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4 February 2013
Village Market Food Centers’ Comptroller Charged with Stealing from CompanyRead the Press Release
GRAND RAPIDS, MICHIGAN – Christopher E. Pratt was charged Friday, February 1, 2013, with defrauding his former employer, Village Market Food Centers. In a one count Felony Information, the United States Attorney’s Office alleged that from 2004 until 2012 Pratt, who was Village Market’s Comptroller stole over $6,000,000 by diverting funds from Village Market Food Centers accounts to pay Pratt’s personal credit card bills. The Information alleges that Pratt used the money primarily to finance and maintain a fleet of muscle-cars. Pratt will appear in Court sometime in the next few weeks for his arraignment.If convicted, Mr. Pratt faces up to twenty years in prison, supervised release of up to three years, and other fines and penalties. This case is being investigated by the Federal Bureau of Investigation.
The charges in an information are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law..
END
Vice-President of Car Dealership Sentenced to 6 Years for Money Laundering and Drug Trafficking for the Gulf CartelRead the Press Release
Orlando, FL - U.S. States District Judge Roy B. Dalton, Jr. today sentenced Eladio Marroquin-Medina (31, Apopka) to 6 years in federal prison for conspiracy to possess with the intent to distribute 1,000 kilograms or more of marijuana and conspiracy to engage in money laundering. Medina was the vice-president JM2 Auto Sales, Inc. at 2636 Floral Avenue in Apopka.
Joel Torres, the president of JM2, was previously convicted by a federal jury of three counts of money laundering and eleven counts of Failure to File IRS Form 8300 (a report required for cash purchases over $10,000). Torres’ sentencing is scheduled for February 25, 2013, before United States District Judge Roy B. Dalton, Jr.
According to court documents, Medina and Torres laundered narcotics proceeds for the Gulf Cartel, at their car dealership in Apopka. The Gulf Cartel was a drug trafficking organization based out of Mexico. As payment for vehicles, Medina and Torres received money that was derived from narcotics sales. These vehicles were sent back to members of the Cartel in Texas, and were also used by local Cartel members in Florida. At one point during the money laundering conspiracy, from October 26, 2010 to November 16, 2010, one Cartel member brought more than $115,000 in cash into JM2 for the purchase of vehicles.
This case was investigated by the Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Apopka Police Department, Orange County Sheriff's Office, and Osceola County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Christopher LaForgia and Shawn Napier.
Utica Man Sentenced in Fraud CaseRead the Press Release
United States Attorney Richard S. Hartunian announced today that a Utica man has been sentenced for his role in an insurance and health care fraud scheme.
On January 31, 2013, JOSEPH DELLERBA, age 66, was sentenced by United States District Court Judge Norman A. Mordue in Syracuse. DELLERBA was sentenced to 30 months imprisonment and ordered to pay restitution in an amount exceeding $1.4 million, with $102,111 due immediately. DELLERBA will also serve three years of supervision following his release from incarceration.
DELLERBA pled guilty on September 17, 2012 to conspiracy to commit mail and health care fraud. DELLERBA admitted that in or about 2005 he agreed with other conspirators to participate in an insurance and health care fraud scheme. The scheme involved a staged motor vehicle accident on Harbor Lock Road in Utica on March 20, 2006. On that date, DELLERBA claimed to have been injured while a passenger in a Ford van which was struck by a Ryder truck driven by a coconspirator. In fact, the collision was staged and DELLERBA was not a passenger at the time of the impact. The defendant claimed to have been injured as a result of the accident and submitted false insurance claims, including claims for personal injuries, no fault benefits and disability benefits. DELLERBA sought medical treatment for non-existent injuries or injuries that were not related to the collision. The bills for this medical care were submitted to and paid by a health care benefit program, specifically an insurance policy issued by Progressive Insurance Company. DELLERBA also commenced a civil lawsuit seeking damages for personal injuries sustained in the accident. He received a payment of $682,297.21 to settle that suit.
The case was investigated by the Federal Bureau of Investigation and the New York State Insurance Fraud’s Bureau. The case was prosecuted by Assistant United States Attorney Edward R. Broton.
Two Patient Recruiters of Miami Home Health Company Plead Guilty in $20 Million Health Care Fraud SchemeRead the Press Release
Two patient recruiters for a Miami home health care company have pleaded guilty for their participation in a $20 million home health Medicare fraud scheme. The guilty pleas were announced today by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Michael B. Steinbach, Acting Special Agent-in-Charge of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Manuel Lozano, 65, and Vladimir Jimenez, 43, pleaded guilty today and Jan. 22, 2013, respectively, to one count each of conspiracy to receive health care kickbacks. They entered their guilty pleas before U.S. District Judge Joan A. Lenard in Miami federal court.
According to the court documents, both Lozano and Jimenez were patient recruiters who worked for Serendipity Home Health, a Miami home health care agency that claimed to provide home health and therapy services to Medicare beneficiaries.
The pair admitted that from approximately April 2007 through March 2009, Lozano and Jimenez would recruit patients, for which Serendipity could bill Medicare, in exchange for kickbacks and bribes they would solicit from Serendipity’s owners and operators. Medicare was billed for home health care and therapy services on behalf of these beneficiaries that were medically unnecessary and/or not provided.
Lozano and Jimenez each face a maximum potential penalty on the conspiracy charge of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for April 15 and April 1, 2013, for the respective defendants.
In a related case, on June 21, 2012, Serendipity owners and operators Ariel Rodriguez and Reynaldo Navarro were sentenced to 73 and 74 months in prison, respectively, following guilty pleas in March 2012 to one count each of conspiracy to commit health care fraud. According to court documents, from approximately January 2006 through March 2009, Serendipity submitted approximately $20 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $14 million for these fraudulent claims.
This case is being prosecuted by Senior Trial Attorney Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since their inception in March 2007, strike force operations in nine locations have charged more than 1,480 defendants who collectively have falsely billed the Medicare program for more than $4.8 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Three Sentenced for Trafficking Meth in Southwest IdahoRead the Press Release
Ten Co-Defendants Await Sentencing on Related Drug Charges
BOISE – U.S. Attorney Wendy J. Olson announced today that three members of a Southwest Idaho drug trafficking organization were sentenced to serve federal prison sentences for conspiracy to distribute methamphetamine. The defendants appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Jacob James Clevenger, 31, of Weiser, Idaho, was sentenced to 188 months; Mario Martinez, Jr., 55, of Greenleaf, Idaho, to 57 months; and Fabian Jordano Beltran, 23, also of Weiser, to 36 months in prison. The defendants were each ordered to serve five years of supervised release after their prison term. Clevenger and Martinez pleaded guilty in October 2012; Beltran pleaded guilty in July.
According to court documents, from early November 2011 through May 16, 2012, the defendants conspired with others, including co-defendants, to distribute a total of approximately 11 pounds of methamphetamine in Canyon, Payette and Washington counties in Idaho.
Seven co-defendants pleaded guilty last year to related drug trafficking charges and are currently awaiting sentencing. Patric Campbell and Benjamine L. Vertner are set for sentencing on February 25; Amber Hites on February 26; Kristopher Hensley, Johnathan E. Chapman, and Johnny A. Tambunga on February 27; and Dawson Lee Moore on March 27.
On January 22, three co-defendants were convicted by a federal jury of conspiracy to distribute methamphetamine. Jesus Guadalupe Sanchez a/k/a Jose Salazar, a Mexican national, Michael Dennis Morris, and Jim Allen Loveland are scheduled to be sentenced on April 8. Sanchez was also convicted of possession of methamphetamine with intent to distribute.
The case was investigated by the Idaho State Police.
Three Nicholas County Residents Sentenced to Prison for Methamphetamine Manufacturing ConspiracyRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that three Nicholas County residents were sentenced to federal prison for conspiracy to manufacture methamphetamine. Felicia Bess, 23, of Summersville, Nicholas County, W.Va., was sentenced today to three years in prison. Co-defendant Roy Spinks, Jr., also known as “Brat” 39, of Craigsville, Nicholas County, W.Va., was sentenced on Feb.1st to six years in prison. A third co-defendant, Bratten Smith, 28, of Richwood, Nicholas County, W.Va., was also sentenced on Feb.1st to two years in prison. Spinks admitted that from September 2010 until June 2011, he manufactured methamphetamine using a technique known as the “shake and bake” method. Spinks further admitted that he manufactured the methamphetamine at several different residences located in and around Nicholas County. Co-defendant Bess admitted that from September until June 2011, she cooked methamphetamine using the “shake and bake” method and assisted other individuals, including co-defendant Spinks.
Bratten Smith admitted that from at least February 2011 until May 1, 2011, he assisted co-defendants Spinks and Bess in manufacturing methamphetamine at a residence in Nicholas County, W.Va. Smith further admitted that during the scheme, he supplied pseudoephedrine and other ingredients used to manufacture methamphetamine. In exchange for the meth-making materials, Smith admitted that he received methamphetamine for his personal use.
The U.S. Forestry Service, the Central West Virginia Drug Task Force, the West Virginia State Police, the Nicholas County Sheriff’s Department and the Richwood Police Department conducted the investigation. Assistant United States Attorney John Frail handled the prosecutions. The sentences were imposed by United States District Judge John T. Copenhaver, Jr.
The Executive Office for Immigration Review Swears in New Assistant Chief Immigration JudgeRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced the investiture of a new assistant chief immigration judge. Chief Immigration Judge Brian M. O’Leary presided over the investiture during a ceremony held at EOIR’s headquarters on Feb. 1, 2013.
After a thorough application process, Attorney General Eric Holder appointed Abigail M. Price to her new position. “We are pleased to welcome Ms. Price as our newest assistant chief immigration judge,” said O’Leary. “She will be responsible for the continuing development and implementation of the Office of the Chief Immigration Judge’s emphasis on providing immigration proceedings for all respondents that are fundamentally fair and timely. We are proud to be able to place in this important role someone with Judge Price’s strong background in working with vulnerable populations.”
Biographical information follows.
Abigail M. Price, Assistant Chief Immigration Judge
Abigail M. Price was appointed as an assistant chief immigration judge in January 2013, with responsibility for continuing the development and implementation of EOIR policy concerning vulnerable populations. She received a bachelor of arts degree in 1982 from Wheaton College, in Norton, Mass.; a juris doctorate in 1988 from Case Western Reserve University School of Law in Cleveland, Ohio; and a master of laws degree in 1989 from New York University School of Law. From April 2012 to December 2012, Judge Price served as a consultant to Catholic Relief Services in Baltimore, Md. From April 2011 to December 2011, she was a consultant for the International Rescue Committee (IRC) in New York. From April 2009 to April 2011, Judge Price served as deputy and national legal services director for Kids in Need of Defense in Washington, D.C. From 2001 to 2009, she worked for the IRC, as national director of immigration programs, and as global advisor on the prevention of exploitation. From 2000 to 2001, Judge Price was a resettlement expert for the Office of the United Nations High Commissioner for Refugees, Department of International Protection, Resettlement Section, in Geneva, Switzerland. From 1996 to 2000, she served as immigration policy advisor for the National Catholic Conference of Bishops/United States Catholic Conference, Migration and Refugee Services, in Washington, D.C. From 1994 to 1996, Judge Price served as the Washington representative for Church World Service, Immigration and Refugee Program, National Council of Churches USA, in New York. From 1993 to 1994, she was supervising attorney for Haitian Legal Services. From June 1992 to December 1992, Judge Price served as supervising attorney for the Haitian Refugee Program for Catholic Legal Immigration Network, Inc. From 1990 to 1992, she served as supervising attorney for the Diocese of Brooklyn, Catholic Migration Office, in New York. Judge Price is a member of the Connecticut Bar.
