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1 February 2013
Tallahassee Tax Preparer Indicted for Tax Fraud and Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Monique Shevette Kimble, 41, of Tallahassee, has been indicted for preparing false income tax returns, filing false claims against the government, and identity theft. The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
The 13-count indictment alleges that between February and April 2009, Kimble, the owner- operator of Speedie Tax Service in Tallahassee, prepared federal income tax returns seeking refunds based upon false claims for first-time home buyer and education tax credits. Kimble is also alleged to have used W-2 forms to file fraudulent claims for tax refunds, falsely reporting that two taxpayers had received income from a temporary employment agency where Kimble knew the taxpayers had never worked. The indictment charges that Kimble unlawfully used the name and social security number of one of these taxpayers in connection with the falsified W-2 return.
Kimble is scheduled for trial on April 1, 2013 before Judge Robert L. Hinkle in Tallahassee, Florida.
- If convicted, Kimble faces a maximum of five years in prison on each of the charged offenses.
- U.S. Attorney Marsh praised the work of the Internal Revenue Service, whose investigation led to the indictment in the case.
- The case is being prosecuted as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters.
The case is being prosecuted by Assistant U.S. Attorney Eric K. Mountin.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Social Networking Company to Pay $800,000 for Collecting Personal Information from MinorsRead the Press Release
The company that operates Path, an online social networking application, agreed to pay an $800,000 penalty to settle charges that it violated the Federal Trade Commission (FTC) Act and the Children’s Online Privacy Protection Rule, the Justice Department announced today.
In a complaint filed on Jan. 31, 2013, the United States alleged that San Francisco-based Path Inc. violated the Children’s Online Privacy Protection Rule by collecting personal information from children under the age of 13 without obtaining parental consent. According to the complaint, in over 3,000 instances, Path collected personal information from the address books in children’s mobile devices, including the names, addresses, phone numbers and email addresses of the child’s contacts. Path also collected personal information from children during the registration process and by allowing them to post content online.
“The rules established by the Children’s Online Privacy Protection Act play an important role in keeping kids safe online,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division. “Companies that market to children must respect their privacy by getting parental consent before collecting any personal information, and the Justice Department will work with the FTC to ensure that they do.”
According to the complaint, Path also violated the FTC Act by failing to disclose to consumers that it was automatically collecting information from users’ address books on their mobile devices. Path’s privacy policy and “Add Friends” feature led consumers to believe that this information would be collected only with the user’s consent.
Along with the civil penalty, Path agreed to an injunction barring future violations of the FTC Act and the Children’s Online Privacy Protection Rule. Path further agreed that it would delete all information previously collected from children under age 13, implement a comprehensive privacy program, and submit to regular assessments by an independent third party.
The FTC, which oversees the Children’s Online Privacy Protection Rule, referred the case to the Justice Department. The lawsuit, United States v. Path Inc., was filed in the Northern District of California.
Principal Deputy Assistant Attorney General Delery thanked the FTC for investigating this matter and referring it to the department. The Consumer Protection Branch of the Justice Department’s Civil Division brought the case on behalf of the United States.
Sentences Imposed in Two Mortgage Fraud ProsecutionsRead the Press Release
Syracuse, NY—United States Attorney Richard S. Hartunian and IRS Criminal Investigation Division Special Agent in Charge Toni Weirauch, announced the sentences imposed in United States District Court in Syracuse on Kevin M. O’Connell and Kevin D. O’Connell, two defendants in a long-term mortgage fraud investigation.
Kevin M. O’Connell, 35, and Kevin D. O’Connell, 62, both of Albany, NY were each sentenced to 24 months incarceration by Senior District Court Judge Norman A. Mordue. In addition, Kevin M. O’Connell was ordered to pay restitution in the amount of $2,275,584.88 and to pay a forfeiture judgment in the amount of $4,628.886.48. Kevin D. O’Connell, was ordered to pay restitution in the amount of $2,136,444.09.
Kevin M. O’Connell was a principal of PB Enterprises and employed his father, Kevin D. O’Connell to assist in a series of transactions that defrauded banks that were offering mortgages in the Albany area. The essence of the fraud was that PB Enterprises found inexpensive properties, usually rental properties that were for sale. They then recruited buyers to purchase the property at higher prices, with promises that the buyer would pay “no money down” and would instead receive a check at the closing. In dozens of transactions, PB Enterprises fraudulently obtained mortgages for those purchasers at the higher purchase price by providing false information to the lenders. PB Enterprises then arranged with closing agents to submit documents to the lenders that disguised the fact that the purchase prices were inflated and that the purchaser and the principals of PB Enterprises were splitting the excess mortgage money. The mortgage lender was falsely led to believe that the mortgage proceeds were necessary to purchase the property, and had not been diverted to pay the buyer and PB Enterprises. The restitution figures imposed by Judge Mordue represent the losses suffered by the lenders from this practice.
The principals of another such organization, Team Title, who were engaged in a similar scheme, pled guilty and were sentenced previously in Albany. Another principal of PB Enterprises, Michael Crowley, is scheduled to be sentenced on February 5, 2013, in Syracuse. A closing agent used by PB Enterprises and Team Title, attorney Michael G. Bouchard, was found guilty of conspiracy and bank fraud after trial in Syracuse in December. Mr. Bouchard and his two paralegals are scheduled to be sentenced in April.
This case is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division in Albany, NY. Further questions or inquiries may be directed to Assistant United States Attorney Michael Olmsted, the prosecutor handling the case, at (315) 448-0672.
Rocky Mount Tax Service Owner Agrees to Plead GuiltyRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court yesterday, charges were filed under a Criminal Information against TINA LURETHA TYREE JOHNSON, 45, of Rocky Mount, North Carolina. JOHNSON has entered into a plea agreement in which she will pled guilty to Tax Fraud and Aiding and Abetting in violation of Title 18, United States Code, Section 287 and 2. The case is to be scheduled before Chief United States District Judge James C. Dever
U.S. Attorney Walker stated, “Our tax system relys on the honesty of tax payers with a heightened duty of honesty expected from professional tax preparers. Whenever someone like JOHNSON deliberately files false returns, the U.S. Attorney’s Office in support of the IRS will pursue the matter through the Courts as provided by our laws.”
According to the Criminal Information filed on January 31, 2013, JOHNSON, beginning in or about January 2008 and continuing until on or about June 2008, did knowingly make and present, and caused to be made and presented, to the Internal Revenue Service claims against the United States for payment that were false by preparing federal income tax returns for individuals totaling approximately $40,867.00.
“A federal tax return is one of the most important financial documents that many individuals or families deal with in a given year and taxpayers need and deserve return preparers who are ethical, fully qualified and able to provide the best possible service,” stated Jeannine A. Hammett, Special Agent in Charge for IRS Criminal Investigation- Charlotte Field Office. “Taxpayers are cautioned to seek out a reputable return preparer with the proper credentials. The IRS is increasing its education and enforcement presence in the return preparer community this filing season in an effort to combat this type of fraud. Please don’t fall victim,” said Hammett.
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney J. Gaston B. Williams is handling the prosecution on behalf of the government.
Rockford Woman Sentenced to 30 Months in Federal Prison for the Robbery of Associated Bank in RockfordRead the Press Release
ROCKFORD C A Rockford, Ill. woman was sentenced today in federal court for bank robbery. LATOYA SHAUNTA BURROWS, 32, of Rockford, was sentenced to 30 months in federal prison by U.S. District Judge Frederick J. Kapala for the robbery of Associated Bank, 612 North Main St., Rockford, Ill., on March 20, 2012.
Burrows pled guilty to the charge on Oct. 29, 2012. According to the written plea agreement, Burrows entered Associated Bank through the west doors at about 10:57 a.m. on March 20, 2012, wearing pink pants and a black t-shirt. Burrows immediately approached the teller counter, by passing the roped off waiting line, and handed the teller a folded piece of paper, which read: APut the money in the bag and nobody will get hurt.@ The teller removed cash from the teller drawer, but told Burrows that he did not have a bag to put the money into. Burrows took the money from the teller=s hand, stuffed the cash into her bra, and walked out of the bank. Shortly after the robbery, Burrows was arrested by the Rockford Police Department in the vicinity of the bank. She has been held in federal custody since her arrest.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent in Charge of the Chicago Office of Federal Bureau of Investigation; and Chet Epperson, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Scott A. Verseman.
Ridgefield Woman Charged with Embezzling from Fairfield Housing AuthorityRead the Press Release
February 1, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging ELIZABETH JO GUTIERREZ, 47, of Ridgefield, with one count of theft concerning programs receiving federal funds. The indictment alleges that GUTIERREZ embezzled $30,000 from the Fairfield Housing Authority.
The indictment was returned on January 23, 2013, and GUTIERREZ appeared yesterday before United States Magistrate Judge Donna F. Martinez in Hartford, pleaded not guilty to the charge and was released on a $50,000 bond.
The Fairfield Housing Authority administers federal housing programs for the U.S. Department of Housing and Urban Development with the mission of providing affordable housing for eligible low-income families and the elderly. According to the indictment, GUTIERREZ served as the Executive Director of the Fairfield Housing Authority from approximately July 2010 to December 2011. In the summer of 2011, GUTIERREZ issued two checks, each in the amount of $15,000, from the Fairfield Housing Authority’s checking account and subsequently deposited them into her own checking account.
The charge of theft concerning programs receiving federal funds carries a maximum term of imprisonment of 10 years.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case has been assigned to United States District Judge Robert N. Chatigny in Hartford.
This matter is being investigated by the Department of Housing and Urban Development – Office of Inspector General. The case is being prosecuted by Special Assistant United States Attorney Sean Beaty.
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(203) 821-3722 [email protected]Registered Sex Offender Charged with Sexual ExploitationRead the Press Release
BOSTON – A Williamstown man who is a registered sex offender was charged today with sexually exploiting a 16-year-old boy.
Ronald Brown, 50, was charged in a complaint with sexual exploitation of children.
According to the complaint, Brown is a level 2 registered sex offender, based upon a 1995 Connecticut conviction for sexual assault of a 12-year-old boy. In December 2012, Brown met a 16-year-old male on a website, called silverdaddies.com. Brown engaged the boy in a long series of texts, chat sessions, and emails, many of which involved explicit sexual communications. On Jan. 8, 2013, Brown viewed the boy masturbating online via Skype and received a photograph of the boy displaying his penis.Brown also arranged for the boy to run away from home so that they could live together as romantic partners. Brown purchased a one-way airline ticket for the boy to fly from his home to Newark, NJ, sent $150 for traveling expenses, and instructed him to erase files on his computer. On Jan. 19, 2013, the boy ran away from his home and flew to Newark, where Brown met him. The two drove into New York where they engaged in sex, before continuing toward Massachusetts. Ultimately, Brown was stopped by the police, who had been alerted to the boy’s disappearance.
