IRS EMPLOYEE, CORRECTIONS OFFICER, FDA EMPLOYEE, CHARGED IN MULTIMILLION DOLLAR TAX REFUND FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, January 16, 2015

FDA Employee, Former New York City Corrections Officer and Former IRS Employee Charged in Multimillion Dollar Tax Refund Conspiracy

Three New York residents were indicted in the Eastern District of New York for defrauding the U.S. government by filing false claims for millions in false tax refunds, the Justice Department and Internal Revenue Service (IRS) announced today.

Charged in a 20-count indictment are Rodney Chestnut, of Middle Island, New York, a retired New York City Department of Corrections officer; Clive Henry, a former IRS employee in the business of preparing tax returns and Nafeesah Hines, a former U.S. Food and Drug Administration (FDA) employee, both of  Jamaica, New York.  Chestnut and Henry were arrested on Jan. 15, and appeared in federal court in Brooklyn, New York.

The defendants are each charged with one count of conspiracy to defraud the United States, 11 counts of assisting preparation of false returns and four counts of filing false tax returns.  Hines and Chestnut are each charged with one additional count of filing false tax returns.  If convicted, the defendants each face a statutory maximum sentence of five years in prison for conspiracy and a statutory maximum sentence of three years in prison for each false return charged against them.  All of the defendants are also subject to fines and mandatory restitution, if convicted.

According to the indictment, between 2008 and 2012, Hines, Chestnut and Henry recruited clients to a scheme using fake IRS Forms 1099-OID (Original Issue Discount) claiming fictitious tax withholdings and were attached to tax returns that falsely claimed refunds of taxes that were never paid to the IRS.  Hines used an electronic system to transmit the false Forms 1099-OID to the IRS.  The false refund claims listed in the indictment total more than $3.4 million.

According to the indictment, the defendants collected fees based on a percentage the false refunds that they claimed as part of the scheme.  The indictment also charges the defendants with filing false income tax returns for themselves pursuant to the scheme.

In 2013, a federal court permanently barred Hines and Chestnut from promoting an alleged tax fraud scheme involving thousands of false tax returns and from preparing tax returns for anyone other than themselves.

The case was investigated by special agents of IRS-Criminal Investigation.  Trial attorneys Mark Kotila, Jeffrey McLellan and Erin Pulice of the Justice Department’s Tax Division are prosecuting the case.  An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.      

CORRECTIONS OFFICER MOONLIGHTED AS ARMED SECURITY FOR DRUG DEALS

FROM:  JUSTICE DEPARTMENT 
Tuesday, January 28, 2014
Former Corrections Officer Sentenced for His Role in Providing Armed Security for Drug Transactions

A former Puerto Rico Department of Corrections officer was sentenced today to serve 811 months in prison for his role in providing armed security for three drug transactions.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Carlos Cases of the FBI’s San Juan Field Office made the announcement.

Bernis Gonzalez Miranda, 27, was sentenced by U.S. District Judge Juan Perez Gimenez of the District of Puerto Rico.   He was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals, as part of the FBI undercover operation known as Guard Shack.

In April 2012, a federal jury in San Juan found Gonzalez Miranda guilty of three counts of conspiracy to possess with intent to distribute more than five kilograms of cocaine, three counts of attempting to possess with the intent to distribute more than five kilograms of cocaine and three counts of possessing a firearm in furtherance of a drug transaction.   According to the evidence presented in court, Gonzalez Miranda provided security for what he believed were illegal cocaine deals on June 15, July 2, and July 7, 2010.   In fact, the purported drug transactions were part of an undercover FBI operation.   On those days, the defendant’s actions included providing armed protection for the deals and escorting the buyer into and out of the transaction.

In return for the security he provided, Gonzalez Miranda received a cash payment of $2,000 for each transaction, and at sentencing he was ordered to forfeit the $6,000 he received.

The case was investigated by the FBI.   The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section.   The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.

CORRECTIONS OFFICER TO SERVE PRISON TERM FOR REPEATEDLY STRIKING INMATE

FROM:  JUSTICE DEPARTMENT 
Tuesday, January 14, 2014
Former Lorain County, Ohio, Corrections Officer Sentenced to Serve 18 Months in Prison for Repeatedly Striking Inmate

A former Lorain County, Ohio, corrections officer was sentenced today to serve 18 months in prison followed by two years of supervised release after previously pleading guilty to one count of deprivation of rights under color of law, announced Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division, U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Office.

Marlon Taylor, 47, of Vermilion, Ohio, was working as a corrections officer in Lorain County Jail on July 29, 2012, when he assaulted an inmate by striking him repeatedly, according to court documents.

These actions caused bodily injury to the inmate and deprived the inmate of the right to be free from cruel and unusual punishment, according to court documents.

"Uses of excessive force by corrections officers undermine our system of justice and the rule of law,” said Acting Assistant Attorney General Samuels.  “Today's sentence reflects that the Department of Justice will aggressively protect the constitutional rights of every American."

 “The vast majority of law enforcement officials do a great job,” said U.S. Attorney Dettelbach.  “When someone abuses the power and privileges of their office, however, they can and will be held accountable.”

“Marlon Taylor is not representative of the vast majority of the honorable men and women serving within the criminal justice system,” said Special Agent in Charge Anthony.  “Any allegation of abuse or excessive force involving law enforcement officers takes on a particular sense of urgency and will continue to be a priority for the FBI.”