- 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 ReviewTappahannock Charter Fishing Boat Captain Pleads Guilty to Lacey Act ViolationRead the Press Release
NORFOLK, Va. – William W. Lowery IV, 44, of Tappahannock, Va., pleaded guilty today to trafficking in illegally-harvested striped bass, in violation of the Lacey Act, announced Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.
Among other things, the Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase any fish and wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States, or to attempt to do so. Under the Lacey Act, it is a “sale” of fish or wildlife for any person, for money or other consideration, to offer or provide guiding, outfitting, or other services.
Lowery was indicted on Nov. 8, 2012, by a federal grand jury on one count each of violating the Lacey Act and Destruction of Evidence. Lowery faces a maximum penalty of one year in prison, a $100,000 fine, and one-year of supervised release. He is scheduled to be sentenced on May 9, 2013.
As part of his plea agreement, Lowery has agreed to serve 30 days in jail, pay a $5,000 fine and $1,300 in restitution to the National Oceanic and Atmospheric Administration (NOAA) for the illegally-harvested striped bass, and surrender his captain’s license for life. As part of his plea agreement, Lowery has also agreed that he will not engage in the charter fishing industry in any capacity during the term of his supervised release.
In a statement of facts filed with his plea agreement, Lowery admitted that on Jan. 15, 2010, he took a charter fishing trip into the Exclusive Economic Zone (EEZ) to fish for striped bass, knowing that it was illegal to fish for striped bass in the EEZ. When Lowery’s boat, the Anna Lynn was approached by law enforcement, Lowery attempted to flee. When the Anna Lynn was caught, law enforcement officers observed a plastic trash barrel with 13 Striped Bass floating in the water near the Anna Lynn. The trash barrel had been thrown overboard from the Anna Lynn during the pursuit, and the striped bass contained within the trash barrel had been harvested by fishermen aboard the Anna Lynn within the EEZ.
This case was investigated by the National Oceanic and Atmospheric Administration, Fisheries, Office for Law Enforcement, and the U.S. Coast Guard with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk, Va. Office. Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Stephen W. Haynie from the Eastern District of Virginia are prosecuting the case on behalf of the United States.Syracuse Area Physician Required to Pay Civil Penalty for Violations of the Federal Controlled Substances ActRead the Press Release
Onondaga County physician settles for $60,000.00
(Syracuse, New York)- United States Attorney Richard S. Hartunian announced that in December of 2012, his office reached a civil settlement with Dr. William Beals, a Liverpool, New York physician, for $60,000.00. The settlement agreement provided for payments over time and Dr. Beals made his final payment to the United States on January 11, 2013. As part of the settlement agreement, Dr. Beals also voluntarily surrendered his Drug Enforcement Administration number, which enables physicians to prescribe controlled substances. The settlement was in connection with violations of the Controlled Substances Act.
On February 1, 2012, DEA investigators conducted an inspection of Dr. Beals’ office and subsequently questioned him about controlled substances he purchased between March 8, 2010 and January 25, 2012. According to the complaint filed in connection with the settlement, Dr. Beals had ordered approximately 5,000 Hydrocodone pills, a Schedule III controlled substance, and 1,100 Zolpidem pills, a Schedule IV controlled substance during this time period. Dr. Beals, however, not only was unable to provide purchase, dispensing, or destruction records for these drugs, he could not account for their whereabouts in any way.
The Controlled Substances Act was enacted to ensure that controlled substances are properly regulated and to help prevent drug diversion. To that end, practitioners who dispense controlled substances are required to properly maintain complete and accurate inventories and records of all controlled substances that they purchase, receive, dispense, or destroy.
Prescription drug abuse is a significant nationwide issue. According to U.S. Attorney Richard S. Hartunian, his office takes drug diversion very seriously and will aggressively pursue those who violate the Controlled Substances Act, especially if they are professionals in the medical field. “It simply is unacceptable for medical professionals to act irresponsibly when handling controlled substances. The potential for these substances to end up in the wrong hands is something we are not willing to risk, and we will take whatever steps are necessary to prevent this from happening.”
Suburban Man Sentenced to Five Years in Federal Prison for Receiving Child PornographyRead the Press Release
CHICAGO — A north suburban man was sentenced today to five years in federal prison for amassing a staggering collection of child pornography over a decade. The defendant, DANIEL BERMAN, 49, of Northbrook and formerly of Buffalo Grove, pleaded guilty last July to receiving child pornography, admitting that he had collected more than 100,000 illicit images.
Berman was formerly a police dispatcher in Northbrook and a paramedic in Northfield, however, his public safety employment played no role in the offense. There were no allegations or indications of any sexual contact with minors.
Berman was also fined $85,000 and placed on supervised release for 15 years following his prison term by U.S. District Judge Matthew Kennelly. Berman was ordered to surrender on May 14 and must serve at least 85 percent of his sentence before he is eligible for release. There is no parole in the federal prison system.
“The children depicted in these images experienced immeasurable harm,” Judge Kennelly said, adding “it’s anything other than a victimless crime.”
According to court documents, Berman was charged after U.S. Immigration and Customs Enforcement’s Homeland Security Investigations agents received information from Italian authorities that a website containing child pornography had been accessed by a computer with an internet address located in Buffalo Grove. Agents executed a search warrant at Berman’s Buffalo Grove home in May 2011 and seized computer equipment, including three external hard drives, 14 DVDs containing child pornography and 15 binders containing 611 categorized images of child pornography. The computer hard drives and DVDs were found to contain virtually countless illicit images and videos. Authorities tabulated approximately 100,000 images and videos with known victims identified by the National Center for Missing and Exploited Children.
In addition to the sheer volume of child pornography that Berman accumulated between 2001 and 2011, Assistant U.S. Attorney Andrianna D. Kastanek noted that he maintained his collection in a systematic and organized manner over a lengthy period of time.
In pleading guilty, Berman also admitted that he used peer-to-peer file sharing programs to acquire child pornography from other Internet users, who also had access to images and videos of child pornography stored in shared files on his computer.
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of HSI in Chicago.
Somerset County Man Sentenced for Evading Income TaxesRead the Press Release
JOHNSTOWN, Pa. - A resident of Fort Hill, Pa., has been sentenced in federal court to six months in prison to be followed by six months home detention with electronic monitoring and three years supervised release on his conviction of income tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Leonardus A. Otto.
According to information presented to the court, for the calendar years 2005, 2006 and 2007 Otto filed income tax returns showing a total taxable income of $70,844 with total tax due of $26,467, when in actuality his total taxable income was $488,165 with total tax due of $147,259.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service for the investigation leading to the successful prosecution of Otto.
Six Sentenced to Prison in Florida for Federal Tax CrimesRead the Press Release
Six individuals have been sentenced to federal prison by U.S. District Judge William P. Dimitrouleas for filing false claims for tax refunds, announced Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, IRS-Criminal Investigation (IRS-CI), Miami Office.
On Jan. 28, 2013, Penny Jones of Rigby, Idaho, was sentenced to 144 months in prison. Jones had pleaded guilty, without the benefit of a plea agreement, to conspiracy to defraud the United States and 41 counts of filing false claims for tax returns. On that same day, John Michael Smith Jr. of Hidden Hills, Calif., was sentenced to 36 months in prison. Smith pleaded guilty to filing a false claim for a tax refund. According to court documents related to the plea, Smith had sought over $208,000, an amount to which he knew he was not entitled.
Defendants Michael D. Beiter, Jr. formerly of Coral Springs, Fla., David Clum, Jr., of Whites Creek, Tenn., Dale Peters, of San Mateo, Calif., and Christopher Marrero, of Davie, Fla., were all sentenced on Feb. 1, 2013. All four were convicted, following a four-week trial in October 2012, of conspiracy to defraud the United States with respect to claims and multiple counts of filing false claims for tax refunds.
Beiter was sentenced to 300 months in prison, which is to be served consecutively to a ten year sentence he is currently serving for promoting a separate tax fraud scheme. Clum was sentenced to 293 months in prison. Peters was sentenced to 144 months in prison. Marrero was sentenced to 180 months in prison.
“Taxpayers should be wary of deals that appear too good to be true,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “Instigators of these tax scams take money from these taxpayers, who may end up paying substantial penalties to the IRS. Sentences like the ones handed down in this case show that peddlers of these bogus tax schemes face significant jail time for their crimes.”
U.S. Attorney Wifredo A. Ferrer stated, “Tax refund scams are the latest crime du jour. For a $750 fee, complicit clients across the United States expected the defendants to submit false returns to the IRS on their behalf, claiming exorbitant fraudulent refunds, to be shared with the defendants. Instead of receiving enormous refunds, however, the defendants were sentenced to substantial jail time and the clients received substantial civil penalties and were subject to aggressive collection efforts by the IRS. As this case demonstrates, we will continue to crack down on fraudsters and will not let them line their pockets with our tax dollars.”
“The defendants who perpetrated this scheme systematically defrauded the government and the taxpaying public,” said Richard Weber, Chief IRS Criminal Investigation. “At the IRS, protecting taxpayer money is a matter we take very seriously. IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
The evidence at trial showed that Jones, Beiter, Clum, Peters and others operated a scheme to defraud the IRS out of tax refunds. The false return scheme operated under the name PMDD Services LLC, and, later, Forever Grace LLC. The false return scheme was nationwide, causing the filing of tax returns for at least 180 clients from 30 different states, requesting more than $160 million in fraudulent tax refunds. The defendants and clients of the scheme collectively filed more than 380 tax returns, mostly from tax year 2008 but also for other tax years. The tax returns falsely reported the amount of their personal debt obligations as both income and as federal tax withholding. The fictitious income and withholding was reported to the IRS on Forms 1099-OID.
According to the evidence at trial, the tax returns prepared as part of the scheme fraudulently claimed refunds in amounts specifically intended to allow the clients to pay off their mortgages, credit cards, student loans, and other personal debts. Clients paid $750 to have the defendants prepare a tax return reporting this fictitious “OID” income, and clients agreed to share 10 percent of their tax refund with defendants. The trial evidence also showed that defendant Beiter and Clum held seminars in Florida and Tennessee, respectively, in which they recruited potential clients.
The evidence at trial further established that most clients of the scheme did not receive the enormous refunds requested, but instead received substantial civil penalties. Those who did receive refunds were typically subject to collection efforts by the IRS.
