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10 October 2017
Group Responsible for ATM Thefts SentencedRead the Press Release
Anchorage, Alaska - Acting U.S. Attorney Bryan Schroder announced today that, on Friday, Oct. 6, 2017, the group responsible for ATM thefts at several Anchorage banks were sentenced in U.S. District Court in Anchorage.
Chief U.S. District Judge Timothy M. Burgess sentenced Adrian Turnbow, Christi Cozzetti, Jerd Thacker, and Jordan Cook for their roles in ATM thefts from banks in early 2017. All had previously pleaded guilty to the crime of possession of stolen bank property.
Turnbow used front end loaders stolen from local construction sites to remove ATMs from Anchorage banks. Turnbow was involved in thefts or attempted thefts that occurred at an Alaska USA branch on Dec. 25, 2016, at Denali Federal Credit Union on Feb. 6, and at two First National Bank branches on March 1, and March 6, 2017.
Cozzetti, Thacker, and Cook participated in the March 1, 2017, theft. On that date, Turnbow used a front end loader to remove an Automated Teller Machine (ATM) from a First National Bank branch located near the intersection of Old Seward Highway and Dimond Boulevard in Anchorage. Turnbow then contacted Jerd Thacker, who assisted him in transporting the ATM to the Wasilla area. While Turnbow was inside a heavy equipment rental business in Wasilla, Thacker stole Turnbow’s truck that contained the stolen ATM, then he, Cozzetti, and Thacker travelled to Big Lake where they attempted to open the ATM.
Adrian Turnbow, 26, of Anchorage, was sentenced to 30 months in prison, followed by three years of supervised release. In addition, Turnbow was ordered to pay a total of $452,933 in restitution to the following businesses: Alaska Federal Credit Union, Titan LLC, Denali Federal Credit Union, BC Excavating, and First National Bank. Turnbow also agreed to abandon any interest he had in a blue Chevrolet truck that was purchased with money from one of the stolen ATMs and was used to facilitate the theft of another ATM. Judge Burgess noted at Turnbow’s sentencing that his crimes were serious and caused ripples of problems across the community, as customers could not use the ATMs at their banks and banks lost customers.
Cristi Cozzetti, 29, of Anchorage, was sentenced to 18 months in prison, followed by three years of supervised release and 200 hours of community work service. Judge Burgess noted at Cozzetti’s sentencing that she had a “terrible” criminal history and that this sentence would protect the public from her future crimes.
Jerd Thacker, 28, of Anchorage, was sentenced to 12 months and one-day in prison, followed by three years of supervised release and 200 hours of community work service. Thacker and others possessed a stolen ATM on March 1, 2017, and attempted to open it after it had been stolen from an Anchorage bank by Turnbow. Judge Burgess noted that there was “no honor among thieves” with regard to Thacker stealing Turnbow’s truck that he knew contained a stolen ATM.
Jordan Cook, 29, of Anchorage, was sentenced to seven months in prison, followed by three years of supervised release and 200 hours of community work service.
Judge Burgess ordered community work service as a condition for Cozzetti, Thacker, and Cook so they may contribute something positive to the community after they have served their sentences.
Acting U.S. Attorney Schroder commended the diligence and hard work of the Federal Bureau of Investigation, the Anchorage Police Department, and the Alaska State Troopers for the investigation leading to the successful prosecution of Turnbow, Cozzetti, Thacker, and Cook.
Goose Creek Tax Return Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Stacy B. Middleton, age 47, of Goose Creek, South Carolina, was sentenced in federal court in Charleston, South Carolina, on two felony counts of Willfully Preparing and Filing a False Income Tax Return, in violation of Title 26, United States Code, Section 7206(2). Senior United States District Court Judge Patrick Michael Duffy sentenced Middleton to 41 months imprisonment and 1 year of supervised release.
According to court documents and in statements made during court hearings, Middleton owned and operated a tax preparation business in Charleston named MBM Tax & Accounting Services, LLC (“MBM”). For calendar years 2009, 2010, and 2011, Middleton prepared and electronically filed over 1,300 false and fraudulent income tax returns for his clients without their knowledge in order to increase their refunds. The income tax returns contained overstated, duplicated or fictitious deductions, fictitious Schedules C to maximize Earned Income Tax Credits, fabricated expenses for Schedules A, C and E, fraudulent refundable credits, and fictitious Forms 1099. Middleton admitted that his scheme caused a tax loss of $3,500,000.
Ms. Drake stated that the case was investigated by agents of the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Dean H. Secor of the Charleston Office prosecuted the case.
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Gang Member Sentenced to Prison After Lying to Grand JuryRead the Press Release
Keno Deandre Lane, aka Savage, 25, of Nashville, Tenn., was sentenced on October 6, 2017, to five years in prison, followed by three years of supervised release, for making a false declaration before a grand jury, announced United States Attorney Donald Q. Cochran of the Middle District of Tennessee.
Lane was indicted in April 2016 and pleaded guilty earlier this year to lying to a grand jury, obstructing justice and being an unlawful drug user in possession of a firearm.
“Serious consequences, including significant time in federal prison, await those who choose to lie during a grand jury proceeding,” said U.S. Attorney Cochran. “The U.S. Attorney’s Office will vigorously prosecute those who impede the grand jury’s work by giving false testimony or otherwise interfere with this critical part of the criminal justice system.”
According to court documents, Lane was a Five Deuce Hoover Crip gang member and on September 11, 2015, Metropolitan Nashville Police officers encountered Lane, who was in possession of a firearm. Subsequent investigation determined that this firearm was originally taken during the armed robbery of a Cricket Wireless store near the J.C. Napier neighborhood on January 22, 2015. This same firearm was later used in three armed robberies, as well as the murder of Isaiah Starks, aka Blue, which occurred on February 9, 2015 in the J.C. Napier public housing development. Lane was later subpoenaed to testify before a federal grand jury investigating those crimes, and intentionally lied to the grand jury about when and how he obtained that firearm.
Three other defendants, Aweis Haji-Mohammed, Marquis Brandon, and Reginald Johnson, are charged in connection with this case and their cases are pending. They are presumed innocent of the charges against them unless and until proven guilty in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department – Gang Unit. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Former nursing home employee pleads guilty for embezzling over $80,000Read the Press Release
CHARLESTON, W.Va. – A former nursing home employee who embezzled over $80,000 pleaded guilty today, announced United States Attorney Carol Casto. Veneford Blankenship, 35, of Princeton, entered her guilty plea to mail fraud.
Blankenship worked at a nursing home in Princeton as the Business Office Supervisor where she oversaw the financial operations. Her duties included sending patient invoices, recording deposits in the nursing home’s accounting program, and depositing checks into the nursing home’s operations account. The nursing home also had another bank account, which allowed residents to collect funds that were occasionally spent on dinner, outings, and small events for residents. While the nursing home’s parent company received bank statements for its operations account, the parent company did not receive any statements for the other bank account.
Blankenship admitted that in June 2015, she began secretly diverting residents’ payment checks. Instead of depositing these checks into the operations account, she deposited the checks into the other bank account. She then wrote checks to herself from the other account, forging the signatures of the two individuals with signature authority. She hid her crime by writing false memos on the checks and indicating that the withdrawals were for legitimate nursing home purposes, when in reality she took the money for herself. She also falsely updated the nursing home’s accounting program to indicate that the residents paid invoices and that the nursing home received funds that she had stolen.
Blankenship faces up to 20 years in federal prison when she is sentenced on January 23, 2018. As part of her plea agreement, Blankenship agreed to pay restitution in the amount of $82,926.15.
The FBI and the Postal Inspection Service conducted the investigation. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
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Former Postal Worker Sentenced for Stealing Money OrdersRead the Press Release
ALBANY, NEW YORK – Naisha Wiley, 35, of Schenectady, New York, was sentenced today to a three-year term of probation for stealing $10,000 in money orders from the United States Postal Service (USPS).
The announcement was made by Acting United States Attorney Grant C. Jaquith, Eileen Neff, Special Agent in Charge of the Northeast Area for the United States Postal Service, Office of the Inspector General, and Inspector in Charge Shelly A. Binkowski, United States Postal Inspection Service, Boston Division.
In pleading guilty, Wiley admitted that while working part-time as a retail clerk in Post Offices in Montgomery County in 2016 and 2017, she stole U.S. Postal Service money orders totaling $10,000. She also admitted to stealing gift cards from the mail.
Senior United States Judge Thomas J. McAvoy also ordered Wiley to pay $10,170.00 in restitution to her victims, and complete 50 hours of community service.
This case was investigated by the United States Postal Service, Office of the Inspector General, and the United States Postal Inspection Service, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Former North Carolina Police Officer Sentenced to 15 Years in Prison for Participation in Drug Distribution ConspiracyRead the Press Release
WASHINGTON - A former police officer with the Windsor, North Carolina Police Department was sentenced today to 180 months in prison for accepting bribe payments from a purported large-scale drug trafficking organization in exchange for protecting shipments of purported narcotics.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon, Jr. of the Eastern District of North Carolina made the announcement.
Antonio Tillmon, 33, of Windsor, North Carolina, was sentenced by Senior U.S. District Court Judge Malcolm J. Howard. In addition to the term of prison imposed, Judge Howard ordered Tillmon to serve five years of supervised release. In May 2017, Tillmon was found guilty of drug, firearm, and bribery charges following a week-long jury trial.
According to trial evidence, Tillmon accepted $6,500 from undercover FBI agents posing as drug traffickers in return for transporting a total of 30 kilograms of heroin from North Carolina to Maryland on three separate occasions between August 2014 and April 2015. On each occasion, Tillman carried with him his Windsor Police Department badge and a firearm, and was prepared to use his badge and fake documentation to evade drug interdiction by legitimate law enforcement. The evidence at trial also showed that Tillmon was poised to participate in another drug run on a fourth occasion the day that he was arrested—and he had brought with him five firearms, including an assault rifle.
Fourteen other defendants, 12 of whom were law enforcement or correctional officers, were charged as a result of this investigation. Those defendants all pleaded guilty to various offenses and were sentenced in June 2017.
The case was investigated by the FBI’s Charlotte Division, Raleigh Resident Agency. The case is being prosecuted by Trial Attorneys Lauren Bell and Molly Gaston of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Toby W. Lathan of the Eastern District of North Carolina.
Former North Carolina Police Officer Sentenced to 15 Years in Prison for Participation in Drug Distribution ConspiracyRead the Press Release
A former police officer with the Windsor, North Carolina Police Department was sentenced today to 180 months in prison for accepting bribe payments from a purported large-scale drug trafficking organization in exchange for protecting shipments of purported narcotics.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon, Jr. of the Eastern District of North Carolina made the announcement.
