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12 February 2013
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 11, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
BENJAMIN QUINN McCHESNEY, a 35-year-old resident of Billings, appeared on charges of kidnaping and kidnaping involving a minor. If convicted of these charges, McCHESNEY faces possible penalties of life in prison, a $250,000 fine, and 5 years supervised release on each count. McCHESNEY also appeared on charges of conspiracy to use firearms during and in relation to a drug trafficking crime, theft of firearms from a licensed dealer, theft of firearms in interstate commerce, and possession of stolen firearms. If convicted of these charges, McCHESNEY faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release on the first count, and 10 years in prison for each of the remaining three counts. Special Assistant U.S. Attorney Ed Zink is the prosecutor for the United States. The investigation was a cooperative effort between the Billings Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictment was returned on February 7, 2013 and unsealed today:
Tracey R. Tigner, 41, of Gary, Indiana, was charged in an Indictment with embezzlement and theft of funds from the Painters District Council 91 of the International Union of Painters and Allied Trades. These charges were filed as the result of an investigation by the United States Department of Labor Office of Inspector General as well as the Office of Labor Management Standards. This case has been assigned to and will be prosecuted by Assistant United States Attorney Randall Stewart.
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.
Hermosa Woman Charged with False Statement and False DeclarationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Hermosa, South Dakota woman has been indicted by a federal grand jury for False Statement to a Federal Agency and False Declaration before a Grand Jury.
Doreen Amiotte, age 47, was indicted by a federal grand jury on January 16, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 8, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 5 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Amiotte is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshal Service. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Amiotte was released on bond pending trial. A trial date has been set for April 2, 2013.
Gregg County Woman Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 23-year-old Longview, Texas, woman has been sentenced to federal prison for bank fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Amanda Henderson pleaded guilty on Nov. 6, 2012 to conspiracy to commit bank fraud and was sentenced to 33 months in federal prison today by U.S. District Judge Michael H. Schneider. Henderson must also pay restitution in the amount of $14,659.25.
According to information presented in court, beginning in May 2011, Henderson and co-defendant, Mark Alan McCullars, created counterfeit checks which appeared to be payroll checks issued by businesses in East Texas. They also created fraudulent drivers’ licenses so that they could cash the counterfeit checks at check-cashing businesses. McCullars and Henderson cashed over 100 fraudulent checks resulting in a loss of $14,659.25 to check cashing businesses in East Texas. They were indicted by a federal grand jury on May 11, 2012. McCullars was sentenced to 51 months in federal prison on Feb. 6, 2013.
This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
####Grandville Man Pleads Guilty to Distribution of Child PornograpyRead the Press Release
GRAND RAPIDS, MICHIGAN – William Russell Odett, 41, of Grandville, Michigan pleaded guilty on Monday, February 11, 2013, to distributing images of child pornography via the Internet, U.S. Attorney Patrick A. Miles, Jr. announced today. Odett faces a minimum of five years and a maximum of 20 years of imprisonment, and he will be required to serve a term of supervised release after his prison term has been completed. Odett will also be required to register as a sexual offender.The case stemmed from an undercover online investigation that took place in May 2012. During that investigation, an undercover officer was able to download child pornography that Odett had made available on the Internet. Agents then executed a search warrant at Odett’s home and recovered a number of computers that contained a substantial collection of child pornography.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
The Department of Homeland Security, Homeland Security Investigations (HSI) and the Ottawa County Sheriff's Office investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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Goodwin Charges Five Men in Connection with A Major Workers’ Compensation Insurance Fraud SchemeRead the Press Release
Defendants conspire to steer millions of dollars away from Brickstreet Insurance
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today charged a workers’ compensation insurance premium field auditor employed by BrickStreet Mutual Insurance Company (“BrickStreet”) with orchestrating a multimillion-dollar fraud on his employer, the state’s leading workers’ compensation provider. Arville W. Sargent, 52, of Chapmanville, Logan County, W.Va., was charged in a two-count information with honest services mail fraud and tax evasion as part of the scheme to defraud BrickStreet.
According to a court document filed today, from its inception in January 2006 until at least February 1, 2011, Sargent engaged in a scheme to defraud BrickStreet by allowing certain policyholders operating in the coal mining industry to drastically underreport their payroll during annual field audits he conducted on behalf of BrickStreet for the intended purpose of confirming those policyholders were paying accurate workers’ compensation insurance premiums. According to the filings today, Sargent purposely allowed four “employee leasing” companies, Aracoma Contracting, LLC (“Aracoma”), Christian Contracting, Newhall Contracting and T&W Services, LLC, all of whom provided labor on a contract basis to coal companies in southern West Virginia, to falsify documents drastically understating their actual payroll. In exchange for saving those policyholders millions of dollars in insurance premiums rightfully owed to BrickStreeet, Sargent accepted hundreds of thousands of dollars in cash bribes and other things of value, including a Yamaha Rhino all-terrain vehicle.
“Mine safety is unquestionably a priority of my office. Today’s filings underscore my commitment to approach this important issue from every angle,” U.S. Attorney Booth Goodwin said. “Employers in the coal mining industry who cheat the workers’ compensation insurance system are really only cheating the hard-working miners who risk injury to perform dangerous jobs to provide for their families.
Goodwin continued, “Failing to honestly and accurately report employment information to insurance companies like BrickStreet potentially exposes those coal miners to devastating financial misfortune if they get hurt on the job. These charges are even more disturbing because these crooked operators were able to compromise the one person entrusted to make sure the employees are properly accounted for: the insurance company’s auditor. This type of corruption has long plagued the coal industry in southern West Virginia and must be stopped.”
In addition to defrauding BrickStreet, the principals of Aracoma, Jerome Eddie Russell, 50, of Williamson, West Virginia and Frelin Workman, 58, of Belfrey, Kentucky, admitted paying a significant number of their employees in cash as part of a tax evasion scheme to avoid the associated payroll taxes. Randy Workman, 36, of Belfrey, Kentucky, similarly utilized a significant cash payroll to evade payroll taxes. Likewise, Arthur White, Jr., 60, of Lenore, West Virginia paid a portion of the payroll for T&W Services, LLC through a shell company, thereby evading taxes.
Sargent, Russell, Frelin Workman and Randy Workman each face up to 25 years in prison and a $500,000 fine.
White faces up to ten years in prison and a $500,000 fine.
The FBI and the IRS are handling the investigations. This investigation was handled in coordination with the United States Attorney’s Office for the Western District of Virginia and the IRS’s local Abingdon, Virginia Resident Agency. Assistant United States Attorney Thomas Ryan is in charge of the prosecutions.
Four Sentenced for Robbing A Traveling Jeweler in College StationRead the Press Release
HOUSTON – Four people have been sentenced to federal prison for robbing an interstate traveling jeweler of jewelry in College Station, United States Attorney Kenneth Magidson announced today.
Ivan Carvajal, 30, and Tito Vargas, 25, both of Houston, previously pleaded guilty and were sentenced by U.S. District Court Judge Lynn Hughes to 136 and 57 months, respectively. Luis Flores, 22, of Houston, and Maria Guitierrez, 32, of Atlanta, Ga., had also entered a plea of guilty and were both previously sentenced to 60 months in prison.
One remaining defendant, Brayan Vargas (no relation to Tito Vargas), 19, of Bogota, Colombia, is currently a fugitive in the case and a warrant remains outstanding for his arrest. A photograph is attached. Crime Stoppers will pay up to $5,000 for any information called in to 713-222-TIPS (8477) or submitted online at www.crime-stoppers.org that leads to the location and arrest of Brayan Vargas. Tips can also be sent by text message. Text TIP610 plus your tip to CRIMES (274637). All tipsters remain anonymous.
On Aug. 24, 2011, the defendants traveled in several cars and followed a traveling jeweler from New York he visited several jewelry stores to show his merchandise. At one point, Gutierrez even followed him into an electronics store as he shopped.
The next day, the five robbers waited for him at the location where he had left his merchandise at the end of the previous evening as he came to retrieve his items. They met with others and followed him again from Houston to College Station in at least four cars. Eventually, in College Station, they robbed him of approximately $200,000 worth of jewelry at gunpoint.
Immediately thereafter, Gutierrez and Carvajal were involved in a traffic accident, but fled. They were soon arrested for fleeing the scene of an accident. Inside the car, officers found broken glass consistent with the recent broken window from the victim’s car along with other evidence tying them to the robbery.
Brayan Vargas and Tito Vargas were later arrested at apartment complex in Houston for their role in the College Station robbery based upon evidence developed after the robbery. At the time of their arrest, agents located a large sum of U.S. currency, a diamond tester and jewelry taken during the College Station robbery. They also discovered jewelry taken during a robbery in Shreveport, La.
Luis Flores was arrested for his role in the College Station robbery while serving time in Texas Department of Corrections for an attempted theft of a jeweler that occurred on April 21, 2011. At the time of the College Station robbery, he was out on bond on that charge.
Brayan Vargas, who was initially arrested on related state charges, had been released on bond on those charges but fled. He is currently a fugitive for both the state warrant and the federal warrant for robbing a jeweler traveling in interstate commerce.
This prosecution is a result of the collaborative work of members of the FBI, police departments in College Station and Navasota, Brazos County District Attorney’s Office and the U.S. Attorney’s Office. Assistant U.S. Attorneys Kebharu H. Smith and Joe Magliolo are prosecuting the case.
Four Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA — Four individuals were sentenced on February
11, 2013, in United States District Court in Martinsburg by Judge Gina M. Groh.United States Attorney William J. Ihlenfeld, II, announced that:
JAMES EDWARD ALSTON, age 45, of Martinsburg, was sentenced to 70 months imprisonment to be followed by three years of supervised release. ALSTON entered a plea of guilty on August 15, 2012, to “Possession with Intent to Distribute Crack Cocaine in Martinsburg. ALSTON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
DARNELL KEITH CAREY age 34, of Kearneysville, West Virginia, was sentenced to
33 months imprisonment to be followed by 12 years of supervised release. CAREY entered a plea of guilty on October 9, 2012, to “Distribution of Crack Cocaine within 1,000 Feet of Pikeside Transitional School.” CAREY was remanded to the custody of the United States Marshal pending designation to a Federal institution.RICHARD TAYLOR, age 42, of Bunker Hill, West Virginia, was sentenced to 24 months imprisonment to be followed by three years of supervised release. TAYLOR entered a plea of guilty on October 10, 2012, to “Distribution of Crack Cocaine” in Martinsburg, West Virginia. TAYLOR was remanded to the custody of the United States Marshal pending designation to a Federal institution.
These cases were prosecuted by Assistant United States Attorney Jarod O. Douglas and former Assistant United States Attorney Thomas O. Mucklow and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
RUSTY MARK EDWARDS, age 38, of Ridgeley, West Virginia, was sentenced to 60 months imprisonment to be followed by four years of supervised release. EDWARDS entered a plea of guilty on August 13, 2012, to “Possession with Intent to Distribute 202.7 Grams of Crack Cocaine” in Ridgeley, Mineral County, West Virginia. EDWARDS, who is free on bond, will self-report to the designated Federal institution on March 12, 2013.
This case was prosecuted by Assistant United States Attorney Jarod O. Douglas and former Assistant United States Attorney Thomas O. Mucklow and investigated by the Potomac Highlands Drug & Violent Crime Task Force (consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations); the Allegany County, Maryland, Task Force; the Washington County, Maryland, Task Force, and the FBI.
Former University Community Hospital Employee Pleads Guilty to Tax Fraud and Aggravated Identity TheftRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Tanya Cullens today pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service, wire fraud, theft of government funds, and one count of aggravated identity theft. She faces a maximum penalty of 5 years in federal prison for the tax fraud conspiracy and a consecutive 2-year mandatory minimum term of imprisonment for the aggravated identity theft charge.
According to the plea agreement, in 2012, Cullens was a member of the cleaning staff at University Community Hospital. On January 17, 2012, Cullens stole a patient list from the hospital. The list contained the names, dates of birth, and social security numbers of 48 patients who had been treated at University Community Hospital.
