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Tuesday 6 February 2018
Former Morgan Stanley Executive and Brother of Former Bank of Oswego Vice President Receives Prison Sentence for FraudRead the Press Release
PORTLAND, Ore. – On Tuesday, February 6, 2018, U.S. District Court Judge Michael H. Simon sentenced Gregory Walsh, to 24 months in federal prison followed by a three-year term of supervised release. Walsh had previously pleaded guilty to one count of conspiracy to commit mail and wire fraud in violation of 18 U.S.C. §1349 on April 16, 2016.
According to court documents, beginning in February 2011, Walsh, an Assistant Vice President at Morgan Stanley, worked with his brother Geoffrey Walsh, a former Vice President at the Bank of Oswego, to persuade an Arizona woman into loaning his brother more than $1.1 million for a real estate investment scheme. Walsh told the woman, a client of his at Morgan Stanley and recent widow, that the money would be used to purchase three condominiums in the Palm Springs, California area that would be titled in her name and sold within one year.
Contrary to the promises made, Geoffrey Walsh titled all three properties in the name of his business and did not provide loan or title documentation to his brother’s client. Between May and July 2012, Geoffrey Walsh sold two of the properties without the knowledge or permission of the client and used the proceeds to satisfy personal financial obligations. Later, in November 2012, after learning that his brother had sold the two properties without repaying his client, Walsh failed to reveal this information to the client.
In January 2013, Walsh was again contacted by his brother to gauge the same client’s interest in loaning him an additional $2 million for a real estate development project in Oregon. When discussing the potential loan, the client asked Walsh if his brother was involved in the transaction. Walsh lied to her saying that he was not. Soon thereafter, Walsh transferred the money from his client’s Morgan Stanley account to the client trust account of Geoffrey Walsh’s lawyer without the investor’s knowledge or approval. On March 5, 2013, the majority of these funds – over $1.7 million – were used to pay the balance of a line of credit at the Bank of Oswego for the benefit of Geoffrey Walsh. Geoffrey Walsh spent the remainder of the funds on other financial obligations.
Throughout the duration of the conspiracy, Walsh repeatedly lied to his client about the status her loans, his brother’s financial and legal problems and his own lies in initiating both transactions.
During this same two-year period, Walsh initiated two other transactions that purportedly occurred on behalf of his client. In December 2011, a $100,000 wire was sent from his client’s Morgan Stanley account to a close friend of Geoffrey Walsh’s. Later, in January and February 2012, a transfer of $2 million was sent from the client’s account for an investment in a Colorado-based cannabis company. The investment was discussed with, but never approved by, Walsh’s client. The cannabis company later returned the $2 million loan after meeting with the FBI. The $100,000 transfer was never returned. Walsh made over $18,000 in commissions on these transactions before leaving Morgan Stanley.
Geoffrey Walsh pleaded guilty to one count each of conspiracy to make false bank records, conspiracy to commit mail and wire fraud, and wire fraud and was sentenced to 30 months in federal prison and three years’ supervised release on January 24, 2018.
This case was investigated by the FBI and the FDIC Office of Inspector General (OIG-FDIC) and prosecuted by Claire M. Fay, Michelle Holman Kerin, and Quinn P. Harrington, Assistant U.S. Attorneys for the District of Oregon.
Former Meriden Resident Sentenced to Prison for Stealing from EmployerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that YOLANDA SILVERIO, 54, of Austin, Texas, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 10 months of imprisonment, followed by three years of supervised release, for theft in connection with health care. Judge Bryant also ordered SILVERIO to perform 150 hours of community service.
According to court documents and statements made in court, SILVERIO, who formerly resided in Meriden, was employed as an Eligibility Coordinator for a Connecticut company that administers trust funds for public and private sector health benefit plans. As Eligibility Coordinator, SILVERIO received checks from individual participants in a particular health plan as payment for their union-related health benefits. Between May 2013 and July 2014, SILVERIO deposited 49 benefit checks totaling $35,461.34 into her own bank accounts.
In 2004, SILVERIO was convicted in federal court for embezzling more than $105,000 from two Connecticut businesses by forging signatures on business checks and was sentenced to 10 months of imprisonment, with five months to serve in home detention with electronic monitoring. SILVERIO’s supervised release was subsequently revoked and she was sentenced to an additional six months of imprisonment for failure to make a required lump sum restitution payment and for material misrepresentations to her probation officer.
Judge Bryant ordered SILVERIO to pay restitution in the amount of $35,461.34, and to notify any future employers in writing of her two prior fraud convictions.
SILVERIO pleaded guilty on February 24, 2017.
SILVERIO, who is released on a $15,000 bond, was ordered to report to prison on March 26, 2018.
This matter was investigated by the U.S. Department of Labor – Office of the Inspector General, and the U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office. The case was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Former High Point Regional Hospital Employee Pleads Guilty to Stealing over $3 MillionRead the Press Release
GREENSBORO, N.C. - United States Attorney Matthew G.T. Martin of the Middle District of North Carolina announced that KIMBERLY RUSSELL HOBSON, 46, of Kernersville, North Carolina, pleaded guilty today in federal court in Winston-Salem before the Honorable Thomas D. Schroeder to felony charges of wire fraud, bank fraud, and aggravated identity theft.
HOBSON was employed in accounting and finance at High Point Regional Hospital for more than 20 years, ending in August 2017. HOBSON pleaded guilty to the above charges in connection with embezzling funds from the hospital. The indictment alleges that HOBSON stole in excess of $3,000,000.00 from the hospital. The exact amount of the loss will be determined by the Court at sentencing.
HOBSON faces a maximum penalty of thirty-two years confinement. The plea agreement requires HOBSON to make restitution to the hospital. Sentencing will occur in Winston-Salem on May 2, 2018.
The case was investigated by the Department of Treasury - Office of Inspector General, United States Secret Service, Guilford County Sheriff's Department, and High Point Police Department. The case was prosecuted by Assistant United States Attorneys Robert M. Hamilton, Lynne P. Klauer, and Anand P. Ramaswamy.
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Former Doctor Sentenced to 75 Months in Prison for Illegally Prescribing Opiates and Committing Health Care FraudRead the Press Release
Rodney Moret of Madison Heights, Michigan was sentenced today to 75 months’ imprisonment for participating in conspiracies to distribute prescription pills illegally and to defraud Medicare, U.S. Attorney Matthew Schneider announced. His crimes include over $15 million of prescriptions drugs, and an additional $6 million in health care fraud.
Schneider was joined in the announcement by Timothy Waters, Acting Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigations and Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of health and Human Services.
Dr. Moret, 67, was sentenced by U.S. District Judge Matthew F. Leitman.
Moret previously pleaded guilty to one count of conspiracy to illegally distribute prescription drugs and one count of conspiracy to commit health care fraud. The pleas were based on Moret’s participation as the sole practitioner at Advance Care Services (ACS), a medical clinic in Southfield, MI. The medical practice purported to be a pain management and HIV infusion clinic, but was actually nothing more than a “pill mill”. The scheme involved patient marketers using “patients” to obtain medically unnecessary controlled substance prescriptions issued by Moret, who at the time was a licensed medical doctor. Medicare was billed for examinations and tests that were not conducted properly or not conducted at all. Once the prescriptions were filled, the marketers sold the drugs on the street (?) in Southeast Michigan.
According to statements made at the plea hearing and evidence submitted at sentencing, the clinic operated from 2010 until 2015 and was owned by defendant Jorge Azar. The day-to-day operations of the clinic were managed by defendant Jellie Villalon. Moret would issue the prescriptions after a cursory examination or no examination at all and often took advantage of the female “patients” who were at the clinic to receive controlled substance prescriptions by sexually molesting or harassing them.
Moret was responsible for illegally distributing over 700,000 dosage units of Hydrocodone, (Vicodin, loratab), more than 240,000 dosage units of Alprazolam, and more than 2 million milliliters of promethazine with codeine cough syrup, worth more than $15 million on the street market. He was responsible for over $6 million in health care fraud.
Hydrocodone, Alprazolam, and promethazine with codeine cough syrup are controlled substances that may be prescribed by a doctor only for a legitimate medical purpose. A doctor must act in good faith in prescribing these medications. These are powerful and addictive drugs. Hydrocodone is in the opioid class, is easily abused, and can lead to addiction and eventual heroin use.
“Physicians who divert prescription drugs to the street market are contributing to the drug epidemic in the country, and we are focusing our enforcement efforts on stopping them,” stated United States Attorney Matthew Schneider.
“Prescribing controlled substances – such as Hydrocodone – outside the scope of professional practice and without a legitimate medical purpose is illegal”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Physicians who in engage in this type of behavior put patient health and safety at risk and exacerbate the opioid crisis. The OIG will continue to work with our law enforcement partners to ensure that those who commit these criminal acts are held accountable.”
“Rodney Moret, a former physician, intentionally fueled the local opioid epidemic by over prescribing addictive medications to patients for his own personal gain,” said Timothy Waters, Acting Special Agent in Charge, Detroit Division of the FBI. “The message should be clear, any doctor or healthcare professional who prioritizes profit or does harm to their patients under the guise of providing health care will be subject to the full investigative resources of the FBI and our law enforcement partners.”
Moret was one of five defendants named in a multi-count first superseding indictment unsealed in February 2016. All defendants, including the owner and manager of ACS, entered guilty pleas to either conspiracy to distribute prescription pills or conspiracy to commit health care fraud.
Based upon his offense conduct in this case, on March 31, 2017, Dr. Moret’s license to practice medicine was revoked by the State of Michigan Department of Licensing and Regulatory Affairs, Bureau of Professional Licensing.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of the General Counsel. The case was prosecuted by Assistant U.S. Attorneys Regina R. McCullough and Michael Heesters.
Ferndale Resident Sentenced for Defrauding the IRSRead the Press Release
A resident of Ferndale was sentenced today to 114 months in prison on convictions connected to a scheme to defraud the Internal Revenue Service, U.S. Attorney Matthew Schneider announced today.
Joining Schneider in the announcement was Manny Muriel, Special Agent-in-Charge of the Detroit Office of the Internal Revenue Service – Criminal Investigation.
Receiving the sentence from U.S. District Judge Judith E. Levy was Durand Micheau, 48. Judge Levy also imposed a 3-year term of supervised release and ordered Micheau to pay restitution in the amount of $360,500 to the U.S. Treasury.