In addition, the evidence showed that defendants Beiter, Clum and Marrero recruited clients for the scheme. Clum also filed false “OID” tax returns himself. Peters was PMDD Services’ information technology specialist, writing software and implementing computerized procedures to automate the process of preparing the fraudulent tax returns.
Separate from the 1099-OID scheme, Marrero was convicted of filing three false tax returns at three separate IRS offices on the same day. Each return requested a refund in excess of $80,000 based on non-existing gambling income and associated tax withholding.
Previously, in a related case, a client of the scheme, Philip Butcher, formerly of Rogers, Ark., pleaded guilty to filing a false claim for a tax refund. Butcher filed two tax returns reporting his loans as OID income and tax withholding, claiming tax refunds totaling $1,456,696.
These cases were investigated by Special Agents of IRS-Criminal Investigation. Assistant U.S. Attorney Bertha Mitrani and Tax Division Trial Attorneys Jonathan Marx and Jed Silversmith prosecuted the cases.
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Complaint for Permanent Injunction and Other Relief (PDF)Six Sentenced to Prison for Federal Tax CrimesRead the Press Release
Six individuals were sentenced to federal prison last week by U.S. District Judge William P. Dimitrouleas for filing false claims for tax refunds, announced Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and Jose A. Gonzalez, Special Agent in Charge, IRS-Criminal Investigation (IRS-CI), Miami Office.
On January 28, 2013, Penny Jones, of Rigby, Idaho, was sentenced to 144 months in prison. Jones had pleaded guilty, without the benefit of a plea agreement, to conspiracy to defraud the United States and 41 counts of filing false claims for tax returns. On that same day, John Michael Smith, Jr., of Hidden Hills, Calif., was sentenced to 36 months in prison. Smith pleaded guilty to filing a false claim for a tax refund. According to court documents related to the plea, Smith had sought over $208,000, an amount to which he knew he was not entitled.
Defendants Michael D. Beiter, Jr., formerly of Coral Springs, Fla., David Clum, Jr., of Whites Creek, Tenn., Dale Peters, of San Mateo, Calif., and Christopher Marrero, of Davie, Fla., were all sentenced on February 1, 2013. All four were convicted, following a four-week trial in October 2012, of conspiracy to defraud the United States with respect to claims and multiple counts of filing false claims for tax refunds.
Beiter was sentenced to 300 months in prison, which is to be served consecutively to a ten year sentence he is currently serving for promoting a separate tax fraud scheme. Clum was sentenced to 293 months in prison. Peters was sentenced to 144 months in prison. Marrero was sentenced to 180 months in prison.
U.S. Attorney Wifredo A. Ferrer stated, “Tax refund scams are the latest crime du jour. For a $750 fee, complicit clients across the United States expected the defendants to submit false returns to the IRS on their behalf, claiming exorbitant fraudulent refunds, to be shared with the defendants. Instead of receiving enormous refunds, however, the defendants were sentenced to substantial jail time and the clients received substantial civil penalties and were subject to aggressive collection efforts by the IRS. As this case demonstrates, we will continue to crack down on fraudsters and will not let them line their pockets with our tax dollars.”
“Taxpayers should be wary of deals that appear too good to be true,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “Instigators of these tax scams take money from these taxpayers, who may end up paying substantial penalties to the IRS. Sentences like the ones handed down in this case show that peddlers of these bogus tax schemes face significant jail time for their crimes.”
“The defendants who perpetrated this scheme systematically defrauded the government and the taxpaying public,” said Richard Weber, Chief IRS Criminal Investigation. “At the IRS, protecting taxpayer money is a matter we take very seriously. IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
The evidence at trial showed that Jones, Beiter, Clum, Peters, and others operated a scheme to defraud the IRS out of tax refunds. The false return scheme operated under the name PMDD Services LLC, and, later, Forever Grace LLC. The false return scheme was nationwide, causing the filing of tax returns for at least 180 clients from 30 different states, requesting more than $160 million in fraudulent tax refunds. The defendants and clients of the scheme collectively filed more than 380 tax returns, mostly from tax year 2008 but also for other tax years. The tax returns falsely reported the amount of their personal debt obligations as both income and as federal tax withholding. The fictitious income and withholding was reported to the IRS on Forms 1099-OID.
According to the evidence at trial, the tax returns prepared as part of the scheme fraudulently claimed refunds in amounts specifically intended to allow the clients to pay off their mortgages, credit cards, student loans, and other personal debts. Clients paid $750 to have the defendants prepare a tax return reporting this fictitious “OID” income, and clients agreed to share 10 percent of their tax refund with defendants. The trial evidence also showed that defendant Beiter and Clum held seminars in Florida and Tennessee, respectively, in which they recruited potential clients.
The evidence at trial further established that most clients of the scheme did not receive the enormous refunds requested, but instead received substantial civil penalties. Those who did receive refunds were typically subject to collection efforts by the IRS.
In addition, the evidence showed that defendants Beiter, Clum, and Marrero recruited clients for the scheme. Clum also filed false “OID” tax returns himself. Peters was PMDD Services’ information technology specialist, writing software and implementing computerized procedures to automate the process of preparing the fraudulent tax returns.
Separate from the 1099-OID scheme, Marrero was convicted of filing three false tax returns at three separate IRS offices on the same day. Each return requested a refund in excess of $80,000 based on non-existing gambling income and associated tax withholding.
Previously, in a related case, a client of the scheme, Philip Butcher, formerly of Rogers, Ark., pleaded guilty to filing a false claim for a tax refund. Butcher filed two tax returns reporting his loans as OID income and tax withholding, claiming tax refunds totaling $1,456,696.
These cases were investigated by Special Agents of IRS-Criminal Investigation. Assistant U.S. Attorney Bertha Mitrani and Tax Division Trial Attorneys Jonathan Marx and Jed Silversmith prosecuted the cases.
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.
Recipient of Ponzi Schemer’s Funds Sentenced to 57 Months in Custody for Evading More Than $1 Million in Income TaxesRead the Press Release
United States Attorney Laura E. Duffy announced that Donald E. Lopez was sentenced today in federal court in San Diego to serve 57 months in custody for tax evasion stemming from his willful failure to pay income taxes the more than $3.94 million in funds he received from convicted Ponzi-scheme operator Matthew La Madrid. U.S. District Judge Larry Alan Burns ordered Lopez immediately into custody, and directed him to pay $1,345,693.26 in restitution to the Internal Revenue Service for his crimes. Lopez had previously pled guilty to a one-count felony information charging him with willfully evaded income taxes on this $3.94 million in revenue, his concealment of his use of the money, and his false representations in court proceedings in San Diego in order to conceal the fact that he had received and spent the money for his own use and benefit.
As outlined in Lopez’s plea agreement and other court records, the funds Lopez concealed were part of a $10 million transfer La Madrid had made to Lopez’s company in November 2007, as part of La Madrid’s fraudulent investment, real estate, and mortgage fraud schemes. The money was identified in other proceedings as investor funds from La Madrid’s and related fraud schemes. La Madrid has already been sentenced to serve ten years in prison for orchestrating these schemes, which included sending these funds to Lopez without his client’s knowledge or consent.
In connection with his plea to tax evasion, Lopez admitted that, after taking these funds, he did not file tax returns for 2007 and 2008, and knowingly and willfully failed to report the funds as income for those years. As a result, the IRS lost more than $1.3 million in tax revenue.
Previously, on November 13, 2009, Lopez had pled guilty to a federal obstruction of justice charge based on his false representations in a civil case filed in the United States District Court for the Southern District of California, seeking to recover La Madrid investor funds. Lopez admitted in that proceeding that he sought to conceal from the Court and the IRS the true location, condition, and disposition of the $10 million wired by La Madrid to Lopez’s company in November 2007. Lopez had served a 15 month sentence on the obstruction of justice conviction before being charged last year with tax evasion.
DEFENDANT Case Number: 12CR4033-LAB Donald E. Lopez SUMMARY OF CHARGEIncome Tax Evasion, in violation of Title 26, United States Code, Section 7201
INVESTIGATING AGENCYInternal Revenue Service - Criminal Investigation
Raymore Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raymore, Mo., man pleaded guilty in federal court today to possessing thousands of images of child pornography.
Malcolm J. Wolf, 32, of Raymore, pleaded guilty before U.S. District Judge Dean Whipple to one count of attempting to receive child pornography and one count of possessing child pornography. According to court documents, Wolf legally changed his name on April 8, 2011, from Jose Lorenzo Lopez.
Federal agents, while conducting an undercover investigation of a Web site sharing child pornography, identified Wolf’s computer as having accessed images of child pornography from the site in January 2011. When agents executed a search warrant at Wolf’s residence, they found six computers and seven loose hard drives that contained thousands of images of child pornography, including hundreds of movies of child pornography. The children depicted in those images and movies ranged in age from babies to teens.
Wolf is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $500,000. Under the terms of today’s plea agreement, Wolf must pay a total of $10,000 in restitution to two of the victims portrayed in those images and movies, or $6,000 if he pays the restitution within 30 days of his sentencing date. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Rapid City Man Indicted for False Information Concerning Aircraft PiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man has been indicted by a federal grand jury for allegedly making a false report to law enforcement authorities that an attempt was being made to hijack an aircraft in Pennington County on January 3, 2013.
Curtis Belile, age 24, was indicted by a federal grand jury on January 23, 2013 for False Information Concerning Aircraft Piracy. Belile appeared before United States Magistrate Judge Veronica L. Duffy on January 29, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Belile is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rapid City Police Department, Box Elder Police Department, Pennington County Sheriff's Office, SD Highway Patrol, and the Federal Bureau of Investigation. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case. Belile was released on bond pending trial. A trial date has been set for April 9, 2013.
Ramah Navajo Man Sentenced to Six Years in Prison for Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Dhanzasikam R. Toledo, 21, an enrolled member of the Ramah Navajo Chapter of the Navajo Nation, was sentenced this morning to 72 months in prison followed by three years of supervised release for his voluntary manslaughter conviction.
Toledo was arrested on Nov. 21, 2011, on a criminal complaint alleging that he murdered his uncle, also a member of the Ramah Navajo Chapter, on Nov. 10, 2011, in Ramah, N.M., which is located on the Navajo Indian Reservation. Toledo was indicted on a second degree murder charge on Dec. 13, 2011.
On Sept. 26, 2012, a federal jury acquitted Toledo on the second degree murder charge but convicted him of the lesser included charge of voluntary manslaughter. According to the evidence presented at trial, Toledo stabbed the victim to death on Nov. 10, 2011, during an argument over a debt owed by Toledo to the victim that escalated to include personal verbal attacks about Toledo and his family. Toledo stabbed the victim after the victim started making racially derogatory slurs about Toledo, who is of Indian and African‐American descent.
The case was investigated by the Gallup office of the FBI and the Ramah Navajo Nation Police Department, and was prosecuted by Assistant U.S. Attorneys Niki Tapia‐Brito and Presiliano Torrez.
