Also Sentenced for Wire Fraud and Identity Theft Charges

CAMDEN, N.J. – A New York man was sentenced today to 300 months in prison for engaging in illicit sexual conduct with a 12-year-old girl and falsely claiming he had cancer in order to defraud victims out of $150,000, U.S. Attorney Paul J. Fishman announced.

Joseph Anthony Caracciolo, 50, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to a four-count information charging him with traveling in interstate commerce to engage in illicit sexual conduct with a minor, committing that offense while being an unregistered sex offender with a duty to register under state and federal law, wire fraud and aggravated identity theft. Judge Bumb imposed the sentence today in Camden federal court.

According to the documents filed in the case and statements made in court:

Caracciolo admitted that on numerous occasions between June 2012 and August 2012, he travelled to New Jersey and Pennsylvania to engage in sexual intercourse with a then 12-year-old-girl, identified as “Victim 1” in the information. During this time, Caracciolo was not registered as a sex offender as required by his 1993 rape conviction in the Superior Court of Hampden County in Springfield, Massachusetts.

In July 2009, Caracciolo became romantically involved with a woman, identified in the information as “Victim 2,” with whom he had a child. Caracciolo admitted that he asked Victim 2’s parents to help pay for his cancer treatments, even though he wasn’t actually diagnosed with cancer. From December 2011 through August 2013, Victim 2’s father wired Caracciolo more than $150,000. Caracciolo also admitted that during this time, he used the identity of “Anthony Scibelli,” a Massachusetts man who died in 1998, to perpetuate the fraud.

Following the entry of Caracciolo’s guilty plea before Judge Bumb in January 2016, Caracciolo sought to withdraw his guilty plea in January 2017. At a hearing on Caracciolo’s motion to withdraw his guilty plea, Caracciolo admitted under cross-examination that he has lived a life of lies, including by telling people that he was a pediatric dentist and a celebrity chef, conning and deceiving women from coast to coast, selling sports memorabilia on eBay that he knew was not authentic, and selling fake cellphones and stereos.

In addition to the prison term, Judge Bumb sentenced Caracciolo to serve a lifetime of supervised release.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Egg Harbor Township Police Department, the U.S. Marshals Fugitive Task Force, and members of the “Innocence Lost” Task Force from the Atlantic County Prosecutor’s Office and the Atlantic County Sheriff’s Office, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.

Defense counsel: Peter Levin Esq., Philadelphia, Pennsylvania     

Assistant U. S. Attorney Orlando Gutierrez (619) 546-6958

NEWS RELEASE SUMMARY– March 9, 2017

SAN DIEGO – Adriana Morfin-Paniagua, a United States citizen living in Mexico, was arrested yesterday and charged with importing approximately 47,340 tablets of oxycodone in the largest seizure of what is believed to be oxycodone along the Southwest Border in at least five years. The street value of these tablets is approximately $1,420,000 dollars.

According to a criminal complaint filed in federal court, on March 8, 2017, Morfin-Paniagua entered the United States at the Otay Mesa Port of Entry as the driver and sole occupant of a 1999 Honda Accord. Following a secondary inspection of the Honda Accord, Custom and Border Protection Officials located thirty packages containing the oxycodone tablets inside a hidden, non-factory compartment.

These tablets have an illegal street value of $30 to $40 per tablet. At $30 each, the street value of 47,340 tablets is $1,420,200.00 dollars. When drugs are seized at the border, they are tested in the field, and these pills tested positive as oxycodone. The drugs are then forensically tested in a DEA lab to confirm those findings. Those tests can take about a week or sometimes more.

Morfin-Paniagua was subsequently charged with a violation of Title 21, United States Code, 952 and 960, importation of a controlled substance, and booked into the Metropolitan Correctional Center.

“This is one of the biggest seizures of oxycodone at a San Diego port of entry,” said Acting U.S. Attorney Alana Robinson. “Every pill we seize is one that we keep out of the mouths of abusers who are on a path to destruction.”

“HSI San Diego is committed to fully investigating criminal activity linked to the transnational movement of counterfeit pharmaceuticals,” said James Plitt, acting special agent in charge for HSI San Diego. “Our agents will continue to work diligently with our law enforcement and prosecutorial partners to counter this type of criminal activity.”

Morfin-Paniagua made her first appearance today before U.S. Magistrate Judge Jan Adler.

DEFENDANTCase Number: 17MJ0710

Adriana Morfin-Paniagua Age: 22 Tijuana, Mexico

SUMMARY OF CHARGES

Title 21, United States Code, 952 and 960, Importation of a Controlled Substance

Maximum Penalty: Twenty years in custody.

AGENCIES

Homeland Security Investigations

United States Customs and Border Protection

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tammie Sensenig, age 45, of Lancaster, Pennsylvania,

pleaded guilty March 8, 2017, before United States Magistrate Judge Martin C. Carlson to a criminal information charging her with healthcare fraud.

According to United States Attorney Bruce D. Brandler, Sensenig had previously been excluded from providing healthcare to Medicaid beneficiaries due to prior convictions related to Medicaid fraud. In order to obtain a position as a behavioral health consultant, Sensenig made false representations in order to hide her ineligible status. As a result, Medicaid paid approximately $84,500 for her services.

