Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

NEWARK, N.J. – A New York man today admitted his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Philip R. Sellinger announced.

Joseph Schwartz, 64, of Suffern, New York, pleaded guilty before U.S. district Judge Susan D. Wigenton in Newark federal court to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored.

“Joseph Schwartz admitted to defrauding the United States by failing to pay over to the IRS more than $38 million in payroll taxes. As an employer, Schwartz was required to withhold trust fund taxes from his employees’ paychecks and then dutifully report and turn those monies over to the IRS. Schwartz broke the law when he willfully withheld trust fund taxes from his employees but pocketed the money he had withheld rather than turning it over to the government; he will now be held accountable for his criminal tax violations.”

“Today’s plea is just one more example of our commitment to investigate and prosecute those who fail to comply with their federal tax obligations,” Tammy Tomlins, IRS – Criminal Investigation Special Agent in Charge of the Newark Field Office, said. “The defendant cheated taxpayers out of more than $38 million by failing to comply with the taxes he was beholden to pay on behalf of his employees. IRS Criminal Investigation will hold accountable individuals who willfully participate in tax fraud schemes.”

“Schwartz admits he willfully failed to pay over employment taxes, basically stealing money from his employees and the IRS,” FBI – Newark Special Agent in Charge James E. Dennehy said. “These taxes are an incredibly important facet of how our government functions, making up a significant portion of revenues brought in by the Treasury Department. Other fraudsters currently committing the same fraud should pay attention to the lesson Schwartz learned the hard way – don’t cheat the taxman.” 

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

From Oct. 31, 2017, through May 30, 2018, Schwartz was the owner of Skyline Management Group LLC and related entities with headquarters in New Jersey. Schwartz admitted that he was required to collect, truthfully account for and pay over to the IRS on behalf of employees of Skyline Management Group the trust fund taxes imposed on their employees by the Internal Revenue Service but failed to do so. The total amount of taxes was $38.9 million.

Schwartz admitted he was also an administrator of the Skyline 401K plan and had an obligation to file an annual Form 5500 financial report with the secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.

The employment tax fraud count is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.  The failure to file a Form 5500 related to the retirement plan count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for May 22, 2024.

U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Thomas Licetti in the New York Regional Office; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Kendall Randolph of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

TRENTON, N.J. – The deputy mayor of Willingboro Township, New Jersey, and one of his business associates were charged with conducting a scheme to discharge the deputy mayor’s mortgage obligation on his property through a fraudulent short sale, U.S. Attorney Philip R. Sellinger announced.

Nathaniel Anderson, 56, a town councilman and the deputy mayor of Willingboro in Burlington County, New Jersey, and his business associate Chrisone D. Anderson, 56, of Sicklerville, New Jersey, are charged by complaint with one count of conspiracy to commit wire fraud affecting a financial institution, one count of bank fraud, and two counts of making false statements on a loan application. Additionally, Chrisone D. Anderson is charged with two counts of making false statements to a federal agent. Nathaniel Anderson and Chrisone D. Anderson made their initial appearances today before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and were released on $50,000 each unsecured bond.

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

From March 2015 through June 2017, Nathaniel Anderson and Chrisone D. Anderson conspired and agreed with one another to orchestrate a fraudulent short sale of a property in Willingboro from Nathaniel Anderson to Chrisone D. Anderson.

As part of the conspiracy to defraud a government sponsored enterprise to discharge a mortgage obligation on Nathaniel Anderson’s property in Willingboro and to induce a mortgage lending business to issue a new mortgage on the property, Chrisone D. Anderson executed – and Nathaniel D. Anderson aided and abetted the execution of – mortgage documents containing materially false representations. These included that the short sale was an arm’s length transaction, that Chrisone D. Anderson did not have a prior business relationship with Nathaniel Anderson, that Nathaniel Anderson would not continue to occupy the property as his residence following the short sale, and that Chrisone D. Anderson would occupy the property as her primary residence.

As a result of the fraudulent short sale, the government sponsored enterprise discharged Nathaniel Anderson’s mortgage obligation and suffered a loss of over $120,000, and the victim lender issued a new mortgage on the property. During a May 2022 interview, Chrisone D. Anderson made false statements to an agent of the FBI concerning the short sale.

The charges of conspiracy to commit wire fraud affecting a financial institution, bank fraud, and making false statements on a loan application are each punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million. The charges of making false statements to a federal agent are each punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; and special agents of the Northeast Region of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton, working in conjunction with the Special Prosecutions Division in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

NEWARK, N.J. – A Passaic County correctional officer and two sergeants were arrested today for allegedly violating a pretrial detainee’s civil rights and conspiracy to obstruct justice, U.S. Attorney Philip R. Sellinger announced.

Sergeants Jose Gonzalez, 45, and Donald Vinales, 38, and Officer Lorenzo Bowden, 39, are charged by complaint with one count of deprivation of rights under color of law and one count of conspiracy to obstruct justice. Bowden is also charged with one count of making false statements. Gonzalez, Vinales and Bowden are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. 

According to the criminal complaint:

On Jan. 22, 2021, a pretrial detainee at the Passaic County Jail splashed a mixture containing urine onto a correctional officer. The following day Gonzalez, Vinales and Bowden transported the detainee through an area of the jail that does not have a video surveillance camera, which correctional officers and inmates at the jail have referred to as a “blind spot.” While in that “blind spot,” Gonzalez and Vinales assaulted the detainee, while he was handcuffed. They knocked him to the ground and struck him multiple times. Bowden did not intervene to stop the assault. One day after the assault, the detainee was taken to a local hospital, which documented injuries from the assault.

