Randallstown Man Sentenced to More Than Seven Years in Prison for Bankruptcy Fraud and Filing False Tax Returns

BALTIMORE—U.S. District Judge William D. Quarles, Jr. sentenced Ricardo O. Curry, II, age 43, of Randallstown, Maryland, today to 87 months in prison, followed by three years of supervised release, for assisting in the filing of false tax returns, bankruptcy fraud, falsifying bankruptcy records, and false testimony under oath at a bankruptcy proceeding. Judge Quarles also ordered Curry to pay restitution of $1,114,988.51 to the creditors in his bankruptcy case and $118,182 to the IRS. Curry was convicted by a federal jury on March 20, 2013, and has been detained since that time.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and U.S. Trustee Judy Robbins and the Baltimore Office of the United States Trustee Program, the Department of Justice component that supervises the administration of bankruptcy cases.
According to evidence presented at his three day trial, Curry worked for Peerless Real Estate Services Inc., a North Carolina corporation that oversaw the sale of property in North Carolina, including a development that contained more than 2,000 lots. Curry recruited at least 12 investors to purchase at least 23 lots in the development and he received referral fees based on these sales. In 2005, 2006, and 2007, respectively, Curry earned referral fees of $41,455, $43,200, and $330,546. Although Curry reported the income he received as a sales representative for a pharmaceutical company on his 2005, 2006, and 2007 tax returns, he failed to report these referral fees, totaling $415,201.
On March 12, 2009, Curry filed for Chapter 13 bankruptcy in the United States Bankruptcy Court for the District of Maryland. On April 21, 2009, Curry filed a Statement of Financial Affairs with the bankruptcy court, which reported the income he earned as a pharmaceutical sales representative for tax years 2005, 2006, and 2007 but failed to report the $415,201 he earned in referral fees from Peerless. Curry also failed to disclose his ownership interest in a home worth approximately $325,000. On July 28, 2009, Curry filed an Amended Statement of Financial Affairs, which again failed to disclose the $415,201 in referral fees and his ownership interest in the home. On October 20, 2009, Curry testified under oath at meeting of the creditors, falsely stating that all his assets were listed in his bankruptcy filing, when, in fact, Curry knew that he had not reported the referral fees, nor his home ownership. Ultimately, Curry never provided documents to the trustee overseeing his bankruptcy case regarding either the referral fee income or the home, and as a result, on April 12, 2010, Curry’s attempt to discharge his debts through bankruptcy was denied.
United States Attorney Rod J. Rosenstein praised the IRS-CI, FBI, and U.S. Trustee’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I. Sharfstein, who prosecuted the case.

Pulaski County Sheriff’s Deputy Indicted on Federal Civil Rights Violations

WASHINGTON, DC—United States Attorney for the Eastern District of Kentucky Kerry B. Harvey and Assistant Attorney General for the Civil Rights Division Thomas E. Perez announced today that Stephen Molen, a sheriff’s deputy with the Pulaski County Sheriff’s Office, was indicted by a federal grand jury on two counts of violating the civil rights of victims by using excessive force in October 2009 and October 2011.
Count one of the indictment alleges that on October 2, 2009, Molen assaulted a victim identified in the indictment as “D.W.,” resulting in bodily injury. Count two of the indictment alleges that on October 7, 2011, Molen assaulted a victim identified in the indictment as “G.C.,” resulting in bodily injury.
If Molen is convicted of these charges, he will face a maximum punishment of 10 years of imprisonment for each count.
The investigation was conducted by the FBI. The case will be prosecuted by Assistant United States Attorneys Pat Molloy and Ron Walker of the Eastern District of Kentucky and Civil Rights Division Trial Attorney Ali Ahmad.
The charges set forth in an indictment are merely accusations, and the defendant is presumed innocent until proven guilty.

U.S. Attorney Joseph Hogsett Announces Sentencing of Clay County Sextortion Defendant

TERRE HAUTE—On April 6, 2012, Richard L. Finkbiner, age 39, of Brazil, Indiana, was arrested by federal authorities and charged with engaging in an intentional, calculated, and cruel sexual exploitation and extortion scheme targeting minors across the country.
In serving the search warrant at Finkbiner’s Clay County home, the Federal Bureau of Investigation uncovered more than 22,000 video files that Finkbiner had created from webcam feeds, as well as approximately 47,000 images that the defendant had downloaded, many of which depicted child pornography. It is estimated that roughly half the videos that Finkbiner created himself depicted other individuals engaged in sexually explicit activity, many of whom were minors.
Today, U.S. District Judge William T. Lawrence sentenced Finkbiner to 40 years in federal prison for these crimes. In making his decision, Judge Lawrence cited not just the victimization of the identified minor victims but also the hundreds of unidentified individuals victimized as part of the defendant’s scheme. A review of Finkbiner’s e-mail communications and chat logs indicates there were at least 153 such victims, at least 20 of whom have been identified and confirmed by investigators.
“For nearly two years, this man sat in front of his home computer and orchestrated a scheme that terrorized hundreds of young people across this country,” Hogsett said. “It is our hope that today’s sentencing serves not just as a deterrent to criminals but also as a warning to Hoosier families as to the dangers that can lurk on these anonymous chat websites.”
In pleading guilty, Finkbiner admitted to using the Internet to prey upon children and teens from across the country, in locations that stretched from Avon, Indiana to Anchorage, Alaska. From 2010 until his arrest in 2012, Finkbiner used Omegle.com, as well as other anonymous video chat websites, to locate his victims. He then utilized “fake webcam” software to display pornographic videos of adults and of children to his victims, which Finkbiner claimed to be live feeds from his webcam.
While displaying these videos to his chat partners, Finkbiner would induce these victims to engage in sexually explicit or suggestive activity themselves, which he secretly recorded. Finkbiner would then confront his chat partners with the videos of their activities, threatening to publish the videos to pornographic websites or send them to the victims’ friends, family, and school teachers unless they became his “cam slaves” and engaged in additional sexually explicit activity, which Finkbiner would also record.
Court documents in this case reveal Finkbiner’s callous, despicable treatment of his minor victims. In many instances, he would force his victims to engage in humiliating acts on webcam, which included coercing them into exposing themselves, forcing them to wear embarrassing outfits, and inducing them to write one of Finkbiner’s aliases on their body with a permanent markers. In the case of at least one teenage female, the victim was so distraught after her abuse that she attempted suicide. After sending the defendant an e-mail stating that she had tried to kill herself, Finkbiner replied, “Glad I could help.”
The locations and ages of the charged child exploitation victims are as follows:

Victim	Age	Location
John Doe 1	16	Avon, Indiana
John Doe 2	14	Sissonville, West Virginia
John Doe 3	14	Dubuque, Iowa
John Doe 4	15	River Falls, Wisconsin
John Doe 5	15	Cincinnati, Ohio
John Doe 6	16	Hamlin, New York
John Doe 7	12	Grand Rapids, Michigan
John Doe 8	15	Fairview Heights, Illinois
Jane Doe 1	17	Cincinnati, Ohio
John Doe 9	15	Fort Collins, Colorado
John Doe 10	14	Rochester Hills, Michigan

Finkbiner also admitted to extorting two additional female victims: Jane Doe 2, 16 years old, of Anchorage, Alaska; and Jane Doe 3, 14 years old, of St. Peters, Minnesota. Finkbiner threatened them with the distribution of sexually suggestive and/or partially nude images.
According to Assistant U.S. Attorneys Zachary A. Myers and A. Brant Cook, who prosecuted the case for the government, Finkbiner was ordered to serve lifetime federally supervised release at the end of his prison term. He was also ordered to register as a sexual offender and was fined $70,000.
This prosecution followed an extensive collaborative investigation by the Federal Bureau of Investigation, the Oakland County (Michigan) Sheriff’s Department, and the Prince George’s County (Maryland) Police Department, with significant assistance from the Indiana State Police, the Clay County Sheriff’s Department, the Terre Haute Police Department, and the Kokomo Police Department, as well as the U.S. Attorney’s Office for the Eastern District of Michigan.
This case was brought as part of the U.S. Attorney’s 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. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more on Project Safe Childhood, visit www.justice.gov/psc.

Five Arrested in Armed Robbery of Community Bank Branch in Fishers

Special Agent in Charge (SAC) Robert Jones of the Indianapolis Division of the Federal Bureau of Investigation (FBI) and Chief George Kehl of the Fishers Police Department jointly announce the arrest of five individuals in the armed robbery of Community Bank branch at 12154 Reynolds Drive in Fishers, Indiana, that occurred this morning.
On Wednesday, June 26, 2013, at approximately 8:00 a.m., prior to the bank’s opening, two males confronted a bank employee who was opening the bank and violently forced their way at gunpoint into the bank. The subjects fled the bank in the bank employee’s vehicle, leaving the employee in the bank. Two vehicles containing additional subjects also fled the area. A traffic stop was initiated by the Fishers Police Department in an attempt to stop all three vehicles. The subjects of two of the vehicles complied and were arrested without incident. The subjects of the third vehicle stopped and fled on foot. After a brief foot pursuit, one subject was arrested across the street from the Baymont Suites hotel located at 9790 North by Northeast Boulevard in Fishers. The second subject fled into the Baymont Suites hotel. That subject was discovered hiding in a closet in the hotel and was arrested without incident.
Arrested were Deandre Armour, age 37; Duryea Rogers, age 26; Olivia Haiflich, age 20; Tahita Burnett, age 40; and an additional male whose identity has not yet been confirmed.
The Evidence Response Teams from the FBI and the Fishers Police Department have been deployed to various locations in furtherance of this investigation.
All of the arrestees are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

FBI Atlanta Arrests Detroit Murder Fugitive

ATLANTA—Special Agent in Charge (SAC) Mark F. Giuliano, in conjunction with Gwinnett County Sheriff Butch Conway, announces the following arrest today at Norcross, Georgia:
Ngai Goode, black male, age 42, of Detroit, Michigan, was arrested today, Tuesday, June 25, 2013, at approximately 3:15 p.m. by FBI Atlanta and Gwinnett County Sheriff’s Office based on a 2002 murder warrant obtained by investigators of the Wayne County Sheriff’s Office in Detroit, Michigan.
Goode was located by FBI agents at 1136 Chase Common Drive (Woodchase Apartments), Norcross, Georgia, and, after a brief standoff, a SWAT entry was made wherein Goode was taken into custody.
Goode will be held at the Gwinnett County Detention Center to await extradition back to Michigan.
The public should be reminded that the above are mere allegations and that all persons are presumed innocent until proven guilty in a court of law.