The maximum sentence under the statute is 50 years in prison, followed by a lifetime of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was investigated with the assistance of the Williamstown Police Department, the Massachusetts State Police and the New York State Police. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Realtor Sentenced to 30 Months for Mortgage FraudRead the Press Release
Oklahoma City, Oklahoma – SAFIYYAH TAHIR BATTLES, formerly a real estate agent with T&T Realty in Oklahoma City, has been sentenced to thirty months in prison for mortgage fraud and money laundering, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma
On June 21, 2012, a jury convicted Battles of using an interstate wire facility to defraud Saxon Mortgage and engaging in a monetary transaction with more than $10,000 from the proceeds of crime. The evidence at trial showed that in April of 2007, she used her sister’s mortgage brokerage company, Lending Leaders, to apply for a $500,000.00 loan from Saxon Mortgage of Fort Worth, Texas. Saxon required her to provide twelve months of bank statements to support her income and assets. The jury heard evidence that the bank statements had been altered by adding more than $100,000.00 to the ending balance on each statement, by deleting her husband’s name as an account holder, and by removing numerous overdraft fees.
At the closing on May 4, 2007, Battles signed a final loan application that stated falsely that she earned $344,677.92 per year and had $165,907.70 in her bank account. According to a tax return that she filed in March of 2009, Battles’s adjusted gross income for 2006 was $14,001.00; according to the records of First Security Bank, her actual account balance on May 4, 2007, was $852.50.
Based on the application information, a forged letter, and communications with the mortgage brokerage on the day of closing, Saxon Mortgage authorized $102,630.01 from the loan proceeds to be paid to a local builder. Battles took the $102,630.01 check at closing, deposited into her own bank account, and used it for her own purposes. The money-laundering count relates to a $15,000.00 check that Battles wrote to her mother, Trina Tahir, two days after she deposited the $102,630.01 check.
Today, United States District Judge Timothy D. DeGiusti sentenced Battles to thirty months in prison and ordered her to pay restitution of $326,902.34. She will be required to serve two years on supervised release after her prison term, including 104 hours of community service. The court also imposed a forfeiture judgment in the amount of $102,630.01. The sentence was based on the counts of conviction, as well as fraud that Battles perpetrated in connection with five other residential mortgages.
This sentence is the result of an investigation conducted by the IRS Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Chris M. Stephens.
Rapid City Women Charged with Concealing Person from Arrest and False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that two Rapid City women have been indicted by a federal grand jury for harboring a fugitive and lying to a federal law enforcement agent.
Tina LaDeaux, age 40, and Lori Brave, age 37, were indicted on January 23, 2013, for Concealing Person From Arrest and False Statement. LaDeaux and Brave appeared before U.S. Magistrate Judge Veronica L. Duffy on January 28, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years' imprisonment and/or a $250,000 fine. The charges are merely an accusation and LaDeaux and Brave are presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshals Service. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case. LaDeaux and Brave were released on bond pending trial. A trial date has not been set.
Provider of Home Health Care Services Pleads Guilty to $294,000 Medicaid FraudRead the Press Release
NORFOLK, Va. – Angie L. Gilchrist, 57, of Suffolk, Va., pleaded guilty today in Norfolk federal court to health care fraud.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Virginia Attorney General Ken Cuccinelli made the announcement after Gilchrist’s plea was accepted by United States District Senior Judge Henry C. Morgan, Jr.
Gilchrist faces a maximum penalty of 10 years in prison and a fine of $250,000 when she is sentenced on May 22, 2013.
According to a statement of facts filed with her plea agreement, Gilchrist owned and operated A-Z Alpha Omega In-Home Personal Care Service LLC, a business located in Suffolk that was authorized to provide respite care to Medicaid recipients. Respite care is designed to provide temporary, substitute care for a Medicaid recipient that is normally provided by the family or another unpaid primary caregiver of the recipient. These services are provided on a short-term basis because of the emergency absence or need for routine or periodic relief of the primary caregiver. Between October 2008 and October 2012, Gilchrist filed approximately 385 false and fraudulent claims with the Virginia Medicaid program, representing that respite care had been provided by her company to 38 Medicaid recipients, when in fact no such care had been provided. As a result, Gilchrist obtained health care benefit payments in the approximate amount of $294,713.00 to which she was not entitled.
This case was investigated by the FBI and the Office of the Virginia Attorney General, Medicaid Fraud Control Unit. Assistant United States Attorney Alan M. Salsbury is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pharmacist/pharmacy Owner Sentenced to 17 Years for Health Care Fraud, Drug OffensesRead the Press Release
A 50-year-old Canton pharmacist who owned and operated 26 pharmacies in the metro-Detroit area was sentenced today to 17 years in prison, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge, Federal Bureau of Investigation, Robert Corso, Special Agent in Charge, Drug Enforcement Administration and Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services.
U.S. District Judge Arthur J. Tarnow sentenced BABUBHAI "Bob" PATEL on 26 convictions for a health care fraud conspiracy, a drug conspiracy, and related fraud and drug violations.
Evidence presented at a six-week jury trial concluding in August 2012 showed between 2006 and 2011, the pharmacies billed Medicare and Medicaid more than $57 million. At least 25% of those billings were for drugs that were either medically unnecessary never dispensed. Additional amounts were fraudulently billed to private insurers such as Blue Cross Blue Shield of Michigan. The pharmacies operated on a business model that paid kickbacks to physicians in exchange for writing prescriptions for expensive medications. The affiliated doctors would also write prescriptions for controlled substances, without regard to medical necessity, which would be filled at the pharmacies and distributed to paid "patients" and patient recruiters. The expensive non-controlled medications would be billed but not dispensed.
In sentencing the defendant, the court told the defendant that "what you have done is reprehensible." The criminal conduct engaged in by other health care fraud violators sentenced by the court was "small scale compared to this."“Taxpayers fund Medicare and Medicaid to provide health care to needy Americans,” McQuade said. “It is gratifying to see courts impose strong sentences on defendants who exploit these programs for personal gain.”
FBI Special Agent in Charge Foley stated, "Those individuals who engaged in this health care fraud scheme stole millions of dollars over several years, from a system designed to provide health care to those in need. The FBI is committed to stopping these illegal acts and prosecuting these criminals."
"The conduct that occurred in this case was deplorable, inexcusable and dangerous" said Lamont Pugh III, Special Agent in Charge of the Chicago Region of the U.S. Department of Health & Human Services, Office of Inspector General. "The OIG will continue to work with our law enforcement partners to combat prescription drug fraud in the Medicare and Medicaid programs and seek to ensure the safety of program beneficiaries and taxpayer dollars."
Of the 26 defendants charged in the original indictment in this case, 20 defendants have either pleaded guilty or been convicted at trial. Six defendants are scheduled for trial in June. Out of 12 pharmacists charged, 11 have been convicted at trial or pleaded guilty, with one waiting to be tried. Out of four doctors charged, two have pleaded guilty, with two waiting to be tried.
Earlier this week, Judge Tarnow sentenced several of the other pharmacists who were convicted at trial. BRIJESH RAWAL, 36, of Canton; ASHWINI SHARMA, 34, of Novi; and LOKESH TAYAL, 36, of Northville, were each sentenced to terms of imprisonment of 68 months for their participation as pharmacists in these criminal offenses. These three pharmacists were non-U.S. citizens who entered the United States under a visa program for certain skilled workers, and each will be deported to the country of their citizenship upon the completion of their sentences. Defendant RAWAL is a citizen of Canada, while defendants SHARMA and TAYAL are citizens of India.
In addition to the prison sentence, defendant BABUBHAI PATEL was ordered to pay restitution to the Medicaid and Medicare programs in the amount of $17.3 million, and restitution to Blue Cross Blue Shield in the amount of $1.5 million. Defendant PATEL, who has been held without bond since his arrest on August 2, 2011, will receive credit toward his sentence for the time he has served.
U.S. Attorney McQuade thanked the Drug Enforcement Administration, the FBI, the Department of Human Services, Office of Inspector General, and Blue Cross and Blue Shield of Michigan for their tireless work in the investigation and prosecution of the case. The case is being prosecuted by Assistant United States Attorneys John K. Neal and Wayne F. Pratt.Pennsylvania Man Sentenced to 10 Years in Prison for Receipt of Child PornographyRead the Press Release
Took Videos of Boys in Public Restrooms in Maryland Without Their KnowledgeBaltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Brian Matthew Williams, age 28, of West Chester, Pennsylvania, today to 10 years in prison followed by 50 years of supervised release for receipt of child pornography.
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; Cecil County State’s Attorney Edward D. E. Rollins, III; Harford County State’s Attorney Joseph I. Cassilly; and United States Attorney for the Eastern District of Pennsylvania Zane D. Memeger.
“This defendant egregiously violated the privacy of young boys by secretly recording them in public restrooms, a crime that gives every parent nightmares,” said U.S. Attorney Rod J. Rosenstein. “I am grateful to the vigilant citizen who noticed the unusual behavior and immediately called 9-1-1, and to the police and prosecutors who conducted an urgent investigation.”
According to his plea agreement, on May 6, 2012, Williams spent nearly five hours at the Maryland House and Chesapeake House rest stops on I-95, walking in and out of the men’s restrooms filming several minor males, most of whom were prepubescent, as they used the urinals. Williams positioned himself at an adjacent urinal and used his cell phone to create 21 videos. Williams would then leave the restroom and capture full length images of the young boys as they walked out, including their faces. After the parents of one of the victims reported Williams’ suspicious behavior to Maryland State Police, he was arrested, charged in Cecil County and released on bond the same day.
On June 13, 2012, a search warrant was executed at Williams’ residence and computers and other digital media were seized. A number of hard drives appeared to have been removed, and the operating system on the remaining hard drive had been reinstalled on May 28, 2012.
A subsequent background investigation of Williams revealed that he had been questioned by law enforcement on two previous occasions under similar circumstances. In 2007, law enforcement contacted Williams after they received several complaints that he had followed minors into the restroom at a college basketball game. In June 2010, Williams was questioned and released after an off-duty police officer saw him in the restroom of a movie theater pointing his cell phone at the genitals of young boys using the urinals.
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.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police, Cecil County State’s Attorney’s Office, Harford County State’s Attorney’s Office and the U.S. Attorney’s Office for the Eastern District of Pennsylvania for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Paralegal Charged in Scheme to Defraud Bay Area Law Firm and Its ClientsRead the Press Release
OAKLAND, Calif. – Ana Lissa Reyes, of San Lorenzo, Calif., was arraigned yesterday on an information charging her with multiple counts of mail fraud and tax evasion, United States Attorney Melinda Haag and IRS Criminal Investigation Special Agent in Charge Jose M. Martinez announced.
According to the information, Reyes is alleged to have worked as a secretary, office manager and paralegal for a Bay Area personal injury law firm. From about 2006 through June 2011, Reyes, without authorization, settled claims without the knowledge of the law firm or its clients and stole the settlement proceeds. It is also alleged that Reyes engaged clients without the law firm’s knowledge and stole client retainer fee payments. To carry out the scheme to defraud, Reyes created a bogus company to correspond with clients without the law firm’s knowledge and to defraud the clients into believing their cases were ongoing.
