Northern District of California

OAKLAND – Raymond David Lopez was sentenced today to 51 months in prison for a string of bank robberies he committed in May and June of 2012, announced United States Attorney Melinda Haag.

Lopez pleaded guilty on April 3, 2013, to six counts of bank robbery. According to the plea agreement, Lopez admitted to robbing the following banks of the amounts, and on the dates, listed below by using verbal demands, a demand note, and intimidation:

• $2,475 from a U.S. Bank branch in Pleasanton, California, on May 9, 2012
• $2,606 from a U.S. Bank branch in Pleasant Hill, California, on May 13, 2012
• $1,409 from a First Community Bank branch in Alameda, California, on May 26, 2012
• $1,135 from a Bank of America branch in Lafayette, California, on May 29, 2012
• $4,900 from a U.S. Bank branch in Alameda, California, on June 4, 2012
• $756 from a U.S. Bank branch in Dublin, California, on June 12, 2012

Lopez also admitted to the following bank robberies outside of the Northern District of California, which he accomplished in similar fashion:

• $7,214 from a River City Bank branch in Roseville, California, on April 26, 2012
• $3,542 from another River City Bank branch on May 2, 2012
• $4,000 from a Woodforest National Bank branch in Amarillo, Texas, on April 14, 2012

All stolen funds were insured by the FDIC.

Mr. Lopez, 30, of Tucson, Arizona, was indicted by a federal grand jury on August 30, 2012. He was charged in the Indictment with six counts of bank robbery in violation of Title 18, United States Code, Section 2113(a).

The sentence was handed down by the Honorable Phyllis J. Hamilton, U.S. District Court Judge, following a guilty plea to all six counts alleged in the Indictment. Judge Hamilton also sentenced the defendant to a three-year period of supervised release and ordered the defendant to pay a total of $28,037 in restitution to the victim banks. The defendant remained in custody and will immediately begin serving the sentence immediately.

Andrew S. Huang and Christina McCall are the Assistant U.S. Attorneys who prosecuted the case with the assistance of Vanessa Vargas. The prosecution is the result of an investigation by the Federal Bureau of Investigation, in conjunction with the Dublin Police Department, Pleasanton Police Department, El Cerrito Police Department, Pleasant Hill Police Department, Alameda Police Department, Contra Costa County Sheriff’s Office, Alameda County Sheriff’s Department, and Roseville Police Department.

(Lopez Indictment )

 

 

OAKLAND - Patrick Fiammetta-McConnell was sentenced today to 157 months in federal prison for carjacking, robbery, possession of methamphetamine for sale, and being a felon in possession of a firearm, announced United States Attorney Melinda Haag.

McConnell, 31, of Oakland, California, pleaded guilty on November 19, 2012, to carjacking, in violation of Title 18 U.S.C. § 2119; interference with commerce by robbery, in violation of Title 18 U.S.C. § 1951(a); possession with intent to distribute 5 grams or more of methamphetamine, in violation of Title 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii); one count of being a felon in possession of a firearm, in violation of Title 18 U.S.C. § 922(g)(1); and one count of being a felon in possession of ammunition, in violation of Title 18 U.S.C. § 922(g)(1).

According to court documents, McConnell admitted that on July 27, 2011, he and codefendant Ismael Eduardo Axtle each used a firearm in the course of a carjacking and robbery of a San Francisco parking garage employee. Days after this incident, on August 1, 2011, McConnell was caught with a stolen vehicle and 40 rounds of .40 caliber ammunition. McConnell initially fled on foot from law enforcement officers, but was ultimately apprehended carrying several baggies of methamphetamine which he admitted he was planning to sell. Officers later found a .40 caliber handgun in the trunk of yet another stolen vehicle in McConnell’s possession.

United States District Court Judge Saundra Brown Armstrong imposed McConnell's 157-month sentence and ordered him to begin serving his time immediately. Judge Armstrong also sentenced McConnell to 4 years of supervised release to follow his term of imprisonment. Axtle pleaded guilty on May 14, 2013, to robbing the parking garage as well as other unrelated crimes, and is scheduled to be sentenced by Judge Armstrong on July 30, 2013.

Brigid Martin of is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathleen Turner. The conviction and sentence were the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Alameda County Regional Auto Theft Task Force, California Highway Patrol, Oakland Police Department, and San Francisco Police Department.

 

 

SAN FRANCISCO – Hasan Ibrahim was convicted by a federal jury today of attempting to place destructive substances on an airplane, United States Attorney Melinda Haag announced.

The jury found that the defendant willfully intended to place nine different hazardous materials on a Lufthansa passenger airplane bound for Frankfurt, Germany. The hazardous materials were ultimately destined for Jeddah, Saudi Arabia. In related charges, the jury convicted Ibrahim of failing to properly label the packages containing the hazardous materials and failing to complete the requisite shipping papers as required by the Department of Transportation. The guilty verdict followed a six-day jury trial before the Honorable Edward M. Chen, U.S. District Court Judge.

Evidence at trial established that Ibrahim, 62, of Los Gatos, California, doing business as MechChem Corporation, ordered and shipped hazardous materials for over ten years. Many of the chemicals the defendant handled were flammable, corrosive, and highly toxic. As a result of their dangerous properties, many of the chemicals were forbidden by transport on a passenger airplane, and two chemicals in particular were forbidden by transport on any aircraft.

In all, the jury convicted Ibrahim of nine counts of attempting to place destructive substances on an aircraft, in violation of 18 U.S.C. § 32(a)(2); ten counts of shipping hazardous materials without the proper shipping papers and without the proper labels, in violation of 49 U.S.C. § 5124(c) and (d); one count of failing to file required export information, in violation of 13 U.S.C. § 305(a)(1); and two counts of attempting to smuggle goods, in violation of 18 U.S.C. § 554(a).

Ibrahim remains out of custody pending the sentencing hearing.

Ibrahim’s sentencing hearing is scheduled for October 9, 2013, before Judge Edward M. Chen in San Francisco. The maximum statutory penalty for each count of attempting to place a destructive substance on an airplane in violation of 18 U.S.C. § 32(a)(2) is 20 years in prison and a fine of $250,000. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Peter Axelrod and Brian Stretch are the Assistant U.S. Attorneys who are prosecuting the case with the aid of legal assistant Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the United States Department of Transportation, Office of Inspector General, the Federal Aviation Administration, the United States Customs and Border Protection, and the United States Department of Commerce, Bureau of Industry and Security.

 

 

OAKLAND – Ana Lissa Reyes pleaded guilty in federal court in Oakland today to mail fraud and tax evasion, announced United States Attorney Melinda Haag.

In pleading guilty, Reyes admitted to having worked as a secretary, office manager, and paralegal for a Bay Area law firm. Reyes admitted that from about 2006 through June 2011, she, without authorization, settled claims without the knowledge of the law firm or its clients and stole the settlement proceeds. Reyes admitted to engaging clients without the law firm’s knowledge and to stealing clients’ retainer fee payments. Reyes also admitted that in carrying out the scheme to defraud, she created a bogus company, Lincoln Litigation, to correspond with clients without the law firm’s knowledge, and to defraud the clients into believing that their cases were ongoing. Reyes admitted to embezzling a total of $327,795.05 from the law firm and its clients.

Reyes also admitted to under-reporting her income for the calendar years 2006 through 2011. For each of these tax years, Reyes admitted that she knew her joint taxable income was substantially in excess of the amount stated on the return, resulting in additional tax due and owing to the United States.

Reyes, 42, of San Lorenzo, California, was charged by an information on January 25, 2013 with five counts of mail fraud in violation of Title 18 U.S.C. § 1341, and six counts of tax evasion in violation of Title 26 U.S.C. § 7201. Reyes is currently on pre-trial release on a $100,000 bond.

Reyes’ sentencing hearing is scheduled for October 10, 2013 at 2:00 p.m. before the Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge, in Oakland. The maximum statutory penalty for each count of mail fraud, in violation of Title 18 U.S.C. § 1341, is 20 years’ imprisonment and a fine of $250,000, plus restitution. The maximum statutory penalty for each count of tax evasion, in violation of Title 26 U.S.C. § 7201, is 6 years’ imprisonment and a fine of $250,000, plus restitution. 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.

Wade Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Legal Assistant Janice Pagsanjan and Paralegal Patty Lau. The prosecution is the result of a year-long investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.

 

 

SAN FRANCISCO, Calif. – John Kieran Hynes was sentenced today to 5 months in prison for filing a false tax return, announced United States Attorney Melinda Haag and IRS-CI Special Agent in Charge José M. Martinez.

According to court documents, during 2005, Hynes was the owner of Newtown Construction. Hynes admitted that when he received check payments for contracted construction services rendered during the 2005 tax year, he would either deposit the entire check into his business bank account, cash the entire amount of the check, or cash a portion of the check and deposit the remainder of the check into his business account. The amount Hynes received back in cash when he deposited only a portion of the check was called a “less-cash withdrawal.”

Hynes’ bookkeeper relied on the deposited amounts shown on his monthly bank statements to determine his gross business receipts in 2005. Hynes intentionally did not tell his bookkeeper about the less-cash withdrawals to prevent his bookkeeper from including the less-cash withdrawal amounts among the gross receipts that the bookkeeper tracked in the company accounting records.

In order to file his 2005 tax return, Hynes provided his tax return preparer with the company accounting records prepared by his bookkeeper. Hynes knew those accounting records understated the gross receipts earned under the name Newtown Construction because the gross receipts recorded did not include the less-cash withdrawals.

On his 2005 tax return, Hynes knowingly failed to report additional gross receipts of $214,595 earned by Newtown Construction which resulted in a tax loss to the United States of $66,524.

On March 12, 2013, Hynes, 46, of San Anselmo, California, pleaded guilty to one count of filing a false tax return.

In addition to 5 months imprisonment, the Court imposed one year of supervised release including 5 months of home detention, a $3,000 fine, and restitution of $66,524, to the Internal Revenue Service.

Special Assistant United States Attorney Charles Parker is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.

 

 

OAKLAND, Calif. – Muzaffar Hussain, of Hayward, was charged on June 25, 2013 with four counts of tax evasion, 13 counts of filing a false tax return, 18 counts of willful failure to truthfully account for and pay payroll taxes, and nine counts of structuring transactions to evade reporting requirements, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation (IRS-CI) Special Agent in Charge José M. Martinez.

According to the indictment, between July 2004 and December 2008, Hussain owned and operated Cross Roads Health Care and Hospice, Inc. (Cross Roads). As the corporate officer, he was responsible for collecting, accounting for and paying over Cross Roads’ employment withholdings taxes to the IRS. For a period of 18 quarters, Hussain failed to truthfully account for and pay over the required withholdings taxes to the IRS, in the amount of $534,728.15.

It is further alleged that Hussain filed tax returns with understated income for tax years 2005 and 2006, and he failed to file personal income returns altogether for 2007 and 2008. During all four years, according to the indictment, Hussain used corporate funds to pay personal expenses including payments for rent, marriage dissolution obligations, luxury cars, motor-home, and motorcycles in an attempt to conceal from the IRS his true and correct income.

The Indictment further alleges that Hussain signed and filed corporate income tax returns on behalf of three separate home health care providers that omitted gross receipts earned by the businesses. It is alleged that from 2004 through 2008, Hussain omitted gross receipts from the Corporate Income Tax Returns of Cross Roads in the amounts of $506,925, $795,384, $901,794, $372,930 and $312,992. From 2004 through 2006, Hussain allegedly omitted gross receipts from the Corporate Income Tax Returns he signed on behalf of Horizon Health Care, Inc. in the amounts of $264,928, $603,702 and $157,285. The indictment also alleges that from 2004 through 2008, Hussain omitted gross receipts from the Corporate Income Tax Returns of Sunshine Home Health Care, Inc. in the amounts of $363,917, $648,197, $140,390, $736,542 and $277,968.

The Indictment further alleges that between March 6, 2010, and May 24, 2010, Hussain knowingly structured money transactions for the purpose of evading reporting requirements.

