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Tuesday 5 December 2017
Bluefield felon pleads guilty to federal gun crimeRead the Press Release
BLUEFIELD, W.Va. – A Bluefield man pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Cory Lee Callen, 27, entered his guilt plea to possession of a firearm by a convicted felon.
In late March 2017, Callen’s former fiancé obtained a domestic violence protective order against him. On March 29, 2017, officers with the Bluefield Police Department escorted her to the Washington Street apartment in Bluefield that she formerly shared with Callen to collect her personal belongings. While there, officers located three loaded firearms in a safe in Callen’s bedroom, along with a variety of ammunition. The guns law enforcement discovered were a CBC, Mossberg International, Model 715T, .22 caliber rifle, a Marlin, Model 782, .22 caliber rifle, and a Zijang, Model Catamount Fury, 12 gauge shotgun. Callen was prohibited from possessing any firearms under federal law because of two felony convictions in 2012 in Mercer County Circuit Court, one for first degree robbery and one for wanton endangerment.
Callen faces up to 10 years in federal prison when he is sentenced on April 17, 2018.
The Bluefield Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney R. Gregory McVey is handling the prosecution. Senior United States District Judge David A. Faber presided over the plea hearing.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Anderson Tax Preparer Guilty of FraudRead the Press Release
Columbia, South Carolina –------- United States Attorney, Beth Drake, announced today that Shirley Carson, age 49, of Anderson, South Carolina, pled guilty as charged to a twenty count Indictment charging her with filing false income tax returns with the Internal Revenue Service. The plea was accepted by United States District Court Judge Bruce H. Hendricks sitting in Greenville, South Carolina. Judge Hendricks will sentence Carson at a later date.
The facts presented at the guilty plea established that Carson operated a small business doing income tax returns out of her home in the Anderson area. Carson developed a reputation as being able to obtain significant tax refunds for lower income clients. For tax years 2012 and 2013, Carson prepared the 19 fraudulent returns which comprise Counts 2-20 of the Indictment. In these returns Carson was able to generate large refunds by falsely stating that the taxpayers had dependents who did not exist and medical or mortgage expense which had not been paid. Additionally, as charged in Count One of the Indictment, Carson filed a false return for herself in which she used counterfeit W-2 forms to make it appear that she had paid taxes through withholdings which she had not, which caused a refund to which she was not entitled.
United States Attorney Drake stated that the case was investigated by agents of the Criminal Investigative Division of the Internal Revenue Service and prosecuted by Assistant United State Attorney David C. Stephens of the Greenville office.
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Additional Corruption Charges Filed Against Bucks County Public OfficalsRead the Press Release
John I. Waltman, 59, of Trevose, Pennsylvania, Robert P. Hoopes, 70, of Doylestown, Pennsylvania, and Bernard T. Rafferty, 62, of Langhorne, Pennsylvania, were charged in a second superseding indictment[1] with one count of conspiracy to commit money laundering, three counts of money laundering, one count of honest services wire fraud, three counts of honest services mail fraud, and one count of Hobbs Act extortion under color of official right, announced United States Attorney Louis D. Lappen.
Moreover, the second superseding indictment added further corruption charges against Waltman and Hoopes. Specifically, Waltman was charged with five additional counts of Hobbs Act extortion under color of official right, three counts of Travel Act bribery, and two counts of wire fraud. Hoopes was charged with three additional counts of Hobbs Act extortion under color of official right, three counts of Travel Act bribery, and two counts of wire fraud.
Hoopes was also charged with one count of witness tampering. Kevin M. Biederman, 34, was also charged with one count of conspiracy to commit money laundering, three counts of money laundering, and one count of bank bribery.
From October 2010 to December 2016, Waltman was a Magisterial District Judge in Bucks County, Pennsylvania. From February 2016 to December 2016, Hoopes was the Director of Public Safety in Lower Southampton Township, Pennsylvania. In this position, Hoopes had authority over all police, fire, and emergency operations in the township. Hoopes previously operated a legal practice in Doylestown, Pennsylvania. From 1998 to December 2016, Rafferty was a Deputy Constable in Bucks County. Rafferty controlled Raff’s Consulting LLC, a corporation registered with the Pennsylvania Department of State on May 30, 2011. From 2012 to March 2016, Biederman was a business development manager at Philadelphia Federal Credit Union (“PFCU”).
The second superseding indictment alleges that, from 2014 to 2016, Waltman and Hoopes solicited, extorted, and attempted to extort bribes and kickbacks from numerous businesses in exchange for Waltman’s and Hoopes’ influence over Lower Southampton Township’s Board of Supervisors, Solicitor, officers, and employees. In one such alleged scheme, Waltman and Hoopes solicited bribe payments from the salesman of an outdoor advertising company in exchange for offering their influence to reduce lease payments from the company to Lower Southampton Township.
Moreover, in November 2016, Waltman, Hoopes, and Rafferty allegedly accepted a bribe of $1,000, as well as the promise of other fees, in exchange for Waltman, Hoopes, and Rafferty to use their positions as public officials to “fix” a traffic case before Waltman in Bucks County Magisterial District Court. In January 2017, Hoopes allegedly tried to influence a witness to falsely testify before the federal grand jury regarding the disposition of this $1,000 bribe.
In addition, from June 2015 to November 2016, Waltman, Hoopes, Rafferty, and Biedmeran allegedly conspired to launder funds represented to be proceeds from health care fraud, illegal drug trafficking, and bank fraud. From June 2016 to August 2016, Waltman, Hoopes, Rafferty, and Biederman allegedly laundered $400,000 in cash, represented to be proceeds from health care fraud and illegal drug trafficking, and took money laundering fees totaling $80,000 in cash.
Further, in June 2015, Biederman, who was then a PFCU employee, allegedly solicited and accepted a bribe of $1,600 in exchange for agreeing to influence PFCU’s approval of a loan.
If convicted, Waltman faces a maximum possible sentence of 335 years in prison, three years of supervised release, a $4.75 million fine, and a $1,900 special assessment.
If convicted, Hoopes faces a maximum possible sentence of 315 years in prison, three years of supervised release, a $4.5 million fine, and a $1,800 special assessment.
If convicted, Rafferty faces a maximum possible sentence of 180 years in prison, three years of supervised release, a $2.25 million fine, and a $900 special assessment.
If convicted, Biederman faces a maximum possible sentence of 110 years in prison, five years of supervised release, a $2 million fine, and a $500 special assessment.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Vineet Gauri.
[1] An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Active-Duty U.S. Navy Commander Sentenced for Conspiring with Foreign Defense Contractor to Defraud the U.S. NavyRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – December 1, 2017
SAN DIEGO – U.S. Navy commander Bobby Pitts was sentenced today to 18 months in prison, a $15,000 fine and $7,500 in restitution for conspiring to impede the Navy’s investigation of Singapore-based defense contractor Leonard Glenn Francis.
Pitts, 48, of Chesapeake, Va., pleaded guilty to one count of conspiracy to defraud the United States, admitting that he conspired to protect Francis, owner and chief executive of Glenn Defense Marine Asia (GDMA) from allegations of wrongdoing.
Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving “scores” of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and gifts – from cash, prostitutes and luxury travel to Cuban cigars, Kobe beef and Spanish suckling pigs.
In pronouncing sentence today, U.S. District Judge Janis L. Sammartino told the defendant that in committing his crime, Pitts “betrayed the Navy and betrayed the Country.”
According to admissions made as part of his plea agreement, from August 2009 to May 2011, Pitts served as the Officer in Charge of the U.S. Navy’s Fleet Industrial Supply Command (FISC) in Singapore. As part of his duties, Pitts was responsible for overseeing the legal and ethical execution of the U.S. Navy’s ship husbanding contracts in the Pacific, including those held by Francis.
In 2009 and 2010, Pitts learned that Naval Criminal Investigative Service and several civilian employees of the U.S. Navy were investigating whether Francis was over-billing the U.S. Navy on ship husbanding contracts. In fact, Pitts had access to internal U.S. Navy documents pertaining to investigative steps that the U.S. Navy was considering and admitted that he shared this information with Francis, with the intent to impede and obstruct the U.S. Navy’s oversight of its contracts with GDMA.
On Nov. 23, 2010, for example, Pitts forwarded to a representative of GDMA an internal U.S. Navy email discussing FISC’s intention to contact officials with the Royal Thai Navy to determine whether GDMA had been billing the U.S. Navy for force protection services in fact provided by the Thai government.
“Pitts deliberately and methodically undermined government operations and in doing so, diverted his allegiance from his country and colleagues to a foreign defense contractor, and for that, he is paying a high price,” said U.S. Attorney Adam Braverman.
So far, 19 of 28 defendants charged in the U.S. Navy bribery and fraud scandal have pleaded guilty.
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division.
DEFENDANT Case Number: 16-CR-1207
Commander Bobby Pitts Age 48 Chesapeake, Virginia
SUMMARY OF CHARGES
Conspiracy to Defraud the United States, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, a $250,000 fine or twice the gross gain or loss from the offense, whichever is greater
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Monday 4 December 2017
Wheeling man sentenced for cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling, West Virginia man was sentenced today to 32 months incarceration for cocaine distribution, United States Attorney Bill Powell announced.
Sylvester “Sly” Walker, age 24, pled guilty to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location” in August 2017. He admitted to distributing cocaine near Luau Manor in Ohio County on January 25, 2017.
Assistant U.S. Attorney Randolph J. Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Webster Man Arrested and Charged with Possession of Child PornographyRead the Press Release
BOSTON - William Shenette, 31, was arrested on Friday, Dec. 1, 2017, and charged in federal court in Worcester with possession of child pornography.
On Dec. 1, 2017, a search warrant was executed at Shenette’s residence in Webster where videos containing prepubescent children engaged in sexually explicit conduct, including oral and anal sex with adults, were discovered on a tablet that belonged to Shenette.
