Source: United States Attorneys General

Headline: Federal Jury Finds Pittsburgh-Area Man Guilty of Defrauding Investors of $2 Million, Tax Evasion

PITTSBURGH – After deliberating seven hours, a federal jury of eight men and four women yesterday found Albert P. Majkowski, Jr. guilty of three counts of wire fraud, two counts of tax evasion and two counts of a lesser included offense of failure to file a tax return, United States Attorney Scott W. Brady announced today.

Majkowski, Jr., 59, of Pittsburgh, Pennsylvania, was tried before United States District Judge Reggie B. Walton in Pittsburgh.

According to evidence presented at trial established that Majkowski defrauded potential investors of nearly $2 million over a five-year period by, among other things, making false statements about his own success in “incubating” start-up businesses and misrepresenting that investor monies’ would be used only for legitimate business expenses. He also evaded his income tax obligations for the years 2009 through 2010 by a variety of means including failing to file tax returns, putting his assets into the names of other persons and cashing a series of checks made out in blank. Additionally, he failed to file income tax returns for the years 2007 through 2008. The total loss for the tax charges was $181,456.

Judge Walton scheduled sentencing for May 25, 2018 at 2 p.m. The law provides for a total sentence of 27 years in prison and a fine of up to $250,000, or both, for each wire fraud count and up to five years in prison and a fine of up to $250,000, or both, for each count of tax evasion. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Pending sentencing, the court revoked the defendant’s bond.

Assistant United States Attorneys James Wilson and Shardul Desai are prosecuting this case on behalf of the government.

The Internal Revenue Service, Criminal Investigations, and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Majkowski.

Source: United States Attorneys General

Headline: Three Sentenced in Counterfeit Credit Card Scheme

PITTSBURGH – Three residents of the State of Florida, have been sentenced in federal court on a charge of conspiracy to commit identity theft, United States Attorney Scott W. Brady announced today.

United States District Judge Cathy Bissoon sentenced Raul Perez, age 38, of Miami, FL, to 24 months imprisonment with credit for time served, three years supervised release and restitution in the amount of $14,992.96; Alexis Delgado, age 44, of Hialeah, FL, to 18 months imprisonment with credit for time served, three years supervised release, restitution in the amount of $14,992.96, and a $5,000 fine; and, Leyanis Menendez, age 38, also of 83 Hialeah, FL, to 18 months imprisonment with credit for time served, three years supervised release, restitution in the amount of $14,992.96, and a $5,000 fine.

According to the information presented to the court, Raul Perez, Alexis Delgado, Leyanis Menendez and others conspired to manufacture and traffic-in counterfeit credits cards throughout the United States, which were used to purchase merchandise at stores nationwide, including the outlet stores in Gove City and Washington, PA, in June 2015.

“Incidents of credit card skimming, have reached epidemic proportions and consumers need to be very vigilant about any suspicious or unauthorized activity on their accounts,” said Marlon V. Miller, special agent in charge HSI Philadelphia. “These types of crimes not only result in major losses for financial institutions and merchants, but can cause a major disruption in consumers’ personal finances. HSI will continue to work closely with its federal and local law enforcement partners to target skimming schemes and the criminal syndicates that are behind them.”

Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.

United States Attorney Scott W. Brady commended the Western Pennsylvania Financial Crimes Task Force (WPFCTF), for conducting the investigation that led to the successful prosecution of these defendants. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney’s Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney’s Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.

Source: United States Attorneys General

Headline: FCI-Loretto Inmate Sentenced to 18 Months in Prison following Guilty Plea to Possession of Suboxone

JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and immediately following, was sentenced to 18 months in prison, consecutive to the current prison term he is serving, and three years’ supervised release, United States Attorney Scott W. Brady announced today.

John D. Barnett, Jr., 41, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.

In connection with the guilty plea, on December 24, 2016, Barnett, while an inmate at FCI Loretto, possessed a quantity of Suboxone.

Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.

Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Barnett.