Providence Man Pleads Guilty to Producing Child Pornography Outside the U.S.Read the Press Release
PROVIDENCE, R.I. – Juan Carlos Santiago, 35, of Providence, R.I., pleaded guilty in U.S. District Court in Providence today to production of child pornography outside the United States and transporting it into the United States. Santiago faces between 15-30 years in federal prison, followed by 5 years to lifetime supervised release, when he is sentenced on June 6, 2013.
Appearing before U.S. District Court Chief Judge Mary M. Lisi, Santiago admitted to the court that he travelled to the Dominican Republic in January 2011, and recorded himself engaged in sexually explicit conduct with a prepubescent male child. Santiago admitted that he transported the images and videos back to the United States. He also admitted to recording video chat sessions, including sexually explicit conduct, with minors he engaged using social media.
Santiago also admitted to the court that he possessed at least 50 such videos on his home computer, and that he received and distributed at least 150 images of child pornography.
Santiago’s guilty plea was announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; and Bruce M. Foucart, Special Agent in Charge of the Boston Field Office of Homeland Security Investigations.
On October 26, 2012, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force conducted a court authorized search of Santiago’s residence and seized two computers, digital storage devices, a digital camera and assorted CDs and DVDs. A forensic examination of the equipment by a Rhode Island State Police Computer Crimes Digital Forensic Analyst revealed numerous images of Santiago engaged in sexual activity with a prepubescent male. Based on GPS coordinates embedded inside the photographs discovered by the analyst, agents determined that the images were taken in the Dominican Republic.
Santiago was arrested on December 20, 2012, by agents from Homeland Security Investigations and members of the ICAC Task Force. He has been detained in federal custody since his arrest.
The case is being prosecuted by Assistant U.S. Attorney Adi Goldstein.The ICAC Task Force is a Department of Justice grant-funded program administered by the Rhode Island State Police, and is comprised of detectives from the Rhode Island State Police; Providence, West Warwick, Coventry, Warwick, Johnston, and Pawtucket Police Departments; and federal agents from ICE-HSI, United States Postal Inspectors’ Office and United States Naval Criminal Investigative Service. The objective of the ICAC Task Force is to form strong working relationships among federal, state and local law enforcement in order to effectively and efficiently prevent, detect, investigate, and prosecute online child exploitation and child pornography crimes.
This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Contact: 401-709-5357
[email protected]Pimp Sentenced to 10 Years in Prison for Prostituting a Child OnlineRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Melvin Douglas, a/k/a Melvin Longwood, age 32, of Washington, D.C., today to 10 years in prison, followed by 10 years of supervised release, for transporting a minor across state lines to engage in prostitution. Judge Chasanow ordered that upon his release from prison, Douglas must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police, as part of the Maryland Child Exploitation Task Force; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to Douglas’ plea agreement, from September 5, 2011 to February 9, 2012, Douglas transported a minor female from Washington, D.C. to hotels in Maryland to engage in prostitution. The Maryland State Police Child Recovery Unit received a missing child alert from the National Center for Missing and Exploited Children for a 15 year old female, who had been reported missing from Prince William County, Virginia. The Maryland Child Exploitation Task Force located an ad on a website frequently used to advertise prostitution and escort services that featured the missing girl.
A “date” was made with the victim, using the telephone number from the advertisement. A law enforcement officer was instructed to meet the girl at a motel in College Park, Maryland on February 9, 2012. An agent saw Douglas and another individual exit the motel room a few minutes before the arranged time for the date, and approach an SUV. Douglas was stopped and searched. A room key and $3,000 were seized. The missing girl was found in the motel room and interviewed. She confirmed that Douglas kept all the money she earned by prostitution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
The case was part of the Maryland Child Exploitation Task Force efforts to combat child prostitution. The Task Force, created in 2010 is comprised of 15 members representing 10 agencies, both state and federal. Since October 2011, the TF has recovered 32 juveniles and investigated 25 cases that have resulted in state and federal prosecutions. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police, Maryland Child Exploitation Task Force and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas and Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Pascua Yaqui Teen Sentenced to 18 Months in Prison for Stabbing Another ManRead the Press Release
TUCSON – On Jan. 31, 2013, Michael A. Alvarez-Suarez, 19, of Tucson, Ariz., was sentenced by visiting U.S. District Judge Marvin Aspen to 18 months in a federal prison, followed by 3 years of supervised release. Alvarez-Suarez pleaded guilty on Nov. 29, 2012, to one count of aggravated assault. Both the victim and the defendant are members of the Pascua Yaqui Tribe, where the altercation took place.
On Aug. 1, 2011, one week after turning 18, Alvarez-Suarez got into a confrontation with a man. Alvarez-Suarez pulled out a pocket knife during the encounter and stabbed the victim twice, resulting in non-life-threatening injuries. Alvarez-Suarez was arrested by Pascua Yaqui police and was prosecuted through the Tribal Court, where he served a 6 month prison sentence for assault. In the meantime, he was indicted by a federal grand jury for felony aggravated assault and was taken into federal custody on Jan. 25, 2012, immediately after completing his tribal sentence.
The investigation in this case was conducted by the Pascua Yaqui Police Department and the Federal Bureau of Investigation, Tucson Office. The prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-12-0114-DCB(DTF)
RELEASE NUMBER: 2013-012 _Alvarez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/Palmer Man charged with assault and illegally entring Joint Base Elemendorf-RichardsonRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Kyle Hansen, 25, of Palmer, Alaska, was charged by a federal criminal complaint in Anchorage on charges of assault on a Federal Officer, destruction of government property, and illegally entering a military property.
The three count complaint named Hansen as the sole defendant.
According to the criminal complaint, in the early morning hours of January 19, 2013, Hansen illegally drove a pick-up truck through the Boniface gate at Joint Base Elmendorf-Richardson.
He then tried to exit Joint Base Elmendorf-Richardson through the gate at Government Hill and when that exit was blocked, he then turned around to attempt an exit through the Boniface gate. The charging documents allege that while in Joint Base Elmendorf-Richardson, Hansen struck one Air Force law enforcement officer and a law enforcement vehicle with his vehicle and then crashed through the closed Boniface gate causing significant damage to the gate.
The Air Force Office of Special Investigations conducted the investigation leading to the criminal charges in this case.
A complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Oxycodone Dealer Sentenced to 86 Months in PrisonRead the Press Release
PHILADELPHIA - Joseph Fareri, 52, of Philadelphia, PA, was sentenced today to 86 months in prison and six years of supervised release for his role in a drug conspiracy. Fareri was charged, with co-defendants William Andrews and John Marshall, with conspiracy to distribute oxycodone and distributing oxycodone within 1,000 feet of a school. The indictment alleged that the defendants intentionally distributed approximately 7,000 pills. Fareri pleaded guilty and admitted to distributing 691 pills. Andrews pleaded guilty and will be sentenced February 28, 2013. Marshall is awaiting trial.
Andrews obtained oxycodone pills from various sources, including a licensed physician who issued prescriptions to defendant Andrews authorizing the defendant to obtain oxycodone pills from licensed pharmacies. Andrews then supplied oxycodone pills to Fareri, an admitted member of the Pagan’s Outlaw Motorcycle Club, for the purpose of selling the pills to customers, typically charging $20 for a 30 milligram pill. Andrews also sold oxycodone pills to customers. When Andrews was not available to make deliveries of oxycodone pills, defendant Marshall allegedly made the deliveries to Andrews’ customers.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Attorney General’s Office. It is being prosecuted by Assistant United States Attorneys David Troyer and Frank Labor and Special Assistant United States Attorneys Erik Olson and Heather Castellino of the Pennsylvania State Attorney General’s Office.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New York Man Admits His Role in Large-Scale Identity Theft Ring and Tax EvasionRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in a large scale and sophisticated identity theft scheme, U.S. Attorney Paul J. Fishman announced.
Young-Woo Ji, 38, Bayside, N.Y., pleaded guilty before U.S. District Judge Katharine S. Hayden to an Information charging him with conspiracy to commit wire fraud affecting financial institutions and bank fraud, aggravated identity theft and false claims. He was arrested on Sept. 16, 2010 and released on a $250,000 bail.
According to documents filed in this case and statements made in court:
Ji conspired with Sang-Hyun Park, a/k/a “Jimmy,” and others to defraud banks, credit card companies, and other lenders. Ji admitted that in February 2008, he traveled to Illinois and used a Social Security card, beginning with the prefix “586” and belonging to a person with the initials F.C., to fraudulently obtain a driver’s licenses. These “586” Social Security cards were issued by the United States to individuals, usually from China, who were employed in American territories, such as Guam. Park is alleged to have been the leader of a criminal organization headquartered in Bergen County, N.J. that obtained, brokered, and sold identity documents to customers for the purpose of committing credit card fraud, bank fraud, tax fraud, and other crimes. Park pleaded guilty on Jan. 9, 2012, to his role in the enterprise and is awaiting sentencing.
The Park Criminal Enterprise engaged in the fraudulent “build up” of credit scores associated with the Chinese identities. They did so by adding the Chinese identity as an authorized user to the credit card accounts of various conspirators who received a fee for this service – members of the enterprise’s credit build-up teams. By attaching the Chinese identities to these existing credit card accounts, the teams increased the credit scores associated with the Chinese identities to between 700 and 800. The members of the build-up teams knew neither the real person to whom the identity belonged nor virtually any of the customers who had purchased the identities.
After building up the credit scores associated with these identities, Park and his conspirators directed, coached, and assisted his customers to open bank accounts and obtain credit cards. Park and his conspirators then used these accounts and credit cards to commit fraud. Park relied on several collusive merchants who possessed credit card processing, or swipe, machines. For a fee, known as a “kkang fee,” these collusive merchants charged the fraudulently obtained credit cards, although no transaction took place. After receiving the money into their merchant accounts from the credit card elated to these fraudulent transactions, the collusive merchants gave the money to Park and his conspirators, minus their “kkang fee.”Ji admitted that he used the F.C. identity to fraudulently obtain credit cards. He then used these credit cards, in the name of F.C., to fraudulently build up credit scores and credit histories for Park’s customers who had obtained “586” identities from the Park Criminal Enterprise.
Ji also admitted that he used the F.C. identity to establish a merchant account for ZZ Entertainment, Inc., a completely fictitious business. By establishing this account, Ji obtained a credit card processing machine and thereafter served as a “collusive merchant” for the Park Criminal Enterprise. Ji acknowledged that between Oct. 5, 2008, and Oct. 20, 2008, he charged $50,000 in fraudulent credit card charges through his ZZ Entertainment Corp. account and then shared portions of this fraud with Park. In total, Ji caused more than $400,000 in financial losses to bank, credit card companies, and others.
Ji admitted that he used the “586” identities that he had obtained from Park to file fraudulent tax returns with the IRS. Ji admitted that he used these identities, together with fraudulent Forms W-2, to claim hundreds of thousands of dollars in tax refunds.