Former Maui Residents Indicted for Operating Ponzi Scheme

HONOLULU—A federal grand jury in Honolulu, Hawaii today returned a 17-count indictment of George Lindell, age 65 , and Holly Hoaeae, age 39, for operating an alleged pyramid, or Ponzi, scheme between January 2005 and November 2010. The indictment charges Lindell and Hoaeae, who were Maui residents at the time of the alleged offenses, with 13 mail fraud and three wire fraud violations and one count of money laundering conspiracy, each of which carry a maximum sentence of 20 years’ imprisonment. The indictment also seeks a forfeiture of various properties and assets, including up to $8,626,588.86, which the indictment alleges represents the total amount of proceeds obtained as a result of the fraud. In addition, the defendants face fines of up to $250,000 on each of the fraud violations and up to $500,000 or twice the value of the funds or financial instruments involved on the conspiracy charge.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the indictment, Lindell and Hoaeae, neither of whom was licensed by the state of Hawaii to accept deposits or investments, induced others to invest funds with them in an investment described by Lindell and Hoaeae as “The Parking Lot,” where investors could earn between six and eight percent returns on their investments, but instead of investing the funds into safe holdings such as bonds, as represented, the defendants used the funds for their personal needs. The indictment alleges Lindell and Hoaeae refinanced investors’ personal residences through their business “The Mortgage Store” for amounts well above the existing mortgages against those propertie; induced clients to invest the equity drawn from their personal homes with them; and then used it on personal expenditures, including the construction of a residence in Lahaina, Maui, the purchase of a Lexis automobile, payment of a $27,967 debt on a truck loan, and payment of $28,500 for a New Zealand safari.
The charges contained in the indictment are merely allegations, and the defendants are presumed innocent until and unless proven guilty.
The case was investigated by agents of the Federal Bureau of Investigation.
Assistant U.S. Attorney Ken Sorenson is handling the prosecution of the case.

Chicago Police Officer Facing Federal Charge

A long-serving Chicago Police Department (CPD) sergeant was arrested this morning by FBI agents for allegedly attempting to extort a local liquor store worker. The arrest and charge were announced today by Cory B. Nelson, Special Agent in Charge of the Chicago Field Office of the FBI, and Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
Ray M. Ramirez, 49, of the 900 block of North Wood Street in Chicago, who is assigned to the 12th Chicago Police District, was charged in a criminal complaint filed this morning in U.S. District Court in Chicago with one count of attempted extortion under color of official right, a felony offense.
According to the complaint, the liquor store worker notified the FBI that Ramirez had on several occasions taken items from the store without paying, made demands of various store employees for money, and offered to sell police reports and other information to the store worker. The complaint further alleges that Ramirez made offers to speak to the local alderman on behalf of the store worker in exchange for money.
The complaint describes a series of exchanges between the store worker and Ramirez in April and May of this year in which the store worker, at the direction of the FBI and as a ruse, requested criminal background information on a purported new store employee and a license plate check in exchange for money. The complaint further states that Ramirez conducted both of the requested inquiries and that he received $200 upon providing the results of each of the inquiries to the store worker.
Ramirez appeared this afternoon before U.S. Magistrate Judge Maria Valdez, at which time he was formally charged. He was released on his own recognizance pending his next court appearance, which is scheduled to take place June 28th at 3:00 p.m.
Mr. Nelson thanked the CPD’s Bureau of Internal Affairs for valuable cooperation provided during the course of the investigation and for assistance with today’s arrest.
If convicted of the charge filed against him, Ramirez faces a possible maximum sentence of 20 years in prison.
The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.

Phoenix Man Sentenced to More Than Three Years in Prison for Stalking a Woman in Maryland

BALTIMORE—U.S. District Judge Ellen L. Hollander sentenced David Charles Richards, age 49, of Phoenix, Arizona, today to 42 months in prison, followed by three years of supervised release, for stalking a woman in Maryland. As part of his sentence, Judge Hollander ordered that Richards have no contact with the victim or her family.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“David Charles Richards violated the federal law against stalking by using the Internet to engage in a course of conduct that was intended to and did place a person in reasonable fear of death or serious bodily injury,” said U.S. Attorney Rod J. Rosenstein.
According to Richards’ guilty plea, from December 2006 through November 2011, Richards used the Internet, telephone, e-mail, and the U.S. mail to stalk a woman in Maryland, including threatening to kill the woman. Richards and the woman had a prior romantic relationship, which the woman described as both troubled and violent.
According to Richards’ plea agreement, after not having any contact with the victim for almost 15 years, in June 2006, Richards contacted the victim’s sister telling her that he still loved the victim but wanted to hurt her. Beginning in July 2006 and during each subsequent year, the victim sought and was granted protective orders forbidding Richards to contact her. On December 11, 2006, the victim discovered that a website had been created in her name, which included a countdown clock to the expiration of the protective order the victim had taken out against Richards and other threatening material. In March 2008, Richards attempted to purchase a firearm in Arizona but failed to disclose that he was subject to a protective order. He was denied purchase of a firearm by ATF due to his prohibited person status. In December 2009, Richards mailed a threatening note, along with torn and shredded pieces of the protective orders that had been served upon him, to the victim’s home. Through January 2010, Richards left the victim at least eight voice-mails totaling one hour and 40 minutes in length. Richards continued to post threats on websites directed at the victim, including as recently as November 2011.
Richards’ long campaign of harassment and threats placed the victim in fear of death and serious harm.
United States Attorney Rod J. Rosenstein praised the FBI agents in Baltimore and Phoenix for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Rachel M. Yasser and Kristi N. O’Malley, who prosecuted the case.

Bloomfield Hills Resident Sentenced to Three Years on Insurance Fraud and Investment Fraud Charges

A Bloomfield Hills resident was sentenced in federal district court late yesterday on charges of defrauding an insurance company and, in a separate case, investment fraud, United States Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge Daryl McCray, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Special Agent in Charge Robert D. Foley, III, Federal Bureau of Investigation.
Patrick D. Winter, age 54, of Bloomfield Hills, Michigan, was sentenced by U.S. District Judge Arthur Tarnow to serve a sentence of three years’ imprisonment on charges of mail and wire fraud.
Evidence presented during the August 21, 2012 guilty plea and at yesterday’s sentencing established that Winter, as the manager of D.K.E., Inc., which owned a commercial office building at 21751 W. Nine Mile Road in Southfield, Michigan, caused a false, inflated, and fraudulent claim to be submitted to the Secura Insurance Company, stemming from a fire that substantially damaged that building on October 4-5, 2004.
According to documents submitted to the court by the defense, Winter intended to inflate the insurance claim by as much as $232,521. Secura did not pay the nearly $1 million claim, which is the subject of civil litigation in Oakland County.
In a separate case, Winter was sentenced for soliciting over $645,500 from a 60-year-old Nevada woman between July 2008 and August 2010, convincing her to liquidate her entire life savings and give the proceeds to him. He falsely promised to invest the money in a real estate development which would pay high returns. Winter flew to Nevada, met with the victim, and earned her trust, in part, by showing her a picture of his large family (the defendant has nine children). He corresponded with her about personal bankruptcy and about letting her home go into foreclosure, all the while soliciting tens of thousands of dollars more from her. Winter used the money for personal expenses. The victim lost her house and was forced to live with her parents.
United States Attorney McQuade commended the investigations of the Southfield Fire Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Federal Bureau of Investigation for bringing this case to a successful conclusion.

Missouri Woman Sentenced for Sex Trafficking in Kansas

KANSAS CITY, KS—A Missouri woman has been sentenced to federal prison for sex trafficking in Kansas, U.S. Attorney Barry Grissom said today.
Danyelle M. Putman, 21, Independence, Missouri, was sentenced to 37 months in federal prison. She pleaded guilty to one count of transporting a person in interstate commerce to engage in prostitution. In her plea, she admitted she was arrested August 9, 2012, when the Special Investigations Unit of the Prairie Village Police Department conducted a prostitution sting. An investigator working undercover called a number on an Internet site and arranged with Putman for a woman to meet him in Prairie Village, Kansas, for sex.
At approximately 8 p.m. that day, Putman and co-defendant Tony A. Rogers, Jr. left Independence, Missouri, with a woman identified in the indictment as K.C., with the intent that K.C. would engage in prostitution. Police took K.C. into custody when Putman and Rogers dropped her off. After Putman and Rogers drove away, they were stopped and arrested.
Co-defendant Tony A. Rogers pleaded guilty and was sentenced to 57 months in federal prison.
Grissom commended the Prairie Village Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.

