Month: April 2023

Source: United States Department of Justice News

            Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that Christina Prather Williams, 42, from Valley, Alabama, received a sentence of 20 months in prison for preparing false federal tax returns.

            According to court records and statements made in open court, Williams operated a tax preparation service in Valley, Alabama, “Family Tax Service,” where she prepared federal income tax returns for clients. Some of Williams’s clients complained to the Valley Police Department that they never received their tax refunds. The Valley Police Department’s investigation revealed that Williams had forged power of attorney forms in her clients’ names and cashed their refund checks, keeping the money for herself. The Valley Police Department reported its findings to the IRS. During its own investigation, the IRS determined that Williams had indeed prepared and filed false tax returns that included deductions her clients were not entitled to claim. In light of this conduct, on June 8, 2022, Williams was indicted.

            In her plea agreement, Williams specifically admitted to filing for two individuals 2018 returns containing numerous false claims. In one return, filed in March of 2019, Williams claimed that a client incurred solar electric and water heating property costs, medical and dental expenses, home mortgage interest and points, and gifts to charity totaling $39,887.00. Williams also admitted to filing a return for another customer in April of 2019 that falsely claimed the same types of expenses, plus child and dependent care costs, in the amount of $42,841.00. Williams included all of these expenses in her customers’ returns despite knowing that the customers were not entitled to claim the expenses. As a result of Williams’ false statements, the IRS paid a larger return to the taxpayers than they were entitled to receive.

            In addition to the 20-month prison sentence ordered on April 3, 2023, Williams will also serve one year of supervised release and is required to pay the IRS $76,694.00 in restitution.

            “Tax preparers are entrusted to complete their clients’ returns using accurate and legitimate tax information,” stated United States Attorney Stewart. “Unfortunately, some paid tax preparers falsify information to make more money for themselves. I applaud the Valley Police Department and the IRS for investigating this case and stopping these crimes against the American taxpayer.”

            “Christina Williams used her position as a tax preparer to defraud her clients and the U.S. government and will now be held accountable,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “As this year’s tax season comes to a close, this is a timely reminder for taxpayers to review their returns carefully before signing and submitting them to the IRS. IRS Criminal Investigation will continue to investigate and recommend prosecution of dishonest tax preparers.”

            The IRS’s Criminal Investigation Division and the Valley Police Department investigated this case. Assistant United States Attorney Megan A. Kirkpatrick prosecuted the case.

Source: United States Department of Justice News

Defendant Convicted of Joining Others in Planning and Carrying Out Attack

            WASHINGTON – A California man has been convicted of conspiracy and other crimes related to the breach of the U.S. Capitol on Jan. 6, which disrupted a joint session of the U.S. Congress that was in the process of ascertaining and counting the electoral votes related to the presidential election.

            Edward Badalian, 28, of Panorama City, California, was convicted by Judge Amy Berman Jackson of conspiracy, obstruction of an official proceeding, and entering and remaining in a restricted building following a bench trial last month. The defendant remains on pre-trial release until sentencing. The sentencing hearing is set for July 21, 2023 at 9:30 a.m.

            Badalian was charged in a superseding indictment returned in a case initially filed in March 2021 against Daniel Rodriguez, 40, of Fontana, California. Rodriguez was indicted at that time on charges including the assault of Metropolitan Police Department Officer Michael Fanone. The superseding indictment added a conspiracy charge against him. Rodriguez pleaded guilty to four felonies, including conspiracy, on February 14, 2023, in the District of Columbia.

            According to the indictment, in the fall of 2020, Badalian, Rodriguez and others created a Telegram group chat, called the “Patriots 45 MAGA Gang,” and used it as a platform to advocate violence against certain groups and individuals that that either supported the 2020 Presidential election results, supported what the group perceived as liberal, or communist ideologies, or held positions of authority in government. The group’s activities included collecting weapons and tactical gear to bring to Washington, D.C. on Jan. 6, storming past barricades to gain unlawful access to the Capitol, and coordinating activities before, during, and after the riot. 

            The U.S. Attorney’s Office for the District of Columbia and the Justice Department’s National Security Division prosecuted the case, with valuable assistance provided by the U.S. Attorney’s Office for the Central District of California.

            The FBI’s Los Angeles and Washington Field Offices are investigating the case, with valuable assistance from the Metropolitan Police Department and U.S. Capitol Police.

