Northern District of California

OAKLAND, Calif. – Ana Lissa Reyes, of San Lorenzo, Calif., was arraigned yesterday on an information charging her with multiple counts of mail fraud and tax evasion, United States Attorney Melinda Haag and IRS Criminal Investigation Special Agent in Charge Jose M. Martinez announced.

According to the information, Reyes is alleged to have worked as a secretary, office manager and paralegal for a Bay Area personal injury law firm. From about 2006 through June 2011, Reyes, without authorization, settled claims without the knowledge of the law firm or its clients and stole the settlement proceeds. It is also alleged that Reyes engaged clients without the law firm’s knowledge and stole client retainer fee payments. To carry out the scheme to defraud, Reyes created a bogus company to correspond with clients without the law firm’s knowledge and to defraud the clients into believing their cases were ongoing.

Reyes is also charged with willfully attempting to defeat a large part of the income tax due and owing for the calendar years 2006, 2007, 2008, 2009, 2010 and 2011. It is alleged that, for each of those tax years, Reyes knew her joint taxable income was substantially in excess of the amount stated on the returns, and, upon the additional taxable income, a substantial additional tax was due and owing to the United States.

Reyes made her initial appearance in federal court in Oakland yesterday and is currently out on bond. She is next scheduled to appear in federal court in Oakland at 2 p.m. on Feb. 28, 2013, for a status hearing before Judge Yvonne Gonzalez Rogers.

The maximum statutory penalty for each count of mail fraud in violation of 18 U.S.C. § 1341 is 20 years in prison and a fine of $250,000. The maximum statutory penalty for each count of tax evasion in violation of 26 U.S.C. § 7201 is six years in prison 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.

AUSA Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of a year-long investigation by the Federal Bureau of Investigation and IRS, Criminal Investigation.

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

(Reyes Information )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN JOSE, Calif. – Christopher B. Berg of Portola Valley, Calif., entered a plea of guilty yesterday to willful failure to file the required report of foreign bank account (FBAR) for an account he controlled at United Bank of Switzerland AG (UBS), United States Attorney Melinda Haag announced.

In pleading guilty Berg admitted that in 1999, he began working as a consultant in the furniture industry. In 2000, he met with a Swiss financial consultant and Vice President of Banking at UBS in San Francisco, Calif., regarding setting up a bank account at UBS in Switzerland to shelter a portion of his consulting income from taxation. Beginning in 2001 and continuing through 2005, funds representing $642,069 in compensation earned by Berg from consulting services were deposited by wire transfer to UBS accounts. Berg used the money in these accounts at UBS in Switzerland to purchase a vehicle, to obtain cash while in Europe, and to pay the balance on a Eurocard he used while traveling in Europe. Berg did not disclose the existence of his accounts at UBS in Switzerland to his Certified Public Accountant, and did not disclose the income earned by these accounts or the consulting income deposited to the accounts. The tax harm associated with Berg’s conduct is $270,757.

United States citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. Additionally, U.S. citizens and residents must file an FBAR with the United States Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.

On Dec. 18, 2012, Berg of Portola Valley, Calif., was charged with one count of Willfully Violating Foreign Bank Account Reporting Requirements. Under the plea agreement, Berg pled guilty to that count.

Berg is scheduled to be sentenced on July 10, 2013, before United States District Court Judge Lucy H. Koh in San Jose. The maximum statutory penalty for a violation of 31 U.S.C. §§ 5314 and 5322(a) is five years in prison 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.

Trial attorneys from the Department of Justice Tax Division are prosecuting the case. The prosecution is the result of an investigation by IRS - Criminal Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Michael Chen, the owner of Fune Ya Japanese Restaurant in San Francisco was sentenced yesterday to 33 months in prison and ordered to pay restitution in the amount of $459,105 for filing false federal corporate income tax returns with the Internal Revenue Service (IRS), and mail fraud for filing false sales tax returns with the California Board of Equalization, United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge Jose M. Martinez announced.

During a five day jury trial in March, 2012, a federal jury found that Michael Chen filed a false 2004 U.S. income tax return for an S Corporation (Form 1120S) for his restaurant, Fune Ya Japanese Restaurant; failed to file corporate income tax returns for Fune Ya Japanese Restaurant for 2005 and 2006; filed nine false employer’s quarterly federal tax returns (Forms 941) with the IRS, and used the U.S. mail to file nine false quarterly sales and use tax returns with the California Board of Equalization. Evidence at trial showed that Chen maintained detailed records of Fune Ya’s daily receipts in twenty-six boxes marked “Seasoned Octopus.” The boxes were stored in a crawl space beneath the restaurant floor. The cash sales shown on Fune Ya’s receipts were not reported to the IRS. The evidence also showed that Chen maintained an encrypted Excel spreadsheet documenting $1,910,803 in sales, while he reported $450,165 in sales to the California Board of Equalization, and $65,738 in sales to the IRS. Chen also paid Fune Ya employees cash wages totaling $548,919 for the 2004 through 2006 tax years. Employees received cash wages in white envelopes each payday. Chen failed to include these cash wages on the quarterly payroll tax returns (Forms 941) filed with the IRS.

