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Tuesday 29 August 2017
Strengthening the global response to intellectual property crimeRead the Press Release
NEW YORK, USA – Law enforcement officials, security and industry experts are meeting in New York to strengthen global partnerships against intellectual property (IP) crime.
Through a review of operational case studies, best practices and industry perspectives, the 11th annual International Law Enforcement IP Crime Conference also aims to shape effective enforcement strategies.
The two-day (28 and 29 August) event is co-hosted by INTERPOL, the US Immigration and Customs Enforcement (ICE), and the National Intellectual Property Rights Coordination Center (IPR Center), in partnership with UL (Underwriters Laboratories) and the International Anti-Counterfeiting Coalition (IACC).
“The US Immigration and Customs Enforcement’s National Intellectual Property Rights Coordination Center is committed to targeting the illegal importation of counterfeit goods that threaten health and safety, wreak havoc on the U.S. economy and fund other types of criminality,” said Acting ICE Deputy Director Peter T. Edge.
“We are attacking transnational criminal organizations at all points in the global supply chain by working with our international partners to identify foreign manufacturers engaged in piracy and dismantle their production capabilities,” added Mr Edge.
Nearly 600 participants from more than 60 countries will focus on evolving crime trends in areas such as illicit trafficking on the Internet, as well as on protecting the public from potentially harmful products.
In this respect, more than 420 tonnes of illicit pharmaceutical and medical products worth approximately USD 21.8 million were recently seized during Operation Heera in West Africa. INTERPOL coordinated the operation which saw law enforcement forces collaborate with multi-agency stakeholders in the region.
“Combining our efforts on a global scale by involving all stakeholders from the public and the private sectors is the only way to get ahead of the ever-advancing criminals who make significant profits distributing products that are potentially harmful to public health,” said INTERPOL's Executive Director of Police Services, Tim Morris.
“With illicit markets expanding globally, INTERPOL’s role is fundamental in facilitating international efforts aimed at dismantling the transnational organized crime groups involved in illicit trafficking,” added Mr Morris.
INTERPOL’s Illicit Goods and Global Health programme encompasses all industry sectors and products affected by this serious organized crime area. It works with stakeholders to address a range of IP crimes which include illicit medicines, electronics, food and drink.
IACC President Bob Barchiesi said: “Counterfeiters do not operate within the confines of country borders and neither should we. The IACC believes that real, practical, effective and impactful solutions can only be produced through international cooperation by all parties.”
“Transnational IP crime groups continue to produce dangerous products at an alarming rate and on an industrialized scale, adapting quickly to changing circumstances,” said Keith Williams, UL President and CEO.“The IP Crime Conference is a perfect example of one of the many tools that have been developed to stem the flow of illegal counterfeit products. This year’s conference will drive discussion about technologies and other solutions that diminish product counterfeiting,” added Mr Williams.
The last decade has seen the successful development of the International IP Crime Investigators College (IIPCIC), an INTERPOL initiative undertaken jointly with UL to further strengthen existing capacity building activities.
The online training platform is available in various languages and has evolved into a highly recognized learning tool for law enforcement globally, accessed by over 13,500 users from more than 150 countries.Stratford Man Admits Distributing Heroin Involved in Woman's OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAYMOND J. GORDON, also known as “X-RAY,” 30, of Stratford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of distribution of heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on December 10, 2016, Stratford Police and emergency medical personnel responded to a Stratford residence after receiving a report of an unresponsive 22-year-old female. The female, who was in her bedroom, was pronounced deceased. Responding officers collected wax folds containing suspected heroin, a hypodermic needle and other drug paraphernalia from the bedroom. Investigators also seized the victim’s cellphone. The investigation revealed that the victim purchased heroin from GORDON shortly before she died.
GORDON has been detained since his arrest on May 16, 2017.
Judge Underhill scheduled sentencing for November 21, 2017, at which time GORDON faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Stratford Police Department. The task force includes personnel from the Norwalk, Stamford, Stratford, Milford and Bridgeport Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Springfield Area Business Owner Sentenced for $5.5 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the owner of several Springfield, Mo., area restaurants was sentenced in federal court today for a more than $5.5 million bank fraud scheme.
Bruce Swisshelm, 70, of Battlefield, Mo., was sentenced by U.S. District Judge Brian C. Wimes to five years in federal prison without parole. The court also ordered Swisshelm to pay $5,592,583 in restitution.
Swisshelm was the owner of Horned Frog Deli, Inc., and Swisshelm Properties, Inc. These corporations, which specialized in the restaurant industry, owned and developed commercial properties in Springfield and elsewhere. Swisshelm owned and operated Burger King restaurants, Macaroni Grill restaurants, San Francisco Oven restaurants, McAlister’s Deli restaurants, Ebbett’s Field restaurants and a Fog City Coffee restaurant.
On July 22, 2015, Swisshelm pleaded guilty to bank fraud and money laundering. Swisshelm was originally sentenced to one year and one day in prison on Jan. 22, 2016, but the government appealed that sentence. The Eighth Circuit U.S. Court of Appeals found Swisshelm violated the terms of his plea agreement and ordered the case to be re-sentenced.
Swisshelm admitted that he submitted false financial documents to Great Southern Bank in order to receive four commercial loans, totaling $5,592,583, from February to June 25, 2011. The bank relied on the false information provided within the financial statements submitted by Swisshelm when it approved the commercial loans.
According to court documents, Swisshelm knew his businesses had lost money for several years and were on the brink of bankruptcy. He gambled away what little money remained, and Arvest Bank, his original bank, denied numerous requests for extensions on his existing loans and his request for additional financing. Instead of simply declaring bankruptcy or selling off a portion of his assets to potentially preserve a part of his business, Swisshelm perpetrated a multi-million dollar fraud against Great Southern Bank.
Swisshelm intentionally traded on his reputation and deceived officials with Great Southern Bank into believing that his businesses were in good financial heath and he was able to repay these multi-million dollar loans. When asked for his tax documents, he again lied to Great Southern Bank officials and claimed the documents were not complete.
Swisshelm instead submitted financial statements to the bank that claimed his businesses earned a net income of more than $780,000 in 2010. Tax documents submitted by Swisshelm to the Internal Revenue Service revealed those businesses had losses that exceeded $1.8 million in 2010.
Almost immediately after receiving these monies from Great Southern Bank, Swisshelm failed to make even his minimum payment requirements toward the loan. Within approximately 60 days Swisshelm filed for bankruptcy and attempted to have the entire $5.5 million loan excused by the bankruptcy court.
Officials with Great Southern Bank began investigating the representations made by Swisshelm when he applied for these loans. During the bank’s initial investigation and a subsequent investigation by law enforcement, it was determined that nearly every representation made by Swisshelm as to the financial standing of his businesses and restaurants were lies. He claimed that his two primary corporations were either making significant profits or had reversed earlier losses and were breaking even. He also claimed ownership of several restaurants outside the state of Missouri and claimed additional revenue from those businesses as support for approval of his loan request. In truth, both of Swisshelm’s corporations and his associated restaurants were losing vast sums of money. At the time his multi-million dollar loan was approved, his out-of-state restaurants, which he had claimed to Great Southern Bank were making money, had actually been closed, shuttered, or seized by his creditors for outstanding debts owed.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.
Six Individuals Charged in Fraud Scheme Targeting Elderly Victims Throughout the United StatesRead the Press Release
Tobey Hines, Tiffany Reynolds, Joshua Willis, Payton McCarville, Morgan Cornell, and Paul Chase, all from Dubuque or surrounding areas, have been charged with wire fraud. The charges are contained in an Indictment filed August 24, 2017, in United States District Court in Cedar Rapids.
The Indictment alleges that from December 2015 through September 2016, the individuals participated in a scheme to defraud people throughout the United States and that the fraud was primarily targeted toward the elderly. The charges allege that participants in the fraud would call a person on the phone and falsely tell that person that a relative was in jail. The caller would then ask the victim to wire money via Western Union or Money Gram as bail money to get the relative released. The charges allege that participants in the fraud picked up the wire transfers and, eventually, some of the participants would send the money overseas.
Hines, Reynolds, Cornell, and Chase were arrested and appeared in federal court today. Willis and McCarville have not yet appeared in court. In addition, fourteen other individuals who are alleged to have participated were charged in the Iowa District Court for Dubuque County and arrested today.
Hines is being held without bond pending a detention hearing on August 31, 2017. Reynolds, Cornell, and Chase were released pending trial.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
Four other people have previously pled guilty to their role in a scheme to similarly defraud elderly victims. On March 2, 2017, Shawn Vaassen pled guilty and admitted that he was picking up wire transfers sent to the Dubuque area by victims. At the same plea hearing, Vaassen also pled guilty to unlawfully possessing a sawed off shotgun. On May 9, 2017, Carlos Rodriguez pled guilty and admitted that he was also picking up wire transfers sent to the Dubuque area by victims. Finally, on May 19, 2017, Michael Marcov and Stephanie Marcov pled guilty and admitted they had participated in a scheme to defraud.
The prosecution is part of the Elder Justice Initiative of the Department of Justice. In June 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by Homeland Security Investigations and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are 17-CR-1038, 17-CR-1001, and 17-CR-1004.
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Serial robber of CVS Pharmacies sentencedRead the Press Release
ATLANTA - Kelvonne D. Charleston, a/k/a Kelvonne Don Charleston, a/k/a Kelvonne Dontwelle Charleston, has been sentenced after previously pleading guilty to committing at least five robberies at metro-Atlanta drug stores, and for assaulting FBI agents.
“The defendant was a violent criminal who terrorized ordinary citizens,” said U. S. Attorney John Horn. “Once he was caught, Charleston thought he could intimidate the FBI and police by driving his car toward them. He hit several cars, injured several law enforcement officers and caused significant damage.”
“The threat of bodily harm, even death, that this defendant posed to every day citizens and law enforcement officials was very real,” said David J. LeValley, Special Agent in Charge of the FBI Atlanta Field Office. “Every victim he confronted felt the potential threat of a real gun. It is also clear that he had a complete disregard for human life in his attempt to escape arrest. Thanks to the brave response of FBI agents and police, he poses no further threat to anyone.”
“Getting violent criminals off our streets is our priority for our department,” said Atlanta Police Chief Erika Shields. “We’re grateful to the U.S. Attorney’s Office for helping make sure our work on the street is followed up by serious prison time for these serious crimes.”
According to U.S. Attorney Horn, the charges and other information presented in court: From late 2013 through May 4, 2015, multiple CVS Pharmacies and other commercial businesses in the metropolitan Atlanta, Georgia, area were robbed by a man using the same method of operation. The man wore a mask or bandana and used what appeared to be a firearm to rob the stores. FBI and police identified a suspect, and found that the same individual was repeatedly showing up in the area of the robberies -- Kelvonne Charleston.
