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30 January 2013
Head of Debt Collection Agency Sentenced to Five Years in Prison for Role in Multi Million Fraud SchemeRead the Press Release
January 30, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD PINTO, 68, of Wellington, Fla., was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by five years of supervised release, for his role in a mulitimillion dollar fraud scheme at Oxford Collection Agency, where PINTO served as Chairman of the Board. Judge Underhill also ordered to PINTO to serve the first three years of his supervised release in home confinement, and to pay restitution of approximately $12.3 million.
“Over several years, this defendant orchestrated a substantial fraud through which his company stole millions of dollars from clients, lenders and investors,” stated U.S. Attorney Fein. “We are committed to working with IRS-Criminal Investigation, the FBI, SIGTARP, and the other members of the Connecticut Securities, Commodities and Investor Fraud Task Force to root out financial fraud and prosecute responsible individuals.”
According to court documents and statements made in court, Oxford Collection Agency (“Oxford”) was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania and Florida. Businesses and other entities contracted with Oxford to collect debts on their behalf. Oxford’s clients included, among others, an educational institution, a laboratory, a computer company and various banks. Oxford collected debts from consumers under the pretense that it would report all such collections to its clients and remit the appropriate amount to the client. However, PINTO and other Oxford executives routinely caused Oxford to collect debts that were never remitted to its clients. The co-conspirators referred to these unremitted collections as a client’s “backlog.” To hide the backlog, co-conspirators would make periodic fraudulent collection reports to certain clients that under-reported the amount of funds collected. PINTO and others diverted various funds from their client remittances and used them for their own ends.
Certain co-conspirators also transferred money from one client trust account to another client account, from Oxford’s operating account to a client account, or from a client account to Oxford’s operating account to cover various shortfalls and backlogs or to improperly use collections to directly fund Oxford’s operations.
Starting in April 2007, Oxford secured a line from credit from Connecticut-based Webster Bank, a bank that received funds through the Troubled Asset Relief Program (TARP), without informing Webster Bank about its significant client backlogs or outstanding payroll taxes. PINTO and others sent falsified financial statements to Webster Bank, eventually increasing the credit line to $6 million, and laundered funds from the credit line to promote the ongoing fraud scheme against their clients. During that same period, PINTO and others also solicited millions of dollars in investments from various investors, without ever disclosing to their investors the existence of their backlogs. Some of the investor funds were deposited into PINTO’s personal bank account without investor knowledge.
Oxford’s victims lost more than $12 million as a result of this scheme.
The investigation also has revealed that Oxford sometimes obtained and retained business with its banking clients by paying bribes and kickbacks to bank officials.
On May 11, 2012, PINTO pleaded guilty to one count of conspiracy to commit wire fraud, bank fraud and money laundering, and one count of wire fraud.
Four other Oxford executives including PINTO’s son, Chief Executive Officer Peter Pinto, Vice-President of Finance and Chief Financial Officer Randall Silver, Executive Vice President Charles Harris, and Chief Operations Officer Carlos Novelli, have pleaded guilty to charges stemming from this scheme. They await sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities and Investor Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan, Special U.S. Attorney John McReynolds and Deputy U.S. Attorney Deirdre Daly.
In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Guilty Plea Entered by One of Five 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 Scott F. Saidel, 45, 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 has been scheduled for June 7, 2013 at 9:00 am.
Saidel was charged, along with Kimberly Wendell Rothstein, 38, and Stacie Weisman, 49, 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.
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.
Georgia Tax Return Preparer Sentenced to Jail<br /> for Identity TheftRead the Press Release
Willie C. Grant, a tax return preparer from Macon, Ga., was sentenced to 60 months in prison by for filing false claims for tax refunds, theft of government money and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. U.S. District Court Chief Judge C. Ashley Royal also ordered Grant to pay over $200,000 in restitution to the IRS.
According to court documents, from 2003 through 2008, Grant owned and operated a tax return preparation business, Grant Income Tax Bookkeeping and Check Cash (GIT) out of his home in Macon. During this time period, Grant filed false federal income tax returns in the names of deceased individuals and used many of his former clients’ names and Social Security numbers to file wholly fraudulent returns without their knowledge or consent. Grant directed the IRS to either electronically deposit refunds into his personal or business bank accounts or issue paper refund Treasury checks which he cashed or deposited into bank accounts he controlled. Grant spent the proceeds of his false refund scheme on personal items including expensive cars and personal living expenses. Grant admitted that that he abused his position of private trust as a professional paid tax preparer in committing these crimes.
“Honest taxpayers are doubly harmed when they entrust return preparers with their information, who turn out to be thieves who steal that information to enrich themselves by making fraudulent refund claims,” said Assistant Attorney General Kathryn Keneally. “The Justice Department will investigate and prosecute stolen identity refund fraud in all of its various forms.”
“When Mr. Grant stole these identities and defrauded the IRS, he victimized not only the people whose names and social security numbers he used, but every tax paying citizen in the United States. My office, with the continued cooperation of our law enforcement partners, will make sure that people like Mr. Grant are held to account for their fraud,” said Michael Moore, U.S. Attorney for the Middle District of Georgia.
“Mr. Grant used a foundation of fraud and deceit in order to cheat the government and victimize innocent taxpayers and is now being held accountable for his egregious behavior,” said Richard Weber, Chief IRS Criminal Investigation. “As a paid tax preparer, Grant held a position of trust in the eyes of his clients. He violated that trust and caused immeasurable harm to innocent victims. IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of those individuals whose identities were stolen, as well as the U.S. tax system.”
Assistant Attorney General Keneally commended the efforts of special agents of IRS – Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Charles M. Edgar, Jr. and Justin K. Gelfand, who prosecuted the case.
Georgia Tax Return Preparer Sentenced to Jail for Identity TheftRead the Press Release
WASHINGTON - Willie C. Grant, a tax return preparer from Macon, Ga., was sentenced to 60 months in prison by for filing false claims for tax refunds, theft of government money and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. U.S. District Court Chief Judge C. Ashley Royal also ordered Grant to pay over $200,000 in restitution to the IRS.
According to court documents, from 2003 through 2008, Grant owned and operated a tax return preparation business, Grant Income Tax Bookkeeping and Check Cash (GIT) out of his home in Macon. During this time period, Grant filed false federal income tax returns in the names of deceased individuals and used many of his former clients’ names and Social Security numbers to file wholly fraudulent returns without their knowledge or consent. Grant directed the IRS to either electronically deposit refunds into his personal or business bank accounts or issue paper refund Treasury checks which he cashed or deposited into bank accounts he controlled. Grant spent the proceeds of his false refund scheme on personal items including expensive cars and personal living expenses. Grant admitted that that he abused his position of private trust as a professional paid tax preparer in committing these crimes.
“Honest taxpayers are doubly harmed when they entrust return preparers with their information, who turn out to be thieves who steal that information to enrich themselves by making fraudulent refund claims,” said Assistant Attorney General Kathryn Keneally. “The Justice Department will investigate and prosecute stolen identity refund fraud in all of its various forms.”
“When Mr. Grant stole these identities and defrauded the IRS, he victimized not only the people whose names and social security numbers he used, but every tax paying citizen in the United States. My office, with the continued cooperation of our law enforcement partners, will make sure that people like Mr. Grant are held to account for their fraud,” said Michael Moore, U.S. Attorney for the Middle District of Georgia.
“Mr. Grant used a foundation of fraud and deceit in order to cheat the government and victimize innocent taxpayers and is now being held accountable for his egregious behavior,” said Richard Weber, Chief IRS Criminal Investigation. “As a paid tax preparer, Grant held a position of trust in the eyes of his clients. He violated that trust and caused immeasurable harm to innocent victims. IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of those individuals whose identities were stolen, as well as the U.S. tax system.”
Assistant Attorney General Keneally commended the efforts of special agents of IRS – Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Charles M. Edgar, Jr. and Justin K. Gelfand, who prosecuted the case.
Four More Indicted in Fraudulent Prisoner Income Tax Refund SchemeRead the Press Release
PENSACOLA – Four Floridians have been federally indicted for their involvement in a fraudulent prisoner income tax refund scheme. The indictment of Cora Beard (68) of Morriston, William Scott Folk (36) and Christopher Jesse Lee (35) both currently incarcerated in the Florida Department of Corrections, and Gail Anita Moss (60) of Miami Gardens was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida. Count One charges all four defendants with conspiracy to defraud the government with respect to claims, and Count Two charges all four defendants with conspiracy to commit mail fraud. Cora Beard and Gail Anita Moss are also charged with seven counts of filing false claims against the government and seven counts of theft from the government. The indictment also charges Beard with one count of aggravated identity theft, and Moss with two counts of aggravated identity theft.
The indictment alleges that beginning around January 2006, the four individuals and others filed fraudulent tax returns using the names and social security numbers of inmates housed in the Florida Department of Corrections, and on occasion other individuals who were not incarcerated. As part of this scheme, Cora Beard and Gail Anita Moss used their home addresses, as well as the home addresses of previously indicted co-conspirators Mary Blair, Thomas Rabeau, Nikki Kight, Elton Blair and others, so IRS refund checks would be mailed to them. The other co-conspirators were indicted last January, and all pled guilty for their involvement in the fraudulent income tax scheme. For her involvement in the scheme, Mary Blair was sentenced to 52 months in prison, Thomas Rabeau was sentenced to 24 months in prison, and a fifth co-conspirator, Carter Hassman, who was already serving a sentence in the Florida Department of Corrections, was sentenced to 10 years in prison.
It is further alleged in the indictment that, during the course of the scheme, the defendants and others filed and caused to be filed approximately 344 false and fraudulent federal income tax returns, which falsely claimed approximately $1,656,721 in false, fictitious, and fraudulent refunds from the United States. A copy of the indictment is attached.Trial will be scheduled before Chief United States District Judge M. Casey Rodgers. If convicted, each defendant faces a maximum of ten years in prison for each of Counts One and Two. For the counts of filing false claims against the government, Cora Beard and Gail Anita Moss face up to five years in prison on each of their seven counts. For the counts of theft from the government, Cora Beard and Gail Anita Moss face up to ten years in prison on each of their seven counts. For the counts of aggravated identity theft, Cora Beard and Gail Anita Moss face a minimum mandatory sentence of two years imprisonment on each count, which must be run consecutively to any other sentence imposed.
The case is being prosecuted by Assistant U.S. Attorney Tiffany Eggers as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters. The indictment is the result of an investigation by the Internal Revenue Service – Criminal Investigations.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government's burden to prove guilt beyond a reasonable doubt.Fort Dodge Woman Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine pled guilty January 25, 2013, in federal court in Sioux City.
Christina Fulkerson, 38, from Fort Dodge, Iowa, was convicted of one count of conspiring to distribute methamphetamine and one count of possessing with intent to distribute methamphetamine.