The case was investigated by the Pennsylvania Office of Attorney General Medical Fraud Control Section and the United States Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law is 10 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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PROVIDENCE, R.I. – Two Central Falls women were sentenced to 3 years in federal prison today for their roles in a long-running scheme to use the stolen identities of more than 400 individuals on fraudulent tax returns resulting in the theft of more than $2.6 million in fraudulent tax refunds.

Erika Tomasino, 44, was sentenced by U.S. District Court Chief Judge William E. Smith to 36 months in federal prison, having been convicted of one count of conspiracy, one count of theft of government property, three counts of mail fraud, three counts of money laundering and one count of aggravated identity theft. Tomasino was also ordered to pay $1,817,431 in restitution. Tomasino was the bookkeeper and secretary of Juan Vasquez, 53, of Providence, a businessman and the mastermind behind the long-running scheme.

Doris Morel, 44, of Central Falls, a full-time cashier at the former Dominican Supermarket in Pawtucket, the hub of the scheme, was also sentenced today to 36 months in federal prison, having been convicted of one count of conspiracy, one count of theft of government property, four counts of money laundering and four counts of aggravated identity theft. Morel was ordered to pay $1,225,580 in restitution.

On September 27, 2016, a federal court jury convicted the two women after a two-week trial.

The sentences are announced by United States Attorney Peter F. Neronha; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; Shelly A. Binkowski, Inspector in Charge of the United States Postal Inspection Service, Boston Division; Brian Deck, Resident Agent in Charge of the United States Secret Service; and Pawtucket Police Chief Paul King.

In November 2016, Chief Judge William E. Smith sentenced Juan Vasquez to 6 years in federal prison to be followed by 3 years supervised release. Vasquez ran the scheme out of his business, the former Dominican Supermarket. Vasquez was ordered to pay restitution to the IRS in the amount of $2,682,042.88. Vasquez pleaded guilty on August 19, 2016, to one count of conspiracy and one count of aggravated identity theft.

Also in November 2016, co-defendant Belkis Vasquez, 50, of Central Falls, was sentenced to serve 3 years probation, the first 8 months in home detention with GPS electronic monitoring, and was ordered to perform 200 hours of community service. Belkis Vasquez was ordered to pay restitution to the IRS in the amount of $325,490. Belkis Vasquez pleaded guilty on August 17, 2016, to one count of conspiracy.

According to the government’s evidence, for nearly four years, beginning in January 2010, the defendants participated in a scheme in which they used stolen personal identifying information of more than 400 individuals, most of whom are residents of Puerto Rico, to file fraudulent tax returns. Fraudulent treasury checks were mailed to various locations in Rhode Island, Massachusetts and New York, and later deposited by the co-conspirators into 26 different bank accounts. The bank accounts were controlled by the co-conspirators or other individuals affiliated with the former Dominican Supermarket.

The government’s evidence showed that the defendants and their co-conspirators withdrew the proceeds of the checks, caused others to withdraw some of the proceeds, transferred the proceeds between accounts, and spent the funds on personal expenses. Additionally, more than $235,000 of fraudulently obtained funds were transferred to a bank in the Dominican Republic.

The cases were prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.

The matter was investigated by Internal Revenue Service - Criminal Investigation, with the assistance of the United States Secret Service, United States Postal Inspection Service and the Pawtucket Police Department.

###

Contact:

Jim Martin (401) 709-5357

email: USARI.Media@usdoj.gov

on Twitter @USAO_RI

PENSACOLA, FLORIDA– Thomas E. Matassa, 23, of Gulf Breeze, made a first appearance today in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with receipt and possession of child pornography. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.

The indictment alleges that, between January 2014 and February 2016, Matassa received child pornography. The indictment further alleges that, in February 2016, he possessed child pornography involving a minor under age 12. The defendant is currently being detained at the Santa Rosa County Jail. The detention hearing and arraignment have been scheduled for March 16, 2017, at 12:30 p.m.

The case is being investigated by the Federal Bureau of Investigation, the United States Immigration and Customs Enforcement Homeland Security Investigations, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Georgia Bureau of Investigation, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

For more information, contact:

Amy Alexander, Public Information Officer

(850) 216-3854, amy.alexander@usdoj.gov

Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Jerryan Burrell, a/k/a Rhino, age 31, of Baltimore, today to 20 years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute heroin, powder and crack cocaine, marijuana, and oxycodone. On March 8, 2017, Judge Russell sentenced Devin Rodgers, a/k/a Donkey and Dick Butkus, age 21, of Baltimore, to 10 years in prison, followed by five years of supervised release, on the same charge. Burrell and Rodgers admitted that they were members of Hillside, a drug distribution conspiracy which operated for 14 years in the Cherry Hill section of Baltimore.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.

“Although the only crime charged in this case is a drug conspiracy, the allegations against the Hillside group includes 13 murders and 21 non-fatal shootings,” said U.S. Attorney Rod J. Rosenstein. “Conspiracy cases are a valuable tool to put violent gangs out of business.”