Micheau was convicted by a jury in May 2017 on numerous counts of conspiracy, mail fraud, aggravated identity theft, and engaging in illegal monetary transactions. Micheau’s wife, Sharon Gandy-Michaeu, and two of her brothers, Anthony Gandy and Christopher Gandy, were convicted by a different jury on the same charges in March 2017. Last month Judge Levy sentenced Anthony Gandy to 80 months in prison and Sharon Gandy-Micheau to 72 months in prison. In August 2017, she sentenced Christopher Gandy to 72 months in prison.
The evidence presented at the trials established that the defendants participated in a scheme to defraud the federal government that centered on the filing of over 20 fraudulent Forms 1041, U.S. Income Tax Returns for Estates and Trusts. The returns requested over $1.4 million in refunds based on income tax withholdings that never occurred. The returns resulted in the IRS’s mailing 14 income tax refund checks to the defendants that were payable to the trusts and totaled $940,000. To facilitate the scheme, the defendants obtained employer identification numbers (EINs) for the trusts from the IRS, opened post office boxes, and opened bank accounts in the names of the trusts. The trusts did not exist. The U.S. Treasury refund checks were either deposited into the bank accounts, followed shortly thereafter by large cash withdrawals, or cashed at local check-cashing stores.
In addition, the scheme used the names and identification information of a number of individuals whose purses or wallets had been lost or stolen, and it depended on the assistance of some of the defendants’ close friends and acquaintances.
“These defendants attempted to steal taxpayer money, and they did so by using the identities of innocent victims,” U.S. Attorney Schneider said. “This case is yet another example of how the talented IRS agents in our district are detecting fraud and bringing offenders to justice.”
Special Agent-in-Charge Muriel added, “Our tax system is based on voluntary compliance and relies on the honor system to accurately report income and deductions. Anthony Gandy and his codefendants abused that honor system by creating fictitious tax withholdings in excess of $1.4 million. Today’s sentencing demonstrates that there are consequences for those who willfully file fraudulent returns.”
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Stephen Hiyama and Ross MacKenzie, with the assistance of paralegal Carol Oliver.
Federal Grand Jury Indicts Round Rock Man in Connection with the Kidnapping of Two SistersRead the Press Release
In Austin today, a federal grand jury indicted 44-year-old Terry Allen Miles in connection with the kidnapping of two minors, announced United States Attorney John F. Bash, and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
The federal grand jury indictment charges Miles with two counts of kidnapping. According to court records, on or about December 30, 2017, Round Rock (TX) Police (RRPD) officers conducted a welfare check at the residence of Tonya Ellen Bates because she had not shown up for work that day as expected. The officers subsequently discovered Bates’s body inside the residence. Bates appeared to have suffered from blunt force trauma. Bates was the only individual at the residence at the time of the welfare check and Bates’s 2017 Hyundai Accent was missing. Further investigation revealed Bates had two minor daughters and a roommate named Terry Allen Miles who lived with Bates.
At approximately 1:00 a.m. on December 30, 2017, Miles’s mother received a text message from a phone that belonged to one of the daughters. RRPD officers obtained cell phone information on the children’s two phones. One of the phones was located in a heavily wooded area adjacent to a Wal-Mart store located in Round Rock. Surveillance video from the Wal-Mart showed what appeared to be Miles purchasing numerous camping-related items and then leaving the store in a vehicle appearing to match Bates’s vehicle. The vehicle and a cell phone belonging to one of the minors were subsequently traced heading to Colorado.
On January 3, 2018, deputies with the Las Animas County Sheriff’s Office arrested Miles during a traffic stop near La Vera, Colorado. The two minors, ages 7 and 14, were found safe in the vehicle Miles was driving.
Miles, who remains in federal custody, faces between 20 years and life in federal prison upon conviction. His arraignment has yet to be scheduled.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is innocent until proven guilty in a court of law.
The Federal Bureau of Investigation, United States Marshals Service – Lone Star Fugitive Task Force, and the Round Rock Police Department are conducting this investigation. The Texas Rangers; Central Texas Violent Crimes Task Force; Williamson County (TX) District Attorney’s Office; United States Attorney’s Office – District of Colorado; New Mexico State Police Department; Las Animas County (CO) Sheriff’s Office; Southern Colorado Safe Streets Task Force; Colorado State Patrol; Trinidad (CO) Police Department; Colorado Bureau of Investigations; Huerfano County (CO) Sheriff’s Office; Archuletta County (CO) Sheriff’s Office; Pagosa Springs (CO) Police Department; Rio Grande County (CO) Sheriff’s Office; Federal Bureau of Investigation in Colorado; Durango (CO) Police Department; La Plata County (CO) Sheriff’s Office; Child Protective Services in Texas and Colorado; and, the National Center for Missing and Exploited Children are assisting in this investigation. Assistant United States Attorney Matthew Devlin is prosecuting this case on behalf of the Government.
Essex County, New Jersey, Man Admits Role in $1.5 Million Bank Fraud SchemeRead the Press Release
NEWARK, N.J. – An Orange, New Jersey, man today admitted his role in a scheme that defrauded New Jersey banks out of $1.5 million by deceiving them into crediting certain customer accounts that were controlled by members of the conspiracy, U.S. Attorney Craig Carpenito announced.
Chad Brown, 21, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of bank fraud conspiracy.
According to documents filed in this case and statements made in court:
From September 2015 through May 2017, Brown and others conspired to fraudulently obtain money from two victim banks. First, Brown and others obtained information from actual bank accounts belonging to customers of the two victim banks, including the customers’ bank account numbers and their personal identification numbers. In some instances, Brown and others obtained debit cards associated with the accounts or personally requested access from the account owners.
Afterwards, members of the conspiracy called tellers at the victim bank, posed as bank employees, and deceived the tellers into crediting funds into the above customer accounts.
Once the funds were credited into the customer accounts, members of the conspiracy, including Brown, used debit cards associated with the accounts to obtain the fraudulently credited funds, either by withdrawing the funds directly from ATM machines at victim branch locations or purchasing postal money orders.
The victim banks suffered losses of more than $1.5 million from the scheme.
The charge to which Brown pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for May 15, 2018.
U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, with the investigation.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Criminal Division in Newark.
18-052
Defense counsel: Perry Primavera, Esq., Hackensack, New Jersey
Eagle Butte Man and Woman Sentenced for Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man and woman convicted of Distribution of a Controlled Substance were sentenced on January 2, 2018 and February 5, 2018 respectively, by U.S. District Judge Roberto A. Lange.
Perry Crow, Jr., a/k/a Perry Fiddler, age 23, was sentenced to 4 months in custody, 4 months in home confinement, 3 years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Estrella Fernandez a/k/a Star Fernandez, age 21, was sentenced to time served, 6 months in home confinement, 3 years of supervised release, $500 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Crow and Fernandez were indicted by a federal grand jury on July 11, 2017. Crow pled guilty on October 17, 2017 and Fernandez pleaded guilty on November 15, 2017.
The convictions stem from incidents on August 23, 2016 and August 31, 2016, when Crow and Fernandez knowingly and intentionally distributed Methamphetamine, a Schedule II controlled substance.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. Crow was immediately turned over to the custody of the U.S. Marshals Service.
District Man Pleads Guilty to Murder in Slaying of Man in Northeast WashingtonRead the Press Release
WASHINGTON – Montez Warren, 36, of Washington, D.C., has pled guilty to a charge of second-degree murder while armed for killing a man in Northeast Washington, U.S. Attorney Jessie K. Liu announced today.
Warren pled guilty on Feb. 5, 2018, in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a prison sentence of 15 to 22 years. The Honorable Milton C. Lee scheduled sentencing for April 27, 2018.
According to a proffer of facts submitted at the plea hearing, on the evening of Aug. 20, 2016, numerous people attended a cookout and fish fry in the 1200 block of 18th Place NE, including Warren and the victim, Dante Miller. In the early morning hours of Aug. 21, 2016, the party wore down, and an argument erupted between Mr. Miller and a woman who was with Warren. Warren tried to break up the fight, but the confrontation soon resumed. As the fighting continued to escalate, Warren fired several shots at Mr. Miller. He kept firing his weapon even as Mr. Miller tried to run away. Then, as Mr. Miller fell to the ground, Warren stood over top of him and fired several additional shots. He then rode off in a car. Mr. Miller, 24, died at the scene. An autopsy identified eight gunshot wounds, including one to the chest and one to the abdomen.
An investigation by the Metropolitan Police Department (MPD) led to Warren’s arrest on Oct. 12, 2016. He has been in custody ever since.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences, the Capital Area Regional Fugitive Task Force, the FBI’s Cellular Analysis Survey Team, and the U.S. Park Police. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Paralegal Specialist Sharon Newman and Paralegal Specialist Lornce Applewhite. Finally, she commended the work of Assistant U.S. Attorneys David Misler and Glenn Kirschner, who investigated and prosecuted the case.
Defense Contractor Agrees to Pay over A Half-Million Dollars to Settle False Claims Act Allegations Relating to Charging Unallowable Costs on Army ContractRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Integral Consulting Services, Inc. has agreed to pay the United States $505,838.00 to settle False Claims Act allegations that it submitted false claims to the United States by inflating certain indirect cost rates in connection with work performed on a Department of the Army contract.
The civil settlement was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal and Civil Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army CID.
Integral Consulting Services, Inc. (“ICS”) is a Maryland-based company that provides IT solutions to federal government agencies and commercial organizations. The services ICS provides range from biometric technologies to enterprise IT management and development of software applications. In 2012, ICS was awarded an Army contract, W911W5-12-D-0002, under which it was required to provide the Army’s National Ground Intelligence Center’s Biometric Intelligence Program with identity intelligence analysis support.
The civil settlement agreement resolves allegations that from on or about May 1, 2012 through June 27, 2014, ICS took costs and expenses it and its employees incurred in connection with litigation arising out of a teaming agreement with another contracting company and included the costs and expenses in the General and Administration (“G&A”) indirect cost pool that was spread amongst ICS’s various government contracts, including Army Contract Number W911W5-12-D-0002, and submitted to the United States government. The inclusion of such costs had the effect of inflating the claims paid by the Army to ICS.
The civil settlement resolves United States ex rel. Amit Dalal v. Integral Consulting Services, Inc., Civ. No. GJH-14-2529 (D. Md.), a lawsuit filed by a relator under the whistleblower provision of the False Claims Act. The Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the recovery by the United States. As part of the civil resolution, the relator will receive approximately $92,315.