On May 4, 2015, the FBI and police moved in to arrest Charleston as he attempted to enter and rob a CVS pharmacy in Cumming, Georgia. When the agents identified themselves, Charleston turned toward the agents with what they believed was a real firearm. He then ran from them, got in his vehicle, and drove toward two FBI agents with the pistol in his hand. To stop him, the agents fired in self-defense at Charleston and wounded him. However, Charleston still managed to drive past these agents and only came to a stop after he struck two separate FBI vehicles and wrecked his own car.
Despite being wounded, Charleston fought with the agents as they removed him from his car and then discovered the replica of a real firearm. The agents administered lifesaving first aid and paramedics took Charleston to the hospital where he later confessed to robbing several CVS stores.
Kelvonne D. Charleston, a/k/a Kelvonne Don Charleston, a/k/a Kelvonne Dontwelle Charleston, 38, of Lithia Springs, Georgia, was sentenced by U.S. District Court Judge Thomas W. Thrash to 15 years, eight months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $36,413.15. He was convicted of these charges on June 1, 2017, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, Atlanta Police Department, Powder Springs Police Department, and Gwinnett County Sheriff’s Office.
Assistant U.S. Attorneys Angela Marie Munson and Joseph A. Plummer prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Sarasota Man Sentenced to Nearly Five Years for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Obenson Cerulist (27, Sarasota) to 4 years and 11 months in federal prison for theft of government property. He pleaded guilty on April 24, 2017.
According to court documents, in September 2013, a search warrant was executed at a home in Bradenton that Cerulist was sharing with Brandon Taylor. During the search, more than 250 items of personal identifying information (PII) belonging to others were found in the home. In February 2014, a second search warrant was executed at the home of Cerulist’s girlfriend, Loretta Gilchrist, where Cerulist occasionally stayed. PII was also found in Gilchrest’s home, along with prepaid debit cards and additional evidence linking Cerulist to the filing of fraudulent tax returns.
The direct loss to the Internal Revenue Service from fraudulent tax returns filed during the course of this scheme was $156,399.39. The total amount claimed as a result of fraudulent tax returns was $571,708.
Taylor and Gilchrist were also prosecuted for their roles in this scheme. On August 2, 2016, Taylor was sentenced to 32 months in federal prison for theft of government funds, and on February 28, 2017, Gilchrist was sentenced to 30 months for the same offense.
This case was investigated by Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Adam M. Saltzman.
Retired U.S. Army Colonel Charged with Conspiring to Bribe Senior Officials of the Republic of HaitiRead the Press Release
BOSTON – A retired United States Army colonel was arrested and charged today for conspiring to bribe senior officials of the Republic of Haiti, and to launder funds for that purpose, in connection with a planned $84 million port development project in that country.
Joseph Baptiste, 64, of Fulton, Md., was charged in the District of Massachusetts with one count of conspiracy to violate the Foreign Corrupt Practices Act and to commit money laundering. Baptiste will make an initial appearance in federal court in Maryland this afternoon.
According to court documents, in or about August 2014, an investigation began into certain Haitian-American businessmen who were offering to facilitate bribes to high-level officials in the Haitian government, in exchange for the ability to obtain or retain business in that country.
It is alleged that Baptiste solicited bribes from undercover agents in Boston who posed as potential investors in infrastructure projects in Haiti, in connection with a proposed project to develop a port in the Mole-Saint-Nicolas area of Haiti. The proposed project was expected to cost approximately $84 million and was to involve the construction of multiple cement factories, a shipping-vessel recycling station, an international transshipment station with numerous slips for shipping vessels, a power plant, a petroleum depot and tourist facilities. During a recorded meeting at a Boston-area hotel, Baptiste allegedly told the agents that he would funnel the payments to Haitian officials through a non-profit entity that he controls – which is based in Maryland and purports to help impoverished residents of Haiti - in order to secure government approval of the project. The complaint also alleges that, in a subsequent recorded phone call, Baptiste had the following exchange with one of the undercover agents:
AGENT: OK, and would all the money that I . . . that I wire to you . . . would it all go to [Foreign Official 1] or only part of it?
BAPTISTE: I would say all of it.
AGENT: OK, so all the . . . so if [I] wire you 20 . . . if I wire 25,000 to [Maryland Non-Profit 1] it will all go to [Foreign Official 1]?
BAPTISTE: All going to be . . . yes, uh-huh.
AGENT: OK, and then, uh . . . you’re not . . . it . . . will he do those letters [committing to support the project] without the money? He . . . or does he have to have that money?
BAPTISTE: I think he has to have it.
In intercepted telephone calls, Baptiste also allegedly discussed bribing an aide to a senior Haitian official with a job on the port development project. It is alleged that after undercover agents wired approximately $50,000 to the non-profit controlled by Baptiste for the purpose of bribing Haitian officials, Baptiste used the $50,000 for personal purposes, though he intended to seek additional money from the agents to use for future bribe payments in connection with the port project.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. 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 D. Weinreb of the District of Massachusetts; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. The FBI is investigating the case. Assistant U.S. Attorney Stephen E. Frank, Chief of Weinreb’s Economic Crimes Unit, and Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section are prosecuting the case.
The charges contained in the charging document are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
UPDATE: Criminal charges against the defendant, Joseph Baptiste, and his co-defendant, Roger Boncy, were dismissed in June 2022.
Retired U.S. Army Colonel Charged with Conspiring to Bribe Senior Officials of the Republic of HaitiRead the Press Release
A retired U.S. Army colonel was charged in a complaint unsealed today for his alleged role in a foreign bribery and money laundering scheme in connection with a planned $84 million port development project in Haiti.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William D. Weinreb of the District of Massachusetts, Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division and Special Agent in Charge Harold M. Shaw of the FBI’s Boston Field Office made the announcement.
Joseph Baptiste, 64, of Fulton, Md., was arrested this morning on a criminal complaint filed in the District of Massachusetts. He was charged with one count of conspiracy to violate the Foreign Corrupt Practices Act and to launder money.
The complaint alleges that Baptiste solicited bribes from undercover agents in Boston who posed as potential investors in infrastructure projects in Haiti, in connection with a proposed project to develop a port in the Moles Saint Nicolas area of Haiti. According to the complaint, the proposed project was expected to cost approximately $84 million, and was to involve the construction of multiple cement factories, a shipping-vessel recycling station, an international transshipment station with numerous slips for shipping vessels, a power plant, a petroleum depot and tourist facilities. The complaint alleges that Baptiste told the agents, in a recorded meeting at a Boston-area hotel, that he would funnel the payments to Haitian officials through a non-profit entity that he controlled — which was based in Maryland and purported to help impoverished residents of Haiti — in order to secure government approval of the project.
The complaint further alleges that in telephone calls intercepted by agents pursuant to court authorization, Baptiste discussed bribing an aide to a senior Haitian official by giving him a job on the port development project after he left his position. It further alleges that although Baptiste ultimately used for personal purposes approximately $50,000 that he received from undercover agents for the payment of bribes to Haitian officials — money that was wired at Baptiste’s direction to a non-profit organization he controls — he intended to seek additional money from the undercover agents to use for future bribe payments in connection with the port project.
The charges contained in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating the case. The case is being prosecuted by Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen E. Frank of the District of Massachusetts.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Raymond Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that David Liverman, 33, of Raymond, New Hampshire was sentenced to 30 years in federal prison to be followed by lifetime supervised release for producing child pornography.
On May 23, 2017, Liverman pleaded guilty to one count of child pornography production. According to statements in court and court documents, Homeland Security Investigations (HSI) began to investigate Liverman based on information that a Dallas, Texas email account was engaged in trading child pornography. One of the email accounts which the Dallas email account traded with belonged to Liverman. Evidence from Liverman’s email account, including items depicted in some of the child pornography images, coupled with interviews conducted by Homeland Security Investigations, demonstrated that Liverman had produced in his home some of the child pornography images that he was trading.
"Preventing the production of child pornography is a high priority of the U.S. Attorney’s Office,” said Acting U.S. Attorney Farley. “We are committed to working with our law enforcement partners to identify and prosecute these troubling cases. By aggressively pursuing those who produce child pornography, we hope to deter others from engaging in similar egregious conduct in the future. This horrific conduct is harmful to young children and their families and does serious damage to our entire community.”
“The protection of children from sexual exploitation, as well as holding accountable those who produce and distribute child pornography, continues to be a high priority for Homeland Security Investigations,” said Matthew Etre, Special Agent in Charge, HSI Boston. “I’m proud of the work HSI and our New Hampshire law enforcement partners did to identify this predator and rescue the victim in this egregious case — as well as the ongoing work the Internet Crimes Against Children Task Force is doing to prevent future crimes against other children.”
The investigation in this case was led by Homeland Security Investigations, The Federal Bureau of Investigations, and the Raymond, New Hampshire Police Department with the assistance of the New Hampshire Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Seth Aframe.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Queens Man Sentenced for Stealing from the GovnermentRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-305ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Charles Novak, 29, of Queens, NY, who was convicted of theft of government money, was sentenced to 12 months in prison by U.S. District Judge Elizabeth Wolford.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that Novak conspired with others to cash multiple, forged U.S. Postal money orders in the Rochester and Syracuse, NY areas in 2016. The money orders had been altered and fraudulently raised in value from $1.51 to $1,000 each. During the scheme, Novak and others stole more than $48,000 from the United States Postal Service.
The defendant was identified when he presented a forged money order to a clerk at the Jefferson Road Post Office in Henrietta, NY. When a Postal Inspector approached Novak, he fled from the scene. During the ensuing chase, the defendant dropped a cell phone, which Postal Inspectors recovered and searched. The phone was logged on to the defendant’s Facebook account and Postal Inspectors retrieved his name and photograph. Novak was taken into custody in New York City in August 2016.
The sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; and the Monroe County Sheriff’s Office, under the direction of Patrick O’Flynn.
Queens Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
Yesterday, Parveg Ahmed of Queens, New York, a United States citizen, was arrested on charges of attempting to provide material support to the Islamic State of Iraq and al Sham (ISIS), a foreign terrorist organization. The defendant is scheduled to make his initial appearance this afternoon at the federal courthouse in Brooklyn before United States Magistrate Judge James Orenstein.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Dana J. Boente, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), and James P. O'Neill, Commissioner, New York City Police Department (NYPD).
“As alleged, Ahmed sought to take up arms with violent terrorists who have killed numerous innocent victims, including Americans,” stated Acting U.S. Attorney Rohde. “This Office and our law enforcement partners will continue to work tirelessly to arrest and prosecute extremists before they are able to threaten the United States and its allies.” Ms. Rohde extended her grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a large number of federal, state, and local agencies from the region. Ms. Rohde also thanked the U.S. Department of State and the U.S. Customs and Border Protection for their assistance.