At the plea hearing, Fulkerson admitted her involvement in a conspiracy from about 2011 through October 2012 that distributed more than 150 grams of actual (pure) methamphetamine in the Fort Dodge, Iowa, area. Fulkerson also admitted to distributing more than 19 grams of methamphetamine during four separate transactions to individuals cooperating with law enforcement. On October 1, 2012, law enforcement officers executed a search warrant at Fulkerson’s residence and seized over 30 grams of actual (pure) methamphetamine which Fulkerson admitted she planned to distribute to others. Fulkerson resides within 1000 feet of a protected location, Holy Rosary School Park.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Fulkerson remains in custody of the United States Marshal pending sentencing. On the conspiracy conviction, Fulkerson faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, a special assessment of $100, and at least ten years of supervised release following any imprisonment. On the possession conviction, Fulkerson faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 80 years’ imprisonment, a $10,000,000 fine, a special assessment of $100, and at least eight years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Clay County Sheriff’s Office, Story County Sheriff’s Office, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3049.
Fort Dodge Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to manufacture methamphetamine was sentenced January 25, 2013, to eleven years in federal prison.
Chad Panzi, 31, from Fort Dodge, Iowa, received the prison term after a September 13, 2012, guilty plea to conspiracy to manufacture methamphetamine. Panzi was previously convicted of possession of a precursor with intent to manufacture methamphetamine in the Iowa District Court for Humboldt County in 2008 and Panzi was also convicted of manufacturing methamphetamine in the Iowa District Court for Webster County in 2004.
At the guilty plea, Panzi admitted that from about 2009 through November 2011 he was involved in a conspiracy which manufactured at least 50 grams of actual (pure) methamphetamine. According to pseudoephedrine logs obtained in the investigation, from January 2011 through November 2011, Panzi acquired at least 45.12 grams of pseudoephedrine for the purposes of manufacturing methamphetamine.
Panzi was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Panzi was sentenced to 132 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Panzi is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigations, and Fort Dodge Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3018.
Former Pharmacy Technician Sentenced for Stealing NarcoticsRead the Press Release
Eugene, Ore. - Denise Richardson, 47, of Roseburg, Oregon, was sentenced to prison for stealing narcotics from the Roseburg Veteran's Affairs Hospital. Richardson is a former pharmacy technician at the Veteran's Affairs Hospital. Chief U.S. District Judge Ann Aiken sentenced Richardson to 24 months in prison and ordered her to pay restitution in the amount of $23,475.23, the amount the VA spent purchasing the narcotics.
After an investigation by the VA OIG and DEA, Richardson was charged with theft of government property for stealing the narcotics. Sentencing documents noted that Richardson had been a pharmacy technician for approximately 18 years and had access to pharmaceuticals including controlled narcotics like Oxycontin, Oxycodone, and Zolpidem (Ambien). Defendant discovered a way to manipulate the system used to track and dispense narcotics at the VA hospital and used it to divert drugs for her personal use and to provide to friends and/or family. Based on review of the pharmacy records, from approximately January 2010 until June 2011, defendant stole over 6000 pills of Oxycodone, Clonazepam, Zolpidem and Oxycontin from the VA pharmacy that cost the VA $23,475.23. The narcotics had a street value of approximately $250,000, but there is no evidence that defendant ever sold them.
Amanda Marshall, U. S. Attorney for the District of Oregon said "Prescription drug abuse is the fastest growing drug problem in the United States, and Oregon has the second-highest rate of opioid drug abuse in the nation. This defendant's diversion of a dangerous drug put countless lives at risk. Our office is committed to prosecuting theft from government agencies, particularly by employees who steal drugs and destroy lives."
Michael E. Seitler, Special Agent in Charge for the U.S. Department of Veterans Affairs, Office of Inspector General, Northwest Field Office, said "Maintaining the integrity of VA's delivery of healthcare to veterans is a critical issue for the OIG. We will continue to aggressively work with the US Attorney's Office, and our law enforcement partners to ensure that those who abuse the VA system for personal gain are brought to justice."
The VA OIG operates a toll-free hotline for anyone to anonymously report fraud, waste, or abuse. The Hotline can be reached at 1-800-488-8244 or via email at [email protected].
This investigation was conducted by the U.S. Department of Veteran's Affairs, Office of Inspector General, Criminal Investigations Division and the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Amy E. Potter.
Former Palm Beach County Middle School Principal Sentenced for Enticement of A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Miami Field Office, announced that Scott A. Blake, 47, of Palm Beach Gardens, was sentenced today to 120 months imprisonment by Senior United States District Judge Kenneth L. Ryskamp on charges of enticing a minor to engage in an illegal sexual activity in violation of Title 18, United States Code, Section 2422(b).
This case stemmed from an undercover investigation into several geographic location social networking websites. Blake, who at the time was the Principal of Polo Park Middle School, located in Wellington, Florida, contacted the undercover law enforcement officer via those websites. After a number of sexually suggestive conversations, Blake arranged to meet the officer, who he thought was a 15 year old boy, at a local mall for the purpose of engaging in illegal sexual activity. Blake arrived at the mall and was taken into custody. The HSI and other law enforcement officers executed a search warrant at Blake’s residence and seized computers, documents and records that resulted in this federal prosecution.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the members of the South Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorneys Lothrop Morris and Jennifer Millien.
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.
Former New York State Senator from Queens Pleads Guilty to Conspiring to Defraud State of over $87,000Read the Press Release
Earlier today, at the United States District Court for the Eastern District of New York in Brooklyn, New York, former New York State Senator Shirley Huntley pleaded guilty to a criminal Information charging her with conspiracy to commit mail fraud. Huntley served in the New York State Senate, representing the 10th District in Queens, from 2007 to 2012. During part of the time of the charged conspiracy, Huntley was a sitting State Senator.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
As charged in the Information, Huntley ran a Queens non-profit organization known as Parents Information Network, Inc. (PIN) that received public funds to help educate parents about the New York City public school system. From October 2005 through October 2008, Huntley embezzled approximately $87,700 from PIN. In furtherance of this scheme, Huntley falsely certified to New York State that these funds would be used, and had been used, to support PIN’s charitable mission. Instead, Huntley used the money for her own personal benefit and for the benefit of her family members and associates. During this time period, PIN received nearly all of its funding from New York State.
Huntley controlled PIN’s finances through a bank account which held PIN funds. Huntley stole from PIN by writing over $21,000 in checks from the PIN account to herself and a family member. Huntley used $500 of PIN funds to pay her personal credit card bill and embezzled more than $34,000 from PIN through ATM withdrawals. Huntley also embezzled funds from PIN by using straw recipients, who posed as legitimate recipients of payments from PIN. Huntley wrote checks for $24,500 to the straw recipients, who cashed the checks and returned substantially all of the funds to Huntley in cash.
In her plea agreement with the government, Huntley agreed to make restitution of $87,700 to the New York State Department of Education for the funds she embezzled. In addition, Huntley also agreed to make restitution of $1,000 in connection with an unrelated bribery scheme involving a cargo-handling business at John F. Kennedy International Airport.
The guilty plea took place before U.S. District Judge Jack B. Weinstein. When sentenced, Huntley faces up to five years of imprisonment and a fine of $250,000, in addition to restitution.
“Huntley’s experience and influence were supposed to be used for the benefit of her constituents. Instead, Huntley used her knowledge of the system to steal funds intended to help some of her neediest constituents, lining her own pockets at the expense of parents in need, and ultimately their children,” stated United States Attorney Lynch. “She will now be held to account for her crime. This guilty plea underscores our unwavering commitment to hold responsible those who abuse their authority and pursue their own financial interests instead of the public interest.” Ms. Lynch thanked the office of the New York State Attorney General and the Port Authority of New York and New Jersey for their assistance.
FBI Assistant Director-in-Charge Venizelos stated, “Because of the trust placed in them, elected officials should hold themselves to a higher ethical standard than the public at large. The law sets the bar lower, but still Huntley failed to clear it. In a sense, her victims are everyone whose confidence in government is undermined by such conduct.”
The government’s case is being prosecuted by Assistant United States Attorneys Daniel Spector, Paul Tuchmann, and Alexander Solomon.
The Defendant:
SHIRLEY HUNTLEY
Age: 74Former Massachusetts RMV Employee Charged with Conspiracy to Produce False Information DocumentsRead the Press Release
BOSTON - An former employee of the Massachusetts Registry of Motor Vehicles, located in Revere, was charged today in U.S. District Court on charges related to producing a false identification document.
Alexander Brewer, 24, of Boston, was charged in a criminal complaint with conspiracy to defraud the United States in connection with producing false identification documents.
It is alleged that from December 2011 through December 2012, Brewer knowingly and willfully issued Massachusetts driver’s licenses to individuals who presented legitimate Puerto Rican identity documents, in an identity other than their own, to obtain Massachusetts driver’s licenses for the purposes of concealing their true identities.
The punishment under the statute is up to five years in prison to be followed by up to three years of supervised release and up to a $250,000 fine.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of the Homeland Security Investigations in Boston; and Colonel Timothy Alben, Superintendent of the Massachusetts State Police made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption & Special Prosecutions Unit.
The Complaint affidavit sets forth allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Maryland Correctional Officer Pleads Guilty to Conspiracy to Obstruct JusticeRead the Press Release
Ryan Lohr, 26, a former correctional officer at the Roxbury Correctional Institution (RCI) in Hagerstown, Md., pleaded guilty today to conspiring to obstruct justice and destroy evidence from a March 9, 2008, assault of an inmate by RCI officers.
According to court documents filed in connection with his guilty plea, Lohr opened the door to inmate K.D.’s cell to allow other correctional officers to assault K.D. in retaliation for a prior incident involving K.D. and another officer. Lohr watched RCI officers use their fists and feet to strike K.D., who was restrained at the time of the assault. After Lohr learned that there would be an investigation into this beating, he met with other RCI officers and agreed to cover up the assault. Lohr directed others to clean up blood in K.D.’s cell, and watched a supervisor use what appeared to be a magnetic device in an effort to destroy surveillance video footage. A supervisor also told Lohr not to write a report about inmate K.D. and his injuries.
Lohr further admitted in court documents that he lied to RCI investigators and the Maryland State Police, when these agencies asked him about K.D.’s injuries. Lohr also told RCI officers to provide investigators with false information.
“Mr. Lohr admitted that he opened the door so that other correctional officers could assault an inmate, watched other correctional officers assault the restrained inmate, and conspired with others to cover up the assault,” said Assistant Attorney General Thomas E. Perez. “The U.S. Constitution protects inmates and the Justice Department will continue to vigorously prosecute correctional officers who use their official position to assault inmates or to cover up crimes committed by their fellow officers.”
Lohr faces a maximum penalty of 5 years in prison and a fine of $250,000. Sentencing is set for June 18, before U.S. District Judge James K. Bredar.
The case is ongoing and is being investigated by the Frederick Resident Agency of the FBI and is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division of the Department of Justice, with the assistance of the United States Attorney’s Office for the District of Maryland.
Former Employee of Timeshare Consulting Firm Pleads Guilty to Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A former employee of The Vacation Ownership Group LLC admitted today to conspiring to defraud owners of timeshare properties, U.S. Attorney Paul J. Fishman announced.
Eric Reilly, 34, of Galloway, N.J., pleaded guilty to an Information charging him with one count of conspiracy to commit mail and wire fraud. Reilly entered his guilty plea before U.S. District Court Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, purported to offer owners of timeshares consulting services, including timeshare cancellation services. In September 2010, Reilly started working at the VO Group and was trained by VO Group managers to call customers using a prepared script and regularly lie to customers. Reilly would call customers and falsely state that he was calling in response to a complaint they had made to timeshare developers and lenders. He gave customers the false impression that he was working for Wyndham Vacation Resorts, a developer of timeshare resorts. Reilly then would falsely represent that the VO Group could pay off the customers’ timeshares or have their timeshares cancelled. Reilly falsely told some customers that their credit would not be damaged if they stopped paying for their timeshares. Reilly gave some customers “references” who were actually VO Group employees posing as satisfied customers. After hearing Reilly’s false representations, some customers sent checks to the VO Group, including one customer who sent the VO Group a $31,385 check. Reilly admitted to causing more than $70,000 in losses.
