Jury Convicts Blue Springs Man of Money Laundering in Wife’s Embezzlement Scheme

KANSAS CITY, MO—Beth Phillips, United States Attorney for the Western District of Missouri, announced today that a Blue Springs, Mo., man has been convicted by a federal jury of money laundering related to his wife’s embezzlement of nearly $825,000 from her Sugar Creek, Mo., employer.

Thomas D. Hutchens, 41, of Blue Springs, was found guilty of seven counts of money laundering.

Hutchens was indicted by a federal grand jury on April 20, 2011. Hutchens conducted financial transactions with money that his wife, Shanna M. Hutchens, had embezzled from Richardson Hauling, Inc., in Sugar Creek. Both Thomas and Shanna Hutchens were employed by Richardson Hauling and Thomas Hutchens also operated his own business.

Shanna Hutchens stole $824,394 from Richardson Hauling between September 2004 and October 2008. During that time, the couple filed joint tax returns with the Internal Revenue Service and their adjusted gross income ranged from $1,886 to $62,731. Also during that time, $534,076 was deposited into a business bank account on which Thomas Hutchens was the sole signatory. Each of the seven counts of conviction charge Hutchens with making purchases from his business bank account with the embezzled funds. Those purchases included two Dodge Chargers, a Ford Excursion, a GMC Yukon Denali, a Caribbean cruise, a down payment on a house, and an IRS tax payment.

Shanna Hutchens pleaded guilty to bank fraud and money laundering and was sentenced on Nov. 9, 2010, to 46 months in federal prison without parole. The court also ordered her to pay $818,987 in restitution.

Following the presentation of evidence, the jury in the U.S. District Court in Kansas City deliberated for about six hours on Thursday, Dec. 1, 2011, before returning the guilty verdict to U.S. District Judge Gary A. Fenner, ending a trial that began Monday, Nov. 28, 2011.

Shanna Hutchens worked as a bookkeeper for Richardson Hauling. She was hired in May 2004 and began stealing in September 2004, which continued until she was caught in October 2008. She made out company checks to her husband and to herself and forged the business owners’ signatures on the checks, which she deposited into various bank accounts or cashed.

Shanna Hutchens created 242 fraudulent checks that totaled $824,394.02. During the time that she was employed by Richardson Hauling, Hutchens earned approximately $11,000 per year for part-time employment.

Hutchens and her husband used the stolen money to buy a bigger house and spent $30,000 for professional interior decoration. They bought or leased a series of at least 20 automotive/water vehicles—16 during the embezzlement and four after being caught. They also paid for such items as cruises, Chiefs season tickets, a personal trainer, multiple trips to Las Vegas and a rental lake house in Warsaw, Mo.

Although they sold numerous vehicles and appliances on Craigslist and eBay after being caught, they spent that money on themselves rather than for restitution. For example, they paid for professionals to install Christmas lights on their house, paid for a family cruise to the Bahamas, continued to make payments on a 22-foot boat throughout 2010 and continued to pay $500 per month rent on a lake house in 2010.

Under federal statutes, Hutchens is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000, on each of the seven counts of money laundering. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorneys Kate Mahoney and Jess Michaelsen. It was investigated by the FBI and the Sugar Creek, Mo., Police Department.

Detroit-Area Clinic Owner Sentenced to 78 Months in Prison for Role in $9.1 Million Medicare Fraud Scheme

WASHINGTON – Joaquin Tasis was sentenced today to 78 months in prison for his role in a $9.1 million Detroit-area Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).   

Tasis was sentenced by U.S. District Judge Arthur Tarnow in the Eastern District of Michigan.  In addition to his prison term, Tasis was sentenced to three years of supervised release and was ordered to pay $6 million in restitution, jointly and severally with his co-defendants. 

Joaquin Tasis and co-defendants Martin Tasis and Leoncio Alayon were convicted by a jury in May 2011 after a five-day trial.  Evidence presented at trial showed that the Tasis brothers and their co-conspirators helped relocate a highly lucrative infusion therapy fraud scheme to Michigan from South Florida after increased law enforcement scrutiny there, and that Alayon helped the conspirators launder proceeds from the scheme.   Martin Tasis was sentenced in October 2011 to 10 years in prison and two years of supervised release for his role in the scheme.

According to evidence presented at trial, Martin and Joaquin Tasis were partners in a Detroit-area clinic called Dearborn Medical Rehabilitation Center (DMRC).  Evidence at trial showed that Medicare beneficiaries were not referred to DMRC by their primary care physicians, or for any other legitimate medical purpose, but rather were recruited to come to the clinic through the payment of cash kickbacks.  DMRC then billed Medicare for expensive and exotic medications, purportedly administered to treat HIV and Hepatitis-C.  However, the medications were never administered.

Once Medicare started paying the co-conspirators, Martin Tasis enlisted Alayon, a family friend, to help him launder the proceeds of the fraud through a shell corporation in Florida called Infinity Research Corp.  Evidence at trial showed that Infinity Research Corp. had no employees, did no research and was based at Alayon’s residence.  Alayon, after taking a commission for himself, distributed the laundered proceeds to Martin and Joaquin Tasis and their co-conspirators.

Between November 2005 and March 2007, DMRC billed approximately $9.1 million in claims to Medicare for injection therapy services that were never provided and/or were not medically necessary.  Medicare paid approximately $6 million of those claims.  Evidence at trial showed that DMRC purchased only $36,000 in medication and medical supplies.

Joaquin Tasis was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay health care kickbacks and three counts of health care fraud.

Today’s sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (HHS-OIG) Chicago Regional Office.

The case was prosecuted by Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section and Assistant U.S. Attorney for the Eastern District of Michigan Philip A. Ross.  The FBI and HHS-OIG conducted the investigation.

 Since its inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,140 individuals and organizations that collectively have billed the Medicare program for more than $2.9 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Area Man Indicted in Alleged Escape and Armed Bank Robbery in 2009

CHICAGO—A Chicago area man who allegedly escaped from custody in Rolling Meadows and a day later committed an armed bank robbery in Bloomingdale before being recaptured was indicted on federal charges in connection with the alleged series of events in September 2009. The defendant, Robert Maday, was charged with escape, armed bank robbery, being a felon-in-possession of firearms, and two counts of using firearms during violent crimes in a five-count indictment that was returned by a federal grand jury late yesterday, Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; and Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation, announced today.