The charge provides for a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Karin M. Bell of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Waterloo Man Sentenced to 41 Months in Federal Prison for Stealing a GunRead the Press Release
A man who stole a gun from a licensed Waterloo firearms dealer was sentenced on November 30, 2017, to more than three years in federal prison.
Sahjit Mcyle Philips, age 19, from Waterloo, Iowa, received the prison term after a June 1, 2017, guilty plea to theft of a firearm from a licensed firearms dealer.
In a plea agreement, Phillips admitted going to Levi Brothers Jewelers in Waterloo while the store was open. When an employee who was assisting him stepped away, Phillips stole a .45 caliber firearm. Phillips ran from the store with the gun. He then went to and entered an apartment without knowing who lived there. Phillips took a cell phone from the resident and hid the gun in a closet. Law enforcement arrested Phillips a short time later near the apartment and recovered the gun.
Phillips was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Phillips was sentenced to 41 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Phillips currently has charges pending in Black Hawk County for intimidation with a dangerous weapon, willful injury-causing bodily injury, and carrying weapons relating to an incident on March 7, 2017. In those charges, Phillips is alleged to have pulled a firearm from his waistband and fired multiple shots at another individual, hitting him in the buttocks. As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Federal Bureau of Investigation, Waterloo Police Department, Black Hawk County Sheriff’s Office, and ATF.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02001-01.
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U.S. Attorney’s Office Reaches Agreement with the Michigan State Court Administrative Office and Michigan Supreme Court to Ensure Effective Communication in the Michigan CourtsRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached an agreement with the Michigan State Court Administrative Office and Michigan Supreme Court (Michigan Courts) to resolve several effective communication complaints made under the Americans with Disabilities Act (“ADA”) against various courts, Acting U.S. Attorney Daniel L. Lemisch announced today.
The complainants, who are Deaf, alleged that the courts failed to provide them with an American Sign Language (ASL) interpreter when they tried to access a variety of court services including meetings with Friend of the Court employees, video arraignments, appearing before a judge in a civil case, and observing a child’s court case. Without access to interpreters, the complainants were unable to effectively participate in or understand the court proceedings.
The ADA requires that public entities provide effective communication to all individuals with disabilities who seek to participate in or benefit from their services, programs or activities. “Effective communication” means that communication with persons who are deaf or hard of hearing should be as effective as communication with others. Public entities must provide auxiliary aids and services, including qualified and certified ASL interpreters, at no cost, and give primary consideration to the preferences of the individual with a disability when determining what aids and services to provide in order to achieve effective communication.
In a Letter of Resolution, the Michigan Courts agreed to ensure that there is an ADA plan in place at each court, and that each court will have a designated ADA coordinator. The courts will provide, at no charge, appropriate auxiliary aids and services necessary to afford people with disabilities an equal opportunity to participate in and enjoy the benefits of court services, activities and programs, and will not require individuals to bring someone with them to interpret or facilitate communication. They will prominently post signs informing people of the availability of interpreters and other auxiliary aids and services, and will provide training to judges and court personnel about their obligations under the ADA. In addition, some of the complainants will receive a modest amount of compensatory damages.
“Everyone, regardless of disability, has the right to equal access to our courts,” said Lemisch. “Whether you are meeting with court staff, watching a family member’s court case, or appearing before a judge, if you have a disability, the ADA requires that the court provide you with the tools to understand the proceedings and communicate effectively with court personnel. I applaud the Michigan Courts for taking steps to ensure that people who are Deaf, DeafBlind or Hard of Hearing will be able to fully access our courts and the services that they provide.”
Those interested in finding out more about this resolution or the obligations of public entities under the ADA may call the U.S. Attorney’s Office Civil Rights Hotline at 313-226-9151, or send an email to [email protected].
Information is also available at the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or at www.ada.gov.
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Tuba City Man Sentenced to Prison for Involuntary ManslaughterRead the Press Release
PHOENIX – Today, Brennan Lee Sumatzkuku, 23, of Tuba City, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 36 months in federal prison, followed by three years of supervised release. Sumatzkuku had previously pleaded guilty to one count of involuntary manslaughter.
On Jan. 22, 2017, Sumatzkuku, an enrolled member of the Hopi Nation, was driving a vehicle with two passengers on the Navajo Nation reservation. In dark and snowy conditions, Sumatzkuku, whose blood alcohol content was later determined to be .188, drove at a high rate of speed and lost control of the vehicle, causing all three occupants to be ejected. One victim, 29, an enrolled member of the Hopi Nation, was pronounced dead at the scene, and another victim, 20, also an enrolled member of the Hopi Nation, was seriously injured.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Criminal Investigations. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-1824-PCT-DLR
RELEASE NUMBER: 2017-119_ Sumatzkuku
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Trucker Sent to Prison for Trafficking 33 Kilograms of CocaineRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old Edinburg man has learned his fate following his involvement in a conspiracy to possess with the intent to distribute cocaine, announced Acting U.S. Attorney Abe Martinez. Hugo Morales pleaded guilty Aug. 3, 2017, admitting he conspired with others to distribute 33 kilograms of cocaine.
Today, Senior U.S. District Judge Janis Graham Jack handed Morales a 70-month sentence to be immediately followed by five years of supervised release.
On Feb. 11, 2017, authorities conducted a roadside inspection of the tractor-trailer Morales was driving. At that time, more than 33 kilograms of cocaine was found hidden inside tarps strapped on his flatbed trailer.
As part of his plea, Morales also agreed to the forfeiture of five vehicles including a Hummer H2, a Chevrolet Corvette, a Chevrolet Camaro and a Harley Davidson Motorcycle as well as cash and jewelry.
Morales was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigations with assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Texas Resident Pleads Guilty to Providing Material Support to ISISRead the Press Release
Asher Abid Khan, 23, of Spring, Texas, pleaded guilty today to providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Abe Martinez and Special Agent in Charge Perrye K. Turner of the FBI’s Houston field office made the announcement.
The investigation began in 2014 when Khan and his friend, who was living in South Texas, devised a plan to travel to Turkey and then to Syria for the purpose of fighting on behalf of ISIS. Khan had been living with a relative in Australia. Prior to leaving for Turkey from there, Khan told Mohamed Zuhbi, a Turkish-based foreign terrorist fighter facilitator, that he wanted to join ISIS.
Khan provided instructions to his friend on travel and how to reach him once Khan arrived in Turkey. During this part of the planning phase, it was Khan - not his friend - who was in touch with Zuhbi. On Feb. 24, 2014, Khan and his friend met in Istanbul, Turkey. At that time, Khan gave his South Texas friend money, knowing he intended to travel to Syria and join and fight with ISIS.
Khan then departed from the Istanbul Airport in Turkey and returned to the United States after his family tricked him into coming home to Houston because of an alleged hospitalization of his mother.
As soon as Khan returned to the U.S., he contacted Zuhbi with the purpose of introducing him to his friend so he could enter Syria and join ISIS as a fighter with Zuhbi’s help. Khan then provided to his friend a Turkish cell phone number for reaching Zuhbi. The following day, Khan’s friend sent an electronic message to Khan indicating he had “been delivered :),” by Zuhbi, but that he was not with ISIS yet. Over the next few months, the friend attended fighter training camps and stayed in touch with Zuhbi and Khan. During that time, Khan offered his friend money and instructed him to try to get to ISIS.
On Aug. 11, 2014, the friend finally made it to ISIS with Khan and Zuhbi’s assistance. After September 2014, he had ceased all forms of communications. On Dec. 25, 2014, the friend’s mother received an electronic message explaining that her son had died while fighting.
Zuhbi is still at large and is believed to be residing in either Turkey or Syria. There are pending criminal charges in the Southern District of Texas against Zubhi. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
U.S. District Judge Lynn N. Hughes accepted the guilty plea today and has set sentencing for March 5, 2018 at 1:30 p.m. At that time, Khan faces up to 15 years in federal prison and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force conducted the investigations. Assistant U.S. Attorneys Carolyn Ferko, Alamdar Hamdani and Steve Mellin of the Southern District of Texas are prosecuting the case with the assistance of the Counterterrorism Section of the Justice Department’s National Security Division.
Texas Resident Convicted of Providing Material Support to ISISRead the Press Release
HOUSTON – Asher Abid Khan, 23, of Spring, pleaded guilty today to providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General for National Security Dana J. Boente and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
“We aggressively investigate and prosecute persons who provide material support to terrorist organization like ISIS,” said Martinez. “Khan provided ISIS a battlefield soldier to further the terrorist organization’s violent agenda. Khan’s guilty plea is indicative of the priority this office has placed on those who would give aid and comfort to terrorists operating in the United States and abroad. ”
The investigation began in 2014 when Khan and his friend, who was living in South Texas, devised a plan to travel to Turkey and then to Syria for the purpose of fighting on behalf of ISIS. Khan had been living with a relative in Australia. Prior to leaving for Turkey from there, Khan told Mohamed Zuhbi, a Turkish-based foreign terrorist fighter facilitator, that he wanted to join ISIS.
Khan provided instructions to his friend on travel and how to reach him once Khan arrived in Turkey. During this part of the planning phase, it was Khan - not his friend - who was in touch with Zuhbi. On Feb. 24, 2014, Khan and his friend met in Istanbul, Turkey. At that time, Khan gave his South Texas friend money, knowing he intended to travel to Syria and join and fight with ISIS.
Khan then departed from the Istanbul Airport in Turkey and returned to the United States after his family tricked him into coming home to Houston because of an alleged hospitalization of his mother.
As soon as Khan returned to the U.S., he contacted Zuhbi with the purpose of introducing him to his friend so he could enter Syria and join ISIS as a fighter with Zuhbi’s help. Khan then provided to his friend a Turkish cell phone number for reaching Zuhbi. The following day, Khan’s friend sent an electronic message to Khan indicating he had “been delivered :),” by Zuhbi, but that he was not with ISIS yet. Over the next few months, the friend attended fighter training camps and stayed in touch with Zuhbi and Khan. During that time, Khan offered his friend money and instructed him to try to get to ISIS.