At 2:00 p.m. today, other former members of the VO Group who were charged in a Superseding Indictment on Jan. 23, 2013, will be arraigned before Judge Hillman.
The mail and wire fraud conspiracy charge to which Reilly pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for May 17, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident
Agency, under the direction of Special Agent in Charge David Velazquez in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.13-048
Defense counsel: Gilbert J. Scutti Esq., Somerdale, Camden, N.J.
Florida Man Sentenced for Role in $30 Million Telemarketing Scam That Victimized over 22,000 PeopleRead the Press Release
John Robert Eddy, 30, of West Palm Beach, FL, was sentenced to 60 months in prison, 5 years supervised release, and ordered to pay a $100 special assessment, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Eddy pled guilty to one count of conspiracy to commit mail fraud and wire fraud. The indictment alleged that Eddy and others were involved in a telemarketing scam under the names Universal Marketing Solutions and Creative Vacation Solutions. The fraudulent companies operated in Florida and bilked over 22,000 victims of $30 million dollars, victimizing consumers in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in twenty eight (28) of the thirty eight (38) counties comprising the Southern District of Illinois.
The criminal indictment alleged that Eddy was an owner of a Universal Marketing Solutions franchise office. Beginning in October 2007, and continuing through at least January 2010, telemarketers for Universal Marketing Solutions and Creative Vacation Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. Telemarketers Eddy supervised then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs – fees they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within the next 60 to 90 days. Despite collecting fees from 22,000 victims, not a single timeshare unit was ever sold. Eddy and his co-conspirators simply pocketed the closing costs.
Approximately twenty-four others have been charged in connection with the Creative Vacation Solutions telemarketing scam. The company’s former chief executive, Jennifer Kirk, pled guilty to a criminal Information on June 30, 2011. She was sentenced on January 9, 2012 to over 16 years in prison and five years supervised release. More than a dozen others have also been sentenced, receiving prison terms that range from 1 to 14 years.
The prosecution follows an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, the Florida Attorney General’s Office, the Florida Department of Agriculture and Consumer Services, and the Boynton Beach Florida Police Department. The prosecution of the case was handled by Special Assistant U.S. Attorney Katherine Lewis and Assistant U.S. Attorney Bruce Reppert.
Felon Who Possessed Loaded Sawed-off Rifle in New Haven Sentenced to 63 Months in Federal PrisonRead the Press Release
January 30, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JOSEPH DONABY, also known as “Bummy Jack,” 32, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 63 months of imprisonment, followed by three years of supervised release, for possessing a loaded sawed-off rifle.
According to court documents and statements made in court, on June 23, 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received information that an individual known as “Bummy Jack” was attempting to sell a sawed-off shotgun for $350. At the direction of law enforcement, an individual called Bummy Jack’s cell phone to arrange a meeting in the area of Whalley Avenue and Blake Street in New Haven to conduct a transaction of the firearm. However, in the late afternoon of June 23, while they were en route to the meet location, ATF Task Force Officers heard radio transmissions related to the arrest of an individual who was in possession of a sawed-off firearm in the area of the designated meet location.
At approximately 6:00 p.m. on June 23, New Haven Police Department Dispatch notified officers via police radio that “Shot Spotter” had detected one gun shot on Blake Street in between Osborn Avenue and Diamond Street. Shot Spotter is a computerized system that has sensors throughout New Haven capable of detecting the location of gun shots through the monitoring of sound waves. New Haven Police officers responding to the area saw DONABY walking quickly on Blake Street across Osborn Avenue. As officers approached DONABY, he began to run. DONABY then removed a large brown and black firearm from his waist area in the vicinity of 96 Blake Street, refused orders to “drop the gun,” and threw the firearm over a fence. He then attempted to climb the fence and made further attempts to resist arrest before he was ultimately subdued by officers and placed under arrest.
New Haven Police subsequently recovered a sawed-off Weatherby, model Mark XXII, .22 caliber semi-automatic rifle, loaded with seven rounds of ammunition, in the area where DONABY had discarded a firearm.
Further investigation revealed that the number of a cell phone that was in DONABY’s possession at the time of his arrest is the same number used by ATF Task Force officers to arrange the firearm transaction with Bummy Jack earlier that day.
Prior to June 2011, DONABY had sustained several state convictions and a federal conviction for possession of a firearm by convicted felon. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
DONABY has been incarcerated since his arrest on June 23, 2011. On November 15, 2012, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case was prosecuted by Assistant United States Attorney Tracy Lee Dayton.
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(203) 821-3722 [email protected]Federal Court Preliminarily Bars Indianapolis Instant Tax Service Franchisee from Preparing Federal Tax ReturnsRead the Press Release
A federal court in Indianapolis has barred David Ray Franklin and his company, Instant Refund Tax Service (IRTS) – which does business as Instant Tax Service—from preparing tax returns and from operating a tax-preparation business, the Justice Department announced today. Instant Tax Service is a national tax-preparation chain operated by ITS Financial LLC, based in Dayton, Ohio. A federal court entered a preliminary injunction against the Ohio firm and its owner last November.
The Indiana preliminary injunction order, which remains in effect pending final resolution of the civil lawsuit, was signed by Judge Sarah Evans Barker of the U.S. District Court for the Southern District of Indiana. The court also permanently barred an alleged IRTS manager, William Brown, from preparing federal tax returns for others. The defendants consented to the court orders without admitting the allegations against them.
The government complaint in the case alleges that Franklin owned and operated 22 Instant Tax Service locations that prepared and filed over 10,000 federal tax returns in 2010 and 2011 combined. Brown allegedly worked for Franklin and managed one of Franklin’s busiest Instant Tax Service offices. The United States accused Franklin’s offices and Brown of preparing false and fraudulent income tax returns for customers, fabricating income for phony businesses to obtain larger tax credits, forging forms W-2, filing returns improperly based on paycheck stubs rather than W-2 wage statements, claiming false education tax credits and reporting false filing status. The complaint also alleged that Franklin’s offices filed tax returns without authorization and sold false and deceptive loan products to Instant Tax Service customers.
The case is one of five similar civil actions that the Justice Department brought against Instant Tax Service franchises and the corporate franchisor, ITS Financial, which claims to be the fourth-largest tax-preparation firm in the nation. The trial on the government’s request in the Ohio case to permanently shut down the Instant Tax Service franchisor is scheduled for May.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. More information about those cases is available on the Justice Department website.
Related Materials:
United States v. David Ray Franklin, et al.
Stipulated Order for Permanent Injunction Against William Brown
Agreed Preliminary Injunction Order Against David Franklin and Instant Refund Tax Service, Inc.
Father and Son Sentenced for Their Roles in Fraud SchemeRead the Press Release
Tampa, Florida - U.S. District Judge Susan C. Bucklew today sentenced John Henley Fowler (64, Ft. Myers) to 5 years and ten months in federal prison for conspiracy to commit mail fraud and wire fraud. The court also sentenced his son, Jeffrey Robert Fowler (35, Ft. Myers), to 3 years and one month in federal prison on a similar charge. As part of the sentence, the court also ordered the forfeiture of bank accounts, vehicles, real property, computer equipment, a big screen television, iPad and iPhone, which are traceable to proceeds of the fraud scheme. In addition, the court ordered a money judgment in the amount of $3,771,701.88, the proceeds of the fraud scheme. In a related civil forfeiture proceeding, the government had already forfeited more than $2 million in fraudulent proceeds. The U.S. Attorney's Office will seek approval to have these funds distributed to the victims of this crime.
John Fowler pleaded guilty on September 19, 2012. Jeffrey Fowler pleaded guilty on September 18, 2012.
According to court documents, from about December 2010 through November 2011, conspirators developed a plan to use false and fraudulent representations to solicit victim-investors to wire funds into bank accounts, which they controlled, for investment in a purported gold futures program. The investment program was supposedly run by an existing New York-based investment firm called Paulson & Co., Inc. To further the fraud scheme, the Fowlers caused the incorporation of a Florida corporation named Paulson & Co., Inc. (Paulson-Florida), leased office space for the corporation in Ft. Myers, and opened bank accounts in the name of the corporation, all for the purpose of making Paulson-Florida appear to be legitimate. The Fowlers and their co-conspirators fraudulently represented that Paulson-Florida was a branch office of the real Paulson & Co., Inc. In fact, there was no connection whatsoever between the two entities.
The Paulson-Florida bank accounts and other accounts were used to receive more than $4 million in funds from victim-investors, who wanted to invest in the purported gold futures investment program. The Fowlers and their co-conspirators used the funds to perpetuate the fraud scheme for the personal enrichment of themselves, their family members, and friends.
This case was investigated by the United States Secret Service and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Ex-TSA Officers Sentenced for Conspiring to Smuggle Drugs Through Hartsfield-JacksonRead the Press Release
ATLANTA – Two now former TSA officers who conspired and attempted to smuggle drugs through Hartsfield-Jackson International Airport security have been sentenced by United States District Judge Charles Pannell. Today, Richard C. Cook II, 28, of Henry County, Georgia was sentenced to 11 years in prison; and on January 4, 2013, Timothy G. Gregory, 26, of DeKalb County, Georgia, was sentenced to 6 years in prison.
United States Attorney Sally Quillian Yates said, “The defendants abused their positions as TSA officers to smuggle drugs through the world’s busiest airport. The citizens of this district deserve better than Mr. Cook and Mr. Gregory – they deserve officers who obey the laws that they are entrusted to enforce. These significant prison sentences should serve as stinging reminders that corruption will not be tolerated.”
James E. Ward, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (OIG), Atlanta Field Office stated, “Let today’s sentencing demonstrate to the public that federal and local law enforcement agencies stand committed to eradicate corruption, particularly among the few who choose to tarnish their badge and oath of office. DHS OIG and its law enforcement partners will continue to hold such shameless individuals accountable.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “As officers of TSA, these two defendants abandoned their positions of trust and today they will answer for their actions. The FBI remains committed in working with its various law enforcement partners in bringing forward for prosecutions all matters concerning public corruption.”
According to United States Attorney Yates, the charges and other information presented in court: Beginning in January 2012, on multiple occasions, Cook and Gregory misused their positions as officers with the Transportation Security Administration (TSA) to smuggle what they believed to be illegal drugs through Atlanta’s airport security.
The investigation began after authorities received information from various sources that Cook was willing to use his position to smuggle contraband into secure facilities. Based on that information, federal law enforcement officers initiated an investigation into Cook’s activities. Specifically, on January 11, 2012, Cook met with two undercover officers, both of whom were posing as drug cartel members. During the meeting, the undercover officers provided Cook with 3 kilograms of fake drugs, that Cook believed to be heroin, and $3,500 in cash, which was partial payment to Cook to smuggle the drugs through airport security. Thereafter, Cook, who was wearing his TSA uniform, went to the airport, transported the drugs through the TSA security checkpoint, and delivered the drugs to an undercover officer inside the terminal. Cook was then paid another $4,000 in cash, which was the remaining payment for smuggling the drugs through security.