According to Burrell’s and Rodgers’ plea agreements, from at least 2002, a group known as Hillside distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center and other locations throughout Cherry Hill, and in west and southwest Baltimore City. Members of Hillside used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution. Only trusted members of Hillside, such as Burrell and Rodgers, were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, Burrell, Rodgers and other Hillside members used colored topped vials or colored the drugs with food coloring.

Burrell and Rodgers admitted that they distributed heroin, marijuana, cocaine and other narcotics. According to the plea agreements, video recordings show that Burrell and Rodgers were in the Hillside stash houses, along with other Hillside members.

During Burrell’s and Rodgers’ involvement in the Hillside drug conspiracy, it was reasonably foreseeable to them that the conspiracy involved between one and three kilograms of heroin, between 280 and 840 grams of crack cocaine, between five and 15 kilograms of powder cocaine, as well as marijuana and oxycodone.

Members of Hillside, including Burrell, also committed acts of violence in order to fund their narcotics activities and intimidate others who would interfere with their narcotics trafficking. For example, on January 16, 2011, Burrell and another Hillside member committed an armed robbery with a loaded .22 caliber handgun with an obliterated serial number. Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy.

Since 2013, federal prosecutors have convicted at least 35 members of three other rival drug-dealing organizations that operated in Cherry Hill: “Up da Hill,” “Little Spelman” and “Coppin Court.”

United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Earl Lafayette Hall, III, age 35, of Arlington, Tennessee, and his wife, Renita Blunt, age 32, were convicted by a federal jury on conspiracy, mail fraud, money laundering, and aggravated identity theft charges related to an unemployment compensation fraud scheme. The five-day trial was held before United States District Court Judge Sylvia H. Rambo in Harrisburg.

According to U.S. Attorney Bruce D. Brandler, the jury returned with the guilty verdicts after approximately 2.5 hours of deliberation. Hall was convicted on 12 mail fraud counts, 10 money laundering counts, four aggravated identity theft counts, conspiracy to commit mail fraud, and conspiracy to commit money laundering. Blunt was convicted of conspiracy to commit mail fraud and aggravated identity theft counts. The jury also directed Hall to forfeit the sum of $30,000 and Blunt to forfeit $1,026.

Hall and Blunt were accused of applying for Veteran’s unemployment compensation benefits under the Unemployment Compensation for Ex-Service Members Program, commonly known as “The UCX Program.” The UCX Program is a federally funded U.S. Department of Labor program administered by the States. The jury found that Hall assumed the identity of five individuals between 2013 and 2014 in order to receive benefits under the program. The jury also found that Blunt assumed the identity of one individual to receive benefits under the program.

"Earl Lafayette Hall III and Renita Blunt misused the identities of others to submit counterfeit forms and steal money intended for individuals who experience unemployment after serving in the U.S. Armed Forces. We will continue to work with our law enforcement partners to investigate those who exploit the Unemployment Compensation for Ex-service Members Program,” stated Richard Deer, Special Agent in Charge, Philadelphia Region, U.S. Department of Labor, Office of Inspector General.

The investigation was conducted by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations, U.S. Defense Criminal Investigative Service, U.S. Postal Inspection Service with assistance from Pennsylvania Department of Labor and Industry, Internal Audits Division, Pennsylvania Department of Labor and Industry, Office of Unemployment Compensation Benefits and Policy, and the Pennsylvania Department of the Treasury, Office of Unemployment Compensation Disbursements. Assistant U.S. Attorneys Kim Douglas Daniel and Scott R. Ford prosecuted the case.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Kansas City, Mo., tax preparers have been indicted by a federal grand jury for their roles in a tax fraud conspiracy.

Azareia Derseh, 36, his brother, Ananeia Derseh, 39, and Quashanda King, 36, all of Kansas City, were charged in a 23-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, March 7, 2017. That indictment was unsealed and made public following King’s arrest and initial court appearance on Thursday, March 9, 2017.

The federal indictment alleges that Azareia Derseh, Ananeia Derseh and King participated in a conspiracy to prepare fraudulent tax returns from Jan. 30, 2013, to March 5, 2015. Azareia Derseh owned and operated a tax preparation business in the Kansas City metropolitan area, under the names Instant Tax Service and Speedy Tax Service, at various locations. Ananiea was the manager in charge of one of the offices and King was the manager in charge of another office.

According to the indictment, conspirators prepared at least 47 false federal income tax returns, which contained materially false and fraudulent items, for at least 37 clients for tax years 2012, 2013 and 2014. The tax loss based upon the conduct in the conspiracy was $108,621.

Conspirators most often inserted a false Schedule C, the indictment says, wherein the client reported to carry out a business at a modest profit. Often, the return preparers allegedly inflated the gross receipts reported on the Schedule C. Sometimes, the indictment says, the return preparers completely fabricated a Schedule C, reporting income from a fictitious business. The return preparers allegedly added false income to clients’ returns in order to maximize the refundable credits and fraudulently increase clients’ refunds. By including these and other fraudulent items on their client’s tax returns, conspirators allegedly manufactured substantial refunds that the clients would not have been entitled to if the returns had been accurately prepared.

