KANSAS CITY, Mo. – A woman carrying more than five pounds of fentanyl in her suitcase as she traveled through Kansas City, Mo., pleaded guilty in federal court today.

Evelyn C. Sanchez, 33, pleaded guilty before U.S. Chief District Judge Beth Phillips to possessing fentanyl with the intent to distribute.

According to court documents, Sanchez was traveling from Los Angeles, Calif., en route to New York, N.Y. Her bus stopped briefly at a Kansas City bus station on Aug. 21, 2018. After Kansas City police detectives interviewed Sanchez at the bus station, they became suspicious that she was not being truthful about her trip and purpose for going to New York. A police service canine alerted to a grey, hard-sided suitcase under one of the seats near where Sanchez had been seated on the bus, and she eventually acknowledged that that suitcase belonged to her.

When detectives searched Sanchez’s suitcase, they found two bundles wrapped in several layers of plastic, which contained a total of 2.4 kilograms (5.3 pounds) of fentanyl. When officers searched Sanchez’s purse, they discovered a false bottom to the purse that contained five separate baggies of cocaine that weighed a total of 5.64 grams.

Under federal statutes, Sanchez is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.

FORT WAYNE, IN –Kristin M. Ferguson, also known as “Detroit,” 29, of Wolcottville, Indiana was charged in a single count Indictment returned by the Grand Jury alleging that she possessed with the intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Thomas L. Kirsch, II.  

Ms. Ferguson’s initial appearance before Magistrate Judge Susan Collin was conducted at 11:30AM in the Fort Wayne Federal Courthouse. 

The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.

If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

This case is the result of an investigation by the Wolcottville Police Department, Noble County Sheriff’s Department and the Drug Enforcement Administration.  This case is being prosecuted by Assistant United States Attorney Sarah E. Nokes.

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Orlando, FL – United States Attorney Maria Chapa Lopez announces that a federal jury yesterday found Robert Francis Pratersch (57, Kissimmee) guilty of threatening a federal official and interstate transmission of a threat to injure. Pratersch faces a maximum penalty of 15 years in federal prison. His sentencing hearing is scheduled for July 16, 2019. 

According to evidence presented at trial, Pratersch left three threatening voicemail messages at the Office of Senator Bernie Sanders in Burlington, Vermont. These profanity-laced messages included a threat to “behead” Senator Sanders, “ISIS-style,” and videotape the execution. The messages also included numerous anti-Semitic remarks directed at Senator Sanders. 

This case was investigated by the Federal Bureau of Investigation and the United States Capitol Police. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.

     PHOENIX – On April 30, 2019, Robert Lee Jose, 30, of Mesa, Ariz., was sentenced by U.S. District Judge Neil V. Waketo 15 years in prison, to be followed by three years of supervised release. Jose had previously pleaded guilty to voluntary manslaughter.  On March 28, 2018, Jose shot the victim in the head following a short, heated argument, killing the victim.   Both Jose and the victim are members of the Gila River Indian Community. 

     The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-18-497-PHX-NVW  

RELEASE NUMBER:    2019-058_Jose

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Gulfport, Miss. – Donald Eric McRoy, 53, of Biloxi, was sentenced today by U.S. District Judge Sul Ozerden to 278 months in federal prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute heroin, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.

On four separate occasions in 2016, McRoy sold, directly or indirectly, quantities of heroin to an individual acting in an undercover capacity along the Gulf Coast. The investigation also revealed that McRoy was obtaining large quantities of heroin from a dealer in the Atlanta, Georgia area. Further investigation has led to the convictions of both McRoy’s supplier and his supplier’s supplier, and has thwarted a large scale heroin operation in south Mississippi.

This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.#

Gulfport, Miss. – Paul Garza, 50, of Houston, Texas, pled guilty yesterday before U.S. District Judge Sul Ozerden to transporting illegal aliens within the United States, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.

On March 22, 2019, a U.S. Border Patrol Agent conducted a traffic stop on a Dodge SUV with Texas license plates around the 40-mile marker on Interstate 10 eastbound. The agent noticed multiple indicators that smuggling actively was taking place. Ironically, the same agent had been present when the same vehicle had been previously encountered in September 2018, in Jackson, Mississippi, in an alien smuggling venture. The agent determined that none of the passengers had proper documents and that all were illegally present in the United States.

