened TAG in the Virgin Islands and began offering investment advisory services to clients through that company. He exercised substantial discretion over client investment accounts which, at times, totaled more than $250 million in assets under his management.
Beginning in or about 2007, TAGLIAFERRI executed a multi-faceted scheme to defraud TAG clients. First, he began taking payments he was legally required to disclose but did not, in exchange for placing client funds in investments with certain companies. He received at least $1.6 million in secret fees for causing clients to invest in securities relating to a company located in Garden City, New York (“Company 1”). He also received at least $1.75 million in undisclosed compensation in exchange for placing client funds in investments with several companies affiliated with an associate of his (“Associate 1”).
TAGLIAFERRI often used his clients’ money to finance these undisclosed payments to TAG. He did this by transferring client funds from custodial accounts to a trust account maintained by an attorney. He then diverted a portion of those funds – the undisclosed fee – from the trust account to a TAG account in the Virgin Islands that he controlled. By routing fees to TAG through this trust account and other third-party accounts, TAGLIAFERRI was able to receive these fees with no record of such fees appearing on the monthly statements custodial financial institutions sent to TAG clients.
Second, TAGLIAFERRI used client funds for improper purposes, including making payments to other clients who were demanding their money, and to make payments on behalf of companies he was affiliated with, including Company 1. He orchestrated a complex series of transactions between and among TAG client accounts to access funds for these purposes. For example, when an immediate need for funds arose, he caused clients to purchase shares of a publicly-traded company affiliated with Associate 1 from a client account affiliated with Associate 1 that TAGLIAGERRI controlled. Once those sales took place and TAG client funds were transferred to that account, he used those funds for his own purposes, including for payments to other clients demanding their money.
Third, TAGLIAFERRI caused false and fictitious securities to be placed in client accounts. He signed a series of investment instruments relating to a company located in Pennsylvania (the “Pennsylvania Company”). According to these instruments, the Pennsylvania Company was obligated to make payments to certain TAG clients based on a note agreement between the Pennsylvania Company and TAG. In reality, however, the Pennsylvania Company never executed any agreement with TAG that obligated it to make payments to TAG or TAG clients. As TAGLIAFERRI well knew, these investment instruments, and the obligation they referenced, were false and fictitious.
TAGLIAFERRI, 73, of St. Thomas, has been charged with one count of investment adviser fraud, one count of securities fraud, five counts of wire fraud, and eight counts of violating the Travel Act. The penalties for each of the charged offenses are listed in the attached chart.
Mr. Bharara praised the work of USPIS and the Criminal Investigators of the United States Attorney’s Office, which jointly investigated this case. He also thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jason H. Cowley and Richard C. Tarlowe are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Click here to view chart(s)Tagliaferri, James Indictment
Luis Misael Madrid-romero Sentenced for Illegal Re-entryRead the Press Release
LUIS MISAEL MADRID-ROMERO, age 42, a citizen of Honduras, was sentenced today in federal court by U. S. District Judge Carl J. Barbier to forty-six (46) months imprisonment, announced U. S. Attorney Dana Boente. In addition to the term of imprisonment, Judge Barbier ordered that MADRID be placed on two (2) years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release.
According to court documents, on November 15, 2012, MADRID, pled guilty to one count of an indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States in Jefferson Parish, Louisiana without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his reapplication for admission into the United States. MADRID’s sentence was subject to an enhancement based on a previous aggravated felony conviction.
The case was investigated by U. S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE). The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Local Home Health Care Agency Owners Are Sentenced for Roles in Nearly $1.3 Million Health Care Fraud ConspiracyRead the Press Release
DALLAS — Two owners of Alliance Healthcare Services, L.P., a Dallas home health care agency, were sentenced today by U.S. District Judge Jane J. Boyle for their roles in a nearly $1.3 million health care fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Richardson, Texas, residents, George Opurum, 62, and his wife, Agatha Opurum, 55, were each sentenced to 37 months in federal prison. They were ordered to surrender to the Bureau of Prisons on March 27, 2013.
George Opurum was the chief financial officer and alternate administrator of Alliance. Edith Opurum was the Director of Nursing at Alliance. Co-conspirator Ernest Amadi, 55, was the chief executive officer of Alliance and his wife, Edith Amadi, 52, was a nurse at Alliance. Alliance was located on Estate Lane in Dallas.
The Amadi’s, residents of Wylie, Texas, also pleaded guilty to conspiracy to commit health care fraud. Edith Amadi was sentenced to 37 months in federal prison; a sentencing date has not been set for Ernest Amadi. Another co-conspirator in the case, Ollie Futrell, 57, of Garland, Texas, pleaded guilty to her role in the conspiracy and is currently serving a 33-month federal prison sentence.
The five defendants in the case billed a total of $1,296,357, and are ordered to pay restitution in the amount of $853,702.
According to documents filed in the case, as part of the conspiracy, from November 2008 through mid-February 2011, Alliance submitted claims to Medicare for home health services purportedly provided to Medicare beneficiaries. Alliance employees, including the owners, falsified Medicare documentation and skilled nursing notes indicating that the patients were homebound and eligible for home health care services. In fact, the majority of Alliance patients were not eligible for the services because they were not homebound. Alliance employees and owners falsified time sheets and patient visit logs for services that were not adequately rendered or were never provided at all. Alliance then billed Medicare as if the services were adequately provided.
Further, according to documents filed in the case, Alliance owners conspired with Futrell to recruit Medicare patients for the company so Alliance could increase its Medicare billing and revenue. Futrell, who was paid in cash by Alliance owners, recruited Medicare beneficiaries in a variety of ways and initiated Alliance services for them. She agreed to pay kickbacks — sometimes $100 a month — to patients so that they would continue to use Alliance. Alliance owners knew about, and at times facilitated, these kickbacks.
The case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General (HHS OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit.
Assistant U.S. Attorney Katherine E. Pfeifle of the U.S. Attorney’s Office in Dallas and Trial Attorney Benjamin A. O’Neil of the Fraud Section in the Justice Department’s Criminal Division are in charge of the prosecution.
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: http://www.stopmedicarefraud.gov/
Justice Department Seeks to Shut Down New Jersey Tax Return PreparerRead the Press Release
The United States has asked a federal court in Camden, N.J., to bar Doris E. Baules, who operates D’Vazquez Tax Solutions, from preparing tax returns for others, the Justice Department announced today. According to the government complaint, Baules continually and improperly claimed the Earned Income Tax Credit (EITC) on her clients’ returns to enable them to receive erroneous tax refunds. The suit alleges that the defendant improperly increases their EITC claims.
According to the complaint, the Internal Revenue Service previously conducted an investigation into the tax returns that Baules prepared for the 2009 tax year, and assessed $12,500 in return preparer penalties against her because she failed to exercise due diligence in determining whether her clients were entitled to the EITC. Baules continued to claim increased EITC on returns she prepared even after the IRS contacted her. According to the complaint, the total harm to the U.S. Treasury caused by Doris Baules’ misconduct is estimated to be as high as $6.2 million.
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. Doris E. Baules
Complaint for Permanent Injunction and Other Relief (PDF)
Justice Department Seeks to Shut Down Detroit-Area Tax Return PreparersRead the Press Release
The Justice Department announced today that it has asked a federal court in Detroit to permanently bar Calvin Carter and brothers Raheen Stroud and Laron Stroud, who do business as E-File Tax Pros LLC and Tax King, from preparing federal tax returns. The civil injunction suit alleges that Carter and the Stroud brothers falsify customers’ income on their tax returns, frequently by fabricating business income and expenses, in order to claim the maximum earned income tax credit (EITC) for them.