Similarly, on January 26, 2012, Cook met with an undercover officer before reporting for his TSA shift at the airport. During this meeting, the undercover officer provided Cook with 3 kilograms of fake drugs that Cook believed to be heroin, and $4,000 in cash, which was partial payment to Cook to smuggle the drugs through airport security. Thereafter, Cook, who was wearing his TSA uniform, went to the airport, transported the drugs through the TSA security checkpoint, and delivered the drugs to another undercover officer in the terminal. The undercover officer then paid Cook $3,500, which was the remaining portion of Cook’s fee for smuggling the drugs through security. In both sting operations, Cook believed that he was smuggling heroin through airport security.In February 2012, Cook resigned from the TSA. However, Cook recruited TSA Officer Gregory to assist with the drug smuggling operation. Cook introduced Gregory to the undercover officers who were posing as drug traffickers, and received a referral fee of $1,000.
On February 24, 2012, an undercover officer provided Gregory with 5 kilograms of fake cocaine and $5,000 in cash. Thereafter, Gregory, who was wearing his TSA uniform, went to the airport, transported the cocaine through the TSA security checkpoint, and delivered the drugs to another undercover officer in the terminal.On May 4, 2012, undercover officers provided Gregory with 10 kilograms of fake cocaine, which Gregory had agreed to transport from Atlanta to Commerce, Georgia.
Today, Cook was sentenced to 11 years in prison, to be followed by 5 years of supervised release, and fined $16,000. On January 4, 2013, Gregory was sentenced to 6 years in prison, to be followed by 5 years of supervised release, and fined $5,000.This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security - Office of the Inspector General, and the United States Marshals Service.
Assistant United States Attorney Jeffrey W. Davis prosecuted this case.
The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
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.
Eastern Idaho Man Sentenced for Distributing MethRead the Press Release
POCATELLO – Ryan Wasia, 26, of Pingree, Idaho, was sentenced yesterday in United States District Court in Pocatello to 40 months in prison followed by four years of supervised release for possession with intent to distribute 50 grams or more of a mixture containing methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also fined Wasia $1,000. He pleaded guilty to the charge on August 29, 2012.
According to the plea agreement, on April 4, 2012, Wasia was stopped in a vehicle in Fort Hall, Idaho, having just left a residence. Law enforcement officers recovered 127 grams of methamphetamine from the vehicle. In a subsequent interview, Wasia admitted the methamphetamine was his and that he had just sold additional methamphetamine to a person at the residence in Fort Hall. Wasia further admitted he possessed the methamphetamine and intended to distribute it to another person.
The case was investigated by the Idaho State Police and the Fort Hall Police Department.
Eagle Butte Man Charged with Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury. Philip LaBatte, age 24, was indicted by a federal grand jury on October 16, 2012 for Distribution of a Controlled Substance to a Person Under the Age of 21 and Possession with Intent to Distribute a Controlled Substance.
LaBatte appeared before US Magistrate Judge Mark A. Moreno on January 29, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of imprisonment, $250,000 fine, or both; 4 years of supervised release and 2 additional years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered. The charges are merely accusations, and LaBatte is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe and the Drug Enforcement Task Force. Assistant United States Attorney Kathryn N. Rich is prosecuting the case. LaBatte was remanded to the custody of the US Marshal. A trial date has not yet been set.
Drug Trafficker Sentenced to More Than 12 Years in PrisonRead the Press Release
McALLEN, Texas - Ricardo Hinojosa, of Roma, has been sentenced to 151 months in federal prison following his conviction of possession with intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today.
On Sept. 1, 2011, Hinojosa and others agreed to transport approximately 211 kilograms of marijuana from a location near the Rio Grande River in Starr County to another location for further distribution. The others included Javier Gonzalez, Ramiro Reyes, Eric Garza, Rogelio Vela and Jose Ibarra. As part of an additional scheme and before the marijuana transportation took place, Hinojosa and others agreed to steal the load of marijuana from the actual owner. They would steal the marijuana and have the actual marijuana owner believe the marijuana was seized by law enforcement.
Hinojosa, Reyes, Vela Gonzales and Garza were sentenced to respective terms of prison of 151, 63, 60, 32 and 24 months. Ibarra was previously sentenced to 30 months for his role and activities.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Jason C. Honeycutt.
Defendant Convicted of Drug and Attempted Witness Retaliation ChargesRead the Press Release
WILMINGTON, Del – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that a federal jury after less than four hours of deliberation over lunch found defendant William Boney guilty on charges of conspiracy to possess with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A), and 846; attempted murder by retaliating against an informant, in violation of Title 18, United States Code, Section 1513(a)(1)(B); and soliciting another person to retaliate against an informant by committing murder, in violation of Title 18, United States Code, Sections 1513(a)(1)(B) and 373. The jury returned its verdict yesterday after a one-week trial.
According to the evidence presented at trial, on November 7, 2010, Boney attempted to broker a seven-kilogram cocaine deal worth approximately $217,000 at his residence in Delaware. Before the cocaine deal could be completed, however, Drug Enforcement Administration (“DEA”) agents intervened after using a confidential informant to infiltrate the cocaine deal. Boney, along with four other individuals, was arrested, and the DEA seized nearly five kilograms of cocaine. Following his arrest, Boney was released to cooperate with the DEA in ongoing drug investigations.
While released, Boney discovered the identity of the confidential informant who assisted the DEA with the investigation of the November 7, 2010 drug deal. Boney then began to plot this person’s murder. DEA agents, however, uncovered Boney’s plot and inserted a second confidential informant into the Defendant’s scheme to portray the role of a “hit man.” Boney met with the purported “hit man” three times between May 22, 2011 and July 3, 2011. During these meetings, Boney discussed killing the confidential informant. If the informant was not present when the “hit man” entered the informant’s home, Boney requested the “hit man” kill the informant’s young child. Boney also provided critical information to the purported “hit man” to carry out this act. Boney further showed the “hit man” where various individuals lived who he believed possessed large amounts of cash or drugs so that the “hit man” could conduct home invasion robberies of these residences to collect the cash or drugs as payment for the murder of the confidential informant.
A sentencing hearing will be scheduled by the District Court. At sentencing, Boney faces a mandatory minimum sentence of 10 years of imprisonment, and up to life in prison for the drug conspiracy offense. He also faces a maximum penalty of 30 years in prison for attempted murder by retaliating against an informant; and a maximum penalty of 15 years in prison for soliciting another person to retaliate against an informant by committing murder.
United States Attorney Oberly congratulated the DEA investigators and the prosecution team on a well-earned conviction of a defendant whose ruthlessness included soliciting a hit man to kill the informant and/or his baby. He stated: ?The protection of witnesses and other innocents is of paramount concern and threats, intimidation or other actions against witnesses and others will always be fully investigated and prosecuted fully.”
Drug Enforcement Administration Special Agent in Charge David G. Dongilli said, “DEA will not tolerate threats against any person that has provided assistance or cooperated with DEA. I wish to extend my thanks to all of the law enforcement agencies that participated in this investigation, including the Delaware State Police, Delaware Department of Probation and Parole, Wilmington Police Department, Newark Police Department, and the New Castle County Police Department. I also want to extend my appreciation to the U.S. Attorney’s Office for the District of Delaware for their dedication, cooperation, professionalism, and support in the investigation and prosecution of this case.”
The case was prosecuted by Assistant United States Attorneys Jamie M. McCall and Ilana Eisenstein, District of Delaware. For further information, please contact AUSA McCall at 302-573-6079 or AUSA Eisenstein at 302-573-6082.
Danville Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
DANVILLE, VIRGINIA -- A 33-year-old Danville woman pled guilty yesterday morning in the United States District Court for the Western District of Virginia in Danville to stealing more than $34,000 of Social Security benefits intended for disabled individuals.
Joie Scott Whitt, 33, of Danville, Va., waived her right to be indicted and pled guilty yesterday morning to a one count Information charging her with theft of government monies. She faces a maximum possible penalty of up to 10 years in prison and/or a fine of up to $250,000.
"Ms. Whitt betrayed the trust of those families who put their loved ones in her care," United States Attorney Timothy J. Heaphy said today. "She stole money that was intended for those suffering from mental health problems, mental retardation and substance abuse issues. We will continue to do all we can to ensure that Social Security benefits assist those who need it rather line the pockets fraudsters like Ms. Whitt."
"Ms. Whitt's actions are another deplorable example of fraud being committed by health care providers as 'just the cost of doing business,'" said Attorney General Ken Cuccinelli. "Providers like Ms. Whitt who bilk the system aren't only defrauding those in their care and the taxpayers, they're also stealing limited Social Security or Medicaid funds and keeping people truly in need from receiving the care they require. We will continue to do all we can to protect Virginia's most vulnerable citizens from predators like Ms. Whitt.”
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Charlene R. Day, Whitt worked as the bookkeeper for Alternative Community Experience (ACE), a representative payee organization that provides residential support services and day support services for individuals with mental health illnesses, mental retardation and substance abuse problems.Whitt admitted today that while serving as the bookkeeper she embezzled $34,505 in Social Security Administration benefits from the businesses operating account.
The investigation of the case was conducted by Virginia Attorney General’s Medicaid Fraud Control Unit and the Social Security Administration. Assistant United States Attorney Charlene R. Day and Special Assistant United States Attorney Vaso Doubles are prosecuting the case for the United States.
Cumberland Man Pleads Guilty to Three Armed Bank RobberiesRead the Press Release
Baltimore, Maryland - John Allen Talerico, age 50, of Cumberland, Maryland, pleaded guilty late yesterday to three counts of armed bank robbery.
The guilty plea 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; Cumberland Police Chief Charles H. Hinnant; Allegany County Sheriff Craig Robertson; Frostburg Police Chief Royce C. Douty; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg, of the Combined County Criminal Investigations Unit (C3I).
According to his plea agreement, between March 11, 2011, and September 13, 2011, Talerico committed three armed bank robberies in Cumberland, Maryland. During each robbery, Talerico entered the bank, approached the teller and asked about opening an account, then pointed what appeared to be a large black semiautomatic handgun at the teller and demanded money. After the tellers gave Talerico cash, he threatened them and demanded more money from the tellers, then fled the bank. On one occasion, when a customer entered the bank during the robbery, Talerico pointed the gun at the customer, telling the customer to “get out of the way.” During the robberies, Talerico wore distinctive clothing, including a knit hat with a brim, and large framed glasses. Talerico obtained a total of approximately $31,206 from the three bank robberies.
The robberies were captured on bank surveillance video. During a search warrant executed at Talerico’s home on March 30, 2012, numerous articles of clothing matching those worn by the bank robber in the surveillance photos were seized.
Talerico faces a maximum sentence of 25 years in prison, for each of three counts of armed bank robbery. U.S. District Judge Marvin J. Garbis scheduled sentencing for May 3, 2013. Talerico remains detained.
United States Attorney Rod J. Rosenstein praised the FBI, C3I, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Maryland State Police, and Allegany County State’s Attorney’s Office for their work in the investigation and thanked the Mineral County Sheriff’s Office (WV), Pennsylvania State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul E. Budlow and Mark W. Crooks, who are prosecuting the case.