On Aug. 11, 2014, the friend finally made it to ISIS with Khan and Zuhbi’s assistance. After September 2014, he had ceased all forms of communications. On Dec. 25, 2014, the friend’s mother received an electronic message explaining that her son had died while fighting.
Zuhbi is still at large and is believed to be residing in either Turkey or Syria. There are pending criminal charges in the Southern District of Texas against Zubhi. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
U.S. District Judge Lynn N. Hughes accepted the guilty plea today and has sentencing for March 5, 2018, at 1:30pm. At that time, Khan faces up to 15 years in federal prison and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force conducted the investigations. Assistant U.S. Attorneys Carolyn Ferko, Alamdar Hamdani and Steve Mellin of the Southern District of Texas are prosecuting the case along with the Counterterrorism Section of the Justice Department’s National Security Division.
Suburban Man Convicted in Second Federal CaseRead the Press Release
HOUSTON – A 54-year-old Kingwood man has entered a guilty plea to failing to appear in federal court for his conviction related to a Houston-area mortgage fraud scheme, announced Acting U.S. Attorney Abe Martinez.
Oscar Cantalicio Ortiz was previously convicted of conspiring to commit bank, mail and wire fraud. He had been permitted to remain on bond pending his sentencing, but was ordered to wear a GPS monitoring device secured around his leg as a condition of his release. On April 21, 2017, the device was cut off and left on the side of the road in southwest Houston. His vehicle was later found abandoned in a parking lot in the same area of town.
On April 24, 2017, Ortiz was set to appear before U.S. District Judge Kenneth M. Hoyt for sentencing in the mortgage fraud scheme. He failed show for that hearing.
On Aug. 23, 2017, he turned himself in to the U.S. Embassy in Mexico City, Mexico. Ortiz told the FBI at the Embassy that he was a fugitive from the United States and had decided to flee because he wanted more time to work on a project. He was flown back to Houston the following day.
Upon his arrival, agents noted that Ortiz had changed his appearance by growing facial hair and dying it and his hair red. Ortiz admitted he had purchased a second car to replace the one he abandoned and drove across the border into Mexico where he stayed until his arrest.
While a fugitive, Judge Hoyt imposed a 262-month term of imprisonment for the conspiracy charge in absentia.
He is set for sentencing on the failure to appear charge Feb. 12, 2018. At that time, he faces another possible 10 years in prison. He will remain in prison pending that hearing.
The FBI conducted the investigation of both cases. Assistant U.S. Attorney Melissa Annis is prosecuting the cases.
Statement of U.S. Attorney Annette L. Hayes on Seattle Police Department Chief Kathleen O’TooleRead the Press Release
Kathleen O’Toole has been a true partner in progress on police reform and a leader in advancing innovative approaches to public safety in Seattle, and by her example, around the country. I am grateful for her professionalism, wisdom, and friendship.
Under her leadership, the Seattle Police Department transformed how it served the City of Seattle by implementing new policies, training and accountability around uses of force, crisis intervention, and biased policing. Chief O’Toole guided the department during this transformational period, set clear expectations and high standards for every officer, and built strong relationships with the many communities and neighborhoods that the Department serves. She also demonstrated clearly that civil rights reform goes hand-in-hand with increased public and officer safety.
The hallmark of reform is that it must be bigger than any one person or leader. As we made clear in our most recent filing with the Court, under Chief O’Toole’s leadership, we believe that SPD has come into compliance with the first phase of the consent decree and has the systems and structures in place to continue its reform efforts. I look forward to working with Interim Chief Carmen Best to continue pushing reform forward and keeping the people of Seattle safe.
Stamford Man Sentenced to More Than 5 Years in Prison for Selling Crack in Connecticut and Heroin in VermontRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WAYNE ALEXANDER, also known as “Uncle Easy” and “Bones,” 52, of Stamford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 64 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine and heroin.
According to court documents and statements made in court, between February 2015 and April 2015, law enforcement officers made three controlled purchases of crack cocaine, totaling approximately 130 grams, from ALEXANDER.
ALEXANDER was arrested on a federal criminal complaint on May 11, 2015, and was released on bond. On April 4, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack cocaine”).
On May 11, 2016, a federal grand jury in Vermont returned an indictment charging ALEXANDER with one count of distributing heroin on April 2, 2016. The case was transferred to the District of Connecticut for further prosecution and, on April 18, 2017, ALEXANDER pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
ALEXANDER has been detained since May 11, 2016.
The Connecticut case was investigated by the FBI’s Bridgeport Safe Streets Task Force, Drug Enforcement Administration, Bridgeport Police Department and Stamford Police Department, and the Vermont case was investigated by the Vermont Drug Task Force.
This matter was prosecuted by Assistant U.S. Attorney Douglas P. Morabito of the District of Connecticut and Assistant U.S. Attorney Christina E. Nolan of the District of Vermont.
South Bend Man SentencedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Tyrone Miller, age 31, of South Bend, Indiana, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possessing a firearm by a convicted felon.
Miller was sentenced to eighty-seven (87) months imprisonment followed by two (2) years of supervised release.
According to documents in this case, a jury convicted Miller of felon in possession of a firearm on July 18, 2017. During the early morning hours of February 11, 2017, two police officers were dispatched to the scene of a car crashed into a pole at an intersection in South Bend. Mr. Miller was in the driver’s seat, alone and apparently uninjured. At the accident scene, one of the police officers began a pat-down. Midway during the pat-down—and before the officer was able to pat down the front waist of Mr. Miller—Mr. Miller struggled and tried to pull away from the officer. With the help of the second officer, Mr. Miller was immobilized and placed in the back of a patrol vehicle, without his pat-down having been completed. Mr. Miller was then brought to the St. Joseph County Jail for booking. At the jail, when the officers opened the back door of the patrol vehicle in order to get Mr. Miller out of the vehicle, the officers found a handgun on the floor of the vehicle where Mr. Miller’s feet had been.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the South Bend Police Department. The case was handled by Assistant U.S. Attorney Luke Reilander.
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Shreveport man sentenced to 46 months in prison for stealing 44 firearmsRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Shreveport man was sentenced last week to 46 months in prison for stealing 44 firearms from a Princeton gun shop.
Ryan P. Hiroms, 26, of Shreveport, was sentenced Friday by U.S. District Judge Elizabeth E. Foote on one count of theft of a firearm from a federal firearms licensee. He was also sentenced to three years of supervised release and was ordered to pay $27,723.61 restitution. According to the August 7, 2017 guilty plea, law enforcement agents responded to a call on November 30, 2016 of a burglary at a gun shop in Princeton, La. Someone had broken into the building and stolen 44 firearms. Employees reported that two men had entered the business the day before and were looking at the firearms that were later stolen, and employees said the two men were also acting suspicious. A customer identified Hiroms as one of the two men who had entered the business. Agents also used video footage and fingerprints from one of the handguns Hiroms examined that day to identify him. Agents arrested Hiroms on December 2, 2016. They found a firearm in his vehicle that matched one that was stolen, and he was wearing attire similar to that seen in the business’s video footage. He later admitted to breaking into the gun shop and stealing the firearms.
The ATF needs help locating the remaining firearms stolen as well as other suspects in the case. If you have any information, call the ATF’s Shreveport Field Office at (318) 424-6850.
The ATF and the Bossier Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Schuele Boys Gang Member Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Demario James, 35, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine, was sentenced to time served (over 40 months) by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that between June 2013 and July 2014, James conspired with co-defendant Michael Robertson and other Schuele Boys associates and gang members to distribute cocaine in the City of Buffalo. The defendant purchased cocaine from Michael Robertson and then broke down the cocaine for distribution to customers.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana.
James is one of 28 Schuele Boys Gang members, associates and other individuals arrested in this case. To date, 27 of the defendants have been convicted.
Today’s sentencing the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen.Saipan Restaurant Distributes $40,000 in Back Pay to U.S. Workers Under Justice Department SettlementRead the Press Release
The Justice Department announced today that J.E.T. Holding Co. Inc. (JET) has paid $40,000 to nine U.S. citizens pursuant to a settlement with the department. The payments, which JET distributed last week, are part of a Jan. 17, 2017, settlement that resolved claims that JET discriminated against U.S. workers in favor of temporary foreign visa workers, in violation of the Immigration and Nationality Act (INA).
In its investigation leading up to the settlement, the department found that from approximately January to June 2016, JET, which operates a restaurant in Saipan, routinely refused to hire qualified U.S. citizens and other work-authorized individuals, including lawful permanent residents, for dishwasher positions because of their citizenship status. Instead, JET preferred to fill the positions with temporary foreign visa workers, according to the department’s investigation. Under the INA, employers cannot prefer to hire temporary foreign visa workers over available and qualified U.S. workers based on citizenship status. Individuals born in Saipan are U.S. citizens and its population includes work-authorized lawful permanent residents, asylees and refugees.
After the investigation was resolved through a settlement, the department’s Civil Rights Division and the United States Attorney Office for the District of Guam collaborated to identify individuals affected by the alleged discrimination. The department determined that nine U.S. citizens were eligible to receive back pay, and the payments JET distributed to them last week exhausted the $40,000 back pay fund established under the agreement.
“We are pleased that U.S. workers received back pay to compensate them for the discrimination they faced, and that JET has worked to improve its hiring practices,” said John M. Gore, Acting Assistant Attorney General of the Civil Rights Division. “The Justice Department is committed to holding employers accountable when they place U.S. workers in a second class status.”
The division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The law prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation; and intimidation.
In February 2017, IER launched its Protecting U.S. Workers Initiative, an initiative aimed at targeting, investigating, and bringing enforcement actions against companies that discriminate against U.S. workers in favor of foreign visa workers. IER filed the first suit as part of the Initiative in October against a Loveland, Colorado, company for allegedly discriminating against U.S. workers.