In addition to the conspiracy, the indictment charges Ananeia Derseh with 11 counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns. Azareia Derseh is also charged with four counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns. King is also charged with seven counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns.

Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.

Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373

Bangor, Maine:  United States Attorney Thomas E. Delahanty II announced that Steven Tutt, 46, of Gorham, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 12 months and 1 day in prison to be followed by 5 years of supervised release for possession of child pornography.  He was also ordered to pay a $3,000 fine.  The defendant pled guilty on November 29, 2016.

According to court records, law enforcement, using a peer-to-peer file sharing program, downloaded a child pornography video from the defendant’s home computer.  A search warrant was subsequently obtained for the defendant’s residence.  A forensic examination of the defendant’s computer was conducted and revealed several additional videos of child pornography.  During an interview with law enforcement, the defendant admitted that he had actively searched for and obtained images and videos of child pornography using peer-to-peer software.

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit.

Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373

Bangor, Maine:  United States Attorney Thomas E. Delahanty II announced that Presiliano Gonzalez Berruete, 53, a citizen of Mexico, pleaded guilty today in U.S. District Court to being an alien who was found in the United States after having been removed and deported from the United States.  Gonzalez Berruete was indicted for that crime in February 2017. 

According to court documents, on February 12, 2017, the defendant arrived at the Canada Border Services Agency in Woodstock, New Brunswick.  He was refused entry to Canada and transported to the Houlton, Maine Port of Entry.  A United States Custom and Border Protection (CBP) officer determined that the defendant was a citizen of Mexico and had been removed from the United States in 2010.  The removal of the defendant happened after the defendant was convicted of a federal felony drug trafficking offense and had served time in prison for that offense.  The defendant returned to the United States after that removal by entering the United States without inspection at a place that was not designated for entry.

The case was investigated by United States Customs and Border Protection, Department of Homeland Security.

     WASHINGTON – Jabarr Emerson Jr. and Dalonte Stewart, both 16 years old and from Washington, D.C., have been sentenced to prison terms for robbing two people inside their home last September in Northeast Washington, U.S. Attorney Channing D. Philips announced today.

     Emerson and Stewart were charged as adults given the serious nature of their crimes. Emerson pled guilty in the Superior Court of the District of Columbia in January 2017, and Stewart in December 2016, to armed robbery for their roles in the crime. Emerson also pled guilty to robbery in a separate case.

     The Honorable Maribeth Raffinan sentenced both defendants to four years in prison for the armed robbery. She also sentenced Emerson to an additional 18 months in prison for the second robbery offense. Following their prison terms, both will be placed on five years of supervised release. Emerson was sentenced today and Stewart was sentenced March 9, 2017.

     According to the government’s evidence, on Sept. 22, 2016, at about 12:45 a.m., Emerson, Stewart, and an accomplice, all wearing masks, approached a woman in the 1900 block of Lincoln Road NE. One assailant grabbed the victim from behind and placed her in a chokehold while pointing a handgun to her head. The group demanded her money, and she replied that she did not have any. When asked where her money was located, she told them that it was inside her apartment, and the three then forced the victim into her home.

     Once inside the apartment, the assailants realized that a man was also present, and subsequently they held him at gunpoint and demanded his money, too. The victims told the assailants that they had a safe and where the key could be found. The assailants retrieved the key, located the safe, opened the safe, and took approximately $400.

     Emerson also pled guilty to a second robbery on Aug. 26, 2016, also in Northeast Washington. In this instance, at 2:50 a.m., the victim had just arrived at his home in the unit block of R Street NE. He was walking into his basement apartment when Emerson and a second assailant approached from behind. The victim heard a noise, turned around, and saw Emerson and his cohort, wearing hooded sweatshirts tied around their faces, with long guns that appeared to be sawed-off shotguns. One of the assailants demanded that the victim open the door, get on his knees, and crawl through the door while the gun was placed to the back of his head. Once inside the residence, the two intruders demanded the man’s money and other property. The man gave them $40, an iPhone and several credit cards. The two also took the man’s two laptops, and one also went through the man’s pockets. They then asked if anyone else was home. When they learned that a roommate was in a bedroom, one of the assailants went inside. The roommate woke up when the bedroom lights were turned on, and he saw one of the intruders pointing a sawed-off shotgun at his head. The intruder went through the roommate’s suitcase and pants, walked out of room with two credit cards, and he and his accomplice left the residence.

     Emerson and Stewart were arrested in November 2016.

     In announcing the sentences, U.S. Attorney Phillips commended the work of those who investigated the cases from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the Latent Fingerprint Unit of the District of Columbia Department of Forensic Sciences. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Richard Barker and Vivien Cockburn, who prosecuted the matter.

EUGENE, Ore. – On Thursday, March 9, 2017, a federal jury found a Springfield, Ore. property manager guilty of wire fraud and theft. Parthava Behesht Nejad, 82, was convicted of stealing approximately $150,000 in welfare benefits by concealing his use and control of rental properties worth more than $600,000. Nejad will be sentenced on June 13, 2017 before U.S. District Court Judge Ann Aiken.

