Month: June 2022

Source: United States Department of Justice

In a second superseding indictment unsealed today, a federal grand jury in Cleveland, Ohio, charged Christos Karasarides Jr., of Canton, with tax evasion, filing false tax returns, witness tampering, falsifying records and five separate conspiracies to operate illegal gambling businesses, defraud the IRS and commit money laundering.

In May 2021, the government charged spouses Jason Kachner and Rebecca Kachner, CPA Robert DiPietro and Thomas Helmick with conspiring to operate illegal gambling businesses and to defraud the IRS, among other criminal offenses. The superseding indictment unsealed today adds Karasarides to the indictment and includes new tax charges against DiPietro.

According to the second superseding indictment, from 2010 through 2018 Karasarides, Jason Kachner, Rebecca Kachner and DiPietro conspired to operate Skilled Shamrock, an illegal gambling business in Canton, and conspired to defraud the IRS by concealing income generated by Skilled Shamrock. From 2012 through 2017, patrons at Skilled Shamrock allegedly wagered a total of more than $34 million, which resulted in more than $4 million in net income for the owners of the gambling business.

The second superseding indictment also charges that from 2009 through 2013, Karasarides accrued a total of more than $1.4 million in taxes owed to the IRS. Karasarides and DiPietro sought to evade this tax debt by allegedly submitting false information to the IRS concealing Karasarides’ ownership of the illegal gambling businesses and the income derived from those businesses. Instead of paying his overdue tax debt, Karasarides allegedly spent millions of dollars in cash on personal items such as cars, country club dues, real estate and credit card payments for the benefit of family members.

With DiPietro’s help, Karasarides also allegedly filed false tax returns with the IRS for 2013 through 2016. The returns allegedly did not include all the income Karasarides earned from Skilled Shamrock and other gambling businesses. Additionally, DiPietro is charged with helping the Kachners file their own false tax returns for the years 2013 through 2017. The Kachners and Helmick were previously charged with conspiracy and filing false tax returns that allegedly underreported gross receipts received from Redemption Skill Games 777, one of the other gambling businesses.

During the investigation, Karasarides allegedly sought to tamper with a witness appearing before the grand jury. He also allegedly had false promissory notes created to authenticate purported loans, then directed business associates and his son to sign the false promissory notes. When Karasarides learned one of the business associates had been subpoenaed to testify before the grand jury, he allegedly directed that witness to falsely testify that his loan was legitimate.

Karasarides is also charged with conspiring to launder money because he allegedly disguised the final payment on his personal residence, funded with cash proceeds from his illegal gambling businesses, by providing the cash to his associate who agreed to form a company to make the payment so that, on paper, Karasarides would never pay down the principal and purchase the residence outright.

Karasarides made his initial court appearance today. If convicted, he faces a maximum penalty of five years in prison for each count of conspiracy to operate an illegal gambling business and conspiracy to defraud the IRS, five years in prison for tax evasion, three years in prison for filing a false tax return, and 20 years in prison for each count of conspiracy to launder money, witness tampering and falsification of records. DiPietro faces a maximum penalty of five years in prison for helping Karasarides evade taxes and three years in prison for helping Karasarides file a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Michelle Baeppler for the Northern District of Ohio made the announcement.

IRS-Criminal Investigation, the U.S. Department of Treasury Office of Inspector General, and the Ohio Casino Control Commission are investigating the case. Homeland Security Investigations provided substantial assistance.

Trial Attorneys Richard M. Rolwing and Sam Bean of the Tax Division and Assistant U.S. Attorneys Robert Patton and David Toepfer for the Northern District of Ohio are prosecuting the case.  

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice News

BIRMINGHAM, Ala. –A federal judge this week sentenced a convicted felon for three counts of illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and Bureau of Alcohol, Tobacco and Firearms Special Agent in Charge Mickey French.

United States District Court Judge Madeline Hughes Haikala sentenced Demarcus Marshall, 27, to 120 months in prison.  Marshall pleaded guilty to the charges in January. According to the plea agreement, Marshall illegally possessed a firearm on three occasions.

