Category: United States Attorneys General

Source: United States Attorneys General

Headline: Rapid City Man Sentenced for Failure to Register

United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Failure to Register was sentenced on January 31, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.

Titus Leading Cloud, age 28, was sentenced to 12 months of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

Leading Cloud was charged on March 21, 2017, and pleaded guilty on October 31, 2017.  The conviction stems from Leading Cloud failing to register under the Sex Offender Registration and Notification Act as required.

This case was investigated by the U.S. Marshals Service.  Assistant U.S. Attorney Sarah B. Collins prosecuted the case.

Leading Cloud was immediately turned over to the custody of the U.S. Marshals Service.         

Source: United States Attorneys General

Headline: Jury Finds Butte County Man Guilty of National Guard Recruiting Fraud

SACRAMENTO, Calif. — After an eight-day trial, a federal jury found Steel A. Davis, 45, of Chico, guilty today of all eight counts of wire fraud in a scheme to obtain bonuses for referring individuals to enlist in the California National Guard, U.S. Attorney McGregor W. Scott announced.

According to court documents and evidence presented at trial, the United States Army contracted with a company called Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive a $1,000 payment when a person enlisted and a second $1,000 payment when the recruit left for boot camp.

According to court documents and evidence presented at trial, Davis was a recruiter with the California National Guard and was ineligible to participate in the G-RAP program. Davis, however, realizing the potential to make money through G-RAP, gave recruits’ information to his co‑conspirators who had signed up to be Recruiting Assistants. The RAs would then file false claims with DOCUPAK that they had referred the recruits to join the Guard when, in fact, the recruits had joined on their own initiative. When the compensation was received, Davis split the proceeds of the fraud with the Recruiting Assistants.

This case is the product of an investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew G. Morris and Katherine T. Lydon prosecuting the case.

Davis is scheduled to be sentenced on May 10, 2018, before U.S. District Judge Troy L. Nunley. Davis faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Other National Guard members and recruiters have been charged in similar schemes in the Eastern District of California. The following defendants have been convicted:

• 2:14-cr-153 TLN — Brian Kaps, 44, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. He is scheduled to be sentenced on February 22, 2018.
• 2:14-cr-152 TLN — Sarah Nattress, 30, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. She is scheduled to be sentenced on February 22, 2018.
• 1:14-cr-107 DAD — Leonardo Pesta, 49, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud and was sentenced to two years of probation.
• 1:14-cr-108-LJO — Nicholas Huerta, 36, of Fresno, pleaded guilty on September 14, 2015, to one count of wire fraud and was sentenced to four years of probation.
• 2:14-cr-151 JAM — Richard C. Sihner, 55, of Elk Grove, was convicted on January 22, 2016, of 18 counts of wire fraud and one count of making false statements following a seven-day jury trial and was sentenced to 30 months in prison.
• 1:14-cr-106 DAD — Joaquin Cuenca, 40, of San Diego, was convicted on February 1, 2016, of three counts of wire fraud and one count of making false statements following a seven-day jury trial. He was sentenced to six months in prison.
• 1:14-cr-109-LJO — Jimmy D. Maldonado, 37, and Mayra L. Maldonado, 31, both of Fresno, were each convicted by a jury on January 29, 2018, of three counts of wire fraud after a four-day trial. They are scheduled to be sentenced on April 23, 2018.
• 2:18-cr-12 TLN — Jason M. Hair, of Paradise, pleaded guilty on January 18, 2018, to one count of wire fraud and one count of making false statements. He is scheduled to be sentenced on April 12, 2018.

Source: United States Attorneys General

Headline: Stockton Man Charged with Distributing Child Pornography

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Jason Solomon, 42, of Stockton, charging him with distribution of child pornography and possession of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, in July 2016, Solomon distributed images of children engaged in sexually explicit conduct. On January 9, 2018, Solomon also possessed a video depicting a child engaged in sexually explicit conduct. Solomon has been in custody since his arrest on January 9, 2018.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.

If convicted of distribution of child pornography, Solomon faces a mandatory minimum sentence of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The possession of child pornography count carries a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.

Source: United States Attorneys General

Headline: Owner Of Information Technology Companies Admits Visa Fraud And Tax Crimes

NEWARK, N.J. – An owner of two IT staffing and consulting companies today admitted using phony documents to fraudulently obtain H1-B visas for foreign workers and submitting false tax returns, U.S. Attorney Craig Carpenito announced.