“As we allege, Parveg Ahmed attempted to travel to Syria aligning himself with ISIS instead of his fellow Americans. Like others before him who chartered a similar path to join this violent terror group, Ahmed now finds his journey ends the same way - in a New York courtroom answering for his actions,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York Joint Terrorism Task Force has a global reach and remains vigilant to the type of threat we allege was posed by Ahmed. I would like to thank all of our partner agencies for their continued vigilance. I would also encourage the community to notify law enforcement when they spot suspicious activity and behavior which helps the JTTF disrupt individuals aiming to conduct violence.”
“This man betrayed his own country to allegedly take up arms against it in the name of ISIS,” stated HSI Special Agent-in-Charge Melendez. “The JTTF’s proactive identification of individuals, like the defendant before any harm could be done against our nation, highlights the very principles on which the task force was founded.”
“As alleged, the defendant traveled to the Middle East in an effort to join ISIS. Mr. Ahmed also took extraordinary measures to destroy the electronic foot print he created,” said Police Commissioner James P. O’Neill. “This type of work goes on every day at the nation’s first Joint Terrorism Task Force here in Manhattan. My thanks to the detectives, agents, and prosecutors whose investigation resulted in today’s arrest and charges.”
As alleged in the complaint, the defendant traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday. Upon his arrival in Saudi Arabia, the defendant attempted to travel to Syria to enter ISIS-controlled territory. The defendant was detained in a Middle Eastern country bordering Syria.
Previously, the defendant had repeatedly expressed support on social media for ISIS and for individuals who provided support to the foreign terrorist organization’s mission of violent extremism. On July 17, 2017, JTTF agents obtained a search warrant for the defendant’s personal computer, and learned, among other things, that the defendant had viewed or listened to recordings of radical Islamic clerics Anwar al-Awlaki, a United States-born cleric and prominent leader of the foreign terrorist organization al Qaeda in the Arabian Peninsula, who was killed on or about September 30, 2011, and Abdullah el-Faisal, a Jamaican-born cleric, who was found guilty in the United Kingdom of, among other things, solicitation to commit murder, for preaching to followers to kill individuals, including Americans, because he deemed them to be enemies of Islam. On August 28, 2017, JTTF agents obtained a search warrant for electronic devices found in the defendant’s possession when he was detained attempting to travel to Syria. Examination of the devices revealed, among other things, the following:
- Messages sent to third parties expressing a desire to travel to ISIS-controlled territories.
- A message explaining that the defendant planned to join ISIS in Syria to wage violent jihad stating, “[W]e have made it to Dawlatul Islam [ISIS] in Syria. In sha Allah [God willing] we will join the Jihad very soon and in Sha Allah [God willing] we will then join the ranks of the Shuhuda [martyrs]. The West has invaded the land of the Muslims and is constantly attacking it.”[1]
- An internet browser history that indicates the defendant was researching maps of ISIS-controlled locations.
The defendant was deported to the United States on August 28, 2017, and he was arrested at John F. Kennedy International Airport.
If convicted, the defendant faces a maximum sentence of 20 years in prison. The charge in the federal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section and the Justice Department’s National Security Division. Assistant United States Attorneys Alexander A. Solomon and Craig R. Heeren are in charge of the prosecution, with assistance provided by Trial Attorney Joshua D. Champagne of the Counterterrorism Section of the National Security Division of the Department of Justice.
The Defendant:
PARVEG AHMED
Age: 22
Queens, New York
E.D.N.Y. Docket No. 17-MJ-766
[1] Spelling is in original, and bracketed words and letters are added for clarity.
Pineville man pleads guilty to possessing child pornography onlineRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Pineville man pleaded guilty Monday to using an online storage site to house child pornography.
Brandon McNamara, 26, of Pineville, La., pleaded guilty before U.S. District Judge Dee D. Drell to one count of possession of child pornography. According to the guilty plea, Canadian law enforcement agents arrested a resident of British Columbia in 2016 for online child pornography distribution. Canadian agents identified McNamara’s online alias as one of 57 different users exchanging child pornography with the Canadian defendant. Canadian agents alerted U.S. law enforcement, and McNamara was questioned on December 9, 2016. He admitted to possessing images of child pornography and said they were being stored on an online storage account.
McNamara faces up to 20 years in prison, five years to life of supervised release, mandatory registration as a sex offender and up to a $250,000 fine. The court set the sentencing date for December 15, 2017.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security and the Vancouver Royal Canadian Mounted Police conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and David J. Ayo are prosecuting the case.
Pine Ridge Man Found Guilty of Assault and BurglaryRead the Press Release
United States Attorney Randolph J. Seiler announced that Jalen Walking Eagle, age 22, of Pine Ridge, South Dakota, was found guilty of Assault Resulting in Serious Bodily Injury and First Degree Burglary following a federal trial in Rapid City, South Dakota. The jury returned their verdict on August 24, 2017.
The charges carry a maximum penalty of 25 years in custody and/or a $250,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established Walking Eagle unlawfully entered the home of the victim during the nighttime on February 12, 2017, and assaulted him resulting in serious bodily injury.
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A sentencing date will be set. Walking Eagle was remanded to the custody of the U.S. Marshals Service pending sentencing.
Parmelee Woman Sentenced for Assaulting ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Parmelee, South Dakota, woman convicted of Assault by Striking, Beating, and Wounding was sentenced on August 25, 2017, by U.S. Magistrate Judge Mark A. Moreno.
Charlee Spotted Tail, age 22, was sentenced to 4 months in custody, followed by 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Spotted Tail was indicted by a federal grand jury on October 12, 2016. She pled guilty on June 19, 2017.
The conviction stemmed from an incident that occurred on March 11, 2016, in Mission, South Dakota. Spotted Tail started an altercation in a store parking lot with a woman who was holding her six-month-old baby. Spotted Tail attempted to strike the woman, and instead struck the baby in the head. She then struck the baby a second time before fleeing the scene in a nearby vehicle.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Spotted Tail was immediately turned over to the custody of the U.S. Marshals Service.
Owner of Charlotte-Area Scrap Metal Business Pleads Guilty to Tax EvasionRead the Press Release
CHARLOTTE, N.C. – The owner of Charlotte-area scrap metal business pleaded guilty to tax evasion today, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Tony Marks, 47, of Matthews, N.C., appeared before U.S. Magistrate Judge David Keesler and admitted to concealing from the Internal Revenue Service (IRS) personal earnings derived from his business.
U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).
According to the filed court documents and today’s plea hearing, from in or about 2011 to the present, Marks was self-employed as a scrap metal broker. From in or about tax year 2011 through in or about tax year 2014, Marks concealed from the IRS significant personal earnings from his scrap metal broker business. According to court records, during the relevant time period, Marks deposited checks and cash receipts from his business and its customers into his personal bank accounts at various banks. Marks’ deposits or cashed checks totaled approximately $313,372, and were not included in gross receipts reported to the IRS. During the relevant time period, Marks failed to disclose or provide to his tax return preparer records from all of the bank accounts, as well as other information about his income from his business.
According to the filed court documents and today’s plea hearing, for years 2011 through 2014, Marks earned additional personal income which the defendant failed to report on his U.S. Individual Income Tax Return Form 1040 filed with the IRS. As a result of the unreported taxable income and the unreported gross receipts, Marks had additional tax due.
Marks pleaded guilty to one count of tax evasion. The charge carries a maximum penalty of five years in prison and a $250,000 fine. Marks was released on bond following today’s court appearance. A sentencing hearing for Marks has not been set yet.
The investigation was led by IRS-CI. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Olean Man Pleads Guilty to Heroin and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-305BUFFALO, N.Y.–Acting U.S. Attorney James P. Kennedy, Jr. announced today that Giovanni Salmonson, 26, of Olean, NY, pleaded guilty to possession with intent to distribute heroin, and being a felon in possession of a firearm before U.S. District Judge Richard J. Arcara. The charges carry a maximum penalty of 30 years in prison and a $2,000,000 or both.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that on January 1, 2015, Olean Police responded to a trespassing complaint near the 200 block of North 1st Street. Upon arrival, an officer defendant near 225 North 1st Street and asked Salmonson to step out of the roadway and up onto the curb. The defendant took off running. While he was running away, the officer noticed that Salmonson was wearing a black Nike backpack/drawstring bag. A foot chase ensued and the defendant entered a backyard at 121 North 2nd Street after throwing the black Nike bag over a fence into another yard. An officer ordered Salmonson to the ground, and the defendant complied. After retrieving the bag, officers recovered a .22 caliber revolver from inside. Subsequently, officers also recovered 14 bags of heroin, six suboxone pills and $851 dollars in United States currency.
The plea is the culmination of an investigation on the part of the Olean Police Department, under the direction of Chief Jeff Rowley; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for December 11, 2017, before Judge Arcara.Ohkay Owingeh Man from Santa Fe Sentenced to Eleven Years for Federal Kidnapping ConvictionRead the Press Release
ALBUQUERQUE – Earl Adams, 53, an enrolled member of the Ohkay Owingeh Pueblo who resides in Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to 11 years for his conviction on a federal kidnapping charge. Adams will receive credit for a year of tribal confinement on related tribal charges, requiring him to serve an additional ten years in federal custody. Adams will be on supervised release for two years after completing his prison sentence.
Adams was arrested on March 2, 2017, on an indictment charging him with assault resulting in serious bodily injury and kidnapping. According to the indictment, Adams committed the offenses on March 1 and 2, 2016, on the Ohkay Owingeh Pueblo in Rio Arriba County, N.M.
On May 9, 2017, Adams pled guilty to the kidnapping charge. In entering the guilty plea, Adams admitted seizing and confining the victim in a residence on March 1, 2016, because the victim refused to take him to the store to purchase alcohol. Adams assaulted the victim by punching and kicking her, dragging her around the residence by her hair, and binding her hands and feet with zip-ties. As the result of the assault, the victim suffered a black eye, a nasal fracture and a forearm fracture, both of which required surgery. The victim also sustained injuries to the hand and wrist, which required physical therapy, and loose front teeth. Adams admitted that he did not release the victim until March 2, 2016, when police arrived at the residence.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Ohkay Owingeh Tribal Police Department. Special Assistant U.S. Attorney Lucy Solimon prosecuted the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Ohio woman sentenced for illegally possessing a firearm and assaulting a U.S. MarshalRead the Press Release
ELKINS, WEST VIRGINIA – Peggy Chaffin, 38, of Portsmouth, Ohio, was sentenced today to 112 months incarceration for illegally possessing a gun and using said gun to obstruct a Deputy U. S. Marshal, Acting United States Attorney Betsy Steinfeld Jividen announced.
Chaffin admitted being a felon in possession of a .22 caliber rifle. She was previously convicted of felony heroin possession and distribution in the Eastern District of Kentucky in August 2013. Chaffin also admitted to using that gun to obstruct, assault, and resist a Deputy U.S. Marshal in Orlando, West Virginia, in November 2015.
