Category: Legal Issues

Source: United States Attorneys General 12

Indictments Allege that Defendants Collectively Received More Than $800,000 in Fraudulently-Obtained COVID-19 Relief Funding, Seek Forfeiture of West Richland Residence Purchased with Fraudulently-Obtained Funds

Richland, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury has indicted two additional individuals for COVID-19 Fraud as part of the Eastern Washington COVID-19 Strike Force. The Indictments announced today are the most recent charges brought by the Strike Force, which has brought criminal charges against numerous individuals and recovered millions of dollars in fraudulently obtained COVID relief funding.

On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.

One indictment announced today charges Jimia Rae Cain, age 52, of West Richland, Washington, with seven counts of fraud in connection with PPP and EIDL loans that she obtained in 2020. The Indictment alleges that Cain used false statements and fraudulent documents to obtain more than $330,000 in CARES Act funding for her purported business. The Indictment further alleges that Cain attempted to secure an additional $280,000 in EIDL funding, but this additional funding was declined.

The second Indictment announced today charges Andrei Borgheriu, age 45, of West Richland, Washington, with three counts of fraud in connection with $500,000 in EIDL funding that he obtained on behalf of his company Artway Transport, LLC. The Indictment alleges that Borgheriu falsely represented that the funding would be used as working capital for his company, but instead that Borgheriu used it for an all-cash purchase of a personal residence in West Richland, Washington. The Indictment alleges that, soon after receiving the EIDL funding, Borgheriu wired nearly all of the EIDL funding to the title company for the purchase of the personal residence. As set forth in the Indictment, the United States therefore also seeks forfeiture of the residence based on allegations that it represents proceeds from the fraudulently obtained EIDL funding.

“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the Strike Force in order to ensure that those who misused COVID-19 relief funding are held accountable and to protect the strength and safety of our vital small business community.”

In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Department of Homeland Security (DHS) OIG, Internal Revenue Service, Department of Energy OIG, and others.

“I commend the continuing investigative work performed to date by the Strike Force, including by SBA OIG, FBI, and TIGTA,” said U.S. Attorney Waldref. “As the Strike Force’s work moves forward, we will continue taking aggressive action to pursue property that was purchased with fraudulently-obtained funds, to ensure that those funds are returned to the public and that wrongdoers are not able to reap the benefit of homes and other property purchased with fraudulently-obtained funds. We also will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”

The fraud charges against Cain carry a maximum sentence of up to 30 years in federal prison, while the fraud charges against Borgheriu carry a maximum sentence of up to 20 years. This case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force and by the FBI, SBA OIG, and TIGTA. The United States Attorney also thanks the West Richland Police Department for graciously providing critical support and assistance. The cases are being prosecuted by Assistant United States Attorneys Dan Fruchter, Frieda K. Zimmerman, Tyler H.L. Tornabene, and Brian Donovan.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Attorneys General 12

HARRISONBURG, Va. – A federal grand jury in Charlottesville has indicted Gerald Leonard Drake, 63, from Winchester, Va., for mailing threatening letters, stalking, and planting a pipe bomb at the Cedar Creek Battlefield in Middletown, Virginia during a Civil War reenactment event in 2017.  In the mailings sent to victims and two newspapers, Drake purported to be a member of Antifa and threatened harm, including referencing the Unite the Right riots in Charlottesville.

The indictment, which was unsealed following Drake’s arrest today, charges him with fifteen criminal offenses including: mailing threatening communications, malicious use of explosives, possession of an unregistered destructive device, unlawful manufacture of a destructive device, use of explosives to commit a federal felony, and stalking.

“This indictment and arrest mark the culmination of a nearly five-year investigation into the perpetrator of the attempted bombing,” United States Attorney Christopher R. Kavanaugh said today.  “Over that time, career federal prosecutors and federal agents steadfastly investigated and uncovered the identity of the individual who sought to terrorize innocent civilians in the Western District of Virginia.  In the aftermath of the riots in Charlottesville, and at a time when people sought to heal, this defendant instead sought to sow political discontent and mayhem.  From the local police who secured the scene, to the state police that diffused the bomb, and through to the federal agents who investigated the true identity of the perpetrator, this was truly a quintessential example of law enforcement partnership.”

