Month: August 2022

Source: United States Department of Justice News

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that FAROUQ FASASI, 28, of Manchester, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 168 months of imprisonment, followed by three years of supervised release, for his role in lottery and romance scams that defrauded primarily elderly victims across the country of millions of dollars.

According to the evidence presented during a trial in this matter, in a lottery scam, scammers notify victims by telephone, through online communications, or by mail, that they have won the lottery.  The victims are then told that in order to collect the prize they must pay fees for things like taxes, shipping and processing.  Often, once a victim sends a small amount of money, a scammer will ask for larger sums of money with a promise of more winnings.  The victims never receive winnings.  In a romance scam, scammers take advantage of people looking for companionship by pretending to be prospective companions.  Scammers typically create fake online profiles on dating websites that include false personal details such as the death of a spouse, or military service, to lure victims to trust them.  Once they have gained the trust of victims, scammers will ask victims for money, falsely claiming to need money for medical or business emergencies, for travel to see the victim, or other purposes.

Between approximately August 2015 and March 2020, Fasasi, Rodney Thomas, Jr. and others used lottery scams, romance scams and other fraudulent means to induce elderly victims to provide them with money, gifts and personal details.  Victims sent cash, money orders or checks through the mail to various addresses in Connecticut, and also wired or deposited money into bank accounts in Connecticut controlled by conspiracy members and their associates.

Fasasi, Thomas, and other co-conspirators lived together for a time at a residence on Sherman Avenue in New Haven, where many packages containing cash, checks and money orders from victims were delivered.  Fasasi recruited others into the scheme, including those who served as “money mules.”  These individuals used personal bank accounts, and also established and used bank accounts in the names of businesses and charitable organizations, to launder money obtained from fraud victims. 

The investigation revealed that these scams defrauded more than 200 victims across the U.S. of more than $5 million.  Many of the victims were elderly and vulnerable, and some victims lost their life savings.  One Connecticut victim lost more than $1 million.

Judge Underhill ordered Fasasi to pay restitution in the amount $5,946,371.58.

“This is an appropriate sentence for a financial predator who made his money by systematically and cruelly victimizing seniors and other vulnerable individuals,” said U.S. Attorney Avery.  “The Justice Department has made it a priority to investigate and prosecute those who commit these crimes.  If you suspect that you or someone you know may be falling victim to one of these schemes, I encourage you to call your local police department or 833-FRAUD-11 for assistance.”

“The U.S. Postal Inspection Service has a long and proud history of protecting the United States mail from criminal attack,” said Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service’s Boston Division.  “This defendant took advantage of one of our most vulnerable populations, senior citizens. As long as we have criminals with such disregard for the law, Postal Inspectors will continue to focus their efforts on the protection of the American public. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved, which resulted in bringing this case to justice.”

On February 15, 2022, Fasasi and Thomas were found guilty of multiple charges stemming from this scheme.  Thomas awaits sentencing.

Four other individuals have been charged and convicted of offenses stemming from their participation in this scheme.

Fasasi, who is released on a $200,000 bond, is required to report to prison on September 21.

The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud.  The Hotline is staffed by experienced case managers who can provide personalized support to callers.  Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed.  When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller.  The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).  For more information, please visit. https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope.

This matter is being investigated by the U.S. Postal Inspection Service, Treasury Inspector General for Tax Administration (TIGTA), Homeland Security Investigations (HSI), U.S. Secret Service, U.S. Army-CID, and New Haven Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Heather L. Cherry and Stephanie T. Levick.

Source: United States Department of Justice News

Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Diana M. Hopkins (48, Wimauma) to 37 months in federal prison for wire fraud, access device fraud, and money laundering.  As part of her sentence, the Court also entered an order of forfeiture in the amount of $115,995.67, the proceeds of the charged criminal conduct, and ordered her to pay restitution in the amount of $432,938.64.  Hopkins had pleaded guilty on April 12, 2022.