Shortly after stealing the patient list from the hospital, Cullens provided the list to her friend and co-conspirator, who used the list to file fraudulent tax returns with the IRS. None of the individuals whose personal information appeared on the fraudulently filed tax returns knew that the conspirators were filing the returns on their behalf. In total, ten fraudulent tax returns were filed by the conspirators, totaling approximately $79,204 in bogus tax refunds. Ultimately, the IRS paid out $44,080.00 in refunds to the conspirators.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Former USACE Engineer Sentenced to Federal Prison for BriberyRead the Press Release
GALVESTON, Texas - Christopher Castillo, 33, of Monte Alto, has been handed a federal prison sentence after having been convicted of one count of bribery, United States Attorney Kenneth Magidson announced today. Castillo entered a plea of guilty before U.S. Magistrate Judge John Froeschner on Aug. 22, 2012, which was later accepted by U.S. District Judge Gregg Costa.
Today, Judge Costa considered the evidence and sentenced Castillo to a term of 48 months in federal prison to be followed by three years of supervised release. Castillo was also ordered to pay a $50,000 fine. Calling bribery a serious offense, Judge Costa noted commented that Castillo was living the American Dream as an engineer with a master’s degree, but that was not enough for him. At the hearing, Castillo offered an apology for his actions.
“The actions of this individual are not in line with the Army's Core Values nor are they reflective of the service the Corps provides our nation,” said Col. Christopher Sallese, district commander of the U.S. Army Corp of Engineers (USACE) Galveston District. “As public servants, we are committed to managing taxpayers' dollars while maintaining the publics' trust and we will continue to work with the Criminal Investigation Command and Department of Justice to ensure that employees and contractors who commit fraud are held accountable.”
Castillo was a civil engineer with USACE under the direction of the Galveston office. At the time of his plea, he admitted that as part of his official duty, he supervised projects in the Southern District of Texas and the performance of government contractors. One such contractor had been involved in numerous construction jobs for the U.S. government in 2010, 2011 and 2012, including an emergency power cooling building for the U.S. Border Patrol located in Hidalgo County. As supervisor of that project, Castillo could terminate work if he believed it was unfavorable or he could unfavorably report to USACE thereby preventing the company from getting future contracts.
A USACID agent obtained information that Castillo solicited and received a new concrete driveway from the owner of that company in late 2010 while it was engaged in contract services for the U.S. government. Specifically, Castillo asked that his driveway be paved and that the owner must pay for the work. The owner was afraid to refuse because Castillo could prevent him from getting government contracts.
The owner paid another person to install the driveway, paid the expenses and supplied much of the material. The project had an estimated value of $80,000 and was completed on or about Jan. 14, 2012.
Previously released on bond, Castillo 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 case was investigated by United States Army Criminal Investigation Command's USACID and is being prosecuted by Assistant United States Attorney James McAlister.
Former Homer Housing Authority Director and Five Others Sentenced for Theft of Public MoneyRead the Press Release
430,000 in checks written for work never performed
SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that former Homer Housing Authority executive director Michelle Green, 35, of North Little Rock, Ark., and five co-defendants were sentenced before U. S. District Judge Elizabeth E. Foote for defrauding the HHA out of $430,000.
Green was sentenced to 37 months in prison, three years of supervised release, and was ordered to pay $430,000 in restitution to the U.S. Department of Housing and Urban Development (HUD).
Green pleaded guilty Oct. 29, 2012 to causing checks to be issued to friends and relatives for work allegedly performed for HHA. The defendants admitted they did no work for HHA, and that they usually cashed the checks and returned much of the proceeds to Green. More than $430,000 worth of checks were written between December 2007 until Green was fired in April 2011. Green and five co-defendants were indicted in July 2012.
Co-defendant Curtis L. Mays, 34, of Harker Heights, Tx., was sentenced to probation, five years supervised release, and was ordered to pay $26,176 in restitution.
Katrina G. Robertson, 38, of Haynesville, La., received probation, five years supervised release, and $26,176 in restitution.
Flack D. Robertson, 35, of Haynesville, La., was sentenced to probation, five years supervised release, and $50,190 in restitution.
Aaron Perry, 29, of Haynesville, La., received probation, three years supervised release, and $20,630 in restitution.
Katrina Henderson, 34, of Shreveport, received probation, three years of supervised release, and $15,380 in restitution.
“The victims in this case are the Homer Housing Authority and the citizens of Homer, Louisiana. The defendants sought to enrich themselves at the expense of the residents who could potentially qualify and are in need of low-income housing opportunities,” Finley said. “The citizens of this community lose when criminals steal from programs like this. Our office will continue to investigate and prosecute anyone who violates the public trust in this manner.”
The Housing and Urban Development-Office of Inspector General and the FBI investigated the case. Senior Litigation Counsel Joseph G. Jarzabek prosecuted the case.
Former Department of Defense Contractor Sentenced to 30 Months in Prison for Smuggling Kickback Proceeds from Afghanistan to the United StatesRead the Press Release
A former employee of a Department of Defense contracting company at Bagram Airfield, Afghanistan, was sentenced today to serve 30 months in prison for attempting to smuggle $150,000 in kickback proceeds he received for steering U.S. government subcontracts to an Afghan company, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Barry Grissom of the District of Kansas.
Donald Gene Garst, 51, of Topeka, Kan., was sentenced by U.S. District Judge Julie A. Robinson in Topeka. In addition to his prison term, Garst was sentenced to serve one year of supervised release and was ordered to pay a fine of $52,117. The department previously forfeited the $150,000 Garst had attempted to smuggle into the United States.
Garst pleaded guilty on Nov. 9, 2012, to a one-count information charging him with bulk cash smuggling. According to court documents, Garst was employed by a private U.S. company that was contracted by the U.S. government and its armed forces at Bagram Airfield from January 2009 to May 2011. Garst was involved in identifying, evaluating and monitoring subcontracts awarded to Afghan companies by his employer, and he used his position to meet executives of an Afghan construction company called Somo Logistics. Garst then entered into an agreement with the Afghans under which he would receive kickback payments on a contract-by-contract basis in return for treating Somo Logisitcs favorably in the contracting process.
In December 2010, Garst accepted a kickback for $60,000 on the first subcontract awarded to Somo Logistics. The subcontract was for the term lease of heavy equipment meant to be used for construction on Bagram Airfield. Garst hand-carried approximately $20,000 of the kickback proceeds into the United States, and he received the remainder via a series of structured wire transfers from Somo Logistics executives.
In May 2011, Garst accepted a $150,000 kickback for a second subcontract for the lease of heavy construction equipment. Garst shipped the $150,000 in cash to the United States, and his failure to declare the value of the shipment was discovered by law enforcement.
Garst had further agreed to receive $400,000 on a third subcontract, but his scheme was discovered by law enforcement before he could receive that payment.
This case is being prosecuted by Assistant U.S. Attorney Jared Maag and Trial Attorney Wade Weems of the Criminal Division’s Fraud Section. The case was investigated by Special Agents with the Army Criminal Investigations Division and the Defense Criminal Investigative Service, with assistance from the Special Inspector General for Afghanistan Reconstruction and the FBI.
Former Cortez Resident Indicted for Wire Fraud and Income Tax EvasionRead the Press Release
DENVER – Brian K. Shoults, age 42, of Mesa, Arizona, was indicted last week by a federal grand jury in Durango, Colorado, for wire fraud and income tax evasion, the United States Attorney’s Office and IRS – Criminal Investigation announced. Shoults was arrested on February 8, 2013, and on that date appeared before a U.S. Magistrate Judge in Durango. He was released on a $50,000 unsecured bond. He is expected to be back in court on April 19, 2013 for arraignment, which will also take place in Durango.
According to the indictment, from April 8, 2008, through August 25, 2011, Shoults executed a scheme to defraud the Copy Shop Inc. (doing business as Office Outpost), located in Cortez, Colorado, in an effort to embezzle more than $250,000 from that company.
Shoults, a bookkeeper for Office Outpost, would allegedly electronically wire money from the Office Outpost accounts for his own personal use without the knowledge of any other employees or owners of the Office Outpost. He electronically logged into Office Out Post's accounts at Community Banks of Colorado, located in Cortez, Colorado, to transfer money from the Office Outpost's accounts into two of his personal bank accounts over which he had signatory authority.
As bookkeeper, Shoults oversaw Office Outpost's payroll, including the calculation and payment of payroll checks to Office Outpost's employees. He had authority to access Office Outpost accounts and draw on those funds in order to pay payroll expenses as well as other business expenses incurred by Office Outpost. He also had sole responsibility for reconciling the Office Outpost's bank statements with its internal books and records. This allowed Shoults to write checks from the Office Outpost's accounts without supervision from or the knowledge of other employees or owners of Office Outpost.
Shoults allegedly committed tax evasion for years 2008, 2009, 2010, and 2011 by willfully failing to report all income he actually received from Office Outpost. For each corresponding year, he was required to report all income on his U.S. Individual Income Tax Form 1040 which was required to be filed the following year by April 15. Using his position at Office Outpost, he manipulated his W-2 form to show less income then he actually received from Office Outpost. Such additional taxable income substantially increases the amount of tax due and owing to the United States of America.
“The old adage ‘Trust but Verify’ is particularly important for business’ books and financial records,” said U.S. Attorney John Walsh. “All too often, leaving one person in charge of bookkeeping opens the door to massive theft,” as in this case.”
“This is a reminder that all taxpayers should file complete and accurate tax returns; all income regardless of the source is taxable,” said Steven Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “It’s important for business to have good internal controls which includes segregation of duties to help reduce fraud and errors.”
“This case like most embezzlement cases is a prime example of how only having one employee overseeing the businesses’ banking accounts can end up in a big loss for the business,” said Cortez Police Department Detective Lieutenant Jim Kingery said. “The thefts start out small but once they’ve tested the waters and gotten away with it they generally go for more. Thankfully with the Cortez Police Department and the IRS – Criminal Investigations working together there can be a positive outcome. When you have specific crimes like this it is good to be able to work with an agency that does this on an everyday basis.”
Shoults was charged with one hundred and twenty-three counts of wire fraud and four counts of attempting to evade or defeat tax (income tax evasion). If convicted of wire fraud he faces not more than 20 years in federal prison, and a fine of up to $250,000 per count. If convicted of tax evasion he faces not more than 5 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by IRS-Criminal Investigation and the Cortez Police Department. The case is being prosecuted by Assistant U.S. Attorney James Candelaria.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
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Former Central Falls Mayor, Business Associate Sentenced on Federal Corruption ChargesRead the Press Release
PROVIDENCE, R.I. – Former Central Falls, R.I., Mayor Charles D. Moreau, 49, of Lincoln, R.I, and longtime friend, business associate and political supporter Michael G. Bouthillette, 49, of Lincoln, R.I., were sentenced in U.S. District Court in Providence today for participating in a corruption scheme in which the former mayor accepted goods and services from Mr. Bouthillette as a reward for having directed and provided board-up work on more than 160 properties in Central Falls between 2007 and 2009, announced United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.U.S. District Court Judge John J. McConnell sentenced Moreau to 24 months in federal prison, to be followed by 3 years of supervised release, 300 hours of community service, and a fine of $25,000.
Bouthillette was sentenced to 3 years of probation, including 2,000 hours of community service to the residents of Central Falls – the equivalent of one year of fulltime employment without pay - and a fine of $5,000. The court also ordered Bouthillette to provide the Rhode Island Foundation with a payment of $160,000 to establish an endowment of charitable funds for the residents of Central Falls for public safety, housing and education programs. In addition, Bouthillette is prohibited from collecting more than $275,000 in liens placed on properties for board-up work he performed for which he yet to be paid. The court ordered that any remaining funds to be collected by Bouthillette are to be provided to the City of Central Falls.
On November 19, 2012, Moreau admitted to the court that beginning in September 2007, he ordered that all vacated homes in Central Falls be boarded up by his longtime friend and political supporter, Michael Bouthillette. Bouthillette admitted to the court that as a reward, on three occasions, he corruptly provided Moreau with things of value. Moreau and Bouthillette each pled guilty to one count of Federal Program Fraud.
An investigation conducted by the United States Attorney’s Office, the Rhode Island Department of the Attorney General and the Rhode Island State Police revealed that beginning in September 2007, Moreau circumvented the State requirement that such work go out for competitive bidding by declaring that each vacant home presented as an “emergency” necessitating an immediate board-up. From approximately September 2007 to July 2009, Bouthillette boarded up at least 167 homes.
The investigation revealed that Bouthillette submitted an invoice to the City of Central Falls for a board-up, at which time a lien was placed on the subject property for the amount of the invoice. As foreclosed properties were sold and the liens discharged, Central Falls would pay Bouthillette. The scheme allowed Bouthillette to make unreasonable profits amounting to hundreds of thousands of dollars.