Sowrabh Sharma, 33, of New York, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with conspiracy to commit visa fraud and subscribing to false tax returns.  

“For years, Sharma and others working at SCM Data and MMC systems lied about hiring full-time foreign workers in order to secure H1-B visas,” U.S. Attorney Carpenito said. “In reality and contrary to immigration laws, these workers were often ‘benched’ without pay while the companies created false documents to cover-up the scheme. This investigation, which has resulted in the conviction of an owner and several employees, including an  immigration attorney, shows that businesses that use the H1-B visa program better do so with the utmost adherence to this nation’s immigration and labor laws.”

“This conviction shows that even those with powerful business interests are not immune from HSI’s long and expert investigative reach when it comes to visa fraud and worker exploitation,” said Michael McCarthy, Acting Special Agent in charge of HSI Newark. “Such activities not only have a negative impact on the U.S. economy, but are harmful to the overall work environment of companies and individuals.”

“Sowrabh Sharma misused the H-1B program in order to enrich himself at the expense of the foreign workers he sponsored for H-1B visas. His company submitted false documents to the Departments of Labor and Homeland Security in order to perpetrate this fraud. The U.S. Department of Labor Office of Inspector General will continue to work with Homeland Security Investigations and our other law enforcement partners to vigorously pursue those who commit fraud involving the foreign labor certification programs which are jointly administered by the Departments of Labor, Homeland Security and State,” stated Peter Nozka, Acting Special Agent-in-Charge, U.S. Department of Labor Office of Inspector General New York Region.

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

SCM Data Inc. and MMC Systems Inc. offered consultants to clients in need of IT support. Both companies recruited foreign nationals with purported IT expertise, often student visa holders or recent college graduates, and sponsored them for H-1B visas with the stated purpose of working for SCM Data and MMC Systems’ clients throughout the United States.

Sharma admitted today that from 2010 through April 2015, he and others falsely represented to U.S. Department of Homeland Security, U.S. Citizenship and Immigrations Services (USCIS) that dozens of foreign workers had full-time “in-house” positions, and would be paid an annual salary, as required to secure the visas. However, Sharma and his companies only paid the foreign workers when they were placed at a third-party client, or a company that entered into a contract for services with SCM Data and MMC Systems.

Sharma also admitted that in some instances, foreign workers who were “benched” between projects and not working were told that if they wanted to maintain their H-1B visa status, they would need to come up with what their gross wages would be in cash and give it to SCM Data and MMC Systems to generate phony payroll checks.
 
In addition, Sharma also admitted that he intentionally overstated and claimed false expenses pertaining to SCM Data and MMC Systems on his individual tax returns for 2011, 2012, 2013, and 2014, resulting in a tax loss to the United States of approximately $1,114,824.  

Sharma faces a maximum potential penalty of five years in prison on the visa fraud conspiracy count and three years in prison on the tax fraud count. Both charges carry a maximum $250,000 fine. His sentencing is scheduled for May 30, 2018.

U.S. Attorney Carpenito credited special agents of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Newark Field Office, under the direction of Acting Special Agent in Charge Michael McCarthy, the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, and IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, with the investigation.

The government is represented by Assistant U.S. Attorneys Joyce M. Malliet and Francisco J. Navarro of the U.S. Attorney’s Office’s National Security Unit in Newark.

Defense Counsel: John P. Lacey Esq., and Leo J. Hurley Esq.

Source: United States Attorneys General

Headline: Hart County Kentucky Felon Sentenced To 70 Months For Unlawful Possession Of Multiple Firearms

BOWLING GREEN, Ky. – A Hart County, Kentucky, felon was sentenced to serve 70 months in prison followed by three years of Supervised Release, by United States District Judge Greg N. Stivers, in United States District Court yesterday, for unlawful possession of firearms announced United States Attorney Russell M. Coleman. There is no parole in the federal system.

Rodney Earl Staples, 52, of Munfordville, admitted on June 16, 2017, to the unlawful possession of a firearm.  Law enforcement officials became aware of Staples’ criminal conduct during a follow-up investigation relating to his father’s business as a federal firearms’ licensee and the suspected transfer of firearms to his convicted felon sons.  On August 21, 2013, law enforcement officials seized twelve firearms (11 long guns and one revolver), from Staples’ residence.  He claimed that the firearms belonged to his then 10-year-old son.