Reyes is also charged with willfully attempting to defeat a large part of the income tax due and owing for the calendar years 2006, 2007, 2008, 2009, 2010 and 2011. It is alleged that, for each of those tax years, Reyes knew her joint taxable income was substantially in excess of the amount stated on the returns, and, upon the additional taxable income, a substantial additional tax was due and owing to the United States.
Reyes made her initial appearance in federal court in Oakland yesterday and is currently out on bond. She is next scheduled to appear in federal court in Oakland at 2 p.m. on Feb. 28, 2013, for a status hearing before Judge Yvonne Gonzalez Rogers.
The maximum statutory penalty for each count of mail fraud in violation of 18 U.S.C. § 1341 is 20 years in prison and a fine of $250,000. The maximum statutory penalty for each count of tax evasion in violation of 26 U.S.C. § 7201 is six years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
AUSA Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of a year-long investigation by the Federal Bureau of Investigation and IRS, Criminal Investigation.
Please note, an information contains only allegations against an individual and, as with all defendants, Reyes must be presumed innocent unless and until proven guilty.
(Reyes Information )
Palmer County, Texas, Man Sentenced to 57 Months in Federal Prison for Committing Armed Robbery of Friona Federal Credit UnionRead the Press Release
AMARILLO, Texas — John Michael Garibay, 22, of Friona, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 57 months in federal prison and ordered to pay $6,541 in restitution for committing the August 27, 2012, armed robbery of the Friona Federal Credit Union, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, at approximately 12:06 p.m. that Monday, a man wearing a gas mask, who was later identified as Garibay, entered the Credit Union, walked to a teller and demanded money. He then pulled a handgun out of his waistband and showed it to the teller. The teller gave Garibay cash, and he left the bank and headed down an alley, spilling some of the cash. He left the scene in a gray Dodge Charger.
Shortly thereafter, law enforcement located Garibay at a residence in a trailer park, where they had observed the gray vehicle. During a search of the residence, officers found items used in the robbery including matching clothing, a black Nike single strap backpack, with a five dollar bill inside the bag, and a bank money strap with “Teller 33" stamped on it. Law enforcement located a .45 caliber plastic case and .45 and .38 caliber handgun rounds in the trash can in the kitchen. Garaby identified an area two spaces down from his trailer where law enforcement located a black .45 caliber semi-automatic Taurus handgun.
As law enforcement transported Garibay to the Randall County Jail, he asked how much time he would get and said, “I made the case for you by telling you where the gun was.”
The case was investigated by the FBI, the Friona Police Department and the Palmer County Sheriff’s Office. Assistant U.S. Attorney Christy Drake of the U.S. Attorney’s Office in Amarillo, Texas, was in charge of the prosecution.
Oxon Hill Man Sentenced to 5 Years in Prison for Receipt of Child PornographyRead the Press Release
Stole the Identities of Doctors Who Applied for Fellowships at Johns Hopkins Hospital Where His Girlfriend WorkedGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Raymond Talley III, age 34, of Oxon Hill, Maryland, today to five years in prison, followed by six years of supervised release, for receipt of child pornography. Chief Judge Chasanow ordered that upon his release from prison, Talley 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 and Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation - Washington Field Office.
According to the plea agreement, on three occasions in August and September 2011, undercover law enforcement agents downloaded child pornography from files that Talley was sharing over the internet using a file sharing program. On October 7, 2011, two laptops, both with file sharing programs installed, were seized during a search of Talley’s home. Over 1,700 videos of children engaged in sexually explicit conduct had been downloaded and saved onto the laptops.
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.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, who prosecuted the case.
Opa-Locka Police Captain Sentenced as Part of Drug Trafficking OrganizationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), J.D. Patterson, Acting Director, Miami-Dade Police Department (MDPD), and Addy M. Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), announce that Arthur Balom, 44, of Miramar, a Captain with the City of Opa-Locka Police Department, was sentenced yesterday by U.S. District Judge Joan A. Lenard to 87 months imprisonment for his participation in the distribution of cocaine, ecstasy and oxycodone in Opa-Locka in violation of Title 21, United States Code, Section 846.
According to statements made in court during the change of plea and at the sentencing hearing, and those contained in court filings, Balom was part of a drug trafficking organization operating out of an Opa-Locka apartment complex known as “The Back Blues.” More specifically, according to in court statements, while Balom was a Captain in the Opa-Locka Police Department (OLPD), Balom aided and abetted in the distribution of drugs by the organization by: (1) providing the organization with information related to police activity in the area; (2) directing officers to leave the area; and (3) assisting members of the organization when they came into contact with law enforcement.
In one instance, discussed in court and in the pleadings, FBI agents provided Balom with a notebook containing photographs of various suspects related to an armed robbery. The FBI agents asked Balom about a suspected co-conspirator. The day after speaking with FBI agents about the suspect, Balom met with that very suspect and showed him the notebook provided by the FBI. In another instance, Balom provided ballistic vests to members of the drug organization.
Mr. Ferrer commended the FBI, ATF, the MDPD, and FDLE for their efforts in the investigation of this case. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb.
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.
Nicaraguan National Sentenced on Drug Trafficking ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Miami Field Division, announce the conviction and sentencing of Franklin William McField-Bent, a/k/a “Buda.” McField-Bent, 55, a Nicaraguan national, was sentenced yesterday by U.S. District Judge K. Michael Moore to a 235-month term of incarceration on drug trafficking conspiracy charges in violation of Title 21, United States Code, Section 963, and a 180-month term of incarceration for his participation in a conspiracy to provide weapons to a designated terrorist organization in violation of Title 18, United States Code, Section 2339B. The 180-month term of incarceration –the highest possible sentence allowable under the statute – was ordered to run concurrent to the 235-month term of incarceration. McField-Bent had previously agreed to plead guilty on November 8, 2012.
McField-Bent conceded in a factual proffer that, during the time of the charged conspiracy, he had had numerous meetings and phone calls with Colombian law enforcement officers who, posing as members of a foreign terrorist organization, sought to obtain weapons that they intended to use to launch attacks on the Colombian government. McField-Bent arranged for the March 2010 sale of six grenade launchers, 20 grenades, an Uzi submachine gun and 100 rounds to the Colombian law enforcement officers. McField-Bent also admitted to participating in the shipment of three multi-hundred kilogram loads of cocaine to Central America knowing that the cocaine would be unlawfully imported into the United States.
U.S. Attorney Wifredo A. Ferrer stated, “International drug traffickers, like this defendant, continue to pose a direct and immediate threat to our national security. Through proactive efforts and dedicated resources of our office, together with considerable international and domestic cooperation, we will continue to combat those who threaten the welfare of our citizens.”
DEA Special Agent in Charge Mark R. Trouville stated, “The sentence of Nicaraguan National William McField-Bent highlights the DEA’s commitment to target the highest level of drug traffickers regardless of their nationality. There is no danger greater than the marriage of drug trafficking and terrorism.”
“The arrest, conviction and subsequent sentencing of McField-Bent is an important accomplishment for the U.S. Government and its international partners due to the magnitude of his criminal violations and threat to the homeland,” said Alysa D. Erichs, Special Agent in Charge of ICE-HSI in Miami. “We will continue to work shoulder to shoulder with our domestic and international law enforcement partners to identify and dismantle drug and weapons trafficking organizations.”
The extradition of McField-Bent is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) led by DEA and HSI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commends the outstanding investigative efforts of DEA and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Adam Fels.
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.
Nampa Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
BOISE – Jesus Manuel Zuniga, 28, of Nampa, Idaho, pleaded guilty yesterday in United States District Court to an information charging him with one count of unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on October 30, 2012, a Nampa Police officer initiated a traffic stop on a vehicle pursuant to a warrant for Zuniga’s arrest for violating his federal supervised release. After the vehicle stopped, Zuniga, who was a passenger in the vehicle, attempted to elude two Deputy U.S. Marshals. He was apprehended and arrested in possession of a firearm, later identified as a Phoenix Arms .22 semi-automatic pistol. Because Zuniga had previously been convicted in 2010 of unlawful possession of a firearm, a federal offense punishable by a term of imprisonment exceeding one year, he is prohibited from possessing firearms.
The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and at least three years of supervised release.
Sentencing is set for April 10, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Nampa Police Department, and the U.S. Marshals Service.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Muscatine Man Sentenced for Drug and Gun OffensesRead the Press Release
DAVENPORT, IA – On January 31, 2013, Robert Leslie Ranck, age 46, was sentenced to 130 months imprisonment, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Ranck to three years supervised release following imprisonment, ordered him to pay a $200 special assessment to the crime victim fund, and ordered him to forfeit all firearms and ammunition involved in the offense.
On April 7, 2012, Ranck was stopped by the Burlington, Iowa, police for a traffic violation. Police discovered that Ranck, a multi-time convicted felon, was in possession of a high-capacity, semi-automatic 9mm pistol. Ranck had just received the pistol from Justin Adams, who purchased the pistol for Ranck at a Burlington gun shop. Ranck, after being arrested and booked by police, was released on bond.
On April 18, 2012, Ranck again was arrested in Scott County, Iowa, while making a delivery of six pounds of marijuana to a police informant. Police searched Ranck’s residence in Muscatine, Iowa, finding additional marijuana packaged for sale, growing marijuana plants, several firearms, and ammunition.
Ranck was indicted in United States District Court for possessing firearms and ammunition as a felon and possessing marijuana with intent to distribute, and Adams was separately indicted for making false statements in connection with the purchase of a firearm. Ranck and Adams both entered guilty pleas, and Adams’ sentencing is still pending.
This case was investigated by the Burlington, Iowa, Police Department, the Davenport, Iowa, Police Department, the Muscatine Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa
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Mobridge Woman Pleads Guilty to Charge of Escape from CustodyRead the Press Release
United States Attorney Brendan V. Johnson announced that Camille Touche, age 27, of Mobridge, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on January 28, 2013, and pled guilty to a charge of Escape from Custody. The maximum penalty upon conviction is 5 years' imprisonment and/or $250,000 fine.
In December 2012, Touche left Community Alternatives of the Black Hills without permission, where she was serving the remainder of a federal sentence. The investigation was conducted by the United States Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date was set for June 7, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Maypearl Podiatrist Sentenced for Health Care/Tax FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas — A 46-year-old Maypearl, Texas podiatrist has been sentenced to federal prison for health care and income tax fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shannon Gallentine pleaded guilty on May 10, 2012, to one count of health care fraud and one count of failing to file an income tax return and was sentenced to 24 months in federal prison on Jan. 31, 2013, by U.S. District Judge Thad Heartfield. Gallentine was also ordered to pay health care fraud restitution of $391,628.08 and $407,942.47 to the Internal Revenue Service. Of the restitution, $254,377.41 will be paid to Medicare, $110,622.59 to Medicaid, and $26,628.08 to Blue Cross Blue Shield.
According to information presented in court, from January 2004 through May 2007, Gallentine, a podiatrist, owned and operated Ambulatory Foot Care in Lancaster, Texas. During this time, Gallentine submitted false and fraudulent claims to Medicare seeking reimbursement for procedures which he did not perform. As a result of these false claims, Gallentine received in excess of $365,000.00 to which he was not entitled. Additionally, Gallentine willfully failed to file federal income tax returns for calendar years 2004 and 2005. Gallentine was indicted by a federal grand jury on Mar. 9, 2011, and charged with federal violations.
