Source: United States Attorneys General

Headline: Las Vegas Resident Pleads Guilty To Filing False Tax Claims

OAKLAND – Eric Oase pleaded guilty in federal court in Oakland today to filing false claims with the United States, announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf. 

In pleading guilty, Oase, 52, of Las Vegas, Nev., admitted he owned and operated E&K Tax Solutions in San Leandro, Calif.  Oase acknowledged he knowingly prepared and filed numerous false federal income tax returns for others with the Internal Revenue Service.  Specifically in 2012, Oase prepared 2008, 2009, 2010, and 2011 federal income tax returns for his customers that reported false wages, false education expenses, or both, which generated tax refunds.  Regardless of the amount of wages or expenses provided by the customers, Oase falsely reported income and education expenses for his customers that generated tax refunds.  Oase electronically filed with the IRS the false 2011 tax returns.  He directed his customers to mail their 2008 through 2010 tax returns to the IRS.  In total, Oase directed his clients to claim fraudulent tax refunds in the amount of $477,333.

A federal grand jury indicted Oase on January 17, 2017, charging him with six counts of filing false claims, in violation of 18 U.S.C. § 287.  Pursuant to today’s agreement, Oase pleaded guilty to two of the counts.

Oase is currently free on bond.  His sentencing hearing is scheduled for May 24, 2018, before the Honorable Yvonne Gonzalez Rogers, U.S. District Judge, in Oakland.  The maximum statutory penalty for each count of filing a false claim in violation of 18 U.S.C. § 287 is five years in prison and a fine of $250,000.  However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorney José A. Olivera is prosecuting the case.  The prosecution is the result of an investigation by the IRS-CI.  
 

Source: United States Attorneys General

Headline: Salinas Resident Pleads Guilty To Bank Robbery

SAN JOSE– Nathan James Garcia, aka “Bones,” pleaded guilty to conspiracy to commit robbery affecting interstate commerce and armed bank robbery in connection with the 2012 robbery of a Salinas, Calif., bank, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.  The guilty plea was accepted this morning by the Honorable Lucy H. Koh, United States District Judge.  

According to his guilty plea, on May 19, 2012, Garcia, 26, of Salinas, committed an armed bank robbery.  During the robbery, a firearm was brandished and over $13,000 in cash was stolen.  In the days leading up to the bank robbery and in preparation for robbing it, Garcia rehearsed the robbery and cased the bank.  

On May 11, 2017, a federal grand jury indicted Garcia, charging him with one count each of conspiracy to commit robbery affecting interstate commerce, in violation of 18, U.S.C. § 1951(a); conspiracy to commit armed bank robbery, in violation of 18 U.S.C. §§ 2113(a) and (d), and 371; robbery affecting interstate commerce, in violation of 18 U.S.C. §§ 1951(a) and 2; and armed bank robbery, in violation of 18 U.S.C. §§ 2113(a) and (d), and 2.  Pursuant to today’s plea agreement, Garcia pleaded guilty to the conspiracy to commit robbery affecting interstate commerce and the armed bank robbery counts.  The remaining counts will be dismissed.

Garcia faces a maximum sentence of 20 years’ imprisonment and $250,000 for the conspiracy count and a maximum sentence of 25 years’ imprisonment and $250,000 for the armed bank robbery count.  Further, additional terms of supervised release, penalties, and restitution may be ordered.  However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.  Garcia has been in federal custody since his arrest in May of 2017.  Judge Koh has scheduled Garcia’s sentencing hearing for May 2, 2018.   

Assistant U.S. Attorney Claudia A. Quiroz is prosecuting this case with assistance from Jessica Meegan and Lance Libatique.  The prosecution is the result of an investigation by the FBI.
 

Source: United States Attorneys General

Headline: Derry Man Sentenced to 14 Years in Prison for Fentanyl Trafficking

            CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Anthony Barth, 26, of Derry, was sentenced to 14 years in prison for fentanyl trafficking.

            According to statements made in court, Barth sold fentanyl to a cooperating individual on two occasions in July and August of 2016. On August 17, 2016, the individual placed an order for 50 “fingers” or approximately 500 grams of fentanyl. The defendant arrived at the predetermined meeting location in Derry, New Hampshire where officers attempted to arrest him. Barth tried to flee, hitting a police car and eventually abandoning his own vehicle behind a nearby business. He ran into a wooded area where he attempted to discard the drugs, but he was apprehended shortly thereafter. Officers searched the wooded area and found the drugs, which contained approximately 490 grams of fentanyl.  

            On June 5, 2017, Barth pleaded guilty to two counts of distribution of a controlled substance and one count of possession of a controlled substance with intent to distribute.