            In the 26 months since Jan. 6, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Source: United States Department of Justice News

DETROIT – A Detroit man pleaded guilty today to wire fraud and aggravated identity theft arising out of a scheme to defraud multiple states out of more than $1.6 million in pandemic-related unemployment insurance benefits, announced United States Attorney Dawn N. Ison.

Ison was joined in the announcement by Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General, and Special Agent in Charge John Marengo of the United States Secret Service’s Detroit Field Office.   

Darren Smith, 36, entered his guilty pleas before United States District Judge Terrence G. Berg. 

According to court records, beginning as early as May 2020 and continuing through at least July 2020, Smith, with the intent to defraud, filed approximately 250 fraudulent unemployment insurance (UI) claims seeking pandemic unemployment assistance (PUA) benefits to which he was not entitled.  Smith submitted the fraudulent claims in the names of multiple individuals, using their Social Security Numbers and other personal identifying information, without their authorization or consent.  The fraudulent UI benefits were paid out via debit cards, which Smith then used to repeatedly withdraw the funds via ATMs located in the Eastern District of Michigan.

United States Attorney Ison stated, “This case reflects our ongoing commitment to prosecute those who took advantage of the Covid-19 pandemic by stealing funds intended for those in need.  We treat this kind of fraud especially seriously because corruption within these programs undermines trust and confidence in government programs generally.  My office will remain vigilant in the pursuit of those who cheat the government and their fellow citizens.” 

“Darren Smith engaged in an unemployment insurance fraud scheme that targeted multiple state workforce agencies. Smith submitted false unemployment insurance claims in the names of identity theft victims to obtain debit cards loaded with stolen unemployment benefits. We will continue to work with our law enforcement partners to safeguard the unemployment insurance system from those who exploit these benefit programs,” said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.

“The U.S. Secret Service continues to work with our law enforcement partners on UIA Fraud schemes.  We are thankful to the US Attorney’s Office and Department of Labor for partnering with us in the investigation and prosecution of this case,” said Special Agent in Charge Marengo.

Smith faces a statutory maximum penalty of 20 years imprisonment on the charge of wire fraud and a mandatory minimum sentence of 2 years imprisonment on the charge of aggravated identity theft.  Per the terms of his plea agreement, Smith will also be required to pay restitution to the victim states in the total amount of $1,611,648.  Sentencing is set for August 17, 2023, at 2pm.

This case was investigated by the U.S. Department of Labor Office of the Inspector General and the U.S. Secret Service.  The case is being prosecuted by Assistant United States Attorney Sarah Youngblood and Special Assistant United States Attorney Corinne M. Lambert.

Source: United States Department of Justice News

A former San Diego Police Department vice detective and his co-defendants each pleaded guilty today in connection with their operation of five illicit massage businesses in California and Arizona that profited for years by exploiting women to engage in commercial sexual services under the guise of offering therapeutic massage services.

According to court documents, Peter Griffin, 78, who left the department in 2002, Kyung Sook Hernandez, 58, Yu Hong Tan, 56, and Yoo Jin Ott, 46, owned and operated Genie Oriental Spa, Felicita Spa, Blue Green Spa, Maple Spa and Massage W Spa, located in the greater San Diego area and in Tempe, Arizona, between 2013 and August 2022. The criminal scheme included incorporating their businesses with state agencies, managing the finances of the businesses, advertising commercial sexual services online, recruiting and employing women to perform commercial sexual services in the businesses and benefiting financially from the illegal enterprises. The defendants leased multiple commercial properties as storefronts, leased and bought residential properties to use as housing for employees, and secured credit card processing equipment to operate the illicit massage businesses.

Griffin previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the very businesses he operated and promoted for personal profit. Throughout the course of the scheme, Griffin used the experience and skills he acquired through his work as a vice detective – and in at least one instance, his badge – to help the businesses evade law enforcement, thwart regulatory inspections, investigations, and any official action against the businesses, conceal evidence, and maintain a façade of legitimacy. On another occasion, Griffin told an employee that he was a former police officer and instructed her not to “open [her] mouth” about her employment at the illicit massage business. Griffin also used resources he had access to by virtue of his private investigator license to obtain information on customers and employees on behalf of the illicit massage businesses. During the scheme, the defendants encouraged and expected employees to perform commercial sexual services inside the businesses and relied on Griffin’s law enforcement background to help conceal the criminal conduct. When one employee initially refused to perform commercial sexual services, one of the defendants instructed her to “leave [her] morals in China” in order to “make the customers happy.”