Chen was convicted by a jury on March 27, 2012. The sentence was handed down by U.S. District Court Judge Maxine Chesney following a jury trial on 10 counts of filing false tax returns in violation of 26 U.S.C. Section 7206(1); two counts of failure to file tax returns in violation of 26 U.S.C. Section 7203; and nine counts of mail fraud in violation of 18 U.S.C. Section 1341. Judge Chesney also sentence the defendant to a three-year term of supervised release. The defendant is scheduled to self-surrender and begin serving his sentence on March 27, 2013.

Cynthia Stier and Damali Taylor are the Assistant U.S. Attorneys who prosecuted the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN JOSE - Rodney Hatfield pleaded guilty in federal court in San Jose today to conspiracy to commit wire fraud, United States Attorney MELINDA HAAG announced.

In pleading guilty, Mr. Hatfield admitted that he conspired with his co-defendant to obtain money from investors by means of materially false representations about the value of their investment accounts. Mr. Hatfield admitted that he defrauded members of his own Jehovah’s Witness congregation in Watsonville, California. As part of the conspiracy, he solicited millions of dollars in investment money from his fellow congregants and others to invest in Landmark Trading Company, LLC (“Landmark”), a company he and his co-defendant had set up as a holding company for the purpose of trading in foreign currency exchange.

While Landmark did initially engage in legitimate currency trades on behalf of its investors, the company quickly began to run a negative return on its trading activity. Rather than accurately report this negative trading activity to investors, Hatfield and his co-defendant distributed false reports to investors in e-mails claiming that their trading accounts were profitable and increasing in value. While some investors did receive all or most of their principal back, Hatfield admitted his actions resulted in a net loss to investors of more $1 million but less than $2.5 million.

Mr. Hatfield, age 63, of Salinas, California, was indicted by a federal Grand Jury on December 17, 2009. He was charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, along with nine counts of wire fraud, in violation of 18 U.S.C. § 1343. Under the plea agreement, Mr. Hatfield pled guilty to the first count of the Indictment, conspiracy to commit wire fraud.

Mr. Hatfield remains free on a secured bond pending sentencing on Monday, June 24, 2013, at 1:30 p.m., before the Honorable Edward J. Davila in San Jose. The maximum statutory penalty for a violation of conspiracy to commit wire fraud is 20 years of imprisonment, a fine of $250,000 or twice the amount of gain or loss, whichever is greater, restitution if appropriate, and a special assessment. 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.

Timothy J. Lucey is the Assistant United States Attorney who is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of a multi-year investigation by the United States Postal Inspection Service. The Commodities Future Trading Commission and the United States Trustee for the Northern District of California were also instrumental in this investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Hari J. Dillon, the former President and Executive Director of the Vanguard Public Foundation, was sentenced today to 40 months in prison for diverting funds directed for the benefit of the Vanguard Public Foundation to his own purposes, United States Attorney Melinda Haag announced.

Dillon pleaded guilty in July 2010 to wire fraud and money laundering. According to the plea agreement and trial testimony in United States v. Samuel “Mouli” Cohen (CR 10-0547 CRB), Dillon met Mouli Cohen (aka Samuel Cohen) in approximately August 2002. Cohen presented Dillon with an investment opportunity through which Dillon and others associated with the Vanguard Public Foundation – a non-profit charitable organization – could purchase Cohen’s founder’s shares in his company, Ecast, which Cohen falsely claimed was soon to be acquired by Microsoft. According to Cohen, this would allow Dillon, Vanguard donors, and Vanguard to reap substantial profits after the acquisition of Ecast.

From late 2002 through mid-2003, individuals associated with Vanguard, including Dillon, paid more than $6 million to Cohen to purchase some of Cohen’s founder’s shares in Ecast. During the ensuing years, Cohen claimed the acquisition was suffering various delays by United States and European regulators, and that the investors had to pay additional bonds and fees to maintain their stake in the deal. From approximately late 2004 through 2007, individuals associated with Vanguard contributed more than an additional $25 million purportedly to cover these fees. In fact, there never was any such acquisition.