To learn more about the protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit IER’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral, should contact the worker hotline above for assistance.
Saipan Restaurant Distributes $40,000 in Back Pay to U.S. Workers Under Justice Department SettlementRead the Press Release
WASHINGTON – The Justice Department announced today that J.E.T. Holding Co. Inc. (JET) has paid $40,000 to nine U.S. citizens pursuant to a settlement with the department. The payments, which JET distributed last week, are part of a Jan. 17, 2017, settlement that resolved claims that JET discriminated against U.S. workers in favor of temporary foreign visa workers, in violation of the Immigration and Nationality Act (INA).
In its investigation leading up to the settlement, the department found that from approximately January to June 2016, JET, which operates a restaurant in Saipan, routinely refused to hire qualified U.S. citizens and other work-authorized individuals, including lawful permanent residents, for dishwasher positions because of their citizenship status. Instead, JET preferred to fill the positions with temporary foreign visa workers, according to the department’s investigation. Under the INA, employers cannot prefer to hire temporary foreign visa workers over available and qualified U.S. workers based on citizenship status. Individuals born in Saipan are U.S. citizens and its population includes work-authorized lawful permanent residents, asylees and refugees.
After the investigation was resolved through a settlement, the department’s Civil Rights Division and the United States Attorney Office for the District of Guam collaborated to identify individuals affected by the alleged discrimination. The department determined that nine U.S. citizens were eligible to receive back pay, and the payments JET distributed to them last week exhausted the $40,000 back pay fund established under the agreement.
“We are pleased that U.S. workers received back pay to compensate them for the discrimination they faced, and that JET has worked to improve its hiring practices,” said John M. Gore, Acting Assistant Attorney General of the Civil Rights Division. “The Justice Department is committed to holding employers accountable when they place U.S. workers in a second class status.”
The division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The law prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation; and intimidation.
In February 2017, IER launched its Protecting U.S. Workers Initiative, an initiative aimed at targeting, investigating, and bringing enforcement actions against companies that discriminate against U.S. workers in favor of foreign visa workers. IER filed the first suit as part of the Initiative in October against a Loveland, Colorado, company for allegedly discriminating against U.S. workers.
To learn more about the protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit IER’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral, should contact the worker hotline above for assistance.
Public Corruption Charges Brought Against Additional Defendants in Ongoing Investigation into Fraudulent California Commercial Driver’s LicensesRead the Press Release
SACRAMENTO, Calif. — Three indictments have been unsealed, charging several DMV employees and others for their roles in a conspiracy to sell California Class A commercial driver’s licenses (CDL) to unqualified drivers, U.S. Attorney Phillip A. Talbert announced. These indictments are related to three earlier indictments stemming from the same investigation.
U.S. v. Jagpal Singh, et al., 2:17-cr-210 MCE
On November 16, 2017, five Southern California residents were charged in a 43-count indictment. According to court documents, Jagpal “Paul” Singh, 59; Jagdish Singh, 55; Tajinder Singh, 34; and Parminder Singh, 27, allegedly paid bribes to DMV employees to access and alter records in the DMV’s database in Sacramento. Records were allegedly altered to show that applicants for CDLs had passed the required tests when, in truth, they had not done so, and in some cases had not even taken the tests. In so doing, this caused the DMV to issue permits and completed CDLs despite the applicants not having taken or passed those tests. Jagdish Singh and Tajinder Singh are also alleged to have conspired with co‑defendant Shawana Denise Harris, 47, who worked at the Rancho Cucamonga DMV Office, paying her to get commercial permits for applicants without them having to take or pass the written CDL test. On November 2, 2017, Kari Scattaglia and Lisa Terraciano pleaded guilty for their roles in the conspiracy. (case number 2:17-cr-187 GEB).
United States v. Mahboob, 2:17-cr-213 TLN
On November 16, 2017, Rahim Mahboob, 66, of Los Angeles, was charged in a 13-count indictment alleging that he conspired with Terraciano, paying her to alter DMV records to incorrectly indicate that applicants had passed written exams for CDLs when, in fact, they had not taken or passed those exams. These fraudulent entries in the DMV’s database caused the DMV to issue permits and ultimately CDLs to Mahboob’s clients.
United States v. Lima, et al., 2:17-cr-212 JAM
On November 16, 2017, two Stockton residents were charged in an 11-count indictment. According to court documents, Ruvila “Ruby” Lima, 49, and Poya “Sameer” Khanjan, 26, conspired with Juan Arturo Arroyo Gomez and Donald E. Freeman Jr. (charged in case number 2:17-cr-207 MCE) to acquire commercial driving permits for individuals who had not taken or passed the written exam. Freeman, a DMV employee in the Tracy DMV office, allegedly accessed the DMV database without authorization to alter DMV records to fraudulently show that the tests were passed. Freeman and Arroyo are scheduled to appear on December 13, 2017 for initial appearance and waiver of indictment, and to plead guilty to the information charging them with conspiracy to commit bribery, identity fraud, and unauthorized access to a computer, on December 14, 2017 at 10:00 a.m. before the Honorable Morrison C. England, Jr.
Additionally, on November 17, 2017, Aaron Gilliam, 50, of Los Angeles, pleaded guilty to conspiring to commit bribery, identity fraud, and unauthorized access of a computer (case number 2:17-cr-200 GEB). According to court documents, Gilliam was a DMV employee at the North Hollywood Office and accepted bribes in exchange for altering DMV records to provide permits for commercial driver’s licenses for applicants who had not taken or passed the necessary examinations.
The indictments are part of a series of ongoing investigations by the California Department of Motor Vehicles, Office of Internal Affairs, the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorneys Todd A. Pickles and Rosanne L. Rust are prosecuting the cases.
If convicted, the defendants each faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges as to the defendants who have not pleaded guilty are only allegations; these defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Owner of New York Tax Preparation Firm Pleads Guilty to Preparing Fraudulent Tax ReturnsRead the Press Release
A Brooklyn, New York, resident pleaded guilty today to aiding and assisting in the preparation of a fraudulent tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Bridget Rohde for the Eastern District of New York.
According to documents and information provided to the court, Maria Munoz, 45, owned and operated a Brooklyn-based tax preparation business called Munoz Multiservices Corporation. From 2010 through 2012, Munoz prepared fraudulent income tax returns for clients that included inflated or fictitious deductions for gifts to charity, unreimbursed employee expenses, personal property taxes and other expenses. Munoz agreed that she caused a tax loss of $136,789.
Sentencing is scheduled for April 26, 2018 before U.S. District Court Judge Kiyo A. Matsumoto. Munoz faces a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Rhode thanked special agents of the Internal Revenue Service Criminal Investigation, who conducted the investigation, and Assistant Chief Jorge Almonte and Trial Attorney Carl F. Brooker of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Owner of Michigan Home Health Agency Convicted in $1.6 Million Healthcare Fraud SchemeRead the Press Release
A federal jury found a Detroit home health agency owner guilty today for her role in a scheme involving approximately $1.6 million in fraudulent Medicare claims for home health services that were procured through the payment of kickbacks, and that were medically unnecessary and not provided.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Editha Manzano, 69, of Troy, Michigan, was convicted of one count of conspiracy to commit health care and wire fraud, one count of conspiracy to pay and receive kickbacks in connection with Medicare beneficiaries, and one count of health care fraud following a seven-day trial. Sentencing has been scheduled for April 19, 2018, before U.S. District Judge Gershwin Drain of the Eastern District of Michigan, who presided over the trial.
According to evidence presented at trial, from 2013 to 2016, Manzano and her co-conspirators engaged in a scheme to defraud Medicare of approximately $1.6 million in fraudulent claims for home health care services in connection with Anointed Care Services, a Detroit area home health care agency (Anointed). The evidence showed that Manzano paid illegal kickbacks for patients to sign up for home health care with Anointed. The evidence further showed that Manzano conspired with physicians to admit patients for home health care with Anointed when they did not qualify for such services. To make it appear that these patients did qualify, Manzano and her co-conspirators falsified medical records and signed false documents purporting to show that patients admitted to Anointed’s home health program satisfied Medicare’s requirements for admission, the evidence showed.
Five defendants were charged in this matter. Liberty Jaramillo, 67, of Troy, Michigan, pleaded guilty in June 2017 and is awaiting sentencing. Dr. Roberto Quizon, 71, of Bloomfield Hills, Michigan, pleaded guilty in June of 2017 and is awaiting sentencing. In addition, Dr. Victoria Gallardo-Navarra, 74, of Bloomfield Hills, Michigan was acquitted after trial and Juan Yrorita, RN, 63, of Sterling Heights, Michigan, pleaded guilty during trial and is awaiting sentencing.
This case was investigated by the Office of Inspector General of the U.S. Department of Health and Human Services and the FBI. Trial Attorneys Jacob Foster and Rebecca Szucs of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
No. 3 Defendant in RICO Indictment Targeting Northeast L.A. Gang Coalition Overseen by Mexican Mafia Admits Guilt to Federal ChargesRead the Press Release
LOS ANGELES – A Northeast Los Angeles gang member who was one of the top figures in a conspiracy that united three rival gangs under the authority of a Mexican Mafia member pleaded guilty today to federal charges and admitted being an active narcotics trafficker who worked to further the goals of the criminal enterprise.
Jonathan Zepeda, 28, a resident of Elysian Valley and a longtime member of the Frogtown gang, admitted in court today that he distributed methamphetamine and collected “taxes” from other narcotics dealers who were allowed to sell drugs in areas controlled by the coalition of three gangs.
Jonathan Zepeda pleaded guilty to conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to traffic methamphetamine, carrying a firearm in relation to a drug-trafficking crime, and being a felon in possession of firearms and ammunition.
As a result of today’s guilty pleas, Jonathan Zepeda will face a mandatory minimum sentence of 15 years in federal prison – and a potential sentence of life without parole – when he is sentenced by United States District Judge Philip S. Gutierrez on March 5.
