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1 February 2013
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.
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(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.
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(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
Former East St. Louis Police Officer Sentenced for Obstructing A Federal Civil Rights InvestigationRead the Press Release
A former East St. Louis police officer was sentenced in US District Court on January 31, 2013, for making false statements to federal investigators, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Ramon Carpenter, 40, was sentenced to 30 months imprisonment, was ordered to pay a $200 special assessment and a $400 fine, and was ordered to serve a two year term of supervised release following service of his prison sentence. Carpenter pled guilty in US District Court on September 26, 2012.
Evidence presented at the sentencing hearing established that on May 8, 2012, a female driver was stopped by two East St. Louis police officers while driving home from purchasing liquor at approximately 2:45 AM. At the time of the stop, the driver was driving uninsured on a suspended license while she was under the influence of alcohol and in possession of an open container of alcohol. The driver believed that she was going to be arrested. She was asked to get out of the car, at which time East St. Louis Police Officer Ramon Carpenter purported to conduct a “frisk,” but he actually groped and fondled her in a sexually inappropriate way. She was not arrested. Rather, the officers allowed her to drive her car back to her apartment. The officers followed her, and all three entered her home where the officers discovered that she had left four children, ages 10, 9, 8, and 1, alone in the apartment while she went out to buy liquor. She feared that the Department of Children and Family Services was going to be called. Instead, Officer Carpenter directed the victim to follow him out of the residence and to get into his car. She complied. The officer drove her to an isolated area in Jones Park where he coerced her into performing oral sex upon him. After the sex act was completed, the driver was returned home with no charges
A federal criminal investigation began the next morning when the driver went to the police station to complain. When federal agents interviewed Carpenter, he falsely denied being with the victim in the park and he falsely denied receiving oral sex from her.
“Ramon Carpenter’s outrageous conduct constituted a gross violation of the civil rights of the victim, and further served to undermine public confidence in an agency that is charged with ensuring the safety of the community,” United States Attorney Wigginton said.
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service, the Illinois State Police, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Former Bank Executive Admits Embezzling from Bank of AmericaRead the Press Release
LUBBOCK, Texas — Donnie Wright, 53, of Lubbock, Texas, appeared yesterday in federal court and pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of embezzlement of funds by a bank employee. Wright, who remains on bond, faces a maximum statutory penalty of 30 years in federal prison, a $1 million fine and restitution. Judge Cummings ordered a presentence investigation report with the sentencing date to be set after the completion of that report. 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, Wright was employed by Bank of America in Lubbock, as a Branch Manager at the 5144 82nd Street location. The factual resume states that Wright was a member of the Board of Deacons and Trustee at Community Baptist Church (CBC) in Lubbock. Beginning in May 2006 and continuing to January 24, 2010, Wright used his position as a Bank of America employee to embezzle funds owned by CBC and entrusted to the custody and care of Bank of America. He employed a variety of methods to embezzle the funds, including embezzling from CBC’s Certificates of Deposits held at the bank; making cash withdrawals from CBC’s accounts using debit (withdrawal) tickets; and fraudulently drawing checks on CBC’s checking account.
The case was investigated by the FBI and the Lubbock Police Department. Assistant U.S. Attorney Amanda R. Burch is in charge of the prosecution.
Former Atlanta Investment Advisor Pleads Guilty to Embezzeling More Than $2.5 Million from ClientsRead the Press Release
ATLANTA – The owner and operator of Lighthouse Financial Partners, LLC, an investment advisory service in Atlanta, Georgia, pleaded guilty today in federal court before U.S. District Judge Steven C. Jones to a charge of defrauding more than 50 of his clients. Benjamin Daniel DeHaan, 37, of Decatur, Georgia stole more than $2.5 million from his clients, and then used the money to purchase a home and partial ownership in a restaurant and bar in Memphis, Tennessee.
United States Attorney Sally Quillian Yates said, “This defendant may have started out as a legitimate investment advisor, but he got greedy and began stealing from his clients. In less than three years, he diverted more than $2.5 million from his clients’ accounts and used the money to fund a lavish lifestyle. He is now facing a lengthy prison sentence and will never work in the securities industry again.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The defendant in this case, while now acknowledging his criminal behavior, has caused much financial and emotional harm to the victims who were once his clients. The FBI remains committed to identifying, investigating, and presenting for prosecution such cases of criminal fraudulent activity that harm so many individuals.”
According to United States Attorney Yates, the charges and other information presented in court, DeHaan owned and operated Lighthouse Financial Partners, LLC, an investment advisory service in Atlanta, Georgia. DeHaan recruited investors by posting a series of videos on Lighthouse’s website and on YouTube. DeHaan told investors that he had developed a proprietary software program that allowed him to determine when to buy and when to sell a particular stock. Approximately 114 people entrusted DeHaan with money to invest on their behalf. At its peak, Lighthouse had approximately $6.7 million in assets under management.