The claims resolved by the settlement were allegations only about which there has been no judicial finding of liability, and Integral denies liability.
Acting United States Attorney Stephen M. Schenning commended the DCIS and the Army Major Procurement Fraud Unit for their work in the investigation and thanked Assistant U.S. Attorneys Sarah Marquardt and Tarra DeShields who handled this case.
Contractor Admits Stealing from Paterson Municipal Utilities Authority and Jersey City Childhood Development CentersRead the Press Release
NEWARK, N.J. – A Linden, New Jersey, man today admitted conspiring with officials at the Paterson Municipal Utilities Authority (MUA) and the Jersey City Childhood Development Centers Inc. (JCCDC) to fraudulently obtain payments for services he never provided, U.S. Attorney Craig Carpenito announced.
Carnell Baskerville, 51, pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him intentionally conspiring with a former commissioner with the Paterson MUA to commit extortion under color of official right and conspiring with Robert E. Mays, the former Executive Director of the JCCDC, to embezzle and obtain by fraud funds that were under the care and control of the JCCDC, an organization that received more than $10,000 in federal program benefits annually.According to documents filed in this case and statements made in court:
Baskerville was a self-employed contractor based in Linden who provided contracting services for both residential homes and commercial businesses. Around 2014, Baskerville became acquainted with an individual identified in the information as “Coconspirator 1,”who was then a commissioner with the since-dissolved Paterson MUA, which had been created to manage the hydroelectric plant on the Passaic River and care for certain surrounding properties.
Baskerville and Coconspirator 1 entered into an agreement whereby Coconspirator 1, who exercised control over Paterson MUA finances, would approve payments from the Paterson MUA to Baskerville’s company for services rendered, even though both Baskerville and Coconspirator 1 knew that Baskerville had not and would not perform those services.
Between December 2014 and May 2015, Coconspirator 1 wrote a series of Paterson MUA checks totaling $146,500 to Baskerville’s company. Baskerville deposited these checks in his bank account and kicked back a significant percentage in cash to Coconspirator 1 to reward him for his official assistance in carrying out the scheme.
Baskerville entered into a similar scheme with Mays, the Executive Director of the JCCDC, which operated as a non-profit organization created to serve impoverished and disabled children in Jersey City. In February 2014, Baskerville and Mays entered into a purported contract for Baskerville to provide kitchen renovation work on behalf of JCCDC, knowing full well that Baskerville had not and would not perform those services.
In late February 2014, Mays issued a JCCDC check in the amount of $29,675 to Baskerville. Baskerville and Mays met at a check cashing business in Jersey City where they cashed the check and split the proceeds between them.
The count of conspiracy to commit extortion by color of official right carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of conspiracy to commit theft concerning programs receiving federal benefits carries a maximum potential penalty of 10 years in prison and a $250,000 fine. As part of his plea, Baskerville must pay restitution in the amount of $176,175. Sentencing is scheduled for May 16, 2018.Mays pleaded guilty to wire fraud on June 7, 2016 before U.S. District Judge Susan D. Wigenton. On July 31, 2017, he was sentenced to 18 months in prison and ordered to pay restitution in the amount of $257,418.20.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Defense counsel: Arthur Abrams Esq., Jersey City
Columbus man indicted on cocaine distribution chargesRead the Press Release
WHEELING, WEST VIRGINIA – A Columbus, Ohio man was indicted today by a federal grand jury on drug distribution charges, United States Attorney Bill Powell announced.
Jason R. Smoot, age 30, was indicted on one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location,” and one count of “Distribution of Cocaine Base.” Smoot is accused of selling cocaine near the Jensen Playground in Wheeling in June 2017.
Smoot faces up to 40 years incarceration and a fine of up to $2,000,000 for the first count and faces up to 20 years incarceration and a fine of up to $1,000,000 for the second count. 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 Steven L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Colorado Attorney Admits Role in Stock "Pump and Dump" SchemeRead the Press Release
John H, Durham, United States Attorney for the District of Connecticut, announced that DIANE DALMY, 63, of Denver, Colorado, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy stemming from her role in a securities fraud scheme.
According to court documents and statements made in court, DALMY, an attorney, performed securities-related legal work on behalf of several public companies, including Mammoth Energy Group, Inc., a company that later became known as Strategic Asset Leasing Inc.; and Fox Petroleum, Inc. (the “Subject Companies”). Between approximately January 2009 and July 2016, DALMY conspired with others, including William Lieberman, of Boca Raton, Florida, and Christian Meissenn, of Suffield, Connecticut, to defraud investors through a stock “pump and dump” scheme. During the course of the conspiracy, DALMY acted largely at Lieberman’s direction.
As part of the scheme, Lieberman, Meissenn and others induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies, which were essentially shell companies with virtually no legitimate business activities, were controlled by Lieberman and others. After the hype led to artificially-inflated share prices for the company’s stock, Lieberman, Meissenn and others sold their own large positions in the stock at a profit. They then ended the promotion and allowed the share price to plummet, leaving investors holding worthless and unsalable stock. As a result, victim investors lost millions of dollars.
DALMY participated in the conspiracy by writing, and permitting Lieberman to write in her name, fraudulent opinion letters that were used to unrestrict the co-conspirators’ stock so that the stock could be freely traded on the open market (without having to register the stock with the Securities and Exchange Commission). The opinion letters were materially false in various respects, including as to whether the issuing company was a shell company, whether the shareholder was an affiliate of the issuer, whether the transactions described in the letters actually had occurred, and whether DALMY had performed the due diligence that she described in the letters. DALMY also ghost-wrote similarly fraudulent opinion letters for the Subject Companies in another Colorado attorney’s name and permitted Lieberman to do so. These included “adequacy” letters that were posted on a website maintained by an electronic securities marketplace. In general, an “adequacy” letter, which is intended to be relied upon by investors in making investment decisions, accompanies a public filing by an issuer and states that, after appropriate investigation, it is the authoring attorney’s opinion that adequate current information about the issuer is publicly available for investors to review.
At times, DALMY provided the co-conspirators with capital by advancing money from her Lawyer Trust Account (“IOLTA”). These funds belonged to other clients of DALMY’s law practice who did not know that their funds had been advanced to the co-conspirators by DALMY.
Finally, between February 2015 and July 2016, DALMY laundered a portion of the proceeds of the scheme on behalf of the Co-Conspirators. DALMY helped Lieberman to incorporate and open bank accounts for a private company, Queen Asia Pacific Ltd. (“Queen Asia”), which was controlled by Lieberman. These bank accounts were used to receive proceeds of the scheme from a brokerage account in Queen Asia’s name. DALMY periodically received money in Queen Asia’s bank accounts, transferred those funds to her IOLTA, and then transferred the funds again to Lieberman, Meissenn, and their network of stock promoters. In total, DALMY laundered approximately $825,000 on behalf of the co-conspirators through Queen Asia’s bank accounts and her IOLTA.
DALMY’s total gain from her participation in this conspiracy, and related legal work for the Subject Companies, was approximately $30,000.
Judge Meyer scheduled sentencing for May 2, 2018, at which time DALMY faces a maximum term of imprisonment of five years. DALMY is released on a $100,000 bond pending sentenced.
Lieberman, Meissenn and four other individuals have pleaded guilty to various offenses stemming from this scheme.
On January 20, 2017, Corey Brinson, a Hartford-based attorney, was sentenced to 36 months of imprisonment and, on September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment. Meissenn, Lieberman, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., await sentencing.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Cleveland man indicted for firearms crimeRead the Press Release
A federal grand jury charged Khalid Swanson, 43, of Cleveland, with being a felon in possession of a firearm, said U.S. Attorney Justin E. Herdman.
Swanson possessed a Smith & Wesson .380 caliber handgun and ammunition after having been convicted of multiple crimes, including abduction, robbery and trafficking with a firearm.
The case was investigated by the Cleveland Division of Police and the ATF. Assistant U.S. Attorney James Lewis is prosecuting the case.
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 violation. 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.
Citizen of Honduras pleads guilty to reentering the United States illegallyRead the Press Release
LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced today that a citizen of Honduras pleaded guilty last week to reentering the United Staes illegally after having been removed.
Ever Salazar-Espinal, 30, of Honduras, pleaded guilty Thursday before U.S. Magistrate Judge Kathleen Kay to illegal reentry of the United States by an alien following deportation or removal. According to the guilty plea’s factual basis, U.S. Border Patrol agents found Salazar-Espinal October 6, 2017 in Lake Charles and determined that he was in the United States illegally. An immigration records check showed that in 2014, immigration authorities had physically removed Salazar-Espinal from the United States to his native country, Honduras, as ordered by a U.S. immigration court. The records check further showed that the Immigration Court issued the order of removal after Salazar-Espinal was convicted in Nevada for felony possession of credit or debit cards without the cardholder’s consent.
Salazar-Espinal faces up to 10 months in prison, threes years of supervised release and a $250,000 fine. The court set sentencing for April 17, 2018.
Customs and Border Protection and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
Citizen of Ecuador Charged with Illegally Reentering U.S., Failing to Register as Sex OffenderRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on February 1, 2018, a federal grand jury in Hartford returned an indictment charging ENRIQUE FAJARDO MARIN, 39, a citizen of Ecuador recently residing in Danbury, with one count of illegally reentering the U.S., and one count of violating the Sex Offender Registration and Notification Act (SORNA).
FAJARDO appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charge.
According to court documents and statements made in court, in December 2011, FAJARDO was convicted in Danbury Superior Court of illegal sexual contact with a minor and risk of injury. He was sentenced to 18 years of incarceration, execution suspended after 10 years, with 20 years of probation. FAJARDO also was required to register as a sex offender for a period of 10 years.
On February 6, 2016, FAJARDO was deported from the U.S. to Ecuador.
On June 28, 2017, FAJARDO was arrested in Worcester, Massachusetts. It is alleged that he had illegally reentered the U.S. and had been residing in the Danbury area as early as May 1, 2017. It is further alleged that FAJARDO had failed to register as a sex offender in Connecticut.
FAJARDO has been detained since his arrest.
