COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on February 19, 2019, Andrew Simet, 41, of Omaha, was sentenced to nineteen months in prison by United States District Court Chief Judge John A. Jarvey for Interstate Communication of a Threat. Simet was ordered to serve three years of supervised release to follow his prison term.

Simet entered a guilty plea to using social media, sending voice messages, and e-mails to an Iowa District Court Judge and an Iowa Public Defender that contained language that would knowingly be perceived as legitimate threats.

This case was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

CLARKSBURG, WEST VIRGINIA – Oscar Aaron Watkins, of Philadelphia, Pennsylvania, has admitted to his involvement in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
 
Watkins, also known as Eric Oscar Watkins, age 58, pled guilty to one count of “Conspiracy to Distribute Controlled Substances.” Watkins admitted to participating in a drug distribution operation in October 2018 in Monongalia County. 

Watkins faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Morgantown Police Department investigated. 

U.S. Magistrate Judge Michael John Aloi presided.

Memphis, TN – Representatives from the Tennessee Bureau of Investigation (TBI), the Federal Bureau of Investigation (FBI), the 25th Judicial District Attorney General and the Hardeman County Sheriff today announced a $24,000 reward, in a renewed effort to gain additional information about a 1998 unsolved murder in Hardeman County.

Twenty-one-years ago, TBI Special Agents joined the Hardeman County Sheriff’s Office in investigating the July 23, 1998 murder of Michael Bell, a clerk at McKee’s Stateline Convenience Store, located on Highway 125 S between Middleton, Tennessee, and Walnut, Mississippi. At that time, the investigation revealed that an unknown individual shot and killed the clerk, then left the store in a 1990’s General Motors model sedan, and drove toward Walnut, Mississippi. Information gathered during the investigation indicated that robbery did not appear to have been the motive of the shooting of Michael Bell, but he was instead the target of a coordinated murder.

The Federal Bureau Investigation (FBI), TBI, 25th Judicial District Attorney General’s Office and the Hardeman County Sheriff’s Office continue to aggressively investigate this 1998 murder. The partnership has resulted in new leads being developed in this case.

Based upon the new information, U.S. Attorney Mike Dunavant, 25th Judicial District Attorney General Mark Davidson and FBI Special Agent in Charge M.A. Myers, will again announce today the availability of the $24,000 reward. Investigators are confident there are people in the community who can provide information that will assist in bringing this investigation to a conclusion. This reward is for information that directly assists law enforcement in the arrest and conviction of the person and/or persons responsible for the death of Michael Bell.

Anyone with information about the July 23, 1998 murder of Michael Bell at the McKee’s Stateline Convenience Store in Hardeman County should call 1-800-TBI-FIND.

Photos enhanced in the FBI’s lab in Quantico, Virginia, May 2018.

Michael Bell - Victim

Yesterday, Thomas Michael White, 60, of Parkland, Florida was sentenced to 14 years in prison for leading a multi-year conspiracy that robbed over a dozen senior citizens of their retirement money.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Pamela Epting, Interim Commissioner, Florida Office of Financial Regulation (OFR), made the announcement.

A jury in Miami found White guilty, on December 13, 2018, of one count of conspiracy to commit mail and wire fraud and four counts of mail fraud, in connection with the scheme to fraudulently raise $2 million from over a dozen elderly victims throughout the United States  (Case No. 18-60174-CR-Bloom).  U.S. District Judge Beth Bloom sentenced White (the mastermind of the fraud scheme) to a total of 168 months in prison.  He was also ordered to pay $1,936,400 in restitution to his victims and serve three years of supervised release. 

According to the court record, including evidence introduced at trial, White was President and CEO of First Call Ventures, LLC, the parent company of First Call Movers & Transport of Florida, LLC, a moving company that also brokered customer moves for other companies. From November 2011 through mid-2014, White ran the Broward-based moving business’ call center that booked moves throughout the Southeast.  He also oversaw a "phone room" out of his corporate offices to raise money from investors.  During telephone calls, White and his co-conspirators used false statements, manipulation, and high-pressure tactics to target elderly investors (“vulnerable, elderly victims”) and their retirement money. The victims included retired teachers, farmers, small business owners, and homemakers, from across the United States.  When his targets did not have available funds to invest, White tricked them into converting their Individual Retirement Account ("IRA") money and transferring the funds to his corporate bank account.   As a result, White and his conspirators were given a total of more than $2 million from over a dozen senior citizens.