From January 2010 through May 2012, DeHaan misappropriated and converted to his own use more than $2.5 million of his clients’ money. DeHaan used the fraud proceeds to purchase a new house for himself in Memphis, Tennessee and to purchase partial ownership of a restaurant and bar in Memphis. DeHaan also used his clients’ money to fund an investment account in his own name and to pay Lighthouse’s overhead and operating expenses. DeHaan attempted to cover-up his theft by emailing fraudulent account statements to investors. This lulled the victims into a false sense of security and delayed their complaints to law enforcement.
DeHaan pleaded guilty to a Criminal Information charging him with one count of wire fraud. He could receive a maximum sentence of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding, but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for April 9, 2013, at 11 a.m., before United States District Judge Steve C. Jones.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Russell Phillips is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Felon Sentenced to 5+ Years in Prison for Trafficking High Powered WeaponsRead the Press Release
A convicted felon who trafficked in multiple high powered firearms, was sentenced today in U.S. District Court in Seattle to 66 months in prison and three years of supervised release for Conspiracy to Unlawfully Deal in Firearms and being a felon in possession of a firearm, announced U.S. Attorney Jenny A. Durkan. JOSHUA DAWSON, 21, is one of six Seattle area men, indicted in April 2012 following a firearms trafficking investigation. The men sold guns to a person working with law enforcement in the Renton, Washington area. At sentencing U.S. District Judge Richard A. Jones said, “You were directly involved in providing firearms that would hit the streets without any concern of where they would go or how they would be used.”
“Getting firearms out of the hands of felons and off our streets is one of our top priorities,” said U.S. Attorney Jenny A. Durkan. “I commend the creative and coordinated work by local and federal law enforcement to infiltrate this criminal gang that was trafficking the high powered weapons that fuel violence in our community.”
DAWSON was indicted following an undercover investigation involving the Seattle Police Department Gang Unit, the FBI Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The firearms that were sold as part of the conspiracy were very dangerous weapons. They included handguns, shotguns, semi-automatic rifles with large capacity magazines and scopes, stolen firearms, and weapons tied to crimes of violence. When he pleaded guilty in June 2012, DAWSON admitted selling eight guns between January and March 2012: a Smith and Wesson .38 caliber revolver; a Mac 11 9mm pistol; an SKS 7.62 assault rifle; a Romarm/Cugir, 7.62 x 39mm caliber rifle; a DPMS, .223/5.56mm caliber rifle; an Olympic Arms, multi rifle with a silencer; a Weatherby, 7mm caliber rifle; and a Maadi, 7.62 x 39mm caliber rifle. In all in this operation, 25 guns were taken off the street, many of which were previously reported stolen. DAWSON has prior convictions for robbery and theft. When officers went to arrest him in April 2012, DAWSON fled in his car, crashing into multiple other vehicles. When he was taken into custody, officers located a loaded Kel-Tec model PF-9, 9mm pistol in the glove compartment of his car.
“I want to congratulate the dedicated agents, officers and detectives who worked this investigation,” said Kelvin Crenshaw, Special Agent in Charge of the ATF Seattle Field Division. “Thanks to their efforts a convicted felon who chose to peddle high powered weapons on the streets of Seattle is now behind bars and no longer a threat. ATF is dedicated and resolute in the fight against violent crime and we will never rest in the pursuit of those who would threaten the safety and security of our communities.”
“As we did in this case, the FBI will continue to work hand-in-hand with our partners, sharing resources to target those who would facilitate putting dangerous weapons in the hands of criminals,” said FBI Assistant Special Agent in Charge Steven M. Dean. “This partnership is committed to reducing the drug- and gang-related violence in our communities.”
Prosecutors wrote in their sentencing memo that “…those who possess and sell firearms illegally bear some of the responsibility for the resulting violence that occurs. The illegal sale of firearms only serves to flood the area with weapons that are difficult, if not impossible, to accurately track. Given the dangerousness that these weapons present, and the very real possibility that weapons sold illegally could subsequently be used in other crimes, trafficking in firearms presents unique risks.”
Five others were prosecuted as part of the case: Andre M. Conerly, 26, was sentenced to 96 months in prison; Daunte R. Williams, 29, was sentenced to 78 months in prison; James L. Henderson, 22, was sentenced to five years in prison; Alexander J. Olivio-Altheimer, 21, was sentenced to four years in prison; and Djuan O. Gardner, 28, was sentenced to 70 months in prison.
The case was jointly investigated by the FBI Seattle Safe Streets Task Force, the Seattle Police Department Gang Unit, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case was prosecuted by Assistant United States Attorney Nicholas Brown.
