FROM: U.S. JUSTICE DEPARTMENT
Friday, April 17, 2015
Four Companies and Five Individuals Indicted for Illegally Exporting Technology to Iran
Seven Foreign Nationals and Companies Placed on Department of Commerce’s Entity List
A 24-count indictment has been unsealed charging four corporations and five individuals with facilitating the illegal export of high-tech microelectronics, uninterruptible power supplies and other commodities to Iran in violation of the International Emergency Economic Powers Act (IEEPA).
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Assistant Director Randall Coleman of the FBI’s Counterintelligence Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Under Secretary of Commerce Eric L. Hirschhorn of the Department of Commerce, Special Agent in Charge Tracy E. Martin of the Department of Commerce’s Office of Export Enforcement’s Dallas Field Office and Special Agent in Charge Lucy Cruz of the IRS’ Houston Field Office.
“The nine defendants charged in the indictment allegedly circumvented U.S. sanctions and illegally exported controlled microelectronics to Iran,” said Assistant Attorney General Carlin. “Violations of the International Emergency Economic Powers Act not only can undercut the impact of U.S sanctions, but can also serve to undermine U.S. foreign policy and adversely affect national security. I want to thank all those in law enforcement whose tireless efforts led to these charges.”
“The prevention, investigation and prosecution of the illegal export of critical electronic system is one of the highest priorities of the Department of Justice,” said U.S. Attorney Magidson. “This indictment is evidence of our commitment to ensuring that our laws are enforced and our national security is protected.”
“The proliferation of sensitive U.S. technologies to Iran and the direct support to their military and weapons programs remains a clear threat to U.S. national security,” said Coleman. “The FBI and our interagency partners will continue to identify, penetrate and neutralize proliferation efforts aimed at circumventing our export control laws and economic sanctions to illegally obtain sensitive technologies.”
“IRS-CI will tenaciously pursue individuals who violate international emergency economic powers statutes,” said Special Agent in Charge Cruz. “Our role is to unravel the often concealed or disguised financial crimes that threaten our national security.”
“The Office of Export Enforcement and our law enforcement partners will continue to investigate, pursue and dismantle these procurement networks that violate U.S. export control laws whether they operate within our borders or anywhere else in the world,” said Special Agent in Charge Martin.
The indictment alleges Houston-based company Smart Power Systems Inc. (SPS); Bahram Mechanic, 69, and Tooraj Faridi, 46, both of Houston; and Khosrow Afghahi, 71, of Los Angeles, were all members of an Iranian procurement network operating in the United States. Also charged as part of the scheme are Arthur Shyu, and the Hosoda Taiwan Limited Corporation in Taiwan; Matin Sadeghi, 54, and Golsad Istanbul Trading Ltd. in Turkey; and the Faratel Corporation, co-owned by Mechanic and Afghahi in Iran.
The indictment was returned under seal on April16, 2015, and unsealed as Mechanic and Faridi made their initial appearances before U.S. Magistrate Judge Francis H. Stacy of the Southern District of Texas. Afghahi was taken into custody and will make an initial appearance in the Central District of California. Sadeghi and Shyu are believed to be out of the country and warrants remain outstanding for their arrests. Anyone with information is asked to contact the nearest embassy or local FBI office. They may also contact the FBI’s Houston Office at 713-693-5000.
In conjunction with the unsealing of these charges, the Department of Commerce is designating seven foreign nationals and companies, adding them to its Bureau of Industry and Security Entity List. The indictment alleges these individuals and companies received, transshipped or otherwise facilitated the illegal export of controlled commodities by the defendants. Designation on the Entity List imposes a license requirement before any commodities can be exported from the United States to these persons or companies and establishes a presumption that no such license will be granted.
The Entity List identifies foreign parties that are prohibited from receiving some or all items subject to the Export Administration Regulations (EAR) unless the exporter secures a license. Those persons present a greater risk of diversion to weapons of mass destruction (WMD) programs, terrorism or other activities contrary to U.S. national security or foreign policy interests. BIS can add to the Entity List a foreign party, such as an individual, business, research institution or government organization, for engaging in activities contrary to U.S. national security and/or foreign policy interests. In most instances, license exceptions are unavailable for the export, re-export or transfer (in-country) to a party on the Entity List of items subject to the EAR. Rather, a prior license is required, usually subject to a policy of denial.
According to the indictment, Mechanic and Afghahi are the co-owners of Iran-based Faratel and its Houston-based sister company SPS. Faratel designs and builds uninterruptible power supplies for various Iranian entities, including Iranian government agencies such as the Iranian Ministry of Defense, the Atomic Energy Organization of Iran, and the Iranian Centrifuge Technology Company. SPS designs and manufactures uninterruptible power supplies in cooperation with Faratel. Faridi currently serves as a vice president of SPS. Shyu is a senior manager at the Hosoda Tawain Limited Corporation, a trading company located in Taiwan, while Sadeghi is an employee of Golsad Istanbul Trading, a shipping company located in Turkey.
The indictment alleges that between approximately July 2010 and the present, Mechanic and the others engaged in a conspiracy to obtain various commodities, including controlled United States-origin microelectronics. They then allegedly exported these to Iran, while carefully evading the government licensing system set up to control such exports. The microelectronics shipped to Iran allegedly included microcontrollers and digital signal processors. According to the indictment, these commodities have various applications and are frequently used in a wide range of military systems, including surface-air and cruise missiles. Between July 2010 and the present, Mechanic’s network allegedly sent at least $24 million worth of commodities to Iran.
According to court documents, Mechanic, assisted by Afghahi and Faridi, regularly received lists of commodities, including United States-origin microelectronics, sought by Faratel in Iran. Mechanic would approve these orders and then send the orders to Shyu in Taiwan, according to the indictment. Shyu would allegedly purchase the commodities utilizing Hosoda Taiwan Limited and then ship the commodities to Turkey, where Sadeghi would act as a false buyer via his company, Golsad Istanbul Trading Ltd. The indictment further alleges that Sadeghi would receive the commodities from Shyu and then ship them to Faratel in Iran. Mechanic required his co-conspirators to notify him and obtain his approval for each of the transactions completed by the network, according to the allegations.
The individual defendants each face up to 20 years in federal prison, while the corporate defendants face fines of up to $1 million for each of the IEEPA counts, upon conviction.
Mechanic, Afghahi and Shyu are also charged with conspiring to commit money laundering and substantive money laundering violations, each charge carries a maximum potential term of imprisonment of 20 years. Mechanic further faces a charge of willful failure to file foreign bank and financial accounts for which he faces up to five years in federal prison. The charges also carry the possibility of substantial fines upon conviction.
The government’s case is being prosecuted by Assistant U.S. Attorneys S. Mark Mcintyre and Craig Feazel of the Southern District of Texas, as well as Trial Attorneys Casey Arrowood and Matt Walczewski of the Justice Department’s National Security Division.
Sunday, April 26, 2015
Friday, April 24, 2015
DOJ ANNOUNCES OVER $4 BILLION RETURNED TO VICTIMS BETWEEN 2002 AND 2015
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, April 22, 2015
Justice Department Returned Over $4 Billion to Victims of Crime Through the Asset Forfeiture Program Between 2002 and 2015
Marking National Crime Victims’ Rights Week this week, Attorney General Eric Holder and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced that the Justice Department’s Asset Forfeiture Program has returned more than $4 billion in civilly and criminally forfeited funds to crime victims since fiscal year 2002, with $723 million paid to over 150,000 crime victims in the last three years alone. The funds were distributed through the victim compensation program managed by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS).