Bouthillette admitted to the court that as reward to the former mayor for providing him with the board-up work, on three occasions he gave Moreau things of value. Bouthillette admitted that in March 2009, he assisted Moreau in obtaining a furnace for Moreau’s Central Falls residence for which Bouthillette admitted that he contributed at least a portion of the purchase price; Bouthillette admitted that, from March to November of 2009, he provided numerous renovations and repairs to a Lincoln residence owned by Moreau which Moreau never paid for; and Bouthillette admitted to the court that in April 2010, he provided flood remediation work at Moreau’s Lincoln home which Moreau never paid for. Moreau admitted to the court that he accepted each of these gratuities from Bouthillette.
The cases were prosecuted in federal court by Assistant U.S. Attorney Terrence P. Donnelly and Rhode Island Assistant Attorney General J. Patrick Youngs.
Contact: 401-709-5357
[email protected]Florida Man Pleads Guilty to Federal Election ViolationRead the Press Release
A Florida resident pleaded guilty today to causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC), announced Assistant Attorney General Lanny A. Breuer of the Justice Department?s Criminal Division and Robert O. Davis, Acting U.S. Attorney for the Northern District of Florida. Jay Odom, 56, of Destin, Fla., pleaded guilty before Senior U.S. District Judge Lacey A. Collier in the Northern District of Florida to one count of causing another to make false statements to the FEC. According to court documents, in approximately December 2007, Odom directly and indirectly solicited employees of his business entities and their family members to each make the maximum allowable contributions to the authorized campaign committee of a presidential candidate. The employees were encouraged to make these donations with the understanding that Odom would advance funds to or reimburse these individuals for their contributions. Odom admitted to both knowing that this activity was illegal and intending to conceal the true source and amount of the campaign contributions. In 2007, Odom directly or indirectly used personal funds to reimburse individual contributions to the authorized campaign committee of the presidential candidate for a total of $23,000. As a result of this scheme, Odom intentionally caused the presidential candidate?s authorized campaign committee to file a report with the FEC that falsely stated that 10 individual donors had made federal campaign contributions when in fact each contribution was made by Odom. At sentencing, scheduled for April 23, 2013, Odom faces a maximum potential penalty of five years in prison. This case was investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division?s Public Integrity Section.Five Convicted in Relation to $20+ Million ‘Black Market Peso Exchange’ SchemeRead the Press Release
HOUSTON – One of the leaders of an organization that laundered more than $20 million through “shell” business bank accounts has just entered a guilty plea in federal court in Houston, United States Attorney Kenneth Magidson announced today along with Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. With the plea of Enrique Morales, 42, of Houston and Guadalajara, Mexico, five people taken into custody in relation to the scheme have now been convicted.
Morales pleaded guilty to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business before U.S. District Judge Lee H. Rosenthal this morning.
Willie Whitehurst, Fulton Smith and Anthony Foster, all from Houston and money couriers for the organization, also pleaded guilty to the same two charges. Smith, 40, entered a plea yesterday while Whitehurst, 44, and Foster, 47, pleaded guilty last month. An office manager for the organization - Sarah Combs, 48, of Dickinson - previously pleaded guilty to conspiracy to operate an unlicensed money transmitting business.
In August 2012, a federal grand jury in Houston indicted the five defendants for their parts in a large “Black Market Peso Exchange” scheme. From October 2009 to September 2011, the defendants placed U.S. currency gained through the sale of drugs in U.S. cities into bank accounts held in the name of the organization’s “shell” companies. The money was then transferred to different accounts in the U.S. and in Mexico. In exchange, pesos were transferred back to accounts owned by the organization’s clients.
Foster, Whitehurst and Combs are scheduled for sentencing on May 9, 2013, while Smith and Morales are set for May 29, 2013. For the money laundering conspiracy, Morales, Whitehurst, Foster and Smith face up to 20 years in federal prison and a $500,000 fine, or twice the value of the property involved in the offense, whichever is greater. All five face up to five years in federal prison and a fine of $250,000 for conspiracy to operate an unlicensed money transmitting business.
The case was investigated by the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Ted Imperato of the Southern District of Texas and Trial Attorney Keith Liddle of the Justice Department’s Money Laundering and Bank Integrity Unit are prosecuting the case.
Erie Man Facing Multiple ChargesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The three-count indictment named Douglas E. Melter, 32, as the sole defendant.
According to the indictment presented to the court, Melter attempted to induce a minor to engage in illegal sexual activity, possessed computer images depicting minors engaging in sexually explicit conduct and possessed a firearm while he was a convicted felon.
The law provides for a maximum total sentence of life in prison, a fine of$750,000, 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, the Pennsylvania State Police and the Erie Police Department 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.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Drug-Using Gun Thief Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
JOHNSTOWN, Pa. - A resident of Irvona, Pa., pleaded guilty in federal court to charges of violating federal firearms laws, United States Attorney David J. Hickton announced today.
"We in the U.S. Department of Justice are working to ensure that every appropriate resource is focused on preventing gun violence and keeping firearms out of the hands of prohibited persons. One of the ways illegal guns get into the hands of criminals is when illegal drug users trade guns that have been bought or stolen for controlled substances," said U.S. Attorney Hickton. "In this case, the defendant was a prescription drug abuser who stole 72 firearms from his employer, a federally- licensed firearms dealer, and either sold them for cash to purchase drugs or traded them to acquire drugs. Fortunately, the vast majority of the firearms have been recovered."
"ATF's priority is protecting our neighborhoods from violent crime. Public safety is threatened when firearms are diverted from lawful commerce to the criminal element," said Acting Special Agent in Charge Donald Robinson of the ATF Philadelphia Field Division. "Individuals who traffic in firearms or criminally possess firearms will be targeted and arrested by ATF in our continued efforts to prevent and reduce firearms related violence in our communities."
Justin D. McElheny, 35, pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Dec. 2007 to Oct. 15, 2011, McElheny stole 72 firearms, including revolvers, pistols and rifles of various calibers, from East Coast Gun Sales. In addition, during the same time McElheny was in possession of the stolen firearms, he was an unlawful user of Percocet, Oxycontin, Roxicet and Vicodin.
Judge Gibson scheduled sentencing for June 27, 2013 at 9:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the Judge released the defendant on $25,000 unsecured bond. Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police and the Allegheny Township Police Department conducted the investigation that led to the prosecution of McElheny.
According to Mr. Hickton, McElheny is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
District Man Sentenced to 20-Year Prison Term, Arrested After Authorities Intercept Heroin Shipments-Drugs Hidden in Lampshades, Dresses, Other Items-Read the Press Release
WASHINGTON - Gary Allen Lewis, 43, was sentenced today to a 20-year prison term on a federal drug charge stemming from an investigation into shipments of large quantities of heroin into Washington, D.C., U.S. Attorney Ronald C. Machen Jr. announced.
Lewis, of Washington, D.C., pled guilty in February 2012 in the U.S. District Court for the District of Columbia to a charge of possession with intent to distribute heroin. He was sentenced by the Honorable Robert L. Wilkins.
Lewis was arrested in August 2011, following an investigation led by the U.S. Department of Homeland Security and Metropolitan Police Department (MPD). Authorities intercepted a series of shipments of heroin before any of the drugs could be distributed on the street. The drugs were hidden in packages to be delivered to the residences of the defendant’s relatives in Northeast Washington. In the various shipments, heroin was hidden inside lampshades, pencil containers, the hems of dresses, and the lining of purses.
Overall, the drugs had an estimated street value of about $150,000.
According to the government’s evidence, on Aug. 4, 2011, agents from the U.S. Department of Homeland Security at John F. Kennedy International Airport in New York intercepted a package that had been shipped from India and was addressed to “Ebony Mays,” at a location in Northeast Washington, D.C. When agents opened the box, they found pillow covers and decorative lampshades. A further inspection of the lamp shades revealed heroin hidden in the shades’ frames. The total amount of heroin contained in the package was 480 grams.
A controlled delivery of the package was coordinated with law enforcement officials in Washington, D.C. On Aug. 10, 2011, an undercover officer attempted to deliver the package and was greeted at the location by the defendant’s sister, who agreed to accept the package after falsely identifying herself as “Ebony Mays.” A brief time later, Lewis arrived at his sister’s home to retrieve the package. Once Lewis had retrieved the package from inside of the house, he was stopped and arrested as he was trying to put the package into his vehicle.
In addition, on July 14 and 15, 2011, Lewis arranged to have two other packages of heroin, each containing about one-half kilogram of heroin, shipped to the United States. The heroin was to be hidden inside some other product to disguise it and prevent its detection by law enforcement. Both packages were to be delivered to the Northeast Washington home of Lewis’s mother. The first package contained dresses, with packages of heroin sewn into the hems. The second package contained two purses and three scarves. Inside the lining of each of the two purses was secreted a package of suspected heroin. Both packages were seized by the U.S. Customs and Border Protection component of the Department of Homeland Security.
An analysis by the U.S. Drug Enforcement Administration revealed that the two packages contained about 526.1 grams and 459.2 grams, respectively, of a mixture and substance containing a detectable amount of heroin.
Some time prior to Aug. 8, 2011, Lewis arranged to have yet another package of heroin shipped to the United States. The heroin was to be hidden inside another product in order to disguise it and to prevent its detection by law enforcement. The package was delivered to the Northeast Washington home of Lewis’s aunt. Lewis acknowledged that he asked his aunt to accept this package on his behalf. This package was seized by Customs and Border Protection on Aug. 8, 2011. The package contained pencil containers; hidden in each of the pencil containers was a mixture and substance containing a detectable amount of heroin. On Aug. 11, 2011, an undercover investigator from the U.S. Postal Inspection Service delivered the package to the listed address and it was accepted by the defendant’s aunt. After the passage of a certain amount of time, agents of the Department of Homeland Security retrieved the package. The suspected heroin was sent to the DEA for analysis. An analysis of that substance revealed that it contained 440.2 grams of a mixture and substance containing a detectable amount of heroin.
In announcing the sentence, U.S. Attorney Machen commended the work of members of the U.S. Department of Homeland Security and its U.S. Customs and Border Protection component, as well as the Metropolitan Police Department and the U.S. Postal Inspection Service. He also acknowledged the efforts of Assistant U.S. Attorneys Rikki McCoy, Arvind Lal, who secured the indictment in the case, and Emory V. Cole and Brittan K. Heller, who prosecuted the case.
13-050Discovery Bay Resident Faces Class A Misdemeanor Charges for Failing to File Federal Tax ReturnsRead the Press Release
OAKLAND, Calif. – William H. Paris Jr., aka Bubba Paris, was charged yesterday with failing to file tax returns with the IRS, United States Attorney Melinda Haag and IRS Criminal Investigation Special Agent in Charge Jose M. Martinez announced.
According to a Criminal Information, for the calendar years 2006, 2007 and 2008, Paris received gross income of $57,186.96, $83,856 and $41,700, respectively, but failed to file federal income tax returns for those years as required.
Paris, of Discovery Bay, Calif., is scheduled to be arraigned in federal court in Oakland, before United States Magistrate Judge Kandis A. Westmore, on March 4, 2013.
The maximum statutory penalty for each count of failure to file a tax return, in violation of Title 26, U.S.C. § 7203, a class A misdemeanor, is one year in prison and a fine of $100,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Charles Parker is the Special Assistant United States Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Please note, an Information contains only allegations against an individual and, as with all defendants, Paris must be presumed innocent unless and until proven guilty.
Destin Man Pleads Guilty to Federal Election ViolationRead the Press Release
PENSACOLA, FLORIDA – Jay Odom, 56, of Destin, pleaded guilty today before Senior U.S. District Judge Lacey A. Collier to one count of causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC). The guilty plea was announced this afternoon by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Robert O. Davis, Acting United States Attorney for the Northern District of Florida.
According to court documents, in approximately December 2007, Odom directly and indirectly solicited employees of his business entities and their family members to each make the maximum allowable contributions to the authorized campaign committee of a presidential candidate. The employees were encouraged to make these donations with the understanding that Odom would advance funds to or reimburse these individuals for their contributions. Odom admitted to both knowing that this activity was illegal and intending to conceal the true source and amount of the campaign contributions.
