Setting Fire to a House
Rodney Glenn Lowder, 36, was charged April 12 with setting fire to a house he owns at 9201 Oakridge Drive, Kannapolis, according to the Rowan County Sheriff’s Office.

Drug and Weapons Charges
Kelly Romeo, 39, and Lisa Annette Donehue, 38, both of 9490 Oakridge Drive, Kannapolis, face drug and weapons charges following an April 4 domestic incident at their home.

Simple Assault / Assault and Battery
Donehue, 38, was charged with simple assault/assault and battery at 418 S. Enochville Ave., Kannapolis.

Assault with a Deadly Weapon
Edward Grady Long, 37, was charged April 4 with assault with a deadly weapon inflicting serious injury based on a complaint by Bobby Wayne Martin at 2825 N.C. 153, China Grove.

Assault on a Female
Ronald Dale Honeycutt, 30, was charged April 8 with assault on a female at 170 Ervin Loop Road, China Grove.

Injury to Personal Property
David W. Sickle, 49, was charged April 12 with injury to personal property at 190 Sechler St., China Grove.

Felony Breaking and Entering
Brian Arness Mishak, 51, was charged April 4 with felony breaking and entering a building at 1802 W. C. St.

Department of Justice

MORE THAN 80 ARRESTED FOLLOWING LARGE-SCALE MARRIAGE FRAUD ROUND-UP DUBBED “KNOT SO FAST”

ORLANDO- More than eighty individuals involved in various marriage fraud conspiracies throughout Florida were arrested this week following a joint investigation between the U.S. Attorney’s Office for the Middle District of Florida, U.S. Immigration and Customs Enforcement (ICE) and U.S. Citizenship and Immigration Services (USCIS).

The results of the operation dubbed “Knot so Fast” were announced here today at a joint news conference hosted by United States Attorney Robert E. O’Neill; Robert W. Weber, Special Agent in Charge of the ICE Office of Investigations in Tampa, and Kathy Redman, District Director of U.S. Citizenship and Immigration Services in Tampa.

ICE special agents made arrests in Orlando, Jacksonville, Tampa, Sarasota, Cocoa Beach and Ft. Myers. Those arrested included individuals who arranged the sham marriages; American citizens who accepted bribes, and foreign nationals who, in some cases paid up to $10,000, to obtain a benefit by committing fraud.

The vast majority of those arrested face criminal charges; however, there are some that face administrative immigration charges to include possible deportation.

Some of these marriages were arranged by individuals who would “coach” those committing the fraud on how to make their marriage appear legitimate. They had wedding dresses on hand, fake cakes, and preset staging for pictures.

U.S. Attorney O’Neill stated, “Sham marriages are a threat to Homeland Security. They subvert our immigration laws and our efforts to ensure proper and legal identification of those who enter and remain in our country. Those individuals who take illegal shortcuts to citizenship, or assist in that activity, will be investigated and prosecuted.”

“Benefit fraud poses a significant vulnerability that must not go unchallenged,” said SAC Weber. “Operation Knot so Fast should send the clear message that ICE and its law enforcement partners will not tolerate the exploitation of our country’s immigration system. Whether you are marrying one person under false pretenses or various people, or facilitating the fraud, know this: you will be found, arrested and held accountable for your actions.”

“Marriage fraud will not be tolerated. It is a direct attack to the national security of the United Sates,” said Director Redman. “The process of detection of marriage fraud begins the moment an application is submitted to our agency and later when a couple comes to our offices for a marriage interview. So, beware. The job of our adjudicators is not just to grant or not an immigration benefit. It is also, and most definitely, keeping our country secure.”

These investigations were part of the Department of Homeland Security’s (DHS’s) Document and Benefit Fraud Task Forces (DBFTFs). The task forces were created in March 2006, to target, seize illicit proceeds of and dismantle the criminal organizations that threaten national security and public safety and address the vulnerabilities that currently exist in the immigration process. Through DBFTFs, ICE partners with other agencies such as the Department of Labor, the Social Security Administration, U.S. Postal Service, U.S.

Citizenship and Immigration Services, the Department of State and various state and local law enforcement agencies. These task forces focus their efforts on detecting, deterring and disrupting both benefit fraud and document fraud.

Over the past four years, the number of document and benefit fraud investigations launched by ICE has increased from 2,334 in Fiscal Year 2004 to 3,591 in FY 2005, to 5,222 for FY 2006 and first half of FY 2007. Corresponding criminal indictments in these cases have increased from 767 to 875 to 1,595, while arrests have risen from 1,300 to 1,391 to 2010 and convictions have increased from 559 to 992 to 1,609.

These cases were investigated by ICE and CIS. The following Assistant United States Attorneys are handling the prosecution of these cases: Tanya Davis Wilson, Daniel C. Irick, Carlos Perez, Dale Campion, Tysen Duva, Vincent Citro, Eduardo Toro-Font, Nicole M. Andrejko, Dan Irick, Bishop Ravenel, and Jesus Casas.