“The Justice Department’s victim compensation program is an integral part of the asset forfeiture program and our efforts to take the profits out of crime, to restore assets to their rightful owners, and to provide real and meaningful justice to the victims of wrongdoing,” said Attorney General Holder. “The scale and scope of the returns made to victims under the program in recent years have been especially impressive. And going forward, as we continue our ongoing review of our asset forfeiture practices, we are committed to taking all appropriate measures to use this tool fairly, effectively, and with the greatest possible benefit to the American people.”
“The return of forfeited funds to crime victims is a priority of the civil and criminal forfeiture actions brought under the Asset Forfeiture Program,” said Assistant Attorney General Caldwell. “Success such as this would not be achievable without the efforts of prosecutors in the Criminal Division and U.S. Attorneys’ Offices around the country, as well as the many federal, state and local law enforcement agents contributing time and resources to these investigations. Make no mistake: forfeiture not only takes the money out of crime, but it’s among our most powerful tools to make victims whole.”
AFMLS partners with U.S. Attorneys’ Offices, federal law enforcement agencies, federal regulatory agencies, court-appointed receivers, private claim administrators, and private class action attorneys to return forfeited assets to crime victims.
Recent noteworthy cases in which victims were compensated for their losses with forfeited assets include:
$62.2 Million to Victims of MoneyGram Fraud
United States v. MoneyGram International Inc. (Middle District of Pennsylvania)
On Nov. 9, 2012, MoneyGram International Inc., a global money services business, entered into a deferred prosecution agreement (DPA) with the Justice Department. In doing so, MoneyGram admitted that corrupt MoneyGram agents across the country engaged in various consumer fraud schemes, including “grandparent” schemes in which a caller pretended to be the victim’s grandchild requesting money, and “advance fee” schemes requiring payment of fees to receive purported lottery winnings. These schemes resulted in victims sending over $100 million via MoneyGram to the criminals, and that amount was administratively forfeited as part of the DPA by the U.S. Postal Inspection Service. Over 22,000 victims who were fraudulently enticed to send money through corrupt agents have received a total of $62.2 million and been fully compensated for their losses.
$25.5 Million to Victims of Scott W. Rothstein
United States v. Scott W. Rothstein (Southern District of Florida)
From 2005 through 2009, attorney Scott W. Rothstein operated a massive Ponzi scheme through his now-defunct Fort Lauderdale law firm. Over 400 victims attempted to invest more than $1 billion in purported confidential civil settlement agreements upon Rothstein’s promise of substantial future payouts. In reality, the settlement agreements did not exist, but were part of an elaborate scam in which Rothstein either retained the funds or used them to pay earlier investors. Prosecutors forfeited more than $28 million in bank accounts, real property, vehicles, jewelry and investment accounts as proceeds of the fraud. Through a combination of the forfeiture proceeds, and other legal efforts, qualifying victims have received over $500 million in recoveries to date.
$14.6 Million to Victims of Allen Hilly
United States v. $7,599,358.09 (District of New Jersey)
In 2007, Allen Hilly was indicted on charges that he fraudulently obtained more than $18 million in federal tax and workers’ compensation withholdings. When Hilly died before his case could proceed to trial, prosecutors initiated civil forfeiture proceedings to pursue the fraud proceeds. As a result of the successful civil forfeiture, in 2014, over $14.6 million was returned to nine victims, including the Internal Revenue Service and the Illinois Department of Insurance, which paid out claims to injured employees who otherwise would not have received payments due to Hilly’s fraud.
$11.7 Million to the Centers for Medicare and Medicaid Services
United States v. One Helicopter and United States v. One Parcel (Southern District of Florida)
Brothers Luis, Carlos and Jose Benitez were indicted in May 2008 for their alleged involvement in a $110 million scheme to defraud Medicare through the use of 11 South Florida clinics they owned and operated. According to papers filed in court, the Benitez Brothers filed false claims and caused others to pay kickbacks to Medicare recipients who fraudulently claimed they received HIV infusion services at the clinics in order to obtain Medicare benefits in excess of $84 million. After being charged with health care fraud and money laundering, the brothers fled to Cuba and remain fugitives. The department filed three civil forfeiture actions that, to date, have resulted in the recovery of property, including a helicopter, hotel, a water park, 30 vehicles, a car rental agency, houses, condos, and apartments. Thus far, $11.7 million is available to return to Medicare as compensation for losses resulting from the fraud.
$10 Million to Victims of Traders International Return Network Fraud
United States v. David Merrick (Middle District of Florida)
Between 2008 and 2009, David Merrick operated a Panamanian-based corporation called Traders International Return Network (TIRN), which claimed to be a legitimate private investment club with offices located in Dubai, Kuala Lumpur, Malaysia and Switzerland. Court filings detail how Merrick created shell corporations, disseminated false monthly dividend reports, and recruited investors through a website and in person. Over 770 victims suffered $12 million in losses as a result of Merrick’s scheme. Approximately $10 million in forfeited funds have been returned to date to the victims.
$9.2 Million to the City of Dixon, Illinois
United States v. Rita A. Crundwell (Northern District of Illinois); United States v. Have Faith in Money, et al. (Northern District of Illinois)
For over 20 years, Rita Crundwell used her position as comptroller for the City of Dixon, Illinois to embezzle more than $53 million from the city. An investigation revealed that Crundwell used the embezzled funds to pay for numerous personal and business expenses, including the establishment of a large horse farming and showing operation. Crundwell was convicted of wire fraud and forfeited over 500 assets, including more than 300 horses and associated show items. The U.S. Marshals Service assumed responsibility for the care of the horses seized in 13 states, which included overseeing the births of more than 80 foals. Ultimately, liquidation of the forfeited assets generated $9.2 million, which has been paid to the City of Dixon.
$8.8 Million to Victims of Zaveri Oil and Gas Fraud
United States v. Ashvin Zaveri (Western District of New York)
Ashvin Zaveri was charged with orchestrating a Ponzi scheme that enticed investors to invest in sham oil and natural gas explorations in Tennessee and Kentucky. Due to his untimely death, the criminal case against Zaveri was dismissed. However, the U.S. Attorney’s Office commenced a civil forfeiture action against the proceeds of Zaveri’s life insurance policy. Approximately $8.8 million obtained through civil forfeiture was returned to more than 100 victims of the scheme.
$4.5 Million to Victims of Xybernaut Fraud
United States v. Zev Saltsman (Eastern District New York)
Xybernaut Corporation, headquartered in Northern Virginia, was a provider of wearable mobile computing hardware, software and services. In October 2007, Xybernaut’s founders were indicted for securities fraud and money laundering in connection with a kickback scheme. Hundreds of millions of Xybernaut shares were issued at below market prices to several purchasers in exchange for kickbacks paid to the founders. Approximately $4.5 million in assets forfeited from various defendants has been distributed to over 12,000 victims.
$4.5 Million to South Dakota Health Care Provider
United States v. Gerald Lloyd Larson (District of South Dakota)
Gerald Larson was convicted of embezzling funds from his employer, a South Dakota health care provider. During the course of his scheme, he embezzled almost $5 million. Shortly after his conviction in January 2015, the U.S. Attorney for the District of South Dakota requested a transfer of approximately $4.5 million in forfeited assets to the Clerk of Court to compensate the victim.
Priceless Artifact Returned to Harvard
United States v. One Qing Dynasty Jadeite Lobed Censer & Cover (District of Massachusetts)
In 1979, an 18th Century Qing Dynasty jade incense holder was stolen from the Harvard Art Museums. In 2009, the artifact resurfaced at a Hong Kong auction house, which ran a search in the Art Loss Register database and discovered that the jade censer being offered for sale matched the censer stolen from Harvard. The Art Loss Register then notified U.S. Immigration and Customs Enforcement officials of the censer’s reappearance. Thereafter, the U.S. Attorney’s Office commenced a civil forfeiture action and obtained a civil warrant to seize the artifact. After successful civil proceedings, the United States returned the stolen artifact to the Harvard Art Museums in January 2014, over 30 years after the original theft.