Former Essex County Sheriff’s Officer Admits Collecting a Debt Through Extortion

NEWARK, NJ—A Monmouth County, New Jersey man admitted today to conspiring to collect a debt using extortionate means, U.S. Attorney Paul J. Fishman announced.
John Balsamo, 49, of West Long Branch, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden to an indictment charging him with using threats of violence and economic harm to collect a debt from the victim, an Ocean County, New Jersey construction contractor.
According to documents filed in this case and statements made in court:
Balsamo and conspirators Timothy Kelly, 37, of Jersey City, New Jersey, and Robert C. Bantang, Jr., 44, of Oceanport, New Jersey, used extortionate means in order to collect $50,000 the contractor owed to Kelly from 2009. The conspirators made the victim believe that the money he had borrowed from Kelly was owed to the “Old Man,” a member of organized crime who would cause physical harm to the victim if the debt was not paid. Balsamo also displayed a key to a construction site where the victim was working in Brick, New Jersey, and warned that the key could be used to gain access to and cause damage to the site, due to the victim’s failure to fully repay the debt. Balsamo and Kelly sent Bantang to the construction site on three occasions to deliver threats purportedly on behalf of the Old Man.
On March 24, 2011, Balsamo and Kelly went to the Brick construction site, which was now a completed restaurant, to confront the victim. Kelly told the victim that if he had brought his “boys” that it would have gotten “done right in here, right in this place, right like this, in front of everybody...and your wife gets it too.” Kelly also told the victim that he deserved “a beatin’ just out of f-—kin’ principle.” Balsamo warned that the Old Man wanted to “beat the s—t” out of the restaurant owner due to the victim’s failure to repay the debt, which Balsamo and Kelly now stated had grown to $70,000. Balsamo also advised the victim that the Old Man has been “promoted,” implying that the Old Man now possessed a higher position in organized crime.
During the course of the conspiracy, Balsamo received a Rolex watch and $2,500 in cash from the victim towards payment of the debt.
Kelly and Bantang previously pleaded guilty in February 2012 to conspiring to collect a debt from the victim using extortionate means, before U.S. District Judge Katharine S. Hayden. The two men are scheduled for sentencing on September 10, 2013.
Balsamo faces a maximum potential penalty per count of 20 years in prison and a fine of $250,000. Sentencing is scheduled for October 8, 2013.
Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of the New Jersey State Commission of Investigation, under the direction of Executive Director Philip James Degnan, for the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Economic Crime Unit in Newark.

Counselors Man Sentenced to 46 Months in Federal Prison on Involuntary Manslaughter Conviction

ALBUQUERQUE—Harlen Sam, 34, an enrolled member of the Navajo Nation who resides in Counselors, New Mexico, was sentenced this afternoon to 46 months in federal prison, followed by three years of supervised release, for his involuntary manslaughter conviction.
In December 2012, Sam entered a guilty plea to two counts of involuntary manslaughter and admitted causing the death of two passengers in his vehicle on May 4, 2012, when he crashed while driving under the influence of alcohol. The crash occurred on a dirt road about four miles east of the Ojo Encino Chapter House in Ojo Encino, New Mexico, which is located on the Navajo Indian Reservation.
Court records reflect that, on May 4, 2012, Sam was driving a vehicle with four adult and five child passengers when he crashed the vehicle. An elderly woman and a 4-year-old boy died after being ejected from the vehicle during the crash. In his plea agreement, Sam admitted he was driving while intoxicated when he crashed and caused the deaths of the two victims. Sam also acknowledged that his blood alcohol level was .08 when his blood was drawn within three hours of the collision.
Sam has been in federal custody since his arrest on May 4, 2012.
The case was investigated by the FBI, the Navajo Department of Public Safety, and the New Mexico State Police, and it is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.

Jal Accountant Pleads Guilty to Federal Fraud and Identity Theft Charges

ALBUQUERQUE—Roger L. Baeza, 31, of Jal, New Mexico, pleaded guilty this morning to 78 counts of securities fraud, one count of access device fraud, and one count of aggravated identity theft, announced U.S. Attorney Kenneth J. Gonzales; Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI; and Chief Robert W. Shilling of the New Mexico State Police.
Baeza was charged with fraud and identity fraud offenses in an 81-count indictment filed in October 2012. The indictment alleged that Baeza defrauded two Jal-based businesses, Lea Energy Services LLC and Fulfer Oil & Cattle Company LCC, of more than $500,000 between June 2010 and February 2012 while he was employed as the in-house accountant by the owners of the two businesses. Today, Baeza pled guilty to all but one count of the indictment, an aggravated identity theft charge.
In his plea agreement, Baeza admitted from June 4, 2010 to February 27, 2012, he embezzled approximately $311,960.08 from his employers’ companies by issuing checks on company accounts for cash or for goods and services for his personal use. Baeza also admitted that he covered up his fraudulent conduct by modifying the companies’ accounting records to indicate that the checks had been issued for legitimate purposes.
Baeza also admitted that from June 4, 2010 to February 27, 2012, he used a company credit card issued in the names of his employers to receive payments and items of value in the aggregate amount of $189,267.02. Finally, Baeza admitted using his employer’s name and identity in February 2011 to issue and sign a check on a company account in the amount of $5,000 and using the money for his personal use.
At sentencing, Baeza faces a maximum penalty of 10 years in prison on each of the 78 securities fraud and access device fraud charges. On the aggravated identity fraud charge, Baeza faces a penalty of two years in prison, to be served consecutive to any sentence imposed on the fraud charges. Under the terms of his plea agreement, Baeza will be ordered to pay $501,927.10 in restitution to the victims of his criminal conduct. Baeza is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Roswell Resident Agency of the FBI and the New Mexico State Police, and it is being prosecuted by Assistant U.S. Attorney Norman Cairns.

Rochester Man Sentenced for Stealing Interstate Shipment from Railcar

ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that Anthony Toscano, 48, of Rochester, New York, who was convicted of conspiracy to steal an interstate shipment and theft of an interstate shipment, was sentenced to 18 months in prison and ordered to pay $4,669.26 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that on June 30, 2009, Toscano, along with co-conspirators Richard E. Riedman, Anthony Russell and Timothy Stone, stole more than 16 gross tons of scrap steel from a railcar at a CSXT rail yard in Batavia, New York. The defendants used a logging truck to remove 17 gross-ton bales of processed, high-grade scrap steel from the railcar.
Toscano and the other defendants were apprehended by members of the Genesee County Sheriff’s Office in the logging truck and a pick-up truck as they left the scene of the theft. The bales were in the process of being shipped to a steel mill in Pennsylvania when they were stolen. Toscano, Riedman, Russell, and Stone were convicted after a two-week jury trial before Judge Siragusa in September 2012.
Defendants Stone and Russell will be sentenced by Judge Siragusa on July 9, 2013 and July 31, 2013, respectively. Riedman is scheduled to be sentenced by Judge Siragusa on September 16, 2013.
The sentencing is the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, and the Genesee County Sheriff’s Department, under the direction of Gary Maha.

Twenty-Fourth Defendant Pleads Guilty in Manhattan Federal Court in Connection with Long Island Railroad Disability Fraud Scheme

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Steven Gagliano, a former Long Island Railroad signalman, pled guilty today to charges related to the allegedly massive fraud scheme in which Long Island Rail Road (LIRR) workers claimed to be disabled upon early retirement so that they could receive disability benefits to which they were not entitled. Gagliano pled guilty in Manhattan federal court before U.S. Magistrate Judge Andrew J. Peck. He is the 24th defendant to plead guilty in the case, which alleges a pervasive pattern of fraudulent disability claims being filed with the U.S. Railroad Retirement Board (RRB) by retiring LIRR employees.
According to the complaint, the superseding indictments, the superseding informations, and statements made in other public filings and court proceedings:
The LIRR Disability Fraud Scheme
The RRB is an independent U.S. agency that administers benefit programs, including disability benefits, for the nation’s railroad workers and their families. A unique LIRR contract allowed employees to retire at the relatively young age of 50—the age of eligibility has since changed to 55—if they had been employed by the LIRR for at least 20 years. Eligible employees are entitled to receive an LIRR pension, which is a portion of the full retirement payment for which they are eligible at 65. In addition, at full retirement age (between age 60 and age 65 depending on years of service), they are eligible to receive an RRB retirement pension. For LIRR workers who retired at 50 with only an LIRR pension, they would receive less than their prior salary and substantially lower pension payments than those to which they would be entitled at full retirement age. However, LIRR employees who retired and claimed disability could receive a disability payment from the RRB on top of their LIRR pension, regardless of age. A retiree’s LIRR pension, in combination with RRB disability payments, can be roughly equivalent to the base salary earned during his or her career.
Hundreds of LIRR employees have allegedly exploited the overlap between the LIRR pension and the RRB disability program by pre-planning the date on which they would falsely declare themselves disabled so that it would coincide with their projected retirement date. These false statements, made under penalty of prosecution in disability applications, allowed LIRR employees to retire as early as age 50 with an LIRR pension, supplemented by the fraudulently obtained RRB disability annuity. From 1995 through 2011, more than 75 percent of LIRR employees stopped working and began receiving RRB disability benefits, whereas during this same period, only 25 percent of retiring Metro-North employees stopped working and began receiving RRB disability benefits. During the period 2004 through 2008, only three doctors were responsible for approximately 86 percent of the disability claims submitted by LIRR retirees. Of these, one has died and one, Dr. Peter J. Ajemian, has pled guilty and admitted that he declared “large numbers of Long Island Railroad employees” to be disabled even though they were not disabled and could have continued working in their railroad jobs. Dr. Ajemian was sentenced in May 2013 to eight years in prison.