Staples was convicted on June 6, 2006, in Hart Circuit Court, Hart County, Kentucky, in case number 05-CR-00152, with the attempted manufacture of methamphetamine, possession of a controlled substance – first degree, and trafficking in marijuana.

Assistant United States Attorney Jo E. Lawless prosecuted the case. The investigation

was led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

Source: United States Attorneys General

Headline: Paducah, Kentucky Office Manager Sentenced To 65 Months In Prison For Embezzling From Her Employer

Ordered to pay $747,455.30 in restitution

PADUCAH, Ky. – The office manager for Utilities Dynamics, Inc. was sentenced to 65 months in prison and ordered to pay restitution, by Senior Judge Thomas B. Russell, in United States District Court today, for wire fraud and identity theft as part of a scheme to defraud the company of $747,455.30 announced United States Attorney Russell M. Coleman. There is no parole in the federal system.

“Insider theft from private employers happens all too often – with losses that affect hiring, pay, and often solvency of the entire company,” stated United States Attorney Russell Coleman. “Anyone who believes this will go unnoticed, should look at the fate of Ms. Roberts who will spend more than five years in prison and must return every stolen dime.”

Kristen Renee Roberts, 39, of Calvert City, Kentucky, was charged in a criminal Information with one count of wire fraud and one count of aggravated identity theft as part of a scheme to defraud her employer of over $700,000 during an eight year period.

Roberts pleaded guilty and acknowledged that beginning in June of 2009 and continuing until October of 2017, while office manager for Utilities Dynamics, Inc., she was responsible for all of the Company’s accounts payable, accounts receivable, employee payroll, QuickBooks functions, and banking requirements. She also had access to the Company’s company credit cards and banking account information.

Roberts admitted to using the company credit cards for unauthorized purchases for the benefit of herself and her family. Further, Roberts admitted to making unauthorized purchases with company credit cards that were in her own name and to using the company credit card of K.B., without K.B.’s knowledge or authorization. Roberts knew she did not have authority to use K.B.’s credit card but did so with the intent to defraud both K.B. and the Company.

Roberts also admitted to electronically debiting the bank account of the Company in order to make payments on her own personal credit cards and the personal credit cards of her family. 

Finally, because Roberts controlled the Company’s payroll, she also was able to overpay herself using direct deposits from the Company’s bank account into her personal bank account. Roberts would conceal these overpayments to herself by creating fake payroll payments to other employees within the Company and then deposit that money into her own account.  She would also conceal these overpayments by creating fake invoices within the Company’s QuickBooks accounting software to various vendors used by the Company where the payments to these vendors were actually payments into her personal bank account.

This case was prosecuted by Assistant United States Attorney Nute Bonner and was investigated by the McCracken County Sheriff’s Office.

Source: United States Attorneys General

Headline: Federal Jury Convicts Knoxville Man and Former Washington State Prosecutor Turned Leader of Sovereign Citizen Movement of Wire Fraud and Conspiracy to Commit Money Laundering

KNOXVILLE, Tenn. – Following an eight-day trial before the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, a jury found Randall Keith Beane, 50, of Knoxville, Tennessee, and Heather Ann Tucci-Jarraf, 45, of Pierce County, Washington, guilty of conspiracy to commit money laundering.  The jury also found Beane guilty of six additional counts of wire and bank fraud.

Sentencing is set for Beane on June 12, 2018, and Tucci-Jarraf on June 26, 2018 in U.S. District Court.  Tucci-Jarraf faces a sentence of up to 20 years.  Beane faces up to 30 years on the charges. There is no parole in the federal system.

Evidence presented at trial showed that Tucci-Jarraf acted as an unlicensed attorney for Beane in a scheme to defraud United Services Automobile Association (USAA) Bank, of more than 31 million dollars.  In court filings, Tucci-Jarraf and Beane claim the government was foreclosed upon and has no jurisdiction over them.  The defendants asserted at trial that the United States hides individuals’ secret accounts in the Federal Reserve Bank, a common ideology among sovereign citizen groups.  Tucci-Jarraf was a former prosecutor in Pierce County, Washington.

