Source: United States Attorneys General

Headline: Jennings man sentenced to 18 months in prison for posting nude photos online of female victim

LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a Jennings man was sentenced Tuesday to 18 months in prison for posting nude photos online and threatening to post more photos of a female victim.

Christopher Redeaux, 21, of Jennings, La., was sentenced by U.S. District Judge Jay C. Zainey for one count of interstate transmission of an extortionate communication.  He was also sentenced to one year of supervised release.  According to the October 11, 2018 guilty plea, Redeaux obtained nude pictures of a woman and threatened to publish them on the internet if the woman did not provide more photos.  Redeaux posted some of the photos to Facebook using a fictitious account and sent a friend request to the victim and her friends.  Redeaux harassed the victim through an online account and telephone calls.  The victim filed a complaint with McNeese State University Police on December 2, 2015, and Redeaux was arrested on several state charges including cyberstalking, sexual battery and cyberbullying. Redeaux’s cell phone was searched and a folder containing the nude photos of the victim were found.

The FBI, McNeese State University Police and the Greater Houston Regional Computer Forensics Laboratory conducted the investigation.  Assistant U.S. Attorneys Jamilla A. Bynog and T. Forrest Phillips prosecuted the case.

Source: United States Attorneys General

Headline: Ragley woman collects more than $75,000 of deceased mother-in-law’s VA benefits

LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced that a Ragley woman pleaded guilty last week to taking more than $75,000 of her deceased mother-in-law’s benefits.

Vanneta Hudspeth, 57, of Ragley, La., pleaded guilty January 25 before U.S. Magistrate Judge Kathleen Kay to one count of theft of government funds. According to the guilty plea, Hudspeth continued to receive her deceased mother-in-law’s Veterans Affairs benefits from March 2010 to June 2015 that she was not entitled to. Hudspeth made false statements on the mail-in questionnaire in 2014, stating that her mother-in-law was still living and entitled to receive benefits.  Hudspeth collected $75,477.90 in VA benefits after her mother-in-law’s death in March 2010.

Hudspeth faces 10 years in prison, three years of supervised release and a $250,000 fine. The court set sentencing for April 17, 2018.

Veterans Affairs-Office of Inspector General conducted the investigation.  Assistant U.S. Attorney Robert F. Moore is prosecuting the case.

Source: United States Attorneys General

Headline: Contractor Sentenced To 5 Years Probation For Making False Statements And Theft Of Government Funds

U.S. Attorney Duane A. Evans announced that MICHAEL SPEARS, age 53, of New Orleans, was sentenced to five (5) years probation by the Honorable U.S. District Judge Martin L.C. Feldman today for making false statements in violation of 18 U.S.C. § 1001 and theft of government funds in violation of 18 USC § 641.

According to court documents, SPEARS was a contractor for homeowners eligible to receive grants funded by FEMA through the Home Mitigation Grant Program, also known as the HMGP. These grants would allow homeowners to elevate their houses to prevent catastrophic damage from future natural disasters. In  2011  and  2012,  each  elevation  grant  from  HMGP  was  worth  up  to $100,000.00 with contractors and homeowners being entitled to an advanced payment of 80% of the grant prior to a contractor doing any elevation work. The HMGP expected homeowners receiving HMGP grants to commit their $30,000.00 Road Home elevation grant to the total cost of the elevation.

In 2011, SPEARS signed contracts with multiple homeowners in the Eastern District of Louisiana to elevate their homes through the HMGP.  For many of these contracts, SPEARS received advanced payments from the HMGP prior to starting the elevation work. For at least two contracts, the homeowners gave him Road Home elevation funds prior to HGMP approving their grants or giving them an advanced payment. 

However, as of 2013, SPEARS had still failed to do any work on at least 3 properties for which he had received $118,000.00 in federal funds, including the two properties for which he had received the Road Home elevation funds as down payment.  Despite demands, SPEARS has not returned the funds to the government or the homeowners.