Wednesday, April 22, 2015
Justice Department Returned Over $4 Billion to Victims of Crime Through the Asset Forfeiture Program Between 2002 and 2015
Marking National Crime Victims’ Rights Week this week, Attorney General Eric Holder and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced that the Justice Department’s Asset Forfeiture Program has returned more than $4 billion in civilly and criminally forfeited funds to crime victims since fiscal year 2002, with $723 million paid to over 150,000 crime victims in the last three years alone. The funds were distributed through the victim compensation program managed by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS).
“The Justice Department’s victim compensation program is an integral part of the asset forfeiture program and our efforts to take the profits out of crime, to restore assets to their rightful owners, and to provide real and meaningful justice to the victims of wrongdoing,” said Attorney General Holder. “The scale and scope of the returns made to victims under the program in recent years have been especially impressive. And going forward, as we continue our ongoing review of our asset forfeiture practices, we are committed to taking all appropriate measures to use this tool fairly, effectively, and with the greatest possible benefit to the American people.”
“The return of forfeited funds to crime victims is a priority of the civil and criminal forfeiture actions brought under the Asset Forfeiture Program,” said Assistant Attorney General Caldwell. “Success such as this would not be achievable without the efforts of prosecutors in the Criminal Division and U.S. Attorneys’ Offices around the country, as well as the many federal, state and local law enforcement agents contributing time and resources to these investigations. Make no mistake: forfeiture not only takes the money out of crime, but it’s among our most powerful tools to make victims whole.”
AFMLS partners with U.S. Attorneys’ Offices, federal law enforcement agencies, federal regulatory agencies, court-appointed receivers, private claim administrators, and private class action attorneys to return forfeited assets to crime victims.
Recent noteworthy cases in which victims were compensated for their losses with forfeited assets include:
$62.2 Million to Victims of MoneyGram Fraud
United States v. MoneyGram International Inc. (Middle District of Pennsylvania)
On Nov. 9, 2012, MoneyGram International Inc., a global money services business, entered into a deferred prosecution agreement (DPA) with the Justice Department. In doing so, MoneyGram admitted that corrupt MoneyGram agents across the country engaged in various consumer fraud schemes, including “grandparent” schemes in which a caller pretended to be the victim’s grandchild requesting money, and “advance fee” schemes requiring payment of fees to receive purported lottery winnings. These schemes resulted in victims sending over $100 million via MoneyGram to the criminals, and that amount was administratively forfeited as part of the DPA by the U.S. Postal Inspection Service. Over 22,000 victims who were fraudulently enticed to send money through corrupt agents have received a total of $62.2 million and been fully compensated for their losses.
$25.5 Million to Victims of Scott W. Rothstein
United States v. Scott W. Rothstein (Southern District of Florida)
From 2005 through 2009, attorney Scott W. Rothstein operated a massive Ponzi scheme through his now-defunct Fort Lauderdale law firm. Over 400 victims attempted to invest more than $1 billion in purported confidential civil settlement agreements upon Rothstein’s promise of substantial future payouts. In reality, the settlement agreements did not exist, but were part of an elaborate scam in which Rothstein either retained the funds or used them to pay earlier investors. Prosecutors forfeited more than $28 million in bank accounts, real property, vehicles, jewelry and investment accounts as proceeds of the fraud. Through a combination of the forfeiture proceeds, and other legal efforts, qualifying victims have received over $500 million in recoveries to date.
$14.6 Million to Victims of Allen Hilly
United States v. $7,599,358.09 (District of New Jersey)
In 2007, Allen Hilly was indicted on charges that he fraudulently obtained more than $18 million in federal tax and workers’ compensation withholdings. When Hilly died before his case could proceed to trial, prosecutors initiated civil forfeiture proceedings to pursue the fraud proceeds. As a result of the successful civil forfeiture, in 2014, over $14.6 million was returned to nine victims, including the Internal Revenue Service and the Illinois Department of Insurance, which paid out claims to injured employees who otherwise would not have received payments due to Hilly’s fraud.
$11.7 Million to the Centers for Medicare and Medicaid Services
United States v. One Helicopter and United States v. One Parcel (Southern District of Florida)
Brothers Luis, Carlos and Jose Benitez were indicted in May 2008 for their alleged involvement in a $110 million scheme to defraud Medicare through the use of 11 South Florida clinics they owned and operated. According to papers filed in court, the Benitez Brothers filed false claims and caused others to pay kickbacks to Medicare recipients who fraudulently claimed they received HIV infusion services at the clinics in order to obtain Medicare benefits in excess of $84 million. After being charged with health care fraud and money laundering, the brothers fled to Cuba and remain fugitives. The department filed three civil forfeiture actions that, to date, have resulted in the recovery of property, including a helicopter, hotel, a water park, 30 vehicles, a car rental agency, houses, condos, and apartments. Thus far, $11.7 million is available to return to Medicare as compensation for losses resulting from the fraud.
$10 Million to Victims of Traders International Return Network Fraud
United States v. David Merrick (Middle District of Florida)
Between 2008 and 2009, David Merrick operated a Panamanian-based corporation called Traders International Return Network (TIRN), which claimed to be a legitimate private investment club with offices located in Dubai, Kuala Lumpur, Malaysia and Switzerland. Court filings detail how Merrick created shell corporations, disseminated false monthly dividend reports, and recruited investors through a website and in person. Over 770 victims suffered $12 million in losses as a result of Merrick’s scheme. Approximately $10 million in forfeited funds have been returned to date to the victims.
$9.2 Million to the City of Dixon, Illinois
United States v. Rita A. Crundwell (Northern District of Illinois); United States v. Have Faith in Money, et al. (Northern District of Illinois)
For over 20 years, Rita Crundwell used her position as comptroller for the City of Dixon, Illinois to embezzle more than $53 million from the city. An investigation revealed that Crundwell used the embezzled funds to pay for numerous personal and business expenses, including the establishment of a large horse farming and showing operation. Crundwell was convicted of wire fraud and forfeited over 500 assets, including more than 300 horses and associated show items. The U.S. Marshals Service assumed responsibility for the care of the horses seized in 13 states, which included overseeing the births of more than 80 foals. Ultimately, liquidation of the forfeited assets generated $9.2 million, which has been paid to the City of Dixon.
$8.8 Million to Victims of Zaveri Oil and Gas Fraud
United States v. Ashvin Zaveri (Western District of New York)
Ashvin Zaveri was charged with orchestrating a Ponzi scheme that enticed investors to invest in sham oil and natural gas explorations in Tennessee and Kentucky. Due to his untimely death, the criminal case against Zaveri was dismissed. However, the U.S. Attorney’s Office commenced a civil forfeiture action against the proceeds of Zaveri’s life insurance policy. Approximately $8.8 million obtained through civil forfeiture was returned to more than 100 victims of the scheme.
$4.5 Million to Victims of Xybernaut Fraud
United States v. Zev Saltsman (Eastern District New York)
Xybernaut Corporation, headquartered in Northern Virginia, was a provider of wearable mobile computing hardware, software and services. In October 2007, Xybernaut’s founders were indicted for securities fraud and money laundering in connection with a kickback scheme. Hundreds of millions of Xybernaut shares were issued at below market prices to several purchasers in exchange for kickbacks paid to the founders. Approximately $4.5 million in assets forfeited from various defendants has been distributed to over 12,000 victims.