A Homeland Security Investigations Special Agent joined the investigation at the Gulfport Border Patrol Station and determined that all the other occupants of the vehicle were being smuggled by Paul Garza. Investigation revealed that front seat passenger, Paul Garza, actually was the primary driver; but, had been temporarily replaced as driver due to Garza’s becoming sleepy and weaving on the road. It also was noted that, while the vehicle was equipped with 7 seatbelts, it had 9 occupants, thereby depriving two of the occupants from wearing seatbelts.

Two of the illegal alien passengers were determined to be unaccompanied juveniles. Additionally, Ms. Catarina Ixquiactap Morales, an illegal alien from Guatemala, was determined to have unlawfully returned after removal from the United States, and is being separately prosecuted for that felony offense. All of the illegal alien passengers except for Ms. Morales, were determined to have been apprehended for the first time in the United States and were placed into administrative proceedings to be officially removed from the United States.

Garza is scheduled to be sentenced by Judge Ozerden on August 1, 2019 at 10:00 a.m., and faces a potential maximum 5 years imprisonment, as well as 3 years supervised release, a maximum $250,000 fine, and special assessments that could total $5,100. Garza is a U.S. Citizen living in the Houston, Texas, area.

U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, United States Border Patrol, and by Homeland Security Investigations. Assistant United States Attorney Stan Harris is the prosecutor for the case.

St. Louis, MO –Malachiah Williams, 22, of St. Louis, MO, pleaded guilty to two counts of carjacking and two counts of brandishing a firearm.  Williams appeared today before U.S. District Judge Richard Webber who accepted his plea and set his sentencing date for July 30, 2019.

According to the plea agreement, on July 25, 2018, Williams, armed with a semi-automatic firearm, approached a man in his vehicle parked in front of a residence in the 5500 block of Cote Brilliante.  Williams tapped on the driver’s side door with the firearm and ordered the victim out of the vehicle.  After the victim exited, Williams entered the vehicle and drove away.

On July 31, 2018, a mother and her four-year-old daughter were sitting inside a vehicle near the 5400 block of Dr. Martin Luther King Drive.  Williams approached their vehicle and stuck his head into the passenger side window.  He pointed a semi-automatic firearm at the mother and child while ordering them out of the vehicle.  Williams then entered the vehicle and drove away.

If convicted, carjacking carries a penalty of not more than 20 years in prison and/or a fine of $250,000 on each count.  The firearms charges carry penalties of not less than seven years nor more than life and/or fine of $250,000 on each count consecutive to any other sentence imposed.    In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.  The United States and Williams intend to recommend a sentence of 15 years imprisonment at the time of sentencing.

The St. Louis Metropolitan Police Department investigated this case.  The case is being prosecuted by Assistant United States Attorney Tom Mehan.

The charges against Christian were the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow. 

          CONCORD  - Hailong Zhang, 46, of Nottingham was sentenced to serve two years of probation, with 10 months of home detention, and fined $5,500 for aiding and abetting the interstate transportation of stolen money, announced United States Attorney Scott W. Murray.

          According to court documents and statements made in court, Zhang was a Research Project Manager at the University of New Hampshire, College of Life Sciences.  Zhang was authorized to use a credit card provided by UNH to pay for expenses covered by grants that were provided to the College of Life Sciences by the U.S. Department of Health and Human Services, National Institutes of Health (“NIH”).  On 31 separate occasions from December 2013 to January 2018, Zhang used the credit card to purchase gift cards totaling more than $82,000 from Amazon.com, which he kept or used to buy merchandise for his personal benefit, including clothing, video games, and a snow blower.  To conceal each such use of the credit card, Zhang submitted a fictitious receipt and a fraudulent written justification for the expense to UNH.  The bogus documents caused the University System of New Hampshire to make payments on the credit card and obtain reimbursement for the unauthorized expenses from the NIH.

          “Federal grant money provides vital support for programs that advance public health and the quality of life for all,” said U.S. Attorney Murray.  “Those who steal these funds for their personal use should understand that they will face serious consequences.  We will continue to work with our law enforcement partners to protect federal programs from fraud and abuse.” 