Dillon admitted that while soliciting and collecting these fees, he defrauded various victims by intentionally failing to tell them that he intended to and did use some of their contributions for his own personal expenses. For example, according to his plea agreement, Dillon used approximately $60,000 to pay his American Express bills. In addition, the government noted in connection with sentencing that Dillon used victim money toward luxury hotel expenses, fine dining, limousine travel and other personal expenses. In all, Dillon admitted that of the tens of millions he solicited and collected for this investment, most of which he passed on to Cohen, Dillon skimmed not less than $2.5 million, defrauding his victims out of that amount.

Dillon, 64, formerly of San Francisco, was charged by Information in June 2010. He was charged with two counts of wire fraud and two counts of money laundering. He pleaded guilty to all four counts.

In November 2011, after a one-month trial, a federal jury convicted Samuel “Mouli” Cohen of 15 counts of wire fraud, 11 counts of money laundering, and 3 counts of tax evasion. Dillon testified at that trial. In April 2012, Cohen was sentenced to 264 months in prison. He is currently in custody, and he has appealed his convictions and sentence.

The sentence was handed down by United States District Court Judge Charles R. Breyer. Judge Breyer also sentenced Dillon to a three-year period of supervised release following his prison term. The parties are scheduled to appear before Judge Breyer on Feb. 19 to discuss a date for Dillon to surrender to serve his prison sentence.

Hallie Hoffman and Doug Sprague are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth and Beth Margen. The prosecution is the result of a one-year investigation by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Taneshia Stephenson yesterday was sentenced to 18 months in prison for conspiring to file false claims, United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge Jose M. Martinez announced.

Stephenson pleaded guilty on Oct. 3, 2012. According to her plea agreement, beginning in July 2008, Stephenson helped other individuals obtain fraudulent tax refunds from the Internal Revenue Service based on tax returns that were filed using stolen identities. Stephenson admitted that each of the tax returns she assisted in filing claimed fictitious Social Security income and withholding as a basis for the fraudulent tax refund. As part of the scheme, Stephenson and her coconspirators asked the IRS to directly deposit the fraudulent refunds into a bank account that Stephenson could access. In 2008, Stephenson allowed her bank account to be used by another individual for that purpose.

According to documents filed with the court, this case is part of a larger investigation involving more than 20 other defendants. In response to these types of cases, the Justice Department’s Tax Division issued a new directive to further the efforts of the Tax Division and help U.S. Attorneys’ Offices respond quickly and effectively to the challenges in stolen identity refund fraud (SIRF) cases. To further this goal, Tax Division Directive 144, which took effect on Oct. 1, 2012, was issued to streamline the process for prosecuting these offenses.

Thomas Newman is the Assistant U.S. Attorney who prosecuted this case. The prosecutions are the result of an investigation by the Pittsburg Police Department and the Internal Revenue Service, Criminal Investigation Division.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN JOSE, Calif. – Mike Gama was convicted by a federal jury Tuesday of both possession with intent to distribute a kilogram or more of heroin and importation of a kilogram or more of heroin , United States Attorney Melinda Haag announced.

The jury found that Gama had knowingly participated in a scheme to import heroin into the United States from Mexico when he accepted delivery of a package containing more than a kilogram of heroin concealed within a wooden tortilla press, and that he had possessed that heroin with the intent to distribute it to someone else. The guilty verdict followed a one-week jury trial before U.S. District Court Judge Edward J. Davila.

Evidence at trial showed that on June 20, 2011, Gama, 23, of Mountain View, Calif., received a package shipped from an address in Michoacan, Mexico via the commercial shipping company, DHL Express. The DHL package, which was addressed to him personally, contained, among other things, a wooden tortilla press containing 1.07 kilograms of a black tar-like substance, which subsequent lab testing confirmed as Mexican black tar heroin. Gama signed for the package and a search warrant was executed immediately thereafter to recover the package containing the heroin.

The DHL package addressed to Gama containing the heroin was first intercepted by Customs and Border Protection officers inspecting international shipments arriving at the DHL hub in Cincinnati, Ohio. HSI agents in San Jose were alerted to the package and were prepared to seize the package and the heroin when it arrived in California.

Gama was indicted by a federal grand jury on July 6, 2011. He was charged with one count of possession with intent to distribute a kilogram or more of heroin and one count of importation of a kilogram or more of heroin.

Following the guilty verdict, Gama, who had been free on bond pending trial, was remanded immediately into the custody of the United States Marshal Service. Gama’s sentencing is scheduled for April 15, 2013, before United States District Court Judge Edward J. Davila in San Jose. The maximum statutory penalty for each count in violation of Title 21 of the United States Code, Sections 841 and 952 is life in prison, with a statutory mandatory minimum term of 10 years in prison, and a maximum fine of $10 million. 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.

Gary G. Fry and Amie D. Rooney are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Tracey Andersen and Laurie Worthen. The prosecution is the result of an 18-month investigation by U.S. Immigration and Customs Enforcement, Homeland Security Investigations and Customs and Border Protection.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oakland, Calif. – Naushad Buksh today pleaded guilty to filing a false tax return and aiding and assisting in the preparation of false tax returns, United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge Jose M. Martinez announced.