Maday, 41, formerly of Elk Grove Village, has remained in federal custody since he was recaptured on Sept. 18, 2009. He will be arraigned on a date still to be determined in U.S. District Court. Maday faces a mandatory minimum of 45 years and a maximum sentence up to life in prison if convicted of the three gun counts alone.

On Sept. 17, 2009, Maday was under a federal detention order when he allegedly escaped from the custody of two Cook County State’s Attorney’s Office investigators who were transporting him to the Cook County Courthouse in Rolling Meadows. One gun count alleges that Maday used two firearms during the escape—a Heckler and Koch USP .40-caliber semi-automatic pistol and a Smith and Wesson .38-caliber SPL revolver.

On Sept. 18, 2009, Maday allegedly took approximately $32,975 in the armed robbery of the First American Bank branch, located at 80 Stratford Dr., in Bloomingdale. A second gun count alleges that Maday used the same two firearms during the bank robbery. A third gun count alleges that Maday illegally possessed both weapons after having previously been convicted of a felony. The indictment seeks forfeiture of both weapons and 18 rounds of ammunition that were seized when Maday was arrested. He was apprehended after leading police on a high-speed chase and crashing a stolen car on Illinois Highway 59 in West Chicago.

The armed bank robbery count carries a maximum sentence of 25 years and the escape count carries a maximum of five years in prison. The felon-in-possession of a firearm count alleges that Maday would be eligible to be sentenced as an armed career criminal, which carries a mandatory minimum 15-year prison term. A first conviction for using a firearm during a violent crime carries a mandatory consecutive term of five years in prison and conviction on a second count carries a mandatory consecutive sentence of 25 years in prison, with a maximum of any number of years up to life. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The government is being represented in court by Assistant U.S. Attorney Andrianna Kastanek. The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Maryland-Based Viable Communications, Its Owner, and a Former Executive Sentenced for Roles in $20 Million Fraud Scheme

WASHINGTON—The owner and the former vice president for corporate strategy of Viable Communications Inc. were each sentenced yesterday to 108 months and 55 months in prison, respectively, for their roles in a scheme that defrauded the Federal Communications Commission (FCC) of at least $20 million, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and FBI Assistant Director in Charge James W. McJunkin of the Washington Field Office.

John T.C. Yeh, the owner of Viable, a Rockville, Md., company, and his brother, Joseph Yeh, the former vice president for corporate strategy, were also ordered to pay $20 million in restitution to the FCC. Viable pleaded guilty to conspiracy to commit mail fraud and was ordered to forfeit $20 million and pay $20 million in restitution to the FCC.

John Yeh, 64, Joseph Yeh, 66, and Viable were sentenced by U.S. District Judge Joel A. Pisano in Trenton, N.J. Both executives were indicted on Nov. 19, 2009, along with Viable and other employees of Viable, and pleaded guilty to conspiring to commit mail fraud in October 2010. In connection with their sentencings, both men admitted to defrauding at least $20 million from the FCC’s Video Relay Service (VRS), a program designed to pay for services for the hearing disabled.

John Yeh and Joseph Yeh admitted that beginning in approximately fall 2007, they conspired with others to pay individuals to make fraudulent VRS phone calls using Viable’s VRS service. According to court documents, both men paid employees of Viable, who then paid others to make the fraudulent phone calls. Viable then submitted the fraudulent call minutes to the FCC and was paid approximately $390 per hour for all VRS calls that Viable processed.

VRS is an online video translation service that allows people with hearing disabilities to communicate with hearing individuals through the use of interpreters and Web cameras. A person with a hearing disability who wants to communicate with a hearing person can do so by contacting a VRS provider through an audio and video Internet connection. The VRS provider, in turn, employs a video interpreter to view and interpret the hearing disabled person’s signed conversation and relay the signed conversation orally to a hearing person. VRS is funded by fees assessed by telecommunications providers to telephone customers, and is provided at no cost to the VRS user.

These cases are being prosecuted by Deputy Chief Hank Bond Walther and Trial Attorney Robert Zink of the Criminal Division’s Fraud Section and Brigham Cannon, former Trial Attorney in the Fraud Section. The cases were investigated by the FBI’s Washington Field Office, the U.S. Postal Inspection Service and the FCC Office of Inspector General.

Ten Years Later: The Enron Case

It was 10 years ago this month that the collapse of Enron precipitated what would become the most complex white-collar crime investigation in the FBI’s history.

Top officials at the Houston-based company cheated investors and enriched themselves through complex accounting gimmicks like overvaluing assets to boost cash flow and earnings statements, which made the company even more appealing to investors. When the company declared bankruptcy in December 2001, investors lost millions, prompting the FBI and other federal agencies to investigate.

The sheer magnitude of the case prompted creation of the multi-agency Enron Task Force, a unique blend of investigators and analysts from the FBI, the Internal Revenue Service-Criminal Investigation Division, the Securities and Exchange Commission, and prosecutors from the Department of Justice.

Agents conducted more than 1,800 interviews and collected more than 3,000 boxes of evidence and more than four terabytes of digitized data. More than $164 million was seized; to date about $90 million has been forfeited to help compensate victims. Twenty-two people have been convicted for their actions related to the fraud, including Enron’s chief executive officer, the president/chief operating officer, the chief financial officer, the chief accounting officer, and others.

“The Enron Task Force’s efforts resulted in the convictions of nearly all of Enron’s executive management team,” said Michael E. Anderson, assistant special agent in charge of the FBI’s Houston Division, who led the FBI’s Enron Task Force in Houston. “The task force represented a model task force—the participating agencies selflessly and effectively worked together in accomplishing significant results. The case demonstrated to Wall Street and the business community that they will be held accountable.”