$4.5 Million to South Dakota Health Care Provider
United States v. Gerald Lloyd Larson (District of South Dakota)
Gerald Larson was convicted of embezzling funds from his employer, a South Dakota health care provider. During the course of his scheme, he embezzled almost $5 million. Shortly after his conviction in January 2015, the U.S. Attorney for the District of South Dakota requested a transfer of approximately $4.5 million in forfeited assets to the Clerk of Court to compensate the victim.
Priceless Artifact Returned to Harvard
United States v. One Qing Dynasty Jadeite Lobed Censer & Cover (District of Massachusetts)
In 1979, an 18th Century Qing Dynasty jade incense holder was stolen from the Harvard Art Museums. In 2009, the artifact resurfaced at a Hong Kong auction house, which ran a search in the Art Loss Register database and discovered that the jade censer being offered for sale matched the censer stolen from Harvard. The Art Loss Register then notified U.S. Immigration and Customs Enforcement officials of the censer’s reappearance. Thereafter, the U.S. Attorney’s Office commenced a civil forfeiture action and obtained a civil warrant to seize the artifact. After successful civil proceedings, the United States returned the stolen artifact to the Harvard Art Museums in January 2014, over 30 years after the original theft.
MAN CHARGED WITH MURDERING, DISMEMBERING AND DUMPING HIS GIRLFRIENDS BODY IN JUNGLE
FROM: U.S. JUSTICE DEPARTMENT
Friday, April 17, 2015
Retired Marine Charged with Murdering His Girlfriend, Dismembering Her Body, and Dumping Her Remains in the Panamanian Jungle
Brian Karl Brimager, 37, prior boyfriend of murdered Los Angeles woman Yvonne Baldelli, was indicted by a federal grand jury in San Diego, California, today on first degree murder charges. Brimager was arraigned in court on the superseding indictment and pleaded not guilty.
Brimager has been in U.S. custody since June 2013 on charges of obstruction of justice, giving false statements to a federal officer and falsifying records all related to the same murder investigation.
According to the indictment in September 2011, Brimager and Baldelli moved together from Los Angeles, California, to the archipelago of Bocas del Toro, Panama. They rented a room in a small five-unit hostel on Isla Carenero, a small island near Bocas reachable only by boat. Almost immediately upon arrival Brimager began emailing another girlfriend, the mother of his young daughter. In these emails, Brimager discussed plans to move back to California to live with this other girlfriend and help raise their daughter. The emails did not mention Baldelli.
As revealed in the charging document, at the same time he was emailing the other girlfriend, Brimager began physically abusing Baldelli. Among other damage, these beatings caused bruises around Baldelli’s eyes and on her arms. The indictment alleges that around Nov. 26, 2011, Brimager murdered Baldelli, dismembered her body and disposed of her body parts in a remote jungle area on Isla Carenero. Following her murder, Brimager engaged in an elaborate scheme to cover up the crime. This scheme included destroying evidence, giving false information to law enforcement and sending a series of emails purportedly from Baldelli in order to make it appear to her friends and family that she was still alive.
According to the indictment, Brimager created a cover story to explain Baldelli’s whereabouts and, in the days and months that followed, engaged in a series of obstructive acts designed to back up his story. For example, Brimager, using Baldelli’s laptop, sent emails to Baldelli’s family and friends from her personal email account, in which he purported to be Baldelli. These emails, among other things, falsely claimed that Baldelli was alive and living in Costa Rica with another man. To corroborate this story, Brimager, after murdering Baldelli, withdrew money from her bank accounts at an ATM to make it appear that she was on her way to Costa Rica. He further attempted to substantiate his cover story by making another withdrawal from Baldelli’s bank accounts when he travelled through Costa Rica on his way back to the U.S.
The indictment also alleges that Brimager attempted to conceal his crime by disposing of a bloody mattress involved in Badelli’s murder in the ocean. According to the indictment, within a few hours of murdering Baldelli and prior to dumping the mattress in the ocean, Brimager conducted two internet searches on Baldelli’s computer, one for “washing mattress” and a second for “washing mattress blood stain.”
The indictment also charges Brimager with making materially false statements to the FBI during an interview on March 21, 2012. The indictment alleges that Brimager falsely stated that Baldelli took her white Sony VAIO laptop with her when she left Panama, when in fact, the laptop was found in Brimager’s possession on March 21, 2012, months after Baldelli’s murder.
Baldelli’s skeletal remains were not found in the jungle until almost two years after her murder.
The case was prosecuted by Assistant U.S. Attorneys W. Mark Conover and Shane P. Harrigan.
Friday, April 17, 2015
Retired Marine Charged with Murdering His Girlfriend, Dismembering Her Body, and Dumping Her Remains in the Panamanian Jungle
Brian Karl Brimager, 37, prior boyfriend of murdered Los Angeles woman Yvonne Baldelli, was indicted by a federal grand jury in San Diego, California, today on first degree murder charges. Brimager was arraigned in court on the superseding indictment and pleaded not guilty.
Brimager has been in U.S. custody since June 2013 on charges of obstruction of justice, giving false statements to a federal officer and falsifying records all related to the same murder investigation.
According to the indictment in September 2011, Brimager and Baldelli moved together from Los Angeles, California, to the archipelago of Bocas del Toro, Panama. They rented a room in a small five-unit hostel on Isla Carenero, a small island near Bocas reachable only by boat. Almost immediately upon arrival Brimager began emailing another girlfriend, the mother of his young daughter. In these emails, Brimager discussed plans to move back to California to live with this other girlfriend and help raise their daughter. The emails did not mention Baldelli.
As revealed in the charging document, at the same time he was emailing the other girlfriend, Brimager began physically abusing Baldelli. Among other damage, these beatings caused bruises around Baldelli’s eyes and on her arms. The indictment alleges that around Nov. 26, 2011, Brimager murdered Baldelli, dismembered her body and disposed of her body parts in a remote jungle area on Isla Carenero. Following her murder, Brimager engaged in an elaborate scheme to cover up the crime. This scheme included destroying evidence, giving false information to law enforcement and sending a series of emails purportedly from Baldelli in order to make it appear to her friends and family that she was still alive.
According to the indictment, Brimager created a cover story to explain Baldelli’s whereabouts and, in the days and months that followed, engaged in a series of obstructive acts designed to back up his story. For example, Brimager, using Baldelli’s laptop, sent emails to Baldelli’s family and friends from her personal email account, in which he purported to be Baldelli. These emails, among other things, falsely claimed that Baldelli was alive and living in Costa Rica with another man. To corroborate this story, Brimager, after murdering Baldelli, withdrew money from her bank accounts at an ATM to make it appear that she was on her way to Costa Rica. He further attempted to substantiate his cover story by making another withdrawal from Baldelli’s bank accounts when he travelled through Costa Rica on his way back to the U.S.
The indictment also alleges that Brimager attempted to conceal his crime by disposing of a bloody mattress involved in Badelli’s murder in the ocean. According to the indictment, within a few hours of murdering Baldelli and prior to dumping the mattress in the ocean, Brimager conducted two internet searches on Baldelli’s computer, one for “washing mattress” and a second for “washing mattress blood stain.”
The indictment also charges Brimager with making materially false statements to the FBI during an interview on March 21, 2012. The indictment alleges that Brimager falsely stated that Baldelli took her white Sony VAIO laptop with her when she left Panama, when in fact, the laptop was found in Brimager’s possession on March 21, 2012, months after Baldelli’s murder.
Baldelli’s skeletal remains were not found in the jungle until almost two years after her murder.
The case was prosecuted by Assistant U.S. Attorneys W. Mark Conover and Shane P. Harrigan.