Source: United States Attorneys General

Headline: Elizabeth City Man Sentenced to More Than 21 Years for Drug Distribution and Firearm Charges

NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Monday in federal court, United States District Judge Louise W. Flanagan sentenced JAMES MARVIN POOLE, 33, of Elizabeth City, to 262 months of imprisonment followed by 5 years of supervised release. 

POOLE was named in a 4-Count Criminal Information filed on September 12, 2017.  On that same day, POOLE pled guilty to 3-Counts of Distribution of a Quantity of Heroin and 1-Count of Possession and Brandishing of a Firearm in Furtherance of a Drug Trafficking Crime.

In June 2016, a Confidential Informant (CI) advised law enforcement in Pasquotank County, that he/she had been buying heroin from POOLE for the past year.  The CI also advised law enforcement that POOLE sold and/or stored drugs at two locations in Elizabeth City.  The CI specifically identified an apartment on South Griffin Street and a house on College Street which were connected to POOLE.  

 On June 15, 2016, the CI, working at the direction of law enforcement, arranged to meet with POOLE at the residence on College Street to purchase heroin.  The CI subsequently purchased 1 gram of heroin.  During the recorded conversation, POOLE can be heard discussing his “pistol.” 

On June 21, 2016, CI arranged a controlled purchase of heroin from POOLE.  POOLE subsequently met with the CI at the residence on College Street.  POOLE entered the CI’s vehicle while immediately pulling a semi-automatic pistol out of his waistband and placing it between the CI and POOLE.  POOLE instructed the CI to claim the pistol as his/her own if they were stopped by the police because of his prior felony convictions.  POOLE instructed the CI to drive to the South Griffin Street apartment.  Once there, POOLE exited the vehicle and entered the apartment, returned to the vehicle, and instructed the CI to drive back to the College Street house.  There, the CI purchased 2 grams of heroin from POOLE.

Following the two successful controlled purchases of heroin from POOLE, agents obtained a search warrant for the house and apartment associated with POOLE.  On June 28, 2016, agents entered POOLE’s apartment.  Officers proceeded to the second floor where POOLE was located exiting the bathroom with the toilet still flushing.  A search of the apartment revealed a loaded Glock 9mm pistol with 15 rounds of ammunition.  On March 6, 2017, agents utilized a second Confidential Informant (CI2) to perform an undercover buy from POOLE.  CI2 met with POOLE and subsequently purchased .5 gram of heroin from POOLE. 

On March 9, 2017, agents interviewed a cooperating witness who advised them that he/she had been purchasing 1 gram of heroin per day from POOLE for six months (180 grams of heroin).  A second cooperating witness advised agents on March 8, 2017, that he/she had purchased at least .4 gram of heroin, five days per week, from POOLE for the past 18 months (144 grams of heroin).  A third cooperating witness advised agents on March 29, 2017, that he/she purchased 120 grams of heroin from POOLE between February 2016 and January 2017.

On March 17, 2017, agents arrested POOLE on the federal charges.  POOLE advised agents that he received ½ ounce at a time from his source. Based on the evidence, POOLE is responsible for the distribution of 447.5 grams of heroin.  POOLE also possessed a firearm in connection with the offense.  

The Pasquotank County Sheriff’s Office and the FBI conducted the criminal investigation of this case.  Assistant United States Attorney Bradford Knott handled the prosecution of this case for the government.

Source: United States Attorneys General

Headline: Felon from Carlsbad Sentenced to Prison for Violating Federal Firearms Laws

ALBUQUERQUE – Paul Jay Harry, 33, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 57 months in prison for being a felon in possession of a firearm.  Harry will be on supervised release for three years after completing his prison sentence.

Harry was arrested on Jan. 17, 2017, and was charged by criminal complaint with being a felon in possession of a firearm and ammunition and possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR) on May 2, 2016, in Chaves County, N.M.  According to the complaint, Harry was arrested on an outstanding warrant for failing to comply with probation following a routine traffic stop.  Law enforcement officers subsequently executed a state search warrant on Harry’s vehicle and seized a sawed off rifle, which was not registered to Harry in the NFRTR, ammunition and drug paraphernalia. 

