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14 February 2013
Rapid City Man Pleads Guilt to Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeffrey M. Chips, a/k/a Jeffrey M. Chipps, age 23, of Rapid City, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 12, 2013 and pled guilty to Count II of the Indictment that charged him with Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years.
The conviction stems from an incident on the 4th day of May, 2012 when the Defendant was riding in a car in Mission, South Dakota. The vehicle came upon two women walking along the road, the vehicle stopped and two occupants exited and confronted the victim. A fight ensued and Chipps then exited the vehicle and joined in the assault. As a result, the victim sustained a broken jaw, among other injuries.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for May 6, 2013. The Defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Polk County Man Sentenced to More Than 5 Years in Federal Prison for Tax FraudRead the Press Release
Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Jermaine Lee Lippett to 5 years and five months in federal prison for conspiracy, theft of government funds, and aggravated identity theft. Lippett was also ordered to forfeit $96,805.12 and to pay restitution to the Internal Revenue Service in the amount of $96,553.12. Lippett pleaded guilty on November 2, 2012.
According to court documents, Lippett orchestrated a scheme to convert the proceeds of fraudulently-acquired federal tax refund checks through legitimate accounts held at the MidFlorida Federal Credit Union. Lippett, acting in complicity with several account holders and a credit union teller, caused fraudulent tax refund checks to be negotiated through legitimate accounts. He then shared the proceeds with the teller and account holders.
This case was investigated by the United States Postal Inspection Service, the Florida Department of Law Enforcement, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Robert Monk.
Pine Ridge Man Indicted for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man has been indicted by a federal grand jury for allegedly having sexual contact with a 13 year old girl on November 6, 2012.
Archie Backward, Jr., age 21, was indicted by a federal grand jury on January 23, 2013 for two counts of abusive sexual contact with a minor and one count of abusive sexual contact without permission. Backward appeared before United States Magistrate Judge Veronica L. Duffy on February 1, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction for each count is 2 years' imprisonment and a $250,000 fine. The charges are merely accusations and Backward is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Backward was remanded to the custody of the U.S. Marshal. A trial date has been set for April 9, 2013. ###Pine Ridge Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man has been indicted by a federal grand jury for allegedly assaulting his elderly mother at Pine Ridge on August 8, 2010.
Reginald Charles Big Crow, age 52, was indicted by a federal grand jury on December 21, 2010 for Assault Resulting in Serious Bodily Injury. Big Crow appeared before U.S. Magistrate Judge Veronica L. Duffy on February 4, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Big Crow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Big Crow was remanded to the custody of the U.S. Marshal. A trial date has been set for April 9, 2013.
# # #Ohio Man Charged with Violating Clean Water Act by Discharing Brine and Drilling Mud into Mahoning RiverRead the Press Release
A Poland, Ohio, man was charged in federal court with one count of violating the Clean Water Act, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.
Ben Lupo, 62, is accused of directing an employee to illegally discharge brine and oil-based drilling mud into a stormwater drain which flowed into an unnamed tributary of the Mahoning River and ultimately into the Mahoning River near Youngstown.
The conduct took place on Jan. 31, 2013, according to an affidavit filed in U.S. District Court.“Those of us from Northeast Ohio know the legacy of dumping industrial waste into our waterways,” Dettelbach said. “Whether our water flows south to the Ohio River or north to the Great Lakes, protecting and preserving clean and safe water remains a major priority of the my office and the Department of Justice.”
ODNR Director Jim Zehringer said: “This charge should serve as a warning to anyone that places their personal interests ahead of the public’s safety. ODNR will continue to aggressively pursue and seek prosecution of any business or individual that blatantly disregards the laws we have in place to protect Ohio’s communities and natural resources.”
“Knowingly polluting the waters of our state is a violation of the Clean Water Act and we will pursue criminal prosecution of these illegal actions to make sure we are able to protect the health and safety of the public,” Ohio EPA Director Scott Nally said. “Ohio EPA and our state partners will not tolerate the flagrant violation of Ohio’s environmental laws and companies who violate these lawsare jeopardizing their ability to conduct business in the state and will be held accountable.”
Ohio Attorney General Mike DeWine said: “Ohio’s waters must be protected, for the health and safety of its citizens and the state’s wildlife. We will not only assist with the federal water pollution prosecution in this case, we will also be working closely with the Ohio Department of Natural Resources to fully address all of the other violations through civil or criminal enforcement.”
“As the nation increases its use of natural gas, exploration companies must ensure that the waste water resulting from the drilling process is treated and disposed of safely and legally,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “The defendant is alleged to have knowingly and repeatedly directed the discharge of stored brine and oil-based drilling mud into a stormwater drain which ultimately flowed into the Mahoning River. This case demonstrates that if companies and their senior managers try to save money by circumventing environmental laws, they will be vigorously prosecuted.”
According to an affidavit filed in federal court:
Hardrock Excavating LLC is owned by Lupo and located at 2761 Salt Springs Road in Youngstown. The company provides services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud. There are approximately 58 mobile storage tanks at the facility and each holds approximately 20,000 gallons.
The Ohio Department of Natural Resources received a call from an anonymous person who stated that on the night of Jan. 31, 2013, someone would be illegally discharging wastewater from the Hardrock facility.
Ohio DNR inspectors arrived and found a hose, connected to a storage tank, discharging wastewater into a stormwater drain at the facility. Inspectors took a sample of the wastewater, which was black in color.
Ohio EPA personnel arrived at the facility on Feb. 1 and found that the unnamed tributary had puddles of oil throughout its length, from where the stormwater drained to the Mahoning River, approximately one mile away. Oil and an oily sheen were also visible in the Mahoning River.
That day, an EPA representative spoke with Lupo about the discharge into the storm drain. Lupo admitted he directed a Hardrock employee to discharge the contents of the storage drain into the stormwater drain, and further admitted that he directed discharge from a storage tank a total of six times, according to the affidavit.
Lupo later told EPA and DNR personnel that he directed a Hardrock employee to drain storage tanks at Hardrock into the nearby stormwater drain six times over the previous six months, and that Lupo was the one who “gave the word” for the storage tanks to be discharged, according to the affidavit.
On Feb. 12, a Hardrock employee stated that the discharges began in November 2012 at the direction of Lupo and that the employee was aware of at least 20 discharges into the stormwater drain. The employee further stated that Lupo directed the employee , if questioned by authorities, to state that the discharges were limited to a total of four to six times , according to the affidavit.
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
The statutory maximum for violating the Clean Water Act is three years in prison, a $250,000 fine and one year of supervised release.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
North Dakota Woman Charged with Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Yates, North Dakota woman has been indicted by a federal grand jury.
April Pretends Eagle, age 30, was indicted by a federal grand jury on October 16, 2012 for Distribution of a Controlled Substance to a Person Under the Age of 21 and Possession with Intent to Distribute a Controlled Substance. Pretends Eagle appeared before U.S. Magistrate Judge Mark A. Moreno on February 8, 2013 and pled not guilty to the indictment. In addition to a $100 special assessment, the maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 4 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution may also be ordered. The charges are merely accusations and Pretends Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Save Trails Drug Enforcement Task Force and Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case. Pretends Eagle was remanded to the custody of the US Marshal. A trial date has been set for April 1, 2013.
Noah Contractor, Richard Hall, Sentenced for Conspiracy and Theft from A Program Receiving Federal FundsRead the Press Release
RICHARD HALL, age 47, a resident of Harvey, Louisiana, was sentenced today in federal court by U.S. District Court Judge Jay C. Zainey, to 24 months imprisonment after pleading guilty to one count of conspiracy and one count of theft from a program receiving federal funds, the New Orleans Affordable Homeownership (NOAH) program, announced U. S. Attorney Dana J. Boente. The Court in sentencing HALL, granted the Government’s motion for an upward variance from the sentencing guidelines. In addition to the term of imprisonment, Judge Zainey imposed three 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. The defendant was ordered to pay restitution in excess of $116,000 and fined $30,000.
According to court documents, HALL, a contractor for New Orleans Affordable Homeownership (NOAH), engaged in conspiracy to steal and theft from a program receiving federal funds provided by the U. S. Department of Housing and Urban Development to the City of New Orleans in the form of annual Community Development Block Grants (CDBG), designed to support home remediation work on residences located in New Orleans, Louisiana, following Hurricane Katrina. HALL admitted to conspiring to steal such funds and being paid for multiple home remediations he did not perform. HALL received tens of thousands of dollars in funds that he was not entitled to because either he did not perform remediation work such as gutting, boarding and grass cutting; he had already been paid for work performed on residences, and subsequently received and accepted payment again for the same work; or he collected double payments for work which he did not perform.
The case was investigated by the Federal Bureau of Investigation, the U. S. Department of Housing and Urban Development, Office of Inspector General, the U. S Department of Homeland Security, Office of Inspector General, and the Internal Revenue Service. The case was prosecuted by First Assistant United States Attorney Fred P. Harper, Jr.Nicholson Man Charged with ProducingRead the Press Release
Child Pornography
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 33-year-old Nicholson resident has been charged with producing and attempting to produce child pornography.
According to United States Attorney Peter J. Smith, an Information was filed Wednesday alleging that Alfred Kenvyn persuaded a nine-year-old girl to engage in sexually explicit conduct on a web cam between July and September 2012.
The charge against Kenvyn resulted from an investigation by the Federal Bureau of Investigation and the Blooming Grove, New York Police Department.
In a plea agreement that was also filed in the case, Kenvyn has agreed to plead guilty to the charge and prosecutors have agreed to recommend that Kenvyn be sentenced to 13 years in prison to be followed by supervised release for life.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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.
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.
New York Man Sentenced to 14 Years in Prison for Etters Bank RobberyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Willie Elmore, age 43, of Brooklyn, New York was sentenced Wednesday by U.S. District Court Judge Christopher C. Conner to a 168-month (14 years) term of imprisonment for the armed robbery of the Fulton Bank in Etters, Pennsylvania. Judge Conner included an enhancement to the prison sentence for obstruction of justice.
Elmore was further ordered to pay $13,781 in restitution.
According to United States Attorney Peter J. Smith, on September 16, 2011, the Fulton Bank located at 2220 Old Trail Road, Etters, Pennsylvania, Pennsylvania, was robbed at gunpoint and over $13,000 was stolen from the bank.
Elmore, and co-defendant, Tristan Green, of York, Pennsylvania, were both indicted in December 2011 on charges of armed bank robbery and possession of a firearm in furtherance of a crime of violence.
In August 2012, following a four-day trial, Elmore and Green were convicted for the armed robbery of the Fulton Bank.
Green is scheduled to be sentenced on April 1, 2013.
