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28 January 2013
Federal Grand Jury Indicts North Texas Men in $2.6 Million Stolen Refund Identity Theft Fraud ConspiracyRead the Press Release
DALLAS — A federal grand jury in Dallas has returned an indictment charging Tonderai Sakupwanya and Reminico Zhangazha each with one count of conspiring to commit mail fraud and wire fraud stemming from a federal income tax refund identity theft scheme they ran from May 2009 through May 2012. Sakupwanya is scheduled to make his initial appearance in federal court this afternoon before U.S. Magistrate Judge David L. Horan. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made today’s announcement.
Sakupwanya, aka “Pound, Webster Rice, Floyd Roberts and Floyd Robbins,” is presently in federal custody, having pleaded guilty in October 2012 to an Information, filed in the Northern District of Texas, charging false use of a passport. He faces up to 10 years in prison and a $250,000 fine for that conviction; sentencing is set for March 18, 2013.
Zhangazha, aka “Boss Remy,” “Martin V. Masters and Roy Daniel Black,” is presently in federal custody in the Eastern District of Texas, where he has pleaded guilty to one count of making a false statement in the use of a passport. According to the factual resume filed in that case, Zhangazha is a citizen of Zimbabwe, with permission to temporarily reside in the U.S.
The indictment, returned last week in Dallas, alleges that Sakupwanya and Zhangazha conspired together, and with others, to commit mail fraud and wire fraud to obtain approximately $2.6 million in federal income tax refunds by electronically filing multiple fraudulent income tax returns containing stolen personal identification information.
As part of the stolen identity refund fraud conspiracy, according to the indictment, the defendants obtained personal identifying information from other persons without their knowledge or authorization. They also obtained electronic filing identification numbers “EFIN” that were assigned by the Internal Revenue Service (IRS) to professional tax preparers. To further the conspiracy, according to the indictment, using fraudulent identification, the defendants rented private mail boxes to establish mailing addresses and established bank accounts at various financial institutions to receive the fraudulently obtained tax refunds.
The indictment alleges the defendants prepared fraudulent income tax returns by using the stolen identities and used false income and withholding information to produce a purported tax refund. They then electronically filed the fraudulent returns which resulted in approximately $2.6 million in fraudulently obtained funds to be deposited into bank accounts they controlled. According to the indictment, they withdrew the cash and used it for their personal use and enjoyment.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, each of the defendants faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. In addition, the indictment includes a forfeiture allegation which would require the defendants, upon conviction, to forfeit to the U.S. any proceeds traceable to the offense, including approximately $105,000 seized in May 2012 from Zhangazha’s vehicle, his apartment and a residence on Spring Mountain Drive in Plano, Texas.
In September 2012, the Department of Justice announced a new directive to further the efforts of the Department’s Tax Division and U.S. Attorneys’ Offices to respond quickly and effectively to fight stolen identity refund fraud.
The case is being investigated by IRS Criminal Investigation. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Fayetteville Mine Safety Trainer Sentenced to 3 Years’ Probation for Cocaine DistributionRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Fayetteville man was sentenced on Jan. 24 to three years’ probation for cocaine distribution. Gerald Wayne Hopkins, 52, of Fayetteville, Fayette County, W.Va., a mine safety instructor, admitted that on February 1, 2012, he sold 2.94 grams of cocaine to an individual cooperating with law enforcement authorities. Hopkins further admitted that the illegal transaction took place at his Fayetteville residence, where he conducted his mine safety training courses.
The Court also ordered Hopkins to pay a $500 fine.
The investigation was conducted by the West Virginia State Police. Assistant United States Attorney John File handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
FCI Petersburg Inmate Sentenced to Life for Advertising Child PornographyRead the Press Release
RICHMOND, Va. – Philip Michael Sebolt, 32, an inmate at the Federal Correctional Institution in Petersburg, Va., was sentenced to life in prison today for advertising child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Kenneth T. Cuccinelli, II, Attorney General of Virginia; and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after sentencing by United States District Judge John A. Gibney.
Sebolt was convicted at a bench trial on Sept. 13, 2012, of one count of advertising child pornography. According to the evidence presented at trial and court documents in the case, in February 2010, while searching the property of an inmate who was being released from FCI Petersburg, prison officials intercepted dozens of envelopes Sebolt was attempting to smuggle out of the prison. Fifteen of the envelopes were addressed to individuals in foreign countries and contained a flyer Sebolt created soliciting the production of child pornography. The flyer contained detailed instructions on the type of pictures the defendant sought and included a pay scale listing how much money Sebolt would pay for a photograph depicting a child engaged in sexually explicit conduct. According to the flyer, Sebolt would pay more money for photographs that depicted children engaged in more severe sexually explicit conduct. The back of the flyer contained pictures of nude children, as well as sketches of children's genitalia in various positions.
Prison officials discovered the nude pictures and sketches in Sebolt's cell, and an expert handwriting analysis confirmed that it was highly probable that Sebolt created the flyer. At the time of the offense, Sebolt was serving a 30-year sentence for advertising child pornography, distribution of child pornography, and possession of child pornography. He also has two prior convictions for predatory criminal sexual abuse of a child from Illinois.
The case was investigated by officials at FCI Petersburg and the United States Postal Inspection Service. Assistant United States Attorney Elizabeth Wu and Special Assistant United States Attorney Tommy Johnstone of the Virginia Attorney General’s Office prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.Eagle Butte Woman Sentenced on Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte woman convicted of Assaulting a Federal Officer was sentenced on January 24, 2013 by U.S. District Judge Roberto A. Lange. Charmagne Means, age 27, was sentenced to 6 months probation, a $150 fine, a $25 special assessment, and a letter of apology to the Cheyenne River Sioux Tribal Police officers.
Means was indicted for Assaulting a Federal Officer by a federal grand jury on August 22, 2012. She pled guilty to the charge on October 29, 2012.
The conviction stems from an incident on June 3, 2011 when the Defendant did not obey repeated orders by law enforcement officers to stop as she and her co-defendant ran toward officers who were arresting another individual. She was intercepted by an officer and physically resisted arrest.
This case was investigated by the Cheyenne River Law Enforcement Services. First Assistant U.S. Attorney Randolph J. Seiler prosecuted the case.
Eagle Butte Woman Sentenced on Assault ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that an Eagle Butte woman convicted of Assaulting a Federal Officer was sentenced on January 24, 2013 by U.S. District Judge Roberto A. Lange. Delanita LaClair, age 49, was sentenced to 3 years probation, a $300 fine, a $25 special assessment, 40 hours of community service, and a letter of apology to the Cheyenne River Sioux Tribal Police officers.
LaClair was indicted for Assaulting a Federal Officer by a federal grand jury on August 22, 2012. She pled guilty to the charge on January 24, 2013.
The conviction stems from an incident on June 3, 2011 when the Defendant did not obey repeated orders by law enforcement officers to stop as she and her co-defendant ran toward officers who were arresting another individual. She was intercepted by an officer and physically resisted arrest.
This case was investigated by the Cheyenne River Law Enforcement Services. First Assistant U.S. Attorney Randolph J. Seiler prosecuted the case.
Eagle Butte Man Pleads Guilty to Simple Assault of MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Raymond Uses The Knife, a/k/a Yamni Uses The Knife, age 21, of Eagle Butte, South Dakota appeared before US District Judge Roberto A. Lange on January 23, 2013 and pled guilty to a Superseding Information that charged him with Simple Assault of a Minor.
The maximum penalty upon conviction is 1 year of custody, a $100,000 fine, restitution, and a $25 Special Assessment to the Victim Assistance Fund. The conviction arose from an incident in Eagle Butte in August of 2011 when Uses The Knife assaulted a minor under the age of 16.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant United States Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for April 12, 2013. The defendant was remanded to the custody of the US Marshal pending sentencing.
Dupree Man Sentenced on Assault ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that a Dupree man convicted of Simple Assault was sentenced on January 25, 2013 by U.S. Magistrate Judge Mark A. Moreno. Elton Lone Eagle, Sr., age 31, was sentenced to time served and a $10 special assessment.
Lone Eagle was indicted by a federal grand jury on November 15, 2012. He pled guilty to a Superseding Information charging Simple Assault on January 25, 2013.
The charge stems from an incident in June of 2012 when the Defendant and another assaulted the victim causing minor bruises and swelling to the victim's face and eyes.
This case was investigated by the Cheyenne River Law Enforcement Services. Assistant U.S. Attorney Troy Morley prosecuted the case.
Drug Conviction Results in Lengthy SentenceRead the Press Release
On January 25, 2013, a Williamson County resident was sentenced in U.S. District Court on a one-count indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Christopher D. Norris, 30, of Pittsburg, was sentenced to 216 months in prison, to be followed by 5 years of supervised release, and fined $400. Evidence at the plea and sentencing hearings established that Norris was involved with others in the manufacture of methamphetamine. The offense occurred between 2010 and January 2012 in Williamson, Jackson, and Franklin Counties. Norris provided pseudoephedrine pills to others for use in the manufacture of methamphetamine. Norris was also involved in a home invasion/theft of anhydrous ammonia. At sentencing, the district court determined that Norris was responsible for the manufacture of 840 grams of methamphetamine. The district court also found that Norris used violence during the offense. Norris was classified as a Career Offender. Three co-defendants have pled guilty to their role in the methamphetamine conspiracy and are awaiting sentencing. One co-defendant has pled not guilty and is awaiting jury trial. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Williamson County Sheriff’s Office, Murphysboro Police Department, Marion Police Department, Illinois State Police, Mt. Vernon Police Department, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
District Man Sentenced to More Than 11 Years in Prison for Armed Robbery and Assault– Defendant Attempted to Stab Two People Who Tried to Stop Him-Read the Press Release
WASHINGTON - Marlon DeShan Perkins, 36, of Washington, D.C., was sentenced today to 11 years and two months in prison for robbing a woman while armed with a knife and for attacking two people who tried to help her, announced U.S. Attorney Ronald C. Machen Jr.
Perkins pled guilty in November 2012 in the Superior Court of the District of Columbia to charges of robbery while armed with a knife and assault with a dangerous weapon. He was sentenced by the Honorable Patricia A. Broderick. Upon completion of his sentence, Perkins will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 5, 2012, at approximately 7:45 p.m., the victim and her six-year-old child were walking in an alley off the 100 block of Morse Street NE when Perkins approached them and brandished a knife. Perkins lunged at the victim with the knife, demanding her purse and threatening to kill her. In fear for her life, the victim dropped her purse. Perkins picked up the purse and fled down the alley. Two people attempted to intervene, and Perkins attempted to stab both of them before getting away.
The Metropolitan Police Department canvassed the area and found Perkins with the victim’s purse in his hands.
In a second unrelated case, Judge Broderick sentenced Perkins today to an additional 180 days in jail for a weapons offense. In that matter, in June 2012, Perkins entered a woman’s home in Southeast Washington and assaulted her. He tried to take a cell phone from her, and during the struggle, Perkins hit her in the hand with a knife, causing a small laceration.
In announcing today’s sentence, U.S. Attorney Machen praised the work of the Metropolitan Police Department, which investigated the case. He also commended the efforts of Assistant U.S. Attorney John C. Truong, who conducted the sentencing hearing in the case.