Source: United States Attorneys General

Headline: Two Men Illegally Residing in Lexington Convicted of Drug Trafficking, Firearms, and Immigration Offenses

LEXINGTON, Ky. – Two Mexican nationals, illegally residing in Lexington, were convicted by a federal jury yesterday, following a two-day trial in U.S. District Court.  Fernando Rafael Lara Salas, who had previously used the alias of Jesus Ruiz Vega, age 40, and Jorge Macias Pedroza, age 30, were each convicted of conspiracy to distribute more than five kilograms of cocaine, possession with intent to distribute multiple controlled substances, including fentanyl, methamphetamine, and tramadol, as well as being an alien in possession of a firearm.  In addition, Lara Salas was also convicted of possession with intent to distribute more than five kilograms of cocaine, possession of a firearm in furtherance of a drug-trafficking crime, possession of a firearm as a convicted felon, and unlawfully entering the United States after previously being deported for a felony drug possession offense.

The joint investigation by federal and state law enforcement into the drug trafficking activities of both defendants began in August 2016 and culminated with the execution of search warrants, at the homes of both defendants and a cargo trailer used by both men.  The searches resulted in the seizure of 6 kilograms of cocaine, 4 kilograms of tramadol, residual amounts of fentanyl, more than 50 grams of methamphetamine, and two 9 mm firearms.  Lara Salas also had approximately $110,000 in U.S. currency seized from his residence.  Lara Salas was illegally present in the United States at the time of his arrest, due to his prior deportation resulting from a previous conviction on a federal drug possession charge.  Macias Pedroza was also illegally present in the United States at the time of his arrest.  The investigation was a cooperative effort led by investigators with the Drug Enforcement Administration (DEA); the Department of Homeland Security, Immigration and Customs Enforcement (ICE); and the Lexington Police Department.

“The defendants in this case were dealing in massive quantities of dangerous drugs,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.  “The number of overdose deaths in our community continues to rise, and the quantities of illegal drugs involved in this criminal conspiracy were placing many lives in danger.  Without the outstanding work of our law enforcements partners, this prosecution would not have been possible.  Their efforts removed these drugs from our streets, made our community safer, and saved lives.  Prosecuting those who deal in this scourge to our community will continue to be a core priority of our Office.” 

United States Attorney Duncan; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Shawn Byers, Assistant Field Office Director, ICE; and Ron Compton, Acting Chief of Police, Lexington-Fayette County Division of Police, jointly announced the jury’s verdict.

The sentencing hearings for both defendants are currently scheduled for May 4, 2018, at the federal courthouse in Lexington.  Lara Salas faces 25 years to life in prison and Pedroza faces 10 years to life.  The U.S. District Court will consider the U.S. Sentencing Guidelines and the federal statutes before imposing sentence.

Source: United States Attorneys General

Headline: Convicted felon sentenced to 10 years in federal court on ammunition charge

Three prior felonies result in an Evansville man sentenced for illegal possession of ammunition

PRESS RELEASE

Evansville –United States Attorney Josh J. Minkler announced today that an Evansville man was sentenced for possessing ammunition as a convicted felon after being arrested by the Evansville Police Department during a domestic disturbance in 2016. Jason E. Galloway, 40, was sentenced to 120 months (10 years) by U.S. District Judge Richard L. Young after pleading guilty to being a felon in possession of ammunition.  

“Convicted felons have no right to carry firearms or ammunition in the state of Indiana,” said Minkler. “If someone chooses to willfully violate federal law, they will face serious consequences.”

According to a police report generated by the Evansville Police Department, police were called to the 1100 block of North Main Street on January 21, 2016, on a reported domestic violence incident. When officers arrived, they spoke with Galloway’s former wife who stated Galloway had waived a gun around the house, threatened to shoot her, and assaulted her and her minor daughter. Officers found a stolen .22 caliber revolver in the house and a cylinder loaded with eight rounds of ammunition. Galloway left the home before officers arrived, but officers found him behind a nearby gas station with live ammunition in his pocket and placed him under arrest.