Gallentine will report to the U.S. Marshals Service on Mar. 18, 2013 to be transported to federal prison.
This case was investigated by the FBI, U.S. Department of Health and Human Services - Office of the Inspector General (HHS-OIG), IRS, DEA, Texas Office of the Attorney General - Medicaid Fraud Control Unit (OAG-MFCU), and Blue Cross/Blue Shield of Texas and was prosecuted by Assistant U.S. Attorney James Peacock.
####Maryland Resident Pleads Guilty in Credit Card Fraud Scheme Involving over 50 VictimsRead the Press Release
Skimmed Data from Retail Customers’ Credit Cards Where He WorkedBaltimore, Maryland - Tri Tran, a/k/a “Tony,” age 35, a citizen of Vietnam unlawfully in the country and residing in Maryland, pleaded guilty today to mail fraud in connection with a scheme to skim credit card account data and re-encoding the data onto different credit cards used to buy merchandise at retail stores.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; Harford County Sheriff L. Jesse Bane; and Harford County State’s Attorney Joseph I. Cassilly.
According to his plea, beginning in 2009 through February 28, 2011, co-conspirator Nghia Nguyen, a Vietnamese citizen residing in Santa Ana, California, mailed an electronic skimming device to Tran in Maryland who used the device at the business where he was employed to access data from customer credit cards. During 2009, Tran mailed Nguyen the skimming device approximately twice a month, typically when the data of five to 15 credit cards was stored on the skimmer. This pace picked up slightly in 2010, and in 2011 there were about four to five exchanges prior to his arrest. Tran would also mail several credit cards bearing his name to Nguyen.
Nguyen would then extract the data from the skimmer and re-encode the magnetic strip of the other cards with the victims’ data. Nguyen would then send Tran three or four re-encoded cards in return, and Tran would use these cards, typically for one or two transactions at about $200 per transaction before the accounts were shut down. This process was repeated several times over the course of the scheme.
On January 14, 2011, the Harford County Sheriff’s Office began investigating a complaint related to credit card skimming activity at the retail location where Tran worked. Tran’s residence was searched on February 28, 2011. Computer equipment and peripheral devices used in the creation of the fraudulent credit cards were seized.
As a result of the scheme, over 50 victims incurred losses totaling over $70,000.
Tran faces a maximum sentence of 20 years in prison and a $250,000 fine for mail fraud. U.S. District Judge James K. Bredar scheduled sentencing for May 24, 2013 at 4:00 p.m.
Nghia Nguyen, age 35, previously pleaded guilty to his participation in the scheme and was sentenced on December 17, 2012 to six years in prison.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked HSI Baltimore, USSS, Harford County Sheriff’s Office and the Harford County State’s Attorney’s Office for their work in the case. Mr. Rosenstein also recognized HSI Orange County, the Drug Enforcement Administration and U.S. Postal Inspection Service in California, City of Orange Police Department, Costa Mesa Police Department and the U.S. Attorney’s Office for the Central District of California for their assistance in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Maryland Man Found Guilty After Trial and Sentenced to <br /> 30 Years in Prison in International Child Pornography Conspiracy CaseRead the Press Release
A Maryland man was found guilty by a federal jury yesterday and sentenced today to serve 30 years in prison for his participation in a global online child pornography conspiracy, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Joseph H. Hogsett of the Southern District of Indiana.
Following a four-day trial, Roger Lee Loughry Sr., 57, of Baltimore, was found guilty yesterday by a federal jury in the Southern District of Indiana of one count of conspiracy to advertise child pornography, one count of conspiracy to distribute child pornography, 12 counts of advertising child pornography and two counts of distributing child pornography, in connection with his role as an administrator of an online child pornography bulletin board.
Loughry was sentenced today by U.S. District Court Judge Sarah Baker in the Southern District of Indiana. In addition to his prison term, Loughry was sentenced to serve lifetime supervised release.
Evidence presented at trial revealed that Loughry had been an active member of a child pornography bulletin board since November 2005 and had participated in numerous administrative functions on the online board during his membership, including adding new members to the board. In addition, evidence introduced at trial established that Loughry’s home was searched in September 2008, at which time computers and computer media were seized. Trial evidence showed that upon review of the seized materials, investigators discovered images and videos depicting minors engaging in sexually explicit conduct.
The charges against Loughry were a result of “Operation Nest Egg,” a joint investigation led by the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the U.S. Attorney’s Office for the Southern District of Indiana, the U.S. Postal Inspection Service (USPIS) and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). Operation Nest Egg, launched in February 2008, targeted 26 defendants charged in the Southern District of Indiana, as well as approximately 500 additional individuals located throughout the world for their involvement in an online group dedicated to trading images of child pornography.
Loughry had previously been tried and convicted of the same charges in April 2010. On Oct. 11, 2011, his convictions were reversed and the case was remanded for a new trial.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant U.S. Attorney Steven D. DeBrota of the Southern District of Indiana and CEOS Trial Attorneys Keith Becker and Amy Larson. The investigation was conducted jointly by CEOS’ High Technology Investigative Unit, USPIS and ICE, with assistance provided by the Indiana Internet Crimes Against Children Taskforce, Indiana State Police, and numerous local and international law enforcement agencies across the United States and Europe.
Martin Woman Pleads Guilty to Distribution of Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Ashley Cottier, age 36, of Martin, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on January 28, 2013 and pled guilty to distribution of a controlled substance. The maximum penalty upon conviction is 20 years' imprisonment and/or a $1,000,000 fine.
On or about June 6, 2012, Cottier illegally distributed Fentanyl. This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Northern Plains Safe Trails Drug Enforcement Task Force, the Martin Police Department, and the South Dakota Division of Criminal Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Laura A. Shattuck.
A presentence investigation was ordered and a sentencing date was set for May 7, 2013. The defendant was released on bond pending sentencing.
Martin Man Pleads Guilty to Distribution of Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Ashley Cottier, age 36, of Martin, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on January 28, 2013 and pled guilty to distribution of a controlled substance. The maximum penalty upon conviction is 20 years' imprisonment and/or a $1,000,000 fine.
On or about June 6, 2012, Cottier illegally distributed Fentanyl. This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Northern Plains Safe Trails Drug Enforcement Task Force, the Martin Police Department, and the South Dakota Division of Criminal Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Laura A. Shattuck.
A presentence investigation was ordered and a sentencing date was set for May 7, 2013. The defendant was released on bond pending sentencing.
Mark Ryan Coyle Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 1, 2013, before Chief U.S. District Judge Richard F. Cebull, MARK RYAN COYLE, a 35-year-old resident of Billings, appeared for sentencing. COYLE was sentenced to a term of:
Prison: 130 months
Special Assessment: $100
Supervised Release: 5 years
COYLE was sentenced in connection with his guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On November 4, 2011, the drug task force in Billings conducted a controlled buy of methamphetamine from an individual, identified here as Z.Z., using a confidential informant (CI). The CI bought .6 grams of meth for $30. Later on that same day, Z.Z. was stopped and consented to a search of his car and house. The searches netted cash ($1,887) and methamphetamine (8.4 grams), as well as a marijuana pipe, marijuana, a digital scale, a gun, and ammunition. After the search, Z.Z. identified his source as COYLE and agreed to cooperate.
On November 8, 2011, the task force bought two ounces of meth from COYLE using Z.Z. as a CI. In an interview of Z.Z. after the purchase, Z.Z. admitted that he had bought approximately 30 ounces from COYLE over a period of six months. He admitted that he got the gun that was seized during the search of his car by trading meth for it.
Again, on December 30, 2011, the task force used Z.Z. to buy one ounce of meth from COYLE. The transaction took place at COYLE's house. After the transaction, the task force obtained a search warrant for the house.
On January 2, 2012, COYLE was stopped on the interstate. COYLE agreed to talk with law enforcement and admitted that he was selling meth in Billings for approximately a year, and that he had been traveling to Denver to pick up meth for about 7 months. He admitted to getting 20-30 pounds of meth from his Denver source and selling it in Billings. COYLE admitted that he had traveled to Denver the previous week and bought 5 pounds of meth, which was in his bedroom.
Law enforcement seized approximately 5 pounds of meth during the search of COYLE's house, as well as some guns, scales, cash, and drug paraphernalia. COYLE's truck was searched, on January 4, 2012, and some meth, cocaine, and drug paraphernalia were found.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that COYLE will likely serve all of the time imposed by the court. In the federal system, COYLE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the High Intensity Drug Trafficking Area (HIDTA) Task Force.
Ligonier Man Sentenced for Role in Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Westmoreland County has been sentenced in federal court to six months imprisonment, $80,000 in restitution and three years supervised release on his conviction of wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Samuel Hayden, 70, of Ligonier, Pa.
According to the information presented to the court, in October, 2010, Hayden and another person solicited funds from an investor in which he promised a significant return on a foreign commodity investment, but, instead Hayden used part of the funds for his personal benefit.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Hayden.
Leeper SentencedRead the Press Release
BATON ROUGE, LA— United States Attorney Donald J. Cazayoux, Jr., announced that WAYNE A. LEEPER, III, age 44, of Metairie, Louisiana, was sentenced on Thursday, January 31, 2013 by United States District Court Judge James J. Brady to forty-eight (48) months of imprisonment. LEEPER was also ordered to repay the Louisiana Workforce Commission (LWC) $96,966 in restitution.
LEEPER had previously pled guilty to wire fraud and aggravated identity theft. While employed as an operations manager with a dental supply company from approximately November 2009 until May 2010, LEEPER fraudulently obtained the personal identifying information of numerous co-workers and applied for Louisiana Unemployment Insurance (UI) benefits in their names. As office manager, he enjoyed access to employee’s personnel files, which included information such as their date of birth and social security numbers. LEEPER also obtained the personal identifying information of unwitting friends and family members and applied for UI benefits in their names.
LEEPER executed his scheme to defraud by supplementing their unlawfully obtained identifiers with fictitious information regarding their place of employment and address. The addresses listed for these individuals, and for the most part, their employers, were addresses controlled by LEEPER or vacant addresses. UI funds would be wired to a debit card account created by Chase. Leeper would have the debit card sent to an address controlled by him. LEEPER would then use the funds obtained, including making numerous cash withdrawals at automatic teller machines, and using the cards at retail establishments for his own personal benefit. In total, LEEPER submitted approximately $102,219 in unemployment insurance claims to the LWC.
This investigation was conducted by United States Department of Labor, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Shubhra Shivpuri.
Leader in Bank Fraud Scheme Sentenced to 12 Years in PrisonRead the Press Release
Deposited Altered and Counterfeit Checks Into Bank Accounts They ControlledGreenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Nathan A. Silla, age 39, of Glenn Dale, Maryland, today to 12 years in prison followed by five years of supervised release for conspiracy to commit bank fraud, two counts of bank fraud and aggravated identity theft, in connection to a scheme in which he and his co-conspirators created counterfeit checks and stole money using misappropriated bank account information and the personal identifying information of individuals. Judge Williams ordered Silla to forfeit $900,000 in cash, six flat panel TVs and other electronics, a 2004 Land Rover Range Rover, and jewelry, including a Cartier watch. Judge Williams also ordered Silla to pay restitution of $331,449 and to forfeit $100,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office.