* * *

Gagliano, 55, of North Babylon, New York, pled guilty to one count of conspiracy to commit mail fraud, wire fraud, and health care fraud; one count of conspiracy to defraud the United States and the RRB; one count of health care fraud; and one count of wire fraud. He faces a maximum sentence of 55 years in prison and has agreed to make restitution to the RRB in the amount of $242,466.73.
Thirty-two people have been charged in connection with the LIRR disability fraud scheme, 24 of whom have now pled guilty. Of the 24 defendants that have pled guilty, two have been sentenced. The charges against the remaining defendants are merely allegations, and they are all presumed innocent unless and until proven guilty.
Mr. Bharara praised the work of the RRB Office of the Inspector General, the Federal Bureau Investigation, and the Office of the Inspector General of the Metropolitan Transportation Authority for their outstanding work in the investigation, which he noted is ongoing. He also acknowledged the previous investigation conducted by the New York State Attorney General’s Office into these pension fraud issues.
The case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Justin Weddle, Nicole Friedlander, and Daniel Tehrani are in charge of the prosecution.

Former Cherryville Police Chief Charged

CHARLOTTE, NC—The former police chief for the city of Cherryville has been charged with one count of program embezzlement, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Woodrow “Woody” Paul Burgess, 60, of Cherryville, North Carolina, has agreed to plead guilty to the charge.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Greg McLeod, Director of the State Bureau of Investigation (North Carolina-SBI) join U.S. Attorney Tompkins in making today’s announcement.
According to the criminal bill of information and plea agreement filed today in U.S. District Court, Burgess was the chief of police for the city of Cherryville until his retirement in October 2012. During the relevant time period, Bonny Alexander was Cherryville’s finance director and had authority to process payroll payments to Cherryville employees, direct payments for city expenses, and issue checks on behalf of the city. According to court records and the filed plea agreement, Burgess embezzled and caused Alexander to embezzle approximately $11,048 of the city’s funds. Court records show that beginning in January 2007 through November 2008, Burgess instructed Alexander to issue approximately nine Cherryville city checks payable to The Great Outdoors Inc. for the purchase of firearms for Burgess’ personal use. According to the charging document, Burgess told Alexander that the checks and the expenditure of the city’s funds for personal use had been authorized as a “cash-out” for “compensatory time.” Court records indicate that Alexander issued the checks as requested by Burgess and placed entries in the city’s accounting records that the expenditures were for a certain amount of “sick time” or “comp time” due to “Woody.” According to court documents, Burgess was aware that he was not entitled to cash payments for sick or vacation leave or compensatory time. In addition, Burgess knew that no hours were deducted from his sick or vacation leave balances for the city’s purchase of guns for his personal use.
The bill of information contains a notice of forfeiture, which gives notice that the defendant must forfeit to the United States all property and currency involved in the offense charged in the charging document and all property and currency that are proceeds of such offense, including approximately $8,490 in cash and three firearms seized during the course of the investigation.
“Woody Burgess was sworn to uphold the law but instead thought he was above the law. While prosecuting a law enforcement officer is always difficult, my office will not allow the likes of Woody Burgess to dishonor the uniform proudly worn by all other Cherryville police officers who are dedicated to serving and protecting their community,” said U.S. Attorney Tompkins.
“It is both disappointing and disheartening to learn a senior law enforcement officer took advantage of his trusted position for his own profit. Public corruption is the number one criminal priority of the FBI, and we will continue to work aggressively to hold public officials of all levels accountable, especially those who erode the public’s trust in those who have sworn to protect and serve others,” said Special Agent in Charge John A. Strong, of the FBI in Charlotte.
“Our agents are dedicated to finding the truth and bringing criminals to justice, and this case is an excellent example of the work that they do,” said SBI Director Greg McLeod. “We’ll continue our efforts to solve crime, root out public corruption, and protect the people of North Carolina.”
Burgess has agreed to plead guilty to one count of program embezzlement, which carries a maximum sentence of 10 years in prison, a $250,000 fine, or both. Burgess’ initial appearance and plea hearing have been set for Tuesday, June 25, 2013, at 2:00 p.m. According to the filed plea agreement, Burgess has also agreed to pay full restitution, the amount of which will be determined by the court at sentencing.
In January 2013, Alexander pleaded guilty to five counts of program embezzlement for stealing over $435,000 from the city of Cherryville. She faces a maximum term of 10 years in prison and a $250,000 fine per count. A sentencing date for Alexander has not been set yet.
The investigation is handled by the FBI and SBI. The prosecution is handled by Michael Savage of the U.S. Attorney’s Office in Charlotte.

Newport News Man Pleads Guilty to Murder

NEWPORT NEWS, VA—Aronte D. Jarvis, 25, of Newport News, pled guilty today to the 2008 murder of Jonte Terry in the Kmart parking lot located at Oriana Drive in Newport News.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by United States District Judge Arenda L. Wright Allen.
Jarvis was indicted on October 10, 2012, on charges of murder in aid of racketeering activity, discharge of a firearm during a crime of violence, murder with a firearm, and drug conspiracy. His girlfriend, Tayvonna Licorish, was charged in a superseding indictment with accessory after the fact and misprision of a felony. Jarvis will be sentenced to life in prison when he is sentenced on September 20, 2013. Licorish is proceeding to trial on September 17, 2013, and faces a maximum sentence of 18 years in prison.
According to the indictment, Jarvis was a member of a criminal organization known as Thug Relations, operating in the Aqueduct Apartments, St. Michael’s Apartments, Warwick Lawns, Warwick Town Homes, Heritage Trace Apartments, Mariner’s Landing Apartments, Sharon Drive, and the Savage Drive areas of Newport News. The defendant and others established the power and prestige of the gang through violence, including the murder of Jonte Terry on February 3, 2008. Terry, 22, was shot in the Kmart parking lot located at Oriana Drive in Newport News. The indictment alleged that Terry was killed by Jarvis for the purpose of maintaining his position in Thug Relations.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Newport News Police Department and the Virginia State Police. Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.

Fabio Noel-Rodriguez Sentenced in U.S. District Court

The United States Attorney’s Office announced that during a federal court session in Billings, on June 19, 2013, before U.S. District Judge Sam E. Haddon, Fabio Noel-Rodriguez, age 37, was sentenced to a term of:

• Prison: 148 months
• Special assessment: $ 100
• Supervised release: five years

Noel-Rodriguez was sentenced in connection with his guilty plea to possession with the intent to distribute methamphetamine.
In an offer of proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On the evening of January 24, 2011, the Yellowstone County Sheriff’s Office (YCSO) received a phone call from a desk clerk at a hotel in Lockwood. The desk clerk told law enforcement that a man and woman had just checked into the motel using a stolen driver’s license. In a twist of fate only possible in a state like Montana, the desk clerk was a friend of the woman whose identification was stolen earlier on the same day and recognized the license immediately when it was presented by the female upon check in.
Deputies were sent to the motel and spoke with the desk clerk. The desk clerk provided law enforcement with a copy of the Wyoming ID card used for check-in. The desk clerk also provided law enforcement with a copy of the room registration receipt that showed the vehicle listed as belonging to the male and female that rented the room. The vehicle was listed as having a Florida license plate.
A deputy went to the parking lot and drove through it looking for a Florida license plate. As he approached the rear of the motel, the deputy saw a vehicle with a Florida license plate beginning to leave the motel parking lot. There were no other vehicles in the motel parking lot with a Florida license plate. The vehicle was pulled over.
The driver of the car was identified as Noel-Rodriguez. The passenger was identified as Michelle Steinfeldt. Noel-Rodriguez was arrested for driving without a driver’s license. The car was secured, and later a drug sniffing K-9 was run around the car. The dog alerted for the odor of narcotics. A search warrant was obtained for the vehicle. Law enforcement found four cellular telephones, two packages containing 266.4 grams of pure methamphetamine, $3,909 in cash, a digital scale with methamphetamine residue, ziploc bags, and a laptop. The cash, the drugs, and the digital scale were found in a hidden, false compartment in the vehicle.
Steinfeldt pled guilty to federal charges and has been sentenced.
Because there is no parole in the federal system, the “truth in sentencing” guidelines mandate that Noel-Rodriguez will likely serve all of the time imposed by the court. In the federal system, Noel-Rodriguez does have the opportunity to earn a sentence reduction for “good behavior.” However, this reduction will not exceed 15 percent of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.