This case was investigated by the Federal Bureau of Investigation, Capital City Safe Streets Task Force; Pennsylvania State Police; York City Police Department; Newberry Township Police Department; Springettsbury Township Police Department; Hellam Township Police Department; Northern York County Regional Police Department and the York County District Attorney’s Office Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.New Castle Man Indicted for Using Facebook to Threaten Government Witness in Federal Narcotics Trafficking and Murder-For-Hire TrialRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that a federal grand jury sitting in Delaware returned an indictment charging John Boney, age 35, of New Castle, Delaware with witness tampering and interstate transportation of threats, in violation of Title 18, United States Code, Sections 875 and 1512.
If convicted of the charges contained in the indictment returned today, John Boney faces a maximum sentence of 20 years in prison, a $250,000 fine, and 3 years of supervised release following any prison sentence.
According to the indictment and court documents filed in the case, John Boney was arrested on January 24, 2013 in the U.S. Courthouse in Wilmington after he used Facebook to threaten a government witness scheduled to testify that day in a federal criminal trial. In that federal criminal trial, John Boney’s brother, William Boney, age 39, of Pike Creek, was charged with narcotics trafficking, attempted murder by retaliating against an informant, and soliciting another person to retaliate against an informant by committing murder.
The trial of William Boney stemmed from his November 2010 attempt to broker a seven-kilogram cocaine deal worth approximately $217,000 at his residence in Delaware. Drug Enforcement Administration (“DEA”) agents intervened before the deal could be completed, and William Boney, along with four other individuals, was arrested. While attempting to cooperate with DEA agents against other narcotics traffickers, William Boney plotted the murder of a confidential informant who had notified DEA agents about the November 2010 cocaine deal. During meetings with a person he solicited to carry out the murder, William Boney discussed killing the confidential informant or the informant’s young child.
John Boney was present in the U.S. Courthouse during William Boney’s criminal trial, which began in the Wilmington federal building on January 22, 2013. On the morning of January 24, 2013, a government witness arrived at the courthouse to testify, but refused to enter the courtroom. The government witness informed law enforcement agents that John Boney sent a message to the witness’s brother on Facebook threatening to kill the witness if he testified against William Boney. In the message, John Boney wrote: “Snitches get laid in ditches right isn’t that the street rule and your bro is a state witness against my bro after he owes him 30 grand.” John Boney ended the message by writing, “if he testifies against someone who helped him out I’m sorry for what happens to him.”
After learning of the threat, federal agents removed John Boney from the courtroom in which William Boney’s trial was being held, interviewed him, and seized an Android smartphone that John Boney admitted using to post the threat on Facebook. John Boney was arrested and remains in federal custody.
On January 29, 2013, the jury returned guilty verdicts against William Boney on charges of conspiracy to possess with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A), and 846; attempted murder by retaliating against an informant, in violation of Title 18, United States Code, Section 1513(a)(1)(B); and soliciting another person to retaliate against an informant by committing murder, in violation of Title 18, United States Code, Sections 1513(a)(1)(B) and 373.
This case is being investigated by U.S. Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys Jamie M. McCall and Edward J. McAndrew.
Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
Morris County, N.J., Man Sentenced to 41 Months in Prison for Possession of Child PornographyRead the Press Release
TRENTON, N.J. – A Morris County, N.J., man was sentenced today to 41months in prison for possessing child pornography on two laptop computers at his residence, U.S. Attorney Paul J. Fishman announced.
Steve Goni, 37, of Mine Hill, N.J., previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an Information charging him with possession of child pornography. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in Court:
In June 2011, law enforcement agents executed a search warrant for Goni’s residence. They determined that Goni’s laptop computers contained multiple images of child pornography, which appeared to have been downloaded from the Internet. Goni possessed more than 600 images and multiple videos depicting the sexual abuse of children. When interviewed by law enforcement, Goni admitted accessing websites offering child pornography, observing child pornography on those websites, and admitted that child pornography was downloaded onto his computer.
In addition to the prison term, Judge Shipp also sentenced Goni to five years of supervised release, and ordered him to pay $4,000 in restitution to victims of his offense. Goni also must register as a sex offender.U.S. Attorney Fishman credited special agents of ICE Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office criminal division in Newark.
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Defense counsel: John C. Whipple Esq., Chatham, N.J.Montana Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Missoula, Montana man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Rodney A. Stevens, age 38, was indicted by a federal grand jury on August 15, 2012 for failing to pay over $27,942.00 in past due child support. He appeared before US Magistrate Judge William D. Gerdes on February 8, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is two years’ imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing. The charge is merely an accusation and he is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case. Stevens was released on bond pending trial. A trial date has not been set.
Mississippi Man Pleads Guilty to Federal Narcotics ChargesRead the Press Release
Jackson, Miss. – John D. Anderson, 48, of Lake, Mississippi, pled guilty in U.S. District Court to conspiracy to possess with intent to distribute more than five grams of methamphetamine, U.S. Attorney Gregory K. Davis announced. Anderson will be sentenced on April 30, 2013, and a faces a maximum penalty of 40 years in prison and a $5 million fine.
This case is the result of an extensive investigation, dubbed “Operation Brusha”, targeting illegal narcotics distribution in Scott County, Mississippi. The investigation was conducted by the Mississippi Bureau of Narcotics, the Bureau of Alcohol, Tobacco Firearms and Explosives and Homeland Security Investigations. Assisting agencies included the Mississippi Highway Patrol, Mississippi Bureau of Investigation, Forest Police Department, and Scott County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Erin O. Chalk.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Mission Woman Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota woman convicted of Involuntary Manslaughter was sentenced on February 12, 2013 by U.S. District Judge Roberto A. Lange.
Kristen Bear Heels, age 29, was sentenced to 6 months in custody, 6 months home confinement, 18 months of supervised release, and a $100 special assessment to the Victim Assistance Fund. Bear Heels was indicted by a federal grand jury on September 19, 2012, and pled guilty to the charge on November 27, 2012.
The conviction stems from an incident that took place on May 11, 2012 when Bear Heels asphyxiated the victim by overlaying. The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers. Bear Heels must self-report to the custody U.S. Marshal on February 15, 2013.
Mission Woman Pleads Guilty to TheftRead the Press Release
United States Attorney Brendan V. Johnson announced that Tisha Leader Charge, age 33, of Mission, South Dakota appeared before U.S. Magistrate Judge Mark A. Moreno on February 8, 2013 and pled guilty to Counts II and III of the Indictment that charged her with Theft in Connection with Health Care and Larceny. In addition to a $25 special assessment on each count, the maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine, or both; 1 year of supervised release and an additional year of supervised release upon revocation. Restitution may also be imposed.
The charges stem from an incident wherein Leader Charge, on or about the 1st day of January 2012 and the 30th day of September 2012, unlawfully took and carried away with intent to steal and purloin, the personal property of the employees and interns at the Indian Health Hospital in Rosebud, South Dakota. During that time period Leader Charge, who was working at the Bureau of Indian Affairs Indian Health Service Hospital as a pharmacy technician, fraudulently obtained prescription medications from the pharmacy in various ways. Leader Charge would “short” prescriptions by taking a few of the prescribed pills out of the bottle before giving the bottle to the patients. Leader Charge also took prescribed medications that a patient did not pick up and she was supposed to restock. Leader Charge would enter the medications in the computer system as being restocked. Leader Charge admitted to giving some of the medications she stole to other people. She also admitted to stealing money out of co-employees’ belongings in the breakroom. The total amount of money stolen was under $1,000.
The investigation was conducted by the Office of the Inspector General and Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case. Leader Charge was released on bond pending sentencing which has been set for April 9, 2013.
Minnesota Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Cambridge, MN man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Kenneth B. Kleppen, age 40, was indicted by a federal grand jury on January 8, 2013 for failing to pay over $50,632.00 in past due child support. He appeared before U.S. Magistrate Judge William D. Gerdes on February 8, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing. The charge is merely an accusation and he is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case. Kleppen was released on bond pending trial. A trial date has not been set.
Mexican National Sentenced to Prison for Robbing Bank in Santa Fe in April 2012Read the Press Release
ALBUQUERQUE – Jaime Jesus Sanchez-Ramos, 23, a Mexican national, was sentenced this afternoon to 46 months in prison for his bank robbery conviction. Sanchez-Ramos will be deported to Mexico after he completes his prison sentence. He also was ordered to pay restitution to the four banks he robbed between Jan. 2012 and April 2012.
Sanchez-Ramos was arrested on April 10, 2012, on a criminal complaint charging him with robbing a bank on April 2, 2012. On May 8, 2012, Sanchez-Ramos was indicted and charged with robbing the following four Santa Fe-area banks: (1) the Century Bank, located at 1790 Saint Michael’s Drive, on Jan. 26, 2012; (2) the New Mexico Bank and Trust, located at 1549 Paseo de Peralta, on Feb. 15, 2012; (3) the Bank of Albuquerque, located at 706 Saint Michael’s Drive, on March 16, 2012 ; and (4) the U.S. Bank, located at 3787 Cerrillos Road, on Apr. 2, 2012.
On Nov. 9, 2012, Sanchez-Ramos pled guilty to Count 4 of the indictment, charging him with robbing the U.S. Bank on April 2, 2012, with the stipulation that he would be responsible for restitution to all four banks he robbed.
Under the terms of his plea agreement, the Court dismissed the three remaining counts of the indictment after Sanchez-Ramos was sentenced.
The case was investigated by the Santa Fe office of the FBI and the Santa Fe Police Department, and was prosecuted by Assistant U.S. Attorneys Lynn W.Y. Wang and C. Paige Messec.
Metro Denver Man Found Guilty of Health Care Related Fraud Following Jury TrialRead the Press Release
DENVER – Late yesterday afternoon a federal jury found a Metro Denver man guilty of 17 counts of mail fraud, the United States Attorney’s Office and the Food and Drug Administration’s Office of Criminal Investigations announced. John Edward Mullikin, age 51 of Arvada, was remanded into the custody of the U.S. Marshals Service immediately after the guilty verdicts were announced. The case was heard by Senior Tenth Circuit Court Judge David Ebel, who is scheduled to sentence the defendant on May 15th at 2:00pm. Mullikin faces a maximum sentence of 20 years in federal prison and a fine of not more than $250,000.00 per count for each of the 17 counts.
According to the Indictment, as well as evidence presented to the jury, between April 2006, and continuing through July 2008, John Edward Mullikin, devised and knowingly executed and attempted to execute a scheme to defraud various individuals throughout the United States. The scheme to defraud involved luring individuals throughout the United States into paying monies to him in order to participate in a bogus clinical study with the promise the monies would be returned along with further compensation. During this same period of time, the defendant was serving a term of parole in relation to four separate felony convictions involving theft in Adams, Arapahoe and Denver counties. John Edward Mullikinpromoted a study of his weight loss product, which he referred to as “medication”, that he claimed was not a placebo, and that he named “DBL-824" on one website and “Evaril II” on another website. In truth and in fact, the substance was a placebo that merely contained small amounts of vitamins E and C. He then recruited study participants by advertising throughout the United States in newspapers, magazines and on the internet, in the names of various business entities, which contained materially false and fraudulent representations in order to convince participants to enroll in his clinical trial. John Edward Mullikin made materially false and fraudulent representations that the study was part of the National Institutes of Health Obesity Research Task Force and was the subject of a legitimate clinical study “conducted by a respected university research center.”
