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5 April 2018
Former Rental Company Executive Sentenced to 2 Years in Prison for Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN N. MILNE, 58, of Westport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment for violating the conditions of his supervised release.
According to court documents and statements made in court, on March 11, 2010, MILNE was sentenced to 27 months of imprisonment, followed by three years of supervised release, for conspiring to falsify the books and records of United Rentals, Inc. while he served as its President and Chief Financial Officer. In a resolution of a separate civil action brought by the U.S. Securities and Exchange Commission, (SEC v. John N. Milne, 3:08CV505), MILNE agreed to disgorge $6.25 million. MILNE paid $1 million to the SEC prior to his sentencing in 2010. As part of his original sentence, in lieu of a restitution order, MILNE was ordered to pay the remaining $5.25 million to the SEC as a condition of his supervised release.
Since his release from prison in May 2012, MILNE has paid approximately $500,000 of the $5.25 million of disgorgement that was due. Chief Judge Hall found that, based on MILNE’s income and expenditures on luxury services, personal items and travel, he had the ability to pay much more. The Court had previously continued the hearing on multiple occasions to provide MILNE the opportunity to make additional disgorgement payments, but he repeatedly failed to do so. MILNE also violated his supervised release by traveling out of Connecticut without the permission of the U.S. Probation Office.
MILNE is citizen of Canada and a lawful permanent resident of the U.S.
This case was prosecuted by Assistant U.S. Attorney Michael S. McGarry with the assistance of the U.S. Securities and Exchange Commission.
Former Puerto Rico Police Officer Sentenced on Child Pornography ChargesRead the Press Release
SAN JUAN, P.R. – Yesterday, Gabriel Rodríguez-Pacheco, a former Puerto Rico Police Officer was sentenced to 21.8 years in prison for production of child pornography and for possession of child pornography involving a prepubescent minor, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On August 8, 2017, after a three-day trial, Rodríguez-Pacheco was convicted of 16 counts for separately using three minor females to produce sexually explicit images and videos, and of one count for possessing sexually explicit images of a prepubescent minor, younger than 12 years of age, presumably downloaded from the internet.
During trial, the evidence showed that the Rodríguez-Pacheco requested sexually explicit images from one minor he met online. He took photos of himself having sex with a second minor he met in a fast food restaurant while on duty wearing his police uniform. He also took photos of himself having sex with yet another third minor he knew personally through his family. In each case, he stored the images and videos on his personal computer as part of a collection of images and videos of women with whom he had sex. These images and videos of the minors were Rodríguez-Pacheco’s "trophies" of his many sexual exploits.
"The U.S. Department of Justice, through its Project Safe Childhood, will continue prosecuting sexual predators of minors, especially those in positions of public trust," said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. "Children are the most vulnerable and innocent victims in our society; they deserve every measure of protection we can give them. The public should be reminded to report all inappropriate behavior with children to their local authorities and together, local and federal law enforcement, will see that justice is carried out."
"ICE will not tolerate the exploitation of the most vulnerable members of our society and will continue working with our partners in the Puerto Rico Crimes Against Children Task Force to investigate those who exploit our children and deprive them of their innocence," said Orlando Baez, acting special agent in charge of HSI San Juan. "This case is particularly alarming as the defendant held a position of trust as a Puerto Rico Police Department police officer even though he had been suspended at the time of his arrest in March 2015. Make no mistake, HSI will continue to investigate and apprehend those who exploit our children, especially those who betray the trust placed in them by committing these despicable acts."
The case was prosecuted by Assistant U.S. Attorney Marshal D. Morgan, Coordinator of the Project Safe Childhood initiative. The case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Owner of Indoor Soccer Team Indicted for Massive Tax FraudRead the Press Release
A former Seattle college soccer star, currently jailed on sexual assault charges in Arizona, was indicted April 4, 2018, by a federal grand jury for a massive tax fraud scheme, announced U.S. Attorney Annette L. Hayes. During the course of the scheme, 46-year old DION L. EARL purchased the Seattle Impact FC franchise, a professional indoor soccer club. The indictment alleges that between 2008 and 2014, EARL used false documents to lie about his income, the amount of tax dollars withheld by employers, and his mortgage deductions, so that he could claim tax refunds of more than $1.1 million. Because EARL currently faces sexual assault charges in Arizona, his arraignment on the indictment has not been scheduled.
In the 1990’s EARL was a soccer star at Seattle Pacific University. According to the indictment, between 2008 and 2014 EARL claimed to be making huge salaries working for car dealers in the Puget Sound region, and as the owner/operator of Dion Earl’s Total Soccer & Tennis Camps, LLC, d/b/a Total Business Ventures. For example, the indictment alleges that in 2012, EARL claimed on his 2011 Form 1040 tax return that he made $880,000 working for five different car dealers. EARL claimed the dealers withheld more than $330,000 of his wages for taxes. EARL then falsely claimed mortgage interest payments on four different properties, reducing his ‘tax liability.’ With the scheme, EARL obtained a tax refund of $329,198. In fact, EARL made less than $80,000 that year, had no tax payments withheld, and paid limited mortgage interest.
The Indictment further alleges that even after the IRS began a civil audit on EARL, he continued to make false claims and provided false information to the IRS. As late as 2015, EARL claimed he and his wife made $765,000 from Dion Earl’s Total Soccer & Tennis Camps, LLC, d/b/a Total Business Ventures, and the Seattle Impact FC. EARL claimed $180,000 was withheld and attempted to get a tax refund of $137,554. That refund was not paid. In all EARL sought $1.6 million in fraudulent tax refunds, and was paid approximately $1.1 million.
EARL is also charged in connection with false income information he submitted to Key Bank in 2008 to qualify for a home equity line of credit.
The five-count indictment charges EARL with three counts of false statement on tax returns, corrupt endeavor to impede administration of the Internal Revenue laws, and false statement on a loan application.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
If convicted EARL faces up to ten years in prison.
The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorney Arlen Storm.
earl_indictment_0.pdfFormer Liberty University Student and Raleigh Native Sentenced to 26 Years for the Manufacture of Child PornographyRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced JUSTIN COLE MILAM, 22, from Raleigh to 312 months in prison, a lifetime of supervision upon release and a $4,000.00 fine for the Manufacture of Child Pornography (CP). MILAM pled guilty to the charge on October 12, 2017.
In June 2015, Google, Inc. (Google) reported a violation related to child pornography (CP) to the National Center for Missing and Exploited Children (NCMEC). Google identified an email account, which was responsible for the upload of at least one video file depicting CP. The email account was identified as belonging to a registered sex offender, residing in Carpinteria, California. A search of his residence uncovered a smartphone which contained approximately 1,500 images and videos of CP. He acknowledged using the smartphone to access the aforementioned email account. Moreover, he acknowledged using the smartphone to store and distribute CP.
Forensic examination of the device revealed that he used, a mobile instant messenger application which utilizes an internet connection to transmit and receive messages, photos, videos, and other content transmitted through the program. The service also allows users to register for a user account without providing a telephone number and prevents users from being located on the service through any information other than their chosen user name. The examination uncovered evidence that the convicted sex offender utilized his account to exchange CP with other users. One such account was identified as belonging to MILAM. The examination further revealed that 77 messages were exchanged between the convicted sex offender and MILAM. Further analysis of the IP connectivity logs revealed that MILAM logged into his account on multiple dates and times from different IP addresses. One of the login IP addresses was identified as being directly associated with Liberty University (LU) in Lynchburg, Virginia. Continued investigation confirmed that MILAM was enrolled as a student in Liberty University during the timeframe of the offense established during the investigation.
Based on the investigation, the Federal Bureau of Investigation (FBI) in Raleigh, North Carolina, executed a search of MILAM’s residence on January 12, 2017. At the time of the search, MILAM provided an unprotected statement to authorities acknowledging that the email address used to exchange CP was his. Additionally, MILAM acknowledged he began trading CP approximately two years earlier. MILAM collected CP over time and periodically deleted his collection only to begin recollecting CP again. After locating a user account of others wishing to trade CP, MILAM initiated a conversation with the user prior to trading CP. MILAM acknowledged having images of CP on his smartphone to include images of toddlers being sexually abused. MILAM’s smartphone was seized and a preliminary on-site examination revealed evidence of CP which had been saved on an external hard drive. The external hard drive was found in MILAM’s bedroom and also revealed images of CP.
Forensic examination of the item uncovered approximately 986 images and 117 videos of CP. Several of the images portrayed sadistic or masochistic conduct or other depictions of violence. Additionally, approximately 69 images and 1 video depicted the sexual abuse of infants/toddlers.
As the investigation progressed, agents recovered numerous chat conversations between MILAM and other users in which CP was exchanged and the sexual abuse of children discussed. More than 130 user accounts were identified as receiving or sharing CP with MILAM. Of the 130 accounts discovered, 51 of the users were identified as being located in the United States. The investigation uncovered multiple pornographic images of minors sent directly to MILAM at his request. During multiple chat conversations with minors, MILAM requested they create and send pornographic images of themselves performing sexual acts. As the investigation progressed, agents identified 10 minors who forwarded MILAM pornographic images and/or videos of themselves at the request of MILAM.
Based on the investigation, MILAM used an internet messenger service to request multiple minors between the ages of 13 and 17 to create and distribute CP. At his request, at least 10 identified minors forwarded pornographic images of themselves to MILAM. In return, MILAM knowingly distributed CP to the minors. As such, MILAM used a computer or an interactive service to persuade, induce, and entice a minor to engage in sexually explicit conduct. Because MILAM engaged in a pattern of activity involving prohibited sexual conduct, the production of CP, on at least two or more occasions with multiple minors, he is classified as a repeat and dangerous sex offender against minors.
Mr. Higdon commented: “Today the Court imposed a 26 year sentence on a defendant who preyed upon numerous of our most vulnerable citizens. Through the manufacture and collection and distribution of child pornography the defendant victimized our children in the most degrading and base way. The sentence imposed by the court is extremely appropriate and should be a warning to others who would threaten our children in this way. We will seek sentences like this and other cases in our unwavering effort to stop this type of behavior and to protect our children. I want to thank the investigators with the FBI and with the Raleigh Police Department for their outstanding work.”
The case was investigated by Federal Bureau of Investigation and the Raleigh Police Department. The federal prosecution was handled by Assistant United States Attorney Ethan A. Ontjes.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Former Lake Oswego Financial Advisor Accused of Defrauding InvestorsRead the Press Release
PORTLAND, Ore. – Shayne Kniss, 42, formerly of Lake Oswego, Oregon, was charged today in federal court with defrauding clients of his investment firm, Iris Capital Management.
The criminal information alleges that Kniss offered clients, many of whom were 65 or older, four investment funds composed of residential properties in the greater Portland area that would be rehabilitated, upgraded and resold at a substantial profit. Between February 2011 and April 2013, 47 people invested over $4.3 million in the funds. The information alleges Kniss commingled investor money among the funds, used new investments to make payments to prior investors, and used more than $500,000 of investor funds for personal use, including investing in a retail marijuana enterprise.
Kniss will make his first appearance before a U.S. Magistrate Judge in Portland where a plea will be entered and a trial date set.
A criminal charge is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI and is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
Former City of Atlanta official indicted on federal bribery, money laundering, obstruction and tax fraud chargesRead the Press Release
ATLANTA - Mitzi Bickers has been arraigned on 11 federal charges including conspiring to commit bribery, wire fraud, money-laundering, federal obstruction and tax fraud. Bickers was indicted by a federal grand jury on March 27, 2018.
“City of Atlanta contracts always should go to the most qualified bidder through a contracting process that is fair and transparent,” said U.S. Attorney Byung J. “BJay” Pak. “Instead, Mitzi Bickers allegedly conspired to use her influence as a high-ranking City of Atlanta official and later as a connected political consultant to steer lucrative city contracts to Elvin R. Mitchell, Jr., Charles P. Richards, Jr., and their companies through bribery. The illicit arrangement netted over $2 million in bribes for Bickers and almost $17 million in city contracts for Mitchell and Richards, and has shaken the public’s trust in the city’s contracting process.”
“The actions of Bickers, alleged in this indictment, traded the public’s trust in a fair bidding process for personal gain,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI and its partners in law enforcement will not tolerate those who choose to try to influence established and proper government procedures.”
“Public officials need to be reminded of the trust and duty bestowed upon them by the taxpayers to serve the public’s interest not their own,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation. “When public officials and those seeking to do business with them break this trust by committing fraud, they will be charged to the fullest extent of the law.”
According to U.S. Attorney Pak, the charges, and other information presented in court: As the City of Atlanta’s Director of Human Services and after leaving employment with the city, Bickers allegedly conspired with contractors Elvin R. Mitchell, Jr. and Charles P. Richards, Jr. to accept bribe payments for herself and other public officials in exchange for the her agreement to obtain city contracts for Mitchell’s and Richards’ companies. Both Mitchell and Richards have pleaded guilty to paying bribes to Bickers and are currently serving federal prison sentences for their crimes.
In 2009, Bickers worked on the mayoral campaign and began working for the City of Atlanta after the election. From February 2010 to May 22, 2013, Bickers served as the City of Atlanta’s Director of Human Services. Beginning in 2010, Mitchell and Richards agreed to pay bribes to Bickers to secure profitable City of Atlanta contracts for their businesses. At times, the bribe payments allegedly were referred to as “up-front money.” In reality, Mitchell and Richards often paid Bickers when their companies actually received City of Atlanta contract work.
In exchange for the bribe payments, Bickers promised to represent Mitchell, Richards and their companies on matters relating to City of Atlanta contracting, even though she was a high-level city employee at the time. Bickers also allegedly provided Mitchell and Richards with sensitive contracting information during the critical time when they were bidding on city contracts. Between 2010 and 2013, Mitchell’s and Richard’s companies received multi-million dollar contracts with the city for snow removal, sidewalk repair and maintenance, and bridge reconstruction.
In effort to conceal her relationship with Mitchell and Richards, Bickers allegedly filed numerous false City of Atlanta Financial Disclosure Forms. For example, in 2011, Bickers swore under penalty of perjury that she had no financial relationships with any outside businesses, even though Mitchell’s and Richards’ companies paid her over $650,000 in that year. She used much of this money to purchase a $775,000 lakefront home in Jonesboro, Georgia, making a down payment of over a half million dollars. In that same year, Bickers also allegedly claimed on her taxes that she made only $57,896 as a city employee, resulting in a $3,924 tax refund from the IRS.