Chaffin pled guilty to one count of “Felon in Possession of a Firearm” and one count of “Assaulting, Obstructing, or Resisting a Federal Officer” in February 2017.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, and the Braxton County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Nine Baltimore Felons Arrested for Handgun Possession Under Federal Gun StatutesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Nine felons have been arrested for possession of handguns in Baltimore City. The arrests were announced today by Acting United States Attorney Stephen M. Schenning and Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
The United States Attorney’s Office continues in its efforts to address the gun violence plaguing the Baltimore area by using Federal Statutes prohibiting felons from possessing firearms.
Nine defendants, listed below, were arrested in nine separate cases and will appear in United States District Court this week.
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Reginald Allen, age 33, of Baltimore, Maryland;
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Michael Awosika, age 39, of Baltimore, Maryland;
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Richard Bailey, age 27, of Baltimore, Maryland;
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Ikeyba Brown, age 32, of Baltimore, Maryland;
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Michael Corprew, age 31, of Baltimore, Maryland;
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Vatrone Foote, age 26, of Baltimore, Maryland;
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Samuel Joyce, age 28, of Baltimore, Maryland;
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Morranda Phimpisane, age 30, of Baltimore, Maryland;
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Terrell Wormley, age 31, of Baltimore, Maryland.
Acting United States Attorney Stephen M. Schenning noted that the United States Attorney’s Office, through its Exile Program, will continue to pursue felons with guns who constitute a clear and present danger to the safety and welfare of the citizens of Baltimore. These arrests reflect the ongoing commitment of the United States Attorney’s Office to address violent crime in the City of Baltimore and the District of Maryland.
Initial court appearances for the defendants begin today. All nine defendants continue to be detained.
Acting United States Attorney Stephen M. Schenning commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Patricia McLane, Robert Perkins and Samika Boyd who are prosecuting these cases.
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Niagara Falls Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-305BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that James Smith, 25, of Niagara Falls, NY, pleaded guilty to being a felon-in-possession of a firearm before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on February 25, 2016, New York State Parole Officers and others conducted a search at Smith’s residence on Orleans Avenue in Niagara Falls. The defendant was under the supervision of New York State Parole following a July 2010 federal conviction and an August 2014 Niagara County Conviction.
As officers entered, Smith attempted to go into the basement. The defendant was stopped and the basement was searched. Officers recovered a Colt, .32 caliber, semi-automatic handgun with a magazine loaded with two rounds of ammunition. As a result of his previous convictions, Smith is prohibited from legally possessing a firearm.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto; and New York State Parole.
Sentencing is scheduled for December 13, 2017, at 1:00 p.m. before Judge Arcara.
New York Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
Yesterday, Parveg Ahmed, 22, a U.S. citizen of Queens, New York, was arrested on charges of attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization. The defendant is scheduled to make his initial appearance this afternoon at 2 p.m. at the federal courthouse in Brooklyn, New York before U.S. Magistrate Judge James Orenstein.
The charges were announced by Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Bridget M. Rohde for the Eastern District of New York, Assistant Director-in-Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O'Neill of the NYPD.
As alleged in the complaint, the defendant traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday. Upon his arrival in Saudi Arabia, the defendant attempted to travel to Syria to enter ISIS-controlled territory.
The defendant was deported back to the U.S. on August 28, where he was arrested at John F. Kennedy International Airport in Queens, New York.
If convicted, the defendant faces a maximum sentence of 20 years in prison. The charge in the federal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. 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 after considering the advisory Sentencing Guidelines and other statutory factors.
The government’s case is being handled by the Office’s National Security & Cybercrime Section and the Justice Department’s National Security Division. Assistant U.S. Attorneys Alexander A. Solomon and Craig R. Heeren are in charge of the prosecution, with assistance provided by Trial Attorney Joshua D. Champagne of the Counterterrorism Section of the National Security Division.
Nebraska Woman Sentenced in Health Care Fraud CaseRead the Press Release
Acting United States Attorney Robert C. Stuart and Nebraska Attorney General Doug Peterson announced that Chandra Wrightsell, 47, of Omaha Nebraska, was sentenced today by Senior United States District Judge Richard G. Kopf for the crime of health care fraud. Wrightsell was sentenced to 18 months in prison, followed by 3 years of supervised release. She was also ordered to pay restitution to the Nebraska Department of Health & Human Services, Medicaid Division totaling $105,550. Wrightsell previously pled guilty on June 1, 2017.
Wrightsell owned and operated a company in Omaha, Evol Consulting, which contracted with therapists to provide mental health and substance abuse services. Between December 1, 2011 and July 25, 2014, she submitted 1,150 claims to Nebraska Medicaid for services which had not been provided, and was paid a total of $105,550 on those claims.
Wrightsell has previously been convicted of another federal felony charge. On February 8, 2007, she was sentenced to 15 months in prison following her conviction in Omaha for misapplication of bank funds, totaling $102,000, while employed as vice president of the First National Bank.
This case was investigated by the Medicaid Fraud and Patient Abuse Unit of the Nebraska Attorney General’s Office and the Medicaid Program Integrity Unit of the Nebraska Department of Health and Human Services. The case was prosecuted by the Nebraska Attorney General’s office and the United States Attorney’s office.
Navajo Man from Bloomfield Sentenced to Prison for Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Thomas J. Yazzie, Jr., 52, an enrolled member of the Navajo Nation from Bloomfield, N.M., was sentenced today in federal court in Albuquerque, N.M., to 30 months in prison followed by two years of supervised release for his conviction on an involuntary manslaughter charge.
Yazzie was arrested on Feb. 7, 2017, on an indictment charging him with involuntary manslaughter. According to the indictment, Yazzie killed a man while driving under the influence of alcohol on the Navajo Indian Reservation in San Juan County, N.M., on May 10, 2016.
On March 30, 2017, Yazzie pled guilty to the indictment and admitted killing the victim, a passenger in his vehicle, by driving recklessly while under the influence of alcohol. Yazzie acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
This case was investigated by the Gallup office of the FBI, the Crownpoint office of the Navajo Nation Division of Public Safety and the New Mexico State Police and was prosecuted by Assistant U.S. Attorney Michael D. Murphy.
Misdemeanor Immigration Prosecutions – August 2017Read the Press Release
ALBANY, NEW YORK – The following is a summary of misdemeanor immigration prosecutions from August 2017:
Citizen of Mexico Sentenced For Illegal Entry into United States
Elias Alberto Becerra-Rodriguez, age 27, of Mexico, was sentenced on August 10 to 25 days in jail for illegally entering the United States. Becerra-Rodriguez admitted that he walked across the border approximately one-half mile east of the Mooers Port of Entry on July 30, and that he continued south on foot until he was stopped and arrested by Border Patrol Agents.
Citizen of Colombia Sentenced For Illegal Entry into United States
Oscar Marin-Palacio, age 32 of Colombia, was sentenced on August 10 to 18 days in jail for illegally entering the United States. Marin-Palacio admitted that he walked across the border approximately one mile west of the Champlain Port of Entry on August 1, and that he continued south on foot until he was stopped and arrested by Border Patrol Agents.
Citizen of Guatemala Sentenced For Illegal Entry into United States
Yener Morales-Escalante, a citizen of Guatemala, was sentenced on August 17 to 12 days in jail following his guilty plea to illegally entering the United States. Morales-Escalante admitted that on August 12, he entered the United States at Champlain, New York, by walking through the woods from Canada, before being stopped and arrested by Border Patrol Agents.
Indictment Unsealed Charging Sacramento CEO for Retirement Fund Embezzlement and False StatementsRead the Press Release
SACRAMENTO, Calif. — An indictment has been unsealed today that charges David L. Bonuccelli, 63, of Sacramento, with embezzlement from his employees’ retirement funds and false statements regarding those retirement funds, U.S. Attorney Phillip A. Talbert announced.
A federal grand jury returned the five-count indictment last Thursday. According to court documents, Bonuccelli is the founder and CEO of a real estate and investment advisory corporation that provides retirement benefit plans for its employees. On December 4, 2012, Bonuccelli embezzled approximately $517,000 from one of his firm’s employee retirement funds, protected under the Employee Retirement Income Security Act of 1974 (ERISA). Bonuccelli also made false statements on forms required under ERISA regarding the 2011 and 2012 end-of-year balances, indicating that certain transfers had not occurred when in fact they had.
This case is the product of an investigation by the Department of Labor – Employee Benefits Security Administration. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
If convicted, Bonuccelli faces a maximum statutory penalty of five years in prison and a $250,000 fine as to each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Indiana Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Mark Eugene Timperley, 20, of Indianapolis, Indiana, pleaded guilty yesterday in the United States District Court to possession of child pornography, Acting U.S. Attorney Rafael Gonzalez announced.
According to the plea agreement, in February of 2017, a school resource officer with the Nampa Police Department was informed that a 14-year-old Nampa student was in an internet relationship with Timperley, and that Timperley planned to come to Idaho to live with the student. Nampa officers looked at the victim’s cell phone and saw text messages between Timperley and the victim where Timperley asked for and received images of the victim engaged in sexually explicit conduct.
Three days later, Nampa detectives met with Timperley in Boise after he got off a Greyhound bus. Timperley told the detectives that he was in an online relationship with the victim, that he knew the victim was 14 years old, and that he asked for and received sexually explicit images from the victim. The detectives took Timperley’s cell phone, examined its contents, and found approximately 46 explicit images of the victim.
Sentencing is set for November 20, 2017, before Chief U.S. District Judge B. Lynn Winmill. Possession of child pornography is punishable by up to 10 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,100 special assessment. As part of his plea, Timperley also agreed to forfeit his cell phone used in the commission of the offense.
The case was investigated by the Nampa Police Department, Homeland Security Investigations, and the Canyon County Prosecutor’s Office. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Hayward Man Charged with Harboring Illegal Aliens in CaliforniaRead the Press Release
On December 18, 2020, United States Attorney David L. Anderson issued the following statement:
On Friday, December 18, 2020, we moved to vacate the judgment and dismiss the superseding indictment against Job Torres Hernandez. In this case, a jury concluded Mr. Torres Hernandez was guilty of multiple crimes, and the district court entered a criminal judgment against Mr. Torres Hernandez based upon that verdict. During the pendency of Mr. Torres Hernandez’s appeal to the Ninth Circuit Court of Appeals, we learned of circumstances leading us to the firm conclusion that at this point only a dismissal would meet the interests of justice. It is a serious step for the United States to dismiss criminal charges. Likewise, it is the solemn duty of the United States to seek justice in all its cases, and to evaluate the appropriateness of its charges throughout the course of the proceedings.
SAN FRANCISCO - A federal grand jury in San Francisco indicted Job Torres Hernandez on August 23, 2017, for harboring illegal aliens for commercial advantage or private financial gain, announced United States Attorney Brian J. Stretch and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.
