Month: July 2022

Source: United States Department of Justice News

Claimed Fraudulent Deductions on Returns and Submitted Fabricated Documents to IRS

Source: United States Department of Justice News

The Department of Justice announced today that it has begun phase two of the remission compensation process to provide recovery for Western Union fraud victims.

In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the Department of Justice and agreed to forfeit $586 million. The Department of Justice previously distributed over $366 million to over 148,000 victims. Because additional forfeited funds remain available in this case, the Department of Justice has reopened the petition process to potential victims who did not previously submit a petition for remission.

Victims of fraud who sent a money transfer through Western Union between Jan. 1, 2004, and Jan. 19, 2017, can file a petition for remission and receive compensation for their fraud losses. Individuals who believe they may be victims may file a petition online or may obtain a petition form online at www.WesternUnionRemissionPhase2.com. The deadline to file a petition for remission is Aug. 31, 2022. More information regarding the remission process, including eligibility criteria, updates, and frequently asked questions is available at the remission website or by calling 1-855-786-1048.

“The department is pleased to have provided compensation to over 148,000 victims and hopes additional victims take the opportunity to file claims relating to the harms caused by these schemes,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Asset forfeiture is a tool critical for compensating crime victims.”

“The hard work of our dedicated investigators and prosecutors held Western Union accountable and brought justice to many individuals who perpetrated the fraud using the Western Union system,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Though we are gratified those thousands of victims have already received compensation, our work continues as we urge those other fraud victims who have not yet submitted their petitions for remission to do so promptly so that they can also receive restitution.”

“The U.S. Postal Inspection Service is very pleased and honored to have been part of this cooperative effort in providing over $366 million in financial relief to so many victims,” said Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service’s Philadelphia Division. “As we move forward with the second phase of the Western Union Remission, we will continue to support the mission of ensuring monies are returned to their rightful owners.”

“Scammers used Western Union’s money transfer system because they knew the company turned a blind eye,” said Director Samuel Levine of the Federal Trade Commission’s (FTC) Bureau of Consumer Protection. “With our law enforcement partners, we continue to return money to those harmed by the company’s failures, and people still have until Aug. 31 to submit claims.”

Pursuant to the DPA, Western Union acknowledged responsibility for its criminal conduct, which included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million, which has been made available to compensate victims of an international consumer fraud scheme. Western Union simultaneously resolved a parallel civil investigation with the FTC.

According to court documents, fraudsters targeted consumers, including seniors, through multiple scams and convinced their victims to send money through Western Union. Three specific scams directed towards seniors included the so-called grandparent scam, where the fraudster would pose as the victim’s relative in purported need of immediate money to avoid personal harm; lottery or sweepstakes scams, where the fraudster would tell the victim that he or she had won a large cash prize but had to pay fees, such as taxes, to claim the prize; and romance scams, where the fraudster would pose as an online love interest and request funds for a visit or for another purpose.

Certain owners, operators, or employees of Western Union locations were complicit in the scheme. Western Union aided and abetted the scheme by failing to suspend or terminate complicit agents and by allowing them to continue to process fraud-induced monetary transactions. Western Union has fulfilled its obligations under the DPA, and the court granted the motion to dismiss the criminal information against Western Union.

The Department of Justice, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the U.S. Postal Inspection Service Philadelphia Division’s Harrisburg Office in the victim compensation process and in conducting the criminal fraud investigation. Since fiscal year 2000, the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), which will oversee the remission process, has successfully used its specialized expertise to return billions in forfeited assets to victims of crime. The victim compensation payments in this case would not have been possible without the extraordinary efforts of MLARS and the U.S. Attorneys’ Offices for the Middle District of Pennsylvania, the Central District of California, the Eastern District of Pennsylvania, and the Southern District of Florida. The FBI’s Los Angeles Field Office, IRS-Criminal Investigation, Homeland Security Investigations, the Federal Reserve Board, the Consumer Financial Protection Bureau Office of Inspector General, and the Department of the Treasury Office of Inspector General provided valuable assistance. The FTC conducted the civil fraud investigation.