According to court documents, Hopkins owned and operated Hopkins Travel Services LLC (“HTS”) in Wimauma, Florida. From about April of 2017 through September 2019, Hopkins used HTS to commit wire fraud and access device fraud and to engage in illegal monetary transactions.  Specifically, Hopkins made false and fraudulent misrepresentations in soliciting clients via Facebook, a website (www.htsvacationdeals.com) and other means, to purchase cruise packages through HTS at discounted prices and/or “buy one get one” deals, which fares were well below what the cruise lines actually offered and the amounts that HTS had to pay or would ultimately pay for clients’ cruises. Hopkins made additional misrepresentations in offering clients further discounts and/or additional travel amenities to induce them to make payments for cruise package reservations and related travel arrangements in full and well in advance of the clients’ cruise sail dates.

Hopkins caused some clients to provide credit card information ostensibly for the purpose of paying for their cruise package reservations and related travel arrangements, and then used the credit card information to make Ponzi-style payments on other clients’ reservations via the cruise lines’ reservation portals, without any of the clients’ knowledge or consent. In fact, when Hopkins input credit card information into the cruise lines’ reservation portals, she altered the names associated with certain credit card information so that said names matched the names on the cruise package reservations to which she applied the payments.

Hopkins caused other clients to make payments via Stripe, Square, PayPal and other ePayment services, and she caused the payments to be transferred into bank accounts she controlled. Then Hopkins used proceeds of some clients’ ePayments to make Ponzi-style payments on other clients’ reservations via the cruise lines’ reservation portals, without any of the clients’ knowledge or consent.

Moreover, Hopkins used a portion of her clients’ payments made for cruise package reservations and related travel arrangements to pay for personal and family expenses for, among other things, groceries, restaurants, retail shopping, and other household items and services, and otherwise for her own personal enrichment. Such expenditures included, but were not limited to, cruises for family members, jewelry, and a 2019 Dodge Ram 1500.

In total, Hopkins’ offenses resulted in financial losses to the victims in the amount of approximately $461,823.38. She personally received at least $91,495.67 in fraudulent proceeds, and she used an additional $24,500 in fraudulent proceeds towards the purchase of the 2019 Dodge Ram.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.

Source: United States Department of Justice News

A federal grand jury in Boston returned a superseding indictment on Saturday, charging a Massachusetts man with willfully failing to pay over employment taxes to the IRS, conspiring to defraud the IRS, and aiding in the preparation of a false tax return.

According to the superseding indictment, Mauricio Baiense, formerly of Quincy, owned and operated Contract Framing Builders, Inc. (CFB), a Medford construction business. Baiense allegedly was responsible for filing CFB’s quarterly employment tax returns and collecting and paying over to the IRS payroll taxes withheld from the wages of the company’s employees.

From approximately 2013 through 2017, Baiense allegedly took a series of steps to convert CFB’s corporate funds into cash. The indictment charges that he allegedly wrote checks drawn on CFB’s bank account to purported subcontractors, which were in fact nominee entities controlled by him. Baiense allegedly then cashed or directed others to cash approximately $11 million in such checks at a check cashing business during this period. Baiense, and at times another man, then allegedly used the cash to operate an “off-the-books” cash payroll for CFB’s employees. He allegedly did not report the cash wages to the IRS and did not pay employment taxes on wages paid to employees in cash. Baiense also allegedly assisted in the preparation of at least one fraudulent employment tax return that understated the actual wages paid to CFB’s employees.

In June, Baiense was indicted for making a false statement when questioned at a U.S. Department of Labor Occupational Safety and Health Administration hearing regarding a workplace accident.

If convicted, Baiense faces up to five years in prison for each of the seven counts of willful failure to collect or pay over employment taxes, five years in prison for conspiring to defraud the United States, and three years in prison for aiding and assisting in the preparation of a false tax return. He also faces up to five years in prison for the false statement charge. 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 U.S. Attorney Rachael S. Rollins for the District of Massachusetts made the announcement.

IRS-Criminal Investigation, the Department of Labor’s Occupational Health and Safety Administration, and Homeland Security Investigations investigated the case.