Coraopolis Man Sentenced to Probation for Possessing WeaponRead the Press Release
PITTSBURGH, Pa. - A resident of Coraopolis has been sentenced in federal court to one year probation on his conviction of possession of a machinegun, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Martin Joseph Saunders, 49.
According to information presented to the court, Saunders transferred parts designed to convert a weapon into a machinegun.
Assistant United States Attorneys Robert S. Cessar and Lee J. Karl prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Saunders.
Conspirator Pleads Guilty in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland - Kevin Pittman, now using the name “Breona Pittman,” age 33, of Chesapeake, Virginia, pleaded guilty today to bank fraud conspiracy and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; and Harford County Sheriff L. Jesse Bane.
According to her plea agreement, from November 2007, through February 2011, Pittman conspired with others in a scheme to use the stolen identifying information of others to fraudulently obtain money from financial institutions. Specifically, a co-conspirator provided Pittman with fake identification, counterfeit supporting business documents, and counterfeit checks, which contained the stolen personal identifying information of individuals and pictures of Pittman and other conspirators. Pittman used the fake documents to open business and personal bank accounts at various financial institutions. Pittman deposited the counterfeit business checks into these fraudulently opened bank accounts, then withdrew the funds before the checks could be identified as fraudulent. Pittman was paid a commission for each transaction.
Pittman also used counterfeit documents and compromised identities provided to her by a co-conspirator to incorporate fraudulent businesses with the Maryland Department of Assessments and Taxation (“MDAT”) and other states’ departments of state, then established matching business checking accounts for those fraudulent businesses for use in the scheme. Finally, Pittman cashed counterfeit checks, which were drawn on real persons’ accounts, at retail supermarkets, using the fraudulent identification documents provided by her co-conspirator as proof of identity.
As a result of the scheme, more than 10 victims lost a total of between $30,000 and $70,000.
Pittman faces a maximum sentence of 30 years in prison for the bank fraud conspiracy and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Richard D. Bennett scheduled sentencing for May1, 2013.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Harford County Sheriff’s Office for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Cleveland Woman Charged with Six Counts of Wire FraudRead the Press Release
A federal grand jury in Cleveland returned an indictment charging Diana Geoffrion, age 55, of Cleveland, with six counts of wire fraud related to a $100,000 scheme involving a property in Willowick, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Geoffrion was employed by First American Exchange Company, LLC, in its Cleveland office from 2001 through January 2011. In February 2009, she executed a land contract on property at 722 East 305 Street, Willowick, Ohio, 44095, according to the indictment.
She then tried to fraudulently pay off the mortgage and note on the property with First American funds in late 2010, and embezzle and divert additional First American funds for her own benefit, according to the indictment.
Each of the six counts corresponds with a separate transaction, which totaled approximately $101,982.
The indictment results from an investigation conducted by the Federal Bureau of Investigation. The case was presented for indictment by Assistant United States Attorney James V. Moroney.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Heights Indicted on Federal Drug ChargesRead the Press Release
A federal grand jury sitting in Cleveland, returned a one-count indictment charging Donte Booker, age 45, of Cleveland Heights, Ohio, with a violation of federal narcotics law, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges Booker with the attempted possession with the intent to distribute over five kilograms of cocaine.
If convicted, Booker’s sentence will be determined by the court after review of factors unique to this case, including Booker’s prior criminal record, his role in the offense and the unique characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Edward F. Feran following an investigation by the Northern Ohio Law Enforcement Task Force (NOLETF) and the Cleveland Police Department.
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Homeland Security Investigations, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Calmes Denied New TrialRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that United States District Judge Lance Africk today denied a new trial request of KEVIN PAUL CALMES, 40, of Denham Springs, Louisiana. CALMES had filed a request for new trial claiming the discovery of new evidence. Judge Africk, in a 6 page opinion, rejected CALMES’ request for a new trial. Judge Africk also ordered KEVIN CALMES to report to jail on Tuesday, February 6, 2013 to begin service of his 30 month term of imprisonment in the custody of the United States Bureau of Prisons.
KEVIN CALMES and CALMES MOTORSPORTS were sentenced for their convictions on August 1, 2012 by a Baton Rouge jury. KEVIN PAUL CALMES was convicted of money laundering, one count of failure to file required reports of cash transactions, and three counts of structuring transactions in order to evade cash reporting requirements. CALMES MOTORSPORTS was convicted of one count of failure to file required reports of cash transactions and three counts of structuring transactions in order to evade cash reporting requirements.
KEVIN PAUL CALMES was sentenced to a 30 month term of imprisonment, two years of supervised release, and forfeiture of all property involved in, or used to facilitate, the money laundering and structuring transactions, including forfeiture of $24,927.99 associated with the sale of two particular motorcycles.
CALMES MOTORSPORTS was a Denham Springs dealership which marketed and sold motorcycles and all-terrain vehicles to the public. KEVIN PAUL CALMES was the sales manager of CALMES MOTORSPORTS, L.L.C. In his role at the dealership, KEVIN PAUL CALMES negotiated and knowingly approved of sales with known drug traffickers, and took various actions to conceal their spending of large amounts of cash generated from narcotics trafficking.
At trial, the United States presented evidence that CALMES MOTORSPORTS, L.L.C. and KEVIN PAUL CALMES conspired with at least seven drug traffickers to launder proceeds of narcotics trafficking and to avoid filing reports of their use of cash greater than $10,000. The laundering of drug traffickers’ cash proceeds occurred between January 2000 and April 2009.
CALMES MOTORSPORTS, L.L.C. was sentenced to pay a fine of $500,000, placed on probation for three years, and ordered to forfeit property involved in, or used to facilitate, the money laundering and structuring transactions. As a condition of probation, the company was also sentenced to certain conditions which will monitor their finances and business operation.
The convictions and sentences are the result of a lengthy investigation by agents of the Internal Revenue Service-Criminal Investigations. The case was prosecuted by Assistant United States Attorneys Rene Salomon and Shubhra Shivpuri.
Californian Charged with Violating Drug, Money Laundering LawsRead the Press Release
PITTSBURGH, Pa. - A resident of California has been indicted by a federal grand jury in Pittsburgh on a charges of violating federal drug and money laundering laws, United States Attorney David J. Hickton announced today.
The two-count superseding indictment named Marlowe Dewayne Wheeler, a/k/a Marzuq Mohammed, a/k/a Marquz Muhamed, 40, as the sole defendant. His charges mirror those faced by over 20 defendants in the pending case of United States v. Ruben Mitchell, et al. at Criminal No. 09-105.
According to the superseding indictment presented to the court, from 2000 through 2010, in the Western District of Pennsylvania and elsewhere, Wheeler conspired with others to distribute and possess with the intent to distribute five kilograms or more of cocaine and launder drug money.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Internal Revenue Service-Criminal Investigation conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
California Man Pleads Guilty to Failure to Report Foreign Bank Accounts at UBSRead the Press Release
Christopher B. Berg of Portola Valley, Calif., entered a plea of guilty today before the U.S. District Court in San Jose, Calif., to an information charging him with willful failure to file the required report of foreign bank account (FBAR) for an account he controlled at UBS in Switzerland in the year 2005.
According to the information, in 1999, Berg began working as a consultant. In 2000, Berg met with Beda Singenberger, a Swiss financial consultant, and a vice president of banking at UBS in San Francisco regarding setting up a bank account at UBS in Switzerland to shelter a portion of his consulting income from taxation. Beginning in 2001 and continuing through 2005, funds representing $642,069 in compensation earned by Berg from consulting services were deposited by wire transfer to UBS accounts. Berg used the money in these accounts at UBS in Switzerland to purchase a vehicle, to obtain cash while in Europe, and to pay the balance on a Eurocard he used while traveling in Europe. Berg did not disclose the existence of his accounts at UBS in Switzerland to his certified public accountant, and did not disclose the income earned by these accounts or the consulting income deposited to the accounts. The tax harm associated with Berg?s conduct is $270,757.
"Individuals who shirk their civic duty and evade taxes by hiding their income and assets in offshore accounts are making a very poor choice," said Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division. "They risk criminal prosecution and jail, still owe the taxes due and may lose most of those assets to severe civil penalties.?"
?Those who hide their assets and income in offshore accounts should realize that there is no safe haven from the IRS,? said Richard Weber, Chief Internal Revenue Service Criminal Investigation. ?Mr. Berg admitted he disregarded his legal responsibility to file the required report of a foreign bank account and report all his income and interest. He now faces substantial monetary penalties and the risk of incarceration. Combating offshore tax evasion continues to be one of the IRS? top priorities.?
United States citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. Additionally, U.S. citizens and residents must file an FBAR with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.
Sentencing has been scheduled for July 8, 2013. Berg faces a maximum penalty of five years in prison and a fine of up to $250,000.
The case was investigated by IRS - Criminal Investigation and prosecuted by trial attorneys from the Tax Division.
Businessman Sentenced to Federal Prison on Tax ChargesRead the Press Release
PROVIDENCE, R.I. – William L’Europa, 47, of Scituate, co-operator of McCauley and L’Europa Public Adjusters, LLC and PIA Restoration, LLC, was sentenced today to 27 months in federal prison, to be followed by three years of supervised release, for conspiring to defraud the United States government and filing false tax returns.
L’Europa’s business partner, former state legislator John J. McCauley, Jr., 54, of Cranston, was sentenced on December 21, 2012, to 27 months in federal prison, to be followed by three years supervised release.
At the time of their guilty pleas before U.S. District Court Chief Judge Mary M. Lisi, who imposed the sentences, L’Europa and McCauley admitted to the court that they underreported business receipts for tax years 2007 – 2010 by nearly $1.8 million dollars, resulting in the underpayment of federal taxes to the Internal Revenue Service of more than $500,000.
According to signed plea agreements filed with the court, McCauley and L’Europa must file accurate, amended federal tax returns for tax years 2007 – 2011.
L’Europa’s sentence was announced by United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service (IRS), Criminal Investigation; Richard Deslauriers, Special Agent in Charge of the FBI’s Boston Field Office; Guy N. Thomas, Special Agent in Charge of the Boston Field Office of ATF; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
The case was prosecuted by Assistant U.S. Attorneys William J. Ferland and Sandra R. Hebert.
The matter was investigated by IRS-Criminal Investigation, FBI, ATF, Rhode Island State Police, and the Providence Fire Department Fire Prevention Division.
Contact: 401-709-5357
[email protected]Brooke County Resident Enters Plea of Guilty to Mailing Threatening CommunicationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - A 42 yera old Brooke County, West Virginia, resident entered a plea of guilty on January 29, 2013, in United States District Court in Wheeling before Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that: JAMES W. RICHARD entered a plea of guilty to “Mailing Threatening Communications.” RICHARD, who was previously convicted in Brooke County Circuit Court of breaking and entering, domestic assault X2 and brandishing a deadly weapon, was incarcerated at the Northern Regional Jail and Correctional Center in Moundsville. On April 16, 2012, while incarcerated, RICHARD deposited and mailed a letter which contained threats to injure individuals involved in his underlying criminal convictions in Brooke County. RICHARD, who is in custody pending sentencing, faces up to 5 years imprisonment and a $250,000 fine.
The case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and investigated by the United States Postal Inspection Service.