Antonio Tillmon, 33, of Windsor, North Carolina, was sentenced by Senior U.S. District Court Judge Malcolm J. Howard. In addition to the term of prison imposed, Judge Howard ordered Tillmon to serve five years of supervised release. In May 2017, Tillmon was found guilty of drug, firearm, and bribery charges following a week-long jury trial.
According to trial evidence, Tillmon accepted $6,500 from undercover FBI agents posing as drug traffickers in return for transporting a total of 30 kilograms of heroin from North Carolina to Maryland on three separate occasions between August 2014 and April 2015. On each occasion, Tillman carried with him his Windsor Police Department badge and a firearm, and was prepared to use his badge and fake documentation to evade drug interdiction by legitimate law enforcement. The evidence at trial also showed that Tillmon was poised to participate in another drug run on a fourth occasion the day that he was arrested—and he had brought with him five firearms, including an assault rifle.
Fourteen other defendants, 12 of whom were law enforcement or correctional officers, were charged as a result of this investigation. Those defendants all pleaded guilty to various offenses and were sentenced in June 2017.
The case was investigated by the FBI’s Charlotte Division, Raleigh Resident Agency. The case is being prosecuted by Trial Attorneys Lauren Bell and Molly Gaston of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Toby W. Lathan of the Eastern District of North Carolina.
Former New Rochelle Schools Director Pleads Guilty to CorruptionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that JOHN C. GALLAGHER JR., the former Director of Environmental Services for the City School District of New Rochelle, pled guilty before U.S. District Judge Kenneth M. Karas in White Plains federal court to bribery in connection with a scheme to solicit bribes from an outside contractor to channel school district business to the contractor’s company.
Acting U.S. Attorney Joon H. Kim said: “As he admitted today, John Gallagher demanded and received more than $150,000 in cash bribes from a contractor for the school district where Gallagher worked. As a school district employee, Gallagher was a public servant, whose job it was to do what was in the best interest of schoolchildren and taxpayers. Instead, Gallagher corruptly did what was in his own interests, lining his pockets with bribes. Combatting public corruption at all levels in government remains one of the Office’s top priorities.”
According to the allegations contained in the Indictment charging GALLAGHER and in the Information to which Mauro Zonzini pled guilty on May 9, 2017, as well as statements made in related court filings and proceedings:
The City School District of New Rochelle (the “School District”), which receives federal benefits significantly in excess of $10,000 each year, has a Buildings and Grounds Department. It is responsible for, among other things, maintenance and repair of facilities used by the School District to educate the children. To do certain maintenance and repair work, the School District uses outside contractors.
Among the outside contractors used by the School District are companies with specialties – in, for example, masonry, electrical work, plumbing, and carpentry – sometimes referred to as “bid vendors” or “time and materials” contractors. These contractors bid annually, using set rates, and if awarded contracts, are paid by the School District to handle any projects within the contractors’ specialties that do not exceed a certain threshold cost. (As of 2009, that amount, per New York State law, was $35,000.) A more costly project that exceeds the threshold is offered for bid and awarded to the lowest responsible bidder, unless the project is deemed a health and safety emergency (i.e., a major plumbing leak during the school year), in which case, the time and materials vendor may be asked to do the job, regardless of the cost.
GALLAGHER, the defendant, was the School District’s Director of Environmental Services, overseeing the School District’s buildings and grounds. To fill this position, the School District contracted with a company that provided, among other things, management services (“Company-1”). GALLAGHER, as an employee of Company-1, was thereby made the School District’s Director of Environmental Services, and worked full-time in the School District, as its agent, with authority to act on its behalf. GALLAGHER, as Director of Environmental Services, had influence over which contractors were awarded work by the School District, and over whether, when, and how contractors were assigned work and paid for work.
Mauro Zonzini owned and wholly controlled a construction company in Westchester County (the “Company”). The Company contracted with the School District to do masonry work, and was hired each year by the School District as its time and materials contractor for masonry work.
From in or about 2009 through in or about 2013, GALLAGHER engaged in a corrupt, criminal scheme, in which he solicited, demanded, and accepted bribes in the form of cash payments, intending to be influenced and rewarded in connection with the School District’s business and transactions with the Company. The bribe payments that GALLAGHER solicited, demanded, and accepted were paid by Zonzini. Routinely, after the School District paid the Company for work performed, GALLAGHER met in person with Zonzini in a parking lot, where Zonzini provided GALLAGHER with a kickback in the amount of 10 percent of the payment the Company had received from the School District. In this way, GALLAGHER received dozens of cash bribe payments from Zonzini, over the course of at least approximately four years, which together amounted to more than $150,000. GALLAGHER solicited, demanded, and accepted the bribe payments intending to be influenced in and rewarded for the School District’s decisions to award the Company contracts for masonry work, to assign masonry projects to the Company, and to make timely payment to the Company.
To avoid detection of his corrupt scheme, GALLAGHER concealed the cash bribe payments he received from Zonzini. GALLAGHER did so, as he admitted during a secretly recorded conversation, by keeping the payments “in my car or in my trunk.” In some instances he used the cash to make payments directly toward living expenses, without depositing it in his bank account. For example, during the corrupt scheme, GALLAGHER used the bribe money to make credit card payments, car payments, and, as he admitted during the secretly recorded conversation, “I paid for some college.”
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GALLAGHER, 53, of Harrisburg, Pennsylvania, pled guilty to one count of bribery, in violation of Title 18, United States Code, Section 666(a)(1)(B), which carries a maximum sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
GALLAGHER’s sentencing is scheduled for January 9, 2018, at 2:00 p.m., before Judge Karas.
Zonzini is scheduled to be sentenced on February 16, 2018, at 10:30 a.m., before Judge Nelson S. Román.
Mr. Kim praised the outstanding investigative efforts of the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation, and the Office’s criminal investigators. He also thanked the U.S. Department of Education’s Office of Inspector General for its assistance.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kathryn Martin and Benjamin Allee are in charge of the prosecution.
GALLAGHER’s sentencing is scheduled for January 9, 2018, at 2:00 p.m., before Judge Karas.
Zonzini is scheduled to be sentenced on February 16, 2018, at 10:30 a.m., before Judge Nelson S. Román.
Mr. Kim praised the outstanding investigative efforts of the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation, and the Office’s criminal investigators. He also thanked the U.S. Department of Education’s Office of Inspector General for its assistance.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kathryn Martin and Benjamin Allee are in charge of the prosecution.
Former Military Contractor Found Guilty of Fraud ChargesRead the Press Release
Danville, VIRGINIA – The former owner and chief executive officer of an armored vehicle company with offices in Danville and Canada, was found guilty yesterday evening in the United States District Court for the Western District of Virginia in Danville of all federal charges levied against him, Acting United States Attorney Rick A. Mountcastle announced.
William R. Whyte, 72, of Ontario, Canada, was found guilty yesterday following a two-week jury trial on three counts of major fraud against the United States, three counts of wire fraud and three counts of false claims.
“Today’s jury verdict was the result of the outstanding teamwork among the United States Attorney’s Office, the Department of Justice’s Fraud Section, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. It represents another step in the battle against fraud on the Department of Defense. The defendant put his personal financial interests ahead of the safety of our brave men and women in uniform who risked their lives serving in Iraq,” Acting United States Attorney Mountcastle said. “I commend the outstanding work of AUSA Carlton, Trial Attorney Cottingham, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation.”
“The Defense Criminal Investigative Service remains vigilant to detect and disrupt the contamination of the military supply chain with defective parts and equipment. The fraud perpetrated in this matter could have resulted in the death or injury of American service members, impacting military operations in Iraq. Along with our investigative partners, DCIS continues to aggressively pursue those who place our warfighters at risk,” said Special Agent in Charge Robert E. Craig, Jr, DCIS Mid-Atlantic Field Office
“Stealing from taxpayers by defrauding the government is bad enough. Doing it in a way that imperils our warfighters and delivers to them equipment which is faulty or insufficient - that's a special kind of despicable,” Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division said today. “Whyte exposed our heroes and knew his Armet Armored Vehicles weren't up to the task of protecting them. I hope this case sends a message to those who contract with the government to provide essential equipment to our troops in support of their critical mission; the FBI will be on your trail if you betray them this way and steal from the taxpayers who fund them. I want to thank our partners at DCIS, the Department of Justice, and the United States Attorney's Office for the Western District of Virginia for today's outcome in this case.”
According to evidence presented at trial by AUSA Heather L. Carlton and Trial Attorney Caitlin Cottingham, Whyte was the owner and chief executive officer of Armet Armed Vehicles, Inc. Armet entered into a $4.8 million contract in April 2006 to provide the Department of Defense with 24 armored vehicles for use in Iraq. In June 2006, Armet entered into a second contract, valued at $1.6 million, to deliver an additional eight armored vehicles. These vehicles were to be used as security vehicles to Iraqi “Tier 1” dignitaries, who were part of the then-newly elected government to replace Saddam Hussein and who regularly traveled by motorcade through a “hostile and dangerous environment.”
Both contracts included specific requirements for the armoring of the vehicles, including that each vehicle be reinforced to a standard at which an armor-piercing bullet could not penetrate the passenger compartment and ceiling. In addition, the contracts required the undercarriage of each armored truck have mine plating protection that could withstand explosions underneath the vehicles. Finally, the contracts required the armored vehicles to have run-flat tires, so they could continue to operate should their tires be shot out or otherwise damaged.
Despite the requirement in the contract that the first 24 armored gun trucks be delivered by July 31, 2006, Whyte and Armet failed to ship a single vehicle by that deadline. Armet ultimately supplied six armored vehicles after the contract deadline and was paid $ 2,019,454, including an approximately $824,000 progress payment requested by Whyte. The prosecutors also presented evidence that Whyte intentionally misrepresented other issues to United States military officers about the contracts and vehicles.
None of the armored trucks delivered by Armet and Whyte met the ballistic and blast protection requirements of the contracts, despite the defendant’s claims that the vehicles met the standards. Whyte knew that each of the six armored trucks failed to meet the required standards and that they were intentionally under armored.
The investigation of the case was conducted by the Defense Criminal Investigative Service, the Special Inspector General for Iraq Reconstruction, the Department of Justice’s Fraud Section, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Heather L. Carlton and Department of Justice Fraud Section Trial Attorney Caitlin Cottingham.