On September 9, 2020, Birmingham Police Officers responded to a domestic call where Marshall’s girlfriend was the victim. When officers arrived, they recovered a loaded Taurus 9mm pistol from Marshall.

On September 30, 2020, a Homewood Police Officer initiated a traffic stop on a vehicle where Marshall was the passenger and observed Marshall holding a pistol.  Officers recovered a Taurus .40 caliber pistol loaded with seven rounds of ammunition.  The officers also recovered a Springfield Armory 9mm pistol in the front passenger glove box loaded with 18 rounds of ammunition.  They also recovered loose rounds of ammunition throughout the vehicle.

On June 22, 2021, Marshall approached a woman and assaulted her by hitting her in the face with his fist and throwing her to the ground.  The female got away from Marshall and got into her car. As she drove away, Marshall chased after the car and fired two rounds from a handgun at the vehicle.  No one was hit by the rounds.  A Birmingham Police Officer recovered a .40 caliber shell casing from the ground near where Marshall had fired.  Later that day, Jefferson County Sheriff’s Officers initiated a traffic stop on a vehicle with four occupants. Marshall was in the back seat and when officers approached, Marshall was attempting to conceal a firearm under the driver’s seat of the vehicle.  The officers instructed him to stop moving but he did not comply until he completely concealed the item.  The officers recovered a Smith & Wesson .40 caliber pistol, digital scale, and miscellaneous controlled substances. 

“To reduce the gun violence occurring in our communities, we partner with other law enforcement agencies to arrest and prosecute those who persistently violate federal gun laws and commit acts of violence,” said U.S. Attorney Escalona. “We are grateful for the coordinated work of our federal, state, and local partners in bringing this offender to justice.”

“The ATF recognizes that we are most successful when we work with our state, local, and federal partners. Our ability to protect the American families, increases by having a comprehensive violent crime reduction strategy in place.  We will continue to focus our efforts to decrease violent crime and hold individuals accountable who continuously cause harm in the community,” said ATF Special Agent in Charge Mickey French.

“While the FBI investigates a host of crimes, fighting violent crime and being effective partners to state and local law enforcement is at the core of who we are, and we will continue to work shoulder to shoulder with our partners in the fight against violent crime,” said FBI Special Agent in Charge Johnnie Sharp, Jr.

This case is part of the U.S. Attorney’s Office Operation Safe Families Initiative, which was launched in October 2020.  Operation Safe Families focuses on fighting domestic violence in the Northern District of Alabama. Annually, offenders with a history of domestic violence commit more than half of all homicides committed in Jefferson County. Through Operation Safe Families, the U.S. Attorney’s Office works with federal, state, and local law enforcement to use federal firearm laws to combat domestic violence. 

“The United States Attorney’s Office and our partners prioritize protecting victims and the community from people who commit domestic violence with a firearm,” said U.S. Attorney Escalona. “The presence of a firearm within a domestic violence situation increases the threat of death to the victim by 500%. Moreover, escalating community violence in Jefferson County is being driven by people who have a history of domestic violence, with 74% of solved homicides in 2021 being committed by someone with a history of domestic violence,” added U.S. Attorney Escalona.

FBI investigated the case along with ATF, the Birmingham Police Department, and the Jefferson County Sheriff’s Office. Assistant United States Attorneys Kristy Peoples and Darius Greene prosecuted the case

Source: United States Department of Justice News

CHICAGO — A suburban Chicago man who allegedly possessed and transported sexually explicit images of children has been indicted on federal child pornography charges.

BRANDON J. BERGTHOLD, 35, of Frankfort, Ill., is charged with possession and transportation of child pornography, according to an indictment returned Thursday in U.S. District Court in Chicago.  The federal charges carry enhanced sentencing penalties, including a mandatory minimum sentence of 15 years in federal prison and a maximum of 40 years, due to a prior qualifying conviction involving a minor, for which Bergthold has had to register as a sex offender.