Sells Man Sentenced to 10 Years for Aggravated Sexual Abuse

TUCSON—Nolan Steven Bautista, 21, of Sells, Ariz., was sentenced yesterday by U.S. District Judge Stephen J. Murphy III to 10 years’ imprisonment and three years of supervised release. Bautista, a member of the Tohono O’odham Indian Nation, pleaded guilty on January 13, 2011, to aggravated sexual abuse with use of force.

According to the indictment, on February 25, 2009, Bautista committed burglary of a residential structure on the Indian reservation and then sexually assaulted the victim. He engaged in a sexual act by the use of force and by threatening and placing her in fear of death or serious bodily injury when he displayed a knife.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, and the Tohono O’odham Police Department. The prosecution is being handled by Raquel Arellano and Anca Pop, Assistant U.S. Attorneys, Tucson.

Omaha Woman Sentenced for Prostitution Ring

United States Attorney Deborah R. Gilg announced that Janna Wasko, 39, of Omaha, Nebraska, was sentenced on December 1, 2011 by Chief United States District Judge Joseph F. Bataillon, in Omaha, Nebraska to a term of six months in the Bureau of Prisons and six months of home confinement. Ms. Wasko previously pled guilty to conspiracy to commit various prostitution offenses during 1997 to 2009.

Ms. Wasko cooperated with authorities in the prosecution. She testified at a sentencing hearing in October 2011 regarding one of her co-defendants, Richard Costanzo. Following that hearing, Judge Bataillon found that Mr. Costanzo had knowingly caused a minor to engage in prostitution. Mr. Costanzo was later sentenced to 96 months in prison.

This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, the Omaha Police Department, and the Council Bluffs Police Department.

Women Convicted for Human Smuggling

Tucson, Ariz. – Two female United States citizens were convicted in U.S. District Court yesterday for attempting to transport illegal aliens into the interior of the United States.

In July, the Arizona Department of Transportation requested Border Patrol assistance with a vehicle stop involving possible human smuggling. Agents determined the two females were transporting five undocumented aliens illegally present in the United States. The aliens and their smugglers were taken into custody by Border Patrol agents and transported to the Tucson Station for further processing.

During processing, agents scanned fingerprints of both female subjects, Kaleena Leah Morales, 28, and Sharae Jakaub, 33, into the Integrated Automated Fingerprint Identification System and learned both had prior criminal convictions. Morales was convicted in 2005 for aggravated assault and child abuse. Jakaub was arrested and convicted in 2008 for a dangerous drug violation. After initial processing, the Tucson Sector’s Prosecution Unit submitted the case to the U.S. Attorney’s Office.

Sentencing is set for February 2012.

In January 2011, the Tucson Sector Border Patrol, a component of the Joint Field Command-Arizona, enhanced the Consequence Delivery System as an integral component of its enforcement strategy. The goal of the CDS is to deliver, to the fullest extent of the law, a targeted consequence to individuals involved in smuggling activities.

In addition, the collaborative efforts between local, state and federal agencies amplify the effectiveness of denying and disrupting the operations of smuggling organizations within the Tucson Sector.

These programs have enhanced the agency’s ability to impose a consequence for violating federal laws. Increases in manpower, infrastructure and technology have made the Border Patrol more effective, and the impact programs make the agency more efficient. Combining these strategies has allowed the Border Patrol to create a stronger border security strategy.

Customs and Border Protection welcomes assistance from the community. Citizens can report suspicious activity to the Border Patrol by calling (877) 872-7435 toll free. All calls will be answered and remain anonymous.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Final Defendants Sentenced in Seven-Person Mortgage Fraud Conspiracy

Six Are Members of the Same Family

CINCINNATI—Six family members and an employee of one of the companies they owned have been sentenced in U.S. District Court for a mortgage fraud scheme involving nine properties they bought and sold for their own use between 2004 and 2009.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Dugan T. Wong, Assistant Inspector in Charge, U.S. Postal Inspection Service, announced the sentences today. All defendants were sentenced by Chief U.S. District Judge Susan Dlott.

Debbie Sferrazza, 47, of West Chester, was sentenced today to a total of 46 months in prison followed by 10 years of supervised release. She pleaded guilty to one count of conspiracy to commit wire and mail fraud, one count of money laundering, and three counts of filing false income tax returns. She was ordered to pay $384,537 in restitution to the lenders she defrauded and $151,671.48 to the IRS.

Between 2004 and 2009, Debbie Sferrazza started several mortgage brokerage companies in the area, including Alpha Mortgage Lending, LLC; Alpha Mortgage Exchange, LLC; S.D.S. Processing LLC (also known as S.D.S. Inc.); and Target Loan Packaging (also known as Target Loan Processing). Over the years, she used the different companies to help perpetrate the fraud and avoid detection of the fraud. She was the sole owner and operator of the companies and their final office was operated out of her house.

“The Sferrazza brokerage companies provided loan services for numerous clients over the years that involved allegations of fraud,” Assistant U.S. Attorneys Timothy Mangan and Jennifer Barry told the court in a sentencing memorandum filed with the case. “However, out of practical necessity, the indictment focused strictly on nine properties that were bought and sold for personal gain and use by the Sferrazza family.” All the properties involved eventually landed in foreclosure.

Debbie Sferrazza’s husband, Salvatore Sferrazza, 72, of West Chester, was sentenced today to three years of probation to include 10 months of home confinement. Salvatore Sferrazza pleaded guilty to one count of conspiracy to commit wire and mail fraud and one count of money laundering. He was ordered to pay restitution of $71,709.80 to the lenders.

Heather Ashurst, 28, of West Chester, was sentenced June 29, 2011 to two years of probation and ordered to pay $99,406.96. She pleaded guilty to one count of conspiracy to commit wire and mail fraud.

Whitney Bonapfel, 23, of Cincinnati, Debbie Sferrazza’s daughter, was sentenced on June 29, 2011 to two years of probation for making a false statement or report to HUD (a misdemeanor offense).

James Ashurst, 28, of West Chester, was sentenced on June 29, 2011 to one day in jail, three years of supervised release and ordered to pay $99,406.96 in restitution. James Ashurst pleaded guilty to one count of conspiracy to commit wire and mail fraud, and one count of money laundering. He is the husband of Heather Ashurst and a son of Debbie Sferrazza.