“The FBI is grateful no one was injured by this explosive device, and no physical harm came to the individuals being threatened.  In our mission to protect the American people, law enforcement will continue to take threats to individuals and public places seriously and will hold those responsible accountable for their actions.  If you suspect a similar crime is about to occur or have information about one that has, please contact the FBI immediately at 804-261-1044 or via tips.FBI.gov,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division.

As detailed in the indictment, Drake belonged to a reenactment unit that participated in the annual reenactment at Cedar Creek Battlefield until he was removed from his unit in 2014.  In later years, Drake volunteered with the Cedar Creek Battlefield Foundation (CCBF), which is a non-profit organization dedicated to the preservation of history related to the Cedar Creek Battlefield and which hosts an annual reenactment attended by merchants, reenactors, and visitors. 

On September 23, 2017, a letter was received at the CCBF visitor center addressed to “Cedar Creek Battlefield people.”  The envelope and its letter both bore a printed Antifa symbol depicting a black flag overlayed atop a red flag inside of a circle.  The letter claimed the reenactment event “clearly celebrates the war to keep African-Americans in chains,” and warned the reenactment organizers that if the event was not cancelled, the trouble they would inflict on Cedar Creek Battlefield would make the riots that took place in Charlottesville in August look like “a Sunday picnic.”

In response to the letter, the CCBF posted a warning on its website that security had been increased and apologized for the inconvenience.

On October 14, 2017, the CCBF hosted the planned 153^rd anniversary and reenactment of the Battle of Cedar Creek.  During the afternoon hours, as the battle was coming to an end, an unexploded pipe bomb was discovered in one of the merchant tents.  The pipe bomb contained metal nuts, a mercury switch, a battery, ball bearings, black and red wires, powder, and other items. 

Deputies from the Frederick County Sheriff’s Office responded to the scene to investigate and seize the explosive device, which was later rendered safe by Virginia State Police.  Due to its discovery, however, all remaining reenactment activities were cancelled, and individuals were evacuated from the area.

Following this incident, Drake continued writing letters purporting to be sent by Antifa, including letters to the CCBF, its board members, an individual associated with Civil War reenactments, and news publications.  During this same time frame, Drake continued to volunteer with the CCBF.

On November 6, 2017, a letter was received by The Gettysburg Times at its offices in Gettysburg, Pennsylvania. Once again, the letter and envelope both bore Antifa motifs and warned that if the Gettysburg Remembrance Day Parade allowed confederate flags or confederate men and women to be in the parade, “we will disrupt the whole weekend.”  The letter also stated that “we have a new person to make our bombs for us since the Cedar Creek one was a dud,”  and “[w]e will also run over people with a couple of trucks and might have a shooter on the rooftop [or elsewhere] along the parade route.”  However, the Gettysburg Remembrance Day Parade of 2017 occurred without incident despite these threats.

In 2018, one year after Drake planted the pipe bomb at Cedar Creek Battlefield, he sent another letter to the then-President of the CCBF as well as The Winchester Star, a local newspaper in Winchester, Virginia.  In this letter, Drake warned organizers to “cancel this event or you will regret it!” and discussed the various ways in which a “suspicious package” could be smuggled into the event.

On July 3, 2018, the annual Cedar Creek Battlefield reenactment was cancelled due to security concerns.  In addition, the president of the CCBF resigned due to tensions caused by Drake’s threats.

The Federal Bureau of Investigation, the Virginia State Police, Frederick County Sheriff’s Office, and the Middletown Police Department participated in the investigation.

United States Attorney Christopher R. Kavanaugh for the Western District of Virginia and Assistant U.S. Attorneys Katie Burroughs Medearis, Melanie Smith, and Cagle Juhan are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Attorneys General 12

ABINGDON, Va. – A Smyth County, Virginia man, who ordered approximately 30,000 fentanyl pills from California and sold them in Southwest Virginia, was sentenced today to 42  months in federal prison. He will also pay the United States a $50,000 monetary judgement.

Zachary Ryan Hutton, 21, of Marion, Virginia, pleaded guilty in March 2022 to knowingly possessing with the intent to distribute, as well as distributing, 400 grams or more of a mixture or substance containing fentanyl.

