Source: United States Attorneys General

Headline: Former Pacifica Resident Sentenced To Prison For Bank And Tax Fraud

SAN FRANCISCO – Krisinda Messer was sentenced today to 27 months in prison and was ordered to pay $541,617.52 in restitution for bank fraud and making and subscribing a false tax return, announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf.  The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Court Judge, following Messer’s plea of guilty to the charges.

A federal grand jury indicted Messer, 38, of Pope Valley, Calif., and formerly of Pacifica, Calif., on May 12, 2015, charging her with twelve counts of bank fraud, in violation of 18 U.S.C. § 1344(2); four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1); and three counts of making and subscribing false tax returns, in violation of 26 U.S.C. § 7206(1).  On May 10, 2017, Messer pleaded guilty to one count of bank fraud and one count of making and subscribing a false tax return.  

According to the plea agreement, Messer admitted that from 2007 until 2011, she was employed as a bookkeeper by delicatessens in San Francisco.  Beginning in May 2008, and continuing through August 2011, Messer created 130 fraudulent checks totaling $436,396.52, 128 of which were payable by the delicatessens to American Backflow Company, a company owned by Messer’s relative.  American Backflow Company was not a creditor of Messer’s employers and there was no business relationship between them.  Messer forged the signature of the owner of the delicatessens on most of the checks.  In order to conceal these checks from her employer, Messer created a fake company account on QuickBooks and used the fake company to produce checks written to American Backflow Company so that they would not appear in the books.  

In addition to the prison term, Judge Breyer also sentenced the defendant to a three-year period of supervised release.  The defendant will begin serving the sentence on May 1, 2018.  

Assistant U.S. Attorney Cynthia Stier is prosecuting the case.  The prosecution is the result of an investigation by the IRS-CI.  
 

Source: United States Attorneys General

Headline: O.C. Man Charged with Producing Child Pornography and Child Sex Tourism for Allegedly Engaging in Sexual Conduct with Boy in China

         LOS ANGELES – A federal grand jury today named an Aliso Viejo man in an indictment that accuses him of traveling to China to engage in illegal sexual activity with a 16-year-old and taking sexually explicit photographs of the victim.

         Ezequiel Christopher Barragan, 51 – who previously was a Spanish teacher at Dana Hills High School, as well as a youth baseball coach – was charged today in a three-count indictment that accuses him of producing child pornography, traveling with the intent to engage in illicit sexual conduct with a minor, and engaging in illicit sexual conduct with a minor in a foreign place.

         According to the indictment, Barragan traveled to China in August 2009, where he allegedly coerced a boy to engage in sexual conduct “for the purpose of producing a visual depiction of such conduct.”

        The charge of producing child pornography carries a mandatory minimum prison sentence of 15 years and a maximum of 30 years. The charges of international travel and engaging in illicit sexual activity each carry a statutory maximum sentence of 30 years in federal prison.

         An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

        Barragan, who is currently serving a state prison sentence in an unrelated case, will be arraigned on the indictment in the coming weeks. The case against Barragan was investigated by the United States Postal Inspection Service, which received substantial assistance from the Los Angeles Joint Regional Intelligence Center and the Orange County Child Exploitation Task Force.

        This case was indicted by Assistant United States Attorney Vanessa Baehr-Jones of the Violent and Organized Crime Section.

Source: United States Attorneys General

Headline: Oil and Gas Repairman Pleads Guilty to Over $400,000 in Fraudulent Invoices

Oklahoma City, Oklahoma – LUIS ENRIQUE DAMAZO, also known as Luis Enrique Cassinelli, 54, of Oklahoma City, Oklahoma, has pleaded guilty to defrauding a Texas company of more than $400,000 through fraudulent invoices, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.

According to charges filed on December 29, 2017, Damazo was employed as a repair technician by Dexter Field Services LP, a company headquartered in Austin, Texas.  Dexter Field Services provided leak detection, environmental monitoring, and consulting services to industrial clients in the energy sector.  Damazo’s job was to repair toxic vapor analyzers used to detect leaks at oil and gas refineries, which involved ordering replacement parts.  From November 2009 through October 2015, he is alleged to have secretly operated a business known as BC Environmental.  According to the charges, he used that business to prepare fictitious order forms and invoices showing purchases purportedly made on behalf of Dexter Field Services for equipment, replacement parts, and tools.  He is charged with having received more than $400,000 from Dexter Field Services as a result of these fraudulent documents.  He allegedly caused these checks to be deposited in a BC Environmental bank account and used the money for his personal benefit.