13-028District Man Sentenced to Five Years in Prison, Led Failed Scheme to Deceive A Federal Judge– Was Attempting to Obtain A $3 Million Default Judgment in Civil Lawsuit -Read the Press Release
WASHINGTON - David Copeland-Jackson, 40, of Washington, D.C., was sentenced today to five years in prison on federal charges in two cases, including one in which he plotted to deceive a federal judge into awarding him a $3 million default judgment in a civil lawsuit.
Copeland-Jackson, a convicted sex offender, was attempting to win the judgment in a defamation suit against one of his victims. The plot was unraveled and he never got the money.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr.; Debra Evans Smith, Acting Assistant Director in Charge of the FBI's Washington Field Office; Steven Anderson, Special Agent in Charge of the Mid-Atlantic Regional Office of the Office of Inspector General, U.S. Department of Education, and Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service.
Copeland-Jackson pled guilty in February 2011 in the U.S. District Court for the District of Columbia to a charge of conspiracy to commit obstruction of justice and perjury for attempting to carry out the ruse. In a separate, unrelated scheme that involved $62,440 in student financial aid, Copeland-Jackson pled guilty to mail fraud.
The Honorable Judge Richard J. Leon sentenced Copeland-Jackson in both cases. Upon completion of his prison term, Copeland-Jackson will be placed on three years of supervised release. He also was ordered to pay $62,440 in restitution and forfeiture.
Copeland-Jackson has been detained since July 9, 2009, when he was arrested on the conspiracy charge. That matter was investigated by the FBI’s Washington Field Office.
Peter J. Brandel Sr., 74, of Mansfield, Ohio, and Copeland-Jackson’s co-conspirator in the obstruction-of-justice scheme, also has pleaded guilty to conspiracy to commit obstruction of justice and perjury. He is awaiting sentencing by Judge Leon.
According to the Statement of Offense filed by the U.S. Attorney’s Office with the Court, Copeland-Jackson was convicted in Ohio in 2000 on charges of gross sexual imposition against two 14-year-olds. After serving three years in an Ohio prison for the offense, Copeland-Jackson was paroled to his hometown, Washington, D.C., and ordered not to have any contact with the victims of his earlier crimes.
However, while on parole, in June 2007 Copeland-Jackson filed a $3 million defamation suit in the U.S. District Court for the District of Columbia against one of the two victims, a male identified in the Statement of Offense only as “J.C.”
The lawsuit was assigned to U.S. District Judge Ellen S. Huvelle. Rather than serve J.C. with a copy of the lawsuit, as required, Copeland-Jackson filed a false affidavit with Judge Huvelle. The affidavit - signed by Brandel - claimed that J.C. had been served with the suit. Without J.C.’s knowledge, for more than a month, Copeland-Jackson then filed numerous pleadings for himself, as plaintiff, and for J.C., as defendant, in the case.
On Aug. 8, 2007, Judge Huvelle awarded a $3 million default judgment against J.C. to Copeland-Jackson. The judge took this action after receiving a document, purportedly from J.C., in which J.C. admitted the allegations in the lawsuit and consented to the judgment.
Judge Huvelle was unaware that Copeland-Jackson had gone to prison in Ohio for the very acts that were the supposed subject of the defamation lawsuit. The Ashland County prosecutor in Ohio subsequently alerted the judge that Copeland-Jackson was on parole for having molested J.C. when he was a minor. At that point, Judge Huvelle immediately vacated the default judgment and set a hearing on the matter for Aug. 16, 2007.
According to the Statement of Offense, at the hearing, Brandel testified falsely under oath that he had served a copy of the Copeland-Jackson lawsuit on J.C.
The mail fraud scheme took place between 2005 and 2009. Copeland-Jackson fraudulently obtained $62,440 in federal student financial aid by enrolling three relatives and five former inmates in college courses at online universities and then collecting their student aid checks. That case was investigated by the Office of Inspector General, U.S. Department of Education, and the Washington Division of the U.S. Postal Inspection Service.
Copeland-Jackson falsified certain material information about the individuals purportedly entitled to the financial aid. He falsely listed his own address as that of the phony student, thus causing the student aid checks to be mailed directly to his apartment in the District of Columbia.
In announcing the sentence, U.S. Attorney Machen, Acting Assistant Director in Charge Smith, Special Agent in Charge Anderson and Inspector in Charge Barksdale commended the Special Agents and Postal Inspectors who investigated the cases.
They also praised those who worked on the matters from the U.S. Attorney’s Office, including Legal Assistant Jamasee Lucas, Paralegal Specialists Diane Hayes and Tasha Harris and former Paralegal Specialist Mary Treanor. Finally, they acknowledged the work of former Assistant U.S. Attorney James A. Mitzelfeld, who investigated and obtained an indictment in the case, and Assistant U.S. Attorney Jonathan Haray, who prosecuted the case.
13-029District Man Sentenced to 14 Months in Prison for Arranging for Sexual Contact with A MinorRead the Press Release
WASHINGTON - Patrick Henderson, 38, of Washington, D.C., was sentenced today to 14 months in prison for arranging for a sexual contact with someone he believed to be a minor, 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).
Henderson pled guilty in October 2012 in the U.S. District Court for the District of Columbia to a charge of arranging for a sexual contact with a real or fictitious child. He was sentenced by the Honorable Gladys Kessler. Following completion of his prison term, Henderson will be placed on 10 years of supervised release. He also will be required to register as a sex offender for 10 years.
According to the government's evidence, on Nov. 21, 2011, Henderson contacted an undercover officer with the FBI's Child Exploitation Task Force, who had entered a social network site. Over the next several days, Henderson engaged in online and telephone conversations with the undercover officer, whom he believed had access to an under-aged boy from Virginia. During this period of time, Henderson arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the boy.
On Nov. 30, 2011, Henderson traveled from his apartment, to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
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 MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Assistant U.S. Attorney Julieanne Himelstein, who prosecuted the case.
13-030Court Authorizes IRS to Seek Records from UBS Relating to U.S Taxpayers with Swiss Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Kathryn Keneally, the Assistant Attorney General for the Justice Department’s Tax Division, and Steven T. Miller, the Acting Commissioner of the Internal Revenue Service (“IRS”) today announced that U.S. District Judge William H. Pauley III entered an order authorizing the Internal Revenue Service to issue a summons requiring UBS AG (“UBS”) to produce information about U.S. taxpayers who may hold accounts at the Swiss bank Wegelin & Co. (“Wegelin”) and other banks based in Switzerland to evade federal income taxes. Specifically, the IRS summons seeks records of Wegelin’s United States correspondent account at UBS, which will allow the United States to determine the identity of the U.S. taxpayers who hold or held interests in financial accounts at Wegelin and other Swiss financial institutions that used Wegelin’s UBS account. Wegelin pled guilty in Manhattan federal court on January 3, 2013, to conspiring with U.S. taxpayers and others to hide more than $1.2 billion in secret Swiss bank accounts and to conceal the income they generated from the IRS. As part of its guilty plea, Wegelin agreed to pay approximately $20 million in restitution to the IRS and an additional $22.05 million criminal fine. In addition, Wegelin also agreed to a civil forfeiture of $32 million, $16.2 million of which was seized and forfeited by the Government from Wegelin’s correspondent account with UBS in Stamford, Connecticut (the “Correspondent Account”) in April 2012.
Manhattan U.S. Attorney Preet Bharara said: “This summons is the latest step in our efforts to identify and prosecute U.S. taxpayers who think they can evade their legal responsibility to pay taxes by secreting their money away in anonymous off-shore accounts at Wegelin and other banks, and to recover the hundreds of millions of dollars that is owed to the IRS. Wegelin’s recent guilty plea for facilitating this conduct – the first such plea by a Swiss financial institution - made it possible for us to take this step and our work continues in earnest.”
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division said: “The Department of Justice will use all means available, and there are many, to pursue U.S. taxpayers who continue to attempt to evade their tax obligations by using foreign bank accounts. This John Doe summons is just one of many actions that we are taking. The world is shrinking, and time is running out for taxpayers to come into voluntary compliance before either the IRS or the Justice Department finds them.”
Steven T. Miller, IRS Acting Commissioner said: “The summons provides an important tool to help with international tax enforcement efforts and detect U.S. taxpayers hiding offshore accounts to evade taxes. This effort reflects a long-term strategy by the IRS and Justice Department to break through international bank secrecy and protect our nation's taxpayers.”
According to the Government’s Indictment and forfeiture Complaint:
Wegelin and at least two other Swiss banks used Wegelin’s Correspondent Account to covertly launder U.S. taxpayers’ funds from their undeclared accounts in Switzerland. As set forth in the papers filed with the district court, the IRS has reason to believe that these funds were transferred in a manner designed to reduce the risk of detection by U.S. authorities, so that the account holders could continue to avoid paying taxes due and owing to the IRS.
In this action, the Court granted the IRS permission to serve what is known as a “John Doe” summons on UBS. The IRS uses John Doe summonses to obtain information about possible tax fraud by individuals whose identities are unknown. This John Doe summons directs UBS to produce records identifying U.S. taxpayers with accounts at Wegelin and other Swiss banks that used Wegelin’s Correspondent Account. Wegelin has admitted that certain of its U.S. taxpayer clients were maintaining accounts at Wegelin in order to evade their U.S. tax obligations.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. A deliberate failure to report a foreign account can result in a penalty of up to 50 percent of the amount in the account at the time of the violation.
This case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Natalie N. Kuehler is in charge of this case.
U.S. v. Wegelin & Co. Signed Order
U.S. v. Wegelin & Co. Notice of Petition
U.S. v. Wegelin & Co. Memo of Law in Support of Petition
Kiger Declaration
U.S. v. Wegelin & Co. Exhibit A - S1 Indictment
U.S. v. Wegelin & Co. Exhibit B - Forfeiture Complaint
U.S. v. Wegelin & Co Exhibit C - Plea Agreement
U.S. v. Wegelin & Co. Exhibit D - Guilty Plea Transcript
U.S. v. Wegelin & Co Exhibit E - SummonsConnecticut Rmbs Trader Charged with Securities Fraud, Defrauding Tarp ProgramRead the Press Release
January 28, 2013David B. Fein, United States Attorney for the District of Connecticut, and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), announced that a federal grand jury sitting in New Haven has returned a 16-count indictment charging JESSE C. LITVAK, 38, of New York, N.Y., with securities fraud, Troubled Asset Relief Program (TARP) fraud and making false statements to the federal government. The indictment alleges that LITVAK, while a registered broker-dealer and managing director at Jefferies & Co., Inc., engaged in a scheme to defraud customers on residential mortgage-backed securities (RMBS) trades. LITVAK’s victims are alleged to have included numerous investment funds, including six funds that the Department of Treasury established in 2009, as part of the federal government’s response to the financial crisis.
The indictment was returned on January 25, 2013, and LITVAK was arrested at his home this morning by SIGTARP agents.
This prosecution has been brought in coordination with the RMBS Working Group, and relates to alleged fraud committed against the government in response to the financial crisis through the pooling and sale of RMBS. The RMBS Working Group is a joint federal and state initiative created last year to investigate those responsible for misconduct contributing to the financial crisis. RMBS were pools of mortgages deposited into trusts and then sold as securities to investors who were to receive a stream of income from the mortgages packaged in the RMBS.
“As alleged, the defendant defrauded six funds established by Treasury and funded principally with government bailout money,” said U.S. Attorney Fein. “Illegally profiting from a federal program designed to assist our nation in recovering from one of our worst economic crises is reprehensible. I commend SIGTARP for its diligent work on this ongoing investigation. The U.S. Attorney’s Office and our RMBS Working Group partners are committed to investigating fraud and abuse that helped lead to the 2008 financial crisis, as well any fraud related to the government’s response to the crisis.”