According to court documents, law enforcement began investigating a flood of illegal pills in Smyth County, Virginia that resembled pharmaceutical-grade oxycodone pills that were inconsistent in size, shape, and color, indicating they were counterfeit pills. The investigation revealed that the active ingredient in these “pressed” pills was fentanyl. Pills of this type are sometimes referred to as “Roxicodone,” “pressed,” or “M30” pills and often have an imprint of an “M” on one side and a “30” on the other side. 

In June 2021, the U.S. Postal Service–Office of Inspector General intercepted a package addressed to “Ryan Hutton” at the residence of Hutton’s grandmother in Marion. The package contained approximately 561 grams of pressed fentanyl pills.

Law enforcement conducted a controlled delivery of the package, at which time Hutton was arrested and found to be in possession of an additional 798 pressed pills. During the subsequent investigation, law enforcement learned that Hutton had ordered fentanyl pills by mail for at least four months, received approximately 30,000 pills during that time frame, and paid a source in California $20,000 for the most recent package. 

United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, Damon E. Wood, Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, and Jarod Forget, Special Agent in Charge of the DEA’s Washington Division made the announcement.

The Smyth County Sheriff’s Office, the U.S. Postal Inspection Service, the U.S. Postal Service–Office of the Inspector General, the Drug Enforcement Administration, and the Federal Bureau of Investigation investigated the case.

Assistant U.S. Attorney Whit D. Pierce prosecuted the case.

Source: United States Attorneys General 12

CHARLOTESVILLE, Va. – A Winchester, Virginia man, who lied when he purchased a firearm that was later used by a close relative in a Southeast D.C. homicide, pleaded guilty today in federal court.

Gerald Kendrick Oxner, 25, waived his right to be indicted and pleaded guilty today to a one-count Information charging him with making a false statement during the purchase of a firearm.

According to court documents, Oxner lied when he purchased a Smith and Wesson 9-millimeter handgun in January 2021 by not disclosing that he was purchasing the weapon for someone other than himself as well as providing a false home address on the required forms.  Investigators obtained security camera footage and receipts from the store in Front Royal, Virginia, which show Oxner buying the firearm and using his close relative’s debit card to make the purchase.

Law enforcement later recovered the firearm in Maryland, but its serial number had been obliterated.  Through forensic analysis, the serial number was restored, and the firearm was linked to evidence recovered from the scene of a January 25, 2021 shooting in Southeast Washington D.C. where one person was killed and three others were injured.  Oxner’s relative was arrested and charged with first-degree murder in connection with the shooting.

Oxner further admitted that he made multiple other straw purchases in Virginia, however, when law enforcement executed a search warrant at his residence, none of the firearms or related ammunition that he purchased were found in his possession or in the residence.  Subsequently, another one of the firearms he bought was found during the execution of an unrelated search warrant in Washington, D.C.

United States Attorney Christopher R. Kavanaugh and Charlie J. Patterson, Special Agent in Charge of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.

Oxner faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.

Assistant U.S. Attorneys Melanie Smith and Katie B. Medearis are prosecuting the case.

Source: United States Attorneys General 12

The owner of a South Carolina supplement company was sentenced last week to one day and one year of imprisonment for manufacturing and shipping unapproved drugs and anabolic steroids.

John F. Cochcroft, 37, of Lexington, South Carolina, pleaded guilty on May 25, to one count of introduction of a new drug into interstate commerce with the intent to defraud and mislead and one count of manufacturing and possessing with the intent to distribute and distributing anabolic steroids. As part of the plea agreement, Cochcroft agreed to pay a forfeiture money judgment of $200,000 related to proceeds from his sales of illicit products. U.S. District Judge James P. Jones of the Western District of Virginia imposed the sentence.

In pleading guilty, Cochcroft admitted that he operated businesses that marketed products as “dietary supplements” to the body-building and fitness communities to increase muscle mass. He admitted that some of these products contained osterine, a type of synthetic steroid known as a Selective Androgen Receptor Modulator (SARM). The FDA has warned against the use of SARMs, including stating in a 2017 warning letter to another firm that SARMs have been linked to life-threatening reactions like liver toxicity, and that they have the potential to increase the risk of heart attack and stroke.

“Workout supplements containing anabolic steroids and unapproved steroid-like drugs can be dangerous,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work closely with the FDA to prosecute those who seek profit at the expense of public safety.”