Harry was indicted on April 19, 2017, and was charged with being a felon in possession of a firearm.  According to the indictment, Harry had a prior burglary conviction.

On May 25, 2017, Harry pled guilty to the indictment and admitted that on May 2, 2016, he possessed a short-barreled rifle.  Harry further admitted that he could not legally possess firearms or ammunition because of his convictions in 2009 for vehicle burglary and forgery.

This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roswell Police Department.  Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.

Source: United States Attorneys General

Headline: Calais Woman Sentenced to Two Months for Stealing Social Security Benefits

Bangor, Maine:  United States Attorney Halsey B. Frank announced that Amy Lynn Holmes, 46, of Calais, Maine was sentenced yesterday in U.S District Court by Judge John A. Woodcock, Jr. to two months in prison and three years of supervised release for stealing over $96,000 in Supplemental Security Income (SSI) benefits.  SSI benefits are paid to people with limited income who are blind, disabled or elderly.  Holmes was also ordered to pay $33,821 in restitution.  She pleaded guilty on August 29, 2017.

Court records reveal that between February 2004 and May 2016, Holmes falsely represented to the Social Security Administration (SSA) that she was living alone and not receiving help or money from any person.  In fact, she was living with her husband who was providing her with financial assistance, Florida vacations and vehicles. She told investigators that she knew that she would have been ineligible for SSI if she had disclosed her husband’s income and that they were living together.

“This is a good example of the ongoing efforts by the Federal government to deter fraud against social security programs,” said U.S. Attorney Frank. “The U.S. Attorney’s Office is committed to prosecuting those in Maine who engage in government benefit fraud.  We hope that this prosecution and others like it will discourage people who are tempted to steal government benefits.”

The case was investigated by the SSA, Office of the Inspector General.

Source: United States Attorneys General

Headline: Ohio Man Sentenced to 300 Months in Prison for Sexual Exploitation of Children

BOISE – Timothy Raymond Schmidt, 35, of Cincinnati, Ohio was sentenced today in
United States District Court to 300 months in prison followed by lifetime supervised release, for
sexual exploitation of children, U.S. Attorney Bart M. Davis announced.

According to the plea agreement, from January 28 to April 9 of 2015, the defendant,
while in the State of Ohio, used Skype to communicate with two minor victims, ages seventeen
and thirteen, located in Valley County, Idaho. On at least 12 occasions, the defendant persuaded,
induced, and coerced the seventeen year-old victim to engage in sexually explicit conduct over
live Skype video transmissions. On at least 11 occasions, the defendant persuaded, induced, and
coerced the thirteen year-old victim to engage in sexually explicit conduct over live Skype video
transmissions.

The defendant’s conduct was discovered by adult relatives of the victims and reported to
the Valley County Sheriff’s Office. The case was referred to Homeland Security Investigations
(HSI) and the Idaho Internet Crimes Against Children (ICAC) task force. ICAC detectives
examined the victim’s computer and discovered 33,000 lines of archived Skype chats between
the defendant and both victims, sexually explicit images of both victims, and images of the
defendant. Within the chats, the defendant provided personal identifying information to the
victims, including his name, hometown, his place of work, where he went to college, and a
description of his tattoos. ICAC detectives were also able to identify two locations in Ohio from
where the defendant had engaged in the chats.

In May of 2016, HSI Agents from Idaho and Ohio served a search warrant at one of the
locations in Ohio from where the Skype communications originated. Agents determined that the
defendant currently resided there. They seized computers belonging to the defendant from the
residence.

HSI Agents also contacted a resident of the second location in Ohio where Skype
communications originated from, and confirmed that the defendant had previously stayed at the
residence. Agents observed items in the residence that were consistent with items the victims
reported observing in the background of the defendant’s live chats, including a Darth Vader
statue and model airplanes hanging from the ceiling. An HSI forensic examiner examined the
defendant’s computers and discovered evidence that both had been used to communicate with
the victims via Skype.