Heather Louise Manyen Sentenced in U.S. District Court

The United States Attorney’s Office announced that during a federal court session in Billings, on June 20, 2013, before U.S. District Judge Sam E. Haddon, Heather Louise Manyen, a 32-year-old resident of Laurel, was sentenced to a term of:

• Prison: 34 months
• Special assessment: $100
• Community service: 400 hours
• Supervised release: five years

Manyen was sentenced in connection with her guilty plea to conspiracy to possess methamphetamine with intent to distribute and distribution.
In an offer of proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In October 2010, the FBI Safe Streets Task Force (BSSSTF) received information about a large-scale methamphetamine distribution organization operating in Yellowstone County.
In the spring of 2011, law enforcement began performing electronic surveillance on C.M., an individual living in Billings. Investigators discovered that C.M., D.M., and A.H. began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement. C.M., D.M., and A.H. had several distributors that sold the methamphetamine for the organization. One of the distributors was Julie Rozell. Rozell admitted to distributing approximately four pounds of methamphetamine for the organization. One of her distributors was Heather Manyen.
During the investigation, law enforcement learned that Heather Manyen was a distributor of methamphetamine for Rozell from approximately March 2011 and continuing thereafter until late January 2012. Heather Manyen worked with Frank Manyen to distribute the methamphetamine obtained from Rozell. Heather Manyen and Frank Manyen together distributed the methamphetamine they obtained from Rozell in the greater Billings area. Heather Manyen and Frank Manyen obtained approximately 700 grams of methamphetamine from Rozell, which they in turn distributed to their own customers.
Frank Manyen and Julie Rozell pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the “truth in sentencing” guidelines mandate that Manyen will likely serve all of the time imposed by the court. In the federal system, Manyen does have the opportunity to earn a sentence reduction for “good behavior.” However, this reduction will not exceed 15 percent of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force and High Intensity Drug Trafficking Area (HIDTA) Task Force.

Gayle Patrick Skunkcap, Jr., Jessie Jay St. Goddard, and Woodrow Jay Wells Sentenced in U.S. District Court

The United States Attorney’s Office announced that during a federal court session in Great Falls on June 20, 2013, before U.S. District Judge Dana L. Christensen, Gayle Patrick Skunkcap, Jr., age 42; Jessie Jay St. Goddard, age 50; and Woodrow Jay Wells, age 45, residents of Browning, Montana, were each sentenced to a term of:

• Probation: three years
• Special assessment: $200
• Restitution: $56,625

They were sentenced in connection with their guilty pleas to violating the Lacey Act (illegal sale of tribal wildlife) and theft from a tribal government receiving federal funding.
In an Offer of Proof filed by Assistant U.S. Attorneys Carl E. Rostad and Ryan G. Weldon, the government stated it would have proved the following at trial:
All wildlife on the Blackfeet Indian Reservation is owned by the Blackfeet Indian Tribe. In managing such wildlife, hunting is allowed. Hunting by non-members on the Blackfeet Indian Reservation is a highly regulated activity. The 2010 and 2011 Blackfeet Regulations set forth the number of tags that may be given to non-members and the price of payment required for each tag. These tags are required, are limited in number, and are highly lucrative. There are only between five and 10 hunting licenses for each big-game species available to non-tribal members each year, with each license costing between $1,500 and $12,000, depending on the animal.
Skunkcap, Jr., was the director of the Blackfeet Fish and Wildlife Department, and St. Goddard and Wells were Tribal Councilmen on the Blackfeet Tribal Business Council. In 2010 and 2011, the Blackfeet Fish and Wildlife Department received federal funding in excess of $220,000, each year.
Between 2010 and 2011, Skunkcap, St. Goddard, and Wells held four big-game hunts for country musicians participating in an outdoors television show on the Blackfeet Indian Reservation without obtaining the limited and expensive hunting licenses for non-tribal members to shoot elk, moose, deer, and a black bear. They also used tribal funds and personnel to outfit and guide the musicians, television show hosts, and a fly fishing expert.
Michael W. Cotter, United States Attorney for Montana said, “These defendants were public officials of the Blackfeet Tribe and leaders in the community who used their positions to steal property from the Blackfeet Tribal Nation. Public corruption is a crime that will be prosecuted by the Montana United States Attorney’s Office whenever it occurs and wherever it is discovered. This prosecution is an example of great investigative collaboration between the U.S. Fish and Wildlife Service, the Federal Bureau of Investigation, and the Blackfeet Internal Affairs Office.”

Former Army Soldier Sentenced in Murder-for-Hire Conspiracy and for Gun Possession

LAREDO, TX—A fourth man charged in relation to a murder-for-hire conspiracy has been handed a significant federal sentence, United States Attorney Kenneth Magidson announced today. Samuel Walker, 29, of Sharon, Mississippi, was convicted in November 2012 along with Calvin Epps, following a seven-day trial.
Today, Senior United Sates District Court Judge George P. Kazen sentenced Walker to respective sentences of 120 and 60 months for conspiracy to commit murder for hire and for possessing a firearm during in and in relation to a crime of violence. Following his 15-year sentence, he will be on supervised release for five years.
According to the evidence presented at trial, the investigation began in January 2011 when co-defendant Marcus Mickle, 21, of Columbia, South Carolina, began negotiations with persons whom he thought were members of the Los Zetas Cartel, actually undercover Drug Enforcement Administration (DEA) agents, to purchase marijuana in return for stolen weapons. According to the testimony of DEA agents, the discussions concerned the distribution of marijuana in the Columbia area and how Mickle and co-defendant Calvin Epps, 29, of Hopkins, South Carolina, told undercover agents about a friend in the military who could provide military weapons to them. The agents were later introduced to co-defendant Kevin Corley, 30, of Columbia, who identified himself as an active duty officer in the U.S. Army responsible for training soldiers. According to the agents’ testimony, Corley offered to provide tactical training for cartel members and to purchase weapons for the cartel.
Over the next several months, Corley continued to communicate with undercover agents regarding the services he could provide the cartel as a result of the training, experience, and access to information/equipment afforded him as an active duty soldier.
On January 7, 2012, Corley traveled to Laredo and met with undercover agents. During this meeting, he stated that he could raid a ranch located at or near Laredo containing 20 kilograms of cocaine and conduct a contract killing there. Corley stated he would need to bring his own team and agreed to the raid and killing for a $50,000 fee and five kilograms of cocaine.
During March 2012, Corley allegedly arranged for 300 pounds of marijuana to be delivered to Mario Corley, 41, of Saginaw, Texas, in Charleston, South Carolina. Kevin Corley also assisted in brokering 500 pounds of marijuana and five kilograms of cocaine for Mickle and Epps and discussed with agents the distribution of these narcotics in South Carolina, Texas, and Colorado.
Agents testified that on March 5, 2012, Kevin Corley delivered two AR-15 assault rifles with scopes, an airsoft assault rifle, five allegedly stolen ballistic vests, and other miscellaneous equipment to an undercover agent in Colorado Springs, Colorado, in exchange for $10,000. At the meeting, Kevin Corley and the undercover agent again discussed the contract killing and the retrieval of the cocaine that was to occur on March 24, 2012. Kevin Corley stated he had purchased a new Ka-Bar knife to carve a “Z” into the victim’s chest and was planning on buying a hatchet to dismember the body. Evidence at trial demonstrated how Kevin Corley told agents he had discussed the plan with Walker and that Walker was going to be a part of the team that would come to Texas to commit the murder for hire. The jury also heard evidence that he and Walker had gone to the rifle range and test-fired Walker’s scoped rifle.
On March 24, 2012, Kevin Corley, Walker, and Shavar Davis, 30, of Denver, Colorado, traveled to Laredo and met with undercover agents, at which time they discussed the location of the intended victim, the logistics of performing the contract kill, and their respective roles.
During the trial, the jury heard about this meeting and that Walker contended he could hit the intended victim from more than two football fields away with his rifle. Agents testified that immediately thereafter, the three were arrested and a fourth suspect was shot and killed. A subsequent search of the vehicle in which Corley and the other co-conspirators arrived revealed two semi-automatic rifles with scopes, one .300 Caliber Weatherby Magnum bolt-action rifle with a scope and bipod, one hatchet, one Ka-Bar knife, one bag of .223 caliber ammunition, and one box of .300 caliber ammunition.
During trial, Kevin Corley testified that the .300 caliber Weatherby Magnum rifle and ammunition belonged to Walker and that Walker was supposed to take the long-distance shot at the intended victim with this weapon. Walker also testified and admitted that rifle was his but claimed he came to Laredo not to kill anyone but to train clients for security purposes that Kevin Corley had met in Laredo.
Both Kevin Corley and Walker testified that they served in the army together and were deployed to Afghanistan. Walker was a sergeant at the time and served for a time in Kevin Corley’s infantry platoon. Walker and Kevin Corley returned to Fort Carson, Colorado, after their deployment to Afghanistan in the summer of 2011.
Mickle was sentenced last week, also to 15 years, while Davis received a sentence of 10 years in federal prison. Robert Corley, who pleaded guilty to the marijuana conspiracy, was previously sentenced to 30 months in prison. The remaining co-defendants—Kevin Corley, Calvin Epps, and Mario Corley—have not yet been scheduled for sentencing.
The investigation leading to the charges was conducted by the DEA and the FBI with the assistance of U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Roberto Ramirez and Jody Young.

Suspected Serial Robber Hits Wells Fargo Bank Branch in Huntingdon Valley

The Lower Moreland Township Police Department and the FBI are seeking the public’s assistance to identify and locate the subject responsible for the robbery today of the Wells Fargo Bank branch located at 2560 Huntingdon Pike in Huntingdon Valley, Pennsylvania.
At approximately 9:32 a.m., the subject entered the bank and made a verbal demand to a teller. After obtaining an undisclosed amount of cash, the subject fled the area of the bank on foot, heading west on Fetters Mill Road.
The subject is described as a light-complected black male, approximately 5’6”-5’11” tall, medium build; he wore a gray hooded sweatshirt with the word “Nike” and the “Swoosh” logo in black across the front, black sweatpants, black gloves, and a white mask or scarf across his face.
This subject is believed also to be responsible for the armed robberies of a Sovereign Bank branch in Cheltenham Township on June 13 and May 28; a Wells Fargo Bank branch in Northeast Philadelphia on May 23; and a PNC Bank branch in Philadelphia’s Mayfair section on May 15.
This subject is considered armed and dangerous. Anyone with information about this subject or this robbery is urged to call the Lower Moreland Township Police Department at 215-947-3132 or the FBI at 215-641-8910. There may be a reward for information leading to this subject’s capture; tipsters can remain anonymous.
Four photos from the bank’s security cameras are below.