“As most Americans tried to keep their heads above water during the financial crisis, Jesse Litvak is charged with trying to profit from the taxpayer-funded bailout known as TARP,” said Special Inspector General for TARP Christy Romero. “The charges paint a picture of Litvak shamelessly lying to dupe the Government into overpaying for mortgage securities with bailout funds. Today’s charges should stand as a warning to all who target bailout money: We will work with our partners to uncover and stop bailout crime, and to investigate, prosecute, and punish those responsible. I want to commend United States Attorney David Fein for his commitment to fighting TARP-related crime.”
As detailed in the indictment, in 2009, the U.S. Department of Treasury began the Legacy Securities Public-Private Investment Program (PPIP), in response to the financial crisis, using more than $22 billion of bailout money from TARP to restart the trading market for certain kinds of RMBS, among other troubled securities. Over 100 firms applied to manage one of the nine PPIP funds established under the program, each of which received between $1.4 billion and $3.7 billion of bailout money from TARP to invest alongside private capital.
According to the indictment, LITVAK was a senior trader and managing director at Jefferies & Co, Inc. (“Jefferies”), a global securities and investment banking firm headquartered in New York. Jefferies also has a trading floor in Stamford, Conn., where LITVAK and other members of its Mortgage and Asset-Backed Securities trading group worked. The indictment alleges that LITVAK engaged in a scheme to defraud based on two different types of misrepresentations. In certain transactions, LITVAK misrepresented the RMBS seller’s asking price to the buyer, or misrepresented the buyer’s price to the seller, keeping the difference between the price paid by the buyer and the price paid to the seller for Jefferies. In other transactions, LITVAK misrepresented to the RMBS buyer that bonds held in Jefferies’ inventory were being offered for sale by a fictitious third-party seller invented by LITVAK, which allowed LITVAK to charge the buyer an extra commission that Jefferies was not entitled to.
Through these schemes, it is alleged that LITVAK defrauded six PPIP funds and multiple private investment funds of a total of more than $2 million.
The indictment charges LITVAK with 11 counts of securities fraud, which carry a maximum term of imprisonment of 20 years on each count, one count of TARP fraud, which carries a maximum term of imprisonment of 10 years, and four counts of making false statements to the federal government, which carry a maximum term of imprisonment of five years on each count.
The case is assigned to United States District Judge Janet C. Hall in New Haven.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis. The RMBS Working Group, which is chaired by Attorney General Eric Holder, brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, ten U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission, the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the Federal Housing Finance Agency’s Office of Inspector General, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than ten state Attorneys General offices around the country.
This case is being prosecuted by Assistant United States Attorneys Jonathan Francis and Eric Glover.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The RMBS Working Group is led by five co-chairs: Assistant Attorney General for the Justice Department’s Criminal Division Lanny Breuer, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division Stuart Delery, U.S. Attorney for the District of Colorado John Walsh, Director of Enforcement for the SEC Robert Khuzami and New York State Attorney General Eric Schneiderman. The RMBS Working Group Coordinator is Matthew Stegman. For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, please visit: www.stopfraud.gov.
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(203) 821-3722 [email protected]Chester Woman Sentenced on Drug ChargesRead the Press Release
On January 25, 2013, a Randolph County resident was sentenced in U.S. District Court on methamphetamine related charges, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Penelope J. Reed, a/k/a “Penny Warren,” 38, of Chester, IL, was sentenced to 84 months in prison, to be followed by 4 years of supervised release, and fined $400. On September 13, 2012, a jury convicted Reed of one count of conspiracy to manufacture methamphetamine and three counts of possessing pseudoephedrine knowing that it would be used to manufacture methamphetamine. The offenses occurred between September, 2006, and October, 2011, in Randolph, Jackson, and Williamson Counties. Evidence at trial and sentencing established that Reed was involved with others in the manufacture of methamphetamine. Reed purchased pseudoephedrine pills for others to use in the manufacture of methamphetamine. Reed also allowed her Chester residence to be used for the manufacture of methamphetamine. At sentencing, the district court found that Reed was responsible for over 230 grams of pseudoephedrine. Seven co-conspirators have previously been sentenced for their involvement in the methamphetamine conspiracy. Two co-conspirators have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Chester Police Department, Murphysboro Police Department, and Drug Enforcement Administration. The Crawford County Sheriff’s Office and Robinson Police Department also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Cherry Creek Man Pleads Guilty to Sexual Contact with A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Scott Ray Marrowbone, age 36, of Cherry Creek, South Dakota appeared before US District Judge Roberto A. Lange on January 25, 2013 and pled guilty to Count II of the Indictment that charged him with Sexual Contact with a Minor. The maximum penalty upon conviction is 2 years of custody, a $250,000 fine, or both, and at least 5 years of supervised release up to life; and a $100 special assessment to the Victim Assistance Fund. Restitution may also be ordered.
The conviction arose from an incident that occurred between May 2005 and October 2007 when Marrowbone sexually assaulted a female minor near Eagle Butte, South Dakota.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant US Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for April 15, 2013. The defendant was remanded to the custody of the US Marshal pending sentencing.
Blackfoot Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
POCATELLO –Kendall Perry, 21, of Blackfoot, Idaho, pleaded guilty today in United States District Court in Pocatello to involuntary manslaughter, U.S. Attorney Wendy J. Olson announced.
Perry, an enrolled member of the Shoshone-Bannock Tribes, was indicted by a federal grand jury on October 23, 2012, on one count of involuntary manslaughter. According to the indictment, on June 30, 2012, Perry, who was intoxicated, was operating a 1999 GMC Yukon with gross negligence, causing a roll-over accident near the intersection of Philbin and Sheepskin Road that resulted in the death of Cullen Fightsover, a passenger in the vehicle.
An accident reconstructionist said the vehicle was traveling at 74 mph in a 50 mph zone. Perry ran a stop sign, went through the intersection and then lost control and rolled into a field, ejecting the three occupants from the vehicle. Fightsover was life-flighted, but was pronounced dead at the hospital.
Perry admitted drinking hard liquor and beer and admitted smoking marijuana in the hours before the crash. Perry admitted he was “buzzed” from the alcohol he had consumed.
The charge is punishable by up to eight years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for April 29, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Banks Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that ERICK BANKS, age 31, of Baton Rouge, Louisiana, pled guilty today before Chief United States District Court Judge Brian J. Jackson to one count of conspiracy to traffic a child in the commercial sex trade. BANKS faces a sentence of up to life imprisonment, five (5) years of supervised release following imprisonment, and a fine of $250,000. The sentencing date has yet to be scheduled.
At today’s hearing, BANKS admitted that on or about January 27, 2011, he enticed the victim, a 15 year old girl, to engage in acts of prostitution. Several days earlier, on or about January 20, 2011, the victim ran away from a Baton Rouge home for teenage girls. BANKS placed several ads on an online service often utilized by those in the commercial sex trade. BANKS used the moniker “Sinsational” or “Blonde Bunny” to describe the victim in the ads. BANKS instructed the victim how to engage in telephone conversations with potential customers and how to determine if a customer was a law enforcement officer.
On or about January 27, 2011, in five separate transactions, the victim engaged in sexual activity in exchange for money. Each of these transactions were coordinated by BANKS and occurred in a hotel in Baton Rouge. The victim was paid approximately $1,200 to $1,800, all of which she gave to BANKS.
U.S. Attorney Donald J. Cazayoux, Jr., stated, “We will continue to be committed to uncovering and prosecuting anyone despicable enough to traffic young teenage victims in the commercial sex trade. We appreciate the strong work of the FBI in this case, and we also commend the Middle District Human Trafficking Task Force for its efforts in educating law enforcement and the public in general about combatting this heinous crime.”
This investigation was conducted by FBI Special Agent Teneka Harris and is being prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Susan Amundson.
Baltimore Immigration Judge Participates in Naturalization CeremonyRead the Press Release
BALTIMORE --Immigration Judge Phillip T. Williams from the Executive Office for Immigration Review, Baltimore Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 75 candidates during a naturalization ceremony at the George H. Fallon Federal Building in Baltimore, Md., on Jan. 25, 2013. The Baltimore District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Williams in March 1995. Judge Williams received a bachelor of arts degree in 1978 from Temple University, a master of arts degree in 1981 from Howard University, and a juris doctorate in 1986 from Howard University School of Law. From 1997 to 2008, he was an assistant chief immigration judge. From 1995 to 1997, he served as an immigration judge in New York. From 1987 to 1995, Judge Williams was an attorney with Maggio & Kattar in Washington, D.C. From 1984 to 1986, he worked as a District of Columbia pre-trial services officer. Judge Williams is a member of the District of Columbia and Pennsylvania Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewAttorney Pleads Guilty in Mortgage Fraud SchemeRead the Press Release
PITTSBURGH - An attorney pleaded guilty in federal court to charges of wire fraud, filing false income tax returns , and failing to file income tax returns, United States Attorney David J. Hickton announced today.
On Jan. 25, 2013, Lisa Gerideau-Williams, 46, of New Kensington, Pa., pleaded guilty to sixteen counts before Chief United States District Judge Gary L. Lancaster.
In connection with the guilty plea, the court was advised that Gerideau-Williams was an attorney who operated a mortgage broker business called Genesis Home Solutions, and two companies specializing in closing real estate transactions called Millennium Settlement Services and Professional Settlement Solutions. Through these companies Gerideau-Williams operated a complex and multi-faceted fraud scheme.
One aspect of the scheme involved the submission of loan applications to lenders. The loan applications were fraudulent because Gerideau-Williams submitted them without the authority of the borrowers and they contained false information related to the borrowers' financial condition. For example, Gerideau-Williams submitted loan applications on behalf of her brother and her elderly aunt that were not authorized by either. In addition, Gerideau-Williams represented to lenders that her elderly aunt owned and operated a lucrative cleaning business when, in fact, her aunt was a retired state worker. Gerideau-Williams also furthered the fraud by submitted fake documents supporting the misrepresentations in the loan applications and by forging the signature of her brother and her aunt.
Gerideau-Williams' fraud also related to her operation of businesses that closed real estate transactions. Gerideau-Williams received money from lenders into her trust account that was required to be disbursed to pay liabilities associated with the collateral. In that way the lender would stand in the first lien position related to the collateral. Gerideau-Williams, rather than paying those liabilities, would simply take the money and use it to support her lavish lifestyle.
Gerideau-Williams also defrauded borrowers. Borrowers paid for title insurance and for other services such as recording deeds and mortgages. Rather than providing these services, however, Gerideau-Williams simply took the fees for those services, but failed to actually provide those services.
Title insurance companies were also victimized by Gerideau-Williams' fraud. At closings, Gerideau-Williams colleted fees from borrowers for title insurance. Gerideau-Williams, however, failed to remit those payments to the title insurance companies. In addition, some of the title insurance companies terminated Gerideau-Williams' authority to issue title insurance under their names. Despite the termination, however, Gerideau-Williams continued to issue title insurance on fraudulent transactions as if she was authorized to do so.