John Edward Mullikin also made materially false and fraudulent representations that clients would be participating in an “observational efficacy study” of his weight loss product, that “DBL-824 has demonstrated significant effect in Phase I, Phase II, and Phase III clinical trials,” and that “This observational study will obtain further data to complement the recently completed control studies,” when in fact no such clinical studies had ever been conducted. He required all participants to pay an advance fee of $150 “refundable deposit” for the Evaril II study and $144 “one-time refunded deposit” for the DBL-824 study, both of which he falsely represented would be refunded along with the promised compensation. John Edward Mullikin lured participants into the study by making materially false and fraudulent representations that participants would be compensated over $1,000 by the conclusion of the 6 month Evaril II Study and $319.72 per month for 24 months (a total of $7,673.52) by the conclusion of the DBL-824 study. During the scheme, John Edward Mullikin created non-profit corporations, registered trade names, and did business under assumed names, including but not limited to Progenics Research, Inc., IUCDHSC, Inc., RAND Corporation, Metacor labs, Evaril Study, and Research Study UCDHSC Evaril.
He alsoopened checking accounts at financial institutions in Colorado in his name and in the names of various business entities in order to receive checks and monies derived from the scheme. Further, John Edward Mullikin assumed names such as John Milliken, Jack Edwards, John Edwards and Tim Alexander to conceal his true identity. He provided documents to his victims supporting those false and fraudulent representations, such as medical questionnaires, study descriptions, FAQ’s (frequently asked questions), and other materials stating the benefits of participating in a clinical trial. He also directed prospective clients to print and complete the “Enrollment Form” provided on his website and directed them to “mail the completed Enrollment Form and contact information” to various company names at various Post Office boxes in Colorado registered to and utilized by him. He thereby caused study participants to send checks, money orders, and monies written to various business entities, which he then caused to be deposited in bank accounts he controlled. Once he received the victims’ advance fee for participation in the study, John Edward Mullikin withdrew or spent the monies and ceased contact with his victims. Mr. Mullikin did not pay the victims the compensation promised in exchange for their participation in his bogus clinical study, nor did he refund the advance fee that he described as a deposit.
“The defendant used the vulnerability of people seeking health solutions to steal from them,” said U.S. Attorney John Walsh. “Thanks to the excellent team work between the U.S. Attorney’s Office and the FDA, a man with no ethics has been convicted of 17 felonies related to mail fraud.”
“This verdict demonstrates the FDA’s commitment to investigating cases of modern-day snake oil salesman; those individuals and businesses that bilk people of their money with the false promise of phony medical treatments,” said Special Agent in Charge Patrick J. Holland of FDA’s Office of Criminal Investigations, Kansas City Field Office. “We applaud the U.S. Attorney’s Office for their commitment and dedication to this case.”
The Mullikin case was investigated by the United States Food and Drug Administration Office of Criminal Investigations.
The defendant was prosecuted by Assistant U.S. Attorney Jaime Pena.
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Maryland Man Pleads Guilty to Possession of Child PornographyRead the Press Release
WASHINGTON – Marc Gange, 32, of Silver Spring, Md., pled guilty today to a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Gange entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable James E. Boasberg is to sentence him on June 11, 2013. Gange faces a maximum sentence of 10 years of imprisonment as well as a fine of $250,000. Under federal sentencing guidelines, he faces a likely sentencing range of 97 to 121 months in prison.
According to the government's evidence, on Nov. 15, 2012, Gange contacted a man he believed to be the father of a 12-year-old girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next several days, Gange engaged in online e-mail and instant message conversations with the undercover officer.
During this period of time, Gange sent the undercover officer approximately 79 images of child pornography which depicted, among other things, adult men engaged in sexual acts with children. Following Gange’s arrest on Dec. 5, 2012, the FBI’s Child Exploitation Task Force conducted a search of his work space and residence. Officers recovered approximately three videos and over 1,000 images of child pornography from a USB drive and the defendant’s computer.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force who investigated the case. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-054Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced February 14, 2013, to more than 24 years in federal prison.
Angel Solano-Fierro, 33, originally from Mexico, but residing in Sioux City, Iowa, received the prison term after an October 29, 2012, guilty plea to one count of conspiring to distribute methamphetamine and two counts of distributing methamphetamine.
At the guilty plea, Solano-Fierro admitted his involvement in a conspiracy from 2011 through April 2012 that distributed more than 150 grams of actual (pure) methamphetamine. In February and May 2012, Solano-Fierro along with others involved in the conspiracy distributed more than 130 grams of actual (pure) methamphetamine during controlled drug transactions with law enforcement. On May 2, 2012, during the execution of a consent search, law enforcement seized over 208 grams of actual (pure) methamphetamine from a vehicle connected to Solano-Fierro that was intended for future distribution as part of the conspiracy.
Solano-Fierro was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Solano-Fierro was sentenced to 292 months’ imprisonment. A special assessment of $300 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Solano-Fierro is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4060.
Lower Brule Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Abusive Sexual Contact was sentenced on February 12, 2013 by U.S. District Judge Roberto A. Lange. Wade Goodface, age 20, was sentenced to 12 months in custody and 5 years of supervised release. Goodface is to register as a sex offender, and is to pay $100 to the Victim Assistance Fund.
The charge stems from an incident that occurred on February 17, 2012 wherein Goodface went to the home of a female acquaintance and her brother and asked her to go on a walk with him. Her brother accompanied them, and the three walked around the Lower Brule community. During the walk, Goodface attempted to get his friend’s brother to leave them alone, and the group ended up at the place where Goodface was staying. In a continued attempt to get the brother to leave, Goodface engaged in sexual abuse, with the intent to harass him.
The investigation was conducted by the Federal Bureau of Investigation and Assistant United States Attorney Meghan N. Dilges prosecuted the case. Goodface was immediately turned over to the custody of the U.S. Marshal.
Local Businessman Sentenced for Avoiding Income Taxes on $1 Million SeveranceRead the Press Release
HOUSTON – Robert Edward Cone has been sentenced for using a foreign account in the Channel Islands to corruptly obstruct and impede the Internal Revenue Service (IRS) in the collection of approximately $282,871 in federal income taxes, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of IRS - Criminal Investigation (CI). Cone pleaded guilty on Feb. 10, 2012.
Today, U.S. District Judge Sim Lake sentenced Cone to a term of 12 months and one day in prison to be followed by a one-year-term of supervised release. He was further ordered to pay a fine of $50,000 and has already made full restitution of the unpaid taxes plus penalties and interest altogether totaling $939,917. He is also subject to possible additional civil assessments by the IRS as a result of this offense.
“At this time of year, when hard-working citizens are sitting down to prepare their tax returns, it is especially disappointing to see the overt steps some individuals will take to hide their taxable funds from the government," said Cruz. “We are determined at the IRS and Department of Justice to halt international tax evasion, and today’s sentence sends a strong message to those who attempt to hide their income in foreign accounts."
According to the plea agreement filed of record in the case, Cone was employed as president of Industrial Holdings Inc. (IHI), a manufacturing company in Houston, during 2001. Under his employment agreement with IHI, Cone was entitled to receive a severance payment equal to four times his annual salary of $250,000. This $1 million severance payment came due in December 2001 when IHI negotiated a merger with another company.
In anticipation of receiving the $1 million severance payment, Cone emailed a trust company in the Channel Islands seeking advice on establishing an offshore business to help with his U.S. taxes. Cone directed the Foreign Trust Company to form a British Virgin Islands company called Jomach Limited and establish an account under Jomach Limited with the Royal Bank of Canada (Jersey Islands) Limited. Cone directed IHI to wire the $1 million severance payment into the foreign Jomach Limited account.
A few weeks later, Cone concealed the severance payment and the foreign account from his tax return preparer, not reporting either to the IRS on his tax return. Cone then signed and filed that tax return with the IRS. By concealing the $1 million severance payment, Cone corruptly obstructed and impeded the administration of IRS laws and the collection of federal income taxes totaling approximately $282,871 for tax year 2001.
Between January 2002 and October 2006, Cone directed the Foreign Trust Company to disburse funds from the Jomach Account to vendors of goods and services that he had purchased in the U.S. and to U.S. bank accounts that he controlled and from which he disbursed funds for his personal use, benefit and consumption. Cone later concealed his interest in the foreign account from another professional tax return preparer, who prepared a 2005 tax return for Cone, that falsely stated he had no interest in any foreign account. However, Cone had, in fact, caused two transfers of $5,000 each to be made to his personal benefit from the Jomach Account during that year. Cone also signed and filed that tax return with the IRS in 2006, further corruptly obstructing and impeding the IRS in the administration of IRS laws.
Cone was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by IRS-CI and was prosecuted by Assistant United States Attorney Jimmy Sledge Jr.
Leader Pleads Guilty in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland - Lemoyne Veney, age 44, of Clarksville, Maryland, pleaded guilty today to bank fraud conspiracy and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; and Harford County Sheriff L. Jesse Bane. According to his plea agreement, from November 2007, through February 2011, Veney conspired with Theresa Smithrick, Kevin Pittman, and others in a scheme to use stolen personal identifying information (PII) to fraudulently obtain money from financial institutions. Specifically, in 2010 Veney met Smithrick, who was employed as a clerk at the Baltimore City District Court. Veney asked Smithrich to help him to gather personal identifying information, which she agreed to do. On approximately eight occasions, Veney gave Smithrick a sheet with eight to 10 names and accompanying PII, with some blank PII fields missing, such as driver’s license number, date of birth, or middle name. Smithrick completed the missing fields by accessing a secure Maryland Motor Vehicle Administration database and faxed the completed sheets to another co-conspirator, as directed by Veney. The co-conspirator who received the completed sheets bartered with Veney and agreed to provide driver’s licenses to Veney in exchange for the PII. In turn, Veney and other co-conspirators used the stolen PII, as well as the counterfeit driver’s licenses, to perpetuate the scheme.
Veney also created false businesses and supporting business documents, which he shared with his co-conspirators, including Kevin Pittman, so that he and his co-conspirators might incorporate some of the fraudulent businesses with the Maryland Department of Assessments and Taxation (“MDAT”) and other states’ departments of state. Veney and a co-conspirator would either sell the business information to others, or keep the information and attempt to establish related business checking accounts.