Today Damazo admitted these allegations and entered a guilty plea to mail fraud before U.S. District Judge Stephen P. Friot.  As a result, he could be imprisoned for a maximum of twenty years, to be followed by three years of supervised release.  He could also be fined up to $250,000 and will be subject to mandatory restitution.  Sentencing will take place in approximately 90 days.

This case is the result of an investigation by the Federal Bureau of Investigation.  Assistant U.S. Attorneys Jessica L. Perry and William E. Farrior are prosecuting the case.

Reference is made to court filings for further information.

Source: United States Attorneys General

Headline: Arizona Man Charged For Selling Armor Piercing Ammunition To Las Vegas Route 91 Festival Shooter

LAS VEGAS, Nev. – An Arizona man was charged in U.S. District Court in Phoenix today for the manufacture and sale of armor piercing ammunition without a license. He allegedly sold ammunition to Stephen Paddock, who was later identified as the perpetrator of the October 1, 2017 mass shooting in Las Vegas, announced United States Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.

Douglas Haig, 55, of Mesa, Ariz., is charged in a criminal complaint with one-count of conspiracy to manufacture and sell armor piercing ammunition. He appeared this afternoon before U.S. District Court Magistrate Judge Michelle H. Burns and was released on a bond with conditions pending a preliminary hearing on Feb. 15 in Phoenix. If convicted, he faces the statutory maximum penalty of five years in prison, a $250,000 fine, or both.

According to the criminal complaint, Haig met with Paddock on more than one occasion. Paddock met Haig at his home in September of 2017 to purchase ammunition. Haig previously operated “Specialized Military Ammunition,” an Internet business selling high explosive armor piercing incendiary ammunition, armor piercing incendiary ammunition, and armor piercing ammunition. Business records reveal that Haig sold armor piercing ammunition throughout the U.S., including Nevada, Texas, Virginia, Wyoming, and South Carolina. Haig did not have a license to manufacture armor piercing ammunition.

During an interview, Haig told investigators that he reloads ammunition, but does not offer reloaded cartridges for sale to his customers and none of the ammunition recovered in Las Vegas crime scenes would have tool marks on them consistent with his reloading equipment. Reloaded ammunition refers to ammunition that is manufactured from component parts, including previously fired cartridge cases. Based on a forensic examination of rounds recovered in the shooter’s hotel rooms, Haig’s fingerprints were found on reloaded, unfired .308 caliber cartridges. Forensic examination also revealed that armor piercing ammunition recovered inside of the shooter’s rooms had tool marks consistent with Haig’s reloading equipment.

The public is reminded that a criminal complaint contains only a charge and is not evidence of guilt. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The investigation is being conducted by the FBI’s Las Vegas Division with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorneys Cristina D. Silva, Patrick Burns, and Nicholas D. Dickinson.

###

Source: United States Attorneys General

Headline: Seven Sentenced in Money Laundering Scheme Involving Proceeds from Multiple Foreign Scams that Targeted U.S. Victims

In Austin today, a federal judge sentenced two Nigerian citizens and a Houston man to federal prison for their roles in a money laundering conspiracy that collected millions of dollars from victims located across the country, announced United States Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio; Acting Special Agent in Charge Andy Tsui, Internal Revenue Service – Criminal Investigation (IRS-CI); and, Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service, Houston Division.

United States District Judge Sam Sparks sentenced:

• Nathaniel Itimi, a 46-year-old native of Nigeria and current U.S. citizen residing in Houston, to 97 months in federal prison and ordered him to pay, jointly and severally, $1,672,805.51 restitution;
• Lewis Akpomofune, a 41-year-old citizen of Nigeria residing in Houston, to 108 months in federal prison and ordered him to pay, jointly and severally, $1,672,805.51 restitution; and,
• Michael Omoh Okiki, a 37-year-old citizen of Nigeria residing in Houston, to 57 months in federal prison and ordered him to pay, jointly and severally, $1,213,354.94 restitution.