In truth and fact, White and his partners used the investors’ money for themselves, including millions in cash and bank check payments.  Bank records also demonstrated that over the course of the fraud scheme, White withdrew over $130,000 in investor proceeds at the Seminole Coconut Creek casino.   White and his partners siphoned all profits and victim money to their own personal accounts, declared a $1.8 million "loss," and shuttered the business.  As a result of the fraudulent scheme, some of the senior citizens are now living on food stamps, lost their homes, or were forced to take on odd jobs for income.

Four other individuals tied to this case and a related indictment previously pled guilty.  White's co-defendants, John Kevin Reech, 56, of Delray Beach, Florida, and Joseph Mario Genzone, 53, of Boca Raton, Florida, previously pled guilty.  Genzone and Reech were also recently charged by Information for operating a separate offering fraud (Case No. 18-80193-CR-Bloom).  Reech pled guilty in both matters and was sentenced to a concurrent term of 51 months' imprisonment.  Genzone also pled guilty and on December 21, 2018, Judge Bloom sentenced him in both cases to 41 months' imprisonment, concurrently.  Daniel Joseph Touizer, 44, of Aventura, Florida was sentenced to 68 months' imprisonment for leading a similar fraud scheme linked to White and Reech’s criminal conduct (Case No. 17-60286-CR-Bloom).  Saul Daniel Suster, 66, of Sunny Isles Beach, Florida, a phone room worker of Touizer's, was sentenced to 30 months’ imprisonment.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and Florida OFR in this matter.  This case was prosecuted by Assistant U.S. Attorney Roger Cruz.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

ATLANTA –Kevin Perry has been arraigned on charges that he ran a foreign currency investment fraud scheme.

“This defendant allegedly defrauded investors who trusted him with their hard-earned money,” said U.S. Attorney Byung J. “BJay” Pak.  “Even after regulators took action against Perry, he allegedly continued to seek to defraud investors, including at one point attempting to defraud an undercover FBI agent.” 

“Instead of living off well-earned investments, Perry’s alleged victims now have to worry about their financial futures,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Nothing can make victims of investment fraud whole again, but the FBI will continue to make it a priority to investigate and punish anyone who preys on investors for their own personal greed.” 

According to U.S. Attorney Pak, the charges, and other information presented in court: Perry allegedly led investors to believe that his investment company, Lucrative Pips, was successfully earning substantial profits by investing in the foreign currency (or “forex”) market.  Perry induced investors into sending money by signing agreements that claimed the investors’ initial investments were secure from loss.  In actuality, Lucrative Pips was never registered as a “commodity pool operator” with the Commodity Futures Trading Commission.  Also, Perry had never generated the historical returns represented to investors, and he was using investor money to enrich himself or to pay off other investors, with the goal of enticing others to invest with him.

The indictment further alleges that even after the Commodity Futures Trading Commission filed a civil complaint against Perry, he continued to make fraudulent investment pitches to potential investors.  In December 2018, Perry made a series of fraudulent investment pitches to an undercover FBI agent, who was posing as a potential investor.  Perry told the undercover FBI agent that an investment of $10,000 would return a profit of $19,000 to $25,000 per month and that he minimized any risk by doing a “100% money-back guarantee.”

Kevin Perry, 21, of Cartersville, Georgia was arraigned Monday, February 25, 2019 before U.S. Magistrate Judge Catherine M. Salinas.  A federal grand jury returned an indictment on December 12, 2018, alleging that Perry committed wire fraud.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the FBI.

Assistant U.S. Attorney Thomas J. Krepp and Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crime Section, are prosecuting the case.   The Commodity Futures Trading Commission provided invaluable assistance throughout the course of the investigation. 

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

GREAT FALLS—Great Falls resident Macedonia Frances Mondragon, who hid methamphetamine inside her body, was sentenced on Wednesday to 66 months in prison and four years of supervised release for conviction of possessing meth, U.S. Attorney Kurt Alme said.

Mondragon, 33, pleaded guilty in November to possession with intent to distribute meth.

U.S. District Judge Brian M. Morris presided.

Prosecutors said Mondragon initially was arrested on warrants after Great Falls police officers responded to a shoplifting report involving four individuals on March 16, 2018 at Walmart. Officers searched Mondragon’s purse and found stolen items, a cell phone, drug paraphernalia and a notebook that appeared to be a drug ledger. Officers also seized a money wire receipt showing that a member of the group had just transferred $800 to a person in California.

While being booked into jail on city warrants and the theft from Walmart, a detention officer found a package containing 46.4 grams of meth concealed in Mondragon’s body.

Further investigation by Homeland Security agents found that Mondragon had been involved in distributing meth in the Great Falls area for at least the previous two months.

Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by Homeland Security Investigations and the Great Falls Police Department.