For example, Veney provided Pittman with fake identification, counterfeit supporting business documents, and counterfeit checks that Veney made in his home, which contained the stolen PII of unwitting victims but the pictures of Veney, Pittman and other conspirators. Pittman then used the counterfeit documents and compromised identities provided by Veney to incorporate fraudulent businesses. Veney also established matching business checking accounts for those fraudulent businesses for use in the scheme. Veney drove Pittman to various financial institutions in Frederick, Columbia and other locations in Maryland, where Pittman used the fake documents to open business and personal bank accounts. Pittman deposited the counterfeit business checks into these fraudulently opened bank accounts, then withdrew the funds before the checks could be identified as fraudulent. Pittman was paid a commission for each transaction. Veney also drove Pittman to supermarkets, where they cashed counterfeit checks, or purchased gift cards and other merchandise, with counterfeit checks drawn on real persons’ accounts, using the fraudulent identification documents provided by Veney as proof of identity.
As a result of the scheme, more than 50 victims lost a total of at least $70,000.
Veney faces a maximum sentence of 30 years in prison for the bank fraud conspiracy and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Richard D. Bennett scheduled sentencing for May 22, 2013 at 3:00 p.m.
Theresa Smithrick age 47, of Baltimore, and Kevin Pittman, now using the name “Breona Pittman,” age 33, of Chesapeake, Virginia, both previously pleaded guilty to their roles in the scheme and are scheduled to be sentenced on April 29, 2013 and May 1, 2013, respectively.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Harford County Sheriff’s Office for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Jury Convicts St. Petersburg Career Offender on Gun and Drug ChargesRead the Press Release
Tampa, FL - U.S. Attorney Robert E. O'Neill announces that a federal jury yesterday found Michael M. Rucker (34, St. Petersburg), a/k/a Bryan Houston, a/k/a Idris Williams guilty of being a convicted felon in possession of a firearm and ammunition and possession with intent to distribute crack cocaine and marijuana within 1,000 feet of a school. Because of his criminal history, Rucker faces a maximum penalty of 70 years in federal prison. His sentencing hearing is scheduled for May 6, 2013.
Rucker was indicted on June 28, 2012. According to evidence presented at trial, on May 15, 2012, the St. Petersburg Police Department Vice and Narcotics Unit executed a search warrant at Rucker's residence located at 1806 9th Avenue South in St. Petersburg. During the execution of the search warrant, officers located two fully loaded handguns in Rucker's bedroom, crack cocaine under a couch, marijuana, and tools of the drug trade commonly used to make and sell crack cocaine. The residence is located within 1,000 feet of both a middle school and daycare center. As a previously convicted felon, Rucker is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Josephine W. Thomas.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Jury Convicts St. John Woman of Passport FraudRead the Press Release
St. Thomas, USVI- After a one-day jury trial in District Court on St. Thomas on Tuesday, a federal jury found Glissell Herrera, 32, guilty on two counts charging making a false statement in an application for a United States passport and one count of submitting a false document to a department or agency of the United States, announced United States Attorney Ronald W. Sharpe.
According to the evidence presented at trial, on June 19, 2007, and again on July 19, 2012, Herrera submitted a passport application for the benefit of her minor daughter. In support of those applications, Herrera submitted a fraudulent Puerto Rican birth certificate as proof of the minor’s United States citizenship. Herrera attested that all of the information submitted in furtherance of the passport applications was true. Testimony from the Director of the Department of Vital Statistics revealed that the Department had no record of the minor’s birth in Puerto Rico.
Herrera faces a maximum penalty of 10 years imprisonment for the offense of making a false statement in an application for a United States passport, and a maximum of five years imprisonment for submitting a false document to a department or agency of the United States. Herrera also faces a maximum fine of $250,000.00 and a special assessment of $300.00. Herrera remains detained pending sentencing.
U.S. Attorney Sharpe commended the efforts of the U.S. Department of State, Diplomatic Security Service, which investigated the case. The case was prosecuted by Assistant United States Attorney Ishmael A. Meyers Jr.
Joseph C. Delay Pleads Guilty to Being A Felon in Possession of A FirearmRead the Press Release
JOSEPH C. DELAY, 42, of Metairie, Louisiana, pled guilty today before U. S. District Court Judge Jane Triche Milazzo to being a felon in possession of a firearm, announced U. S. Attorney Dana J. Boente.
DELAY was charged in May 2012 in an Indictment with Being a Felon in Possession of a Firearm and with Failure to Register as a Sex Offender. DELAY will be sentenced by U.S. District Judge Jane Triche Milazzo on April 18, 2013.
Documents filed in federal court indicate that on March 9, 2012, at 2:51 a.m., a Jefferson Parish Sheriff’s deputy pulled over the defendant for operating a motor vehicle without a license plate. The defendant drove away after the deputy exited his vehicle and approached the defendant’s vehicle. A high-speed chase ensued and other deputies located the vehicle within minutes. The defendant was no longer in the vehicle, however, a loaded .380 caliber Lorcin semi-automatic pistol was left on the driver’s side floorboard. In addition, the defendant left his cellular telephone directly outside of the vehicle.
Court records show that in1995, DELAY was convicted in Criminal District Court for the Parish of Orleans of Forcible Rape, Armed Robbery, and Aggravated Burglary. In addition, DELAY was convicted in 2004, in the 24th Judicial District Court for the Parish of Jefferson of possession of a Schedule II controlled substance, and in 2010, in the 24th Judicial District Court for the Parish of Jefferson, DELAY was convicted of Failure to Register as a Sex Offender.
If convicted, DELAY faces a mandatory minimum penalty of ten (10) years imprisonment followed by a term of supervised release of three years, and a $250,000.00 fine.
This case was investigated by the U.S. Marshal’s Service, Bureau of Alcohol, Tobacco and Firearms, and the Jefferson Parish Sheriff’s Office.
The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba.
(Download Factual Basis )
Jose E. Toledo-Bayouth Arrested for Drug TraffickingRead the Press Release
SAN JUAN, P.R. – Today, United States Magistrate Judge Bruce McGiverin authorized a criminal complaint against José E. Toledo-Bayouth for conspiracy to possess with the intent to distribute five (5) kilograms or more of a mixture and substance containing cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was conducted by the Drug Enforcement Administration (DEA).
According to the criminal complaint, on or about January 10, 2013, Toledo-Bayouth met a confidential source in Guaynabo, Puerto Rico, for the purpose of negotiating the purchase of multiple kilograms of cocaine for delivery in Puerto Rico and its subsequent resale in the Continental United States. Several meetings took place between the confidential source and Toledo-Bayouth between January 10, 2013 and February 9, 2013 in locations throughout the San Juan metropolitan area, where they discussed the conditions for the purchase of approximately 25 kilograms of cocaine.
During the meetings, Toledo-Bayouth offered his late father’s farm located in Aguas Buenas, Puerto Rico as a location to stash and conceal multi-kilogram quantities of cocaine. Toledo-Bayouth indicated that the farm was equipped with empty water tanks which could be used to store drugs. The defendant also indicated to the confidential source not to worry about the Puerto Rico Police Department (“PRPD”) because the PRPD could only enter the first part of the farm and the security systems installed therein made it impossible for PRPD to access the main house in the farm.
On February 9, 2013, the defendant agreed to receive the 25 kilograms of cocaine from the confidential source on February 13, 2013, right outside of the front gate to the farm. Toledo-Bayouth was then to transport the 25 kilograms of cocaine to an unknown subject who was going to be waiting for the contraband inside of the farm, and Toledo-Bayouth would make a payment to the confidential source for the 25 kilograms of cocaine within five days of the delivery of the contraband.
On February 13, 2013, the defendantmet the confidential source right outside of the front gate to the farm and received a bag containing 25 kilograms of purported cocaine. He was then followed by the DEA agents into the farm and placed under arrest.
The case is being prosecuted by Assistant United States Attorney Dennise N. Longo. If convicted the defendant could face up to life in prison. Criminal complaints contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Jackson Men Plead Guilty to Federal Narcotics ChargesRead the Press Release
Jackson, Miss. – Kelvin Redd, 36, and Julian Michael Thompson, 33, both of Jackson, pled guilty to drug charges this week in U. S. District Court, announced U.S. Attorney Gregory K. Davis and Daniel McMullen, Special Agent in Charge of the Federal Bureau of Investigation.
Kelvin Redd pled guilty to possession with intent to distribute cocaine and cocaine base (crack). He will be sentenced on May 30, 2013, and faces a maximum penalty of 40 years in prison and a $5 million fine.
Julian Michael Thompson pled guilty to possession with intent to distribute more than 28 grams of cocaine base (crack). He will be sentenced on April 24, 2013 and faces a maximum penalty of 40 years in prison and a $5 million fine.
This case is the result of an extensive investigation, dubbed “Operation Paperchase”, targeting illegal narcotics distribution in the City of Jackson, Mississippi. The lead investigative agency in this operation was the Federal Bureau of Investigation. Assisting agencies included the Drug Enforcement Administration, U.S. Marshals Service, Gulf Coast HIDTA, and Mississippi Bureau of Narcotics.
This case was prosecuted by Assistant United States Attorney Erin Chalk.###
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Irvington, N. J. Tax Preparer Arraigned on Charges of Preparing and Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – An Irvington, N.J. tax preparer was arraigned today for allegedly preparing false tax returns designed to get her clients larger returns than they were entitled to, U.S. Attorney Paul J. Fishman announced.
Alicia Jones, 46, appeared today in federal court in Newark, N.J. after being charged in a 25-count Indictment. A federal grand jury in Newark, N.J., indicted her on charges of willfully aiding and assisting in the preparation and presentation of false tax returns. Jones surrendered this morning to special agents of the IRS - Criminal Investigation. She appeared before U.S. Magistrate Judge Mark Falk.
According to the Indictment:
Jones, the owner of Rightchoice Financial and Insurance Services, prepared tax returns for her clients that included fabricated and inflated itemized deductions, education expenses, and false filing statuses. From 2006 through 2009, Jones prepared and filed the fraudulent tax returns for her clients in order to obtain greater refunds for her clients than those to which they were entitled.
Each count of the Indictment carries a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Barbara R. Llanes of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-082
Defense counsel: Thomas Ashley Esq., NewarkJones Indictment
Interior Man Pleads Guilty to Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Gerald Baker, Sr., age 27, of Interior, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on February 8, 2013 and pled guilty to distribution of a controlled substance. The maximum penalty upon conviction is 5 years’ imprisonment and/or a $250,000 fine.
On March 5, 2012 Baker distributed more than 5 grams of marijuana at Kyle, South Dakota. The investigation was conducted by Operation Eagle Eye, a drug interdiction program conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, whose member agencies include the Federal Bureau of Investigation, the Bureau of Indian Affairs, the South Dakota Division of Criminal Investigation, the South Dakota Highway Patrol, the Pierre Police Department, and the Oglala Sioux Tribe – Department of Public Safety. In addition to Task Force members, other agencies assisting were the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Martin Police Department, the U.S. Marshal's Service, the Drug Enforcement Administration, and the Jackson County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
A presentence investigation was ordered and a sentencing date was set for June 11, 2013. The defendant was released on bond pending acceptance of this plea and sentencing.