Former McKeesport Resident Charged with Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH – One former Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
The three-count indictment named Deondre Lee Purter, age 23, formerly of McKeesport, PA as the sole defendant.
According to the indictment, on September 15, 2017, Purter possessed with intent to distribute quantities of fentanyl, carfentanil, and cocaine base. Also on September 15, 2017, Purter, a convicted felon, was in possession of firearms in furtherance of a drug trafficking crime. As a convicted felon, Purter is prohibited by federal law from possessing a firearm.
The law provides for a mandatory minimum sentence of not less than five years in prison to a maximum of life, and a fine of up to $1,500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses, and the criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Agency conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Fresno County Administrator Pleads Guilty to Stealing Health Care FundsRead the Press Release
FRESNO, Calif. — Christina Hernandez, 39, of Las Vegas, Nevada, pleaded guilty today to embezzlement from a health care benefits program, United States Attorney Phillip A. Talbert announced.
According to the plea agreement, Hernandez was a provider relations specialist at the Fresno County Department of Behavioral Health, which was responsible for administering mental health service benefits for Fresno County’s Medi-Cal beneficiaries. As a provider relations specialist, Hernandez was responsible for reviewing and approving claim forms from private mental health care providers who provide services to Medi-Cal beneficiaries in Fresno County. To steal funds from Fresno County, Hernandez submitted claim forms for medical services that were never provided. She then took the payment checks for those fake services and cashed the checks at check-cashing stores in Fresno for her personal benefit. In addition, Hernandez stole payment checks written to doctors for actual medical services provided. She also cashed those checks at convenience stores in Fresno for her personal benefit In total, Hernandez stole approximately $98,560 from the Fresno County Department of Behavioral Services.
This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno County Sheriff’s Office. Assistant United States Attorney Grant B. Rabenn is prosecuting the case.
Hernandez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 8, 2018. Hernandez faces a maximum statutory penalty of ten years in prison and a $250,000 fine. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Employee of Transcontinental Railroad Company Found Guilty of Damaging Ex-Employer’s Computer NetworkRead the Press Release
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Gregory G. Brooker of the District of Minnesota announced the conviction of a former employee of Canadian Pacific Railway for causing intentional damage to Canadian Pacific’s computer network.
Christopher Victor Grupe, 46, of Minneapolis, Minnesota, was charged on April 11, with one count of intentional damage to a protected computer and on Oct. 6, following a five-day trial, was found guilty by a federal jury in Minneapolis, Minnesota. A sentencing date has not been set.
As proven at trial, from September 2013 until December 2015, Grupe was employed as an IT professional by Canadian Pacific Railway (CPR), a transcontinental railroad company headquartered in Alberta, Canada, with U.S. headquarters in Minneapolis, Minnesota. On Dec. 15, 2015, following a 12-day suspension, Grupe was notified by CPR management that he was going to be fired due to insubordination. However, at his request, Grupe was instead allowed to resign, effective that same day. In his resignation letter, Grupe indicated that he would return all company property, including his laptop, remote access device, and access badges, to the CPR office.
As proven at trial, on Dec. 17, 2015, before returning his laptop and remote access device, Grupe used both to gain access to the CPR network’s core “switches” – high-powered computers through which critical data in the CPR network flowed. Once inside, Grupe strategically deleted files, removed administrative-level accounts, and changed passwords on the remaining administrative-level accounts, thereby locking CPR out of these network switches. Grupe then attempted to conceal his activity by wiping the laptop’s hard drive before returning it to CPR.
On Jan. 6, 2016, while trying to address a networking problem, the CPR network staff discovered that they were unable to access the main network switches. After CPR IT staff was able to regain access to the switches through a risky, but successful, rebooting procedure, they discovered evidence in logging data stored in the memory of the switches connecting the damage to Grupe. CPR hired an outside computer security company to identify the source and scope of the intrusion as well as conduct an incident analysis, which also connected the damage to Grupe. In total, CPR experienced a financial loss of approximately $30,000 as a result of Grupe’s conduct.
This case is the result of an investigation conducted by the FBI Minneapolis field office, with assistance from the Cybercrime Laboratory of the Criminal Division’s Computer Crime and Intellectual Property Section.
Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota are prosecuting the case.
Former Employee of Transcontinental Railroad Company Found Guilty of Damaging Ex-Employer’s Computer NetworkRead the Press Release
Acting United States Attorney Gregory G. Brooker of the District of Minnesota and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division today announced the conviction of a former employee of Canadian Pacific Railway for causing intentional damage to Canadian Pacific’s computer network. CHRISTOPHER VICTOR GRUPE, 46, was charged on April 11, 2017, with one count of intentional damage to a protected computer and on October 6, 2017, following a five-day trial, was found guilty by a federal jury in Minneapolis, Minn. A sentencing date has not been set.
“IT professionals with both substantial technical skills and trusted high-level access to the computer systems on which they work can cause significant and potentially catastrophic damage to businesses and critical infrastructure, and so when they use their skills and access to commit crimes there should be real consequences,” said Assistant U.S. Attorney Tim Rank. “This guilty verdict, which was the result of a thorough investigation by the FBI, demonstrates that there will be. I am grateful to the jury for their time and service.”
As proven at trial, from September 2013 until December 2015, GRUPE was employed as an IT professional by Canadian Pacific Railway (CPR), a transcontinental railroad company headquartered in Alberta, Canada, with US headquarters in Minneapolis, Minnesota. On December 15, 2015, following a twelve-day suspension, GRUPE was notified by CPR management that he was going to be fired due to insubordination. However, at his request, GRUPE was instead allowed to resign, effective that same day. In his resignation letter, GRUPE indicated that he would return all company property, including his laptop, remote access device, and access badges, to the CPR office.
However, on December 17, 2015, before returning his laptop and remote access device, GRUPE used both to gain access to the CPR computer network’s core “switches” – high-powered computers through which critical data in the CPR network flowed. Once inside, GRUPE strategically deleted files, removed administrative-level accounts, and changed passwords on the remaining administrative-level accounts, thereby locking CPR out of these network switches. GRUPE then attempted to conceal his activity by wiping the laptop’s hard drive before returning it to CPR.
On January 6, 2016, while trying to address a networking problem, the CPR network staff discovered that they were unable to access the main network switches. After CPR IT staff was able to regain access to the switches through a risky, but successful, rebooting procedure, they discovered evidence in logging data stored in the memory of the switches connecting the damage to GRUPE. CPR hired an outside computer security company to identify the source and scope of the intrusion as well as conduct an incident analysis, which also connected the damage to GRUPE. In total, CPR experienced a financial loss of approximately $30,000 as a result of GRUPE’S conduct.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, with assistance from the Digital Forensic Laboratory of the Criminal Division’s Computer Crime and Intellectual Property Section.
Assistant United States Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Defendant Information:
CHRISTOPHER VICTOR GRUPE, 46
Minneapolis, Minn.
Convicted:
- Intentional damage to a protected computer, 1 count
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- Intentional damage to a protected computer, 1 count
Former Cannonball Tribal Councilman Sentenced on Aggravated Sexual Abuse and Incest ChargesRead the Press Release
BISMARCK – Christopher C. Myers announces that on October 6, 2017, former Cannonball Tribal Councilman ROBERT FOOL BEAR, age 55, was sentenced before Chief Judge Daniel L. Hovland on three Counts of Aggravated Sexual Abuse of a Child and one Count of Incest. Fool Bear was sentenced to serve 30 years imprisonment, to be followed by 10 years of supervised release, and was further ordered to pay a total of $400 to the Crime Victims’ Fund.
This case came to the attention of law enforcement after the victim reported to law enforcement that Fool Bear had been sexually abusing her for approximately seven years, including on one occasion kicking her in the ribs. The investigation was conducted by agents from the FBI, as well as the Bureau of Indian Affairs.This case was prosecuted by Assistant United States Attorney Gary Delorme.
Florida Resident Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
A Lauderhill, Florida, man pleaded guilty today to aggravated identity theft and conspiring to use stolen IDs to file fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
According to documents filed with the court, from approximately 2008 through January 2015, in Broward and Miami-Dade Counties, Evens Julien and others, used stolen IDs, including the personal identifying information of prisoners and deceased individuals, to file over 2,000 tax returns with the Internal Revenue Service (IRS). These fraudulent returns sought more than $2 million in refunds. Julien and his co-conspirators recruited others to obtain Electronic Filing Identification Numbers (EFIN) from the IRS in their names and used the EFINs to file the fraudulent returns. They directed the refunds to debit cards and treasury checks and had them mailed to South Florida addresses. They then cashed the fraudulently obtained refund checks at check cashing stores and used Western Union and ATMs to withdraw the funds.
Sentencing is scheduled for Dec. 27 before U.S. District Court Judge Federico A. Moreno. Julien faces a statutory maximum sentence of five years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Resident Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
A Lauderhill, Florida, man pleaded guilty today to aggravated identity theft and conspiring to use stolen IDs to file fraudulent tax returns, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from approximately 2008 through January 2015, in Broward and Miami-Dade Counties, Evens Julien and others, used stolen IDs, including the personal identifying information of prisoners and deceased individuals, to file over 2,000 tax returns with the Internal Revenue Service (IRS). These fraudulent returns sought more than $2 million in refunds. Julien and his co-conspirators recruited others to obtain Electronic Filing Identification Numbers (EFIN) from the IRS in their names and used the EFINs to file the fraudulent returns. They directed the refunds to debit cards and treasury checks and had them mailed to South Florida addresses. They then cashed the fraudulently obtained refund checks at check cashing stores and used Western Union and ATMs to withdraw the funds.
Sentencing is scheduled for Dec. 27 before U.S. District Court Judge Federico A. Moreno. Julien faces a statutory maximum sentence of five years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge. He also faces a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Jury Convicts Lawyer on Charges of Defrauding an Elderly Couple and a Bank to Prevent Foreclosure on Aurora PropertyRead the Press Release
CHICAGO — A lawyer licensed to practice in Illinois has been convicted on federal fraud charges for scheming to provide falsified documents to prevent foreclosure on a nearly $2 million parcel of land in Aurora. The fraud left an elderly couple out of $300,000.
The jury in federal court in Chicago convicted ROBERT JON SCHLYER, 47, of Portage, Ind., of two counts of wire fraud affecting a financial institution, and one count of bank fraud.
Schlyer’s fraud scheme occurred while representing two clients, co-schemers KEVIN LEBEAU and BRIAN BODIE, in connection with a foreclosure lawsuit. Evidence at trial revealed that Schlyer provided false and fraudulent documents to an elderly couple and Amcore Bank in order to postpone foreclosure on the Aurora property.