Feds Target Stolen Identity Tax Refund FraudRead the Press Release
Nine people have been charged or arrested in the last three weeks
ATLANTA – The Internal Revenue Service began accepting tax returns for the 2012 tax year only two days ago, but the U.S. Attorney’s Office, the Criminal Investigation Division of the IRS, and other law enforcement partners are already in full swing investigating and prosecuting stolen identity tax refund fraud.
United States Attorney Sally Quillian Yates said, “Identity theft is a crime that can take many forms, all of which take a financial and emotional toll on its victims. But stealing someone’s identity – their name, date of birth, or social security number – for the purpose of filing a fraudulent tax return, causes even greater harm because it can significantly delay the victim from receiving his or her legitimate tax refund, and it costs the Treasury millions of dollars in lost revenue every year. The investigation and prosecution of tax-related identity theft during this tax filing season is a priority in this district.”
“Identity theft is a despicable crime that victimizes honest taxpayers and causes immense hardship,” said Veronica Hyman-Pillot, IRS Criminal Investigation Special Agent in Charge. “Identifying, investigating and vigorously prosecuting those individuals involved in tax-related identity theft schemes remains a top priority for IRS Criminal Investigation. The recent indictments and arrests are just a sample of what is to come as we join forces with our law enforcement partners and the United States Attorney’s office to put an end to identity theft.”
In the last three weeks alone, federal prosecutors in Atlanta have charged or arrested 9 people with stolen identity tax refund fraud, and executed two search warrants:
- Today, Kevin Joseph Sonnier, 44, of Ellenwood, Georgia, and Bernardo Davis, 26, of Morrow, Georgia, were arrested on a criminal complaint charging them with wire fraud, aggravated identity theft, and conspiracy to defraud the government. According to the criminal complaint, Sonnier and Davis filed over 15,000 false tax returns from 2011 to 2012 that claimed over $15 million in bogus refunds. Sonnier and Davis used the names and social security numbers of thousands of unsuspecting victims to claim fraudulent refunds from the government. They obtained some of these names and social security numbers through the use of a website and advertisements that touted the availability of an “Obama stimulus payment” and provided a toll-free number. However, no stimulus payment actually existed and Sonnier and Davis instead used the victims' personal information to file thousands of false tax returns that claimed millions of dollars in bogus refunds.
In conjunction with the arrest of Sonnier and Davis, today federal agents searched two locations, including 2295 Lake Harbin Road, Morrow, Georgia, where it is believed a business named "Sonnier Tax Service" has operated, and Kevin Sonnier's primary residence in Ellenwood, Georgia. Assistant United States Attorneys Stephen H. McClain and Thomas J. Krepp are prosecuting the case.
- On January 29, 2013, Jarred Ryan Corker, 26, of Marietta, Georgia, was arrested on a charge of theft of government property arising from his possession of debit cards containing fraudulently obtained tax refunds. According to the criminal complaint, Atlanta Police Department officers found a stack of 21 Visa debit cards issued by TurboTax and approximately $7,100 in cash in Corker’s possession during a traffic stop. The criminal complaint charges that the TurboTax debit cards were loaded with tax refunds issued by the IRS based on fraudulently filed 2011 federal tax returns. In total, 97 fraudulently filed tax returns were identified as part of the scheme with an intended tax loss to the IRS of over $290,000. Assistant United States Attorney Nathan Kitchens is prosecuting the case.
- On January 28, 2013, Frederick Roberts, 51, of Atlanta, Georgia, was arrested on a federal indictment for filing false tax returns with the IRS. Roberts was charged with three counts of mail fraud, three counts of aggravated identity theft, and three counts of filing a false claim against the United States. According to the indictment, Roberts filed false tax returns with the IRS seeking refunds in the names of other people whose identities were stolen, and then falsely listed as the taxpayer’s address his own address or an address from which he could retrieve mail so that he would be able to receive the requested refund check. Assistant United States Attorney Christopher Bly is prosecuting the case.
- In November 2012, a federal grand jury indicted eight individuals for conspiring to commit wire fraud and aggravated identity theft stemming from their use of stolen personal identification information to file hundreds of false federal income tax returns using online tax filing websites, and directed tax refunds to fictitious business bank accounts established to further the scheme. The indictment remained sealed until January 18, 2013, to allow law enforcement the opportunity to locate the defendants. The defendants are charged with conspiring to commit wire fraud and aggravated identity theft. Those indicted include Marcus Behling, 29, of Powder Springs, Georgia; Charlie Brewer, 24, of Mableton, Georgia; Nyron Nelson, 37, of Marietta, Georgia; Maurice Pollock, 31, of Austell, Georgia; Shawn Lavon Brown, 36, of Atlanta, Georgia; Christopher Edwards, 41, of Tucker, Georgia; Tasha Ellis, 32, of Atlanta, Georgia; and Kelly Sue Lonas, 38, of Marietta, Georgia. On January 18, 2013, all the defendants except Brown, Ellis, Lonas and Edwards were arrested. Brown, Ellis and Lonas were arrested in 2012. Christopher Edwards remains at large. Assistant United States Attorney Jeffrey Brown is prosecuting the case.