Glasgow Return Preparer Sentenced to 18 Months in Federal Prison for Preparing False Income Tax ReturnsRead the Press Release
– Knowingly claimed false deductions and expenses resulting in a tax loss of over $450,000
BOWLING GREEN, Ky. – A Glasgow, Kentucky federal tax return preparer was sentenced in United States District Court today by Chief U.S. District Judge Joseph H. McKinley, Jr., to 18 months in prison, followed by one year of supervised release, for aiding and assisting in the preparation of false income tax returns, announced David J. Hale, United States Attorney for the Western District of Kentucky.
On April 11, 2012, a Bowling Green, Kentucky grand jury returned a thirty-five count Indictment against Greg P. Denham, age 48, alleging he knowingly assisted in the preparation of materially false federal tax returns. Denham formerly owned and operated Accounting and Tax Professionals in Glasgow, Kentucky.
On November 19, 2012, Denham pleaded guilty to all 35 counts of the Indictment, admitting that between February 2006 and May 2009, he knowingly prepared individual income tax returns that misrepresented expenses and under-reported taxes owed by taxpayers. The indicted returns were prepared for tax years 2005 through 2008. The returns in question claimed business expenses that Denham knew the taxpayers did not actually incur, or that were not actual business expenses. The total tax loss resulting from fraudulent tax returns Denham prepared, including tax returns not listed in the Indictment, was over $450,000.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the IRS, Division of Criminal Investigation.
Georgia Woman Admits to Taking Bribes for<br /> the Award of Government ContractsRead the Press Release
A former employee at the Marine Corps Logistics Base Albany pleaded guilty today to receiving bribes related to the award of contracts for machine products, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Michelle Rodriguez, 32, of Albany, Ga., pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During her guilty plea, Rodriguez, who worked as a supply technician in the Maintenance Center Albany (MCA), admitted to participating in a scheme to award contracts for machine products to companies operated by Thomas J. Cole and Frederick Simon, both of whom pleaded guilty to bribery charges in January 2013.
According to court documents, the MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been used in military missions in Afghanistan, Iraq and other parts of the world. To accomplish the scheme, Rodriguez would transmit bid solicitations to Simon by fax or email, usually following up with a text message specifying how much the company seeking the contract should bid. Simon, with Cole’s knowledge, would then bid the amount specified by Rodriguez on each order, which was normally higher than fair market value. Rodriguez was paid $75.00 cash per order. Rodriguez admitted during today’s hearing that she awarded Cole and Simon’s companies nearly 1,300 machine product orders, all in exchange for bribes.
Rodriguez also admitted that in 2011, she began routing some orders through a second company, owned by Cole, because the volume of orders MCA placed with the first company was so high. Rodriguez admitted receiving approximately $161,000 in bribes during the nearly two-year scheme. Cole and Simon previously admitted to personally receiving approximately $209,000 and $74,500 in proceeds from the scheme, respectively. Rodriguez, Cole and Simon all conceded that the total loss to the Department of Defense from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
At sentencing, Rodriguez faces a maximum potential penalty of 15 years in prison and a fine of twice the gross gain or loss from the offense. As part of her plea agreement with the United States, Rodriguez agreed to forfeit the bribe proceeds she received from the scheme, as well as to pay full restitution to the Department of Defense. The plea agreement also required her to resign her position at the MCA. Sentencing is scheduled for April 25, 2013.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Justice Department’s Criminal Division Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Department of Defense, Office of Inspector General Defense Criminal Investigative Service.
Four People Sentenced to Federal Prison for Meth Distribution ConspiracyRead the Press Release
Two men and two women have been sentenced to federal prison for their roles in a methamphetamine distribution conspiracy.
Joseph Hough, age 30, of Dakota City, Iowa, Diane Kletsch, age 50, of Superior, Iowa, Timothy Lamb, age 48, of Fort Dodge, Iowa, and Yolanda Hernandez, age 46, of Donna, Texas, received their prison terms after October 10 and 11, 2012, guilty pleas. Hough, Kletsch, Lamb, and Hernandez each pled guilty to conspiracy to distribute methamphetamine.
According to information disclosed at the sentencings, and change of plea hearings, Lamb and Hough received up to ounce quantities of methamphetamine and resold it to numerous others. Kletsch was receiving methamphetamine from Hernandez and re-distributing it to others. Hernandez sold up to pound quantities of methamphetamine per month to others who resold it to numerous others. The conspiracy lasted from January 2011 to January 2012, in Cerro Gordo County, Iowa.
Hough, Kletsch, Lamb, and Hernandez were sentenced on February 12, 3012, in United States District court in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hough was sentenced to 108 months’ imprisonment, Kletsch was sentenced to 87 months’ imprisonment, Lamb was sentenced to 136 months’ imprisonment, and Hernandez was sentenced to 109 months’ imprisonment. Lamb, Hernandez, and Kletsch must each serve five-year terms of supervised release after prison. Hough must serve a four-year term of supervised release after prison. There is no parole in the federal system. Hough, Lamb, Hernandez, and Kletsch, were each ordered to pay a $100 special assessment.
All four are being held in the United States Marshal’s custody until they can be transported to a federal prison.The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Iowsa Division of Narcotics Enforcement, Humboldt County Sheriff’s Office, Chereokee County Sheriff’s Office, Estherville, Iowa, Police Department, Iowa Great Lakes Drug Task Force, North Central Iowa Narcotics Drug Task Force, and the Webster County Drug Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3033.
Former VA Hospital Workers Union President Pleads Guilty to Theft of Union Funds in Manhattan Federal Court; Former Stage Union President Sentenced for Embezzling Union FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FEDERCK C. PETRO, the former President of the American Federation of Government Employees, Local 2094 (the “VA Hospital Workers Union”), pled guilty today to theft of union funds, and JOHN V. McNAMEE, the former President/Secretary-Treasurer of the Stage and Picture Operators, AFL-CIO Exhibition Employees, Local Union 829 (the “Stage and Picture Operators Union”), was sentenced yesterday in Manhattan federal court to one year and one day in prison for embezzling union funds. PETRO was arrested in December 2011 in connection with the scheme, and pled guilty today before U.S. District Judge George B. Daniels. McNAMEE pled guilty in October 2012 to one count of embezzling funds of a labor organization, and was sentenced by U.S. District Judge Kimba M. Wood.
According to the court filings and statements made in court:
From February 2006 through July 2008, while serving as the President of the VA Hospital Workers Union, PETRO wrote approximately 187 checks to himself from the VA Hospital Workers Union’s checking account, totaling approximately $112,477. The VA Hospital Workers Union checking account contained the monthly dues paid to the union by its members.
From January 2004 through February 2011, while serving as the Stage and Picture Operators Union’s President/Secretary-Treasurer, McNAMEE charged $150,000 in personal expenses on the Stage and Picture Operators Union’s corporate credit cards. These personal expenses included jewelry and clothing purchases, restaurant bills, entertainment tickets, and medical, vacation, and party expenses for himself and his family. McNAMEE paid for the personal charges he made on the corporate credit cards by writing checks from the Stage and Picture Operators Union’s checking account to cover the credit card bills. The Stage and Picture Operators Union checking account contained the monthly dues paid to the union by its members.
PETRO, 59, of Brooklyn, New York, pled guilty to one count of theft of union funds while on United States property. He faces a maximum penalty of five years in prison. PETRO is scheduled to be sentenced by Judge Daniels on June 4, 2013 at 10:00 a.m.
In addition to the prison sentence, Judge Wood sentenced McNAMEE, 53, of New York, New York, to two years of supervised release and ordered him to pay a fine of $25,000 and a $100 special assessment fee. McNAMEE also has made restitution to the Stage and Picture Operators Union of $150,000, representing the amount he embezzled from it.
Mr. Bharara praised the investigative work of the New York District of the U.S. Department of Labor’s Office of Labor-Management Standards and the Northeast Field Office of the U.S. Department of Veterans Affairs, Office of the Inspector General.
These cases are being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecutions.
Former Treasurer of A City Council Campaign Pleads Guilty to Fraud ChargeRead the Press Release
PHILADELPHIA - Former Philadelphia city employee John D. McDaniel, 39, of Philadelphia, pleaded guilty today to one count of wire fraud for allegedly stealing $100,000 from a campaign/political committee. A sentencing hearing is scheduled for May 14, 2013. McDaniel, the former Treasurer of the campaign/political committee for a Philadelphia City Councilperson, was recently fired from his city-paid airport job after the city Board of Ethics identified numerous reporting irregularities by McDaniel in the campaign’s required city filings.Between 2010 and 2011, McDaniel used several methods to routinely and, at times, without authorization, withdraw funds from the committee account, which funds he then used for his own purposes and other purposes. At times, McDaniel wrote and cashed checks to himself, and wrote checks to Progressive Agenda, a political action committee which he controlled, from which he then took stolen funds. McDaniel concealed the theft by filing false and incomplete campaign finance reports.
McDaniel faces a statutory maximum sentence of 30 years imprisonment, 5 years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Paul L. Gray.
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, 215-861-8525Former Shawano Man Found Guilty in Federal Court of Three Counts of Tax EvasionRead the Press Release
United States Attorney James L. Santelle announced today that on February 13, 2013, a federal jury in Green Bay, Wisconsin found Kalmar Gronvall guilty of three counts of tax evasion. Gronvall (age: 68) who previously resided in Shawano, Wisconsin, was convicted of attempting to evade more than $430,000 in federal taxes he owed for the years 2006 - 2008.
Gronvall operated an internet business known as The Gold and Silver Exchange through which he sold gold and silver coins, as well as other precious metals. During the years 2006 - 2008, Gronvall had sales totaling more than $7 million and earned more than $1.3 million. Despite this, Gronvall failed to file federal income tax returns reporting his income or paying his associated taxes.
In an effort to evade his taxes, Gronvall withdrew most of his income from bank accounts he controlled, converted his profits to cash, and used a bank account set up in his son’s name to conduct business.Special Agent in Charge Kelly R. Jackson, who heads the Internal Revenue Service Criminal Investigation office in Green Bay, said an IRS criminal investigator worked diligently to unravel Gronvall's scheme, adding "We are pleased the jury saw past the tricks and deceit Mr. Gronvall used to conceal his crimes and returned a verdict of guilt."
This case was prosecuted by Assistant United States Attorney Matthew L. Jacobs. Gronvall, who is in custody, faces up to 5 years in prison and a fine of up to $250,000 on each count. His sentencing is set for May 13, 2013.