The jury returned the guilty verdicts on Oct. 6, 2017, after a four-day trial. U.S. District Judge Amy J. St. Eve set sentencing for Jan. 31, 2018, at 9:15 a.m. Each count carries a maximum sentence of 30 years in prison.
The conviction was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and John P. Selleck, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
According to evidence at trial, in 2004 Amcore Bank received a mortgage on the 10.4-acre property in Aurora after issuing a $1.9 million loan for the refinancing and redevelopment of the property. Lebeau and Bodie executed a full personal guarantee for the loan. By the fall of 2005, Lebeau and Bodie had failed to make the required payments, the loan was in default, and the bank filed a foreclosure lawsuit to seize the property.
During the scheme, Schlyer, who acted as Lebeau’s and Bodie’s attorney in the foreclosure suit, obtained $300,000 from an elderly retired couple by providing them with fake documents that made it seem like they were making a safe investment in the redevelopment and that it would be secured by a trust. Schlyer also claimed to be the trustee of the purported trust. In reality, there was no trust and Schlyer was not a trustee. Schlyer and his co-schemers also concealed from the elderly couple the foreclosure suit and LeBeau’s and Bodie’s inability to pay the bank debt. A portion of funds obtained from the elderly couple through the fraud was used to pay down the bank loan.
Together with his co-schemers, Schlyer furnished fraudulent and fabricated documents to the bank, including forged documents that made it appear that investors had committed approximately $1.5 million to the redevelopment of the property. Eventually the foreclosure occurred, and the property was sold in 2010 at a significant loss to the bank.
LeBeau, of Aurora, and Bodie, of Chicago, were previously convicted in the case and are awaiting sentencing before U.S. District Judge Robert W. Gettleman.
The government is represented by Assistant U.S. Attorneys Kartik K. Raman and Amarjeet S. Bhachu.
Earlton Man Sentenced to Time Served on Firearm ChargeRead the Press Release
ALBANY, NEW YORK – Robert Twiss, 59, of Earlton, New York, was sentenced today to time served (approximately five months) for possessing a firearm as a felon.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his March 20, 2017 guilty plea, Twiss admitted that on October 24, 2016, he possessed a Plainfield M-1, Model 41 semi-automatic rifle on his residential property in Earlton.
Senior United States District Judge Thomas J. McAvoy also imposed a three-year term of supervised release.
This case was investigated by the FBI’s Joint Terrorism Task Force (JTTF) and prosecuted by Assistant U.S. Attorney Richard Belliss.
Detroit man sentenced to 10 years in federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced to 10 years in federal prison today for a drug crime, announced United States Attorney Carol Casto. James Otis Daniels, 43, previously pleaded guilty to possession with intent to distribute heroin.
On March 10, 2016, the Huntington FBI Drug Task Force conducted a search at 1830 10th Avenue in Huntington, where Daniels was living with his codefendant, Thomas Nelson. During the search, agents seized a total of over 80 grams of heroin, including over 75 grams located inside a safe in Daniels’ bedroom, along with four digital scales. Agents also seized over $7,300 in cash, over $3,700 of which was located inside the safe in the bedroom. Agents additionally seized a .45 caliber Taurus pistol from Daniels’ bedroom that had previously been reported stolen from a firearms dealer in Barboursville.
Nelson previously pled guilty to a federal gun crime, and was sentenced to five years in federal prison.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney R. Gregory McVey is in charge of the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Decatur CountyMan Sentenced to 17 Years ImprisonmentRead the Press Release
Jackson, TN – A local man has been sentenced to 17 years’ imprisonment for conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, the FBI and other federal, state and local agencies conducted a year-long investigation into Franklin Shane Rushing, 46 of Decaturville, TN, and other co-conspirators who were distributing actual methamphetamine (methamphetamine with 80% or higher purity) in the Western District of Tennessee. The FBI received information that Rushing was a major distributor of ICE in Decatur County, Tennessee.
On December 9, 2015, a source purchased one ounce of meth from Rushing for $1,100. The DEA lab confirmed the drug amount to be 29.8 grams of 98.7% pure meth. Later that same day, Rushing sold another 28.2 grams of 99.6% pure meth. In February 2016, Rushing purchased one pound of ICE for $13,000 from his supplier. Law enforcement recovered another 4.5 ounces of ICE sold by Rushing. In March 2016, a traffic stop was conducted before Rushing could meet with his supplier to make arrangements for more narcotics. Seized from Rushing at that time was $9,086, as well as a loaded .40 caliber pistol in a holster. Law enforcement conducted a search warrant on Rushing’s home the same day as the traffic stop. 48 additional firearms were confiscated, along with digital scales, baggies, a small amount of meth and a drug notebook. During a 4-month period, 2.5 kilos of ICE was attributed to Rushing through this investigation.
On October 5, 2017, U.S. District Judge J. Daniel Breen sentenced Rushing to 144 months’ imprisonment for the drug conspiracy. He will serve 60 months consecutively on the firearms offense and 5 years supervised release following his incarceration.
The case was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Tennessee Bureau of Investigation; 24th Judicial Drug Task Force; Decatur County Sheriff’s Department; Henderson County Sheriff’s Department; Lexington Police Department and as part of the FBI Safe Streets Task Force; Dyersburg Police Department and Jackson Police Department.
Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.
Construction Company Owners Sentenced to Federal Prison for Paying over $1 Million in Bribes for City of Atlanta ContractsRead the Press Release
ATLANTA - Elvin R. Mitchell, Jr. and Charles P. Richards, Jr. have been sentenced to federal prison for conspiring to pay over $1 million in bribe payments in exchange for receiving lucrative contracts with the City of Atlanta.
“The citizens of Atlanta rightfully expect that government contracts will go to the most qualified bidder and trust that the contracting process will be transparent and fair,” said U. S. Attorney Byung J. “BJay” Pak. “When contractors like Mitchell and Richards pay bribes to get public work, the public’s confidence in the process is undermined and the price of that corruption is borne by the taxpayers.”
“Today’s sentencing hearings in federal court are a direct result of a thorough public corruption investigation consisting of many long hours of work by both federal investigators and their prosecutors,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “While it is important that both E.R Mitchell and C.P. Richards, Jr. are held accountable for their criminal conduct, the FBI feels that it is also important for others, either public officials or those attempting to illegally influence them, to take note of the harsh consequences of such actions.”
“IRS Criminal Investigation is committed to investigating individuals who think that they can get a competitive advantage by cheating the system by paying bribes to get government contracts,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “Today’s sentencings should act as a deterrence to those who think that they can continue to pay bribes in order to get work.”
According to United States Attorney Pak, the charges, and other information presented in court: Elvin R. Mitchell, Jr. serves as the owner and operator of E.R. Mitchell Company, Cascade Building System, LLC., E.R. Mitchell Group, Inc. and EC & WT Construction Company, Inc., d/b/a E.R. Mitchell Construction Co. Richards serves as the owner and/or principal of the construction companies C.P. Richards Construction Co., Inc., and C.P. Richards & Associates, Inc.
In an effort to obtain construction-related contracts with the City of Atlanta, Georgia, Mitchell and Richards conspired to pay and paid an individual to obtain government contracts. From approximately 2010 to August 2015, Mitchell paid over $1,000,000 and Richards paid over $185,000 to an individual in exchange for City of Atlanta contracts, believing that some of the money would be paid to city officials who exercised influence over the contracting process.
Mitchell also laundered the money received from the City of Atlanta by attempting to conceal the source of the money and by attempting to evade federal currency transaction reporting requirements by withdrawing cash in amounts under $10,000.
Mitchell, 63, of Atlanta, has been sentenced to 5 years in prison, 3 years of supervised release, and was ordered to pay $1,120,535 in restitution. On January 25, 2017, Mitchell pleaded guilty to conspiratorial bribery and money laundering.
Richards, 65, of Tucker, Ga., has been sentenced to 2 years and 3 months in prison, 3 years of supervised release, and was ordered to pay $193,000 in restitution. On February 16, 2017, Richards pleaded guilty to conspiratorial bribery
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated this case.
First Assistant United States Attorney Kurt R. Erskine and Assistant United States Attorney Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cody Hiland Takes Office as United States Attorney for the Eastern District of ArkansasRead the Press Release
LITTLE ROCK—Cody Hiland has taken the oath of office to become the United States Attorney for the Eastern District of Arkansas. Mr. Hiland was nominated by President Donald Trump on June 29, 2017, and confirmed by the U.S. Senate on September 28, 2017. He took the oath of office today at 1:30 p.m. from United States District Court Judge J. Leon Holmes, and began work immediately after the ceremony.
"It is both an honor and a privilege to be chosen to serve as the United States Attorney, and I am eager to begin leading the important work of this office," Mr. Hiland said. "I also look forward to working with the dedicated public servants in our office, our exceptional law enforcement partners on the federal, state, and local levels, and the community. At a time when we are seeing the national crime rate continue to rise, myself and everyone in this office is committed to ensuring safer communities for the citizens of the Eastern District."
As U.S. Attorney, Mr. Hiland is the top-ranking federal law enforcement official in the Eastern District of Arkansas, which includes five divisions and 41 counties within Arkansas, with its primary office in Little Rock. He oversees a staff of 59 employees, including 28 attorneys and 31 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Mr. Hiland, 45, a Conway native, has lived in Arkansas his entire life. He received his J.D. from the William H. Bowen School of Law in Little Rock and his undergraduate degree from the University of Central Arkansas. Prior to assuming his current role, Mr. Hiland was elected prosecuting attorney for the 20th Judicial District of Arkansas in 2010, and re-elected in 2014.
Before beginning a career in law enforcement Mr. Hiland was a partner at Hiland, Thomas & Cox, PLLC; a staff attorney and rural and community liaison for the Arkansas Public Service Commission; the program director for the Arkansas Transitional Employment Board; and a legislative liaison and aide to Gov. Mike Huckabee.
Mr. Hiland will continue to live in Conway with his wife, Jana, and their four children, Claire, Caity, John Reagan, and Ethan.
Mr. Hiland succeeds Patrick C. Harris, who had served as acting U.S. Attorney since Christopher Thyer’s resignation on March 13, 2017.
Clayton Business Owner Pleads Guilty to Employment Tax FraudRead the Press Release
OAKLAND – Restaurant owner Akbar Dawood Arghandiwal pleaded guilty today in federal court to willful failure to account for and pay federal employment taxes announced United States Attorney Brian J. Stretch, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The plea was accepted by the Honorable Jeffery S. White, U.S. District Judge.