Ji faces the following statutory maximums: 30 years’ in prison on the conspiracy count, two years in prison on the identity theft count and two years on the false claims count. Sentencing is scheduled for May 15, 2013.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge David Velazquez in Newark; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; the Department of Homeland Security’s Immigration and Customs Enforcement, under the direction of Special Agent in Charge Andrew M. McLees; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli; and the Office’s Chief of Detectives Steven Cucciniello for the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
As for other members of the Park Criminal Enterprise, the charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13-060
Defense Counsel: James K. Grace Esq., Mount Holly, N.J.Ji, Young-Woo Information
Multimillion-Dollar Real Estate Ponzi Schemer Admits Securities Fraud and Money LaunderingRead the Press Release
NEWARK, N.J. – A Somerset County, N.J., man pleaded guilty today to one count of securities fraud and one count of money laundering, admitting that he defrauded victims of an investment scheme by misusing their capital contributions and misrepresenting the performance of their investments, U.S. Attorney Paul J. Fishman announced.
David Connolly, 51, of Watchung, N.J., pleaded guilty to Counts One and Ten of a Superseding Indictment before U.S. District Judge William J. Martini in Newark federal court.
Connolly was originally charged by Indictment on May 16, 2012. On Jan. 23, 2013, the grand jury returned a 15-count Superseding Indictment charging Connolly with one count of securities fraud, six counts of mail fraud, two counts of wire fraud, and six counts of money laundering.
According to documents filed in this case and statements made in court:
From at least 2006 through October 2009, Connolly orchestrated a real estate investment fraud scheme in which he took in more than $50 million from more than 200 victims, causing losses of at least $9 million.
To induce victims to invest, Connolly made various types of materially false and misleading statements and omissions. He told victims their money would be used to purchase a specific property, and the property would generate rental income that would be used to pay investors monthly distributions. Connolly also told victims their money would be held in escrow until the closing of a purported real estate transaction and each property would be financially independent from all the others. Connolly misrepresented the amount of equity victims had in the properties, the condition of the properties, and the financial performance of the properties. Although the investment properties experienced significant negative cash flow, Connolly told investors they were performing well.
Connolly took significant portions of his victims’ money, which had been provided for specific real estate transactions, and used it for other purposes, without disclosing the diversions of funds to victims. These included funding unrelated real estate transactions in which Connolly was engaged; paying prior victims; and paying himself. The scheme collapsed in the summer of 2009, after Connolly began to default on the mortgage payments for the investment properties.
Connolly faces a maximum potential penalty of 20 years in prison and a $5 million fine on the securities fraud count and a maximum potential penalty of 10 years in prison and a $250,000 fine on the money laundering charges. He also agreed to forfeit $9.92 million as part of the plea agreement. Sentencing is scheduled for June 4, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, for the investigation leading to today’s indictment. He also thanked special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, for their important contributions to the investigation.
The government is represented by Assistant U.S. Attorney Charlton A. Rugg of the OCDETF Unit and Senior Litigation Counsel Leslie F. Schwartz of the Economic Crimes Unit.
If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.
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.
13-059
Defense counsel: Gerald M. Saluti Esq., Newark
Connolly Superseding Indictment
Mortgage Loan Officers Sentenced for $4.8 Million Mortgage FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court, two mortgage loan officers were sentenced for recruiting straw buyers to purchase properties at inflated prices and then distributing the excess loan funds among themselves, the straw buyers, and others involved in the scheme. United States District Court Judge Joan N. Ericksen sentenced Chad Arthur Anderson, age 39, and Troy Allen Huston, age 43, both of Chisago City, to federal prison terms of 60 months and 57 months, respectively, on one count of conspiracy to commit mortgage fraud through the use of interstate wires. They also were ordered to pay more than $4.8 million in restitution. The two were indicted on April 3, 2012, and pleaded guilty on August 13, 2012.
In their plea agreements, the defendants admitted that from 2006 through 2007, they recruited others, mainly relatives and friends, to act as straw buyers for the purchase of homes in the Twin Cities. At the time, the men worked as loan officers at Prestige Mortgage, a mortgage brokerage company in White Bear Lake, where they brokered numerous fraudulent mortgage loans by submitting false loan applications to prospective lenders. Anderson admitted to recruiting five straw buyers to purchase 17 homes during the course of the scheme, while Huston admitted to recruiting an unspecified number of buyers to purchase additional homes. The scheme involved a total of 32 homes in Minnesota. The properties involved are located in Otsego, Oak Grove, Elk River, St. Francis, Brooklyn Park, Isanti, St. Paul, Chisago City, Becker, Cambridge, Buffalo, Minneapolis, Zimmerman, and Albertville. All of the mortgage loans involved have gone into default, causing losses to the mortgage lenders that exceed $2.5 million.
At all times relevant to this case, Anderson and Huston were also involved in Lofton Property Management, a property management company in Chisago City. They used Lofton’s name on construction invoices and other statements to obtain loan proceeds for property management services never provided. In addition, they used Lofton’s name on property settlement statements, thereby receiving fraudulent mortgage loan proceeds, which they disbursed among themselves, the straw buyers, and others involved in the scam.
At the same time, Huston was involved in YES Financial, a property finance company in Chisago City. Through that company, he received additional illicitly acquired loan proceeds. Moreover, he prepared false loan applications on behalf of the straw buyers, often overstating their income, misrepresenting their employment, and failing to disclose their other mortgage obligations or the true source of their down payments.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.Minnesota Woman Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Paul, Minnesota woman has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Allison R. Konstanz, age 35, was indicted by a federal grand jury on January 8, 2013 for failing to pay over $39,428.00 in past due child support. She appeared before U.S. Magistrate Judge John E. Simko on February 4, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Konstanz is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case. Konstanz was released on bond pending trial. A trial date has not been set.
Minnesota Man Sentenced for Robbing A US BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 55-year-old man was sentenced for the January 2, 2012, robbery of a US Bank in Calhoun Square. United States District Court Judge Richard H. Kyle sentenced Thomas Scott Wright, unknown address, to 60 months in prison on one count of bank robbery. Wright was indicted on February 6, 2012, and pleaded guilty on April 27, 2012.
In his plea agreement, Wright admitted stealing approximately $1,700 from the bank. According to police reports, a man, later identified as Wright, walked into the bank, placed a paper bag on the counter and said, “Please just do it. I have a gun. It’s tough times and the holidays.” After receiving the cash, Wright walked out of the bank. He was arrested on January 3, 2012. The money was not recovered.
This case was the result of an investigation by the Minneapolis Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney David P. Steinkamp.Minnesota Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Marshall, Minnesota man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Larry T. Davis, age 37, was indicted by a federal grand jury on December 4, 2012 for failing to pay over $11,774.00 in past due child support. He appeared before U.S. Magistrate Judge John E. Simko on February 4, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Davis is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case. Davis was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Minneapolis Man Sentenced for Distributing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 51-year-old Minneapolis man was sentenced for distributing child pornography. United States District Court Judge Donovan W. Frank sentenced Robert Andrew Gozola to 240 months in federal prison and, following incarceration, supervised release for life. Gozola was indicted on May 8, 2012, and pleaded guilty on August 22, 2012, to one count of distribution of child pornography.
In his plea agreement, Gozola admitted that on November 23, 2011, he sent images of minors engaged in sexually explicit conduct to an undercover police officer over a peer-to-peer file-sharing program. In addition, Gozola admitted possessing more than 6,000 similar images on his computer, some of which included sadistic or masochistic content. The computer, on which Gozola had installed a peer-to-peer program, was seized during the execution of state search warrant at his residence on January 19, 2012.
This case was the result of an investigation by the Minnesota Cybercrime Task Force, which includes the Minneapolis Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.Distribution of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is presently funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Mingo County Man Sentenced to More Than 4 Years in Federal Prison for Oxycodone PossessionRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Mingo County man was sentenced to four years and two months in federal prison for oxycodone possession. Terry Kevin Steele, 42, of Mingo County, W.Va., previously pleaded guilty in May 2012 to possession with intent to distribute a quantity of oxycodone. On November 17, 2011, deputies with the Cabell County Sheriff’s Department responded to a robbery complaint at the Super 8 Motel in Huntington. At the time, deputies approached the defendant who subsequently consented to a search of his room which he had rented. Law enforcement seized a total of 1,379 oxycodone tablets in varying strengths as well as a .38 caliber revolver. Steele admitted that he possessed the oxycodone tablets and intended to sell the tablets to individuals in Mingo County.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
The Cabell County Sheriff’s Department and the Huntington Violent Crime and Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Chief Judge Robert C. Chambers.
Mason City Man Faced Federal Meth ChargesRead the Press Release
Michael Geraghty, age 41, from Mason City, Iowa, have each been charged with two counts of distribution of methamphetamine. The charges are contained in an Indictment unsealed on February 1, 2013, in United States District Court in Cedar Rapids, Iowa.
The Indictment alleges that in July 2012 was involved in distributing methamphetamine, having previously been convicted of a felony drug offense in May 2007 in Black Hawk County, Iowa.
If convicted on all charges, Geraghty faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,000,000 fine, $200 in special assessments, and 8 years up to life of supervised release following any imprisonment.
Geraghty appeared on February 1, 2013 in federal court in Cedar Rapids, Iowa. Geraghty was held without bond pending a detention hearing on February 6, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, and Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3002.
Marlys Young Running Crane Arraigned and Pleads Guilty U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls on February 4, 2013, before U.S. District Judge Sam E. Haddon, MARLYS YOUNG RUNNING CRANE, a 59-year-old resident of Browning, was arraigned and pled guilty to misprision of a felony. Sentencing is set for June 3, 2013.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
Beginning in November 2010, Louis Romero, Henry Lopez, and several other individuals facilitated the distribution of methamphetamine in Browning and Great Falls.
During this time, YOUNG RUNNING CRANE had full knowledge that several of the other individuals were all involved in illegal methamphetamine distribution. YOUNG RUNNING CRANE failed to notify any authorities of these illegal activities. In fact, when law enforcement questioned YOUNG RUNNING CRANE, she provided an untruthful statement that this drug activity was not occurring, which in effect, concealed the crime.
Romero and Lopez pled guilty to federal charges.
YOUNG RUNNING CRANE faces possible penalties of 3 years in prison, a $250,000 fine and 1 year supervised release.
The investigation was conducted by the Montana Violent Crimes Task Force.
Maplewood Felon Pleads Guilty to Possessing .32-caliber RevolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 35-year-old felon from Maplewood pleaded guilty to possessing a loaded .32-caliber revolver. Derek Lee Preston pleaded guilty to one count of being a felon in possession of a firearm. Preston, who was indicted on April 12, 2011, entered his plea before United States District Court Judge Donovan W. Frank.
In his plea agreement, Preston admitted that on January 25, 2011, he possessed the weapon while a passenger in a vehicle that was stopped by Minneapolis Police. Preston was asked to exit the vehicle, and officers found the weapon while searching him. In addition, officers found recovered 7.5 grams of marijuana and nearly four grams of crack cocaine.