The EITC is a refundable credit available to certain low-income people. The maximum credit in 2010 was $5,666. Due to the method used to calculate the EITC, people with higher annual incomes may be entitled to a larger credit. Some tax preparers refer to the range of earned income generating a maximum EITC as the “sweet spot.” According to the complaint, Carter and the Stroud brothers fabricated businesses and reported fake business income and expenses on their customers’ tax returns to achieve reported income in the EITC sweet spot. The complaint alleges that the defendants filed tax returns in 2009, 2010, and 2011 that had an extremely high refund-request rate of 97 percent.
The complaint also alleges that the defendants prepare returns for customers that falsely claim the first-time-homebuyer credit even though the customers had not bought new homes and were ineligible for the credit.
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. Calvin Carter, et al.
Complaint for Permanent Injunction and Other Relief (PDF)
Jury Convicts New Hampshire Woman for Obtaining U.S. Citizenship UnlawfullyVictims from Rwanda Testify Regarding Her Role in the 1994 GenocideRead the Press Release
CONCORD, N.H. - A Manchester, NH woman was convicted today by a federal jury of two counts of procuring citizenship unlawfully.
A federal jury in New Hampshire found that Beatrice Munyenyezi, 43, obtained her U.S. citizenship unlawfully after fleeing her home country of Rwanda by misrepresenting material facts to U.S. Immigration authorities both before and after she arrived here. The verdict was announced today by United States Attorney Carmen M. Ortiz, First Assistant United States Attorney for the U.S. District of New Hampshire Donald Feith and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston.
Munyenyezi, who was charged in June 2010, faces up to 10 years in prison to be followed by three years of supervised release and a $250,000 fine on each count. Munyenyezi’s U.S. citizenship was revoked immediately upon conviction. She also faces removal proceedings after serving the sentence imposed by the judge.
Sentencing has been scheduled for June 3, 2013, at 9:30 a.m. in Concord, NH, before Judge Steven J. McAuliffe, who presided over the trial.
Testimony during the 12-day trial revealed that Munyenyezi concealed her involvement in the MRND (National Republican Movement for Democracy and Development), the political party in power before and during the Rwandan genocide. Munyenyezi misrepresented this fact in order to obtain immigration and naturalization benefits.
U.S. Attorney Ortiz said, “United States citizenship is one of our Nation’s most valued privileges. Those involved in human rights violations should be aware that the United States will not idly tolerate the abuse of its accepting borders and will diligently investigate those who obtain citizenship fraudulently, even decades after the events.”
“The United States has always welcomed refugees and those fleeing oppression, but as today’s guilty verdict clearly demonstrates, this nation will never be a safe haven for human rights violators and war criminals,” said Bruce M. Foucart, special agent in charge of HSI Boston. “After much persistence and dedication by HSI special agents and our partners at the U.S. Attorney’s Office for the District of Massachusetts, Munyenyezi will be held accountable for disguising her role as a participant in the Rwandan genocide. I am hopeful that this case will send a message to others like Munyenyezi: HSI will never allow our country to be a place where individuals seeking to distance themselves from their pasts can hide or evade detection.”
Homeland Security Investigations investigated the case with the assistance of the Department of State Diplomatic Security Service. The case is being prosecuted by Special Assistant U.S. Attorneys Aloke Chakravarty and John Capin from Ortiz’s Anti-Terrorism Unit in the District of Massachusetts.
Janice Staves and James Youngblood Charged with Defrauding HanoRead the Press Release
JANICE STAVES, age 55, a resident of New Orleans, and JAMES YOUNGBLOOD, age 69, a resident of New Orleans, were charged in a bill of information today with conspiracy to commit theft concerning programs receiving federal funds, announced U. S. Attorney Dana Boente.
According to court documents, STAVES was employed as a Purchasing Clerk for the Housing Authority of New Orleans (HANO) from 1992 until June 1, 2009. YOUNGLOOD also had previously worked at HANO from 1972 until 2003. Upon leaving HANO, YOUNGBLOOD formed and operated YOUNGBLOOD and YOUNGBLOOD Construction, LLC.
During the conspiracy, STAVES and YOUNGBLOOD figured out a way to embezzle money from HANO, which receives federal funding. In 2007, STAVES and YOUNGBLOOD discussed, telephonically and in person, that STAVES could get YOUNGBLOOD paid with HANO funds, for doing no work, and in return, YOUNGBLOOD provided kickbacks to STAVES. During this time frame, YOUNGBLOOD received HANO checks totaling $661,904.11, despite having performed no work. STAVES, deposited approximately $100,448.00 in cash from YOUNGBLOOD, into accounts that she controlled. YOUNGBLOOD and STAVES would meet at the HANO office and in parking lots of various businesses close to the HANO office where she would receive her portion of the cash.
Procedures for requisition orders for jobs were circumvented in connection with the elaborate scheme which allowed STAVES to generate false paperwork, which appeared legitimate, resulting in payments to YOUNGBLOOD for work never performed and payments in advance for work to be performed, which was never authorized and never performed at a late date. The fraudulent purchase orders were often designated for debris removal and/or supplies, such as locks.
If convicted, STAVES and YOUNGBLOOD face a maximum term of imprisonment of five (5) years, as well as a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment, as to each count. Boente reiterated that the bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the Special Agents of the Federal Bureau of Investigation and the United States Department of Housing and Urban Development, Office of the Inspector General. The prosecution is being handled by Assistant United States Attorney Jon Maestri.(Download Bill of Information )
Jamaica Citizen Sentenced to for Possessing A Firearm as an Illegal AlienRead the Press Release
Orlando, Florida - U.S. District Judge John Antoon, II, sentenced Omar O'Neill Lewis last week to 57 months in federal prison for possession of a firearm by an illegal alien. He pleaded guilty to the charge on August 13, 2012.
According to court documents, an Orange County Sheriff’s deputy observed Lewis attempting to conceal a handgun under a parked car in a parking lot. The handgun was recovered and identified as a FN Herstal 5.7 mm. The gun was loaded with a round in the chamber and 16 rounds in the magazine. Lewis was arrested for carrying a concealed weapon. At the time of his arrest, Lewis identified himself to deputies using a fictitious name. He also produced an illegally obtained Florida identification card and Florida driver's license. Through a search warrant for the collection of DNA samples, the Florida Department of Law Enforcement’s laboratory in Orlando confirmed the DNA collected from the firearm matched DNA collected from Lewis.
Lewis was later identified as a national and citizen of Jamaica. On April 3, 2001, an immigration judge had ordered Lewis removed from the United States. He was physically removed from the United States on June 28, 2001. Lewis reentered the United States on or about July 25, 2005, without the permission of the Attorney General or Secretary of the Department of Homeland Security. He was physically removed again on February 23, 2006. Lewis made other attempts to enter the United States using fictitious identities. On October 5, 2009, in the Southern District of Florida, Lewis was sentenced to 46 months’ imprisonment for illegal re-entry. On May 25, 2010, he was sentenced to 19 months’ imprisonment for false impersonation of a United States citizen.
This case was investigated by the Orange County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on February 21, 2013:
Roberto Ramirez Cardona, 53, of Hammond, Indiana, was charged in an Indictment with distribution of heroin.These charges were filed as the result of an investigation by the United States Postal Service-Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Nicholas Padilla.