Silla pleaded guilty after two days of trial. According to his plea agreement, Silla and co-conspirators Kodjo Kakra Duncan, Kodjo Panyin Duncan, Caleb K. Otsibah and Stephen L. Wise opened bank accounts at financial institutions in Montgomery and Prince George’s Counties in Maryland, and in Washington, D.C., in their own names, in false names, in family members’ names and in the names of shell corporations they controlled. Silla, the Duncans and Caleb Otsibah used stolen identifying information of individuals to open some of those accounts and obtain check cards.
Silla admitted that he and other conspirators obtained checks from victim individuals and corporations, which they washed to remove the actual payee’s names, then printed with the name of a conspirator, or one of the names being used by the conspirators. Silla and others also created counterfeit checks by printing the misappropriated name and bank account information of victim individuals and companies onto counterfeit checks. They wrote those checks payable to conspirators or companies controlled by conspirators. They deposited these altered and counterfeit checks into accounts they controlled.
Silla admitted that the intended loss from the scheme was at least $400,000.
Kodjo Kakra Duncan, age 39, of Capitol Heights, Maryland; Kodjo Panyin Duncan, age 39, of Lanham, Maryland; Caleb K. Otsibah, age 39, of Lanham; and Stephen L. Wise, age 23, of Washington, D.C., have previously pleaded guilty to their participation in the conspiracy. Each has been sentenced to between 37 and 66 months in prison, and ordered to pay restitution of at least $58,974.61 and up to $175,632.67.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christen A. Sproule, who prosecuted the case.
Leader in Baltimore Heroin Distribution Ring Sentenced to over 15 Years in PrisonRead the Press Release
LEADER IN BALTIMORE HEROIN DISTRIBUTION RING SENTENCED TO OVER 15 YEARS IN PRISON
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Danilo Garcia, age 43, of Bronx, New York, today to 188 months in prison followed by five years of supervised release for conspiracy to possess with intent to distribute heroin and four counts of possession with intent to distribute heroin.
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; Baltimore City State’s Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to testimony at Garcia’s 12 day jury trial, Garcia was a leader in a heroin trafficking organization, supplying heroin to distributors in Maryland and elsewhere. During the investigation, the FBI overheard phone calls in which Garcia arranged to sell heroin to co-defendants Walter Powell, Diego Amparo and others. For example, on July 22, 2011, agents set up physical surveillance in Philadelphia, after intercepting telephone calls in which Garcia brokered a deal for Powell to pick up heroin from Amparo in Philadelphia. Agents observed Powell arrive at the meeting place in Philadelphia and leave a short time later. Powell was stopped on I-95 while driving back to Maryland with approximately 144 grams of heroin in his possession. On four occasions between April 17, 2009 and August 5, 2011, law enforcement seized heroin from Garcia or one of his co-conspirators.
The jury found that Garcia was responsible for the distribution of at least one kilogram of heroin.
Walter Powell, age 61, of Baltimore, Maryland, was previously sentenced to 121 months in prison for the heroin conspiracy. Diego Amparo, age 48, was sentenced to seven years in prison for the heroin conspiracy, and for distribution of heroin.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Lancaster Man Sentenced for Attempting to Receive Child PornographyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Joseph Marranca, Jr., 68, of Lancaster, N.Y., who was convicted of attempted receipt of child pornography, was sentenced to five year in prison and five years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated the defendant posted an ad on Craig's list that read in part "looking for a teenager." Marranca engaged in chat conversations online and began talking with a person who indicated that she was a 14 year old girl. During those chats, the defendant asked the 14 year old for pictures and made arrangements to meet her at a park. The individual that Marranca was actually chatting with was an undercover police officer. The defendant was arrested after he drove to the park to meet the officer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of the Special Agents of the Federal Bureau of Investigation, under the direction of Christopher M. Piehota, Special Agent In Charge and the Cheektowaga Police Department under the direction of Chief David Zack.
Justice Department Seeks to Shut Down Riverview, Fla., Tax-preparation Office Allegedly Involved in Identity TheftRead the Press Release
The United States has asked a federal court to shut down a tax-preparation office in Riverview, Fla., the Justice Department announced today. The civil injunction suit, filed in U.S. District Court in Tampa, Fla., alleges that Tyree Middleton, of Palmetto, Fla., operates Middleton Financial Group and Middleton Financial Professional Tax & Accounting Inc. in Riverview and intentionally prepares and files fraudulent federal income tax returns to obtain improper tax refunds.
According to the complaint, Middleton induces potential customers to “get excited” about their tax refunds, asserting that if they “file today,” they will “smile today,” when Middleton has reason to know that his customers are not entitled to the refunds he claims on their behalf. The lawsuit further alleges that Middleton repeatedly prepared federal tax returns that falsely claimed first-time home buyer credits, underreported income, claimed false business deductions, and claimed false education and earned-income credits.
The complaint further alleges that Middleton stole identities so that he could file income tax returns falsely claiming refunds, and have the refunds deposited into his bank account. According to the complaint Middleton prepared income tax returns for two deceased persons, falsely claiming the same items on each return.
The Internal Revenue Service lists return-preparer fraud and identify theft as two of its “Dirty Dozen” tax scams .
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Tyree Middleton, etc.
Complaint and Request for Injunctive Relief
Justice Department Reaches Agreement with Lomita, Calif., to Protect Religious ExerciseRead the Press Release
The Justice Department today announced a settlement with the city of Lomita, Calif., resolving allegations that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied the Islamic Center of the South Bay’s application to build a new mosque on its property. The settlement, which still must be approved by the U.S. District Court in Los Angeles, is in the form of an agreed order and resolves a lawsuit filed today by the United States against the city.
The case arose from the Lomita City Council’s 2010 denial of an application by the Islamic Center to take down the aging, separate structures on its property, which it has been using for worship and various other religious activities since 1985, and construct a single building that would serve its needs. The government’s complaint, which was filed with the court along with the agreed order resolving the lawsuit, alleges that the structures currently being used by the Islamic Center are insufficient to enable the community to come together for worship and fellowship or to perform religious rituals properly. The lawsuit alleges that the city’s denial of the Islamic Center’s application to construct a new center in place of these inadequate facilities imposed a substantial burden on the religious exercise of the Islamic Center and its members.
“Religious freedom is among our most fundamental rights, and there are few aspects of that right more basic than the ability of a religious community to come together for worship and fellowship in a decent and appropriate setting on its own property,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “With RLUIPA, Congress has sought to ensure that this basic right is protected from encroachment by unjustified local zoning actions.”
“The right to religious freedom includes the ability to build places of worship and to assemble at those places,” said U.S. Attorney André Birotte Jr. “This settlement will ensure that worshippers at the Islamic Center will be able to exercise their rights and enjoy the cherished freedoms in our Constitution.”
As part of this settlement, which incorporates portions of a related agreement between the city and the Islamic Center, the city has agreed to consider a renewed application by the Islamic Center on an expedited schedule. The city also agreed that its leaders and employees who make land-use decisions will attend training on the requirements of RLUIPA. In addition, the city periodically will report to the Justice Department.
RLUIPA prohibits land use decisions that discriminate based on religion or impose substantial and unjustified burdens on religious exercise. Persons who believe their rights under RLUIPA have been violated may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743. More information about RLUIPA, including a report on the first 10 years of its enforcement, may be found at www.justice.gov/crt/about/hce/rluipaexplain.php .
Related Materials:
Lomita Proposed Agreed Order
Lomita ComplaintInvestigation Exposes Mansfield Cocaine, Meth Distribution SchemeRead the Press Release
SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that a year-long undercover investigation resulted in 15 being charged for distributing cocaine and methamphetamine in the Mansfield area. Federal and local law enforcement officials arrested 12 so far in connection with these charges.
The charges and arrests are part of the Organized Crime Drug Enforcement Task Force (OCDETF) “Operation Limpiar Casa.” The FBI, the DEA, the Desoto Parish Sheriff’s Office, the Mansfield Police Department, and the Tri-Parish Task Force which includes DeSoto, Sabine and Red River Parishes, participate in the OCDETF program and conducted the operation.
The defendants face a variety of federal and state charges. Two federal indictments and 10 state arrest warrants to date have been returned.
A federal grand jury returned the first “Operation Limpair Casa” indictment Sept. 4, 2012, charging Bartholomew Claiborne, 25, of Mansfield, with 14 counts of distributing cocaine. Claiborne, who was an elected member of the Desoto Parish School Board, is scheduled to plead guilty to one count of distributing cocaine at 9 a.m. Feb. 7, 2013, in Shreveport. Claiborne faces up to 20 years in prison if convicted.
A federal grand jury returned a second indictment Jan. 24, 2013, charging Laquon Ashton, 25, of Arlington, Texas; Seneca Colbert, 32; Brian Davis, 37; and Janette Ashton, 53, all three of Mansfield, with multiple counts including conspiracy and distribution of cocaine. Laquon Ashton and Janette Ashton are also charged with conspiracy and distribution of methamphetamine. The defendants each face 5 to 40 years in prison if convicted.
State distribution of cocaine arrest warrants related to the operation were also obtained for Malcolm Flowers, 24; Johnathan Mcintyre, 23; Curtis Jones, 27; Dominique D. Sanders, 24; Preston Malone, 32; Roderick Canada, 23; Demarcus Green, 24; Mark C. Harris, 42; Roynell O’neal, 23; and James Turner, 37, all of Mansfield.
Federal and local law enforcement officers began making arrests in connection with the case this morning. There are currently 13 defendants in custody. The defendants facing federal charges had their initial appearances before U. S. Magistrate Mark L. Hornsby at 11:00 a.m. this morning.
The following individuals are still being sought by law enforcement: Malcolm Flowers, Roderick Canada, and Roynell Oneal. Anyone with information as to their whereabouts should contact the Desoto Parish Sheriff’s Department at (318) 872-3956, or DeSoto Parish Crime Stoppers at (800) 505-STOP.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
United States Attorney Stephanie Finley stated, “The U.S. Attorney’s Office, along with our federal, state, and local partners, is committed to keeping our communities safe. Breaking up this drug distribution ring is a huge step in countering the flow of these illegal substances into the community,” Finley said. “I want to thank all the agencies who have partnered with us on this operation and who continue to work to enforce both federal and state narcotics laws.”
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
First Assistant U.S. Attorney Alexander Van Hook is prosecuting the case.
Inmate Sentenced for Assault on Guard Using Contraband WeaponRead the Press Release
ALEXANDRIA, La: United States Attorney Stephanie A. Finley announced today that Isaac Hashi, 32, of San Diego, Calif., was sentenced on Wednesday to 18 years in prison for stabbing a federal prison guard with a makeshift knife.