If convicted, FAJARDO faces a maximum term of imprisonment of 20 years for illegally reentering the U.S., and a maximum term of imprisonment of 10 years for failing to register as a sex offender.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated the U.S. Department of Homeland Security, Immigration and Customs Enforcement, and the U.S. Marshals Service, with the assistance of Connecticut State Parole. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Cape Air Employee Pleads Guilty to Smuggling Cocaine through Cyril E. King AirportRead the Press Release
St. Thomas, USVI – Wayne Fahie, 31, of St. Thomas, pleaded guilty today in District Court to one count of conspiracy to possess with intent to distribute cocaine, and one count of possession with intent to distribute cocaine, United States Attorney Gretchen C.F. Shappert announced.
According to the plea agreement filed with the court, on July 30, 2017, Fahie, and his co-defendant Roy Hodge, III, 41, also of St. Thomas, attempted to smuggle four kilograms of cocaine through the Cyril E. King airport. Fahie, who is a Cape Air employee, used his security clearance to access the men’s restroom in the departure lounge of the airport where he met Hodge and exchanged the cocaine. The plea agreement further states that Customs and Border Protection (CBP) officers conducting surveillance observed Hodge enter the men’s room for approximately 33 minutes. Simultaneously, the CBP officers observed Fahie enter and exit the men’s room three times, each time with a bulge in his pants pockets. According to the plea agreement, CBP K-9 “Sherpa” alerted to the presence of cocaine in Fahie’s pants pocket, and a search of Hodge’s cell phone revealed multiple text messages detailing the smuggling scheme. Hodge pleaded guilty conspiracy to possess with the intent to distribute cocaine on February 1, 2018.
Sentencing for Fahie and Hodge is scheduled for June 7, 2018. Fahie and Hodge each face a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison.
The case was investigated by the Homeland Security Investigations, and Customs and Border Protection, and prosecuted by Assistant United States Attorney Delia L. Smith.
Brandon Man Sentenced to 97 Months for Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Brandon, South Dakota man convicted of distribution and receipt of child pornography was sentenced on February 5, 2018 by U.S. District Judge Karen E. Schreier.
John McKenzie, age 24, was sentenced to 97 months custody, 5 years of supervised release and was ordered to pay $100 to the Federal Crime Victims Fund.
McKenzie was indicted for distribution and receipt of child pornography by a federal grand jury on December 6, 2016. He pled guilty on November 2, 2017.
Between July 19, 2015 and May 10, 2016, John McKenzie resided in Brandon and had a computer with internet access. Using his computer to connect and access websites and applications for “Omegle” and “Kik Messenger,” McKenzie received and distributed digital files containing images and videos of child pornography. Many of the images of child pornography depicted prepubescent minors.
This case was investigated by U.S. Immigration and Customs Enforcement, Department of Homeland Security and prosecuted by Assistant U.S. Attorney Jeff Clapper.
McKenzie was immediately turned over to the custody of the U.S. Marshals Service.
Berkeley County woman admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg, West Virginia woman has admitted to her role in a drug distribution operation, United States Attorney Bill Powell announced.
Sarah Jaielyn Carter, age 26, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” Carter worked with others to distribute heroin in Berkeley County in November 2016.
Carter faces up to 20 years incarceration and a fine of up to $1,000,000. 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.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Barren County, Kentucky Felon Sentenced to 100 Months in Prison for Theft of FirearmsRead the Press Release
Burglarized and stole firearms from Horton’s Guns
BOWLING GREEN, Ky. – A Barren County, Kentucky, convicted felon was sentenced in United States District Court, by District Court Judge Greg N. Stivers, to 100 months in prison for charges associated with the burglary and theft of firearms from Hortons Guns, located in Cave City, Kentucky, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“100 months in federal prison is real time,” stated United States Attorney Russell M. Coleman. “Theft of firearms from a licensed dealer can trigger a domino effect of violent crime that puts Kentucky families and officers at risk. Pursuing those who would steal firearms is a priority of our office and helps protect our Commonwealth.”
Eric Glen Stockton, 37, of Cave City, Kentucky, pleaded guilty to being a felon in possession of a firearm, and entered an Alford plea to the charge of stealing a firearm from a licensed dealer.
According to information presented in court, Stockton burglarized Horton’s Guns on October 3, 2014. During a traffic stop in February 2015, KSP discovered a stolen firearm from the burglary in Stockton’s girlfriend’s car and Stockton was a passenger. In May 2015, ATF retrieved two stolen rifles from the burglary from a cooperating witness who indicated Stockton had given him and his father the weapons.
The United States was prepared to present evidence at trial that included video surveillance from Horton’s Guns, recorded the day prior to the burglary, showing a person fitting the description of Stockton, taking photos with his cell-phone of firearms that were later stolen. Additional video surveillance captures an individual believed to be Stockton reaching down from the ceiling removing long guns, then dropping into the store and breaking a glass case to steal five handguns.
Stockton stole and possessed 8 firearms from Horton’s, valued at $6,488 and included: DPMS, model LR-243, .243 caliber semiautomatic rifle; Bushmaster, model XM15-E2S, .223 caliber semiautomatic rifle; Bushmaster, model XM15-E2S, .223 caliber semiautomatic rifle, Taurus, model PT 1911, .45 semiautomatic pistol; Taurus, model PT 1911, .45 semiautomatic pistol; Taurus, model PT 1911, .45 caliber semiautomatic pistol; Hi-Point, model JHP, .45 caliber semiautomatic pistol; and a Glock, model 23, .40 caliber semiautomatic pistol. Stockton is required to pay restitution for the stolen firearms. Only three of the eight were recovered.
Stockton is a convicted felon with conviction related to prior gun thefts including: receiving stolen property (firearm), in Hart Circuit Court, Hart County, Kentucky, on March 1, 2011; and receiving stolen property over $500, in Barren Circuit Court, Barren County, Kentucky, on March 8, 2011.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with assistance from Kentucky State Police, Cave City Police Department, and the Barren Edmonson Allen County Drug Task Force.
Attorney General Jeff Sessions Names U.S. Attorney Kurt Alme as Vice Chair of the Native American Issues SubcommitteeRead the Press Release
BILLINGS— United States Attorney General Jeff Sessions announced the appointment of United States Attorney Kurt Alme as Vice Chair of the Native American Issues Subcommittee (NAIS) of the Attorney General’s Advisory Committee (AGAC). United States Attorney Trent Shores from the Northern District of Oklahoma will serve as Chair.
United States Attorney Shores stated, “The Native American Issues Subcommittee plays a vital role in developing national policy for Indian Country justice. U.S. Attorney Alme and I will be stalwart advocates for these important issues.”
United States Attorney Alme added, “The Department of Justice is fortunate to have U.S Attorney Shores as Chair of the NAIS. Not only is he an experienced prosecutor, but as a Native American, he has a unique perspective on law enforcement issues impacting tribal communities. We look forward to working together with tribal leaders to combat the opioid and methamphetamine epidemic and reduce violent crime in Indian Country.”
The AGAC was created in 1973 to serve as the voice of United States Attorneys and to advise the Attorney General on policy, management, and operational issues impacting the offices of the U.S. Attorneys. The NAIS is made up of U.S. Attorneys from across the United States whose Districts contain Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil and is responsible for making policy recommendations to the Attorney General of the U.S. regarding public safety and legal issues that impact tribal communities.
Attorney General Jeff Sessions Appoints Joseph H. Harrington as Interim United States AttorneyRead the Press Release
WASHINGTON -- Attorney General Jeff Sessions today announced the appointment of Joseph H. Harrington as Interim United States Attorney pursuant to 28 U.S.C. § 546, which provides that “the Attorney General may appoint a United States Attorney for the district in which the office of United States Attorney is vacant.” This appointment will take effect on January 5, 2018.
“Joseph Harrington has 27 years of experience as a federal prosecutor,” said Attorney General Sessions. “He has taken on white supremacists, domestic terrorists, health care fraudsters, and many other criminals. I want to thank him for his great work and I am pleased to appoint him as Interim U.S. Attorney for the Eastern District of Washington.”
Harrington said, “It’s a humbling day. I am honored to have been asked to serve as the Interim United States Attorney and to have the opportunity to continue working alongside the truly dedicated professionals in the U.S. Attorney’s Office for the Eastern District of Washington.”
Harrington has served in the U. S. Attorney’s Office since 1990 and before that worked for the U.S. Securities and Exchange Commission in Washington, D.C. During his tenure in the U.S. Attorney’s Office, he has litigated both civil and criminal cases. He has held the positions of First Assistant United States Attorney, Criminal Chief, Deputy Criminal Chief, Anti-Terrorism Advisory Coordinator, and Health Care Fraud Coordinator. Harrington was involved with the prosecutions of: Kevin W. Harpham, an avowed white supremacist who planted a sophisticated remotely-controlled IED along the route of the Martin Luther King, Jr. Day Unity March in Spokane; the Phineas Priest domestic terrorism case involving bank robberies and bombings of a Planned Parenthood office and a Spokane newspaper facility; and the Karl F. Thompson / Otto Zehm civil rights case. He has been the recipient of the prestigious Department of Justice “Director’s Award” on two occasion in recognition of his superior performance as an Assistant U.S. Attorney.
Harrington received his J.D. from Gonzaga University in 1986, where he was a Thomas Moore Scholar (full academic scholarship) and served as the Editor-in-Chief of the Gonzaga Law Review. He holds a B.A. in Mathematics and a B.S. in Engineering. He is married and has three children.
Albany Man Indicted for Intending to Distribute Heroin, Crack and CocaineRead the Press Release
ALBANY, NEW YORK – Dwayne G. Perkins, age 37, of Albany, was arraigned today on a charge that he possessed and intended to distribute crack cocaine, cocaine, and heroin.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the indictment, on April 4, 2017, Perkins possessed and intended to distribute more than 28 grams of cocaine base (a/k/a crack cocaine), cocaine and heroin. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Perkins is in custody pending trial. If convicted, Perkins faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 8 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and New York State Police, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Monday 5 February 2018
Woman Pleads Guilty for Involvement in Methamphetamine ConspiracyRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Dawn Angela Cimmino, a/k/a “Dawn Frazier”, age 41, of Bowling Green, Florida, entered a guilty plea on January 31, 2018, to conspiracy to possess with intent to distribute methamphetamine. Ms. Cimmino entered her plea in Valdosta, Georgia, before the Honorable Hugh Lawson, Senior United States District Court Judge.
According to the stipulated facts, Ms. Cimmino was paid $1,000 to pick up a package containing crystal methamphetamine from a Valdosta hotel and take it to Florida. Ms. Cimmino was a “runner” for the Zoe Pound street gang, which was responsible for having the methamphetamine shipped from California to Georgia then driven to Florida. She said the organization recently started having packages shipped across the country by FedEx and picked up by runners. The total amount attributable to Ms. Cimmino was 978.1 grams of methamphetamine.