          “Today, Mr. Zhang is finally being held accountable for pocketing more than $80,000 in federal grant money on personal expenses when that money should have been used to advance important scientific research projects,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Taxpayers should know that the FBI will continue to work very closely with our law enforcement partners to protect federal funds from being stolen or misused.”

          “Taxpayer funds at NIH support critical research that can ultimately save lives,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General at the U.S. Department of Health and Human Services. “Zhang siphoned off these life-giving dollars and will now pay the price. We will continue to investigate all allegations of fraud, waste and abuse in HHS funded programs.”

          Zhang previously pleaded guilty on December 7, 2018.

          The case was investigated by the UNH Police Department, the Federal Bureau of Investigation, and the U.S. Department of Health and Human Services, Office of Inspector General, with assistance from Nottingham Police Department.  The case was prosecuted by Assistant United States Attorney Robert M. Kinsella.

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BOSTON – A former corrections officer at the Massachusetts Correctional Institute facility in Norfolk (MCI-Norfolk) pleaded guilty today in federal court in Boston in connection with a conspiracy to smuggle Suboxone strips into the facility for an inmate.

Steven J. Frazer, 29, of Cumberland, R.I., pleaded guilty to an Information charging him with one count of conspiracy to possess a controlled substance with intent to distribute. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Sept. 16, 2019. In November 2018, Frazer was charged by criminal complaint and arrested.

Beginning around Nov. 14, 2018, Frazer, who was working as a corrections officer, arranged with a cooperating witness to smuggle Suboxone strips into MCI-Norfolk to sell to inmates. Suboxone is a Class III controlled substance used to treat heroin addiction, but some people abuse it to get high. It is coveted as contraband in prisons across the nation and particularly in New England.

Around midnight on Sunday, Nov. 18, 2018, the cooperating witness met Frazer in a South Attleboro parking lot and provided him with 40 Suboxone strips, 24 pages of K2 (a synthetic cannabinoid, which is more powerful and more dangerous than marijuana), and $2,500 in cash. After the meeting – which was audio and video recorded by law enforcement – federal agents arrested Frazer.

The charge of conspiracy to possess a controlled substance with intent to distribute provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $500,000 and restitution. 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 Commissioner Carol A. Mici III of the Massachusetts Department of Correction made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.

Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Jerome Stancil (52, Jacksonville) to 15 years in federal prison for possessing a firearm as a convicted felon. 

Stancil had been found guilty on January 31, 2019, following a bench trial.

According to court documents, Stancil was stopped by officers from the Jacksonville Sheriff’s Office for speeding. The officers discovered that Stancil was in violation of his state probation curfew and also noticed an odor of marijuana coming from Stancil’s vehicle. Officers searched Stancil’s car and found a loaded .40 caliber pistol near the driver’s seat. Stancil admitted that the firearm was his and said it was for protection.

At the time, Stancil had prior convictions in Virginia for multiple drug trafficking felonies. As a result of his prior convictions, Stancil was prohibited from possessing a firearm and qualified as an armed career criminal under federal law.

This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Talbot.

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

John H. Durham, United States Attorney for the District of Connecticut, announced that JOSHUA AMARAL, also known as “Ill Child,” 34, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 78 months of imprisonment, followed by five years of supervised release, for firearm offenses related to a shootout in Hartford’s South End in April 2017.

According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford.  The investigation revealed that Wilson Velez, also known as “Wiso,” a member of the Almighty Latin Kings Nation (“Latin Kings”), was distributing heroin and fentanyl.  Velez employed family members and other Latin Kings members and associates to process, package and distribute the drugs from apartment buildings on Hamilton Street and Elliot Street in Hartford.  During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Velez and other members of the drug trafficking organization.

On April 28, 2017, Velez, Amaral and others were involved in a shootout after they confronted a rival drug dealer in the area of Franklin Avenue and Barker Street in Hartford.  Amaral, who was armed, was shot in the leg during the gunfire exchange. 

On May 1, 2018, a grand jury returned a 41-count indictment charging Velez, Amaral and eight other members and associates of the Latin Kings.