Hashi pleaded guilty on Nov. 16, 2012, to one count of assaulting a prison guard and possessing contraband, which was a four-inch makeshift plexiglass knife. Hashi stabbed the guard multiple times on Nov. 4, 2009 while incarcerated at the U.S. Penitentiary in Pollock. Hashi is serving a prison term at the Pollock Penitentiary for assault after throwing hot oil on a deportation official’s face on Jan. 11, 2008, at the Columbia Care Center in South Carolina.
In addition to the 18-year sentence, he will be required to serve three years of supervised release, which he will serve after the 17-year sentence is completed for the earlier assault charge.
“Federal prison guards play a vital role in our public safety efforts. Neither the FBI or our office takes likely anyone who attempts to impede their work,” Finley said. “We hope this sentence sends a strong message that assaulting a prison guard is a serious crime that has severe consequences.”
The FBI-Alexandria, Louisiana, Resident Agency conducted the investigation. Special Assistant U.S. Attorney Robert J. France prosecuted the case.
Inmate Admits Threatening Federal JudgeRead the Press Release
AMARILLO, Texas — Larry Boyd Wren, II, 40, appeared in federal court in Amarillo, Texas, yesterday, and pleaded guilty before U.S. District Judge Mary Lou Robinson to one count of mailing a threatening communication. Wren faces a maximum penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in June 2012, while he was incarcerated in the Brown County jail, having been accused of committing several state offenses, Wren penned a letter to U.S. District Judge Sam R. Cummings, expressing his dissatisfaction with his incarceration. He made a threatening comment in the letter and mailed the letter to Judge Cummings at the Federal Courthouse in Lubbock, Texas.
The investigation is being conducted by the FBI. Assistant U.S. Attorney Christy L. Drake, of the U.S. Attorney’s Office in Amarillo, is in charge of the prosecution.
Head of New Haven Narcotics Trafficking Ring Pleads GuiltyRead the Press Release
February 1, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JOSEPH JACKSON, also known as “Mighty” and “M.I.,” 37, of New Haven, pleaded guilty today before United States Magistrate Judge Joan G. Margolis in New Haven to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).
This matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by JACKSON and centered in the Newhallville section of New Haven and Hamden. At the time, JACKSON was one of the principal suppliers of crack cocaine in and around New Haven. The investigation revealed that JACKSON purchased multiple kilograms of cocaine from various sources of supply, and then converted a large majority of the cocaine into crack cocaine. JACKSON then provided distribution quantities of crack to others who sold it on his behalf and gave the proceeds to JACKSON. At times, JACKSON sold crack and powder cocaine to his own customers.
JACKSON was arrested on October 28, 2010. On that date, federal agents executed search warrants at various locations, including JACKSON’s residence on Winchester Avenue in New Haven and a West Haven apartment that JACKSON used to process, store and package narcotics. A search of the Winchester Avenue residence revealed a Taurus .40 caliber pistol with an obliterated serial number, crack cocaine and cash. A search of the West Haven apartment revealed one kilogram of cocaine, 150 grams of crack packaged for distribution, multiple cell phones, drug packaging materials and cash.
JACKSON is scheduled to be sentenced by Senior United States District Judge Ellen Bree Burns on May 2, 2013, at which time JACKSON faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
If the binding plea agreement filed today is accepted by the Court, JACKSON will be sentenced to 25 years of imprisonment.
JACKSON also has agreed to forfeit two automobiles and two motorcycles seized during the investigation.
Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation.
This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Hartford Crack Dealer Sentenced to 13 Years in Federal PrisonRead the Press Release
February 1, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that DANA ADAMS, also known as “Soul,” 42, of Hartford, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to 156 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine and for violating the conditions of his supervised release from a previous federal conviction.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, ADAMS and others supplied crack cocaine to numerous street-level dealers, including gang members, who primarily distributed the drug in the area of Enfield Street in Hartford. On April 19, 2012, searches of residences on Bellevue, Enfield, Townley and Sharon Streets in Hartford, all of which ADAMS was suspected of using for his drug trafficking activities, revealed crack cocaine, drug paraphernalia, narcotics packaging materials and cash.
ADAMS’s criminal history includes multiple felony narcotics convictions, including a previous federal conviction in 2004 related to his distribution of crack cocaine in Hartford. ADAMS was incarcerated for more than four years on that conviction, and he was serving a term of supervised release at the time of this most recent offense.
ADAMS has been detained since his arrest on April 19, 2012. On November 6, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).
Judge Hall sentenced ADAMS to 138 months of imprisonment for conspiring to distribute crack cocaine, and a consecutive 18-month sentence for violating the conditions of his supervised release.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Harrisonburg Woman Pleads Guilty to Distributing FentanylRead the Press Release
HARRISONBURG, VIRGINIA -- A local woman who sold the drugs that ultimately led to the overdose death of a Timberville, Va. man, pled guilty yesterday afternoon in the United States District Court for the Western District of Virginia in Harrisonburg to related charges.
Jacie Elizabeth Kyger, 28, of Harrisonburg, Va., waived her right to be indicted and pleaded guilty to a one count Information charging her with distributing Fentanyl. As part of the plea agreement, Kyger has agreed to a 15-year sentence recommendation in Federal prison.
“This case shows how dangerous and highly addictive drugs like Fetanyl can be,” United States Attorney Timothy J. Heaphy said today. “Ms. Kyger exploited the weakness of others when she sold Fetanyl, and her acts ultimately led to an untimely death. When it comes to the problem of drug abuse, we must bring a comprehensive approach which combines enforcement with prevention and treatment.”
According to a statement of facts entered into evidence by Assistant United States Attorney Grayson Hoffman and agreed to by the defendant, Kyger had an on-going narcotics relationship with Kevin Michael Moyer. The investigation revealed a large number of text messages sent between the two establishing that relationship and discussing Moyer purchasing Fentanyl from Kyger.In early November 2011, the two discussed, via text message, Kyger selling Moyer a Fentanyl patch and two Percocet pills. On November 4, 2011, Kyger sold Moyer the drugs for $60. On the morning of November 5, 2011, the body of Kevin Michael Moyer was found lying on the floor of his parent’s home. A syringe containing a liquid containing Fentanyl and a portion of a Fentanyl patch were found next to Moyer’s body in his parent’s bathroom. The Medical Examiner for the Commonwealth of Virginia concluded that Mr. Moyer died of “acute fentanyl toxicity.”
The investigation of the case was conducted by the RUSH Drug Task Force, the Drug Enforcement Administration, the Rockingham County Sheriff’s Office and the Harrisonburg Police Department. Assistant United States Attorney Grayson Hoffman will prosecute the case for the United States.
Guilty Plea Entered by Two Individuals Charged in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced that Kimberly Wendell Rothstein, 38, and Stacie Weisman, 49, pled guilty today to conspiracy to commit money laundering in violation of Title 18, United States Code, Section 371, before the Honorable Judge Robin S. Rosenbaum. Sentencing for Kimberly Rothstein has been scheduled April 19, 2013 at 9:00 a.m. Sentencing for Stacie Weisman has been scheduled for June 7, 2013 at 10:00 a.m.
Kimberly Rothstein and Stacie Weisman were charged, along with Scott F. Saidel, 45, in September 2012 in connection with certain crimes committed in furtherance of a plot to conceal and dispose of assets which were forfeitable as proceeds of a Ponzi scheme orchestrated by Scott W. Rothstein. At the same time, in September, Eddy Marin, 50, and Patrick Daoud, 54, were also charged in a separate, but related, matter with obstruction of justice and perjury, in violation of Title 18, United States Code, Sections 1512(k) and 1621.
According to the documents filed with the court, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigations, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. However, according to Court documents, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars, for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.
The documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, all of the defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in the bankruptcy proceedings. It is further alleged that Marin and Daoud committed perjury during depositions in connection with the bankruptcy proceedings, and that Kimberly Rothstein, Stacie Weisman and Scott F. Saidel sought to have Scott W. Rothstein testify falsely in connection with those proceedings.
Defendants Eddy Marin and Patrick Daoud are set to commence trial on April 8, 2013. Defendant Scott F. Saidel pled guilty on January 30, 2013 and is scheduled to be sentenced on June 7, 2013.
U.S. Attorney Ferrer commended the investigative efforts of IRS-CID and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence LaVecchio, Jeffrey Kaplan, Paul Schwartz and Evelyn Sheehan.
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.
Guilty Plea Entered by Contractor Charged with Paying Bribes to Director of Traffic EngineeringRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announced that James Hashim, 50, of Plantation, pled guilty today to conspiracy to commit bribery in programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, and tax fraud, all in violation of Title 18, United States Code, Sections 371, before the Honorable Judge James I. Cohn. Sentencing has been scheduled for Friday, April 26, 2013, at 11:00 a.m.
Hashim was charged, along with Anthoneel Allen, 40, of Wellington, in connection with a scheme wherein they paid bribes to Jihad El Eid, who was the Director of Traffic Engineering in the Division of Public Works in Broward County.
According to the documents filed with the court, in or about 2005, Allen hired Hashim as a vice president of Southeast Underground Utilities (SUU). Hashim was to work as an estimator and to help SUU obtain government contracts. Hashim admitted that beginning in the fall of 2006 through 2010, he and Allen provided to Jihad El Eid more than $150,000 in cash, a 2003 Ford Taurus, and a job at SSUU for Wael El Eid (a relative of Jihad El Eid) in order to curry favor with Jihad El Eid. In return, Jihad El Eid helped SUU obtain work on multi-million dollar projects initiated by the Broward County Traffic Engineering Division, including the Signalization and Street Light Installation (SSLI) contract, a contract to make installations and do repair work of the street lights and traffic equipment in Broward County; the Advanced Transportation Management System (ATMS Project), a federally-funded project, which required the contractor to install an integrated traffic control system which entailed laying hundreds of thousands of feet of underground cable and conduit in order to synchronize traffic flow within Broward County; and the Video Detection Contract (VDC), which required the contractor to install video detection cameras in various intersections in Broward County in order to improve traffic flow. Jihad El Eid also assisted SUU concerning billing, specification and inspection matters that resulted in SUU being overpaid by at least $3,000,000.
According to the documents filed with the court, Hashim also admitted that he and Allen conspired to evade paying federal income and employment taxes on bonuses and payments made by SUU related to the purchase of Hashim’s $1.25 million house in Plantation.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. Mr. Ferrer would also like to recognize the assistance provided by the Broward County Office of the County Attorney, the Broward County Professional Standards Section, the Federal Highway Administration, the Florida Department of Transportation, and the employees of the Broward County Traffic Engineering Division. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
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.
Grand Jury Indicts Santa Monica Restaurant and Sushi Chefs on Federal Charges Related to Sale of Protected Whale MeatRead the Press Release
LOS ANGELES – A federal grand jury has returned a nine-count indictment that charges a now-shuttered Santa Monica sushi restaurant and two men who worked there as chefs with selling meat from Sei whales, which are protected under the Marine Mammal Protection Act.
The indictment, which was filed yesterday afternoon charges: Typhoon Restaurant, Inc., which is the parent company of the now-closed The Hump Restaurant, which was located at the Santa Monica Airport;
Kiyoshiro Yamamoto, 48, of Culver City; and
Susumu Ueda, 39, of Lawndale.