Ms. Cimmino faces a maximum sentence of life in prison with a mandatory minimum of ten years. Sentencing is set for May 9, 2018.
“Methamphetamine continues to be one of the most serious drugs of abuse in the Middle District of Georgia,” said United States Attorney Peeler. “In a matter of only a few months it can destroy a person’s physical appearance, health, intellect and emotional stability. Those who deal in methamphetamine deal in human misery and will be held accountable for the choices they make.”
The case was investigated the Drug Enforcement Administration and the Lowndes County Sheriff’s Office. Assistant United States Attorney Sonja B. Profit handled the prosecution for the Government.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Williamson County Man Sentenced on Methamphetamine OffensesRead the Press Release
On February 5, 2018, Shaundale J. Johnson, a/k/a "Shug," 36, of Marion, was sentenced for methamphetamine violations, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Johnson, who had previously pled guilty to a two-count indictment charging unlawful distribution of methamphetamine, was sentenced to 204 months of imprisonment and eight years of supervised release, and was fined $400.00. The offenses occurred on March 17, 2017, and March 20, 2017, in Williamson County. At sentencing, the district judge found that Johnson was responsible for the distribution of 59.5 grams of methamphetamine. Because Johnson had multiple prior felony drug trafficking convictions, he received an enhanced sentence based on his classification as a Career Offender.
The investigation was conducted by the Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson County States Attorney’s Offices also assisted in the investigation.
Williamson County Man Charged with Federal Firearm ViolationRead the Press Release
On January 4, 2018, Bobby A. Commons, a/k/a "Blood," 44, of Herrin, was charged by one-count indictment with unlawful possession of a firearm by a felon, United States Attorney for the Southern District of Illinois Donald S. Boyce announced today. The indictment alleges the offense occurred on November 22, 2017, in Williamson County. Commons made his initial appearance in federal court on February 2, 2018. He is currently being held without bond pending a February 6, 2018, bond hearing.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The firearm offense carries a maximum penalty of up to ten years of imprisonment, to be followed by three years of supervised release, and a $250,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Herrin Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Williamson County States Attorney’s Office also assisted in the investigation.
Wichita Man Pleads Guilty to Paying No Taxes on Gambling IncomeRead the Press Release
WICHITA, KAN. – A Wichita man who made hundreds of thousands of dollars from illegal bookmaking pleaded guilty Monday to failing to report the income on his federal income taxes, U.S. Attorney Stephen McAllister said.
Daniel Dreese, 65, Wichita, Kan., pleaded guilty to two counts of making false statements on income tax returns. In his plea, he admitted that in tax year 2011 he received $89,078 from illegal bookmaking, and in tax year 2012 he received $136,985 from illegal bookmaking. He did not report that income.
In addition, he admitted that in 2010, he failed to report $383,684 in income.
In the plea agreement, Dreese agreed to pay $214,540 in restitution.
Sentencing is set for April 23. He faces up to three years in federal prison and a fine up to $100,000 on each count. McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Aaron Smith for their work on the case.
Van Cleave Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss – Terry Lee Reddix, 43, of Van Cleave, Mississippi, pled guilty today before U.S. District Judge Louis Guirola, Jr. to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
On May 23, 2016, Terry Lee Reddix sold methamphetamine to a confidential source from his home on the "Hill" in Van Cleave, Mississippi. Reddix has been distributing methamphetamine from that locale for several years and law enforcement was able to make several purchases of methamphetamine from him.
Reddix will be sentenced on May 8, 2018 by Judge Guirola, and faces a maximum penalty 40 years in prison and a $5 million fine.
The case was investigated by the FBI Safe Streets Task Force and prosecuted by Assistant U.S. Attorney John Meynardie.
Valencia Man Sentenced to 2 Years for Filing a False Tax ReturnRead the Press Release
LOS ANGELES – A Valencia resident convicted of filing a federal tax return that failed to report income that he received by having his company pay for many of his personal expenses was sentenced today to 24 months in federal prison.
Walter Daniel Prezioso, 47, the former vice president and manager of the now-defunct GSP Precision, Inc., was sentenced today by United States District Judge John F. Walter.
A federal jury in November convicted Prezioso of one count of willfully subscribing to a false 2013 federal income tax return.
In the early 1990s, Prezioso began working at GSP Precision, a Burbank-based machine shop owned by his father and a third party. In 1997, his father sold half of his shares to Prezioso, making him a 25 percent owner. By 2001, Prezioso had full control of GSP’s operations and held sole authority over the corporate checking account.
According to the evidence presented at trial, by 2007, Prezioso was using his control over GSP’s checking account and corporate lines of credit to make payments for many of his personal expenses, including luxury automobile leases and the construction of a tennis court and swimming pool at his residence.
Between 2007 and 2013, according to court documents, Prezioso used GSP funds to pay for hundreds of thousands of dollars in personal expenses. He concealed the expenditures as legitimate business expenses on GSP’s books and records, thereby ensuring that his true income from GSP would not be reported on his Forms W-2 or as officer compensation on GSP’s corporate tax returns.
According to the government’s evidence, Prezioso failed to report any of the additional compensation on his individual income tax returns, resulting in a tax loss of more than $751,000.
The jury that convicted Prezioso of subscribing to a false 2013 individual income tax return acquitted the defendant of seven additional counts.
The investigation into Prezioso was conducted by IRS Criminal Investigation.
The case was prosecuted by Assistant United States Attorneys Paul H. Rochmes, Valerie L. Makarewicz and James C. Hughes of the Tax Division.
United States Attorney’s Office Reaches Settlement with Cumberland County over Polling Place Access for VotersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today a settlement with Cumberland County, PA, under Title II of the Americans with Disabilities Act to improve physical accessibility at the county’s polling places for individuals who use wheel chairs and other mobility aids, and for individuals who are blind or have vision impairments.
According to United States Attorney David J. Freed, in the April 26, 2016 primary election, the United States Attorney’s Office, along with an architect from the Department of Justice, surveyed 52 of the county’s 118 polling place locations. The survey resulted in a finding that many of the county’s polling places contained barriers for persons with disabilities. Title II of the ADA prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program. Thus, the ADA requires Cumberland County to select and use polling places that are accessible to persons with disabilities.
As a result of the survey’s findings, Cumberland County is working collaboratively with the United States Attorney’s Office to make all polling places accessible. Under the terms of the agreement, the county will use an evaluation form for each current and prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to new, accessible facilities, or to use temporary measures such as portable ramps, signs, traffic cones and doorbells, where appropriate to ensure accessibility on Election Day.
“The right to vote should not be impeded, as it is the foundation of our democracy,” said U.S. Attorney Freed. “We commend Cumberland County for their cooperation in meeting their ADA obligations so that all persons with disabilities have equal opportunities to vote in person at their polling places alongside their neighbors.”
This investigation was handled by Assistant United States Attorney Michael J. Butler with the assistance of the United States Department of Justice, Civil Rights Division (Disability Rights Section). Those interested in finding out more about the ADA can access the ADA website at www.ada.gov.
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Two Men Charged with Transportation and Possession of ExplosivesRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man, and a Harrisburg, South Dakota, man have been indicted by a federal grand jury for Transportation of Explosive Materials and Possession of Explosives by a Prohibited Person.
Nathaniel Johnson, age 29, and William Fralick, age 30, were indicted on January 17, 2018. They appeared before U.S. Magistrate Judge Mark A. Moreno on February 2, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $500,000 fine, 6 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 19, 2017, Johnson and Fralick, knowing they were not licensed or permitted, transported explosive materials. Johnson and Fralick are also prohibited from possessing explosives as they each have convictions for a crime punishable by imprisonment for a term exceeding one year.
The charges are merely accusations and Johnson and Fralick are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Johnson and Fralick were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Two Men Charged in ATM "Jackpotting" SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ALEX ALBERTO FAJIN-DIAZ, 31, a citizen of Spain, and ARGENYS RODRIGUEZ, 21, of Springfield, Massachusetts, have been charged by federal criminal complaint with bank fraud stemming from an alleged ATM “jackpotting” scheme.
FAJIN-DIAZ and RODRIGUEZ were arrested on related state charges on January 27. They appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and are detained.
According to court documents and statements made in court, law enforcement agencies and ATM manufacturers have been investigating malware attacks on ATM machines in Connecticut and elsewhere. In a scheme commonly referred to as “jackpotting,” individuals use malware that is designed to cause an ATM to eject all of the U.S. currency contained in the machine. As part of the scheme, individuals dressed as legitimate repair technicians install malware on an ATM. Other individuals then proceed to extract all of the cash from the ATM.
As alleged in the criminal complaint, federal, state and local law enforcement agencies have been investigating recent jackpotting attacks on ATMs in Hamden and Guilford, as well as Providence, Rhode Island. On January 27, 2018, Citizens Bank investigators contacted police after they observed what appeared to be an attack on an ATM in Cromwell. On that date, Cromwell Police encountered FAJIN-DIAZ and RODRIGUEZ near an ATM that had been compromised with jackpotting malware and was in the process of dispensing $20 bills. A search of FAJIN-DIAZ and RODRIGUEZ’s vehicle, which had a license plate that was assigned to another vehicle, revealed tools and electronic devices consistent with items needed to compromise an ATM machine to dispense its cash contents. FAJI-DIAZ and RODRIGUEZ also possessed more than $9,000 in $20 bills.
The charge of bank fraud carries a maximum term of imprisonment of 30 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Connecticut Computer Crimes Task Force, U.S. Secret Service, Connecticut State Police, Chief State’s Attorney’s Office, Middlesex State’s Attorney’s Office. Cromwell Police Department, Middletown Police Department, Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Two Individuals Plead Guilty to Fraud ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Alvin Arely Potts II, age 38, of Durant, Oklahoma, pled guilty to Count Six Conspiracy To Commit Wire Fraud, in violation of 18 U.S.C. § 1343, punishable by not more than 30 years imprisonment, and up to a $1,000,000.00 fine, or both; and that Bobby Joecephus Medina, age 38, of Poteau, Oklahoma, pled guilty to Count Three Uttering A Counterfeit Security With Intent To Deceive, in violation of Title 18, United States Code, Sections 513(a) and 2, punishable by up to 10 years imprisonment, and up to a $250,000.00 fine, or both. A copy of the full indictment can be found online at /media/929731/dl?inline.
