Insurance Fraud Oxford Tobacco Buyer

RALEIGH — An Oxford tobacco warehouse owner pleaded guilty in federal court Monday to a fraud insurance scam and could face up to five years in prison.

Keaton Rankin’s charges include conspiring to make false statement, making material false statement, committing mail and wire fraud, and structuring transactions.

http://liarcatchers.com/insurance_fraud.html

Rankin, from September 2006 to November 2007, conspired with others to defraud the Federal Crop Insurance Corporation, according to a Department of Justice news release. The government lost $400,000 in the deception.

In the scheme, co-conspiring farmers would obtain insurance policies for their crops, and then file false crop insurance claims. They hid their tobacco production by selling it in small volumes for cash or under fake names to evade reporting requirements.

Rankin, among others, paid in cash or in checks to false names to hide the sales, so the farmer would be paid for their crops twice: by buyers and the federal insurance company governed by the Department of Agriculture.

Farmers gave Rankin better prices when Rankin allowed them to pay cash, so he also benefited by earning more per pound of tobacco. He sold the crop to United Tobacco Company, and worked with an employee of Universal Leaf North America to conceal sales, the news release states.

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Missing Persons in Yakima County

YAKIMA, Wash. — A missing person’s case can leave a family in a nightmare of limbo, not knowing what happened and not getting any closure. It doesn’t happen often in Yakima County, but cases like Larry Riegel remain unsolved to this day.

He’s gone, but he’s everywhere. Albums, walls, and computer screens full of memories. Of a man CeCe Downey ranks above almost everyone.

http://liarcatchers.com/missing_persons_investigations.html

“I’ve lost two husbands and I’d rather lose 100 husbands than lose one son,” said Downey. “It’s the worst nightmare you can imagine.”

It’s been more than two years since her son, Larry Riegel, seemed to simply disappear. Larry’s family assumes he’s dead, but they’d still like to know what happened.

The Yakima County Sheriff’s Office and Yakima Police Department detectives see about 250 missing person’s cases each year. Most of those are solved quickly. One like Larry Riegel is rare.

“This is not something that happens all the time here in Yakima,” said Yakima Police Captain Rod Light. “There’s very few long standing cases out there that haven’t been resolved.”

But those few cases still leave families hoping for answers. KIMA learned the Yakima Sheriff’s office has six open missing person’s cases. The oldest dates back to 1978. The most recent involves Jesus Gus Rodriguez reported missing in 2005 after his car was found burned on Summitview Road.

The Yakima Police Department also has six open cases of its own, including Larry’s. Joseph John was the most recent open case. It closed when his body turned up in a Granger Canal.

Leaving moms like CeCe to wait on the one tip that will forever answer the toughest questions.

“You don’t know if they’re under that pile of straw, under that pile of manure, if they’re in the river,” said Downey. “Your looking all the time and you don’t know.”

OPEN MISSING PERSON’S CASES IN YAKIMA COUNTY

Yakima County Sheriff’s Office

– John D. Whitner, 48, was reported missing in January 1995 by family members who said they had not seen him for weeks.

– Roger M. Seawright, 34, of Toppenish was reported missing in July 1998 after he didn’t return from a store to get ice.

– Reyes S. Macias, 42, of Selah was reported missing in July 1999. Family members said they left their house briefly and that he was gone when they returned.

– David W. Door, 39, of Terrace Heights was reported missing in October 2001 after his empty boat was found floating in Lake Chelan.

– Linda M. Adams, 15, a chronic runaway, went missing from Pomona Road in Yakima in 1978, but her disappearance wasn’t reported until 2004, at the request of the Green River Task Force.

– Jesus Gus Rodriguez, 35, was reported missing after his burned car was found on Jan. 23, 2005, in an orchard on Summitview Road. His remains were not found in the car.

Yakima Police Department Cases

– Kathleen R. Paulson, 52, a transient, was reported missing by family in 2004.

– Sally Stromberg, 51, a transient, went missing some time in 2005.

– Gregory L. Holt, 58, lived on Fairbanks Avenue, reported missing in February 2008 by his landlord.

– Jose Ortega Jimenez, 26, worked as a laborer in Naches. Fellow workers reported that he ran from the work site in March 2008, and no one has seen him since.