Keiron Ashurst, 45, of Fairfield, was sentenced on June 30, 2011 to 12 months and one day in prison for conspiracy to commit wire and mail fraud. He was ordered to pay $138,500 in restitution. He is the brother of Debbie Sferrazza, and also a citizen of Great Britain who may face immigration consequences.

Tabatha Sturgill, 36, of Hamilton, who was employed by Debbie Sferrazza, was sentenced on June 30, 2011 to 12 months and one day in prison for conspiracy to commit wire and mail fraud and for filing a false income tax return. She was ordered to pay $384,537.18 in restitution.

According to court documents, James and Heather Ashurst lived in the houses, worked for Debbie Sferrazza at the mortgage businesses, and were involved in the laundering of funds. Salvatore Sferrazza was often present at and involved in the mortgage business and laundering of funds, but was not officially an employee. Keiron Ashurst did not work at Debbie Sferrazza’s mortgage business, but his home was fraudulently bought and sold twice in order to pull money out of the loans and save the property from foreclosure and divorce proceedings. Whitney Bonapfel did not work for the mortgage business or live in the subject homes, but she was listed as the purchaser for a property where James and Heather Ashurst eventually lived.

“The fraud scheme was fairly simple in nature, but extensive and persistent,” Mangan and Barry wrote. “The scheme involved the submission of false and fabricated supporting documentation to mortgage lenders. The supporting loan documents often included fraudulent Verifications of Employment, Verifications of Deposits, W-2 forms, pay stubs, Social Security payment letters, HUD-1 statements, and/or banking statements. The false Verifications of Employment and Verifications of Deposit for the borrower typically misrepresented not only the borrower’s information, but also the verification process itself.”

In addition to the FBI, IRS, and Postal Inspection Service, agencies participating in the Greater Cincinnati Mortgage Fraud Task Force include the Ohio Attorney General’s Office, the U.S. Housing and Urban Development Office of Inspector General, the Cincinnati Police Department, the U.S. Secret Service, the Springdale Police Department, the Warren County Prosecutor’s Offfice, Hamilton County Prosecutor Joe Deters’ Office, the U.S. Attorney’s Office in the Eastern District of Kentucky, the West Chester Police Department, the Middletown Police Department, Hamilton County Sheriff Simon Leis, the FDIC, and the Ohio Department of Commerce Division of Financial Institutions.

“This type of cooperative investigation is the most effective way to fight the problem of mortgage fraud,” Stewart said. “I want to commend all the Task Force members, as well as Assistant U.S. Attorneys Mangan and Barry, who prosecuted the case.”

Drug Traffickers Arrested, Two Fugitives Sought

OKLAHOMA CITY—Oklahoma City Police Department Chief William Citty and James E. Finch, Special Agent in Charge of the Oklahoma City Office of the Federal Bureau of Investigation announce the arrest of eight individuals charged with aggravated drug trafficking. Mario Alvarez Espinoza, 29 years of age; Chris Edwin Thrift, 50 years of age; Jose Alfredo Sanchez-Higuera, also known as “Chi Chi,” 48 years of age; Saul Sanchez, 27 years of age; Jaime Torres, 45 years of age; and Joe Bernard Curtis, 35 years of age all from Oklahoma City, Oklahoma were arrested. Three other individuals were also arrested. In addition to the above arrests, eight search warrants were executed at various homes throughout Oklahoma City.

Today’s events are a culmination of a four-month investigation. The Oklahoma Metropolitan Safe Streets Gang Task Force received information about individuals selling large quantities of cocaine and methamphetamine in Oklahoma City. Law enforcement developed enough information to obtain arrest and search warrants which were executed today. As a result of the searches, approximately 14 kilograms of cocaine, over seven pounds of methamphetamine, six firearms, and approximately $40,000 in cash were seized. The defendants charged today face a minimum penalty of 15 years in prison.

The Oklahoma Metropolitan Safe Streets Gang Task Force is still searching for two individuals who were not located today. Eduardo Higuera-Sanchez, also known as “La Lo,” 47 years of age and Ventura Esquival-Ochoa, 54 years of age both from Oklahoma City are wanted for Aggravated Drug Trafficking. Anyone with information of their whereabouts is asked to call the FBI at (405) 290-7770 or Oklahoma City Police Department at (405) 316-6830. Callers may remain anonymous.

The Oklahoma Metropolitan Safe Streets Gang Task Force is comprised of law enforcement officers and agents from the FBI, Oklahoma City Police Department, Midwest City Police Department, and Homeland Security. Today’s events would not have been possible without the assistance of the Oklahoma Metropolitan Fugitive Task Force, the Oklahoma County Sheriff’s Office and Oklahoma Bureau of Narcotics. The public is reminded that these arrests are merely an accusation and that the defendants are presumed innocent unless and until proven guilty.

Bremen Man Sentenced for Investment Scheme

ROME, GA—JEFFREY WALLACE “J.W.” EDWARDS, 46, of Bremen, Georgia, was sentenced today by United States District Judge Robert L. Vining, Jr. to prison on federal charges of wire fraud, mail fraud, and money laundering.

United States Attorney Sally Quillian Yates said, “Mr. Edwards tricked investors from all walks of life into turning over their life savings to him, with outrageous promises of high returns. Rather than investing the money they entrusted to him, as he had promised, he used it to buy luxury goods and land. This case should serve as a warning to potential investors: don’t believe promises that are too good to be true. And to the con artists out there like this defendant: one day, when the house of cards you are building on a foundation of lies comes tumbling down, you could end up serving a significant federal prison sentence, just like this defendant.”

IRS Criminal Investigation Special Agent in Charge Rodney E. Clarke said, “The sentence today does not replace the losses that were incurred due to this scheme. However, it does illustrate that IRS CI along with our law enforcement partners, are committed to pursuing individuals who commit these types of crimes.”