Julian Robert Rebeles, 21, of Hammond, Indiana, was charged in an Indictment with possession of a firearm by a convicted felon. These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
Scott Filbey, 47, of Walton, Kentucky, was charged in an Indictment with production of child pornography.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Indiana State Police, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Franklin County Ohio Sheriff’s Department and the Cincinnati/Hamilton County Sheriff Electronics Computer Investigation Section.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
Anthony Edward Stewart, 23, of East Chicago, Indiana, was charged in an Indictment with possession of a firearm by a convicted felon.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task force.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
William Weigand, 43, of Portage, Indiana, was charged in an Indictment with possession of a firearm by a convicted felon.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force, the Federal Bureau of Investigation and the Indiana State Police.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
In Joint Operation, United States Secret Service and United States Attorney's Office Charge 68 People with Counterfeit Check ChargesRead the Press Release
ABINGDON, VIRGINIA -- Nearly 70 people, most of them residents of Southwest Virginia and Northeast Tennessee, have been or will be arrested during a sweeping joint operation headed by the United States Secret Service and the United States Attorney’s Office for the Western District of Virginia.
Beginning the morning of February 20 and continuing through February 21, agents with the Secret Service, US Marshal’s Service and Washington County Sheriff’s Office will make 68 total arrests throughout the region.
Each of the 68 defendants have been charged in Federal criminal complaints with a single count of conspiracy to possess with the intent to defraud, false and fictitious checks appearing and purporting to be actual financial instruments issued under the authority of an organization.
“Today’s arrests are the product of a long running, multi-agency investigation into counterfeit check cashing in our district,” United States Attorney Timothy J. Heaphy said today. “The Secret Service has done an incredible job supervising this investigation with the assistance of other agencies. The law enforcement collaboration in this matter has made possible the numerous and significant charges faced by these defendants.”
“This case is an example of how, by working together, law enforcement at the local and federal level can make our communities safer and stronger. The Secret Service truly believes in this partnership approach to law enforcement, especially when we can combine our resources to make a significant impact and fight these financial crimes in the communities where we live,” said William Frantzen, Special Agent in Charge for the United States Secret Service’s Richmond Division.
An affidavit attached to the criminal complaint claims the 68 defendants charged this week were part of a conspiracy that attempted to cash fraudulent checks at various retails locations throughout Southwest Virginia and Northeast Tennessee. The defendants are charged with presenting fraudulent Comdata Comchecks claiming to be issued by local trucking companies.The investigation of the case is being conducted by the United States Secret Service, the Washington County Sheriff’s Office, the United States Marshal’s Service, the Scott County Sheriff’s Office, the Sullivan County Tennessee Police Department and the Kingsport Tennessee Police Department. Assistant United States Attorney Randy Ramseyer will prosecute the case for the United States.
A criminal Complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Houstonian Convicted of Receiving Child PornographyRead the Press Release
HOUSTON – Sean Louis Walsh, 30, a Houston resident, has entered a guilty plea to receipt of child pornography, United States Attorney Kenneth Magidson announced today.
Walsh had been identified in an earlier investigation involving a company that operated a “nudist” website. On Sept. 16, 2011, inspectors with the U.S. Postal Inspection Service (USPIS) sent a mailing to Walsh at his home address in Houston. The mailing contained an undercover name and address and invited individuals to become a customer of the undercover company which was supposed to be a leader in taboo and forbidden videos. There was an invitation to request a free catalog specific to the customer’s desires and the flyer also had a checklist for the customer to note such desires.
In November 2011, inspectors received an order from Walsh for two DVDs in the mail, one of which was clearly described as containing child pornography, and a check for $50 in his name. The video depicted two prepubescent boys, approximately 9-10 years old and a pubescent female, approximately 11-12 years old engaging in oral sex and masturbation.
On Dec. 6, 2011, a search warrant was executed at the home of Sean Walsh, at which time agents seized several media devices. A forensic exam was conducted on three computers found in Walsh’s bedroom which yielded approximately 4,630 images and 322 videos of child pornography. Walsh was shown copies of the emails and correspondence and he acknowledged that he had sent or received the items.
U.S. District Judge Nancy Atlas, who accepted the guilty plea, has set sentencing for May 9, 2013. At that time, he faces at least five and up to 20 years imprisonment and a maximum fine of $250,000. Upon completion of any prison term imposed, Walsh also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
This case, prosecuted by Assistant United States Attorney Robert Stabe and investigated by USPIS, 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."
Grand Jury for the District of NebraskaRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 26 indictments charging 30 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Tomas Barrios-Samaniego is charged with being an alien illegally in the United States in possession of a firearm, to wit: a Walther P22 .22 caliber firearm. The maximum possible penalty includes imprisonment of up to 10 years, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Cesar Cabrera-Juarez, age 29, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about December 19, 2012, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Larry K. Christiansen, age 33, and Michelle C. Christiansen, age 43, both of Omaha, are charged in a two count indictment. Count I alleges the defendants conspired together and with others beginning from an unknown date but at least as early as January 1, 2010, and continuing to on or about October 31, 2012, to manufacture and attempt to manufacture 100 or more marijuana plants. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count II alleges that on or about October 31, 2012, the defendants possessed with intent to distribute less than 50 kilograms of marijuana. The maximum possible penalty includes imprisonment of up to 20 years, a $1 million fine, a 5 year term of supervised release and a $100 special assessment. Count III alleges that on or about October 31, 2012, Larry K. Christiansen possessed a Black Rain Ordinance .223 caliber rifle, during, in relation to, and in furtherance of the drug trafficking offense alleged in Count II. The maximum possible penalty includes imprisonment of not less than 5 years and up to life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to: a. $146,197.00 in United States currency; b. 2007 Chevrolet Silverado 2500; c. 2011 Cadillac SRX; d. 2012 Chevrolet Corvette; e. 2012 Harley Davidson FLSTF Fat Boy Motorcycle; f. 2013 Harley Davidson FLS Softail Slim Motorcycle; g. Eight 100 Troy Ounce silver bars; h. Seventy-four 1 Troy Ounce silver round; i. Five 10 Troy Ounce silver bars; j. One 5 Troy Ounce silver bar; k. Five 1 Troy Ounce silver bars; l. Two 1 Troy Ounce gold American Buffalo gold coins; m. One 1 Troy Ounce gold Canadian Maple Leaf gold coin; n. Black Rain Ordinance .223 Caliber Rifle; o. DPMS Panther Arms .223 Rifle; p. Beretta CX4 Storm .45 cal Auto Machine Pistol; q. Black Rain Ordinance Rifle; r. Smith and Wesson MP-15 Rifle; s. HK MR762A1 Rifle; t. Lot 21, in Deer Creek, a Subdivision, locally known as 7361 North 122nd Avenue Circle, Omaha, Douglas County, Nebraska; and u. Lot 134, Pine Creek, a Subdivision, locally known as 16221 Young Street, Omaha, Douglas County, Nebraska, seized on October 31, 2012, should be forfeited to the United States.
* Randy Lee Contreras, age 35, and Veronica Contreras, age 25, both of Culbertson, Nebraska, are charged with conspiring together and with others to possess and possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine beginning on or about November 2012, and continuing to on or about December 7, 2012. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment.
* John R. Creel, Sr., age 59, of Omaha, is charged with failure to register as a Sex Offender in the State of Nebraska from on or about October 2012 through January 2013. The maximum penalty for this count includes imprisonment of 10 years, a fine of $250,000, a term of supervised release for life, and a special assessment of $100.
* John Harvey Deming, age 26, of Sioux City, Iowa, is charged with Assault in the Third Degree. On or about March 23, 2012, Deming assaulted and caused bodily injury to an Indian female minor within the boundaries of the Omaha Indian Reservation. The maximum penalty for this count includes imprisonment of 6 months, a $1,000 fine, supervised release for 1 year, and a special assessment of $10.