Jonathan Zepeda’s brother – Santos Zepeda, a senior member of the Frogtown gang who helped manage the street gang coalition – pleaded guilty in August to conspiring to violate RICO and conspiring to traffic methamphetamine.
The Zepedas were among 22 defendants named in a 2015 federal racketeering indictment that outlined how Mexican Mafia member Arnold Gonzales ordered the unification of three street gangs that were traditional rivals. The “peace treaty” imposed by Gonzales in 2010 brought together the Frogtown, Toonerville and Rascals gangs, which worked together to control the narcotics trade and other illegal activities in an area that ran along the Los Angeles River from Elysian Park nearly to Burbank.
Because he was incarcerated in Pelican Bay State Prison after being convicted of murder, Gonzales appointed another Frogtown gang member, Jorge Grey, to be his emissary on the streets, according to the RICO indictment. Santos Zepeda served as Grey’s top lieutenant, provided narcotics to the racketeering enterprise, and coordinated the collection of “taxes” imposed on street-level drug dealers.
After Gonzales took control of the three gangs, he exercised his authority through Grey and criminal associates that included Santos Zepeda, according to the indictment. The organization generated revenue through extortion, specifically the imposition of taxes on the gangs and others who distributed narcotics in the territory controlled by the criminal enterprise. Members of the racketeering conspiracy allegedly implemented Gonzales’ orders, imposed discipline on those who attempted to violate the orders or contest the power of the enterprise, and collected firearms that were used to enforce their authority. When he pleaded guilty today, Jonathan Zepeda admitted possessing a number of firearms, including a machine gun.
The RICO indictment details numerous transactions involving narcotics and firearms, and also contains charges related to two shootings allegedly committed against individuals who defied the rules imposed by Gonzales and his associates.
The indictment targeting the Arnold Gonzales Organization is the result of Operation “Gig ‘em,” an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Violent Crime Impact Team; the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit; the Glendale Police Department; and the Los Angeles Police Department.
Out of the 22 defendants named in the indictment, 13 have pleaded guilty. The remaining nine defendants, including Grey, are scheduled to go on trial on March 6.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
This case is being prosecuted by Assistant United States Attorneys Carol Alexis Chen and Alexander B. Schwab of the Organized Crime Drug Enforcement Task Force.
Nine More Individuals Sentenced in Multi-State Methamphetamine Trafficking ConspiracyRead the Press Release
Nine more individuals have been sentenced to federal prison for their role in a multi-state methamphetamine trafficking conspiracy, including seven from Middle Tennessee and two from California, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
During the past week, the following individuals were sentenced by Chief U.S. District Court Judge Waverly D. Crenshaw, Jr:
- Sabrina Boblett, 49, of Castalian Springs, Tenn., was sentenced to 84 months in prison;
- Frank Bishop, 41, of Nashville, Tenn., was sentenced to 100 months in prison;
- Jason Johnston, 49, of Lebanon, Tenn., was sentenced to 84 months in prison;
- Gary Lester, 42, of Lebanon, Tenn., was sentenced to 108 months in prison;
- George Marsh, 52, of Lebanon, Tenn. was sentenced to 106 months in prison;
- Brenda McGinnis, 49, of Bakersfield, Calif., was sentenced to 150 months in prison;
- Herbert McGinnis, 49, of Bakersfield, Calif., was sentenced to 150 months in prison;
- Matthew Peeden, 30, of Lebanon, Tenn., was sentenced to 120 months in prison;
- Robert Pelletier, 34, of Lebanon, Tenn., was sentenced to 120 months in prison.
Brian Randall, 51, of Castalian Springs, Tenn., was previously sentenced in February 2017 to 24 years in prison.
According to court documents, between February 2015 and July 2016, Herbert and Brenda McGinnis shipped numerous kilograms of methamphetamine from California to the home of Jason Johnston in Lebanon, Tenn., and to Brian Randall’s home in Castalian Springs, Tenn., through FedEx and the U.S. Postal Service. Randall then mailed cash payments back to California and sold the methamphetamine to mid-level and street-level dealers in middle Tennessee for resale. During this investigation, agents seized over $60,000 in cash, numerous firearms, seven cars, two boats and approximately 5 kilograms of methamphetamine from members of the conspiracy.
This case was investigated by the Federal Bureau of Investigation; the United States Postal Inspection Service; the Tennessee Bureau of Investigation; the Lebanon Police Department; the Metro-Nashville Police Department; and the 15th Judicial District Drug Task Force. The case was prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
New Haven Man Admits to Role in Armed Robbery of Hamden Video Game StoreRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RASHON GRAY, also known as “Loke,” 24, of New Haven, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to a federal robbery charge stemming from the armed robbery of a Hamden store in April 2016.
According to court documents and statements made in court, at approximately 4:22 p.m. on April 27, 2016, two men and two women, who had their head and faces partially concealed, entered the Game X Change in Hamden. One of the men pulled out a gun and ordered the store’s three employees to get down on the ground. The man with the gun put his foot on an employee’s back and pressed the gun against the employee’s head and neck, threatening to kill the employee if he did not give him money and the keys to the display case. The employee complied and the four suspects took several items, including cell phones, an iPad, an iPod, “Beats” headphones, and a cash box that contained $830. The four ran out of the store to a waiting car.
Investigators subsequently identified GRAY as the individual who brandished the firearm and threatened the store employee.
GRAY was on state probation at the time of the offense. On May 6, 2016, police and probation officers found him in possession of a cell phone that had been taken during the robbery and his probation was revoked.
GRAY has been detained in federal custody since his arrest on July 21, 2017.
GRAY pleaded guilty to one count of Hobbs Act Robbery, an offense that carries a maximum term of imprisonment of 20 years. Judge Arterton scheduled sentencing for February 26, 2018.
Four other individuals have been charged and convicted as a result of this investigation.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hamden Police Department, with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Mexican National Sentenced for Possession with Intent to Distribute MarijuanaRead the Press Release
CORPUS CHRISTI, Texas – A 30-year-old citizen and national of Mexico has been ordered to federal prison for Marijuana trafficking, announced Acting U.S. Attorney Abe Martinez. Ismael Padron-Garcia pleaded guilty Aug. 3, 2017.
Today, U.S. District Judge Janis Graham Jack sentenced Padron to a total of 24 months imprisonment. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
On May 15, 2017, law enforcement learned of suspected illegal aliens on a train stopped approximately two miles north of the Refugio county line on Highway 77. Authorities responded to the scene and witnessed Padron-Garcia jump off of a gondola car. He was apprehended shortly thereafter in a nearby cornfield.
Inside of the train, they discovered several bundles later confirmed to contain marijuana, totaling 205.66 kilograms. The investigation later linked Padron to the bundles.
Padron-Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol, Drug Enforcement Administration, the Union Pacific Railroad Police and the Refugio County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Amanda L. Gould is prosecuting the case.
Mexican National Pleads Guilty to Importing MethRead the Press Release
LAREDO, Texas – A Mexican man has pleaded guilty to a conspiracy charge for his role in importing methamphetamine into the United States, announced Acting U.S. Attorney Abe Martinez.
On Oct. 8, 2017, Omar Martinez-Cervantes, 34, arrived at the Lincoln Juarez Bridge port of entry in Laredo driving a Chevrolet Cruze. At that time, he claimed to be driving to Houston to visit his family. However, agents soon discovered 20.48 kilograms of methamphetamine within the rocker panels of his vehicle. He initially claimed to have no knowledge of the drugs, however he later stated to agents that he thought he knew who may have put the drugs in the car.
At today’s hearing, he admitted he knowingly imported the methamphetamine into the United States.
Sentencing will be set at a later date before U.S. District Judge Diana Saldana. At that time, Hernandez faces a mandatory minimum of 10 years in federal prison and a possible $10 million fine. He will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Mexican National Pleads Guilty in Deadly Transporting CaseRead the Press Release
LAREDO, Texas – A Mexican man has pleaded guilty to a conspiracy charge for his role in an alien transporting event which resulted in the deaths in three persons, announced Acting U.S. Attorney Abe Martinez.
Omar Gonzalez-Herrera, 25, of Nuevo Laredo, Mexico, admitted during this re-arraignment today that he was hoping to be paid $1,500 in exchange for guiding a group of 14 persons across the Rio Grande River and into the United States.
Gonzalez-Herrera was originally arrested Aug. 2, 2017, upon the filing of a criminal complaint. On that date, Border Patrol (BP) agents in Laredo encountered footprints near the riverbanks of the Rio Grande River. After following the foot signs, agents encountered a group of 14 people who were all undocumented aliens.
The investigation led to the discovery that three people were swept away by the river current and ultimately died. One of the victims was a five-year-old boy.
Sentencing will be set at a later date before U.S. District Judge Diana Saldana. At that time, Gonzalez-Herrera faces up to life in federal prison and a possible $250,000 fine. He will remain in custody pending sentencing.
BP and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Mexican Citizen Sentenced to 66 Months in Federal Prison for Entering the U.S. After Previous RemovalRead the Press Release
DALLAS — Ignacio Arellano-Banuelos, 36, a citizen of Mexico, appeared this morning before U.S. District Judge David C. Godbey and was sentenced to 66 months in federal prison for reentering the United States illegally, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Arellano-Banuelos was convicted in April 2017, following a two-day trial, of one count of illegal reentry following deportation. He has been in custody since his arrest in June 2016 and will be deported after serving his sentence.
According to evidence presented at trial, on May 8, 2015 Arellano-Banuelos was found in the United States after having been deported and removed on September 10, 2009, without receiving consent from the United States Attorney General or the Secretary of the Department of Homeland Security to reapply for admission since the time of the previous deportation and removal.
U.S. Immigrations and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO) investigated the case. Assistant U.S. Attorney Shane Read and Special Assistant U.S. Attorney Lynn Javier prosecuted.