The defendants all were required to submit documentation regarding their use of force.  None of them submitted any such reports. 

In April 2022, after receiving federal grand jury subpoenas in connection with this investigation, Gonzalez, Vinales and Bowden, among others, met to discuss the federal investigation. During that meeting, the group agreed not to cooperate with the federal investigation and also agreed to say that nothing had happened to the detainee (referring to the assault). During an interview with federal investigators in October 2022, Bowden falsely stated that the detainee had not been assaulted and that there had not been any meeting or communication among those who participated in or witnessed the assault.

The count of deprivation of rights under color of law is punishable by a maximum of 10 years in prison. The count of count of conspiracy to obstruct justice is punishable by a maximum of 20 years in prison. The count of making false statements is punishable by a maximum of five years in prison.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the Passaic County Sheriff’s Office Division of Internal Affairs, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Benjamin Levin of the Criminal Division and the Civil Rights Division’s Criminal Civil Rights Task Force in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Source: Federal Bureau of Investigation (FBI) State Crime News

MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jacob L. Gould 34, Weston, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 7 years in federal prison for possessing 40 grams or more of fentanyl with intent to distribute. Gould pleaded guilty to this charge on October 25, 2023.

Law enforcement began investigating Gould for drug trafficking after receiving information from several confidential informants. On January 6, 2023, after learning that Gould had visited the location of his drug supplier, officers attempted to stop and arrest him. Gould fled, leading law enforcement on a high-speed chase that reached speeds of 112 miles per hour. Law enforcement eventually stopped Gould’s car, but Gould fled on foot and threw a bag along the way. Officers ultimately arrested Gould and recovered the bag, which contained 102 grams of fentanyl. During a post-arrest interview, Gould admitted he had picked up the 100 grams of fentanyl to sell it. He also admitted picking up 70 grams of fentanyl days prior for the same purpose.

Officers searched Gould following his arrest and, in his pocket, found a key to a safe. Law enforcement then searched Gould’s home and located the safe. Inside, they found a Glock handgun, fentanyl, and methamphetamine. 

At sentencing, Judge Conley described Gould’s fentanyl trafficking as a serious offense that endangered the community.

The charge against Gould was the result of an investigation conducted by FBI’s Central Wisconsin Narcotics Task Force, comprised of investigators from the FBI, Everest Metro Police Department, Marathon County Sheriff’s Office, Wisconsin State Patrol, Lincoln County Sheriff’s Office, Wausau Police Department and Wisconsin National Guard Counter Drug Program, with the assistance of the Marathon County District Attorney’s Office. Assistant U.S. Attorneys Anita Marie Boor and Jennifer Remington prosecuted this case.

Source: Federal Bureau of Investigation (FBI) State Crime News

CHARLOTTE, N.C. – James Christopher Robinson, 51, of Granite Falls, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to federal charges for tax and credit card fraud, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRC-CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement. 

According to filed plea documents and today’s court hearing, Robinson was the owner of multiple cabinet manufacturing and retail businesses in the Hickory area, including Cabinet Solutions USA Inc., Best Cabinet Doors, LLC, Cabinet Doors Fast, LLC, and Cox Manufacturing, LLC (collectively, Cabinet Companies). As Robinson admitted in court today, between March 2020 and April 2023, Robinson accessed the credit cards of Cabinet Companies’ customers and without authorization made 294 fraudulent credit card charges totaling approximately $1 million. Robinson also created at least four counterfeit checks totaling more than $93,000, using information from actual checks written to his Cabinet Companies by customers.

Plea documents also show that for tax years 2017 to 2022, Robinson caused two of his companies to fail to comply with their employment tax obligations by failing to timely account for and pay over more than $3.1 million in employment taxes. Court documents indicate that Robinson used the stolen funds to make large cash withdrawals from his business accounts and make hundreds of thousands of dollars in cash deposits at casinos.

Robinson pleaded guilty to access device fraud, which carries a maximum penalty of 15 years in prison, and failure to truthfully account for and pay over trust fund taxes which carries a maximum penalty of five years in prison. Robinson is released on bond. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney King thanked the FBI, the Secret Service, and IRC-CI for their investigation of the case.

Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

SPRINGFIELD, Mo. – A former city clerk for Merriam Woods, Mo., pleaded guilty in federal court today to a $68,000 scheme to defraud the city.

Breanna N. Gamble, also known as Breanna Delcour, 28, of Ozark, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with one count of wire fraud.

By pleading guilty today, Gamble admitted that, from Oct. 1, 2018, to Aug. 11, 2019, she engaged in a scheme by which she utilized her position as a city clerk for Merriam Woods to use city funds for her personal benefit, without authorization from the city.

The loss to the city of Merriam Woods that resulted from Gamble’s fraud scheme totaled at least $68,038. Under the terms of today’s plea agreement, Gamble must forfeit to the government a money judgment in that amount.

As a part of her scheme, Gamble used the city’s credit cards and bank accounts to make personal purchases on numerous occasions, without authorization from the city, including purchases from Amazon, Victoria’s Secret, Walmart, PFI, Buckle, American Eagle, H&M, Ticketmaster, Reliable Chevrolet, Springfield Power Sports, Lululemon, and Ulta.

Gamble admitted that she forged a signature on a $5,500 city check that was used to purchase a motorcycle for her personal use.

In order to conceal her scheme and her use of the city’s funds, Gamble recorded false financial entries and false invoices. Gamble also made misrepresentations to the city’s mayor and  board of aldermen, and failed to cooperate with a company hired by the city to conduct a financial audit of the city’s finances.

Under federal statutes, Gamble is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the FBI.

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)