Galloway cannot legally possess a firearm or ammunition because he has three felony convictions. The convictions include:

• Manufacturing methamphetamine, Henderson County, Kentucky, in 2000
• Criminal recklessness resulting in serious bodily injury, in Posey County, Indiana, in 2010
• Battery, Vanderburgh County, Indiana, in 2013

This case was investigated by the Evansville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

“ATF is committed to combating gun violence in our communities,” said Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division. “We will continue to work with our law enforcement partners to make Evansville safer for all residents.”

“This should serve as another example to those who wish to create havoc in our community that justice will in turn wreak havoc on their lives,” said Evansville Police Chief Billy Bolin.

According to Assistant United States Attorney Kyle M. Sawa, who is prosecuting this case for the government, Galloway must also pay a $1,000 fine and serve three years of supervised release following his sentence.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged firearm violations in the District’s most violent areas. See United States Attorney’s Office, Southern District of Indiana Strategic Plan  Section 2.2

                          ###

 

Source: United States Attorneys General

Headline: Elkhart Man Sentenced For Receipt Of Child Pornography

SOUTH BEND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Donald J. Meachum, age 21, of Elkhart, Indiana was sentenced before District Court Judge Jon E. DeGuilio for one count of receipt of child pornography. 

Meachum was sentenced to 60 months imprisonment and 5 years of supervised release. 

According to documents in this case, from December 2013 to December 2016, Meachum used his cellular phone to download images and videos of child pornography from the internet.  Some of these videos or images involved minors under the age of 12. 

This case was investigated by the Federal Bureau of Investigation with the assistance of the St. Joseph County Cybercrimes Unit. This case was handled by Assistant U.S. Attorney John M. Maciejczyk.

###

Source: United States Attorneys General

Headline: Franklin County Man Sentenced to 20 Years on Methamphetamine Related Charges

 

Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that a Benton, Illinois man received a 20-year sentence in Federal Court for methamphetamine-related offenses. Kyle D. Osburn, 35, received the sentence after a sentencing hearing conducted earlier today.

Osburn was convicted in October of 2017, following a guilty plea to an indictment alleging he conspired with others to sell the “ice” form of methamphetamine in the Benton and surrounding Franklin County area. Law enforcement officials with several agencies conducted a year-long investigation during 2016 into Osburn’s activities which culminated in his arrest, charges, conviction and sentencing. The facts developed during the investigation, and established during the proceedings, showed that a group of individuals located in the Southern District of Illinois, were engaged in the acquisition and distribution of the “ice” form of methamphetamine. Several law enforcement officers participated in multiple controlled purchases of “ice” from Osburn. Some of those transactions occurred at Osburn’s Benton residence. After a transaction occurring on December 13, 2016, law enforcement agents executed a valid search of the Defendant’s residence and discovered over an ounce of “ice’ methamphetamine.

The investigation in this case was conducted by the Southern Illinois Enforcement Group, the Southern Illinois Drug Task Force, Illinois State Police, the Drug Enforcement Administration, the Franklin County Sheriff’s Office, the Franklin County States Attorney’s Office and the Benton Police Department.

The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.

Source: United States Attorneys General

Headline: Owner, Gire Roofing, Inc., Guilty of Visa Fraud, Harboring Illegal Aliens

SPRINGFIELD, Ill. – In a court filing late yesterday, U.S. District Judge Sue E. Myerscough found Edwin J. Gire, owner of Gire Roofing, Inc., and its corporate parent, Grayson Enterprises, Inc., of Champaign, Ill., guilty on all counts of visa fraud and harboring illegal aliens. In addition, Judge Myerscough’s verdict includes the finding that the business property, located at 309 West Hensley Road, in Champaign, was used to facilitate harboring of illegal aliens and is therefore subject to forfeiture. Sentencing has been scheduled on June 4, 2018.