EDWARDS was sentenced to nine years in prison, to be followed by three years of supervised release. The court stated that it would issue an order within 90 days, specifying the restitution Edwards would be required to pay to victims. The Court also ordered EDWARDS and FRONTIER HOLDINGS to forfeit their interests in four parcels of real property located in Haralson County, Georgia that were purchased with the proceeds of the scheme to defraud, four additional parcels of real property that EDWARDS previously owned, a 2006 Cadillac Escalade, a 2006 Lincoln Town Car, and a 2006 Lincoln Mark LT truck. In addition, the court ordered EDWARDS and FRONTIER HOLDINGS each to pay personal money judgments of $2,043,626, which represents the amount of proceeds they obtained as a result of the mail and wire fraud offenses, and $3,240,687, which represents the amount of laundered money. EDWARDS was convicted of 17 counts of wire fraud, two counts of mail fraud, and 11 counts of money laundering, on August 30, 2011, after a two-week jury trial.

According to United States Attorney Yates, the charges, and other information presented in court: The evidence at trial showed that between February 2006 and February 2007, EDWARDS promised investors they would receive returns of between 41 and 1066 percent on the money they placed in the “high yield” investment programs that he had with the Federal Reserve Bank. The evidence showed that EDWARDS also claimed to own a bank, to have access to lucrative but confidential investment opportunities, and to be a “special agent” of the Federal Reserve. Thirty-one victims mailed or electronically transferred over $7 million to EDWARDS. He spent the money quickly, and when the victims started demanding payment, he blamed “the banking industry” and “the powers that be” for delaying payment from his phantom investments.

This case was investigated by special agents of the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the United States Marshals Service, and the Carrollton Police Department.

Assistant United States Attorneys William G. Traynor, Alana R. Black and Michael J. Brown prosecuted the case.

For further information, please contact Sally Q. Yates, United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney’s Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is Justice.gov/usao/gan.

Australian Citizen Enters Guilty Plea for Possessing Child Pornography

HOUSTON—Christopher Mark King, 55, has been convicted of one count of possession of child pornography, United States Attorney Kenneth Magidson announced today. King, a citizen of Australia and a legal permanent resident living in the Houston area, entered his guilty plea before U.S. District Judge Lee Rosenthal in Houston just a short time ago.

The charge against King was the result of an investigation conducted by members of the FBI’s Innocent Images Task Force, which focuses its attention on investigating offenses involving the exploitation of children via the Internet. The case was brought to the attention of the FBI by King’s employer Kellogg, Brown and Root (KBR), who discovered images they believed were child pornography when they were servicing King’s company-issued laptop. KBR notified the FBI, who conducted additional investigation leading to the discovery of several hundred images of child pornography.

At his plea hearing today, King admitted to possessing those images on an external hard drive he used to back up files from his KBR-issued laptop.

King was allowed to remain on bond pending his sentencing hearing, which is set for May 15, 2012, at which time he faces a sentence of up to 10 years’ imprisonment and a possible fine of $250,000. Additionally, upon completion of any prison term imposed, King faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect the children and prohibit the use of the Internet. King may face deportation as well.

This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals, who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Projectsafechildhood.gov.

Robbery of Central Bank Branch in Minneapolis

On November 30, 2011, at approximately 3:30 p.m., a bank robbery occurred at the Central Bank, 2120 Hennepin Avenue South, located in Minneapolis, Minnesota. The robber, who was described as a white male, entered the bank and approached the teller counter. He showed the teller a gun and demanded cash. After receiving an undisclosed amount of cash, the robber fled from the bank. He exited the bank and moved westward on foot.

The robber was described as a white male, approximately 5’10-11” tall, with a thin to medium build; age: late 20s to early 30s. He was wearing a black hooded sweatshirt, blue jeans, black shoes, and a black ski mask. The subject had a deep voice. He is suspected in several other robberies in the metro area.

If anyone has any information regarding this robbery, they are requested to contact the FBI at (612) 376-3200 or the Minneapolis Police Department.

Utica Man Sentenced for Prescription Drug Distribution

RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that DR. FRANK H. BOEHM, JR., age 56, of Utica, New York, was sentenced this morning in U.S. District Court in Syracuse to a term of incarceration of two years, three years of supervised release, and a special assessment of $100. Boehm previously pled guilty on September 3, 2010, to a felony information that charged him with conspiring to distribute and possess with intent to distribute prescription drugs, in violation of Title 21, United States Code, Section 846.

The information stated that: (1) In order to earn illicit profits and other financial considerations from his medical practice, DR. BOEHM , a neurosurgeon, wrote and issued unlawful prescriptions to co-conspirator patients and another unnamed individual for drugs containing controlled substances without a legitimate medical purpose and outside the usual course of professional practice; (2) DR. BOEHM prescribed Schedule II controlled substances to certain of his co-conspirator patients knowing that the co-conspirator patients would subsequently distribute these controlled substances to the unnamed individual. Specifically, the co-conspirator patients filled the unlawful prescriptions written by DR. BOEHM at various pharmacies, and thereafter distributed the controlled substances obtained from such pharmacies to the unnamed individual in exchange for money and other financial consideration; (3) Contrary to accepted medical practice, DR. BOEHM prescribed controlled substances to co-conspirator patients at their first medical appointment without conducting a physical examination of such individuals to verify the claimed illness or condition, or after conducting only a limited physical examination. In other instances, DR. BOEHM issued unlawful prescriptions for Schedule II controlled substances to the unnamed individual despite obvious indications that this individual was abusing and misusing the controlled substances he prescribed. These indications included, but were not limited to, the following: self-reports of drug addiction and frequent excuses by the unnamed individual describing lost prescriptions; (4) DR. BOEHM continued to prescribe excessive amounts of controlled substances to this individual, knowing that such practice could result in overdose, dependence, addiction, and possibly death; (5) DR. BOEHM and the co-conspirator patients obtained income and other financial benefits from their illegal distribution of controlled substances.

As part of his plea agreement, DR. BOEHM admitted that because of his role in the conspiracy he is accountable for the distribution of 58 grams of Oxycontin/Oxycodone-based drugs. He also acknowledged in his plea agreement that he is subject to a sentencing enhancement because he abused his special position of trust and authority by being involved in this conspiracy.

DR. BOEHM has surrendered his New York State medical license and his DEA license to issue narcotic drugs.