From July to September of last year, using the screenname “freakybrando86,” Bergthold communicated with and sent images of child pornography to an individual on the Kik online messaging platform, according to a criminal complaint previously filed in the case.  Unbeknownst to Bergthold, the individual with whom he was communicating was an undercover law enforcement officer, the complaint states.  The indictment alleges that on Aug. 7, 2021, Bergthold possessed on his cell phone an image of child pornography involving a prepubescent minor, and that on Oct. 17, 2021, he transported a file containing an image of child pornography.

Bergthold is currently detained without bond in federal custody.  Arraignment in U.S. District Court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Cook County Sheriff’s Office provided valuable assistance.  The government is represented by Assistant U.S. Attorney Alejandro G. Ortega.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678.  The service is available 24 hours a day, seven days a week.

Source: United States Department of Justice News

LAFAYETTE, La. – United States Attorney Brandon B. Brown announced the resolution of two cases involving sex crimes. United States District Judge James D. Cain, Jr. sentenced the three defendants as follows:

Kevondric Fezia, 26, of Houston, Texas, was sentenced to 327 months (27 years, 3 months) in prison, and Calista Jenee Winfrey, 23, of Orange, Texas was sentenced to 36 months (3 years) in prison. Both defendants will serve 5 years of supervised release after their release from prison. In addition, Fezia and Winfrey were each ordered to pay restitution in the amount of $3,500. Fezia and Winfrey were charged with sex trafficking and attempting to entice a minor to engage in prostitution. Fezia was convicted by a jury in Lafayette following a two-day trial and Winfrey pleaded guilty to sex trafficking in February 2022.

Evidence presented in this case revealed that beginning in November 2020, Fezia was recruiting minor females to engage in prostitution and began communicating with a 14-year-old female in Lake Charles, Louisiana. Fezia was well aware when he began communicating with her that she was a minor, but still pursued her and tried to convince her that she would profit by engaging in prostitution through him. The minor victim made a decision to run away with Fezia to Texas. On February 13, 2021, he picked up the minor victim and took her to Texas. Winfrey and Fezia both were well aware that the victim was only 14 years old, but they continued to try and convince her to engage in prostitution.

Both defendants traveled with the minor victim to a hotel in Beaumont, Texas and introduced her to a 16-year-old prostitute that was also working for Fezia. Winfrey engaged in multiple acts of prostitution in the presence of the minor victim at the hotel, continually trying to convince the minor victim that she should also engage in prostitution. Fezia took photographs of both minor girls and the other prostitutes he was employing. He then posted them on his Instagram account as an advertisement, along with a visible geo tag showing those who saw the advertisement where to go to engage in sexual acts with the girls.

When the minor victim’s grandmother realized that she had run away from home, she began looking at the child’s social media accounts and found the communications between her granddaughter and Fezia. She then contacted law enforcement. Law enforcement officers were able to identify Fezia and found him at his apartment in Houston, Texas, along with other prostitutes and the minor victim. He attempted to hide her in the closet, but she and the other 16-year-old prostitute were found.

The case was investigated by the Department of Homeland Security Investigations and the Lake Charles Police Department and was prosecuted by Assistant U.S. Attorneys J. Luke Walker and John W. Nickel.

In the second case, Mickey Dewayne Williams, 43, of Lake Charles, was sentenced to 327 months (27 years, 3 months) in federal prison, followed by a lifetime of supervised release, for sexual exploitation of children.

In March 2021, law enforcement officers in Texas were contacted by an individual alleging that their minor child had been videotaped while naked in the bathtub by Williams. Law enforcement agents questioned Williams about the incident, and he admitted that he had in fact taken the photographs of the child while they were in the Western District of Louisiana. Williams has a prior felony conviction for possession of child pornography which also occurred in the Western District of Louisiana in 2014. He served time in federal prison for that offense and was on supervised release at the time that this incident occurred.

This case was investigated by the Department of Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney J. Luke Walker.