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, Calif., and was responsible for all income and expenses at that business. Buksh intentionally signed and filed with the IRS false U.S. Individual Income Tax Returns for 2007 through 2010, which underreported his gross receipts by $599,226 and 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 knew the deductions and credits were false because he fabricated them. 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.

Buksh, 56, of Hayward, Calif., was charged on May 15, 2012, with four counts of making and subscribing false tax returns and 41 counts of aiding and assisting in the preparation of false tax returns. He pleaded guilty to one count of each. Buksh is next scheduled to appear in federal court in Oakland at 2 p.m. on April 11 for sentencing before United States District Court Judge Yvonne Gonzalez Rogers.

The maximum statutory penalty for each count of making and subscribing to a false income tax return, in violation of Title 26, U.S.C § 7206(1), and aiding and assisting in the preparing of false tax returns, in violation of Title 26, U.S.C § 7206(2), is three years in prison 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.

Thomas Moore is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Mills College, a liberal arts college for women in Oakland, Calif., entered an agreement with the United States to bring its campus into full compliance with Title III of the Americans with Disabilities Act, United States Attorney Melinda Haag announced.

The settlement agreement resolves an investigation and compliance review of barriers to access by individuals with disabilities in buildings throughout the campus. Mills College fully cooperated in the review. The College agreed to remove all architectural barriers in its existing facilities, and to undertake alterations and construct new facilities so that they are readily accessible to and usable by people with disabilities.

“The ADA requires that people with disabilities have full access to public and private institutions,” U.S. Attorney Haag said . “We commend Mills College for its cooperation and commitment to providing people with disabilities unfettered access to its facilities. This agreement guarantees students and visitors with disabilities such access for years to come.”

Under the settlement, Mills is required to remedy approximately 260 separate violations that were revealed in a campus-wide survey conducted in March 2010. Mills is required to complete the majority of the remedial work by the end of 2014, while it will have a longer time to complete others. Remedial measures required under the agreement include installing or moving grab bars, towel dispensers, and signs; adjusting the force required to open doors; installing or adjusting the slope of ramps; installing accessible toilet stalls, and adjusting the height and center lines of existing toilet seats; adjusting the height of equipment and lab counters; adjusting the height of drinking fountains; making lecture halls, auditoriums, and the gymnasium fully wheelchair accessible; installing handrails; and installing more van-accessible parking.

Assistant U.S. Attorney Steven J. Saltiel handled the matter on behalf of the U.S. Attorney’s Office, together with Program Architect Diane Perry from the U.S. Department of Justice, Civil Rights Division, Disability Rights Section.

(Mills College Signed Settlement Agreement )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OAKLAND, Calif. – Today, Van Do Nguyen was sentenced to 72 months in prison and Loc Huynh was sentenced to 87 months for conspiracy to possess with the intent to distribute marijuana, possession with the intent to distribute marijuana, and being felons in possession of firearms, United States Attorney Melinda Haag announced.

Huynh and Nguyen were arrested on Jan. 10, 2012, after complaints from citizens led to an investigation by the San Leandro Police Department. Huynh pled guilty on Oct. 31, 2012, and Nguyen pled guilty on Nov. 7, 2012.

In their plea agreements, Huynh and Nguyen admitted that from August 2011 through January 2012, they operated a marijuana grow house at 3471 Carrillo Drive in San Leandro, Calif. They were found in possession of 82 mature marijuana plants, almost one kilogram of marijuana packaged for sale, a Norinco US 7.62 caliber rifle with a high capacity magazine, a Romak-Romarm 7.62 caliber assault rifle that had been stolen, and a .45 caliber Smith & Wesson semiautomatic pistol. Nguyen admitted that he also possessed a .40 caliber Smith & Wesson semiautomatic pistol. In addition, approximately $10,000 in cash, a 9mm Bryco Arms semiautomatic pistol, and more than 100 rounds of various caliber ammunition were found at 3471 Carrillo Drive and seized by law enforcement.

Nguyen, 27, of Alameda, Calif., had previously been convicted in 2005 for carrying a loaded firearm in public. Huynh, 20, of Oakland, had been convicted in 2011 for assault with a deadly weapon not a firearm.

The sentences were handed down by U.S. District Court Judge Phyllis J. Hamilton who also sentenced the defendants to three-year periods of supervised release. Nguyen and Huynh were indicted, with others, by a federal grand jury on June 7, 2012. Co-defendant Vincent Nguyen pled guilty on Oct. 31, 2012, and is scheduled to be sentenced on March 6, 2013.