Bridgeport Men Involved in Gang-related Narcotics Trafficking Sentenced to PrisonRead the Press Release
January 30, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that two men involved in a violent narcotics trafficking ring in Bridgeport were sentenced earlier this week in New Haven federal court to lengthy prison terms.
On January 28, United States District Judge Janet Bond Arterton sentenced STEFAN WINSTON, also known as “Cuda” and “Pooh,” 31, to 165 months of imprisonment and five years of supervised release. On January 29, Judge Arterton sentenced ALEXIS RAMOS, also known as “Snake Rattle,” 31, to 100 months of imprisonment and four years of supervised release.
This matter stems from “Operation Slim Fast,” a joint law enforcement investigation that focused on two drug trafficking organizations, one that operated out of Bridgeport and one that operated out of Bridgeport, Puerto Rico, and Springfield, Mass. In 2010, members of the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force initiated an investigation of narcotics trafficking activity in and around the Marina Village Housing Complex in Bridgeport that focused primarily on the Marina Village Bloods, a violent narcotics trafficking organization. Members of the Marina Village Bloods have been responsible for, or connected to, multiple shootings in Bridgeport.
According to court documents and statements made in court, WINSTON, RAMOS and others were members of the Sex, Money, Murder set of the Marina Village Bloods and sold large quantities of narcotics from an abandoned residence at 105/107 Johnson Street, which is located across from the street from the Marina Village Housing Complex. On multiple occasions, gang members were intercepted over court-authorized wiretaps discussing their narcotics trafficking activities. The wiretapped conversations further revealed that members of the Marina Village Bloods alternately referred to the Johnson Street residence as the “kitchen,” “trap” or “white house.”
The investigation revealed that, in addition to narcotics trafficking, WINSTON was involved in the straw purchase of two firearms, and also possessed and used firearms on a regular basis. At the time of his arrest on January 5, 2011, WINSTON possessed an assault rifle and a handgun, both of which were loaded.
On August 16, 2011, WINSTON pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and 28 grams or more of cocaine base (“crack cocaine”). His criminal history includes multiple felony convictions, including convictions for unlawful possession of a firearm and armed robbery.
On August 14, 2012, RAMOS pleaded guilty to one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base. His criminal history includes multiple convictions for sale and possession of narcotics and possession of weapons.
WINSTON and RAMOS have been detained since their arrests on January 5, 2011.
As a result of this investigation, 19 individuals have been charged in federal court with various narcotics and firearms related offenses, and law enforcement officers seized approximately four kilograms of cocaine, one kilogram of crack cocaine, a quantity of heroin, an SKS assault rifle, five handguns and more than $150,000 in cash.
This matter was investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force – which is composed of personnel from the FBI, the Bridgeport, Norwalk and Trumbull Police Departments – with assistance from the United States Marshals Service, Internal Revenue Service – Criminal Investigation, Drug Enforcement Administration, Connecticut State Police, and Hartford, Stratford and Stamford Police Departments.
The case is being prosecuted by Assistant United States Attorneys Tracy Dayton, Doug Morabito and Jonathan Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Braxton County Resident Sentenced on Methamphetamine ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA - A 37 year old Shock, West Virginia, resident was sentenced on January 29, 2013, in United States District Court in Clarksburg by Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, announced that: DANIEL RAY KING was sentenced to 6 months imprisonment to be followed by two years of supervised release with the first six months of his supervised release to be served under home confinement. KING entered a plea of guilty on October 5, 2012, to “Possession of Material used in the Manufacture of Methamphetamine” on February 1, 2012, in Gilmer County, West Virginia.
KING, who is on bond, will self report to the designated Federal institution on March
4, 2013.The case was prosecuted by Assistant United States Attorney Stephen D. Warner and was investigated by the West Virginia State Police.
Bethlehem Man Sentenced to 70 Months’ Imprisonment for Committing Six Bank RobberiesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge James M. Munley today sentenced Fawzi Atra, age 43, of Bethlehem, Pennsylvania, to 70 months’ imprisonment for the robbery of six financial institutions in Pennsylvania and New Jersey.
Atra had previously pleaded guilty to all six counts that were contained in a Criminal Information charging the following robberies:
- KNBT BANK, located at 2170 Union Boulevard, Bethlehem, Pennsylvania, on April 3, 2012; - PNC BANK, located at 307 West Route 70, Marlton, New Jersey, on April 4, 2012; - PNC BANK, located at 942 West Street Road, Warminster, Pennsylvania, on April 11, 2012; - PNC BANK, located at 800 Denow Road, Unit F, Pennington, New Jersey, on April 14, 2012; - QNB BANK, located at 901 South West End Boulevard, Quakertown, Pennsylvania, on April 17, 2012; and
- ESSA BANK & TRUST, located at 601 Route 940, Mount Pocono, Pennsylvania, on April 19, 2012.A police officer with the Pocono Mountain Regional Police Department arrested Atra shortly after the ESSA BANK & TRUST robbery on April 19, 2012. A search incident to the arrest revealed the presence of the money stolen from the Essa Bank and a pellet gun. Atra has been detained in federal custody since his arrest.
In additional to the 70-month term of imprisonment, Judge Munley also ordered that Atra be placed on supervised release for a period of three years following the service of his sentence. Judge Munley further specified that the supervised release term would be on a non-reporting basis in the event that Atra is deported to Jordan, his country of citizenship, following service of his sentence. In addition, Judge Munley ordered that Atra make restitution of $9,688, representing the total amount of money netted as a result of the six robberies.
The case was investigated by special agents of the Federal Bureau of Investigation, the Pocono Mountain Regional Police Department, the Richland Township, Pennsylvania Police Department, the Bethlehem, Pennsylvania Police Department, the Evesham Township, New Jersey Police Department, the Hopewell, New Jersey Police Department, and the Warminster, Pennsylvania Police Department. The case was prosecuted by Assistant United States Attorney John Gurganus.Bergen County, N.J., Man Admits His Role in Large-Scale Identity Theft Ring and Tax EvasionRead the Press Release
NEWARK, N.J. – A Bergen County man today admitted his role in a large-scale and sophisticated identity theft scheme, U.S. Attorney Paul J. Fishman announced.
Sang-Kyu Seo, 63, of Palisades Park, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden to a five-count Information that charged him with conspiracy to unlawfully produce identification documents and false identification documents (Count One), aggravated identity theft (Count Two), conspiracy to commit wire fraud (Count Three); conspiracy to commit bank fraud (Count Four), and tax evasion (Count Five). He was arrested on Sept. 16, 2010, and released on $250,000 bail.
According to documents filed in this case and statements made in Newark federal court:
Seo was the owner and operator of Hang Jin Yi Inc., d/b/a Hwangini, a salon located in North Bergen, N.J., and Pier 7 Corporation, a purported small business located in Palisades Park. Seo conspired with Sang-Hyun Park, a/k/a “Jimmy,” and others to obtain a Social Security card beginning with the prefix “586” for another individual. These “586” Social Security cards were issued by the United States to individuals, usually from China, who were employed in American territories, such as Guam. Park is alleged to have been the leader of a criminal organization headquartered in Bergen County, N.J. that obtained, brokered, and sold identity documents to customers for the purpose of committing credit card fraud, bank fraud, tax fraud, and other crimes. Park pleaded guilty on Jan. 9, 2012, to his role in the enterprise and is awaiting sentencing.
The Park Criminal Enterprise engaged in the fraudulent “build up” of credit scores associated with the Chinese identities. They did so by adding the Chinese identity as an authorized user to the credit card accounts of various co-conspirators who received a fee for this service – members of the enterprise’s credit build up teams. By attaching the Chinese identities to these existing credit card accounts, the teams increased the credit scores associated with the Chinese identities to between 700 and 800. The members of the build up teams knew neither the real person to whom the identity belonged nor virtually any of the customers who had purchased the identities.
After building up the credit associated with these identities, Park and his co-conspirators directed, coached, and assisted the customers in opening bank accounts and obtaining credit cards. Park and his co-conspirators then used these accounts and credit cards to commit fraud. In particular, Park relied on several collusive merchants who possessed credit card processing, or swipe, machines. For a fee, known as a “kkang fee,” these collusive merchants charged the fraudulently obtained credit cards, although no transaction took place. After receiving the money into their merchant accounts from the credit cards related to these fraudulent transactions, the collusive merchants gave the money to Park and his co-conspirators, minus their “kkang fee.”Seo admitted that he obtained a “586” Social Security card and counterfeit driver’s licenses through Park for a family member, who then used this identity to “bust out” credit cards.
Seo also admitted that he gave his corporate and personal credit cards to Park for the purpose of “busting out” these maxed out credit cards. In furtherance of this conspiracy, Park and his co-conspirators issued worthless checks, drawn on bank accounts that had been established using the “586” identities, as payment toward the balances on Seo’s credit cards. Before the banks and credit card companies realized that these checks were bogus, Park and his co-conspirators charged Seo’s credit cards through collusive merchants or used them to purchase merchandise. On Oct. 3, 2009, Park and Seo spoke over the phone concerning this scheme. During this intercepted call, the following conversation ensued:
Park: You know it. If you don't pay for the debt, the score becomes bad.
Seo: That's right. Anyhow, it was already dropped.
Park: And then, you don't have to worry about if someone will come from a bank.
Seo: Yes, yes. Anyway, later . . . . I will declare Chapter 7 or Chapter 13 bankruptcy.
Seo also admitted that in mid-2007, with the assistance of a loan broker, fraudulently obtained a $100,000 commercial loan on behalf of Pier 7. Seo admitted that he and the loan broker made false statements to obtain the loan, including falsely representing this his business’ annual revenue was approximately $620,000.
Finally, Seo admitted that he committed tax evasion by issuing checks to himself and others, representing income derived through the operation of Hwangini, and then failing to report this income on his personal tax returns. For example, Seo admitted that on or about April 15, 2008, he filed an individual income tax return for tax year 2007. This return declared that his taxable income for calendar year 2007 was approximately $197, and the amount of tax due and owing was approximately $19. Seo admitted that this return failed to include $304,848 in additional taxable income that he had received in 2007, thus having an additional tax of $81,643 due and owing to the United States.
Seo faces the following statutory maximums: 15 years in prison (Count One); two years in prison, mandatory minimum (Count Two); 30 years in prison (Counts Three and Four); and five years in prison (Count Five). Sentencing is scheduled for May 14, 2013.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special
Agent in Charge David Velazquez in Newark; IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; the Department of Homeland Security’s
Immigration and Customs Enforcement, under the direction of Special Agent in Charge Andrew M. McLees; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli and the Office’s Chief of Detectives Steven Cucciniello, for the investigation leading to today’s plea.The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
As for other members of the Park Criminal Enterprise, the charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense Counsel: Wanda M. Akin Esq., Newark
Seo Information
Baltimore Man Indicted on Gun and Drug Conspiracy Charges Resulting in Two MurdersRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Kyle Stevens, a/k/a “Cappo,” age 22, of Remington, Maryland, on two counts of use of a firearm in furtherance of a drug conspiracy related to two murders and one count of conspiracy to distribute and possess with intent to distribute heroin, cocaine, crack cocaine and oxycodone. The indictment was returned on January 17, 2013, and unsealed on January 29, 2013, upon Stevens’ arrest.