In pleading guilty, Arghandiwal, 46, of Clayton, Calif., admitted that from 2008 through 2012, he owned restaurants in Clayton, Lafayette, and Danville. Arghandiwal acknowledged that between January 2010 and December 2012, he knew he was required to withhold federal employment taxes from the wages of his employees, but instead paid those employees in cash and failed to pay employment taxes on those wages. He intentionally did not provide his accountant with complete and accurate information about the wages of his employees in order to conceal such wages and pay less in employment taxes. In total, Arghandiwal failed to pay $90,648 in employment taxes to the Internal Revenue Service. On September 13, 2017, Arghandiwal was charged by information with twelve counts of willful failure to account for and pay over employment taxes, in violation of 26 U.S.C. § 7202. Under the plea agreement, Arghandiwal pleaded guilty to a single count and the remaining counts will be dismissed.
Arghandiwal is currently free on bond. Judge White has scheduled Arghandiwal’s sentencing for January 16, 2018. The maximum statutory penalty for a violation of 26 U.S.C. § 7202 is five years in prison and a fine of $250,000. Additional periods of supervised release, fines, and restitution also may be imposed, however, any sentence will 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.
Assistant U.S. Attorney Jose A. Olivera is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Child Pornographer Sentenced to More Than 10 Years ImprisonmentRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that U.S. District Court Judge John W. DeGravelles sentenced Justin Landry, age 36, of Central, Louisiana, to 128 months in federal prison as a result of his conviction for distribution of child pornography. The Court further sentenced Landry to ten years of supervised release following his term of imprisonment.
On March 30, 2017, Landry pled guilty to distributing and possessing child pornography. As part of his sentence, the Court also ordered Landry to pay restitution to a child portrayed in the child pornography.
Acting United States Attorney Corey Amundson stated, “Protecting our children is one of society’s most important responsibilities. Stopping the distribution of child pornography goes directly toward fulfilling that responsibility. Distributing child pornography proliferates images often depicting horrific child sexual abuse and rape, thus feeding the market and re-victimizing those children who suffered through the abuse. If basic human decency will not deter this conduct, we hope that severe prison sentences will.”
Raymond R. Parmer, Jr., Special Agent in Charge of the New Orleans Field Office of Immigration and Customs Enforcement, stated, “Stopping the distribution of images of the sexual exploitation of children is an important role HSI has in protecting the victims. The coordination with our law enforcement partners remains a priority to bring those that prey on our children to justice.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Attorney General’s Office – Cyber Crime Unit, and the Ascension Parish Sheriff’s Office.
This matter is being prosecuted by Assistant U.S. Attorney Ryan R. Crosswell.
Chief Executive Officer of Armored Vehicle Company Convicted of Defrauding the United StatesRead the Press Release
A federal jury convicted the owner and chief executive officer of an armored vehicle company for his role in a scheme to provide the U.S. Department of Defense with armored gun trucks that did not meet ballistic and blast protection requirements set out in the company’s contracts with the United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Rick A. Mountcastle of the Western District of Virginia; Special Agent in Charge Adam S. Lee of the FBI’s Richmond, Virginia Field Office and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement.
William Whyte, 72, of King City, Ontario, the owner and CEO of Armet Armored Vehicles of Danville, Virginia, was found guilty after a two-week trial of three counts of major fraud against the United States, three counts of wire fraud and three counts of criminal false claims. Whyte was charged by an indictment in July 2012. Following the verdict, Senior U.S. District Judge Jackson L. Kiser of the Western District of Virginia, who presided over the trial, remanded Whyte into custody pending a full bond hearing. A sentencing date has not yet been scheduled.
Evidence at trial demonstrated that Whyte executed a scheme to defraud the United States by providing armored gun trucks that were deliberately underarmored. According to the trial evidence, Armet contracted to provide armored gun trucks for use by the United States and its allies as part of the efforts to rebuild Iraq in 2005. Despite providing armored gun trucks that did not meet contractual specifications, Whyte and his employees represented that the armored gun trucks were adequately armored in accordance with the contract, the evidence showed. Armet was paid over $2 million over the course of the scheme, including an $824,000 advance payment that the United States made after Whyte personally promised the United States that he would use the money in furtherance of the contract, the evidence showed.
The case was investigated by DCIS and the FBI. The case is being prosecuted by Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Heather Carlton of the Western District of Virginia.
Charleston man pleads guilty to receiving child pornographyRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a child pornography crime, announced United States Attorney Carol Casto. Jeffrey Scott Beard, 37, entered his guilty plea to receiving child pornography.
Beard admitted that on October 23, 2016, he received images of prepubescent minors engaged in sex acts. The images were received on Beard’s computer and thumb drives located at his residence in Charleston. The investigation revealed that Beard was using a peer-to-peer file sharing program to download, receive, and distribute images and videos of child pornography. Beard further admitted to possessing over 600 images and videos of minors engaged in sex acts.
Beard faces at least five and up to 20 years in federal prison when he is sentenced on January 11, 2018. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.
The FBI, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Burnham Man Pleads Guilty to Child Pornography ChargeRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that David L. Cook, 60, of Burnham, Maine, pleaded guilty today in U.S. District Court to using the internet to access and view child pornography. Cook was indicted in May 2017.
Court records reveal that in August 2016, the Maine State Police Computer Crimes Unit (MCCU) received a report from Microsoft that a user had uploaded an image of child pornography. Federal and state officers obtained a physical address for that user, executed a warrant at that address, and seized the defendant’s computer. The MCCU’s forensic examination of the computer revealed 30 images of child pornography and that the defendant searched the internet for child pornography on dozens of occasions between March and August, 2016.
Cook faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the MCCU and by Immigration and Customs Enforcement’s Homeland Security Investigations.
Brothers Sentenced to Prison for Defrauding U.S. Department of DefenseRead the Press Release
PITTSBURGH – Thomas G. Buckner, 66, of Gibsonia, Pa., and his brother, John. P. Buckner of Lyndora, Pa., have been sentenced in federal court to 30 months incarceration and a $500,000 fine, and 24 months incarceration and a $300,000 fine, respectively, on charges of major fraud against the U.S. Department of Defense and income tax evasion violations, United States Attorney Soo C. Song announced today.
According to the information presented to the court, the Buckner brothers were 50/50 owners of Ibis Tek, LLC. Ibis Tek’s main office was located at 912 Pittsburgh Street, in Butler, Pennsylvania, and it had an office at Ibis Tek Victory Road facility, 220 South Noah Drive, in Saxonburg, Pennsylvania. Ibis Tek manufactured both military and commercial products but specialized in the development of transparent armor and accessory products for tactical and military combat vehicles. Ibis Tek itself was not charged with any violations.
TACOM, located in Warren, Michigan, was responsible for letting and overseeing contracts on behalf of the U.S. Department of Defense, including contracts concerning High Mobility Multipurpose Wheeled Vehicle (Humvees). Ibis Tek had a subcontract to produce Vehicle Emergency Escape Window (VEE Window) Kits for Humvees. The Buckners inflated Ibis Tek’s costs to manufacture the VEE Window kits by creating Alloy America, LLC, (Alloy) a company that was co-located at Ibis Tek that the Buckners controlled, by using Alloy to purchase the frames in China for $20 per frame, and by using false invoices from Alloy to make it appear that Ibis Tek paid $70 per frame. In addition, the Buckners sold scrap aluminum collected in the manufacturing process but failed to credit that money to TACOM. The losses to TACOM were $6,085,709.
The income tax evasion charges against the Buckner brothers arose from not reporting the cash from sales of scrap aluminum, and for taking unallowable business deductions described below. Thomas Buckner repaid the I.R.S. more than $940,000 in restitution, penalties and interest; John Buckner repaid more than $980,000 in restitution, penalties and interest.
The contract fraud violations described above formed the basis for False Claims Act charges against the Buckner brothers brought by the Affirmative Civil Enforcement (ACE) Unit of the U.S. Attorney’s Office. Attorneys on both sides agreed on a civil settlement of $12,171,580.00. On Friday, October 6, 2017, the Buckner brothers made the final payment to the Department of the Treasury on their civil settlement.
Acting U.S. Attorney Song said, “The imposition of years of imprisonment, coupled with more than $2.7 million in restitution and fines, justly resolves the multi-year investigation into the $6 million fraudulent scheme of these defendants against the United States.”
There were three related guilty pleas entered in this investigation and each of these defendants is awaiting sentencing.
Harry H. Kramer, 52, of Wexford, Pennsylvania, pleaded guilty to one count of fraud for his role as CFO of Ibis Tek in the above described scheme against TACOM. Counts Two and Three charged him with filing false returns for Ibis Tek for 2009 and 2010.
David S. Buckner, of Warren, Michigan, (no relation to Thomas or John Buckner) pleaded guilty to a one-count Information charging him with impeding the IRS by acting as a financial intermediary who received and then paid out money from Ibis Tek, LLC to Anthony Shaw, for the purpose of concealing that the monies were income of Shaw.
Anthony A. Shaw, 55, of Rochester Hills, Michigan, pleaded guilty to a five-count Information. Shaw, formerly a civilian employee at TACOM, was a Deputy Project Manager responsible for directing development of and managing government contracts for combat vehicle systems such as Humvees. Shaw was charged in Counts One and Two with demanding and receiving a total of $1,055,500 of illegal gratuities paid by checks, cash and wire transfers by Thomas Buckner to and through David Buckner’s company, D & B Cycle Parts and Accessories, for Shaw’s benefit. Counts Three and Four charged Shaw with income tax evasion for 2009 and 2010 for not reporting the illegal gratuities. In Count Five Shaw was charged with making false statements when he denied that he had socialized with Thomas Buckner and John Buckner, and denied that he had traveled in a car, boat and an airplane owned by Thomas Buckner or John Buckner.
These cases were investigated by the Special Agents of the Department of Defense, Defense Criminal Investigative Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Army Criminal Investigation Division.
"IRS-Criminal Investigation provides financial investigation expertise in our work with our law enforcement partners," said IRS Acting Special Agent in Charge Ed Wirth. "Pooling the skills of each agency makes a formidable team as we investigate allegations of wrong-doing. Today's sentences demonstrate our collective efforts to enforce the law and ensure public trust."
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the Special Agents of the Department of Defense, Defense Criminal Investigative Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Army Criminal Investigation Division for the investigation leading to the successful prosecution of these defendants.