Gerideau-Williams' fraud was particularly egregious related to the property located in Pittsburgh, Pa. Prior to 2005, Gerideau-Williams rented that property and it was her residence. On Sept. 6, 2005, through her fraudulent businesses, she sold the property from the rightful owner of the property to her elderly aunt without the knowledge of either the owner or her aunt. A lender financed the purchase, and Gerideau-Williams simply took all of the proceeds from the transaction for her personal benefit. Gerideau-Williams, however, did not record the deed or the mortgage related to the property and therefore the property still appeared on the public record to be owned by the rightful owner of the property free of any mortgages.
On March 13, 2006, Gerideau-Williams arranged to purchase the property in her own name financed through a fraudulently obtained loan. While she recorded the deed transferring ownership of the property to her own name, she did not record the mortgage and therefore, according to the public record, it appeared that she owned the property free of any liens.
On Aug. 7, 2006, Gerideau-Williams sold the property to her brother, and her brother financed the purchase through a fraudulently obtained loan secured by Gerideau-Williams. Gerideau-Williams received the proceeds from the sale, but she did not record the deed or the mortgage and therefore the public record still showed that she owned the property free of any liens.
On Jan. 19, 2007, Gerideau-Williams sold the property to her brother again, and her brother again financed the purchase through a fraudulently obtained loan secured by Gerideau-Williams. Gerideau-Williams again received the proceeds from the sale, but she again did not record the deed or the mortgage and therefore the public record still showed that she owned the property free of any liens.
Finally, on Feb. 20, 2007, Gerideau-Williams sold the property to her brother again, and her brother again financed the purchase through a fraudulently obtained loan secured by Gerideau- Williams. Gerideau-Williams again received the proceeds from the sale, but she again did not record the deed or the mortgage and therefore the public record still showed that she owned the property free of any liens.
Equally egregious are the various loans Gerideau-Williams secured in the name of her elderly aunt. As mentioned above, Gerideau-Williams arranged for her aunt to purchase 120 Cypress Hills Drive from the rightful owner of the property. That purchase was financed through a loan fraudulently obtained by Gerideau-Williams.
Gerideau-Williams' aunt owned a home in Harrisburg, Pa. On Nov. 2, 2005, Gerideau- Williams arranged for a fraudulent refinance loan collateralized by her aunt's Harrisburg property.
On Jan. 30, 2007, Gerideau-Williams arranged for a second fraudulent refinance transaction collateralized by that same property.
On March 12, 2007 and March 21, 2007, Gerideau-Williams, without the authority of her elderly aunt, secured to other refinance transactions collateralized by that same property. For each transaction, Gerideau-Williams took the proceeds from the loans and used those proceeds to support her lavish lifestyle. In neither of those transactions, however, did she record the mortgages. In connection with those transactions she issued title insurance without the authority of the title insurance companies, forged her aunt's signature on various documents, and failed to pay the liabilities associated with the collateral as required by the lenders.
For the 2004 tax year, Gerideau-Williams, who took taxation classes at Georgetown University School of Law toward an advanced degree in tax law, filed tax returns that drastically understated her income because she failed to include the more than millions dollars earned in the course of her fraud schemes. For the 2005 and 2006 tax years, she did not file her income tax returns.
Judge Lancaster scheduled sentencing for June 7, 2013. The law provides for a total sentence of 235 years in prison, a fine of $3,700,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Gerideau-Williams. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Ashley Ann Lamere Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 28, 2013, before Chief U.S. District Judge Richard F. Cebull, ASHLEY ANN LAMERE, a 32-year-old resident of Billings, appeared for sentencing. LAMERE was sentenced to a term of:
Prison: 100 months
Special Assessment: $200
Restitution: $33,823.28
Forfeiture: $244,890.00
Supervised Release: 3 years
LAMERE was sentenced in connection with her guilty plea to wire fraud and bribery.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
LAMERE, aka Ashley Ann Thompson, operated numerous office supply companies and/or used various company names to defraud the United States military through various schemes, to include the following: billing government credit cards without authorization; billing more than was authorized on government credit cards; and bribing government officials to purchase additional items with cash and gift cards. LAMERE operated and/or used the following companies to accomplish her scheme: Base Suppliers, Inc., Federal Office Supply, Fresh, Government Cartridge Supply, Impac Office Supply, Red Dog Toner, Rimrock Office Supply, Servumart, and Yellowstone Office Supply. LAMERE operated the previously described companies out of two Billings addresses between 2005 and 2010. The companies focused on selling office supplies to government agencies, primarily the military, through telemarketing.
To accomplish the scheme to defraud, LAMERE and her employees gave military procurement personnel Western Union and Money Gram wires, gift cards and cash to either induce them into buying office supplies through the companies and/or as a gratuitous gift after the order was placed. LAMERE and her employees sent the military procurement personnel the wires, cards and cash via Federal Express packages, often times sent to the procurement personnel's personal address. Even after LAMERE and her employees were told by procurement personnel that they were not allowed to accept gifts over approximately $20, LAMERE and her staff continued to offer and provide amounts far in excess of $20 to military members.
Once military personnel were promised wires, cash and gift cards, LAMERE and her employees often did not send all the agreed upon supplies. At times, no supplies at all were sent by LAMERE and her employees to fulfill the individual orders. Also, after obtaining a Government Purchase Card (GPC) number from a military member, LAMERE and her employees made unauthorized charges on the GPC cards.
Military procurement personnel can authorize, without a supervising officer's approval, charges under $3,000. In an effort to circumvent the military procurement rules and regulations LAMERE set up numerous companies so more than $3,000 could be ordered from the various companies on any given day. LAMERE went so far as to provide guidance to military procurement personnel to assist them in avoiding detection from auditing authorities.
A total of 24 government procurement professionals were interviewed by law enforcement. Of the 24 interviewed, 17 individuals admitted receiving cash and/or gift cards in exchange for placing supply orders with the subject companies. In addition law enforcement used a cooperating witness and an undercover agent to record and monitor LAMERE and her business practices. Both individuals' contacts with LAMERE supported the claims that LAMERE bribed government procurement officers and billed unapproved charges to GPC cards. Specifically, the investigation uncovered that on or about March 12, 2010, at Billings, LAMERE directly offered cash to E.C., a member of the United States Navy responsible for obtaining supplies on behalf of his/her unit, if he/she continued to purchase unnecessary office supplies from LAMERE's companies. On March 15, 2010, at Billings, LAMERE caused to be transmitted by means of wire communication in interstate commerce a Money Gram wire transfer of $300 from LAMERE, in Billings, to E.C. in Jacksonville, Florida, to pay the bribe offered on March 12, 2010.
From 2008 to 2010, LAMERE obtained more than $1 million in purchases from credit cards through her various companies. LAMERE's business expenses, as deduced from her bank records, were less than $100,000 during the same time period.
The case against Ashley Lamere was an excellent example of cooperation amongst numerous agencies all over the United States," said U.S. Attorney Michael W. Cotter. "Bribery, as in this case, disrupts the good and proper functioning of the government. Today's sentence demonstrates that the District of Montana takes allegations of bribery seriously and will vigorously investigate and prosecute those perpetrating fraud on the United States."
Ethics matter for federal employees and those who do business with the federal government," said GSA Inspector General Brian D. Miller. "We have no tolerance for bribes, kickbacks, or corruption."
The Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, continue to aggressively investigate public corruption and fraud involving Department of Defense and other Federal contracting matters. This sentencing demonstrates the Federal Government's continuing resolve to ensure those who violate the law are brought to justice and held accountable for their actions. This sentence will help deter others who would consider betraying the public trust", said Special Agent in Charge Janice Flores, DCIS, Southwest Field Office.
Rest assured those who find ways to fraudulently benefit from government programs will be brought to justice. IRS Criminal Investigation will work diligently with our law enforcement partners to combat such fraud," said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the State of Montana.
Special Agent in Charge David J. Johnson of the FBI Salt Lake City Division: "The defendant's sophisticated network of bribery and fraud caused substantial losses to taxpayers. Using cash and gift cards as bait to illegally gain government purchasing card numbers, the defendant devised a far-reaching and multi-million dollar scheme against the U.S. Government. The FBI would like to thank all the investigators and prosecutors who aggressively pursued this case and brought this defendant to justice."
The highly successful nation-wide task force included Special Agents of the Western Region, Investigations Division, Office of the Inspector General, Defense Logistics Agency. Cooperation between the various law enforcement and investigative agencies was critical to the overall success of the task force." Kathy M. Roberts, Supervisory Special Agent, Chief, Western Region, DLA Office of the Inspector General Investigations Division.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LAMERE will likely serve all of the time imposed by the court. In the federal system, LAMERE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Navy Criminal Investigation Service, General Services Administration - Office of Inspector General, U.S. Department of Defense - Office of Inspector General, Criminal Investigation Division of the Internal Revenue Service, Air Force Criminal Investigation Division, and the Army Criminal Investigation Division.
25 January 2013
Yassine Brothers Sentenced to Federal Prison in Money Landering SchemeRead the Press Release
In Austin this morning, brothers Hussein Ali “Mike” Yassine, age 40, and Hadi Ali Yassine, age 36, were sentenced to 151 months and 60 months in federal prison, respectively, for their roles in a money laundering scheme.
In addition to the prison terms, U.S. District Judge Sam Sparks ordered that Mike Yassine pay a $60,000 fine; Hadi Yassine, a $30,000 fine. Judge Sparks also ordered that both defendants be placed under supervised release for a period of three years after completing their prison terms.
On October 12, 2012, following a seven-day trial, a jury convicted Mike and Hadi Yassine of one count of conspiracy to commit money laundering. The jury also convicted Mike and Hadi Yassine of three counts and two counts of money laundering, respectively. The jury found that in 2008 and 2009, Mike and Hadi Yassine used several business establishments, including nightclubs, located in downtown Austin to launder over $200,000 in cash, which they believed to be the proceeds of narcotics trafficking.
This investigation was conducted by agents and investigators with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Austin Police Department together with the Drug Enforcement Administration, Texas Attorney General’s Office, Texas Alcoholic Beverage Commission and the Texas Comptroller’s Office. Assistant United States Attorney Gregg N. Sofer is prosecuting this case on behalf of the Government.Woonsocket Drug Dealer Sentenced to 24 Months in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Dwayne O’Hagan, 30, of Woonsocket, arrested by members of the Drug Enforcement Administration’s (DEA) Drug Task Force in April 2012 for dealing cocaine on the streets of Woonsocket, was sentenced in U.S. District Court in Providence today to 24 months in federal prison, the high end of advisory federal sentencing guidelines, announced United States Attorney Peter F. Neronha; John J. Arvanitis, Special Agent in Charge of the DEA’s New England Field Division; and Woonsocket Police Chief Thomas S. Carey.
U.S. District Court Judge William E. Smith also ordered O’Hagan to serve 3 years of supervised release upon completion of his prison term. O’Hagan pleaded guilty on August 27, 2012, to three counts of distribution of cocaine, as charged in a three-count indictment returned by a federal grand jury on May 9, 2012.
According to information presented to the court, an undercover DEA Drug Task Force investigation into O’Hagan’s drug trafficking activities, which included the use of electronic surveillance, revealed that on three occasions between March 21, 2012, and April 9, 2012, he sold various amounts of cocaine. O’Hagan admitted to the court that during that time he sold approximately 65 grams of cocaine.
O’Hagan was arrested and detained on April 24, 2012.
The case was prosecuted by Assistant U.S. Attorney Stephen G. Dambruch and Special Assistant U.S. Attorney Benjamin S. Towbin.