According to the indictment unsealed today, since at least July 18, 2015, Torres, 37, of Hayward, Calif., harbored at least five people who he knew had come to, entered, and remained in the United States in violation of the law. According to the indictment, Torres concealed, harbored, and shielded from detection people who were not in the United States legally and that he knew, or had reckless disregard for the fact that, they were not in the United States legally. The indictment further alleges that Torres harbored these individuals, who were his employees, for the purpose of obtaining a commercial advantage and for private financial gain. The indictment charges Torres with one count of harboring illegal aliens for commercial advantage or private financial gain, in violation of 8 U.S.C. §§ 1324(a)(1)(A)(iii) and (B)(i).
Torres was arrested this morning in Hayward and made his initial appearance before U.S. Magistrate Judge Donna M. Ryu. At the hearing this morning the government alleged that Torres paid below minimum wage to his workers. In addition, the government alleged that the warehouse where many of the workers lived was locked from the outside at night. The government represented in court that seven people were recovered from that warehouse during the execution of a search warrant.
The defendant currently is in federal custody and is scheduled to appear again before Magistrate Judge Ryu tomorrow, August 30, 2017, for identification of counsel.
The maximum statutory penalty for a violation of 8 U.S.C. §§ 1324(a)(1)(A)(iii) and (B)(i) is 10 years in prison and a fine of $250,000. In addition, the court may order an additional term of supervised release, forfeiture, and restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Shailika Kotiya is prosecuting the case. The prosecution is the result of an investigation by the HSI.
Hartford Man Sentenced to 5 Years in Federal Prison for Role in Heroin Trafficking RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BYRON RIVERA, 27, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by four years of supervised release, for his role in a heroin distribution ring.
According to court documents and statements made in court, in 2016, the East Hartford Police Department received information that individuals were packaging and selling heroin from an apartment at 50 Forest Street in Hartford, and that there were guns in the apartment. A law enforcement investigation in August and September 2016 confirmed drug activity at the location.
On September 13, 2016, members of the Hartford Police Department, East Hartford Police Department and the FBI’s Northern Connecticut Violent Crimes Task Force executed a search warrant at the apartment and encountered RIVERA and others inside. A search of the apartment revealed more than 39,000 bags of heroin, approximately 283 grams of unpackaged heroin, three fentanyl patches, scales and other items used in the processing and packaging of heroin, two handguns and numerous rounds of ammunition.
RIVERA was arrested on September 13, 2016. On May 16, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
The FBI Task Force includes members of the U.S. Marshals Service, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harrison County man indicted on illegal firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – A Salem, West Virginia man was indicted by a federal grand jury of unlawful possession of a firearm charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Justin Paul Crofford, age 35, was indicted on one count of “Unlawful Possession of a Firearm” and one count of “Possession of an Unlawful Firearm.” Crofford, having previously been convicted of a felony in Smith County, Texas Circuit Court, is accused of possessing a 12-gauge shotgun. The crime is alleged to have occurred in January 2017 in Harrison County, West Virginia.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anmoore Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Harrison County man indicted on illegal firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – A Shinnston, West Virginia man was indicted by a federal grand jury of unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Steven Scott Nestor, age 34, was indicted on one count of “Unlawful Possession of a Firearm.” Nestor, having previously been convicted of a felony in Harrison County Circuit Court, is accused of possessing a 9mm caliber pistol. The crime is alleged to have occurred in May 2017 in Harrison County, West Virginia.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Greenville Man Pleads Guilty in $700,000 Fraud SchemeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Calvert J. Drummond, Jr., age 34, of Greenville, pled guilty today in federal court in Greenville, to conspiracy to commit wire fraud, a violation of Title 18, United States Code, Section 1349. United States District Judge Timothy M. Cain, of Anderson, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Drummond represented to clients that he could obtain alternative financing for various projects that required large amounts of capital. In exchange for a fee of several hundred thousand dollars, Drummond promised to secure bank guarantees worth millions.Drummond would create fraudulent financial documentation regarding the alternative financing and show them to the clients. When pushed by clients on the delay of the financing or for a return of the fee paid, Drummond would blame the delays and other issues on various banks.
Drummond had no mechanism to obtain the alternative financing promised; this was a fictitious story created to persuade clients to pay fees that Drummond used to pay personal expenses. Agents estimate that Drummond stole over $700,000 during the scheme.
Ms. Drake stated the maximum penalty Drummond can receive is a fine of $250,000 and/or imprisonment for no more than 20 years, plus a special assessment of $100.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Gilbert Man Sentenced to 30 Months in Prison for Embezzling over $710,000 from his Former EmployerRead the Press Release
PHOENIX – Last week, John David Veatch, 47, of Gilbert, Ariz., was sentenced by U.S. Senior District Judge Roslyn O. Silver to 30 months in prison and ordered to pay restitution in the amount of $710,290. Veatch had previously pleaded guilty to one count of wire fraud.
Between January 2011 and June 2013, Veatch embezzled over $710,000 from his then-employer. Veatch embezzled the money through a scheme of ordering fictitious parts and then funneling the money to a third-party company he created and controlled.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Andrew C. Stone, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-01237-PHX-ROS
RELEASE NUMBER: 2017-080_Veatch
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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.
Former Union Treasurer Sentenced to Prison for Embezzling more than $80,000Read the Press Release
The former Treasurer of a small union in Snohomish County was sentenced today in U.S. District Court in Seattle to five months in prison for theft of union funds, announced U.S. Attorney Annette L. Hayes. PASCALE MCATEE, 58, of Lynnwood, Washington, pleaded guilty in April 2017, admitting that between 2011 and 2015 she embezzled more than $82,903 from a transportation union in Snohomish County. At sentencing U.S. District Judge James L. Robart said you “embezzled $75,000 from a bunch of lower paid employees who were (your) friends. . . . Stripped of everything else, that’s what this is about.”
According to records filed in the case, MCATEE was elected Treasurer of SMART LU 161 in 2010. The union was formed in 2008 and represents approximately 90 members, mostly working in transportation jobs in the Snohomish County area. Members pay approximately $47 a month in union dues. MCATEE embezzled the money transferring funds from the union bank accounts to her own bank account and her husband’s bank account, and by writing checks and depositing them to her personal account. Over the four years she embezzled more than $53,000 via wire transfer and wrote herself checks totaling more than $27,000. A union investigation uncovered the thefts in 2015. In 2016, while the law enforcement investigation was underway, MCATEE led an effort to decertify the union in an apparent effort to avoid criminal charges. The grand jury returned an indictment in December 2016.
The embezzlement has demoralized union membership and resulted in the union being hit with penalties for overdue taxes.
Judge Robart ordered MCATEE to be on supervised release for three years following her prison term.
The case was investigated by U.S. Department of Labor’s Office of Labor Management Standards. The case was prosecuted by Assistant United States Attorney André Peñalver.
Former UAW Official Pleads Guilty in Scheme to Accept Illegal Payments from Fiat Chrysler AutomobilesRead the Press Release
A former Assistant Director of the UAW Chrysler Department pleaded guilty today to committing violations of the Labor Management Relations Act, announced Acting U.S. Attorney Daniel L. Lemisch.
Joining in the announcement was James Vanderberg, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Ian Burg, District Director, U.S. Department of Labor – Office of Labor-Management Standards, David P. Gelios, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, and Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations,
Virdell King, 65, of Detroit, Michigan, pleaded guilty before United States District Judge John Corbett O’Meara for her role in a multiyear conspiracy in which UAW officials accepted money and things of value from Fiat Chrysler Automobiles US (FCA) between 2011 and 2015.
According to court documents, Virdell King was one of the senior UAW officials responsible for negotiating and administering the national collective bargaining agreements with FCA on behalf of tens of thousands of UAW members. Virdell King was also a member of the UAW’s National Negotiating Committees in 2011 and 2015 that negotiated the collective bargaining agreements between the UAW and FCA.
According to the Superseding Information Virdell King accepted thousands of dollars in designer shoes, clothing, jewelry, luggage and other personal items, all of which were purchased using credit cards issued through the UAW-Chrysler National Training Center. According to court documents, FCA Vice President Alphons Iacobelli told senior UAW officials that they could use their NTC credit cards to make personal purchases, stating “if you see something you want, feel free to buy it.”
Beyond the purchases for herself, the Superseding Information charges Virdell King with making over $40,000 of additional purchases between December of 2012 and August of 2015 at the direction and for the benefit of other senior UAW officials. Those additional purchases included a shotgun, golf equipment, luggage, concert tickets, theme park tickets and other personal items. All of the credit card purchases were paid for with funds provided by FCA.
“Union rank and file members deserve the undivided loyalty of their leadership. Collusion between management and labor, that serves to line the pockets of corrupt individuals, is a breach of trust and will be prosecuted”, said Daniel L. Lemisch, Acting U.S. Attorney.
Today's guilty plea is another step towards ending a culture of corruption between some leaders at the UAW and FCA responsible for collective bargaining agreements, said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI."
“Virdell King’s plea casts a dark shadow on UAW contracts negotiated while she was a member of the International Union’s collective bargaining team. As a high ranking official, she was entrusted to negotiate contracts and implement them to serve the union members she represented, but instead she traded away their trust for more than $40,000 in shoes, jewelry, clothing and other things that were ultimately paid for by Fiat Chrysler Automobiles. We will continue to investigate corrupt union officials who violate their duty to the members they represent for personal gain” stated James Vanderberg, Special Agent-in-Charge, Chicago Region, United States Department of Labor, Office of Inspector General.
Sentencing of King is set for January 3, 2018.
Acting U.S. Attorney Lemisch commended the outstanding work of the US Department of Labor – Office of Inspector General and Office of Labor-Management Standards, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigations for continuing to conduct a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy
Former InSouth Bank Employee Pleads Guilty to Embezzling Almost $900,000Read the Press Release
Memphis, TN – A former bank employee has pled guilty to embezzlement. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the plea today.
Lauren Melissa McDivitt, 46, of Covington, Tennessee, appeared before United States District Judge Sheryl H. Lipman and entered a guilty plea to a one-count information alleging she embezzled $888,470 between 2006 and 2016, from InSouth Bank where she was employed as the Branch Administrator at the Atoka, Tennessee branch.
According to information presented in court at the time of her plea, McDivitt accomplished the theft by creating false and fraudulent withdrawal tickets to make it appear that bank customers with IRA and CD accounts were withdrawing funds. To conceal theft, McDivitt signed customers up to receive monthly statements online via e-mail, and linked the customer accounts to a dummy/fake e-mail account where the statements, which reflected the unauthorized withdrawals would be e-mailed.
McDivitt thereafter prepared fraudulent monthly statements, which reflected interest accrued, but omitted her unauthorized withdrawals. McDivitt mailed the fraudulent statements to the customers. In some instances, McDivitt also made internal transfers between accounts of various customers to cover amounts she had taken from other customers.