In 2007, Odom directly or indirectly used personal funds to reimburse individual contributions to the authorized campaign committee of the presidential candidate for a total of $23,000. As a result of this scheme, Odom intentionally caused the presidential candidate’s authorized campaign committee to file a report with the FEC that falsely stated that 10 individual donors had made federal campaign contributions when in fact each contribution was made by Odom.
At sentencing, scheduled for 10:30AM on April 23, 2013, Odom faces a maximum potential penalty of five years in prison.This case was investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Deported Alien Charged with Violating Federal Immigration LawsRead the Press Release
ERIE, Pa. - A former resident of Guanajuato, Mexico has been indicted by a federal grand jury in Erie on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Maria Del Rocio Veloz-Alonso, 28, as the sole defendant. According to the indictment presented to the court, on or about January 14, 2013, VelozAlonso was found to be unlawfully present within the United States. Veloz-Alonso had been previously ordered deported and removed from the United States on August 27, 2010 and was removed from the United States on April 1, 2011. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 2 years in prison, a fine of$250,000, or both. Under the Federal Sentencing Guidelines; the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Bureau of Customs and Border Protection 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.
Deported Alien Charged with Illegally Re-entering United StatesRead the Press Release
ERIE, Pa. - A former resident of Oaxaca, Mexico has been indicted by a federal grand jury in Erie on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Evaristo Bautista-Santiago, 33, as the sole defendant.
According to the indictment presented to the court, on or about February 3, 2013, BautistaSantiago was found to be unlawfully present within the United States. Bautista-Santiago had been previously ordered deported and removed from the United States on April 13, 2001 and was removed from the United States on October 12, 2012. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Bureau of Customs and Border Protection 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.
Danny Thomas Fox Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 12, 2013, before U.S. District Judge Sam E. Haddon, DANNY THOMAS FOX, a 25-year-old resident of Poplar, appeared for sentencing. FOX was sentenced to a term of:
Prison: 35 months
Special Assessment: $100
Forfeiture: shotgun
Supervised Release: 3 years
FOX was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On July 11, 2012, FOX, a convicted felon, was spotted by Fort Peck law enforcement standing by a vehicle with a shotgun in the middle of the night. He dropped the shotgun and began to run. Law enforcement pursued him, ultimately arresting him and securing the shotgun.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FOX will likely serve all of the time imposed by the court. In the federal system, FOX does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Poplar Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Connecticut Man Sentenced to More Than 15 Years in Federal Prison for Operating Mortgage Fraud SchemeRead the Press Release
February 12, 2013The United States Attorney for the District of Connecticut announced that WILLIAM A. TRUDEAU, JR., 50, Norwalk, was sentenced today by United States District Judge Janet C. Hall in New Haven to 188 months of imprisonment, followed by five years of supervised release, for operating a mortgage fraud scheme in Fairfield County. In addition, TRUDEAU’s wife, HEATHER BLISS, 37, was sentenced today to 30 months of imprisonment, followed by three years of supervised release, for her role in the scheme. BLISS was also ordered to pay a fine of $12,500.
On October 9, 2012, a jury found Trudeau guilty of one count of conspiracy to commit bank fraud, mail fraud and wire fraud, and one count of wire fraud. On July 30, 2010, BLISS pleaded guilty to one count of conspiracy to commit wire fraud.
According to the evidence and witness testimony during TRUDEAU’s trial, in 2004, TRUDEAU and Joseph Kriz, a real estate attorney in Wilton, formed Aspetuck Building & Development through which TRUDEAU, Kriz and others intended to purchase, develop and sell properties. TRUDEAU was an unnamed principal in the business. BLISS was employed as a paralegal for Kriz and, in that capacity, had responsibility for preparing and maintaining all legal and bank documents related to real estate transactions handled by Kriz.
From approximately February 2004 to April 2010, TRUDEAU conspired with BLISS, Kriz, Fred Stevens, Thomas Preston and others to defraud federally insured financial institutions and mortgage lenders. As part of the scheme, TRUDEAU and his co-conspirators submitted false mortgage loan applications to financial institutions to obtain mortgages on various properties in Fairfield County in order to develop and sell the properties for profit, and to pay off debts owed to “hard money” lenders from whom they had previously obtained high interest loans. The mortgage applications, which included false income information and omitted the mortgage applicants’ true indebtedness, caused the financial institutions to issue mortgage loans on properties that TRUDEAU and his co-conspirators would not have otherwise been qualified to purchase, allowing the applicants to qualify for mortgages that far exceeded their ability to repay the loans.
As a paralegal, BLISS prepared and maintained numerous fraudulent mortgage documents involved in the scheme. She also overstated her income on mortgages for which she had personally applied, and applied for new mortgages within 60 days of receiving prior mortgages knowing that the earlier mortgage would not be revealed when BLISS’s credit report was run by the financial institution to which she applied.
BLISS also nominally owned Huntington South Associates, LLC, a shell company that TRUDEAU used to pay for personal expenses and to secure loans fraudulently. During the scheme, BLISS used mortgage funds that were wired into Huntington South Associates’ bank account as her “business income” on mortgage loan applications in order to qualify for additional mortgages, including a $1.3 million mortgage on a property in Westport.
As a result of a 2003 federal conviction for fraud and tax offenses, TRUDEAU was prohibited from owning or operating any business that was not in his own name, from incurring new credit charges or opening additional lines of credit without prior approval from the U.S. Probation Office, and he was required to release all of his financial information to the Probation Office. He also was ordered to pay more than $450,000 in restitution. According to the evidence and testimony at his trial, TRUDEAU’s name did not appear on any documentation related to the loans or the properties for which the loans were obtained, and money was hidden in bank accounts that were not in TRUDEAU’s name in part to prevent the collection of his court-ordered restitution.
Toward the end of the conspiracy, TRUDEAU, with the assistance of others, sought additional monies from a private lender purportedly to complete construction on one of the properties. TRUDEAU claimed to have a signed purchase contract for the property when, in truth, he did not. The evidence at trial established that TRUDEAU took the money for uses unrelated to the completion of the property.
Through this scheme, TRUDEAU and his co-conspirators fraudulently obtained more than $4 million in mortgage loans to purchase six properties in Westport and Newtown. To date, mortgage lenders have lost more than $1.9 million. In addition, during the scheme, TRUDEAU defrauded private lenders of a total of more than $1 million, and Kriz stole approximately $3.5 million from his IOLTA account. More than $1.2 million of the stolen IOLTA account funds were deposited into the bank account of Huntington South Associates and used during the conspiracy.
TRUDEAU and BLISS will be ordered to pay restitution of more than $4.2 million.
TRUDEAU, whose criminal history includes approximately 13 felony convictions, has been detained since August 9, 2011, when his bond was revoked.
Kriz, Stevens and Preston have pleaded guilty to charges related to their involvement in this scheme and await sentencing.
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Rahul Kale and Christopher Schmeisser.
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.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Carnegie Man Charged with Possession of CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Carnegie, Pa., has been indicted by a federal grand jury in Johnstown, Pa., on a charge of possession of cocaine, United States Attorney David J. Hickton announced today.
The one-count indictment named Brian J. Wimbley, 41.
According to the indictment, on Jan. 26, 2012, Wimbley possessed less than 500 grams of cocaine with the intent to distribute it.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Carbon County Woman Pleads Guilty to Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Carbon County woman pleaded guilty today before Senior United States District Judge Edwin M. Kosik to the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Bonnie Vosburgh, age 22, of Nesquehoning, Carbon County, admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2011 and December 2012.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
In this particular case, the maximum penalty under the federal statute is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Californians Charged in Marijuana Distribution SchemeRead the Press Release
PITTSBURGH, Pa. -Two residents of Los Angeles, Calif., have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Alexandra Ann Haag, 24, and Erica Rae Auer, 24.
According to the indictment presented to the court, from 2011 to April 20, 2012, Haag and Auer conspired to distribute less than 50 kilograms of marijuana.
The law provides for a maximum total sentence of up to five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, the Pennsylvania State Police, and United States Department of Homeland Security 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.
CEO Pleads Guilty to Securities Kickback SchemeRead the Press Release
BOSTON - The CEO of a publicly-traded company was convicted today on charges that he paid kickbacks in return for purchases of his company’s stock.
Muhammad (M.J.) Shaheed, 45, pleaded guilty before U.S. District Judge Douglas P. Woodlock to three counts of wire fraud and three counts of mail fraud. Sentencing is scheduled for June 3, 2013.
Shaheed, who was the CEO of a publicly-traded company, Augrid Global Holdings Corporation, paid secret kickbacks to an investment fund representative. In exchange, the fund representative used fund monies to purchase stock in Shaheed’s company. The kickbacks were concealed through sham consulting agreements and other fraudulent documentation. In actuality, however, and unbeknownst to Shaheed, the purported investment fund representative was an undercover FBI agent.
The plea followed a year-long investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small, publicly-traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
Shaheed is one of 15 defendants criminally charged for participating in this kickback scheme. Six of those charged have now pleaded guilty.
The statutory maximum sentence for each count is 20 years in prison, followed by three years of supervised release and a $250,000 fine.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in the investigation.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters and Vassili Thomadakis of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Businessman and Local Minister Sentenced to 55 Month Prison Term in $3.6 Million Tax Evasion CaseRead the Press Release
Jackson, TN – Isaac H. Brooks, Jr. 60, of Jackson, Tennessee, was sentenced today by U.S. District Judge J. Daniel Breen to 55 months in prison, for failing to pay more than $3.6 million in federal income taxes, announced U.S. Attorney Edward L. Stanton.
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On May 23, 2012, Brooks pled guilty to two counts of a 29 count indictment for income tax evasion. According to information presented during the plea hearing, Brooks operated a successful employee leasing business entitled Temp Owned Temporary Services (TOTS) from 2002 until 2008. Brooks also acquired a commercial janitorial service in 2003 entitled Full Line Maintenance. Brooks controlled all financial aspects for both of these companies. During this time, Brooks was also the minister at Antioch Missionary Baptist Church earning approximately $1,000 each month.
“By stealing more than $3.6 million from the United States Government through a pattern of deliberate tax evasion, Brooks traded the respect of his parishioners and employees, and ultimately his freedom, for the allure of easy money,” said U.S. Attorney Stanton. “Today’s verdict demonstrates he made the wrong choice, and should serve as an example for those who occupy positions of trust that are tempted to act in the same manner.”
Evidence from the investigation showed that no Form 941, Employer’s Quarterly Federal Tax Return was filed for the second quarter of 2006 for TOTS. During this quarter, approximately 300 employees were paid wages totaling $786,481.08. The taxes due to the United States for this quarter were approximately $178,019.61. In addition, several of the other quarterly employer returns filed by Brooks were false. Brooks withheld federal income taxes and social security and Medicare benefits from employees’ paychecks but failed to pay all of these amounts over to the government, instead keeping the funds for himself.
“Most taxpayers file accurate tax returns. In fairness to the majority who are honest, the IRS must and will actively pursue those who intentionally violated the tax laws by attempting to evade their true tax liabilities,” stated Christopher Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office.
Brooks also admitted that he did not file a 2006 Form 1040, Individual Income Tax Return, even though he had income from TOTS, Full Line Maintenance, and Antioch Missionary Baptist Church. The tax due was calculated to be $197,987.00.
Evidence presented during the plea hearing revealed that during 2006, Brooks incurred gambling losses from 16 different casinos in five different states totaling $644,069.00. Brooks also paid off loans of $814,133.56 and made several large purchases of jewelry, furniture, and apartment rental.Brooks also leased and/or purchases several luxury vehicles in the name of Antioch Missionary Baptist Church, including a Mercedes Benz, a BMW, and a Cadillac Escalade. The furniture and vehicle purchase were without church members knowledge or authorization.
In addition to the term of imprisonment, Breen ordered Brooks to serve three years of supervised release, and ordered to pay restitution of $3,660,905 to the Internal Revenue Service (IRS). There is no parole in the federal prison system.
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorneys Lawrence J. Laurenzi and Victor Ivy represented the government.Buffalo Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul Jr. announced today that Kevin Baron, 42, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to possession of child pornography. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on March 9, 2012, a search warrant was executed at the defendant’s residence. A forensic analysis of Baron’s computer and DVD disks revealed in excess of 600 images of child pornography. The analysis also revealed that a privacy and cleaning software had been installed and was run on February 18, 2012 and February 28, 2012. Some of the images contained depictions of violence.