“These defendants sought out those to victimize who were vulnerable, whether it was girls under the age of 17, or minor children, without any regard for the well being of those victims but instead to gratify their own selfish desires,” said United States Attorney Brandon B. Brown. “Sex trafficking and sexual exploitation crimes are on the rise, and we are committed to continuing to work with our federal and local partners to stop those who choose to destroy teenage lives and scar those of child victims.”

“There is no place in our society for those who prey on the most vulnerable of our population. These sentence lengths reflect the heinous nature of the crimes committed, and for the HSI special agents and our law enforcement partners, it’s a gratifying outcome. We are thankful to our special agents and our law enforcement partners who do the difficult but important work of investigating these crimes,” said HSI New Orleans Special Agent in Charge Dave Denton. “We also hope that the sentence serves as part of the victims’ healing process, and it reaffirms our commitment to safeguarding our nation’s children.”

These cases are part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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 www.projectsafechildhood.gov.

# # #

Source: United States Department of Justice News

A California man was extradited from Mexico on March 8 and pleaded guilty today to conspiracy to commit mail fraud and wire fraud, mail fraud, and money laundering charges for two high-yield investment fraud schemes.

According to court documents, Daniel Thomas Broyles Sr., aka Dan Thomas, aka Daniel Cruz Torrez, 64, of Malibu, participated in a high-yield investment fraud scheme involving a sham company named Niyato Industries Inc. Broyles admitted to conspiring with Niyato’s CEO, Robert Leslie Stencil, 65, of Charlotte, North Carolina, and others to defraud Niyato investors. Broyles admitted that, together with Stencil and others, he falsely portrayed Niyato as a business engaged in electric vehicle manufacturing and converting vehicles to run on compressed natural gas. In reality, Broyles knew, or intentionally avoided learning, that Niyato was merely a sham company that lacked any operational facilities or proprietary technology, and virtually all investor funds were being disbursed among the co-conspirators and not used to promote Niyato’s business. In June 2016, after Broyles learned that federal law enforcement agents were investigating Niyato, he relocated to Mexico. Broyles admitted that, when he learned in August 2016 that he had been indicted, he moved to a new address in Mexico and began using the alias “Daniel Cruz Torrez” to hide from federal law enforcement agents and to obstruct the federal government’s prosecution.

In addition, according to court documents, Broyles separately pleaded guilty for his role in a second high-yield investment fraud involving EarthWater Limited. Broyles admitted to conspiring with EarthWater’s CEO, Cengiz Jan Comu, 61, of Dallas, Texas, and others to sell EarthWater stock. Broyles also admitted that he and others made numerous false and misleading representations, including that EarthWater used the money raised from victim investors to develop and operate the company’s business. In truth, Broyles, Comu, and their co-conspirators had agreed to use the invested victim funds largely for their personal benefit.

Broyles pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, and one count of money laundering in connection with the Niyato scam. Broyles also pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud in connection with the EarthWater scheme. He is scheduled to be sentenced at a later date. Broyles faces up to 10 years in prison for the money laundering count, up to 20 years in prison for the mail fraud count, and up to 30 years in prison for each of the conspiracy counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Seven other defendants have previously been convicted in connection with the Niyato scam, including Stencil, who was convicted following a three-week jury trial and sentenced to 135 months in prison. 

Eight other defendants have pleaded guilty in connection with the EarthWater fraud, including Comu, who is scheduled to be sentenced on Sept. 7. Three other defendants are awaiting trial in the EarthWater case on charges set forth in a superseding indictment filed on Nov. 6, 2019, in the Northern District of Texas. The trial is scheduled to begin on Oct. 3.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King for the Western District of North Carolina; U.S. Attorney Chad E. Meacham for the Northern District of Texas; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service’s Atlanta Division; and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.

The Government of Mexico, including the Fiscalia General de la Republica (FGR), provided significant assistance in the extradition of Broyles to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Broyles.

The U.S. Postal Inspection Service is investigating this case. The U.S. Marshals Service transported Broyles from Mexico to the United States.

Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section is prosecuting both cases. Trial Attorney Theodore Kneller of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Walters of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case involving EarthWater.