Amaral has been detained since his arrest on state charges on September 15, 2017.  On February 5, 2019, pleaded guilty in federal court to one count of conspiracy to possess a firearm in furtherance of a drug trafficking crime, and one count of possession of a firearm in furtherance of a drug trafficking crime.

Velez was arrested on related federal narcotics offenses on December 7, 2017, and was subsequently released on bond.  He has been detained since April 5, 2018, when his bond was revoked.  On February 22, 2019, he pleaded guilty to one count of conspiracy to distribute one kilogram or more of heroin and/or 400 grams or more of fentanyl, and one count of conspiracy to use and carry a firearm in relation to, and furtherance of, a drug trafficking crime.  He awaits sentencing.

The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.

KANSAS CITY, Mo. – A former Ohio university professor pleaded guilty in federal court today to traveling to Kansas City, Mo., to engage in sexual activity with a person whom he believed to be a 14-year-old girl.

Kevin Connor Armitage, 53, pleaded guilty before U.S. District Judge Brian C. Wimes to traveling across state lines to engage in illicit sexual conduct with a minor. Armitage was a professor of American studies at Miami University in Oxford, Ohio.

According to today’s plea agreement, Armitage maintained a profile on a website that allows registered members to exchange information regarding commercial sex activity. The website’s public posts contain detailed accounts of sexual encounters between members and commercial sex workers, including prices and specific locations for sexual encounters. Links to well-known sex trafficking websites were posted with reviews of sexual encounters. Members of the website are able to contact the posters by private message to obtain contact information for the commercial sex workers described in the posts.

Armitage was a senior member of the website, with 576 postings that detail his prior experiences with prostitutes in Ohio, Arizona, Kansas, Colorado, and Tijuana.

On May 22, 2018, an undercover federal agent responded to a discussion thread posted by Armitage. Armitage indicated that he would be visiting the Kansas City area and was interested in recommendations. Armitage was provided a phone number for a female FBI agent, who was posing as a 14-year-old female.

After several conversations, Armitage agreed to meet the 14-year-old’s cousin at a restaurant on the Country Club Plaza in Kansas City on May 30, 2018, in order to discuss payment. Once he arrived at the restaurant, Armitage was told, he would be given the address where he could meet the 14-year-old. An FBI undercover employee, posing as the cousin, met Armitage at the restaurant and he was arrested.

Under federal statutes, Armitage is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Department of Health and Human Services, Office of Inspector General and the FBI.

Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

BIRMINGHAM – A federal grand jury indicted a Tuscaloosa man for being a felon in possession of a firearm announced U.S. Attorney Jay E. Town and ATF Special Agent in Charge Marcus Watson.

A one-count indictment filed in U.S. District Court charges MONTEZ VANTERUS SPRADLEY, 36, with felon in possession of a firearm.  The firearm was seized by the Tuscaloosa Police Department after responding to a domestic disturbance at an apartment on March 26, 2019. Spradley is prohibited from possessing firearms because he has prior state court convictions in Jefferson County for felony murder, intimidating a witness, unlawful possession of a controlled substance with the intent to distribute, unlawful possession of a controlled substance, and second degree assault.

“Individuals with felony convictions, especially those involving violence and drugs, will answer to federal charges if they are caught with firearms,” Town said.  “The U.S. Attorney’s Office appreciates the thorough investigation by the Tuscaloosa patrol officers at the scene and the ATF Task Force Officer’s quick preparation of this case for a federal charge.  Criminals should be aware that every level of law enforcement is working together to get them off of the streets...and it’s working!”

“ATF’s Crime Gun Intelligence Centers are the driving force to reduce the violent crime that plagues our neighborhoods,” Watson said. “This indictment illustrates the effective partnerships with law enforcement and the community.”

If convicted, Spradley qualifies as an armed career criminal and will face a mandatory minimum sentence of 15 years in prison. 

ATF investigated the case, which Assistant United States Attorney Alan Baty is prosecuting.

An indictment contains only charges.  A defendant is presumed innocent unless and until proven guilty.

St. Thomas, USVI – Le’Quan Registe, 25, of St. Thomas, was found guilty of possession with intent to distribute marijuana after a jury trial in District Court, United States Attorney Gretchen C.F. Shappert announced. The jury trial lasted one day, commencing on April 29, 2019, with jury deliberations commencing and concluding on April 30, 2019. Registe was acquitted of an additional charge of possession of a firearm in furtherance of marijuana distribution.