The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

XXX

BOSTON – A Beverly man was arrested today and charged in federal court in Boston for sending nine letters, one of which contained a white powder, to the online dating website OkCupid.com.

Liam MacLeod, 47, was charged by criminal complaint with mailing threatening communications and conveying false information and hoaxes. He will appear today in federal court in Boston at 3:30 p.m.

According to the complaint, between September and December 2017, OkCupid’s corporate headquarters in Dallas, Texas, received nine mailings containing either threatening communications and/or suspicious substances. All of the mailings were addressed to OkCupid’s Chief Executive Officer (CEO).

It is alleged that on or about Sept. 12, 2017, MacLeod mailed an envelope addressed to OkCupid’s CEO in Dallas containing a suspicious white powder, along with a handwritten letter with the following text:

          Greeting from Beverly

          Ban me will ya

          Welcome to the wonderful world of ANTHRAX

          Expect a package within the next couple of days

          It won’t be ticking but it should be interesting!

On or about Sept. 14, 2017, MacLeod allegedly mailed another envelope addressed to OkCupid’s CEO in Dallas containing a typewritten letter with the following message, amongst other text:

          How’d you like what I sent you?  Aww, go take a powder. Oh, the things I have in store for you!  I            can go on like this for years. How long can you last?

          Incidentally, my father was an angel: That’s Hell’s

          Angel to you.  You see, we have some pull.  Take for

          example your vehicles.  We now know who owns

          what, and where each of you parks his.

          Hmm, think of the possibilities!

On or about Sept. 20, 2017, the complaint alleges that MacLeod sent a third envelope to OkCupid’s CEO in Dallas. The envelope and its contents, a single piece of white paper, each contained significant red-brown staining consistent with blood. The next day, Sept. 21, 2017, MacLeod mailed another letter addressed to OkCupid’s CEO containing a typewritten letter wherein MacLeod indicated that the red-brown staining on the previous letter was blood infected with the AIDS virus.

It is further alleged that between Oct. 4, 2017 and Dec. 21, 2017, MacLeod mailed five additional envelopes addressed to OkCupid’s CEO in Dallas, each containing threatening communications and/or suspicious substances. Each of these mailings generated a hazmat response by federal law enforcement in order to rule out the presence of active biological or chemical agents. Laboratory testing later confirmed that the substances contained in the envelopes mailed by MacLeod, including the white powdery substance, did not contain hazardous materials.

The charge of false information and hoaxes provides for a sentence of no greater than five years in prison, one year of supervised release and a fine of up to $250,000. The charge of mailing threatening communications provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement today. The investigation was conducted by the FBI Boston’s Joint Terrorism Task Force, with assistance from the Beverly Police Department. OkCupid and its parent company has been fully cooperative with the investigation. Assistant United States Attorney Jason A. Casey of Lelling’s National Security Unit is prosecuting the case.

Details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Baltimore, Maryland – Devon Dent, age 28, of Baltimore, Maryland pleaded guilty on February 27, 2019, to racketeering and drug conspiracies related to his participation in the gang activities of the Murdaland Mafia Piru (MMP), a subset of the Bloods gang.  As part of his gang activities, Dent admitted that he distributed crack cocaine for the gang and that he was present when a MMP co-defendant attempted to kill a victim outside a Baltimore nightclub, shooting that person multiple times in the head and torso. 

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Acting Commissioner Michael Harrison of the Baltimore Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.

According to Dent’s plea agreement and court documents, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates in Maryland and elsewhere.  MMP was modeled after the Italian Mafia, and was organized hierarchically, with “the Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath.  For many years, MMP has controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, Woodlawn, and Walbrook Junction.  The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states.  MMP’s members enriched themselves through drug trafficking and other criminal activities, and using violence and threats of violence to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.

Dent admits that he was a member of MMP and participated in the gang’s affairs through a pattern of racketeering activities, including murder, extortion, robbery, witness tampering and retaliation, money laundering, and drug distribution.  Specifically, Dent admits that on October 15, 2012, he was present when a co-defendant attempted to murder a victim, shooting him multiple times in the head and torso with a .45 caliber firearm outside Club Mirage in downtown Baltimore.  A closed-circuit television camera captured the incident, and showed Dent arriving at Club Mirage with four other MMP members, including one who was wearing a red shirt with the words “MOBB SQUAD” on the back and filmed the victim with a tablet device shortly before the shooting. 

On November 4, 2012, Dent possessed with intent to distribute roughly 12 grams of heroin and 21 grams of crack cocaine, as well as MMP paperwork.  The paperwork detailed the history and structure of the gang, as well as certain rules of conduct, including that “retaliation is a must,” and that “co-operation with authorities that lead[s] to incriminating others” is punishable by death.