* Jeremy David Evans, age 30, of Carol Stream, Illinois, is charged with bank robbery of Bank of the West, 7910 Cass Street, Omaha, Nebraska, on or about October 10, 2012, in the amount of approximately $11,340. The maximum possible penalty, if convicted, includes 20 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Matthew David Fell, age 29, of Waterloo, Iowa, is charged in a two-count indictment. Counts I and II charge that on or about June 18, 2012, and June 25, 2012, respectively, Fell made threats via the mail to kill unspecified individuals and to unlawfully damage real and personal property. The maximum possible penalty for each Count includes imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Ismael Francisco-Francisco, age 28, of Omaha, is charged with illegal reentry into the United States on or about December 17, 2012, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Christi Leigh Freemont, age 30, of Winnebago, Nebraska, is charged in a one-count Indictment with embezzlement from an Indian tribe. From on or about January 1, 2012, and continuing to on or about June 4, 2012, Freemont, an employee of the Winnebago Tribe of Nebraska, embezzled more than $1,000 for her own use from the Winnebago Tribe of Nebraska. The maximum penalty for this count includes imprisonment of 5 years, a fine of $250,000, supervised release of 3 years, and a special assessment of $100.
* Troy Gee, age 34, of Omaha, is charged in a 15 count indictment. Count I alleges that on or about September 27, 2012, the defendant distributed 28 grams or more of a mixture or substance containing a detectable amount of crack cocaine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Counts II through VII allege that on or about August 24, 2012, the defendant sold an individual an H&R Topper 12 gauge break open shotgun (Count II), a Remington Fieldmaster 572 .22 caliber rifle (Count III), a Remington Wingmaster 870 12 gauge shotgun (Count IV), a Ruger 10/22 .22 caliber semi-automatic rifle (Count V), a Squires Bingham Squibman 20A .22 caliber semi-automatic rifle (Count VI), and a Baikal Russia, imported by EAA, MP-153 12/89 (Count VII), knowing the individual had previously been convicted of a felony. The maximum possible penalty for each count includes imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts VIII through XI allege that on or about September 5, 2012, the defendant sold an individual a Harrington and Richardson model 349 Gamemaster 12 gauge bolt action shotgun (Count VIII), a Remington model 1100 12 gauge semi-automatic shotgun (Count IX), and two Arisaka bolt action rifles (Counts X and XI), knowing the individual had previously been convicted of a felony. The maximum possible penalty for each count includes imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts XII through XIV allege that on or about September 27, 2012, the defendant sold an individual a DPMS model A15.233 caliber semi-automatic rifle (Count XII), a Taurus model PT740 slim .40 caliber semi-automatic pistol (Count XIII) and a Colt model Diamondback .38 caliber revolver (Count XIV), knowing the individual had been previously convicted of a felony. The maximum possible penalty for each count includes imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count XV alleges that on or about October 25, 2012, the defendant possessed a Romarm Cugir/WASR 10/63 UF 7.62 caliber semi-automatic rifle from which the serial number had been removed, altered and obliterated. The maximum possible penalty for this count includes imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Ilman Jose Gonzalez-Davila, age 29, of Grand Island, Nebraska, is charged with being an illegal alien in possession of a firearm on or about December 31, 2012. The penalty for this count includes imprisonment of 10 years, a fine of $250,000, followed by a term of supervised release of 3 years, and a special assessment of $100. Count II alleges that on or about December 31, 2012, Gonzalez-Davila was in possession of an unregistered firearm. The penalty for this count includes imprisonment of 10 years, a fine of $10,000, followed by a term of supervised release of 3 years, and a special assessment of $100.
* Gabriel Gonzalez-De La Cruz, age 38, of Columbus, Nebraska, is charged with illegal reentry into the United States on or about January 1, 2013, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Floyd Victor Johnson, age 21, of Niobrara, Nebraska, is charged with sexual abuse of a minor sometime between on or about April 1, 2011, and on or about May 15, 2011, within the Santee Sioux Indian Reservation. The maximum penalty includes imprisonment of 15 years, a fine of $250,000, supervised release for life, and a $100 special assessment.
* Tyler Joseph Keup, age 29, of North Platte, Nebraska, is charged in a two count indictment. Count I alleges that beginning on or about October 1, 2012, and continuing until on or about November 25, 2012, the defendant conspired with others to distribute and possess with intent to distribute 5 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count II alleges that on or about November 2, 2012, the defendant possessed with intent to distribute 5 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment.* Moises Mendez-Coti, age 30, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about February 3, 2013, following deportation as a felon. The maximum possible penalty if convicted includes imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Isidro Ortiz, Jr., age 33, is charged in a three count indictment. Count I alleges that beginning on or about October 1, 2012, and continuing until on or about November 25, 2012, the defendant conspired with others to distribute and possess with intent to distribute 5 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count II alleges that on or about November 2, 2012, the defendant possessed with intent to distribute 5 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count III alleges that on or about November 19, 2012, the defendant, having previously been convicted of a felony, was in possession of three firearms: a Winchester, model 1400, 12 gauge shotgun, a Smith and Wesson SW40VE, .40 caliber pistol, and a Jimenez Arms J.A. NINE, 9mm pistol. The maximum possible penalty includes imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations alleged in the indictment, including but not limited to $2,000.00 in United States currency seized on November 19, 2012, from the purse of Angel Benitez and $770 in United States currency seized from Angel Benitez on November 1, 2012, should be forfeited to the United States.* Troy M. Ortmeier, age 45, of West Point, Nebraska, is charged with four counts of wire fraud from on or about July 2, 2008, to on or about September 1, 2011. It is alleged that Ortmeier, Manager of Ortmeier & Associates under a Broker-Sales Associate Contract and a Real Estate Broker, paid himself from the Real Estate Trust Account and from the Operating Account, monies to which he was not entitled, in addition to his commissions and monthly payment which were legitimate payments to himself from Ortmeier & Associates. Ortmeier made false entries in Ortmeier & Associates’ electronic bookkeeping system to conceal the unauthorized payments. Ortmeier also sent falsified Reconciliation Detail Reports to the owners of Ortmeier & Associates. The maximum possible penalty for each of these counts includes imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of these violations should be forfeited to the United States.
* Sergio Arturo Portillo-Lujan, age 30, of Omaha, is charged with illegal reentry into the United States on or about December 11, 2012, following deportation as a felon. The maximum possible penalty if convicted includes imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Jairo Rodriguez, age 27, who was previously convicted of possession of a firearm with an obliterated serial number, a felony, is charged with being in possession of a firearm, to wit: a Smith and Wesson Bodyguard .380 handgun and .380 ammunition on or about February 8, 2013. The maximum possible penalty includes imprisonment for 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jhonatan Roman-Heredia, age 24, Virgilio Roman-Chadez, age 48, and Gonzalo Arredondo-Sicairos, age 27, of Omaha, are charged in a four count indictment. Count I alleges that beginning from an unknown date but at least as early as January 1, 2012, and continuing to on or about February 8, 2013, the defendants conspired together and with others to possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty includes imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release and a $100 special assessment. Counts II, III, and IV allege that on or about January 17, 29, and February 5, 2013, Gonzalo Arredondo-Sicairos distributed 5 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty for each count includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained by Jhonatan Roman-Heredia and Virgilio Roman-Chaidez, directly or indirectly as a result of the violations alleged in the indictment, including but not limited to $113,817.00 in United States currency seized on February 8, 2013, should be forfeited to the United States.
* Valentin Saenz-Tarrango, age 28, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about January 31, 2013, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Christopher S. Stevens, age 51, of Omaha, is charged with theft of funds from the United States Social Security Administration beginning on or about March 18, 2007, and up to and including May 16, 2012, by receiving Supplemental Security Income in the amount of approximately $43,722. The maximum possible penalty if convicted includes imprisonment of 10 years, a $250,000 fine, supervised release of 3 years, and a $100 special assessment.