Attempted Robbery of Bank of America Branch in Philadelphia

The Philadelphia Police Department and the FBI are seeking the public’s assistance to identify and locate the subject responsible for the attempted robbery on June 21, 2013, of the Bank of America branch located inside a ShopRite store at 3745 Aramingo Avenue in the Port Richmond section of Philadelphia.
At approximately 3:50 p.m., the subject approached the bank counter and handed a teller a demand note. The subject eventually fled the area of the bank on foot without receiving any money.
The subject is described as a black male in his 20s, approximately 5’10” tall, medium build, dark complexion, with a goatee; he wore a black T-shirt and a black Brooklyn Nets baseball cap.
This subject is considered armed and dangerous. Anyone with information about this robbery attempt or this subject is urged to call the FBI at 215-418-4000 or the Philadelphia Police Department. There may be a reward for information leading to this subject’s capture; tipsters can remain anonymous.
Four photos from the bank’s security cameras are below.

 

 

FBI Portland Establishes Public Corruption Hotline

Public corruption hits at the heart of what a government is supposed to do: serve its people. When public officials—whether elected, appointed, or under contract—use their public office for personal gain, they damage the public’s trust in all forms of government.
These crimes are the result of deals sealed with whispered conversations, quick handshakes, and “under-the-table” money. Because of the secretive nature of bribes, such crimes are often difficult to detect and even more difficult to prove without the assistance of concerned citizens. To help identify potential criminal activity, the FBI has set up a Public Corruption Hotline—503-460-8585—and an e-mail account—PortlandTips@ic.fbi.gov. Whether by phone or e-mail, tipsters are asked to leave their name, telephone number, and a brief description of their concerns and observations. Agents will review voice-mail and e-mail daily, and they will contact individuals for follow-up as needed.
“There are times when honest citizens stumble across a scheme involving public officials. We need those citizens to feel that they can—and should—have a voice in making our government responsive to their concerns and responsible for holding public officials to the highest standards,” said Greg Fowler, special agent in charge of the FBI in Oregon.
What is Public Corruption?
While the vast majority of public officials remain committed to the communities they serve, an extremely small minority of individuals use their public positions for personal or private gain. Public corruption includes bribery, extortion, embezzlement, racketeering, kickbacks, and money laundering, as well as wire, mail, bank, and tax fraud. It is a violation of federal law for any federal or state government official to ask for or receive anything of value for or because of any official act. Under federal law, the person who offers or pays a bribe is also guilty.
The FBI, along with our local law enforcement partners, remains dedicated to ensuring this behavior is fully investigated and, if necessary, prosecuted under the law. Public corruption remains a top criminal priority for the FBI in Oregon.
- Related story

FBI Asks for Help in Identifying Suspects in Genetically Engineered Crop Destruction

Over the course of two nights in early June, an unknown person or group of people did significant damage to two plots of land used to grow genetically engineered sugar beets in Jackson County, Oregon. The plots are on private farmland leased and managed by Syngenta.
Sometime during the night of June 8, 2013, the person/people destroyed about 1,000 sugar beet plants on one property. During the night of June 11, 2013, the person/people destroyed about 5,500 plants on another property. The financial losses are significant, but the actual estimates will not be released at this time due to the needs of the investigation. The FBI considers this crime to be economic sabotage and a violation of federal law involving damage to commercial agricultural enterprises.
The group Oregonians for Food and Shelter (http://ofsonline.org) is offering a reward of up to $10,000 for information leading to the identification, arrest, and conviction of the person and people involved. OFS will evaluate any reward claims and will make the final decision on dispersal of funds.
Anyone with information is asked to call the FBI at (541) 773-2942 during normal business hours or the FBI in Portland at (503) 224-4181 24 hours a day. Tips may also be e-mailed into Portland@ic.fbi.gov.

Army Private and Mother Sentenced for First-Degree Child Abuse Murder of 10-Year-Old Boy at Fort Sill Army Post

OKLAHOMA CITY—Today, United States District Judge Stephen P. Friot sentenced Connell C. Williams, 33, from Fort Sill, Oklahoma, to life imprisonment without the possibility of parole, and Candice C. Holloway, 32, from Norfolk, Virginia, to 30 years imprisonment for their roles in the first-degree child abuse murder of Holloway’s 10-year-old son on Fort Sill Army Post, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, Williams, an enlisted member of the United States Army, was assigned to Fort Sill in Comanche County, Oklahoma, in August 2010. In September 2010, Holloway and her children moved into Fort Sill military housing with Williams. Williams and Holloway were not married, and Williams is not the biological father of the two children. From early 2011 through May 2011, Williams and Holloway intentionally committed child abuse murder by depriving Holloway’s 10-year-old son of food as a form of punishment, which ultimately resulted in his starvation death on May 5, 2011.
Holloway pled guilty to first-degree murder and agreed to serve 30 years in a federal prison, followed by five years of supervised release, in exchange for her cooperation and testimony against Williams, who was facing a possible death sentence. Williams’ trial began in February 2013, and Holloway testified against Williams. During the trial, Williams agreed to enter a plea of guilty to first-degree child abuse murder and accept a mandatory sentence of life imprisonment without the possibility of parole. In exchange for Williams’ guilty plea, the Department of Justice agreed to withdraw the notice to seek the death penalty.
This case was investigated by the Federal Bureau of Investigation and the United States Army Criminal Investigation Division. The case was prosecuted by United States Attorney Sanford C. Coats, Assistant U.S. Attorney Robert A. Bradford, and retired Assistant U.S. Attorney Randal A. Sengel.

Robbery of First Fidelity Bank Branch in Oklahoma City

Special Agent in Charge James E. Finch of the Oklahoma City Division of the FBI announces the robbery of the First Fidelity Bank branch at 700 S.W. 29th Street in Oklahoma City, Oklahoma.
At approximately 4:00 p.m. this afternoon (June 18, 2013), a male entered the bank and approached the teller counter. The subject gave the teller a note demanding money. The teller complied with the demand and the money was placed in a bank envelope. The subject departed the bank with an undisclosed amount of money and was last seen on foot, believed to be heading west.
The subject is described as a white or Hispanic male (possibly light-skinned black male) in his 40s, 5’9”-5’10” tall, with a medium build, black hair, sunglasses, and wearing a black New Orleans Saints shirt and black Houston Astros cap with orange bill and lettering. No weapon was observed or indicated, and no one was injured in today’s robbery.
This robbery is being investigated by the FBI and the Oklahoma City Police Department. Anyone with information is requested to call the FBI at (405) 290-7770 (24-hour number). Callers may remain anonymous. The Oklahoma Banker’s Association offers a reward of up to $2,000 for information leading to the identification, arrest, and/or conviction of anyone robbing a member bank.

Man Arrested in Robbery of J.P. Morgan Chase Bank in Oklahoma City

Special Agent in Charge James E. Finch of the Oklahoma City Division of the Federal Bureau of Investigation (FBI) announced the robbery of the J.P. Morgan Chase Bank at 7401 S. Walker in Oklahoma City, Oklahoma, and the arrest of Nolasco Santa Maria Denis, age 31 of Oklahoma City.
At approximately 2:15 p.m. on June 19, 2013, a Hispanic male entered the bank lobby and approached the teller counter. The subject told the teller he had a gun in his pocket (although none was seen) and demanded money. The teller complied with the subject’s demand and gave him an undisclosed amount of money.
Witnesses observed the subject depart the bank and walk across the street to a convenience store. The subject came out of the store with a bag and returned to his vehicle which was parked directly in front of the bank. Oklahoma City Police Officers responded to the robbery call, and as they approached the bank, they observed the individual matching the subject description standing beside the vehicle in front of the bank. The subject, identified as Nolasco Santa Maria Denis, was taken into custody by Oklahoma City Police Officers without incident. Denis will face federal bank robbery charges.
No one was injured in today’s robbery. This robbery is being investigated by the FBI and the Oklahoma City Police Department. The public is reminded an arrest is merely an accusation, and the defendant is presumed innocent until proven guilty.

Oklahoma City Man to Serve Six Months in Prison for Making Threat to Commit Violence in Wyoming

OKLAHOMA CITY—Today, Glenn Allen Kirkham, 34, of Oklahoma City, Oklahoma, was sentenced by United States District Judge Robin Cauthron to serve six months in prison for making a threat to commit violence in Casper, Wyoming, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On January 14, 2013, public officials in and around Casper, Wyoming, received numerous reports from various sources of a threatened attack in Casper using multiple types of weapons. The threat had been posted from Oklahoma City on 4chan.org, an Internet-based bulletin board service. The posting was quickly distributed throughout social media and caused significant concern in the community. The threat came not long after Casper had experienced a homicide/suicide at a local college. As a result of the threat, officials immediately took precautions that included placing 40 schools on lockdown, notifying hospitals and nursing homes, and placing police officers at potential locations of an attack.
Kirkham pled guilty on March 20, 2013. At today’s sentencing hearing, Judge Cauthron noted that even though the defendant had no criminal history and may have viewed the threat as some sort of joke, incarceration was important as a deterrent to those tempted to use the Internet to cause wide-spread fear and disrupt public services.
This case is the result of an investigation by the Federal Bureau of Investigation and the Casper Police Department in Wyoming. The case was prosecuted by Assistant U.S. Attorneys Mark A. Yancey and Scott E. Williams.