“Cochcroft and his company placed public health at risk by unlawfully distributing unapproved drugs that have been linked to life-threatening conditions,” U.S. Attorney Christopher R. Kavanaugh said today. “Marketing and distributing unapproved drugs is not only dangerous, but a federal crime.”

“The FDA oversees the production and sale of prescription drugs to ensure that they are safe and effective. Criminals who attempt to sell medicines outside of FDA’s oversight put consumers’ health at risk,” said Special Agent in Charge George A. Scavdis, Special Agent in Charge, FDA Office of Criminal Investigations Metro Washington Field Office. “Our office will continue to pursue and bring to justice those who endanger the public’s health.”

According to court filings, Cochcroft took steps to mislead and defraud the government and consumers in the sale of these products, including using multiple addresses with fictitious business names, working with Chinese suppliers to mislabel drug products as foodstuff items, and knowingly failing to seek approval for the products. During its investigation, the government seized various products containing anabolic steroids from Cochcroft’s business. Anabolic steroids are Schedule III controlled substances under the Controlled Substances Act , Schedule III(e) and have been linked to life-threatening reactions and side effects.

The FDA’s Office of Criminal Investigations investigated the case.

Assistant U.S. Attorney Randy Ramseyer o for the Western District of Virginia and Trial Attorney Speare Hodges of the Department of Justice Civil Division’s Consumer Protection Branch prosecuted the case.

Source: United States Attorneys General 12

ABINGDON, Va.  – A Southwest Virginia man, who distributed methamphetamine in Southwest Virginia as part of a multi-member drug trafficking ring, pled guilty last week to federal drug charges.

Travis Nelson Farmer, 44, of Rural Retreat, Virginia, pleaded guilty last Thursday to one count of possession with intent to distribute 50 grams or more of methamphetamine.

Previously, co-defendants, Larry Wayne Whittaker, 41, of Marion, Virginia, Amanda Michelle Wain, 29, of Marion, Virginia, and Borve Carlyle Fisher Jr., 35, of Chilhowie, Virginia, all pleaded guilty to similar charges as part of their participation in a drug-trafficking conspiracy.    

According to court documents, Farmer, Fisher, Wain, and Whittaker distributed large quantities of methamphetamine in and around Smyth County, Virginia, much of which was trafficked from Atlanta, Georgia.     

Farmer, Wayne, and Whittaker face sentences ranging from ten years to life in prison, while Fisher faces a sentence of five to forty years.  In addition, the defendants forfeited multiple pistols, ammunition, and nearly $42,000 in cash. 

United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division made the announcement.

The Federal Bureau of Investigation and the Smyth County Sheriff’s Office are investigating the case.

Assistant U.S. Attorney Whit D. Pierce is prosecuting the case.

Source: United States Attorneys General 12

RICHMOND, Va. – A Maryland man pleaded guilty today to committing five different armed robberies of convenience stores, hotels, and banks between October 2021 and December 2021. 

According to court documents, over the course of two months, Rickley Joshua Senning, 33, and Jesann Willis, 36, traveled throughout Ohio, Florida, Virginia, Maryland, and Pennsylvania to commit armed robberies. At each location, Senning entered brandishing a firearm at employees. In total, 15 different victims were held at gunpoint. The Virginia armed robbery occurred at a jewelry store in Richmond.  Senning held the business owner and the business owner’s son at gunpoint while Willis collected over $100,000 of jewelry belonging to the business. The robberies in Maryland and Pennsylvania took place at a mix of gas stations, convenience stores, and banks.

Senning is scheduled to be sentenced on June 6. He faces a maximum of 20 years in prison for the armed robberies as well as a mandatory minimum of seven years and maximum of life in prison for brandishing a firearm during the jewelry store robbery. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Colonel Eric D. English, Chief of Henrico County Police Division, made the announcement after Senior U.S. District Judge John A. Gibney accepted the plea.

Assistant U.S. Attorney Kenneth R. Simon, Jr. is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-28.

Source: United States Attorneys General 12

ALEXANDRIA, Va. – Two California men have been sentenced to prison in a conspiracy to defraud the Internal Revenue Service (IRS) and the Paycheck Protection Program (PPP), a federal loans initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic. 