According to trial testimony, on May 18, 2018, during a search of Registe’s vehicle, Virgin Islands Police Department officers located quantities of marijuana on the gear shift, on top of and underneath the front passenger seat, as well as in a backpack located on the backseat. Officers also located in the car $3,400 in a hidden compartment of the steering wheel, a police scanner, baggies, a digital scale, and a firearm.

After trial, Registe was remanded to the custody of the United States Marshals Service. Sentencing is set for August 29, 2019.

This case was investigated by the Drug Enforcement Agency, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Virgin Islands Police Department and was prosecuted by Assistant United States Attorneys Meredith J. Edwards and George Andrew Massucco-LaTaif.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York (“SDNY”), and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against Chestnut Petroleum Distributor, Inc., and its affiliates CPD Energy Corp., CPD NY Energy Corp., Chestnut Mart of Gardiner, Inc., Chestnut Marts, Inc., Greenburgh Food Mart, Inc., Middletown Food Mart, Inc., and NJ Energy Corp. (collectively, “Defendants”), for violating the Resource Conservation and Recovery Act (“RCRA”) at 20 separate gas stations within the Southern District of New York and adjoining districts. 

U.S. Attorney Geoffrey S. Berman stated:  “As alleged in the complaint, Defendants repeatedly failed to comply with regulations designed to prevent gasoline leaks from threatening public health and the environment.  Today’s lawsuit seeks to hold Defendants accountable for their conduct and ensure that the public is protected in the future.”    

EPA Regional Administrator Peter D. Lopez said:  “Failure to monitor and maintain tanks to prevent leaks can pose a serious safety risk, as the leaking underground tanks can release toxic components that can seep into the soil and the groundwater.  This lawsuit seeks to hold the companies responsible for properly managing their tanks to reduce these risks where these gas stations are located.”                          

Petroleum products such as gasoline contain chemical compounds that pose substantial threats to human health.  Service stations typically store gasoline in underground storage tanks.  When operated conscientiously and monitored closely, underground storage tanks are a safe and effective means to store gasoline.  But when those tanks are not subjected to basic operational safeguards, they can endanger the public and the environment, for example by leaking petroleum into the water supply, discharging toxic vapors into the air, or even triggering fires or explosions.  EPA’s regulations under RCRA are designed to protect the public by requiring underground storage tank operators to reduce the likelihood of leaks, monitor for leaks so they can promptly be addressed, and maintain adequate insurance to conduct corrective action and compensate injured third parties when a leak occurs.

As alleged in the complaint filed in federal district court today, Defendants repeatedly violated RCRA and its related regulations at various times from 2011 to 2014.  These violations included failing to perform release (i.e., leak or spill) detection, and failing to maintain and provide records of release detection monitoring.  In some instances, Defendants failed to secure underground storage tanks that were temporarily closed, and failed to investigate or report suspected releases or unusual operating conditions.  Defendants also failed at times to maintain insurance policies sufficient to take corrective action and compensate third parties for bodily injury and property damage caused by accidental releases arising from the operation of the underground storage tanks. 

The lawsuit seeks injunctive relief and an order imposing civil penalties for Defendants’ violations. 

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This case is being handled by the Office’s Environmental Protection Unit.  Assistant United States Attorneys Christopher Connolly and Jennifer C. Simon are in charge of the case.

BOSTON – A former attorney from Andover was convicted today by a federal jury of filing false tax returns and for conspiring with his accountant to defraud the IRS. 

Daniel P. Gibson, 62, was convicted by a federal jury on three counts of tax fraud. Gibson was indicted in October 2015.  U.S. District Judge Indira Talwani scheduled sentencing for Sept. 5, 2019. 

Gibson conspired with his accountant to prepare and file false tax returns in the tax years 2005, 2006, 2008 and 2009 that intentionally underreported approximately $3.7 million in income earned by the law firm of which Gibson was the managing partner. As a result, Gibson underreported his personal income by approximately $2.5 million and avoided taxes of more than $875,000. 