The indictment 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; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; Anne Arundel County Police Chief Larry W. Tolliver; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Anne Arundel County State’s Attorney Frank R. Weathersbee.
The three-count indictment alleges that beginning in 2005 Stevens was part of a conspiracy to distribute heroin, powder and crack cocaine, and oxycodone. Further, the indictment alleges that in furtherance of the drug conspiracy, on January 24, 2006, Stevens used a .45 caliber semiautomatic handgun to murder James Wright, a/k/a Ronnie Mo; and on September 21, 2007, used a .380 caliber semiautomatic handgun to murder Keith Ray, a/k/a Keithy.
Stevens faces a maximum sentence of life in prison for each of two counts of use of a firearm in furtherance of a drug conspiracy, and for the drug conspiracy charge. Stevens had his initial appearance on January 29, 2013 in U.S. District Court in Baltimore. Stevens is detained. A detention hearing is scheduled for Monday, February 4, 2013, at 11:30 a.m., before U.S. Magistrate Judge Beth P. Gesner, Courtroom 7B, U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Mr. Rosenstein praised the FBI, ATF, Maryland Department of Public Safety and Correctional Services; Baltimore County Police Department; Anne Arundel County Police Department; Baltimore City Police Department; the Maryland State Police; Baltimore County State’s Attorney’s Office; Baltimore City State’s Attorney’s Office; and Anne Arundel County State’s Attorney’s Office for their assistance in this investigation and prosecution.
United States Attorney Rod J. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Atlantic County, N.J., Man Sentenced to 151 Months in Prison for Bank RobberyRead the Press Release
CAMDEN, N.J. – An Atlantic County, N.J., man was sentenced today to 151 months in prison for robbing Wells Fargo Bank in Atlantic City, N.J., and Sun National Bank in Ventnor, N.J., on Jan. 12, 2012, U.S. Attorney Paul J. Fishman announced.
Larry Patrick Kearns, 46, of Landisville, N.J., previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an Information charging him with two counts of bank robbery. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Jan. 12, 2012, Kearns entered a Wells Fargo Bank in Atlantic City, approached a bank teller, threatened her, and demanded money from her. The bank teller complied with Kearns’ demand, and Kearns fled the bank with the money. Kearns traveled to Margate, N.J., and stole a car, which he used in the robbery of the Sun National Bank in Ventnor that same day. Again, Kearns approached a bank teller, threatened her, and demanded money from her. The bank teller complied and Kearns fled the bank with the money in the stolen car. While fleeing from the robbery, Kearns crashed the stolen car into a tree and was apprehended by police.
In addition to the prison term, Judge Simandle sentenced Kearns to three years of supervised release and ordered him to pay $9,458 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent In Charge David Velazquez in Newark, as well as the Atlantic City Police Department, the Ventnor Police Department, the Margate Police Department and the Atlantic County Prosecutor’s Office for the investigation leading to today’s sentence.
The government was represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, CamdenAssistant Attorney General Lanny A. Breuer Announces Departure from Department of JusticeRead the Press Release
The Justice Department announced today that Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division will leave the department on March 1, 2013.
“Lanny has led one of the most successful and aggressive Criminal Divisions in the history of the Department of Justice, accomplishing record penalties in corruption cases at home and abroad and dismantling major organized crime and health care fraud networks around the country while also protecting the integrity of our banking systems and fighting financial fraud,” said Attorney General Eric Holder. “Throughout his tenure, Lanny has demonstrated an unwavering commitment to the mission of this Department and I want to thank him for his dedication and exceptional service.”
“Serving as Assistant Attorney General for the Criminal Division has been the greatest privilege of my professional life,” said Assistant Attorney General Breuer. “From my first day on this job, nearly four years ago, I have loved it, and I am so proud of what the Criminal Division has accomplished over the past four years. I have had no higher honor than to work alongside the talented and dedicated men and women of the Criminal Division, and I will forever be grateful for the opportunity to serve the American people together with them.”
Assistant Attorney General Breuer was unanimously confirmed by the U.S. Senate on April 20, 2009, and is the longest-serving head of the Criminal Division in recent history.
Under the leadership of Assistant Attorney General Breuer, the Criminal Division has taken significant steps to fight corruption at home and abroad, including by developing the innovative Kleptocracy Asset Recovery Initiative to identify and forfeit the proceeds of foreign official corruption – ensuring that corrupt officials from other countries are prevented from hiding their ill-gotten gains in the United States. The Criminal Division has also substantially increased enforcement of the Foreign Corrupt Practices Act (FCPA), convicting three dozen individuals for FCPA-related offenses – a record number – and entering into more than 40 corporate resolutions involving eight of the top 10 largest FCPA penalties in history. The Criminal Division also partnered with the Securities and Exchange Commission to publish groundbreaking guidance on FCPA enforcement.Assistant Attorney General Breuer was asked by the Attorney General to oversee the Deepwater Horizon Task Force – created to investigate conduct leading up to, and following, the Deepwater Horizon explosion on April 20, 2010. The Task Force reached the largest criminal resolution in U.S. history with BP. On Jan. 29, 2013, BP was ordered to pay $4 billion in criminal fines and penalties after previously having agreed to plead guilty to 11 felony manslaughter charges, environmental crimes and obstruction of congress. The Criminal Division brought charges against four individuals in connection with the explosion and its aftermath as part of the ongoing investigation. Additionally, Assistant Attorney General Breuer has overseen efforts to combat fraud arising from the oil spill, as well as to detect and deter fraud in the wake of natural disasters such as Hurricane Sandy, through the Disaster Fraud Task Force.
Protecting the integrity of the banking system and fighting financial fraud have been hallmarks of the Criminal Division during Assistant Attorney General Breuer’s tenure. The division’s aggressive, ongoing investigation into manipulation of the London Interbank Offered Rate by global financial institutions has thus far led to nearly $2 billion in criminal penalties, as well as a guilty plea by a UBS subsidiary and charges against individuals. Assistant Attorney General Breuer also spearheaded the development of the division’s Money Laundering and Bank Integrity Unit to pursue financial institutions and individuals who violate money laundering statutes and the Bank Secrecy Act. Along with U.S. Attorney partners, the groundbreaking unit already has secured approximately $3.1 billion in criminal forfeitures from major financial institutions – including the largest forfeiture ever by a bank.
The Criminal Division has also prosecuted, together with U.S. Attorneys’ Offices, numerous significant perpetrators of financial fraud, including Lee Bentley Farkas, former chairman of Taylor, Bean & Whitaker, who perpetrated an approximately $3 billion bank fraud; and R. Allen Stanford, former chairman of Stanford International Bank, who perpetrated a $7 billion investment fraud scheme. Both were convicted at trial and are serving 30 and 110 years in prison, respectively.
Assistant Attorney General Breuer has also focused on combating healthcare fraud, helping to expand the Medicare Fraud Strike Force from two to nine cities and to carry out the two largest Medicare fraud takedowns in history, one involving 111 defendants charged and the other involving $452 million in alleged fraudulent billings.
The Criminal Division under Assistant Attorney General Breuer’s leadership, working alongside its partners at U.S. Attorneys’ Offices, has pursued innovative cybercrime and intellectual property crime prosecutions. Those prosecutions include the indictment of Megaupload and its leadership for intellectual property infringement in one of the largest criminal copyright cases brought by the United States.
During Assistant Attorney General Breuer’s tenure, the Criminal Division has made great strides in the fight against violent crime along the southwest border and across the country. Among other successes, the division, along with several U.S. Attorneys’ Offices, brought charges against 127 members and associates of La Cosa Nostra in the largest traditional organized crime takedown in U.S. history. The Criminal Division and U.S. Attorney partners also have brought prosecutions against 35 Barrio Azteca gang members and associates – including those allegedly responsible for the death of a U.S. Consular official and others in Juarez, Mexico, on March 13, 2010; individuals allegedly responsible for the murder of ICE Special Agent Jaime Zapata; and dozens of members and associates of the Aryan Brotherhood of Texas, including the gang’s top “generals.” Assistant Attorney General Breuer has traveled frequently to Mexico to develop close relationships with Mexican counterparts and created new prosecutorial units dedicated to targeting Mexican cartels and seizing their assets. In 2012, the Criminal Division secured 115 extraditions from Mexico, a record for a calendar year.
Along with these new or expanded teams and initiatives, Assistant Attorney General Breuer has taken significant steps to reform the Criminal Division to meet the needs of the modern law enforcement climate, including creating the Organized Crime and Gang Section and the Human Rights and Special Prosecutions Section, and hiring hundreds of talented prosecutors and several new Section Chiefs into the division.
In his role as head of the Criminal Division, Assistant Attorney General Breuer has engaged on issues of criminal law policy throughout the United States and around the world, delivering dozens of keynote and special addresses across the country as well as in Russia, the Ukraine, the United Kingdom, Romania, Sweden, Liechtenstein, Spain and at the World Bank and United Nations.
Prior to joining the Justice Department, Assistant Attorney General Breuer was a partner in the law firm of Covington and Burling LLP. He earlier served as special counsel to President William Jefferson Clinton, and began his legal career as an Assistant District Attorney in Manhattan. He is a graduate of Columbia College and Columbia Law School.
Armed Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – James P. Perry, 35, of Pawtucket, was sentenced today to 10 years in federal prison on drug and firearm charges, announced United States Attorney Peter F. Neronha and Pawtucket Police Chief Paul King. Perry was arrested by Pawtucket Police on March 15, 2012, during an undercover investigation into the trafficking of crack cocaine.
U.S. District Court Judge John J. McConnell, Jr., also ordered Perry to serve three years supervised release upon completion of his prison term. Perry pleaded guilty on August 1, 2012, to possession with the intent to distribute cocaine base and being a felon in possession of a firearm.
According to information presented to the court, Pawtucket Police executed a court authorized search of Perry’s Pawtucket residence on March 15, 2012, and seized approximately 4.5 grams of crack cocaine; a .357 revolver, a speed loader and 50 rounds of ammunition; and various items used in the preparation, packaging and sale of crack cocaine.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Pawtucket Police in the investigation of the firearm seized in this is matter.
Contact: 401-709-5357
[email protected]Arizona Man Sentenced in Methamphetamine CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Scottsdale, Arizona man was sentenced on January 28, 2013 by United States District Judge Karen E. Schreier.
David Scott Wright, age 49, was indicted by a federal grand jury on May 1, 2012 for conspiracy to distribute 50 grams or more of a mixture containing methamphetamine. He pled guilty to the offense on November 6, 2012. He was sentenced to 37 months in custody to be followed by 4 years of supervised release.
Wright was part of a group of people who agreed to distribute methamphetamine in South Dakota and elsewhere. Between August 2011 and January 2012, Wright distributed methamphetamine to co-conspirators who had traveled to Arizona and then returned to South Dakota to distribute the drug.
This case was investigated by the SD Division of Criminal Investigation and the US Drug Enforcement Administration. Assistant US Attorney John E. Haak prosecuted the case.
Wright was immediately turned over to the custody of the US Marshal.
Anmoore Resident Enters Plea to Distribution of Crack Cocaine Within 1,000 Feet of A Protected LocationRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA - A 60-year old Anmoore, West Virginia, resident entered a plea of guilty on January 29, 2013, in United States District Court in Clarksburg before Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, announced that: RAYMOND RITCH a/k/a “RAY” entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 feet of the Clarksburg City Park” on March 22, 2012. RITCH, who is in custody pending sentencing, faces a sentence of at least 1 and up to 40 years imprisonment and a $2,000,000 fine.