On April 15 and April 22, 2015, Dent distributed crack cocaine on Gwynn Oak Avenue to an undercover officer who was wearing an audio-video recording device.

Including Dent, twenty of twenty-six defendants have pleaded guilty in the case.  Trial is tentatively scheduled to begin on March 18, 2019 for the remaining defendants.

Dent and the government have agreed that if the Court accepts the plea agreement, Dent will be sentenced to between 10 and 15 years in prison.  U.S. District Judge Catherine C. Blake has not yet scheduled sentencing for Dent. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.

United States Attorney Robert K. Hur praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution.  Mr. Hur thanked Assistant United States Attorneys Christina Hoffman and Lauren E. Perry, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

# # #

BILLINGS—A Billings man convicted at trial of firearms crimes was sentenced to five years in prison and three years of supervised release on Wednesday, U.S. Attorney Kurt Alme said.

Jerome Lawrence Wigmore Jr., 49, was convicted in a two-day jury trial in October on all three counts, including felon in possession of firearms, possession of an unregistered firearm and possession of a firearm not identified by a serial number.

Prosecutors presented evidence that law enforcement officers served an arrest warrant on Wigmore in a Billings motel room on Jan. 4, 2018. Officers found that Wigmore possessed a .357-caliber revolver and a .22 caliber weapon made from a rifle, which was not identified by a serial number. Wigmore is prohibited from possession firearms because of a prior felony conviction for aggravated assault in Rosebud County.

Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Marshals Service Montana Violent Offenders Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

XXX

Tampa, FL – Luckner Stimphil (55, Brandon) has pleaded guilty to conspiracy to defraud the United States. His daughter, Elwolfine Dufort (31, Riverview), pleaded guilty on February 21, 2019, for her role in the conspiracy. Stimphil and Dufort each face a maximum penalty of five years in federal prison. A sentencing date has not yet been set.

Pursuant to their plea agreements, Stimphil and Dufort have agreed to pay more than $11 million in restitution to the U.S. Department of the Treasury relating to the conspiracy. Stimphil also consented to pay all taxes, interest, and penalties found to be owed and due to the IRS relating to his personal tax returns for years 2012 and 2013. Stimphil and Dufort have also agreed to be permanently enjoined from preparing or assisting in the preparation or filing of federal tax returns for any other person or entity; from maintaining any association with a tax return preparation business; and from instructing, teaching, or otherwise training any person in the preparation of federal tax returns.        

According to court documents, Stimphil, the then-pastor at First Calvary Family Life Ministry located on Martin Luther King Jr. Blvd., in Tampa, created and operated Top Popular Tax, a tax return preparation business with offices in Tampa, Winter Haven, and elsewhere. The business operated from 2011 through at least mid-2015. There, Stimphil, his daughter (Dufort), and others working under Stimphil’s supervision, routinely assisted in and advised clients in the preparation and presentation of tax forms to the IRS, which included materially false and fraudulent information on client-taxpayers’ Schedule C Forms (business income or loss) and Forms 8863 (associated with a claim for the American opportunity credit). Some of the information submitted on Forms 1040 also included a false and fraudulent claim for a credit for federal tax on fuels on Form 4136. 

This case was investigated by IRS - Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Jay G. Trezevant and Craig Gestring.

          Seattle - Huawei Device Co., Ltd. and Huawei Device USA Inc. were arraigned today on charges of theft of trade secrets conspiracy, attempted theft of trade secrets, seven counts of wire fraud, and one count of obstruction of justice.  The companies entered pleas of ‘not guilty.’  Chief U.S. District Judge Ricardo S. Martinez set trial for March 2, 2020.

          The indictment, returned by a grand jury last month, details Huawei’s efforts to steal trade secrets from Bellevue, Washington based T-Mobile USA and then obstruct justice when T-Mobile threatened to sue Huawei in U.S. District Court in Seattle.  The alleged conduct described in the indictment occurred from 2012 to 2014.

          Under the maximum sentencing provisions applicable to corporate entities, Conspiracy and Attempt to Commit Trade Secret Theft are punishable by a fine of up to $5,000,000 or three times the value of the stolen trade secret, whichever is greater.  Wire Fraud and Obstruction of Justice are punishable by a fine of up to $500,000. 

          The charges contained in the indictment are only allegations.  A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes.  If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

          The case is being investigated by the FBI.  The case is being prosecuted by Assistant U.S. Attorneys Todd Greenberg and Thomas Woods of the Western District of Washington, with assistance from the Department of Justice’s National Security Division’s Counterintelligence and Export Control Section.