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 Federal Bureau of Investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Emmanuel Amankwa, a passenger who was transiting San Francisco International Airport (SFO) on his way out of the country, pleaded guilty last week to possessing with the intent to distribute 500 grams or more of cocaine, United States Attorney Melinda Haag announced.

Amankwa was arrested on Oct. 23, 2012, at SFO while attempting to board a flight to Japan. A subsequent investigation by officers from the U.S. Customs and Border Patrol and agents from U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) revealed that Amankwa was carrying 995 grams of cocaine in 100 latex-wrapped pellets inside his body. Amankwa was attempting to smuggle the cocaine into Japan.

Amankwa was charged by complaint on Oct. 23, 2012. A federal grand jury returned a one-count indictment on Nov. 8, 2012. He pleaded guilty on Jan. 17, 2012.

Under the terms of a plea agreement between the government and Amankwa, Amankwa faces a sentence of 60 to 80 months in federal prison, followed by four years of supervised release. He also must pay $16,178 in restitution for the medical costs associated with collecting the cocaine pellets he had ingested. Notwithstanding this agreement, the court will determine and impose a sentence on Amankwa after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

U.S. District Judge Jeffrey S. White is scheduled to impose sentence on April 11, 2013.

(Amankwa Indictment )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – A federal grand jury in the Northern District of California indicted 21 year-old Naomi Antunez yesterday for possessing with the intent to distribute 500 grams or more of methamphetamine, United States Attorney Melinda Haag announced.

According to a criminal complaint filed in the case, Antunez, a resident of Winston-Salem, N.C., is alleged to have brought almost 11 pounds of methamphetamine into the United States from Mexico on a commercial flight. The complaint alleges that the drugs were concealed inside a piece of wood furniture in Antunez’s luggage. Alert officers of the U.S. Customs and Border Patrol discovered the drugs during Antunez’s entry into the United States at San Francisco International airport on Dec. 13, 2012.

Antunez was charged by complaint on Dec. 13, 2012. A federal grand jury returned a one-count indictment on Jan. 17, 2013. Antunez appeared in federal court this morning before U.S. Magistrate Judge Laurel Beeler and pleaded not guilty to the felony drug trafficking charge. She is next scheduled to appear in federal court on March 6, 2013, before U.S. District Judge Edward M. Chen.

Antunez faces 10 years to life in prison and a $10 million fine for violating Title 21 of the United Sates Code, sections 841(a)(1) and (b)(1)(A)(viii). 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.

The prosecution is the result of an investigation by the U.S. Customs and Border Patrol and the Department of Homeland Security’s Investigations division.

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

(Naomi Antunez Indictment )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Crystal Ann Poole was sentenced to 27 months in prison today for tax evasion, bank fraud and Social Security fraud, United States Attorney Melinda Haag, Assistant Attorney General of the Justice Department’s Tax Division Kathryn Keneally, and IRS Special Agent in Charge Jose M. Martinez announced. U.S. District Judge Susan Illston ordered Poole to serve three years supervised release following her prison term and to pay $476,444.08 in restitution -- $400,197 to the IRS for the tax loss, $43,822.90 to the Community Bank of Mississippi for the loss associated with the bank fraud, and $32,424.18 to Wells Fargo for the loss associated with Poole’s misuse of a Social Security number.

Poole pled guilty to tax evasion, bank fraud and Social Security fraud on Sept. 10, 2012. According to court documents, Poole evaded taxes on more than $1.27 million in income that she earned from 1994 through the present as a registered nurse. During her career as a nurse, Poole failed to file returns with the IRS, failed to pay her taxes, used the Social Security number of another individual to hide income and assets, and filed false documents with her employers to stop them from withholding taxes from her wages.

According to the plea agreement, Poole committed bank fraud in 2006 when she applied for a loan of $335,000 from the Community Bank of Mississippi to buy a home in Florence, Miss. In her loan application, Poole misrepresented her financial circumstances by omitting debts and supplying a false Social Security number to conceal a then-pending bankruptcy and at least $150,000 in outstanding debts under her true Social Security number. Poole also submitted a falsified Form W-2, Wage and Tax Statement, that purported to be from her employer. This fraudulent document overstated her income and again listed a false Social Security number. Based on her fraudulent loan application, the bank approved the loan. Poole ultimately stopped making payments on the loan, resulting in foreclosure and a loss to the bank of $43,822.90.

According to the plea agreement, in 2007 Poole committed Social Security fraud when she used the Social Security number of an Alabama schoolteacher to obtain a $30,158.63 loan to purchase a Lexus. Poole ultimately stopped making payments on the car loan, resulting in a loss to Wells Fargo of $32,424.18. Poole purchased the schoolteacher’s Social Security number before 2003, when she was living in Georgia. Since then, Poole has used the schoolteacher’s Social Security number to open and maintain bank accounts, hold property, and purchase assets. In using the schoolteacher’s Social Security number, Poole intended to conceal the nature, extent, and location of her assets from the IRS.