Bronx Man Sentenced in Manhattan Federal Court to over 12 Years in Prison for Trafficking Approximately 40,000 Oxycodone Pills and CocaineRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MARIO HERRERA, a/k/a “Mo,” was sentenced today to 151 months in prison for conspiring to distribute cocaine and oxycodone. HERRERA pled guilty to one count of narcotics conspiracy on June 2, 2017, before U.S. Magistrate Judge Barbara C. Moses. U.S. District Judge Loretta A. Preska imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim said: “Mario Herrera led a massive drug trafficking organization that stole and forged prescriptions to illegally distribute an estimated 40,000 oxycodone pills. Herrera’s contribution to the ongoing opioid crisis has now earned him over 12 years in federal prison. We commend the hard work of the DEA and ATF on this important case.”
According to the Indictment and other documents filed in federal court, statements made at various proceedings in this case, and materials presented at the sentencing hearing:
From in or about late 2012 up to and including in or about December 2015, HERRERA was the leader of a drug trafficking organization (the “Herrera DTO”) that distributed large quantities of oxycodone and cocaine in the Bronx and elsewhere. As part of his plea, HERRERA admitted his involvement in the distribution of the equivalent of 40,000 oxycodone 30-milligram pills. In order to obtain the oxycodone that the Herrera DTO distributed, HERRERA, among other things, obtained stolen prescription pads, fabricated oxycodone prescriptions, and then pretended to be a doctor when called by pharmacies to verify the prescriptions. In addition, HERRERA purchased oxycodone from legitimate prescription holders and others in his community for redistribution. HERRERA also coordinated the procurement and distribution of cocaine. As part of this cocaine distribution, HERRERA traveled to Mexico, Texas, and elsewhere.
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In addition to the prison term, HERRERA, 32, of the Bronx, New York, was sentenced to seven years of supervised release.
Mr. Kim praised the outstanding investigative work of the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives in this investigation.
This prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Gina Castellano, Jordan Estes, and Jason A. Richman are in charge of the prosecution.
Andover Nanny Sentenced for Stealing More than $100,000Read the Press Release
BOSTON – An Andover woman was sentenced today in federal court in Boston for stealing more than $100,000 from her employer.
Stacy Fortunato, 36, was sentenced by U.S. Senior District Judge Mark L. Wolf to 15 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $112,806. In June 2017, Fortunato pleaded guilty to one count of bank fraud and one count of wire fraud.
While employed as a nanny from November 2014 to February 2016, Fortunato’s employer provided her with a credit card to make purchases solely related to her work duties. Instead, Fortunato made unauthorized charges and cash withdrawals using the credit card on hundreds of occasions, totaling approximately $86,000. To conceal what she had done, Fortunato made unauthorized electronic payments from her employer’s bank account to her employer’s credit card account. Fortunato also wrote checks for her own personal benefit on her employer’s bank account, forging her employer’s signature to the checks before cashing them. In total, Fortunato defrauded her employer of about $113,000.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.
ATF, U.S. Attorney's Office teams up with local law enforcement to take down crews breaking into gun storesRead the Press Release
DENVER – Two Denver men were arrested late September for the August 10, 2017 theft of firearms from the Cabela’s in Lone Tree, Colorado, Acting U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debora Livingston announced. A third man also charged with the Cabela’s theft is currently in state custody on unrelated charges. These arrests as well as many others are part of local law enforcement’s efforts, working with the ATF and the Colorado U.S. Attorney’s Office, to address multiple burglaries of gun stores throughout Colorado. To date, 10 individuals have been charged federally for theft of firearms from federal firearms licensees. Those cases are pending.
“These are not property crimes. These are life and death crimes. Stolen guns go straight into the hands of criminals, not hunters and target shooters,” said Acting U.S. Attorney Bob Troyer. “The people who bring this violence into our communities will be introduced to federal justice, up close and personal, for a long time.”
“Investigating these thefts is ATF’s top priority in Colorado,” said ATF Special Agent in Charge Debora Livingston. “We will be relentless. If someone is involved, we will find them. A potential ten-year prison sentence is a significant punishment for two minutes of crime.”
In 2017 alone, over 400 firearms have been stolen. Arrests for those thefts also have been made in connection with thefts from South Platte Tactical gun store in Adams County, Top Dollar Pawn Shop in El Paso County, Best Way Sales in Baca County, Shooter Ready in Jefferson County, Dragon Arms in El Paso County, and Parker Arms in Jefferson County. Those charged by indictment with thefts from those firearm licensees include:
Cabela’s
On August 10, 2017, Darnell Hudgens, age 2,3 of Denver, Colorado, Giavanni Edward Miles, age 21, residence unknown, and Kendall Crockett, age 23, of Denver, Colorado, with others, conspired to steal firearms from Cabela’s in Douglas County, City of Lone Tree. On August 21, 2017, those same defendants stole firearms from the Cabela’s in Thornton, Colorado. The defendants are charged by indictment with possessing stolen firearms, conspiracy to steal firearms from a federal firearm licensee, and disposal of the weapons.
South Platte Tactical
On January 8, 2017, Gaven Alfonso Orozco, age 20, of Adams County, Colorado, and Jordan Martinez, age 19, of Denver, Colorado, conspired to and stole firearms from the South Platte Tactical gun store in Adams County. The defendants broke into the store and removed the firearms. Those involved in the theft stole a vehicle, drove to the gun store location, stole the firearms, and fled. The indictment states that on January 13, 2017, Orozco possessed, concealed, stored and disposed of stolen firearms. The firearms were then distributed amongst members of the conspiracy. The defendants face charges including possession of stolen firearms, conspiracy to steal firearms, theft of firearms from a federal firearms licensee.
Top Dollar Pawn
On July 10, 2017, Adam Paul Mowery, age 41, of Colorado Springs, Colorado, stole firearms from Top Dollar Pawn Shop in El Paso County. He then possessed, concealed, stored and disposed of the stolen firearms. On July 25, 2017, Cole Truitt Anderson, age 26, of Florissant, Colorado, possessed, concealed, stored and disposed of stolen firearms. Anderson also possessed a stolen sawed-off shotgun. Both defendants face charges of possession of stolen firearms, possession of firearms by a prohibited person, possession of unregistered firearms.
Dragon Arms
On August 27, 2017, Jennifer Scoggin, Camron Specht, Ryan Sharpe, and Gian Carlos Vance, allegedly stole firearms from Dragon Arms in El Paso County, Colorado, where defendants stole multiple handguns, shotguns, and rifles. The defendants face theft of firearms from a federal firearms licensee.
Best Way Sales
On August 10, 2017, Calvin Terrell Stafford, age 23, of Warrensburg, Missouri, and Napoleon Williams, age 23, of St. Louis, Missouri, conspired to steal firearms from Best Way Sales, located in Baca County, in the city of Springfield, Colorado. They traveled from Missouri to Colorado, identified and cased Best Way Sales, and on August 11, 2017, broke into the store and stole firearms. They then drove the stolen firearms back to Missouri. The defendants face charges of conspiracy, theft of firearms from an federal firearms licensee, and possession of stolen firearms.
Shooter Ready
On November 10, 2016, Viet Trinh, age 18 of Thornton, Colorado, possessed, concealed, stored and disposed of stolen firearms. Trinh conspired with others to steal firearms from Shooter Ready gun store in Denver. After the weapons were stolen, they were distributed to members of the conspiracy. Trinh was the get-away-driver for the Shooter Ready burglary. On December 17, 2016, Trinh conspired with others to steal firearms from Parker Arms in Jefferson County, City of Wheat Ridge. He again was the get-away-driver. He faces possession of stolen firearms, conspiracy, and theft of firearms from a federal firearms licensee.
Aurora Police Department, Brighton Police Department, Castle Rock Police Department, Colorado Bureau of Investigation, Colorado Metro Auto Theft Task Force, Denver Police Department, Douglas County Sheriff’s Office, Edgewater Police Department, Jefferson County Sheriff’s Office, Lakewood Police Department, Littleton Police Department, Lone Tree Police Department, Parker Police Department, Thornton Police Department, Westminster Police Department, Wheat Ridge Police Department, Colorado Springs Police Department, El Paso County Sheriff’s Office, Springfield Police Department, and Baca County Sheriff’s Office have all assisted with gun store investigations.
The defendants are being prosecuted either by Assistant U.S. Attorney Colleen Covell and U.S. Attorney Timothy Edmonds.
The penalties for conviction for these crimes range from not more than 5 years in federal prison to not more than 10 years in federal prison per count. Defendants also face not more than a $250,000 fine.
In addition to those listed above, a number of individuals have been arrested and are being prosecuted by state authorities.
The charges contained in the indictments mentioned above are allegations, and the defendants are presumed innocent unless and until proven guilty.
8 October 2017
Attorney General Sessions Statement on President Trump's Immigration Priorities AnnouncementRead the Press Release
Attorney General Jeff Sessions today issued the following statement on restoring the rule of law to a lawful immigration system:
“For decades the American people rightly have pleaded with their government for a lawful system of immigration. They have asked for secure borders and an immigration system that serves the national interest.
“Unfortunately, over the last several decades respect for the rule of law has broken down and immigration enforcement has been sacrificed for the sake of political expediency. This has made us less secure and it cannot stand.
“Now President Trump has put forth a series of proposals that will restore the rule of law to our immigration system, prioritize America's safety and security, and end the lawlessness.
"These are reasonable proposals that will build on the early success of President Trump's leadership. This plan will work. If followed it will produce an immigration system with integrity and one in which we can take pride. Perhaps the best result will be that unlawful attempts to enter will continue their dramatic decline.
“I applaud President Trump and urge Congress to listen to the American people and swiftly pass these commonsense proposals into law. The Department of Justice stands ready to continue making our neighborhoods and communities safe and secure again.”
7 October 2017
Missouri Man Sentenced to 180 Months ImprisonmentRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that, Timothy Gilmore, age 37, of Doniphan, Missouri, was sentenced, before United States District Court Chief Judge Theresa Springmann after being convicted of using a computer to entice of a minor to engage in sexually explicit conduct.
Gilmore was sentenced to 180 months imprisonment and 5 years of supervised release.
According to documents filed in this case, between January 8, 2016 and April 18, 2016, Gilmore began communicating with a 16 year old juvenile from Fort Wayne, Indiana, over social media. The communications transitioned into telephone communications. During the course of the communications, Gilmore solicited and enticed the juvenile to engage in sexually explicit conduct and to produce videos and still images of said conduct and to transmit the videos and images to him via the internet. Gilmore then reposted the transmitted images on his on-line blog.