– Juan L. Hernandez, 28, reported missing in July 2009 by family who said they had not heard from him for two months.

– Larry Riegel, 57, disappeared from his home the evening of Christmas Day 2009. He was supposed to have dinner that night with his family.

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Wrongful Death Kayla Ferrante

The mother of a recent murder victim reaches out to KRMG for help with tracking down the killer.

For Kayla Ferrante’s mother, it’s a tough day, almost as hard as the day her daughter was shot while riding in her boyfriend’s car two weeks ago.

Roxanne Thornton says, “She was supposed to start college today.”

Listen to Roxanne Thornton’s entire interview.

Kayla was only 17-years-old, but she graduated early after taking summer courses.

http://liarcatchers.com/wrongful_death.html

Her plan was to attend Tulsa Community College on her way to a career involving children with Asperger’s Syndrome.

Kayla was shot to death while on her way home.

She was in her boyfriend’s car.

Roxanne is struggling with the fact that the killer is still out there.

She tells KRMG, I want to know who. I want to know why. I want her back, but I can’t have that. But I at least need the peace.

Roxanne doesn’t believe Kayla was the target.

If you have any information on the case call Crime Stoppers at 918-596-COPS.

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Missing Person Located Injured in Corn Field

A man that has been missing since May 24 has been located alive in a corn field.

Tony Aldrich from Carlisle County in Kentucky went missing after he went into the woods near his home.

While in the woods, Tony ended up breaking his foot. He couldn’t walk so he spent the next ten days crawling through the corn fields trying to find help.

He survived by getting water from a creek and the cornstalks. He also used the cornstalks to cover himself up at night.

http://liarcatchers.com/missing_persons_investigations.html

Carlisle County Sheriff Steven Perry told WPSD-TV news in Paducah that Tony’s ordeal ended when he made it to a cornfield off Kentucky Highway 408 and a farmer heard him yelling.

Tony was taken to Vanderbilt’s medical center.

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Drug Dog Sweep 90 Grams of Cocained

On Friday, June 1, at approximately 6:30 a.m., Combined Anti-Drug Task Force (C.A.T. Team) Detective Sgt. Jeff Cole conducted a stop on a SUV for a traffic violation near the Lake Charles Loop on I-10.

The driver of the SUV, Vilma I. Guardado-Rivera, 28, and passenger Laba L. Guardado-Rivera, 25, both of Houston, Texas, who were accompanied by an 18-month old baby, told Sgt. Cole they were traveling from Houston to New Orleans.

http://liarcatchers.com/drugdogsweeps.html

During the traffic stop, both women began to act suspiciously. After receiving consent from the driver, Sgt. Cole conducted a search of the SUV and recovered over 90 grams of compressed cocaine, with an estimated street value of over $9,000, wrapped in cellophane and multiple layers of plastic gloves inside a coffee canister on the SUV’s backseat floorboard.

Following further investigation by detectives and assistance from the U.S. Border Patrol, it was discovered both women were in the country illegally.

Laba Guardado-Rivera was arrested and booked into the Calcasieu Correctional Center and charged with possession of CDS II (Cocaine 28-200 grams); possession of drug paraphernalia; and cruelty to a juvenile (presence of CDS). Judge Michael Canaday set her bond at $217,500. Vilma Guardado-Rivera was released to U.S. Border Patrol with charges pending.

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Missing Person Scott Burris

A former county prosecutor says he may have some clues into the disappearance of an Otter Tail County man.

Former prosecutor Earle “Bud” Myers and his dog Barnaby are helping in the search of 33 year old Scott Burris who has been missing for more than a week.

On Monday, Myers and Barnaby were called in to search for Scott Burris, an Ottertail, Minnesota man who’s been missing for a week.

http://liarcatchers.com/missing_persons_investigations.html

While searching the area around Burris’ abandoned van, Barnaby detected Burris’s trail.

“We ran the trail a second and a third time,” Myers said. “[He] always did exactly the same trail.”

The third time though, Barnaby sat down at the end of the trail meaning he lost Burris’ scent. It happened to end right near a road.

“We surmise that somebody had picked up Mr. Burris,” Myers said.

This new theory marks another twist in the Burris case. He was last seen in Fergus Falls on May 22nd.