The Indictment alleges that from on or about May 23, 2017, through June 9, 2017, in the Eastern District of Oklahoma, the Defendant, Alvin Arley Potts II, and others known and unknown to the Grand Jury, conspired to commit offenses against the United States, that is: To obtain money and property by means of materially false pretenses, representations and promises.
The Indictment further alleges that on or about November 29, 2016, in the Eastern District of Oklahoma, the Defendant, Bobby Joecephus Medina, did knowingly possess and utter a counterfeited security, to-wit: counterfeit check number 2698 purported to be a genuine check of Chickasaw Nation, Division of Commerce, drawn on an account at First United Bank, Durant, Oklahoma, in the amount of $410.22, with the intent to deceive another.The charges arose from an investigation by the Durant Police Department, the District 19 District Attorney’s Office, the Chickasaw Nation Tribal Police, the Choctaw Nation Tribal Police, the Bureau of Indian Affairs, and the United States Secret Service. Assistant United States Attorney Melody Nelson will be prosecuting the case on behalf of the United States.
United States Attorney Brian J. Kuester said, “This investigation is the result of dedicated law enforcement professionals from local, state, tribal and federal jurisdictions working together to serve and protect our communities. This team effort by many different agencies is a wonderful example of the effectiveness of multi-jurisdictional efforts to investigate criminal activity.”
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 pleas and ordered the completion of presentence investigation reports for both defendants.
Tulare County Resident Sentenced to 4 Years in Prison for Tax and Investment FraudRead the Press Release
FRESNO, Calif. — Marie E. Sherrill, 57, of Porterville, was sentenced today by U.S. District Judge Dale A. Drozd to four years in prison for wire fraud and tax fraud, U.S. Attorney McGregor W. Scott announced. She was also ordered to pay more than $1.3 million in restitution to the fraud victims and $255,900 to the IRS.
According to court documents, Sherrill was a registered tax return preparer operating a bookkeeping and tax preparation business in Porterville under the name Sherrill Financial Services. Between January 2011 and December 2014, Sherrill prepared false tax returns for her clients containing false deductions to maximize their tax refunds, which caused a loss to the IRS of approximately $255,900.
Sherrill also used the intimate financial knowledge she gained from the clients of her bookkeeping and tax preparation business to identify victims she could lure into an investment fraud scheme. She told victims of this scheme that their money would be put into “pooled investments” with the money of other investors to earn a high rate of return. The money was, in fact, never put into any investment, but was used instead to pay Sherrill’s personal expenses or to make lulling payments to earlier investors in order to make them believe their money was earning a profit. As a result of this scheme, the victims were defrauded of at least $1.3 million.
This case was the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.
Town of Richmond Addresses ADA Compliance at Public MeetingsRead the Press Release
PROVIDENCE, RI – The Town of Richmond has undertaken steps to voluntarily address concerns regarding compliance with the American Disabilities Act by providing effective communications for individuals who are hard of hearing at public meetings, and by establishing policies and procedures for accommodation requests.
In August 2017, in response to a complaint, the U.S. Attorney’s Office opened an investigation into the Town of Richmond and identified concerns regarding policies and procedures for requests for reasonable accommodations and effective communication. Once it became aware of the concerns, the Town of Richmond cooperated with the U.S. Attorney’s Office to develop a public notice to address policies and procedures for individuals with disabilities. The policy, adopted by the Town Council, is posted on the Town’s website and at all Town facilities. Additionally, the Town has installed a sound system with microphones and amplifiers that is now used at all public meetings.
The matter was handled by Assistant U.S. Attorney Amy R. Romero in conjunction with the Department of Justice’s Civil Rights Division.
The U.S. Attorney’s Office for the District of Rhode Island is committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, visit the web site of the United States Attorney’s Office for the District of Rhode Island at www.justice.gov/usao-ri/civil-rights-enforcement, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TTY). Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm..
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Tony Torrez Sentenced to 101 Months for Federal Drug Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Tony Derrick Torrez, 34, of Albuquerque, N.M., was sentenced today in federal court to 101 months of incarceration for his conviction on drug trafficking and firearms charges. Torrez will be on supervised release for five years after completing his prison sentence. Torrez’ federal sentence will run consecutive to the 16-year sentence Torrez already is serving on a state conviction. During today’s sentencing hearing, Torrez also was ordered to forfeit to the United States $64,000.00 in drug proceeds, firearms and ammunition seized during the investigation of the federal case.
Torrez’s federal sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Karen I. Flowers of the El Paso Division of the DEA, Special Agent in Charge John J. Durastanti, Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief of Police Michael Geier of the Albuquerque Police Department (APD).
“The federal law enforcement community responded to the tragic, senseless death of an innocent child by doing its part to ensure that Tony Torrez spent as much time as possible behind prison walls to contemplate the impact of his actions,” said Acting U.S. Attorney James D. Tierney. “Whether it was shooting into a moving vehicle, or selling drugs in our neighborhoods, Mr. Torrez’ actions endangered our kids, and the federal law enforcement community is working hand-in-hand with the Albuquerque Police Department to keep our kids safe.”
“The sentencing today of Tony Torrez sends a message to all who continually engage in violent criminal activity and the distribution of illegal drugs: we will work together with our federal and state and local counterparts to see that anyone involved in violence and this illicit trade will be brought to justice,” said DEA Special Agent in Charge Karen I. Flowers.
“Today’s sentencing of Tony Torrez sends a loud and clear message to the worst of the worst offenders that too often plague our communities. Our goal is simple, to put violent, repeat offenders such as Torrez, behind bars for as long as possible, and keep them from interacting with the good people of New Mexico,” said ATF Special Agent in Charge John J. Durastanti. “ATF will continue to work with our law enforcement partners to target armed violent criminals who spread violence on the streets of Albuquerque, and in doing so we will make our community a safer place for all.”
“It is important for the community to know that offenders like Tony Torrez are being held accountable for their crimes,” said APD Chief Michael Geier. “Our partnership with federal law enforcement agencies is a critical tool in our effort to keep Albuquerque safe.”
Torrez was charged in a federal criminal complaint in Oct. 2015, with possession of marijuana with intent to distribute, and using and carrying firearms in relation to drug trafficking crimes. The criminal complaint charged Torrez with committing the crimes on Oct. 21 and 22, 2015, in Bernalillo County, N.M. Torrez subsequently was charged in a five-count indictment with possessing marijuana with intent to distribute; maintaining a place for the purpose of distributing controlled substances; possession of cocaine, testosterone and its esters; possession of firearms and ammunition by an illegal drug user; and possessing firearms and ammunition in relation to a drug trafficking crime. The indictment asserted that Torrez committed these five crimes on Oct. 21, 2015, in Bernalillo County.
According to court filings, the federal investigation into Torrez began on Oct. 21, 2015, when APD received a tip about a suspect who shot and killed a child during a road rage incident; the tipster provided a residential address for the suspect. Based on the tip, APD officers conducted surveillance at the residence where they observed a man, subsequently identified as Torrez, load items into a Toyota sedan. APD officers later conducted a traffic stop on the Toyota after a woman drove away from the residence in the Toyota. Shortly thereafter, APD officers conducted a traffic stop on a Lexus sedan that drove away from the residence and identified the driver as Torrez. APD sealed and towed the two vehicles to the APD Crime Lab.
On Oct. 21, 2015, APD executed a state search warrant at the aforementioned residence where they found shoeboxes containing U.S. currency, paraphernalia and other items consistent with the use of marijuana and a substance believed to be “wax,” a concentrated form of THC oil processed from the marijuana plant. Thereafter, the DEA executed a federal search warrant on Torrez’s residence and the two vehicles and seized items and paraphernalia used for distributing marijuana and possibly for the manufacturing THC “wax” and oil. From the vehicles, the officers seized a bag with U.S. currency, marijuana, firearms and ammunition, a bullet-proof vest, a small amount of suspected cocaine, and drug paraphernalia. Court filings indicate that approximately $64,000.00 in cash was seized from Torrez’s residence and vehicles.
On April 27, 2017, Torrez pled guilty to all five counts of the indictment. In his plea agreement, Torrez admitted possessing marijuana in Oct. 2015 that he intended to distribute to others as well as illegal steroids for his personal use. Torrez also admitted possessing several firearms while he was using the illegal steroids to protect himself from the dangers of the drug trafficking business. Finally, Torrez admitted using his residence to store marijuana he sold.
Torrez previously pled guilty in Dec. 2016, to state court charges arising out of the murder of a child during the Oct. 21, 2015 road rage incident, and was sentenced to a 16-year term of imprisonment.
This case was investigated by the Albuquerque offices of the DEA and ATF and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Paul Mysliwiec and Nicholas Ganjei prosecuted the case.
Three Inmates at Fort Dix Federal Prison Arrested for Distributing and Possessing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – Three men who are already serving prison sentences for child pornography were arrested today at the Federal Correctional Institution-Fort Dix (FCI-Fort Dix) and charged with using contraband cellphones and micro SD cards to distribute, possess, and view images and videos of child sexual abuse within the prison, U.S. Attorney Craig Carpenito announced.
William H. Noble, 52, of Lowell, Massachusetts, and Charles Wesley Bush, 38, of Knoxville, Tennessee, are charged by complaint with one count each of conspiracy to distribute child pornography, distributing child pornography, and possession of child pornography on federal property. Jacob S. Good, 31, of Fredericksburg, Virginia, is charged by complaint with one count of possession of child pornography on federal property and one count of accessing with intent to view child pornography on federal property.
All three defendants were arrested this morning and are scheduled to appear this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
According to the complaints:
Noble allegedly transferred a micro SD card containing child pornography to a government informant at FCI-Fort Dix on April 19, 2017. The micro SD card included over a thousand images and videos, many of which depicted sexual abuse of children, including infants and toddlers. Noble allegedly made statements about downloading the child pornography himself and with the assistance of other inmates in the prison. Noble previously pleaded guilty in the District of Massachusetts to transportation and distribution of child pornography and is serving an 81-month sentence with a scheduled release date of March 8, 2018.