Wednesday, April 22, 2015
7 FACED INDICTMENT IN ALLEGED TAX FRAUD SCHEME
FROM: U.S. JUSTICE DEPARTMENT
Friday, April 10, 2015
Seven Louisiana Residents Indicted in Tax Fraud Scheme
Seven Tangipahoa Parish, Louisiana, residents were indicted today on charges of conspiracy to defraud the United States, theft of public money, mail fraud, aggravated identity theft and conspiracy to commit money laundering, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana. According to the indictment, the defendants conspired to file false income tax returns using stolen identities and then launder the resulting fraudulent tax refunds.
The indictment charges Corey Lewis aka Coco, 37, Angela Chaney, 43, Cedrick Mitchell aka Skeet, 39, Craig Lewis, 40, Brad Lewis aka Bird, 32, Thaddeus Richardson, 49, and Martin Jackson Sr., 48, with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud and conspiracy to commit theft of public money. In addition, Corey Lewis, Chaney, Richardson and Jackson Sr. were charged with various counts of theft of public money. Chaney was also charged with six counts of mail fraud and five counts of aggravated identity theft. Corey Lewis was additionally charged with three counts of aggravated identity theft.
According to the allegations in the indictment, the defendants used individuals’ names and social security numbers in order to prepare false tax returns that claimed large tax refunds. The refund checks were mailed to addresses in Louisiana, including to post office boxes that were opened by members of the conspiracy. Once the tax refund checks were received, members of the conspiracy falsely endorsed the checks and cashed them. Corey Lewis, Chaney and Mitchell deposited fraudulently obtained U.S. Treasury checks into bank accounts under their control. Richardson and Jackson Sr. deposited checks into their business accounts, then provided some of the proceeds to their co-conspirators and kept the remaining proceeds for themselves.
If convicted, the defendants each face a statutory maximum sentence of 20 years in prison for each mail fraud count and each money laundering conspiracy charge, a statutory maximum sentence of 10 years in prison for each theft of public money count, a statutory maximum sentence of five years in prison for each conspiracy count, and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft. The defendants also face potential fines, forfeiture and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Tuesday, April 21, 2015
QUADRUPLE HOMICIDE PERSON OF INTEREST STILL AT LARGE AFTER ONE YEAR
FROM: U.S. MARSHALS SERVICE
One Year Anniversary of Quadruple Homicide in Petersburg; Person of Interest Still at Large
Richmond, VA – U.S. Marshals are again releasing the following information in the fugitive hunt for Alexander Rosevelt Hill, Jr. a/k/a “Real Deal”, wanted in the City of Petersburg (VA) for Violation of a Protective Order. He is a person of interest in the deaths of four people, including a small child, in Petersburg, VA in the early morning hours on April 19, 2014, a day before Easter.
U.S. Marshals and Petersburg Police Detectives confirmed that Alexander Hill traveled to Roanoke Rapids, NC by taxi just after midnight on Easter Sunday 2014. Later that morning, Hill paid a man to drive him to the Amtrak Station in Rocky Mount, NC. Since then Hill has fallen off law enforcement’s radar.
Hill has ties to Virginia, Mississippi, Arizona, and Texas. Tips have been received indicating that he may have fled to Georgia, Alabama, Louisiana, Florida, Maryland, California and New York City. He has brown eyes, but also wears hazel contacts which give him a very distinct look. Hill has an infatuation with sex chat lines and a history of meeting older and considerably younger women whom he can control easily. He could be working any under-the-table paying job such as construction or landscaping.
“He could be anywhere in the U.S. at this point in time. We are still actively seeking him and will continue to search until he is apprehended. We are pleading with the public to help us in anyway possible,” said U.S. Marshal Robert Mathieson.
Anyone that may have had contact with or seen Hill is asked to contact the U.S. Marshals at 1-877-WANTED-2 (1-877-926-8332). The U.S. Marshals Service is offering a $10,000 in total is being offered for information leading to the arrest of Hill. Tipsters may remain anonymous.
The USMS Regional Fugitive Task Force in Richmond consists of investigators for the U.S. Marshals Service, Virginia State Police, Virginia Department of Corrections, U.S. Immigration and Customs Enforcement, ATF, and the Richmond, Chesterfield, Petersburg and Hopewell Police Departments, as well as the Chesterfield Sheriff’s Office.
One Year Anniversary of Quadruple Homicide in Petersburg; Person of Interest Still at Large
Richmond, VA – U.S. Marshals are again releasing the following information in the fugitive hunt for Alexander Rosevelt Hill, Jr. a/k/a “Real Deal”, wanted in the City of Petersburg (VA) for Violation of a Protective Order. He is a person of interest in the deaths of four people, including a small child, in Petersburg, VA in the early morning hours on April 19, 2014, a day before Easter.
U.S. Marshals and Petersburg Police Detectives confirmed that Alexander Hill traveled to Roanoke Rapids, NC by taxi just after midnight on Easter Sunday 2014. Later that morning, Hill paid a man to drive him to the Amtrak Station in Rocky Mount, NC. Since then Hill has fallen off law enforcement’s radar.
Hill has ties to Virginia, Mississippi, Arizona, and Texas. Tips have been received indicating that he may have fled to Georgia, Alabama, Louisiana, Florida, Maryland, California and New York City. He has brown eyes, but also wears hazel contacts which give him a very distinct look. Hill has an infatuation with sex chat lines and a history of meeting older and considerably younger women whom he can control easily. He could be working any under-the-table paying job such as construction or landscaping.
“He could be anywhere in the U.S. at this point in time. We are still actively seeking him and will continue to search until he is apprehended. We are pleading with the public to help us in anyway possible,” said U.S. Marshal Robert Mathieson.
Anyone that may have had contact with or seen Hill is asked to contact the U.S. Marshals at 1-877-WANTED-2 (1-877-926-8332). The U.S. Marshals Service is offering a $10,000 in total is being offered for information leading to the arrest of Hill. Tipsters may remain anonymous.
The USMS Regional Fugitive Task Force in Richmond consists of investigators for the U.S. Marshals Service, Virginia State Police, Virginia Department of Corrections, U.S. Immigration and Customs Enforcement, ATF, and the Richmond, Chesterfield, Petersburg and Hopewell Police Departments, as well as the Chesterfield Sheriff’s Office.
Monday, April 20, 2015
INMATE SENTENCED TO LIFE N PRISON FOR MURDERING ANOTHER PRISONER
FROM: U.S. JUSTICE DEPARTMENT
Monday, April 13, 2015
Federal Inmate Sentenced to Life in Prison for Murder of Fellow Prisoner
Patrick Andrews, 34, formerly of Washington, D.C., pleaded guilty to one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of fellow inmate Jesse Harris. U.S. District Judge Irene M. Keeley of the Northern District of West Virginia sentenced Andrews to life in prison on both counts.
According to his plea agreement, Andrews and fellow inmate, Kevin Bellinger, stabbed Harris to death with homemade knives in an orchestrated attack. According to evidence introduced during Bellinger’s June 2014 trial in this case, while a group of inmates were being moved from the recreation yard back to their cells, Andrews and Bellinger confronted Harris and repeatedly stabbed him. In less than a minute, a correctional officer approached and the attackers fled. Officers apprehended Andrews after reviewing surveillance footage, which showed Andrews and Bellinger engaged in a verbal confrontation with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them. Harris ultimately died from multiple stab wounds sustained during the attack.
At the time of the murder, Andrews was serving a sentence of 35 years to life in prison for two murders that took place in 1997 and 2000, and Bellinger was serving a sentence of 15 years to life for an assault with intent to kill that took place in 2000.
Bellinger was convicted in this case by a federal jury on June 16, 2014, of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility. On Oct. 8, 2014, he was sentenced to life in prison.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Trial Attorney Richard Burns from the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Andrew Cogar of the Northern District of West Virginia.