- On January 15, 2013, Amechi Igabari, 25, of Marietta, Georgia was indicted on charges of theft of government funds and aggravated identity theft. According to the indictment, which was unsealed this week, Igabari possessed or used the identities of at least 15 victims whose social security numbers were used to file false tax returns that claimed bogus refunds. To date, law enforcement has been unable to locate Igabari and arrest him. Anyone with information about his whereabouts is asked to call (404) 338-7533. Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
Members of the public are reminded that criminal complaints and indictments contain only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.These cases are being investigated by Special Agents of the Internal Revenue Service Criminal Investigation. If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
- Today, Kevin Joseph Sonnier, 44, of Ellenwood, Georgia, and Bernardo Davis, 26, of Morrow, Georgia, were arrested on a criminal complaint charging them with wire fraud, aggravated identity theft, and conspiracy to defraud the government. According to the criminal complaint, Sonnier and Davis filed over 15,000 false tax returns from 2011 to 2012 that claimed over $15 million in bogus refunds. Sonnier and Davis used the names and social security numbers of thousands of unsuspecting victims to claim fraudulent refunds from the government. They obtained some of these names and social security numbers through the use of a website and advertisements that touted the availability of an “Obama stimulus payment” and provided a toll-free number. However, no stimulus payment actually existed and Sonnier and Davis instead used the victims' personal information to file thousands of false tax returns that claimed millions of dollars in bogus refunds.
Federal Jury Finds Red Lake Man Guilty of Domestic Assault by A Habitual OffenderRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a trial jury found a 35-year-old Red Lake man guilty of domestic assault involving a woman on the Red Lake Indian Reservation. On January 31, 2012, Brian Gordon Graves was convicted on one count of assault with a dangerous weapon and one count of domestic assault by a habitual offender. This is the second time the United States Attorney’s Office for the District of Minnesota has prosecuted someone under the federal “domestic assault by a habitual offender” law. Graves was indicted for these crimes on November 5, 2012.
According to the indictment and evidence presented at trial, on October 6, 2012, Graves assaulted the victim with a 12-gauge shotgun. This assault was committed after Graves was convicted on at least two prior occasions in Red Lake Indian Tribal Court (criminal domestic violence in 1997 and first-degree assault in 1998).
The domestic assault by a habitual offender law was enacted in 2006 by Congress as support to the Violence Against Women Act of 2000. The 2006 statute is a valuable tool for federal prosecutors because research shows that many domestic violence offenders are repeat offenders and because domestic violence rates are extremely high in Indian Country.Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered in during their lives than Caucasian women.
The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
For his crimes, Graves faces a potential maximum penalty of ten years in federal prison on the assault with a dangerous weapon count, and a potential maximum penalty of five years on the domestic assault by a habitual offender count. U.S. District Court Judge Donovan W. Frank will determine Graves’s sentences at a future hearing, not yet scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.Federal Court Bars Kansas Instant Tax Service Franchisee from Operating and Preparing Tax Returns,Orders Payment of $100,000 in PenaltiesRead the Press Release
A Kansas City, Kan., federal court permanently barred an Instant Tax Service franchisee, A&S Tax Services LLC, from further operating or preparing federal tax returns for others, the Justice Department announced today. Instant Tax Service is a national tax-preparation chain operated by ITS Financial LLC, based in Dayton, Ohio. An Ohio federal court entered a preliminary injunction against ITS Financial LLC and its owner last November.
In the Kansas case, the owner of A&S Tax Services, Semere Tsehaye of St. Louis was also permanently enjoined from engaging in certain abusive practices. Both A&S Tax Services and Tsehaye consented to the civil injunction order without admitting the allegations against them. The order, signed by Judge John W. Lungstrum of the U.S. District Court for the District of Kansas, also provides that A&S Tax Services will pay $100,000 in civil tax penalties.
According to the government complaint , the defendants operated Instant Tax Service offices at multiple locations in the Kansas City metropolitan area. The defendants allegedly instructed A&S Tax Services employees at Instant Tax Service offices to engage in systemic and pervasive tax fraud, including routinely preparing tax forms falsely claiming education and dependent-care credits, reporting items pertaining to phony companies, and reporting fictitious income and expenses in order to fraudulently inflate the Earned Income Tax Credit.
Last year, Judge Lungstrum permanently enjoined Tsehaye’s brother, Ahferom Goitom, from preparing federal tax returns.