This 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.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge, Christopher M. Piehota, along with Officers of the Cheektowaga Police Department, under the direction of Police Chief David Zack. Additional assistance was provided by the Western New York Regional Computer Forensics Laboratory, which conducted the forensic analysis of the computer.
Sentencing is scheduled for May 24, 2013 at 12:30 p.m. before Judge Arcara.
Broward County Tax Return Preparer Pleads Guilty to 76-Count Superseding IndictmentRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that Vladimyr Jean Baptiste, 41, of Coral Springs, pled guilty today to a 76-count superseding indictment before U.S. District Judge Robin S. Rosenbaum. Sentencing is scheduled for April 12, 2013 at 9:00 a.m.
The superseding indictment charges Baptiste with 73 counts of aiding in the preparation and presentation to the Internal Revenue Service of false U.S. Individual Income Tax Returns, Forms 1040 and 1040A, for calendar years 2007 through 2010, in violation of Title 26, U.S.C., Section 7206(2); and 3 counts of failing to file personal income tax returns for calendar years 2008 through 2010, in violation of Title 26, U.S.C., Section 7203. At sentencing, Baptiste faces up to a maximum of 3 years in prison per count of preparing false tax returns, and a maximum of 1 year in prison per count of failing to file personal income tax returns.
According to court documents, Baptiste operated Tax Plus in Pompano Beach, Florida and filed numerous false income tax returns for clients. These false returns claimed fraudulent statuses, wages, deductions, credits and expenses. Specifically, Baptiste admitted to inflating earned income credits; encouraging clients to file separately when they were married and both falsely file income taxes as head of household, thereby obtaining additional tax credits; and giving various clients a fictitious $3,650 personal tax exemption for returns and allowances to lower their taxes. Finally, Baptiste also admitted that he has not filed his personal tax returns for the past five years.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael Walleisa.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Armed Career Criminal to Serve Twenty-Two and a Half Years in Prison for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Warren Rivera, 34, of Albuquerque, N.M., was sentenced this morning to 270 months in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. Rivera’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Rivera was arrested on April 26, 2011, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. He has been in federal custody since that time. On May 11, 2011, Rivera was indicted on that same charge. On Oct. 18, 2011, a federal jury convicted Rivera on the sole count of the indictment.
Rivera was sentenced under the Armed Career Criminal Act. According to the indictment, Rivera was prohibited from possessing firearms and ammunition in April 2011, because he previously had been convicted of the following three felony offenses in the Second Judicial District Court for the State of New Mexico (Bernalillo County): (1) aggravated assault against a household member, (2) aggravated assault against a household member with a deadly weapon, and (3) possession of a controlled substance. Rivera’s entire criminal history is more extensive. Court filings reflect that Rivera’s criminal activity began in 1998, when he was 19, and includes five prior felony convictions and 23 misdemeanor convictions. Violence, including domestic violence and violence against law enforcement officers, was a factor in seven of Rivera’s misdemeanor convictions, three of his prior felony convictions, and the offense for which he was sentenced today.
According to the evidence at Rivera’s trial, on April 4, 2011, officers of the Albuquerque Police Department responded to a domestic violence call reporting that a man was threatening another man with a handgun. When the officers arrived at the scene and took Rivera and his girlfriend into custody, they found that the girlfriend was in possession of a handgun. The girlfriend’s father testified that he and his wife went to their daughter’s apartment after receiving a call from their daughter, who tearfully told him that Rivera was holding her captive. In the vicinity of the apartment, the girlfriend’s parents they found Rivera and their daughter out in the street. After Rivera grabbed his girlfriend’s wallet, the father approached Rivera and demanded the return of the wallet. Rivera responded by pointing a handgun at the father’s head and threatening to shoot him.
“We will not tolerate armed violent felons terrorizing our community,” stated ATF Special Agent in Charge Thomas G. Atteberry. “The success of the investigation is attributed to the outstanding cooperation between the investigating agencies. I would like to commend the leadership of U.S. Attorney Kenneth J. Gonzales and his line attorney for their successful prosecution of this case.”
This case was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the District Attorney’s Office for the Second Judicial District of the State of New Mexico. It was prosecuted by Assistant U.S. Attorney Norman Cairns.
11 February 2013
US Files Lawsuit in Louisiana Against Oil and Gas Company Alleging Unlawful Discharge of Oil and Chemical Dispersants in the Gulf of MexicoRead the Press Release
Today the United States filed a civil action against ATP Oil & Gas Corporation and ATP Infrastructure Partners, LP (ATP-IP) for civil penalties and injunctive relief under the Clean Water Act and the Outer Continental Shelf Lands Act. The complaint was filed on behalf of the U.S. Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE) and the U.S. Environmental Protection Agency (EPA). The complaint addresses the defendants’ alleged unlawful discharges of oil and unpermitted chemical dispersants from the defendants’ floating oil and gas production platform, the ATP Innovator, into the Gulf of Mexico.
The ATP Innovator is a production facility operating at Lease Block 711 of Mississippi Canyon in the Gulf of Mexico, approximately 45 nautical miles offshore of southeastern Louisiana.
The violations were discovered during a BSEE inspection of the facility in March 2012. Following further investigation by BSEE, the violations were referred to the Department of Justice by BSEE and EPA. The case, United States v. ATP Oil & Gas Corporation et al., was filed in the District Court for the Eastern District of Louisiana.
As alleged in the complaint, ATP failed to properly operate and maintain its wastewater treatment system on the ATP Innovator. As a result, excess oil was discharged into the ocean, and an unauthorized chemical dispersant was added to the oily wastewater discharge to mask the presence of oil on the ocean’s surface. The dispersant was added to the outfall pipe by way of a concealed metal tube that connected a tank of dispersant to the outfall pipe. The connection of the metal tubing to the outfall pipe was located downstream of the sample collection point, making the addition of unauthorized dispersant undetectable in samples that are required to be collected to show compliance with ATP’s Clean Water Act discharge permit.
According to the complaint, the dispersant had been used from at least October 2010 to March 2012. In addition to civil penalties under the Clean Water Act, the complaint also seeks injunctive relief for violations of the Clean Water Act and the Outer Continental Shelf Lands Act.
Related Materials:
ATP Complaint
Two Men Plead Guilty to Roles in 2011 MurderRead the Press Release
St. Louis, MO - Scott Alan Compton, Washington, MO, and Lodgy Michael Jackson, Houston, TX, pled guilty on February 6 and February 8, 2013, respectively, for their actions that resulted in the April 22, 2011, death of Jamie Benson of Houston, TX. Compton and Jackson both pled guilty to one count of conspiracy to possess with the intent to distribute over 500 grams of cocaine. Jackson additionally pled guilty to a second count of conspiracy to possess a firearm in furtherance of a drug trafficking crime and a third count of discharging a firearm in furtherance of a drug trafficking crime in which death resulted. They appeared before United States District Court Judge Audrey G. Fleissig
According to court documents, in early April 2011, Compton and Jackson -- along with others -- joined in a conspiracy that included robbing and murdering victim Benson within the City of St. Louis after luring Mr. Benson from Houston to St. Louis. Compton and Jackson were actively involved in luring Benson to St. Louis and setting the stage for Benson's murder by Jackson. In the early morning hours of April 22, 2011, Jackson shot and murdered Benson inside a vehicle parked in a St. Louis alley. Jackson and others abandoned Benson's body in the alley where it was later discovered by the St. Louis Metropolitan Police Department. The conspirators undertook significant efforts to cover-up the conspiracy and destroy evidence of the crime, but were ultimately unsuccessful.
Sentencing has been set for May 2013. Compton faces up to a maximum of 40 years imprisonment for his crime. Jackson faces a term of imprisonment of up to life for his crimes. In determining the actual sentences, a judge is required to consider the United States Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshals Service; the Franklin County Sheriff's Department; and the St. Charles County Police Department.Two Jackson County Men Charged in Methamphetamine ConspiracyRead the Press Release
Two Jackson County, IL, residents were indicted on February 5, 2013, in an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On February 7, 2013, Brian W. Davis, 30, of Desoto, was arraigned in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine. The indictment alleged that the offense occurred between June, 2012, and November 1, 2012, in Jackson and Union Counties. Davis was ordered held without bond pending a February 12, 2013, detention hearing. Anthony R. Renth, 45, of Murphysboro, is scheduled to make his initial appearance on the indictment on February 25, 2013.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Davis and Renth face up to 20 years’ imprisonment, a $1,000,000 fine, and 3 years of supervised release.
The ongoing investigation is being conducted by the Murphysboro Police Department and Jackson County Sheriff’s Office, with the assistance of the Union County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Two District Men Plead Guilty to Robbery in Daytime Attack in Southeast Washington-Defendants Arrested Soon After Crime, with Victim’s Cash and Property-Read the Press Release
WASHINGTON - Venlonte Bethea, Jr., 19, also known as James Williams, and Anthony Hardy, 24, pled guilty today to robbery charges stemming from a mid-afternoon attack on a man last summer in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Bethea and Hardy, both of Washington, D.C., entered the guilty pleas in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for April 12, 2013. The charge carries up to 15 years in prison. Judge Leibovitz ordered that both defendants be held without bond pending their sentencing.
According to the government’s evidence, on July 17, 2012, at about 1:40 p.m., the victim was walking near the intersection of Pennsylvania Avenue and G Street SE, adjacent to the Potomac Avenue Metro station and bus stop. Bethea and Hardy approached him, asking for change. Bethea then circled behind the victim and put him in a chokehold, while Hardy went through the victim's pockets and took all of his money, phone, and various other identification cards. In all, both men took $576 in cash, including three $2 bills, a debit card, an insurance card, and an identification card. Then they ran into the Potomac Avenue Metro station.
The victim chased both defendants to the L'Enfant Plaza Metro Station, and used another Metro passenger’s phone to call the police. In his call to the police, the victim provided detailed descriptions of his attackers. The Metro Transit Police stopped both defendants inside the Gallery Place-Chinatown Metro station. They matched the descriptions provided by the victim.
The victim subsequently identified both defendants as having robbed him. In a search following the arrests, police found $290 on Bethea; Hardy had the rest of the money, including the $2 bills, as well as the victim's debit and identification cards.
In announcing today’s plea, U.S. Attorney Machen commended the work of the Metro Transit Police. He also acknowledged the efforts of Assistant U.S. Attorney John C. Truong, who investigated and prosecuted the case.
13-049Two Defendants Indicted in Alleged Sham Marriage Conspiracy to Illegally Enable Legal U.S. ResidenceRead the Press Release
CHICAGO – A suburban immigration consultant is among two defendants who were arrested after being indicted for allegedly conspiring to arrange fraudulent marriages to evade immigration laws and enable foreign nationals to illegally become U.S. legal permanent residents. The pair allegedly arranged at least four fraudulent marriages and attempted to arrange a fifth between foreign national and undercover agent who was posing as a U.S. citizen.
TERESITA ZARRABIAN, 60, of Des Plaines, a naturalized U.S. citizen who owns Zarrabian and Associates, an immigration consulting business in Arlington Heights, and MICHAEL SMITH, 41, of Bellwood, a U.S. citizen, were each charged with conspiracy to commit marriage fraud, marriage fraud and visa fraud, and Zarrabian was also charged with obstruction of justice in a seven-count indictment that was returned on Jan. 31 and unsealed when they were arrested last Thursday.
Zarrabian and Smith pleaded not guilty when they appeared Thursday and Friday, respectively, in U.S. District Court and were released on their own recognizance.
The indictment and arrests were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Gary J. Hartwig, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The charges resulted from an investigation conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and its partner agencies on the Chicago Document and Benefit Fraud Task Force, including U.S. Citizenship and Immigration Service's Fraud Detection and National Security Unit.
“Marriage fraud is a serious crime that exploits our nation’s immigration system and poses a vulnerability to our security,” Mr. Hartwig said. “HSI will continue its efforts to identify and arrest individuals whose actions allegedly show a complete disregard for U.S. immigration laws and undermine the legitimate immigration process.”
According to the indictment, between 2005 and 2012, Zarrabian assisted foreign-born clients complete the necessary forms to become legal permanent residents on the basis of marriage to a U.S. citizen. Clients paid Zarrabian between $8,000 and $15,000 in exchange for arranging fraudulent marriages to U.S. citizens recruited by Zarrabian and Smith, the charges allege. Foreign nationals who marry U.S. citizens legitimately may become legal permanent residents of the United States but not if the marriage was a sham solely to evade immigration laws.