In 2013, Bickers’ financial ties to the Pirouette Companies came to light and Bickers resigned her position with the City of Atlanta. After her resignation, Bickers, Mitchell, and Richards allegedly continued the bribery scheme. For example, Bickers helped Mitchell secure a multi-million dollar contract for snow and debris removal work after a snowstorm locked down Atlanta in 2014. In turn, Mitchell paid Bickers and companies associated with her hundreds of thousands of dollars in bribes. Bickers spent the proceeds of the bribery at stores like Gucci and on expensive vacations, home renovations, four Yamaha WaveRunners, a sports utility vehicle and an ATV. Bickers is also charged with money laundering for purchasing an SUV and four WaveRunners with bribery proceeds from an account held by the Bickers Group, which was her political consulting company.
Ultimately, between 2010 and 2015, Mitchell and Richards allegedly paid Bickers and companies associated with her over $2 million in an attempt get City of Atlanta contracts through bribery. In this same period, the City of Atlanta paid Mitchell’s and Richards’ businesses approximately $17 million for the government contracts they secured.
In September 2015, Mitchell began cooperating with FBI’s investigation into corruption at City Hall. On September 11, 2015 at approximately 5:30 a.m., Shandarrick Barnes threw a concrete block reading “ER, keep your mouth shut!” through a plate glass window in Mitchell’s home. Bickers is alleged to have played a role in this attempt to obstruct the federal investigation. Barnes will be sentenced by District Court Judge Steven C. Jones on April 9, 2018.
Mitzi Bickers, 51, of Atlanta, Georgia, was arraigned today before U.S. Magistrate Judge Russell G. Vineyard. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI and Internal Revenue Service Criminal Investigation.
First Assistant U.S. Attorney Kurt R. Erskine and Assistant U.S. Attorney Jeffrey W. Davis are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Bickers IndictmentFormer Buncombe County Manager and Her Son Indicted on Federal ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney R. Andrew Murray announced today that the former Buncombe County Manager, Wanda Skillington Greene, 66, and her son, Michael Gene Greene, 47, both of Arden, N.C., are facing federal charges related to the misuse of public funds. A criminal bill of indictment charges Wanda Greene and Michael Greene with conspiracy to embezzle, steal, obtain by fraud or misapply Buncombe County funds and wire fraud offenses. Wanda Greene is also charged with embezzling public funds and aiding and abetting such embezzlement.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney Murray in making today’s announcement.
According to the indictment, Wanda Greene was appointed as County Manager for Buncombe County (the County) in 1997, and remained in that position until her retirement in June 2017. Michael Greene began his employment with Buncombe County in 2004, until he resigned in August 2017.
As County Manager, Wanda Greene was responsible for the administration of all departments of the County’s government under the control of the Board of Commissioners (the Board). In that role, Wanda Greene had the power to appoint, suspend, and remove all county officers, employees, and agents, and was responsible for directing and supervising the administration of all county offices, departments, boards, commissions and agencies controlled by the Board. As part of her duties, Wanda Greene was also required to prepare and submit the County’s annual budget and capital program to the Board, and to submit annually to the Board, and make available to the public, a complete report of the finances and administrative activities of the county at the end of the fiscal year.
According to allegations contained in the indictment, from about 2007 to August 12, 2017, Wanda Greene and Michael Greene carried out a conspiracy to embezzle public funds, by misusing their government credit cards, also known as PCards, issued to them by Buncombe County, and by using the PCards of other County employees, to make approximately $200,000 worth of improper purchases.
The indictment alleges that, on multiple occasions during the relevant time period, Wanda Greene improperly used her government issued PCards to purchase multiple gift cards totaling $21,760 from various retailers and restaurants, including Walmart, Target, Olive Garden, and Cracker Barrel. For example, on or about December 6, 2007, Wanda Greene used two different PCards to purchase 10 separate $500 Walmart gift cards totaling $5,000. The indictment alleges that Wanda Greene split the purchase of the gift cards onto two different PCards, to avoid exceeding the County’s policy spending limit of $5,000. Wanda Greene then used the gift cards to buy items for herself and others, including groceries, personal hygiene products, clothing, wine and make-up. Wanda Greene gave some of the gift cards to other individuals who also used them to make improper purchases.
In addition to using the County’s credit cards to purchase gift cards, Wanda Greene also made personal purchases on her PCard at various retail stores, including purchases totaling $18,256 at Best Buy, $10,718 at Target, and $6,479.03 at TJ Maxx, among others. Furthermore, the indictment alleges that Wanda Greene used her PCard to pay a total of $15,308 for electronic devices and for service from telecommunications carriers that were personal use items and services.
According to the indictment, in 2011, Wanda Greene ceased using any County credit cards issued to her, and informed a Buncombe County employee that she was returning the PCards because the records of her use of those cards could be subject to disclosure under North Carolina law. From that time forward, Wanda Greene allegedly used PCards assigned to subordinate county employees, or directed the subordinate employees to use their PCards to make improper purchases for her, Michael Greene, and other individuals. According to the indictment, Wanda Greene misused the employees’ PCard information to purchase $75,400 in gift cards; to pay for personal use wireless services and wireless devices, with a total cost of $24,160; and to pay for more than $18,257 in goods and services at various retail stores.
To obtain the PCard holders’ credit card information, Wanda Greene required Buncombe County employees to provide her with a photocopy of the front and back of their PCards, which she then used to make the improper purchases. According to the indictment, Michael Greene also possessed such a photocopy until it was recovered in his County office.
The indictment alleges that, in addition to participating in the misuse of Wanda Greene’s PCards and those of her subordinate employees, Michael Greene used his County PCard to pay for food, wireless services, and goods totaling more $9,100. Michael Greene’s PCard privileges were revoked in January 2009 following an audit.
Wanda Greene and Michael Greene have been ordered to appear on a summons. The conspiracy charge carries a maximum prison terms of five years and a $250,000 fine, the federal program fraud charges carry a maximum prison term of 10 years per count and a $250,000 fine, and the wire fraud charges carry a maximum penalty of 20 years in prison per count and a $250,000 fine.
In making today’s announcement U.S. Attorney Murray thanked the FBI, IRS-CI and the SBI for their investigation of this case, and noted that the investigation into allegations of criminal activities within the Buncombe County Government is ongoing.
Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Former Atlantic County Prosecutor’s Office Detective Sentenced to 18 Months in Prison for Mortgage Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, woman who admitted her role in a more than $200,000 mortgage fraud conspiracy involving a property she purchased in Mays Landing, New Jersey, was sentenced today to 18 months in prison, U.S. Attorney Craig Carpenito announced.
Betsy Borges, 38, of Mays Landing, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging her with one count of conspiracy to commit bank fraud. Judge Simandle imposed the sentence today in Camden federal court.
Borges was originally charged by complaint in May 2017 with Iraida Fuentes, 35, of Pleasantville, New Jersey.
According to documents filed in this case and statements made in court:
In December 2002, Borges purchased a property in Mays Landing. Despite failing to make mortgage payments to Wachovia and its successor, Wells Fargo, Borges collected rental income from tenants living in the property and concealed that income from the banks. Borges also falsely represented to Wells Fargo, on multiple occasions, that she could not make the mortgage payments for the property.
Borges subsequently arranged with Wells Fargo for Fuentez to purchase the property through a short sale. Not only did Borges and Fuentez conceal their familial relationship from Wells Fargo, they also concealed the fact that Borges and another conspirator provided Fuentez the funds to purchase the property.
On Sept. 20, 2012, Fuentez purchased the property at a price well below its actual value. On Nov. 22, 2016, B&B Properties – a company owned in part by Borges – purchased the property from Fuentez for $25,000. On Feb. 3, 2017, Borges then individually purchased the property from B&B Properties for one dollar.
In addition to the prison term, Judge Simandle sentenced Borges to three years of supervised release and ordered her to pay restitution of $206,405.
Fuentes pleaded guilty on Nov. 6, 2017 and was sentenced Feb. 9, 2018 to two years of probation.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.Defense counsel: Louis M. Barbone Esq., Atlantic City, New Jersey.
Federal Jury Convicts Minister of Tax CrimesRead the Press Release
CHARLOTTE, N.C. – A federal jury has convicted a former Charlotte-area minister, William Todd Coontz, 51, of Fort Lauderdale, Florida, of failure to pay taxes and aiding and assisting in the filing of false tax returns, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI).
According to filed court documents and evidence presented at trial, from 2010 to 2014, Coontz was the minister of Rock Wealth International Ministries (Rockwealth Ministries), and the author of numerous books on faith and finances, such as “Please Don’t Repo My Car,” and “Breaking the Spirit of Debt.” Coontz also operated two for-profit companies, Legacy Media and Coontz Investments and Insurance.
Beginning in at least tax year 2000 and continuing through at least tax year 2014, Coontz filed delinquent U.S. Federal Income Tax Returns, Forms 1040, with the IRS and consistently failed to make timely payments on the taxes he owed, despite receiving multiple letters and late notices from the IRS. For example, for tax years 2011 through 2013, Coontz filed late tax returns and did not pay the total assessed taxes, resulting in total tax liabilities of more than $326,394 for those years.
Trial evidence established that Coontz also filed false federal income tax returns for tax years 2010 through 2013, which underreported his income. Specifically, Coontz engaged in a check cashing scheme, involving payments for travel reimbursements for speaking engagements and the sale of books and other products. For example, during 2010 through 2013, Coontz regularly traveled to speak at various ministries, for which he was paid speaking fees and was reimbursed for his travel expenses. Coontz hid income from the IRS by claiming the travel as a business expense while simultaneously receiving travel reimbursement that he kept as personal income. In order to conceal the payments, Coontz directed, or caused his travel assistant to direct, the ministries to make reimbursement checks for travel expenses directly payable to “Todd Coontz,” and to send the checks to his personal address, rather than to Rockwealth Ministries – the entity that paid for his travel. Coontz then cashed these checks rather than deposit them into a bank account.
Also, in order to boost his income, Coontz told his travel assistant to bill the churches for the cost of a full fare first-class ticket, even though his actual expenses for those tickets was substantially less than the amount billed. Fraudulent travel invoices were created and submitted to the ministries that falsely purported that Coontz had actually paid the full fare ticket price. As a result, the travel reimbursement checks sent directly to Coontz were for amounts in excess of the actual travel expenses incurred by Rockwealth Ministry.
According to trial evidence and other court records, during 2010 through 2013, Coontz also directed that other checks, such as payments for speeches and for the purchase of books and other products, be made payable to “Todd Coontz” and sent to his personal address. In total, Coontz concealed and cashed at least 102 checks for travel reimbursements, speeches, and books and other products, totaling at least $252,037.99 for the relevant time period, causing his total income for the relevant tax years to be underreported on his federal income tax returns. During 2014, Coontz continued to conceal and cash checks received as payments, cashing at least 32 checks totaling $105,454.90 which were not reflected in his accounting records.
Coontz also underreported his income on his tax returns for tax years 2010 through 2013, by failing to include as income payments made by his corporations and ministry for his personal expenses, including payments for the benefit of his family members, and for meals and entertainment. Contrary to the advice of his Certified Public Accountant about comingling personal and business funds, Coontz spent substantial amounts of business funds to pay for personal expenditures, which were falsely classified as business expenses. These purported business expenses included payments totaling more than $227,700 for clothing purchases, and over $140,000 to pay for meals and entertainment expenses at various restaurants, including more than 400 distinct charges at movie theaters.
In addition, instead of holding assets in his own name, Coontz utilized residences and luxury vehicles titled in the names of companies he owned and controlled. For example, luxury vehicles purchased by Legacy Media, Coontz Investments and Insurance, and Rockwealth Ministries during 2011 through 2013 included three BMWs, two Ferraris, a Maserati, and a Land Rover, and a Regal 2500 boat, among others. Coontz treated payments for those items as business expenses, even though some of them were used by family members and there were no records kept about their supposed business use. Additionally, in 2012, Rockwealth Ministries purchased a $1.5 million condominium as a parsonage for Coontz.
Coontz has been released on bond. The failure to pay tax charge carries a maximum prison term of one year and a $100,000 fine, per count. The aiding and assisting in the filing of false tax returns charge carries a maximum prison term of three years and a $250,000 fine, per count.
The investigation was led by IRS-CI. Assistant U.S. Attorneys Jenny G. Sugar and Dallas Kaplan, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney R. Trent Shores announced today the results of the April 2018 Federal Grand Jury.
This substantial group of indictments represents a wide range of federal offenses, including complex white collar, immigration, and large-scale drug trafficking crimes. Several Project Safe Neighborhood cases involving violent crimes and firearms violations appear prominently also. “These indictments reflect the hard work of the dedicated federal prosecutors and support staff of the United States Attorney’s Office who are tirelessly committed to enforcing federal law and protecting the public whom they serve,” said United States Attorney Shores.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Juan Luis Atayde. Possession With Intent to Distribute Methamphetamine. Atayde, 24, of Stockton, California, is charged with possessing with the intent to distribute methamphetamine. If convicted, he faces a maximum penalty of life in prison and a $10,000,000 fine. The Drug Enforcement Administration is the investigative agency.
Luis German Beltran-Quintero. Reentry of Removed Alien. Beltran-Quintero, 32, of Tulsa, is charged with having returned to the United States unlawfully after being deported in June 2013 from Del Rio, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa Police Department are the investigative agencies.
Justin Lee Boyer. Sexual Exploitation of a Child; Enticement of a Minor; Receipt of Child Pornography; Possession of Child Pornography. Boyer, 31, of Sapulpa, is charged with exploiting and enticing a minor to engage in sexually explicit conduct for the purpose of producing graphic image files and video files, and receiving sexually explicit images of minors engaging in sexually explicit conduct from the internet by computer and cellular telephone.
If convicted, he faces a maximum penalty of 50 years in prison and a $250,000 fine for the Sexual Exploitation of a Child charge; a maximum penalty of life in prison and a $250,000 fine for the Enticement of a Minor charge; a maximum penalty of 40 years in prison and a $250,000 fine for the Receipt of Child Pornography charge; and a maximum penalty of 20 years in prison and a $250,000 fine for the Possession of Child Pornography charge. In addition, he would forfeit any visual depictions produced or received and any real or personal property used to commit the crimes. The Federal Bureau of Investigation, the Sapulpa Police Department, the Jefferson County Sheriff’s Office and the Creek County Sheriff’s Office are the investigative agencies.