Gilardi & Co. LLC is serving as the remission administrator in this matter. Gilardi & Co. LLC and the Department of Justice will not ask for any payment to participate in this remission process.

For more information on how to protect yourself from fraud, please visit www.uspis.gov or www.consumer.ftc.gov.

Source: United States Department of Justice News

Memphis, TN – Carlos Gwin, also known as “Carlos Chambers,” 40, has been sentenced to 180  months 
in federal prison  for being a  convicted felon in possession of a firearm. Joseph C. Murphy Jr., 
United States Attorney, announced the sentence today.

According to information presented in court, on September 24, 2020,  at approximately 5:15pm, 
Memphis Police  responded to a  call for  service at a  motel on Sycamore View. Carlos Gwin was 
observed sitting in a black car in the motel parking lot using drugs. After having admitted to law 
enforcement he was using cocaine, he was detained.

A search of the car revealeda small amount of cocaine wrapped in a $20.00 bill and Xanax wrapped in 
foil. A Ruger 9mm caliber pistol was recovered from underneath the driver’s seat.  The gun was 
loaded with one live round of ammunition in the chamber and 12 live rounds in the magazine.

In 2002, 2004  and 2008, Gwin pled guilty to felony charges of aggravated burglary and is  
prohibited  from possessing firearms. As  a result of his felony convictions, Gwin was sentenced as 
an Armed Career Criminal under the Armed Career Criminal Act.

On June 29, 2022, United States District Judge Thomas L. Parker sentenced Gwin to 180 months in  
federal prison  with  three years  of supervised release to follow.  There  is  no parole in the 
federal system.

This  case was  investigated by  the  Project  Safe Neighborhood (PSN), Memphis  Police Department  
and  the  Bureau  of  Alcohol,  Tobacco,  Firearms  and  Explosives  (ATF). The PSN initiative is  
a program bringing together all levels of law enforcement and the communities they serve to  reduce 
violent crime  and make our  communities safer for
everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on

targeting violent criminals, directing all  U.S. Attorney’s  Offices to  work  in partnership
with federal, state, local and tribal law enforcement.

Assistant  United  States  Attorney  Raney Irwin  prosecuted this  case  on  behalf  of  the 
government.

###
 

Source: United States Department of Justice News

A Tulsa man who repeatedly broke into homes, attempted to sexually assault two victims, and later solicited a 16-year-old for child pornography was sentenced Wednesday in federal court, announced U.S. Attorney Clint Johnson.

 U.S. District Judge Claire V. Eagan sentenced Jesse Thomas Moore, 20, to 240 months in federal prison followed by 10 years of supervised release.

Moore previously pleaded guilty to: lewd acts with a child under 16 in Indian Country; three counts of burglary in the first degree in Indian Country; attempted sexual abuse by threat in Indian Country; Coercion and Enticement of a Minor; Attempted Production of Child Pornography; and Attempted Receipt of Child Pornography. 

“Jesse Moore broke into homes, attempted to sexually assault two victims, and pressured a minor into sending sexually explicit images of herself to him while he was detained pending court proceedings,” said U.S. Attorney Clint Johnson. “The defendant’s alarming criminal acts are that of a sexual predator. It is thanks to the relentless work of Tulsa Police Detectives and Assistant U.S. Attorney Joel-lyn McCormick that Moore can no longer victimize women and children in Tulsa.”

At the sentencing hearing, victims detailed the impact of Moore’s crimes. Each spoke about the continued disruption to their lives in the form of: paranoia of being watched and followed even within their own homes, the compulsion to ensure doors and windows are always locked, fear of people and sounds and other debilitating psychological traumas.  

According to court documents, on May 5, 2020, Moore broke into a home on South Florence Avenue where a child was sleeping. Once inside, Moore entered the victim’s room and started to masturbate. He then tried to get the minor to go to the bathroom with him. When the victim resisted, he slung ejaculate toward the victim then left the residence.