The maximum statutory penalty for each count of tax evasion, in violation of Title 26, U.S.C § 7201 is five years in prison and a fine of $250,000. The maximum penalty for willful failure to collect or pay over taxes in violation of Title 26, U.S.C § 7202 is five years in prison and a fine of $250,000. The maximum statutory penalty for each count of filing a false tax return, in violation of Title 26, U.S.C § 7206(1) is three years in prison and a fine of $250,000. The maximum statutory penalty for each count of structuring transactions to evade the reporting requirement, in violation of Title 31, U.S.C § 5324(a)(3) is five years in prison and a fine of $250,000.

Special Assistant U.S. Attorney Charles Parker is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.

 

 

SAN FRANCISCO - A federal grand jury in San Francisco has returned a superseding indictment against Jonathan Mota, 31, for murder caused by a firearm; for Hobbs Act robbery, a crime of violence; and for use and possession of a firearm in furtherance of that robbery, announced United States Attorney Melinda Haag.

According to the superseding indictment, Mota is alleged to have robbed the Mount Konocti Gas & Mart on January 18, 2013. During the course of that robbery, the defendant shot and killed Forrest Seagrave.

“We take our responsibility to the residents of Lake County, and the entire Northern District of California, seriously,” said U.S. Attorney Melinda Haag. ”Therefore, when the Lake County District Attorney and Sheriff requested federal law enforcement coordination on this investigation, I am quite pleased that we were able to come together and focus the necessary resources on the investigation, and now prosecution, of this senseless violent crime.”

“ATF focuses its efforts on individuals who unlawfully possess or use firearms," said Special Agent in Charge Joseph M Riehl. “We appreciate the collaboration with Lake County Sheriff’s Department and District Attorney's Office, and the U.S. Attorney’s Office to perfect this investigation."

“I wish to compliment all of the Lake County investigators for their dogged, non-stop efforts to bring the investigation into the murder of Forrest Seagrave to a close,” said Lake County Sheriff Francisco Rivero. “I also wish to express my deepest gratitude to the United States Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their uncompromising assistance and resources.”

The grand jury has indicted the defendant for his possession of a separate firearm, an assault weapon, during the timeframe of the robbery. He was prohibited from possessing that weapon by virtue of his prior felony conviction for armed robbery. That felon-in-possession case is pending before U.S. District Court Judge Jon Tigar (case No. 13-cr-93). Motions are scheduled to be heard in that case on September 13, 2013 at 9:30 am.

The maximum statutory penalty for use/possession of a firearm in furtherance of the Hobbs Act robbery, a crime of violence, in violation of Title 18 U.S.C. Section 924(c), is life imprisonment and a fine of $250,000. The maximum statutory penalty for the use of the firearm resulting in murder, in violation of Title 18 U.S.C. Section 924(j), is life imprisonment and a fine of $250,000 unless the Attorney General directs the U.S. Attorney to seek the death penalty, in which case the maximum statutory penalty for the murder is death. The maximum statutory penalty for Hobbs Act robbery, in violation of Title 18 U.S.C. Section 1951(a), is 20 years imprisonment and a fine of $250,000. The maximum statutory penalty for being a felon in possession of a firearm, in violation of Title 18 U.S.C. Section 922(g), is 10 years imprisonment and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Kathryn Haun is the Assistant U.S. Attorney who is prosecuting the case with the assistance of the Lake County District Attorney’s Office and with the assistance of Daniel Charlier-Smith and Kurt Kosek of the U.S. Attorney’s Office. The prosecution is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Lake County Sheriff’s Office.

Please note, an indictment contains only allegations against an individual and, as with all defendants, Mota must be presumed innocent unless and until proven guilty.

(Mota Superseding Indictment )

 

 

SAN JOSE - Tara Denise Bonelli was sentenced to 37 months in prison by United States District Judge Edward J. Davila in San Jose, California, on June 25, 2013, for defrauding investors of over $3,000,000, announced United States Attorney Melinda Haag.

On February 12, 2013, Bonelli pleaded guilty in federal court to Wire Fraud, in violation of 18 USC § 1343. Bonelli admitted that, beginning no later than May 2006, and continuing to at least until October 2008, she promoted false and fraudulent real estate investments by knowingly making false promises about how investor funds were to be invested and repaid.

According to her plea, in May 2004, Bonelli founded Vista Holding Company, a holding company that owned and operated eight entities, including Vista Funding, Inc., a pre-foreclosure services company that helped refinance properties or purchased properties to develop, rent, and/or sell; Independent Financial, a company that bought mortgage notes from banks; Equity Advisors, a mortgage company that matched lenders with borrowers; Bonelli Properties, a real estate company; Lost Dollar Services, a company formed to facilitate collection of homeowner overages; Equity Inquiries, a real estate research company; Outlook Enterprises, a development company; and Sovereign Property Management, a property management company. Although Bonelli established all of these entities under Vista Holding Company, she primarily conducted business under Vista Funding Inc., and controlled all of its business transactions.

In furtherance of her scheme, Bonelli told investors that their money would be used to purchase properties for resale or conversion to condominiums, and to engage in the business of foreclosure assistance. In some instances, to lure their investments, Bonelli promised a return of up to 1000%. Rather than use investor money for the stated purpose, Bonelli used some of the investor funds to pay for her personal expenses.

Bonelli, 33, of Santa Cruz, California, was indicted by a federal grand jury on March 16, 2011. She was charged with eighteen counts of Wire Fraud, in violation of 18 United States Code § 1343. Under the plea agreement, Bonelli pleaded guilty to one count that encompassed the loss due to fraud in all of the counts, which was over $3,000,000. The sentencing court also ordered that Bonelli pay restitution in an amount to be settled at a hearing to be held on August 5, 2013, at 3:00 p.m. before Judge Davila in San Jose.

Matt Parrella and Susan Knight are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of a 2-year investigation by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division.

 

 

SAN FRANCISCO - On June 19, 2013, Eric Flentoil pleaded guilty and was sentenced to two years in prison for access device fraud and filing false claims, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigations (IRS-CI) Special Agent in Charge José M. Martinez.

In pleading guilty, Flentoil admitted to filing a false 2011 income tax return using a stolen Social Security number and claiming a tax refund of $2,915. Unknown to Flentoil, the individual to whom the social security number belonged, had made a $40,000 estimated tax payment to the IRS for his 2011 taxes. Therefore, the IRS sent a $40,000 refund check, in the victim’s name, to the address on the false return, which was Flentoil’s home address. Flentoil used the victim’s name and social security number to open a bank account, deposit the $40,000 check, and obtain a debit card to access the funds. From June 1, 2012, through June 11, 2012, Flentoil used the debit card to withdraw funds and make purchases.

Flentoil also filed a false 2011 federal income tax return in his own name, receiving a $2,071 tax refund, to which he was not entitled.

Flentoil, age 31, of San Francisco, was indicted on March 19, 2013. He was charged with access device fraud, filing false claims, and aggravated identity theft. He pleaded guilty to access device fraud and filing false claims.

The sentence was handed down by U.S. District Court Judge Edward Chen following a guilty plea on two counts in violation of filing false claims in violation of Tile 18, United States Code, Section 287 and one count of access device fraud in violation of Title 18, United States Code, Section 1029(a)(2). The Honorable Judge Chen also sentenced the defendant to 3 years of supervised release. Flentoil has been in custody since his arraignment and remains in custody to serve his sentence.

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

(Flentoil Indictment )

 

 

OAKLAND -- Khusar Mobley was convicted by a federal jury yesterday of assault on a federal officer, robbery, and brandishing a firearm during a violent crime, announced United States Attorney Melinda Haag. The guilty verdict followed a four-day jury trial before The Honorable Yvonne Gonzalez Rogers, United States District Court Judge.

Evidence at trial showed that Mobley,19, of Richmond, California, used a loaded firearm in an attempt to rob an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) during an undercover operation. Mobley’s co-defendants – Otis Mobley and D’Marce Hutcherson – pleaded guilty and were sentenced to 114 months and 104 months, respectively, in May 2013.

Mobley was charged by Indictment on April 5, 2012, with one count of Conspiracy to Commit Robbery of Mail, Money, or Other Property of the United States, and Assault on a Federal Officer, in violation of Title 18, United States Code, Section 371; one count of Assault on a Federal Officer with a Deadly Weapon, in violation of Title 18, United States Code, Section 111(b); one count of Robbery of Mail, Money, or Other Property of the United States, in violation of Title 18, United States Code, Section 2114(a); and one count of Using, Carrying, Possessing, and Brandishing a Firearm During a Crime of Violence, in violation of Title 18, United States Code, Section 924(c). He was found guilty on all counts.

Mobley has been in custody since his arrest on March 28, 2013. His sentencing hearing is scheduled for October 23, 2013 before the Honorable Judge Gonzalez Rogers in Oakland. The maximum statutory penalties for each count are as follows:

Count One: 18 U.S.C. § 371 - Conspiracy to Commit Robbery of Mail, Money, or Other Property of United States and Assault on a Federal Officer.

(1)Imprisonment:Maximum 5 Years Imprisonment(2)Fine:Maximum $250,000(3)Supervised Release:Maximum 3 Years

Count Two: 18 U.S.C. § 111(b) - Assault on a Federal Officer with a Deadly or Dangerous Weapon.

(1)Imprisonment:Maximum 20 Years Imprisonment(2)Fine:Maximum $250,000(3)Supervised Release:Maximum 3 Years

Count Three: 18 U.S.C. § 2114(a) - Robbery of Mail, Money, or Other Property of United States.

(1)Imprisonment:Maximum 25 Years Imprisonment(2)Fine:Maximum $250,000(3)Supervised Release:Maximum 3 Years

Count Four: 18 U.S.C. § 924(c)(1)(A)(ii) - Using, Carrying and Brandishing a Firearm During and in Relation to a Crime of Violence.

(1)Imprisonment:Maximum Life Imprisonment
Mandatory Minimum 7 Years Imprisonment Consecutive To Any Other Term Of Imprisonment(2)Fine:$250,000(3)Supervised Release:Maximum 5 Years

However, any sentence following this conviction 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.

James Mann and Natalie Lee are the Assistant U.S. Attorneys who prosecuted this case with the assistance of Patty Lau, Vanessa Vargas, and Katie Turner. The prosecution is the result of an investigation by the ATF and various local police departments.

 

 

Oakland, Calif. – Naushad Buksh was sentenced yesterday to 24 months in prison for filing a false tax return and assisting in the preparation of a false tax returns, announced United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge José M. Martínez.

Buksh pleaded guilty on January 24, 2013. According to his plea agreement, Buksh has prepared tax returns for approximately 20 years. During 2007, 2008, 2009, and 2010, he operated a tax return preparation business in Hayward, California, and was responsible for all income and expenses of the business. His taxable income earned from this business was $116,387, $134,843, $178,167, and $210,683, respectively. Buksh intentionally omitted this income from his tax returns, which resulted in a tax loss of $160,528.

Buksh admitted in his plea that, in addition to filing false returns for himself, he also prepared tax returns on behalf of his clients that included false deductions and credits for the purpose of creating fraudulent tax refunds. Buksh admitted that knew the deductions and credits were false because he fabricated them. Specifically, some of the false deductions and credits included home mortgage interest and points, unreimbursed employee expenses, inflated education credits, student loan interest and/or tuition fee deductions, false personal property tax deductions, and false or inflated tax preparation fees. By adding these false claims to his clients’ tax returns he caused a tax loss to the government totaling $109,077.

Buksh is scheduled to self-surrender to the custody of the U.S. Marshalls on August 20, 2013.

Special Assistant U.S. Attorney Charles Parker and Assistant U.S. Attorney Thomas Moore are prosecuting the case. The prosecution is the result of an investigation by IRS-CI.

(Buksh Indictment )

 

 

OAKLAND, Calif. - A federal grand jury in Oakland indicted James Quindale Page today with six counts of bank robbery, announced United States Attorney Melinda Haag.

The indictment alleges that James Quindale Page, 42, of Pittsburg, robbed the following banks:

Date

Bank

Location

Amount Stolen

3/6/2013

Chase Bank

1510 Palos Verdes Mall, Walnut Creek

$1,856

3/12/2013

Wells Fargo

4767 Hopyard Road, Pleasanton

$670

5/29/2013

Bank of America

2545 Main Street, Oakley

$1,507

6/3/2013

Chase

5747 Christie Avenue, Emeryville

$7,033

6/7/2013

US Bank

3636 Lone Tree Way, Antioch

$1,280

6/8/2013

Wells Fargo

3525 Mount Diablo Boulevard, Lafayette

$5,450

Page was arrested on June 10, 2013, and made his initial appearance in federal court in Oakland on June 13, 2013. Page is currently in custody. His next scheduled appearance is at 9:30 a.m. on June 27, 2013, for arraignment on the indictment before U.S. Magistrate Judge Donna M. Ryu.