Brian Bailey and Katherine Wong, Trial Attorneys with the United States Department of Justice, Tax Division, prosecuted the case. The case was investigated by the Internal Revenue Service, Criminal Investigation.

(Poole Indictment )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Robert Wildman, 31, pleaded guilty in federal court in San Francisco yesterday afternoon to one count of possession with intent to distribute heroin and one count of possession of firearms in furtherance of a drug trafficking crime, announced United States Attorney Melinda Haag.

During yesterday’s plea hearing before U.S. District Court Judge Richard Seeborg, Wildman admitted that on Aug. 22, 2012, he was sitting in the driver’s seat of a Jeep Grand Cherokee in a parking lot when he was approached by a Eureka Police Department officer. As the police officer walked towards Wildman’s vehicle, Wildman drove off through the parking lot and then led the officer on a chase through residential streets and onto Highway 101. The chase lasted approximately 30 minutes. Wildman admitted that he ran through red lights and stop signs and also drove into oncoming traffic during the chase. Also during the chase, Wildman threw a loaded M-11 pistol out of the window of his vehicle. Wildman was eventually apprehended after he ran over a spike strip that officers had set up on the highway. Wildman admitted that he knowingly possessed the SKS assault rifle and 19.6 grams of heroin that officers located in his vehicle.

Wildman has been in custody since his arrest. He is scheduled to be sentenced on April 2, before Judge Richard Seeborg in San Francisco. At sentencing, Wildman will face a minimum mandatory sentence of five years and a maximum sentence of life in prison, a fine of up to $1 million and a maximum term of life on supervised release.

The case is being prosecuted by Assistant U.S. Attorney Randy Luskey with the assistance of Daniel Charlier-Smith. This case was investigated by the Federal Bureau of Investigation’s Eureka Resident Agency and the Eureka Police Department.

(Robert Wildman Information )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN JOSE, Calif. – An international hedge fund founder was sentenced today to 12 years in prison for wire fraud arising out of a white collar investment fraud scheme that defrauded multiple investors out of millions of dollars, United States Attorney Melinda Haag announced.

Following a three week trial, a federal jury on June 20, 2012, convicted Albert Ke-Jeng Hu, 51, formerly of Fremont, Calif., and Hong Kong, of seven counts of wire fraud in violation of Title 18, United States Code, Section 1343. Evidence at trial showed that Hu carried out an investment fraud scheme from 2002 to 2008 that defrauded multiple investors of millions of dollars. Hu founded and operated hedge funds under the names Asenqua Beta Fund and Fireside LS Fund out of locations in San Francisco, Sunnyvale and Singapore. Hu lied to investors by telling them that he had more than $200 million in his hedge funds and that they would receive rates of return as high as 20 to 30 percent a year. Hu also lied about entities that were supposedly affiliated with his hedge funds, such as a prominent law firm, an auditing firm, a hedge fund administrator and a chief financial officer. In reality, none of those entities ever had any connection with Hu’s hedge funds. Evidence at trial showed that Hu targeted prominent members of the Chinese-American business community in Silicon Valley as part of his investment fraud scheme. Ultimately, Hu invested virtually none of his investors’ money, instead diverting it to pay his own personal expenses as well as prior investors and others.

In sentencing Hu, U.S. District Court Judge Ronald M. Whyte emphasized the sophistication of Hu’s fraudulent scheme that “took a lot of money from a group of people and had a major impact on their lives." In imposing sentence, Judge Whyte also stressed the need “to send a message that this type of fraud should not be tolerated.”

Hu has been in custody since his arrest in Hong Kong on March 17, 2009. After the United States successfully obtained Hu’s extradition from Hong Kong, former United States Magistrate Judge Patricia V. Trumbull in 2009 granted the United States motion to have Hu detained pending trial as a flight risk. Judge Whyte also sentenced the defendant to three-year period of supervised release and ordered a hearing on restitution to take place on March 18, 2013.

Assistant United States Attorneys Joseph Fazioli and Timothy Lucey prosecuted the case with the assistance of Legal Assistants Nina Burney and Kamille Singh and Paralegal Specialist Lakisha Holliman. The prosecution is the result of a multi-year investigation by the Federal Bureau of Investigation. The United States Attorney’s Office recognizes the substantial and valuable assistance in this matter of the San Francisco Regional Office of the Securities and Exchange Commission and the Office of International Affairs of the Department of Justice.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.

(Albert Hu Indictment )

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN FRANCISCO – Stephen Leone was sentenced today to 135 months in prison and ordered to pay $15,000 in restitution for transportation of child pornography, United States Attorney Melinda Haag announced.