Federal agents began investigating Nejad in 2013 after social workers reported that he was the landlord for numerous people receiving disability benefits. Further investigation determined that Nejad was the president of the Parthava Behesht Nejad International Foundation, which owned eight rental properties in north Springfield, and had been receiving Supplemental Security Income (SSI), food stamps, and Medicaid benefits since 2003.

For more than a decade, Nejad claimed he had no income, owned no assets, and had only one bank account containing a few hundred dollars. In reality, Nejad’s properties had been generating substantial rental income for years. Federal agents also discovered a bank account Nejad had concealed from welfare agencies that at times contained more than $30,000.

According to court records and trial testimony, Nejad acquired the properties and transferred them to his foundation prior to applying for welfare benefits in 2003. Nejad told the Internal Revenue Service (IRS) and others that his foundation, incorporated in Oregon in 1986, was a church and provided temporary housing for victims of religious persecution. In fact, Nejad had operated the properties as a rental business since the 1980s.

This case was investigated by the Social Security Administration (SSA) Office of Inspector General in partnership with the U.S. Department of Health and Human Services (HHS) Office of Investigation and the Oregon Department of Human Services. It was prosecuted by Helen Cooper and Amy Potter, Assistant United States Attorneys for the District of Oregon.

FORT WORTH — Following a five-day trial before Senior U.S. District Judge Terry R. Means, a federal jury convicted Waymon Scott McLaughlin, 57, of Fort Worth, Texas, on four counts of bank robbery, announced U.S. Attorney John Parker of the Northern District of Texas.

Each of the bank robbery counts carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. McLaughlin will remain in custody pending sentencing scheduled for August 8, 2017.

The government presented evidence at trial that McLaughlin robbed the below listed locations:

      May 6, 2016 First Convenience Bank, 3510 Altamesa Blvd., Fort Worth, Texas

      May 20, 2016 Woodforest Bank, 2225 W. 120, Grand Prairie, Texas

      May 27, 2016 First Convenience Bank, 3510 Altamesa Blvd., Fort Worth, Texas

      May 27, 2016 First Convenience Bank, 6756 W. Vickery Blvd., Fort Worth, Texas

The Federal Bureau of Investigation, the Grand Prairie Police Department, and the Fort Worth Police Department investigated the case.

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PORTLAND, Ore. – A federal jury today delivered its verdicts against four defendants charged with conspiracy, possession of firearms on federal property, and depredation of government property during the 41-day armed occupation of the Malheur National Wildlife Refuge.

Jurors found Jason Patrick guilty of conspiracy to impede officers of the United States and not guilty of possession of firearms and dangerous weapons in a federal facility. Darryl Thorn was found guilty of conspiracy to impede officers of the United States and possession of firearms and dangerous weapons in a federal facility. Duane Ehmer was found not guilty of conspiracy to impede officers of the United States and guilty of depredation of government property. Finally, Jake Ryan was found not guilty of conspiracy to impede officers of the United States and possession of firearms and dangerous weapons in a federal facility and guilty of depredation of government property.

Co-defendants Ammon Bundy, Ryan Bundy, Shawna Cox, David Fry, Jeff Banta, Kenneth Medenbach, and Neil Wampler were previously found not guilty on all counts by a jury on October 27, 2016. Co-defendants Jason Blomgren, Brian Cavalier, Blaine Cooper, Eric Flores, Wesley Kjar, Corey Lequieu, Joseph O’Shaughnessy, Ryan Payne, Jon Ritzheimer, Geoffrey Stanek, Travis Cox, Dylan Anderson, Sandra Anderson, and Sean Anderson previously pleaded guilty. Charges against co-defendant Peter Santilli were previously dismissed.

“We are gratified that justice has been served and thank the jury for their service,” said Billy J. Williams, United States Attorney for the District of Oregon. “For forty-one days early last year, these defendants prevented U.S. Fish and Wildlife Service and Bureau of Land Management employees from doing their jobs as stewards of land belonging to the American people. They interfered with the daily lives of residents of Burns, Hines, Harney County and members of the Burns Paiute Tribe. The negative impacts of their actions continue to this day. However, their efforts to sow discord here in Oregon among residents, business owners, community leaders, and law enforcement personnel have failed,” continued U.S. Attorney Williams. “Our communities and state are stronger because of our joint effort to bring these individuals to justice and we as Oregonians can now begin to move past these unfortunate events.”

“Over a period of weeks leading up to and during the Malheur National Wildlife Refuge occupation, these defendants made choices. Now, a jury of their peers has spoken, and the consequences of those choices are quite clear,” said Loren Cannon, Special Agent in Charge of the FBI in Oregon. “The U.S. Constitution gives all of us freedoms, but it also comes with the responsibility to respect the laws of this nation. We don’t live in a perfect world, but we do live in a great country. I encourage those who want to make it even better to act in peaceful and lawful ways to inspire lasting, positive change.”

Beginning on January 2, 2016, Ammon Bundy, Ryan Bundy, and several dozen followers, seized the Malheur National Wildlife Refuge near Burns, Oregon in Harney County. For forty-one days, the armed occupiers prevented federal officials from performing their official duties at the refuge by force, threats, and intimidation. The Bundys and several other occupiers, were arrested on January 26, 2016 on U.S. Highway 395 near Burns en route to a community meeting in John Day. The occupation officially ended on February 11, 2016 when the last four occupiers turned themselves in to federal authorities.