The maximum statutory penalty for each count of bank robbery in violation of 18 U.S.C. § 2113(a) is 20 years in prison. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI, the Walnut Creek Police Department, the Pleasanton Police Department, the Antioch Police Department, the Oakley Police Department, the Emeryville Police Department, and the Lafayette Police Department.

Please note, an indictment contains only allegations against an individual and, as with all defendants, Page must be presumed innocent unless and until proven guilty.

(Page Complaint )

(Page Indictment )

 

 

OAKLAND – Gary Casdell Fite, II, pleaded guilty in federal court yesterday to armed bank robbery and brandishing a firearm in furtherance of that crime, announced United States Attorney Melinda Haag.

In pleading guilty, Fite admitted to robbing the Mechanics Bank on Pinole Valley Boulevard in Pinole, Calif., on March 1, 2013. According to the plea agreement, Fite jumped over the teller counter and demanded money from two victim tellers. While demanding money, Fite pointed his loaded gun at the head of one of the tellers. Fite stole $3,292 from the bank.

Fite, 23, of Oakland, was indicted by a federal Grand Jury on March 28, 2013. He was charged with armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d), and brandishing a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A)(ii). Under the plea agreement, Fite pleaded guilty to both counts. Co-defendant and getaway driver Regina Dean, 37, of Antioch, pleaded guilty on May 15, 2013, to aiding and abetting the armed robbery, without a plea agreement.

Fite is currently in federal custody. His sentencing hearing is scheduled for September 4, 2013, before U.S. District Court Judge Phyllis J. Hamilton. Dean’s sentencing hearing is scheduled for August 21, 2013. The maximum sentence for armed bank robbery is 25 years in prison, and the maximum sentence for brandishing a firearm during and in relation to a crime of violence is life in prison, with a minimum sentence of 7 years. 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.

Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI.

 

 

 

 

 

SAN FRANCISCO - A federal indictment charging Martin Christopher Edwards with twenty-three counts of mail fraud, wire fraud, and money laundering was unsealed this morning in federal court, announced United States Attorney Melinda Haag.

Edwards, 48, of Napa, California, was indicted by a federal grand jury on May 30, 2013. According to the Indictment, Edwards, the former Vice President and General Manager of The Wine Tasting Network (WTN), is alleged to have created a fictitious entity, Dufrane Compliance Trust, that purported to provide tax compliance services to WTN. In his role at WTN, Edwards allegedly created fraudulent invoices and directed WTN to make multiple payments to Dufrane Compliance Trust between May 2010 and approximately October 2012, totaling approximately $900,000. Edwards allegedly deposited these funds into an account he controlled and withdrew them for his own personal use, including the purchase of a BMW.

Edwards failed to appear at his initial appearance this morning in U.S. District Court in San Francisco. Therefore, Edwards is currently considered a fugitive. If anyone has information on Edwards’ whereabouts, please call the San Francisco field office of the FBI at (415) 553-7400.

The maximum statutory penalty for each count of mail fraud and wire fraud, in violation of Title 18, United States Code, Sections 1341 and 1343, respectively, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The maximum statutory penalty for each count of money laundering, in violation of Title 18, United States Code, Section 1957, is 10 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. However, any sentence following conviction would 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.

Katherine B. Dowling and Arvon Perteet are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rawaty Yim and Hector Lopez. The prosecution is the result of a two month investigation by the Federal Bureau of Investigation.

Please note, an indictment contains only allegations against an individual and, as with all defendants, Edwards must be presumed innocent unless and until proven guilty.

(Edwards Indictment )

(Edwards Photograph)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND, Calif. – Amy Nicole Schloemann, aka Amy Kinney, was sentenced this week to 36 months in prison and ordered to pay $5,805,902 in restitution for her role in a real-estate related wire fraud conspiracy, announced United States Attorney Melinda Haag.

Schloemann pleaded guilty on August 22, 2012, to conspiracy to commit wire fraud, in violation of 18 United States Code Section 1349. According to court documents, Schloemann was the president of Hiddenbrooke Mortgage Company, a real estate and mortgage brokerage company in operation from 2005 through 2007 in Vallejo, California. Between 2006 and July 2007, Schloemann conspired with others to purchase more than 18 properties in the Northern and Eastern Districts of California in the names of fictitious identities and using straw buyers. As part of the conspiracy Schloemann supervised others who processed loan packages with materially false information, including contracts that reflected inflated sales prices above the original sales prices.

The purchase loans, which were 100% financed, exceeded the sales prices received by the sellers. The excess amounts from the loan proceeds, or “profits” from the transactions, were dispersed through escrow to entities controlled in part by Schloemann. All but a few of the properties involved in the conspiracy were foreclosed due to the failure to make mortgage payments. The lenders sustained significant losses as a result of the fraud.

Schloemann, age 36, of Vallejo, was indicted by a federal grand jury on October 9, 2009. She was charged with conspiracy to commit wire fraud, wire fraud, and money laundering.

The sentence was handed down by U.S. District Court Judge Phyllis J. Hamilton, following the defendant’s guilty plea. Judge Hamilton also sentenced the defendant to a 3-year period of supervised release. Schloemann, who has been out of custody on bond since November 2009, will begin serving her sentence on July 29, 2013.

Assistant U.S. Attorney Christina Marie McCall is the attorney who prosecuted the case with the assistance of Noble Hughes and Kathleen Turner. The prosecution is the result of an investigation by the IRS-Criminal Investigation with the assistance of the Alameda County District Attorney’s Office and the Federal Bureau of Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND, Calif. – Angela Pellette pleaded guilty yesterday to conspiring to file false claims with the IRS, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.

According to her plea agreement, beginning in August 2008, Pellette helped obtain tax refunds from the IRS based on false tax returns that she filed. In order to carry out the scheme, Pellette asked others to provide their personal identifying information for use in false returns. Pellette knew that the returns she filed were false because, in many instances, the person whose name appeared on the tax returns did not supply the information reported on the tax return.

Pellette used others individuals’ bank accounts, in addition to her own, to receive the fraudulent refunds. When the fraudulent tax refunds were issued, Pellette and the account holder split the proceeds if Pellette’s personal account was not used.

Pellette, 54, was indicted on July 12, 2012. Her sentencing hearing is scheduled for September 18, 2013, in front of The Honorable Charles R. Breyer, U.S. District Court Judge. The maximum statutory penalty for conspiracy to file false claims, in violation of Title 18 U.S.C. § 286 is 10 years in prison and a $250,000 fine. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Michael G. Pitman and Thomas Newman are the Assistant U.S. Attorneys who are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO– Alfredo Contreras was sentenced yesterday to 9 years and 2 months in prison for selling methamphetamine, United States Attorney Melinda Haag announced.

Contreras pleaded guilty on March 26, 2013, to violating Title 21, United States Code, section 841(a)(1). According to the plea agreement, Contreras admitted to selling approximately one ounce of methamphetamine to an undercover San Francisco police officer on November 25, 2012. According to court pleadings filed by the government, Contreras had a long criminal history including prior convictions for crimes involving violence and drug trafficking.

Contreras, age 33, of Redwood City, was indicted by a federal grand jury on January 17, 2013, on a single count of violating 21 U.S.C. §§ 841(a)(1) and (b)(1)(B).

The sentence was handed down by The Honorable Richard Seeborg, U.S. District Court Judge. Judge Seeborg also sentenced the defendant to a four-year period of supervised release. The defendant has been in custody since his arrest on November 25, 2012, and will begin serving the sentence on immediately.

The prosecution is the result of an investigation by the San Francisco Police Department and the Department of Homeland Security, Homeland Security Investigations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND – United States Attorney Melinda Haag announced the guilty plea of Elias Gonzalez in a Nuestra Familia racketeering case.

Elias Gonzalez, a/k/a “Hammer”, 30, of Mabton, Washington, pleaded guilty on June 7, 2013, to conspiring to conduct the affairs of a racketeering enterprise, Nuestra Familia, in violation of Title 18, United States Code, Section 1962(d). According to court documents, Nuestra Familia is a violent Latino prison gang based within the California and Federal prison systems whose members exert control over street-level Norteño gang members engaged in drug trafficking and violent crime.

In his guilty plea, Gonzalez admitted that since 2005, he was a member of a Norteño gang in Yakima, Washington, and operated under the direction of members of Nuestra Familia in the Northern District of California. As part of his participation in the racketeering conspiracy, Gonzalez moved portions of the proceeds of his drug trafficking to Nuestra Familia members’ prison accounts. Gonzalez admitted that the racketeering conspiracy involved acts of violence, including assault and murder, against rival gang members and others who defied or betrayed Nuestra Familia, such as individuals who cooperated with law enforcement. The maximum penalties for his crimes include life in prison and $250,000 in fines.

This case is part of Operation Red Dawn, an investigation targeting members and associates of Nuestra Familia,. Operation Red Dawn is an investigation by the FBI’s Safe Streets East Bay Task Force, the Oakland Police Department, the Red Bluff Police Department, the Campbell Police Department, the San Jose Police Department, the Livermore Police Department, and the Special Services Unit of the California Department of Corrections and Rehabilitation. The case is being prosecuted by the Strike Force and Violent Crimes Unit of the United States Attorney’s Office.

Gonzalez is the third of the eleven defendants in this case to plead guilty. On April 5, 2013, Peter Cuen, a/k/a “Mijo,” and Peggy Larez also pleaded guilty to conspiring to conduct the affairs of Nuestra Familia, in violation of Title 18, United States Code, Section 1962(d). Cuen pleaded guilty to an additional charge of possession of a firearm in furtherance of that conspiracy, in violation of Title 18, United States Code, Section 924(c). Sentencing for Cuen and Larez is scheduled for August 22, 2013, while sentencing for Gonzalez is scheduled for September 19, 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND – Behzad Talai Mofrad pleaded guilty in federal court in Oakland today to wire fraud and aggravated identity theft, announced United States Attorney Melinda Haag.

In pleading guilty, Mofrad admitted to utilizing the means of identification of J.W., a real, but missing, person, to obtain false identification. Mofrad also admitted to using the false identification to fraudulently lease a 2013 BMW M3 coupe automobile from an Alameda County car dealership. Mofrad had planned to sell the M3 for money but was arrested before doing so.

Mofrad, 47, of Danville, was charged by Information on April 9, 2013. He was charged with two counts of wire fraud in violation of 18 U.S.C. § 1343, and one count of aggravated identity theft in violation of 18 U.S.C. § 1028A. Under the plea agreement, Mofrad pleaded guilty to all counts.

Mofrad sentencing hearing is scheduled for October 3, 2013, before The Honorable Yvonne Gonzalez Rogers, U.S. District Judge, in Oakland, California. The maximum statutory penalty for each wire fraud count in violation of 18 U.S.C. § 1343 is 20 years’ imprisonment, and a fine of $250,000. In addition, the mandatory penalty for aggravated identity theft is two years’ imprisonment. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Rodney C. Villazor is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal assistant Vanessa Quant. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Berkeley Police Department.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN JOSE, Calif. – James Kellems pleaded guilty today to robbing two banks in Campbell and one in Capitola between October 25, 2010, and November 12, 2010, announced United States Attorney Melinda Haag.

Kellems, 54, pleaded guilty to three counts of bank robbery in violation of 18 U.S.C. § 2113(a). Specifically, Kellems admitted that on October 25, 2010, he robbed the Bank of America branch located in the Pruneyard, Campbell, of $3,020.00; on October 30, 2010, he robbed the Bank of the West branch at 3820 Capitola Road, Capitola, of $5,400.00; and on November 12, 2010, he robbed First Bank, 790 East Campbell Avenue, Campbell of $720.00, after threatening a female teller with use of a gun.