“The defendant – a former vice detective who once took an oath to uphold our laws – knew more than most that illicit massage businesses cruelly profit by exploiting women for commercial sex,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are committed to prosecuting the proprietors of these illegal businesses, and to shining a light on those places where sexual exploitation and trafficking persist.”

“Peter Griffin misused the expertise acquired during his time as a vice detective and abused the respect that came with his badge – all to ensure that his ‘massage parlors’ operated under the radar for his personal financial gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The guilty pleas of Griffin and his co-defendants underscore the Justice Department’s commitment to holding accountable those who profit from crime, particularly crimes that involve the exploitation of vulnerable populations and the abuse of trust that communities place in law enforcement. This plea would not have been possible without the innovative and collaborative efforts of our partners in federal and local law enforcement, the Human Trafficking Prosecution Unit, and the U.S. Attorney’s Office for the Southern District of California.”

“This criminal scheme involved illicit businesses that exploited a vulnerable population,” said U.S. Attorney Randy Grossman for the Southern District of California. “We are committed to prosecuting the offenses that impact not only the employees of these illicit businesses, but the safety of the communities in which they operate.”

“Griffin betrayed the pledge he took to uphold our laws and to protect the members of our community through his egregious misuse of power and knowledge,” said Acting Special Agent in Charge John Kim of the FBI San Diego Field Office. “We appreciate the collaboration of our federal, state, and local partners to ensure that justice is served to Griffin and his co-conspirators. There is no place in our community for those who negligently prioritize money over people.”

Griffin pleaded guilty to conspiring to violate the Interstate Travel in Aid of Racketeering Act (ITAR) by using facilities in interstate commerce to promote and facilitate businesses involving prostitution, and to wire fraud conspiracy and money laundering, for which he faces a maximum penalty of 30 years in prison. Hernandez, Tan and Ott, who managed the different illicit massage businesses in Griffin’s network, each pleaded guilty to misprision of a felony and face maximum penalties of three years in prison.

Assistant Attorney General Clarke, Assistant Attorney General Polite, U.S. Attorney Grossman and Special Agent in Charge Plantz made the announcement.

The investigation was led by Homeland Security Investigations, IRS Criminal Investigation, and the San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable. The task force is comprised of numerous federal, state and local agencies, as well as the Southwest Border High Intensity Drug Trafficking Area program. The investigation was also supported by the FBI, the San Diego Police Department, the San Diego Sheriff’s Office, the Escondido Police Department, the San Diego District Attorney’s Office and the Tempe, Arizona, Police Department.

Assistant U.S. Attorney Jill Streja for the Southern District of California, Trial Attorney Caylee Campbell of the Money Laundering and Asset Recovery Section of the Criminal Division and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.

Source: United States Department of Justice News

DETROIT – A Detroit man was sentenced today to two years in prison for purchasing a Draco pistol for his friend, Ehmani Davis, who would go on to use the firearm in the killing of Detroit Police Officer Loren Courts, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Craig Kailimai Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Explosives, and Firearms.

Sheldon Thomas, age 27, of Detroit, Michigan, was sentenced by United States District Judge Gershwin Drain. According to court documents and statements made in court, on June 7, 2022, Thomas bought a Century Arms Draco pistol in Eastpointe, Michigan. Thomas admitted to lying on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473, by falsely certifying that he was the buyer of the firearm when he knew he was purchasing it for Ehmani Davis.

Thomas gave Davis the firearm on the day of the purchase. Thomas admitted that Davis gave him the money to buy the firearm. Thomas further admitted that he made multiple attempts to purchase a handgun for Davis.

“The tragic death of Detroit Police Officer Loren Courts is another terrible example of what happens when guns are supplied to those who are prohibited from possessing them,” said U.S. Attorney Ison. “Fighting violent crime is a top priority in our office, and we are committed to holding accountable those who engage in illicit firearm transactions.”

“The loss of Detroit Police Officer Courts was a tragedy that could have been prevented. There are serious consequences that can come from illegally purchasing firearms for prohibited individuals. A critical part of ATF’s mission is to stop violent criminals from possessing firearms before a loss of life occurs,” said, Assistant Special Agent in Charge Craig Kailimai “We will continue to work side by side with our U.S. Attorney’s, federal, state, and local law enforcement partners to make our communities safer.”

This case was investigated by the Bureau of Alcohol, Tobacco, Explosives, and Firearms.  The case was prosecuted by Assistant U.S. Attorney Barbara Lanning.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.