Tracy Allen Crawford. Obstruct, Delay, and Affect Commerce by Robbery; Carry, Use, and Brandish a Firearm During and in Relation to a Crime of Violence; Felon in Possession of a Firearm. Crawford, 32, of Tulsa, is charged with robbing Burger King, No. 1 Kitchen, Family Dollar, and Cash America Pawn by waving a handgun as a means of threatened force, violence, and fear of injury, after a prior felony conviction. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine for the Obstruct, Delay, and Affect Commerce by Robbery charges; a maximum penalty of life in prison and a $250,000 fine for the Carry, Use, and Brandish a Firearm During and in Relation to a Crime of Violence charges; and a maximum penalty of 10 years in prison and a $250,000 fine for the Felon in Possession of a Firearm charges. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Logan Philip Davis. Felon in Possession of Firearm. Davis, 29, of Claremore, is charged with possessing a firearm after prior felony convictions. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Larry O. Douglas, Jr. Tampering With a Witness, Victim, and Informant by Physical Force and Threats of Physical Force; Tampering With a Witness, Victim, and Informant by Intimidation, Threats, and Corrupt Persuasion, and Misleading Conduct. Douglas, 44, address unknown, is charged with physically beating a victim, and for providing the victim with support, affection and material goods in order to persuade against and prevent her from communicating to law enforcement of his commission of a Federal offense. If convicted, he faces a maximum penalty of life in prison and a $250,000 fine for the Tampering With a Witness, Victim, and Informant by Physical Force and Threats of Physical Force charge, and a maximum penalty of 20 years in prison and a $250,000 fine for the Tampering With a Witness, Victim, and Informant by Intimidation, Threats, and Corrupt Persuasion, and Misleading Conduct charge. The Federal Bureau of Investigation and Tulsa Police Department are the investigative agencies.
Thadeus Michael Horn. Felon in Possession of Firearms. Horn, 37, of Pawhuska, is charged with possessing firearms after prior felony convictions. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Osage County Sheriff’s Office are the investigative agencies.
Tyrone Lee. Obstruct, Delay, and Affect Commerce by Robbery; Use and Discharge of a Firearm During and in Relation to a Crime of Violence; Possession of an Unregistered Firearm; Felon in Possession of a Firearm. Lee, 36, of Tulsa, is charged with robbing Forest Acres Liquor Store, discharging a shotgun in relation to the robbery, and possessing a firearm after prior felony convictions. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine for the Obstruct, Delay, and Affect Commerce by Robbery charge; a maximum penalty of life in prison and a $250,000 fine for the Use and Discharge of a Firearm During and in Relation to a Crime of Violence charge; a maximum penalty of 10 years in prison and a $250,000 fine for the Possession of an Unregistered Firearm charge; and a maximum penalty of 10 years in prison and a $250,00 fine for the Felon in Possession of a Firearm charge. In addition, he would forfeit the firearm and ammunition involved in the offense. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Jerry Lee Manus. Possession of Methamphetamine With Intent to Distribute. Manus, 43, of Tulsa, is charged with possessing with the intent to distribute methamphetamine. If convicted, he faces a maximum penalty of 20 years in prison and a $1,000,000 fine. The Drug Enforcement Administration, the Tulsa Police Department, the Texas State Police Department and the Oklahoma Highway Patrol are the investigative agencies.
Elijah Kai Marler. Possession of Cocaine With the Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Felon in Possession of Firearm and Ammunition. Marler, 23, of Tulsa, is charged with possessing with the intent to distribute cocaine, possessing a pistol in furtherance of a drug trafficking crime, and possessing a firearm after prior felony convictions. If convicted, he faces a maximum penalty of 20 years in prison and a $1,000,000 fine for the Possession of Cocaine With the Intent to Distribute charge; a maximum penalty of life in prison and a $250,00 fine for the Possession of a Firearm in Furtherance of a Drug Trafficking Crime charge; and a maximum penalty of 10 years in prison and a $250,000 fine for the Felon in Possession of Firearm and Ammunition charge. In addition, he would forfeit the firearm and ammunition involved in the offense. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Gerardo Regalado-Cuevas. Reentry of Removed Alien. Regalado-Cuevas, 52, of Tulsa, is charged with having returned to the United States unlawfully after being deported in November 1997 from Laredo, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa Police Department are the investigative agencies.
Harvey Joseph Stephens, Jr. Bank Fraud; Tax Evasion. Stephens, 48, address unknown, is charged with obtaining approximately $67,000 by defrauding Arvest Bank, Task Force Staffing, LLC, and Sagebrush Pipeline by creating fictitious employees, forging endorsements and cashing 78 checks. He is also charged with failing to file income tax returns that would have reported the stolen funds and failing to pay income taxes of $6,000 for 2012 and $19,000 for 2013. If convicted, he faces a maximum penalty of 30 years in prison and a $1,000,000 fine for the Bank Fraud charge, and a maximum penalty of 5 years in prison and a $100,000 fine for the Tax Evasion charges. In addition, he would forfeit any property derived from proceeds obtained as a result of the bank fraud offense. The Internal Revenue Service/Criminal Investigation and the United States Secret Service are the investigative agencies.
Curtis Dewayne Townsend. Felon in Possession of Firearm and Ammunition. Townsend, 50, of Okmulgee, is charged with possessing a firearm and ammunition after prior felony convictions. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Drug Enforcement Administration, the Texas State Police Department and the Oklahoma Highway Patrol are the investigative agencies.
Rosendo Valdovinos-Garcia, Ady Yesinia Oscal, Jennifer Barraza-Garcia. Drug Conspiracy. Valdovinos-Garcia, 28, of Bakersfield, California, Oscal, 27, of Los Angeles, California, and Barraza-Garcia, 26, of Norte Costa Rica, are charged with conspiracy to possess with intent to distribute 500 grams or more of methamphetamine. If convicted, they face a maximum penalty of life in prison and a $10,000,000 fine. The Drug Enforcement Administration, the Texas State Police Department and the Oklahoma Highway Patrol are the investigative agencies.
Kong Meng Vang. Drug Conspiracy; Possession With Intent to Distribute Marijuana. Vang, 34, of Tulsa, is charged with conspiracy to possess with intent to distribute and possessing with intent to distribute 100 kilograms or more of marijuana. If convicted, he faces a maximum penalty of 40 years in prison and a $5,000,000 fine. In addition, he would forfeit any property derived from proceeds obtained as a result of the conspiracy. The Drug Enforcement Administration, the Internal Revenue Service and the Tulsa Police Department are the investigative agencies.
Erick Viveros. Alien Unlawfully in the United States in Possession of Firearms and Ammunition. Viveros, 36, of Tulsa, an alien illegally in the United States, is charged with possessing firearms and ammunition. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Immigration and Customs Enforcement, the Oklahoma Highway Patrol and the Washington County Sheriff’s Office are the investigative agencies.
Etowah County Man Convicted for Drug Trafficking CrimesRead the Press Release
BIRMINGHAM- Today a federal jury convicted an Etowah County man for drug trafficking crimes, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
JEFFREY MORRIS BEAM, JR., 37, of Gadsden, Alabama was charged in a multi-count indictment with eight other defendants for Conspiracy to Possess and Distribute Methamphetamine. The jury found Beam guilty for his role in the conspiracy that started in 2014 and ended in April 2016. He was also convicted for distributing more than 50 grams of methamphetamine and possessing with the intent to distribute more than 5 grams of methamphetamine in August 2015. All other defendants have pled guilty.
The evidence at trial established that Beam and others were responsible for importing multiple kilograms of methamphetamine into the Etowah County area from California and Georgia. Beam used FedEx to receive the meth from California and used co-defendants to transport meth from Georgia back to Alabama in their vehicles.
“Methamphetamine persists in plaguing our streets, neighborhoods, schools, and cities,” Town said. “Today’s verdict ensures that another dealer in this poison will be behind bars until he draws his last breath. We have an excellent trial team, to include the FBI and a conscientious jury, to thank for that,” Town said.
“Beam will now be held accountable for his role in distributing the poison that is destroying lives in Etowah County. I appreciate the work of my agents and our law enforcement partners in bringing this case to final resolution,” Sharp said.
Beam faces a life sentence for these crimes.
This case was prosecuted by Laura D. Hodge and Erica W. Barnes. The FBI investigated this case along with the Etowah County Drug Enforcement Unit who are members of the FBI North Alabama Safe Streets Task Force.
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Eastside Hollygrove Drug Trafficker Pleads Guilty to Drug and Firearm ViolationsRead the Press Release
U.S. Attorney Duane A. Evans announced that BRIAN MAXSON, aka “Chin,” age 34, of New Orleans, pled guilty today to one count of conspiring to distribute and to possess with intent to distribute heroin and fentanyl. MAXSON also pled guilty to one count of conspiring to possess firearms in furtherance of his drug-trafficking activities.
On MAXSON’s drug conspiracy count, MAXSON is facing a mandatory minimum sentence of 5 years’ imprisonment, a maximum sentence of 40 years’ imprisonment, a possible fine of up to $5,000,000, and at least four years of supervised release upon his release from prison. On the firearm count, MAXSON is facing a maximum sentence of 20 years’ imprisonment, a possible fine of up to $250,000, and not more than three years of supervised release.
U.S. District Judge Sarah S. Vance will sentence MAXSON on August 8, 2018 at 9:30 a.m.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Evans praised the work of the FBI New Orleans Gang Task Force (NOGFT), which led this investigation and was assisted by the Drug Enforcement Administration, New Orleans Police Department, St. Tammany Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office. Assistant United States Attorneys Brandon S. Long, David Haller, and Edward Rivera are in charge of the prosecution.
Dominican National Indicted for Passport Fraud and Identity TheftRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with passport fraud and identity theft.
Manuel Alejandro Guzman Soto, 49, was indicted today on one count of passport fraud and one count of aggravated identity theft.
On Aug. 18, 2011, Guzman Soto entered a Roslindale post office and used the name, date of birth, and Social Security Number of a United States citizen from Puerto Rico to apply for a United States passport.
The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory two years in prison, which must run consecutive to any other imposed term of imprisonment. Guzman Soto will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting this case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Correctional Officer Arrested for Taking Bribes to Smuggle Contraband into the Metropolitan Correctional CenterRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Ronald G. Gardella, Special Agent-in-Charge of the New York Field Office of the Department of Justice Office of the Inspector General (“DOJ OIG”), announced today the unsealing of a criminal Complaint in Manhattan federal court charging federal correctional officer VICTOR CASADO with taking bribes in exchange for smuggling contraband into the Metropolitan Correctional Center (“MCC”), a Manhattan detention facility that houses federal inmates. CASADO was arrested this morning and will be presented today before Magistrate Judge Henry B. Pitman.
U.S. Attorney Geoffrey S. Berman said: “As alleged, correctional officer Victor Casado had a duty to ensure the safety and security of the Metropolitan Correctional Center and federal inmates in his care. Instead he allegedly abused the trust placed in him by taking bribes to smuggle contraband to federal inmates. Casado now transitions from Justice Department employee to defendant.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Casado served as a gateway for the introduction of contraband into a federal prison. Not only did his actions violate federal laws and prison protocol, but they posed additional risks for other prison guards who would be responsible for removing these items if found and disciplining those who were in possession. Casado’s alleged crime is a serious offense that will be me with just scrutiny.”
DOJ OIG Special Agent-in-Charge Ronald G. Gardella said: “The DOJ OIG takes allegations of contraband smuggling into our federal prison system very seriously. We will continue to vigorously investigate such allegations and work with our law enforcement partners to identify and bring to justice any Justice Department employee involved in a smuggling scheme.”
According to the allegations in the Complaint unsealed today in Manhattan federal court[[1]]:
CASADO has been employed as a correctional officer at the MCC since 2012.
On multiple occasions in 2016 and 2017, CASADO smuggled cellphones, alcohol, over-the-counter medications, and food into the MCC in exchange for bribe payments. These bribes were funneled to CASADO by non-incarcerated relatives or associates of the inmates, either in cash or by wire transfer. For example, on multiple occasions, CASADO received bribes from an inmate (“Inmate-1”), transferred by one of Inmate-1’s attorneys, totaling more than $45,000 in exchange for smuggling alcohol and cellphones, among other contraband, into the MCC for Inmate-1. Additionally, CASADO also requested and received thousands of dollars in payments from another inmate (“Inmate-5”), which were delivered to CASADO by Inmate-5’s relatives and a paralegal who worked for him. Inmate-5 paid CASADO at CASADO’s insistence, ostensibly to fund travel by CASADO to the Dominican Republic.
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CASADO, 35, of the Bronx, New York, has been charged in the Complaint with one count of conspiracy to commit bribery and to introduce contraband into prison, which carries a maximum prison term of five years; one count of bribery, which carries a maximum prison term of 15 years; one count of introducing contraband into prison, which carries a maximum prison term of one year; one count of conspiracy to commit honest services wire fraud, which carries a maximum prison term of 20 years; and one count of honest services wire fraud, which carries a maximum prison term of 20 years. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the FBI and the DOJ Office of the Inspector General in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Lonergan and Nicolas Roos are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Co-Owner & CEO of Computer Company Sentenced for Conspiring to Steal Intellectual PropertyRead the Press Release
COLUMBUS, Ohio – The co-owner and CEO of TERiX Computer Company, Inc. was sentenced in U.S. District Court today for his role in fraudulently obtaining more than $10 million worth of intellectual property. Bernd D. Appleby, 66, of San Jose, Calif., was sentenced to 24 months in prison and two years of supervised release and ordered to pay a $100,000 fine.
TERiX – located in Sunnyvale, Calif. and Dublin, Ohio – used the intellectual property belonging to Sun Microsystems, Inc. and Oracle Corporation to support its customers nationwide and internationally.
U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by Senior U.S. District Judge James L. Graham.
Appleby was one of four TERiX executives who pleaded guilty in August 2017 to one count of conspiracy to commit wire fraud. The others have also been sentenced and include:
- TERiX co-owner and COO James A. Olding, 52, of Dublin, Ohio, who was sentenced to 12 months and one day in prison, three years of supervised release and a $50,000 fine;
- Director of Sales Lawrence E. Quinn, Jr., 58, of Hilliard, Ohio, who was sentenced to one day in prison, two years of supervised release and a $5,000 fine; and
- Director of Technical Services Jason T. Joyce. 47, of Dublin, Ohio, who was sentenced to 24 months of probation and a $5,000 fine.