This prosecution resulted from a joint investigation conducted by the U.S. Drug Enforcement Administration (DEA), New York State Department of Health, Bureau of Narcotic Enforcement, Internal Revenue Service (IRS) and the Federal Bureau of Investigation (FBI).

This case is being prosecuted by Assistant U.S. Attorney, Geoffrey J. L. Brown. Further questions or inquiries may be directed to him at (315) 448-0695.

San Juan CBP protects a holiday symbol: the Christmas tree

CBP intercepts the dangerous pine weevil in Puerto Rico

San Juan, Puerto Rico – Insects can find the most inconspicuous places to hide and could have significant effects on the local economy. Even on a traditional holiday symbol: the Christmas tree.

Always vigilant of the potential danger, recently CBP Agriculture Specialists along with U.S. Department of Agriculture Animal and Plant Health Inspection Service/Plant Protection and Quarantine officers and Puerto Rico Health Department officials intercepted two types of insects on a shipment of pine trees from Canada.

The insects found were; a flea beetle, (Longitarsus sp. (Chrysomelidae)), and a white pine weevil (Pissodes Sp. (Curculionidae)).

Flea beetles may take small bites, but they can add up to big problems. Their feeding on the leaves of solanaceous crops like eggplant, peppers, and tomato can delay the establishment of seedlings or even kill them. Flea beetles attack leaves and in their larval stage, they feed on roots.

Weevil attacks cause four types of damage on pine trees in particular, growth reduction, stem deformation, increased susceptibility to wood decay organisms, and tree mortality. They are also known to attack other types of trees.

All infested and contaminated shipments with actionable pests or violations are safeguarded and transferred for appropriate re-export and/or destruction under CBP agriculture specialist custody or treatment by the U.S. Department of Agriculture Animal and Plant Health Inspection Service/Plant Protection and Quarantine (USDA-APHIS-PPQ).

Invasive species include non-native, alien, or exotic plant pests (such as insects, mollusks, weeds, or pathogens); animal and zoonotic disease pathogens, or other organisms that can cause economic or environmental harm to U.S. agriculture, range, and forest systems if they enter the United States.

While most plant pest introductions occur unintentionally as an end result of increased global travel and trade, acts of biological terrorism which threaten the United States' agricultural and natural resources are a rising concern. Plant pests, weeds, and diseases are all potential agents of bioterrorism.

CBP recommends exporters, importers and producers to be cognizant of the U.S. Phytosanitary measures and packing procedures before shipping/importing their products.

Nonetheless, CBP agriculture specialists safeguard American agriculture by demonstrating careful diligence as they examine imported shipments detecting and preventing entry into the country of plant pests and exotic foreign animal diseases that could harm agricultural resources. They do this with inspection and prevention efforts designed to keep prohibited agricultural items from entering the United States. These items, whether in commercial cargo or as “hitchhikers” with an international airline/vessel passenger or a pedestrian crossing the border, could cause serious damage to America’s crops, livestock, and the environment.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Wichita Man Found Guilty on Bank Robbery, Firearms Charges

WICHITA, KS—A federal jury Wednesday convicted a Wichita man on bank robbery and firearms charges, said U.S. Attorney Barry Grissom.

Raymond L. Rogers, 29, Wichita, was convicted on one count of bank robbery, one count of brandishing a firearm during the robbery and one count of unlawful possession of a firearm after a felony conviction.

During trial, prosecutors presented evidence that Rogers was one of three men who robbed Equity Bank in Wichita on Dec. 1, 2010. They entered the bank with their faces covered and wearing hooded sweatshirts. Two of them were brandishing firearms. They collected money from tellers’ drawers and the bank’s vault before fleeing in stolen cars.

The robbers drove to an apartment complex at 5400 E. 21st, where they stopped their car and fled on foot. They were taken into custody at the apartment complex.

Rogers is set for sentencing Feb. 15. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the robbery count, not less than seven years and a fine up to $250,000 on the charge of brandishing a firearm, and a maximum penalty of 10 years and a fine up to $250,000 on the other firearms charge.

Co-defendants include:

■ David Hollis, III, who pleaded guilty to one count of brandishing a firearm and is set for sentencing Feb. 15.

■ Shelan D. Peters, who was sentenced to 97 months. Peters was shot during the chase after the bank robbery.

Grissom commended the Wichita Police Department, the FBI, Special Assistant U.S. Attorney Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.

Burnsville Woman Indicted for Mailing Threatening Letters with Intent to Extort Money

MINNEAPOLIS—A federal indictment unsealed earlier today charges a 48-year-old Burnsville woman with mailing threatening letters as well as letters meant to extort money.

Deborah Mae Carlson was charged with 11 counts of mailing a threatening communication.

The indictment, which was filed on November 22, 2011, was unsealed following Carlson’s initial appearance in federal court.

The indictment alleges that on eight separate occasions, Carlson sent threatening letters to the same victim. The letters were mailed on March 1, March 11, April 5, April 13, April 20, April 27, May 3, and May 24, 2010. All contained a threat to injure the person. Then, Carlson allegedly sent letters to various businesses in that person’s name, demanding money. Those letters were sent to the store manager of the Eagan Target store on April 14, 2010; the store manager of the Valley Buick Pontiac GMC dealership in Apple Valley on April 15, 2010; and to the Scott Lake Veterinary Center in Prior Lake on April 17, 2010.

If convicted, Carlson faces a potential maximum penalty of 20 years in prison on one of the counts because it contained both a threat and the attempt to extort money, and ten years on the other ten counts. All sentences will be determined by a federal district court judge.

This case is the result of an investigation by the Federal Bureau of Investigation, the Lakeville Police Department, the United States Postal Inspection Service, the Eagan Police Department, the Minneapolis-St. Paul International Airport Police Department, and the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

Illegal Alien Sentenced to 97 Months in Federal Prison

BOISE — Julio Cesar Cardelas–Martinez, 37, an illegal alien living in Jerome, Idaho, was sentenced today to 97 months in prison for conspiracy to distribute methamphetamine and unlawful possession of a firearm by an illegal alien, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Cardelas–Martinez to serve four years of supervised release following his prison term and forfeit $20,000 in cash proceeds. Cardelas–Martinez will be deported to Mexico following his release from prison. He pled guilty on July 5, 2011.