McDivitt faces up to 30 years’ imprisonment; one million dollar fine and 5 years supervised release.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Former Honduran Cabinet Official Pleads Guilty in Manhattan Federal Court to Money Laundering ChargeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that Yankel Rosenthal Coello pled guilty in Manhattan federal court to attempting to engage in monetary transactions in property derived from drug trafficking offenses in 2013, and Andres Acosta Garcia previously pled guilty to engaging in monetary transactions in property derived from drug trafficking offenses between 2004 and September 2015. ROSENTHAL, who was arrested at Miami International Airport on October 6, 2015, pled guilty today before U.S. District Judge Valerie E. Caproni. Acosta, who surrendered in the United States on December 29, 2015, pled guilty on August 16, 2017, before U.S. District Judge Katherine Polk Failla.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As they admitted in Manhattan federal court, Yankel Rosenthal and Andres Acosta sought to assist Honduran drug traffickers in laundering the proceeds of their crimes. Rosenthal tried to conceal drug-tainted money through the purchase of U.S. real estate, political contributions in Honduras, and even investment in a professional soccer team. Acosta worked with other members of the Rosenthal family to assist the Cachiros, a notoriously brutal Honduran drug trafficking organization. Despite their attempts to launder these ill-gotten gains, with these pleas Rosenthal and Acosta face significant time in prison.”
According to the Superseding Indictment, other court filings, and statements made during court proceedings[1]:
Beginning in at least 2009, ROSENTHAL provided financial services in Honduras to multiple significant Honduran drug traffickers, which related principally to real estate transactions. In 2013, ROSENTHAL attempted to launder over a million dollars of drug money by accepting the tainted funds from drug traffickers in Honduras and using his own access to credit to finance a real estate deal in Doral, Florida, which was to involve the same drug traffickers obtaining untainted property assets. ROSENTHAL also funneled hundreds of thousands of dollars’ worth of bribes from drug traffickers seeking official protection, which were styled as purported campaign contributions, to his cousin and co-defendant Yani Benjamin Rosenthal Hidalgo, which Rosenthal Hidalgo used in connection with failed efforts to become the President of Honduras. In addition, ROSENTHAL obtained a purported investment from a drug trafficker, comprising hundreds of thousands of dollars of drug money, in C.D. Marathón, the Honduran soccer club ROSENTHAL controlled.
During a recorded meeting in Honduras with several significant Honduran drug traffickers, including one of the leaders of the Cachiros, a prolific and violent Honduran criminal syndicate that distributed huge quantities of cocaine before being dismantled by the Drug Enforcement Administration (“DEA”), ROSENTHAL discussed some of these bribes and the possibility of obtaining assistance from one or more Honduran politicians so that the drug traffickers could avoid being targeted by law enforcement and extradited to the United States. In an April 2013 email, ROSENTHAL solicited a bribe for another high-ranking Honduran politician from a U.S.-based company (“Company-1”), which was seeking oil-exploration rights in Honduras, explaining:
[L]ike I told you a couple of years ago sadly in our countries politicians expect colaboaration [sic] to their campains [sic] when approached for a business proposal, I have all the confidence in this friend he has power now and will have much more later on (Nov 2013), can he count on a contribution for his campain [sic] and at the same time with the unde[r]standing he will help with the exploration and ambient permits requi[r]ed?
In September 2013, one of Company-1’s principals informed ROSENTHAL via email that he was prepared “to contribute to your friend’s election for President,” and subsequently wrote a $100,000 check to one of ROSENTHAL’s shell companies, Shelimar Investments.
ACOSTA worked with his co-defendants, including Jaime Rolando Rosenthal Oliva, a former Vice President and congressman in Honduras, and Rosenthal Hidalgo, also a former congressman and two-time candidate for President of Honduras, to use entities controlled by the Rosenthal family to launder drug proceeds for the Cachiros. Rosenthal Hidalgo pled guilty on July 26, 2017, to engaging in monetary transactions in property derived from drug trafficking offenses between 2004 and September 2015. Several aspects of the Cachiros money-laundering scheme that ACOSTA participated in also received support from Fabio Porfirio Lobo, the son of a former President of Honduras. Lobo is scheduled to be sentenced on September 5, 2017, by U.S. District Judge Lorna G. Schofield in United States v. Lobo, No. 15 Cr. 174 (LGS), based on his conviction for participating in a conspiracy with members of the Cachiros and others to import cocaine into the United States.
ROSENTHAL remains designated as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act, along with Rosenthal Oliva (ROSENTHAL’s uncle), Rosenthal Hidalgo (ROSENTHAL’s cousin), and Shelimar Investments, as announced in October 2015 by the United States Department of the Treasury, Office of Foreign Assets Control (“OFAC”).
* * *
ROSENTHAL, 48, pled guilty to one count of attempting to engage in monetary transactions in property derived from specified unlawful activity. The charge carries a maximum term of 10 years in prison. ACOSTA, 42, pled guilty to one count of engaging in monetary transactions in property derived from specified unlawful activity. The charge carries a maximum term of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. ROSENTHAL is scheduled to be sentenced on January 19, 2018, and ACOSTA is scheduled to be sentenced on January 12, 2018. Both defendants are to be sentenced by U.S. District Judge John G. Koeltl.
Mr. Kim praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as OFAC and the U.S. Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Jane Kim, and Matthew J. Laroche are in charge of the prosecution.
The charges contained in the Indictment against Jaime Rolando Rosenthal Oliva are merely accusations, and Rosenthal Oliva is presumed innocent unless and until proven guilty.
[1] The descriptions set forth below of conduct by co-defendant Jaime Rolando Rosenthal Oliva constitute only allegations, and every fact described should be treated as an allegation with respect to Rosenthal Oliva.
Former Financial Advisor Charged with Fraud in an Alleged Ponzi SchemeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On August 25, 2017, Dawn J. Bennett, age 55, of Chevy Chase, Maryland, was arrested in Santa Fe, New Mexico. In addition to a previously filed Securities and Exchange Commission (SEC) complaint, Bennett has also been charged in a criminal complaint with wire fraud, bank fraud, and false statements in relation to loan and credit applications.
The arrest was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the criminal complaint, Bennett is the owner and operator of DJB Holding, LLC, d/b/a DJBennett.com. DJBennett.com is an internet retail website for luxury sportswear.
The criminal complaint alleges account activity consistent with a Ponzi scheme and misappropriation of investor funds. A Ponzi scheme is a fraudulent investment scheme where the operator of the scheme solicits investors by promising high rates of return with little risk. The scheme operator then funds payments to the older investors through funds obtained through new investors. Typically, the operator of the scheme will use investment funds for purposes other than what was conveyed to the investors.
According to the criminal complaint, Bennett solicited individuals to invest money into her internet clothing business, offering an annual interest rate of 15% via convertible or promissory notes. For instance, between December 17, 2014 and October 29, 2015, 28 individuals made deposits of over $5 million into the DJBennett.com operating account. The complaint alleges that Bennett would repay investors with funds she received from new investors and used funds sourced from individual investors to fund her personal legal expenses, among other things.
The criminal complaint further alleges that in May 2015, DJB Holdings, LLC obtained a $750,000 line of credit secured by the inventory of DJB Holdings LLC/DJBennett.com. In support of this line of credit, one of Bennett’s employees provided the lender a brokerage statement in Bennett’s name that listed a net portfolio value of over $4 million. In reality, Bennett’s net portfolio value for that same account was only $35. In February 2016, the lender declared the loan in default. Bennett responded to the lender that she was unaware of the default and claimed she had been in China for the preceding eight months. A search of FBI databases was unable to firm any international travel for Bennett during the time in which she claimed to be in China, and her personal American Express card showed numerous transactions in the Chevy Chase, Maryland and Washington, D.C. area.
On August 25, 2017, the SEC filed a related action against Dawn J. Bennet and DJB Holdings, LLC d/b/a/ DJBennett and DJBennett.com alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Acting United States Attorney Stephen M. Schenning thanked the SEC and the FBI. Mr. Schenning praised Assistant U.S. Attorneys Erin Pulice and Thomas Windom who are prosecuting the case.
Former Executive Director of St. Clair Housing Commission Pleads Guilty to Federal Program FraudRead the Press Release
The former executive director of the St. Clair Housing Commission, pleaded guilty today to conspiring to commit federal program fraud, Acting United States Attorney Daniel Lemisch announced.
Lemisch was joined in the announcement by Brad Gary, Special Agent in Charge of the U.S. Department of Housing and Urban Development and David P. Gelios, Special Agent in Charge, Federal Bureau of Investigation.
Lorena Loren, 55, of Nicholls, Georgia admitted to conspiring with several family members to steal federal funds provided to the Commission by the U.S. Department of Housing and Urban Development (‘HUD”) to administer HUD’s low-income housing programs within St. Clair County. Loren admitted to engaging in various fraudulent schemes to unlawfully obtain over $336,000 in federal funds.
According to court records, Loren stole approximately $162,000 earmarked for HUD’s Housing Choice Voucher program, commonly known as Section 8 housing, which allows low-income families to lease privately owned rental properties with the assistance of HUD rental subsidies administered by the Commission. As part of this fraudulent scheme, between August of 2008 and August of 2016, Loren fraudulently entered into Section 8 contracts from which, at various times, she and nearly all of her immediate family members directly benefitted, in violation of HUD’s regulations and guidelines. In addition to falsifying Section 8 housing contracts and lease agreements by using nominees for lease agreements for Loren’s son, Loren and several relatives falsely claimed they owned rental properties which were, in fact, owned by others; where former Section 8 tenants resided; and, owned by Loren herself. Loren, as executive director, then fraudulently issued Section 8 rental subsidy payments to relatives, in some instances, even in the names of former Section 8 tenants who were no longer in the program. Loren also directed family members to establish joint bank accounts to facilitate access to the ill-gotten funds by various members of her family. In addition, between 2010 and 2016, Loren used the Commission’s two credit cards to make unauthorized purchases of personal items for herself and relatives from Amazon.com, Walmart and Sam’s Club stores. Loren purchased, among other things, adult and infant clothing, furniture, food, beauty supplies, medications, other household items, and alcoholic beverages on the Commission’s cards. Loren had some of those purchases, totaling approximately $60,000, shipped to some of the same relatives involved in the Section 8 housing scheme at their residences in Georgia and Florida. Loren used the Commission’s operating budget, provided by HUD to maintain the Commission’s public housing facility, Palmer Park Manor, to pay for all the unauthorized purchases, which totaled nearly $166,000. Lastly, Loren also pocketed approximately $8,500 of the Commission’s petty cash funds.
HUD Special Agent in Charge Gary stated, ““At such a critical time for the Department of Housing and Urban Development, with programs that are vital to the well-being of so many in our communities, it is critical that those entrusted to public service are completely dedicated to those in need. The HUD Office of Inspector General is committed to partnering with Federal prosecutors and fellow law enforcement to aggressively pursue those engaged in activities that harm HUD’s Public Housing programs.”