Kellems’ sentencing hearing is set for December 5, 2013, in front of The Honorable D. Lowell Jensen, U.S. District Court Judge. As a career offender with multiple prior bank robbery convictions, Kellems’ faces up to 20 years imprisonment on each count. However, any sentence following conviction will be imposed by the court 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 Thomas O’Connell and Special Assistant U.S. Attorney Meredith Edwards are prosecuting the case with the assistance of legal tech Tracey Andersen. The case was investigated by the Federal Bureau of Investigation, the Campbell Police Department, and the Capitola Police Department.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN JOSE - Gurinder Mand was sentenced today to 13 months in prison and ordered to pay $254,906.20 in restitution for her involvement in a health care fraud scheme operated out of a San Jose pharmacy, United States Attorney Melinda Haag announced.

Mand pleaded guilty on December 12, 2012, to conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349. According to the plea agreement, Mand admitted to knowingly and willfully conspiring with the former owner of EZ Step Pharmacy in San Jose to submit false and fraudulent claims to health care benefit programs, including Medicare, Medi-Cal and private insurance companies. The false and fraudulent claims included: (1) seeking reimbursement for claims without prescriptions; and (2) seeking reimbursement for the cost of licensed durable medical equipment (known as “DME”) and related prescription medications, benefits, items, and services. In furtherance of the scheme, Mand fabricated DME authorizations, certificates of medical necessity, and related documents, and forged the signatures of physicians and other authorized health care providers of beneficiaries on these documents.

Mand, 30, of San Jose, was indicted by a federal grand jury on June 30, 2011. She was charged with one count of conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349; six counts of health care fraud, in violation of 18 U.S.C. § 1347; and two counts of obstructing a criminal investigation into health care fraud violations, in violation of 18 U.S.C. § 1518.

The sentence was handed down by The Honorable Lucy H. Koh, U.S. District Judge, following Mand’s guilty plea. Judge Koh also sentenced Mand to a three-year period of supervised release, and ordered restitution in the amount of $254,906.20. Mand will begin serving the sentence on August 5, 2013.

Jeff Nedrow is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of a three-year investigation by the Federal Bureau of Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Abdulaziz Abdulahi Khalil was sentenced, yesterday, to 38 months in prison for accepting kickbacks in exchange for falsely passing citizenship applicants on their United States citizenship tests, United States Attorney Melinda Haag announced.

From 2003 through 2008, Khalil was a District Adjudication Officer (DAO) with the United States Citizenship and Immigration Service (USCIS), a Department of Homeland Security agency part of the former Immigration and Naturalization Service. As a DAO, Khalil’s responsibilities included personally administering two citizenship tests to applicants whose citizenship applications were randomly assigned to him. The first test was to determine applicants’ level of competency with the English language. The second test was to determine whether applicants had adequate knowledge of the United States Constitution. Applicants were required to pass both tests to be eligible for United States citizenship.

In pleading guilty, Khalil admitted that from mid-2003 through at least December 2008, he participated in a scheme to recruit applicants for United States citizenship and to take money from these applicants in exchange for assurances that they would pass their required citizenship tests. Khalil admitted that he used his position as a DAO to gain control over certain citizenship applicants’ files in order to carry out, and profit from his scheme.

Khalil pleaded guilty on February 5, 2013, to counts 1-9, 18, and 19 of the Superseding Indictment, which charged him with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371 (Count 1), attempted unlawful procurement of citizenship, in violation of 18 U.S.C. § 1425(a) (Counts 2-9), false certification of citizenship applications, in violation of 18 U.S.C. § 1015(d) (Count 18), and attempted witness tampering, in violation of 18 U.S.C. § 1512(a) (Count 19).

The 38-month sentence was handed down by U.S. District Court Judge Richard Seeborg following Khalil’s guilty pleas. Judge Seeborg also sentenced the defendant to a three-year period of supervised release to follow his prison term. The defendant was ordered to begin serving his prison sentence on August 30, 2013.

Robin Harris is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal assistant Rawaty Yim. The prosecution is the result of a two-year investigation by the USCIS, an agency within the Department of Homeland Security.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO - Michael Steven Banuelos (aka Ferrari Mike, aka Mike Banuelos) was sentenced yesterday to 6 ½ years in federal prison for running a three-year investment fraud scheme through which he fraudulently obtained approximately $2.6 million, announced United States Attorney Haag.

As part of his fraudulent scheme, Banuelos falsely claimed to be a successful promoter in the music industry with ties to various well-known recording stars. In furtherance of his fraud, Banuelos lied to the business manager of a musical group, claiming that he, Banuelos, had arranged a concert tour during which the aforementioned musical group would be the opening act for one of the well-known stars with whom he had ties. Banuelos also lied to this business manager and other investors, claiming that he had negotiated a multimillion contract with a major recording label for the rights to the music group. Banuelos also used false statements and phony documents to lure in additional investors in this purported music deal and non-existent deals regarding other musical artists. Several of the investors in these purported deals lived in the Bay Area.

Of the approximately $2.6 million dollars he obtained through this scheme, Banuelos spent the overwhelming majority of it on personal expenses. Those expenses included payments to one of his ex-wives, scores of thousands of dollars on car payments, and thousands of dollars paid for a country club membership and dues.

As his music deal scam was coming to a close, Banuelos defrauded additional individuals out of another $200,000. Banuelos falsely claimed to these victims that he was a successful money manager whom one client had entrusted with $45 million for investment. Banuelos provided false documentation of these claims, too, resulting in the victims providing more money to Banuelos in the mistaken belief it would be invested on their behalf.

Banuelos, 42, was indicted by a federal grand jury on July 12, 2012. He was charged with twelve counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of money laundering, in violation of Title 18, United States Code, Section 1957. He was arrested on July 26, 2012, in Chicago, where he had lived for the preceding few months. Prior to moving to Chicago, he had lived in and around Atlanta, Georgia. He has remained in federal custody since his arrest.

On February 26, 2013, Banuelos pleaded guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343.

Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN JOSE – Yesterday, a federal grand jury in San Jose, California, indicted Lisa McMahon, of Mountain View, Arkansas with wire fraud and theft from the Monterey Bay Aquarium Research Institute (MBARI), United States Attorney Melinda Haag announced.

MBARI is a non-profit center for advanced research and education in ocean science and technology located in Moss Landing, California, and supported in part by federal funding. According to the indictment, McMahon was employed at MBARI as a payroll specialist with responsibilities concerning the payment of wages, 401(k) contributions and loans for MBARI employees. The indictment alleges that, from at least 2005 until January of 2012, McMahon devised and executed a scheme to defraud MBARI by altering payroll and 401(k) records to cause and conceal fraudulent payments to her personal accounts. According to the indictment, McMahon caused the transfer of approximately $800,000 of MBARI funds to her personal accounts without the authorization or knowledge of her employer.

McMahon’s initial appearance is scheduled for Thursday, June 6, 2013, at 10:30 am, in front of The Honorable Paul S. Grewal, U.S. Magistrate Judge, in San Jose, California.

The maximum statutory penalty for each count of wire fraud in violation of Title 18, United States Code, section 1343, is twenty years imprisonment and a fine up to twice the pecuniary gain or loss associated with the offense, plus restitution. The maximum statutory penalty for each count of theft from a federal program in violation of Title 18, United States Code, section 666, is ten years imprisonment and a fine up to twice the pecuniary gain or loss associated with the offense, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Philip A. Guentert is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation.

Please note, an indictment contains only allegations against an individual and, as with all defendants, McMahon must be presumed innocent unless and until proven guilty.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Wal-Mart Stores Inc. pleaded guilty today in cases filed by federal prosecutors in Los Angeles and San Francisco to six counts of violating the Clean Water Act by illegally handling and disposing of hazardous materials at its retail stores across the United States, announced United States Attorney Melinda Haag. The Bentonville, Ark.-based company also pleaded guilty today in Kansas City, Mo., to violating the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) by failing to properly handle pesticides that had been returned by customers at its stores across the country.

As a result of the three criminal cases brought by the Justice Department, as well as a related civil case filed by the U.S. Environmental Protection Agency (EPA), Wal-Mart will pay approximately $81.6 million for its unlawful conduct. Coupled with previous actions brought by the states of California and Missouri for the same conduct, Wal-Mart will pay a combined total of more than $110 million to resolve cases alleging violations of federal and state environmental laws.

According to documents filed in U.S. District Court in San Francisco, from a date unknown until January 2006, Wal-Mart did not have a program in place and failed to train its employees on proper hazardous waste management and disposal practices at the store level. As a result, hazardous wastes were either discarded improperly at the store level – including being put into municipal trash bins or, if a liquid, poured into the local sewer system – or they were improperly transported without proper safety documentation to one of six product return centers located throughout the United States.

“As one of the largest retailers in the United States, Wal-Mart is responsible not only for the stock on its shelves, but also for the significant amount of hazardous materials that result from damaged products returned by customers,” said Melinda Haag, U.S. Attorney for the Northern District of California. “The crimes in these cases stem from Wal-Mart's failure to comply with the regulations designed to ensure the proper handling, storage, and disposal of those hazardous materials and waste. With its guilty plea today, Wal-Mart is in a position to be an industry leader by ensuring that not only Wal-Mart, but all retail stores properly handle their waste.”

“Federal laws that address the proper handling, storage and disposal of hazardous wastes exist to safeguard our environment and protect the public from harm,” said André Birotte Jr., the U.S. Attorney for the Central District of California. “Retailers like Wal-Mart that generate hazardous waste have a duty to legally and safely dispose of that hazardous waste, and dumping it down the sink was neither legal nor safe. The case against Wal-Mart is designed to ensure compliance with our nation’s environmental laws now and in the future.”

“By improperly handling hazardous waste, pesticides and other materials in violation of federal laws, Wal-Mart put the public and the environment at risk and gained an unfair economic advantage over other companies,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today, Wal-Mart acknowledged responsibility for violations of federal laws and will pay significant fines and penalties, which will, in part, fund important environmental projects in the communities impacted by the violations and help prevent future harm to the environment.”

“The FBI holds all companies, regardless of size, to the same standards,” said FBI Special Agent in Charge David J. Johnson of the San Francisco Field Office. “We will continue to work closely with our law enforcement partners to ensure there is a level playing field for all businesses and that everyone follows the rules.”

“Today Wal-Mart is taking responsibility for violating laws that protect people from hazardous wastes and chemicals,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Wal-Mart is committing to safe handling of hazardous wastes at all of its facilities nationwide, and action that will benefit communities across the country.”

Wal-Mart owns more than 4,000 stores nationwide that sell thousands of products which are flammable, corrosive, reactive, toxic or otherwise hazardous under federal law. The products that contain hazardous materials include pesticides, solvents, detergents, paints, aerosols and cleaners. Once discarded, these products are considered hazardous waste under federal law.

Wal-Mart pleaded guilty this morning in San Francisco to six misdemeanor counts of negligently violating the Clean Water Act. The six criminal charges were filed by the U.S. Attorney’s Office in Los Angeles and San Francisco (each office filed three charges), and the two cases were consolidated in the Northern District of California, where the guilty pleas were formally entered before U.S. Magistrate Judge Joseph C. Spero. As part of a plea agreement filed in California, Wal-Mart was sentenced to pay a $40 million criminal fine and an additional $20 million that will fund various community service projects, including opening a $6 million Retail Compliance Assistance Center that will help retail stores across the nation learn how to properly handle hazardous waste.

In the third criminal case resolved today, Wal-Mart pleaded guilty in the Western District of Missouri to violating FIFRA. According to a plea agreement filed in Kansas City, beginning in 2006, Wal-Mart began sending certain damaged household products, including regulated solid and liquid pesticides, from its six return centers to Greenleaf, LLC, a recycling facility located in Neosho, Mo., where the products were processed for reuse and resale. Because Wal-Mart employees failed to provide adequate oversight of the pesticides sent to Greenleaf, regulated pesticides were mixed together and offered for sale to customers without the required registration, ingredients, or use information, which constitutes a violation of FIFRA. Between July 2006 and February 2008, Wal-Mart trucked more than 2 million pounds of regulated pesticides and additional household products from its various return centers to Greenleaf. In November 2008, Greenleaf was also convicted of a FIFRA violation and paid a criminal penalty of $200,000 in 2009.