According to court documents and statements made in court, Thanh Rudin, 58, was a principal of Mana Tax Services, a tax preparation business in the Los Angeles area. His coconspirator, Seir Havana, 46, was the company’s Vice President/Director and Chief Executive Officer. The defendants engaged in two fraud schemes using Mana tax. First, they prepared and filed with the IRS a series of false income tax returns on behalf of at least nine professional athletes. The false tax returns reported fictitious business and personal losses to generate refunds the athletes were not entitled to receive. They also filed amended tax returns for most of the athletes for prior years to correct what conspirators falsely characterized as “errors” made by their previous accountants. Mana Tax charged the athletes a fee of 30% of the resulting refunds issued by the IRS.  The tax fraud scheme caused a total tax loss of more than $19 million.

Second, the defendants prepared and submitted false applications for PPP loans on behalf of small businesses, shell companies, and other business entities they controlled. The co-conspirators prepared fraudulent PPP loan applications for these firms in exchange for a fee of 30% of the resulting loan. The co-conspirators submitted fabricated tax returns to support the PPP loan applications, and some of the business owners never saw their loan applications before Mana Tax filed them. To obtain fraudulent PPP loans, the co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the applications. Some of the businesses were not eligible for any PPP loan funds at all because they did not have any payroll expenses.

During the investigation, the government seized more than $11.8 million from bank accounts containing PPP loan fraud proceeds controlled by the conspirators. In addition, Havana surrendered cashier’s checks worth approximately $5.6 million, representing a portion of the fees charged to professional athletes for the preparation of their false tax returns, and a portion of the fees charged for obtaining fraudulent PPP loans. The two schemes resulted in total losses of more than $44 million.

Havana, was sentenced today to 42 months in prison. Thanh Rudin was sentenced on February 10 to 34 months in prison. Thanh Rudin’s brother, Quin Rudin, was sentenced in October 2022 to 10 years in prison for his role in the scheme. 

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office Criminal Division; and Special Agent in Charge Kareem Carter of the Washington, D.C. Field Office, IRS-Criminal Investigation made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.

The U.S. Attorney’s Office for the Central District of California and U.S. Small Business Administration provided assistance with the investigation.

Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen for the Eastern District of Virginia and Assistant Chief David Zisserson of the Tax Division prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-116.

Source: United States Attorneys General 12

ALEXANDRIA, Va. – A Frederick, Maryland, man pleaded guilty yesterday to assault with a deadly weapon.

According to court documents, Juan Marcus Smith, 58, was driving on the George Washington Memorial Parkway when a motor vehicle accident occurred between his vehicle and a dump truck driven by the victim. Smith pulled in front of the dump truck and brought his vehicle to a complete stop in the righthand lane of the Parkway. He walked over to the victim’s truck, opened the driver’s side door, and brandished a knife while attempting to retrieve the keys to the victim’s dump truck. Smith then returned to his vehicle, recovered a baseball bat, and went back to the victim’s dump truck and struck the driver’s side window, shattering the window while the victim sat inside. 

When officers with the United States Park Police arrived at the scene, they found Smith standing outside his vehicle holding the key to the dump truck in the air. They also recovered a folding knife from Smith’s pant pocket and a baseball bat from the back seat of Smith’s vehicle.

Smith is scheduled to be sentenced on May 25. He faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Christopher Stock, Acting Chief of U.S. Park Police, made the announcement after U.S. District Judge Patricia T. Giles accepted the plea.

Special Assistant U.S. Attorney Alyssa Levey-Weinstein and Assistant U.S. Attorney Bibeane Metsch are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-231.

Source: United States Attorneys General 12

NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to evading his federal income taxes.

According to court documents, Eric Bautista, 37, from approximately January 2017 through December 2020, Bautista worked and earned income as an independent contractor for various commercial fishing companies in the Hampton Roads region and elsewhere. He was paid over $500,000 for his work during this time. Bautista failed to file U.S. Individual income tax returns for tax years 2012 through 2020.  He was levied by the Internal Revenue Service (IRS), but took steps to evade his income taxes, including working under a stolen identity and dealing heavily in cash.  For the years 2012 through 2020, Bautista owed a tax debt of over $170,000.

Bautista pleaded guilty to evasion of income taxed and is scheduled to be sentenced on June 24. He faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea.

Assistant U.S. Attorney Brian J. Samuels is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-95.