Because he is a felon, Preston is prohibited under federal law from possessing firearms or ammunition at any time. Preston’s prior Hennepin County convictions include unlawful possession of a pistol (1997), attempted first-degree aggravated robbery (1997), fifth-degree controlled substance crimes (1999 and 2009), a second-degree controlled substance crime (2001), terroristic threats (2005), violation of a no-contact order (2009), attempted violation of a no-contact order (2009), and domestic assault (2010). The U.S. contends that because at least three of these convictions constituted crimes of violence or serious drug offenses, Preston will be subject to the Armed Career Criminal Act in the current federal case. That act mandates a minimum of 15 years in prison for anyone convicted in federal court for being a felon in possession of a firearm or ammunition if they have three or more prior violent crime or serious drug convictions. Judge Frank will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Minneapolis Police Department, and the
Violent Crime Impact Team for the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Surya Saxena and Andrew Dunne.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.Man Sentenced to 30 Months in Federal PrisonIn Salina Drug Trafficking CaseRead the Press Release
TOPEKA, KAN. – A Salina man was sentenced Monday to 30 months in federal prison in a drug trafficking case, U.S. Attorney Barry Grissom said.
Jon Reed Woodbridge, 23, Salina, Kan., pleaded guilty to one count of using a telephone with texting capabilities in furtherance of drug trafficking. In his plea, Woodbridge admitted that on Feb. 7, 2013, he used telephone texting technology to facilitate trafficking in marijuana.
Co-defendants are: Delaine Rae Romeo, who was sentenced to 41 months in federal prison.
Grissom commended the 1-70/I-35 Drug Task Force, the Salina Police Department and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Abigail Torres Soto, who is set for sentencing March 3, 2014.Man Sentenced for Distributing Meth in Orofino AreaRead the Press Release
COEUR D'ALENE – Jacob Custodio, 31, of Apple Valley, California, was sentenced today in federal court in Coeur d’Alene to 48 months in prison for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Custodio to serve four years of supervised release following his prison term and perform 120 hours of community service. He pleaded guilty to the charge on July 16, 2012.
According to court testimony, Custodio admitted that on December 22, 2011, he provided what he knew to be methamphetamine to co-defendant John Gilbert Rincon, in Orofino, Idaho.
On January 18, 2012, a federal grand jury in Coeur d'Alene indicted Custodio and three co-defendants for conspiracy to distribute methamphetamine and distributing methamphetamine. Two defendants, April L. Lauby and Robin L. Spencer, both of Orofino, pleaded guilty to conspiracy to distribute methamphetamine and were sentenced last year to serve federal prison sentences. Lauby was sentenced on July 17, 2012, to 12 months plus one day in prison; Spencer was sentenced on September 10, 2012, to 24 months. According to court testimony, Lauby admitted that she assisted in the distribution of methamphetamine by driving individuals to drug transactions and being present during the transactions. Spencer admitted that she used her house as a stash house and helped to distribute methamphetamine.
Co-defendant John Gilbert Rincon, 41, of Orofino, pleaded guilty on December 4 to conspiracy to distribute 50 grams or more of methamphetamine. Sentencing is set for March 4 at the federal courthouse in Coeur d’Alene. He faces a minimum sentence of five years in prison, a maximum fine of $5 million, and at least four years of supervised release.
The case was investigated by the Clearwater County Sheriff's Office, Idaho State Police, and Federal Bureau of Investigation.
Luzerne County Man Sentenced to 12 Years in Prison for AttemptingRead the Press Release
To Produce Child Pornography
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Forty Fort resident was sentenced today to serve 12 years in federal prison by Senior U.S. District Court Judge Edwin M. Kosik for to attempting to produce child pornography.
According to United States Attorney Peter J. Smith, Joshua Campbell, was previously indicted by a federal grand jury in Kansas in June 2012 for persuading a 12-year-old female to take sexually explicit photographs of herself and transmit them to the defendant via computer. This activity occurred during 2008 and 2009.
The charge against Campbell resulted from an investigation by special agents and task force officers of the Federal Bureau of Investigation in Kansas and Scranton, and detectives from the Lackawanna County District Attorney’s Office. The indictment against Campbell originated in Kansas and was later transferred to the Middle District of Pennsylvania for prosecution. Campbell subsequently pleaded guilty to attempting to produce child pornography.
Judge Kosik also ordered that Campbell be placed on supervised release for life following his prison sentence and pay a fine of $500. Campbell must also receive sex offender treatment and comply with sex offender registration and notification requirements.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Littleton Man Sentenced for Shredding Documents in an Attempt to Obstruct Mortgage Fraud InvestigationRead the Press Release
DENVER – Justin H. Knight, age 36, of Littleton, Colorado, was sentenced last Friday by U.S. District Court Judge Robert E. Blackburn to serve five years probation, with the first 12 months in home detention for shredding documents in an attempt to obstruct an investigation into a mortgage fraud scheme, U.S. Attorney John Walsh, FBI Denver Special Agent in Charge James Yacone, IRS – Criminal Investigation Special Agent in Charge Stephen Boyd, and U.S. Postal Inspector in Charge Adam Behnen announced. Judge Blackburn ordered Knight to pay a $100 special assessment as well as the cost of the electronic monitoring.
Knight was charged by an Information on November 14, 2011. He pled guilty to destruction of records on February 10, 2012. He was sentenced on February 1, 2013. As part of the larger mortgage fraud scheme, Peter V. Capra, Demetrious G. Gianopoulos and Brian Waring were charged in three separate indictments.
Gianopoulos pled guilty to one count of money laundering on May 10, 2011 and was sentenced to serve 5 years probation. Warning pled guilty to one count of conspiracy to commit mail fraud, wire fraud, and money laundering and is expected to be sentenced later this year. Capra was indicted on April 25, 2012, which was then followed by a superseding indictment on May 23, 2012 for obstruction of justice, mail fraud, wire fraud and money laundering. The Capra case is currently scheduled for trial on September 23, 2013 in front of Judge R. Brooke Jackson.
According to court documents, between on or about January 1, 2005, and continuing through on or about July 31, 2008, in the State and District of Colorado and elsewhere, Capra and others knowingly executed and attempted to execute a scheme to defraud various mortgage lenders. The scheme was executed in connection with applications for residential mortgage loans and related documents associated with real estate purchases including but not limited to properties in Parker, Colorado.
Capra was the president of Golden Design Group, Inc. (GDG), a company which built and sold houses in the Denver metropolitan area. It was a part of the scheme to structure transactions involving GDG homes to allow buyers to receive substantial amounts of the lenders’ money at the time of closing without the knowledge of the lenders. The scheme also allowed GDG to sell a large volume of homes to otherwise unwilling or unqualified buyers. The perpetrators of the scheme would arrange for the buyers to submit applications for first and second mortgages to support their purchases of GDG homes. Many of the buyers bought multiple properties at or near the same time.
Loan applications for the buyers were submitted through several different mortgage brokers, which included false information submitted in connection with the applications, including materially false and fraudulent representations about the buyers’ income, liabilities, source of down payment, and intent to occupy the properties as their primary residences. Applications for different properties were also submitted to different lenders to prevent the lenders from discovering the extent of the buyers’ real estate liabilities. Furthermore, at closing or soon thereafter, funds were distributed to the buyers in ways that prevented the lenders from discovering that these funds were actually going to the buyers.
In the Knight case mentioned above, on April 10, 2007, a grand jury subpoena was served on defendant Knight's employer at the time, GDG. After a meeting with Capra, Knight and another employee of GDG began shredding documents responsive to the subpoena allegedly based on instructions received from Capra. The shredding was accomplished using a new, high-volume shredder purchased by Capra for this task. Documents that were shredded included sales contracts between GDG and various other people involved in the mortgage fraud scheme.
“Targets of an investigation may think that obstructing a federal investigation by shredding subpoenaed documents will protect them from prosecution. As this case demonstrates, the exact opposite is true,” said U.S. Attorney John Walsh.
“The FBI will continue to work with our federal partners to pursue those who defraud financial institutions and also those who attempt to obstruct justice by destroying critical evidence,” said FBI Denver Special Agent in Charge James Yacone.
“We are very appreciative of the working relationship between our agency, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation, as it was instrumental in bringing these subjects to justice in such a complex investigation,” said U.S. Postal Inspector in Charge Adam Behnen.
“IRS – Criminal Investigation stands ready to partner with law enforcement agencies to pursue individuals who commit Mortgage Fraud," said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
This case was investigated by IRS – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Matthew Kirsch.
If convicted, Capra faces not more than 10 years in federal prison, and up to a $250,000 fine for obstruction of justice. He faces not more 20 years in federal prison, and up to a $250,000 fine, or two times the gain or loss from the offense, for each of the 14 counts of wire fraud and for each of the 2 counts of mail fraud. Capra faces not more than 10 years in federal prison, and up to a $250,000 fine, or the value of the property involved in the transaction, or both, for each of the 10 counts of money laundering.
The charges against Peter Capra are allegations, and he is presumed innocent unless and until proven guilty.
####
Little Eagle Man Arraigned on Sexual Abuse ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota man has been indicted by a federal grand jury for Aggravated Sexual Abuse by Force and Attempted Aggravated Sexual Abuse by Force.
Ronnie Fire Cloud, age 37, was indicted by a federal grand jury on December 11, 2012. He appeared before U.S. Magistrate Judge William D. Gerdes on January 31, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction on each count is any term of years or life imprisonment, a $250,000 fine or both, and a mandatory minimum term of 5 years up to life of supervised release. The charge is merely an accusation and Fire Cloud is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy Morley is prosecuting the case. Fire Cloud was released on bond pending trial. A trial date has not yet been set.
Leader of Inland Empire-Based Drug Traffickin Organization Ssentenced to 168 MonthsRead the Press Release
RIVERSIDE, California – The leader of a drug trafficking organization based in the Inland Empire was sentenced today to 168 months of imprisonment by United States District Judge Virginia A. Phillips.
Salvador Gonzalez-Chavez, 32, Fontana, was convicted last September of conspiracy to distribute, and possess with intent to distribute, heroin.
According to the sentencing memorandum filed by prosecutors, Gonzalez-Chavez was the leader of a drug trafficking organization involving at least 19 other co-conspirators, and his organization imported primarily heroin, as well as cocaine, from Mexico and distributed it to residents in the Inland Empire.
In 2011, local and federal authorities began investigating the organization after the City of Redlands and surrounding communities experienced a dramatic increase in heroin overdoses and other heroin-related incidents.
During the sentencing, government lawyers argued that the extreme dangers and addictiveness of heroin were best illustrated by an intercepted phone call that occurred on August 31, 2011 between a prospective buyer and a co-conspirator working for Gonzalez-Chavez's drug-trafficking organization. The prospective buyer tried to gain the co-conspirator's trust so that the co-conspirator would sell heroin to the buyer. To achieve this, the prospective buyer told the co-conspirator that the buyer was a friend of a certain individual -- an individual whom authorities knew had died of a heroin overdose on April 5, 2011 in Redlands at the buyer's house. At that point, the co-conspirator's concerns were alleviated, and the two agreed to meet up to conduct the heroin transaction.