Sentencing for each of the four defendants is scheduled for May 10, 2017. The case was investigated by the FBI and prosecuted by Geoffrey Barrow and Ethan Knight, Assistant United States Attorneys for the District of Oregon.

            A registered sex offender who committed new crimes against children while on supervised release was sentenced today in U.S. District Court in Seattle to 15 years in prison and lifetime supervised release.  JAMES WILLIAM STILSON, 40, of Everett, has previous convictions for possession of child pornography and failing to register as a sex offender.  Chief U.S. District Judge Ricardo S. Martinez imposed the sentence.

            According to records filed in the case, STILSON was taken into custody in December 2015, when his federal probation officer became concerned that STILSON had multiple electronic devices for accessing the internet – something prohibited under the terms of his supervision.  Forensic examination of his devices revealed that he had images of children engaged in sexually explicit conduct.  Additionally, STILSON was using a messaging service popular with teens to try to convince young girls to send him sexually explicit pictures.  STILSON was posing as a teen-age boy to try to get the girls to send the photos.  In one instance, STILSON sent a young girl an image of child pornography in an attempt to convince her to send him explicit photos.

            STILSON’s original conviction for possession of child pornography was in 2004 in New Mexico.  His supervision was transferred to Western Washington and in 2009, computer monitoring equipment required on his electronic devices revealed he had been accessing websites devoted to child pornography.  Before law enforcement could arrest STILSON, he absconded to Mexico.  When he attempted to sneak back into the U.S., STILSON was arrested and was convicted in 2012 for failing to register as a sex offender.  Some two years into his most recent term of supervised release, his probation officer conducted a home inspection and observed STILSON through a window using a smart phone – something he was not supposed to have.  Law enforcement brought in ‘Bear’ - - the Seattle Police canine trained to find electronic devices - - who searched the home and found three smart phones and other digital devices.

            The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Seattle Police Department.  Critical assistance was provided by the U.S. Probation Office.

            The case is being prosecuted by Assistant United States Attorney Matthew Hampton. 

            Press contact for the U.S. Attorney’s Office is Colleen Bernier at (206)553-7970.

Volkswagen AG (VW) pleaded guilty in federal court in Detroit today to three felony counts charging: (1) conspiracy to defraud the United States, engage in wire fraud, and violate the Clean Air Act; (2) obstruction of justice; and (3) importation of merchandise by means of false statements. As part of the plea, VW agreed to pay a $2.8 billion penalty as a result of the company’s decade-long scheme to sell diesel vehicles containing software designed to cheat on U.S. emissions tests. In January 2017, VW had agreed to plead guilty to resolve these criminal charges.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Barbara McQuade of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Special Agent in Charge Jeffrey Martinez of the Chicago Area Office of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) and Special Agent in Charge David Gelios of the FBI Detroit Field Office, made the announcement.

VW pleaded guilty before U.S. District Judge Sean F. Cox of the Eastern District of Michigan. Specifically, VW pleaded guilty, first, to participating in a conspiracy to defraud the United States and VW’s U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards, using cheating software to circumvent the U.S. testing process and concealing material facts about its cheating from U.S. regulators. Second, VW pleaded guilty to obstruction of justice for destroying documents related to the scheme. And third, VW pleaded guilty to importing these cars into the United States by means of false statements about the vehicles’ compliance with emissions limits. After accepting VW’s plea, Judge Cox scheduled the company’s sentencing for April 21, 2017.

The FBI and EPA-CID investigated the case. This case is being prosecuted by members of the Department of Justice’s Criminal Division, Fraud Section, including: Chief of the Securities and Financial Fraud Unit Benjamin D. Singer, as well as Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters. Also prosecuting the case are members of the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section, including: Senior Trial Attorney Jennifer Blackwell. Additionally, the case is being prosecuted by members of the U.S. Attorney’s Office for the Eastern District of Michigan, including Criminal Division Chief Mark Chutkow, Economic Crimes Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.

ROCKFORD — A McHenry County man pleaded guilty today before U.S. District Judge Frederick J. Kapala to four charges of robbery.

SHAWN M. RANK, 47, of Woodstock, pleaded guilty to the robberies of Heartland Bank and Trust Company, 327 W. Main St., Genoa, on Jan. 15, 2016; the Cash Store, 1479 N. State St., Belvidere, on April 1, 2016; Harvard Savings Bank, 58 N. Ayer St., Harvard, on May 6, 2016; and Alpine Bank, 600 S. State St., Belvidere, on June 13, 2016.

According to the written plea agreement, Rank admitted that at 10:30 a.m. on Jan. 15, 2016, he walked directly to a teller’s station at the Heartland Bank and Trust Company in Genoa, pushed a blue zippered bank bag across the counter and told the teller to fill it with $50s and $100s. Rank opened his jacket and showed a gun to the teller. The teller placed $1,250 in the bank bag.