            “Most overdose deaths in the Granite State are being caused by fentanyl,” Acting U.S. Attorney Farley said.  “The substantial amount of fentanyl that this defendant was distributing could have placed many lives at risk.  While the law enforcement community recognizes that those who suffer from addiction require treatment, those who seek to profit from the sale of these deadly products are damaging the fabric of our communities.  We will continue to work closely with our law enforcement partners to seek substantial penalties for those who threaten our state by selling fentanyl and other deadly drugs.”

           “The state of New Hampshire is faced with a fentanyl crisis unlike ever before,” said Drug Enforcement Administration (DEA) Special Agent in Charge Michael J. Ferguson.  “Those suffering from opioid addiction need access to treatment and recovery, but those that distribute and profit from lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable.  This investigation demonstrates the strength and continued commitment of our local, state and federal partners and our strong relationship with the U.S. Attorney’s Office.”

            This case was investigated by the DEA and the Manchester and Derry Police Departments. It was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.

###

Source: United States Attorneys General

Headline: Shreveport felon pleads guilty to possessing pistol while still on supervised release

SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a Shreveport man pleaded guilty last week to possessing a pistol even though he was still on supervised release and had been convicted of several felonies.

Derrick D. Morris, 36, of Shreveport, pleaded guilty Friday before U.S. District Judge Elizabeth E. Foote to one count of possession of a firearm by a convicted felon. According to the guilty plea, Morris was arrested on August 4, 2017 at a gas station in Shreveport on a warrant for violating his supervised release. Officers found Morris with a Glock, Model 26, 9 mm pistol in the front seat area of the car. Morris was convicted in 2003 for possession of a firearm by a convicted felon. He additionally has two prior felony convictions by the State of Louisiana.

Morris faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of March 22, 2018.

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 safe 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 Session 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 ATF, U.S. Marshals Service and Shreveport Police Department conducted the investigation.  Assistant U.S. Attorney James G. Cowles Jr. is prosecuting the case.

Source: United States Attorneys General

Headline: Corpus Christi Man Convicted of Distribution of Child Pornography

CORPUS CHRISTI, Texas – A 28-year-old Corpus Christi man has admitted he distributed child pornography, announced U.S. Ryan K. Patrick.

In May 2016, authorities discovered that Randy Michael Ramirez was communicating with an undercover detective in Dallas and eventually sent a link which contained 76 videos of child pornography. Law enforcement seized a cellular telephone from Ramirez’s residence which resulted in the discovery of more than 80 images and 12 videos of child pornography. Many of the videos involved sexually explicit conduct with children as young as infants.

The court also heard  today that upon his arrest, Ramirez attempted to hide a cellular telephone. Law enforcement was able to locate the device and a forensic analysis revealed an additional 120 images of child pornography.

Sentencing has been set before Senior U.S. District Judge Janis Graham Jack on April 9, 2018. At that time, Ramirez faces a minimum of five and up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Ramirez also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.

Ramirez has been and will remain in custody pending that hearing.  

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.  

Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

Source: United States Attorneys General

Headline: New York Man Arrested For Role In ‘Shotgun’ Loan Scheme

NEWARK, N.J. – A Bronx, New York, man is charged with carrying out a scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Craig Carpenito announced today.

Saoud “Sam” Rihan, 57, was arrested Jan. 28, 2018 and charged by complaint with one count of conspiracy to commit bank fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

According to the complaint:

Rihan was a business partner of Simon Curanaj, 63, of Yonkers, New York. From 2012 through January 2014, Rihan, Curanaj, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.

For example, Rihan and Curanaj executed a deed to transfer ownership of a Bronx property to people identified in the complaint as “Individual 1” and “Individual 2,” neither of whom lived at the property. Rihan and Curanaj then applied for three HELOCs from multiple banks in the name of Individual 2.

Rihan and Curanaj hid the fact that the same Bronx property was pledged as collateral in all three applications. The applications also fraudulently inflated Individual 2’s income. In addition, at the time the applications were made, the value of the Bronx property, which was encumbered by a mortgage, was far less than the amount of the HELOC loans that Rihan and the real estate broker applied for.

The victim banks eventually issued loans to Individual 2 in excess of $370,000. After the victim banks funded the HELOCs and deposited money into Individual 2’s bank accounts, Individual 2 disbursed almost all of the funds to Rihan, Curanaj, and others. In 2014, Individual 2 defaulted on all the HELOC loans.

The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.

The charge and allegations against Rihan are merely accusations, and he is presumed innocent unless and until proven guilty.

Curanaj previously pleaded guilty to his role in the scheme and awaits sentencing.

U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Steven Perez in Newark; and special agents of the FBI, under the direction Special Agent in Charge Timothy Gallagher in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.