During six days of trial, in November 2017, the court found that evidence presented by the government established that from 2011 to 2014, Gire, 46, through an immigration attorney, submitted four I-129 petitions to the Department of Homeland Security seeking to hire H-2B visa workers. Attached to each of the four petitions were multiple fraudulent roofing contracts to justify the number of H-2B visa workers requested. Testimony from numerous witnesses at trial established that the contracts detailed roofing jobs that customers never agreed to and contained forged signatures of the alleged customers or their representatives.

Further, the court found that undisputed evidence at trial proved that Gire knew or recklessly disregarded the fact that the three aliens listed in the indictment were not lawfully in the United States. Gire allowed the three aliens to live in a building owned by his company. Gire did this to make the aliens’ employment as roofers for Grayson Enterprises attractive despite the fact that Grayson Enterprises was paying them less than the applicable prevailing wage. By giving the aliens a place to live, the court found that Gire safeguarded the aliens from the authorities by making it more difficult for authorities to locate them.

On Oct. 20, 2017, Gire entered  pleas of guilty to three misdemeanor counts of unlawful employment of aliens.

At sentencing, the statutory penalty for each count of visa fraud and harboring illegal aliens is up to ten years in prison and a $250,000 fine. The unlawful employment of aliens charges carry a penalty of up to six months in prison and a maximum fine of $3,000 for each unauthorized alien employed. 

The charges were investigated by the U.S. Department of State, Diplomatic Security Service; the U.S. Department of Labor, Office of Inspector General; and U.S. Immigration and Customs Enforcement Homeland Security Investigations. Assistant U.S. Attorney Eugene L. Miller and Matthew Weir are prosecuting the case.

Source: United States Attorneys General

Headline: Fraudster sentenced for perpetrating $20 Million investment fraud scheme

ATLANTA – Franklin B. Trell has been sentenced for conspiracy to commit wire fraud, bank fraud, and money laundering.  For over seven years, Trell used myriad corporate entities, complex financial arrangements, doctored financial statements, and false statements to defraud multiple financial institutions and one of Trell’s largest investors out of approximately $20 million dollars.

“Fraud undermines investor confidence and eats at the fabric of our economy,” said U.S. Attorney Byung J. “BJay” Pak.  “We and our law enforcement partners will continue to aggressively root-out and prosecute even the most complicated of investment fraud schemes, while securing convictions and strong sentences that will deter others from ever engaging in similar conduct.”

“Individuals who commit this type of fraud should be punished to the fullest extent of the law as a way of deterring this from happening in the future,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation.  “We will continue to work with our law enforcement partners and the U.S. Attorney’s Office in protecting the sanctity and integrity of legitimate investment ventures.”

“The sentencing of Trell is very little solace for the many victims who have suffered from his criminal activities,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “Even though the defendant has been ordered to pay restitution the victims may never be financially whole again. Hopefully, the punishment will deter others from preying on other unsuspecting investors.”

According to U.S. Attorney Pak, the charges and other information presented in court:  During the timeframe of the conspiracy, Trell and co-defendant Cynthia P. Vinson, on behalf of numerous corporate entities they created, obtained multi-million dollar loans by submitting false statements and invoices to financial institutions about how the money would be spent.  During that time period, Trell and Vinson repeatedly lied to their largest investor for years by falsely representing that Trell was putting up half of the working capital into the various business entities, most of which were in the medical imaging business.  In reality, Trell failed to put in half of the capital and spent much of the investment funds on himself and his family, including spending over $80,000 of the funds on his daughter’s wedding, and over $1.7 million to settle past lawsuits alleging fraud and other misconduct. 

From 2007 to 2010, Trell used investor funds and loan proceeds to settle four lawsuits then pending in Fulton County, Georgia, Superior Court.  He also authorized Vinson to withdraw millions of dollars from the corporate entities, which she used for her personal benefit.  When confronted by his largest investor about the financial state of the corporate entities, Trell presented doctored accounting records and skillfully moved money from one corporate account to another to create the appearance that he was investing money into the businesses as well.  The largest investor gave over $20 million to Trell based on the misrepresentation that Trell was contributing the same amount to the ventures.  In truth, the evidence showed that Trell and Vinson personally profited over $9 million from the scheme. 