Chief U.S. District Judge B. Lynn Winmill also ordered Schmidt to forfeit two laptop
computers used in the commission of the charged offense. As a result of his conviction, Schmidt
will be required to register as a sex offender.

“It’s so important that people realize the reach of online predators. Parents who are
concerned about sexual predators living in the neighborhood should be equally concerned about
online sexual predators living in other states or countries,” U.S. Attorney Davis said. “I
commend the federal, state and local law enforcement agencies and prosecutors, who work so
hard to catch and bring to justice online sex offenders like Mr. Schmidt.” Davis continued.
“This sentence should serve as a powerful reminder to child sex offenders who
mistakenly believe that their actions on the internet or social networks will be undetected by law
enforcement,” said Brad Bench, special agent in charge of HSI Seattle. “HSI works closely with
its federal, state, and local law enforcement partners in Idaho, and across the globe, to hold
accountable those who victimize our vulnerable children.”

The case was investigated by Homeland Security Investigations, the Idaho Internet
Crimes Against Children Task Force, and the Valley County Sheriff’s Office. The 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 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: Two Riviera Beach Men Sentenced for Stealing Sea Turtle Eggs

Two Riviera Beach men were sentenced to prison for stealing sea turtle eggs from a St. Lucie County beach. 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Andrew Aloise, Resident Agent in Charge Florida, U.S. Fish and Wildlife Service (USFWS), and Major Olin Rondeau, Florida Fish and Wildlife Conservation Commission (FWC), Southern Region, made the announcement. 

Carl Lawrence Cobb, 60, of Riviera Beach, was convicted of two counts of transporting sea turtle eggs for the purpose of sale, in violation of the Lacey Act, Title 16, United States Code, Sections 3372(a)(1) and 3373(d)(1)(B). U.S. District Judge Kenneth Marra sentenced Cobb to 7 months in prison, followed by 2 years of supervised release.  He was also ordered to pay $227 in restitution to the State of Florida. 

Raymond Saunders, 50, also of Riviera Beach, was convicted of one count of transporting sea turtle eggs for the purpose of sale, in violation of the Lacey Act, Title 16, United States Code, Sections 3372(a)(1) and 3373(d)(1)(B).  Judge Marra sentenced him to 7 months in prison, followed by 2 years of supervised release, and ordered him to pay restitution in the amount of $227 to the State of Florida. 

According to the court record, on May 5, 2017, a concerned citizen reported to the FWC that a man was disturbing sea turtle nests on North Hutchinson Island.  A law enforcement investigation revealed that Cobb had removed over 200 eggs from two sea turtle nests.  On May 24, 2017, law enforcement officials observed Cobb and Saunders remove approximately 469 sea turtle eggs from nests on North Hutchinson Island.   Cobb and Saunders were arrested as they were transporting the eggs to Palm Beach County. The recovered eggs were relocated by marine biologists in the hope that some of them will yield hatchlings.

Mr. Greenberg commended the investigative efforts of USFWS and the FWC.  This case was prosecuted by Special Assistant United States Attorney Ryan Butler.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov. 

Source: United States Attorneys General

Headline: Florida-Based School Chain To Pay United States Government $600,000 For Submitting False Claims For Federal Student Financial Aid

Florida Technical College, Inc. (“FTC”) will pay the United States $600,000 to resolve False Claims Act allegations that FTC’s Cutler Bay Campus (“FTC-Cutler Bay”) falsely certified compliance with federal student aid programs’ eligibility requirements and submitted claims for 27 ineligible students.

Benjamin G. Green, United States Attorney for the Southern District of Florida, made the announcement.

Title IV of the Higher Education Act of 1965 (“HEA”), as amended, 20 U.S.C. §§ 1070 et seq. (“Title IV, HEA Programs”), authorizes federal student aid programs. The Title IV, HEA Programs, administered by the United States Department of Education, provide students with financial aid in the form of, among other things, Federal Pell Grants and Federal Direct Loans.