Contact: 401-709-5357
[email protected]Wheeling Resident Enters Plea to Cocaine ChargeRead 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 32 year old Wheeling, West Virginia, entered a plea of guilty on January 23, 2013, in United States District Court in Wheeling before Magistrate Judge James E. Seibert.
United States Attorney William J. Ihlenfeld, II, announced that ANTON DRAKE entered a plea of guilty to “Distribution of Cocaine” on September 20, 2011, in Benwood, West Virginia. At the time of this distribution, DRAKE was on Federal supervised release and as part of his plea has admitted to violations of his supervised release and will serve a sentence of 12 months and 1 day consecutive to any sentence he receives on the current charge. DRAKE, who is on bond pending sentencing, faces up to 20 years imprisonment and a
$1,000,000 fine.The case was prosecuted by Assistant United States Attorney John C. Parr and investigated by the Ohio Valley Drug & Violent Crime Task Force, consisting of officers from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police, and the Drug Enforcement Administration.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced today that:
PLEAS:
Shawn Lunsford , 34, of Peru, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession of child pornography.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 4/25/13.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
David Blystone, 45, of Rochester, Indiana, was sentenced by District Judge Robert Miller, Jr. to 18 months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of possession of a machine gun.According to documents filed in this case, Blystone bought kits and manufactured fully automatic weapons, fireworks and destructive devices.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Phillip Rucker, 42, of Gary, Indiana, a defendant in the case US v Haymon et al., was sentenced by Senior District Judge Rudy Lozano to 30 months imprisonment, restitution of $73,488.95 and 1 year of supervised release after being found guilty at trial of the felony offense of wire fraud. Rucker participated in a scheme to defraud lenders and others by providing false information on loan applications and HUD-1 settlement statements and by recruiting individuals to purchase real estate in Gary, Indiana on behalf of Jerry Haymon. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Gary Bell.
Christopher Bunch, 54, of Battleground, Indiana, was sentenced by Senior District Judge Rudy Lozano to 408 months imprisonment and 20 years of supervised release after pleading guilty to the felony offense of inducing minor children to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.According to documents filed in this case, law enforcement was dispatched to investigate a complaint of possible child pornography found at a residence shared with Bunch.A roommate reported that she found images depicting child pornography on a camera belonging to Bunch and was able to positively identify a child as a minor female who had previously spent time at the residence.Law enforcement obtained a warrant to search all of the computers, cameras and electronic media belonging to Bunch.The officers found images and videos of 2 minor females engaging in sexually explicit conduct.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tippecanoe County Sheriff’s Department.This case was prosecuted by Assistant United States Attorney Jill Koster.
Edward Kabella, 43, of Crown Point, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 24 months imprisonment, restitution of $26,115.74 to the Internal Revenue Service, a $6,000 fine and 1 year of supervised release after pleading guilty to the felony offenses of conspiracy to provide false information to a Federal Firearms Licensee, conspiracy to defraud the Food and Drug Administration and making a false statement on a tax return.According to documents filed in this case, Kabella used his position as a law enforcement officer with the Lake County Sheriff’s Department to participate in a conspiracy to obtain machineguns and laser sights, restricted firearms. Kabella and his codefendants would then sell them on the internet. This case was the result of an investigation by the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Food and Drug Administration and the Department of Defense Criminal Investigation Service.This case was prosecuted by Assistant United States Attorney Philip Benson.
Timmothy Williams, 34, of Chicago, Illinois, was sentenced by Chief Judge Philip Simon to 80 months imprisonment, restitution of $37,340.34 and 3 years of supervised release after pleading guilty to the felony offenses of misuse of a Social Security Number, fraud with identification documents and aggravated identity theft.This case was the result of an investigation by the United States Postal Service-Office of the Inspector General and the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Gary Bell.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Fort Wayne, Indiana- The United States Attorney’s Office announced the following activity:
PLEA:
Russell Cowherd, 33, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession of a firearm by a convicted felon.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
Danny Villarreal, 28, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession with the intent to distribute methamphetamine.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Drug Enforcement Administration, the United States Postal Service-Office of the Inspector General and the Allen County Police Department.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Baldemar Robles, 36, of Warsaw, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offenses of maintaining a place for the purpose of distributing cocaine and marijuana, and possession of a firearm by a convicted felon.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kosciusko County Drug Task Force and the Kosciusko County Prosecutor’s Office.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
Michael Banks, 22, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession of a firearm by a convicted felon.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Terrance Martin, 30, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 57 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Martin has a prior felony conviction for resisting law enforcement.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case was prosecuted by Assistant United States Attorney Tina Nommay.
Washington County Sheriff Indicted for Conspiracy, Theft of Government MoneyRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Richard Stephen Stringer, Sr., 67, of Deer Park, Alabama, has been indicted by a grand jury on charges of conspiracy and theft of government money.
The indictment alleges that Stringer, the Sheriff of Washington County, conspired with others to fraudulently obtain Social Security benefits for one of his employees. According to the charges, Stringer arranged to have the wages of one of his employees be paid to the employee’s wife instead of to the employee, thereby reducing the income reported to the Social Security Administration in his name, allowing the employee to obtain and retain benefits to which he was not entitled.
Stringer was charged with conspiracy and aiding and abetting the theft of government money. Conspiracy carries a maximum penalty of five years in prison and a $250,000 fine. Theft of government money carries up to ten years in prison and a $250,000 fine. The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Sean P. Costello is handling the prosecution on behalf of the United States.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until and unless he or she is proven guilty at trial.
Vanderwagen, N.M., Man Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Darryl L. Alexius, 37, an enrolled member of the Navajo Nation who resides in Vanderwagen, N.M., pled guilty this morning to an indictment charging him with being a felon in possession of a firearm.
Alexius was indicted on Oct. 23, 2012, and charged with unlawfully possessing a firearm and ammunition on May 12, 2012 in McKinley County, N.M. At the time, Alexius was prohibited from possessing firearms and ammunition because he previously had been convicted of aggravated assault and aggravated battery.
During today’s plea hearing, Alexius admitted that he possessed a shotgun and shotgun shells on May 17, 2012. Court records reflect that Alexius committed this offense in Jones Ranch, N.M.
At sentencing, Alexius faces a maximum penalty of ten years of imprisonment. His sentencing hearing has yet to be scheduled.
The case was investigated by the Crownpoint Division of the Navajo Nation Department of Public Safety, and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Texas Man Sentenced to 2½ Years in Federal Prison for Failure to Register as Sex OffenderRead the Press Release
Jacksonville, Florida - U.S. District Judge Timothy J. Corrigan sentenced Guadalupe M. Longoria (55, Sealy, Texas) to 30 months in prison and a 10-year term of supervised release for failing to register as a sex offender in the state of Florida, after traveling from the state of Texas.
According to court documents, on July 28, 1986, Longoria was charged with two counts of indecency with a child, a second degree felony in Texas. He was found guilty by a Texas jury on December 11, 1986. Because of these convictions, Longoria was required to register as a sex offender for the remainder of his life.
On February 15, 2011, Longoria received and signed official documents advising him that he was required to register with local law enforcement in any area where he resides for more than seven days, and that his obligation to do so was for life. The documents also stated that Longoria had a duty to inform his parole officer, within seven days, before moving to a new residence, and that if moving out of the state of Texas, Longoria must register with the law enforcement agency identified by the Texas Department of Public Safety as the agency designated to receive registration information. Longoria was also required to register within 10 days of arriving in the new state.
After failing to verify registration, in Texas, on May 24, 2011, the Austin County Sheriff’s Office filed a complaint with local law enforcement. Longoria’s family members were interviewed and advised that they had not seen or heard from Longoria since approximately April 2011. A Texas state magistrate then issued an arrest warrant for Longoria’s failure to register as a sex offender.
On May 4, 2012, Longoria was arrested by U.S. Marshals at his place of residence in Jacksonville, Florida for parole violations and failure to register as a sex offender in Texas. During an interview, Longoria stated, among other things, that he knew he was supposed to register and that he had been living in Florida for about a month.
This case was investigated by the United States Marshals Service, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Stephen Scott Convicted by Jury of Illegal Firearms PossessionRead the Press Release
Jackson, TN – Stephen E. Scott, 42, of Big Sandy, TN, was convicted this week of one count of being a felon in possession of a firearm, announced U.S. Attorney Edward L. Stanton III.
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Evidence presented at trial revealed that on April 15, 2010, deputies with the Benton County Sheriff's Department responded to a shots-fired complaint. Officers encountered Scott, who admitted to target shooting a shotgun with a juvenile female, and showed deputies where they had been practicing.
Deputies discovered that Scott had been convicted of five prior felonies, including two convictions for burglary, felony theft, and a felony drug manufacturing conviction, and was prohibited from possessing a firearm. Law enforcement obtained a search warrant and served it the following day. The firearm used the previous day was found at the residence, and Scott was taken into custody.
Following the jury’s conviction Scott now faces up to 10 years imprisonment, a $250,000 fine, and supervised release to follow any term of imprisonment. There is no parole in the federal system. Sentencing is scheduled for May 2, 2013 at 9:30 a.m. before District Judge J. Daniel Breen.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms, the Tennessee Wildlife Resources Agency, and the Benton County Sheriff’s Department. The case is being prosecuted by Special Assistant United States Attorney Beth Hall and Assistant United States Attorney Matt Wilson on behalf of the government.South Florida Man Sentenced to Four Years in Federal Prison for Income Tax FraudRead the Press Release
TALLAHASSEE, FLORIDA – Marvens Jean-Paul, 21, of Opa Locka, Florida, was sentenced yesterday to 48 months in federal prison for his leadership role in a conspiracy to file false claims for federal income tax refunds, involving stolen identities. Jean-Paul was sentenced by U.S. District Judge Robert Hinkle.
Jean-Paul pled guilty in 2012 to two counts of conspiracy to file false claims, seven counts of wire fraud, and four counts of aggravated identity theft based upon his involvement in schemes to file false claims for more than $1 million in federal tax refunds in 2010 and 2011. Jean-Paul admitted to stealing personal identifying information from an office on the campus of Florida A&M University, resulting in the victimization of several recent graduates of FAMU. Illegally using the information of these victims, Jean-Paul and his co-conspirators filed false tax returns that included false wage and income information, as well as false withholding information. At Jean-Paul’s direction, his co-defendants, Kimle Fils-Aime and Guerline St. Charles, cashed tax refund checks generated by one of the schemes at JP Morgan Chase Bank in North Miami, where they worked as tellers. In addition to the checks, Jean-Paul also arranged for the illegally obtained tax refunds to be loaded onto prepaid debit cards, which were used to wire transfer cash. As a result of the false claims, Jean-Paul obtained more than $279,398 in fraudulent income tax refunds.As part of his sentence, Jean-Paul was ordered to pay $280,285 in restitution. Last year, St. Charles and Fils-Aime each pled guilty to conspiracy and were sentenced for their roles in the scheme. Fils-Aime was sentenced to 12 months in prison and ordered to pay $86,748 in restitution. St. Charles was sentenced to five years’ probation, with eight months’ home detention, and was ordered to pay $73,320.03 in restitution.
“As the number of greedy offenders willing to steal identities and tax dollars has grown, so has our ability to track, investigate, arrest, and prosecute these cases, effectively and cooperatively,” said Pamela C. Marsh, United States Attorney for the Northern District of Florida. “We are pursuing those engaged in these schemes, with intensity, and we are ready for tax season.” Ms. Marsh expressed her grateful appreciation for the work of Internal Revenue Service -- Criminal Investigations, the U.S. Postal Inspection Service, and the Leon County Sheriff’s Office, whose joint investigation led to the convictions in the case.