The case was prosecuted by Criminal Chief Shawn A. Moran and investigated by the
Greater Harrison County Drug and Violent Crime Task Force.Albuquerque Man Charged with Robbing Pharmacy at Gunpoint to Obtain Prescription PainkillersRead the Press Release
Defendant Charged with Violating Safe Doses ActALBUQUERQUE – James Phillip Tafoya, 42, of Albuquerque, N.M., made his initial appearance in federal court this morning on a three-count indictment charging him with (1) violating the Hobbs Act by robbing a business involved in interstate commerce, (2) using a firearm in relation to a crime of violence, and (3) theft of medical products. Tafoya remains in custody pending his arraignment and detention hearing which are scheduled for Jan. 31, 2013.
Count 1 of the indictment alleges that Tafoya robbed an employee of an Albuquerquearea CVS Pharmacy at gunpoint on Nov. 3, 2012, and stole Oxycodone and Oxycontin. Count 2 alleges that Tafoya used a firearm to perpetuate the robbery, and Count 3 alleges that Tafoya violated the Safe Doses Act by using violence and the threat of violence to unlawfully take preretail medical products.
The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs. The Act provides for enhanced sentences for individuals who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.
If convicted, Tafoya faces a maximum sentence of 20 years in prison on the Hobbs Act charge and 30 years in prison on for theft of medical products charge. If convicted on the firearms charge, Tafoya will be sentenced to a mandatory seven-year term of imprisonment to be served consecutive to any prison term imposed on the other two charges.
U.S. Attorney Kenneth J. Gonzales said that this case was brought as part of a new law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. This new initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under the antiviolence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from our communities for as long as possible.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
29 January 2013
Wellsburg Resident Sentenced for Use of A Stolen ATM CardRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - A 27-year old Wellsburg, West Virginia, resident was sentenced on January 28, 2013, in United States District Court in Wheeling by Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that: LINDSEY OILER was sentenced to 4 months imprisonment to be followed by three years of supervised release and ordered to make restitution in the amount of $7,083.
OILER entered a plea of guilty on October 29, 2012, to Access Device Fraud. According to Court records, OILER stole an ATM card and proceeded to use it 42 times between July 10 and July 28, 2011, stealing $7,083. OILER was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Michael D. Stein and was investigated by the Federal Bureau of Investigation.
Warrior Bank Employee Indicted for EmbezzlementRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Hayden woman for embezzling from the Warrior bank where she worked, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Special Agent in Charge Roy Sexton.
The one-count indictment filed in U.S. District Court charges FRANCES DUCKWORTH, 51, with embezzling from Superior Bank and its successors between November 2009 and August 2012. Duckworth worked as head teller at the Warrior bank branch during that time. The bank is now Cadence Bank.
The indictment seeks to have Duckworth forfeit $202,994 as proceeds of illegal activity.
The embezzlement charge carries a maximum penalty of 30 years in prison and a $1 million fine.
The Secret Service investigated the case, which Assistant U.S. Attorney Henry Cornelius is prosecuting.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Virginia Man Sentenced to Serve 168 Months in Prison on Child Pornography ChargesRead the Press Release
WASHINGTON – An Orange County, Va., man was sentenced today to serve 168 months in prison following his March 2011 guilty plea to child pornography charges that originated in three different federal districts.
The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Heaphy of the Western District of Virginia, U.S. Attorney Neil H. MacBride of the Eastern District of Virginia and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
Anthony C. Jeffries was sentenced by Senior U.S. District Judge Norman K. Moon in the Western District of Virginia. On March 28, 2011, Jeffries pleaded guilty to one count of distributing child pornography and one count of possessing child pornography on charges contained in an indictment filed in the Western District of Virginia and two separate one-count criminal informations originally filed in the Eastern District of Virginia and the Southern District of Florida, each charging him with distributing child pornography. Jeffries was sentenced to 168 months in prison for each count of distributing child pornography and 120 months in prison for possessing child pornography. The prison sentences for each count will be served concurrently. In addition to his prison term, Jeffries was sentenced to serve lifetime supervised release.
According to information presented in court, Jeffries assisted in running an online forum from his Orange County home that was dedicated to posting pictures and chatting about young girls. The defendant was responsible for one-fourth of the images available on the forum.
In February 2010, undercover FBI agents working in Richmond, Va., and Miami logged onto a peer-to-peer file sharing network and downloaded numerous images of child pornography from Jeffries. In June 2010, a search warrant was obtained and computer equipment was seized from the defendant’s Virginia home. A forensic examination of that equipment revealed thousands of image files, including images of young children engaged in sexual acts with adults.
The investigation of the case was conducted by the Orange County Sheriff’s Office, the FBI, the Charlottesville, Va., Police Department, the University of Virginia Police Department and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Assistant U.S. Attorney Nancy Healey and Trial Attorney Darcy Katzin with the Criminal Division’s CEOS are prosecuting the case for the Western District of Virginia. Elizabeth Wu is prosecuting the case for the Eastern District of Virginia.
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.Virginia Man Sentenced to Eight Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
WASHINGTON - John Patrick Swain, 45, of Sterling, Va., was sentenced today to eight years in prison on federal charges of distribution and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Debra Evans Smith, Acting Assistant Director in Charge of the FBI's Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Swain pled guilty to the charges in September 2012 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable James E. Boasberg. Upon completion of his prison term, Swain will be placed on 10 years of supervised release. He also must register as a sex offender for 25 years following his release from prison.
According to the government's evidence, on June 27, 2012, Swain contacted a man he believed to be the father of a 12-year-old girl, using a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next few days, Swain engaged in online conversations with the undercover officer. During this period, Swain sent the undercover officer 13 images of child pornography, including videos of adult men engaged in sexual acts with children.
Upon execution of a search warrant on the defendant’s residence in Sterling, members of the FBI’s Child Exploitation Task Force recovered a desktop computer as well as various external storage devices containing numerous videos and images of child pornography.
This case was brought as part of the Department of Justice’s Project Safe Childhood initiative and investigated by the FBI’s Child Exploitation Task Force, which includes members of the FBI’s Washington Field Office and MPD. Project Safe Childhood is 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 the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Acting Assistant Director in Charge Smith and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-031Two Plead Guilty, Face up to Life in Federal Prison in Record Seizure of 19 Kilos of HeroinRead the Press Release
PROVIDENCE, R.I. – Jorge Daniel Estrada of Providence, R.I., and Angel Feliz of Dorchester, Mass., face up to life in federal prison, after pleading guilty in U.S. District Court in Providence today to drug trafficking charges in connection with the single largest seizure of pure heroin from the streets of Rhode Island.
The seizure of 19 kilos of pure heroin valued at approximately $4.5 million, and the arrest of Estrada and Feliz in October 2012, was prompted by information developed by Providence Police detectives during an on-going investigation into street-level drug dealing. A joint investigation by Providence Police and the Drug Enforcement Administration (DEA) Drug Task Force resulted in the seizure of the heroin and the arrest of Estrada and Feliz.
Estrada pleaded guilty to one count of possessing with the intent to distribute one kilogram or more of heroin, punishable by a maximum sentence of up to life imprisonment, with a mandatory minimum sentence of 10 years in federal prison; up to a term of supervise release for life, with a minimum mandatory term of 5 years; and a fine of up to $10,000,000.
Feliz pleaded guilty to one count of attempting to possess with the intent to distribute one kilogram or more of heroin, punishable by a maximum sentence of up to life imprisonment, with a mandatory minimum sentence of 10 years in federal prison; up to a term of supervise release for life, with a minimum mandatory term of 5 years; and a fine of up to $10,000,000.
The guilty pleas were announced by United States Attorney Peter F. Neronha; Providence Public Safety Commissioner Steven M. Paré; Providence Police Chief Colonel Hugh T. Clements, Jr.; John J. Arvanitis, Special Agent in Charge of the DEA’s New England Field Division; and Rhode Island Attorney General Peter F. Kilmartin
According to information provided to the court, an individual previously arrested by Providence Police for the alleged possession of narcotics agreed to cooperate with law enforcement to arrange controlled deliveries of heroin. Two deliveries of a kilo of heroin took place on the evening of October 23, 2012, and on the following afternoon, witnessed by a team of law enforcement agents and officers from the DEA Drug Task Force and Providence Police. The drugs were quickly seized by law enforcement.
Later in the day on October 24, 2012, the informant working with law enforcement received a call and was provided with a location to meet with a person who would be traveling from Massachusetts to Rhode Island to pick-up the two kilos of heroin. Law enforcement provided the informant with two fake kilos of heroin and watched as the delivery was made.
A search of Estrada’s Providence residence resulted in the seizure of an additional 17 kilos of heroin.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
Estrada is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on April 18, 2013. Feliz is scheduled to be sentenced on May 9, 2013.
Contact: 401-709-5357
[email protected]Two Pembroke, Georgia Brothers Sentenced to Life Imprisonment for Role in Two KidnappingsRead the Press Release
STATESBORO, GA - Antonio Lamont Murray, 39, and Cecil DeWitt Nelson, 33, two brothers from Pembroke, Georgia, were each sentenced to life in prison today by Senior U.S. District Court Judge B. Avant Edenfield for their roles in two separate kidnappings in the Bryan County area. For additional firearm convictions associated with the kidnappings, Murray was also sentenced to a consecutive 57-year prison sentence. There is no parole in the federal system.
United States Attorney Edward J. Tarver stated, “The kidnappings committed by these defendants and others were violent and shameless. Because of timely action by the FBI and its partners in the law enforcement community, the United States Attorney’s Office was able to prosecute those responsible for these horrendous crimes. The United States Attorney’s Office will continue to have as its highest priority the protection of U.S. citizens.”
Murray was convicted of conspiracy to commit kidnapping, two kidnappings, three firearm charges and obstruction by a federal jury after a three-day trial in August, 2012. Nelson pleaded guilty to conspiracy to commit kidnappings shortly before trial. The evidence presented during Murray’s trial and Nelson’s guilty plea hearing revealed that Murray, Nelson and others conspired to commit two separate kidnappings in the Bryan County area in late 2011 and early 2012. The first kidnapping occurred on December 1, 2011. During this incident, the victim was abducted at gunpoint and later released only after a ransom was paid. The second kidnapping occurred on January 12, 2012. The second victim was also abducted at gunpoint and released only after a ransom was paid. A codefendant, Gary Lenion McDonald, 36, from Pembroke, pled guilty to his role in the kidnappings and testified against Murray at trial. McDonald’s sentencing date has yet to be scheduled.
The convictions of Murray, Nelson and McDonald resulted from a joint investigation by the FBI, the U.S. Marshals, NCIS, the Georgia Bureau of Investigation, the Georgia State Patrol, the Bryan County Sheriff’s Office, the Tattnall County Sheriff’s Office, the Bulloch County Sheriff’s Office, the Liberty County Sheriff’s Office, the Richmond Hill Police Department, the Pooler Police Department, the Pembroke Police Department and the Hinesville Police Department.
Assistant United States Attorneys Brian T. Rafferty and Carlton R. Bourne, Jr. prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.