The indictment accuses the three defendants of conspiring to import and sell whale meat, specifically meat from Sei whales, which are listed as an endangered species.
Yamamoto and Ueda allegedly ordered the whale meat from Ginichi Ohira, a Japanese national who previously pleaded guilty to a misdemeanor charge of illegally selling a marine mammal product. Once Ohira received the whale meat in the United States, he prepared an invoice that incorrectly described the meat as fatty tuna and delivered the whale meat to The Hump, according to the indictment that describes a conspiracy that last from 2007 into 2010.
According to the indictment and documents previously filed in this matter, The Hump sold whale sushi to informants posing as customers on three specific occasions in the fall of 2009 and in early 2010. The meat sold as “whale” on two of the occasions was examined by scientists, who tested the DNA of the meat and determined it was Sei whale, and receipts given to the informants who went to The Hump indicated that they had purchased “whale,” according to an affidavit previously filed.
It is illegal to sell any kind of whale meat in the United States. Sei whales are protected under the Marine Mammal Protection Act of 1972 and they are listed as endangered in the Endangered Species Act of 1973.
In addition to the conspiracy charge, The Hump is charged with smuggling and Yamamoto is charged with two counts of smuggling.
The Hump is also charged with a misdemeanor count of the sale of a marine mammal product for an unauthorized purpose, and Yamamoto is charged with two misdemeanor counts of sale of a marine mammal product for an unauthorized purpose.
Yamamoto is additionally charged with obstructing an official proceeding. Contained in that charges is an allegation that Yamamoto instructed other sushi chefs at The Hump to lie about the source of the whale meat.
Ueda is additionally charged with making a false statement to federal investigators about the source of the whale meat.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If they are convicted of the charges against them in the indictment, Yamamoto would face a statutory maximum penalty of 67 years in federal prison, and Ueda would face a statutory maximum sentence of 10 years.
If it is convicted, Typhoon Restaurant, Inc. would face fines totaling $1.2 million.
Yamamoto, Ueda and representatives of The Hump will be summoned to appear for arraignments in United States District Court in the coming weeks.
The investigation into The Hump and Yamamoto was conducted by the National Oceanic and Atmospheric Administration, Office of Law Enforcement. NOAA investigators received assistance from the United States Fish and Wildlife Service, the California Department of Fish & Game, and U.S. Customs and Border Protection.
The investigation into The Hump was started after members of the general public brought information to NOAA. Anyone with information about the illegal sale of marine mammals is encouraged to call the NOAA Law Enforcement hotline at (800) 853-1964.
Release No. 13-018
Gary, Indiana Man Sentenced to 240 Months in Prison for Drug ConspiracyRead the Press Release
DAVENPORT, IA – On February 1, 2013, Tracy Lee White, age 47, of Gary, Indiana, was sentenced to 240 months imprisonment for conspiracy to manufacture, distribute, and possess with intent to distribute at least 1000 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose imposed the sentence after White and the United States Attorney reached an agreement that the 240-month sentence furnishes adequate protection to the public, is in keeping with the gravity of the offense, and promotes respect for the law, just punishment, and deterrence to criminal conduct. United States District Judge Stephanie M. Rose also fined White $20,000, ordered him to serve five years supervised release following his incarceration, and ordered him to pay a $100 special assessment to the crime victim fund.
At the time of his guilty plea, White admitted his involvement in a conspiracy that obtained more than 1,000 kilograms of marijuana in Colorado and transported it to Iowa and elsewhere with several other individuals. White traveled to Colorado on numerous occasions to meet with the suppliers and others for the purpose of purchasing of multiple pounds of marijuana.
This investigation was conducted by the Clinton, Iowa, Police Department, Quad City Metropolitan Enforcement Group, the Iowa Division of Narcotics Enforcement, and the United States Drug Enforcement Administration. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Frank Vennes Pleads Guilty to Lying to Investors in Petters’ Ponzi SchemeRead the Press Release
MINNEAPOLIS—Late this afternoon in federal court in St. Paul, a business associate of Thomas J. Petters, the Minnesota businessman convicted in 2009 of orchestrating a $3.65 billion Ponzi scheme, pleaded guilty to fraudulently raising money from individuals and through hedge funds for investment in Petters Company, Inc. (“PCI”). Frank Elroy Vennes, Jr., age 55, of Stuart, Florida, was charged on July 11, 2011, in a Second Superseding Indictment. Appearing today before United States District Court Judge Richard H. Kyle, he specifically pleaded guilty to one count of securities fraud and one count of money laundering.
Following the plea hearing, U.S. Attorney B. Todd Jones said, “This case exemplifies one of the highest priorities of this office — protecting our citizens from financial fraud. Because of the tremendous dedication of this office and our investigative partners, we successfully constructed a very strong case. We were able to convict Tom Petters, the biggest fraudster in Minnesota history, who is now serving a 50-year sentence in Leavenworth. We also successfully prosecuted many of his associates, and today, yet another individual pleaded guilty. We are taking action to recoup the financial losses suffered by so many because of this fraud and know the court will appropriately sentence Mr. Vennes for his related crimes.”
FBI Special Agent in Charge Chris Warrener added, “This guilty plea today symbolizes the ongoing joint efforts between the FBI, the U.S. Attorney’s Office, IRS-CI, and the U.S. Postal Inspection Service to combat significant fraud in the State of Minnesota. It also reflects our continued joint commitment to ensuring that those responsible for the Petters fraud are held accountable.”
From 1995 through September of 2008, Vennes and his company, Metro Gem, obtained money from others for investment in PCI notes. He also assisted in the formation of hedge funds, known as the Arrowhead Funds, to help raise additional investment funds for that same purpose. Beginning in 2001 and proceeding through September 24, 2008, he knew that individuals associated with the Arrowhead Funds were making misrepresentations and omissions to investors regarding investments in PCI, and he aided and abetted in those misrepresentations.
“This complex investigation shows that the appearance of success can be a mask for a tangled financial web of lies,” said Kelly R. Jackson, Special Agent in Charge of the St. Paul Field Office of the IRS-CI. “Ponzi schemes can thrive for a long time because of the false representations about the investments that were made to investors. But that time is gone, and as Mr. Vennes’ plea shows, it’s time for those responsible to face judgment.”
PCI was owned and operated by Tom Petters, who, in or before 1993, initiated the Ponzi scheme by representing that funds invested in PCI promissory notes would finance the purchase of electronics and other consumer merchandise. Purportedly, PCI would resell that merchandise for a profit to certain “big box” retailers, including Sam’s Club and Costco. In truth, however, no merchandise was bought or resold. Instead, Petters diverted hundreds of millions of dollars for his own benefit and the benefit of his co-conspirators.
Petters’ Ponzi scheme unraveled in 2008, when federal agents executed search warrants at his business offices as well as other locations. He was subsequently prosecuted in federal court in the District of Minnesota and, in April of 2010, was sentenced to 50 years in federal prison. He is currently serving his sentence in the federal penitentiary in Leavenworth, Kansas.
In his plea agreement, Vennes admitted that he raised funds for investment in PCI notes through third-party agents, particularly after 1998. Because he had a federal criminal record, having been previously convicted on federal narcotics, firearms, and money laundering charges, he had difficulty obtaining funding on his own. As a result, he regularly worked through others, especially when trying to solicit money from banks and institutional investors. Arrowhead Capital Partners II, L.P. and Arrowhead Capital Finance, Ltd., collectively known as the Arrowhead Funds, were among those third-party agents.
From 1999 through September 2008, all paperwork and communication between PCI and the Arrowhead Funds went through Vennes or one of his employees. At the same time, Vennes received “commissions” from Petters for brokering deals involving the Arrowhead Funds. His commissions were based on the amount of money he raised for Petters and PCI. Between 2001 and 2008, Vennes received more than $48 million in commissions.
During that same time period, Vennes knew that those acting on his behalf were making material misrepresentations and omissions to investors in the Arrowhead Funds and did nothing to correct the situation. Investors were told, for example, that whenever a retailer purchased consumer electronics or other goods from PCI, those products were paid for by the retailer with funds directly deposited into a bank account under the control of a management company. Thus, investors were falsely assured that all PCI transactions were, in fact, taking place, and all money was secure. However, Vennes, among others, was well aware that no payments were ever received from retailers and, instead, came from PCI alone.
Furthermore, investors were never informed of Vennes’ criminal record or his involvement in the Arrowhead Funds’ transactions. And, finally, they were kept unaware that in late 2007 and early 2008, the PCI Notes held by the Arrowhead Funds were delinquent and were approaching default. Instead of disclosing that information to investors, Vennes and others arranged to secretly extend the due dates on the notes, the intent being to conceal the payment problems and to lull investors into believing their investments were secure and performing well.
Vennes’s co-defendant in this case, James Nathan Fry, age 59, of Orono, Minnesota, was charged with five counts of securities fraud, four counts of wire fraud, and three counts of making a false statement to the U.S. Securities and Exchange Commission during its investigation of investments in PCI by hedge funds under the management of Fry’s company, Arrowhead Capital Management. His trial is scheduled to begin on February 5, 2013.
For his crimes, Vennes faces a potential maximum penalty of ten years in prison on the money laundering count and five years on the securities fraud count. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled.
If convicted, Fry faces a potential maximum penalty of 20 years on each wire fraud count and five years on each securities fraud and false statement count.
Two Florida hedge fund managers have pleaded guilty to committing fraud in connection to this scheme by making material misrepresentations to investors in their hedge funds concerning investments in PCI. David William Harrold, age 53, of Del Ray Beach, Florida, and Bruce Francis Prevost, age 52, of Palm Beach Gardens, Florida, await sentencing, each on four counts of securities fraud.
This case is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service–Criminal Investigations, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorneys Timothy C. Rank, Kimberly A. Svendsen, and Robert M. Lewis.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive attack on financial crimes. It 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 hopes to improve efforts across the federal executive branch, and, with state and local partners, 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.The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from securities fraud. For more information, visit http://www.stopfraud.gov/protect-securities.html.
Four Canton Men Sentenced to Prison for Drug Trafficking Involving Rated R Street GangRead the Press Release
Four Canton men were sentenced to prison this week for their involvement in a drug-trafficking ring in which cocaine, heroin and crack cocaine was brought into Stark County and distributed by members of the Rated R street gang, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’ Cleveland office.
Jasmine Watkins, 29, was sentenced to 20 years in prison.
Virgil Hill, 26, was sentenced to 20 years in prison.
Cordrick Owens, 32, was sentenced to 12 years, 7 months in prison.
Jerry Gordon, 25, was sentenced to 10 years in prison.
All four previously pleaded guilty to conspiracy to distribute controlled substances (cocaine, crack cocaine and heroin). Watkins also pleaded guilty to being a felon in possession of a firearm, for which he was sentenced to 10 years in prison, to be served concurrently to his 20-year sentence.
“This group is well known to law enforcement for causing serious trouble throughout Canton,” Dettelbach said. “These prison sentences will eliminate some of the worst of the worst offenders in Stark County.”