Pursuant to the plea agreement filed in Missouri and accepted today by U.S. District Judge John T. Maughmer, Wal-Mart agreed to pay a criminal fine of $11 million and to pay another $3 million to the Missouri Department of Natural Resources, which will go to that agency’s Hazardous Waste Program and will be used to fund further inspections and education on pesticide regulations for regulators, the regulated community and the public. In addition, Wal-Mart has already spent more than $3.4 million to properly remove and dispose of all hazardous material from Greenleaf’s facility.

In conjunction with today’s guilty pleas in the three criminal cases, Wal-Mart has agreed to pay a $7.628 million civil penalty that will resolve civil violations of FIFRA and Resource Conservation and Recovery Act (RCRA). In addition to the civil penalties, Wal-Mart is required to implement a comprehensive, nationwide environmental compliance agreement to manage hazardous waste generated at its stores. The agreement includes requirements to ensure adequate environmental personnel and training at all levels of the company, proper identification and management of hazardous wastes, and the development and implementation of Environmental Management Systems at its stores and return centers. Compliance with this agreement is a condition of probation imposed in the criminal cases.

The criminal cases announced today are a result of investigations conducted by the FBI and the EPA, which received substantial assistance from the California Department of Substance and Toxics Control, and the Missouri Department of Natural Resources.

In California, the cases were prosecuted in San Francisco by Assistant U.S. Attorney Stacey Geis and in Los Angeles by Assistant U.S. Attorney Joseph O. Johns. In Missouri, the case was prosecuted by Deputy U.S. Attorney Gene Porter and ENRD Senior Trial Attorney Jennifer Whitfield of the Environmental Crimes Section of the Environment and Natural Resources Division.

(Wal-Mart Plea Agreement )

 

 

SAN FRANCISCO - United States Attorney Melinda Haag announced today the creation of the San Francisco Bay Estuary Conservation Fund (the Fund). The Fund, to be administered by the National Fish and Wildlife Foundation (NFWF), is dedicated to protecting and restoring the San Francisco Bay estuary environment, including, but not limited to, fish and wildlife, and the habitats upon which they depend, such as the water, land, and air resources in and around the estuary, and improving federal, state and local enforcement of environmental and wildlife protection laws.

The $8.7 million seed money for the Fund comes from several corporate criminal cases that the U.S. Attorney’s Office has prosecuted in the past several years, including the Wal-Mart conviction announced earlier today, where $4.5 million of the settlement will go directly to the Fund. Other cases include the Cosco Busan oil spill wherein $2 million of the $10 million the shipping company, Fleet Management Ltd, paid as part of a federal plea agreement, will go towards the Fund, as well as payments from criminal convictions against Horizon Lines, Shore Terminals, Kie-Con, and Dianik Bross Shipping. In all of these cases, in addition to a fine, the companies agreed to make community service payments in order to address the environmental harm or potential environmental harm created by the company’s unlawful conduct.

The Fund was created by the U.S. Attorney’s Office with the goal of establishing a sustainable revenue source dedicated to local environmental projects focused on protecting and restoring the San Francisco Bay estuary. Congress has delegated NFWF the authority to establish and administer these types of funds. NFWF will determine the grant amounts and select projects in consultation with a multi-jurisdictional consultation panel to be established for the Fund that will be comprised of federal and state fish and wildlife trustee agencies. NFWF will also consult with other agencies in accordance with applicable plea agreements. The Fund is anticipated to be augmented by investment earnings, and any additional funds received from criminal prosecutions or private and public donations.

“The Fund provides a way for criminal polluters to help protect the environment in the communities where they committed their crimes. The creation of this Fund now offers long term funding for addressing environmental concerns throughout the Bay Area” said U.S. Attorney Melinda Haag.

The prosecutions that led to the creation of the Fund include not only the U.S. Attorney’s Office, but the federal agencies that play a critical role in investigating these cases, including, but not limited to, the Environmental Protection Agency Criminal Investigative Division, the United States Coast Guard, the National Oceanic and Atmospheric Administration, and the U.S. Fish & Wildlife Service, and the Federal Bureau of Investigation, along with our state and local counterparts, such as the California Department of Fish & Wildlife.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND, Calif. – Yesterday, a federal grand jury in Oakland indicted Andre Taray Franklin, charging him with Theft of Major Artwork and Unlawful Concealment and Disposition of Stolen Major Artwork, United States Attorney MELINDA HAAG announced.

According to the indictment, Franklin, 45, is alleged to have stolen a jewelry box made of California gold and adorned with richly gold veined quartz made between 1869 and 1878 with a value of at least $100,000 from the Oakland Museum of California, on or about January 7, 2013. In addition, the indictment charges Franklin with unlawfully concealing and disposing of the historic jewelry box between January and February 2013.

An affidavit prepared in connection with a criminal complaint filed in the same matter alleges that the historic jewelry box was stolen from the Oakland Museum of California during a burglary on January 7, 2013. The burglary was captured on a surveillance video which shows that the crime was committed by a lone individual who used an axe to break into the museum and smash display cases to steal the historic jewelry box and other items. The affidavit also explains that Franklin was first identified as a suspect after DNA from an axe cover found on the grounds of the museum following the burglary was compared to a database of DNA profiles, and Franklin was reported as a likely match. At the time of his arrest on March 3, 2013, Franklin was wearing shoes consistent in physical appearance with the museum burglar’s and with soles consistent with footprints found in the burglar’s flight path on the museum grounds. In addition, Franklin’s phone contained a blurry picture of the jewelry box and incriminating text messages. Finally, the jewelry box was recovered from an address in Oakland identified in the incriminating text messages on Franklin’s phone.

Franklin is currently being held in Santa Rita Jail on a parole violation. His initial appearance in federal court will be held before the duty magistrate in Oakland when Franklin’s parole hold is lifted.

The maximum statutory penalty for each count of Theft of Major Artwork and Unlawful Concealment and Disposition of Stolen Major Artwork in violation of 18 U.S.C. §§ 668(b)(1) and (b)(2) is 10 years in prison and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the Oakland Police Department and the Federal Bureau of Investigation.

Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Franklin must be presumed innocent unless and until proven guilty.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – The United States filed a civil complaint against Reunion Mortgage and its Owner, President and Designated Broker, David Thayer, under the False Claims Act, 31 U.S.C. §§ 3729-3733, United States Attorney Melinda Haag announced. The complaint seeks treble damages and civil penalties in connection with Reunion Mortgage’s participation in the Federal Housing Administration’s (“FHA”) Direct Endorsement Lender Program.

The complaint alleges that Reunion Mortgage and Thayer approved twelve loans and falsely certified that the loans met the U.S. Housing and Urban Development’s (“HUD”) requirements and were eligible for FHA insurance. The complaint further alleges that Reunion Mortgage and Thayer knew that the company’s underwriters routinely failed to perform basic due diligence, failed to verify information in the loan file that bore directly on the borrower’s ability to make payments on the mortgage, and repeatedly certified mortgage loans that contained serious defects and departures from HUD’s underwriting standards. The twelve loans defaulted and FHA paid more than $1.63 million in insurance claims as a result.

U.S. Attorney Melinda Haag said: “As alleged, Reunion Mortgage and David Thayer turned out bad loans and lied about their compliance with HUD requirements. This Office will continue its work to hold the perpetrators of mortgage fraud accountable.”

Ila C. Deiss is the Assistant U.S. Attorney who is handling the case with the assistance of Financial Fraud Investigator Michael Zehr, Contract Paralegal Sarah Oldridge, and HUD Forensic Auditor Seda Mangassarian. The case is the result of an investigation by HUD’s Office of the Inspector General’s Civil Fraud Division, and is part of HUD's High Default Lender Initiative.

(Reunion Complaint )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO - Jacqueline Besser pleaded guilty, yesterday, to making false statements in a loan application, United States Attorney Melinda Haag announced.

In pleading guilty, Besser admitted that in October 2010, as the president of DAJA International, LLC (“DAJA”), she applied to Community Bank of the Bay (“CBB”) for a loan and a line of credit for DAJA. Besser was to be the guarantor of that loan and line of credit.

According to her plea agreement, Besser admitted that as part of the application process, she submitted various documents to CBB between approximately June 20, 2010, and approximately September 30, 2010 that included false statements. The documents included personal financial statements, a Small Business Administration application, a business debt schedule, and corporate financial statements. These documents required Besser to list, among other things, all of the outstanding loans, liens, and any other money owed by her, and all of the outstanding loans, liens, and any other money owed by DAJA. When she submitted these documents, however, Besser intentionally failed to report approximately $500,000 in outstanding loans to her company, DAJA, and to her, either individually or jointly with her husband.

Based on the documentation Besser provided, CBB approved the loan and extended a $1.75 million term loan and a $100,000 line of credit to DAJA.

In November 2011, DAJA filed for bankruptcy, and in December 2011, Besser filed for bankruptcy. At the time of these bankruptcy filings, DAJA owed approximately $1.7 million in principal, interest, and late charges on the CBB note, and approximately $114,109 in principal, interest, and late charges on the CBB line of credit.

Besser, 60, of San Francisco, pleaded guilty to one count of making a false statement to a bank in violation of Title 18 United States Code, Section 1014.

The sentencing of Besser is scheduled for September 3, 2013, before The Honorable William Alsup U.S. District Court Judge. The maximum statutory penalty for a violation of Title 18 United States Code, Section 1014, is 30 years in prison and a fine of $1 million or twice the gross gain or loss, whichever is greater, plus restitution. However, any sentence would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Jonathan Schmidt and Benjamin Kingsley are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Marina Ponomarchuk, Rayneisha Booth, and Colleen Cushnie. The prosecution is the result of a one-year investigation by the Small Business Administration, Office of Inspector General.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN JOSE - Donald Ray Williams was sentenced today to 20 years in prison – the maximum allowable sentence – for his 2007 arson of a building containing a Walgreens and a Subway sandwich shop in downtown Palo Alto, United States Attorney Melinda Haag announced.

On January 29, 2009, Williams was convicted on arson charges by a jury after a three week trial. Evidence at trial showed that Williams climbed up a pipe on the exterior of the building to the roof of the second floor and broke into an abandoned office. Williams then lit newspapers next to a wooden bookcase. The flames climbed up the bookcase to some wooden beams in the ceiling. A nearby security camera recorded a grainy image of someone who resembled Williams removing his shirt and then climbing the pipe. Williams was positively identified by DNA evidence found on the shirt in a dumpster at the bottom of the pipe, and by witness testimony that he had been seen climbing up the pipe in the past.

Evidence also showed that the fire collapsed the second floor roof of the building onto the location where firefighters had been working roughly five minutes before. Walgreen’s employees evacuated and avoided injury because the girlfriend of one the employees saw the fire on the roof and called her boyfriend. Likewise, customers and employees of Subway evacuated and avoided injury because a restaurant hostess from across the street noticed the fire and called 911 and followed the operator's instructions to alert the people inside Subway.

Bureau of Alcohol, Tobacco, Firearms and Explosives, San Francisco Field Division, Special Agent in Charge Joseph M. Riehl said "Arson is an act of violence and endangers our communities. I am grateful no one was hurt during the suppression of the fire and I am pleased with the successful investigation and prosecution."

Williams, 51, of East Palo Alto, was indicted by a federal grand jury on January 30, 2008. He was charged with arson. Trial and sentencing were delayed repeatedly as the result of court ordered hearings about the defendant’s competence to stand trial, and periods of resulting mental health treatment.

The Honorable Jeremy Fogel, U.S. District Court Judge, handed down the sentence. In addition to the prison sentence, Judge Fogel ordered Williams to pay $28.6 million in restitution and to serve a three year period of supervised release upon release from prison. Williams has remained in custody since his arrest in January, 2008.

Daniel Kaleba and Gary G. Fry are the Assistant U.S. Attorneys who prosecuted the case with the assistance of Legal Technician Tracey Andersen. The prosecution was the result of a six month investigation by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Palo Alto Police Department and the Palo Alto Fire Department.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO - Hausmann-Alain Banet (a/k/a Anzoumana Ousmann Gbane, a/k/a Gbane Anzoumana a/k/a Ousmann Gbane, a/k/a Ousmann Gbane Anzounan Banet, a/k/a Ousmann-Alain Gbane) pleaded guilty today to mail fraud and wire fraud, United States Attorney Melinda Haag announced.