* Jose Suarez-Estrada, age 46, of Omaha, is charged with illegal reentry into the United States on or about February 8, 2013, following deportation as a felon. The maximum possible penalty if convicted includes imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Gustavo Armenta Trujillo, also known as Gustavo Trujillo Armenta, also known as Gustabo Trujillo Armenta, also known as Gustavo Armenta-Trujillo, also known as Carlos Mendoza-Armenta, also known as Marcos Armenta Valdez, also known as Miguel Carasco Perez, also known as Miguel Contreras Perez, age 41, of Lincoln, is charged in a two count indictment. Count I alleges that on or about January 28, 2013, the defendant possessed with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count II alleges that on or about January 28, 2013, the defendant who had previously been excluded from the United States following a conviction for an aggravated felony, to wit: possession with intent to deliver a controlled substance, was found in the United States. The maximum possible penalty includes imprisonment of not less than 20 years, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, including but not limited to $697.00 in United States currency seized from the defendant on or about January 28, 2013, should be forfeited to the United States.
* Eduardo Valenzuela-Nunez, also known as Eden Mora-Castro, also known as Damien Palacios, also known as Lalo, also known as Gordo, also known as Viejon, age 34, is charged in a two count indictment. Count I alleges that beginning on or about December 1, 2009, and continuing to on or about November 27, 2012, the defendant conspired with others to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 10 years and up to life, a $10 million dollar fine, a 5 year term of supervised release and a $100 special assessment. Count II alleges that on or about October 4, 2012, the defendant distributed 50 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 10 years and up to life, a $10 million dollar fine, a 5 year term of supervised release and a $100 special assessment.Grand Jury Indicts Henry County Man Charged with Production, Possession of Child PornograpyRead the Press Release
Rock Island, Ill. – A federal grand jury has returned an indictment charging a Henry county man, Steven D. Ford, 27, of Cambridge, Ill., with production and possession of child pornography. Ford was previously arrested and charged by federal criminal complaint in July 2012. Ford has remained in federal law enforcement custody since his arrest; the court granted Ford’s request for psychiatric evaluation at a federal Bureau of Prisons facility. During a court hearing on Jan. 29, 2013, before U.S. Magistrate Judge Thomas J. Shields, Ford was determined mentally competent and remanded to the custody of the U.S. Marshals Service.
The indictment charges Ford with two counts of production of child pornography and one count of possession of child pornography. The crimes allegedly occurred from June 2011 to July 2012. The indictment also seeks forfeiture of Ford’s computer, cell phone and related equipment allegedly used in the offenses.
The charges were investigated by the U.S. Secret Service, the Henry County Sheriff’s Office and the Davenport Police Department. The case is being prosecuted by Assistant U.S. Attorney Kirk W. Schuler.
If convicted, the statutory penalty for each count of production of child pornography is a mandatory minimum 15 years to 30 years in prison. For possession of child pornography, the penalty is up to 20 years in prison. Each of the child pornography offenses carry terms of supervised release of up to life following any term of imprisonment.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute 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.
Grand Jury Indicts Henry County Man Charged with Production, Possession of Child PornographyRead the Press Release
Rock Island, Ill. – A federal grand jury has returned an indictment charging a Henry county man, Steven D. Ford, 27, of Cambridge, Ill., with production and possession of child pornography. Ford was previously arrested and charged by federal criminal complaint in July 2012. Ford has remained in federal law enforcement custody since his arrest; the court granted Ford’s request for psychiatric evaluation at a federal Bureau of Prisons facility. During a court hearing on Jan. 29, 2013, before U.S. Magistrate Judge Thomas J. Shields, Ford was determined mentally competent and remanded to the custody of the U.S. Marshals Service.
The indictment charges Ford with two counts of production of child pornography and one count of possession of child pornography. The crimes allegedly occurred from June 2011 to July 2012. The indictment also seeks forfeiture of Ford’s computer, cell phone and related equipment allegedly used in the offenses.
The charges were investigated by the U.S. Secret Service, the Henry County Sheriff’s Office and the Davenport Police Department. The case is being prosecuted by Assistant U.S. Attorney Kirk W. Schuler.
If convicted, the statutory penalty for each count of production of child pornography is a mandatory minimum 15 years to 30 years in prison. For possession of child pornography, the penalty is up to 20 years in prison. Each of the child pornography offenses carry terms of supervised release of up to life following any term of imprisonment.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute 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.
Grand Jury Charges Peoria Teacher with Enticing A Minor for SexRead the Press Release
Peoria, Ill. – A federal grand jury today returned an indictment charging a Peoria, Ill., teacher with enticement of a minor. Amanda May Ludwig, 28, a teacher at Manual High School in Peoria, Ill., was previously arrested and charged with the offense in a federal criminal complaint filed on Feb. 4, 2013.
Following Ludwig’s arrest, she appeared on Feb. 11, 2013, before U.S. District Judge Michael M. Mihm in Peoria. Ludwig was released from custody to a third-party custodian under home incarceration.
The indictment alleges that from about Aug. 4, 2012, to Jan 31, 2013, Ludwig used a cellular telephone to entice a minor, under the age of 18, to engage in sexual activity.
The charges were investigated by the Peoria Police Department with assistance from officers of Peoria School District 150. The case is being prosecuted by Assistant U.S. Attorney Thomas A. Keith.
If convicted, the statutory penalty for the offense is 10 years to life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute 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.
Grand Jury Charges Peoria Teacher with Enticing A Minor for SexRead the Press Release
Peoria, Ill. – A federal grand jury today returned an indictment charging a Peoria, Ill., teacher with enticement of a minor. Amanda May Ludwig, 28, a teacher at Manual High School in Peoria, Ill., was previously arrested and charged with the offense in a federal criminal complaint filed on Feb. 4, 2013.
Following Ludwig’s arrest, she appeared on Feb. 11, 2013, before U.S. District Judge Michael M. Mihm in Peoria. Ludwig was released from custody to a third-party custodian under home incarceration.
The indictment alleges that from about Aug. 4, 2012, to Jan 31, 2013, Ludwig used a cellular telephone to entice a minor, under the age of 18, to engage in sexual activity.
The charges were investigated by the Peoria Police Department with assistance from officers of Peoria School District 150. The case is being prosecuted by Assistant U.S. Attorney Thomas A. Keith.
If convicted, the statutory penalty for the offense is 10 years to life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute 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.
Golden Heart Executive Director Sentenced to Almost 4 Years in Federal Prison for ConspiracyRead the Press Release
In-home care operator admits to altering and falsifying company records
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that the founder and executive director of a St. Albans-based in-home care business was sentenced to 46 months in federal prison for conspiracy in connection with a health care fraud investigation. Shida S. Jamie, 63, owner of Golden Heart In Home Care, LLC (Golden Heart), previously pleaded guilty in October 2012. Jamie admitted that in or about August or early September 2009, she altered and falsified records and documents of Golden Heart. Golden Heart specialized in providing in-home care services to the elderly and disabled under a contract with Putnam Aging Inc., an authorized West Virginia Medicaid provider.
U.S. Attorney Booth Goodwin said, “Today’s sentencing underscores my office’s commitment to not only protect the nation’s health care services, but also to vigorously pursue the criminals who steal from it.”