As part of her guilty plea, Loren agreed to pay $336,240.62 in restitution to HUD.
A sentencing date has been set for January 23, 2018 at 2:00 p.m.. Loren faces a maximum of five years in prison and a fine of up to $250,000.
The case was investigated by agents of U.S. Department of Housing and Urban Development-Office of Inspector General and the Macomb Resident Agency of the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Dawn N. Ison.
Former Bank Employee Pleads Guilty to Embezzling $213,000+ from BankRead the Press Release
WICHITA, KAN. - A Labette County woman pleaded guilty Tuesday to a federal charge of embezzling more than $213,000 from the bank where she worked, U.S. Attorney Tom Beall said.
Debra J. Nading, 59, Oswego, Kan., pleaded guilty to one count of theft by a bank employee. In her plea, she admitted the crime occurred while she worked as an assistant cashier and bookkeeping supervisor for the Labette Bank in Parsons, Kan. She used her access to the bank’s credit card accounts to make false entries to cover up the theft.
Sentencing is set for Nov. 17. She faces up to 30 years in federal prison and a fine up to $1 million. Beall commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Former Angola Prison Supervisor Sentenced for Wire Fraud SchemeRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced that Senior U.S. District Judge James J. Brady sentenced SHIRLEY WHITTINGTON, age 46, of St. Francisville, Louisiana, to serve 5 years of probation following her conviction for wire fraud. WHITTINGTON was ordered to make restitution to the Angola Employees Recreation Committee (“AERC”) totaling $115,519.98, and to pay a $100 special assessment. WHITTINGTON was ordered to forfeit an additional $115,519.98 as the proceeds of her criminal activity.
While serving as a Colonel at the Louisiana State Penitentiary at Angola, WHITTINGTON also served as Treasurer of the AERC, a limited liability company formed to enrich its members through recreational activities and community events. The AERC raised funds from various sources and its finances were subject to internal audits and review. On February 15, 2017, WHITTINGTON pled guilty to wire fraud, in violation of Title 18, United States Code, Section 1343. Specifically, WHITTINGTON admitted that while serving as Treasurer of the AERC from 2009 through 2016, she fraudulently diverted organization funds for her own benefit and for the benefit of her associates through online and local retailer purchases, ATM withdrawals, cash back and counter check transactions, and by removing cash from rodeo concession sale deposits. Throughout the course of her scheme, she fraudulently diverted thousands of dollars in AERC funds and concealed her misuse of funds through material misrepresentations in the organization’s accounting log.
Acting U.S. Attorney Amundson stated, “This investigation and prosecution demonstrate a continued commitment to identifying, investigating, and prosecuting individuals who abuse positions of trust to line their own pockets, regardless of rank or official status. Public corruption and white collar crime remain top priorities for this office. This defendant has now been removed from her position of public trust and, through today’s sentence, will be responsible for repaying the victim that she defrauded over many years. I sincerely appreciate the dedicated work of the Louisiana Legislative Auditor’s Office, the FBI, the Louisiana Attorney General’s Office, and the other state and local partners who committed their resources to addressing this fraudulent scheme.”
Louisiana Legislative Auditor Daryl Purpera stated, “The Legislative Auditor’s Office will continue working with our federal, state and local partners to identify and investigate public servants who violate the public trust. Our state is fortunate to have many good public servants. I hope those few who decide to violate the public trust realize that we will do everything we can to see that they are held accountable.”
FBI Special Agent in Charge Jeffrey Sallet stated, “The taxpayers of Louisiana deserve that their public officials serve them with respect and honesty. In partnership with its law enforcement partners, the New Orleans Division of the FBI will continue to aggressively pursue any public official who chooses to abuse the public’s trust and illegally use their position for personal gain.”
The matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the Baton Rouge Office of the Federal Bureau of Investigation, with substantial assistance provided by investigative auditors from the Louisiana Legislative Auditor’s Office. This case was prosecuted by Assistant United States Attorney Chris Dippel, who serves as a Deputy Chief of the Criminal Division.
Florida Men Sentenced for Assault and Cross Burning Aimed at Intimidating an Interracial Couple Living Next DoorRead the Press Release
Today, United States District Judge Mary S. Scriven of the Middle District of Florida sentenced Thomas Herris Sigler, III, 46, and William A. Dennis, 56, to serve 33 and 21 months incarceration, respectively. Sigler and Dennis both pled guilty to civil rights violations for their roles in attacking and intimidating an interracial couple in Port Richey, Florida. A third co-defendant, Pascual Carlos Pietri also pled guilty to the same charge and was sentenced to 37 months imprisonment on March 23, 2016. All three of the co-defendant’s sentences are to be followed by three years of supervised release. A fourth co-conspirator is now deceased.
According to the evidence presented in court proceedings and documents, in September 2012 an interracial couple moved in next door to Sigler and Dennis. Sigler and Dennis began regularly harassing the African-American male neighbor shortly after the couple moved in with racial slurs and derogatory statements. Then in mid-October 2012, Sigler physically attacked the African-American neighbor, while Dennis looked on and prevented another neighbor from intervening.
On Halloween night, Sigler and Dennis attended a party at the home of the fourth co-conspirator. The men made a plan to intimidate the couple into moving from their residence by burning a cross in their front yard. Using wood and tools from the fourth co-conspirator, Sigler and Dennis constructed a wooden cross, and Dennis poured gasoline on the cross. Dennis and Pietri carried the cross to the victims’ front yard, leaned it against their mailbox, and Dennis instructed Pietri set the cross on fire, which he did.
“The victims were attacked and threatened in their own neighborhood and home because of their race,” said John M. Gore, Acting Assistant Attorney for Civil Rights. “Such violence and intimidation has no place in our society, the Justice Department is committed to protecting the rights of all citizens, and will continue to vigorously prosecute individuals who commit such atrocious acts of hate.”
“Acts of intimidation and violence perpetrated against people because of their race, ethnicity, color, or creed are reprehensible,” said Acting U.S. Attorney Stephen Muldrow. “Individuals and families should have the right to live wherever they choose, without fear. Acts of hatred such as this simply cannot be tolerated and we will investigate and prosecute those who commit these crimes.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Josephine W. Thomas and Simon A. Gaugush of the Middle District of Florida and Trial Attorney William E. Nolan of the Civil Rights Division’s Criminal Section.
Florida Men Sentenced for Assault and Cross Burning Aimed at Intimidating an Interracial Couple Living Next DoorRead the Press Release
Tampa, FL – United States District Judge Mary S. Scriven today sentenced Thomas Herris Sigler, III, 46, and William A. Dennis, 56, to serve 33 and 21 months incarceration, respectively. Sigler and Dennis both pleaded guilty to civil rights violations for their roles in attacking and intimidating an interracial couple in Port Richey, Florida. A third co-defendant, Pascual Carlos Pietri also pleaded guilty to the same charge and was sentenced to 37 months imprisonment on March 23, 2016. A fourth co-conspirator is now deceased.
According to the evidence presented in court proceedings and documents, in September 2012 an interracial couple moved in next door to Sigler and Dennis. Sigler and Dennis began regularly harassing the African-American male neighbor shortly after the couple moved in with racial slurs and derogatory statements. Then in mid-October 2012, Sigler physically attacked the African-American neighbor, while Dennis looked on and prevented another neighbor from intervening.
“Acts of intimidation and violence perpetrated against people because of their race, ethnicity, color, or creed are reprehensible,” said Acting U.S. Attorney Stephen Muldrow. “Individuals and families should have the right to live wherever they choose, without fear. Acts of hatred such as this simply cannot be tolerated and we will investigate and prosecute those who commit these crimes.”
On Halloween night, Sigler and Dennis attended a party at the home of the fourth co-conspirator. The men made a plan to intimidate the couple into moving from their residence by burning a cross in their front yard. Using wood and tools from the fourth co-conspirator, Sigler and Dennis constructed a wooden cross, and Dennis poured gasoline on the cross. Dennis and Pietri carried the cross to the victims’ front yard, leaned it against their mailbox, and Dennis instructed Pietri set the cross on fire, which he did.
“The victims were attacked and threatened in their own neighborhood and home because of their race,” said John M. Gore, Acting Assistant Attorney for Civil Rights. “Such violence and intimidation has no place in our society, The Justice Department is committed to protecting the rights of all citizens, and will continue to vigorously prosecute individuals who commit such atrocious acts of hate.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Josephine W. Thomas and Simon A. Gaugush of the Middle District of Florida and Trial Attorney William E. Nolan of the Civil Rights Division’s Criminal Section.
Farmingdale, New Jersey, Man Charged with Robbing Two Monmouth County BanksRead the Press Release
TRENTON, N.J. – A Farmingdale, New Jersey, man appeared in federal court today to face charges that he recently robbed TD Banks in Tinton Falls, New Jersey, and Wall, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael R. Volek, 53, was arrested yesterday and charged by complaint with one count of bank robbery. He appeared this afternoon before U.S. Magistrate Judge Douglas Arpert in Trenton federal court and was detained.
According to the complaint:
On Aug 25, 2017, Volek allegedly entered a TD Bank in Tinton Falls and handed a teller a note that read “put the money in bag now and nobody get hurt.” Volek then told the bank teller “put the money in the bag. Come on, I’m desperate.” The teller handed Volek some cash and he left the bank.
On Aug. 28, 2017, Volek allegedly entered another TD Bank in Wall and handed a teller a note that read “Put the money in bag now. This is no joke. I will shoot you. $100. $50.” Volek then told the teller “Give me money. If you don’t, I’m going to cut you.” The teller handed Volek some cash and he left the bank. Volek was arrested later that day at a motel in Neptune, New Jersey.
The charge in the complaint carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Enterprise Task Force (to include representatives from Bradley Beach Police Department, Brick Police Department, Marlboro Police Department, Monmouth County Sheriff’s Office, and Toms River Police Department), under the direction of Special Agent in Charge Timothy Gallagher; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Tinton Falls Police Department, under the direction of Chief John A. Scrivanic; the Wall Township Police Department, under the direction of Chief Ken Brown; and the Neptune Township Police Department, under the direction of Chief James M. Hunt Jr., with the investigation leading to Volek’s arrest.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton
Eritrean National Sentenced for Visa FraudRead the Press Release
PLATTSBURGH, NEW YORK – Mohammed Nurey Ibrahim, age 41, an Eritrean national and resident of Riyadh, Saudi Arabia, was sentenced today to time served (about 4 months in jail) for presenting a fraudulently obtained visa to a United States Border Patrol Agent in Champlain, New York
The announcement was made by Acting United States Attorney Grant C. Jaquith and Acting Director Christian J. Schurman of the U.S. Department of State’s Diplomatic Security Service.
As part of his July 18, 2017 guilty plea, Ibrahim admitted that he fraudulently obtained a United States non-immigrant tourist visa in September 2016 from a United States consulate in Saudi Arabia. On January 5, 2017, he presented that visa to a Border Patrol Agent in Champlain as he attempted to illegally cross the border in order to claim asylum in Canada.