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Media AdvisoryRead the Press Release
There will be an Investiture Ceremony for United States Attorney Peter E. Deegan, Jr. on Friday, December 8, 2017, at 3:00 p.m. The ceremony will be held in Courtroom 1 of the federal courthouse located at 111 Seventh Avenue SE, Cedar Rapids, Iowa.
Credentialed members of the press are invited to use camera equipment during the ceremony. Use of camera equipment is otherwise prohibited in the federal courthouse.
Follow us on Twitter @USAO_NDIA.
Massachusetts Man Sentenced to 12 Years in Prison for Drug TraffickingRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that, Rafael Delacruz, a/k/a “Simba,” 55, previously of Lawrence, Massachusetts, was sentenced on Friday to serve twelve years in federal prison for selling heroin and fentanyl in southern New Hampshire.
According to court documents and statements made in court, Delacruz sold heroin and fentanyl in hand-to-hand exchanges with cooperating individuals inside a retail store in Plaistow, New Hampshire on July 8, October 20, and November 19, 2015. Delacruz also admitted to selling fentanyl to a cooperating individual on June 22, 2016, inside a retail store in Epping, New Hampshire. Each of the transactions was surveilled and recorded by law enforcement officers and, in at least one instance, on a store’s security surveillance video.
Delacruz pleaded guilty on August 18, 2017, to three counts of distributing a controlled substance. After his release from prison, Delacruz will be required to serve a six-year term of supervised release.
“Those who come to New Hampshire to distribute deadly drugs will be identified and prosecuted,” said Acting U.S. Attorney Farley. “Federal, state, and local law enforcement officers are working hard each day to stop the flow of fentanyl, heroin, and other drugs from coming into the Granite State. I salute the teamwork of the officers who assisted in this investigation. Thanks to their efforts, this drug trafficker will no longer be damaging our community.”
“Opioid abuse is at epidemic levels across New England and those suffering from opioid addiction need access to treatment and recovery,” said DEA Special Agent in Charge Michael J. Ferguson. “But those responsible for distributing lethal drugs like heroin and fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA is committed to aggressively pursuing Drug Trafficking Organizations or individuals who are coming from out of state to distribute these poisons in order to profit and destroy people’s lives. In response to the ongoing opioid epidemic DEA and its local, state and federal partners are committed to bringing to justice anyone who distributes these drugs.”
This matter was investigated by the Portsmouth (N.H.) Tactical Diversion Squad of the U.S. Drug Enforcement Administration and the Berwick (Maine) Police Department with the help of the York (Maine) and Ogunquit (Maine) police departments. The case was prosecuted by Assistant U.S. Attorney Bill Morse.
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Marijuana Grower / Distributor Sentenced to over 12 Years in Federal PrisonRead the Press Release
MARQUETTE, MICHIGAN —Spencer Troy Ward, age 56, formerly of Bruce Crossing, Michigan, was sentenced to 151 months (12 years, 7 months) in prison for his involvement in a marijuana production and distribution conspiracy that Ward led in Ontonagon, Iron and Marquette Counties in the Upper Peninsula of Michigan, announced U.S. Attorney Andrew Birge.
U.S. District Judge Paul Maloney also ordered Ward to pay the government $475,254.30, which constituted the gross proceeds of his illegal sales of marijuana. In addition, the Judge ordered the forfeiture of Ward’s 80-acre farm, which Ward used to manufacture marijuana.
Ward came to the attention of a Special Agent from the Bureau of Indian Affairs (BIA) and detectives from the Upper Peninsula Substance Enforcement Team (UPSET) in 2014, after law enforcement officers from the Lac Vieux Desert (LVD) reservation near Watersmeet, MI reported that marijuana produced and sold by Ward was making its way onto the LVD reservation.
Investigators from BIA and UPSET discovered that Ward and his associates were growing marijuana at Ward’s farm and operating marijuana stores in Watersmeet, Iron River and Marquette. Ward also had plans to open another marijuana store in Houghton. BIA and UPSET executed search warrants at Ward’s farm and the stores in February 2016, and found a large-scale, sophisticated grow operation that contained 186 marijuana plants in various stages of growth, and more than 100 pounds of processed marijuana.
Luzerne County Man Sentenced to Five Years in Prison for Possession of Firearms in Furtherance of Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dennis Couvertier, age 45, of Luzerne Borough, Pennsylvania, was sentenced on December 1, 2017, by U.S. District Court Judge Malachy E. Mannion to serve five years in prison for possession of firearms in furtherance of drug trafficking activity.
According to United States Attorney David J. Freed, Couvertier previously entered a guilty plea to the charge before Judge Mannion in May 2017. The charge stems from an incident in June 2015, in which investigators arrested Couvertier after he made a sale of cocaine to another individual. Investigators then served a search warrant at Couvertier’s residence in Luzerne Borough and seized a .45 caliber semi-automatic Taurus pistol, a 9mm Smith and Wesson semi-automatic pistol, 43 rounds of ammunition, $2,916 in United States Currency, drug paraphernalia and drug packaging materials.
In addition to the sentence of imprisonment, Judge Mannion ordered that Couvertier be supervised by a probation officer for three years after his release from prison.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms and the Kingston Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Last of 13 Pleads Guilty to Alien SmugglingRead the Press Release
LAREDO, Texas – A 26-year-old El Cenizo man has entered a guilty plea for his role in a conspiracy to smuggle undocumented aliens, announced Acting U.S. Attorney Abe Martinez. Jose Francisco Morales Jr. is the last of 13 to be convicted in the conspiracy in which illegal aliens were smuggled past Border Patrol checkpoints between September 2015 and June 2017.
Previously pleading guilty were the leaders of the organization - Jose Andres Gongora Jr., 34, Sandra Nelly Chapa-Gongora, 33, and Carlos Enrique Reyna-Garcia, 29, all of Laredo.
Other members of the organization acted as scouts, transporters and stash house operators and had also previously pleaded guilty. Those included Jose Andres Alberto Gongora Sr., 46, Maria De Lourdes Gongora, 36, Mario Adalberto Ramirez, 34, Juan Antonio Luna, 47, all of El Cenizo; Jose Garcia III, 36, Abraham Garza, 24, and Guillermo Valdovinos-Rios, 55, all of Laredo; Luis Rodriguez Jr., 19, of Dallas; and Joseph Graves, 25, of Savannah, Georgia.
Members of the smuggling organization would drop undocumented aliens off in the brush and then guide them around Border Patrol checkpoints. They would then pick up the aliens once they passed the checkpoints and transport them further north.
“The dismantlement of the organization resulted from a joint investigation between the Joint Task Force – West (JTF-W) South Texas Campaign Joint Targeting Team, U.S. Marshals Service and state and local law enforcement partners,” said JTF-W STC Chief of Staff Robert Duff. “Enhanced collaborations have reinforced our commitment to pursue dangerous criminal organizations.”
U.S. Magistrate Judge Diana Song Quiroga accepted the plea today. Sentencing will be set for a later date before U.S. District Judge Marina Garcia Marmolejo. At that times, each defendant faces up to 10 years in federal prison and a possible $250,000 maximum.
Border Patrol and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney (AUSA) Alfredo De La Rosa and Special AUSA Andrew Hunt are prosecuting the case.
LaSalle County Physician Guilty of Illegally Dispensing Prescription MedicationsRead the Press Release
CHICAGO — A LaSalle County physician admitted in federal court today that he illegally dispensed prescription medications, including opioids, to patients in exchange for cash or sex.
In the summer of 2013 CONSTANTINO PERALES, M.D., illegally prescribed Oxycodone and Xanax to a co-defendant, ANDREW STRANDELL, knowing that Strandell would sell the pills on the black market, according to Perales’ plea agreement. Strandell would then pay Perales approximately $15-20 per pill for some of the pills that Strandell was able to sell, the plea agreement states.
Perales also admitted in the plea agreement that from 2011 to 2013 he illegally dispensed opioids and other controlled substances to three opioid-dependent patients in exchange for sex. Perales required the individuals to have sex with him in order to continue receiving the medications, the plea agreement states. Perales knew these patients were addicted to the pills, yet he dispensed the medications without performing a medical examination or ordering any diagnostic tests to manage their conditions, the plea agreement states.
Perales, 66, of Peru, Ill., pleaded guilty to conspiracy to possess a controlled substance with the intent to distribute. The conviction is punishable by a maximum sentence of 20 years in prison and a maximum fine of $1 million. U.S. District Judge Amy J. St. Eve set sentencing for March 22, 2018, at 10:15 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration. Substantial assistance was provided by the Peru, Ill., Police Department, and the LaSalle County State’s Attorney’s Office.
Perales’ Illinois medical license was suspended and he surrendered his DEA Registration Certificate after federal and local authorities executed a search warrant at his office in Peru, Ill., in August 2013.
Strandell, 36, of Sandwich, Ill., pleaded guilty earlier this year to the same conspiracy charge as Perales. The Court has not yet scheduled Strandell’s sentencing hearing.
The government is represented by Assistant U.S. Attorneys Katherine Sawyer and Kathryn Malizia.
Jefferson County woman sentenced for filing a false tax returnRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Ranson, West Virginia woman was sentenced today to five years probation and ordered to pay restitution in the amount of $11,963 for filing a false tax return, First Assistant United States Attorney Betsy Steinfeld Jividen announced.
Christina Jacobs, age 42, pled guilty to one count of “Filing a False Tax Return” in September 2017. Jacobs admitted to filing an Income Tax Return for her and her husband in 2012, willfully understating her income from 9 West Hair Studio by approximately $32,030.70, resulting in an unpaid tax due.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Internal Revenue Service investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for illegal firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Charles Town, West Virginia man was sentenced today to 12 months and one day incarceration for unlawful possession of a firearm, United States Attorney Bill Powell announced.