Jamie admitted that she directed office staff to review the personnel files of caregivers who provided personal care services and directed staff members to place newly created and altered documents into personnel files that contained missing training documents. Jamie further admitted that she agreed with known Golden Heart employees to falsify signatures on training documents to make it appear as if caregivers had received training in compliance with the personal care program guidelines. Jamie also directed that those files be provided to Putnam Aging so that Putnam Aging would allow the Medicaid program to be billed for personal care services provided by Golden Heart.
Jamie also admitted that in late December and early January 2010, she learned about a West Virginia Department of Health and Human Resources Medicaid Fraud Control Unit (MFCU) investigation regarding transportation hours and mileage expenses that had been claimed by Golden Heart under the Aged and Disabled Waiver Program. Jamie admitted that she was aware that a known employee of Golden Heart lacked a valid drivers’ license and she agreed to alter existing records to make it appear as if another known employee with a valid driver’s license had performed the services. The altered records were then provided to a MFCU investigator. By the defendant’s actions, she intended to prevent the MFCU from learning that Golden Heart had claimed transportation and mileage expenses to which it was not entitled to be reimbursed under Medicaid.
The Court recognized that entitlement programs are a significant portion of the federal budget, funded by taxpayers. The Court also noted that health care fraud is one of the reasons the country is in financial trouble and today’s sentencing must serve as a deterrent to others who attempt to defraud entitlement programs. The Court further acknowledged that the government is not only justified but required to aggressively pursue such fraud, as they have done here.
In October 2012, the United States settled three civil cases that had been filed against Jamie and Golden Heart to recover losses associated with the fraud against Medicaid, to freeze assets to preserve them for restitution, and to forfeit assets derived from the proceeds of the fraud. The civil settlement resolves all three civil actions by recovering all known assets of Jamie and Golden Heart which represent proceeds of the fraud. The money derived from the settlement will be used to make restitution to Medicaid for the losses it sustained from Jamie and Golden Heart’s fraudulent conduct.
The United States Department of Health and Human Services, the Federal Bureau of Investigation, the West Virginia State Police and the MFCU conducted the investigation. Assistant United States Attorneys Meredith George Thomas, Philip Wright and Eumi Choi handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
Garland Man Sentenced to 20 Years in Federal Prison for Downloading Child Pornography from the InternetRead the Press Release
Defendant Downloaded Images of Children as Young as Two-Years-Old
DALLAS — Isaac Heredia Luciano, 25, of Garland, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 20 years in federal prison and a 10-year term of supervised release, following his guilty plea in November 2012 to an Information charging one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Luciano has been in federal custody since he surrendered to authorities in October 2012 on a related federal charge outlined in a criminal complaint.
According to documents filed in the case, a detective with the Garland Police Department who was working in an undercover capacity and using peer-to-peer file sharing program to investigate the distribution of child pornography, identified a computer that was sharing images of child pornography. In fact, on various dates from September 2011 until August 2012, the detective downloaded 27 images and videos of child pornography from that computer, including videos involving children as young as two-years-old, who could be heard on the videos crying and yelling “mommy.”
In late August 2012, a search warrant was executed at Luciano’s home in Garland and computers and related storage equipment were seized. Luciano admitted that he had been downloading child pornography, and in fact, had downloaded child pornography the previous day. He explained that he had a “sickness” with child pornography, admitted that videos he downloaded ranged from “diaper porn” to toddlers to teens, and that he possessed videos that included bondage and other sadistic acts involving minors.
This matter 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 U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the Garland Police Department’s Internet Crimes Against Children (ICAC) Task Force and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.
Former U.S. Corrections Officer Pleads Guilty to Theft of Government PropertyRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a former correctional officer at the United States Penitentiary-Lewisburg pleaded guilty today to a charge of theft of government property in federal court in Williamsport before U.S. District Court Judge Christopher C. Conner.
According to United States Attorney Peter J. Smith, a criminal Information was filed in January 2013 charging Fred Hagenbuch, age 52, of Danville, Pennsylvania, with theft of government property. The property stolen was from the Federal Correctional Complex at Allenwood and included electrical conduit, fence post, and mesh fencing valued at approximately $1,545. At the time of the theft in December 2010, Hagenbuch was employed as a Senior Officer Specialist at the Lewisburg Penitentiary.
This case was investigated by the U.S. Department of Justice's Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney William Simmers.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 10 years' imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Officials and Broker of Peanut Corporation of America Indicted Related to Salmonella-Tainted Peanut ProductsRead the Press Release
A 76-count indictment was unsealed yesterday charging four former officials of the Peanut Corporation of America (PCA) and a related company with numerous charges relating to salmonella-tainted peanuts and peanut products, the Justice Department announced today. Stewart Parnell, 58, of Lynchburg, Va.; Michael Parnell, 54, of Midlothian, Va.; and Samuel Lightsey, 48, of Blakely, Ga., have been charged with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy. Stewart Parnell, Lightsey and Mary Wilkerson, 39, of Edison, Ga., were also charged with obstruction of justice.
Also yesterday, an information filed against Daniel Kilgore, 44, of Blakely was unsealed. On the same day that charges against Kilgore were filed, he pleaded guilty to that information, which charged him with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy.
The investigation into the activity at PCA began in 2009, after the Food and Drug Administration and the U.S. Centers for Disease Control and Prevention traced a national outbreak of salmonella to a PCA plant in Blakely as the likely source. As alleged in the indictment, the Blakely plant was a peanut roasting facility where PCA roasted raw peanuts and produced granulated peanuts, peanut butter, and peanut paste; PCA sold these peanut products to its customers around the country.
The charging documents charge that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to manufacture and ship salmonella-contaminated peanuts and peanut products, and in so doing misled PCA customers. As alleged in the indictment, those customers ranged in size from small, family-owned businesses to global, multibillion-dollar food companies.
“When those responsible for producing or supplying our food lie and cut corners, as alleged in the indictment, they put all of us at risk,” said Stuart F. Delery, who heads the Justice Department’s Civil Division. “The Department of Justice will not hesitate to pursue any person whose criminal conduct risks the safety of Americans who have done nothing more than eat a peanut butter and jelly sandwich.”
Although PCA is now no longer in business, the allegations against each of the defendants arise from his or her conduct while at PCA and a related company. The following allegations are set forth in the indictment: Stewart Parnell was an owner and president of PCA; Michael Parnell, who worked at P.P. Sales, was a food broker who worked on behalf of PCA; Lightsey was the operations manager at the Blakely plant from on or about July 2008 through February 2009; and Wilkerson held various positions at the Blakely plant – receptionist, office manager and quality assurance manager – from on or about April 2002 through February 2009. As charged in the information, Kilgore served as operations manager of the PCA plant in Blakely from on or about June 2002 through May 2008.
“We all place a great deal of trust in the companies and individuals who prepare and package our food, often times taking it for granted that the public’s health and safety interests will outweigh individual and corporate greed,” said Michael Moore, U.S. Attorney for the Middle District of Georgia. “Unfortunately and as alleged in the indictment, these defendants cared less about the quality of the food they were providing to the American people and more about the quantity of money they were gathering while disregarding food safety. This investigation was complex and extensive, and I credit the cooperation of our federal agencies with not only making sure that the cause of this outbreak was uncovered and the people responsible called to account, but also with working hard every day to make sure that parents across the country can feel confident that the food they are feeding their children is safe.”
The charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in several schemes by which they defrauded PCA customers about the quality and purity of their peanut products and specifically misled PCA customers about the existence of foodborne pathogens, most notably salmonella, in the peanut products PCA sold to them. As the charging documents allege, the members of the conspiracy did so in several ways – for example, even when laboratory testing revealed the presence of salmonella in peanut products from the Blakely plant, Stewart Parnell, Michael Parnell, Lightsey and Kilgore failed to notify customers of the presence of salmonella in the products shipped to them.