Bush jointly possessed the SD Card that was transferred by Noble on April 19, 2017, which he also allegedly used to download videos of children being sexually abused. Bush expected to be compensated as part of the transfer of the SD card to the government informant. Bush previously pleaded guilty in the Eastern District of Tennessee to three counts of distribution of child pornography and possession of materials containing child pornography. He is serving a 151-month sentence with a scheduled release date of May 24, 2024.Good allegedly possessed and accessed child pornography while imprisoned at FCI-Fort Dix, which he downloaded from the “Dark Web” and stored on a micro SD card. Good allegedly told a government informant during a recorded conversation that he never intended to stop viewing child pornography. Good also described plans to take child pornography accumulated while in the prison home with him following his release. Good previously pleaded guilty in the Eastern District of Virginia to distribution of child pornography. He is serving a 60-month sentence with a scheduled release date of Feb. 6, 2018.
Due to the defendants’ prior convictions, the counts of distributing child pornography and conspiring to distribute child pornography are each punishable by a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine. The counts of possessing and accessing child pornography on federal property each carry a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
The charges and allegations in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The charges against Good, Bush, and Noble stem from a long-term investigation by the FBI, which led to similar charges against five other FCI-Fort Dix inmates in April 2017. Charges against four of those inmates – Anthony C. Jeffries, Brian J. McKay, Christopher D. Roffler, and Jordan T. Allen – remain pending. A fifth inmate, Erik M. Smith, has since pleaded guilty to possession of child pornography.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s arrests. He also thanked officials of the Bureau of Prisons and FCI-Fort Dix for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel:
Charles Bush: David Rudenstein Esq.
Jacob Good: David Simon Esq.
William Noble: Marty Isenberg Esq.Thackerville Woman Pleads Guilty to False Bank EntriesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tiffany Rhea Spears, age 30, of Thackerville, Oklahoma, pled guilty to False Entry In The Books of a Federally Insured Bank, in violation of Title 18, United States Code, Section 1005, punishable by not more than 30 years imprisonment, up to a $1,000,000.00 fine, or both.
The Indictment alleged that from on or about January 6, 2017, until on or about June 5, 2017, within the Eastern District of Oklahoma, defendant, with the intent to deceive an officer of Citizens Bank and Trust of Ardmore, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, knowingly made false entries in the books, reports, or statements of Citizens Bank and Trust of Ardmore, Oklahoma. The defendant created false transaction documents showing customers advancing monies on their loans and withdrawing cash from their accounts, when in truth and in fact, as the defendant well knew, the advances and withdrawals from customer accounts were by, and for the benefit of, the defendant.The charges arose from an investigation by the Federal Reserve Office of Inspector General.
The Honorable Steven P. Shreder, 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 Rob Wallace represented the United States.
Texas Judge Arrested and Charged with BriberyRead the Press Release
A Texas state district court judge has been arrested on allegations he accepted approximately $6,000 in cash bribes, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Christopher Combs of the FBI San Antonio Division.
Rodolfo “Rudy” Delgado, 64, of Edinburg, Texas, is currently the presiding judge for the 93rd District Court for the State of Texas and has jurisdiction over Texas criminal and civil cases located within Hidalgo County. He was charged in a criminal complaint with bribery concerning programs receiving federal funds.
Authorities took Delgado into custody on Friday. He made his initial appearance earlier today before U.S. Magistrate Judge Scott Hacker, at which time he was permitted release upon posting $100,000 bond.
The criminal complaint alleges Delgado accepted bribes from an attorney in exchange for favorable judicial consideration on criminal cases pending in his courtroom. Delgado allegedly accepted bribes on three separate occasions in exchange for Delgado agreeing to release three clients on bond with cases pending before his court. The first two bribes allegedly totaled approximately $520 in cash. The third bribe occurred in January 2018, at which time Delgado accepted approximately $5,500 in cash, according to the charges.
The FBI conducted the investigation. Trial Attorneys Peter Nothstein and Todd Gee of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Julie N. Searle and Robert Guerra of the Southern District of Texas are prosecuting the case.
A criminal complaint is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sherman Man Sentenced to Three Years in Prison for Violating Clean Air Act Related to Asbestos Removal at Former Pillsbury PlantRead the Press Release
SPRINGFIELD, Ill. – U.S. District Judge Sue E. Myerscough today ordered a Sherman, Ill., man, Joseph J. Chernis, IV, to serve 37 months in federal prison for failure to adequately remove and dispose of asbestos material, violations of the Clean Air Act, at the former Pillsbury Mills facility in Springfield. Following his prison term, Chernis, 35, was ordered to remain on supervised release for a period of three years. Chernis was ordered to self-report to prison when directed by the Bureau of Prisons.
Chernis pled guilty on April 7, 2017, to three counts of violating the Clean Air Act. Chernis admitted that he hired an untrained individual to illegally remove dry asbestos pipe insulation from the Pillsbury Mills facility. From October 2014 to August 2015, dry asbestos-containing insulation was cut and stripped from pipes inside four buildings at the facility, including the structure known as the Dryer building.
“The defendant’s illegal and reckless acts endangered the health of those performing the asbestos removal and others,” stated U.S. Attorney John E. Childress, “and caused the U.S. EPA to assume clean-up efforts at a cost of millions of dollars.”
“Asbestos can cause cancer and other serious respiratory diseases, so it is important that it be handled legally,” said Brad Ostendorf, Assistant Special Agent in Charge of EPA’s criminal enforcement program in Illinois. “The defendant knew the rules regarding the legal removal of asbestos containing materials, but ignored them. In this way, he threatened not only the environment but the safety of his untrained workers and the general public. This case demonstrates that EPA and its partner agencies will not abide those who try to make money by breaking the law.”
Under provisions of the Clean Air Act, the EPA has promulgated rules, regulations and requirements to control the removal, handling and disposal of asbestos, a hazardous air pollutant. Any owner or operator of a renovation or demolition activity which involves removal of specified amounts of asbestos-containing material must comply with the EPA regulations.
Assistant U.S. Attorney Crystal Correa and Special Assistant U.S. Attorney James Cha, of the U.S. Environmental Protection Agency, represented the government in the prosecution. The charges were investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division.
Rio Rancho Felon Pleads Guilty to Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Cory G. Bates, 29, of Rio Rancho, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the federal firearms laws by unlawfully possessing a firearm.
Bates, whose prior criminal history includes felony convictions for aggravated burglary with a deadly weapon, armed robbery, aggravated battery with a deadly weapon, and cocaine trafficking, is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Bates was arrested in June 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on Jan. 9, 2016, in Bernalillo County, N.M. According to the indictment, Bates was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
During today’s change of plea hearing, Bates pled guilty to the indictment and admitted that on Jan. 9, 2016, he possessed a firearm and ammunition despite his status as a convicted felon. At sentencing, Bates faces a statutory maximum penalty of ten years in federal prison. Bates remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
Registry of Motor Vehicles Clerk Sentenced for Role in Identity Theft SchemeRead the Press Release
BOSTON – A Massachusetts Registry of Motor Vehicles clerk was sentenced today in federal court in Boston for her role in a scheme to produce false identification documents.
Kimberly Jordan, 33, of Randolph, was sentenced to eight months in prison and two years of supervised release. In October 2017, Jordan and co-conspirators Evelyn Medina, 56; Annette Gracia, 37; David Brimage, 46; and Bivian Yohanny Brea, 41, all of Boston, agreed to plead guilty to one count of producing without lawful authority an identification document or a false identification document.
In December 2017, Angel Miguel Beltre Tejada, 32, a Dominican national illegally residing in Jamaica Plain, was sentenced to two years in prison after pleading guilty to one count of aggravated identity theft. Tejada will also be subject to deportation upon completion of the sentence. In January 2018, Medina and Gracia were sentenced to 15 months in prison and one year and one day in prison, respectively.
In October 2015, law enforcement received an anonymous letter alleging that a corrupt RMV employee was providing Massachusetts identifications and driver’s licenses to individuals who were using false identifications. An investigation revealed that several Haymarket RMV clerks – Jordan, Medina, Gracia, and Brimage – were working with Brea and Tejada to fraudulently provide Massachusetts licenses and identification cards to illegal aliens for cash.
The scheme involved several steps. Tejada and Brea would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejada would receive several hundred dollars in cash each time he sold identification documents. Brea received up to $2,700 per identity for her role in the scheme, which included helping clients obtain the documents and facilitating their acquisition of Massachusetts identity documents.
Typically, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. Department of State’s Diplomatic Security Service; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. HSI’s Document and Benefit Fraud Task Force investigated the case. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the cases.
Red Lake Man Sentenced to 360 Months in Federal Prison for the Murder of Two IndividualsRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of JARED DANIEL JONES, 23, to 360 months in prison for the murder of two individuals, including one minor victim. JONES, who pleaded guilty to two counts of murder in the second degree, was sentenced on February 2, 2018, before Senior Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
According to the defendant’s guilty plea and documents filed in court, on October 15, 2014, within the exterior boundaries of the Red Lake Indian Reservation, JONES stabbed to death an unarmed juvenile victim with whom he had an ongoing gang dispute. JONES and his fellow gang members ambushed and stabbed the victim and left him on a trail to die.
According to the defendant’s guilty plea and documents filed in court, on January 20, 2016, JONES and another individual drove the victim, identified as R.B., to a remote area of the Red Lake Indian Reservation. JONES and his accomplice assaulted R.B., stole his vehicle, and left him in the cold, without proper clothing or transportation, which resulted in R.B.’s death from exposure to hypothermic conditions.
The case was investigated by Red Lake Department of Public Safety, the Federal Bureau of Investigation, the FBI Headwaters Safe Trails Task Force, and the Minnesota Bureau of Criminal Apprehension Forensic Science Laboratory.
Assistant U.S. Attorney Clifford B. Wardlaw prosecuted the case.
Defendant Information:
JARED DANIEL JONES, 23
Red Lake, Minn.
Convicted:
- Murder in the second degree, 2 counts
Sentenced:- 360 months, count 1
- 262 months, served concurrently, count 2
- Five years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Pennsylvania Outfitter Pleads Guilty to Violating the Lacey Act in KansasRead the Press Release
WICHITA, KAN. – A Pennsylvania man who owns a company called Horseshoe Hill Outfitters pleaded guilty Monday in federal court in Kansas to violating the Lacey Act, U.S. Attorney Stephen McAllister said.
Robert P. McConnell, 48, Slippery Rock, Penn., pleaded guilty to four counts of importing deer into Kansas in violation of the Lacey Act, which regulates the trade in wildlife, fish and plants that has been illegally taken, possessed, transported or sold. Horseshoe Hill Outfitters advertises what it calls “trophy North American big game hunting adventures” in Kansas, Pennsylvania, New Mexico and Ontario.