According to court documents, the four conspired to set up three fake companies using aliases – which they supported using bogus email addresses and addresses, pre-paid telephones and pre-paid credit cards – to enter into service support contracts with Sun and Oracle for a single server.
The support contracts gave the four defendants credentials for Sun’s and Oracle’s databases, and allowed them to download Sun’s and Oracle’s intellectual property without detection. The intellectual property included firmware patches and updates for various Sun or Oracle hardware products, or operating system patches and updates for various versions of Sun’s and Oracle’s Solaris operating system.
The four used the fraudulently obtained intellectual property to support at least 500 TERiX customers, who did not know about the fraud. A statement of facts filed with the plea agreements cites more than 2,700 separate downloaded pieces of intellectual property between 2010 and 2014.
The primary purpose of the conspiracy was to fraudulently obtain intellectual property worth millions of dollars and then use the intellectual property to support unwitting TERiX customers, and for their own personal benefit.
“As the head of TERiX’s executive management team and 70 percent co-owner of the company, Appleby was responsible for all aspects of the business,” U.S. Attorney Glassman said. “He designed the conspiracy and its evolution over almost 10 years, and understood and directed all aspects of the criminal activity. As the scheme was uncovered, he instructed other company employees to devise ways to avoid detection.”
Glassman commended the investigation by the FBI and Assistant United States Attorney Jessica H. Kim who is representing the United States in the case.
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Clarksville Man Facing Federal Charges for Firing Weapon at Police OfficersRead the Press Release
NASHVILLE, Tenn. – April 5, 2018 – Levi West, 34, of Palmyra, Tennessee, was indicted yesterday by a federal grand jury in Nashville, Tennessee, and charged with being a convicted felon in possession of a firearm and possession of body armor, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
“This is yet another example of our policy to review every act of violence against our law enforcement officers,” said U.S. Attorney Cochran. “As in this case, the U.S. Attorney’s Office will bring federal charges where appropriate, for acts of violence committed against our men and women in blue.”
According to the indictment, on February 3, 2018, West was attempting to flee from a traffic stop by Clarksville Police officers and fired several shots at pursuing officers. West then fled into a wooded area and was later apprehended with the help of a police K-9. The indictment also alleges that officers recovered a .40 caliber Glock near West and recovered a ballistic vest and other military equipment in his vehicle. West was found to have a prior felony conviction and is prohibited from possessing a firearm. He is also prohibited from possessing body armor by virtue of a prior conviction of a crime of violence.
If convicted, West faces up to 10 years in prison on the firearms charge and up to three years in prison on the body armor charge and a $250,000 fine.
This case was investigated by the Clarksville, Tennessee Police Department and the Bureau of Alcohol, Tobacco, Firearms & explosives. The case is being prosecuted by Assistant U.S. Attorney Thomas Jaworski.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Clairton Man is 10th of 21 Defendants to Plead Guilty in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA. - A resident of Clairton, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Jojuan Bray, 22, pleaded guilty to one count of conspiring with 20 other individuals, between March and June 2017, to distribute narcotics. In connection with the guilty plea, the court was advised that Bray purchased cocaine from his codefendant, Skyler Carter, for further distribution in the Clairton area, and is responsible for the distribution of approximately 230 grams of cocaine during the relevant period. He is the tenth of 21 defendants charged to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for September 13, 2018, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of not more than $1 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Bray remains on bond pending the sentencing hearing.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
Canfield man indicted for having unregistered machine gun and ammunition despite felony convictionRead the Press Release
A Canfield man was arrested today after being indicted on firearms violations, said U.S. Attorney Justin E. Herdman.
Michael G. Malvasi, 55, was indicted on one count of possessing a firearm not registered to him in the national firearms registration and transfer record and one count of being a felon in possession of a firearm and ammunition.
Malvasi on Aug. 2, 2017 possessed an Interdynamic 9 mm machinegun that was not registered to him in the National Firearms Registration and Transfer Record. He was also prohibited from having the firearm and ammunition because of a 2011 conviction for tax evasion, according to court documents.
The investigation was conducted by the Canfield Police Department and Bureau of Alcohol, Tobacco and Firearms. It is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canal Winchester Man Charged with Robbing Victims at Gunpoint During Sales of Items Posted on Let Go, CraigslistRead the Press Release
COLUMBUS, Ohio – Dezjuan O. Myers, 21, of Canal Winchester, Ohio, was arrested today and charged with interstate robbery, brandishing a firearm during a crime of violence and possessing a firearm after being convicted of a felony.
Myers is scheduled to appear for arraignment at 2:30pm today before U.S. Magistrate Judge Kimberly A. Jolson.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Columbus Police Chief Kim Jacobs announced the charges.
According to an affidavit filed in support of the criminal complaint, on at least three occasions in March 2018, Myers robbed individuals at gunpoint after agreeing to purchase items from the victims on the app Let Go and on Craigslist.
On March 15, March 24 and March 29, it is alleged that Myers met with separate victims in the parking lot of a church on Gender Road to buy XBOX and Playstation gaming systems posted on Let Go and Craigslist.
Each time, Myers asked the seller victims to go to his house nearby to test that the systems worked. As the victims began to walk with him, he allegedly retrieved a shotgun stashed in a pile of leaves and pointed it at the victims, telling them to leave their items and walk away. On March 29, Myers retrieved the shotgun near a house on Laburnum Drive. Columbus police responded to the scene of each incident, and officers learned the home on Laburnum Drive was the residence of Myers’s grandfather.
Interstate robbery is a federal crime punishable by up to 20 years in prison. Brandishing a firearm during a crime of violence carries a potential sentence seven years to life in prison. Possessing a firearm after being convicted of a felony is a crime punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the ATF and Columbus Division of Police, as well as Assistant United States Attorney David J. Bosley, who is prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Canadian Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy announced today that Harvey Peake, 61, of Canada, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, was sentenced to 87 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Michael Adler and Patricia Astorga, who handled the case, stated that in 2013, Peake recruited co-defendant John Lambert to assist in the transporting of illegal narcotics for distribution. On October 3, 2016, Peake and Lambert traveled to the Seneca Buffalo Creek Casino in downtown Buffalo to hand off 10 kilograms of cocaine. The two men met briefly with a third individual in the casino and then walked towards the parking garage where Peake’s vehicle was parked. Lambert got into the driver’s seat and tapped the brake lights to signal their location to the third individual. Peake then opened the trunk of and removed a suitcase. The third individual pulled up next to the vehicle and Peake attempted to give the suitcase to the individual. Peake and Lambert were then arrested. Law enforcement officers seized the suitcase, which contained approximately 10 kilograms of cocaine.
Lambert was convicted and sentenced to 63 months in prison.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
California Man Sentenced to Federal Prison for Methamphetamine TraffickingRead the Press Release
BOISE - Justin Gomez, 29, of Barstow, California, was sentenced yesterday in United States district court for possession with intent to distribute methamphetamine, U.S. Attorney Bart M. Davis announced. Senior U.S. District Judge Edward J. Lodge sentenced Gomez to 240 months in prison. Judge Lodge also ordered Gomez serve an additional five years of supervised release upon his release from prison.
A federal jury found Gomez guilty of the crime after a two-day trial in April 2017. The evidence presented at trial showed that Gomez and his co-defendant, Salvador Gonzalez, traveled from southern California to Boise, Idaho, to distribute a large quantity of methamphetamine. Local and federal law enforcement officers discovered the conspiracy and intervened. On September 11, 2015, in Meridian, Idaho, both Gomez and Gonzalez were arrested with over two pounds of pure methamphetamine in their possession.
Gonzalez pleaded guilty before trial to two counts of possession with intent to distribute methamphetamine. On November 9, 2016, Judge Lodge sentenced Gonzalez to 120 months in prison.
The case was investigated by the Drug Enforcement Administration and Ada County Sheriff’s Office.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
California Man Pleads Guilty to Multimillion-Dollar Fraud on Film InvestorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that STEVEN BROWN pled guilty today to defrauding victims of over $9.5 million by participating in a fraudulent scheme to solicit investments in feature-length films and documentaries based on misrepresentations and fraudulent documents. BROWN pled guilty before United States Magistrate Judge Henry B. Pitman and is scheduled to be sentenced on July 18, 2018, at 2:00 p.m., before U.S. District Judge Kimba M. Wood.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Steven Brown defrauded investors of millions of dollars by convincing them to invest in Hollywood films and documentaries with false promises and fraudulent documents. Even after he was arrested, he continued his fraud and induced yet another investor to provide additional money using the same fraudulent tactics. Now Brown’s scheme has been revealed, and he faces significant time for his scheme.”
According to allegations in an Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
From 2009 through 2017, STEVEN BROWN participated in a scheme in which he, along with co-conspirators, solicited investments in the marketing and production of feature-length films and documentaries from investors, including by furnishing them with fraudulent documents and by promising guaranteed returns, which never materialized.
In order to solicit these investments, BROWN and others made material misrepresentations about, among other things, their own investments in the films for which they were soliciting money, as well as investments that they claimed to have received from other investors. To support their claims, BROWN and his coconspirators at times sent the victims falsified financial records that reflected investments in the films that had never actually been made. BROWN and his coconspirators also told certain victims that their investments would be guaranteed by a fictitious entity, and provided falsified documents in support of these purported guarantees. On one occasion, Brown sent an email to a victim attaching what purported to be a current bank statement for an account held by the fictitious entity, as well as an email from an executive at the fictitious entity guaranteeing the victim’s investment. In fact, neither the account nor the executive actually existed.
BROWN continued to solicit investments in film projects based on misrepresentations even after being arrested on the criminal charges brought in this case. In 2017, BROWN solicited an investment from a victim of the scheme in a film production and distribution company with which BROWN was purportedly involved by promising the victim a 50 percent return on the investment. The victim’s funds were never returned and were, in part, used to pay expenses unrelated to any film projects.
In total, BROWN and his co-conspirators solicited millions of dollars from their victims, allegedly to be used for either marketing or production costs associated with the various films. In reality, however, the money that was received from these investors was primarily used to fund other projects, to pay back previously defrauded investors, and to pay the personal expenses of BROWN and his co-conspirators, including, among other things, the purchase of a condominium for BROWN.
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BROWN, 48, of Los Angeles, California, pled guilty to one count of conspiring to commit wire fraud, which carries a maximum term of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Katherine Reilly, Noah Solowiejczyk, and Ryan Finkel are in charge of the prosecution.
Buffalo Woman Sentenced for Access Device Fraud and Aggravated I-D TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Teria Baker, also known as Tiara Baker, 25, of Buffalo, NY, who was convicted of conspiracy to commit access device fraud and aggravated identity theft, was sentenced by U.S. District Judge Lawrence J. Vilardo to 34 months in prison. The defendant was also ordered to pay approximately $143,000 in restitution.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that from October 2013 to December 2013, the defendant and others traveled to Walmart stores and other retail establishments in Western New York where they used unauthorized credit cards. The cards were obtained without the true account holder’s knowledge or authority. Baker and others purchased $500 store gift cards and other merchandise totaling in excess of $160,000.
The sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Acting Inspector-in-Charge Raymond Moss of the Boston Division, and the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Broward Resident Sentenced to Forty-One Months in Prison for Stealing Deceased Grandparents’ Social Security FundsRead the Press Release
A Broward County resident was sentenced today to over three years in federal prison for stealing social security benefits, for years following her grandparents’ death.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), made the announcement.
Myriam Etienne, 49, of Pompano Beach, was sentenced today, by U.S. District Judge James I. Cohn, to 41 months’ imprisonment, 3 years of supervised release and ordered to pay restitution.
On January 24, 2018, Etienne was convicted by a federal jury of ninety counts of theft of government funds, in violation of Title 18, United States Code, Section 641. According to evidence presented at trial, Etienne received Social Security Supplemental Security Income (“SSI”) benefits for her grandparents since 2004. The SSA administers numerous programs to provide for the material needs of individuals and their families, including SSI. SSI is a federal program that provides assistance to lower income individuals to meet basic food, shelter, medical and clothing needs. Monthly SSI benefits are paid to eligible individuals.
The evidence presented at trial revealed that these benefits were paid to the Etienne’s grandmother and grandfather and the defendant controlled their funds as a representative payee. The SSI funds were direct deposited into a joint bank account the defendant shared with her deceased grandparents. The trial evidence showed that the Etienne’s grandfather died in Haiti, in 2006, and the defendant’s grandmother died in Haiti, in 2009, and that both grandparents left the United States years before their deaths. The defendant, however, kept receiving the SSI benefits and did not report that her grandparents left the United States or subsequently died in Haiti to the SSA.
The evidence further showed that Etienne signed representative payee accounting records, years after her grandparents deaths, verifying that the SSI money was being utilized for her their food, shelter, clothing and medical treatment. After the defendant’s grandmother and grandfather left the country and subsequently died, the defendant received over $160,000 in SSI payments. The evidence at trial further revealed that the defendant utilized these SSI funds, that had been direct deposited into the joint account, to make mortgage payments on her home, to purchase airline tickets and make payments on her BMW X6 sport utility vehicle.
Mr. Greenberg commended the investigative efforts of the SSA-OIG, the U.S. Department of State and the FBI’s Legal Attaché in Port-au-Prince, Haiti. This case was prosecuted by Assistant U.S. Attorney Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Boston Man Indicted for Selling Crack Cocaine to Bedford VA Medical Center ResidentsRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston for distributing crack cocaine.
Austin Wilkerson, 41, was indicted today on three counts of distributing cocaine base, also known as crack cocaine, on the Veterans Affairs Medical Center campus in Bedford.
According to court documents, in January 2017, a cooperating witness reported to law enforcement that Wilkerson was selling crack cocaine to Michael Sexton, a resident at the Veterans Affairs Medical Center. On July 27, Aug. 10, and Sept. 5, 2017, Wilkerson provided crack cocaine to Sexton, who then sold it to the cooperating witness at the Veterans Affairs Medical Center in Bedford.
Wilkerson faces a sentence of no greater than 20 years in prison, five years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Sean J. Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Shawn Kelly, Chief of Police of the U.S. Department of Veterans Affairs Police Service, Bedford VA Medical Center, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling's Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bossier City man sentenced to 12 months in prison for damaging Air Force property with vehicleRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Bossier City man was sentenced Wednesday to a year in prison for driving a vehicle onto Barksdale Air Force Base and damaging property.