On Nov. 8, 2020, he broke into a home on South Urbana Place with intent to commit a lewd act with a child. Shortly after 7:30 p.m., he entered the backyard of the residence and entered the home through the back door. When the child saw Moore, he screamed. Moore then fled the home. The mother of the child told investigators Moore had been in her back yard and looked into her windows at other times starting in October 2020.

On Dec. 13, 2020, Moore also broke into a home on South Evanston Avenue. Once inside, he discovered the victim and a male sleeping in a bedroom. He began touching the victim, causing her to awaken. He then threatened the victim by stating, “Get the f*** up and don’t say anything or I’ll f***ing kill you.” Moore forced the woman to the living room where he attempted to rape her. As Moore covered her mouth, the victim bit his right hand, causing him to let go and flee the scene. 

Video obtained by officers showed Moore stepping onto the front porch, unscrewing the porch light then entering the South Evanston residence at 6:36 a.m. Then video showed Moore exiting the residence at 7:18 a.m., after the attempted rape. The crime occurred after multiple “Peeping Tom” incidents earlier in the week at the same residence by Moore.

The defendant was arrested by the Tulsa Police Department and charged for the crimes.

While in custody awaiting trial for charges related to the Peeping Tom incidents, Moore began accessing the program JailATM by means of a stationary kiosk or portable smart pad in order to video chat or message with a 16-year-old female whom he referred to as his girlfriend.

During conversations that occurred from Aug. 1, 2021, to Aug. 19, 2021, Moore repeatedly pressured the minor for sexually explicit video and images of herself and to engage in sexually explicit behavior while the two video chatted. The minor attempted to send some pre-recorded videos. Moore received at least one video while others were auto rejected by the system. On multiple occasions, Moore told the minor to figure out how to send the videos differently, like she did before, so they would not be rejected. During one video chat, Moore convinced the minor to engage in sexually explicit behavior.

The Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case.

Source: United States Department of Justice News

INDIANAPOLIS – An Indianapolis man pleaded guilty to murder in the second degree of U.S. Postal Service letter carrier Angela Summers.

According to court documents, Tony Cushingberry, 23, murdered Summers on April 27, 2020, on North Denny Street, during her usual mail delivery route. Cushingberry was upset about the recent lack of mail delivery and aggressively approached Summers to ask about the status of their mail. Cushingberry pursued Summers onto a neighbor’s porch causing Summers to reach for her can of defensive spray and spray Cushingberry. Cushingberry took out a handgun from his waistband and shot Summers in the chest. Summers collapsed on the porch while Cushingberry fled. Summers was pronounced dead at the hospital. Cushingberry later gave a statement to law enforcement admitting to shooting Summers.

“Letter carrier Summers was a dedicated public servant simply doing her job when she was senselessly murdered,” said U.S. Attorney Zachary A. Myers. “Our office will work with our law enforcement partners to hold criminals accountable for violent attacks on government officials. While no prosecution will bring the victims of gun violence home to their families, we will work tirelessly to protect the public and bring violent criminals to justice.”

“The safety and well-being of Postal Service employees is a top priority for the Postal Inspection Service, and every act or threat of violence elicits an immediate and firm response,” said Inspector-in-Charge Rodney Hopkins. “This judicial outcome demonstrates our commitment to ensuring that all USPS employees can come to work and serve the public without having to endure an atmosphere of fear and intimidation, and we hope that this case’s resolution will serve as a deterrent to those criminal actors who threaten the fundamental right of a safe work environment for our nation’s postal employees. In addition to the tireless efforts made by Inspectors in furtherance of this investigation, I would like to thank our law enforcement partners who provided invaluable assistance, namely the Indianapolis Metropolitan Police Department, the FBI, and the ATF, as well as the U.S. Attorney’s Office for the Southern District of Indiana for making this a high priority case in their office and their continued support throughout the investigation.”

Cushingberry pleaded guilty to second-degree murder. He is scheduled to be sentenced by U.S. District Court Judge Jane Magnus-Stinson at a later date. Cushingberry faces a maximum of life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The United States Postal Inspection Service, Indianapolis Metropolitan Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. The Federal Bureau of Investigation also provided valuable assistance.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Jayson McGrath and Peter Blackett who are prosecuting the case.