In two counts, McConnell admitted importing deer that were not from an accredited heard, were not officially identified and did not have a certificate of veterinary inspection. In two other counts, he admitted importing domesticated deer.
Sentencing is set for May 21. Both parties have agreed to recommend a sentence of five years on probation during which McConnell is prohibited from doing business in Kansas, and a fine of not less than $10,000.
McAllister commended the U.S. Fish and Wildlife Service and Assistant U.S. Attorney Greg Hough for their work on the case.
Pennsylvania Firearms Dealer Sentenced to 100 Months ImprisonmentRead the Press Release
HAMMOND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Vahan Kelerchian, 58, of Richboro, Pennsylvania, doing business as Armament Services International “ASI”, was sentenced before Senior District Court Judge Joseph S. Van Bokkelen for his role in the acquisition of machineguns and restricted laser aiming sights.
Kelerchian was sentenced to 100 months imprisonment, ordered to pay a $100,000 fine and $28,200 in restitution along with serving 1 year of supervised release upon release from prison. Kelerchian was found guilty after a two-week trial that ended October 15, 2016. Kelerchian was taken into custody upon sentencing to begin serving his sentence.
According to evidence presented at trial, Kelerchian conspired with Joseph Kumstar and Ronald Slusser, now former Lake County Police Officers, to knowingly make false statements relating to the acquisition of firearms. Kumstar and Slusser, who have plead guilty, used their positions as sworn law enforcement officers in coordination with Kelerchian using his position as a Class 3 Federal Firearms Licensee to acquire approximately 71 fully automatic machineguns in the name of the Lake County Sheriff’s Department knowing that the Lake County Sheriff’s Department was not going to be the true owner of these weapons. Kelerchian, Kumstar and Slusser conspired to use law enforcement letter head to create letters which falsely represented that the machineguns were going to be used by the Lake County Sheriff’s Department to carry out its law enforcement responsibilities since machineguns manufactured after 1986 can only be acquired by law enforcement agencies and not individual officers. The machineguns were purchased for a cost of $1200 and $1600 and then when received by the Sheriff’s Department, transported offsite to be parted out. The barrels (also known as the “upper”) were split with the officers and some were sent back to Kelerchian. The “uppers” sold between $3000 and $3600 due to post-1986 parts not being available to the public because only law enforcement agencies or the military can acquire these weapons.
Kelerchian also used his company (Armament Services International “ASI”) to assist Kumstar and Slusser to acquire 74 restricted laser aiming sights again using law enforcement letterhead from the Lake County Sheriff’s Department and the Lowell Police Department. These class 3b laser sights were restricted by the Food and Drug Administration. These lasers were designed, per a variance from FDA, to be used for law enforcement and military use only because they did not have the audible or manual safety locks as required for class 3b lasers. The laser aiming sights had a visible laser that could be seen in excess of 50 feet and an invisible laser that could be used for targeting with infrared goggles in excess of 1 mile. Kelerchian along with the officers used their positions to acquire these devices and sell them to the general public or keep the devices for themselves.
In addition to the charges above, Kelerchian was also found guilty of money laundering and false statements to the Bureau of Alcohol, Tobacco, Firearms and Explosives regarding false demonstration letters involving high powered belt-fed machine guns. Kelerchian was also charged with bribery but was acquitted of that charge.
United States Attorney Thomas L. Kirsch II said, “ Mr. Kelerchian abused the authority entrusted to him for criminal purposes. The 8 years that he will spend in federal prison, which began today, should be a deterrent to others similarly situated that act for illegal purposes. The U.S. Attorney’s Office will continue to aggressively prosecute our nation’s firearm laws and seek meaningful sentences of offenders to both punish and deter this type of criminal behavior.
As reported previously, Joseph Kumstar was sentenced to 57 months; Edward Kabella was sentenced to 24 months; and Ronald Slusser was sentenced to 70 months for their involvement in this case.
This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Defense Criminal Investigative Services; Federal Bureau of Investigation; Food and Drug Administration, Office of Criminal Investigations; and the Internal Revenue Service, Criminal Investigation Division. This case was prosecuted by Assistant United States Attorneys Philip C. Benson and Thomas M. McGrath.
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Passaic County, New Jersey Couple Charged in Food Stamps SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, couple was charged today for their respective roles in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.
Ibrahim Zughbi, 64, and his wife, Miriam Zughbi, 59, of Wayne, New Jersey, are charged by complaint with Supplemental Nutrition Assistance Program (SNAP) benefit fraud and conspiracy to commit wire fraud. Ibrahim Zughbi is also charged with money laundering. Both appeared today before U.S. Magistrate Judge Michael Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
From January 2014 to the present, the defendants managed Jamaica Meat Market, a medium-size grocery store in Paterson, New Jersey, that was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits. They may not exchange SNAP benefits for cash. While the Zughbis ran the store, another individual owns the store and is the person registered with SNAP. According to the complaint, Ibrahim and Miriam Zughbi exchanged more than $4 million in SNAP benefits for cash between 2014 and 2017.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the amount is credited to the retailer’s designated bank account. In addition to the high volume of SNAP benefits redemptions for Jamaica Meat Market indicating fraud, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of a confidential source who, at the direction of law enforcement, engaged in 16 “purchases” at Jamaica Meat Market where one or both defendants exchanged money for SNAP benefits.
Ibrahim Zughbi had previously participated in SNAP when he was the owner of Neighborhood Supermarket, a grocery store that operated out of the same location as the Jamaica Meat Market. In March 2011, the USDA had permanently disqualified Ibrahim Zughbi from SNAP when Zughbi and the Neighborhood Supermarket were administratively charged with SNAP violations. Another individual took over the business, changed its name to Jamaica Meat Market, and certified in writing to the USDA that Ibrahim Zughbi would have nothing to do with the business or its participation in the program. Zughbi continued to run Jamaica Meat Market, and continued to exchange cash for SNAP benefits.
The complaint also charges Ibrahim Zughbi with money laundering. The bank account of Jamaica Meat Market, where the store receives SNAP payments, shows payments in excess of $471,000 to Ibrahim Zughbi and various family members not connected to the business, even though Ibrahim Zughbi is not permitted to associate with Jamaica Meat Market as a participant in SNAP.
Each of the counts with which the defendants are charged carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss. The count of money laundering with which Ibrahim Zughbi is charged carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Michael McCarthy, with the investigation leading to today’s charges. He also thanked the Passaic County Prosecutor’s Office, the Wayne Township Police Department and the Paterson Police Department for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
The allegations and charges in the complaint are only accusations and the defendants are considered innocent unless and until proven guilty.
Oklahoma City Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jason Delaney Kiplinger, age 36, of Oklahoma City, Oklahoma, pled guilty to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years and up to life imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on or about February 6, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.The charges arose from an investigation by the Sallisaw Police Department, the Sequoyah County Sheriff’s Office, and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, 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 Timothy Hammer represented the United States.
North Charleston Man Sentenced on Federal Firearms ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Sinclair Gibbs, age 31, of North Charleston, South Carolina, was sentenced in federal court in Charleston, South Carolina, for one count of possession of a firearm by a convicted felon. United States District Judge Richard M. Gergel, of Charleston, sentenced Gibbs to 57 months’ imprisonment, to be followed by 3 years of supervised release.
Evidence presented at the change of plea hearing established that on March 22, 2016, the North Charleston Police Department went to Gibbs’ residence to serve an arrest warrant on him. Inside Gibb’s residence, officers found a loaded .45 caliber handgun, along with cocaine, crack cocaine and marijuana. Gibbs’ prior record includes multiple felony drug convictions
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and the North Charleston Police Department. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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North Carolina Return Preparer Pleads Guilty to Filing False Tax Refund ClaimsRead the Press Release
A Wilson, North Carolina, tax return preparer pleaded guilty today to filing a false claim for refund with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert J. Higdon, Jr. for the Eastern District of North Carolina.
According to documents and information provided to the court, in early 2015 Tawanda Denise Pitt, managed Integritax, a tax preparation business in Wilson, North Carolina. Pitt falsified taxpayer client returns by claiming false dependents and education credits and reporting fake businesses in order to seek refunds to which her clients were not entitled. Pitt also admitted that she trained other preparers to file fraudulent returns. She caused a tax loss between $550,000 and $1.5 million; the total tax loss resulting from false education credits alone exceeded $780,000.
U.S. District Court Judge Malcolm J. Howard scheduled sentencing for May 8. Pitt faces a statutory maximum sentence of five years in prison, a period of supervised release and monetary penalties. In addition, Pitt agreed to pay $203,106 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Higdon thanked agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Adam F. Hulbig and Trial Attorney Terri-Lei O’Malley of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Orleans Man Sentenced on Bank Robbery ChargeRead the Press Release
U.S. Attorney Duane A. Evans announced that JAMES ALTON OLINDE, JR., age 47, of New Orleans, was sentenced yesterday after previously pleading guilty to a bank robbery.
U.S. District Court Judge Lance M. Africk sentenced OLINDE to 175 months of incarceration, to be followed by three years of supervised release.
According to court documents, on August 11, 2016, a white male entered the Gulf Coast Bank and Trust located at 201 North Carrollton Avenue in New Orleans. The male was wearing a dark shirt, dark pants, and a dark hat with white writing on it. The male approached the teller counter and presented a demand note that contained words to the effect of “YOU'RE BEING ROBBED. I WANT THE MONEY.” The teller gave the male $3,187.00 in United States currency and he left the bank.
Later, agents received tips that identified the robber as OLINDE. OLINDE was also identified from a bank surveillance photograph that was published by local new media sources. A video recording from a surveillance camera that was positioned near the bank showed OLINDE park a Chevrolet Tahoe and retrieve a bicycle from the rear of the vehicle. OLINDE road the bicycle near and left it near the corner of David Drive and Canal Boulevard. A short time later, OLINDE ran back to the driver's side of the Tahoe. Later that day, agents received a tip that OLINDE was at a Mississippi casino. At approximately 10:00 p.m., agents located OLINDE’s Tahoe in the garage of the casino. Agents looked through the window of the Tahoe and saw the hat that OLINDE wore during the bank robbery. Agents located OLINDE at the casino and he was arrested.
U.S. Attorney Evans praised the work of the FBI New Orleans Division Office in investigating this matter. Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.