The case was prosecuted by Assistant U.S. Attorney Winifred Acosta NeSmith.Singer in Rock Band Charged in Multi-Million Dollar Loan Fraud CaseRead the Press Release
LOS ANGELES – The frontman of a Los Angeles-based rock band called Lights Over Paris has been charged with submitting false documents to banks to fraudulently obtain millions of dollars worth of loans, money that he allegedly used to fund his band and his lavish lifestyle.
Robert Brandon Mawhinney, who turns 30 today and who authorities believe currently resides in the luxury WaterMarke Tower in downtown Los Angeles, was ordered detained yesterday afternoon by a federal judge.
During the hearing yesterday afternoon in United States District Court, United States Magistrate Judge Charles F. Eick ordered Mawhinney held without bond after determining that he posed a flight risk, given Mawhinney’s frequent travel abroad, conflicting information about his finances and the fact that he had sent hundreds of thousands of dollars to Cyprus.
Mawhinney, who uses the stage name Robb “TaLLLLL” University, was arrested at Miami International Airport earlier this month after he returned from a trip to Buenos Aires. He was subsequently transported to Los Angeles by the United States Marshals Service. Mawhinney was arrested pursuant to a criminal complaint that alleges he applied for loans by submitting phony brokerage statements that falsely showed that he had almost $8 million in assets. The phony statements were altered versions of real statements that showed less than $10,000 in the brokerage accounts.
According to the affidavit in support of the criminal complaint, between August 2009 and April 2011, Mawhinney obtained four loans from Comerica Bank totaling approximately $6.25 million. Mawhinney defaulted on the loans, causing Comerica to suffer losses of approximately $6 million.
Mawhinney allegedly told bank officials that he needed the money to fund his music business and to purchase recording equipment. According to investigators, Mawhinney used the money from the Comerica loans and loans from other banks to pay for travel, entertainment and a luxury tour bus that cost well over $750,000.
The other banks that issued loans to Mawhinney and suffered losses were JP Morgan Chase, Zions Bank and Bank of America, according to court documents.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Mawhinney is charged with making a false statement in a loan application. If he is convicted of the charge in the criminal complaint, Mawhinney would face a maximum statutory penalty of 30 years in federal prison. Mawhinney is scheduled to be arraigned in this case on February 11.
In a related case that was unsealed late yesterday, two former Mawhinney associates were charged with conspiracy to commit loan fraud. Matt Salazar, 29, of Valley Village, and his brother, Jason Salazar, 28, of Grover Beach and Fresno, have agreed to plead guilty.
The Salazar brothers, who are co-owners of the Burbank-based Matt Salazar Recording Productions and part-owners of LA Sound Gallery, also based in Burbank, admitted in court documents that they provided false documents to Bank of America, Greystone Bank and Huntington National Bank to obtain about $1.7 million in loans for their music business.
Mawhinney also used the Salazars’ studio to bolster his own fraudulent loan applications. Mawhinney met with a Comerica loan officer at their recording studio and falsely claimed to be an owner of the studio.
The case against the Salazars has been assigned to United States District Judge Judge Cormac J. Carney, who will schedule a hearing for the brothers to enter their guilty pleas. Once they plead guilty, each of the Salazar brothers will face a statutory maximum penalty of five years in federal prison.
The cases against Mawhinney and the Salazar brothers are the product of an investigation by the Federal Bureau of Investigation and IRS - Criminal Investigation.
Release No. 13-011
Sewickley Heights Man Pleads Guilty in Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County pleaded guilty in federal court to a charge of bankruptcy fraud conspiracy, United States Attorney David J. Hickton announced today.
David F. Baker III, 62, of Sewickley Heights, Pa., pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, Baker conspired to defraud J.P. Morgan and Washington Mutual Bank in mortgage applications in 2005 and 2007 on a $2.5 million condominium in Sarasota, Fla.
Judge Conti scheduled sentencing for May 17, 2013. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, conducted the investigation that led to the prosecution of David F. Baker, III.
Seattle Repeat Offender Sentenced to Ten Year Prison TermRead the Press Release
A repeat offender who was arrested dealing crack cocaine in downtown Seattle was sentenced today in U.S. District Court to 10 years in prison and three years of supervised release for possession of crack cocaine with intent to distribute, announced U.S. Attorney Jenny A. Durkan. DEVIN JENNINGS, 35, had been out of federal prison for only five months when he was arrested for dealing crack cocaine in the 1500 block of Second Avenue in downtown Seattle. Chief U.S. District Judge Marsha J. Pechman imposed two years of the sentence for supervised release violations on the sentence imposed for his 2004 conviction. In that case JENNINGS was sentenced to 100 months in prison for being a felon in possession of a firearm and possession of a firearm with an obliterated serial number. “Your addictions are controlling your decision making,” said Judge Pechman. “If drugs give you a hair trigger temper… you need to leave them behind.”
According to records filed in the case, Seattle Police began surveillance of the area around Second and Pike in downtown Seattle because of persistent street drug dealing. Officers observed JENNINGS selling what appeared to be crack cocaine to multiple customers on August 16, 2012. JENNINGS was arrested and resisted officers when they attempted to search him. JENNINGS was told he would be more thoroughly searched at the police station and was placed in the back of an empty patrol car. En route to the precinct, JENNINGS began kicking violently at the rear passenger door, bending it from its frame. JENNINGS threatened the officers as they removed him from the car. On the back seat and floorboards of the car officers discovered crack cocaine that JENNINGS had attempted to discard through the damaged car door. JENNINGS pleaded guilty in October 2012.
In asking that JENNINGS be sentenced to ten years in prison, prosecutors wrote to the court, that JENNINGS “has now been convicted of ten felony offenses and nearly twice as many non-felony offenses. In light of Jennings’ extremely long, and often times violent, criminal history, the United States believes that a substantial term of imprisonment is appropriate. We also believe that the seriousness of the offense also warrants a lengthy sentence. While the offense did not involve a large quantity of drugs, the amount of crack cocaine was substantial. Moreover, the fact that he returned to dealing drugs so quickly after his release from prison is concerning, as was his post-arrest behavior (i.e., damaging the patrol car, threatening the arresting officers, etc.). Unfortunately, Jennings continues to be a person the community needs to be protected from.”
The case was investigated by the Seattle Police Department and was prosecuted by Assistant United States Attorney Andrew Colasurdo.
School Director Pleads Guilty in Manhattan Federal Court to Bribery and Visa Fraud ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced that CHRISTIE HWANG, the director of a vocational and career training school in Manhattan, guilty today in Manhattan federal court to conspiring to bribe employees of New York City Workforce1 Career Centers in order to secure federal funds for students, and to conspiring to engage in visa fraud for using her school to illegally obtain F-1 student visas.
U.S. District Judge Katherine B. Forrest presided over HWANG’s plea proceeding. Two employees of Workforce1 Career Centers in Manhattan and Queens, Romero Johnson and Lois Powell, have also pled guilty to bribery conspiracy charges as part of the scheme, and a similar scheme involving a driving school located in Manhattan. Johnson and Powell pled guilty before Judge Forrest on December 20, 2012, and January 18, 2013, respectively.
According to the Complaint, the Indictment to which HWANG pled guilty, other documents previously filed in Manhattan federal court, and statements made during plea proceedings:
The New York City Workforce Investment Board (“NYC-WIB”) disburses federal funds to student-oriented programs within New York City. Its mission, in part, is to ensure that New York City businesses have access to qualified workers by helping candidates find job openings and giving them vocational training. New York City’s Department of Small Business Services, operating under the NYC-WIB umbrella, contracts with, and oversees, several privately owned “Workforce1 Career Centers” across the five boroughs. Among other things, the career centers match student applicants to appropriate schools for job training, and approve school attendance vouchers. Staff members at Workforce1 Career Centers receive and adjudicate numerous competing applications for vouchers from students seeking to develop job skills.
HWANG was a director and owner of one such school, Global Education New York (“GENY”), a facility in Manhattan that offered training in several vocational disciplines, as well as English as a Second Language, and other career-related training. Between 2008 and 2011, HWANG arranged for an intermediary to pay employees at Workforce1 Career Centers a set percentage of NYC-WIB voucher funds secured on applications the employees handled. In return, the Workforce1 Career Center employees gave GENY vouchers special treatment and sent the school business, thereby corrupting unbiased processes that were designed to award vouchers based exclusively on the merits. During that time period, GENY received NYC-WIB vouchers totaling $575,845. Vouchers secured by Johnson, Powell and a third Workforce1 Career Center employee for GENY during this period totaled at least $300,000. Johnson and Powell also engaged in similar conduct with respect to a driving school located in Manhattan.
Additionally, HWANG participated in a visa fraud scheme, in which GENY made misrepresentations in Form I-20 student visa applications it issued that resulted in students receiving, and entering the U.S. based on, F-1 student visas to which they were not entitled.
HWANG, 50, of Weehawken, New Jersey, pled guilty today to one count of bribery conspiracy and one count of visa fraud conspiracy. She faces a maximum sentence of five years in prison on each count, and a maximum fine of $250,000 or twice the gross gain or loss from the offense on each count.
POWELL, 51, of the Bronx, New York, pled guilty to a Superseding Information charging her with two counts of conspiracy, representing the separate bribery schemes involving GENY and the driving school. She faces a maximum sentence of five years in prison on each count, and a maximum fine of $250,000 or twice the gross gain or loss from the offense on each count. JOHNSON, 42, of the Bronx, New York, also pled guilty to a Superseding Information charging him with two counts of conspiracy, representing the separate schemes involving GENY and the driving school. He faces a maximum sentence of five years in prison on each count, and a maximum fine of $250,000 or twice the gross gain or loss from the offense on each count.
Mr. Bharara praised the investigative efforts of ICE HSI.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
U.S. v. Christie Hwang, et al. Indictment
Sarasota Man Sentenced to More Than 7 Years in Federal Prison for Firearms PossessionRead the Press Release
Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Roderick B. Sears (34, Sarasota) to 7 years and 10 months in federal prison for being a felon in possession of firearms. The court also ordered Sears to forfeit the seven firearms and ammunition he possessed. Sears pleaded guilty on November 7, 2012.
According to court documents, Sears has multiple prior drug felony convictions. Because of the prior convictions, Sears is prohibited from possessing firearms or ammunition under federal law. In July 2012, Sears possessed seven firearms, five of which were loaded. He also had more than 300 grams of marijuana, which he intended to distribute and had packaged for sale.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Sarasota County Sheriff's Office, the Manatee County Sheriff's Office, and the Sarasota Police Department. It was be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Reynoldsburg Man Pleads Guilty to Possessing More Than 10,000 Images and 300 Videos of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Zdenek Hrouda, 37, of Reynoldsburg, Ohio pleaded guilty in U.S. District Court to possessing child pornography after investigators found more than 10,000 still images and 300 video files stored on three computers and two external hard drives in his house.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), Reynoldsburg Police Chief James Oneill, and Franklin County Sheriff Zach Scott whose office includes the Franklin County Internet Crimes Against Children Task Force (ICAC) announced the plea entered today before U.S. District Judge Michael Watson.
According to court testimony today by a Reyoldsburg Police Officer on the ICAC task force, in June 2012 an ICAC investigator was patrolling the internet and identified an IP address that was a download candidate for suspected child pornography. Officers searched his home on July 5, 2012 and found the computers.