This case was the result of an investigation by the Federal Bureau of Investigation and the Fort Wayne Police Department and was handled by Assistant United States Attorney Stacey R. Speith.
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6 October 2017
Zia Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Terrence Shije, 37, an enrolled member and resident of Zia Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a domestic assault by a habitual offender charge.
Shije was arrested on June 2, 2017, on a criminal complaint charging him with domestic assault of an intimate partner by a habitual offender on May 16, 2017. According to the complaint, Shije caused the victim to suffer bruising and swelling to her face.
Shije was indicted on June 28, 2017, and was charged with assault of an intimate partner resulting in substantial bodily injury and domestic assault by a habitual offender. According to the indictment, Shije committed the crime on May 16, 2017, on Zia Pueblo in Sandoval County, N.M. Shije was charged as a habitual offender based on his two prior domestic violence convictions in the Pueblo of Zia Tribal Court in June 2015 and Aug. 2016.
During today’s proceedings, Shije pled guilty to Count 2 of the indictment charging him with domestic assault by a habitual offender. In entering the guilty plea, Shije admitted that on May 16, 2017, he assaulted the victim by slapping her face and punching her eye because he did not want her to leave the residence. Shije further admitted that as the result of the assault, the victim, who was then pregnant, suffered swelling, bumps and bruising near her eye and eye socket. Shije also admitted that he previously had been convicted on battery on a household member charges in Zia Tribal Court in June 2015 and Aug. 2016.
At sentencing, Shije faces a maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA, Office of Justice Services. The case is being prosecuted by Special Assistant U.S. Attorney Lucy B. Solimon pursuant to 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 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.
Winner Man Charged with Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Winner, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Anthony Ray Martinez, Jr., age 36, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 25, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 1, 2015, Martinez, having previously been convicted of a felony, did knowingly possess a firearm.
The charge is merely an accusation and Martinez is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.
Martinez was released on bond pending trial. A trial date has not been set.
Wilmington Man Sentenced to Incarceration for Role in Straw Purchasing HandgunsRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced that Aleem Shabazz, age 27, of Wilmington, Delaware, was sentenced this week by U.S. District Court Chief Judge Leonard P. Stark to 47 months incarceration. On February 4, 2016, after a four-day jury trial, Shabazz was found guilty of Being a Felon in Possession of a Firearm and two counts of Making False Statements to a Firearms Dealer.
According to evidence presented at trial and statements made in documents filed in court, in January of 2015, Shabazz, a five-time felon, induced his girlfriend to straw purchase two semi-automatic pistols for him. The firearms were straw purchased when the girlfriend represented to Cabela’s, a licensed firearms dealer, that she was the actual purchaser. In fact, she knew Shabazz was the actual purchaser. Shabazz directed his girlfriend which guns to purchase and gave her the money to pay for them. Police recovered one of the pistols, with an obliterated serial number.
Following the sentencing, Acting U.S. Attorney Weiss stated, “This sentence should serve as a deterrent for any felons who would attempt to obtain firearms by straw purchase, or otherwise. All parties to an illegal firearms transaction should be on notice that they will be prosecuted to the fullest extent of the law.”
Daniel L. Board, Jr., Special Agent in Charge of the Baltimore Office of the Bureau of Alcohol, Tobacco and Firearms said, “ATF will continue to work with our law enforcement and industry partners to stem the flow of firearms from legal commerce into the hands of convicted felons, violent criminal organizations or any person who has an intent to negatively impact the safety of our communities and neighborhoods."
This case was investigated by special agents of the ATF-Wilmington Office and prosecuted by Assistant U.S. Attorneys Whitney Cloud and Edmond Falgowski.
Wife of Former Representative Pleads guilty to Paying Kickbacks to Former Corrections CommissionerRead the Press Release
Jackson, Miss – Teresa Malone, 56, of Carthage, Mississippi, entered a plea of guilty to paying kickbacks to former Mississippi Department of Corrections Commissioner (MDOC) Christopher B. Epps in exchange for receiving a consulting agreement involving the MDOC and its operations, announced Acting United States Attorney Harold Brittain and FBI Special Agent in Charge Christopher Freeze.
During her guilty plea, Malone admitted to receiving $225,000.00 from a consulting agreement with an out of state contractor arranged by former MDOC Commissioner Chris Epps. Malone received $5,000.00 a month out of which she paid Epps varying amounts of $1,000.00 to $1,750.00 per month. The scheme lasted from October of 2010 through July of 2014.
Malone will be sentenced on January 10, 2018, by United States District Judge Henry T. Wingate. She faces a maximum penalty of 10 years in prison and a $250,000.00 fine.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Criminal Chief Darren LaMarca, Assistant United States Attorney Patrick A. Lemon, and financial analyst Kim Mitchell.
Virginia Man Pleads Guilty to 2009 Murder of Pamela Butler in Northwest WashingtonRead the Press Release
WASHINGTON – Jose Rodriguez-Cruz, 52, of Arlington, Va., pled guilty today to a charge of second-degree murder for the 2009 strangulation murder of his girlfriend, Pamela Butler, at her home in Northwest Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Rodriguez-Cruz has been in custody since his arrest on April 8, 2017. His guilty plea, which was contingent upon the Court’s approval, called for an agreed-upon 12-year prison sentence, to be followed by five years of supervised release. The guilty plea also requires Rodriguez-Cruz to provide law enforcement with the location of Ms. Butler’s body, which was never found. The Honorable Hiram E. Puig-Lugo accepted the plea today and sentenced the defendant accordingly.
If Rodriguez-Cruz refuses to assist law enforcement in locating Ms. Butler’s body, or if he misleads police or otherwise does not make his best efforts to provide the location, the plea agreement is to be declared null and void, and he will face the original charge in the case of first-degree premeditated murder.
According to a proffer of facts submitted at the plea hearing, Rodriguez-Cruz and Ms. Butler, 47, were involved in a romantic relationship. On Feb. 13, 2009, at approximately 8:20 p.m., Rodriguez-Cruz entered Ms. Butler’s home in the 5800 block of Fourth Street NW. He turned off her home security alarm system. A few hours after entering the house, while in the basement area, he and Ms. Butler had an argument concerning the defendant’s job and financial status, which Ms. Butler believed he was not doing enough to improve or elevate.
During the argument, Rodriguez-Cruz punched Ms. Butler in the face with his fist. She then fell to the floor. At that point, as stated in the proffer, Rodriguez-Crus straddled Ms. Butler’s body and strangled her with his hands around her neck, until she died from asphyxia.
Later that night and early the following morning, Rodriguez-Cruz turned off the outside motion sensor lights of Ms. Butler’s home security system. He then carried Ms. Butler’s body to the first floor area and lowered her body out of a window, the proffer states. He then carried the body to his car, which was parked on nearby Oglethorpe Street NW. Next he removed several objects from Ms. Butler’s home. Then, he drove away and disposed of the body.
Over the next two days, according to the proffer, Rodriguez-Cruz came to Ms. Butler’s home and continued to take items out of the house. On Feb. 16, 2009, he disposed of Ms. Butler’s cellphone in an effort to avoid detection for this crime.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of the officers, detectives and other personnel who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Thomas A. Gillice, Paralegal Specialist Alesha Matthews-Yette, and Intelligence Analyst Zachary McMenamin. Finally, they commended the work of Assistant U.S. Attorneys Deborah Sines and Glenn Kirschner, who investigated and prosecuted the case.
U.S. Attorney’s Office Prosecuting County’s First Carfentanil, 4ANPP CasesRead the Press Release
SAN DIEGO – The U.S. Attorney’s office is prosecuting the first local case involving the seizure of carfentanil, the relatively new synthetic opioid that is 100 times stronger than Fentanyl and 10,000 times more potent than morphine.
The defendant, Sky Gornik, is accused of trafficking in carfentanil, fentanyl, ketamine and other drugs through the U.S. Mail over a period of several years.
During a search of Gornik’s house in Clairemont, federal agents and local police found a wide variety of drugs, including a small baggie containing 1.77 grams of carfentanil - which experts say equates to about 86,000 fatal doses.
Agents also seized gel tablets containing fentanyl and methamphetamine. Agents learned that Gornik ordered these fentanyl gel tablets (approximately 600 units per week over the past two years) over the dark web from a dealer in Oklahoma. The Oklahoma dealer purchased the fentanyl directly from China.
Federal agents seized $1.2 million in digital currency in that case.
The U.S. Attorney’s Office is also prosecuting its first case involving the fentanyl precursor chemical known as “4ANPP.” This is the primary ingredient for manufacturing fentanyl. The 4ANPP precursor was mailed from China directly to locations in San Ysidro. Traffickers typically take the product from the U.S. into Mexico, where fentanyl is manufactured. Once the traffickers manufacture the fentanyl with the 4ANPP, they attempt to smuggle the fentanyl back into the United States.
In the precursor case, a former Border Patrol agent, Cesar Daleo, was arrested and charged with drug crimes after he went to a post office box in San Ysidro to pick up a package containing 4ANPP. But unbeknownst to the defendant, authorities were on to him. Customs and Border Protection agents at Los Angeles International Airport had intercepted the original package, which originated in China and was bound for San Ysidro. Homeland Security Investigations agents then replaced the 4ANPP with a harmless substance and waited for someone to pick it up.
Daleo was arrested soon after he picked up the package. According to charging documents, Daleo had picked up packages at the same location 13 previous times in the last year.
One kilogram of precursor 4ANPP was seized that day, but that amount could make approximately 25 kilograms of fentanyl in the possession of Mexican Drug Trafficking Organizations’ production labs.
DEFENDANT Case Number 17cr2796
Sky Justin Gornik Age: 37 San Diego
SUMMARY OF CHARGES
Conspiracy to distribute fentanyl, in violation of 21 U.S.C. 841(a)(1), 846
Maximum Penalty: 20 years in custody; 3 years of supervised release; $250,000 fine; $100 special assessment
Possession with intent to distribute carfentanil, in violation of 21 U.S.C. 841(a)(1)
Maximum Penalty: 20 years in custody; 3 years of supervised release; $250,000 fine
Possession with intent to distribute ketamine, in violation of 21 U.S.C. 841(a)(1)
Maximum Penalty: 20 years in custody; 3 years of supervised release; $250,000 fine
DEFENDANT Case Number
Cesar Daleo Age: 47 San Diego
SUMMARY OF CHARGES
Conspiracy to possess listed chemical (4ANPP) knowing or having reasonable cause to believe that the listed chemical would be used to manufacture a controlled substance, fentanyl, in violation of 21 U.S.C. 841 (c) (2) and 846.