Aurora Man Charged with Defrauding His Beachwood Employer and Investment Clients of $366,000

A 10—ount information was filed charging an Aurora, Ohio man with defrauding his Beachwood-based employer and its investment clients out of about $366,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Office of the Federal Bureau of Investigation.
Andrew J. Franz, age 41, was charged with three counts of mail fraud, one count of securities fraud, one count of investment adviser fraud, and five counts of income tax evasion.
“This defendant betrayed the trust of his employer and his clients,” Dettelbach said. “He lined his pockets with the money that people worked a lifetime to save.”
Anthony said, “Andrew Franz enriched himself with hundreds of thousands of ill-gotten dollars by creating and carrying out various fraudulent schemes. The FBI will continue to work with our law enforcement partners to bring to justice those that steal the hard-earned money of others.”
The first three counts of the information charge that Franz, through his employment and association with the Ruby Corporation (Ruby), a Beachwood investment company, defrauded Ruby and at least 10 of its clients by misappropriating more than $366,000 in customer funds for his own personal use and benefit.
Franz submitted quarterly fee requests to mutual fund and annuity companies for payment of investment advisory fees for Ruby’s clients’ investment accounts. Franz then caused these companies to issue checks by mail to Ruby, which checks Franz intercepted and deposited into bank accounts he maintained and controlled and which funds he used for his own personal use and benefit, according to the information.
Franz submitted some fee requests that were for amounts not due and payable to Ruby, and some fee requests that were for amounts greater than were due and payable to Ruby. Franz also caused mutual fund and annuity companies to send some of these fraudulently obtained fee payments through the mail to his own residence, according to the information.
On some occasions, Franz deposited the funds obtained by his fraudulent fee requests into the accounts of Ruby in an attempt to conceal his fraudulent activity. Franz also contacted a mutual fund company by telephone and, misrepresenting himself as the owner of a trust, caused the mutual fund company to mail payments to Franz’s personal residence. Franz then deposited these checks into bank accounts he maintained and controlled, according to the information.
The information specifically lists three checks, drawn on the accounts of various clients of Ruby, that the Integrity Life Insurance Company sent to Franz’s personal residence between July 20, 2010 and September 7, 2010, as payment for false and fraudulent fee requests that Franz submitted.
Count four charges Franz with securities fraud in using and employing manipulative and deceptive devices and contrivances in connection with the purchase and sale of securities by employing devices, schemes, and artifices to defraud and by engaging in practices which operated as a fraud on investors.
Count five charges Franz with investment adviser fraud in aiding and abetting an investment adviser, namely, Ruby Corporation, in employing a scheme to defraud a client or prospective client and with engaging in a practice which operated as a fraud and deceit upon a client through the use of the mail and instrumentalities of interstate commerce.
Counts six through eight charge that Franz committed income tax evasion for calendar years 2007, 2008, and 2009 by filing false and fraudulent tax returns. Counts nine and 10 charge Franz with income tax evasion for calendar years 2010 and 2011 by failing to make an income tax return as required by law and by conducting his business affairs and personal expenditures in a manner designed to conceal his receipt and disposition of income and assets from the Internal Revenue Service. The total amount of additional tax due and owing by Franz for the tax evasion charged in counts six through 10 is $245,352, according to the information.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any; the defendant’s role in the offense; and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Christian H. Stickan and Trial Attorney Scott M. Watson, following investigation by agents of the FBI Cleveland Office and IRS-Criminal Investigations, Cleveland Office, with assistance of the United States Securities and Exchange Commission, Chicago, Illinois.

Three Ashland Residents Arrested for Human Trafficking

Three Ashland residents held a cognitively disabled woman and her child against her will for more than two years and forced her perform manual labor for them, law enforcement officials said.
The conspiracy included beating the disabled woman and her child, threatening the woman with a firearm, threatening to kill the woman and her child, threatening the woman and her child with large snakes, forcing them to sleep in a padlocked room with a large iguana, and other actions, according to charges filed in U.S. District Court.
Jordie L. Callahan, 26; Jessica L. Hunt, 31; and Daniel J. Brown, aka D.J. Brown, 33, were all arrested today and charged with forced labor. Callahan is charged with an additional count of tampering with a witness.
“These defendants violated the victim’s most basic civil right, freedom, by exploiting her most basic instinct, the protection of her child,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI continues to aggressively pursue and bring to justice those individuals who abuse and harm innocent members of our community.”
“We are yet again reminded that modern-day slavery exists all around us,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “One of our nation’s core values is freedom, yet this woman and her child were denied freedom for two years. The victims in this case endured violence, threats, sub-human living conditions, and other horrific acts.”
“The streets are a lot safer with these folks locked up,” Ashland Police Chief David Marcelli said. “Cooperation with the FBI and U.S. Attorney’s Office was key to the successful arrest of these individuals.”
Ashland County Prosecutor Ramona Rogers said, “We are pleased to cooperate with federal authorities, particularly when it provides for a more severe punishment for these defendants.”
All three are accused of participating in a conspiracy between May 2011 and October 2012 in which they held a woman and her juvenile child in a condition of forced labor and involuntary servitude.
An affidavit from FBI Special Agent Michael Sirohman was filed along with the charges.
The victims in this case are identified only as S.E. and her juvenile child. S.E. suffered from a cognitive disability and received monthly public assistance payments, according to the affidavit.
Callahan and Hunt recruited S.E. and her child to live with them in their two-bedroom apartment in Ashland. Hunt’s four juvenile sons also lived at the house, along with numerous pit bull dogs, large snakes, and other reptiles, according to the affidavit.
Callahan and Hunt monitored S.E. and her child’s activities with a baby monitor, according to the affidavit.
Hunt was in possession of all of S.E.’s government benefits cards and the PINs. Hunt normally used nearly all the money on the cards and rarely gave any money to S.E., according to the affidavit.
Callahan and Hunt forced S.E. to clean the house, do laundry, walk to the store to do their shopping, and care for their numerous pit bulls and reptiles. S.E. was timed when she went to the store and was not allowed to bring her child with her, according to the affidavit.
Callahan and Hunt beat S.E. and her child, threatened their lives, denied them food, and threatened them with the pit bulls and reptiles, according to the affidavit.
At various points, Callahan threated S.E. with a gun. S.E. and her child initially were forced to sleep on a cement floor in the basement with no mattress. Later, they were moved to a room upstairs, again with no bed or mattress. The child was kept in the room all day, and at night the room was padlocked to keep S.E. and her child from escaping, according to the affidavit.
S.E. and her child were only allowed to eat canned food or what was left over after Callahan, Hunt, and Hunt’s children ate. S.E. was not allowed to feed fruit or vegetables to her child, but Callahan and Hunt ordered S.E. to feed fruit and vegetables to the iguana that freely roamed in their bedroom. On another occasion, S.E. said her child had not eaten all day, but Callahan got a plate of food and gave it to a dog rather than letting them eat, according to the affidavit.
Callahan and Hunt also repeatedly taunted and threatened S.E. and B.E. with injury from the couple’s snakes, including a poisonous coral snake, a ball phython, and a Burmese python that weighed 130 pounds, according to the affidavit.
In August 2011, the conspirators slammed S.E.’s hand with a rock in order to obtain pain medication. She was taken to the emergency room and returned with a prescription for pain medication, according to the affidavit.
In December 2011, Callahan and Hunt injured S.E.’s back and then forced her to turn over the prescription for Vicodin she received for her back injury, according to the affidavit.
On another occasion, Callahan kicked S.E. in the hip, and then he and Hunt forced S.E.to turn over the prescription for Vicodin she received for her hip injury, according to the affidavit.
When S.E. attempted to flee the apartment, Brown deceived S.E. into accompanying them in their vehicle and returned her to Callahan and Hunt’s apartment, according to the affidavit.
In October 2011, Callahan and Hunt forced S.E. to hit her child, threatening to inflict much greater physical harm on both if S.E. did not do so. Callahan and Hunt used Callahan’s mobile phone to record S.E. purportedly abusing her child via the baby monitor.
About a year later, S.E. was arrested for shoplifting a candy bar. She asked to be taken to jail and said she was living with Callahan and Hunt and that they “were mean to her,” according to the affidavit.
A police officer went to Callahan and Hunt’s apartment. When the officer advised Callahan that S.E. would not return, Callahan told police he believed S.E. was abusing her child and showed them the mobile phone video from October 2011.
S.E. later told police that Callahan had showed her video recordings of her beating her child after being instructed to do so by Callahan and Hunt. Callahan told S.E. that if she “messed up” or told police about her living conditions, Callahan would show the videos to police and have her daughter taken away, according to the affidavit.
The case was prosecuted by Assistant United States Attorneys Chelsea Rice and Thomas E. Getz, following an investigation by the FBI and Ashland Police Department and assistance from the Ashland County Prosecutor’s Office.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses, and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
A charge is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation is ongoing.