Former San Diego Mayor Squanders A Billion Dollars Then Raids Charitable Foundation to Pay Debts and Continue Gambling SpreeRead the Press Release
Former San Diego Mayor Maureen O'Connor entered a deferred prosecution agreement today in which she acknowledged misappropriating millions of dollars from her deceased husband's charitable foundation. As part of the agreement, O'Connor agreed to pay $2,088,000 in restitution to the foundation, settle any and all tax liability resulting from her receipt of these funds, and receive treatment for her gambling addiction.
According to documents filed in the proceeding, O'Connor was married to Robert O. Peterson (the Founder of the Jack in the Box restaurant chain) from 1977 until his death in 1994. Prior to his death, Peterson and others created the R.P. Foundation ("Foundation"). According to its Articles of Incorporation, "no part of the net earnings, properties, or assets shall enure to the benefit of any [Foundation] trustee . . . ." Defendant O'Connor was one of the three Trustees who were specifically prohibited from receiving a benefit from the Foundation. Prior to 2008, in accordance with its charter, the Foundation provided money to various charities, such as City of Hope, the Alzheimer's Association, Sharp Healthcare, Little Wishes Foundation, San Diego Hospice, and the John Burton Foundation.
As revealed in court documents, between 2000 and 2009, O'Connor won more than $1 billion while gambling in various casinos in Las Vegas, Atlantic City and San Diego. Despite these immense winnings, she suffered even larger gambling losses - resulting in a sizable net loss. Indeed, by early 2008, she incurred large, outstanding gambling debts at a number of different casinos. In order to stay afloat financially and continue her gambling spree, O'Connor liquidated her savings, sold numerous real estate holdings and auctioned valuable personal items. She also obtained second and third mortgages on her personal residence in La Jolla, California.
By September 2008, O'Connor had few, if any, assets that had not been mortgaged, sold off, or otherwise liquidated. At that point, she turned to the Foundation's assets to both pay her outstanding debts and continue her high-stakes gambling. Between September 2008 and March 2009, O'Connor misappropriated more than $2,088,000 from the foundation. Equally troubling, despite winning hundreds of thousands of dollars during that time period, she literally "threw good money after bad" by continuing gambling - rather than reimbursing the Foundation for the wrongfully taken funds.
As noted in Court, O'Connor's transfers from the Foundation to her personal bank account were contrary to the Foundation's explicit charitable purpose and its non-profit status with the IRS. Her misappropriation of funds deprived the Foundation of its remaining assets and left it completely bankrupt. As a result, the Foundation was forced to close its bank accounts in April 2009. Although O'Connor characterized the misappropriated funds as "loans" from the Foundation (and may have initially intended to repay the funds) her actions were nevertheless specifically prohibited - and constituted impermissible self-dealing in violation of her fiduciary responsibility to the Foundation.
Despite having limited, if any, assets other than the funds improperly taken from the Foundation, O'Connor continued her non-stop gambling. After March 2009, Defendant made payments to casinos in an attempt to satisfy outstanding gambling markers (or lines of credit), yet once again did not make any attempt to repay the Foundation or bring it out of bankruptcy. In doing so (as specified in the Government's charging documents), she improperly engaged in monetary transactions knowing that the transactions involved proceeds of her misappropriation of charitable funds.
According to court records, in 2011, surgeons operated on O'Connor to remove a large tumor from her brain. She subsequently suffered significant complications, including a pulmonary embolism and cognitive impairment. O'Connor's medical condition has resulted in a variety of continuing and serious health problems. While found competent to enter into this deferred prosecution agreement by Magistrate Judge David Bartick, all parties agree that her medical ailments render it highly improbable - if not impossible - that she could be brought to trial. If the defendant satisfies all the conditions of her deferred prosecution (including providing restitution), the government has agreed to dismiss the Information filed against her in two years.
United States Attorney Laura Duffy commented that despite the difficulties presented by this case, it was imperative to ensure that O'Connor, who was mayor from 1986 to 1992, not be allowed to simply pilfer the R.P. Foundation and avoid paying her appropriate tax obligations. "Maureen O'Connor was a selfless public official who contributed much to the well-being of San Diego," Duffy said. “However, no figure, regardless of how much good they've done or how much they've given to charity, can escape criminal liability with impunity."
N. Dawn Mertz, Acting Special Agent in Charge for IRS Criminal Investigation, Los Angeles Field Office commented: "Today, Maureen O'Connor, acknowledged that she embezzled over $2 Million from the R.P. Foundation, a charitable nonprofit organization. This embezzlement contributed to the demise of this organization. O'Connor characterized the misappropriated funds as "loans" from the R. P. Foundation to conceal her illegal activity, gambling addiction and to evade the payment of tax on her embezzled funds. O'Connor's guilty plea emphasizes that those who violate our nation's tax laws, regardless of their status, face investigation by IRS Criminal Investigation, prosecution for their crimes and remain liable for their tax liability."
U.S. Attorney Duffy praised the enforcement work by the IRS who diligently pieced together the full scope of the fraud.asdf
DEFENDANT Criminal Case No. 13cr537BEN Maureen O'Connor SUMMARY OF CHARGESOffense: Title 18, United States Code, Section 1957 - Prohibited Financial Transaction
INVESTIGATING AGENCY
Maximum penalties: 10 years custody; $250,000 fine; 3 year supervised release.Internal Revenue Service, Criminal Investigation Division
Former Pharmacist Sentenced to 25 Months in Prison for Using Patient and Doctor Names to Create Fraudulent PrescriptionsRead the Press Release
BOWLING GREEN, Ky – A former pharmacist from Richmond, Kentucky was sentenced in United States District Court today, by Senior Judge Joseph H. McKinley, Jr., to 25 months in prison followed by one month of supervised release for aggravated identity theft, fraudulently acquiring controlled substances, and wire fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky. Elizabeth A. Smith, age 30, had previously pleaded guilty in United States District Court to a federal Information on November 19, 2012.
Between April 2011 and January 2012, Smith, a former Walgreens pharmacist, used patient names and doctor names and DEA numbers to create fraudulent prescriptions for controlled substances such as hydrocodone (a Schedule III controlled substance). Smith filled the prescriptions without the patients’ or doctors’ knowledge, and kept the pills for personal use. Smith defrauded Walgreens on each prescription by greatly reducing the amount due for the prescriptions in the Walgreens computer system. Smith then paid the small remaining balance herself.
For example, on December 12, 2011, while working at a Walgreens in Glasgow, Kentucky, Smith used patient K.R.'s name, and doctor G.S.'s name and DEA number, without K.R.'s or G.S.'s knowledge or authority to order a fraudulent prescription for 120 hydrocodone pills. Smith entered the prescription in the Walgreens computer system and reduced the amount due for the prescription from $137.94 to $20. Smith paid the $20 with her own personal credit card.
On January 5, 2012, while working at a Walgreens in Madisonville, Kentucky, Smith used patient T.R.'s name, and doctor S.S.'s name and DEA number, without T.R.'s or S.S.'s knowledge or authority to order a fraudulent prescription for 180 hydrocodone pills. Smith entered the prescription in the Walgreens computer system and reduced the amount due for the prescription from $131.37 to $5. Smith paid the $5 with her own personal credit card.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Kentucky State Police.
Former IRS Employee Pleads Guilty to Theft of Public FundsRead the Press Release
KANSAS CITY, KAN. – A former employee of the Internal Revenue Service has pleaded guilty to theft of public funds, U.S. Attorney Barry Grissom said today.
Becky L. Book, 49, Pittsburg, Kan., pleaded guilty to one count of theft of public funds. In her plea, she admitted that while she worked as an IRS revenue agent she documented a significant amount of time on her assigned cases she did not actually work. Further, she prepared fourteen travel vouchers which claimed mileage to appointments with taxpayers she never attended. The total loss to the government was $26,449.65.
Sentencing is set for May 23. She faces a maximum penalty of 10 years in federal prison, a fine up to $250,000 and restitution. Grissom commended the U.S. Department of Treasury - Treasury Inspector General for Tax Administration and Assistant U.S. Attorney Tris Hunt for their work on the case.
Former Executives of Stanford Financial Group Entities<br /> Sentenced to 20 Years in Prison for Roles in Fraud SchemeRead the Press Release
Gilbert T. Lopez Jr., the former chief accounting officer of Stanford Financial Group Company, and Mark J. Kuhrt, the former global controller of Stanford Financial Group Global Management, were each sentenced today to 20 years in prison for their roles in helping Robert Allen Stanford perpetrate a fraud scheme involving Stanford International Bank (SIB). Both were convicted by a Houston federal jury on Nov. 19, 2012.
The sentences were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; FBI Assistant Director Kevin Perkins of the Criminal Investigative Division; Assistant Secretary of Labor for the Employee Benefits Security Administration Phyllis C. Borzi; Chief Postal Inspector Guy J. Cottrell; and Special Agent in Charge Lucy Cruz of Internal Revenue Service-Criminal Investigation.The trial against Lopez and Kuhrt spanned five weeks. After approximately three days of deliberations, the jury found both Lopez, 70, and Kuhrt, 40, both of Houston, guilty of 10 of 11 counts in the indictment. Each defendant was convicted of one count of conspiracy to commit wire fraud and nine counts of wire fraud. Each was found not guilty on one wire fraud count. Both defendants were taken into custody immediately following the jury’s verdict.
In addition to the prison terms, U.S. District Judge David Hittner, who presided over the trial, sentenced Lopez and Kuhrt to serve three years of supervised release and ordered Lopez to pay a $25,000 fine. At today’s hearing, Judge Hittner also found that both defendants obstructed justice by committing perjury at trial.
Stanford, who was previously convicted in a separate trial, illegally used billions of dollars of SIB’s assets to fund his personal business ventures, to live a lavish lifestyle and for other improper purposes. He was later sentenced to 110 years in prison. James M. Davis, Stanford’s chief financial officer – who pleaded guilty and cooperated with the government soon after SIB was shut down in February 2009 and testified at both Stanford’s trial and the trial of Lopez and Kuhrt – was sentenced to 60 months in prison for his role in the scheme.
The evidence presented at Lopez and Kuhrt’s trial established that they were aware of and tracked Stanford’s misuse of SIB’s assets, kept the misuse hidden from the public and from almost all of Stanford’s other employees and worked behind the scenes to prevent the misuse from being discovered. They also helped Stanford falsely represent to SIB customers during the economic crash in late 2008 that Stanford had infused hundreds of millions of dollars into SIB when he had not. As part of that effort, Lopez and Kuhrt helped design a fraudulent real estate transaction that involved falsely inflating parcels of land purchased at $63.5 million to a purported value of $3.2 billion.
The investigation was conducted by the FBI, U.S. Postal Inspection Service, IRS-CI and the U.S. Department of Labor, Employee Benefits Security Administration. The case was prosecuted by Deputy Chief Jeffrey Goldberg and Trial Attorney Andrew Warren of the Criminal Division’s Fraud Section, and by Assistant U.S. Attorney Jason Varnado of the Southern District of Texas.