Leone pleaded guilty on Oct. 12, 2012, to a one-count Information charging him with violating 18 U.S.C. § 2252(a)(1), transportation of child pornography. According to the plea agreement, Leone admitted that on Nov. 27, 2011, he made a video recording of a minor victim that he then transported to other electronic devices and media, and that he knew the video recording depicted conduct that qualifies as child pornography under federal law.

Leone, 50, of San Francisco, was indicted by a federal grand jury on June 7, 2012. He was charged with producing child pornography on two occasions, in approximately November 2011 and February 2012. He has been in continuous custody since his arrest by San Francisco police officers on April 22, 2012.

The sentence was handed down by U.S. District Court Judge Jeffrey S. White following a guilty plea to one count in violation of 18 U.S.C. § 2252(a)(1) (transportation of child pornography). Judge White also sentenced the defendant to a five-year period of supervised release, and ordered that he pay $15,000 in restitution to his minor victim.

Owen Martikan is the Assistant U.S. Attorney who prosecuted the case with the assistance of Rosario Calderon. The prosecution is the result of a three-month investigation by the San Francisco Police Department and the Federal Bureau of Investigation.

(Leone filed information )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAN JOSE, Calif. – Vernina Adams pleaded guilty in federal court in San Jose yesterday to one count of wire fraud and one count of aggravated identity theft, United States Attorney Melinda Haag announced.

In pleading guilty, Adams admitted that, beginning in March 2010 and continuing to approximately June 2010, she carried out a scheme to defraud Paymate, a credit card processing company located in Woodside, Calif., that processes payments for individuals who buy and sell goods on the Internet. Adams admitted that she created several fictitious businesses on the Internet using the names of other individuals, several of whom she knew to be real people. The fictitious businesses included slickmix.net, opened in the name of victim M.T.; and nicksonrental.com, opened in the name of victim T.N. In order to give the appearance of legitimacy to the fictitious Internet businesses, Adams opened e-mail accounts in those victims’ names with Internet service providers such as Yahoo!.

In addition, Adams admitted that she opened Paymate and bank accounts with MetaBank for each fictitious business in the victims’ true names and, using their identities, linked those bank accounts to designated Paymate accounts. For example, Adams admitted that she knew that victim T.N. was a real person, and she used T.N’s true name, social security number and date of birth to open a Paymate account that was linked to the fictitious business nicksonrental.com. After opening Paymate and bank accounts, Adams admitted that she used her own debit and credit cards as well as debit and credit cards belonging to her relatives and friends to pretend to purchase goods and services in amounts ranging from $1,000 to $7,000 from the fictitious businesses.

Adams admitted that, after Paymate deposited funds from the fictitious sales into the bank accounts associated with the businesses, she immediately withdrew the fraudulently-acquired funds from various automated teller machines in Pennsylvania. After several weeks, she contacted the credit card companies for the credit card that she used to initiate the fraudulent transaction to report that she had not received the goods or services. She also instructed her friends and relatives to report to credit card companies for the cards that were used to initiate the fraudulent transactions that they had not received the goods or services. The credit card companies then initiated a charge-back on the credit cards. When Paymate attempted to reclaim the funds from the bank accounts associated with the fictitious businesses, there were insufficient funds in the accounts because Adams had withdrawn all of the money from the purported sales.

Furthermore, Adams admitted using e-mail accounts linked to the fictitious businesses to communicate with Paymate regarding, among other things, payments from fictitious sales. Specifically, on July 7, 2010, she posed as victim M.T., whose name she had used to create the fictitious business slickmix.net, and e-mailed Paymate employee G.Q. using e-mail address mortazamix@yahoo.com. Adams admitted making false statements in the e-mail to induce Paymate to make payments on fraudulent transactions associated with slickmix.net.

Finally, Adams admitted that she conducted approximately 15 other fraudulent transactions involving Paymate, and agreed that the loss to Paymate was over $70,000, but less than $120,000.

Adams, 31, of Philadelphia, Penn., was indicted by a federal Grand Jury on July 25, 2012. She was charged with five counts of wire fraud, in violation of 18 U.S.C. § 1343, and two counts of aggravated identity theft, in violation of 18 U.S.C. §§ 1028A(a)(1)(A) and 1028A(c)(5). Under the plea agreement, Adams pled guilty to one count of wire fraud and one count of aggravated identity theft.

The sentencing of Adams is scheduled for April 24, 2013, before Judge Lucy H. Koh in San Jose. The maximum statutory penalty for each count of wire fraud, in violation of 18 U.S.C. § 1343 is 20 years in prison, and a fine of $250,000 plus restitution. The maximum statutory penalty of each count of aggravated identity theft, in violation of 18 U.S.C. §§ 1028A(a)(1)(A) and 1028A(c)(5) is a mandatory consecutive sentence of two 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.