Sunday, April 19, 2015
DIVERTING CAMPAIGN MONEY TO PERSONAL ACCOUNT NETS CAMPAIGN TREASURER 16 MONTH PRISON SENTENCE
FROM: U.S. JUSTICE DEPARTMENT
Monday, April 13, 2015
Former Campaign Treasurer Sentenced for Tax Evasion and Filing False Campaign Reports Related to Diverting Money from Campaign's Bank Account
Defendant Worked on Unsuccessful Campaign of Washington, D.C., Council Candidate
A 33-year-old Washington, D.C., man was sentenced today to serve 16 months in prison for evading income taxes and violating campaign finance laws while working as the treasurer and custodian of records for a District of Columbia political campaign.
The sentence was announced by Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Chief Cathy L. Lanier of the Metropolitan Police Department and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C., Field Office.
Hakim J. Sutton pleaded guilty on Oct. 23, 2014, in the U.S. District Court for the District of Columbia to one count of income tax evasion, a federal offense, and one count of knowingly filing a false and misleading campaign finance report, a violation of District of Columbia law. He was sentenced by the Honorable U.S. District Judge Richard J. Leon. Under the plea agreement, Sutton is required to pay full restitution of $18,231 in taxes and interest to the IRS. Sutton was also ordered to three years of supervised release following his 16 month prison sentence.
According to a statement of offense, signed by the defendant as well as the government, Sutton was the principal owner of the Sutton Group, which performed political consulting services in the District of Columbia and elsewhere. In 2011 and 2012, Sutton served as the treasurer and custodian of records for the campaign of Michael A. Brown, a candidate seeking re-election to an at-large seat on the Council of the District of Columbia. Brown ultimately lost in the November 2012 election.
Between July 2011 and May 2012, Sutton diverted approximately $115,250 from the campaign bank account to himself by depositing the funds drawn from the campaign bank account into his own personal bank accounts, and converting funds drawn from the campaign bank account to cash. All told, Sutton wrote 36 checks payable to himself.
According to the statement of offense, some, but not all, of the money that Sutton diverted was compensation for Sutton’s work on the campaign. However, Sutton failed to file income tax returns for calendar years 2011 and 2012. He owes a total of $17,180 in federal income taxes for those years, along with an additional $1,051 in interest.
Sutton also omitted references to the checks that he had written to himself in a series of six reports he filed in 2011 and 2012 with the District of Columbia Office of Campaign Finance.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Cohen commended the Metropolitan Police Department and the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney David A. Last and former Assistant U.S. Attorney Bryan Seeley of the District of Columbia and Trial Attorney Kenneth C. Vert of the Tax Division, who prosecuted the case. Ciraolo and Cohen thanked Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section, Legal Assistant Angela Lawrence, Paralegal Specialist Tasha Harris, former Paralegal Specialist Nicole Wattelet and Criminal Investigator John Marsh, all of the U.S. Attorney’s Office for the District of Columbia, for their assistance.
Friday, April 17, 2015
TWO SENTENCED FOR ROLES IN STOLEN IDENTITY TAX REFUND FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, April 14, 2015
Two Georgia Men Sentenced to Prison for Stolen Identity Tax Refund Fraud
Obi Emelogu, 51, of Woodstock, Georgia, was sentenced to serve 45 months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $719,872. Oloh Samuel, 33, of Acworth, Georgia, was sentenced to serve 18 months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $146,179. On Oct. 10, 2014, Emelogu pleaded guilty to conspiracy to defraud the United States and aggravated identity theft. On Dec. 2, 2014, Samuel pleaded guilty to conspiracy to defraud the United States.
“One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and seek to incarcerate the offenders who view the Federal Treasury as their own personal bank account.”
“These defendants brazenly stole money from the American taxpayers with little regard for whom they affect,” said Acting U.S. Attorney Horn. “We have committed resources to combat this kind of theft, and will aggressively pursue and prosecute those who believe they can file false tax returns.”
“IRS-Criminal Investigation will remain proactive in the investigation of individuals and groups especially return preparers, who engage in stealing the identities of innocent people,” said Special Agent in Charge Veronica F. Hyman-Pillot of Internal Revenue Service-Criminal Investigation (IRS-CI). “We will continue to utilize every tool available to investigate those who conspire with each other to victimize members of our community for their own personal gain.”
“These sentences send a clear message that the federal government will aggressively investigate and prosecute the crime of identity theft involving stolen tax refunds,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “While criminals may find it easy to steal someone’s identity using their personal information, they need to know that the punishment for committing this crime will be commensurate with the devastating toll identity theft takes on its victims.”
According to court documents other information presented in court, Samuel and Emelogu participated in a scheme using stolen identities to file fraudulent federal income tax returns, including tax returns filed using stolen identities. The scheme involved businesses located in Georgia, including S & O Accounting Services LLC, which was controlled by Samuel, and Xpress Auto Parts & Towing LLC and O.B. Consulting & Tax Services LLC., which were controlled by Emelogu. In 2012, Emelogu filed hundreds of false federal income tax returns with the IRS that included fraudulent claims for tax refunds directed to be paid into his business bank accounts and into a bank account controlled by Samuel. Electronic evidence established that additional false tax returns were also filed from overseas and the refunds were deposited into Samuel’s bank account. At sentencing, the court found that the intended loss amount attributable to Emelogu was more than $400,000 and that the intended loss amount attributable to Samuel was more than $1 million.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Horn commended the special agents of IRS-CI and the TIGTA, who investigated the case, and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia and Trial Attorney Jason H. Poole of the Tax Division, who prosecuted the case.
Thursday, April 16, 2015
FINAL TWO SENTENCED FOR ROLES IN KIDNAPPING/MURDER OF DEAL SPECIAL AGENT JAMES WATSON
FROM: U.S. JUSTICE DEPARTMENT
Monday, April 13, 2015
Final Two Defendants Sentenced to 440 and 348 Months in Prison for the Kidnapping and Murder of DEA Special Agent James “Terry” Watson
Two Colombian nationals were sentenced to decades in U.S. federal prison today for their roles in the kidnapping and murder of former Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogotá, Colombia, on June 20, 2013.
Attorney General Eric Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Bill A. Miller, Director, U.S. State Department’s Diplomatic Security Service (DSS) made the announcement.
“With these sentencings, all seven defendants involved in the kidnapping and murder of Special Agent Terry Watson have been found, prosecuted, and brought to justice,” said Attorney General Holder. “Special Agent Watson was a courageous patriot, a principled law enforcement agent, and a proud defender of the rule of law. Our nation owes him and his loved ones a debt we can never repay. And although our prosecution of his heinous attackers has come to its rightful close, the Department of Justice will never rest in our efforts to honor Special Agent Watson’s life of service and sacrifice by upholding the values that he served to protect.”
“DEA is grateful that the final two defendants connected to Terry Watson’s murder faced justice in a U.S. court of law for their heinous crime," said Administrator Leonhart. “Terry will be remembered for his bravery, dedication and loyalty to our agency’s mission, and his presence is missed every day by the men and women of DEA. Throughout this ordeal, the Watson family has remained in our thoughts and prayers, and we will never forget their sacrifice.”
Édgar Javier Bello Murillo, 28, and Omar Fabián Valdes Gualtero, 28, were sentenced today to 440 months in prison and 348 months in prison, respectively, by U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia. Both pleaded guilty to second degree murder and conspiracy to kidnap an internationally protected person on Dec. 19, 2014.