In the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax-fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department’s website .
Related Materials:
United States v. Semere Tsehaye, et al.
Stipulated Order for Permanent Injunction Other Relief Against Semere Tsehaye and A & S Tax Services, LLC
East St. Louis Man Sentenced as Career OffenderRead the Press Release
John Arnold, 25, of East St. Louis, Illinois, was sentenced in United States District Court in East St. Louis, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Arnold, who was indicted by a federal grand jury on June 20, 2012, and entered a plea of guilty to Possession with the Intent to Distribute Crack Cocaine on September 17, 2012, was sentenced today to 151 months in prison, followed by three years of supervised release. Arnold was also ordered to pay a fine of $750 and a special assessment of $100. In imposing the sentence, the Court found that Arnold was a Career Offender as defined in the United States Sentencing Guidelines.
According to a stipulation of facts submitted to the Court at the time of the plea, Arnold was arrested by the East St. Louis Police Department on April 5, 2012, at approximately 3:00 p.m. following a traffic violation. Arnold was placed under arrest after a computer check revealed that his driver’s license was revoked. The Defendant was patted down before to the arrest and two baggies containing a quantity of crack cocaine and a small amount of marijuana were located in Arnold’s underwear. Arnold later admitted that he intended to sell the crack cocaine.
Evidence in support of the indictment was obtained in an investigation by the Drug Enforcement Administration (DEA) and the East St. Louis Police Department. This prosecution was handled by Assistant United States Attorney Randy G. Massey.
East Hampton Man Charged with Placing Fake Bomb in Front of East Hampton Middle SchoolRead the Press Release
February 1, 2013David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, today announced that a federal grand jury in Hartford returned an indictment yesterday charging SEAN DORAN, 20, of East Hampton, with one count of intentionally conveying false or misleading information and a hoax by leaving a fake bomb device at the front doors of East Hampton Middle School in East Hampton on January 12, 2013.
The indictment was unsealed today during DORAN’s initial appearance and arraignment before United States Magistrate Judge Donna F. Martinez in Hartford. DORAN pleaded not guilty to the charge and was released on a $50,000 bond.
“As alleged, the defendant purposefully placed a fake bomb right at the door of a Connecticut middle school,” stated U.S. Attorney Fein. “Hoaxes threaten the sense of security that children and teachers are entitled to enjoy in their school. This indictment should be a clear signal that all threats to schools will be vigorously investigated by my office.”
“The indictment of Mr. Doran should be a warning to those individuals who choose to disrupt and threaten everyday public life, hoax or no hoax,” stated FBI Special Agent in Charge Mertz. “Placing a hoax bomb in a public location is criminal. Placing it outside a school is absolutely appalling. The FBI and its law enforcement partners will work tirelessly to bring to justice those responsible for such criminal conduct.”
If convicted of the charge, DORAN faces a maximum term of imprisonment of five years and a fine of up to $250,000.
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 Chief United States District Judge Alvin W. Thompson in Hartford.
This matter is being investigated by the Federal Bureau of Investigation’s JTTF, the East Hampton Police Department, the New Haven Police Department and the Connecticut State Police. The case is being prosecuted by Special Assistant United States Attorney Anjna R. Kapoor.
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(203) 821-3722 [email protected]Eagle Butte Woman Charged with Assault with Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota woman has been indicted by a federal grand jury for two counts of Assault with a Dangerous Weapon.
Rae Jean Araujo Cota, a/k/a Rae Jean Slides Off, age 36, was indicted by a federal grand jury on January 16, 2013. She appeared before US Magistrate Judge Mark A. Moreno on January 30, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of custody; a $250,000 fine, or both; 3 years of supervised release; a $100 special assessment; and restitution.
The charges relate to two alleged assaults of the same victim that occurred in Eagle Butte in November and December of 2012. One assault involved a knife, and the other a frying pan. The charges are merely accusations, and Araujo Cota is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case. Araujo Cota was remanded to the custody of the US Marshal. A trial date has been set for April 2, 2013.
Dutch Citizen Sentenced to 12 Years in Prison for Computer Hacking Scheme that Stole and Sold Credit Card InfoRead the Press Release
A Dutch citizen who was arrested and extradited from Romania was sentenced today to 12 years in prison for a computer hacking and credit card fraud scheme that victimized people around the world, announced U.S. Attorney Jenny A. Durkan. DAVID BENJAMIN SCHROOTEN, 22, also known in the hacking world as ‘Fortezza’ pleaded guilty in November 2012 to Conspiracy to Commit Access Device Fraud and Bank Fraud, Access Device Fraud, Bank Fraud, Intentional Damage to a Protected Computer, and Aggravated Identity Theft. At sentencing U.S. District Judge Ricardo S. Martinez asked him, “I don’t think you would ever consider walking into someone’s home, pulling out a gun and robbing them… Did it ever occur to you that you were doing that to all your victims?”