          U.S. Attorney Brian T. Moran has been recused from this matter because of legal representations he undertook before he joined the Department of Justice.  Per direction from ethics officials in the Department of Justice, First Assistant U.S. Attorney Annette L. Hayes will act as U.S. Attorney with respect to this matter pursuant to the authority conferred by 28 U.S.C. § 515.

COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on February 27, 2019, Timothy Dean Curphey, age 35, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Conspiracy to Distribute Methamphetamine. Curphey was sentenced to 204 months in prison to be followed by a seven-year term of supervised release.

In April 2016, a concerned citizen presented a suspicious package to the Taylor County Sheriff’s Office. Law enforcement examined the package, and discovered it had been sent from Mexico and contained methamphetamine disguised as candy. This investigation led to Curphey and others that had distributed over fifty pounds of methamphetamine in Southwest Iowa.

This case was investigated by Iowa Division of Narcotics Enforcement, Page County Sheriff’s Office, Adams County Sheriff’s Office and Taylor County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

Following a six-day jury trial, the president and vice president of a South Florida construction company were convicted of defrauding a low-income housing development program. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Nadine Gurley, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Mary T. Cagle, Inspector General, Miami Dade County Office of the Inspector General, made the announcement.

Javier Estepa, 48, of Davie, Florida and Diego Alejandro Estepa Vasquez, 37, of Boca Raton, Florida, were convicted yesterday of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and three counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343 (Case No. 18-CR-20530).   In addition, Javier Estepa was convicted of three counts of making a false statement to a federal agency and Diego Alejandro Estepa Vasquez was convicted of one count of making a false statement to a federal agency, in violation of Title 18, United States Code, Section 1001.  The defendants face a statutory maximum penalty of 20 years in prison as to each count of wire fraud and a statutory maximum penalty of 5 years in prison for each count of making a false statement.   Sentencing is scheduled for May 10, 2019, at 2 p.m. before U.S. District Court Judge Ursula Ungaro.

The evidence at trial established that, between June 2014 and December 2016, Javier Estepa and Diego Alejandro Estepa Vasquez engaged in a scheme to unlawfully enrich themselves by securing Miami-Dade Public Housing and Community Development (PHCD) bid awards and causing payments on those contracts by making materially false and fraudulent representations, and by the concealment of material facts concerning, among other things, the utilization of subcontractors, the number of workers employed on the construction projects, the hours worked, and the status of those workers as employees of Aaron Construction Group, Inc.

Javier Estepa and Diego Alejandro Estepa Vasquez, the president and vice president, respectively, of Aaron Construction Group, submitted bids to PHCD, on behalf of Aaron Construction, for specific renovation and repair of low-income housing in various locations throughout Miami-Dade County.  In the bids, Javier Estepa and Diego Alejandro Estepa Vasquez falsely and fraudulently represented that no subcontractors would be utilized in connection with the contract, that each worker would be paid for each hour worked, including for overtime, according to the Davis Bacon prevailing wage rates, and that Aaron Construction would obtain workers’ compensation insurance, in accordance with state laws.  However, immediately after being awarded the contracts, Aaron Construction entered into agreements with subcontractors which set a fixed payment at very low amounts for their work, regardless of the number of hours worked.  In addition, Aaron Construction required subcontractors to provide the information of  two or three subcontractor employees so that they could be placed on Aaron Construction’s certified payroll to appear as if they were Aaron Construction employees.  The evidence at trial established that Aaron Construction failed to accurately report the hour employees worked on the job sites or the specific categories of work performed.

In order to obtain payment from PHCD, Javier Estepa and Diego Alejandro Estepa Vasquez submitted Periodic or Final Estimate for Payment packets to PHCD containing false and fraudulent certified payroll records that listed fewer workers than were actually employed on the project and falsified the number of hours worked.  In addition, the evidence at trial established that the workers were not paid the appropriate wages under the Davis Bacon Act, nor were the workers paid overtime.  Javier Estepa and Diego Alejandro Estepa Vasquez falsely and fraudulently stated that they had no subcontractors working on the project, falsely characterizing the workers as employees of Aaron Construction, when in fact they were subcontractors and subcontractor employees.  In addition, Javier Estepa and Diego Alejandro Estepa Vasquez submitted with the Periodic or Final Estimate for Payment packets sworn statements of compliance that falsely and fraudulently certified that the information submitted was true and correct.  As a result of these false and fraudulent submissions, PHCD transferred over $3.9 million dollars in funds to bank accounts controlled by Javier Estepa and Diego Alejandro Estepa Vasquez.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOL-OIG, HUD-OIG and the Miami Dade County Office of the Inspector General.  She thanked the Miami-Dade Police Department for their assistance.  The case was prosecuted by Assistant U.S. Attorneys Joshua S. Rothstein and John Gonsoulin.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced that on February 27, 2019, Devon Miller, age 28, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for possession with intent to distribute a controlled substances namely, Oxycodone, Adderall, and Hydrocodone, while in possession of a firearm. Miller was sentenced to a total term of imprisonment of 66 months to be followed by a term of supervised release of three years.