Former Executives of Stanford Financial Group Entities Sentenced to 20 Years in Prison for Roles in Fraud SchemeRead the Press Release
HOUSTON – Gilbert T. Lopez Jr., the former chief accounting officer of Stanford Financial Group Company, and Mark J. Kuhrt, the former global controller of Stanford Financial Group Global Management, were each sentenced today to 20 years in prison for their roles in helping Robert Allen Stanford perpetrate a fraud scheme involving Stanford International Bank (SIB). Both were convicted by a Houston federal jury on Nov. 19, 2012.
The sentences were announced by United States Attorney Kenneth Magidson of the Southern District of Texas; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; FBI Assistant Director Kevin Perkins of the Criminal Investigative Division; Assistant Secretary of Labor for the Employee Benefits Security Administration Phyllis C. Borzi; Chief Postal Inspector Guy J. Cottrell; and Special Agent in Charge Lucy Cruz of Internal Revenue Service-Criminal Investigation.
The trial against Lopez and Kuhrt spanned five weeks. After approximately three days of deliberations, the jury found Lopez, 70, and Kuhrt, 40, both of Houston, guilty of 10 of 11 counts in the indictment. Each defendant was convicted of one count of conspiracy to commit wire fraud and nine counts of wire fraud. Each was found not guilty on one wire fraud count. Both defendants were taken into custody immediately following the jury’s verdict.
In addition to the prison terms, U.S. District Judge David Hittner, who presided over the trial, sentenced Lopez and Kuhrt to serve three years of supervised release and ordered Lopez to pay a $25,000 fine. At today’s hearing, Judge Hittner also found that both defendants obstructed justice by committing perjury at trial.
Stanford, who was previously convicted in a separate trial, illegally used billions of dollars of SIB’s assets to fund his personal business ventures, to live a lavish lifestyle and for other improper purposes. He was later sentenced to 110 years in prison. James M. Davis, Stanford’s chief financial officer – who pleaded guilty and cooperated with the government soon after SIB was shut down in February 2009 and testified at both Stanford’s trial and the trial of Lopez and Kuhrt – was sentenced to 60 months in prison for his role in the scheme.
The evidence presented at Lopez and Kuhrt’s trial established that they were aware of and tracked Stanford’s misuse of SIB’s assets, kept the misuse hidden from the public and from almost all of Stanford’s other employees and worked behind the scenes to prevent the misuse from being discovered. They also helped Stanford falsely represent to SIB customers during the economic crash in late 2008 that Stanford had infused hundreds of millions of dollars into SIB when he had not. As part of that effort, Lopez and Kuhrt helped design a fraudulent real estate transaction that involved falsely inflating parcels of land purchased at $63.5 million to a purported value of $3.2 billion.
The investigation was conducted by the FBI, U.S. Postal Inspection Service, IRS-CI and the U.S. Department of Labor, Employee Benefits Security Administration. The case was prosecuted by Assistant U.S. Attorney Jason Varnado of the Southern District of Texas and by Deputy Chief Jeffrey Goldberg and Trial Attorney Andrew Warren of the Criminal Division’s Fraud Section.
Former Dixon Comptroller Rita Crundwell Sentenced to Nearly 20 Years in Federal Prison for $53.7 Million Theft from CityRead the Press Release
ROCKFORD — The former comptroller of the City of Dixon, Ill., RITA A. CRUNDWELL, was sentenced today to 19 years and 7 months, nearly the 20-year maximum, in federal prison for stealing $53.7 million from the city over two decades. Crundwell was taken into custody to immediately begin her sentence, which was imposed by U.S. District Judge Philip G. Reinhard in Federal Court in Rockford.
Crundwell, 60, formerly of Dixon, pleaded guilty on Nov. 14, 2012, to wire fraud, and agreed she also engaged in money laundering, in connection with stealing more than $53 million from the city since 1990 and using the proceeds to finance her quarter horse farming business and life of luxury. It is believed to be the largest theft of public funds in state history.
“This has been a massive stealing of public money – monies entrusted to you as a public guardian of Dixon, Ill.,” Judge Reinhard said in imposing sentence. Crundwell showed “greater passion for the welfare of her horses than the people of Dixon who she represented,” he added.
“While the city was suffering, the defendant was living her dreams,” Assistant U.S. Attorney Joseph Pedersen told the judge during a sentencing hearing that lasted more than two hours today. Crundwell’s “conduct in continuing to take millions of dollars from the City of Dixon to support her lavish lifestyle while she knew that Dixon was in dire financial straits was especially egregious,” the government argued.
Crundwell must serve at least 85 percent of her 235-month sentence and there is no parole in the federal prison system.
Judge Reinhard granted the government’s request for an upward variance in the federal sentencing guidelines. In addition to the financial loss, he found that Crundwell caused a significant non-monetary loss, which involved a loss of public confidence in local government and a significant disruption of government function that struck “at the very heart of Dixon’s abilities to provide essentials for its citizenry.”
The judge ordered agreed restitution to the city of Dixon totaling $53,740,394, and he imposed an agreed forfeiture judgment in the same amount. Following her arrest on April 17, 2012, Crundwell agreed to the liquidation of assets that she had acquired with proceeds from her decades-long fraud scheme. To date, the United States Marshals Service has recovered more than $12.38 million from sales, including online and live auctions, of approximately 400 quarter horses, vehicles, trailers, tack, a luxury motor home, jewelry and personal belongings, while sales of real property in Illinois and Florida remain pending. The net proceeds from the forfeited property – nearly $9.5 million so far – are being held in escrow pending further proceedings on restitution to the City of Dixon. Under federal law, the government may continue to seek additional assets of a defendant and obtain restitution for up to 20 years after a defendant is released from prison.
Gary S. Shapiro, United States Attorney for the Northern District of Illinois, praised the FBI agents who conducted the investigation and the U.S. Marshals Service for its efficient management of the seized assets. “We have used criminal and civil forfeiture proceedings to ensure the recovery of as much money as possible for the City of Dixon and its taxpayers,” he said. “Unfortunately, this case serves as a painful lesson that trust, without verification, can lead to betrayal.”
Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, said: “The law is clear. Those who hold positions of trust must not abuse that trust. We remain committed to holding anyone using an official position for personal gain, as Rita Crundwell did for years, fully accountable for their corrupt actions.”
Dixon, with a population of approximately 15,733, is located about 100 miles southwest of Chicago.
According to her guilty plea and sentencing documents, Crundwell began working for Dixon’s finance department in 1970 while still in high school, and she was appointed comptroller/treasurer in 1983. She began the fraud scheme on Dec. 18, 1990, when she opened a secret bank account, which she alone controlled, in the name of the City of Dixon. The name of the account was “RSCDA – Reserve Fund,” known as the RSCDA account. The initials stood for “Reserve Sewer Capital Development Account,” although no such account actually existed for the city, and Crundwell did not disclose the existence of the secret account. At today’s hearing, the government also presented evidence that Crundwell stole at least $25,000 from a separate Dixon bank account for its Sister City program between 1988 and 1990 before the charged fraud scheme began.
Crundwell began transferring money from city accounts to the RSCDA account in January 1991. Subsequently, she used her position as comptroller to transfer funds from Dixon’s Money Market account and various other city accounts to its Capital Development Fund account. She then repeatedly transferred city funds from the Capital Development Account into the RSCDA account and used the money to pay for her personal and private business expenses, including horse farming operations, personal credit card payments, real estate and vehicles.
In 1991, Crundwell transferred more than $181,000 to the RSCDA account. As the fraud scheme continued, the amounts she stole increased to a high of $5.8 million in 2008, and she took an average of more than $2.5 million a year over the 20-year course of the scheme.
While she was taking these large sums of money, Crundwell participated in budget meetings with city council members and various city department heads. She repeatedly stated that the city’s lack of funds was due to a downturn in the economy and because the State of Illinois was behind in its payments. At the time she made those statements, Crundwell was stealing millions of dollars, causing Dixon to cut its budget, which had a significant impact on city operations.
As part of the fraud scheme, Crundwell created 159 fictitious invoices purported to be from the State of Illinois to show the city’s auditors that the funds she was fraudulently depositing into the RSCDA account were being used for a legitimate purpose. In one instance, on Sept. 8, 2009, Crundwell wrote checks for $150,000 and $200,000 drawn on two of the city’s multiple bank accounts. She deposited both checks into Dixon’s Capital Development Fund account and, later the same day, wrote a check for $350,000 payable to “Treasurer” and deposited that check into the secret RSCDA account. Crundwell created a fictitious invoice to support the payment of $350,000 to the State of Illinois that falsely indicated the payment was for a sewer project in Dixon that the state completed. Later on Sept. 8, 2009, Crundwell wrote a check drawn on the RSCDA account for $225,000, which she deposited into her personal RC Quarter Horses account. She used that money to cover a $225,000 check, dated Sept. 1, 2009, drawn on the RC Quarter Horses account to purchase a quarter horse named Pizzazzy Lady. The purchase check would not have cleared if Crundwell had not deposited $225,000, using city funds, into her horse account on Sept. 8.
To conceal the scheme, Crundwell picked up the city’s mail, including bank statements for the RSCDA account, to prevent other employees from learning about the secret account. When she was away, she asked a relative or other city employees to pick up the mail and separate any of her mail, including the statements for the RSCDA account, from the rest of the city’s mail.
Dixon’s mayor reported Crundwell to law enforcement authorities in the fall of 2011 after another city employee assumed her duties during an extended unpaid vacation. Crundwell, whose annual salary was $80,000 annually at the time, received four weeks of paid vacation and she took an additional 12 weeks of unpaid vacation in 2011. While Crundwell was absent, her replacement requested all of the city’s bank statements. After reviewing them, the employee brought the records of the RSCDA account to the attention of the mayor, who was unaware of the account’s existence.
While serving as Dixon’s comptroller, Crundwell also owned RC Quarter Horses, LLC, and kept her horses at her ranch on Red Brick Road in Dixon and the Meri-J Ranch in Beloit, Wis., as well as with various trainers across the country. In addition to the horses and all of their equipment, among the assets seized or restrained were Crundwell’s two residences and horse farm in Dixon, a home in Englewood, Fla., 80 acres of vacant land in Lee County, a 2009 luxury motor home, more than four dozen trucks, trailers and other motorized farm vehicles, a 2005 Ford Thunderbird convertible, a 1967 Chevrolet Corvette roadster, a pontoon boat, jewelry, and approximately $224,898 in cash from two bank accounts.
The government is represented by Assistant U.S. Attorneys Joseph C. Pedersen and Scott Paccagnini.
Former Controller of Stamford Company Charged with Embezzlng More Than $1 MillionRead the Press Release
February 14, 2013David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that THOMAS J. TUREY, 63, of Norwalk, was arrested today on a federal criminal complaint charging him with wire fraud.