“By trafficking over 100,000 credit card numbers stolen by hackers, this defendant helped create the profitable black market for stolen data,” said U.S. Attorney Jenny A. Durkan. “We will target every link of the cyber crook business model. The hacker who stole the numbers was sentenced to seven years in prison, the broker who sold them online was sentenced today to 12 years in prison, and next before the court will be the leader of a criminal gang that was using these credit card numbers for fraud.”
SCHROOTEN and co-conspirator Christopher A. Schroebel, 21, of Keedysville, Maryland marketed stolen credit card numbers via internet sites. Schroebel hacked into the computers of two Seattle area businesses and stole credit card information. According to the records in the case, SCHROEBEL hacked into the point of sale computer in a restaurant in the Magnolia neighborhood of Seattle, and a restaurant supply store in Shoreline, Washington. Schroebel inserted malicious code onto the victim’s computers that copied the personal information of the credit card transactions at the point of sale terminals. Schroebel conspired and worked with SCHROOTEN to build “carding websites,” in order to make the stolen credit card numbers available to criminals for fraud. Investigators estimate that tens of thousands of people were victimized by having their stolen credit card numbers trafficked by SCHROOTEN – with a damage figure of more than $63 million.
Charles Tony Williamson, 33, of Torrance, California, is charged with 22 counts of various felony offenses including Conspiracy to Access Protected Computers to Further Fraud, Access Device Fraud; Bank Fraud; and Aggravated Identity Theft for his role purchasing and using the stolen credit card numbers. Williamson is scheduled for trial this spring.
“David Benjamin Schrooten's on-line criminal activities victimized thousands of U.S. citizens, and defrauded U.S. banking intuitions out of millions of dollars. Mr. Schrooten’s arrest and conviction demonstrates the Secret Service’s ability to pursue criminal actors beyond the borders of the United States and should serve notice to other online criminals,” said Jim Helminski, Special Agent in Charge of the U.S. Secret Service in Seattle. “I would like to commend the team of Seattle Electronic Crime Task Force Investigators, the many law enforcement organizations both domestic and international, and the prosecutors from the United States Attorney’s Office, Western District of Washington who worked many hours to investigate, and ensure extradition back to the United States to bring David Schrooten to justice
Credit card fraud costs financial institutions $40 billion annually. In the Western District of Washington more than 180,000 stolen credit card numbers have been identified in recent cyber cases.
The case is being investigated by the U.S. Secret Service Electronic Crimes Task Force and Seattle Police Department as part of the Task Force. The U.S. Marshals Service assisted with extraditing SCHROOTEN from Romania. The case is being prosecuted by Assistant United States Attorney Kathryn Warma. Substantial assistance was provided by the Department of Justice Criminal Division Office of International Affairs.
Drug User Pleads Guilty to Unlawful Possession of A FirearmRead the Press Release
A marijuana user who unlawfully possessed a gun with an obliterated serial number pled guilty January 31, 2013, in federal court in Cedar Rapids.
Geromey Gilliand, age 23, from Dubuque, Iowa, was convicted of one count of possession of a firearm by an illegal drug user.
At the plea hearing, Gilliand admitted he was an unlawful user of marijuana on November 28, 2012, when police officers arrested him in Dubuque on an outstanding arrest warrant. During a search incident to arrest, officers found marijuana and a loaded .22 caliber pistol in Gilliand’s packpack. The serial number on the gun had been scratched off.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Gilliand remains in custody of the United States Marshal pending sentencing. Gilliand faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Dubuque Police Department, the Dubuque Sheriff’s Office, and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-1023.
District Man Sentenced to 52 ½ Years in Prison for Murder and Other Charges in Killing at Northwest Washington Store- Store Owner Fatally Shot During Robbery-Read the Press Release
WASHINGTON - Dowen Knight, 48, of Washington, D.C., was sentenced today to 52 ½ years in prison for first-degree felony murder while armed and related charges in the slaying of a Northwest Washington store owner, U.S. Attorney Ronald C. Machen Jr. announced.
A jury found Knight guilty of the crimes in October 2012, following a trial in the Superior Court of the District of Columbia. Knight, who was convicted of 12 counts, was sentenced by the Honorable Florence Y. Pan.
According to the evidence at trial, at approximately 9 p.m. on Nov. 7, 2009, Knight and an accomplice entered La Casa de Morata, a liquor store in the 5400 block of Georgia Avenue NW. The store owner, Rufina Hernandez, 51, and her son were working there at the time.