“Today’s sentencing reflects the commitment of the Department of Justice to destroy the money-laundering networks that facilitate fraud against the most vulnerable Americans, such as the elderly,” stated United States Attorney John F. Bash.

Last year, all three defendants pleaded guilty to a charge of conspiracy to commit money laundering.

Four other individuals received federal prison terms in connection with this investigation.  They are:

• Ayibatonye Bienzigha, a 23-year-old citizen of Nigeria residing in New Jersey, received 37 months in federal prison and was ordered to pay $51,307 restitution;
• Eghosa Obaretin, a 30-year-old citizen of Nigeria residing in Austin, received 40 months in federal prison and was ordered to pay $677,303.83 restitution and forfeit $222,000;
• Roland Imoe, a 37-year-old native of Nigeria and current U.S. citizen residing in Austin, ten months in federal prison and ordered to pay $25,632 restitution; and,
• Augustine Ikolo, a 41-year-old citizen of Nigeria residing in Austin, received 97 months in federal prison and ordered to pay $842,970 restitution.

Previously, Obaretin and Imoe pleaded guilty to one count of Passport Fraud; Bienzigha, to one count of conspiracy to commit money laundering; and, Ikolo to one count of conspiracy to commit money laundering.

In December 2017, co-defendant Ochuko Sylvester Eruotor, a 43-year-old resident of Canada and citizen of Nigeria, was extradited from Germany to the United States after being arrested with assistance from Interpol. Yesterday in Austin, Eruotor pleaded guilty to one count of conspiracy to commit money laundering.  He remains in federal custody awaiting sentencing.  No sentencing date has been scheduled.

Court documents showed that this investigation targeted a money laundering network that laundered the proceeds of various fraud schemes perpetrated against U.S. victims by scammers based in Canada, Nigeria, and the United States. The schemes included: “grandson-in-jail” frauds over the phone targeting elderly victims; fake investment scams; business email compromise scams; Stolen Identity Refund Fraud (SIRF) tax filing scams; and, romance victim scams.

The money launderers opened bank accounts, sometimes using fraudulent passports in fake identities, or hired others to open bank accounts in order to facilitate their scheme. Those U.S.-based bank accounts would receive the fraudulently obtained funds from the victims. The U.S.-based conspirators quickly withdrew the money from the bank accounts with a portion of the fraud proceeds kept as a fee. Then the remainder of the funds were sent to Canada or Nigeria. To date, law enforcement has identified in excess of $3.5 million dollars of fraud proceeds from hundreds of victims laundered by the conspiracy.

“Today’s actions will not only bring a sense of justice to the victims in this case, but this significant investigation will also help increase awareness of this type of fraud,” said Shane Folden, Special Agent in Charge, HSI San Antonio.  “To potential victims, we encourage you to be vigilant and if you feel like you are being scammed, please contact law enforcement to report the suspected scam before you make a payment. There are criminals who are always seeking to exploit the vulnerable in our communities for their own personal gain.”

“The defendants who perpetrated this scheme systematically defrauded innocent American citizens,” stated Andy Tsui, IRS Criminal Investigation, Acting Special Agent in Charge, San Antonio Field Office.  “Protecting taxpayer money is a matter we take very seriously.  IRS-Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by creating elaborate money laundering schemes such as this one.”

Agents with HSI, IRS-CI, and U.S. Postal Inspection Service investigated this case.  The United States Marshals Service provided assistance with Eruotor’s extradition.  Assistant United States Attorney Michael C. Galdo prosecuted this case on behalf of the Government.

Source: United States Attorneys General

Headline: Two Austinites Sentenced to Federal Prison on Fraud and Tax Charges

In Austin today, a federal judge sentenced two Austinites to federal prison for defrauding Dell, Inc. and the Internal Revenue Service, announced United States Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio, and IRS-Criminal Investigation Acting Special Agent in Charge Andy Tsui, San Antonio. 