U.S. Attorney O’Neill thanked the following agencies for their assistance: ICE’s Office of Detention and Removal; the U.S. Marshals Service; FBI; Daytona Beach Police; Volusia County Sheriffs’s Office, Brevard County Sheriff’s Office; Orange County Police; Osceola County Police; Seminole County Sheriff’s Office; Lake County Sheriff’s Office; Kissimmee Police; Department of State Diplomatic Security; Naval Criminal Investigative Service (NCIS); Jacksonville Sheriff's Office (JSO) and the United States Secret Service (USSS).

An indictment or complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until proven guilty.

ALIQUIPPA MAN PLEADS GUILTY TO HEALTH CARE FRAUD CHARGE

United States Attorney's

United States Attorney Mary Beth Buchanan announced today, May 14, 2008, that Gregory L. Jovanelly, a resident of Aliquippa, Beaver County, Pennsylvania, pleaded guilty in federal court to a charge of Health Care Fraud.

Jovanelly, age 43, pleaded guilty to a one-count Information before United States District Judge Terrance F. McVerry.

In connection with the guilty plea, Assistant United States Attorney Scott W. Brady advised the court that from May 17, 2004 through May 25, 2006, Jovanelly made $94,098 in fraudulent claims to United Concordia Companies, Inc., a health care insurance company specializing in dental insurance, for reimbursement of dental treatments and services to patients, which were either never performed or which were different than the actual dental treatments and services performed by Jovanelly and others in his employ.

Judge McVerry scheduled sentencing for August 15, 2008. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense(s) and the criminal history, if any, of the defendant.

The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Gregory L. Jovanelly.

Federal Bureau of Investigation
Florence Man Sentenced for Stealing Thousands from Non-Profit

Covington, Ky. —Steven R. Sparks, 36, of Florence, Ky. was sentenced today to 13 months in prison by United States District Court Judge David. L. Bunning for committing wire fraud that allowed him to steal thousands of dollars from a nonprofit organization.

Sparks admitted during his guilty plea in January that between 2002 and 2006, while he was the treasurer of a nonprofit civic organization, he diverted approximately $325,000 for his personal use. As treasurer of the Villa Hills Civic Club, he was able to conceal his theft by making false entries in the club’s books and by transferring funds between his account and the club’s account via wire transfer. Sparks paid back a large portion of the fund prior to the theft being uncovered, but still owed more than $100,000 in restitution at the time of the arraignment. He did manage to pay the outstanding restitution prior to sentencing.

According to the facts of the plea agreement, because Sparks was the treasurer, he was authorized to write checks on the club’s bank accounts at Huntington Bank and to transfer funds to and from the Huntington accounts. Sparks defrauded the Club by writing checks either to himself or to his business that were drawn on the club’s Huntington checking accounts. In order to conceal the fraud, Sparks altered bank statements submitted to the Club’s board of directors and transferred funds to and from accounts.

Under federal law, Sparks must serve 85 percent of his prison sentence, and upon his release, he will be under the supervision of the United States Probation Office for three years

James A. Zerhusen, Acting United States Attorney for the Eastern District of Kentucky and Larry R. Willis, Acting Special Agent in Charge (FBI) made the announcement today after the sentencing.

The investigation was conducted by the FBI and the Villa Hills Police Department. The United States was represented by Assistant United States Attorney Benjamin G. Dusing.

Virginia Man Pleads Guilty in Connection with Mortgage Fraud Scheme

(Alexandria, Virginia) – John Andreas Tsiaoushis, 40, of Alexandria, Virginia, pled guilty today to a two- count information charging him with mail fraud affecting a financial institution and giving false testimony at a hearing in the United States Bankruptcy Court. Chuck Rosenberg, United States Attorney for the Eastern District of Virginia; Joseph Persichini, Jr., Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office; Guy J. Cottrell, Postal Inspector in Charge, U.S. Postal Inspection Service, Washington Division; Jeffrey Irvine, Special Agent in Charge, U.S. Secret Service, Washington Field Office; and Eric M. Thorson, Inspector General, Small Business Administration, made the announcement after the plea was accepted by United States District Judge Liam O’Grady. Tsiaoushis faces a maximum penalty of 30 years in prison, 5 years supervised release, and a fine of approximately $7,600,000 when he is sentenced on July 18, 2008. As part of the guilty plea, Tsiaoushis agreed to the entry of a Restitution Order. The government estimates the amount of restitution due to be approximately $3,841,189.48.