From 2006 to 2013, Trell and Vinson used a number of corporate entities to perpetrate their scheme, including MTC Development, LLC; Sunbelt Construction Management, Inc.; Medical Development Group, LLC; Project Personnel Leasing, LLC; MD Office Solutions, LLC; Medical Facility Development Group, LLC; Imaging Center Development Services, LLC; Medical Property Holding, LLC; Medical Software Holding, LLC; Citrus Tower Boulevard Imaging Center, LLC; Palisades at West Paces Imaging Center, LLC: Southcrest Medical Plaza Imaging Center; the Palisades at West Paces Imaging Center, LLC;  Southcrest Medical Plaza Imaging Center; Vinson Holdings, Inc.; Vinson Partners, LLLP; and the Palisades at W. Paces Condo Association, Inc.

Franklin B. Trell, 71, of Atlanta, Georgia, was sentenced by United States District Judge Orinda D. Evans to five years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $20,100,408.25.  Trell was convicted on June 22, 2017, after he pleaded guilty.

Cynthia P. Vinson, 66, of Gay, Georgia, will be sentenced by Judge Evans on March 7, 2018, at 1:00 p.m.  Vinson was convicted on August 3, 2016, after she pleaded guilty.

This case was investigated by Special Agents of IRS Criminal Investigation and the Federal Bureau of Investigation.

Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, and Assistant U.S. Attorney Kamal Ghali, Deputy Chief of the Cyber and Intellectual Property Section, prosecuted the case. 

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Source: United States Attorneys General

Headline: Georgia man sentenced to prison for involvement in stolen identity tax refund fraud scheme

ATLANTA – Jahmir Antoine Robinson has been sentenced to four years, six months in federal prison for running a stolen identity refund fraud (SIRF) scheme after he stole the identities of 153 people, and caused a tax loss of approximately $409,000.

“Thieves never stop looking for ways to take what is not theirs, no matter the harm they cause to people whose identity they stole,” said U.S. Attorney Byung J. “BJay” Pak. “Robinson’s theft affect’s not only the 153 who were targeted, it touches all taxpayers.”

“With the filing season just starting this week, it is important that taxpayer’s keep their identities protected and notify the IRS immediately when someone files their tax return without authorization, “ said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation “We will continue to utilize our resources and work with the U.S. Attorney’s Office in holding those accountable who use stolen identities to file fraudulent tax returns.”

According to U.S. Attorney Pak, the charges and other information presented in court:  From April 2011 through April 2012, Jahmir Robinson ran a scheme to defraud the United States by filing false federal income tax returns using stolen identities. Robinson obtained personal identity information, including names, social security numbers, and dates of birth, of true individuals to file federal tax returns without their authorizations.  To circumvent IRS checks and balances, Robinson obtained Employer Identification Numbers (EINs) from the IRS for 17 individual corporations and filed fictitious Forms 944 so that the IRS database would automatically match employer income tax withholdings against the individual returns.

In total, Robinson used the stolen identities and EINs to file 153 fraudulent individual tax returns with the IRS for tax years 2010 and 2011.  Robinson caused the IRS to disburse refunds to an account he controlled. As a result of the scheme, Robinson caused a tax loss totaling $409,114.27.

Jahmir Antoine Robinson, 35, of Lithonia, Georgia, was sentenced by U.S. District Judge Leigh Martin May to four years, six months in prison in federal prison, four years of supervised release, and ordered to pay $240,033.33 in restitution.  Robinson was convicted on these charges on November 8, 2017, after he pleaded guilty.

This case was investigated by the Internal Revenue Service Criminal Investigation.

Assistant U.S. Attorney Bernita B. Malloy prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016 or the IRS-Criminal investigation Public Information Officer at Joseph.Ziegler@ci.irs.gov or (216) 407-9614.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.