His father, who talked with Fox News earlier this week, said he last spoke to his son the same day he was last seen.

However, finding Scott Burris trail has been difficult because the trail is nine days old.

In those nine days, Scott Burris’s scent could easily have disappeared or mixed in with other scents, which makes it remarkable that Barnaby even found a trail.

Despite finding a trail, Myers emphasizes that his theory on what happened to Burris is just a theory.

“It’s our best guesstimate really that he got in a vehicle and left the area,” Myers said.

Even with a talented bloodhound, the whereabouts of Scott Burris are still unknown.

Myers is a member of Valley Water Rescue, which assists in missing persons cases.

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Drug Dog Sweep Arizona Prisons

Orion Wilkins was a drug addict, hooked on painkillers he’d begun taking to fight the pain of an old high-school football injury.

In 2008, he used a wrapped block of Velveeta cheese, claiming it was a bomb, to rob several Valley pharmacies of pain pills to feed his addiction. He was convicted of armed robbery and sentenced to 101/2 years in prison.

Three years later, on Dec. 7, 2011, Wilkins, 35, died of a drug overdose inside the Arizona state prison in Florence.

http://liarcatchers.com/drugdogsweeps.html

The presence of illegal drugs inside what are supposed to be the most secure buildings in the state has led to the deaths of at least seven inmates from overdoses, all involving heroin, over the past two years. The state Department of Corrections classified the deaths as accidental.

The Arizona Republic investigated these deaths as part of a broader look at the high rates of suicide, homicide and accidental deaths in Arizona’s state prisons. The ability of inmates to get drugs and hypodermic needles while behind bars suggests that the Department of Corrections has its own drug problem: a porous security system that allows a steady flow of drugs to be smuggled into the state prison system by inmates, visitors and prison staff.

Department inspections in the year after three inmates escaped from the Arizona State Prison-Kingman in 2010 repeatedly revealed that officers at most prisons failed to properly search and screen staff and visitors. The department says it has improved security procedures.

Late last month, a multi-agency investigation, including Corrections, initiated by the Chandler Police Department, made 44 arrests and seized 32 pounds of heroin and 5 pounds of cocaine and uncovered a drug ring connected to a state prison.

A spokesman for the Arizona attorney general said one woman arrested had planned to take 10 ounces of heroin to the state prison’s Lewis Complex in Buckeye. A family with three brothers inside state prisons operated the ring and had smuggled heroin in several times before, she said.

The Atttorney General’s Office did not release details of how the drugs were smuggled in.

Corrections officials say that drugs, cellphones and other contraband can enter prisons via visitors, incoming mail, off-site inmate work crews and staff. Corrections director Charles Ryan noted an incident two years ago at the Lewis unit in which a corrections officer was caught bringing in burritos stuffed with two cellphones and a package of marijuana. But he says that inmate visitors are the biggest source of drugs.

“We have visitors who may secrete contraband in a body cavity, and then pass it to an inmate who will secrete it in his body cavity,” Ryan said. To combat that, he says, the department uses drug-detection and cellphone-detection dogs. “We also search visitors through a screening device where a fan blows across the visitor, the dog sits on other side of a wire-mesh fence, and the dog will alert if there is contraband,” Ryan said.

Whether smuggled in by visitors, as Ryan says, or staff, as inmates and some corrections officers allege, drugs continue to get through. Internal incident reports for 28 days in May obtained by The Republic show that every day, correctional officers find heroin, methamphetamine, marijuana and spice, along with syringes and contraband cellphones that inmates can use to communicate with drug suppliers on the outside. During cell searches, officers frequently catch inmates hurriedly flushing objects down their toilets.

Examples from the incident reports:

On May 6, an officer at the state prison’s Manzanita Unit in Tucson spotted a balloon, apparently filled with drugs, that fell out of the pants of an inmate who was being visited by his brother and sister. On the same day an inmate in solitary at the Eyman Complex in Florence was taken to Anthem Hospital with an apparent drug overdose.

On May 9, an assistant deputy warden at the state prison’s Cheyenne Unit in Yuma was caught bringing a cellphone into the prison in her lunch bag. Corrections officials have not responded to queries about this incident, which was not publicly disclosed.