In pleading guilty, Banet admitted that from approximately June 2008 through July 2012, he induced numerous individuals to give him money by falsely representing that he, on behalf of his investment management company, Lion Capital Management Group, LLC, would invest the money in hedge funds. Banet admitted that he falsely told these individuals that he had invested their money, but that he actually spent the money for personal and business expenses, all unrelated to investment income. Banet also admitted that, as part of his scheme, he sent quarterly investment account statements to victims in which he falsely stated that the accounts had realized gains. Banet further admitted that, as a result of his scheme, he received approximately $1.3 million from the victim investors.

Banet, 49, of San Francisco, California, was indicted by a federal grand jury on October 2, 2012. He was charged with six counts of wire fraud, eleven counts of mail fraud, and six counts of money laundering. Banet pleaded guilty to two counts of wire fraud and two counts of mail fraud. In his plea agreement, Banet agreed to forfeit his interest in his residence in San Francisco, approximately $78,000 in bank and trading accounts in his name; and his Mercedes Benz. Banet also agreed to pay restitution in an amount to be determined by the Court, but not less than $1.2 million. Banet remains in the custody of the United States Marshal’s Service.

Banet’s sentencing is scheduled for August 6, 2013, at 2:00 p.m. before the U.S. District Court Judge William Alsup in San Francisco. The maximum statutory penalty for each count of wire fraud and mail fraud, in violation of 18 U.S.C. §§ 1343 and 1341, respectively, is 20 years imprisonment and a fine of $250,000 or twice the amount of the fraud. 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.

Denise Marie Barton is the Assistant United States Attorney who is prosecuting the case with the assistance of Allen Williams, Pat Mahoney, and Elizabeth Garcia. The prosecution is the result of an approximately five month investigation by the Federal Bureau of Investigation, with the assistance of the Securities and Exchange Commission and Immigration and Customs Enforcement.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND - Oscar Baker Phillips was sentenced on May 20, 2013, to thirty months in prison, followed by six years of supervised release, United States Attorney Melinda Haag announced.

Phillips pleaded guilty on March 5, 2013, to distribution of crack cocaine within 1,000 feet of a school. The guilty plea before Magistrate Judge Kandis A. Westmore was accepted by District Court Judge Saundra B. Armstrong on May 20, 2013. In the plea agreement, Phillips admitted that on July 3, 2012, while at a location on Sycamore Street in Oakland, he knowingly sold 0.27 grams of cocaine base for $20.00. The location is within 1,000 feet of the St. Andrew’s Baptist Missionary Elementary School and Kindergarten in Oakland, California.

Phillips, 34, most recently a resident of Sacramento, was indicted by a federal grand jury on October 25, 2012. Phillips was on probation at the time of the instant offense, and has four prior misdemeanor convictions and three prior felony convictions, including domestic violence and narcotics-related offenses.

The sentence was handed down by District Court Judge Saundra B. Armstrong following a guilty plea to one count of violation of 21 U.S.C. § 841(a)(1) and 860(a). Phillips has been in continuous federal custody since his initial appearance on the indictment.

Phillips was the eighth defendant to be sentenced in the last 18 months as part of Operation Safe Schools, an ongoing series of cases targeting drug trafficking near schools in high-crime areas.

Steven Booker was sentenced on January 25, 2012, to 27 months in prison, followed by six years of supervised release, for selling 0.5 grams of crack cocaine in the vicinity of 96th Avenue and Birch Street in Oakland, California, within 1,000 feet of Elmhurst Community Preparatory School. Case No. CR 11-00768-CW.

Demone Crump was sentenced on February 15, 2012, to 12 months in prison, followed by six years of supervised release, for selling 0.75 grams of crack cocaine in the vicinity of 24th and Myrtle Streets in Oakland, California, within 1,000 feet of McClymonds High School. Case No. CR 11-00765-PJH

Taronta Greely was sentenced on February 15, 2012, to 12 months and one day in prison, followed by six years of supervised release, for selling 0.76 grams of crack cocaine in the vicinity of Jefferson Street and Martin Luther King Jr. Way in Oakland, California, within 1,000 feet of both the Bright Future Early Learning Center and Devry University. Case No. CR 11-00766-SBA.

Clifford Nivens was sentenced on February 28, 2012, to 15 months, followed by six years of supervised release, for selling 0.55 grams of crack cocaine in the vicinity of 32nd and West Streets in Oakland, California, within 1,000 feet of Hoover Elementary School. Case No. CR 11-0762-CW.

Rondell Bullard was sentenced on May 15, 2012, to 18 months in prison, followed by six years of supervised release, for selling 0.43 grams of crack cocaine in the vicinity of 32nd and West Streets in Oakland, California, within 1,000 feet of Hoover Elementary School. Case No. CR 11-00767-CW.

Yohannes Randy Herald was sentenced on October 19, 2012, to 33 months, followed by six years of supervised release, for selling 0.94 grams of crack cocaine in the vicinity of 8th and Henry Streets in Oakland, California, within 1,000 feet of Prescott Elementary School. Case No. CR 11-00763-SBA.

Michael Baca was sentenced on November 26, 2012, to 12 months and 1 day, followed by six years of supervised release, for selling 44 pills of Carisoprodol in the 24000 block of Soto Road in Hayward, California, within 1,000 feet of Fairview Elementary School. Case No. CR 12-0603-CW.

 

 

 

 

 

 

 

 

 

 

OAKLAND, Calif. - Claudia Robinson was sentenced yesterday to 24 months in prison for her role in a false tax refund scheme, United States Attorney Melinda Haag and Internal Revenue Service (IRS), Criminal Investigation, Special Agent in Charge José M. Martinez announced.

Robinson pleaded guilty on February 19, 2013. According to her plea agreement, between January 26, 2008, and February 12, 2008, Robinson filed false claims for tax returns with the IRS. Robinson admitted that the returns were all false because earning and income that she listed were fabricated. In addition, Robinson acknowledged listing her relative's address on the returns, knowing that the person listed on the tax return did not live there. Robinson also admitted that after a search warrant was executed at her home, she approached a person whose identity she used on a false tax return and asked the person to lie to IRS Agents in exchange for a television. Robinson has remained in custody since December 2011.

At sentencing, Robinson was also ordered to pay restitution in the amount of $38,020. On September 15, 2011, Robinson, of Hayward, California, was charged in a 25-count indictment with wire fraud, false claims, identity theft and obstructing the IRS. She pleaded guilty to eight counts of filing false claims with the IRS.

Thomas Newman in the Tax Division for the U.S. Attorney's Office is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norman Wielsch, the former Commander of the Central Contra Costa County Narcotics Enforcement Team and a Special Agent Supervisor of the California Department of Justice, was sentenced to 168 months in federal court in Oakland, yesterday, United States Attorney Melinda Haag announced.

On December 5, 2012 Wielsch pleaded guilty to five felony counts – one count of conspiracy to possess with intent to distribute marijuana and 50 grams or more of methamphetamine, one count of theft from programs receiving federal funds, two counts of civil rights conspiracy, and one count of Hobbs Act robbery.

In pleading guilty to the charges, Wielsch, 52, admitted stealing from evidence facilities $30,000 to $70,000 worth of marijuana and methamphetamine that had been seized during legitimate CNET raids. Specifically, Wielsch admitted that he stole at least twenty pounds of marijuana and more than 400 grams of high-purity methamphetamine (“ice”) between November 2010 and February 2011. He further admitted conspiring to distribute these drugs with his codefendant, private investigator and former Antioch police officer Christopher Butler, 51.

In pleading to the civil rights conspiracies, Wielsch admitted that he and Butler participated together in a phony “sting” operation in which they falsely detained a young man under the guise of a legitimate law enforcement operation, conducted warrantless searches, and kept narcotics that were taken during the “sting.” Wielsch also admitted that he and Butler staged what purported to be legitimate sting operations against prostitutes, but instead of seizing evidence and citing the prostitutes, they unlawfully took the prostitutes’ money and property for themselves. Wielsch acknowledged that they took more than $10,000 from individuals in the course of their prostitution robberies.

The sentence imposed by U.S. District Court Judge Saundra Brown Armstrong also included a $150,000 fine and five year period of supervised release. Wielsch has been in custody since he was remanded at the time of his guilty plea.

Wielsch and Butler were indicted by a federal Grand Jury on August 9, 2011. Butler pleaded guilty on May 4, 2012, to a Superseding Information charging the same narcotics conspiracy, theft from programs receiving federal funds, two civil rights conspiracies, and robbery counts to which Wielsch pleaded guilty, as well as extortion under color of official right and illegal wiretapping. On September 25, 2012, Butler was sentenced to 96 months imprisonment and a $20,000 fine, receiving a sentencing reduction for his cooperation with law enforcement in this and other investigations.

Hartley M. K. West is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Alycee Lane. The prosecution is the result of a lengthy investigation by the FBI with the assistance of the Contra Costa County District Attorney’s Office.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND – Keith Aaron Vann was sentenced yesterday to 121 months in prison and ordered to pay $3,377,089.64 in restitution for his role in a conspiracy to defraud three Arizona residents into donating millions of dollars to a phony charitable organization, United States Attorney Melinda Haag announced.

After a four-day trial, a jury convicted Vann on December 17, 2012, of conspiracy to commit wire fraud and mail fraud, a separate count of wire fraud, and three counts of money laundering. During the trial, evidence showed that Vann participated in a scheme to defraud the victims, two of whom were Arizona elementary school teachers, of over $3.3 million from their father’s estate by making false representations including, among other things, that an entity known as Global Missions was a non-profit organization recognized by the Internal Revenue Service (IRS); that it provided humanitarian aid worldwide, including in Africa; and that donations to Global Missions would be tax deductible. Evidence presented at trial showed that, contrary to these representations, Vann and others used donations to Global Missions to pay for personal trips, jewelry, a down payment on a luxury car, and a $1.25 million home. In furtherance of the conspiracy, Vann posed as Global Missions’ attorney, “James Preston, Esq.” Acting as Preston, Vann told the victims that he had expertise in facilitating tax deductible charitable donations with the IRS.

Vann, 42, of Oakland, California, was charged by indictment on April 16, 2008. The sentence was handed down by U.S. District Court Judge Saundra Brown Armstrong . Judge Armstrong also sentenced Mr. Vann to a three-year period of supervised release. Vann was immediately remanded into custody following the sentencing hearing.

Wade M. Rhyne is the Assistant U.S. Attorney prosecuting the case, with the assistance of Legal Assistants Kathleen Turner and Janice Pagsangan, and Paralegal Noble Hughes. The prosecution is the result of a three-year investigation by the IRS, Criminal Investigation Division, and the Federal Bureau of Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND, Calif. – Kyle Robert James was sentenced yesterday to 8 years in prison for possessing and distributing child pornography, United States Attorney Melinda Haag and Acting Assistant Attorney General Mythili Raman of the Criminal Division announced.

James pleaded guilty on December 17, 2012, to both possessing and distributing child pornography. James first came to the attention of the Federal Bureau of Investigation (FBI) on May 13, 2010, when he distributed images and videos of child pornography to an undercover FBI agent using a peer-to-peer computer program. On November 1, 2010, James again distributed images and videos of child pornography to an undercover FBI agent. On May 4, 2011, the FBI searched James’s home pursuant to a federal search warrant and seized computers and external storage media. A forensic examination of the seized items revealed tens of thousands of child pornography files on the computer. The forensic examination also uncovered numerous chats by James with other traders of child pornography.

James, 27 of Brentwood, was indicted by a federal grand jury on January 25, 2012. The sentence was handed down by Chief U.S. District Court Judge Claudia Wilken. In addition to his prison sentence, James was sentenced to a 10-year term of supervised release and will be required to register as a sex offender.

The case was prosecuted by Assistant U.S. Attorney Brian Lewis and Trial Attorney Mi Yung Park of the Department of Justice Child Exploitation and Obscenity Section (CEOS). This prosecution is the result of an investigation by the FBI.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Rogelio Corral and Jose Efrain-Gonzalez were sentenced on May 16, 2013, to 14 years and 5 years, respectively, in prison for drug trafficking, United States Attorney Melinda Haag announced.