This investigation has been conducted by the FBI’s Cleveland Office.  Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell and Trial Attorney Betsy Biffl prosecuted the case.

FORMER CORRECTIONS OFFICER PLEADS GUILTY TO CIVIL RIGHTS VIOLATION

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, December 18, 2013

Former S.C. Corrections Officer Pleads Guilty to Civil Rights Violation
Robin Smith, a former corrections officer at the Alvin S. Glenn Detention Center in Richland County, S.C., pleaded guilty today in federal court in Columbia, S.C., to violating the civil rights of a pre-trial detainee.

During his guilty plea, Smith admitted that on Feb. 11, 2012, while working as a corrections officer, he used unreasonable, unprovoked force against a restrained inmate with mental illness.  During the course of a routine search of the victim’s cell, Smith twisted the victim’s wrist and arm and kicked him in the upper body.  During the assault, the victim was lying on the floor of the cell with one hand cuffed.  The victim was not combative and did not pose a threat to Smith.

“The overwhelming majority of correctional officers dispatch their difficult duties with honor and professionalism,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “The Justice Department will aggressively prosecute those who cross the line to engage in acts of criminal misconduct.”          

“Every minute of every day, corrections officers across this state handle extraordinarily difficult situations in a way that protects the detainees, the institution and the public,” said U.S. Attorney Bill Nettles for the District of South Carolina.  “However, when a corrections officer’s conduct crosses the line between lawful use of force and an abuse of authority, we will take that case before the grand jury.”

U.S. Attorney Nettles thanked Sheriff Lott and the Richland County Sheriff’s Department for their commitment to the investigation, without which the prosecution would have been nearly impossible.  Today’s plea resulted from the investigative work of the Federal Bureau of Investigation and the Richland County Sheriff’s Office.  The case is being prosecuted by Trial Attorneys Jared Fishman and Nicholas Murphy for the Civil Rights Division, and First Assistant U.S. Attorney Beth Drake for the District of South Carolina.

CORRECTIONS OFFICER CHARGED WITH ASSAULTING AN INMATE

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, August 16, 2013
Former Lorain County, Ohio, Corrections Officer Charged for Assaulting an Inmate
Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels, U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach and Special Agent in Charge for the FBI Cleveland Field Office Stephen D. Anthony,  announced today that former Lorain County, Ohio corrections officer Marlon Taylor, 47, of Vermilion, Ohio, was charged in the U.S. Court for the Northern District of Ohio with one count of deprivation of rights under color of law.

The criminal information alleges that on July 29, 2012, Taylor, while working as a corrections officer in the Lorain County Jail, assaulted an inmate identified as Victim 1 by striking him repeatedly, causing bodily injury and depriving Victim 1 the right to be free from cruel and unusual punishment.

If convicted, Taylor faces a potential maximum sentence of 10 years in prison and a $250,000 fine.  A charge is not evidence of guilt and all defendants are presumed innocent until proven guilty.

The investigation has been conducted by the FBI Cleveland Field Office.   Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell, and, Trial Attorney Betsy Biffl of the Civil Rights Division, Criminal Section will prosecute the case.

FORMER CORRECTIONS OFFICER PLEADS GUILTY TO OBSTRUCTING JUSTICE

FROM:  U.S. DEPARTMENT OF JUSTICE 
Monday, July 8, 2013

Former Alabama Corrections Officer Pleads Guilty to Obstructing Justice in Federal Criminal Civil Rights Investigation of Beating Death of an Inmate
The Justice Department announced today that Joseph Sanders, 32, a former corrections officer of the Alabama Department of Corrections, pleaded guilty to obstructing justice in an investigation into the beating death of former inmate Rocrast Mack.

On Aug. 4, 2010, 24-year-old Rocrast Mack was beaten by several corrections officers at Ventress Correctional Facility in Clayton, Ala.  He was repeatedly struck by a baton in an office in the prison, and several minutes later he was assaulted again in the medical unit of the prison when an officer stomped on Mack’s head several times.  Mack died the following day in a Montgomery, Ala., hospital.  Following Mack’s death, Sanders lied to investigators from the Department of Corrections to cover up the fact that Mack was unjustly and brutally beaten.

Two weeks ago, on June 25, a federal jury convicted Michael Smith, a former lieutenant at Ventress, of civil rights and obstruction of justice violations regarding this incident.  Scottie Glenn, another former corrections officer at Ventress, pleaded guilty on Nov.18, 2011, to one count of violating the civil rights of Mack for his role in the incident and to one count of conspiring with other corrections officers to cover up the beatings.  Matthew Davidson, another former corrections officer, pleaded guilty on Jan. 15, 2013, to two civil rights violations and one count of conspiring with other officers to cover up the beatings.

Sentencing for all of the defendants is scheduled for Sept. 23, 2013.  Sanders faces a statutory maximum potential penalty of 20 years in prison.

“Mr. Sanders, by his statements, attempted to conceal that Rocrast Mack’s brutal death was unjustly caused by the corrections officers to whose care he had been entrusted,” said Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. “Such actions have no place in our corrections system and the Department of Justice will continue to vigorously prosecute those who commit and cover up such crimes.”

This case was investigated by the Mobile, Ala., Division of the FBI, in partnership with the Alabama Bureau of Investigation, and was prosecuted by Trial Attorney Patricia Sumner of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Jerusha Adams of the U.S. Attorney’s Office for the Middle District of Alabama.