The charge of filing of the false returns provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000 per count and restitution.  The charge of conspiracy to defraud the Internal Revenue Service provides for a sentence of no greater than five years in prison, three years supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and William B. Brady of Lelling’s Criminal Division are prosecuting the case. 

JOHNSTOWN, Pa. – A resident of Altoona, Pa., was indicted on April 24, 2019, by a federal grand jury in Pittsburgh on a charge of violating federal narcotics law, United States Attorney Scott W. Brady announced today.

The one-count indictment named Laura M. Singh, 36, as the sole defendant.

According to the indictment presented to the court, from on or about October 17, 2017, to on or about April 18, 2018, Singh obtained a controlled substance by fraud.

The law provides for a maximum sentence of four years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Maureen S. Sheehan-Balchon is prosecuting this case on behalf of the government.

The Department of Veterans Affairs conducted the investigation that led to the prosecution of Singh.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

WASHINGTON – A former resident of Durant, Mississippi, was sentenced yesterday to 60 months in prison for preparing and filing a fraudulent claim for a tax refund with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Mike Hurst of the Southern District of Mississippi. 

“Dishonest tax return preparers cause serious financial harm to our country,” said Principal Deputy Assistant Attorney General Zuckerman. “The Tax Division and its partners in the U.S. Attorney’s Offices and the Internal Revenue Service are committed to the prosecution of those return preparers, who choose to commit fraud.”

“By lying and cheating our tax system, this defendant stuck her hand in every American’s pocketbook and stole money that should have gone to our families, our communities and our kids’ futures,” said U.S. Attorney Hurst. “Those who put their greed above their duty and obligation to prepare and file returns on behalf of others will experience swift and certain justice in this district. I commend our prosecutors, DOJ trial attorneys, and IRS special agents for quickly bringing this tax cheat to justice.”

“Teresa Chism was part of a significant tax fraud scheme. Mo’ Money franchise tax return preparers defrauded American taxpayers by soliciting the issuance of undeserved tax refunds,” said Special Agent in Charge, Thomas J. Holloman III, IRS Criminal Investigation. “It is a great day for every taxpaying citizen when a participant in their criminal scheme is held accountable. With the recent conclusion of tax filing season, others who have attempted similar thefts from the US Treasury should be aware that the special agents of IRS – Criminal Investigation will continue the aggressive pursuit of those individuals who attempt to defraud America's tax system."

According to documents and information provided to the court, from 2005 through 2015, Teresa C. Chism operated tax return preparation businesses in Mississippi under the names Mo’ Money, MoneyCo USA, and Lady T Taxes. Chism falsified her clients’ returns in different ways in order to increase their tax refunds, including reporting false wages, self-employment income and expenses, and education credits. In total, Chism prepared more than 550 false income tax returns, seeking over $3.5 million in fraudulent tax refunds. 

In addition to the term of prison imposed, U.S. District Judge Henry T. Wingate ordered Chism to serve three years of supervised release and pay $135,134 in restitution to the IRS. 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hurst commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney William Montague of the Tax Division and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

NEW ORLEANS, LOUISIANA– JARED CARRELL(“CARRELL”),age 38, of Thibodaux, Louisiana, entered a plea of guilty yesterday to Possession of Child Pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B).

According to documents filed in federal court, on May 30, 2018, law enforcement officers with the Louisiana State Police found CARRELL in possession of a LG cellular device containing images depicting the sexual victimization of prepubescent children.  On July 9, 2018, members of the Louisiana State Police and the U.S. Department of Homeland Security, Homeland Security Investigations, executed a search warrant at CARRELL’s Thibodaux residence. At which time, CARRELL was arrested and charged with possessing child pornographic materials.

CARRELL faces a maximum penalty of twenty (20) years imprisonment followed by up to a life term of supervised release, and a $250,000.00 fine.  In addition, CARRELL will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.

CARRELL will be sentenced by U.S. District Court Judge Jay C. Zainey on August 6, 2019.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”           

U.S. Attorney Strasser praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, and the Louisiana State Police in investigating this matter.  The prosecution of this case is being handled by Project Safe Childhood Coordinator and Supervisor of Financial Crimes, Assistant U. S. Attorney Brian M. Klebba.

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