Darnell Antonio Gardner, age 38, pled guilty to one count of “Unlawful Possession of a Firearm” in August 2017. Gardner, having previously been convicted of a felony in Prince George’s County, Maryland, had a .40 caliber pistol in Jefferson County in June 2016.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Harper’s Ferry, West Virginia man was sentenced today to 46 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Joshua Craig Grove, age 37, pled guilty to one count of “False Statement During the Purchase of a Firearm” in September 2017. The crime occurred on September 11, 2015 in Jefferson County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jacksonville Man Charged with Illegal Possession of A SilencerRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the arrest and filing of a criminal complaint charging Bernandino Gawala Bolatete (69, Jacksonville) with knowingly receiving and possessing a silencer not registered to him in the National Firearms Registration and Transfer Record. If convicted, he faces a maximum penalty of 10 years in federal prison.
According to the
criminal complaint , on November 27, 2017, Bolatete asked for assistance in purchasing a firearm silencer from an undercover detective from the Jacksonville Sheriff’s Office. Bolatete specified that, to avoid government scrutiny, he did not want any paperwork associated with the sale. On December 1, 2017, Bolatete took possession of a silencer after the undercover detective sold it to him for $100 and he was subsequently arrested.A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Florida Department of Law Enforcement. Substantial assistance was provided by the Office of the State Attorney for the Fourth Judicial Circuit. It will be prosecuted by Assistant United States Attorney Michael J. Coolican and Trial Attorney Maura White of the Civil Rights Division of the Department of Justice.
Illinois Man Sentenced to 46 MonthsRead the Press Release
HAMMOND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Arthur Lee Smith Jr., age 60, of Chicago, Illinois, was sentenced before Hammond Senior District Court Judge James T. Moody for filing false claims.
Smith was sentenced to forty-six (46) months imprisonment followed by two (2) years of supervised release. Smith will also have to pay restitution in the amount of $313,871.
According to documents in this case, the defendant pleaded guilty to filing fraudulent tax returns with the Internal Revenue Service on behalf of individuals who paid him to file their returns. Smith held himself out as a tax preparer, using the names “King Solomon” and “Buddy” in his capacity as a tax preparer. When preparing tax returns for clients, Smith sometimes fraudulently reported an overinflated salary and federal income tax withheld for his clients, and other times fraudulently reported unearned wages, unpaid federal income tax withheld, and/or false dependents. These fraudulent filings led to fraudulent refunds being issued to Smith’s clients.
This case was investigated by the Internal Revenue Service, Criminal Investigative Division. The case was handled by Assistant U.S. Attorney Maria Lerner.
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Georgia Man Sentenced in Connection to Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Wilfredo Sanio, 53, of Georgia, who was convicted of misprision of a felony, was sentenced to two years probation and ordered to pay restitution totaling $147,004 by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that between May 2010 and May 2012, the defendant concealed the fraudulent activities of co-defendants Ann Nichols and Donnie Heilig. Heilig and Nichols, both of whom resided in the state of Oklahoma, utilized a business entity known as CED Computer Services (CED) fraudulently to obtain loans for clients in the form of equipment “leases.” Wilfredo Sanio operated a business in Georgia known as SCF Funding, which acted as a broker and brought clients to CED Computer Services.
Sanio knew that Heilig and Nichols falsely advised lease finance companies that CED was selling new equipment to clients and prepared fraudulent invoices for new equipment when, in fact, no equipment or inferior equipment was actually being provided. Upon receipt of the funding from the finance companies, defendant Nichols gave a commission to Heilig, herself, and Sanio, from the lease proceeds and sent the majority of the remaining proceeds to the client.
Ann Nichols and Donnie Heilig have been convicted of wire fraud. Helig was sentenced to eight months home confinement and Nichols is awaiting sentencing.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Georgia Man Indicted on Federal Charges, Accused of Using Forged Deeds to Steal HomesRead the Press Release
WASHINGTON – Robert McCloud, 37, most recently of Augusta, Ga., has been indicted for allegedly using forged deeds and fake driver’s licenses to defraud homeowners, buyers, and others in a real estate scam, announced U.S. Attorney Jessie K. Liu and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
McCloud was indicted earlier this year on federal offenses of conspiracy, wire fraud, and mail fraud, and a District of Columbia offense of uttering a forged instrument. The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the fraud scheme. He pled not guilty to the charges at his first appearance this afternoon in the U.S. District Court for the District of Columbia. He was ordered held pending a hearing set for Dec. 5, 2017.
According to the indictment, McCloud and other conspirators identified vacant or seemingly abandoned residential properties in the District of Columbia, and then prepared and filed forged deeds with the District of Columbia’s Recorder of Deeds transferring the properties into fictitious names. Next, they agreed to sell these properties to legitimate purchasers and arranged with unsuspecting title and escrow companies to finalize the sale and transfer ownership. When the conspirators were successful in finalizing the transactions and closing on the real estate sales, they shared the fraudulently-obtained sales proceeds amongst themselves.
The indictment lists two properties used in the scheme. According to the indictment, in April 2015, McCloud filed a forged Intra-Family deed with the District of Columbia’s Recorder of Deeds purporting to show that a home in the unit block of K Street NW was transferred from the true owners to a fictitious person. The deed contained the forged signatures of both owners. McCloud then allegedly appeared at the title and escrow company pretending to be owner in order to close the transaction, presenting a California driver’s license with his photograph but in the name of the fictitious person, signing the settlement documents and selling the property. The title and escrow company sent by wire transfer $195,527 to a bank account opened in the name of the fictitious person.
Likewise, according to the indictment, in May 2015, a conspirator arranged for a forged deed with respect to another home, in the 6400 block of 16th Street NW, to be filed with the Recorder of Deeds. In June 2015, McCloud allegedly appeared at the title and escrow company pretending to be that owner and using another fake California driver’s license with his photograph. He again signed the settlement documents in the fictitious name, the indictment alleges. The title and escrow company sent by wire transfer $384,955 to a bank account opened in the name of the fictitious person.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Liu and Assistant Director in Charge Vale commended the work performed by those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD). They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Stephanie Miller, former Paralegal Specialist Christopher Toms, and Paralegal Specialist Aisha Keys. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham who is prosecuting the case.
Geauga County man guilty of possessing videos of children being raped and sexually assaultedRead the Press Release
A Geauga County man pleaded guilty to two counts related to possessing videos of children being raped and sexually assaulted, U.S. Attorney Justin E. Herdman said.
John S. Mobasseri, 39, of Novelty, is scheduled to be sentenced on March 19. He pleaded guilty to one count of distribution of images of minors engaged in sexually explicit conduct and one count of possession of child pornography.
Mobasseri earlier this year had two USB storage devices, 14 computer disks and a computer that contained images of real minors engaged in sexually explicit conduct. Mobasseri received and distributed images of minors engaged in sexually explicit conduct between 2009 and 2017, according to court documents.
The files include titles such as “10Yo Preteen Raped (Incest).mpeg” and images such as children being blindfolded and sexually assaulted, as well as children being bound and masked while being sexually assaulted, according to court documents.
This case is being prosecuted by Assistant U.S Attorney Michael A. Sullivan following an investigation by the Department of Homeland Security – Homeland Security Investigations and the Ohio Internet Crimes Against Children Task Force.
Fresno Woman Pleads Guilty to Mail Fraud and Identity Theft ChargesRead the Press Release
FRESNO, Calif. — Marci Jessie Ramirez, 46, of Fresno, pleaded guilty today to mail fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 2013 and October 2015, Ramirez misappropriated other peoples’ personal identifying information, which she acquired in some cases from client intake forms she accessed through her former employer, and used that information to fraudulently open bank accounts at federally insured financial institutions. Ramirez obtained and deposited counterfeit or altered checks into these bank accounts and ultimately withdrew cash or used funds from the deposits for personal purchases. Ramirez also illicitly used other peoples’ credit card information to purchase items for her personal benefit. For instance, according to Ramirez’s plea agreement, she purchased a $5,000 duo reverse transfer printer using one of her victim’s credit card account information.
This case is the product of an investigation by the Federal Bureau of Investigation and the Clovis Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Ramirez is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on March 5, 2018. Ramirez faces a maximum statutory penalty of 20 years in prison for mail fraud and an additional mandatory two-year term in prison for aggravated identity theft, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Winnebago Tribal Chairman Sentenced for Theft from an Indian Gaming EstablishmentRead the Press Release
Acting United States Attorney Robert C. Stuart announced today that on December 4, 2017, Chief United States District Court Judge Laurie Smith Camp sentenced John Blackhawk, age 63, of Winnebago, Nebraska for his conviction for theft from an Indian gaming establishment. Blackhawk was sentenced to five years of probation and 150 hours of community service. He was further ordered to pay restitution in the amount of $36,000.
Blackhawk was a member of the tribal council of the Winnebago Tribe of Nebraska and served in an officer capacity as the council’s Chairman. Beginning in 2013 and continuing through September of 2014, Blackhawk began taking unauthorized disbursements from the WinnaVegas Casino and Resort in the total amount of $36,000. These disbursements were in the form of gift certificates which he did not pay for and deposits to a re-loadable debit card. The disbursements were in addition to the salary Blackhawk received from the Winnebago Tribe as a tribal council member. However, the disbursements were not paid through the payroll department of the Winnebago Tribe and were never authorized at a regular or special meeting of the tribal council. Further, the disbursements were concealed from the Winnebago Gaming Commission which oversaw the operations of the casino and was required to approve financial transactions of the casino.
This case was investigated by the Federal Bureau of Investigation.
Former U.S. Congresswoman Corrine Brown and Two Others Sentenced to Prison for Fraud Scheme Involving Bogus Non-Profit Scholarship CharityRead the Press Release
Former U.S. Congresswoman Corrine Brown was sentenced to five years in prison today in federal court in Jacksonville, Florida for her role in a conspiracy and fraud scheme involving a sham scholarship charity.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida Division and Chief Don Fort of the Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
“Corrine Brown abused her position as a Member of Congress by defrauding charitable donors who wanted to help underprivileged young men and women receive a quality education,” said Acting Assistant Attorney General Cronan. “Instead of helping those deserving students, Brown used the contributions she solicited to finance a personal slush fund to support her lavish lifestyle. The Criminal Division is committed to helping root out such fraud wherever we find it.”