Jeffery Jermaine Francis, 35, of Bossier City, La., was sentenced by District Judge S. Maurice Hicks Jr. on one count of willful damage to property of the United States. He was also sentenced to three years of supervised release and ordered to pay $17,600 in restitution to the U.S. Air Force. According to the October 25, 2017, guilty plea, Francis was driving a green 2003 GMC Yukon on August 20, 2017, and struck a bollard at the west gate of Barksdale Air Force Base. When approached and asked to place the vehicle in park, Francis instead drove onto the base. Barksdale security forces deployed a vehicle entrapment barrier on Barksdale Boulevard, which disabled the vehicle. He then fled the scene on foot. Security forces later discovered that the vehicle belonged to Francis’s girlfriend, and that he was driving under suspension. The estimated cost of damage to Barksdale Air Force property is $17,600.
United States Air Force Police Criminal Investigations conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Blythewood Woman Pleads Guilty to Embezzlement of Government FundsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Teresa Yarborough-Walker, age 50, of Blythewood, pled guilty to Theft of Government Funds, a violation of Title 18, United States Code, § 641. Judge Mary Geiger Lewis accepted the plea and will sentence Walker at a later date.
Evidence presented at the hearing established that Walker was the human resources supervisor for Genesis Health Care, Inc. Genesis is a non-profit health care center that offers medical services to poor, rural communities. Genesis was funded by the Health Resources Service Administration, an agency within the US Department of Health and Human Services. Many Genesis patients are on Medicare and Medicaid.
Walker embezzled from Genesis by creating fictitious employees and paying them a salary. She then diverted those salaries to herself. She modified the payroll software to prevent reports from going to management that would have revealed the scheme.
Walker stole approximately $416,257.00.
The maximum penalty faced by Walker is imprisonment for ten years, with a potential fine up to $250,000.
The Federal Bureau of Investigation and Internal Revenue Service investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Bakersfield Trucking School Owner and Former DMV Employee Charged with Scheme to Fraudulently Issue California Driver’s LicensesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 13-count indictment on March 29, 2018, against Bikramjit Singh Pannu, aka Victor, 47, and Ulises Pena, 35, both of Bakersfield, charging them with criminal conspiracy, one count each of bribery concerning programs receiving federal funds, five counts of unlawful production of an identification document and five counts of unlawful transfer of an identification document, U.S. Attorney McGregor W. Scott announced today.
Pannu was arrested today and is scheduled to make his initial appearance in federal court at 2:30 p.m. today in Bakersfield before U.S. Magistrate Judge Jennifer Thurston. Pena made his initial appearance before Judge Thurston on April 4, 2018.
According to court documents, Pannu operated Skyway Truck Driving School in Bakersfield that ostensibly provided training to those seeking to obtain driver licenses. When a student could not pass the required DMV license written examinations, Pannu offered to assist them, in return for money, to have his co-defendant Pena, who was employed at a DMV field office in Bakersfield, access DMV records and alter them to show that the individual had passed DMV written examinations even though they had not. The DMV would then mail the student an officially issued California Driver License.
The scheme between Pannu and Pena continued from approximately January 2015 through August 25, 2016. In addition to the charged conspiracy and the bribery charges, the indictment also charges the unlawful production and transfer of five specific commercial Class A California driver’s licenses.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division, Internal Affairs. Assistant U.S. Attorneys Henry Z. Carbajal III and David L. Gappa are prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for the conspiracy charge, a maximum statutory penalty of 10 years in prison and a $250,000 fine for the bribery charge, and a maximum statutory penalty of 15 years in prison and a $250,000 fine for each charge of unlawful production and transfer of identification documents. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Alleged Gang Member Pleads Guilty to Dealing FirearmsRead the Press Release
BOSTON – An alleged member of the Latin Gangsta’ Disciples gang pleaded guilty yesterday to federal firearms trafficking.
Eric Valentin, a/k/a “Jefe,” 22, of Nashua, N.H., pleaded guilty to dealing firearms without a license and conspiracy to deal firearms without a license. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for June 20, 2018. In February 2018, Valentin was charged along with co-defendants Jose Ilarraza, a/k/a “Kae-Kae,” 26, of Newburyport, and Bryan Torres-Almanzar, a/k/a “Flex,” 19, also of Nashua, N.H.
According to court documents, in September 2017, Ilarazza approached an individual, who was working as a cooperating witness for federal investigators, after Ilarazza learned that the cooperator was interested in obtaining firearms from the Dominican Republic. Ilarraza, who was incarcerated at the time at the Essex County Jail following a conviction for breaking and entering and resisting arrest, instructed the cooperating witness to contact Torres-Almanzar, who was allegedly heavily involved in firearms trafficking.
Federal investigators used this information and worked with another cooperating witness to purchase firearms from Torres-Almanzar and his “partner,” Valentin, on six occasions between Sept. 12, 2017, and Oct. 19, 2017. For example, on Sept. 14, 2017, the cooperating witness arranged to purchase a 9mm semiautomatic pistol with a laser sight and an extended magazine for $1,000 from Torres-Almanzar and Valentin. During the sale, Torres-Almanzar and Valentin talked about future gun purchases and told the cooperating witness that “we do business and will take care of you.” They also said that they were in the business of “growing our organization” and that it was a “good thing that he [Ilarraza] introduced us.” During the course of the investigation, the cooperating witness purchased 11 firearms and 200 rounds of ammunition from Torres-Almanzar and Valentin.
Torres-Almanzar pleaded guilty on March 23, 2018, and is scheduled to be sentenced on June 19, 2018. Ilarraza has pleaded not guilty.
The charges of dealing in firearms without a license and conspiracy each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Lawrence Police Chief Roy P. Vasque; Essex County Sheriff Kevin F. Coppinger; Essex County District Attorney Jonathan W. Blodgett; Lowell Police Chief William Taylor; and Nashua (N.H.) Police Chief Andrew J. Lavoie made the announcement today.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Alabama Woman Indicted for Filing False Tax Returns and Stealing from Her EmployerRead the Press Release
WASHINGTON - A federal grand jury in Montgomery, Alabama, has returned an indictment, which was unsealed today, charging a woman with filing false tax returns and wire fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Louis V. Franklin, Sr. for the Middle District of Alabama.
According to the indictment, from February 2007 through May 2014, Alita Baker Edeker of Valley, Alabama stole over $500,000 of her employer’s funds for her own personal benefit and the benefit of others, by directing customer payments to debit and credit cards she controlled. The indictment further alleges that Edeker made false statements and representations in the company’s books and records in order to conceal her misappropriation. After misappropriating the funds, the indictment further alleges that Edeker willfully filed false U.S. individual income tax returns for tax years 2011, 2012, and 2013 that did not report the money.
If convicted Edeker faces a statutory maximum sentence of 20 years in prison for each wire fraud count and three years in prison for each count of filing a false tax return. Edeker also faces a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Franklin commended special agents of IRS Criminal Investigation and the Auburn, Alabama Police Department, who investigated the case, and Tax Division Trial Attorney Grace Albinson and Assistant U.S. Attorney Ben Baxley, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Akron man faces at least 20 years in prison after jury convicts him of selling fentanyl that killed Akron womanRead the Press Release
A jury convicted an Akron man of selling fentanyl that caused the death of an Akron woman, U.S. Attorney Justin E. Herdman said.
Jurmaine A. Jeffries, 29, was convicted of distribution of fentanyl and possession with intent to distribute fentanyl following a two-week trial. The jury found Jeffries sold the fentanyl that resulted in the death of an Akron woman on Sept. 16, 2015 inside a home on Goodyear Avenue.
Testimony and evidence presented at trial showed the woman called and texted Jeffries repeatedly on the day she died asking to buy heroin. He replied “B right there” and records from cell phone towers put Jeffries near the woman’s house on the day she died.
After she was found dead, Akron police detectives posed as the woman and texted Jeffries from her phone, asking for more drugs. Jeffries again replied that he would be right there. Police arrested him when he arrived and found him with 38 grams of fentanyl, according to trial testimony and evidence.
Jeffries will be sentenced later this year. He faces a mandatory minimum sentence of 20 years in prison.
“We will prosecute those who sell fentanyl and other drugs that kill our friends and neighbors,” Herdman said. “This defendant drove around Akron delivering poison for profit. The Akron Police Department and all our law enforcement partners did a tremendous job bringing this man to justice.”
This case is being prosecuted by Assistant U.S. Attorneys Teresa Riley and Megan Miller following an investigation by the Akron Police Department and Drug Enforcement Administration.
40-Count Indictment Charges RI Man in International Telemarketing SchemeRead the Press Release
PROVIDENCE, RI – A federal grand jury in Providence, RI, today returned a forty-count indictment charging a Pawtucket, RI, man who is among more than 250 defendants from around the globe named in criminal, civil and forfeiture fraud cases brought by federal and state law enforcement against individuals and organizations that allegedly victimized more than a million Americans, most of whom are elderly.
In February, Attorney General Jeff Sessions announced the largest coordinated sweep of elder fraud cases in history. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars.
Among those charged at the time by way of a federal criminal complaint was Shawn Whitfield, 47, of Pawtucket. Today, a federal grand jury returned an indictment charging Whitfield with one count of conspiracy, ten counts of mail fraud, and twenty-nine counts of wire fraud.
Whitfield’s indictment is announced by United States Attorney Stephen G. Dambruch and Raymond D. Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service (USPIS), Boston Division.
It is alleged that Whitfield participated in a telemarketing lottery scam originating out of Jamaica that targeted United States residents, many of them seniors. The victims were led to believe that they had won a lottery. However, they were told that the cash or prizes they purportedly won would not be released without upfront payment of taxes or fees.
It is alleged that between July 2015 and January 2018, Whitfield collected an estimated $101,541 in payments from at least 47 individuals from 23 states who fell victim to the lottery telemarketing scam. It is alleged that the majority of funds collected by Whitfield were transferred electronically to co-conspirators or others at their direction.
It is alleged that in order to facilitate the scheme, individuals were contacted via telephone and told of their purported winnings. They were instructed to send upfront payments for taxes and fees to Shawn Whitfield at his Pawtucket, R.I., residence. An investigation by the U.S. Postal Inspection Service and the U.S. Attorney’s Office determined that Whitfield collected an estimated $101,541 most of which was later transferred electronically by Whitfield to co-conspirators or others at their direction.
USPIS agents, assisted by members of the Pawtucket Police Department, Rhode Island State Police and the U.S. Marshals Service, executed a court-authorized search of Whitfield’s residence on February 20, 2018. Simultaneously, Whitfield was arrested at his place of employment in Norwood, Mass., by USPIS agents, with the assistance of members of the Norwood Police Department.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Whitfield is being prosecuted by Assistant U.S. Attorney Denise M. Barton, Elder Justice Coordinator for the United States Attorney’s Office for the District of Rhode Island.
If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint. For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice
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4 April 2018
Worcester Man Pleads Guilty to Federal Sex Trafficking OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MOHAMED H. ABDI, also known as “Vic,” 25, of Worcester, Massachusetts, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to commit sex trafficking by force, fraud or coercion.
According to court documents and statements made in court, between late December 2016 and January 5, 2017, ABDI and his girlfriend used threats of force and coercion to cause a female victim to engage in prostitution. ABDI and his girlfriend advertised the victim’s prostitution services on Backpage.com and other websites, rented Connecticut hotel rooms where the victim engaged in prostitution, and transported the victim to engage in sexual acts with customers at the hotels and private residences in Connecticut and elsewhere. In addition, ABDI provided the victim with heroin, but withheld the drug from the victim until after she provided sexual services to additional customers. ABDI and his girlfriend also made threats against the victim and her child if the victim reported them to law enforcement.
Judge Arterton scheduled sentencing for June 27, 2018, at which time ABDI faces a maximum term of imprisonment of life.
ABDI has been detained since his arrest on related state charges on January 5, 2017.
This matter is being investigated by the Connecticut Human Trafficking Task Force, Federal Bureau of Investigation and Connecticut State Police, with the assistance of the Wethersfield Police Department and the Worcester Police Department. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
U.S. Attorney Durham thanked the State’s Attorney for the Judicial District of Tolland and the Worcester County District Attorney’s Office for their cooperation and assistance in the prosecution of this matter.
With tax filing deadline on the way, beware of scamsRead the Press Release
ATLANTA - The deadline for individuals to file their tax returns is quickly approaching. Most will file their taxes and await their refund with no issues or concerns. However, some may encounter an unexpected impediment – an unscrupulous return preparer who took advantage of them, or their identity was stolen and a tax refund has already been claimed in their name by a thief.
“Unfortunately, criminals use tax season to prey on unsuspecting taxpayers,” said U.S. Attorney Byung J. “BJay” Pak. “Remember to be diligent in your tax preparation and beware of offers that sound too good to be true.”
“With the April 17th tax deadline forthcoming, it is important for people to have confidence that when they pay and file their taxes, their fellow Americans are doing the same,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “During these times, every citizen and taxpayer must stay vigilant and aware of the various tax schemes being perpetrated in order to safeguard their identities from being compromised.”
The U.S Attorney’s Office for the Northern District of Georgia, along with IRS-Criminal Investigations and other law enforcement partners, is actively engaged in combating tax preparing cheats and identity thieves. The following cases highlight some of the work done by the U.S. Attorney’s Office and its law enforcement partners over the past year relating to tax fraud.
Anthony Adewale Oloko and Temilola M. Brown
Anthony Adewale Oloko used stolen taxpayer personally identifiable information (PII) to file fraudulent tax returns with the IRS and then directed the tax refunds into fraudulently opened bank accounts. Between February 2014 and February 2017, Oloko filed 139 fraudulent returns totaling $886,895 in refunds. Of these 139 filed returns, nine refunds were actually issued by the IRS, totaling $27,129. The remainder of the fraudulent returns were successfully flagged by IRS systems.
Temilola M. Brown, who worked with Oloko opened a fraudulent bank account using a false name and identification. The investigation revealed that five fraudulent refunds totaling $37,320 were attempted to be directed into that account, but only one refund in the amount of $9,472 was actually deposited into the account. In addition, surveillance footage revealed Brown withdrawing money from ATMs in Mableton and Cumberland, Georgia.