The case against Gonzalez-Chavez is the result of an investigation by the Drug Enforcement Administration, with substantial assistance from the Redlands Police Department.Release No. 13-019
Latrobe Man Sentenced to Probation with Home Detention for Failing to File TaxesRead the Press Release
PITTSBURGH - A resident of Latrobe, Pa., pleaded guilty and was sentenced in federal court to five years probation and six months home detention on his conviction of willful failure to file tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Jeffrey Irwin.
According to the information presented to the court, Irwin failed to file federal tax returns for tax years 2007, 2008 and 2009. The court was advised that Irwin, along with an individual named Thomas Uhrin, earned income from an entity called Health Education Associates, which was formed following the creation of a now defunct medical school on St. Kitt's Island.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Irwin.
Kingston, N.H. Concrete Producer Agrees to Resolve Clean Water Act ViolationsRead the Press Release
BOSTON, MA – Torromeo Industries, Inc. will pay a $135,000 civil penalty and implement a compliance program to resolve numerous violations of the Clean Water Act (CWA) at its Kingston, N.H. sand, gravel and stone mining and ready-mix concrete plant. The settlement is pursuant to a consent decree lodged today in the United States District Court for the District of New Hampshire, between the company and the U.S. Government.
In addition to paying the $135,000 penalty, the company has agreed to implement a $500,000 Supplemental Environmental Project. The company will remove an impervious parking lot adjacent to Cobbett’s Pond, in Windham, N.H., and replace it with a 35,000 sq. foot pervious concrete parking lot. This project will result in a significant decrease in the amount of polluted storm water that drains into Cobbett’s Pond.
Under the terms of the federal consent decree, the company will implement storm water pollution control measures designed to reduce the impacts of storm water discharges into surface waters. In addition, the company will completely eliminate process waste water discharges from the site.
The complaint, filed in federal district court in Nov. 2010, alleged that the company violated the Clean Water Act by discharging stormwater and process water into wetlands and waterways, including the Little River, without the required authorization under a National Pollutant Discharge Elimination System permit.
In a parallel state settlement, the NHDES announced today that the company has agreed to pay a $700,000 civil penalty for the unpermitted filling of approximately 12.5 acres of wetlands and streams at its plant in Kingston, N.H. The state settlement requires the company to restore a significant area of filled wetlands and to preserve 69 acres of land on Bayberry Pond in Kingston. The federal and state enforcement actions arose from a joint inspection by the U.S. EPA and NHDES in 2009.
Process waste water discharges are strictly prohibited under the CWA, unless a company obtains a permit to allow for those discharges. Waste water from concrete plants typically contains high pH, oils, greases, and high levels or total suspended solids. When these solids settle they can form sediment deposits on the bottom of the water bodies that destroy the bottom fauna and the spawning grounds of fish. High pH waters from truck wash-out and wash-off from concrete manufacturing sites are highly corrosive. Rather than obtain individual discharge permits with stringent effluent limitations, most concrete manufacturing facilities contain, treat, and often recycle their process wastewaters onsite. As part of this settlement, Torromeo agreed to eliminate all off-site waste water discharges.“Stormwater runoff and process water discharges from the sand and gravel and ready-mix concrete industry are a significant source of water pollution,” said Curt Spalding, regional administrator of EPA’s New England office. “We consider the violations in this case to be extremely serious and we are glad that the company worked with EPA and the State to resolve these violations.”
United States Attorney John Kacavas credits the cooperative efforts of the EPA Region 1, the New Hampshire Department of Environmental Services, and Torromeo Industries in developing a workable plan. “The terms of the Consent Decree will protect New Hampshire’s natural resources from further degradation and deter others from engaging in irresponsible environmental impact practices.”
The settlement requires that the company conduct additional monitoring and reporting of storm water discharges, maintain a storm water pollution prevention plan, hire personnel certified in storm water management to oversee compliance at all both its Kingston, N.H. and Methuen, Mass. facilities where storm water permits are required, and provide training in storm water management for all operational employees.
The settlement is the latest in a series of federal enforcement actions to address storm water violations from industrial facilities and construction sites around the country.The consent decree, lodged in the U.S. District Court for New Hampshire, is subject to a 30-day public comment period commencing upon publication of notice of lodging of the consent decree in the federal register, and approval by the federal court. A copy of the consent decree will be available on the Department of Justice Web site at http://www.usdoj.gov/enrd/Consent_Decrees.html.
More Information: - EPA enforcement of Clean Water Act in New England https://www3.epa.gov/region1/sso/enforcement.html
- Storm Water Permits in New England http://epa.gov/region1/npdes/stormwater
Justice Department Sues to Shut Down Tax Preparersin Prince George’s County MarylandRead the Press Release
The United States filed two lawsuits to shut down three tax preparers in Prince George’s County, Md., the Justice Department announced today. The civil injunction complaints were filed in U.S. District Court in Greenbelt, Md. One suit names Tonya Hubbard and her Lanham, Md.-based tax preparation business, Universal Tax Service LLC, as defendants. The other suit was filed against Hubbard’s ex-husband, Marvin Binion Sr., and his son, Marvin Binion II. The complaint alleges that the son owns and operates Marvin Binion’s Universal Tax & Immigration Service in Hyattsville, Md.
The government complaints allege that the defendants prepare fraudulent tax returns for customers containing bogus deductions for items like charitable contributions, unreimbursed employee business expenses, and other miscellaneous expenses. According to the suit Binion Sr., pleaded guilty in 2007 to filing 13 false federal income tax returns and was later convicted of making false declarations to a federal court in connection with that criminal tax case. The suit alleges that Binion Sr. was released from prison in May 2012.
The lawsuits allege that Hubbard, Universal Tax Service LLC and the Binions violate federal law by not signing the returns they prepare for customers and by not placing IRS preparer tax identification numbers on the returns. All tax preparers are required to place an IRS-issued tax preparer identification number on every federal income tax return they prepare for a customer.
According to the complaints the defendants prepare customer returns using Turbo Tax software, place the returns in postage paid, pre-addressed envelopes and instruct customers to sign and mail the returns to the IRS on their own. The suits allege that defendants do this to hide from the IRS their role in preparing the returns.
The government alleges that Hubbard, Binion Sr. and Binion II generally charge customers a tax return preparation fee of $300 and that the Binions may have earned as much as $30,000 per day preparing fraudulent returns.
The Internal Revenue Service has listed tax preparer fraud as one of the “Dirty Dozen” tax scams . The Justice Department has obtained injunctions against hundreds of tax return preparers and tax-fraud promoters in the past ten years. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Marvin L. Binion Sr., etc.
Binion Complaint for Permanent Injunction (PDF)
Hubbard Complaint for Permanent Injunction (PDF)Justice Department Holds First National Indian Country Training on<br /> Investigation and Prosecution of Non-Fatal Strangulation OffensesRead the Press Release
The Department of Justice’s National Indian Country Training Initiative (NICTI) partnered with the National Strangulation Training Institute to deliver the first-ever national Indian Country training on the investigation and prosecution of non-fatal strangulation and suffocation offenses. The training, held from Jan. 29 – Feb. 1, 2013, drew attendance from over 50 federal and tribal participants, representing 17 tribes, U.S. Attorney’s Offices, the FBI and the Bureau of Indian Affairs. Students included prosecutors, law enforcement, advocates, paramedics and sexual assault nurse examiners.
The training, held at the National Advocacy Center in Columbia, S.C., provided an in-depth examination of the mechanics of strangulation and suffocation from a medical, legal and law enforcement perspective. In addition to substantive information on strangulation and suffocation, students received information on how to effectively train others in their community about the investigation and prosecution of strangulation crimes and how to serve as an expert witness on the issue in court.“Strangulation has been identified as one of the most lethal forms of domestic violence and sexual assault. Expert training in this area is critical as external signs of strangulation are absent in over half of all victims. Death can occur without any external marks at all,” said Leslie A. Hagen, National Indian Country Training Coordinator.
“If we can prevent even one homicide by early prosecution of an abuser when he strangles his partner and she survives, all our work will be worth it,” said Gael Strack, the Project Director of the National Strangulation Training Institute and CEO of the National Family Justice Center Alliance.“When men choke women, those men might as well be raising their right hand and saying ‘I am a killer’ to everyone that is paying attention,” said Casey Gwinn, President of the National Family Justice Center Alliance and faculty at this week’s training. “After 20 years of research and practice, it is clear that men who choke women are the same men who are likely to later kill those women, kill children, and kill police officers.”
Facts about strangulation:• Strangulation is more common than professionals have realized. Recent studies have now shown that 34 percent of abused pregnant women report being “choked” (Bullock, 2006); 47 percent of female domestic violence victims reported being “choked” (Block, 2000) and most experts believe the rate is higher given the minimization by victims and the lack of education.
• Victims of multiple strangulation “who had experienced more than one strangulation attack, on separate occasions, by the same abuser, reported neck and throat injuries, neurologic disorders and psychological disorders with increased frequency”. (Smith, 2001)
• Almost half of all domestic violence homicide victims had experienced at least one episode of non-fatal strangulation prior to a lethal violent incident (Glass, Sage, 2008). Victims of prior non-fatal strangulation are 800 percent more likely of later becoming a homicide victim. (Glass, et al, 2008).
• Strangulation is more serious than professionals have realized. Loss of consciousness can occur within 5 to 10 seconds and death within 4 to 5 minutes. (Watch, 2009; Hawley, McClane, 2001). The seriousness of the internal injuries may take a few hours to be appreciated and delayed death can occur days later. (Hawley, McClane, 2001).
• Because most strangulation victims do not have visible injuries, strangulation cases may be minimized or trivialized by law enforcement, medical and mental health professionals.
Jury Finds Three Fort Myers Area Men Guilty on Federal Bank Robbery ChargesRead the Press Release
Fort Myers, Florida - A federal jury found Michael James Harrell (33, Fort Myers), Matthew Rollins (27, Fort Myers), and Maurice Andre Colbert (28, Fort Myers) guilty of armed bank robbery, possession of a firearm during a crime of violence, attempted bank robbery, conspiracy to commit armed bank robbery and conspiracy to use firearms during a crime of violence in relation to a series of bank robberies, in Lee County, during the summer and fall of 2011. Harrell faces a mandatory minimum term of imprisonment of 57 years, up to life in federal prison. Both Rollins and Colbert face a mandatory minimum term of 32 years imprisonment, up to life and 7 years imprisonment, up to life, respectively. Sentencing hearings for all three individuals are scheduled for May 2013.
According to the evidence presented at trial, the three men and another co-conspirator conspired to rob area banks with firearms from June 6, 2011 to October 8, 2011. In addition to the conspiracy charges, the jury found Harrell and Rollins guilty of armed robbery and related weapons charges for Wells Fargo Bank and Preferred Community Bank in Lehigh Acres, in August 2011. Harrell and Colbert were also found guilty of the same offenses against Lee County Postal Employees Credit Union in June 2011. All three men were convicted of the attempted robbery of the Wells Fargo Bank in Bonita Springs, on September 14, 2011 and Capital Bank, in Fort Myers, on October 4, 2011. Harrell and Colbert were also convicted for the attempted robbery of Fifth Third Bank in Fort Myers, on October 7, 2011.