Corral and Efrain-Gonzalez pleaded guilty on February 21 and 28, 2013, respectively, to violations of 21 U.S.C. section 841(a)(1) and (b)(1)(A)(viii), pursuant to plea agreements with the government. According to the plea agreements, Corral admitted that he supplied two pounds of methamphetamine for a drug deal in Redwood City on July 16, 2012 and Efrain-Gonzalez admitted that he participated in that deal. That deal was the culmination of a six-month sting operation conducted by the San Mateo County Narcotics Task Force in conjunction with the United States Drug Enforcement Administration.

Corral, 33, of Fremont, California, and Efrain-Gonzalez, 35, of Redwood City, California, were indicted by a federal grand jury on July 19, 2012. Both were charged with two counts of possession of methamphetamine with the intent to distribute, arising out of their participation in two drug deals – one on July 16, 2012 and one on May 31, 2012 – with an undercover police officer posing as a fellow drug dealer looking to purchase drugs.

The sentences were handed down by U.S. District Court Judge Jeffery S. White, and also include a five year period of supervised release. Both defendants were remanded to the Bureau of Prisons to begin serving their respective sentences immediately.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO - Yesterday a federal grand jury in San Francisco indicted Bruce Lee Marshall, of San Francisco, for mail fraud, United States Attorney Melinda Haag announced. Despite being ordered to appear in Court this morning, Marshall failed to appear for his arraignment and is currently a fugitive.

According to the Indictment, Marshall, 38, defrauded his employer, an education technology company, out of more than $100,000 by tricking his employer into believing it was sending checks to a data hosting company when in fact they went directly to Marshall. Marshall allegedly created a fake contract reflecting that the costs of his employer’s data hosting services were up to $16,000 per month, when, in fact, Marshall had entered into a different contract costing only $1,000 per month for data hosting services. Marshall allegedly created fraudulent invoices to be sent to his employer directing his employer to send payment to Touch Fiber Network and Human Engineering Services (aka HE Services), entities he controlled. In all, Marshall allegedly fraudulently caused his employer to pay his companies more than $100,000.

The investigation began in 2011 when aspects of this alleged fraud were charged against Marshall as a violation of his supervised release for a prior federal passport fraud conviction. Yesterday Marshall was ordered to appear in Court this morning for arraignment on the current charges. He failed to appear as ordered, however, and he is currently a fugitive. If anyone has information regarding his whereabouts, please call the San Francisco field office of the FBI at (415) 553-7400.

The maximum statutory penalty for mail fraud in violation of Title 18, United States Code, Section 1341, is 20 years in prison and a fine of $250,000, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Robert Rees is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rawaty Yim. The prosecution is the result of an investigation by the Federal Bureau of Investigation.

Please note, an indictment contains only allegations against an individual and, as with all defendants, Marshall must be presumed innocent unless and until proven guilty.

(Marshall Indictment )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN JOSE - David John Stevens has been arrested and charged with engaging in sexually explicit activity with a minor and distributing child pornography, United States Attorney Melinda Haag announced. The charges are based on allegations that he molested a prepubescent girl and distributed video images of that molestation over the Internet.

Stevens was arrested on Wednesday in his home in Salinas, only five days after a “John Doe” arrest warrant was issued in Washington, D.C., and just over 24 hours after U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) issued a public appeal for leads in the case. Stevens was taken into custody by HSI special agents and investigators with the Salinas Police Department.

According to the complaint, Stevens was identified by a member of the public after she saw images from videos the defendant had posted on the Internet. The reporting party saw three images (which had been sanitized for public dissemination) on the website of the National Center for Missing and Exploited Children. Upon recognizing Stevens in the photographs, the witness notified the authorities.

The complaint alleges that Stevens filmed the molestations in a soundproof room located in the garage of his home. The complaint further states that, in addition to positively identifying Stevens, the reporting party was able to identify the room in which the molestations allegedly had occurred.

United States Attorney Melinda Haag made this comment following the arrest:

There is no higher priority for my office than protecting the youngest and most vulnerable members of our community: our children. My office will continue to work closely with our federal and state law enforcement partners to carry out that mission. I congratulate the agents at the Department of Homeland Security, as well as the fine officers of the Salinas Police Department, for their quick work in apprehending this suspect. I also thank the person who came forward and reported this conduct to the authorities. We could not do our work without the assistance of the public.

Stevens made his initial appearance in federal court yesterday before The Honorable Howard R. Lloyd, United States Magistrate Judge. He was remanded into the custody of the United States Marshal pending arraignment on June 6, 2013, at 10:30 a.m., before The Honorable Paul S. Grewal, United States Magistrate Judge.

The maximum statutory penalty for Count One, persuading or inducing a minor to engage in sexually explicit activity, in violation of 18 U.S.C. § 2251(a), is not less than 15 nor more than 30 years’ imprisonment and a fine of $250,000. The maximum penalty for Count Two, distributing child pornography, in violation of 18 U.S.C. §2252(a)(2), is not less than 5 nor more than 20 years’ imprisonment and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

David R. Callaway is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of a nationwide HSI initiative to protect children from sexual predators in close collaboration with the Salinas Police Department.

All members of the public are encouraged to contact HSI through its toll-free hotline, 1-866-347-2423, if they have further information about this matter.

In addition, suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678.

Please note that a complaint contains only allegations against an individual and, as with all defendants, Stevens, must be presumed innocent unless and until proven guilty.

(Stevens Complaint (REDACTED VERSION) )

 

 

 

 

 

 

 

SAN FRANCISCO – Jason Sterlino pleaded guilty in federal court in San Francisco today to paying bribes to a bank official in order to procure residential mortgage loans, United States Attorney Melinda Haag announced.

Sterlino was employed as a sales manager for Discovery Sales, Inc., from 2006 to 2009. He managed new home sales for two new housing developments in Oakland: the Monte Vista Estates and Monte Vista Villas residential developments. He reported directly to the president of Discovery Sales.

In pleading guilty, Sterlino admitted that he facilitated a 2007 agreement between Discovery Sales and a mortgage broker who promised to introduce potential home buyers to Monte Vista Estates in exchange for a referral fee or commission for each buyer who ultimately purchased a home. Over time, this scheme evolved into an agreement to pay the mortgage broker $30,000 for every loan funded by Bank of America that was processed by a particular Bank of America loan officer.

Sterlino admitted that he understood that a portion of the $30,000 referral fee would be paid by the mortgage broker to the Bank of America loan officer as a gift or commission. The purpose of this payment was to procure loans for unqualified buyers through applications that contained false information. Sterlino admitted that he received a portion of the $30,000, typically $5,000 per buyer, as a kickback from the mortgage broker.

Approximately 20 loans were funded by Bank of America in 2007 and 2008 as a result of this corrupt scheme, from which Sterlino personally received approximately $100,000 in cash.

Sterlino, 34, of Hercules, California, was charged in an Information that was filed on April 9, 2013. He was charged with one count of bank bribery in violation of 18 U.S.C. § 215(a). Under the plea agreement, Sterlino pleaded guilty to the offense alleged in the Information and has agreed to cooperate in the FBI’s continuing investigation.

Sterlino is free on bond pending sentencing. The sentencing is scheduled for October 24, 2013, before Judge Jeffrey White in San Francisco. The maximum statutory penalty for a violation of 18 U.S.C. § 215(a) is 30 years in prison and a fine of $1,000,000, plus restitution if ordered by the Court. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The case is being prosecuted by members of the Special Prosecutions Unit of the U.S. Attorney’s office in San Francisco. The prosecution is the result of a three year investigation by the Federal Bureau of Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND – Otis Mobley and D’Marce Hutcherson were sentenced today to 114 months and 104 months, respectively, in prison for assaulting and attempting to rob an undercover federal agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in March of 2012, United States Attorney Melinda Haag announced.

Hutcherson pleaded guilty on October 25, 2012, to assaulting a federal officer by pointing a loaded handgun at him. Co-defendant Mobley also pleaded guilty on October 25, 2012, to aiding and abetting Hutcherson and another co-defendant in the assault and attempted robbery of the agent.

“Our law enforcement officers bravely place themselves in harm’s way every day as they protect the citizens of our communities,” said U.S. Attorney Melinda Haag. “This case is a reminder of their selflessness and demonstrates the importance of prosecuting anyone who assaults a member of law enforcement.”

“I am very grateful the agent who was assaulted was not seriously injured,” said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “The significant prison sentences ordered for these defendants should serve as a warning to anyone who contemplates a similar crime: You will be apprehended, prosecuted and held fully accountable for your conduct.”

Mobley, 24, of Richmond, California, and Hutcherson, 20, of Rodeo, California, were charged by Indictment on April 5, 2012 with one count of Conspiracy to Commit Robbery of Mail, Money, or Other Property of the United States, and Assault on a Federal Officer, in violation of Title 18, United States Code, Section 371; one count of Assault on a Federal Officer with a Deadly Weapon, in violation of Title 18, United States Code, Section 111(b); one count of Robbery of Mail, Money, or Other Property of the United States, in violation of Title 18, United States Code, Section 2114(a); and one count of Using, Carrying, Possessing, and Brandishing a Firearm During a Crime of Violence, in violation of Title 18, United States Code, Section 924(c).

The sentences were handed down by U.S. District Court Judge Yvonne Gonzalez Rogers, and also include a five year period of supervised release. The defendants have been in custody since their arrests on March 28, 2012.

The prosecution is the result of an investigation by the ATF and various local police departments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND – Clyde Craig was sentenced yesterday to 15 years in prison for distribution of child pornography, United States Attorney Melinda Haag announced.

Craig pleaded guilty on January 7, 2013, to distribution of child pornography. According to the plea agreement, Craig admitted to distributing over the Internet images and videos of minors engaged in sexually explicit conduct with another person. Craig, 56, of San Ramon, was indicted by a federal grand jury on July 12, 2012.

The sentence was handed down by U.S. District Court Judge Saundra Brown Armstrong following a guilty plea on Count One of the Indictment in violation of 18 U.S.C. § 2252(a)(2). Judge Armstrong also sentenced the defendant to a ten year period of supervised release and ordered him to register as a sex offender and to participate in a sex offender treatment program.

Rodney C. Villazor is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND – Ana Mendoza-Roman and Ricardo Mendoza-Roman were sentenced today to 10 months in prison and three years of supervised release for conspiracy to produce and transfer false identification documents, United States Attorney Melinda Haag announced. Ana and Ricardo Mendoza-Roman are siblings who are citizens of Mexico and are unlawfully present in the United States.

In their guilty pleas, the defendants admitted to conspiring to produce and sell false alien registration cards which appeared to be issued by or under the authority of the Department of Homeland Security, and Social Security cards, which appeared to be issued by or under authority of the Social Security Administration.

On August 23, 2012, Homeland Security Investigation (HSI) Task Force agents executed federal search warrants at the defendants’ residence and on two vehicles owned by the defendants. During the execution of these search warrants, agents uncovered a document mill which contained fraudulent document manufacturing equipment including a laminator, printer, computer, seals, card stock and thousands of business cards offering these illegal services. A 9mm Beretta handgun and multiple high-capacity magazines were also seized from the residence.

“These sentences should serve as a reminder about the consequences facing those involved in the counterfeit document trade,” said Clark Settles, Special Agent in Charge for HSI San Francisco. “Individuals who knowingly and indiscriminately sell phony identity documents are putting the security of our communities and even our country at risk, which is why these cases are a priority for Homeland Security Investigations.”

The sentence was handed down by U.S. District Court Judge Sandra Brown Armstrong following defendants’ guilty pleas to violations of 18 U.S.C. § 371. The defendants have remained in federal custody since their arrest on August 23, 2012.

Assistant U.S. Attorney Christina McCall and Special Assistant U.S. Attorney Tamara Weber prosecuted the case with the assistance of Vanessa Vargas and Jeanne Carstensen. This prosecution was the result of an investigation by the HSI-led Document and Benefit Fraud Task Force and the Richmond Police Department into an organization that manufactured and sold counterfeit identity documents in Richmond, Pittsburg, Concord and San Rafael, California.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN JOSE, California – Cheryl Savage was sentenced last week to 14 months in prison, and ordered to pay a $10,000 fine and $123,463 in restitution for tax evasion, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in José M. Martinez announced.