Zarrabian allegedly paid Smith a portion of the money she received from foreign national clients for Smith’s recruitment of U.S. citizen spouses. In turn, Zarrabian allegedly promised to pay approximately $5,000 to the U.S. citizen spouses for their participation in a sham marriage. Both defendants arranged to have individuals travel to Las Vegas for a fraudulent wedding and also took photos of the “couple” and other steps to create the false impression that the sham marriages were legitimate. Zarrabian also met with the couples and told them what actions they needed to take to make their marriages appear legitimate during marriage interviews with officials, according to the indictment.
The obstruction count alleges that Zarrabian attempted to persuade a U.S. citizen involved in a fraudulent marriage from communicating information to law enforcement.
The government is being represented by Assistant U.S. Attorney Tony Iweagwu.
Conspiracy to commit marriage fraud and each count of marriage fraud carry a maximum penalty of five years in prison and a $250,000 fine. Visa fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, and the obstruction count against Zarrabian carries a maximum of 20 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Two Defendants Admit Roles in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – Two defendants today admitted their roles in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman.
The scheme caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds, and which resulted in the losses to the United States of more than $12 million.
Bennie Haynes, 53, of Dayton, N.J., a former U.S. Postal Service carrier, and Manuel Rodriguez, 50, of New Brunswick, N.J., both pleaded guilty before U.S. District Judge Claire C. Cecchi. Haynes pleaded guilty to an Information charging him with conspiracy to defraud the United States, theft of government property, and theft of mail by a postal employee. Rodriguez pleaded guilty to an Information charging him with conspiracy to defraud the United States, theft of government property and aggravated identity theft.The conspiracy counts are punishable by a maximum potential penalty of five years in prison and up to a $250,000 fine. The substantive counts of theft of government property carry a maximum potential penalty of 10 years in prison and up to a $250,000 fine. The theft of mail by a postal employee carries a maximum potential penalty of five years in prison and up to a $250,000 fine. The aggravated identity theft count is punishable by a statutory mandatory minimum sentence of two years in prison, which must run consecutively to any other sentence.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (“SIRF”) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
· SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
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· SIRF perpetrators complete Individual Income Tax Return Form 1040s (“Form 1040”) using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.· Perpetrators direct the U.S.Treasury Department to issue the refunds through checks (“Tax Refund Treasury Checks”) generated by the fraudulent 1049 forms to locations they control or can access, in various ways.
· With Tax Refund Treasury Checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell Tax Refund Treasury Checks at a discount to face value. In turn, the buyers then cash the Tax Refund Treasury Checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing Tax Refund Treasury Checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the “New Jersey Task Force”).
An investigation led by the New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long running SIRF scheme that caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with more than $12 million in losses to the U.S. Treasury.
Defendant Manuel Rodriguez and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Rodriguez and others used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds.
The fraudulent 1040 forms were created and filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms, which, in turn, led to the issuance of Tax Refund Treasury Checks that the conspirators obtained, sold, cashed, and spent.
Rodriguez and others then gained control of the refund checks, in various ways, which followed the pattern of a classic SIRF scheme. Sometimes, conspirators obtained Tax Refund Treasury Checks by bribing mail carriers, including defendant Benny Haynes, to intercept checks and deliver them to other conspirators. In exchange for cash payments, Haynes gave Tax Refund Treasury Checks to conspirators. In turn, these conspirators then sold these checks to yet other conspirators. Tax Refund Treasury Checks mailed to addresses along Haynes’ mail route in Somerset, N.J., were deposited into accounts controlled by Rodriguez and other conspirators.
Conspirators also purchased “mail routes,” that is, lists of addresses covered by a single mail carrier. Conspirators applied for Tax Refund Treasury Checks, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the Tax Refund Treasury Checks sent to the addresses. In other instances, the conspirators applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators, and collected the checks after they were delivered to those addresses. During the course of the scheme, hundreds of Tax Refund Treasury Checks were mailed to just a few different addresses in a few different towns, including Nutley, Somerset and Newark, N.J., and Shirley, N.Y.
Certain conspirators then sold Tax Refund Treasury Checks to Rodriguez and others. After buying the Tax Refund Treasury Checks, Rodriguez and others deposited and cashed the checks. The conspirators used third parties (the “Straw Account Holders”), to open bank accounts at various banks in New Jersey and elsewhere. Once the Tax Refund Treasury Checks were deposited into the Straw Account Holders’ accounts or accounts controlled by conspirators, Rodriguez and others withdrew the funds.
Rodriguez and others also obtained proceeds from Tax Refund Treasury Checks by causing checks to be cashed at check cashing institutions, and then causing the proceeds to be deposited into bank accounts controlled by conspirators.
During the course of the investigation, members of the New Jersey Task Force identified certain “hot spots” of activity related to the Scheme – that is, Conspirators were directing millions of dollars of Tax Refund Treasury Checks to just a few towns and cities in and around New Jersey. New Jersey Task Force members then interacted with U.S. Postal Service employees in these hot spots, and identified the characteristics of Tax Refund Treasury Checks connected to the scheme. As a result of these efforts, more than $22 million in fraudulently applied for Tax Refund Treasury Checks that had been issued by the U.S. Treasury were not delivered to the conspirators or others, but were interdicted by law enforcement officers.
Sentencing for both defendants is scheduled for June 5, 2013.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Phillip R. Bartlett, with the investigation leading to today’s guilty pleas. He also thanked the special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Robert G. Koval; and HSI-ICE, under the direction of Special Agent in Charge Andrew M. McLees, for their roles.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker, Lakshmi Srinavasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.13-073
Defense Counsel: Manuel Rodriguez: Mark A. Berman, River Edge, NJ
Benny Haynes: David Holman Esq., Assistant Federal Public Defender, NewarkHaynes Information
Rodriguez InformationTse-Yah-Toh, N.M., Man Sentenced to Eighteen Years in Prison for Federal Child Sex Abuse ConvictionRead the Press Release
ALBUQUERQUE –Kenneth Mike Etsitty, 58, an enrolled member of the Navajo Nation who resides in Tse-Yah-Toh, N.M., was sentenced this morning to 18 years in prison followed by ten years of supervised release for his child sex abuse conviction. Etsitty will be required to register as a sex offender when he completes his prison sentence.
Etsitty was charged with aggravated sexual abuse of a child under the age of 12 in a criminal complaint filed on May 14, 2012. He was arrested the following day, and has been in federal custody since that time. On Oct. 17, 2012, Etsitty pled guilty to an information charging him with three counts of aggravated sexual abuse of a child under the age of 12.
According to court records, law enforcement authorities initiated a criminal investigation into Etsitty in Feb. 21, 2012, after a nine-year-old Navajo child reported being sexually assaulted by Etsitty on more than ten occasions. During a subsequent voluntary interview, Etsitty admitted sexually assaulting the child victim on approximately ten occasions.
In entering his guilty plea, Etsitty admitted that he forced the child victim to engage in sexual acts on multiple occasions from Jan. 2007, when the child was four-years-old, through Nov. 2011, when child was nine-years old. Etsitty admitted that each of the sexual attacks occurred in the same way, by touching the child victim’s genitals. The offenses occurred in Indian Country.
The case was investigated by the Gallup office of the FBI and the Crownpoint Division of the Navajo Nation Department of Public Safety, and was prosecuted by Assistant U.S. Attorney Mark T. Baker.
Three Individuals Enter Pleas of Guilty in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA - Three individuals entered pleas of guilty on February
7, 2013, in United States District Court in Elkins before Magistrate Judge John S. Kull.United States Attorney William J. Ihlenfeld, II, announced that:
PATRICK S. CRITES, age 46, of Moorefield, West Virginia, entered a plea of guilty to one count of “Transmitting Threatening Communications in Interstate Commerce” on November 28, 2012. CRITES, who is on bond pending sentencing, faces up to five years imprisonment and a $250,000 fine. This case was prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the United States Secret Service, as the threat was made to the White House.
KELLEY LEIGH COHENOUR, age 35, and WILLIAM JOSEPH RUSSELL, age 38, of Cass, West Virginia, both entered a plea of guilty to “Possession of Material Used in the Manufacture of Methamphetamine” on April 13, 2012. COHENOUR and RUSSELL, who are on bond pending sentencing, face up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the West Virginia State Police and the Pocahontas County Sheriff’s Office.
Successful Conclusion of Operation Rolling ThunderRead the Press Release
United States Attorney Michael W. Cotter of the District of Montana, and United States Attorney Brendan V. Johnson of the District of South Dakota announced the results of Operation Rolling Thunder, a two-year covert investigation focusing on unlawful trafficking in federally-protected migratory birds, primarily bald and golden eagles. The operation was conducted by agents of the U.S. Fish and Wildlife Service from March 2008 through February 2011 in Montana and South Dakota.
The investigation documented 43 transactions of protected migratory birds, primarily bald and golden eagles, in violation of the Bald and Golden Eagle Protection Act, the Migratory Bird Treaty Act and the Lacey Act. The unlawful transactions include the purchase of multiple whole carcass bald and golden eagles in interstate commerce using the United States Postal Service and wire transfers of funds to further the transactions. In total, the operation was able to purchase feathers, other bird parts (wings, claws), and complete migratory birds, which involved a minimum of 80 eagles and 30 hawks.
In response to the successful prosecutions in Operation Rolling Thunder, U.S. Attorney Michael W. Cotter said, “I have to commend the investigators with the U.S. Fish Wildlife Service and Assistant U.S. Attorney Mark Smith for his excellent work in this case. Investigations and prosecutions, like Operation Rolling Thunder, of those that kill our protected species for their own gain are vital to ensuring the sustainability of the majestic raptors of our country.”
U.S. Attorney Brendan V. Johnson added, “I want to recognize and thank the U.S. Fish and Wildlife Service investigators for their diligent efforts in this Operation, and Assistant U. S. Attorneys Eric Kelderman and Tim Maher for their vigorous prosecution of those that have violated the Bald and Golden Eagle Protection Act. The Department of Justice respects the appropriate use of bird parts for cultural and religious purposes, but the success of Operation Rolling Thunder demonstrates that once that line is crossed, we will strongly enforce federal wildlife laws that preserve natural resources.”
“This investigation documented the unlawful killing and commercialization of eagles and hawks, an unlawful practice that in certain areas of our country is a significant threat to species that are a vital part of our natural heritage,” said Ed Grace, Deputy Chief for the U.S. Fish and Wildlife Service. “We hope the penalties in these cases serve as a deterrent to those engaged in this practice, and urge the public to help us put an end to it.”
On October 12, 2012, the Department of Justice announced a policy addressing the ability of members of federally recognized Indian tribes to possess or use eagle feathers, an issue of great cultural significance to many tribes and their members. The Attorney General's memorandum is the first formal policy statement adopted by the Justice Department on this issue. It clarifies and expands on longstanding Department practice, consistent with the Department of the Interior's 35-year old Morton Policy, of not prosecuting tribal members for possessing or using eagle feathers and other protected bird parts.
Federal wildlife laws such as the Bald and Golden Eagle Protection Act generally criminalize the killing of eagles and other migratory birds and the possession or commercialization of the feathers and other parts of such birds. These important laws are enforced by the Department of Justice and the Department of the Interior and help ensure that eagle and other bird populations remain healthy and sustainable.