In addition, the charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to fabricate certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including results concerning the presence or absence of pathogens. As alleged in the charging documents, on several occasions these four defendants participated in a scheme to fabricate COAs stating that shipments of peanut products were free of pathogens when, in fact, there had been no tests on the products at all or when the laboratory results showed that a sample tested positive for salmonella.
After the salmonella outbreak that gave rise to this investigation, FDA inspectors visited the plant several times in January 2009. According to the indictment, the inspectors asked specific questions about the plant, its operations, and its history, and, in several instances, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to these questions.
“The charges announced today show that if an individual violates food safety rules or conceals relevant information, we will seek to hold them accountable,” said FDA Commissioner Margaret A. Hamburg, M.D. “The health of our families and the safety of our food system is too important to be thwarted by the criminal acts of any individual or company.”
Stewart Parnell, Michael Parnell, and Samuel Lightsey are each charged with two counts of conspiracy; multiple counts of introducing adulterated food into interstate commerce with the intent to defraud; multiple counts of introducing misbranded food into interstate commerce with the intent to defraud; multiple counts of interstate shipment fraud; and multiple counts of wire fraud. Stewart Parnell, Lightsey and Wilkerson are also charged with multiple counts of obstruction of justice.
Kilgore pleaded guilty to one count of conspiracy to commit fraud, one count of conspiracy to introduce adulterated and misbranded food into interstate commerce, eight counts of introducing adulterated food into interstate commerce with the intent to defraud, six counts of introducing misbranded food into interstate commerce with the intent to defraud, eight counts of interstate shipment fraud, and five counts of wire fraud.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “The FBI was brought in to this matter to provide additional resources and expertise to a complex and very serious investigation. We fully understand the victim impact as a result of this salmonella outbreak and will be asking to hear from other possible victims in this matter.”
Individuals who feel that they may have been affected by or have become ill from tainted PCA products, and businesses that purchased products that were recalled as a result of the outbreak, should visit the following website for further details: https://forms.fbi.gov/pca-salmonella-tainted-product-case/
The case is being prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Consumer Protection Branch of the Civil Division of the Department of Justice and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia. Marietta Geckos, formerly a Trial Attorney with the Consumer Protection Branch, also worked on the prosecution. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations and the FBI.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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Kilgore Information
PCA Indictment
Principal Deputy Assistant Attorney General Stuart F. Delery Speaks at the PCA Pen and PadFormer Officials and Broker of Peanut Corporation of America Indicted Related to Salmonella-Tainted Peanut ProductsRead the Press Release
Allegations Include Mail and Wire Fraud, Introduction of Adulterated and Misbranded Food into Interstate Commerce with Intent to Defraud or Mislead, and ConspiracyWASHINGTON – A 76-count indictment was unsealed yesterday charging four former officials of the Peanut Corporation of America (PCA) and a related company with numerous charges relating to salmonella-tainted peanuts and peanut products, the Justice Department announced today. Stewart Parnell, 58, of Lynchburg, Va.; Michael Parnell, 54, of Midlothian, Va.; and Samuel Lightsey, 48, of Blakely, Ga., have been charged with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy. Stewart Parnell, Lightsey and Mary Wilkerson, 39, of Edison, Ga., were also charged with obstruction of justice.
Also yesterday, an information filed against Daniel Kilgore, 44, of Blakely was unsealed. On the same day that charges against Kilgore were filed, he pleaded guilty to that information, which charged him with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy.
The investigation into the activity at PCA began in 2009, after the Food and Drug Administration and the U.S. Centers for Disease Control and Prevention traced a national outbreak of salmonella to a PCA plant in Blakely as the likely source. As alleged in the indictment, the Blakely plant was a peanut roasting facility where PCA roasted raw peanuts and produced granulated peanuts, peanut butter, and peanut paste; PCA sold these peanut products to its customers around the country.
The charging documents charge that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to manufacture and ship salmonella-contaminated peanuts and peanut products, and in so doing misled PCA customers. As alleged in the indictment, those customers ranged in size from small, family-owned businesses to global, multibillion-dollar food companies.
“When those responsible for producing or supplying our food lie and cut corners, as alleged in the indictment, they put all of us at risk,” said Stuart F. Delery, who heads the Justice Department’s Civil Division. “The Department of Justice will not hesitate to pursue any person whose criminal conduct risks the safety of Americans who have done nothing more than eat a peanut butter and jelly sandwich.”
Although PCA is now no longer in business, the allegations against each of the defendants arise from his or her conduct while at PCA and a related company. The following allegations are set forth in the indictment: Stewart Parnell was an owner and president of PCA; Michael Parnell, who worked at P.P. Sales, was a food broker who worked on behalf of PCA; Lightsey was the operations manager at the Blakely plant from on or about July 2008 through February 2009; and Wilkerson held various positions at the Blakely plant – receptionist, office manager and quality assurance manager – from on or about April 2002 through February 2009. As charged in the information, Kilgore served as operations manager of the PCA plant in Blakely from on or about June 2002 through May 2008.
“We all place a great deal of trust in the companies and individuals who prepare and package our food, often times taking it for granted that the public’s health and safety interests will outweigh individual and corporate greed,” said Michael Moore, U.S. Attorney for the Middle District of Georgia. “Unfortunately and as alleged in the indictment, these defendants cared less about the quality of the food they were providing to the American people and more about the quantity of money they were gathering while disregarding food safety. This investigation was complex and extensive, and I credit the cooperation of our federal agencies with not only making sure that the cause of this outbreak was uncovered and the people responsible called to account, but also with working hard every day to make sure that parents across the country can feel confident that the food they are feeding their children is safe.”
The charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in several schemes by which they defrauded PCA customers about the quality and purity of their peanut products and specifically misled PCA customers about the existence of foodborne pathogens, most notably salmonella, in the peanut products PCA sold to them. As the charging documents allege, the members of the conspiracy did so in several ways – for example, even when laboratory testing revealed the presence of salmonella in peanut products from the Blakely plant, Stewart Parnell, Michael Parnell, Lightsey and Kilgore failed to notify customers of the presence of salmonella in the products shipped to them.
In addition, the charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to fabricate certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including results concerning the presence or absence of pathogens. As alleged in the charging documents, on several occasions these four defendants participated in a scheme to fabricate COAs stating that shipments of peanut products were free of pathogens when, in fact, there had been no tests on the products at all or when the laboratory results showed that a sample tested positive for salmonella.
After the salmonella outbreak that gave rise to this investigation, FDA inspectors visited the plant several times in January 2009. According to the indictment, the inspectors asked specific questions about the plant, its operations, and its history, and, in several instances, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to these questions.
“The charges announced today show that if an individual violates food safety rules or conceals relevant information, we will seek to hold them accountable,” said FDA Commissioner Margaret A. Hamburg, M.D. “The health of our families and the safety of our food system is too important to be thwarted by the criminal acts of any individual or company.”
Stewart Parnell, Michael Parnell, and Samuel Lightsey are each charged with two counts of conspiracy; multiple counts of introducing adulterated food into interstate commerce with the intent to defraud; multiple counts of introducing misbranded food into interstate commerce with the intent to defraud; multiple counts of interstate shipment fraud; and multiple counts of wire fraud. Stewart Parnell, Lightsey and Wilkerson are also charged with multiple counts of obstruction of justice.