In addition, Rank admitted in the plea agreement that in the Cash Store robbery he walked up to an employee standing at the counter and told the employee it was a robbery. The employee placed $1,232 in a blue bank bag.

Rank further admitted in the plea agreement that he similarly robbed Harvard Savings Bank when he placed a blue zippered bag on the counter, displayed a gun, and demanded that the teller give him money. The teller handed $2,700 to Rank.

Rank also admitted that he robbed Alpine Bank in Belvidere, again using a blue zippered bag. When Rank demanded money, the teller then gave him $1,790 from her drawer.

On each count Rank faces a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to 3 years following imprisonment, and a fine of up to $250,000, and restitution. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing is set for June 29, 2017, at 2:30 p.m.

The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The DeKalb County Sheriff’s Office and the Harvard, Genoa, and Belvidere Police Departments assisted in the investigation.

The government is represented by Assistant U.S. Attorney Margaret J. Schneider.

CAMDEN, N.J. – The owner of KLA International Inc., Quad Trade Services Inc., and TCI Technologies Inc., today admitted his role in a conspiracy to defraud approximately 40 businesses out of more than $1 million, U.S. Attorney Paul J. Fishman announced.

Keith B. Fisher Sr. 59, of Philadelphia, Pennsylvania, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to a superseding information charging him with one count of conspiracy to commit mail fraud.

According to documents filed in this case and statements made in court:

From February 2010 through August 2015, Fisher and his conspirators, through the use of three purported commercial supply companies, bid on federal contracts through FedBid.com, an online marketplace that provided reverse auction services and enabled government agencies to post requirements for goods or services with the intention of attracting quotes and offers from vendors. Upon submitting a winning bid, Fisher’s companies were awarded contracts to provide goods to the respective government agency.

Fisher and his conspirators orchestrated the fraud by subcontracting with third-party vendors throughout the United States to provide these goods to the respective government agencies. isher and his conspirators induced the third-party vendors to ship the goods to the government agencies on credit by falsely promising to pay the vendors for the goods and making false and fraudulent representations to the vendors about the credit-worthiness, business history, and financial status of Fisher’s companies. Fisher and his conspirators provided the vendors with fraudulent credit applications, false trade references, and fraudulent information about the financial status of his companies. Upon receipt of the goods and materials supplied by the third-party vendors, the government agencies paid Fisher and his conspirators. Fisher, in turn, failed to pay or only made nominal payments to the 40 victim vendors, who were owed more than $1 million for the goods and materials supplied to the government.

The charge to which Fisher pleaded guilty carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for June 19, 2017.

U.S. Attorney Fishman credited special agents with the U.S. Department of the Interior, Office of Inspector General, under the direction of Special Agent in Charge Michael V. Graziano, special agents with the U.S. Naval Criminal Investigative Service - Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont, special agents with the U.S. Army Criminal Investigation Command - Mid-Atlantic Fraud Field Office, under the direction of Special Agent in Charge L. Scott Moreland, special agents with the Department of Veterans Affairs, Office of Inspector General – Northeast Field Office, under the direction of Special Agent in Charge Donna L. Neves, special agents from the U.S. Department of Justice, Office of Inspector General - Fraud Detection Office, under the direction of Special Agent in Charge Lewe Sessions, and Postal Inspectors with the United States Postal Inspection Service, under the direction of Inspector in Charge David Bosch, for conducting the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.

Acting United States Attorney Bob Troyer, IRS Criminal Investigation (IRS-CI) Special Agent in Charge Steven Osborne, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Field Division Special Agent in Charge Debora Livingston announced that today a jury found Richard Wyatt, age 53, of Evergreen, Colorado guilty of conspiracy to deal in firearms without a license and tax charges (counts 1, 5, and 6 through 13). The jury hung on counts 2 through 4. The guilty verdicts were the result of a 6-day trial before U.S. District Court Chief Judge Marcia S. Krieger. The jury deliberated for approximately 5 days before reaching their verdict. Wyatt, who was indicted by a federal grand jury in Denver on February 9, 2016, first appeared at the trial free on bond. Wyatt was taken immediately into custody after the jury’s guilty verdict. He is scheduled to be sentenced by Chief Judge Krieger on July 19, 2017.

According to the indictment and evidence presented at trial, Wyatt operated Gunsmoke, a store in Wheat Ridge, Colorado, that displayed firearms and firearm accessories for sale. Wyatt was the principal decision maker for the store and controlled the store’s bank account. In addition to holding itself out as a business that bought and sold firearms, Gunsmoke provided gunsmithing services. Wyatt aggressively publicized his business by posting videos on YouTube and by appearing in a reality television series that appeared on the Discovery Channel. The reality TV show aired from 2011 through 2012, showing a total of 26 episodes.

On Feb. 17, 2012, Wyatt conspired with others to deal in firearms without a license. In April 2012, the defendant surrendered his Federal Firearms License (FFL) due to his violations of federal laws and regulations. After Gunsmoke surrendered its FFL, Gunsmoke changed the address of a store known as Triggers Firearms LLC’s (Triggers) federal firearms license, to the Gunsmoke address, although they did not play any role in managing the store or receive any profits. Thereafter, Wyatt continued to operate Gunsmoke as a retail firearms store that also offered gunsmithing services, but never held an ownership interest in Triggers or assumed management of Triggers. Wyatt and other conspirators submitted false paperwork to the ATF to hide that Triggers was acting as a straw licensee for Gunsmoke.