Anthony Adewale Oloko was sentenced on February 12, 2018, to four years and three months in prison. Temilola M. Brown was sentenced on February 13, 2018, to one year and one day in prison, in connection with a scheme to use stolen taxpayer PII to file fraudulent tax returns with the IRS and then direct the tax refunds into fraudulently opened bank accounts. Both Oloko and Brown had previously pleaded guilty to theft of public money charges, and Oloko also pleaded guilty to one count of aggravated identity theft.
This case was investigated by Treasury Inspector General for Tax Administration (TIGTA), and Assistant U.S. Attorney Michael Herskowitz prosecuted the case.
Leshanda Hunte and Raphael Menard
On February 16, 2018, Leshanda Hunte was convicted by a jury of one count of conspiracy to commit theft of government money and five counts of theft of government money. Hunte's husband, Raphael Menard, was also charged in the case. He pleaded guilty to conspiracy to commit theft of government money in January 2018.
Hunte and Menard operated a tax refund scheme that involved filing false federal tax returns using the names and Social Security numbers of real people, but with false financial information that created the impression that the filer was owed a sizeable refund. The tax victims were elderly, disabled, and in some cases had died before the returns were filed. The IRS then issued tax refunds, every penny of which made its way to four bank accounts opened by Hunte and Menard in Dunwoody, Georgia. Using this scheme, Hunte and Menard stole more than $100,000 in tax refunds in just two months in the fall of 2012, although the evidence at trial established that the tax refund scheme had been operating at least as early as November 2011. The bank account activity showed that Hunte and Menard used the stolen tax refund money to finance their own lifestyle, including expenditures for rent, travel and expensive restaurants.
The tax refund scheme unraveled after astute employees at the bank noticed the suspicious refund activity and froze the Hunte-Menard accounts. When three bankers told Hunte why they froze the accounts, Hunte responded that she was a tax preparer and that the refund checks belonged to her “clients.” The bankers told Hunte that she would have to bring each client into the bank to sign a release before the bank could pay out the money. A few days later Hunte brought a man into the bank whom she presented as a client; in reality, the man was her cousin and roommate. After being deceived, the bank gave Hunte $8,573 in cash. Two days later, Menard went to the bank and tried the same trick. This time, however, a banker noticed that the third party presented a fake ID and she called the Dunwoody Police Department, who arrested Menard and the other man.
Hunte, 34, and Menard, 32, of Marietta, Georgia, will be sentenced before U.S. District Court Judge William S. Duffey, Jr., on May 8, 2018. Hunte and Menard each face a maximum of five years’ imprisonment for their conspiracy convictions. Hunte also faces an additional sentence of up to ten years' imprisonment for each of the five substantive theft convictions.
This case is being investigated by the Internal Revenue Service Criminal Investigation, with valuable assistance from the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Trevor Wilmot and Samir Kaushal are prosecuting the case.
Calvin C. Barnes, Sharon Ceacal, Kenneth Cottrell, Zechariah Daniel, Derrick Lawson, Reynolds Scott III, Anthony Shivers and Calvin C. Williams
Eight members of a large Atlanta-based tax fraud and money laundering conspiracy have been sentenced for their roles in stealing funds from the U.S. Treasury.
In 2009, 2010, 2011 and 2012, members of the conspiracy filed and caused to be filed over 100 fraudulent corporate tax returns, claiming $35 million in refunds for fuel taxes falsely claimed to have been paid on fuel purchased for off-road company vehicles. The IRS actually paid the co-conspirators over $5.6 million from those falsely claimed tax refunds, before those losses were stopped at the time of the first arrest in this investigation in May 2012. The false claims were made in the names of hijacked corporations and shell companies, none of which used off-road vehicles or paid the fuel tax claimed for refund.
Kenneth Cottrell, who has worked as a tax preparer, was personally involved in the preparation of some of the fraudulent returns. Calvin L. Barnes, Sharon Ceacal, Zechariah Daniel, Derrick Lawson, Reynolds Scott III and Calvin C. Williams were primarily involved with negotiating the fraudulently obtained refund checks and distributing the proceeds to coconspirators. Anthony Shivers assisted his brother Charlie Shivers III with whatever needed to be done in the conspiracy.
U.S. District Judge Thomas W. Thrash imposed sentences on the eight defendants, who had all pleaded guilty, as follows:
•Calvin L. Barnes, a/k/a “Big Cal”, 36, of Forest Park, Georgia, was sentenced to one year and one day in prison.
•Sharon Ceacal, 51, of Warner Robins, Georgia, was sentenced on August 2, 2017 to a year and a day in prison.
•Kenneth Cottrell, 33, of Atlanta, Georgia, was sentenced on July 31, 2017 to six months in prison.
•Zechariah Daniel, a/k/a “Zech”, a/k/a “Leroy Harris”, 36, of Atlanta, Georgia, was sentenced on August 2, 2017 to two years, four months in prison.
•Derrick Lawson, 43, of Lithonia, Georgia, was sentenced on August 3, 2017 to one year, six months in prison.
•Reynolds Scott III, 49, of Atlanta, Georgia, was sentenced on August 2, 2017 to four months in prison.
•Anthony Shivers, 47, of Lovejoy, Georgia, was sentenced on May 1, 2017 to three years, five months in prison.
•Calvin C. Williams, a/k/a “Lil’ Cal”, 48, of Smyrna, Georgia, was sentenced on August 2, 2017 to 10 months in prison.
This case was investigated by the IRS Criminal Investigation, the U.S. States Secret Service, and Assistant U.S. Attorney Alana R. Black prosecuted the case.
Jahmir Antoine Robinson
From April 2011 through April 2012, Jahmir Robinson ran a scheme to defraud the United States by filing false federal income tax returns using stolen identities. Robinson obtained personal identity information, including names, Social Security numbers, and dates of birth, of true individuals to file federal tax returns without their authorizations. To circumvent IRS checks and balances, Robinson obtained Employer Identification Numbers (EINs) from the IRS for 17 individual corporations and filed fictitious Forms 944 so that the IRS database would automatically match employer income tax withholdings against the individual returns.
In total, Robinson used the stolen identities and EINs to file 153 fraudulent individual tax returns with the IRS for tax years 2010 and 2011. Robinson caused the IRS to disburse refunds to an account he controlled. As a result of the scheme, Robinson caused a tax loss totaling $409,114.27.
Jahmir Antoine Robinson, 35, of Lithonia, Georgia, was sentenced by U.S. District Judge Leigh Martin May to four years, six months in prison in federal prison, four years of supervised release, and ordered to pay $240,033.33 in restitution. He was convicted on these charges on November 8, 2017, after he pleaded guilty. Robinson was sentenced for running a stolen identity refund fraud (SIRF) scheme after he stole the identities of 153 people, and caused a tax loss of approximately $409,000.
This case was investigated by the IRS Criminal Investigation, and Assistant U.S. Attorney Bernita B. Malloy prosecuted the case.
Kim Earlycutt, Shannon King, and Marcia Farmer
Three defendants, Kim A. Earlycutt, Shannon A. King, and Marcia Farmer, obtained identity documents of foreign nationals and forged foreign identity documents in connection with their work at T&K Tax Services and More, which Earlycutt partially owned. Using these identity documents, the defendants submitted IRS W-7 forms to get individual taxpayer identification numbers (ITINs). The defendants then created false and fraudulent tax claim forms, specifically Forms 1040, or individual income tax returns, using these ITINs. Included with these Forms 1040 were falsified W-2 forms, which had fraudulent employer information, income, withholding amounts, and deduction amounts.
The defendants filed the fraudulent tax returns with the IRS, by mailing them and by using T&K’s electronic filing number. The tax returns all contained requests for refunds which were not actually due. The defendants enriched themselves by retaining a portion of the tax refunds that had been fraudulently obtained, including in some instances the entire refund. In all, they sought refunds in excess of $7 million and actually received over $5 million in fraudulent refunds. They used these fraudulent funds to pay personal expenses, including paying their personal automobile insurance. One defendant, Kim Earlycutt, used the fraudulent funds for gambling.
Kim A. Earlycutt, 54, of Covington, Georgia, was sentenced on August 25, 2017, to nine years in prison and ordered to pay restitution in the amount of $5,222,634.
Shannon A. King, 37, of Lithonia, Georgia, was sentenced on August 24, 2017, to four years, six months in prison and ordered to pay restitution in the amount of $2,596,169.
Marcia Farmer, 51, of Snellville, Georgia, was sentenced on August 29, 2017, to one year, six months in prison to be followed by nine months of home confinement and was ordered to pay restitution in the amount of $3,370,811.
All three were sentenced by U.S. District Judge Leigh Martin May.
This case was investigated by Internal Revenue Service Criminal Investigation, the U.S. Postal Inspection Service, and the U.S. Secret Service.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
Shamil Dean
Tax preparer, Shamil Dean was sentenced to two years in prison for her role in stealing fraudulently obtained tax refunds payable to another person. Dean maintained two bank accounts into which she deposited $147,318.64 through electronic deposits and paper U.S. Treasury checks. These funds were fraudulently obtained tax refunds, from returns filed in the names of identity theft victims. Dean transferred or withdrew the proceeds from the fraudulent refunds shortly after depositing them.
On May 3, 2017, U.S. District Judge Leigh Martin May sentenced Dean to two years in prison. Dean was also ordered to pay $110,773.55 in restitution. Dean had pleaded guilty to a single count of aggravated identity theft on February 22, 2017.
The case was investigated by IRS Criminal Investigation, and Assistant U.S. Attorney Alana R. Black and David M. Zisserson and Charles M. Edgar of the Department of Justice, Tax Division prosecuted the case.
Gianna C. Liady
Gianna C. Liady co-owned K-1 Financial, a tax return preparation firm operating in Atlanta, Georgia. In November 2017, Liady pleaded guilty to a one-count Information charging her with assisting in the preparation and filing of a false federal income tax return. Liady prepared and filed false tax returns on behalf of K-1 Financial’s customers causing a tax loss to the United States of approximately $197,506.
U.S. District Court Judge Eleanor L. Ross sentenced Liady to serve one year, three months in prison and to pay restitution in the amount of $197,506.
This case was investigated by IRS Criminal Investigation.
Assistant U.S. Attorney Bernita B. Malloy and Trial Attorney Sean Beaty of the Justice Department’s Tax Division prosecuted the case.
Go to https://www.irs.gov/ and click on 2018 Dirty Dozen for more on tax schemes.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Wheeling man sentenced for firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA – Charles Smith Rippy, Jr., of Wheeling, West Virginia, was sentenced today to 15 months incarceration for a firearm charge, United States Attorney Bill Powell announced.
Rippy, age 63, pled guilty to one count of “Unlawful Possession of Firearm” in January 2018. Rippy, having been convicted of two felonies, admitted to illegally possessing a .22 caliber pistol in Ohio County in April 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.Wexford Man Failed to Register as a Sex Offender, Fled to Avoid Serving a 10-Year Prison Sentence for Conspiring to Sex Traffic a MinorRead the Press Release
PITTSBURGH, PA - A former resident of Allegheny County, Pennsylvania has pleaded guilty in federal court to charges of failure of to register as a sex offender and failure to surrender for service of sentence, United States Attorney Scott W. Brady announced today.
Daniel Teed, age 56, of Wexford, PA, pleaded guilty before United States District Judge Arthur J. Schwab.
According to information presented to the Court, from October 23, 2017, and continuing until February 13, 2018, Teed, who was required to register under the Sex Offender Registration and Notification Act after having been convicted of Conspiracy to Commit Sex Trafficking of Children on June 14, 2017, knowingly failed to register, as required by the SORNA. In addition, Teed, after having been released, while awaiting his surrender for service of sentence after conviction, and having been directed by the Court to surrender for service of sentence to the Federal Correctional Institution (FCI) Loretto in Western Pennsylvania on January 2, 2018, knowingly and willfully failed to surrender as ordered by the Court.
Teed was arrested on February 12 in Flagstaff, Ariz., following a nationwide manhunt led by the U.S. Marshals Service. Teed, a convicted sex offender, was wanted for failing to surrender to serve a 10-year prison term. Deputy Marshals were dispatched to multiple states and eventually developed information that Teed had traveled to Flagstaff. Investigation revealed that Teed was employing an alias and had disguised his appearance to avoid capture.
United States District Judge Schwab scheduled sentencing for September 13, 2018. The law provides for a maximum total sentence of 20 years imprisonment, fine of $500,000.00, a term of supervised release for no more than three years, or any or all of the above. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The United States Marshals Service and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Teed.
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, 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.
West Haven Woman Sentenced to 5 Years in Federal Prison for Robbing 3 BanksRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that COURTNEY WORTHINGTON, 31, of West Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for robbing three Connecticut banks.
According to court documents and statements made in court, WORTHINGTON robbed the TD Bank at 636 Campbell Avenue in West Haven on December 19, 2016; the Peoples Bank at 198 Amity Street in Woodbridge on January 2, 2017, and the TD Bank at 184 Route 81 in Killingworth on January 5, 2017. During each robbery, WORTHINGTON handed the teller a note containing threats and demanding money.
WORTHINGTON was arrested on January 5, 2017, at a hotel in East Haven. On July 12, 2017, she pleaded guilty to one count of bank robbery. She has been detained since her arrest.
This investigation was conducted by the Federal Bureau of Investigation, Connecticut State Police, West Haven Police Department and Woodbridge Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Waterbury Man Pleads Guilty to Distributing Heroin to Danbury Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANDRE REED, 25, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of distribution of heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 1, 2016, at approximately 11:39 p.m., Danbury Police responded to a service station on the report of a woman in medical distress in a restroom. At the location, officers observed the victim on her knees, with her face on the floor, taking a deep gasping breath every 20 seconds. The victim also was holding a syringe. The victim was transported to the hospital, where she was placed on life support. She has since recovered from the overdose.
The investigation revealed that REED supplied heroin to another individual who then sold it to the victim.
Judge Meyer scheduled sentencing for July 18, 2018, at which time REED faces a maximum term of imprisonment of 20 years. REED is detained pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Torrington, Danbury and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
U.S. Attorney Commemorates National Crime Victims’ Rights Week, April 8-14Read the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that in commemoration of National Crime Victims’ Rights Week (NCVRW), April 8-14, 2018, the U.S. Attorney’s Office (USAO) and the Westbrook Police Department (WPD) are hosting a presentation by L.Y. Marlow to raise awareness about crime victims’ issues and rights and the need for support and services for victims of crime. The presentation will take place on April 18th at 9:00 a.m. at the Westbrook Performing Arts Center, in Westbrook, Maine.