This case was the result of a cooperative investigative effort among federal, state, and local law enforcement agencies, including the Federal Bureau of Investigation, Lee County Sheriff's Office, Fort Myers Police Department, Florida Department of Law Enforcement, Charlotte County Sheriff's Office, Collier County Sheriff's Office, Cape Coral Police Department, Punta Gorda Police Department, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Jury Finds for United States Postal Service in Employment Discrimination CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that late on January 30, 2013, a federal jury in Scranton returned a unanimous verdict in favor of the United States Postal Service.
The matter captioned as Gary A. Savidge v. Patrick R. Donahoe, Postmaster General, was tried before the Honorable Robert D. Mariani. The jury deliberated for approximately one hour.
According to United States Attorney Peter J. Smith, Gary Savidge, of Shickshinny, PA, a retired mail processing clerk, brought this employment discrimination suit against the Postal Service, claiming that the Postal Service failed to select him for two custodial positions located in Wilkes-Barre, PA, because of his service-related disabilities. The Postal Service maintained that Mr. Savidge was not selected for the first custodial position because the employee selected for the position had an earlier request to transfer than Mr. Savidge. Additionally, the Postal Service maintained that Mr. Savidge was not selected for the second custodial position because he had unacceptable attendance.
After a three day trial, the jury returned a verdict that the Postal Service did not discriminate against Mr. Savidge.
The Postal Service was represented by Assistant United States Attorney Melissa A. Swauger.
****Jury Convicts Kingsville Man of Marijuana Trafficking via the Intercoastal WaterwayRead the Press Release
CORPUS CHRISTI, Texas - Michael "Mickey" Pena, 45, of Kingsville, has been found guilty of conspiracy to possess with the intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. The federal jury returned their verdict just moments ago in Corpus Christi after less than one day of trial and only 30 minutes of deliberation.
During trial, the government proved Pena participated in a drug trafficking organization that transported large amounts of marijuana concealed in the hulls of altered shallow-bottom fishing boats. The drugs were transported via the intra-coastal waterway from Port Mansfield to Corpus Christi in an effort to circumvent Border Patrol checkpoints in Falfurrias and Sarita. Testimony revealed that in early 2012, organization members deconstructed a 21-foot Dargel Scout fishing boat over the course of 20 days. They then loaded the hull of the vessel with more than 1,100 pounds of marijuana and rebuilt the deck of the boat. The boat was then launched in Port Mansfield and Co-defendant Rogelio Mendoza drove it north. Marine interdiction agents with Customs and Border Protection intercepted the vessel just south of Corpus Christi.
Subsequent investigation revealed that Pena, who arrived at marker 37 with an empty boat trailer shortly after the boat was intercepted, had registered the vessel in his name two weeks earlier. Certified state documents showed that the previous owner of both the boat and the empty trailer were members of the organization. Agents also testified that they had conducted surveillance of organization members scouting boat ramps near marker 37 about six weeks before the seizure and then immediately drove to Pena’s Kingsville residence.
Mendoza, 37, and five other members of the conspiracy have previously pleaded guilty before U.S. district judges in Corpus Christi and have been or are awaiting sentencing. Those include Alberto Lopez aka Alberto Lopez-Reyna, 39, Lombardo Zarate, 49, Glen Dial, 56, Luz Ramirez, 25, and Hector Perez-Gonzalez, 39.Senior U.S. District Judge Janis Graham Jack, who presided over the trial, has set sentencing for April 17, 2013, at which time he will face a minimum of five and up to 40 years in prison as well as a possible $5 million fine and a substantial money judgment. Pena is in custody where he will remain pending sentencing.
The case was investigated by Homeland Security Investigations with the assistance of the Kingsville Narcotics Task Force. The case was prosecuted by Assistant United States Attorney Jeffrey D. Preston.
Iowa Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
DES MOINES, IA - On February 1, 2013, Susan Lea Combs, a 51 year old resident of Pottawattamie County, Iowa, was sentenced to 120 months (ten years) imprisonment for conspiracy to distribute methamphetamine by United States Senior District Court Judge Ronald Longstaff. Judge Longstaff also imposed a period of five years of supervised release following her incarceration. Combs’ co-defendant, David Dwayne Mendez, a 52 year old resident of Polk County, Iowa, was sentenced by Judge Longstaff to a term of imprisonment of 108 months (nine years) for his role in the Conspiracy to Distribute Methamphetamine, as well as a four year period of supervised release. Combs and Mendez entered guilty pleas to conspiracy to distribute methamphetamine on September 6, 2012. At the time of their respective pleas of guilty, each admitted that they agreed to sell methamphetamine that was obtained from a source in South Omaha, Nebraska, to individuals in Iowa, particularly in the Council Bluffs and Des Moines areas.
The investigation was conducted by the Iowa State Patrol, Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Task Force, Mid-Iowa Narcotics Task Force, and the Polk County Attorney’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Iowa Resident Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On February 1, 2013, Michael James Vore, a 50 year old resident of Pottawattamie County, Iowa, was sentenced to 120 months (ten years) imprisonment for possession with intent to distribute methamphetamine by United States Senior District Court Judge Robert Pratt. Judge Pratt also imposed a period of eight years of supervised release following his incarceration.
In September of 2012,Vore was found guilty by a jury of possession with intent to distribute methamphetamine. The evidence at trial showed that the Iowa State Patrol was conducting an investigation into the possession and transportation of stolen commercial utility trailers in May of 2011. As part of their investigation, members with the Iowa State Patrol conducted a traffic stop on Vore as he was pulling a suspected stolen trailer behind his pick-up truck. While searching the pick-up truck that Vore was driving, troopers located approximately fifty grams of pure methamphetamine, along with a large stack of United States Currency, a digital scale and notes consistent with the sale of a controlled substance.
The investigation was conducted by the Iowa State Patrol, Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Task Force, Pottawattamie County Sheriff’s Office, and the Pottawattamie County Attorney’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Identity Thieves Sentenced for Taking over Bank AccountsRead the Press Release
Defendants Stole Over $1.4 Million from Victims’ Accounts
ATLANTA – A total of five defendants were sentenced today and last Thursday for using fake driver’s licenses to withdraw almost $1.5 million from victims’ bank accounts. The defendants were convicted of conspiracy, bank fraud, and aggravated identity theft after pleading guilty.
United States Attorney Sally Quillian Yates said, “The defendants tormented dozens of innocent victims who went to the bank only to discover that their accounts had been drained and identities stolen. The sentences imposed in this case appropriately reflect the severe damage done by identity thieves.”
“This case illustrates the negative impact that bank fraud and aggravated identity theft have on the citizens of the United States. The Secret Service will continue to aggressively pursue, with our federal, state, and local law enforcement partners, anyone that violates the trust that the public has in our economic system,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The defendants will now have plenty of time to contemplate the harm done by their aggressive criminal enterprise. The FBI will continue to work with its various law enforcement partners in protecting financial institutions and their account holders from the criminal activities of identity thieves.”
According to United States Attorney Yates, the charges and other information presented in court: From February 2010 through August 2011, Gafar O. Kosoko Balogun ran an identity theft scheme in Atlanta that targeted various banks, including Bank of America, Wells Fargo, SunTrust, and BB&T. Balogun first obtained individuals’ financial account information, typically over the Internet from public web sites. He went to credit reporting sites and guessed the answers to individuals’ security questions to gain access to their credit reports, and went to other sites to collect business information and tax identification numbers. Balogun would then call the bank and impersonate the true account holder to find out the account balance of the victim.
Balogun provided the account information to Donish Adkins, Orlon Hall, Christian Okafor, and Wayne Cunningham, who in turn recruited “runners” to go into the banks and withdraw money from the victims’ accounts. Balogun supplied fake driver’s licenses to the runners, which they used to impersonate the account holders while in the banks. In addition to recruiting co-conspirators, Cunningham also entered banks and made withdrawals from victims’ accounts. After paying the runners about $500 per transaction, the defendants shared the remainder of the criminal proceeds. The investigation has linked over $2.7 million in actual and attempted withdrawals from over 60 accounts to the scheme. The defendants succeeded in getting over $1.4 million from these accounts.
United States District Judge Thomas W. Thrash, Jr. sentenced Balogun, Adkins, Hall and Cunningham on Thursday, January 31, and sentenced Okafor today:
- Gafar O. Kosoko Balogun, 30, of Atlanta, Georgia, was sentenced to 6 years, 6 months in prison, to be followed by 3 years of supervised release, and ordered to pay $1,485,660.68 in restitution.
- Donish Adkins, 35, of Johns Creek, Georgia, was sentenced to 5 years, 3 months in prison, to be followed by 3 years of supervised release, and ordered to pay $527,293.31 in restitution.
- Orlon Hall, 32, of Alpharetta, Georgia, was sentenced to 5 years, 10 months in prison, to be followed by 3 years of supervised release, and ordered to pay $698,943.31 in restitution.
- Wayne Cunningham, 53, of College Park, Georgia, was sentenced to 7 years, 3 months in prison, to be followed by 3 years of supervised release, and ordered to pay $46,860 in restitution.
- Christian Okafor, 36, of Duluth, Georgia, was sentenced to 3 years, 10 months in prison, to be followed by 3 years of supervised release, and ordered to pay $97,030.99 in restitution.
This case was investigated by Special Agents of the United States Secret Service and Federal Bureau of Investigation.
Assistant United States Attorney Stephen H. McClain and former Assistant United States Attorney Nick Oldham prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Houston Man Pleads Guilty to Cocaine TraffickingRead the Press Release
PENSACOLA, FLORIDA – Gerard Germaine Jackson, 34, of Houston, TX, entered a guilty plea this morning in United States District Court to conspiring to supply up to fifty kilograms of cocaine for distribution in the Pensacola area. Jackson also admitted supplying more than 500 grams of cocaine to Pensacola distributors on April 21, 2010, which was charged in a second count. The guilty pleas on these counts were announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At his sentencing by Chief U.S. District Judge M. Casey Rodgers, Jackson will face a mandatory minimum sentence of twenty years up to a potential maximum of life in prison, $10,000,000 in fines, up to ten years of supervised release, and a $200 special monetary assessment. As part his guilty plea, Jackson agreed to the forfeiture of his interest in eighteen real properties located in Houston, Texas, a 2009 BMW, and the entry of a monetary judgment against him of $500,000.
The conviction comes as a result of a two year federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation that has, to date, resulted in 20 federal narcotics convictions, the seizure of multiple kilograms of cocaine, and the seizure and forfeiture of drug related assets that include real and personal property, currency, and the entry of money judgments against profits derived from drug transactions conducted in this district and elsewhere.
The case was investigated by the United States Drug Enforcement Administration (DEA), with assistance from the Internal Revenue Service – Criminal Investigation Division, and the Pensacola Police Department, Narcotics Section. This and the related cases were prosecuted Assistant U.S. Attorney Thomas Swaim.