“Federal financial aid is meant to help qualified students obtain a quality education from an eligible institution, and we are committed to ensure colleges comply with the rules to make certain that federal financial aid is provided to those individuals it is meant to assist,” said U.S. Attorney Benjamin G. Greenberg.

The United States alleged that certain FTC-Cutler Bay employees engaged in fraudulent practices to induce students to enroll in the school. As a result of those admissions personnel, FTC submitted to the U.S. Department of Education false information regarding the eligibility of 27 FTC-Cutler Bay students to receive Title IV, HEA Program funds. Specifically, FTC-Cutler Bay employees provided false documentation that the students had a high school diploma or its recognized equivalent from a qualified secondary school, when the those students did not have such credential.

In providing such false documentation, FTC-Cutler Bay’s enrollment numbers were falsely increased, and consequently, the amount of federal dollars the school received also increased at the expense of taxpayers and students, who incurred long-term debt. FTC cooperated in the investigation and FTC no longer employs the admissions personnel or their managers involved.

The lawsuit was filed on March 8, 2016, by Laurie Astacio, a former administrative assistant in the FTC-Cutler Bay admissions office. She filed the complaint under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government and receive a share of any recovery. The Act also authorizes the government to intervene in and assume primary responsibility for litigating the lawsuit.

“The Office of Inspector General has a unique and special law enforcement mission – to protect public education funds for eligible students. Today’s settlement is an example of our commitment to this mission,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southern Regional Office. “The OIG will continue to pursue allegations of violations of the False Claims Act in carrying out our important public service.”

This matter was investigated and the settlement negotiated by Assistant U.S. Attorney James A. Weinkle.  The case is captioned U.S. ex rel. Laurie Astacio v. Florida Technical College, Inc., Case No.: 16-20842-CIV-Seitz (S.D. Fla.). The claims settled by this agreement are allegations only, and there has been no determination of liability.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Source: United States Attorneys General

Headline: Clearwater Property Manager Pleads Guilty To Equity Skimming And Bankruptcy Fraud Charges

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Michael Rubino (59, Clearwater) today pleaded guilty to a criminal information charging him with one count of equity skimming and one count of bankruptcy fraud.  He faces a maximum penalty of five years in federal prison for each count. A sentencing date has not yet been set.

According to the plea agreement, Rubino devised a scheme to defraud mortgage lenders holding recorded mortgage notes, as well as the Federal National Mortgage Association (“Fannie Mae”) and the Federal Housing Agency (“FHA”), which guaranteed the mortgage notes. In furtherance of his scheme, Rubino searched the Pinellas County Clerk of Court records to find properties in various stages of foreclosure. He then contacted distressed homeowners who had already defaulted on their mortgages and vacated their properties. Rubino offered to take control of, manage, and rent the properties to new tenants. Rubino told the homeowners that he would use the rental income he obtained to pay the mortgages and, in some instances, pay the homeowner a portion of the rent he collected. At no time did Rubino hold any legal or equitable interest in these properties, or have authorization from the mortgage lenders, Fannie Mae, or FHA, to rent out the properties. Further, he failed to remit any of the collected rent monies to FHA, as required by law. 

Additionally, in order to prevent Fannie Mae and the mortgage lenders from lawfully foreclosing on properties secured by mortgage notes, Rubino engaged in a bankruptcy fraud scheme whereby he filed fraudulent bankruptcy petitions in the names of the distressed homeowners, without their knowledge or consent, just prior to the scheduled foreclosure sale. These fraudulent bankruptcies invoked the automatic stay provision of the bankruptcy code, preventing the mortgage note holders from conducting the foreclosure sale. The fraudulent bankruptcy petitions filed by Rubino allowed him to continue to collect rent monies to which he was not entitled.

This case was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General and the Federal Housing Finance Agency – Office of Inspector General.  It is being prosecuted by Special Assistant United States Attorney Chris Poor.