Tsiaoushis admitted to operating a mortgage fraud scheme between approximately December 2004 and November 2007. According to court documents, Tsiaoushis fraudulently attempted to obtain an estimated $4,353,600 and successfully obtained an estimated $3,677,000 through the scheme. Court documents also indicate that, while the mortgage fraud was ongoing, Tsiaoushis engaged in a check kite scheme through which he obtained an estimated additional $163,500 by overdrawing his accounts with several Virginia banks. To carry out the mortgage fraud, Tsiaoushis transferred or refinanced two Virginia residential properties, one located in Vienna, Virginia, and one located in Alexandria, Virginia, on six occasions. In applying for loans, he provided the would- be lenders with false documentation, such as false loan-payoff statements purporting to be from current mortgagees, and false Certificates and Affidavits of Satisfaction purporting to be from prior mortgagees. He then arranged for the loan proceeds to be misdirected to himself by causing the title companies closing the loans to send checks for the proceeds, which were ostensibly to be used to pay off pre-existing mortgages on the properties, to false addresses. In reality, the addresses were commercial mail drop boxes that had been opened by friends, associates, and family members. Tsiaoushis diverted much of the money to businesses in which he had ownership interests.

Tsiaoushis, who had filed for bankruptcy with the United States Bankruptcy Court for the Eastern District of Virginia in October 2005, also admitted to giving false testimony in a hearing before that court about selling one of the residential properties involved in the mortgage fraud scheme.

Khalil Salim Arbid, an associate and former driver for Tsiaoushis, was sentenced on April 4, 2008 by United States District Judge James C. Cacheris to 16 months in prison, 3 years supervised release, and ordered to pay $650,613.61 in restitution for his role in the scheme.

The case was investigated by the Federal Bureau of Investigation, U.S. Postal Inspection Service, U.S. Secret Service, and Small Business Administration. Assistant United States Attorney Thomas H. McQuillan and Special Assistant United States Attorney Dennis Early of the Office of the United States Trustee are prosecuting the case for the United States.

Jim Rybicki
Public Information Officer
Phone (703) 842-4050
Fax: (703) 549-5202
Email: usavae.press@usdoj.gov

U.S. Department of Justice

United States Attorney Eastern District of Pennsylvania
615 Chestnut Street
Suite 1250
Philadelphia,
Pennsylvania 19106-4476
(215) 861-8200

CEO OF ELECTRONICS COMPANIES PLEADS GUILTY TO BANK FRAUD

PHILADELPHIA - Carl Walter Spitko, of Rydal, PA, CEO of Maintech, Inc. and Sentek, LLC, both now defunct, which had offices and a warehouse in Huntingdon Valley and Horsham, PA, pleaded guilty today to 11 counts of bank fraud and 2 counts of aiding and abetting, announced United States Attorney Patrick L. Meehan. Spitko was indicted January 11, 2007 on charges that he engaged in a scheme to defraud Wachovia Bank and its predecessor in interest, First Union, from August 2001 to January 2005.

Maintech was in the business of manufacturing, distributing and selling laminators for the printed circuit board industry, selling various spare parts relating to that equipment, and servicing that equipment, as well as related handling equipment and preheater equipment. Maintech had a line of credit with Wachovia Bank, secured by, among other things, Maintech’s eligible accounts receivable.

At today’s hearing, Spitko admitted that he had schemed to defraud the bank by doing a number of things, including falsifying the amount of Maintech’s accounts receivable, which were the security for the loan; concealing money and property from the bank, once Maintech had stopped paying on the loan; opening up a new company, Sentek, in order to use and sell Maintech’s assets to avoid repaying the bank; and giving money to an employee to pay Sentek’s expenses, out of the employee’s personal bank account, to hide the business of Sentek from the bank. The defendant’s scheme defrauded the bank out of approximately $1,454,879.84.

At today’s hearing, Spitko admitted that in spring, 2002, the bank learned that Maintech was overadvanced on its line of credit by over $1,200,000. After Wachovia entered judgments by confession against Maintech, the defendant and his wife, due to Maintech’s defaults under the line of credit, the defendant tried to conceal assets of Maintech from Wachovia by transferring Maintech’s assets, employees, vendors and customers to a new entity, called Sentek.

Among other things, Spitko admitted that he closed down Maintech on Friday, June 6, 2003, and opened Sentek the following Monday morning, June 9, 2003, in the same location, using the same employees, and simply giving his employees new cellular telephones. The defendant admitted that he operated Sentek as merely a continuation of Maintech, using Maintech’s assets, employees, vendors and customers in order to defeat Wachovia’s rights under the security agreement and his personal guarantee.

Spitko also admitted that in May 2003, before he opened Sentek, he gave cash and checks drawn on banks other than Wachovia, to an employee of Maintech and directed that employee to deposit the cash and checks into the employee’s personal bank account and pay a vendor of Maintech and certain start-up costs of Sentek, in order to facilitate the creation and operation of Sentek, while hiding Sentek’s existence from Wachovia.

Under the now-advisory Sentencing Guidelines, Spitko faces a likely sentence in the range of 46 to 71 months in prison. Sentencing is scheduled for July 31, 2008.

The case was investigated by the Federal Bureau of Investigation, Fort Washington Resident Agency, and has been assigned to Assistant United States Attorney Mary E. Crawley.