According to court documents, Cardelas–Martinez began selling methamphetamine, cocaine and marijuana in December 2010. He received the methamphetamine from sources in Richfield, Idaho, and conspired with others to sell it in the Magic Valley. Cardelas–Martinez was arrested in February 2011. Co–defendant Noel Diaz was sentenced on September 15, 2011, to 108 months in prison for conspiracy to distribute methamphetamine.

Olson commended the joint investigation by the Idaho State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Fourth Defendant Sentenced in North Providence Insurance Fraud Scheme

PROVIDENCE, RI—An unlicensed Johnston insurance adjuster who pled guilty to participating in a scheme with three others to bilk an insurance company out of nearly $50,000 following the historic March 2010 floods was sentenced today to three years of probation, the first six months to be served in community confinement at the Coolidge House in Boston, followed by six months of home confinement. Vincent O. DiPaolo, 62, owner of VDP United Consultants, Inc., was also ordered by Chief U.S. District Court Judge Mary M. Lisi to make restitution in the amount of $40,012.68 and pay a fine of $10,000.

DiPaolo pled guilty in August 2011 to four counts of mail fraud and one count of conspiracy as charged in a federal grand jury indictment returned in November 2010. The insurance fraud scheme by DiPaolo and three others was uncovered by the FBI during a lengthy probe into public corruption in North Providence.

DiPaolo’s sentence was announced by U.S. Attorney Peter F. Neronha and Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office.

At the time of his guilty plea, DiPaolo admitted that he and former North Providence Town Councilman John A. Zambarano, a residential contractor and owner of Zam’s Carpeting, Inc.; Robert A. Ricci, a former hearing officer for the Rhode Island Contractor’s Registration and Licensing Board, and a residential contractor and owner of R.A.R. Building and Home Improvements LLC; and Lori A. Sergiacomi, a/k/a Tanya Cruise, an on-air Providence radio personality, conspired to devise a scheme in which an insurance claim would be filed to repair uninsured flood damage to Sergiacomi’s home which was caused by the historic floods. DiPaolo admitted that they intentionally caused damage to the roof and interior of Sergiacomi’s home and in-ground swimming pool, and then attributed the damages and previous flood damage to a fictitious wind and rain storm in April 2010. Sergiacomi’s insurance claim for nearly $50,000 also included money to be used for home improvement projects.

DiPaolo, whose insurance adjuster’s license was revoked by the Rhode Island Department of Business Regulation in December 2007, admitted that while acting as Sergiacomi’s representative he lied to an insurance adjuster who represented Sergiacomi’s insurance company about the damages and the cost of repairs to Sergiacomi’s property.

John Zambarano pled guilty in March 2011 to political corruption and insurance fraud charges, and was sentenced in May to 71 months in federal prison. Robert Ricci was sentenced to two years of probation, the first four months to be served in home confinement; 200 hours community service; restitution in the amount of $1,000; and a fine of $1,000 for his role in the insurance fraud scheme. Lori Sergiacomi was sentenced to three years of probation, the first four months to be served in community confinement at the McGrath House in Boston, followed by four months of home confinement; 200 hours community service; restitution in the amount of $40,012.68; and a fine of $2,000.

The cases were prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams.

Canton Man Sentenced for Receiving Child Pornography

Marc D. Earlenbaugh was sentenced to 30 years in prison for crimes related to child pornography, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today.

Earlenbaugh age 44, of Canton, Ohio, pleaded guilty earlier this year to one count of receiving child pornography.

Between September 26, 2010, through on or about October 8, 2010, Earlenbaugh knowingly received computer image and video files, which files contained visual depictions of real minors engaged in sexually explicit conduct. Additionally, Earlenbaugh possessed a computer containing child pornography on October 20, 2010, according to court documents.

This case was prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Federal Bureau of Investigation, the Stark County Sheriff’s Department and the Ohio Internet Crimes Against Children Task Force.

Abbeville, Mississippi Bank Robbed

On Tuesday, November 29, 2011, at approximately 8:15 a.m., the Oxford Police Department, Marshall County Sheriff’s Office, Lafayette County Sheriff’s Office, and the FBI responded to a reported bank robbery at the Abbeville Bank in Abbeville, Mississippi.

As bank employees were arriving for work, one of two individuals followed them into the bank, displaying a pistol. and ordered two employees onto the ground. A third employee was forced to hand over an undisclosed amount of money. That suspect is described as being short in stature (approximately 5’6” tall), wearing an all black, one-piece coverall, black gloves and a black ski mask.
 
The second individual remained outside, keeping watch through the drive-through teller’s window, also displaying a handgun. The second individual is described as being of average height, dressed in a purple warm-up suit and hood, with white gloves and full face covering.

After forcing the third employee to the floor, the two suspects took the keys to an employee’s vehicle and left the scene. The vehicle has been recovered, but the two individuals remain at large. No one was injured during the robbery.

 
The Lafayette County Sheriff’s Office and the FBI are investigating this robbery and asking the public’s assistance in identifying and locating the suspects. If you have any information concerning this bank robbery, please call the Lafayette County Sheriff’s Office at 662/234-6421, or the FBI at 601/948-5000.

Non-profit founder and attorney gets maximum sentence in sex tourism case

PHILADELPHIA — A Philadelphia man was sentenced today to 15 years in prison on charges of traveling for the purpose of engaging in sex with a minor. The sentence was the result of an extensive investigation conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Kenneth Schneider, 46, of Philadelphia, was convicted by a federal jury on Oct. 1, 2010. In the summer of 1998, Schneider, founder and president of the Apogee Foundation, traveled to Moscow, Russia, where he told two ballet instructors at the Moscow State Academy of Choreography that he was willing to provide "assistance" to students attending the academy. The instructors identified a 12-year-old student whose family could no longer afford to pay his board. Schneider convinced the boy's parents to allow him to live with Schneider in an apartment a few blocks from the school. Between Aug. 22, 2000, and Nov. 22, 2001, Schneider engaged in a sexual relationship with the victim, bringing him to Philadelphia for a summer program in 2001, then returning to Moscow with the victim in August 2001 to continue the sexual relationship. Schneider was arrested March 27, 2010, in Larnaca, Cyprus, and extradited on May 28, 2010.