When Hrouda learned he was under investigation, he fled back to his home country, the Czech Republic. He returned to the United States voluntarily in October 2012.
Possession of child pornography is punishable by up to ten years in prison, a fine of up to $250,000 and at least five years of supervised release. While on supervised release, he will also have to register as a sex offender anywhere he lives, works or goes to school.
Stewart commended the investigation by the ICAC Task Force, the FBI and Assistant U.S. Attorney Deborah A. Solove, who represented the United States in the case.
Restaurateur Sentenced to Probation for Tax FraudRead the Press Release
PITTSBURGH - A resident of Pittsburgh has been sentenced in federal court three years probation on his conviction of committing tax fraud, United States Attorney David J. Hickton announced today.
Chief United States District Judge Gary L. Lancaster imposed the sentence on Thomas N. Liadis, Sr., age 61.
According to information presented to the court, Liadis was the owner of the Grecian Isles local chain of Greek restaurants in the Pittsburgh area, with locations at the PPG building, USX Tower, and Station Square. In 2010, Liadis was targeted in a proactive IRS investigation into restaurant owners that were not reporting their gross receipts accurately to the IRS. At that time, Liadis had listed his restaurants for sale and in order to sell his restaurants, was disclosing each restaurant's total revenue. As part of the undercover investigation, these figures were compared with the numbers disclosed in Liadis's IRS 1040 tax returns, and discovered to be significantly higher. During the undercover operation, Liadis provided records to an IRS agent posing as a prospective buyer that supported the higher figures that were reported as part of the sale of the business, and not the numbers reported on Liadis' prepared tax returns. Liadis further admitted to the IRS undercover agent that he under-reported income to the IRS. A search warrant was executed at Liadis' businesses and residence and records were seized. The records indicating the actual gross receipts for Liadis' businesses were recovered. Comparison of Liadis' business records with his IRS filings for the tax years 2007, 2008, and 2009 indicate that Liadis under-reported a total of $1,011,369 of receipts resulting in a tax loss of $103,706. Specifically, on or about April 15, 2010, Thomas Liadis filed his United States Individual Income Tax Return Form 1040 for the 2009 tax year, which was verified by him in a written declaration that it was made under the penalties of perjury and filed with the Internal Revenue Service, that declared that the gross receipts of the Island Café at Station Square was $121,791 when in fact records obtained from Liadis indicated that his true gross receipts for Island Café in 2009 were $414,076.51.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service (IRS) for the investigation leading to the successful prosecution of Liadis.
Pittsburgh-based Bank to Pay U.S. for Failing to Engage in Prudent Underwriting Practices on SBA Loan GuaranteesRead the Press Release
PNC Bank N.A. has agreed to pay the United States $7.1 million to settle claims under the False Claims Act that it failed to engage in prudent underwriting practices in connection with the issuance of loans guaranteed by the Small Business Administration (SBA), the Justice Department announced today. PNC has also agreed to take corrective action to prevent similar occurrences in the future. PNC is a national banking association located in Pittsburgh.
The SBA Act allows banks to partner with the SBA to make loans to qualified small businesses. Participants in the SBA’s Preferred Lenders Program, like PNC, have authority to make and close these loans without obtaining the prior approval of the SBA. SBA guaranteed 75 percent of the balance of the loans in question. Banks are required to exercise prudent lending standards when making loans under the Preferred Lenders Program.
In 2005, under the Preferred Lender Program, PNC issued 64 SBA-guaranteed loans for the purchase of 98 Uni-Marts stores located primarily in the mid-Atlantic region. The United States alleges that in connection with these loans, PNC relied upon unaudited financial statements without further verifying whether the information contained in the financial statements was accurate. Of the 64 SBA-guaranteed loans issued by PNC, 36 have defaulted, triggering SBA’s obligations to pay PNC 75 percent of the balance of the defaulted loans. In May 2008, Uni-Marts filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.
“Banks that are SBA preferred lenders have a duty to prudently guard the public funds they commit to borrowers,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “The government will pursue vigorously lenders that fail to adequately safeguard public funds due to deficient lending standards.”
Principal Deputy Assistant Attorney General Delery thanked the Justice Department’s Civil Division, the SBA Office of General Counsel and the SBA Office of Inspector General for the collaboration that resulted in the settlement announced today. The claims settled by this agreement are allegations only; there has been no determination of liability.
Paralegal Sentenced to 30 Months for Role in Property Mortgage ScamRead the Press Release
BOSTON - A Roslindale woman was sentenced yesterday for her role in a multi-year, multi-property mortgage fraud scheme.
Rebecca L. Konsevick, 40, was sentenced by U.S. District Judge Denise J. Casper to 30 months in prison, to be followed by two years of supervised release. In May 2012, Konsevick pleaded guilty to bank fraud and money laundering.From 2006 through 2008, Konsevick committed fraud in connection with condominium sales. Sirewl Cox, a developer, identified multiple-family buildings for sale and recruited straw buyers to purchase the buildings. Cox and others then recruited straw buyers to purchase individual units in buildings. The straw buyers’ financing for the purchases was obtained by falsely representing key information to mortgage lenders such as the buyers’ income, employment, assets, and/or intention to reside in the condominiums. In addition, Konsevick and Cox caused HUD-1 settlement statements to be submitted to the same lenders which falsely represented that straw buyers had paid funds in connection with the property transactions and falsely represented how the proceeds of the mortgage loans were disbursed. In Massachusetts, property transactions must be closed by attorneys so Konsevick, who was a paralegal, falsely signed certifications on these HUD-1 settlement statements and closed the relevant property deals.
Sirewl Cox was convicted by a jury of wire fraud, bank fraud, and conducting an unlawful monetary transaction. Sentencing is scheduled for Feb. 6, 2013.
United States Attorney Carmen M. Ortiz; Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service; William P. Offord, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Cary Rubenstein, Special Agent In Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, New York Regional Office; made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Ryan M. DiSantis and Jeremy M. Sternberg of Ortiz’s Economic Crimes Unit.Monroe Doctor Sentenced for Distributing Growth HormonesRead the Press Release
More than $400,000 worth of illegal hormones sold
SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that Dr. Linda Camille Bunch Wells, 53, of Monroe, was sentenced Thursday to 27 months in federal prison and ordered to forfeit $200,000 in criminal proceeds for importing and distributing adult growth hormones.
In June 2010, Wells was charged in a 21-count indictment with conspiracy, distribution, and facilitation and receipt of smuggled hGH. She was administering the growth hormones at the Northeast Louisiana Anti-Aging and Wellness Center in Monroe from July 2003 until July 2008. The hormones were part of a so-called anti-aging program for patients. Most of the hormones administered were illegally imported into the U.S. Wells and her business partners would buy the drugs overseas, and the packages would be labeled non-medial products in order to pass through U.S. Customs.
Under federal law, growth hormones may only be used for the treatment of specified diseases. Although Wells was only held accountable for distributing $200,000 in illegal growth hormones, evidence at sentencing revealed that the company administered more than 26,926 units of the hormones over the five-year period totaling more than $406,000 in sales.
“We will prosecute those who circumvent the law to provide controlled substances to patients for personal gain, ”U.S. Attorney Stephanie A. Finley said. “Those involved in this operation knowingly obtained these hormones illegally and released them into the community with no concern for the safety of those who were taking them.”
The Food and Drug Administration/Office of Criminal Investigations and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Earl Campbell prosecuted the case.
Missouri Man Sentenced for Production of Child PornographyRead the Press Release
Gary A. McArthur, 50, of Arnold, Missouri, was sentenced on January 25, 2013, to a term of 180 months in prison on a one-count indictment charging him with Production of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
McArthur was also ordered to serve a term of lifetime supervised release following his imprisonment. There is no parole in the federal system. Additionally, McArthur was fined $1,250 and ordered to pay a $100 special assessment. McArthur pled guilty to the indictment on October 18, 2012 and has been detained (held without bond) since his arraignment on June 15, 2012.
Court documents establish that the violation occurred between September 2011 and March 31, 2012, when McArthur resided with a friend, R.H., and her minor relative in Madison County, Illinois. On March 31, 2012, R.H. reported to the Madison County Sheriff’s Department that she had discovered that McArthur had been engaged in a continuing sexual relationship with her 13-year old minor relative. In a recorded interview with the Madison County Sheriff’s Department, McArthur admitted that he had been having sexual intercourse with the 13-year old minor for several months. McArthur is currently charged in the Madison County Circuit Court with four counts of Aggravated Criminal Sexual Abuse for those acts. Of course, a charge is not proof of guilt. McArthur is presumed innocent of the charge until proven guilty beyond a reasonable doubt.
The federal charges came about when, after McArthur was arrested, a detective with the Madison County Sheriff’s Department, who also serves as a Special Investigator with the FBI Cyber Crimes Task Force, performed a forensic examination of McArthur’s cellular phone. It was discovered that on March 7, 2012, McArthur had taken a pornographic photograph of the victim depicting the minor’s nude genital area.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Madison County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Ali Summers and Nathan Stump.
Madison Woman Sentenced for Embezzling Funds from EmployerRead the Press Release
Amy M. Shelby, 38, of Madison, IL, was sentenced to fifteen months in prison, to be followed by three years on supervised release, and restitution of $112,383.52, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Shelby was indicted by a grand jury in July 2012 and later Shelby plead guilty to the federal offense of wire fraud.
The instant offense was investigated by the Federal Bureau of Investigations (FBI), following a complaint made by James Green Management (JGM), the owner and management office of Oakmont Mini-Storage. Prior to the complaint, Pitney Bowes Visa credit card company contacted JGM to inquire about delinquent payments on an existing Pitney Bowes account, which JGM was unaware existed. Subsequent audit results found Amy Shelby, the manager of Oakmont Mini- Storage, had applied for a Pitney Bowes commercial credit card for Oakmont Mini-Storage in 2006, which held her name. Amy Shelby had used the commercial credit card to purchase numerous fraudulent charges which included personal purchases such as for perfume and satellite television service, payments for personal bills, and a monthly credit report service. The audit also found Shelby had access to Oakmont Mini-Storage’s operating bank account(s), and she was paying the Pitney Bowes credit card bills, and additional personal bills, with company funds. In addition, the audit found Shelby had simply kept numerous cash deposits and/or payments made to Oakmont Mini- Storage for storage units.
The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
Lubbock Man Sentenced to Nine Years in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — James Galen Brown, 40, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to nine years in federal prison and a 10-year term of supervised release, following his guilty plea in October 2012 to one count of transportation of child pornography. Brown admitted that he used his cell phone, and its texting functions, to intentionally send and receive images and videos of child pornography. Judge Cummings ordered that Brown surrender to the Bureau of Prisons on March 1, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on June 1, 2012, Special Agents with U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) interviewed Brown after receiving information that a telephone number assigned to Brown had received text messages with attachments of child pornography. Brown admitted that he used the cell phone to communicate with other individuals who shared an interest in sexually explicit images and videos of minors, and he used his cell phone to trade the material with those persons. He located these persons on Internet chat rooms and exchanged phone numbers with them, and then traded the child pornography images and videos by attaching them to text messages.
This matter was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc/ For more information about internet safety education, please visit www.justice.gov/psc/ and click on the tab "resources."
Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
Lubbock Man Sentenced to 135 Months in Federal Prison for Downloading Child Pornography from the InternetRead the Press Release
LUBBOCK, Texas — Richard Mendoza, 22, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 135 months in federal prison and a 15-year term of supervised release, following his guilty plea in October 2012 to one count of receipt of child pornography. He has been in custody since his arrest in August 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in January 2012, while searching on the Internet for videos depicting minors engaging in sexually explicit conduct, Mendoza intentionally and knowingly downloaded a digital video file depicting a female child, under the age of 18, engaged in sexually explicit conduct.
This matter was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc/ For more information about internet safety education, please visit www.justice.gov/psc/ and click on the tab "resources."
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Steven M. Sucsy.
Last of Three Defendants Sentenced to More Than 22 Years in Prison for Two Armed Robberies in MonroeRead the Press Release
CHARLOTTE, N.C. – On Wednesday, January 23, 3013, the last of three defendants involved in armed robberies of two Monroe businesses in October 2010 was sentenced to 268 months in prison, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
In addition to the prison term, U.S. District Court Judge Max O. Cogburn, Jr. ordered Reginald Lamont Chambers, 27, of Monroe, to serve three years of supervised release and to pay $3,100 as restitution.
Joining U.S. Attorney Tompkins in making today’s announcement are Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol Tobacco Firearms and Explosives (ATF), Charlotte Field Division and Chief Debra C. Duncan of the Monroe Police Department.
According to filed court documents and statements made in court, on October 18, 2010, Chambers robbed a Dollar General store on East Sunset Drive in Monroe. During the robbery, Chambers held the store clerk at gun point and forced the store clerk to open the safe. Court records show that Chambers then ripped the store’s telephones out of their jacks and took the phones with him. Chambers also attempted to lock the store clerk in the back office before leaving with the store’s money.
According to court documents and statements made in court, October 20, 2010, Chambers and his co-defendants, Anthony Polk and Trenton Raley, robbed La Chiquita store on Concord Avenue, in Monroe. Chambers and Raley held up at gun point two store clerks, and robbed money from the store and one of the clerk’s purses and its contents. Polk was the get-away driver in the robbery. Court records show that all three defendants were arrested in the early morning hours on October 21, 2010, in the get-away car and in possession of the firearms used by Chambers and Raley.
In December 2011, Chambers, who is a member of the United Blood Nation street gang, pleaded guilty to two counts of robbery of a business affecting interstate commerce, also known as “Hobbs Act” robberies, one count of carrying and brandishing a firearm in furtherance of robbery, and one count of possession of a firearm by a convicted felon. Under the United States Sentencing Guidelines, Chambers was sentenced as a an armed career criminal. v
On November 29, 2011, Raley, 20, of Peachland, N.C., pleaded guilty to one count of Hobbs Act robbery and one count of carrying and brandishing a firearm in furtherance of a crime. He was sentenced also sentenced on Wednesday, January 23, 2013, to serve 67 months in prison followed by three years of supervised release. On December 1, 2011, Polk, 30, of Monroe, pleaded guilty to one count of Hobbs Act robbery. He was sentenced on October 23, 2012, to 51 months in prison and three years of supervised release. Raley and Polk will be jointly and severally liable with Chambers for restitution to the victims of the La Chiquita robbery.
All three defendants are in local federal custody. Upon designation of a federal facility they will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The investigation was handled by the ATF and the Monroe Police Department. The prosecution was handled by Assistant United States Attorney J. George Guise.
Jury Finds Defendant Guilty of Tax Evasion, Failure to File ReturnsRead the Press Release
PITTSBURGH - After deliberating for 1½ hours, a federal jury of six men and six women found Thomas D. Tuka guilty of four counts of income tax evasion and three counts of failure to file tax returns, United States Attorney David J. Hickton announced today.
Tuka was tried before United States District Judge Terrence F. McVerry in Pittsburgh, Pa.
According to Assistant United States Attorney Leo M. Dillon, who prosecuted the case, the evidence presented at trial established that Tuka failed to file taxes, and evaded income tax on more than $480,000 in taxable disability income he received during the period from 2003 to 2008.
Judge McVerry scheduled sentencing for May 24, 2013 at 10:30 a.m. On each of the four tax evasion counts, the law provides for a maximum total sentence of five years in prison, a fine of $250,000, three years supervised release and a $100 special assessment. The maximum penalty for each of the failure to file counts is one year imprisonment, a fine of $100,000, one year supervised release and a $25 special assessment. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant on bond.
The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Tuka.
Juneau Man sentenced to 170 months for drug conspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen Loeffler announced today that a Juneau resident was sentenced in Juneau to federal prison for drug conspiracy.
U.S. District Court Judge Timothy M. Burgess sentenced Juneau resident Darrell W. Dawson, 44, to 170 months in prison, for his role in a drug trafficking conspiracy. There is no parole in the federal system.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation involving the Federal Bureau of Investigation, United States Postal Inspection Service and Juneau Police Department - Drug Metro Unit involving the importation of methamphetamine into Juneau, Alaska, using a United States Postal Service USPS Express Mail parcel. In July 2012, Darrell W. Dawson and Gema G. Thomas conspired to transport methamphetamine from the lower 48 to Juneau, Alaska. Dawson provided Thomas $15,000.00 in drug proceeds for six ounces of methamphetamine. Thomas arranged for and paid for the delivery of six ounces of methamphetamine to be delivered to her business, Peer-Amid Beads, from her source of supply in the lower 48 via USPS Express Mail. Once received, Thomas delivered the methamphetamine to Dawson who distributed the methamphetamine to others in the Juneau area and collected drug proceeds for future payment to Thomas for an additional six ounces of methamphetamine. Thomas is scheduled to be sentence on March 8, 2013, for her role in the drug conspiracy.
Prior to imposing sentence, Judge Burgess stated the serious of the offense, deterrence of the defendant and others, the protection of the public, and rehabilitation of the defendant related to his criminal history as reasons that supported the imposition of the above sentence.
Ms. Loeffler commended the Federal Bureau of Investigation, United States Postal Inspection Service, and Juneau Police Department - Drug Metro Unit for the investigation leading to the successful prosecution of Dawson.
Judge Sentences Miami Men for December 2010 Murder of Postal Worker in Identity Theft SchemeRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CI), J.D. Patterson, Acting Director, Miami-Dade Police Department, and Marc Elias Jr., Chief, North Miami Police Department, announce the sentence of Pikerson Mentor, 30, of Miami, to a life imprisonment. Saubnet Politesse, 24, was sentenced to 21 years imprisonment after pleading guilty to being Mentor’s getaway driver during the robbery resulting in U.S. Postal Service employee Bruce Parton’s death. Both sentences were imposed by U.S. District Court Judge Donald Graham.
Mentor had been previously convicted after a seven-day trial, during which approximately 40 witnesses were called. At the conclusion of that trial, the jury convicted Mentor of all fourteen counts of the Second Superseding Indictment, which included the murder of a federal government employee while in the course of his duties, in violation of Title 18, United States Code, Sections 1114 and 111; car-jacking, in violation of Title 18, United States Code, Section 2119; theft of a key for a U.S. Postal Service mail receptacle, in violation of Title 18, United States Code, Section 1704; use of a firearm in the commission of a crime of violence, in violation of Title 18, United States Code, Section 924(j); conspiracy to commit and commission of access device fraud, in violation of Title 18, United States Code, 371 and 1029(a)(2); and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
U.S. Attorney Wifredo A. Ferrer stated, “The sentences imposed today on the defendants for the ruthless murder of Bruce Parton, a hard-working and dedicated mail carrier, should send a clear message to our community: there are lifelong consequences to senseless acts of violence. I hope that the life imprisonment sentence of Pikerson Mentor, and 21 years imprisonment sentence of Saubnet Politesse, will bring some comfort and sense of justice to Mr. Parton’s family.”
Antonio J. Gomez, Acting Inspector in Charge for U.S. Postal Inspection Service stated, “Today’s sentencing is the result of the U.S. Postal Inspection Service working diligently with law enforcement partners to make sure that U.S. Postal Service employees are protected.”
“The death of U.S. Postal Service employee Bruce Parton is an absolute tragedy, and individuals who commit crimes of this magnitude deserve to be punished to the fullest extent of the law,” said Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI). “Faced with the unique circumstances of this case, IRS Criminal Investigation along with our law enforcement partners and the United States Attorney's Office were committed to investigating and prosecuting these individuals who chose personal monetary gain over the value of another human being's life.”
“We hope that the family of Mr. Parton has found some justice with today’s sentencing. We are grateful for the cooperation and dedication of all the agencies that lead to the successful arrests and prosecution of the case,” said J.D. Patterson, Acting Director of the Miami-Dade Police Department.
North Miami Police Department Chief Marc Elias, Jr. stated, “The North Miami Police Department is proud to have worked in partnership with the United States Postal Inspection Service and our Federal and Local law enforcement agencies in bringing the murderers of Bruce Parton of the U.S. Postal Services to justice. This is another example of law enforcement agencies collaborating to remove armed and dangerous subjects from the streets of South Florida.”
According to trial evidence, U.S. Postal Service letter carrier Bruce Parton was murdered on December 6, 2010 as he delivered mail to the Monte Carlo apartment complex in northwest Miami. Mentor and his accomplices stole the victim’s U.S Postal master key, called an Arrow Key, and the keys to the victim’s postal truck. Postal keys are used by letter carriers to access mailboxes. Witnesses testified that they heard two shots at the scene, and an eyewitness testified that she saw the defendant fleeing the apartment complex in the victim’s stolen truck. In addition, Saubnet Politesse, a co-conspirator who testified regarding his role in the conspiracy, confirmed that Mentor had shot the victim mail carrier. In addition, witnesses explained how the defendants used the stolen master key to enter mailboxes to steal private financial and personal identification information and to intercept debit cards loaded with fraudulently obtained tax refunds.
During trial, North Miami Police detectives testified about the May 4, 2011, arrest of Saubnet Politesse for driving without a license. During that arrest, the officers discovered a unique looking key with an obliterated serial number. The serial number was subsequently restored and matched the serial number of the victim’s stolen master key. Upon being questioned by the police, Politesse described his, Mentor’s and another person’s participation in the December 6 robbery and murder. Thereafter, early in the morning of May 5, 2011, defendant Mentor was arrested.
Politesse pleaded guilty to charges related to his participation in the robbery/homicide as a getaway driver. Politesse testified as a government witness and was ultimately sentenced to 21 years’ imprisonment during the sentencing hearing immediately following Mentor’s sentence.
Mr. Ferrer commended the investigative efforts of the U.S. Postal Inspection Service, IRS-CI, Miami-Dade Police Department and the North Miami Police Department. This case is being prosecuted by Assistant U.S. Attorneys Anthony LaCosta and Roy Altman.
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.
Jefferson County Man Sentenced for Nederland Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 32-year-old Nederland, Texas man has been sentenced to federal prison for robbing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher Levi Woodcock pleaded guilty on Sep. 27, 2012 to bank robbery and was sentenced to 43 months in federal prison on Jan. 24, 2013 by U.S. District Judge Ron Clark. Woodcock was also ordered to pay restitution in the amount of $1,971.00.
According to information presented in court, on Jan. 13, 2012, Woodcock entered Community Bank at 2008 Hwy 365 in Nederland and presented a note demanding money from a teller. Fingerprint analysis of the demand note and community tipsters led to the arrest of Woodcock.
This case was investigated by the FBI and the Nederland Police Department and prosecuted by Assistant U.S. Attorney John Craft. ####