In the statements of facts filed with their plea agreements, Valdes Gualtero and Bello Murillo admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in which victims were lured into taxi cabs, kidnapped and then robbed. Both admitted that, on the evening of June 20, 2013, they were a part of a six-person robbery crew that targeted Special Agent Watson. One of the members of the crew picked up Special Agent Watson in his taxi, while another drove a second taxi carrying the assailants. Bello Murillo admitted that he entered the taxi in which Special Agent Watson was riding and stabbed him multiple times. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
In total, seven defendants were arrested and extradited from Colombia to the United States to face charges in connection with Special Agent Watson’s murder and the subsequent attempt to cover up the crime. Six defendants pleaded guilty for their respective roles in the kidnapping and murder: Julio Estiven Gracia Ramírez, 32; Héctor Leonardo López, 34; Andrés Álvaro Oviedo García, 22; Edwin Gerardo Figueroa Sepúlveda, 40; Valdes Gualtero; and Bello Murillo. On Dec. 12, 2014, Gracia Ramírez was sentenced to 27 years in prison, López was sentenced to 25 years in prison and Oviedo García was sentenced to 20 years in prison. On Feb. 18, 2015, Figueroa Sepúlveda was sentenced to 30 years in prison. A seventh defendant, Wilson Daniel Peralta-Bocachica, 31, pleaded guilty to obstruction of justice for cleaning the taxi cab in which the attack occurred before turning it in to the Colombian National Police. On Feb. 18, 2015, Peralta-Bocachica was sentenced to 40 months in prison.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Criminal Division’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
Wednesday, April 15, 2015
Saturday, April 11, 2015
ASSET MANAGER PLEADS GUILTY FOR ROLE IN HELPING U.S. TAXPAYERS FILE FALSE TAX RETURNS
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, March 31, 2015
Swiss Asset Manager Pleads Guilty in Federal Court to Conspiring with U.S. Taxpayers to Evade Federal Income Taxes and File False Tax Returns
A Swiss citizen and former asset manager at a Swiss asset management firm pleaded guilty to conspiring with U.S. taxpayer-clients and others to help U.S. taxpayers hide millions of dollars in offshore accounts from the Internal Revenue Service (IRS), and to evade U.S. taxes on the income earned in those accounts, the Justice Department announced.
Peter Amrein, 53, a Swiss citizen, pleaded guilty before U.S. District Judge Sidney H. Stein of the Southern District of New York pursuant to a plea agreement to one count of conspiracy to defraud the IRS, to evade federal income taxes and to file false federal income tax returns. Amrein faces a maximum sentence of five years in prison at his July 1 sentencing before Judge Stein.
“Peter Amrein’s guilty plea today is another example of individuals being held culpable, in addition to institutions, for their criminal violations of U.S. tax laws,” said U.S. Attorney Preet Bharara of the Southern District of New York. “Regardless of the elaborate scheme you might employ, we will use all of our investigative powers to ensure that all citizens pay their fair share, and that those who assist them in evading our laws are also held responsible.”
According to the allegations in the superseding Information and the prior indictment, as well as statements made during the plea proceeding and other documents filed in federal court in Manhattan, New York:
Amrein worked as a client advisor at a Swiss bank (Swiss Bank No. 3) and, later, as an asset manager at a Swiss asset management firm (the Swiss Asset Management Firm). In those roles, between 1998 and 2012, Amrein helped U.S. taxpayers evade taxes and hide millions of dollars in undeclared accounts at various Swiss banks, including Wegelin & Co., which was charged and pleaded guilty in the Southern District of New York for its conduct in conspiring with U.S. taxpayers to evade taxes. Amrein, among other things, worked with an attorney based in Zurich, to establish sham foundations, which were organized under the laws of non-U.S. countries such as Liechtenstein, so that the undeclared assets of certain of Amrein’s U.S. taxpayer-clients could be maintained in the names of these foreign foundations rather than in the clients’ own names. Amrein did so in order to help his clients conceal their ownership of these undeclared accounts from the IRS.
In 2008, it became publicly known that UBS AG (UBS) was being investigated by U.S. law enforcement for helping U.S. taxpayers maintain undeclared accounts in Switzerland. Because of the investigation of UBS, one of the Swiss banks where Amrein had opened undeclared accounts for U.S. taxpayers (Swiss Bank No. 4) informed Amrein that it was going to close these undeclared accounts. In order to assist his clients in continuing to maintain undeclared accounts, Amrein searched for other banks in Switzerland that, despite the public investigation of UBS, were still willing to open undeclared accounts for U.S. taxpayers. Amrein found such a bank (Swiss Bank No. 1). Thereafter, Amrein opened undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 1 in the name of sham foundations, and transferred the clients’ undeclared assets from Swiss Bank No. 4 to these accounts at Swiss Bank No. 1.
For some of these clients, Amrein, with the assistance of others, helped send funds back to the United States and to other foreign jurisdictions in ways that were designed to ensure that U.S. authorities would not discover the existence of the clients’ undeclared accounts. For instance, Amrein instructed a client advisor at Swiss Bank No. 1 (the Swiss Bank No. 1 Client Advisor) to empty one of the accounts by sending checks in amounts smaller than $9,900 to the beneficial owner of the account, i.e., the U.S. taxpayer. On another occasion, Amrein instructed the Swiss Bank No. 1 Client Advisor to transfer the balance of one of the accounts, which was then valued at more than $2.4 million, to another account controlled by the U.S. taxpayer in Belize City, Belize. Moreover, as late as 2011, Amrein continued to look for other Swiss banks that were still willing to open undeclared accounts for U.S. taxpayers. For example, in June 2011, Amrein met with a client advisor at a Swiss bank (Swiss Bank No. 2), to discuss opening undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 2.
Mr. Bharara praised the outstanding investigative work of the IRS-Criminal Investigations. He also thanked the Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being handled by the U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul, Jason H. Cowley, and Daniel B. Tehrani are in charge of the prosecution.
Tuesday, March 31, 2015
Swiss Asset Manager Pleads Guilty in Federal Court to Conspiring with U.S. Taxpayers to Evade Federal Income Taxes and File False Tax Returns
A Swiss citizen and former asset manager at a Swiss asset management firm pleaded guilty to conspiring with U.S. taxpayer-clients and others to help U.S. taxpayers hide millions of dollars in offshore accounts from the Internal Revenue Service (IRS), and to evade U.S. taxes on the income earned in those accounts, the Justice Department announced.
Peter Amrein, 53, a Swiss citizen, pleaded guilty before U.S. District Judge Sidney H. Stein of the Southern District of New York pursuant to a plea agreement to one count of conspiracy to defraud the IRS, to evade federal income taxes and to file false federal income tax returns. Amrein faces a maximum sentence of five years in prison at his July 1 sentencing before Judge Stein.
“Peter Amrein’s guilty plea today is another example of individuals being held culpable, in addition to institutions, for their criminal violations of U.S. tax laws,” said U.S. Attorney Preet Bharara of the Southern District of New York. “Regardless of the elaborate scheme you might employ, we will use all of our investigative powers to ensure that all citizens pay their fair share, and that those who assist them in evading our laws are also held responsible.”
According to the allegations in the superseding Information and the prior indictment, as well as statements made during the plea proceeding and other documents filed in federal court in Manhattan, New York:
Amrein worked as a client advisor at a Swiss bank (Swiss Bank No. 3) and, later, as an asset manager at a Swiss asset management firm (the Swiss Asset Management Firm). In those roles, between 1998 and 2012, Amrein helped U.S. taxpayers evade taxes and hide millions of dollars in undeclared accounts at various Swiss banks, including Wegelin & Co., which was charged and pleaded guilty in the Southern District of New York for its conduct in conspiring with U.S. taxpayers to evade taxes. Amrein, among other things, worked with an attorney based in Zurich, to establish sham foundations, which were organized under the laws of non-U.S. countries such as Liechtenstein, so that the undeclared assets of certain of Amrein’s U.S. taxpayer-clients could be maintained in the names of these foreign foundations rather than in the clients’ own names. Amrein did so in order to help his clients conceal their ownership of these undeclared accounts from the IRS.