Savage, age 57, of Monterey, California, pleaded guilty on September 12, 2012. According to court documents, Savage has been a realtor since 1981, becoming a broker in 1988 when she opened Steinbeck ERA Realty, a real estate brokerage in Salinas, California. On her business website, Savage describes herself as knowledgeable in 1031 Tax Deferred Exchanges. A 1031 Tax Deferred Exchange occurs when a taxpayer sells rental property and reinvests the sales proceeds in replacement rental property. In this way, a taxpayer can defer the recognition of capital gains tax until the replacement rental property is sold.

In 2004 Savage sold two rental properties, realizing $777,014 taxable gain. Savage used those sales proceeds to purchase her primary residence at Via Del Milagro in Monterey, California. In October 2005, she filed her 2004 federal income tax return falsely reporting that the proceeds from the sale of her rental properties were used to purchase a replacement rental property. Savage also falsely reported that she had received rental income from Via Del Milagro. The rental payments Savage reported on Schedule E of her 2004 federal income tax return were actually from a tenant who leased another property Savage owned.

Savage was charged by a federal grand jury on October 4, 2011 with three counts of tax evasion. She pleaded guilty to one count.

The case is being prosecuted Assistant U.S. Attorney Cynthia Stier. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND, Calif. – Tonya Gilard and Tierre Crummie pleaded guilty last week to conspiring to file false tax returns, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.

According to the plea agreements, in January 2009, Gilard and Crummie assisted in filing false federal income tax returns with the IRS. Gilard obtained the personal identifying information of others, including her son, Crummie, which she used to file false federal income tax returns. Gilard and Crummie also filed tax returns in their own names that falsely claimed entitlement to the first-time homebuyer’s credit.

In furtherance of the conspiracy, Crummie provided Gilard with individuals’ bank account information and e-mail addresses, while another person provided names to use on the false tax returns. On April 30, 2009, a search warrant was executed at the defendants’ residence where $69,800.10 was seized. The defendants admitted the seized money was proceeds from the false refund scheme.

In total, 91 false federal income tax returns were filed as part of this scheme and $688,687 in false refunds were issued by the IRS.

Gilard, 44 and Crummie, 24, both of Pittsburg, California, were indicted on August 8, 2012. They were charged with one count of conspiracy to file false claims. They pleaded guilty to the sole count in the indictment.

The maximum statutory penalty for conspiracy to file false claims, in violation of Title 18 U.S.C. § 286 is 10 years in prison and a $250,000 fine. However, any sentence following conviction would 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.

Thomas Newman is the Assistant U.S. Attorney who is prosecuting this case along with Special Assistant U.S. Attorney Charles Parker. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Earlier this week a federal grand jury in San Francisco indicted Blessed Marvelous Herve, a/k/a Rodrigue Herve Ngandou, a/k/a Herve Rodrigue Ngandou, a/k/a Blessed Roll Herve, of San Francisco, for wire fraud, United States Attorney MELINDA HAAG announced.

According to the Indictment, Herve, 41, devised and executed a scheme to defraud victims out of approximately $1.6 million. Herve claimed that his father was the President of the Congo and a multi-billionaire, but that the United States government had seized Herve’s assets, in excess of $43,000,000. Herve promised to pay bonus sums of more than $1,500,000 to victims in exchange for the victims’ financial support of Herve’s quest to obtain the $43,000,000 that the government purportedly had seized.

Herve also claimed that as a result the federal court case involving his seized funds, he was sent to federal prison from 2009 through 2012. During this time, Herve solicited funds from victims to assist with his alleged ongoing court proceedings and his incarceration. Herve again promised full repayment of victims’ money plus large bonuses upon the completion of his federal case and release of his funds. Specifically, in October 2012, Herve solicited and received $47,000 from a victim by falsely claiming that he needed the money to pay the Internal Revenue Service to satisfy the final judgment entered against him.

According to a criminal complaint filed in the same matter further, one of the victims was a real estate agent to whom Herve promised that his father, the multi-billionaire president of the Congo, would purchase tens of millions of dollars in real estate. That victim gave Herve tens of thousands of dollars to assist in the purported father’s real estate tours, such as the rental of bulletproof limousines. The criminal complaint alleges that to lure in the victims and bolster his credibility, Herve showed various documents, such as a letter written to him from a United States Senator, copies of awards of recognition he received from the City and County of San Francisco, a certificate of Special Congressional Recognition from a Member of Congress. When the victims ran out of money, Herve claimed that he was being deported to Puerto Rico and was not heard from again.

Herve, born in the Republic of Congo, was granted asylum in the United States in 1999 and became a United States citizen earlier this year.

Herve was arrested on a criminal complaint on April 24, 2013, in San Francisco, and he made his initial appearance in federal court in San Francisco the following day. He is currently being held in custody. The defendant's next scheduled appearance is May 22, 2013, at 11:00 a.m. for further detention proceedings before Magistrate Judge Nathanael Cousins. Herve’s first appearance in district court is scheduled before Judge John Tigar on May 31, 2013 at 9:30 a.m.

The maximum statutory penalty for wire fraud, in violation of 18 U.S.C. § 1343, is 20 years imprisonment and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Hallie Hoffman is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elizabeth Garcia. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the United States Department of Homeland Security.

Please note, an indictment contains only allegations against an individual and, as with all defendants, Herve must be presumed innocent unless and until proven guilty.

 

 

 

 

 

 

 

 

 

SAN JOSE, Calif. – James P. Kleier was charged yesterday with three counts of failure to file a tax return, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.

According to the information, during 2008, 2009, and 2010, Kleier received gross income that included self-employment income in the amounts of $624,923, $476,088, and $200,734, respectively. He was required by law to file a federal income tax return with the IRS in 2008, 2009 and 2010, and willfully failed to do so.

Kleier, of San Francisco, is scheduled to make his initial appearance on June, 3, 2013, before Magistrate Judge Laurel Beeler.

The maximum statutory penalty for each count of failure to file a tax return, in violation of 26 U.S.C. § 7203 is one year imprisonment and a fine of $100,000. However, any sentence following conviction would be imposed by the court 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 Thomas Newman and Special Assistant U.S. Attorney Charles Parker are prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.

Please note, an information contains only allegations against an individual and, as with all defendants, Kleier must be presumed innocent unless and until proven guilty.

(Kleier Information )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO– Roy Lin and John Lin were sentenced yesterday to 30 months and 20 months in prison, respectively, for their roles in operating a fraudulent billing scheme to place charges on customers’ telephone bills, United States Attorney Melinda Haag announced.

Roy Lin pleaded guilty on December 11, 2012, to one count of mail fraud and one count of money laundering. His brother, John Lin, pleaded guilty on December 11, 2012, to one count of mail fraud. According to the plea agreements, the Lins admitted to running INC21.com Corporation (INC21), including its affiliates GlobalYP, JumPage Solutions, and GoFaxer. INC21, based in San Francisco, provided Internet-based services and charged consumers for the services on the consumers’ local telephone bills, among other methods.

The Lin brothers fraudulently obtained access to bill for services on the consumers’ telephone bills by making false representations on applications. These applications were submitted to telephone companies in order to be approved to bill consumers in this manner. At sentencing, the Court found that through this scheme, INC21 and its affiliates collected revenues of between $2,500,000 and $7,000,000 from more than 250 victims.

Roy Lin, 43, and John Lin, 41, both of San Francisco, were indicted on March 27, 2012. Roy Lin and John Lin were each charged with conspiracy to commit mail fraud, six counts of mail fraud, and three counts of money laundering.

The sentence was handed down by U.S. District Court Judge William H. Alsup. Roy Lin was sentenced to 30 months in prison for one count of wire fraud and one count of money laundering, in violation of 18 U.S.C. § 1341 and 18 U.S.C. § 1957, respectively. John Lin was sentenced to 20 months in prison for wire fraud, in violation of 18 U.S.C. § 1341. Judge Alsup sentenced both defendants to a 3 year period of supervised release to follow their prison terms. Each defendant will begin serving his sentence on September 3, 2013.

Kyle Waldinger and Hallie Hoffman are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth and Elizabeth Garcia. The prosecution is the result of an investigation by the United States Postal Inspection Service and the Internal Revenue Service, Criminal Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO - The California Rural Indian Health Board Inc. (“CRIHB”), a nontribal entity and grantee of the U.S. Department of Health and Human Services (“HHS”), Substance Abuse and Mental Health Services Administration (“SAMHSA”), agreed to pay the United States $532,000, and to be terminated from an existing SAMHSA grant, thereby relinquishing funds valued at over $4.6 million, announced United States Attorney Melinda Haag. In addition, CRIHB will be subject to certain administrative conditions imposed by SAMHSA, and will not be eligible to apply for any new SAMHSA funding opportunities for two federal fiscal years.

The settlement resolves a lawsuit filed against CRIHB in July 2012 by the U.S. Attorney’s Office under the federal False Claims Act, 31 U.S.C. §§ 3729-33. The United States alleged that CRIHB submitted false claims by, among other things, eliminating the substance abuse screening and assessment required of certain Access to Recovery (“ATR”) program applicants, and instructing ATR service providers to pay for prohibited expenses, such as the clients’ rent, mortgage, utilities, and auto repairs. The lawsuit further alleged that CRIHB instructed the ATR service providers to bypass voucher rules, all contrary to the terms of the ATR grant and HHS regulations.

“This settlement is a victory for all ATR clients who need substance and alcohol abuse treatment and recovery support. It sends a clear message that my office is committed to ensuring that federal grant funds are used for their intended purpose.” U.S. Attorney Haag said.

Gioconda Molinari and Douglas Chang are the Assistant U.S. Attorneys who handled the case with the assistance of Paralegal Tiffani Chiu and Auditor Michael Zehr. The settlement is the result of a four-year investigation by the HHS-Office of Inspector General, led by Special Agent Jennifer Spaulding.

(Final Amended Complaint )

(Final Addendum A )

(Final Addendum B )

(Final Executed Agreement )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO - Gabriel Uribe-Bautista pleaded guilty in federal court in San Francisco on April 23, 2013 to distribution of cocaine and 500 grams or more of a mixture and substance containing methamphetamine, United States Attorney Melinda Haag announced.

In pleading guilty, Uribe-Bautista admitted that on August 24, 2012, he possessed and attempted to ship two packages to the Philippines containing a total of 2.87 net kilograms of a mixture and substance containing methamphetamine and 27.96 net grams of cocaine. Uribe-Bautista admitted that obtained the methamphetamine and cocaine from an individual with the understanding that he would ship them to the Philippines, and he accepted money from the individual in return for arranging shipment of the drugs. On August, 24, 2012, Uribe-Bautista traveled from Redwood City to the ABS-CBN International shipping company in Redwood Shores, California, with packages containing the methamphetamine and cocaine. He took the packages into the shipping company and arranged for them to be shipped to the Philippines, using a fake name that he had been given to put on the boxes. Uribe-Bautista admitted that he had previously shipped packages for the same individual in a similar manner.

Authorities were tipped off to investigate when employees at the shipping company notified law enforcement because they found large quantities of an unknown white substance in the packages that had been dropped off for shipment.

Uribe-Bautista, 37 years old, a Mexican citizen, was indicted by a federal Grand Jury on January 3, 2013. He was charged with two counts of possession with intent to distribute and distribution of cocaine and 500 grams or more of a mixture and substance containing methamphetamine in violation of 21 U.S.C. § 841(a)(1), (b)(1)(A)(viii), and (b)(1)(C). Under the plea agreement, Uribe-Bautista pleaded guilty to both counts.

Uribe-Bautista has been in continuous federal custody since December 27, 2012.

Uribe-Bautista’s sentencing is scheduled for July 9, 2013 before Judge Richard Seeborg in San Francisco. The maximum statutory penalty for possession with intent to distribute and distribution of 500 grams or more of a mixture and substance containing methamphetamine in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii) is life imprisonment and a fine of $10,000,000. This violation also carries a mandatory minimum statutory penalty of 10 years imprisonment and 5 years of supervised release. The maximum statutory penalty for possession with intent to distribute and distribution of cocaine in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C) is 20 years and a fine of $1,000,000. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The prosecution is the result of an investigation by the Drug Enforcement Administration and the San Mateo County Narcotics Task Force.

(Uribe-Bautista Indictment )