Anthony O. Calabrese, III Sentenced to Nine Years in Prison on Racketeering, Bribery Charges Related to Cuyahoga County Corruption

Anthony O. Calabrese, III was sentenced to nine years in prison and ordered to pay more than $200,000 for his role in a series of bribery schemes involving Jimmy Dimora, Frank Russo, J. Kevin Kelley, and others uncovered as part of the Cuyahoga County corruption investigation, federal law enforcement officials said.
“Anthony Calabrese misused his status as an attorney to facilitate bribes and foster corruption,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “Today’s sentence reflects the fact that Calabrese was deeply involved in a variety of bribery schemes involving a school district, a halfway house, and the infamous trip to Las Vegas, just to name a few.”
“His criminal conduct spanned his entire legal career,” Assistant U.S. Attorney Antoinette Bacon said in court.
Calabrese, 40, of Chagrin Falls, Ohio, previously pleaded guilty to 18 counts which detail improper payments of nearly $550,000. The counts include racketeering; conspiracy to commit mail fraud and honest services fraud; Hobbs Act conspiracy; bribery concerning programs receiving federal funds; conspiracy to commit mail fraud; and mail fraud.
U.S. District Judge Sara Lioi sentenced Calabrese to 108 months in prison and ordered him to pay $132,041 in restitution—$120,970 to Cuyahoga County and $11,071 to Parma schools. Calabrese has already forfeited $74,450
The racketeering charge involves conduct that took place between 2001 and 2009 in which Calabrese gave things of value to public officials and their designees in return for public officials taking and promising to take official action that benefitted Calabrese, Law Firm 1 (where Calabrese was an associate and partner), their clients, and designees, according court documents.
Specifically, Calabrese participated in a scheme in which he and Cuyahoga County employee J. Kevin Kelley helped obtain tax exempt status for the property leased by Alternatives Agency around January 2004, according to court documents.
In September 2004, after a tax refund check was issued to Alternatives Agency for $144,216.26, Calabrese instructed Alternative Agency to issue a check to Business 45 for $72,000 and classify the expense as consulting, despite Calabrese knowing that Business 45 performed no consulting services for Alternatives Agency to justify the expense, according to the indictment.
Business 45, in turn, issued checks payable to Calabrese for $31,500 and to J. Kevin Kelley Consulting LLC for $35,500. Business 45 kept the remaining $5,000, according to the indictment.
In another scheme, Calabrese lobbied Kelley (a member of the Parma School Board) and other members of the Parma School Board in January 2005 to contract with Business 9 to serve as project manager for a renovation project. Business 9 was a construction company that specialized in stone and brick masonry and was a client of Law Firm 1, according to court documents.
In September 2005, the Parma School Board, with Kelley voting in favor, awarded a contract worth $1.8 million to Business 9, according to court documents.
Calabrese and Kelley arranged for Business 9 to hire The Eagle Group, a consulting company formed by Daniel P. Gallagher. In August 2009, Business 9 sent a check for $15,000 to Eagle. Gallagher then paid a portion of that money to Kelley and Kevin Payne, according to court documents.
Other conduct detailed in court documents includes Calabrese, Kelley, Brian Schuman, former Cuyahoga County Auditor Frank P. Russo, and former Cuyahoga County Commissioner James C. Dimora conspiring to increase the funding for Alternatives Agency.
In or around January 2008, Calabrese, who served as legal counsel for Alternatives Agency, instructed Schuman, an employee of Alternatives Agency, to increase Kelley’s monthly consulting fee by $2,000 for four months for the purpose of funding expenses associated with a Las Vegas trip for Dimora, Russo, and Public Employee 55, according to court documents.
In or around 2003, Prudoff began receiving payments from Alternatives Agency on a monthly basis, purportedly for consulting work. When BE39 informed Calabrese that Alternatives Agency received no work product from Prudoff, Calabrese told BE39 that Prudoff was consulting on a Lorain expansion project, according to court documents.
BE39 questioned why Alternatives Agency was paying Prudoff, since he was the community development director for Lorain and it would be within his job requirements to assist companies such as Alternatives Agency, who were interested in developing facilities in Lorain. Calabrese insisted that BE39 continue to cause Alternatives to pay Prudoff, according to court documents.
Calabrese did not inform the Alternatives board about the payments for consultants on a Lorain expansion project and the board did not approve payments to any such consultant, according to court documents.
In or around June 2005, Calabrese told BE39 that Prudoff had some issues arise and Prudoff’s monthly payment should be issued to Relative 2, who was related to Prudoff’s girlfriend, according to court documents.
In or around July 2005, Calabrese and Prudoff assisted Relative 2 in forming Business 46. On or about July 25, 2005, Alternatives Agency began issuing checks to Business 46 for approximately $4,000 on a monthly basis, according to court documents.
Prudoff provided favorable consideration to Calabrese and his designees on business matter unrelated to Alternatives Agency in return and in exchange for the consulting fees that Calabrese caused Prudoff and Business 46 to receive from Alternatives, according to court documents.
In another case, Business 43 was incorporated in the state of Ohio in March 2005, and Calabrese’s relative (Relative 1) was the registered agent for the company. Calabrese caused Alternatives to engage Business 43’s services but concealed from Alternatives his relative’s relationship to Business 43 and did not disclose to them that Relative 1 performed little or no work for Alternatives to justify the fees paid, according to court documents.
In or around 2002, Calabrese influence Alternatives to hire A.C. Sinagra and Associates. In January 2006, A.C. Sinagra and Associated entered into a contract setting a monthly consulting fee at approximately $1,500, according to court documents.
In March 2006, Calabrese and Sinagra agreed that Calabrese would cause Alternatives to increase its payments to A.C. Sinagra and Associates, and Sinagra would use the additional funds to pay persons or entities identified by Calabrese in the amounts Calabrese designated, according to court documents.
Calabrese first suggested Sinagra make consulting payments to Relative 1 through Business 43. He later asked Sinagra to pay Calabrese through Burlwood Holdings, an LLC formed in 2004 and controlled by Calabrese, according to court documents.
Calabrese also asked Sinagra to pay Relative 2, and Sinagra agreed to both requests. Sinagra performed no legitimate work for Alternatives to justify the increase in his fee, according to court documents.
In May 2006, Alternatives increased Sinagra’s monthly fee from $1,500 to approximately $6,000. In May 2006, A.C. Sinagra Company issued a check to Relative 2 for $2,000 and Berlwood Holdings [sic] for $2,000. This continued through November 2007, according to court documents.
In sum, Calabrese caused Alternatives to make payments to Prudoff and Relative 2 between July 2003 and March 2006 totaling approximately $144,000, according to court documents.
Calabrese caused Alternatives to make payments to Business 43 between March 2005 and March 2006 totaling approximately $12,950, according to court documents.
Calabrese caused Alternatives to make payments to A.C. Sinagra and Associates between January 2002 and November 2007 totaling approximately $190,500, according to court documents.
Calabrese caused Alternatives to make payments to J. Kevin Kelley Consulting between October 2004 and August 2008 totaling approximately $201,473, according to court documents.
Regarding count 9, Relative 1’s brother was Attorney 6. Attorney 7 was Calabrese’s relative and formerly related to Relative 1. On or about February 2, 2009, Calabrese told BE39 that Calabrese and Attorney 7 had met with Attorney 6. Calabrese asked BE39 to meet with Attorney 6, according to the indictment.
BE39 met with Attorney 6 on February 2, 2009. Attorney 6 told BE39 that Calabrese and Attorney 7 wanted Attorney 6 to meet with BE39 to go over the script, according to court documents.
Attorney 6 instructed BE39 that if anyone questioned BE39 about Relative 1, BE39 should say that BE40 and BE39 hired Relative 1 to work out of her home to help with the Lorain expansion, which Calabrese and BE39 knew was not true, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Nancy L. Kelley. The investigation was conducted by the Cleveland Field Office of the Federal Bureau of Investigation and the Internal Revenue Service.

Former Computer Company CEO Fined $5 Million and Sentenced to Two Years in Prison for Conspiracy, Securities Fraud, Money Laundering

CINCINNATI—Michael E. Peppel, 46, former chief executive officer of MCSi Inc., a computer sales company formerly headquartered in Dayton, was sentenced in U.S. District Court here today to two years in prison, followed by three years of court supervision, for engaging in a deliberate scheme to defraud millions of dollars from company investors by improperly reporting company revenues. He was also fined $5 million.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division (FBI); Kathy Enstrom, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS); and Christopher T. White, Assistant Inspector in Charge, Cincinnati Field Office, U.S. Postal Inspection Service, announced the sentence handed down today by Senior U.S. District Judge Sandra S. Beckwith.
Peppel pleaded guilty in August 2010 to one count each of conspiracy, securities fraud, and money laundering.
Peppel falsified company accounting records and financial statements to mislead investors about the company’s dire financial situation. “Through his calculated conduct, Mr. Peppel undermined the core principle upon which American equity markets and investors rely—the need for complete, accurate, and truthful information,” Assistant U.S. Attorneys Dwight Keller and Brent Tabacchi wrote in a filing with the court prior to sentencing.
Peppel was ordered to forfeit three pieces of real property, the contents of bank and investment accounts, a $20,000 Italian oil painting, and a $9,000 Italian bronze sculpture that represent the proceeds traceable to the crimes.
MCSi called itself North America’s premier reseller of advanced integrated computer technology and visual communications products for business, government and educational institutions. MCSi was formerly listed on the NASDAQ stock market, until it was delisted in April 2003. In 2001, the firm’s annual sales exceeded $810 million, it maintained offices at 160 locations, had 50,000 clients, and had over 1,300 employees. In 2003, it filed for bankruptcy.
Stewart commended the efforts of the agents and investigators of the IRS, U.S. Postal Inspection Service, and FBI for their in-depth investigation into this matter and Assistant U.S. Attorneys Dwight Keller and Brent Tabacchi, who represented the United States in the case.