Month: November 2022

Source: United States Department of Justice News

NEWARK, N.J. – A Union County, New Jersey, man admitted 12 counts of preparing a false tax return, U.S. Attorney Philip R. Sellinger announced today.

Terrence LeGall, 69, of Linden, New Jersey, pleaded guilty on Nov. 2, 2022, before U.S. District Court Judge John M. Vazquez in Newark federal court to a superseding indictment charging him with 12 counts of aiding and abetting the preparation of a false tax return.

According to the documents filed on the record and statements made in court:

Between 2013 and 2017, LeGall, the sole operator of a financial adviser and tax preparer service in Union County, New Jersey, called LeGall Group Inc. (LGI), prepared numerous false tax returns for his clients in which he included fake charitable contributions, unreimbursed business expenses and business losses that he knew his clients had not actually incurred. This resulted in a reduction in the clients’ tax liability and a fraudulent refund from the IRS. LeGall acted as a “ghost preparer” – although he prepared income tax returns for his clients, he did not identify himself anywhere on the returns as a preparer and filed the returns in a manner that made it look like the returns had been filed by the taxpayers. LeGall’s actions caused losses in excess of $300,000 to the U.S. Treasury.

Each count of false preparation of an income tax return carries a maximum prison sentence of three years and a $250,000 fine. As part of his plea agreement, LeGall has agreed to pay the government restitution in the amount of $314,225, and to file amended returns and pay any outstanding taxes LGI owes from 2012 through the present. Sentencing has been scheduled for March 29, 2023.

U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division and Assistant U.S. Attorney Mark McCarren of the Special Prosecution Division in Newark.

Source: United States Department of Justice News

BECKLEY, W.Va. – Darion D. Jackson, 23, of Michigan, pleaded guilty today to distribution of fentanyl.

According to court documents and statements made in court, on February 8, 2021, Jackson sold a quantity of fentanyl to a confidential informant at a Coal City, West Virginia, residence where Jackson was staying.

Jackson admitted to possessing that fentanyl and a separate quantity of fentanyl that he sold to a confidential informant in the Coal City area on May 27, 2021. On August 23, 2021, law enforcement officers stopped a vehicle driven by Jackson. The officers found approximately 21.1 grams of fentanyl in Jackson’s vehicle. Jackson admitted that he possessed the fentanyl and planned to distribute it within the Southern District of West Virginia.

Jackson is scheduled to be sentenced on February 16, 2023, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a one million dollar fine.

United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit.

United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-30.

 

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Source: United States Department of Justice News

SPRINGFIELD, Mo. – A Pineville, Mo., couple has been charged in federal court for their roles in the kidnapping and murder of a pregnant Arkansas woman.

Amber Waterman, 42, and her husband, Jamie Waterman, 42, were charged in separate criminal complaints signed on Thursday, Nov. 3, and filed in the U.S. District Court in Springfield today. The Watermans remain in federal custody pending detention hearings, which have not yet been scheduled.

Amber Waterman is charged with one count of kidnapping resulting in death. The federal criminal complaint alleges that, between Oct. 31 and Nov. 2, 2022, Amber Waterman kidnapped Ashley Bush, who was approximately 31 weeks pregnant, in order to claim her unborn child as her own. She allegedly transported Ashley Bush from Maysville, Arkansas, to Pineville, resulting in her death.

Jamie Waterman is charged with one count of being an accessory after the fact to kidnapping resulting in death. The federal criminal complaint alleges that he assisted Amber Waterman, in order to hinder and prevent her apprehension, trial, and punishment, knowing she had committed the offense of kidnapping resulting in death.

According to an affidavit filed in support of the federal criminal complaints, Amber Waterman adopted the false on-line persona of “Lucy” in order to meet Ashley Bush, then lured her to meet a second time to give her a ride to a purported job interview. Instead, the affidavit says, Amber Waterman killed Ashley Bush.

Amber Waterman allegedly led Jamie Waterman to the body of Ashley Bush, who was clothed and lying face down next to a boat near their house, covered in a blue tarp. Amber Waterman removed a ring from Ashley Bush’s finger and rolled her body onto the blue tarp, the affidavit says, which Jamie Waterman then dragged to a fire pit behind the residence. The Waterman’s allegedly burned the body, moved it onto the bed of Jamie Waterman’s blue GMC pickup, and drove a short distance from their residence to hide the body.

Ashley Bush was reported as a missing person on Monday, Oct. 31. Her fiancé told law enforcement that he saw her being driven as a passenger in a pickup truck by a woman he knew as “Lucy.” They had originally met “Lucy” at the Gravette, Ark., public library a few days earlier, at which time “Lucy” was driving the same pickup truck. During this meeting at the library, “Lucy” and Ashley Bush had discussed employment opportunities, and later that day, “Lucy” offered to drive her to meet her supervisor at a Bentonville, Ark., company.

On Oct. 31, Ashley Bush’s fiancé drove her to meet “Lucy” at a Handi-Stop convenience store in Maysville, Ark. He later received a message to pick her up at the same Handi-Stop store, but while he was waiting for her to arrive, he saw “Lucy” and Ashley Bush drive past without stopping. He attempted to contact Ashley Bush by phone, but his calls went to voice mail. He later found her phone on the side of the highway.