Following sentencing, Ibrahim was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by the U.S. Department of State’s Diplomatic Security Service, United States Customs and Border Protection, United States Border Patrol, and Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Elizabeth Horsman.
District Man Sentenced to 28 ½ Years in Prison for Armed Home Invasion in Southeast WashingtonRead the Press Release
WASHINGTON - Tracy Medina-Winfield, 26, of Washington, D.C., was sentenced today to a 28 ½-year prison term for his role in an armed home invasion that took place last year in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Medina-Winfield was found guilty by a jury in June 2017 of first-degree burglary while armed, armed kidnapping, armed robbery, and other offenses. A co-defendant, Jamal Hill, 25, of Laurel, Md., was found guilty of fleeing a law enforcement officer and destruction of property for his role as the getaway driver in the crime. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Danya A. Dayson sentenced Medina-Winfield today. Following his prison term, Medina-Winfield will be placed on a period of supervised release.
According to the government’s evidence, on April 3, 2016, at approximately 3:30 p.m., Medina-Winfield, while armed with a handgun and wearing a mask, entered a private home in the 4200 block of Hildreth Street SE while a man and woman were inside. Medina-Winfield pointed the gun in their faces and said, “You know what time it is.” He then asked for the keys to the Audi that was parked outside. While doing this, an unknown suspect entered the home and began looking around for items. Medina-Winfield and his accomplice then asked for the keys to the car that was parked outside, but the victims responded that the car did not belong to them.
At this point, Medina-Winfield escorted the victims to the upstairs bathroom and made them kneel in the bathtub. One victim told the jury that he believed he was going to die in that moment. They were subsequently asked for the location of their phones. The unknown suspect then found the phones, yelled “got them” to Medina-Winfield, and they left. The male victim followed them outside. According to the government’s evidence, Jamal Hill was in the drivers’ seat of a waiting car. Medina-Winfield, who was seated in the passenger seat, saw the victim, pointed his gun at him and ordered him to get back inside. He and the others then drove off.
Hill, who had been free on personal recognizance, did not return to court midway through the trial and a bench warrant has been issued for his arrest.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Daphne Nelson and Antoinette Sakamsa; Litigation Technology Specialists William Henderson, Paul Howell, and Anisha Bhatia, and Summer Law Clerk William Omorogieva. Finally, he commended the work of Assistant U.S. Attorneys Anwar Graves and Rizwan Qureshi, who investigated and prosecuted the case.
Deputy U.S. Attorney General Rod Rosenstein to Keynote FBI-BCRI Hate Crimes Conference in SeptemberRead the Press Release
BIRMINGHAM –Deputy U.S. Attorney General Rod Rosenstein will be the keynote speaker for the opening session of the 2017 annual Conference on Civil Rights and Law Enforcement sponsored by the Federal Bureau of Investigation, Birmingham Division, and the Birmingham Civil Rights Institute.
The two-day conference will focus on hate crimes. The program begins at 3:30 p.m. Sunday, Sept. 17, at the historic 16th Street Baptist Church, with Deputy Attorney General Rosenstein delivering his address at 4 p.m.
The conference continues on Monday, Sept. 18, from 8 a.m. to 5 p.m. and will include a case study on the 2015 hate-crime massacre at Emanuel African Methodist Episcopal Church in Charleston, S.C., from a federal prosecutor and investigators who worked the case. The gunman, a 21-year-old white supremacist, killed nine people during a Bible study at the church. The speakers will include Nathan Williams, who prosecuted the case, Brian Womble, supervisory FBI Special Agent, and Gregory Mullen, the recently retired Charleston Chief of Police. Each will speak about the role he played in the tragic event.
The conference is free, but registration for each day is required at www.bcri.org.
“Hate crimes have devastating effects beyond the harm inflicted on any one victim,” stated Andrea L. Taylor, BCRI President and CEO. “They reverberate through families, communities, and the entire nation.”
“Hate crimes are the highest priority of the FBI's civil rights program and the objective of this conference is to create open, honest dialogue between law enforcement officials and the community, promote cooperation, and share with the community what a federal hate crime is and how to report it,” said FBI Birmingham Division Special Agent in Charge Johnnie Sharp Jr.
Monday’s session will begin with Dr. Andrew Baer, assistant professor, Department of History, University of Alabama at Birmingham, who will speak about the history of hate. Dr. John Gampher, UAB Department of Psychology, will follow with his presentation, “Inside the Mind of Hate.”
Dr. Shay DeGolier, Outreach and Organizing Specialist with the Southern Poverty Law Center, will deliver Monday’s luncheon address.
Monday’s program also will include a panel discussion addressing what hate looks like from the perspective of various minority communities within the Greater Birmingham metro area. Dr. G. Christine Taylor, Vice President and Associate Provost, Diversity, Equity and Inclusion, at the University of Alabama, will moderate the panel.
- Special Agent Gerome Lorrain, Jackson Division, will conclude Monday’s session with a case study on the 2015 death of Mercedes Williamson, which resulted in the first conviction on federal hate crime charges arising from the murder of a transgender woman.
For more information on the conference, contact Paul Daymond, at [email protected] or (205) 279-1457, or Charles Woods III, at [email protected] or 205-328-9696 x246.
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Cynthiana Man Sentenced to 150 Months for Robbing Lexington Pharmacy and Possession with Intent to Distribute HydrocodoneRead the Press Release
LEXINGTON, Ky. — Miguel David Ayala, 38, of Cynthiana, Ky., was sentenced yesterday to 150 months in federal prison for robbing a pharmacy and possession with intent to distribute Hydrocodone . Ayala was also ordered to pay $3,219.61 in restitution.
Senior U.S. District Judge Joseph M. Hood formally sentenced Ayala after he was convicted by a jury, following a three-day trial. The evidence at trial established that, on July 8, 2015, Ayala robbed the Rite Aid Pharmacy on Executive Drive in Lexington, Kentucky. During the robbery, Ayala, who was armed with a handgun, stole approximately 4,000 Hydrocodone pills, a Schedule II controlled substance. The evidence also established that following the robbery Ayala possessed these stolen pills with intent to distribute them.
Under federal law, Ayala must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Timothy J. Plancon, DEA Special Agent in Charge of the Detroit Field Division; Mark G. Barnard, Chief of the Lexington Division of Police; and Ray Johnson, Chief of the Cynthiana Police Department, jointly announced the sentence.
The investigation was conducted by the DEA, the Lexington Police Department, and the Cynthiana Police Department. The United States was represented by Assistant United States Attorney Robert M. Duncan, Jr.
Cincinnati Man Pleads Guilty to Using Counterfeit Checks at Gaming CasinosRead the Press Release
PITTSBURGH – A resident of Cincinnati, Ohio, pleaded guilty in federal court to charges of conspiracy to commit bank fraud and aggravated identity theft, Acting United States Attorney Soo C. Song announced today.
James Brown, 59, of Cincinnati, OH, pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that between May 2014 through February 2017, Brown and others negotiated counterfeit checks at gaming casinos along the east coast from Florida to New York, using false identification documents produced with the names of real persons to negotiate the counterfeit checks. Some of those checks were negotiated at the River’s Casino in Pittsburgh. Fraud losses total several hundred thousand dollars.
Judge Fischer scheduled the sentencing for December 21, 2017 at 11 a.m. The law provides for a maximum sentence for the bank fraud conspiracy is 30 years in prison, and a minimum sentence of 24 months incarceration for aggravated identity theft, and fines for both crimes totaling $1,250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Agents from Homeland Security Investigations and the Pennsylvania State Police conducted the investigation that led to the prosecution of James Brown.
Carson Nathan Martin Sentenced to over Twenty-Eight Years in Federal Prison for Producing and Distributing Child PornographyRead the Press Release
KNOXVILLE, Tenn.- On August 29, 2017, Carson Nathan Martin, 38, of Knoxville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 345 months in prison for producing child pornography. Following his release from prison, Martin will be supervised by the U.S. Probation Office for the rest of his life and required to register with the sex offender registry in any state in which he resides, works, or attends school.
Martin pleaded guilty in March 2017 to federal charges stemming from his use of a minor female to make pornographic videos and pictures and his distribution of those depictions to others via the Internet. Investigators with the Massachusetts State Police discovered depictions of the of the sexual abuse of the minor that Martin had made and alerted investigators with the Knoxville Police Department’s Internet Crimes Against Children Task Force (KPD-ICAC) that someone in the Knoxville area was circulating child pornography. A search of Martin’s residence resulted in the seizure of evidence confirming that he had been sexually abusing the minor and recording the abuse on his cellular telephone. He was arrested and has been in custody since the search of his residence.
This investigation was conducted by KPD-ICAC and the U.S. Department of Homeland Security. Assistant U.S. Attorney Matthew Morris represented the United States.
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 the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Cape May County, New Jersey, Man Gets 66 Months in Prison for Operating Payroll Tax Fraud SchemeRead the Press Release
TRENTON, N.J. – A Sea Isle City, New Jersey, man was sentenced today to 66 months in prison for operating a multimillion-dollar fraud scheme through his former payroll company, Innovative Payroll Services LLC (IPS), Acting U.S. Attorney William E. Fitzpatrick announced.
John Scholtz, 68, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of wire fraud and one count of transacting in criminal proceeds. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Scholtz owned and operated IPS, a company that provided payroll services to clients – including municipalities, educational institutions, and various small to medium-sized privately held companies – in New Jersey and elsewhere. Each payroll period, IPS provided its clients with a summary setting forth the payroll taxes owed for that period. IPS clients then deposited the specified payroll taxes into an IPS bank account, where IPS held the funds until they were remitted to the taxing authorities.
Scholtz admitted that from February 2012 to January 2016, he withdrew or directed others at IPS to withdraw client tax funds from IPS’ Tax Impound Accounts, knowing that these funds constituted client tax funds, and used these funds instead for IPS operating expenses and his own personal expenses, including payments for homes, cars, boats, airplanes and credit cards.
This ongoing misappropriation of funds caused many IPS clients to be in delinquent status with the IRS and state and local taxing authorities. As clients’ tax deposit funds came in, IPS used such funds to pay other clients’ taxes owed for prior pay periods, as well as penalties and interest. As a result, at least 103 IPS clients lost more than $8.4 million worth of federal, state and local tax deposits that IPS failed to make, as well as more than $578,000 in associated penalties and interest. The City of Trenton was an IPS client from July 2009 to January 2016, and is one of is the IPS clients whose tax deposit funds were misappropriated by Scholtz.
In addition to the prison term, Judge Wolfson sentenced Scholtz to two years of supervised release and ordered him to pay restitution of $9,566,460.79.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark Division; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, Newark Division; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian Reilly Esq., Assistant Federal Public Defender, Trenton