After losing his FFL, the defendant did not apply for or obtain a license to sell firearms from the Gunsmoke premises. Wyatt held a meeting the day before losing his license with his employees to describe how he wanted the business to continue to run. Between April 1, 2013 and March 31, 2015, no other person was licensed to engage in the business of dealing in firearms at Gunsmoke. Wyatt directed Gunsmoke employees to enter firearm sales in Gunsmoke’s computer point of sales software system as “miscellaneous” sales rather than firearm sales. Customers who shopped at Gunsmoke were able to look at numerous firearms that were displayed throughout the store. Customers were able to speak with Gunsmoke employees, including Wyatt, about the features of particular firearms. Finally, customers selected and purchased firearms from Gunsmoke and were able to have gunsmithing services performed on firearms at the Gunsmoke premises. After receiving payment for any firearms, Gunsmoke employees directed the customers to another firearm store which had a valid federal firearms license, where the customer filled out the background check paperwork and the customers took possession of the firearm(s) they had purchased at Gunsmoke. Customers who wanted gunsmithing services left their firearms with Gunsmoke. After the gunsmiths at Gunsmoke completed their work, they returned the firearms to the customers. The customers paid Gunsmoke directly for this service. Wyatt, without the FFL license, continued to order new guns for sale to keep the business going.

In addition to the alleged firearms violations, Wyatt failed to pay personal income tax in years 2009, when he made approximately $290,000, in 2010, when he made approximately $123,000, and in 2012, when he made approximately $689,000. Further, in 2010, 2011 and 2012, Wyatt failed to pay corporate taxes. In 2012, Wyatt willfully filed a tax return he knew to be false, stating that he lost money, when in fact he made at least $350,000 that he failed to disclose.

“The defendant decided the rules about guns and paying taxes didn’t apply to him,” said Acting U.S. Attorney Bob Troyer. “He now faces well deserved time for that decision.”

"The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject,” said Steven Osborne, Special Agent in Charge, IRS – Criminal Investigation Denver Field Office. “This conviction sends a message that IRS-CI is working to make sure all taxpayers file and pay their fair share of taxes.”

“The laws and regulations surrounding the sale of firearms exist for a reason, and no one is above the law,” said ATF Denver Field Division Special Agent in Charge Debora Livingston. “ATF is committed to ensuring every gun dealer is appropriately licensed, educated and inspected, and we will investigate those who believe the rules do not apply to them.”

This case was investigated by the ATF and IRS-CI. The defendant faces up to 5 years in prison per count for each of the two counts of conspiracy. He faces not more than 1 year per count for each tax count.

The case was prosecuted by Assistant United States Attorneys Suneeta Hazra, Peter McNeilly and Anna Edgar, with Assistant United States Attorney Tonya Andrews assisting on the asset forfeiture.

Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Odere Suleitopa, age 33, a Nigerian national residing in Brooklyn, New York, today to 63 months in prison, followed by three years of supervised release, for 18 counts of wire fraud and five counts of aggravated identity theft arising from a three-year credit card fraud scheme. A federal jury convicted Suleitopa on October 27, 2016, after a four-day trial. Judge Motz entered an order requiring Suleitopa to pay restitution of $140,000, and to forfeit over $1,000 and cellular telephones seized during the investigation.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Easton Police Department Chief David A. Spencer; and Talbot County State’s Attorney Scott G. Patterson.

According to the evidence presented at his four day trial, Suleitopa obtained credit cards with his name embossed on them, but with the account numbers that had been stolen. The magnetic strip on the fraudulent cards were disabled. Suleitopa went to retail stores and used the fraudulent cards to purchase gift cards and merchandise. The evidence showed that on October 29, 2015, Suleitopa completed three fraudulent transactions in Alexandria, Virginia, totaling $5,814.08. Between November 9 and November 17, 2015, the evidence showed that Suleitopa completed 26 transactions using the fraudulent credit cards – eight in Delaware, and 18 in Easton and Denton, Maryland. The total purchases were over $44,000.

On December 23, 2015, Suleitopa made over $4,000 of purchases of high end electronics and gift cards at a retail store in in Gardner, Massachusetts, using the fraudulent credit cards. He was arrested on January 13, 2016, after returning to the same store and attempting to make additional purchases with the fraudulent cards.

Over the course of the scheme, which spanned eight states from New Hampshire to Georgia, more than 15 victims had their credit card accounts compromised and losses were in excess of $190,000.

Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.

United States Attorney Rod J. Rosenstein commended HSI-Baltimore, the Easton Police Department, and Talbot County State’s Attorney’s Office for their work in the investigation, and recognized the Gardner, Massachusetts Police Department, the Spartanburg County and Berkeley County (South Carolina) Sheriff’s Offices, and the Summerville, South Carolina Police Department for their assistance in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Menaka Kalaskar, who prosecuted the case.