On May 23, a Tucson city employee spotted someone tossing a package over a fence to an inmate work crew. Inside the package were four bubble-wrapped cellphones.

On May 26, in separate incidents at four prisons, corrections officers found two packets of drugs, two syringes, a cellphone and, at the Florence prison’s central unit, four gallons of alcohol in an inmate’s cell.

Three-quarters of arriving inmates have significant substance-abuse histories, according to Corrections records, yet only one in 13 received substance-abuse treatment last fiscal year. A spokesman for the department said inmates usually don’t receive treatment until they approach the end of their sentence.

The heroin-overdose death of Anthony Braun at the Lewis Complex on Nov. 14 has raised other questions about the problems of drugs in state prisons.

An anonymous May 1 e-mail to prisoner advocate Peg Plews alleged that two correctional officers assigned to Braun’s housing unit failed to do their security checks for at least four hours before inmates notified them Braun was having problems. The e-mail alleged one officer was asleep in the control room, and questioned whether Braun might have been saved if officers had done their jobs properly.

Corrections spokesman Bill Lamoreaux confirmed that one officer was dismissed, another resigned and a sergeant was demoted as a result of the incident, though he could not confirm whether it was for failing to conduct security checks. He said the case was referred to the Maricopa County attorney for possible charges against other inmates.

The mothers of two dead inmates blame the availability of drugs behind bars for the deaths of their sons.

Roberta Wilkins, the mother of Orion Wilkins, said her son became addicted to pain pills he started taking for back injuries from playing football. In an interview, she wept over his death but didn’t excuse his crime. “It doesn’t matter; he threatened and terrified people. We discussed his crimes and how stupid and idiotic they were.”

But she said he had seemed to be drug free and was gaining weight for several months before his death.

Cynthia Krakoff’s son, Carlo Krakoff, died of a heroin overdose in prison in Tucson on July 31, 2011. A former child actor who played the young Spock in “Star Trek III: The Search for Spock,” he became addicted to the pain medication Oxycontin after his jaw was damaged in a tonsillectomy, says his mother. As the addiction progressed, it changed him, she said.

“He was always so levelheaded and loving,” Cynthia said, especially toward his son, now four. “Then at a detox facility in Phoenix, they treated him with Methadone. He met some low-life people there, and all of sudden he was stoned all the time.”

Cynthia said she was shocked when Carlo was arrested in 2009 on suspicion of robbing several Phoenix-area pharmacies with a gun. But she was more shocked when he died 15 months into his 13-year sentence.

“Nobody ever told me he could die in prison of illegal drugs,” she said. “If they can’t clean up the prisons, they need to find a different way to treat the drug addicts.”

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Fraud Investigation Eastside Mortgage Fraud

Four people face 21 counts in an $8.7-million mortgage fraud scheme that involved more than 50 mortgages to fake people, according to a news release from the United States Attorney’s Office.

Three of the people who face the allegations worked at mortgage or escrow companies and one was a tax preparer, according to the U.S. Attorney’s Office.

The scheme defrauded more than 10 banks, financial institutions and mortgage lenders, and more than 50 mortgages were involved on properties, including ones in Redmond, Bellevue, Kirkland, Medina, Renton and south Seattle, the office said.

http://liarcatchers.com/fraud_investigation.html

Making their first appearances in U.S. District Court on Friday were Celia Perez Morales, 35, of Kirkland; Jonathan Mendoza Martinez, 34, of Bellevue; his sister, Jazmin Villalba Martinez, 30, of Seattle; and Jorge Castrejon Pichardo, 41, of Mountlake Terrace, according to the news release. They were arrested on Friday.

Three of the defendants worked at Emerald City Escrow and at Nationwide Home Mortgage and the fourth defendant worked at a tax preparation business.

According to the U.S. Attorney’s Office, between 2006 and 2008, the three that worked for mortgage or escrow companies allegedly created straw buyers to defraud banks and the one that worked in tax preparation allegedly provided some of the false documentation submitted with the loan applications.

The four face accusations of submitting false financial, employment and tax information to apply for residential mortgage loans, and falsely inflating the sale price of the properties.

After the lenders funded the loans, the straw buyers quickly defaulted on the mortgages, and the four allegedly kept the excess proceeds, according to the press release.