On July 14, 2017, a Mills County Sheriff’s Deputy conducted a traffic stop on a car driven by Miller. Miller did not have a driver’s license and provided a false name. Subsequent to her arrest, a search of the car located over 100 different pills, all of which were controlled substances. Located with the pills was a loaded .45 caliber handgun. An Investigation by the Iowa Division of Narcotics Enforcement found Miller was selling the pills in Southwest Iowa.

This case was investigated by the Mills County Sheriff’s Office, Taylor County Sheriff’s Office and Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

          LOS ANGELES– Federal authorities have arrested two brothers from Woodland Hills who are charged in a stolen tax refund check scheme involving hundreds of thousands of dollars in fraudulently obtained federal income tax refunds, some of which were then laundered through bank accounts held in the United Kingdom.

          Victor A. Ohiri, 50, and Stephen O. Danielson-Ohiri, 49, were arrested late Tuesday pursuant to a 13-count indictment returned by a federal grand jury on January 29 that charges them with conspiracy, theft of government property, and international money laundering.

          The Ohiri brothers were arraigned on the indictment Wednesday afternoon in United States District Court in downtown Los Angeles. Both defendants pleaded not guilty and were ordered to stand trial on April 23.

          The indictment alleges that between March 2014 and March 2015, Victor and Stephen Ohiri, together with two unidentified co-conspirators, conspired to use bank accounts to launder hundreds of thousands of fraudulently obtained federal income tax refunds. During the course of the conspiracy, at least $294,000 in federal income tax refunds was deposited into accounts controlled by the Ohiris.

          According to the indictment, the unidentified co-conspirators filed fraudulent federal income tax returns with the Internal Revenue Service in the names of taxpayers who were identity theft victims. The co-conspirators used fake documents, such as bogus Forms W-2, and information from the Ohiris’ bank accounts to file the fraudulent returns, which sought large tax refunds, often between $8,000 and $10,000.

          Based on the false and fraudulent returns, the IRS issued tax refunds, which were electronically transmitted not to the named taxpayers, but instead to the bank accounts controlled by Victor and Stephen Ohiri, and others. Victor and Stephen Ohiri then withdrew the funds and/or transferred the funds to other bank accounts. In relation to most of the tax refunds, the majority of the funds were wired overseas to the unidentified co-conspirators in the United Kingdom.

          During the investigation, IRS investigators seized approximately $181,000 in 2014 from two of Stephen Ohiri’s bank accounts – money that came from just one fraudulently obtained tax return. 

          An indictment contains allegations that a defendant has committed a crime.  Every defendant is presumed innocent until and unless proven guilty in court.

          If the Ohiris were to be convicted of the charges alleged in the indictment, each defendant would face a statutory maximum sentence of 145 years in federal prison.

          During Thursday’s arraignment, a United States Magistrate Judge ordered Victor Ohiri detained without bond pending trial, while Stephen Ohiri was ordered released on a $75,000 bond.

          The case against the Ohiris is part of an ongoing investigation being conducted by IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

          This case is being prosecuted by Assistant United States Attorney Kristen A. Williams of the Major Frauds Section.

Tampa, FL – U.S. District Judge Susan Bucklew has sentenced Gary Kinard (40, St. Petersburg) to 7 years and 11 months in federal prison for his role in a telemarketing scheme. As part of his sentence, the court also entered a money judgment of $75,000, the proceeds of the wire fraud conspiracy. In addition, Kinard was directed to pay a total of $2,244,735.66 to 43 identified victims of the scheme.

According to court records, from 2016 through at least 2018, Kinard conspired with others to take money from victims throughout the United States who wanted to sell their timeshare properties or other parcels of land. Kinard and others placed telephone calls to these victims impersonating real estate professionals. They misled the timeshare owners to believe the conspirators had identified buyers for the victims’ timeshares and other properties. The conspirators further advised the victims that the timeshare and property sales could be consummated if the victims made one or more advanced payments to the conspirators for various fees purportedly associated with the sales, such as closing costs, courier services, title searches, transfer fees, and legal fees. Once the victims agreed to pay the bogus advance fees, the conspirators directed the victims to send funds via wire transfers to one of the conspirators. That coconspirator then withdrew the fraud proceeds and shared them with the others, based on each conspirator’s role in the fraudulent transaction. The conspirators often repeatedly re-contacted their victims and fraudulently advised them that additional fees were needed in order to complete the sales, and they continued to dupe the victims into sending bogus advance fees until the victims either ran out of money or became aware of the scam.  