Knight pulled a pistol, went behind the counter, and approached Ms. Hernandez. Upon seeing this, Ms. Hernandez’s son attempted to come to her assistance, but the accomplice ordered him not to move. As Knight approached Ms. Hernandez, she opened the cash register and invited him to take the money. Knight reached inside, took the bills and then fired a single shot, striking her in the left side of her chin. Knight then pointed the gun at the son and ordered him to the floor. However, the son refused and backed into the storage room. Then Knight and the accomplice fled the store.
When officers of the Metropolitan Police Department (MPD) arrived on the scene, they found Ms. Hernandez standing outside, being held upright by her son, who was still grasping the cell phone which he had used to make the 911 call. Paramedics transported her to the Washington Hospital Center. However, she succumbed to her injuries and was pronounced dead at the hospital.
The accomplice is currently awaiting sentencing in the case.
In announcing the sentence, U.S. Attorney Machen praised the work of the MPD detectives, officers, crime scene technicians, and forensics specialists who worked on the case. He also praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Alesha Matthews Yette and Litigation Technology Specialists Kimberly Smith, Leif Hickling, Paul Howell and William Henderson. Finally, he commended the efforts of Assistant U.S. Attorney Gary Wheeler, who secured the indictment in the case and handled the prosecution at trial.
13-037Demetrious Fields Sentenced to 444 Months for Racketeering, Drug Conspiracy and Money LaunderingRead the Press Release
Memphis, TN – Demetrious Fields, 42, of Memphis, TN was sentenced today by U.S. District Judge Samuel H. Mays, Jr. to 444 months in prison for his role in the Craig Petties Drug Trafficking Organization (DTO), announced U.S. Attorney Edward L. Stanton III and Resident Agent-in-Charge of the Drug Enforcement Administration’s Memphis office Brian Chambers.
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On October19, 2011, Fields pleaded guilty to one count of RICO conspiracy; one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine, and one count of conspiracy to commit money laundering.
As outlined in the indictment, Fields was a member of a criminal racketeering enterprise, the Petties DTO, whose members conspired with cocaine traffickers in Mexico, Texas, Mississippi, North Carolina, Georgia, Tennessee, and elsewhere. As part of the conspiracy, cocaine was prepared, packaged and/or stored, prior to distribution to buyers in “stash houses.” The defendant and the co-conspirators used these “stash houses” to avoid detection by law enforcement authorities. It was further part of the conspiracy that the defendants and their co-conspirators sorted, counted, packaged, and stored large amounts of cash derived from the sale of controlled substances in various co-conspirators’ premises in the Western District of Tennessee. The co-conspirators delivered large amounts of currency derived from the sale of cocaine from the Western District of Tennessee and elsewhere to Texas and Mexico. In order to facilitate continued drug trafficking and in order to prevent others from cooperating with law enforcement authorities, it was further part of the conspiracy that the defendant and the co-conspirators did kill other people. Over thirty people have been charged and convicted as part of this investigation.
In addition to the prison sentence, Mays also ordered Fields to serve five years of supervised release and ordered him to pay $33,000 in restitution. There is no parole in the federal prison system.
The case was investigated by the Drug Enforcement Administration, the United States Marshals Service, the Memphis Police Department, the Shelby County Sheriff’s Department and the Olive Branch Police Department. The case is being prosecuted by Assistant United States Attorney David Pritchard on behalf of the government.Defendant sentenced to Nearly five years for role in tax fraud and drug conspiraciesRead the Press Release
U.S. Attorney Karen L. Loeffler announced today that Isaac Amparo-Vazquez, 30, also known as David Feliciano-Sanchez and Jesus Angel Quinones-Ortiz, of the Dominican Republic, was sentenced in federal court Friday for his role in drug and tax fraud conspiracies. Amparo-Vazquez, was sentenced by United States District Court Judge Timothy M. Burgess to 57 months in prison to be followed by 4 years of supervised release.
According to court documents, Amparo-Vazquez conspired to import over two kilograms of cocaine into Alaska. Amparo-Vazquez also conspired to use stolen Puerto Rican identities to file tax returns and obtain fraudulent income tax refunds. Amparo-Vazquez admitted to making false applications to the Alaska DMV to obtain identification documents in other names.In sentencing Amparo-Vazquez, Judge Burgess characterized the defendant’s crimes as “unconscionable.” The judge noted that not only did Amparo-Vazquez enter the United States illegally, but upon doing so, he helped import more than two kilograms of cocaine into Alaska. Then, as Judge Burgess stated, the defendant proceeded “to add insult to injury” by conspiring to “rip off” the United States Treasury for substantial sums of money. The United States estimates that the total loss intended by members of the conspiracy exceeded $25 million. Amparo-Vazquez was found personally responsible for cashing two Treasury checks totaling just over $11,000.