Detectives with the Benton County, Ark., Sheriff’s Department examined the phone and found the Facebook account for “Lucy.” Detectives located a public posting on the account that read “I have a bunch of baby items if any moms to be need them.” Detectives traced the Facebook account to Jamie Waterman, and learned from examining Amber Bush’s Google records that she had traveled to Pineville, approximately .15 miles from the Watermans’ residence.

When investigators questioned the Watermans on Tuesday, Nov. 1, they were initially told that Amber had a miscarriage. Detectives noticed what appeared to be blood stains on the inside of a pickup truck that matched the description of the vehicle given by Ashley Bush’s fiancé. The vehicle was seized by law enforcement and search warrants obtained on Thursday, Nov. 3, for the vehicle and residence.

Detectives questioned Jamie Waterman again on Thursday, Nov. 3. According to the affidavit, he told detectives that, after they had questioned them and left their residence, Amber Waterman told him she had killed Ashley Bush and then quickly changed her story and said “Lucy” had killed her. She then led him to the body, which he assisted in disposing.

The charges contained in these complaints are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

These cases are being prosecuted by Assistant U.S. Attorneys Stephanie L. Wan and James J. Kelleher. They were investigated by the FBI, the Benton County, Ark., Sheriff’s Department, and the McDonald County, Mo., Sheriff’s Department in conjunction with the U.S. Attorney’s Office in the Western District of Arkansas and the Benton County, Ark., Prosecuting Attorney’s Office.

Court Documents:

waterman_amber_complaint_redacted.pdf

waterman_jamie_complaint_redacted.pdf

Source: United States Department of Justice News

CLEVELAND – Demetrius Moore, 42, of Cleveland, Ohio, was sentenced on Friday, Oct. 28, 2022, to three and a half years in prison by U.S. District Judge Pamela A. Barker and was ordered to pay $183,215.47 in restitution to the Small Business Administration (SBA).  Judge Baker pronounced the sentence after Moore pleaded guilty to his role in a scheme to defraud the (SBA) by unlawfully acquiring Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loan funding.

Moore previously pleaded guilty to one count of theft of government funds,  two counts of wire fraud and one count of being a felon in possession of a firearm.

According to court documents, between July 2020 and March 2021, Moore devised and participated in a scheme to defraud the SBA by obtaining PPP and EIDL loans through false and fraudulent pretenses and spent loan funding on personal expenses, such as a Rolex watch, a Volvo Sleeper Truck Tractor and retail purchases at Best Buy and Louis Vuitton.

As part of the scheme, in July 2020, Moore opened a business bank account in the name of a purported investment company with no legitimate business operations and no employees.  Moore and an unnamed coconspirator then used that bank account to apply for and receive PPP and EIDL loans.  

Court documents state that Moore provided false and fictitious information on his PPP and EIDL loan applications, including declaring that his company had 10 employees and substantial annual revenues when, in fact, it had neither.  As a result of these fraudulent loan applications, Moore received $183,215.47 in funding from both the PPP and EIDL.  After the funds were deposited into his bank account, Moore then used the funds to make personal purchases.  

On Nov. 19, 2020, during the execution of a search warrant, authorities found Moore to be in possession of a firearm.  Moore is prohibited from possessing a firearm due to previous drug trafficking and firearms offense convictions in the United States District Court and the Cuyahoga County Court of Common Pleas.

At the time of the offense conduct, Moore was on federal supervised release for some of these violations.

This case was investigated by IRS Criminal Investigations (CI) and the Drug Enforcement Administration (DEA) .  This case was prosecuted by Assistant United States Attorneys Margaret A. Sweeney, Elliot D. Morrison and Alejandro A. Abreu.

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in or around March 2020 and was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic.  Under the CARES Act, the SBA provided financial assistance, in part, via the EIDL and PPP program to businesses negatively affected by the COVID-19 pandemic.

Source: United States Department of Justice News

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Victor Ortiz, 45, of Philadelphia, PA, was arrested and charged by Indictment for stalking and assaulting a woman with whom he had a previous relationship.

According to the Indictment, on the morning of May 4, 2022, the defendant pursued the victim, who is his ex-girlfriend and a federal employee, as she walked to her office in Philadelphia. Before reaching her office, the defendant allegedly threw a caustic substance on victim’s face and torso. His attack temporarily blinded the victim in her left eye and caused severe pain and scarring on her body. Additionally, the defendant attached a GPS device to the victim’s vehicle so that he could monitor her location and stalk her. After law enforcement officials discovered and removed the device, the defendant was caught on camera allegedly attempting to install a second GPS device on the victim’s vehicle in July 2022.

“The charges against Victor Ortiz allege behavior that is dangerous, terrorizing and abhorrent,” said U.S. Attorney Romero. “Everyone deserves to feel safe as they go about their daily lives: at home, while at work, and in transit; and intimate partner violence can sometimes be the most terrifying kind because someone who knows you well can strike any part of your routine. Thank you to our partners with Homeland Security Investigations for their dedicated work on this case.”

“Threats and violence against federal employees will never be tolerated,” said William S. Walker, Special Agent in Charge of HSI’s Philadelphia office. “HSI Philadelphia is committed to utilizing our investigative expertise, technical capabilities and partnerships to investigate and pursue the prosecution of those who threaten, harm or intimidate government officers or employees.”

If convicted, the defendant faces a maximum possible sentence of 40 years in prison.

The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorneys Michael R. Miller and Angella Middleton.

An indictment, information, or criminal complaint is an accusation.  A defendant is presumed innocent unless and until proven guilty.