Senior United States District Judge Sam Sparks sentenced 50-year-old Kelly Burton Nunn and 55-year-old Bryan Dale Wallace to 40 months and 26 months in federal prison, respectively, followed by three years of supervised release.  Judge Sparks also ordered that Nunn pay $10,888,122 restitution; Wallace, $849,000 restitution–jointly and severally with Nunn.

“Today’s sentencing is a reminder that the Department of Justice takes fraud against the business community very seriously,” stated United States Attorney John F. Bash.  “Together with our law-enforcement partners, we will remain steadfast in our efforts to protect the American economy from those who seek to profit from deception and dishonesty.”

In November 2017, Nunn pleaded guilty to one count of conspiracy to commit wire fraud and one count of subscribing a false Income Tax Return.  Wallace pleaded guilty to the conspiracy charge. 

According to court records, Kelly Nunn and Bryan Wallace conspired from January 2007 to August 2012 to defraud Nunn’s employer, Dell, Inc. (Dell), by charging Dell for services Dell did not receive or excessive amounts for services that Dell did receive.  Nunn and Wallace submitted numerous fraudulent invoices under the business name of Bison Services (Bison) for computer-aided-design services related to management of Dell’s business locations.  The defendants admitted that they caused Dell to pay Wallace millions of dollars to which Wallace was not entitled.  Wallace subsequently paid over $1 million to Nunn during the course of their scheme.

“The defendants in this case carried out a lengthy scheme of fraud and deception for their own personal gain,” said FBI Special Agent in Charge Christopher Combs. “The message today is clear – those who seek to line their pockets by defrauding others will be held accountable.”

On November 8, 2017, Kelly’s wife–47-year-old Tobie R. Nunn–pleaded guilty to the same tax charge as her husband.  By pleading guilty, the Nunns admitted that in April 2011, they intentionally filed electronically a fraudulent 2010 Individual Income Tax Return with the IRS that substantially understated their actual income.

Tobie Nunn remains on bond pending sentencing scheduled for 9:00am on February 23, 2018, before Judge Sparks.  She faces up to three years in federal prison. 

FBI agents and IRS-Criminal Investigation agents investigated this case.  Assistant United States Attorney Alan Buie is prosecuting this case on behalf of the Government.

Source: United States Attorneys General

Headline: Former Dallas County Supervision Officer Sentenced to Federal Prison for Bribery Charges

DALLAS — David Delgado, 35, of Dallas, was sentenced yesterday before U.S. District Judge Jane J. Boyle to 37 months in federal prison and ordered to pay $2,900.00 in restitution, following his guilty plea in May 2017 to one count of use of interstate facility to commit travel act.  U.S. Attorney Erin Nealy Cox of the Northern District of Texas made today’s announcement.

According to documents filed in the case, from November 26, 2015 and continuing to May 31, 2016, Delgado was employed as a Dallas County Community Supervision officer (DCCSO). His job involved the monitoring, counseling, and developing and implementing supervision plans for, among others, adult Spanish-speaking individuals who were on court-ordered probation.

During this time period, Delgado supervised an individual who had no legal status in the United States and who was on probation for a Dallas County offense.  Delgado called the probationer into his office and told him/her that he/she still had community service to complete and fees to pay as a condition of his/her probation.  The probationer knew that Delgado’s request was not correct because he/she had receipts showing his/her status was current on payments and community supervision hours, and that no more monies were owed.  Just prior to their last in-person meeting, Delgado told the probationer that he/she had to come up with another $1,600 within eight days or he/she would have to perform additional community service.  Delgado explained the $1,600 would be divided between two others who were supposed to help Delgado waive/prevent the imposition of additional community service hours. The probationer believed that paying Delgado would prevent additional charges against him/her and felt obligated to do so since Delgado was in a position of authority as his/her DCCSO. Thereafter, on a Saturday prior to June 2016, Delgado placed a call to the probationer and arranged a meeting at a Dallas restaurant to collect the bribe payment. During the call, the probationer asked Delgado if he/she could pay half of the $1,600 at the meeting and the other half later. Delgado told the probationer that he needed all of the money at once because he just could not pay one person and not the other that were going assist.  Delgado further explained that to pay in full was for the probationer’s benefit and would help keep immigration officials away.  Delgado warned the probationer that one of his other probationers was picked up by Immigration officials and deported, and that the probationer needed to stay straight.  Delgado and the probationer met as planned and Delgado was paid $1,600.