Ms. Marlow is an author, a speaker and the founder of Saving Promise, a national domestic violence prevention organization. Ms. Marlow will share her personal story, which includes a family legacy of more than four generations of domestic violence, to address what she believes is a global health crisis – intimate partner violence.
The Office for Victims of Crime (OVC) of the U.S. Department of Justice (DOJ) leads communities throughout the country in their annual observances of NCVRW by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme --Expand the Circle: Reach All Victims -- highlights how the investment of communities in crime victims expands the opportunity for victims to disclose their victimization, connect with services, and receive the support they need. The theme also acknowledges the many barriers facing victims of crime especially those with disabilities, LGBTQ victims, older adults, those with limited English proficiency, American Indians and Alaska Natives, and others from historically marginalized communities.
OVC and the USAO encourage widespread participation in the week’s events and in other victim-related observances throughout the year. DOJ will host OVC’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C., on April 13, 2018, to honor outstanding individuals and programs that serve victims of crime. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, visit OVC’s website at www.ovc.gov.
Two More Sentenced for Large-Scale Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Two more members of a large-scale conspiracy to distribute methamphetamine in Greene County, Mo., were sentenced in federal court today.
Eduardo Diaz, 53, of Las Vegas, Nev., and Amber Vantuyl, 36, of Springfield, Mo., were sentenced by U.S. District Judge M. Douglas Harpool. Diaz was sentenced to 12 years in federal prison without parole. Vantuyl was sentenced to seven years and 10 months in federal prison without parole.
Both Diaz and Vantuyl pleaded guilty participating in a conspiracy to distribute methamphetamine. In total, the quantity of pure methamphetamine involved in the conspiracy, which lasted from October 2013 to Feb. 29, 2016, weighed in excess of 4.5 kilograms. The methamphetamine distributed during the conspiracy, according to court documents, primarily originated from Mexico and was smuggled to Missouri.
According to court documents, a steady stream of purchasers came to the home of the conspiracy’s leader, Patrick R. Brigaudin, 55, of Springfield, to purchase methamphetamine from him, or to deliver methamphetamine to him. On Feb. 29, 2016, Diaz transported approximately 12 pounds (5.4 kilograms) of methamphetamine and six pounds of heroin to Brigaudin’s residence. When he arrived in Missouri, Diaz picked up co-defendant Adrian Ortiz-Corrales, 43, also of Las Vegas, and they traveled together to Brigaudin’s residence to deliver the methamphetamine and heroin. While they were removing the methamphetamine from a vehicle, they and Brigaudin were arrested.
Vantuyl admitted that she possessed methamphetamine, which she had obtained from Brigaudin, and some or all of which she intended to distribute to another person.
Brigaudin was sentenced on March 21, 2018, to 30 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to a related money-laundering conspiracy. Ortiz-Corrales also pleaded guilty to the drug-trafficking conspiracy and is scheduled to be sentenced on Tuesday, April 10, 2018.
Seven defendants have been sentenced in this case. Richard Todd Sherwood, 59, of Willard, Mo., was sentenced on March 27, 2018, to eight years and 10 months in federal prison without parole. Jennifer Minor, 42, of Springfield, was sentenced on March 14, 2018, to seven years and 10 months in federal prison without parole. William Frank Eft, 67, of Springfield was sentenced on March 21, 2018, to six years in federal prison without parole. Co-defendant Gayla Rochelle Phillips, 42, of Willard, Mo., was sentenced on March 21, 2018, to three years in federal prison without parole.
Eight co-defendants have pleaded guilty and await sentencing.
This case is being prosecuted by United States Attorney Timothy A. Garrison and Supervisory Assistant U.S. Attorney Randall Eggert. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Ozark, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, COMET (the Combined Ozarks Multijurisdictional Enforcement Team) and the South Central Drug Task Force.
Two Maryland men admit to firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two men from Federalsburg, Maryland, have admitted to a their roles in a conspiracy involving the sale and transfer of firearms, United States Attorney Bill Powell announced.
Thorn Ashton Guessford, age 26, and Stephen Clark Krieger, age 66, each pled guilty to one count of “Conspiracy.” They admitted to being a part of a conspiracy to transfer and sell firearms across state lines from May until July 2017 in Berkeley County, West Virginia and elsewhere.
Guessford and Krieger each face up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul T. Camilletti is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
The United States and Missouri Reach Agreement with Doe Run Resources Corporation on Cleanup of More Than 4,000 Lead-Contaminated Residential Yards in MissouriRead the Press Release
The United States, together with the State of Missouri, announced a consent decree today that requires the Doe Run Resources Corporation (Doe Run) to clean up more than 4,000 lead-contaminated residential properties near the Big River Mine Tailings Site in St. Francois County, Missouri. The consent decree is subject to a 30-day public comment period.
According to the settlement terms, Doe Run is required to excavate lead contaminated soil on approximately 4,100 affected residential properties, and to perform additional cleanup at the Hayden Creek mine waste area.
“Under today’s action by DOJ, EPA, and the State of Missouri, Doe Run has agreed to take significant actions to address lead contamination at thousands of residential properties in St. Francois County,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “Part of the ‘Old Lead Belt,’ this area is in the midst of one of the largest former lead mining districts in the world. Timely action to clean up these contaminated areas is vital to the surrounding communities.”
“Protecting our communities from the toxic effects of lead is one of Administrator Pruitt’s top priorities,” EPA Region 7 Administrator Jim Gulliford said. “I am pleased that this agreement will result in the cleanup of more than 4,000 residential properties, helping to protect the residents of St. Francois County.”
Historical mining activities in St. Francois County released hazardous heavy metals, including lead, cadmium, and zinc, onto residential properties. This settlement is a mixed funding arrangement where EPA will contribute up to $31.54 million toward the cleanup, which is estimated to cost a total of $111 million.
Lead exposure can cause a range of adverse health effects, from behavioral disorders and learning disabilities to seizures and death, putting young children at the greatest risk because their nervous systems are still developing. During the 2013 to 2016 period, there were approximately 200,000 children across the nation ages 1-5 years with elevated blood lead levels above 5 micrograms per deciliter, the reference level that the Centers for Disease Control and Prevention uses to identify children with blood lead levels that are much higher than most children’s levels and who require case management.
In the three zip codes comprising the majority of the Big River Mine Tailings Site, between 9.3 percent and 16.7 percent of children have an elevated blood lead level above 5 micrograms per deciliter.
Reducing childhood lead exposure and addressing associated health impacts is a top priority for the Trump Administration and EPA. On February 15, EPA Administrator Scott Pruitt hosted key members of the Trump Administration to collaborate on a federal strategy making childhood lead exposure a priority for their respective departments and agencies.
Through the Superfund Task Force he established in May 2017, Administrator Pruitt is also revitalizing EPA’s Superfund Program to prioritize and take action to expeditiously establish control over any Superfund site where the risk of human exposure is not fully controlled. The cleanup of these residential properties reflects EPA’s commitment to reduce human exposure, especially children’s exposure, to hazardous substances.
The consent decree was lodged in the U.S. District Court for the Eastern District of Missouri. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will available for viewing at www.justice.gov/enrd/Consent_Decrees.html.
Texas Businessman Pleads Guilty to Participating in Multi-Million Dollar Fraud Scheme that Exploited Big Crow Program Office at Kirtland Air Force BaseRead the Press Release
ALBUQUERQUE – Jose Diaz, 58, a businessman from El Paso, Texas, pleaded guilty today in federal court in Albuquerque, N.M., to participating in a fraudulent scheme to defraud the United States out of millions of dollars through contracts involving the now defunct Big Crow Program Office at Kirtland Air Force Base in Bernalillo County, N.M.
Diaz entered his guilty plea to three counts, a conspiracy charge and two fraud charges, of the 46-count Indictment in which he is charged. Diaz’ plea agreement, attached to this press release, includes a nine and a half page admission of facts in which he acknowledges and accepts responsibility for the criminal conduct attributed to him in the indictment.
Diaz remains on conditions of release pending his sentencing hearing, which has yet to be scheduled. His sentencing exposure on the charges to which he pleaded guilty, is discussed below. Under the terms of the plea agreement, the United States will move to dismiss the remaining charges against Diaz after his sentencing hearing.
Summary of the Indictment
Diaz and three co-defendants, Milton Boutte, 72, of Moriarty, N.M., George Lowe, 56, of Fort Washington, Md., and Arturo Vargas, 55, of El Paso, Texas, were indicted in Nov. 2017, in a 46-count indictment charging them with perpetuating a fraudulent scheme to defraud the United States from Oct. 2004 through Feb. 2009, in Bernalillo County, N.M., and elsewhere. The indictment generally alleged that the defendants perpetuated their scheme by submitting fraudulent invoices to federal agencies and fraudulently participating in a government program intended to promote minority-owned small businesses. According to the indictment, beginning in fall 2004, Boutte, who was then the Director of the Big Crow Program Office, and Lowe, a lobbyist, conspired and schemed with Diaz and Vargas, owners of minority-owned small businesses who had contracts with the Big Crow Program Office, to pay lobbyists, consultants and contractors with funds fraudulently obtained from the United States. The defendants allegedly did so even though the Big Crow Program Office was not authorized to lobby or to expend appropriated funds for lobbying activities under the contracts they were operating under.
The indictment alleged that the defendants facilitated their fraudulent scheme by exploiting a U.S. Small Business Administration (SBA) program intended to promote the development of small businesses owned by socially and economically disadvantaged individuals by making them eligible to obtain sole-source contracts from government agencies without competitive bidding. In April 1995, Diaz enrolled his company, Miratek, in the SBA program and in 2004 Miratek received a sole-source contract to provide technical and managerial support for the Big Crow Program Office. After the sole-source contract was awarded to Miratek, the defendants allegedly conspired fraudulently to misapply funds to pay Lowe and other lobbyists for lobbying on Big Crow’s behalf, allegedly diverting at least $529,000 of the contract funds to pay Lowe and his firm, Broadcreek Associates. This allegedly violated the conditions of the SBA program and of Miratek’s contract because lobbying services were not within the authorized scope of work and because Lowe was not an employee of Miratek. In furtherance of their alleged frauds, the defendants allegedly disguised the nature of the claims for services purportedly provided by Lowe and other lobbyists.
The indictment alleged that, in April 2004, after Miratek’s eligibility for the SBA program expired, the defendants created a joint venture to take its place in the fraudulent scheme. According to the indictment, Diaz and Vargas created a joint venture known as Vartek, LLC, to afford Diaz the ability to continue to have access to sole-source contracts under the SBA program and to enable the defendants to continue to perpetuate their scheme to defraud the United States. The indictment alleges the SBA relied on the promises and representations of Diaz and Vargas and approved the Vartek joint venture on Dec. 20, 2005. Vartek was awarded two sole-source contracts, valued at approximately $3,209,116 and $3,847,939, respectively, to provide technical and analytical support for the Big Crow Program Office similar to the contracts previously awarded to Miratek.
The indictment further alleged that Diaz and Vargas misappropriated funds authorized under the Vartek contracts to pay Lowe and other unauthorized lobbyists, consultants and contractors at Boutte’s direction. Diaz and Vargas allegedly submitted fraudulent invoices to the U.S. Army Contracting Agency containing claims for payment for services purportedly provided by Lowe and other lobbyists, consultants and contractors. To conceal and disguise the nature of those payments, the defendants allegedly misrepresented in those invoices that Lowe and other lobbyists, consultants and contractors were Vartek employees. To further disguise the diversion of large sums, the defendants allegedly made fictional claims for work purportedly performed under the contracts by other persons. The defendants allegedly fabricated the hours that those purported employees worked on the contracts. Diaz and Vargas allegedly falsely represented that the lobbyists and consultants were “project managers” and billed the government at or near the highest rate allowed under the contracts. In aggregate, the defendants fraudulently claimed and obtained payments under the Vartek contracts totaling more than $5,800,000 for lobbyists, consultants and unauthorized contractors, of which at least $506,000 was diverted and paid to Lowe and his firm, Broadcreek Associates. Diaz also falsified and fabricated the hours that he himself worked under those contracts.
The indictment includes forfeiture provisions requiring that the defendants forfeit to the United States any property, real or personal, which constitutes or is derived from proceeds of their crime if the defendants are convicted of the offense of conspiracy to commit wire fraud.
Statutory Penalties for Charges in Indictment 17-CR-3338-JB
Count 1 charges Boutte, Diaz, Vargas and Lowe with conspiracy to defraud the United States with respect to claims, in violation of 18 U.S.C. § 286, and carries a maximum penalty of ten years of imprisonment and a fine of not more than $250,000 or twice the pecuniary loss or gain.
Count 2 charges Boutte, Diaz, Vargas and Lowe, with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and carries a maximum penalty of 20 years of imprisonment and a fine of not more than $250,000 or twice the pecuniary loss or gain.
Counts 3 and 4 charge Boutte, Diaz and Vargas with fraud against the United States, in violation of 18 U.S.C. § 1031, and aiding and abetting such fraud, in violation of 18 U.S.C. § 2. Each charge carries a maximum penalty of 20 years of imprisonment and a fine not more than $5,000,000 if the loss is less than $500,000, but not to exceed $10,000,000 in the aggregate.
Counts 5 through 46 charge certain of the defendants with making false, fictitious and fraudulent claims, in violation of 18 U.S.C. § 287, and aiding and abetting the making of such claims, in violation of 18 U.S.C. § 2. Each charge carries a maximum penalty of five years of imprisonment and a fine of not more than $250,000. Counts 5 through 9 charge Boutte, Diaz and Lowe; Counts 10 through 22 charge Boutte, Diaz, Vargas and Lowe; Counts 23 through 24 charge Boutte, Diaz and Vargas; and Counts 25 through 46 charge Boutte, Diaz and Vargas.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Major Procurement Fraud Unit of the U.S. Army Criminal Investigations Command, Defense Criminal Investigations Services, Defense Contract Audit Agency – Investigative Support, and U.S. Small Business Administration Office – Office of Inspector General, and General Services Administration – Office of Inspector General. Assistant U.S. Attorneys Timothy S. Vasquez and Jeremy Peña are prosecuting the case.
Plea AgreementTahlequah Man Pleads Guilty to Possession of A Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nicholas Ryan Renfro, age 25, of Tahlequah, Oklahoma, pled guilty to Possession Of A Counterfeit Obligation Of The United States, in violation of Title 18, United States Code, Section 474(a), punishable by not more than 25 years imprisonment, a fine up to $250,000.00 or both.