The victim banks included Washington Mutual (now JPM Chase), Bank of America, American Sterling Bank, ING Bank, IndyMac Bank, and Merrill Lynch & Co. Inc., among others. Documents in the scheme were submitted via mail and wire, according to the U.S. Attorney’s Office.

According to the news release from the office, the group is accused of borrowing 50 mortgage loans, representing approximately $22.4 million in loan proceeds, based on false and fraudulent representations, resulting in a loss to financial institutions and mortgage lenders totaling about $8.7 million.

Each count in the indictment is punishable by up to 30 years in prison and a $1 million fine.

The case is being investigated by the Internal Revenue Service Criminal Investigation, the U.S. Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Mike Lang and James Oesterle, according to the U.S. Department of Justice.

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Missing Persons Mother of Missing Boy Sues Step-Mom

The mother of Kyron Horman, a missing Portland, Ore., boy, filed a $10 million civil lawsuit Friday against Terri Horman, Kyron’s stepmother, in connection with the boy’s disappearance two years ago, NBC station KGW reported.

http://liarcatchers.com/missing_persons_investigations.html

Desiree Young’s lawyer, Eldon Rosenthal, said at a Friday news conference covered by KGW that the statute of limitations for filing a civil lawsuit in the case was two years. Monday, June 4, will be the two-year anniversary of Kyron Horman’s disappearance from Skyline Elementary School.

The lawsuit asks the court to compel Terri Horman to disclose Kyron’s location, KGW reported. It also includes two claims, one for custodial interference and one for intentional infliction of emotional distress.

Terri Horman’s attorney, Stephen Houze, told KGW he would not make any public statements regarding the suit until he has thoroughly reviewed the filing.

Desiree Young, the mother of Kyron Horman, stands on the steps of the Portland Justice Center on Friday after filing a $10 million civil lawsuit against Kyron’s stepmother.

Rosenthal said the lawsuit would enable him to subpoena witnesses, acquire documents and evidence and “peel away the mystery” of what happened to Kyron.

“My family and I are living through a nightmare that most families cannot even imagine,” Young said, tearfully reading a prepared statement. “My Kyron has always been my comfort and my joy. I will forever have a hole in my heart because he’s not here.”

Kyron Horman vanished after his stepmother left him at his Portland, Ore., elementary school.

“I haven’t been able to see my son, hug him, kiss him or tuck him into bed” in nearly two years, she said, according to KGW. “Not a day goes by that I don’t think of him.

Kyron disappeared two years ago from Skyline grade school, leading to the largest search effort ever conducted in Oregon.

Terri Horman was the last person to see Kyron alive, investigators said. Horman has retained a lawyer for nearly two years and has refused to talk with detectives, who told KGW that they are still pursuing the case.

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Cyber Investigations New Law Gives State AG More Power

Ohio is a center for cybercrime, yet state efforts to counter it are measured in kilobytes, not the gigabytes necessary to combat the problem.

Buckeye State residents reported 12,661 incidents of crimes involving the Internet last year, the fifth highest number of any state in the nation. Losses of $10.6 million were noted, and that figure probably is conservative.

http://liarcatchers.com/cyber_investigations.html

Yet the state attorney general is just now getting the same type of authority local prosecutors have to investigate cybercrime. A new law, going into effect Thursday, gives Attorney General Michael DeWine power to issue criminal subpoenas in cases involving online fraud, web-based scams and identity theft.

Until now, the attorney general’s authority over cybercrime involved only civil penalties, not the ability to bring criminal charges. The change is long overdue.

Another needed improvement is being proposed in the General Assembly. There, a bill requiring government agencies, businesses and organizations to report security breaches of their databases is about to be introduced.

Such invasions often net criminals lists of people with information such as birthdates, Social Security numbers and even bank account numbers that can make identity theft a breeze.

Yet, believe it or not, reporting such thefts of information apparently is a voluntary matter under current law.

Clearly, private organizations and businesses should not be required to disclose information that could be detrimental to their own financial affairs – or possibly even to their clients. But disclosing that crimes have taken place, possibly leading to more wrongdoing, should be mandatory.

Giving the attorney general more power and looking into the threat from breaches of computer databases are progress. Clearly, however, Ohio needs to do more to safeguard residents from cybercrime.

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