In addition to the $1,600 Delgado received described above, Delgado also received a total of approximately $1,300 from three other probationers he supervised.

The Federal Bureau of Investigation, Texas Rangers, and the Dallas County Sheriff’s Office investigated the case.  Assistant U.S. Attorneys John Kull and Kate Rumsey prosecuted.

# # #

Source: United States Attorneys General

Headline: Manhattan Man Charged In Connection With Arson At A Manhattan Bar

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Daniel A. Nigro, the Commissioner of the New York City Fire Department (“FDNY”), announced today the arrest of LUIS SAQUICILI in connection with an arson in New York, which occurred on the evening on January 31, 2018.  It is alleged that SAQUICILI threw a glass bottle with ignitable liquid and a lit wick, commonly known as a “Molotov cocktail,” into a bar in East Harlem.  SAQUICILI was arrested this morning, and presented today in Manhattan federal court before the Honorable Kevin N. Fox.

Manhattan U.S. Geoffrey S. Berman said:  “As alleged, Luis Saquicili put the public at grave risk when he threw an incendiary device into a bar that was open for business.  Thanks to the Strategic Explosive and Arson Response Task Force, shortly after this incident, Saquicili was located and arrested.”

ATF Special Agent-in-Charge Ashan M. Benedict said:  “The alleged actions of Luis Saquicili could have resulted in damage, destruction and death for many innocent people.  Thanks to the efforts of the Agents, Detectives and Fire Marshals assigned to the ATF/ NYPD/FDNY Strategic Explosive and Arson Response Task Force, Mr. Saquicili was quickly apprehended and brought to justice. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting this case.”  

Police Commissioner James P. O’Neill said: “This defendant is accused to hurling a Molotov cocktail into an East Harlem bar that was open for business. He put the lives of civilians and first responders at risk, so I want to thank those who responded to and investigated this act of arson for their hard work to bring this dangerous individual to justice.”

Fire Commissioner Daniel A. Nigro said:  “Without question, this fire could have resulted in many lives lost.  I applaud our Fire Marshals and the members of the NYPD and ATF for their quick work and collaboration to apprehend this suspect.”

Accordingly to allegations in the Complaint filed in Manhattan federal court.[1] 

On January 31, 2018, at approximately 8:00 p.m., SAQUICILI entered a bar in New York, where he had been a patron for over one year.  He was refused entry by the owner of the bar because he was heavily intoxicated.  At approximately 10:45 p.m., SAQUICILI returned to the bar and threw a glass bottle that contained an ignitable fluid and lit wick onto the floor of the bar.  The bottle broke causing a fire and charring the floor of the bar.   

Mr. Berman praised the outstanding work of the Strategic Explosive and Arson Response Task Force of the ATF, the NYPD, and the FDNY.

*                *                *

SAQUICILI, 46, of New York, New York, is charged with one count of arson, which carries a mandatory minimum of five years in prison and a maximum 20 years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorney Jamie E. Bagliebter is in charge of the prosecution. 

The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty. 

Source: United States Attorneys General

Headline: Carlsbad Woman Arraigned on Federal Wire Fraud Charges Arising Out of $800,000 Embezzlement Scheme

ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI, and Eddy County Sheriff Mark Cage announced the arraignment of Lori V. Whitaker, 54, of Carlsbad, N.M., on wire fraud charges at the federal courthouse in Las Cruces, N.M.

Whitaker was arraigned this morning on a 75-count indictment charging her with perpetrating a scheme to defraud her former employer, the Otis Mutual Domestic Water Consumers and Sewage Works Association (Association), out of approximately $800,000.00 over a two-year period.  The indictment charges Whitaker with 75 counts of wire fraud alleging that she fraudulently transmitted funds by means of wire communications between March 27, 2015 and Feb. 3, 2017, as part of a scheme to defraud the Association.  The funds involved in the 75 transactions charged range from $416.00 to $15,746.64.  During today’s arraignment hearing, Whitaker entered a not guilty plea and was released pending trial, which has not been scheduled, under pretrial supervision and other conditions of release.