Susan Knight is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal techs Elise Etter and Kamille Singh. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.

 

 

 

 

 

 

SAN FRANCISCO – Four Northern California residents were charged by a federal grand jury in San Francisco with robbery affecting interstate commerce, conspiracy to commit robbery affecting interstate commerce, possession of a firearm in furtherance of the robbery, conspiracy to possess with the intent to distribute marijuana, impersonating an officer and making a search or arrest while impersonating an officer, United States Attorney Melinda Haag announced.

Michael Puckett, 45, of Petaluma, Calif., made his initial appearance in federal court this morning and has been detained. He is next scheduled to appear in court tomorrow for identification of counsel. Terry Jacksen, 46, also of Petaluma, Eric Mendonca, 43, of Lake County, Calif., and Jack Pollack, 54 of Lake County, made their initial appearances yesterday. Mendonca was released on a $50,000 bond. Jacksen and Pollack remain in custody.

According to the indictment and criminal complaint, the defendants conspired to commit a home invasion robbery in Lake County, Calif., on Oct. 4, 2012. On that date, Pollack cased a residence before Jacksen, dressed up as a Lake County Sheriff’s Office Deputy carrying a holstered revolver and wearing a white cowboy hat, knocked on the door and informed the occupants that he was working with the Bureau of Alcohol, Tobacco, Firearms and Explosives and was there to conduct a search. Jacksen then handcuffed and zip-tied the occupants before searching the house and stealing 48 marijuana plants. The complaint alleges that Eric Mendonca, a former Petaluma Police Officer and Lake County Sheriff’s Office Deputy, provided Jacksen with the police uniforms. During a search of Mendonca and Jacksen’s property on Dec. 19, 2012, law-enforcement authorities located a holstered revolver, a set of Lake County Sheriff’s Office handcuffs, a white cowboy hat, various firearms and a cellular telephone containing images of Jacksen and Puckett posing in Lake County Sheriff’s Office uniforms with firearms hours before the robbery. A search of Pollack’s residence uncovered approximately twenty pounds of marijuana.

The charges and the possible prison sentence each defendant faces are as follows:

Jacksen

• One count of conspiracy to commit robbery affecting interstate commerce: 20 years for each count
• One count of robbery affecting interstate commerce: 20 years
• One count of possession of a firearm in furtherance of robbery: Life, with a mandatory consecutive minimum term of five years
• One count of conspiracy to distribute or possess with the intent to distribute marijuana: five years
• One count of impersonating an officer: three years
• One count of making a search while impersonating an officer: three years
• One count of felon in possession of a firearm: 10 years

Mendonca

• One count of conspiracy to commit robbery affecting interstate commerce: 20 years for each count
• One count of robbery affecting interstate commerce: 20 years
• One count of possession of a firearm in furtherance of robbery: Life, with a mandatory consecutive minimum term of imprisonment of five years
• One count of conspiracy to distribute or possess with the intent to distribute marijuana: five years
• One count of impersonating an officer: three years
• One count of making a search while impersonating an officer: three years

Pollack

• One count of conspiracy to commit robbery affecting interstate commerce: 20 years for each count
• One count of robbery affecting interstate commerce: 20 years
• One count of possession of a firearm in furtherance of robbery: Life, with a mandatory consecutive minimum term of imprisonment of five years
• One count of conspiracy to distribute or possess with the intent to distribute marijuana: five years
• One count of impersonating an officer: three years
• One count of making a search while impersonating an officer: three years
• One count of felon in possession of a firearm: 10 years
• One count of possession with the intent to distribute methamphetamine: 40 years, with a five year mandatory minimum
• One count of possession with the intent to distribute marijuana: five years

Puckett

• One count of conspiracy to commit robbery affecting interstate commerce: 20 years for each count
• One count of robbery affecting interstate commerce: 20 years
• One count of possession of a firearm in furtherance of robbery: Life, with a mandatory consecutive minimum term of imprisonment of five years
• One count of conspiracy to distribute or possess with the intent to distribute marijuana: five years
• One count of impersonating an officer: three years
• One count of making a search while impersonating an officer: three years

Each of the defendants pled not guilty to the charges. They are scheduled to appear in federal court in San Francisco at 2 p.m. on Jan. 22, 2012 before United States District Court Judge William Alsup.

Assistant United States Attorney Randy Luskey is prosecuting the case with the assistance of Daniel Charlier-Smith. The prosecution is the result of a joint investigation by the Lake County Sheriff’s Office and the Federal Bureau of Investigation’s Santa Rosa Resident Agency.

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

(Terry Jacksen et al indictment )