The Indictment alleged that on or about January 10, 2018, in the Eastern District of Oklahoma, the Defendant, Nicholas Ryan Renfro, did knowingly have in his possession and custody, with intent to sell or otherwise use, a falsely made and counterfeited one-hundred-dollar Federal Reserve Note, Series: 2009A, Serial No. LF255122509J, Quadrant # 4, Face Plate 301, Back Plate 397, Federal Reserve Bank F6, made after the similitude of obligations issued under the authority of the United States.The charges arose from an investigation by the Tahlequah Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Secret Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Sweeping Two-Day Operation Targets International Organized Crime in Sacramento Area NeighborhoodsRead the Press Release
SACRAMENTO, Calif. — Today, U.S. Attorney McGregor W. Scott, FBI Special Agent in Charge Sean Ragan, DEA Special Agent in Charge John J. Martin, Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin, and IRS Criminal Investigation Assistant Special Agent in Charge Cindy Chen announced one of the largest residential forfeiture efforts in the nation’s history in a multi-agency effort to eradicate criminal enterprises operating in neighborhoods throughout the Sacramento region.
“Transnational criminal organizations are a blight on our communities, bringing dangerous drugs to our streets and trying to impose a false sovereignty over our neighborhoods,” Attorney General Sessions said. “The day I was sworn in as Attorney General, President Trump ordered me to make dismantling these organizations a priority, and we are carrying out that order with vigor. Today we take a major step toward that end using civil asset forfeiture, which is a key tool that helps us defund organized crime and weaken the criminals and the cartels. We have searched and filed forfeiture actions against dozens of houses allegedly used for criminal activity by Chinese drug traffickers, making this one of the largest residential forfeiture actions in American history. I want to thank all of our fabulous OCDETF members with the FBI, DEA, the Marshals Service, ICE, the IRS, Homeland Security Investigations, and our state and local partners with the California Highway Patrol, the Sacramento and Placer County Sheriffs’ Offices, and the Elk Grove police. They have helped make Sacramento safer. At the Department of Justice, we will remain focused on carrying out President Trump’s order and keeping dangerous and illegal drugs out of our country.”
“When criminal organizations funded by money from China reach into our cities to profit from illegal activity, our communities suffer,” said U.S. Attorney Scott. “These marijuana grow operations are illegal under federal and state law and are used to distribute marijuana all over the United States. They are a blight on our neighborhoods and create an unsafe environment for the men, women, and children who live there. The scope of this enforcement operation sends a clear message to international organized crime: get out of our neighborhoods. If you don’t, we will pursue you with all of the resources available to the federal government, seize your assets, search your properties, and target you for criminal prosecution. The success of this operation speaks to the effective partnerships across the federal and local law enforcement community and our united commitment to reduce violent crime in our residential neighborhoods by taking them back from criminal organizations with international ties and financing.”
“The FBI is committed to working with its federal, state, and local partners to disrupt and dismantle transnational organized criminal enterprises that place financial gain from their illicit activities ahead of the safety, security, and health of the residential communities they have hidden within,” said Special Agent in Charge Sean Ragan of the Federal Bureau of Investigation Sacramento Field Office. “Our partnerships within the intelligence and law enforcement communities are essential to ensure identification and coordinated investigation of those who threaten our neighborhoods with crimes such as drug trafficking, money laundering and human trafficking.”
“This operation targeted a sophisticated large-scale organized criminal network operating in our backyard,” said DEA Special Agent in Charge John J. Martin. “Individuals looking for opportunity chose the Sacramento region to set up shop and profit. DEA and our law enforcement partners will not stand for this and the message has been sent to those looking to invade our area with similar aspiration – you are not welcome. The citizens of our community deserve safe neighborhoods and we will work every day to ensure it.”
“Homeland Security Investigations has unique investigative authorities and has lent vast resources of specialized teams from across the country for this large-scale joint operation,” said Ryan L. Spradlin, Special Agent in Charge for HSI overseeing Sacramento. “The work on this case highlights our signature transnational investigative authorities and how we are able to help tackle these types of criminal organizations working side-by-side with all of our federal partners to make our communities safer.”
“This was a large-scale operation, with millions of dollars coming into the US from China,” said Cindy Chen, Assistant Special Agent in Charge, IRS Criminal Investigation. “This criminal organization used foreign money to purchase homes and turned them into marijuana grow houses; all at the cost of innocent neighborhoods. We are proud to provide our financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
On April 3 and 4, 2018, hundreds of federal agents and local law enforcement officers executed search warrants at approximately 74 houses suspected of being used by an international organization for marijuana cultivation, as well as two related business offices. Simultaneously, civil forfeiture actions were filed against more than 100 houses in the Sacramento region suspected of being related to this criminal organization and used as indoor marijuana grows. Some of the houses searched during this operation are subject to the forfeiture action. This represents one of the largest residential forfeiture efforts in the nation’s history.
Since 2014, state and federal law enforcement agencies have been investigating a number of indoor marijuana grows in residential neighborhoods throughout the Sacramento area. Common elements in some of the cases started to emerge: the down payments on the houses were financed by wires mainly from Fujian Province, in China; they used common Sacramento realtors; they used hard-money lenders rather than traditional banks; and they used straw buyers. The houses would then be converted into large-scale marijuana grows that often occupied a substantial portion, if not all, of the house and frequently involved hundreds or thousands of marijuana plants, which were later processed and distributed to other parts of the country, particularly the Eastern United States.
Such large-scale indoor grows violate federal and state law, as well as local codes and ordinances throughout the region. Further investigation found houses in the cities of Sacramento and Elk Grove and the counties of Sacramento, Calaveras, Placer, San Joaquin, El Dorado, Yuba, and Amador. The houses tended to use an extraordinary amount of electricity per month due to high-wattage lighting, circulatory fans, and other equipment, posing fire and environmental hazards; and frequently were left damaged or uninhabitable due to the grow operations. The influx of these marijuana cultivation sites into neighborhoods creates a risk of increased crime in from burglaries, robberies, and related activity. As of this afternoon, agents have seized approximately 61,050 marijuana plants from the houses and approximately 200 kilos of processed marijuana. They have also seized 15 firearms.
This operation was conducted by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the IRS Criminal Investigation with assistance from the U.S. Marshals Service, the Sacramento County Sheriff’s Office, the Elk Grove Police Department, the California Highway Patrol, the Placer County Sheriff’s Office, and the U.S. Customs and Border Protection Air and Marine Operations.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) effort. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Swanzey Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONCORD – David Maclean, 71, of Swanzey, New Hampshire, pleaded guilty in federal court to possessing child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, the investigation began in July of 2017 with the Maricopa County Sherriff’s Department Cyber Crimes Unit in Phoenix, Arizona. Maclean previously resided in Arizona. In September of 2017, law enforcement officers executed a search warrant at the defendant's residence. A review of various electronic devices found in the residence showed that they contained images and videos of child pornography.
Maclean is scheduled to be sentenced on July 13, 2018.
“Protecting children is a high priority of the U.S. Attorney’s Office and our law enforcement partners,” said U.S. Attorney Murray. “Child pornography crimes cause untold amounts of damage to their young victims. We will continue to work closely with our law enforcement partners to identify and prosecute those who possess, manufacture or distribute child pornography.”
“Homeland Security Investigations (HSI) is dedicated to working together with our law enforcement partners to bring about justice in child exploitation cases like this one,” said Michael Shea, Acting Special Agent in Charge, HSI, Boston. “We will continue to take a coordinated team effort and ensure that child predators, whether they produce or distribute these vile, disturbing images be held accountable for their offenses.”
This matter was investigated in New Hampshire by the Internet Crimes Against Children Task Force and Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Helen White Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
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Statement by Attorney General Sessions on National Guard DeploymentRead the Press Release
Attorney General Jeff Sessions issued the following statement on border security: “Earlier this week, media outlets reported that a so-called ‘migrant caravan’ was making its way through Mexico with the intent of illegally crossing the southern border of the United States. The President was clear that this caravan needed to be stopped before it arrived at our southern border, and his efforts now appear to be successful. But let me be clear as well: we will not accept the lawlessness of these types of efforts and those who choose to violate our laws, and those who conspire to assist others to violate our laws, will face criminal prosecution.
“When I visited Nogales, Arizona, in April 2017, I announced my direction to federal prosecutors to prioritize the prosecution of all illegal entry, illegal reentry, and alien smuggling offenses. We have surged hundreds of immigration judges to our border over the last year. We hired new judges at the fastest pace ever. We added performance metrics to ensure that these cases aren’t languishing in the courts while illegal aliens spend years living in our country without consequences. We will have a more efficient and effective immigration court system that supplies due process. As such, aliens who enter our country illegally should be aware that the government will use any and all lawful tools, including expedited removal and prompt immigration proceedings, to ensure that our immigration courts will not be burdened with cases that lack merit under the law.
“But this will not be enough if Congress does not act to pass clear, fair, and effective legislation that ends the illegality and creates a system that serves the national interest is crucial at this time. It is essential for Congress to act.
“The Department of Justice fully supports the efforts of the Departments of Defense and Homeland Security announced today to secure our border. I will soon be announcing additional Department of Justice initiatives to restore legality to the southern border.”Springfield Family Among Seven Defendants Indicted for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man along with his three sons and a daughter, another Springfield resident and a Columbia, Mo., woman have been indicted by a federal grand jury for their roles in a conspiracy to distribute heroin.
Lucian Robinson, also known as “OG,” 60, of Springfield; his three sons, Charles A. Robinson, also known as “Big C,” 37, of Springfield, Corey L. Robinson, also known as “C Money,” 34, address unknown, and Brian M. Robinson, also known as “Bubba,” 34, of Memphis, Tenn.; his daughter, Brandie R. Robinson, also known as “Pooh,” 37, of St. Louis, Mo.; and Cordny D. Adams, 29, of Springfield, and Crystal D. Birdsong, also known as “Crystal D. Brinkley,” 34, of Columbia, Mo., were charged in a 20-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Tuesday, March 27, 2018. That indictment was unsealed and made public upon the arrest and initial court appearance of Lucian Robinson on Tuesday, April 2, 2018.
Each of the seven co-defendants is charged with participating in a conspiracy to distribute one kilogram or more of heroin in Cole, Callaway and Greene Counties from July 1, 2015, to March 27, 2018.
In addition to the drug-trafficking conspiracy, Brandie Robinson is charged with three counts of distributing heroin in Greene County.
Brian Robinson is also charged with three counts of distributing heroin in Greene County and two counts of possessing heroin with the intent to distribute.
Corey Robinson is also charged with one count of distributing heroin in Greene County and two counts of possessing heroin with the intent to distribute in Greene County. Corey Robinson is also charged with one count of being a felon in possession of a firearm. Corey Robinson, who has been convicted of a felony, allegedly was in possession of a Taurus 9mm semi-automatic pistol on March 7, 2017.
Lucian Robinson is also charged with two counts of possessing heroin with the intent to distribute in Greene County. Lucian Robinson and Crystal Birdsong are charged together in one count of possessing heroin with the intent to distribute.
Adams is also charged with two counts of distributing heroin in Greene County and one count of possessing heroin with the intent to distribute in Greene County.
Charles Robinson is also charged with one count of possessing heroin with the intent to distribute in Greene County.
The charges contained in this indictment 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.
This case is being prosecuted by Supervisory Assistant U.S. Attorneys Randall D. Eggert and Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Springfield, Mo., Police Department and the Jefferson City, Mo., Police Department.
South Texas Gang Member Ordered to PrisonRead the Press Release
BROWNSVILLE, Texas – A 29-year-old Brownsville resident has been ordered to prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Rafael Gandaria pleaded guilty Sept. 20, 2017.
Today, U.S. District Judge Rolando Olvera ordered him to prison for a total of 87 months in prison. At the hearing, the court heard that Gandaria is affiliated with Partido Revolucianario Mexicano, a security threat group in south Texas and Mexico, and that the sentence was necessary to protect the public from Gandaria’s future crimes.
The court also heard additional information regarding Gandaria’s criminal history which was determined to be in the highest criminal category under the U.S. Sentencing Guidelines. His convictions include simple battery in Georgia in 2005, attempted robbery in Brownsville in 2007, assault on a public servant in Brownsville in 2011, assault family violence in Brownsville in 2011, evading arrest in Brownsville in 2011, resisting arrest in 2013 in Florida and possession of a controlled substance in Minnesota in 2014.
As a convicted felon, he is prohibited from possessing a firearm per federal law.
His crimes included violent behavior while being incarcerated for this firearms charge. Judge Olvera also heard argument relating to Gandaria’s violence towards jailers while being detained and his transportation to and from jail for court settings. Judge Olvera noted Gandaria lacked remorse for his actions before handing down the sentence.
Gandaria had posted a rap video on Facebook in which he displayed a Smith & Wesson SD40VE pistol. In November 2016, authorities executed a search warrant at his residence, at which time they located and seized that firearm.
Gandaria will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation. Assistant U.S. Attorney Jason Corley is prosecuting the case.
Six Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging ALCIBIADES UVANDO-DE LAO, age 45, of Mexico, DANIEL LUIS PEREZ-FLORES, age 34, of Mexico, ORLANDO ECHEVERRIA-HERNANDEZ, age 40, of El Salvador, SELEDONIO MARTINEZ, age 52, of El Salvador, ALFREDO MENDIOLA-ALVAREZ, age 40, of Mexico, and JESUS CERVANTEZ-RUIZ, age 48, of Guatemala, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, UVANDO-DE LAO, previously deported twice and found in Lenoir County, PEREZ-FLORES, previously deported five times and found in Sampson County, and ECHEVERRIA-HERNANDEZ, previously deported and found in Cumberland County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
MARTINEZ, found in Wake County, is alleged to have been previously deported subsequent to a felony conviction (making a false statement). Therefore, if convicted, he faces a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
MENDIOLA-ALVAREZ, found in Wake County, and CERVANTEZ-RUIZ, found in Bladen County, are alleged to have been previously deported subsequent to aggravated felony convictions. MENDIOLA-ALVAREZ is alleged to have been previously convicted of indecent liberties with a child and illegal reentry subsequent to an aggravated felony conviction. CERVANTEZ-RUIZ is alleged to have been previously convicted of assault with a deadly weapon inflicting serious injury and illegal reentry subsequent to an aggravated felony conviction. Therefore, if convicted, they would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.