As alleged in the criminal complaint, from 1995 until January 2013, TUREY served as the controller for a market research company located in Stamford. As controller, TUREY’s responsibilities included aggregating the company’s monthly revenue and expense results, managing the company’s accounts receivable, performing financial analysis and reporting, and overseeing the company’s bookkeeper. TUREY also was responsible for the company’s general ledger and was in charge of conducting the company’s bank reconciliations. Between 2010 and 2012, TUREY wrote approximately 100 checks totaling approximately $1.2 million to himself from his employer’s principal operating account and deposited the checks into his personal bank account. The majority of the embezzled funds were subsequently transferred into TUREY’s online brokerage account.
The complaint further alleges that TUREY has embezzled additional funds from his employer. The investigation is ongoing.
TUREY surrendered today to the FBI in Bridgeport. He appeared before United States Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $300,000 bond.
The charge of wire fraud carries a maximum term of imprisonment of 20 years.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Connecticut Resident Admits Running Multimillion Dollar Investment Fraud SchemeRead the Press Release
February 14, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that GARRETT L. DENNISTON, 62, formerly of Sandy Hook, Conn., and Boothbay Harbor, Maine, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of wire fraud stemming from his operation of a multimillion dollar investment fraud scheme.
“This defendant operated an investment fraud scheme by representing to investors that he ran a successful investment business and could offer them a special ‘friends and family’ deal investing in companies for a guaranteed return of their investment plus a high rate of interest,” stated U.S. Attorney Fein. “I commend the FBI and the Greenwich Police Department for shutting down this scheme, and I urge the investing public to be extremely skeptical of any promises of risk-free investments and guaranteed returns.”
According to court documents and statements made in court, from approximately 2005 to 2012, DENNISTON defrauded individuals through a Connecticut company called ConsensusOne, LLC, by holding himself out to potential investors as operating a successful investment business specializing in mergers and acquisitions, and by convincing individuals to make investments in phony stock options or other similarly non-existent investments. During the scheme, DENNISTON told investors that their money would be used to invest in one of the companies that he or his investment business owned and, specifically, that their money would be used to purchase stock options (or promissory notes) convertible into the company’s stock at a substantial discount to the value of the stock on the date of conversion.
DENNISTON also told investors that the companies were on the verge of being sold or had already been sold in deals that were closing on an accelerated schedule. He further indicated that an investment was refundable if the deal did not close, and that he and his company would guarantee the investments, so that the investments were risk-free. DENNISTON also told people that the investment was being offered to them as part of a “friends and family” deal pursuant to which he had access to a limited pool of stock options that would yield a guaranteed return on investment.
In reality, DENNISTON did not invest his victims’ funds in stock options or in any other legitimate investments. Rather, he spent the money on his own personal and business expenses, as well as for other unauthorized uses. DENNISTON used some money for gifts to family members, and spent additional amounts on airfare, hotels, restaurants, country club memberships, golf and ski outings, mortgage and rent payments, cable and telephone bills, furniture, home renovation costs, and other personal living expenses.
Through this investment scheme, DENNISTON defrauded more than 50 victims out of a total of more than $2.5 million. Individual investment amounts ranged from a few thousand dollars to nearly $500,000.
DENNISTON concealed his fraudulent activities by preparing fake legal documents and forging signatures of those documents. At times, he also used one investor’s funds to repay other investors.
DENNISTON has been detained since his arrest on September 19, 2012.
Judge Arterton has scheduled sentencing for June 11, 2013, at which time DENNISTON faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Securities, Commodities and Investor Fraud Task Force, notably the Greenwich Police Department. The case is being prosecuted by Special Assistant United States Attorney Kerry L. Quinn.
The Connecticut Securities, Commodities and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Federal Jury Convicts Coon Rapids Man of Shipping Firearms to LiberiaRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a jury found a 38-year-old Coon Rapids man guilty of transporting firearms to his home country of Liberia. McHarding Degan Galimah, who was indicted on August 22, 2012, was specifically convicted of one count of smuggling firearms from the United States to Liberia.
The evidence presented at trial showed that Galimah purchased 12 firearms from a federally licensed firearms dealer, including seven hi-point, 9-millimeters handguns. In November 2010 and July 2011, he exported those weapons to Liberia and made several trips to that country himself to take possession of the firearms to resell for a profit. At no time did he possess a license to transport the firearms, as required by law. Also, federal regulations prohibit any firearms from being exported to Liberia.
For his crime, Galimah faces a potential maximum penalty of ten years in federal prison. U.S. District Court Judge Ann D. Montgomery will determine his sentence at a future hearing, yet to be scheduled.This case was the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on February 13, 2013:
Kevin Howell, 46, of Michigan City, Indiana, was charged in a five-count Indictment with four counts of distribution of a controlled substance and one count of possession with intent to distribute a controlled substance.These charges were filed as the result of an investigation by the Drug Enforcement Administration.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
Darrius D. Agnew , 33, of Mishawaka, Indiana, was charged in a two-count Indictment with one count of being a felon in possession of firearm(s), and one count of possessing a stolen firearm.These charges were filed as a result of an investigation by the Mishawaka Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Joseph Carl Brownlee , 48, of South Bend, Indiana, was charged in a one-count Indictment with being a felon in possession of a firearm.These charges were filed as a result of an investigation by the South Bend Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
John Carlisle , 49, of New Haven, Indiana, was charged in a thirteen-count Indictment with six counts of financial institution fraud, one count of conspiracy to commit fraud, and six counts of making false statements regarding mortgage loans.These charges were filed as a result of an investigation by the U.S. Department of Housing and Urban Development, Indiana State Police Department, and the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Daniel Haslam , 43, of Converse, Indiana, was charged in a four-count Indictment with one count of possessing an unregistered firearm silencer, one count of manufacturing methamphetamine, one count of possessing firearms, including firearms equipped with silencers, in furtherance of a drug trafficking crime, and one count of being a drug user in possession of firearms.These charges were filed as a result of an investigation by the Converse Police Department, Peru City Police Department, Miami County Drug Unit, Miami County Sheriff’s Department, Grant County Sheriff’s Department, Indiana State Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Ian T. Kideys aka Ayhan T. Kideys, 49, of La Jolla, California and K2 Capital Management Inc. dba US Mortgage Bailout dba USMortgageBailout.com dba iLoanAudit were charged in a twenty-seven count Indictment.Kideys and K2 Capital Management were charged with eight counts of wire fraud, four counts of mail fraud, one count of conspiracy to commit fraud, and fourteen counts of money laundering.These charges were filed as a result of an investigation by the U.S. Department of Housing and Urban Development.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Michael A. Volpe , 46, of Staten Island, New York, was charged in a thirty-six count Indictment with twenty-nine counts of wire fraud, two counts of mail fraud, and five counts of money laundering.These charges were filed as a result of an investigation by the Indiana State Police Department and the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Christopher A. Wilhite, 32, of Francisville, Indiana, was charge in a one-count Indictment with possession of child pornography.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Department of Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney John M. Maciejczyk.
The Wilhite case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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.
Erie Man Used Another’s Social Security Number to Get Loans, Credit CardsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of using a social security number assigned to another and aggravated identity theft, United States Attorney David J. Hickton announced today.
The seventeen-count indictment named Edward Phillips, 58, of Erie, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Phillips obtained and used a social security number that was not assigned to him to obtain various credit cards and loans.
The law provides for a maximum total sentence of 82 years in prison, a fine of $4,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Social Security Administration, Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Edinburg Alien Smuggler Heads to Federal Prison for Alien Harboring ConspiracyRead the Press Release
McALLEN, Texas - Jose Luis Tobias, 28, of Edinburg, has been ordered to prison following his convictions of two counts of conspiring to harbor and transport undocumented aliens and three counts of harboring undocumented aliens, United States Attorney Kenneth Magidson announced today. A federal jury convicted Tobias following two days of trial and approximately five hours of deliberation on Dec. 6, 2012.
Today, U.S. District Judge Micaela Alvarez, who presided over the trial, handed Tobias the 30-month sentence. Tobias will also be required to serve a term of three years of supervised release following completion of the prison term.
Evidence presented at trial proved that on Sept. 25, 2012, Border Patrol agents encountered 31 undocumented aliens in an apartment in Edinburg. The night before, he had assisted in transporting some undocumented aliens north of Edinburg to just south of the Falfurrias checkpoint. When he was apprehended he was preparing to assist in the transportation of more undocumented aliens that night. Evidence also showed that Tobias had also previously delivered food for the undocumented aliens at the Edinburg apartment.
The defense attempted to convince the jury that Tobias was not involved in the alien smuggling and, therefore, not guilty. The jury disagreed and found him guilty of five counts of alien smuggling as charged.
Previously released on bond, Tobias was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol investigated the case with assistance from the Edinburg Police Department and the Hidalgo County Precinct 4 Constable’s Office. Assistant United States Attorneys Kristen Rees and Kim Leo prosecuted the case.
Edgard Enrique Le Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 14, 2013, before U.S. District Judge Dana L. Christensen, EDGARD ENRIQUE LE, a 29-year-old resident of Escondido, California, pled guilty to transportation with intent to engage in criminal sexual activity. Sentencing has been set for May 23, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
The victim was born in 1999. In February 2012, the victim resided in Flathead County. At that time, LE resided in California. LE engaged in an online romantic relationship with the 12-year-old victim. Electronic records show conversations about the victim and LE being in love, that they were "engaged" and that they were going to get married. LE used his cell phone to communicate with the victim.
In early February 2012, LE drove from California to the victim's residence in Flathead County. On February 13 and 14, 2012, LE transported the victim in an automobile out of the State of Montana. The intended destination was LE's residence in California. Prior to reaching his residence, the vehicle they were riding in was stopped by law enforcement southwest of the Nevada/California border in California. During an interview with law enforcement, LE stated that his intent was to take the victim to California with him to live. Once in California, LE intended to have a physical and romantic relationship with the victim that included sex acts.
LE faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $250,000 fine, and lifetime supervision.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Internet Crimes Against Children (ICAC) Task Force, and the Flathead County Sheriff's Office.
Easthampton Man Convicted of CounterfeitingRead the Press Release
BOSTON - An Easthampton man was convicted today in U.S. District Court in Springfield of counterfeiting.
Shayne Pancione, 36, pleaded guilty before U.S. District Judge Michael A. Ponsor to manufacturing and distributing counterfeit United States currency. Sentencing is scheduled for April 1, 2013. The maximum sentence under the statute is 20 years in prison, followed by five years of supervised release and a $250,000 fine.
Between August 28 and Sept. 6, 2011, Pancione manufactured and distributed counterfeit $20 bills in Easthampton and Southampton.
United States Attorney Carmen M. Ortiz; Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service; and Chief Bruce McMahon of the Easthampton Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Branch Office.