After the victims depleted their assets or recognized that they had been defrauded, Kinard and other conspirators evolved the scheme. In this second stage,  Kinard and/or other conspirators re-contacted their victims via email and, now posing as helpful attorneys, told the victims that they had been defrauded in a timeshare scam. They then offered to “represent” the victims against the “first attorneys,” and to obtain settlements on their behalves. Once Kinard had regained the trust of the timeshare victims, he directed the victims to forward additional bogus fees purportedly associated with the cost of litigation, settlement expenses, and other related expenses. Some victims paid the conspirators hundreds of thousands of dollars for the purported “litigation.” Over the course of the conspiracy, many victims lost their retirement savings and their homes.

Mark Boring, Martin Steele, David Bell, and Troy Cater previously pleaded guilty for their roles in this scheme. Their sentencing hearings are pending.

This case was investigated by the Federal Bureau of Investigation, the St. Petersburg Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.

Jacksonville, Florida– U.S. District Judge Brian J. Davis has sentenced James Lester Calloway, Jr. (49, Jacksonville) to 24 years in federal prison for conspiracy to distribute 50 grams or more of methamphetamine. Calloway had pleaded guilty on September 12, 2018, his third federal felony conviction. Calloway was previously convicted in August 2010, in the Middle District of Florida, for conspiracy to manufacture 50 grams or more of methamphetamine.

According to court documents, during the execution of a search warrant at Calloway’s home, DEA agents seized approximately 112 grams of crystal methamphetamine, a firearm, and $70,960 in cash. The total amount of pure/actual methamphetamine attributed to Calloway in the conspiracy was at least 4.5 kilograms.      

Jason Jed Morris (51, Palatka), another member of the drug trafficking organization, previously pleaded guilty to possessing with the intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. Morris was sentenced to 3 years in federal prison. According to the plea agreement, Morris traveled to Jacksonville to meet with Calloway, his source of supply, and purchased 28.25 grams of methamphetamine (99% purity) in order to distribute it to his customers in the Palatka area.

Two other members of the drug trafficking organization have also been charged for their roles in this case. On January 9, 2019, Samuel Trevor Martin (36, Jacksonville) pleaded guilty to possessing with the intent to distribute 50 grams or more of methamphetamine. He faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. His sentencing hearing is scheduled for April 15, 2019. Anthony Donta Jones (39, Atlanta, GA) has been charged with possessing with the intent to distribute 500 grams or more of methamphetamine. He faces a minimum mandatory sentence of 10 years, and up to life, in federal prison. His case is scheduled for trial in April 2019.

This case was investigated by the Drug Enforcement Administration, along with the Putnam County Sheriff’s Office, the Nassau County Sheriff’s Office, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Beatriz Gonzalez.

ALBANY, NEW YORK – Alphonso L. Howard, Jr., age 28, and Javonte J. Johnson, age 22, both of Decatur, Georgia, were indicted yesterday for creating counterfeit checks and then cashing them at banks in Saratoga and Warren Counties.

The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);

and New York State Police Acting Superintendent Keith M. Corlett.

Each defendant is charged with one count of conspiring to commit bank fraud, three counts of bank fraud, and three counts of aggravated identity theft. 

The charges in the indictment are merely accusations.  Each defendant is presumed innocent unless and until proven guilty.

According to the indictment, between July 1, 2018 and September 26, 2018, the defendants and others defrauded financial institutions by intercepting and stealing checks sent through the U.S. Mail; using information from these legitimate checks to create counterfeit checks drawn on the same financial accounts as the stolen, legitimate checks; and then cashing and attempting to cash the counterfeit checks at financial institutions in Saratoga and Warren Counties.

The New York State Police arrested Howard and Johnson on September 26, 2018, in Queensbury, New York.  Howard and Johnson have been in custody since their arrest, and will be arraigned on the federal charges at a later date. 

If convicted, each defendant faces at least 2 years and up to 30 years in prison, a maximum $1 million fine, and 5 years of post-release supervision.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.  The indictment also seeks forfeiture of approximately $19,000 in cash possessed by the defendants at the time of their arrest, as well as a money judgment in the amount of $164,077.70.