Trial Attorney Thomas F. Koelbl of the Justice Department’s Tax Division and Assistant U.S. Attorney David Tobin of the U.S. Attorney’s Office 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

Erie, Pa. – After deliberating about five hours, a federal jury on Friday found Jeffrey Colin Rogers guilty of six counts of violating federal laws relating to the sexual exploitation of children, United States Attorney Cindy K. Chung announced today.

Rogers, 59, was tried before United States District Judge Stephanie L. Haines in Erie, Pennsylvania.

According to Assistant United States Attorney Christian A. Trabold, who prosecuted the case, the evidence presented at trial established that in November 2017, Rogers used his phone to take multiple sexually explicit photos of two minors after providing them marijuana and alcohol at his apartment in Sheffield, Pennsylvania. Rogers then kept the photos on his phone. Rogers also had sexual contact with the two minor victims. The Pennsylvania State Police discovered the illegal images after executing a search warrant at Rogers’ apartment in February 2018 and seizing Rogers’ phone.

This case 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 and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Judge Haines scheduled sentencing for December 5, 2022, at 10:00 a.m. The law provides for a total sentence of 160 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.

The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Rogers.

Source: United States Department of Justice News

ALEXANDRIA, Va. – The Justice Department today announced that two Virginia landlords have agreed to pay $225,000 to resolve allegations that they violated the Servicemembers Civil Relief Act (SCRA) by obtaining unlawful court judgments against military tenants at the Hideaway at Greenbrier Luxury Apartment Homes in Chesapeake and the Chase Arbor Apartments in Virginia Beach.

The department launched its investigation after a Navy legal assistance attorney reported that the owner of the Hideaway at Greenbrier had obtained an eviction default judgment against a servicemember after filing an affidavit that falsely stated that she was not in military service. Under the SCRA, if a landlord files a civil lawsuit against a tenant and the tenant does not appear in court, the landlord must file an affidavit with the court stating whether the tenant is in the military before seeking a judgment. If the affidavit says that the tenant is in military service, the court cannot enter judgment until it appoints an attorney to represent the servicemember. The court must also postpone the case for at least 90 days.

In a complaint filed in the U.S. District Court for the Eastern District of Virginia, the department alleges that the owners of the Hideaway at Greenbrier and Chase Arbor Apartments filed false affidavits and failed to file affidavits of military service, as required by the SCRA, prior to obtaining improper judgments against numerous servicemembers. The properties are affiliated with one another and used the same law firm to file eviction claims in Virginia state courts.

The department alleges that the properties’ owners knew or should have known that the affidavits that were filed were inaccurate because their files contained information that would have allowed them to easily verify their tenants’ military status. Landlords and lenders can also verify an individual’s military status by searching the Defense Manpower Data Center’s free publicly available website and by reviewing their files to identify applications, military leave and earnings statements, or military orders indicating military status.

“Eviction judgments seriously jeopardize a servicemember’s ability to find and obtain affordable housing and negatively impact the financial readiness of our armed forces,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department will vigorously pursue any landlord that obtains eviction judgments against servicemembers by misrepresenting their military status to the court.”

“A servicemember’s military career is adversely affected by a judgment, which affects the military’s readiness,” said Jessica D. Aber, United States Attorney for the Eastern District of Virginia. “The U.S. Attorney’s Office is committed to pursuing companies that obtain default judgments against servicemembers by misrepresenting a servicemember’s military status or by failing to file an affidavit of military service, as required by the SCRA.”

Under the proposed consent order, which still must be approved by the court, the owners of the two properties will pay $162,971 to affected servicemembers and a $62,029 civil penalty to the United States. The order also requires the owners to vacate the eviction judgments, repair the servicemembers’ credit, provide SCRA training to their employees, and develop new policies and procedures consistent with the SCRA. The owners must also reimburse affected servicemembers for any amounts collected pursuant to an unlawful judgment.

This matter was handled jointly by the U.S. Attorney’s Office for the Eastern District of Virginia and the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the department has obtained over $476 million in monetary relief for over 121,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER.

The civil claims settled are allegations only; there has been no determination by a court of liability