Court documents indicate that, between January 2010 and March 2012, Amparo-Vazquez and other co-conspirators defrauded the United States by filing false tax returns and claiming millions of dollars in tax refunds to which they were not entitled. To accomplish their tax refund scheme, the conspirators obtained the names and social security numbers of individuals from the Commonwealth of Puerto Rico. They then fabricated individual income tax returns in those names claiming that they were owed thousands of dollars in refunds to which they were not entitled.
According to documents filed by the United States, Amparo-Vazquez convinced certain of his friends and acquaintances to give him their addresses so that U.S. Treasury checks could be sent to the Anchorage area. Amparo-Vazquez also admitted that he obtained false identification documents from the Alaska DMV and then used these false identification documents to open a bank account, into which account he ultimately deposited a U.S. Treasury check with false endorsements. On those documents, he admittedly made false claims that he was a U.S. citizen, when in fact he was a Dominican citizen illegally in the United States.
Finally, Amparo-Vazquez admitted that, between December 31, 2011 and January 8, 2012, he conspired with his brother and others to arrange for two kilograms of cocaine to be shipped to Alaska for distribution. Amparo-Vazquez made telephone calls to discuss the prices to be paid for these two kilograms of cocaine.
“This sentencing is a testament to the results that can be obtained through the collaborative efforts of local, state, and federal law enforcement agencies,” said Tamera D. Cantu, Assistant Special Agent in Charge for the Internal Revenue Service-Criminal Investigation in Alaska. “IRS-CI and our partner agencies will continue to work vigorously to combat tax refund fraud. This sentence should serve as a deterrent to those that contemplate similar fraudulent actions.”
The case is being jointly prosecuted by Assistant U.S. Attorneys Thomas C. Bradley, James Barkeley, and Stephanie C. Courter of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), the U.S. State Department’s Diplomatic Security Service, and the Drug Enforcement Administration (DEA). Additional assistance was provided by the Tax Division of the United States Department of Justice as well as the U.S. Attorney’s Offices for the District of New Jersey, the Eastern District of Pennsylvania, and the Southern District of New York.
Dealership Office Manager Pleads Guilty to Bank FraudRead the Press Release
ALEXANDRIA, La: United States Attorney Stephanie A. Finley announced today that Dianne Handy, 43, of Alexandria, La., pleaded guilty Wednesday before U.S. District Judge Dee D. Drell to defrauding more than $57,894 from Leglue Nissan where she was office manager.
Handy pleaded guilty to one count of bank fraud involving credit card transactions she processed through Peoples State Bank. According to court documents, Handy fraudulently caused Leglue Nissan in Alexandria to issue refunds to her own credit cards more than 72 times between July 2009 and July 2011 for a total of $57,894. As office manager, Handy was responsible for handling the dealership’s daily cash deposits, processing credit card transactions and making salary payments.
Handy faces a maximum penalty of 30 years in prison, a $1 million fine or both, and five years of supervised release for the count of bank fraud. Handy is scheduled to appear April 3, 2013, for sentencing in U.S. District Court in Alexandria.
The U.S. Secret Service, Baton Rouge Office, conducted the investigation. Assistant United States Attorney Howard Parker is prosecuting the case.
Davenport Man Sentenced to 15 Years in Prison for Methamphetamine and Gun OffensesRead the Press Release
DAVENPORT, IA – On February 1, 2013, Steven Michael Gruetzmacher, age 46, of Davenport, Iowa, was sentenced to 180 months imprisonment for conspiring to manufacture and distribute methamphetamine and for possessing firearms in furtherance of a drug trafficking crime, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Gruetzmacher to 5 years supervised release.
Gruetzmacher agreed with others to manufacture and distribute methamphetamine from July 2011 through early March 2012. Gruetzmacher manufactured and distributed methamphetamine on multiple occasions over the course of the conspiracy.
The case was investigated by the Drug Enforcement Agency and the Davenport, Iowa, Police Department, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Davenport Man Sentenced in Connection with Marijuana ConspiracyRead the Press Release
DAVENPORT, IA – On February 1, 2013, Jonathan Lamont Morning, age 34, of Davenport, was sentenced to 120 months imprisonment, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also sentenced Morning to five years supervised release following imprisonment, ordered him to pay a $100 special assessment to the crime victim fund, and ordered him to forfeit $10,182 in cash seized during the investigation.
On January 27, 2012, Morning was arrested by Davenport, Iowa, police while making a delivery of 10 pounds of marijuana. Police subsequently recovered another 100 pounds of marijuana from Morning’s residence. The investigation revealed that Morning was involved in an interstate marijuana trafficking conspiracy with another Davenport resident, Earl Buckner. Buckner was sentenced on April 13, 2012, to 60 months imprisonment.
This case was investigated by the Davenport, Iowa, Police Department, the Iowa Division of Narcotics Enforcement, and the United States Drug Enforcement Administration, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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