In 2008, it became publicly known that UBS AG (UBS) was being investigated by U.S. law enforcement for helping U.S. taxpayers maintain undeclared accounts in Switzerland. Because of the investigation of UBS, one of the Swiss banks where Amrein had opened undeclared accounts for U.S. taxpayers (Swiss Bank No. 4) informed Amrein that it was going to close these undeclared accounts. In order to assist his clients in continuing to maintain undeclared accounts, Amrein searched for other banks in Switzerland that, despite the public investigation of UBS, were still willing to open undeclared accounts for U.S. taxpayers. Amrein found such a bank (Swiss Bank No. 1). Thereafter, Amrein opened undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 1 in the name of sham foundations, and transferred the clients’ undeclared assets from Swiss Bank No. 4 to these accounts at Swiss Bank No. 1.
For some of these clients, Amrein, with the assistance of others, helped send funds back to the United States and to other foreign jurisdictions in ways that were designed to ensure that U.S. authorities would not discover the existence of the clients’ undeclared accounts. For instance, Amrein instructed a client advisor at Swiss Bank No. 1 (the Swiss Bank No. 1 Client Advisor) to empty one of the accounts by sending checks in amounts smaller than $9,900 to the beneficial owner of the account, i.e., the U.S. taxpayer. On another occasion, Amrein instructed the Swiss Bank No. 1 Client Advisor to transfer the balance of one of the accounts, which was then valued at more than $2.4 million, to another account controlled by the U.S. taxpayer in Belize City, Belize. Moreover, as late as 2011, Amrein continued to look for other Swiss banks that were still willing to open undeclared accounts for U.S. taxpayers. For example, in June 2011, Amrein met with a client advisor at a Swiss bank (Swiss Bank No. 2), to discuss opening undeclared accounts for U.S. taxpayer-clients at Swiss Bank No. 2.
Mr. Bharara praised the outstanding investigative work of the IRS-Criminal Investigations. He also thanked the Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being handled by the U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul, Jason H. Cowley, and Daniel B. Tehrani are in charge of the prosecution.
Friday, April 10, 2015
NY CITY TAX PREPARER INDICTED FOR FILING FALSE PERSONAL FEDERAL INCOME TAX RETURNS
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, March 31, 2015
New York City Tax Preparer Charged with Preparing False Tax Returns
A federal grand jury in the Eastern District of New York returned an indictment yesterday against a Staten Island, New York, tax return preparer and business owner, charging him with 31 counts of aiding and assisting in the preparation of false federal income tax returns and three counts of filing false personal federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the allegations in the indictment, Alabi Gbangbala was the operator of Broadfield, a tax return preparation business located in Staten Island. For tax years 2008 and 2009, Gbangbala allegedly prepared false individual income tax returns for Broadfield clients by, among other things, failing to report accurate exemptions, falsifying business receipts and losses on Schedules C and inflating or fabricating charitable contributions and unreimbursed employee expenses. Gbangbala also filed false individual income tax returns on behalf of himself for tax years 2008 through 2010, in which he failed to disclose his total income for each calendar year.
If convicted, Gbangbala faces a statutory maximum sentence of three years in prison and a fine of $250,000 on each count.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Christopher O’Donnell and Mark McDonald of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of New York for their assistance.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding.
Thursday, April 9, 2015
MAN PLEADS GUILTY FOR ROLE IN INTERSTATE PROSTITUTION ENTERPRISE
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, April 8, 2015
Leader of Sex Trafficking Ring Pleads Guilty
The leader of a sex trafficking ring pleaded guilty to charges stemming from his interstate prostitution enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division.
Jeremie J. Tate, 33, of Zachary, Louisiana, pleaded guilty this morning before U.S. District Judge Shelly D. Dick of the Middle District of Louisiana to conspiracy to unlawfully use interstate facilities in aid of racketeering, two counts of use of interstate facilities in aid of racketeering and enticing another to travel interstate for prostitution. After evading arrest for several days, Tate was apprehended in Houston, Texas, on April 25, 2014, by the U.S. Marshals Service Fugitive Task Force and the FBI’s New Orleans Division. Tate has remained in federal custody since his arrest.
According to the plea agreement filed in the case, from November 2012 through November 2013, Tate operated a prostitution business based in Baton Rouge involving multiple prostitutes, including a minor. Tate and others, used telephones and the Internet to arrange online advertising, schedule prostitution sessions and recruit other prostitutes. Tate admitted that he took most of the proceeds from the prostitution business and distributed controlled substances to his prostitutes and others to manipulate and intimidate them. In his plea agreement, Tate specifically admitted that he enticed a prostitute to travel from Baton Rouge to Las Vegas in December 2012 to engage in prostitution for him.
Three other individuals have already pleaded guilty and are awaiting sentencing for their roles in this sex trafficking ring.
The case is being investigated by the FBI’s New Orleans Division, Louisiana Attorney General’s Office, Louisiana State Police and East Baton Rouge, Louisiana, Sheriff’s Office, with assistance from the Baton Rouge, Louisiana, Police Department’s Narcotics Division, U.S. Marshals Service Fugitive Task Force and other law enforcement agencies. The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.
Friday, April 3, 2015
MAN PLEADS GUILTY TO CONSPIRACY IN FALSE CLAIMS FOR TAX REFUNDS CASE
FROM: U.S. JUSTICE DEPARTMENT
Monday, March 30, 2015
North Carolina Man Pleads Guilty to Conspiracy for Filing False Claims for Tax Refunds
A Raleigh, North Carolina, man pleaded guilty today in the U.S. District Court in Raleigh to conspiring to file false claims for tax refunds, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.
According to court documents and statements in court, from 2010 through at least February 2014, Rodney Wright and others conspired to prepare and file false income tax returns with the Internal Revenue Service (IRS). Wright obtained the personal identification information of taxpayers and used this information to file false federal income tax returns, which included fictitious information in order to generate false and fraudulent claims for tax refunds. Wright and others directed the IRS to deposit tax refunds into bank accounts of the taxpayers listed on the tax returns or into accounts controlled by Wright and others involved in the conspiracy.
Wright faces a statutory maximum sentence of 10 years in prison and a $250,000 fine for the conspiracy charge. He is scheduled to be sentenced on June 29.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Walker commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Susan Menzer of the Eastern District of North Carolina and Trial Attorneys Lauren Castaldi and Rebecca Perlmutter of the Tax Division, who are prosecuting the case.
Wednesday, April 1, 2015
DETROIT-AREA BUSINESSMEN PLEAD GUILTY IN CASE INVOLVING FAILURE TO REPORT INCOME
FROM: U.S. JUSTICE DEPARTMENT
Monday, March 23, 2015
Detroit-Area Business Owners Plead Guilty to Filing a False Tax Return
Two West Bloomfield, Michigan, residents and Detroit-area business owners pleaded guilty today in the U.S. District Court for the Eastern District of Michigan in Detroit to one count of filing a false federal income tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the court filings, Todd and Stephen Schlussel each filed a false 2008 tax return that failed to report a significant amount of income. The unreported income was from several Detroit-area businesses that they operated and controlled, including Phoenix Real Estate Company, Phoenix Preferred Properties LLC, Phoenix Office Plaza-II LLC, the Lumber Company and FS Investments LLC.
U.S. District Judge Arthur J. Tarnow scheduled sentencing for Sept. 28. Both face a statutory maximum sentence of three years in prison and a fine of up to $250,000.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and Trial Attorneys Mark McDonald and Christopher O’Donnell of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Michigan for their assistance on the case.
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