“I am proud of the exceptional work of the special agents, analysts and support personnel who spent countless hours following the money trail in this case,” said Special Agent in Charge Spencer. “Their work is some of the most complex, tedious, and significant work we do for the American public. Rooting out public corruption is a priority for which the FBI will continue to dedicate the resources necessary to investigate, because the impact on everyday people is real. We thank our law enforcement partners at the Criminal Division’s Public Integrity Section, IRS-CI and U.S. Attorney’s Office for their efforts to hold Brown and her associates accountable for their inexcusable actions.”
“For years Corrine Brown banked on the slogan ‘Corrine Delivers’,” said Assistant Special Agent in Charge Shawn Batsch of IRS-CI. “In this case, that’s precisely what she did: she banked entirely on herself when she delivered charitable donations to her own pockets. Having built a lifelong reputation of helping others, she ultimately failed her constituents by fraudulently helping herself to contributions meant for underprivileged children. She also let them down by selfishly neglecting her duty to pay an honest tax.”
U.S. District Court Judge Timothy J. Corrigan sentenced Brown to serve 60 months in prison; Brown’s long-time Chief of Staff Elias “Ronnie” Simmons to serve 48 months in prison; and Carla Wiley, the president of the fraudulent charity, to serve 21 months in prison.
Brown, 71, of Jacksonville, was convicted by a federal jury on May 11, on 18 counts of an indictment charging her with participating in a mail and wire fraud conspiracy and scheme, concealing material facts on required financial disclosure forms, obstructing the due administration of the internal revenue laws and filing false tax returns.
Brown’s co-conspirators — Simmons, 51, of Laurel, Maryland and Wiley, 55, of Leesburg, Virginia — previously pleaded guilty to their roles in the education charity scheme on Feb. 8, and March 3, 2016, respectively. Brown and Wiley were ordered by Judge Corrigan to forfeit $654,292.39, and Simmons was ordered to forfeit $727,964.90. All three defendants were ordered to pay total restitution of $452,515.87 to victims of the fraud scheme. Brown was ordered to pay an additional $62,650.99 in restitution to the IRS, and Simmons was ordered to pay an additional $91,621.38 in restitution to the U.S. House of Representatives.
Evidence at trial showed that between late 2012 and early 2016, Brown, Simmons and Wiley participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which the defendants and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors established that Brown and her coconspirators solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.
Contrary to Brown’s representations, Brown, Simmons, Wiley and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. In one instance, Simmons deposited $2,100 of One Door funds into Brown’s personal bank account the same day that Brown paid $2,057 to the IRS for taxes she owed. In another instance, Brown and a close relative used the proceeds of a $3,000 One Door check referencing “children summer camps” in the memo line for their personal benefit. Likewise, trial evidence showed Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.
Trial evidence also showed that more than $300,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a Beyoncé concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area. According to trial evidence, despite raising over $800,000 in donations, One Door was associated with only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.
Additionally, trial evidence established that Brown engaged in a scheme to conceal reportable income she received from One Door, and from other sources, on annual financial disclosure forms she was required to file with the U.S. House of Representatives. Evidence at trial further showed that Brown failed to report on her personal tax returns for tax years 2009 through 2014 income derived from over $160,000 in cash deposited into her bank accounts, and claimed false deductions for purported charitable donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area, that Brown never made.
As part of his earlier guilty plea, Simmons separately admitted that he misused his position as Brown’s chief of staff to obtain congressional employment for a close relative, who received over $735,000 in government salary payments between 2001 and early 2016 despite performing no known work for the U.S. House of Representatives. Between 2009 and late 2015, Simmons admitted that he diverted over $80,000 of the relative’s government salary for his personal benefit, including through transfers to his personal bank accounts, payments on his personal credit cards and loan payments on his boat.
The FBI and IRS-CI investigated the case. Former Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida prosecuted the case.
Former U.S. Congresswoman Corrine Brown and Conspirators Sentenced to Federal PrisonRead the Press Release
Jacksonville, FL – United States District Judge Timothy J. Corrigan today sentenced former U.S. Congresswoman Corrine Brown (71, Jacksonville) to 5 years in federal prison for her role in a conspiracy and fraud scheme involving a fraudulent scholarship charity. She also was ordered to serve 3 years of supervised release and to pay $515,166.86 in restitution to her victims, including $62,650.99 in tax restitution.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida, Division, and Chief Don Fort of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
On May 11, 2017, Brown was convicted by a federal jury on 18 counts of an indictment charging her with participating in a conspiracy involving a fraudulent education charity, concealing material facts in required financial disclosure forms, obstructing the due administration of internal revenue laws, and filing false tax returns. The jury also found her guilty of violating the Ethics in Government Act by concealing certain income in required annual financial disclosure forms she had submitted to the U.S. House of Representatives.
Brown’s co-conspirators, Elias “Ronnie” Simmons (51, Laurel, Maryland), Brown’s long-time Chief of Staff, and Carla Wiley (55, Leesburg, Virginia), the president of the fraudulent charity, previously pleaded guilty to their roles in the education charity scheme and were also sentenced today. Simmons was sentenced to 48 months in federal prison and 3 years of supervised release. Wiley was sentenced to 21 months' imprisonment. Simmons and Wiley were ordered to pay $544,137.25 and $452,515.87 in restitution, respectively.
Evidence at trial showed that between late 2012 and early 2016, Brown participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which the Brown, Simmons, Wiley, and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors showed that Brown and her coconspirators had solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization when, in fact, it was not.
Contrary to Brown’s representations, Brown, Simmons, Wiley, and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. Likewise, trial evidence showed that Brown and Simmons had used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.
Trial evidence also showed that more than $300,000 in One Door funds had been used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C. area. According to trial evidence, despite raising over $800,000 in donations, One Door granted only two scholarships totaling $1,200 to cover expenses related to attending a college or university.
Additionally, trial evidence demonstrated that Brown had failed to disclose, among other things, the reportable income she had received from One Door and had claimed deductions on her tax returns based on false statements that she had made certain donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.
The FBI and IRS-CI investigated the case. Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida and former Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section prosecuted the case.
Former GM of Local Car Dealership Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – William Cafarella was sentenced to 18 months in prison and ordered to repay $201,335.25 as a result of a fraud and kickback scheme he committed in 2011 through 2013 while General Manager of West County Honda in Ellisville, Missouri.
Cafarella admitted to holding himself out as the owner of the dealership and demanding cash kickbacks from vendors.
Cafarella, 43, of Davie, Florida, pled guilty in August to one felony count of wire fraud. He appeared to today for sentencing in front of U.S. District Judge Audrey G. Fleissig.
The case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Former Controller of Minnesota Metal Stamping Company Sentenced to 33 Months in Prison for Million Dollar Embezzlement SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of JOHN BURWOOD ROBINSON, 50, to 33 months in federal prison for stealing more than $1.1 million from his employer. ROBINSON, who was charged on July 26, 2017 with one count of mail fraud and one count of filing a false tax return, pleaded guilty on August 17, 2017, to both counts. He was sentenced on November 30, 2017, before Senior Judge Paul A. Magnuson in U.S. District Court in Saint Paul, Minn.
“This is an appropriate sentence for a defendant who abused his long-held position of trust by stealing more than a million dollars from his employer to fund his preoccupation with classic automobiles,” said Assistant U.S. Attorney Surya Saxena. “I am grateful for the combined efforts of the investigative agencies whose work brought this case to a successful conclusion.”
“IRS Criminal Investigation remains committed to uncovering financial fraud schemes,” stated Acting Special Agent in Charge Hubbard Burgess of the St. Paul Field Office IRS Criminal Investigation. “The recent 33-month sentencing of John Robinson shows that filing a filing false tax return will result in severe consequences.”
“Robinson was entrusted with managing the finances of the business that employed him, but instead he violated that trust by defrauding and stealing from the business,” said Minnesota Commerce Commissioner Jessica Looman. “This successful criminal investigation was the result of a coordinated effort by the Commerce Fraud Bureau with the Blaine Police and the IRS.”
According to the defendant’s guilty plea and documents filed in court, from 1991 through 2016, ROBINSON was employed by North Central Stamping & Manufacturing, Inc. (“NCSMI”), and in 2003, he became NCSMI’s controller. As the controller, ROBINSON managed NCSMI’s bank accounts, bookkeeping records, and financial reports.
According to the defendant’s guilty plea and documents filed in court, ROBINSON devised a fraud scheme to steal money that was paid to NCSMI by its clients. ROBINSON opened a bank account in the name of NCSMI without the company’s knowledge or authorization. ROBINSON then deposited payments made by NCSMI’s customers into the fraudulent bank account he had set up. ROBINSON used the money to pay for his own personal expenses, to fund his hobby of buying and restoring automobiles and automobile parts, and to pay for a storage facility to store the automobiles and parts. In total, ROBINSON stole approximately $1,200,000 from NCSMI.
According to the defendant’s guilty plea and documents filed in court, in addition to his theft, ROBINSON admitted to filing false tax returns by understating his total income for the calendar years 2009 through 2015, in order to lower his tax liability and to avoid detection of his fraud scheme. In total, ROBINSON caused a total tax loss of $291,757.31.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, the Minnesota Department of Commerce Fraud Bureau, and the Blaine Police Department.
Assistant U.S. Attorney Surya Saxena prosecuted the case.
Defendant Information:
JOHN BURWOOD ROBINSON, 50
Crystal, Minn.
Convicted:
- Mail fraud, 1 count
- Filing a false tax return, 1 count
Sentenced:
- 33 months in prison
- 3 years supervised release
- $624,132.99 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600