Anthony said: “These four sentences wrap up another phase of law enforcements efforts to dismantle drug trafficking groups in our area. The FBI will continue to work side by side with our law enforcement partners to make Canton neighborhoods a safer place to live.”
Watkins provided Gordon with shipments of drugs at a home in Columbus and then Gordon and others moved the drugs to a stash house he controlled on Sol Beck NE in Canton. Once there, Gordon distributed the drugs to local dealers, according to court documents.
Hill was identified in court documents as the leader of "Rated R." He and others made large purchases of cocaine from Gordon, according to court documents.
Seventeen people have now been sentenced to prison in this case. They are:
Travis Grant: 10 years, 1 month.
Timothy Bertram: 4 years, 9 months.
Oscar Todd: 10 years, 5 months.
Edward Turpin IV: 10 years.
Perez Antwan Williams: 5 years.
Demond Hill: 10 years, 2 months.
Bennie Woodson: 6 years, 10 months.
Ronald D. Hill: 6 years, 10 months.
John L. Hill: 3 years, 1 month.
Barry Giamourdes: 4 years, 3 months.
Brandon Jones: 10 years.
Lavanya Mayle: 5 years.
Brian Brown: 6 years.
Five others were indicted on federal charges last month for their role in the conspiracy.
This case was being prosecuted by Assistant U.S. Attorneys Linda H. Barr and Vasile C. Katsaros following an investigation by the FBI’s Safe Streets Task Force, which is comprised of the FBI, Canton Police Department, Alliance Police Department, Ohio Adult Parole Authority, Stark County Sheriff’s Office, Massillon Police Department and Perry Police Department.Founder and Leader of Korean Night Breeders Gang Sentenced to 210 Months for ExtortionRead the Press Release
ALEXANDRIA, Va. – Han Sa Yu, 44, a resident of Maryland who is originally from South Korea, was sentenced today to 210 months in prison, followed by three years of supervised release, for using fear, violence and threats of violence to extort Korean businesses operating in Annandale, Va. Yu also agreed to pay over $98,000 in restitution to the victims of his extortion.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after sentencing by United States District Judge James C. Cacheris.
Yu pleaded guilty to conspiracy to commit extortion on Nov. 9, 2012. According to court documents, around 2006, Yu founded the Korean Night Breeders to carry out extortions of various businesses in Annandale, including doumi, restaurants, and taxi businesses. The Korean Night Breeders targeted businesses owned by persons of Korean descent and frequently sought out those that employed illegal aliens. Dressed in black suits, which became their uniform, Yu and the Korean Night Breeders would surround their victims and threaten violence unless they paid a “tax” or “protection” money. From one victim alone, the Korean Night Breeders extorted more than $30,000. Various restaurants in Annandale either paid extortion or provided free food and drink to the Korean Night Breeders.
Yu, also known as “Thunder” and “Bungay,” modeled the gang after Asian organized crime syndicates. He would hold meetings where the gang would discuss potential victims, and Yu would teach fighting techniques and his extortion protocol. The size of the gang varied, but at times had 15 or more members. Yu and his gang used the extortion proceeds to purchase marijuana and cocaine, among other things. Three of Yu’s co-conspirators also pled guilty and are scheduled to be sentenced on Feb. 22, 2013.
This case was investigated by the Transnational Gang Unit of ICE HSI’s Washington, D.C., Field Office, with assistance from the Fairfax County Police Department. Assistant United States Attorney Michael J. Frank and Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Parking Lot Attendant Sentenced to 27 Months for Stealing Nearly $900,000 in Fees from Udvar-Hazy CenterRead the Press Release
ALEXANDRIA, Va. – Freweyni Mebrahtu, 46, of Sterling, Va., was sentenced today to 27 months in prison, followed by three years of supervised release, for stealing nearly $900,000 in visitor parking fees when she was employed by Parking Management, Inc., (PMI), the company contracted to manage parking services at the Smithsonian Institution’s Steven F. Udvar-Hazy Center in Chantilly, Va.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Scott S. Dahl, Inspector General for the Smithsonian Institution; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge T.S. Ellis, III.
Mebrahtu pled guilty on Nov. 1, 2012, to theft of public money. At sentencing, she was ordered to pay $895,680 in restitution and to forfeit an equal amount in the form of a money judgment in favor of the United States.
Mebrahtu was a full-time employee of PMI, which managed the 2,000-vehicle parking lot at the Udvar-Hazy Center. Over the course of three years, Mebrahtu stole cash entrance fees paid by tens of thousands of museum visitors, taking upwards of $4,000 in a single day by failing to hand out parking ticket stubs to paying customers and by unplugging an electronic vehicle counter that had been installed to measure vehicle traffic. At the end of each shift, Mebrahtu would submit a daily work summary to PMI that repeatedly under-reported the true number of vehicles that had entered the parking lot through her lane. These falsified PMI reports were provided to the Smithsonian. The total loss due to her theft is calculated at $895,680. Based on the $15 entrance fee, it is estimated that Mebrahtu stole from 59,712 visitor vehicles over the course of her crime.
Instead of reporting the thefts, Mebrahtu shared advice with co-workers about how to steal money from the museum. A co-worker, Meseret Terefe, 37, of Silver Spring, Md., was sentenced on Jan. 18, 2013, to 20 months in prison.
The investigation was initiated by the Smithsonian Office of the Inspector General and jointly investigated by the FBI’s Washington Field Office. Assistant United States Attorney Jasmine Yoon and Special Assistant United States Attorney James McDonald are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Midland Independent School District Warehouse Operations Buyer Pleads Guilty to Stealing from the DistrictRead the Press Release
Frank Gonzales Carrasco, age 45 and former Warehouse Operations Buyer for Midland Independent School District (MISD), faces up to ten years in federal prison after admitting to stealing construction materials from the school district announced United States Attorney Robert Pitman.
Appearing before U.S. Magistrate Judge David Counts in Midland this morning, Carrasco pleaded guilty to one count of theft concerning programs receiving federal funds. According to the factual basis filed in this case, between July 2009 and January 2012, Carrasco was employed by MISD as the Operations Buyer at the warehouse. His job responsibilities included ordering and managing the inventory necessary to complete work at MISD facilities. By pleading guilty, Carrasco admitted that during his employment, he ordered large amounts of copper pipe and electrical wire on behalf of MISD which exceeded any work orders anticipated by the school district. Carrasco then took the extra copper pipe and electrical wire—more than 18,000 pounds--to Recycle Midland where he recycled it for cash. Carrasco admittedly collected $46,041.71 from Recycle Midland for copper pipe and electrical wire that originally cost MISD more than $140,000. To conceal his scheme, Carrasco hid the theft of the materials by adding pipe or wire to work orders for jobs that did not require it or had already been completed.
In addition to the prison time, Carrasco faces up to a $250,000 fine as well as restitution to MISD. Carrasco is on a $10,000 bond pending sentencing. A sentencing date has yet to be scheduled.
This case was investigated by the Midland Police Department with assistance from Midland Independent School District internal auditors. Assistant United States Attorney V. LaTawn Warsaw is prosecuting this case on behalf of the Government.
Former Memphis Police Officer Sentenced to 84 Months for Civil Rights Violations, Drug ConspiracyRead the Press Release
Memphis, TN – Melvin Victor Robinson, 32, a former Memphis Police Officer, was sentenced today to 84 months in federal prison following his guilty plea to civil rights violations and attempting to possess 10 kilograms of cocaine with the intent to distribute, announced U.S. Attorney Edward L. Stanton III.
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“This sentence should serve as an unequivocal warning that law enforcement officers who disgrace their badge and violate the public’s trust will ultimately be caught and prosecuted to the fullest extent of the law,” said U.S. Attorney Stanton. “We will continue to hold accountable anyone who engages in such conduct – including those who take an oath to protect and serve.”
In July, Robinson pleaded guilty to one count of attempting to possess a controlled substance with intent to distribute, in violation of Title 21, U.S.C. Section 846; one count of deprivation of rights under color of law, in violation of Title 18, U.S.C. Section 242; and conspiracy against rights, in violation of Title 18, U.S.C. Section 242.
On January 26, 2012, an informant contacted Robinson and contracted the sale and purchase of 10 kilograms of cocaine. According to facts stated in court, Robinson met the informant while he was on duty and in his police car. The informant told Robinson that the cocaine was stored inside a trailer located at a trucking lot in south Memphis. The informant then provided Robinson with the key and location of the trailer. Approximately ten minutes later, Special Agents and Task Force Officers of the FBI saw Robinson get out of his police car and enter the trailer. Robinson later exited the trailer and placed a black duffel bag containing what he believed to be cocaine inside his police car.
Robinson also pleaded guilty to stealing money from Jwan Boddie. On November 14, 2011, Boddie was detained by Robinson during an arrest while Robinson was working as a MPD officer. According to facts stated in court, Robinson and his partner responded to a narcotics call at the Colonial Inn, where they found Boddie in his hotel room. During that search Robinson admitted to stealing $700 and later sharing the money with his partner.
Robinson also pleaded guilty to striking Jeremy Pettis during an arrest in April 2011. According to facts stated in court, Robinson detained and punched Pettis in the face while he was sitting in his vehicle.
“The criminal behavior of a police officer harms the integrity of all of law enforcement,” said Aaron T. Ford, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “The hard work by the FBI and our law enforcement partners to investigate and prosecute this case stands as a reminder that the majority of law enforcement officers serve and protect their communities honorably.”
“This is proof that the judicial system works,” said Memphis Police Department Director Toney Armstrong. “Regardless of what position you hold you will be held accountable for your actions if you choose to break the law.”
This crime was investigated by the Tarnished Badge Task Force, which is comprised of investigators from the Federal Bureau of Investigation, Memphis Police Department, and Shelby County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Brian K. Coleman on behalf of the government.Former Jersey City Public School Teacher Admits Preparing False Tax Returns, Tax EvasionRead the Press Release
NEWARK, N.J. – A Hudson County, N.J., man who worked as a tax preparer admitted today that he filed falsified returns on behalf of his clients, and also failed to report his own income, U.S. Attorney Paul J. Fishman announced.
Elijah Washington, Jr., of Jersey City, N.J., pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Indictment charging him with aiding in the preparation of false tax returns and tax evasion. Washington was arrested after preparing a false tax return for an undercover law enforcement agent and was indicted in April 2012 by a federal grand jury.
According to documents filed in this case and statements made in court: In addition to being a public school teacher, Washington owned and operated a tax preparation business – Elijah’s Professional Tax Service – in Jersey City, where he prepared tax returns for tax years 2005 through 2008. He fabricated various items to obtain larger refunds for clients, including tuition and fees deductions, child tax credits, charitable contributions and job expenses. Washington also failed to report his own income on the money he earned from the tax preparation business.
On the tax evasion charges, Washington faces a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the loss sustained by the Government, or twice the gain derived from the offense, whichever is greatest. Sentencing is scheduled for April 24, 2013.
U.S. Attorney Fishman credited special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew J. Bruck of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Peter Willis Esq., Jersey CityWashington, Elijah Indictment