Many Indian tribes and tribal members have historically used, and today continue to use federally protected birds, bird feathers or other bird parts for their tribal cultural and religious expression. Federal wildlife laws recognize the importance of accommodating tribal spiritual needs by allowing exceptions for the religious purposes of Indian tribes. Eagle feathers are made available to tribal members every year from the Fish and Wildlife Service's National Eagle Repository.{www.fws.gov/le/national-eagle-repository.html}
For more information on the Department’s Eagle Feathers Policy, visit www.justice.gov/tribal/feathers-fs.htm
Five defendants were indicted in South Dakota, and seven were indicted in Montana. Following is a summary of the cases:
SOUTH DAKOTA DEFENDANTS:
1. Stanley LITTLEBOY. On January 5, 2012, Stanley LITTLEBOY appeared before United States District Court Judge Jeffrey L. Viken and was sentenced on two counts of violating the Bald and Golden Eagle Protection Act. LITTLEBOY was sentenced to the following: • Five (5) months in the custody of the Bureau of Prisons • Five (5) months in Community Confinement • One (1) year of Supervised Release • $125.00 payment of Special Assessment Fee
2. Shane REDHAWK. On January 18, 2012, Shane REDHAWK appeared before United States District Court Judge Roberto A. Lange and was sentenced on two counts of violating the Bald and Golden Eagle Protection Act. REDHAWK was sentenced to the following: • One (1) month in the custody of the Bureau of Prisons • Five (5) months in Home Confinement • One (1) year of Supervised Release • 100 hours of Community Service • $125.00 payment of Special Assessment Fee
3. Noella REDHAWK. On January 18, 2012, Noella REDHAWK appeared before United States District Court Judge Roberto A. Lange and was sentenced on one count of violating the Bald and Golden Eagle Protection Act. REDHAWK was sentenced to the following: • Six (6) months in Home Confinement • One (1) year of Probation • 50 hours of Community Service • $25.00 payment of Special Assessment Fee
4. Tilden REDDEST. On February 24, 2012, Tilden REDDEST appeared before U.S. District Court Judge Jeffrey L. Viken and was sentenced on two counts of violating the Bald and Golden Eagle Protection Act. REDDEST was sentenced to the following: • Fifty-two (52) consecutive weekends in custody. To be served at the Pennington County Jail, Rapid City, South Dakota • Five (5) years of Probation • 400 hours of Community Service • $125 payment of Special Assessment Fee
MONTANA/SOUTH DAKOTA JOINT DEFENDANT:
5. Ernie L. STEWART. On January 11, 2012, Ernie L. STEWART appeared before U.S. District Judge Jeffrey L. Viken and pled guilty to one (1) count of violating the Bald and Golden Eagle Protection Act. Later, Stewart’s case was transferred from the District of South Dakota to the District of Montana for sentencing, because Stewart had related charges pending in that District. On May 9, 2012, Ernie L. STEWART appeared before U.S. District Court Judge Jack D. Shanstrom and was sentenced on three (3) counts of violating the Bald and Golden Eagle Protection Act. STEWART was sentenced to the following for charges in Montana and South Dakota: • Twelve (12) months and one (1) day in the custody of the Bureau of Prisons • One (1) year of Supervised Release • Revocation of hunting and fishing privileges • $225 payment of Special Assessment Fee
MONTANA DEFENDANTS:
6. Melody GOODSTRIKER. On January 7, 2012, Melody GOODSTRIKER, per a plea agreement with the U.S. Attorney’s Office, forfeited $500.00 in collateral to the Central Violations Bureau for a violation of the Migratory Bird Treaty Act.
7. Harvey HUGS. On January 27, 2012, Harvey HUGS appeared before U.S. Magistrate Judge Carolyn S. Ostby and was sentenced on one count of violating the Bald and Golden Eagle Protection Act. HUGS was sentenced to the following: • Six (6) months in the custody of the Bureau of Prisons • One (1) year of Supervised Release • $25.00 payment of Special Assessment Fee
8. Marc LITTLE LIGHT. On March 8, 2012, Marc LITTLE LIGHT appeared before U.S. Magistrate Judge Carolyn S. Ostby and was sentenced on one count of violating the Migratory Bird Treaty Act. LITTLE LIGHT was sentenced to the following: • One (1) year of Probation • $2,000.00 payment of Fine • $10.00 payment of Special Assessment Fee
9. William E. HUGS Jr. On May 2, 2012, William E. HUGS Jr. appeared before Chief U.S. District Court Judge Richard F. Cebull and was sentenced on five (5) counts of violating the Bald and Golden Eagle Protection Act and the Migratory Bird Treaty Act. HUGS Jr., was sentenced to the following: • Time served in custody (Jan 9, 2012 through May 2, 2012) • Three (3) years of Supervised Release • Payment of $500.00 Special Assessment Fee
10. Gilbert G. WALKS Jr. On May 4, 2012, Gilbert G. WALKS Jr. appeared before Chief U.S. District Court Judge Richard F. Cebull and was sentenced on four (4) counts of violating the Bald and Golden Eagle Protection Act and the Migratory Bird Treaty Act. WALKS Jr., was sentenced to the following: • Twenty-four (24) months in the custody of the Bureau of Prisons • One (1) year of Supervised Release • 100 hours of Community Service • Payment of $400.00 Special Assessment Fee
11. William E. HUGS Sr. On June 13, 2012, William E. HUGS Sr. appeared before Chief U.S. District Court Judge Richard F. Cebull and was sentenced on one (1) count of violating the Bald and Golden Eagle Protection Act. HUGS Sr., was sentenced to the following: • Eighteen (18) months in the custody of the Bureau of Prisons • Three (3) years of Supervised Release • Payment of $500.00 Special Assessment Fee
Law enforcement is essential to virtually every aspect of wildlife conservation. The U.S. Fish and Wildlife Service Office of Law Enforcement contributes to Service efforts to manage ecosystems, save endangered species, conserve migratory birds, preserve wildlife habitat, restore fisheries, combat invasive species, and promote international wildlife conservation.
U.S. Fish and Wildlife Service law enforcement today focuses on potentially devastating threats to wildlife resources -- illegal trade, unlawful commercial exploitation, habitat destruction, and environmental contaminants. The Office of Law Enforcement investigates wildlife crimes, regulates wildlife trade, helps Americans understand and obey wildlife protections laws, and works in partnership with international, state, and tribal counterparts to conserve wildlife resources.
When fully staffed, the Office of Law Enforcement includes 261 special agents and some 140 wildlife inspectors.
Portland Man Sentenced to 18 Years in Prison for Producing Images of Child Sexual AbuseRead the Press Release
PORTLAND, Ore. — Rodger Strampher, 30, of Portland, Oregon, was sentenced to 18 years in prison today by United States District Judge Ancer L. Haggerty, for producing images of a child being sexually abused. On June 25, 2012, Strampher pleaded guilty to one count of producing child pornography. Upon release from custody, Strampher will serve a 20-year period of supervised release. During his supervised release, he must abide by a number of conditions, which include a sex offender assessment and treatment program, no contact with minors without approval, restricted access to computers and the Internet, and registration as a sex offender.
“Protecting our children remains one of the highest priorities of my office,” said U.S. Attorney Amanda Marshall. “We will use every resource available to hold those accountable who prey on the most innocent and vulnerable members of our communities.”
The case arose in connection with the investigation of Michael Marceau and Lisa Ford, a local couple who are currently serving 49-year and 46-year federal prison sentences for producing child pornography. In the course of that investigation, Department of Homeland Security agents found on Marceau’s computer images of a young child being sexually abused. Data embedded in the images indicated the images were taken with an iPhone on March 2, 2009, and the data also revealed the location of the iPhone at the time the images were taken. Agents traced the images to Strampher, and learned that he had produced the images and then traded the images with Marceau via email.
This 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.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Stacie F. Beckerman.
Pastor from Ponce Arrested Federally for Transportation of Minors with Intent to Engage in Criminal Sexual ConductRead the Press Release
SAN JUAN, P.R. –Nelson Santiago-Colón, a Pastor for the Iglesia Cristiana Peniel, located in Santa Isabel, Puerto Rico, was arrested today by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents and the Puerto Rico Police Department on charges related to the transportation of minors with the intent to engage in criminal sexual conduct, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
On or about January 18, 2013, after an exhaustive investigation by local authorities, Nelson Santiago-Colón, was arrested by the Police of Puerto Rico on charges of sexual aggression of minors, lascivious acts and child abuse, and was granted bail in the amount of $110,000 by Puerto Rico Superior Court Judge Sheila Díaz. Shortly after the defendant posted bail, Puerto Rico Department of Justice officials contacted Federal authorities to charge Santiago-Colón under the laws of the United States. Immediately, special agents from HSI, together with federal prosecutors, began interviewing the victims from the local case.
As a result of such investigation by Federal authorities, today, agents from HSI, the Police of Puerto Rico and the Puerto Rico Department of Justice, arrested Nelson Santiago-Colón, 47, on Federal charges of transporting three minor males to his home where he sexually assaulted and committed lewd and lascivious act on them.According to the three-count complaint, Santiago-Colón is charged with transportation of minors with the intent to engage in criminal sexual activity. In Counts I and II, Santiago-Colon is charged with having transported a 14-year-old boy and a 12-year-old boy from the Iglesia Cristiana Peniel in Santa Isabel to his home in Ponce, Puerto Rico for the purpose of committing sexual assault and lewd acts with the minors. Count III charges Santiago-Colón with transporting a 14-year-old minor from his home to the home of the defendant with the intent to perform lewd acts on the minor.
Assistant United States Attorney Marshal D. Morgan is in charge of the prosecution. Moreover, in recognition of the exhaustive investigation conducted by the local authorities in this case, Puerto Rico Department of Justice prosecutor Camilie Soto has been invited to act as a Special Assistant United States Attorney to assist AUSA Morgan with the Federal prosecution of this case.
If convicted, the defendant faces a mandatory minimum sentence of incarceration of ten years and a possible maximum statutory penalty of life imprisonment.
“This is a flagship case to demonstrate the excellent cooperation that exists between local and Federal authorities in Puerto Rico,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The public should be aware that there are two sovereigns out there watching over their children. If a situation like this one presents itself, the U.S. Attorney’s Office will not hesitate to work together with local authorities to maximize our joint prosecutorial resources and bring to justice those who believe they can molest our children with impunity.
“Anyone who targets children for sexual exploitation should also consider themselves a target by HSI and by our law enforcement partners,” said Ángel Meléndez, special agent in charge of HSI San Juan. “HSI aggressively uses its investigative authorities to protect our communities from those who seek to sexually exploit children for their perverse gratification. We have an obligation to protect those most vulnerable in our society who cannot protect themselves.”
Criminal complaints contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Nine Charged with Conspiracy and Bribery Involving Southern California DMV OfficesRead the Press Release
United States Attorney Laura E. Duffy announced today that a manager who supervises the Licensing Registration Examiners at the California Department of Motor Vehicles ("DMV") in El Cajon, CA, was charged in a criminal complaint for his involvement in a bribery conspiracy that resulted in the production of fraudulent driver licenses for applicants who had failed - or not taken - the required driver license tests. According to court documents, Jesse Mario Bryan supervised DMV officials responsible for conducting driving tests for driver license applicants, including Jim Lynn Bean and Jeffrey Bednarek who were charged in a criminal indictment in May 2012 in a related case (12CR1852-CAB). Agents with the Federal Bureau of Investigation (FBI) and DMV Investigations Division arrested the defendants earlier today.
The complaint also alleges that Alexander Gonzalez recruited applicants who would pay for fraudulently obtained driver licenses. The complaint further alleges that this entire conspiracy involved the payment of more $100,000 in bribes by applicants to recruiters.
According to the complaint, Frank Tom Attiq, Ali Al Nadawi, Saleh Almuzini, Matthew Allan Elliott, Mohamed Alali, James Lester Shaw and Hassan Hamad Althami are applicants who paid bribes to receive fraudulent driver licenses by paying recruiters who brokered the corrupt deals for fraudulent licenses by getting money from the applicants and paying the bribes to the DMV employees.
The complaint alleges that from December 2010 through April 2012, Bryan supervised employees at both at the El Cajon DMV office, located at 1450 Graves Avenue, El Cajon, California, and the Rancho San Diego DMV office, located at 1901 Jamacha Road, El Cajon, California, who falsely entered both "passing" written and "passing" driving test scores for applicants in exchange for bribes ranging from $75 to $600 per license. In May 2012, 21 defendants (four of whom were DMV officials) were charged in an indictment with conspiracy to commit bribery and to produce unauthorized identification documents (12CR1852-CAB).
The complaint unsealed today alleges that the corruption scheme involved the fraudulent production of both Class C (regular) and Commercial Class A driver licenses. The applicants paid recruiters approximately $400-$500 for each fraudulent Class C license, which the conspirators produced at the El Cajon DMV. The complaint alleges that the DMV employees accepted bribes paid by these applicants despite the obvious public safety risk posed. Applicants seeking Commercial Class A licenses (produced at the Rancho San Diego DMV) typically paid recruiters $2,500-$3,000. Commercial Class A driver licenses allow the licensee to drive commercial vehicles weighing more than 10,000 pounds, which can cause enormous harm to the public if operated incorrectly by an unqualified driver. Increasing the danger to the public, DMV employees entered false passing test scores that allowed applicants to fraudulently obtain additional certifications for the operation of the commercial vehicles, such as transporting hazardous materials or towing multiple trailers.