“When wrongdoers attempt to stand behind an anti-government movement to hide or justify fraudulent criminal activity, they will fail.  This jury sent the message that the American judicial system will not shield them, and these two defendants now know they will be punished, whether or not they acknowledge the authority of the Court to do so,” said U.S. Attorney J. Douglas Overbey.

The United States is also forfeiting a motor home worth over $500,000 that Beane purchased with the proceeds of the bank and wire fraud offenses.  The loss to victim USAA bank totaled over $550,000.

Beane was arrested by FBI Special Agents in July 2017 as he attempted to flee in a half-million dollar motor coach purchased with stolen funds.  He resisted arrest and fought the agents during the incident.  Tucci-Jarraf was arrested in Washington, D.C., after attempting to meet with President Trump at the White House.

“Americans are free to believe as they choose about their government,” said Renae McDermott, special agent in charge of the FBI Knoxville Field Office.  “When those beliefs turn into criminal actions, law enforcement must act.”

The FBI’s white collar crime squad and cyber task force conducted the investigation.    Assistant U.S. Attorneys Cynthia Davidson and Anne-Marie Svolto represented the United States.

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Source: United States Attorneys General

Headline: Duquesne Woman Admits Passing Counterfeit Bills throughout Western PA

PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to charges of conspiracy and passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.

Destiny S. Dayton, 21, of Duquesne, Pennsylvania, pleaded guilty on January 31, 2018, to three counts before United States District Judge Nora Barry Fischer.

In connection with the guilty plea, the court was advised that between May 16, 2015 and June 12, 2015, Dayton conspired and passed counterfeit $100, $50 and $20 Federal Reserve Notes throughout the Western District of Pennsylvania.

Judge Fischer scheduled sentencing for May 31, 2018, at 9:30 a.m. The law provides for a total sentence of 45 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.

The United States Secret Service conducted the investigation that led to the prosecution of Dayton.

Source: United States Attorneys General

Headline: East Pittsburgh Man Sentenced to Time Served for Participating in Counterfeit Currency Scheme

PITTSBURGH – A Pittsburgh-area resident has been sentenced in federal court on his conviction of conspiracy and passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.

United States District Judge Nora Barry Fischer imposed the sentence yesterday on Shad McClelland, 31, of East Pittsburgh, Pennsylvania. Shad McClelland received a sentence of time served and two years of supervised release, of which the first three months he will be on home detention with electronic monitoring.

According to information presented to the court, McClelland conspired and passed counterfeit $100, $50 and $20 FRNs throughout the Western District of Pennsylvania.

Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.

United States Attorney Brady commended the United States Secret Service for the investigation leading to the successful prosecution of McClelland.

Source: United States Attorneys General

Headline: Jacksonville Man Sentenced on Gun Charges Following Shooting Death

RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, United States District Judge W. Earl Britt sentenced DELMAN DEWAYNE DIXON, 24, of Jacksonville, NC to 135 months of imprisonment followed by 3 years of supervised release.

On October 30, 2017, DIXON pled guilty to a three-count criminal information, charging three counts of Possession of a Firearm or Ammunition by a Felon, each arising from a separate date. 

The evidence established that on November 30, 2015, deputies from the Onslow County Sheriff’s Office responded to a shooting at a residence in Jacksonville, North Carolina.  There they discovered that DIXON had exchanged gunfire with a man named Quinn Everette over a disputed drug deal.  Everette was killed, and DIXON received a gunshot wound to his shoulder.  Law enforcement did not recover the firearm, but found DIXON in possession of ammunition.

The evidence further established that on May 5, 2016, officers of the Jacksonville Police Department conducted a traffic stop and found DIXON in possession of a Hi-Point .40 caliber pistol.  Then, on December 2, 2016, members of the Onslow County Sheriff’s Office executed a search warrant and an arrest warrant at DIXON’s Jacksonville residence.  DIXON fled but was soon apprehended.  Law enforcement recovered a stolen Springfield XD 9mm pistol and also a Davis Industries .380 caliber pistol that DIXON had directed his girlfriend to hide

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

The Onslow County Sheriff’s Office, Jacksonville Police Department, and Bureau of Alcohol Tobacco Firearms and Explosives (ATF)conducted the investigation of this case.  Assistant United States Attorney Jake D. Pugh is prosecuting this case on behalf of the government.