Source: United States Attorneys General

Headline: Former Newark Watershed Conservation And Development Consultant Admits Wire Fraud Scheme

NEWARK, N.J. – A political consultant from Essex County, New Jersey, today admitted her role in a fraud scheme related to contracts with the Newark Watershed Development Corp. (NWCDC) and kickbacks to officials there, U.S. Attorney Craig Carpenito announced.

Dianthe Martinez Brooks, 42, of West Orange, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging her with one count of wire fraud.

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

Martinez Brooks was the owner and proprietor of a consulting company called DMart127 LLC, which provided political consulting services to local candidates and elected officials, among others, in the Essex County area. Between May 2011 and March 2013, she participated in a scheme with Linda Watkins Brashear, the former NWCDC Executive Director, and Donald Bernard, the former Director of Special Projects, to defraud the NWCDC of the honest services of Brashear and Bernard, and of money and property.

Martinez Brooks submitted fraudulent invoices to the NWCDC in the name of DMart127 detailing services that were purportedly performed, but which sought payments that overstated the value of any services she or her company performed. Martinez-Brooks also assisted in obtaining contracts between companies owned by Kevin Gleaton and the NWCDC and contracts between a company owned by her relative and the NWCDC through Bernard and Brashear. Fraudulent invoices were submitted in the name of those companies to the NWCDC detailing services that were purportedly performed, but were never rendered by Gleaton, his companies, or Martinez Brooks’ relative. Based on the fraudulent invoices, the NWCDC issued checks to DMart127, Gleaton’s companies and company belonging to Martinez’s relative totaling $225,666. Martinez Brooks kicked back a substantial amount of those proceeds to Brashear and Bernard.

The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 21, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the Special Prosecutions Division.

Defense counsel: Paulette Pitt Esq., Woodbridge, New Jersey

Source: United States Attorneys General

Headline: Nevada Pastor Pleads Guilty to Stealing Social Security Benefits

SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., pastor pleaded guilty in federal court today to fraudulently receiving more than $90,000 in Social Security disability benefits.

Dennis Engelbrecht, 58, of Nevada, pleaded guilty before U.S. Magistrate Judge David P. Rush to the theft of government money.

Engelbrecht admitted that he was employed as a pastor at Pentecostal Assembly of God Church in Nevada, Mo., while receiving disability benefits over an approximately four-year period. Engelbrecht did not report his work activity to the Social Security Administration, as required.

Although Engelbrecht was paid $650 per week by the church, he received a total of $87,705 in disability payments from February 2011 to May 2015. Additionally, his son received a total of $3,220 in auxiliary benefits to which he was not entitled. (Because Engelbrecht was not entitled to benefits, his son was not entitled to auxiliary benefits.)

Under the terms of today’s plea agreement, Engelbrecht must pay restitution to the government of $90,925.

Engelbrecht has worked as a pastor since 2000. His first application for disability benefits in 2009 was denied, but a second application was approved in 2011. Engelbrecht did not report any current employment on either application.

Under federal statutes, Engelbrecht is subject to a sentence of up to 10 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 defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Social Security Administration, Office of Inspector General.

Source: United States Attorneys General

Headline: Accountant Charged with Conspiring to Defraud the IRS

BOSTON – John H. Nardozzi, a certified public accountant, was charged in an indictment unsealed today with assisting former State Senator Brian Joyce with preparing and filing false income tax returns.

Nardozzi, 66, of Waltham, was indicted on one count of conspiring to defraud the IRS and eight counts of aiding and assisting in the filing of false tax returns.  Nardozzi will appear this afternoon in federal court in Worcester.

The indictment alleges that Nardozzi, Joyce’s accountant, secretly conspired with Joyce and others to defraud the IRS for tax years 2011 to 2014 by:

• Fraudulently deducting millions of dollars of personal expenses for Joyce as legitimate business expenses of Joyce’s corporation, Brian A. Joyce, Attorney at Law, P.C., (“BAJPC”);
• Fraudulently inflating self-employment income for Joyce and his spouse, by more than $2 million in order to maximize retirement plan contributions and falsely reduce taxable personal income;
• Fraudulently reporting a rollover of more than $400,000 in retirement savings when, in fact, it was a taxable event subject to early withdrawal penalties;
• Fraudulently deducting a corporate dividend of approximately $56,000 as a “legal expense” attributable to Joyce in order to falsely reduce the taxable income of BAJPC; and
• Fraudulently omitting a dividend of approximately $100,000 from Joyce’s personal tax return in order to reduce Joyce’s taxable income.

In addition to the conspiracy charge, the indictment also alleges that Nardozzi aided and assisted Joyce in preparing and filing false corporate and personal income tax returns between 2011 and 2014. 

The charge of conspiracy to defraud the United States provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000.  The charge of aiding and assisting in filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of up to $100,000.  Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys William F. Bloomer and Dustin Chao of Lelling’s Public Corruption and Special Prosecutions Unit are prosecuting the case.

The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.