The defendants arrested in the Southern District of California are expected to make their initial appearances before United States Magistrate Judge David H. Bartick at 1:30 p.m. today. Two defendants arrested in the Central District of California are expected to make their initial appearance there and be transferred to the Southern District of California on a later date.
United States Attorney Duffy noted that this is a joint investigation by the FBI and DMV and if anyone in the community has information about corruption at the DMV, they are asked to contact the San Diego Division of the Federal Bureau of Investigation at 877-NO BRIBE (877-662-7423) or the DMV's Investigations Branch-Office of Internal Affairs at 626-851-0173.
The public is reminded that a complaint is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANTS Magistrate Case No. 13MJ0475-DHB Jesse Mario Bryan
Alexander Gonzalez
Frank Tom Attiq
Ali Al Nadawi
Saleh Almuzini
Matthew Allan Elliott
Mohamed Alali
James Lester Shaw
Hassan Hamad Althani SUMMARY OF CHARGESAll Defendants
Title 18, United States Code, Section 371 -- Conspiracy to Commit Bribery and to Produce Unauthorized Identification Documents -- statutory maximum sentence of 5 years in prison, a maximum fine of $250,000, and $100 special assessment.
Defendant: Jesse Mario Bryan
Title 18, United States Code, Section 666(a)(1)(B) -- Bribery -- statutory maximum sentence of 10 years in prison, a maximum fine of $250,000, and $100 special assessment.
Defendant: Alexander Gonzalez
Title 18, United States Code, Section 666(a)(2) – Bribery – statutory maximum of 10 years in prison, a maximum fine of $250,000, and $100 special assessment.
INVESTIGATING AGENCIESFederal Bureau of Investigation
Department of Motor Vehicles - Investigations DivisionNew York Immigration Judge Participates in Naturalization CeremonyRead the Press Release
NEW YORK -- Immigration Judge Joanna Bukszpan from the Executive Office for Immigration Review, New York Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 150 candidates during a naturalization ceremony at 26 Federal Plaza in New York on Feb. 8, 2013. The New York District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Bukszpan in September 1995. Judge Bukszpan received a bachelor of arts degree in 1963 from the City University of New York and a juris doctorate in 1976 from Brooklyn Law School. From 1978 to 1995, she was in private practice in New York. From 1976 to 1978, she worked as a trial attorney/general attorney (nationality) for the former Immigration and Naturalization Service in New York. Judge Bukszpan is a member of the District of Columbia and New York State Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewMedia AdvisoryRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistU.S. Attorney, Other Law Enforcement Leaders to Announce
Indictment in Heroin-Related Death Case
WHEELING, WEST VIRGINIA – The United States Attorney and other local
law enforcement officials will announce the unsealing of a federal indictment involving the delivery of heroin in Brooke County, West Virginia, that led to the death of a local man.
The announcement will take place on Monday, February 11, 2013, at 1:30
P.M. on the second floor of the United States Courthouse, 1125 Chapline
Street, Wheeling, WV.Any questions or inquiries regarding this press event should be directed to
Chris Zumpetta-Parr at the U.S. Attorney’s Office at 304-234-0100.Manhattan U.S. Attorney Announces Charges Against Alleged Leaders of International Atm Skimming RingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Steven G. Hughes, the Special Agent-in-Charge of the New York Field Office of the United States Secret Service, announced today the filing of an Indictment against ANTONIO GABOR and SIMION TUDOR PINTILLIE, two alleged leaders of an international scheme to steal customer bank account information using sophisticated “skimming” technology that secretly recorded the data of customers who used Automated Teller Machines (“ATMs”) at banks in New York, New Jersey, Illinois, and Wisconsin. GABOR and PINTILLIE were arrested in Skokie, Illinois on December 6, 2012 and have been in federal custody. GABOR is being transported to New York for arraignment and will arrive at a date to be determined. PINTILLIE will be arraigned before U.S. District Judge Alison J. Nathan on Tuesday, February 19 at 9:30 a.m.
Manhattan U.S. Attorney Preet Bharara said: “While traditional bank robberies may be on the wane, the charges we bring today are a reminder of the threat that cybercrime poses to banks and their customers. Together with our law enforcement partners, we remain committed to stopping these alleged high-tech bank robbers in their tracks.”
U.S. Secret Service Special Agent-in-Charge Steven G. Hughes said: “The U.S. Secret Service is committed to preventing and mitigating financial crimes against our nation’s financial infrastructure. Such threats involve a wide variety of schemes including the emerging trend of ATM compromises. The U.S. Secret Service is focused on investigating these crimes and bringing those responsible to justice.”
According to the allegations of the Indictment filed in Manhattan federal court earlier today:
From at least April 2012 through December 2012, GABOR and PINTILLIE were the leaders of an ATM skimming ring based in New York and Chicago. GABOR, PINTILLIE, and at least nine other co-conspirators placed electronic devices, which GABOR obtained from Hungary, on security card readers that secretly recorded a customer’s bank account data when the customer used an ATM. The co-conspirators also installed hidden “pin hole” video cameras on ATM machines that secretly recorded customers’ Personal Identification Numbers (PINs) as the customers pressed these numbers on ATM keypads in order to access their accounts. After a period of time, the co-conspirators would remove the skimming devices and provide them to GABOR and PINTILLIE, who would use the stolen bank account and PIN numbers in order to create new bank cards that could be used to withdraw funds from victim accounts.
GABOR and PINTILLIE also maintained stash locations at multiple self-storage facilities where they stored skimming devices and other equipment and materials necessary to execute the scheme. At one location in Queens, New York, GABOR and PINTILLIE stored computer equipment that contained hundreds of hours of video camera footage of individual customers inputting PIN numbers onto ATM keypads, over 1,000 plastic cards encoded with stolen account information, and components for ATM skimming devices and pin hole cameras.
GABOR and PINTILLIE targeted J.P. Morgan Chase (“Chase”), and Capital One, N.A. banks. Throughout the course of the scheme, they engaged in over 50 skimming incidents that resulted in the compromise of over approximately 6,000 individual bank accounts, from which the defendants made and attempted to make over approximately $3 million in unauthorized withdrawals.
GABOR, 30, allegedly a citizen of Denmark, and PINTILLIE, 32, a Romanian citizen, are each charged with one count of conspiracy to commit bank fraud, which carries a maximum of 30 years in prison, one count of conspiracy to commit access device fraud, which carries a maximum of seven and one half years, and one count of aggravated identity theft, which carries a mandatory minimum of two years in prison.
Mr. Bharara praised the Secret Service for its outstanding work investigating this case. He also thanked J.P. Morgan Chase Bank, Capital One Bank, N.A., and Prairie du Sac Bank for their cooperation in the investigation.
This case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Timothy T. Howard is in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
US v. Gabor, Pintillie Indictment
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of Manhattan Business Owner for Allegedly Running A $1.5 Million Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), announced today that JASON J. KONIOR, the founder and manager of a number of related business entities in New York City, collectively referred to as “Absolute,” was arrested today for orchestrating a Ponzi scheme. Through Absolute, KONIOR stole approximately $1,500,000 from three hedge fund investors and used the proceeds to pay off prior investors and to pay himself. He was arrested in Manhattan, and is expected to be presented in Manhattan federal court before United States Magistrate Judge James L. Cott on Wednesday.
According to a Complaint unsealed today in Manhattan federal court:
From late 2011 through May 2012, KONIOR organized and managed a Ponzi scheme in which he misappropriated $1.5 million in funds he had solicited from three hedge fund investors. He represented to these hedge funds that Absolute would provide additional trading funds of up to nine times the investment they made in Absolute. As part of Absolute’s “first loss” investment program, KONIOR claimed that he would place the combined funds – the investors’ funds and the additional funds to be provided by Absolute – in a brokerage account designated by Absolute. According to KONIOR, the hedge fund investors would then be able to trade securities utilizing that brokerage account. Under the arrangement, the hedge funds would be responsible for trading losses, and they would share any profits with Absolute.
Instead of establishing brokerage accounts for the three hedge funds, KONIOR misappropriated the funds they provided by paying redemptions to prior investors, making payments to himself, and paying various personal and business expenses. In e-mails, text messages, and telephone conversations, he pretended that he was establishing brokerage accounts for the three hedge fund investors, when he had already stolen their money. In one case, after he repeatedly failed to set up a brokerage account for one of the hedge funds, the manager of the fund sent him a text message stating, “I want my money back. What did you do to it anyway? Are you going to tell me or do you want the SEC to find out?” KONIOR responded with a text message that said, “[w]e have your funds in our acct. Where else would they be?” At the time he wrote the message, he had already used that hedge fund’s investment to pay off other investors and his own expenses.
KONIOR, 39, of Manhattan, has been charged with one count each of securities fraud and wire fraud. The maximum potential penalty for securities fraud is 20 years in prison and a fine of $5,000,000 or twice the gross gain or loss from the offense. The maximum potential penalty for wire fraud is 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense.
Mr. Bharara praised the work of the FBI and the Securities and Exchange Commission.
This case was brought in coordination with President BARACK OBAMA's Financial Fraud Enforcement Task Force, on which Mr. BHARARA serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President OBAMA established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John T. Zach and Jason H. Cowley are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant are presumed innocent unless and until proven guilty.
Konior, Jason Complaint
Manager of Family-Owned and Operated Grapevine Drug Mart Pleads Guilty to Federal IndictmentRead the Press Release
Defendant’s Father, Larry Lake, Was Convicted at Trial Last Week for Concealing Assets and Tax Evasion
FORT WORTH, Texas — On the day before his trial was to begin in federal court in Fort Worth, Texas, Travis Keith Lake appeared before U.S. District Judge John McBryde and pleaded guilty to an indictment charging three counts of fraud and false statements in connection with tax returns he filed for tax years 2006, 2007 and 2008, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Lake faces a maximum statutory penalty of three years in federal prison and a $100,000 fine on each of the three counts; restitution could also be ordered. He will remain on bond pending sentencing, which is set for May 31, 2013.
According to the factual resume filed in the case, Travis Lake manages Grapevine Drug Mart, a family owned and operated pharmacy in Grapevine, Texas. According to an order setting conditions for his release, Travis Lake is a resident of Colleyville, Texas.
Travis Lake’s father, Larry Lake, was convicted last week by a federal jury in Fort Worth on one count of concealment of assets (bankruptcy fraud) and three counts of tax evasion. According to the public court record, Larry Lake, also a Colleyville resident, owns and operates several businesses including VIP Finance of Texas, an auto title loan business with branches throughout the Dallas-Fort Worth area; Cash Auto Sales, which handles the auto club memberships for VIP Finance; and is a part owner of Grapevine Drug Mart. Following his conviction, Larry Lake was remanded into custody pending sentencing, which is also set for May 31, 2013, before Judge McBryde. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine on each count.
According to the factual resume filed in Travis Lake’s case, between 2006 through 2008, he received quarterly and weekly payments of income drawn on Grapevine Drug Mart’s business bank accounts. The quarterly payments were generally received three to five times per year and varied in amounts ranging from $25,000 to $100,000. Each quarterly payment was made payable to Certified Tech Services, a dba that Lake established, and deposited into Certified Tech Services’ business bank account. The weekly payments, in the form of checks, were much smaller and were made payable to Travis Lake or his wife, and deposited into personal accounts Travis Lake controlled.
The factual resume states that Lake timely filed his federal income tax returns for 2006, 2007 and 2008, but willfully omitted income of approximately $77,070 for 2006; $82,540 for 2007; and $54,000 for 2008, all of which he received from Grapevine Drug Mart.
In related cases, two pharmacists at Grapevine Drug Mart, have also pleaded guilty to tax evasion, according to factual resumes filed in those cases. Norvell Moss admitted that he failed to report approximately $194,150 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Norvell Moss had an additional tax due and owing of $58,233 for that year. Joseph Moss admitted that he failed to report approximately $159,450 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Joseph Moss had an additional tax due and owing of $58,554 for that year. Norvell Moss is to be sentenced on May 10, 2013, and Joseph Moss is scheduled to be sentenced on June 24, 2013. They are both residents of Fort Worth, according to orders filed setting conditions for their release.
The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins are in charge of the prosecutions.