This case is being investigated by the FBI and the New York State Police-Troop G, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.  Other agencies have assisted in the investigation and prosecution, including the District Attorney’s Offices in Saratoga and Warren Counties, the Glens Falls Police Department, the Burlington Police Department (Vt.), Vermont State Police, and the Stowe Police Department (Vt.).

Johnson has also been indicted on grand larceny and other charges in Jefferson County, New York, in a case brought by the Jefferson County District Attorney’s Office and investigated by the Watertown Police Department.  Johnson is presumed innocent of these charges as well.

ALBANY, NEW YORK – Cohoes Mayor Shawn Morse, age 51, was arrested today on an indictment charging him with defrauding his mayoral campaign and supporters by stealing campaign contributions for his personal benefit. 

The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Morse is charged with one count of conspiracy to commit wire fraud, five counts of wire fraud, and one count of making a false statement to the FBI. 

The charges in the indictment are merely accusations.  The defendant is presumed innocent unless and until proven guilty. 

According to the indictment, from approximately 2013 through 2018, Morse and his campaign treasurer, Ralph Signoracci, solicited and received contributions to his campaign committee, Friends of Shawn Morse, and his political action committee, The Chairman’s PAC, from area businesses and businesspeople.  Instead of using the funds for legitimate purposes, at times, Morse directed Signoracci to withdraw funds from the committees’ bank accounts so that Morse could use the funds to pay for his personal expenses.

The indictment further alleges that Morse and Signoracci concealed the nature of these expenditures by falsely reporting the purpose of the expenditures or by not reporting or disclosing them on campaign disclosure reports, as was required of local candidates for public office.  The indictment also alleges that on September 24, 2018, Morse provided false information to the FBI when asked about the scheme.

If convicted, Morse faces up to 20 years in prison, a term of post-release supervision of up to 3 years, and a fine of up to $250,000.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. 

Morse appeared today before United States Magistrate Judge Christian F. Hummel and entered a plea of not guilty. He was released with conditions pending a trial before Senior United States District Judge Thomas J. McAvoy.

This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Megan Kinsella Kistler. 

          LOS ANGELES – Two Chinese nationals have been indicted on federal charges that allege they kidnapped another Chinese national and attempted to collect $2 million in ransom from the victim’s family in exchange for the victim’s life.

          Guangyao Yang, 25, and Peicheng Shen, 33, whose last known U.S. residences were in West Covina, were charged in a four-count indictment returned by a federal grand jury on February 22. The indictment charges the two defendants with conspiracy to kidnap, kidnapping, attempted extortion in violation of the Hobbs Act, and threat by foreign communication.

          According to court documents, Shen, using an alias, met the victim, a Santa Ana resident, several times on the pretense that Shen would help the victim collect a debt from another individual. During their third meeting, at a San Gabriel shopping center on July 16, 2018, Shen allegedly kidnapped the victim and then, along with Yang, held the victim hostage at a house in Corona. At that house, Shen and Yang allegedly confined the victim by binding his legs together, taping his eyes shut, restraining his arms behind him, and confining him in a closet.

          The day after the kidnapping, the victim’s father received a demand for a $2 million ransom in exchange for the victim’s life, with the money to be deposited into three Chinese bank accounts within three hours, court documents allege. The victim’s father also received photographs of the victim, who was physically restrained in a closet, according to court documents.

          Investigators believe the victim died during the course of the kidnapping, and they are seeking the public’s assistance in locating his body.

          The indictment further alleges that on July 18, defendants Shen and Yang attempted to conceal evidence of the crime. Specifically, defendants Shen and Yang drove to the area of Mojave, California, to bury or otherwise dispose of the victim’s body or other physical evidence involved in the crime. Further, on that same day, Shen allegedly had the closet of the Corona house re-carpeted. Yang also performed an Internet search to determine, in effect, how fast a corpse decomposes in soil, court papers state.

          Shen and Yang currently are believed to be in China.

          An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

          The two kidnapping-related charges carry a statutory maximum penalty of life in federal prison. The extortion and threat by foreign communication charges each carry a statutory maximum penalty of 20 years in prison.

          The investigation into the kidnapping and extortion is being conducted by the Federal Bureau of Investigation.

          This case is being prosecuted by Assistant United States Attorney Julia Choe of the Cyber and Intellectual Property Crimes Section and Special Assistant United States Attorney Ryan Adams of the General Crimes Section.

          The FBI is seeking information regarding the suspects charged in this case and to determine the whereabouts of the victim. While search efforts are focused in the Mojave Desert, the FBI would like to hear from anyone who may have information about this alleged crime or about associated suspicious activity. Anyone with information may call the FBI’s Los Angeles Field Office at (310) 477-6565.