In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered Schneider to pay restitution to the victim in the amount of $35,000, pay a fine of $20,000 and complete three years of supervised release.

"This investigation has exposed the disturbing truth concerning those individuals who believe they can victimize children abroad and not be held accountable in America for their very disturbing actions," said John Kelleghan, special agent in charge of ICE HSI in Philadelphia. "HSI and our law enforcement partners, here and around the world, stand vigilant to protect the most vulnerable among us, our children."

"The Department of Justice is committed to protecting children from sexual predators," said U.S. Attorney Zane David Memeger, Eastern District of Pennsylvania. "When a criminal, such as this one, exploits a vulnerable and innocent child for his own gratification, we will take every step to remove the criminal from the community so that he cannot victimize other children and so that other potential criminals are put on notice that the justice system will not tolerate this type of behavior."

This investigation was part of Operation Predator, a nationwide ICE HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders, and child sex traffickers. ICE HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators.

Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.

The case was investigated by ICE HSI and the FBI, with assistance from the Investigative Committee of the General Procuracy of the Russian Federation, ICE's attaché in Moscow and Interpol.

U.S. Attorney Memeger thanked the Investigative Committee of the General Procuracy of the Russian Federation, without whose assistance the investigation could not have been completed.

This case was prosecuted by Assistant U.S. Attorneys Michelle Morgan and Vineet Gauri.

Warrant Service for Arrests, Searches and Probation Searches

On Tuesday, November 29, 2011, about 12:15 PM, Indio Police Department with the assistance from other law enforcement officials conducted arrest warrants, search warrants and probation searches.

The Indio Police Special Enforcement Team had been conducting an ongoing investigation for narcotics and other associated criminal activity in the community for the past several months in 2011. Three of warrants were served at three residential homes in the 82-200 block of Garden Avenue in the City of Indio and a fourth location was done at a residential home in the 83-400 block of Puerto Escondido in the City of Coachella. All locations resulted with no one hurt and arrests were done without a significant incident.

The suspect(s) arrested are identified as Edward Haynes, Anthony Wyrick and Ernest Hunt all from Indio. All were booked into the Riverside County Sheriff’s jail facility in Indio for arrest warrants for narcotic violations. The suspects arrested have been involved with other criminal activity that is currently under investigation involving illegal weapons violations and gang activity. The booking photos of the three arrested are available to the media by contacting Riverside County Sheriffs Office PIO.

The Indio Police Department would like to thank the assistance of the local valley law enforcement agencies that assisted in the warrant operation and especially the good working partnership relationship we currently have with the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that help investigate the case. The Indio Police Department is asking for anyone who has information about today to please call the Indio Police Department at (760) 391-4057, or call Crime Stoppers at (760) 341-STOP with anonymous information.

Fairhaven Attorney Charged with Fraud in Real Estate Closings

BOSTON—A Fairhaven attorney with an office in Taunton was charged today in federal court with diverting mortgage loan funds from real estate closings.

Craig J. Martin, 53, of Taunton, was charged in an Information with two counts of bank fraud.

The information alleges that Martin, in acting as a closing attorney for real estate transactions, received mortgage loan funds from lenders, which were to be held in his attorney trust account and used for the closings. As closing attorney, Martin was responsible for using the loan proceeds to pay off the existing mortgages on the properties. But instead of paying off the existing mortgages, Martin diverted at least $3,005,445 in mortgage funds to other purposes and falsified the loan closing documents to conceal his misappropriation of the funds.

If convicted on these charges, Martin faces up to 30 years in prison to be followed by five years of supervised release, and a $1 million fine on each of the charges.

United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Economic Crimes Unit.

The details contained in the information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Update: Robbery at Community Bank in Plantation

The FBI is releasing additional photographs from a bank robbery that took place last Tuesday (11/22/2011) at Community Bank, 510 North Pine Island Road, Plantation, Florida. The newly released photographs show a second individual believed to have accompanied the bank robber. These new images were taken from a surveillance camera from a business near the Community Bank.
 
As stated in the original press release, a robber entered the bank, implied there was a weapon, and demanded money from a bank employee. No customers were in the bank at the time of the robbery. No one was injured. Money was taken, but the amount is still not being released at this time.
 
If anyone has information as to the identity of these bank robbers, they are urged to call the FBI at (305) 944-9101 or Crimestoppers.

Holiday Shopping Tips

FBI Reminds Shoppers to Beware of Cyber Criminals

In time for the holiday season, the FBI’s Internet Crime Complaint Center reminds shoppers to beware of cyber criminals and their aggressive and creative ways to steal money and personal information.

Scammers use many techniques to fool potential victims, including fraudulent auction sales, reshipping merchandise purchased with a stolen credit card, sale of fraudulent or stolen gift cards through auction sites at discounted prices, and phishing e-mails advertising brand name merchandise for bargain prices or e-mails promoting the sale of merchandise that ends up being a counterfeit product.

Here are some tips you can use to avoid becoming a victim of cyber fraud:

■Do not respond to unsolicited (spam) e-mail.

■Do not click on links contained within an unsolicited e-mail.
■Be cautious of e-mail claiming to contain pictures in attached files, as the files may contain viruses. Only open attachments from known senders. Always run a virus scan on attachment before opening.
■Avoid filling out forms contained in e-mail messages that ask for personal information.
■Always compare the link in the e-mail to the web address link you are directed to and determine if they match.
■Log on directly to the official website for the business identified in the e-mail, instead of “linking” to it from an unsolicited e-mail. If the e-mail appears to be from your bank, credit card issuer, or other company you deal with frequently, your statements or official correspondence from the business will provide the proper contact information.
■Contact the actual business that supposedly sent the e-mail to verify that the e-mail is genuine.
■If you are requested to act quickly or there is an emergency, it may be a scam. Fraudsters create a sense of urgency to get you to act impulsively.