Kilgore pleaded guilty to one count of conspiracy to commit fraud, one count of conspiracy to introduce adulterated and misbranded food into interstate commerce, eight counts of introducing adulterated food into interstate commerce with the intent to defraud, six counts of introducing misbranded food into interstate commerce with the intent to defraud, eight counts of interstate shipment fraud, and five counts of wire fraud.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “The FBI was brought in to this matter to provide additional resources and expertise to a complex and very serious investigation. We fully understand the victim impact as a result of this salmonella outbreak and will be asking to hear from other possible victims in this matter.”
The PCA indictment can be viewed at: www.justice.gov/iso/opa/resources/61201322111426350488.pdf.
Kilgore’s filed information can be viewed at: www.justice.gov/iso/opa/resources/22820132211141246302.pdf.
Individuals who feel that they may have been affected by or have become ill from tainted PCA products, and businesses that purchased products that were recalled as a result of the outbreak, should visit the following website for further details: https://forms.fbi.gov/pca-salmonella-tainted-product-case/
The case is being prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Consumer Protection Branch of the Civil Division of the Department of Justice and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia. Marietta Geckos, formerly a Trial Attorney with the Consumer Protection Branch, also worked on the prosecution. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations and the FBI.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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Former Director of Navajo Economic Development Project Pleads Guilty to Evading Federal TaxesRead the Press Release
ALBUQUERQUE – Hak Ghun, 62, of Durango, Colo., pled guilty this morning to a federal tax evasion charge under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Ghun will be sentenced to prison for a period of 12 to 18 months. He also will be required to pay $249,567 in restitution to the Internal Revenue Service (IRS).
Ghun was charged on April 10, 2012, in a three-count indictment with evading an aggregate of $367,809 in federal taxes during tax years 2005, 2006 and 2007. According to the indictment, Ghun was the chief executive officer of BCDS Manufacturing, Inc. (BCDS), a manufacturing company located in Shiprock, N.M. In 2003 and 2004, the Navajo Nation invested economic development funds in BCDS and became the majority owner of the company, and in 2006, obtained a $2.2 million loan for the purpose of expanding the BCDS facility in Shiprock. The indictment alleged that, between 2005 and 2007, Ghun used BCDS funds to pay his personal expenses and evaded his personal tax obligations on those funds by concealing his conduct from BCDSDs corporate accountant and by filing false corporate tax returns on behalf of BCDS.
During today’s proceedings, Ghun entered a guilty plea to Count 2 of the indictment charging him with evading federal income taxed in 2006. In his plea agreement, Ghun admitted that, during 2005, 2006 and 2007, he was the chief operating officer of BCDS, a company that sought military procurement contacts as a source of economic development for the Navajo Nation, and had access to the company’s bank accounts. Ghun also admitted withdrawing funds from BCDS’s bank accounts and spending a significant portion of the funds for himself. Ghun used the funds to make support payments to his ex-wife and paying for luxury cars, hotels stays and casino gambling. Ghun acknowledged that the funds he misused were taxable as personal income and that he failed to pay taxes on that income.
More specifically, Ghun admitted receiving gross income of $207,726 in calendar year 2005 and willfully evading approximately $29,197 in federal income taxes. He also admitted receiving gross income exceeding $620,361 in calendar year 2006 and willfully evading approximately $145,156 in federal income taxes, and receiving gross income exceeding $251,435 in taxable income in 2007 and evading approximately $65,214 in taxes.
The case was investigated by the IRS, Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.
Former Connecticut Resident Sentenced to 37 Months in Prison for Mortgage Fraud OffensesRead the Press Release
February 21, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that ERIC S. SCHERZ, 44, of Stuart, Fla., formerly of Barkhamsted, was sentenced yesterday by United States District Judge Vanessa L. Bryant in Hartford to 37 months of imprisonment, followed by three years of supervised release, for mortgage fraud offenses.
According to court documents and statements made in court, in October 2007, SCHERZ secured a $417,000 mortgage loan to finance the purchase of a property in Barkhamsted. In April 2008, SCHERZ created a fraudulent release of mortgage on the property stating that the lender, a fictitious company SCHERZ created, had received full payment of the loan. SCHERZ subsequently filed the fraudulent release of mortgage with the Town of Barkhamsted.
SCHERZ stopped making payments on his mortgage in March 2009 but, in April 2009, he made three fraudulent payments via wire transfer to his mortgage lender that he knew would be and were, in fact, reversed for insufficient funds.
In May 2009, SCHERZ sold the Barkhamsted property for $299,000 to a buyer who relied on the fraudulent release of mortgage as being genuine. At the time of the sale, SCHERZ’s unpaid principal balance on his mortgage was $410,718.56. SCHERZ did not use any of the $299,000 from the fraudulent sale to his pay his outstanding mortgage debt.
On January 6, 2012, SCHERZ waived his right to indictment and pleaded guilty to three counts of wire fraud.
SCHERZ has previously served a 70-month federal term of imprisonment for his role in a mortgage fraud scheme in Florida in the 1990s.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Michael J. Gustafson.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former California Assemblyman Admits Defrauding Banks Out of $193,661 by Falsely Claiming to Be Identity Theft VictimRead the Press Release
LOS ANGELES – Carl Edward Washington, a former California Assemblyman who represented the state’s 52nd district, has agreed to plead guilty to federal bank fraud charges, admitting that he bilked financial institutions by falsely claiming to be the victim of identity theft.
As part of a plea agreement filed yesterday in United States District Court, Washington agreed to plead guilty to three counts of bank fraud for causing losses of $193,661 to financial institutions that include Farmers and Merchants Bank, First City Credit Union, and LA Financial Credit Union.
Washington, 47, a resident of Paramount who currently is employed as a division chief with the Los Angeles County Probation Department, admitted in the plea agreement that during a lengthy scheme that ran through the summer of 2011, he defrauded the three banks by concealing several unpaid debts – debts that he simply stopped paying – and his overall lack of creditworthiness.
Washington was able to hide his bad debts by filing a series of bogus police reports with the Los Angeles County Sheriff’s Department in which he falsely claimed to be the victim of identity theft. After filing the false police reports, Washington sent copies of the reports to the credit reporting agency Experian and demanded that the information relating to the bad debts be removed from his credit report. Once Experian removed this data from his credit report, Washington submitted applications for new credit cards to the victim banks, applications that failed to disclose all of his outstanding debts and the fact that he had negative information reported by other financial institutions removed from his credit report. Once the victim banks issued new credit cards to Washington, he purchased goods and services. But, after making several payments, Washington contacted Experian and, claiming that he was the victim of identity theft, requested that information related to the new credit cards be removed from his credit report. Washington admitted filing five false police reports with LASD.
Washington’s scheme was exposed when he attempted to refinance two auto loans through LA Financial. When the credit union examined Washington’s credit report, it discovered that the auto loans it had previously issued were not showing up on his credit report. LA Financial subsequently learned from Experian that Washington disputed he had earlier sought to refinance his auto loans and that he claimed to be a victim of identity theft. Because LA Financial knew Washington’s claims were false, it froze Washington’s credit card account and reported him to authorities.
Washington was elected to the California legislature in 1996, and he served in the Assembly until 2002. Washington later went to work for the Los Angeles County Probation Department, where he ran a unit called Intergovernmental Relations and Legislative Affairs. Washington has been on administrative leave from the Probation Department since his arrest in this case in September.
Washington is scheduled to enter his guilty pleas on Monday before United States District Judge S. James Otero. Once he pleads guilty, Washington will face a statutory maximum penalty of 30 years in federal prison for each of the three bank fraud counts. However, the parties have agreed that the United States Sentencing Guidelines call for a term of imprisonment of one year to 18 months. The actual sentence will be determined by Judge Otero later this year.
The case against Washington was investigated by the Federal Bureau of Investigation’s Public Corruption Squad.
Release No. 13-025