 “This indictment reflects the Justice Department’s commitment to investigate and prosecute fraudulent conduct that adversely impacts the lives of innocent victims,” said Acting U.S. Attorney Tierney.

 “The scope of these charges shows the determination of the FBI to work with our partners to make sure justice is done,” said FBI Special Agent in Charge Wade.  “I am proud of the FBI agents and staff who worked with the U.S. Attorney’s Office and Eddy County Sheriff’s Office on this case.”

Eddy County Sheriff Cage said, “This indictment brings us another step closer to bringing closure to the people who rely on the Otis water co-op for potable water and irrigation.  The Eddy County Sheriff’s Office is grateful to the FBI for partnering with us and applying their resources and expertise to this complex case, and we look forward to continuing to work with the FBI and the U.S. Attorney’s Office as the prosecution moves forward.”

According to the indictment, Whitaker was employed by the Association, a non-profit special purpose government association that provided potable water and a wastewater system to more than 4300 people in Otis, N.M., in Eddy County, as its office manager from 2003 through April 2017.  The indictment alleges that, as the Association’s office manager, Whitaker was responsible for controlling the Association’s finances, had access to the Association’s payroll account, and received a company credit card intended for use for Association-related expenses. 

The indictment alleges that from March 2015 through Feb. 2017, Whitaker perpetrated a scheme to defraud the Association through which she embezzled approximately $800,000.00 of the Association’s funds for her personal use.  According to the indictment, Whitaker executed the scheme to defraud in two ways.  First, Whitaker allegedly defrauded the Association by using its credit card account for personal purposes unrelated to the Association’s business.  To this end, the indictment alleges that Whitaker repeatedly used the credit card to obtain cash advances and initiate other charges at casinos, which she allegedly was not authorized to do.  Second, Whitaker allegedly defrauded the Association by paying off credit card balances through frequent, but unauthorized, online transfers from the Association’s payroll account.

The indictment includes forfeiture provisions, which seek forfeiture to the United States of any property or proceeds derived from the crimes charged in the indictment.  It also seeks the entry of a money judgment against Whitaker in the amount of $800,000.00.

If convicted, Whitaker faces a maximum statutory penalty of 20 years of imprisonment.  Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.

This case was investigated by the FBI office in Las Cruces with assistance from the Eddy County Sheriff’s Office.  Assistant U.S. Attorneys John A. Balla and Richard C. Williams are prosecuting the case.

Whitaker Indictment

Source: United States Attorneys General

Headline: Illinois Man Charged with Operating Unemployment Benefits Fraud and Identity Theft Scheme

John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford returned an indictment yesterday charging RICHARD M. LACH, 31, of Richton Park, Illinois, with six counts of wire fraud and one count of aggravated identity theft stemming from a scheme to defraud state unemployment insurance programs in Connecticut and several other states.

LACH was arrested this morning in Matteson, Illinois.  He appeared today in U.S. District Court for the Northern District of Illinois, in Chicago, and was order detained pending his removal to the District of Connecticut.

According to the indictment, LACH fraudulently filed claims with the Connecticut Department of Labor for unemployment benefits in the names of identity theft victims, using their names, dates of birth and social security numbers.  LACH directed that the unemployment benefits be directly deposited to Green Dot debit cards he was using.  The Green Dot cards had been fraudulently opened in the names of other victims.  In some cases, based on the fraudulent claims, unemployment benefits were deposited to the Green Dot cards.  LACH then withdrew the funds or otherwise spent the funds for his own personal use and benefit.

The indictment further alleges that in addition to fraudulently obtaining unemployment benefits from the Connecticut Department of Labor, LACH also fraudulently obtained or attempted to obtain unemployment benefits from agencies in other states, including Idaho, Iowa, Maine, New Jersey, New York, Pennsylvania and Texas. 

Each count of wire fraud carries a maximum term of imprisonment of 20 years and aggravated identity theft carries a mandatory consecutive two-year term of imprisonment

U.S. Attorney Durham stressed that an indictment is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor, New York State Department of Labor, and Madison (Illinois) Police Department.  The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.