Maximum Penalty: 20 years in custody; 3 years of supervised release; $250,000 fine
Attempted possession of listed chemical (4ANPP) knowing or having reasonable cause to believe that the listed chemical would be used to manufacture a controlled substance, fentanyl, in violation of 21 U.S.C. 841 (c) (2) and 846;
Maximum Penalty: 20 years in custody; 3 years of supervised release; $250,000 fine
AGENCIES
Homeland Security Investigations
United States Postal Inspectors
San Diego Police Department
Drug Enforcement Administration
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Sentenced to 11 and 7 Years in Federal Prison for $4.6 Million Internet Romance FraudRead the Press Release
Oklahoma City, Oklahoma – KEN EJIMOFOR EZEAH, 35, and AKUNNA BAIYINA EJIOFOR, 33, have been sentenced to 11 and 7 years in federal prison respectively for their roles in a fraudulent romance scheme involving victims throughout the United States, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma.
On February 16, 2016, a grand jury indicted Ezeah and Ejiofor for conspiracy and wire fraud. According to the indictment, the scheme involved using false profiles to open accounts on online dating web sites and then courting victims by pretending to be successful financial advisors or affiliated with charitable causes. Over time, through supposedly romantic relationships, the defendants caused victims to share personal information about their finances and then encouraged victims to wire them money on the pretext of managing their investments. The conspirators actually kept the money for personal use. The two wire fraud counts concerned wire transfers from a victim in Oklahoma City that totaled more than $1 million. On June 22, 2016, a grand jury returned a superseding indictment that added one count of aggravated identity theft and 16 counts of wire fraud relating to additional victims.
Both Ezeah and Ejiofor were arrested in Houston, Texas, on January 27, 2016. Ezeah has been in federal custody since that time. He pled guilty to conspiracy on February 1, 2017. Ejiofor, who was released on bond after her arrest, exercised her right to a jury trial and was convicted on all counts on March 30, 2017. She has been in federal custody since her conviction.
Today United States District Court Judge Timothy D. DeGiusti sentenced Ezeah to 11 years in prison and three years of supervised release. Ezeah was also ordered to pay $4,678,302.79 in restitution to ten individual victims. At a separate sentencing on September 28, 2017, Ejiofor received 7 years in prison and three years of supervised release. She owes the same restitution to the same ten victims, jointly and severally with Ezeah. Reference is made to public filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Timothy W. Ogilvie.
Two Largo Ministers Plead Guilty to Illegal Reentry ChargesRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Anner Javier Maldonado-Reyes (39, Largo) and Maria Guadalupe Maldonado (38, Largo) have both pleaded guilty to illegal reentry into the United States. Each faces a maximum penalty of 20 years in federal prison. A sentencing date has not been set.
According to court records, Maldonado-Reyes and Maldonado have admitted to being citizens of Honduras, to illegally reentering the United States after prior deportations, and to having no legal status in the United States. Maldonado-Reyes was removed from the United States in February 1999 and in February 2008. His 1999 removal came after a conviction in Los Angeles County, California, for possession of cocaine base for sale.
Maria Guadalupe Maldonado was removed from the United States in October 1996, following a conviction in Los Angeles County for transportation/sale of a controlled substance.
Government records indicate that Anner and Maria Maldonado are the founders of, and employed as ministers in, the church Ministerio Internacional Jesucristo Es Mi Refugio, located at 1550 Belcher Road South in Largo.
This case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with assistance from U.S. Citizenship and Immigration Services. It is being prosecuted by Assistant United States Attorney Frank Murray.
Third Man Sentenced on Dunbar Armored Truck RobberyRead the Press Release
St. Louis, MO – Jerry Bean was sentenced to 96 months in prison for the armed robbery of a Dunbar Armored truck.
On April 4, 2016, Jerry Bean, Charles Johnson and Shayne Kier Jones robbed Dunbar Armored Company shortly after a money pickup. The money was taken from a Dunbar Armored employee at gun point. Jones was employed by Dunbar, and his duty was to exit the armored truck to do the pickup and delivery of US currency. A second employee (CT) was assigned as the driver. At the end of the day’s route, CT was told by Jones that he, Jones would drive the armored truck back to Dunbar. Jones then decided to stop for gas. After getting the gas, Jones acted like he was lost and stopped the truck at Antelope and Switzer in the City of St. Louis. He got out of the truck and two individuals with guns rushed him and demanded the money in the truck. As threats of violence were being made, Jones began to throw the money bags out the back door to Johnson and Jerry Bean. CT said that there was a white Buick vehicle right next to the armored car. CT and Jones then drove the truck from the scene of the armed robbery.
On April 14th, the owner of the white vehicle, Jerry Bean, which was used in the robbery was interviewed and finally admitted his involvement in the robbery. He told law enforcement that Johnson contacted him with the concept of the robbery. Johnson told Bean that he had a cousin who worked for the armored truck company and would help in the robbery. Bean’s role was to be the driver of the getaway car, the white car. Johnson provided the Dunbar shirts used in the robbery, skull caps and sunglasses. On April 4th, Bean and Johnson drove to the site they had picked out for the robbery. Jones drove the armored truck to that location, got out of the truck which allowed Bean and Johnson to approach and demand money. Bean did not know that Jones was the inside employee until he saw him outside the truck. Bean realized that he had seen Jones as a customer at Bean’s work. Johnson also worked at the same place. After the robbery, Bean and Johnson drove the white car loaded with the stolen money to Bean’s residence where the money was transferred to another car. They then drove to Bean’s mother’s house and divided the stolen money into three shares. As Jones was still being interviewed by law enforcement, Johnson took two shares of the stolen money for himself and Jones.
Bean, 26, of St. Louis, pleaded guilty on July 6, 2017, to one felony count of conspiracy to interfere with commerce by threats of violence and on one felony count of possession and brandishing a firearm in furtherance of a crime. He appeared today for sentencing before United States District Judge Catherine D. Perry.
Johnson and Jones were both sentenced in April 2017 to 141 months each.
This case was investigated by the St. Louis Metropolitan Police Department and Federal Bureau of Investigation.
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Texas Woman Pleads Guilty to Interstate Travel for the Purpose of Engaging in Illicit Sexual Conduct with 15-year-old Franklinton MinorRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MARTHA OJEDA, age 41, of Pflugerville, Texas, pled guilty as charged yesterday to a one-count Bill of Information charging her with interstate travel with intent to engage in illicit sexual conduct.
According to the court documents, in late February 2017, OJEDA met the minor, a fifteen-year-old boy who resided in Franklinton, Louisiana, on a social networking website. From late February until early April, OJEDA and the minor engaged in sexually explicit correspondence, including simulating sexual intercourse and other sexual contact and plans to engage in sexual acts in the future, on numerous occasions. During the correspondence, OJEDA requested and received sexually explicit images and videos of the minor via a social media-based instant messaging application. In early April, OJEDA and the minor made plans for OJEDA to travel to Louisiana to pick up the minor and return to Texas together for the purpose of engaging in sex and spending the rest of their lives together. On about April 8, 2017, OJEDA traveled by commercial bus and then by taxi from Texas to the minor’s Franklinton home. OJEDA and the minor then travelled back to New Orleans, where they stayed in a hotel room together and engaged in sexual intercourse. On about April 9, 2017, OJEDA and the minor travelled via commercial bus from New Orleans to Houston for the purpose of engaging in living together in a romantic relationship. OJEDA and the minor then moved to Pflugerville, where they lived together until the minor was recovered by Special Agents with the Federal Bureau of Investigation on May 12, 2017.
OJEDA faces a maximum term of imprisonment of not more than 30 years followed by between 5 years and a lifetime of supervised release, and a $250,000 fine. OJEDA may also be required to register as a sex offender. U.S. District Judge Jane Triche Milazzo set sentencing for December 14, 2017.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Tampa Man Pleads Guilty to Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Antwan Miller (38, Tampa) has pleaded guilty to theft of government funds and aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for the theft charge, and a mandatory two-year, consecutive term for the identity theft offense. A sentencing date has not yet been set.
According to facts presented at the plea hearing, between January 2012 and September 2014, Miller was involved in a scheme to file false and fraudulent income tax returns with the Internal Revenue Service (IRS) in order to generate the deposit of large refunds onto debit cards that he possessed and controlled. The investigation revealed that the IRS had received fraudulent tax returns in the names of victim-taxpayers that resulted in the delivery of almost $400,000 in fraudulent income tax refunds onto debit cards controlled by Miller and his co-conspirators. They then withdrew the money from ATMs and the Seminole Hard Rock Casino. Several of Miller’s co-conspirators have already pleaded guilty to similar charges and are awaiting sentencing.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation, with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
St. Peters, Missouri, Woman Sentenced to 24 Months in Prison for Bank RobberyRead the Press Release
DAVENPORT, IA – On Friday, October 6, 2017, United States District Court Judge Rebecca Goodgame Ebinger sentenced Bridgette Durborow, 48, of St. Peters, Missouri, to 24 months in prison for Bank Robbery, announced United States Attorney Marc Krickbaum. Durborow was also ordered to serve three years of supervised release following her imprisonment and pay $100 to the Crime Victim’s Fund.
On June 8, 2017, Durborow pleaded guilty to the charges, which arose from an investigation of the robbery immediately after it occurred. Durborow admitted that she drove Peter Lundberg to the Bank of the West in Coralville, Iowa, on April 20, 2017. Durborow waited in the car while Lundberg robbed the bank, taking approximately $1,080. The two were apprehended a short time later traveling eastbound on Interstate 80 near Davenport. Durborow admitted that the two drove around other eastern Iowa cities, including Cedar Rapids, Marion, and Iowa City, looking for a bank to rob.
Peter Lundberg pleaded guilty on September 1, 2017. He will be sentenced on January 8, 2018, at 1:00pm.
This matter was investigated by the Coralville Police Department and the Federal Bureau of Investigations. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
St. Francis Man Found Not Guilty of Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man was acquitted of Aggravated Sexual Abuse of a Child as a result of a federal jury trial in Pierre, South Dakota, beginning on October 3, 2017, and concluding on October 4, 2017.
Jason Corey Poorman, age 41, was indicted by a federal grand jury on November 9, 2016.
The charge stemmed from an alleged incident that occurred in March 2004, in Parmelee, South Dakota.
The investigation was conducted by the Federal Bureau of Investigation. The U.S. Attorney’s Office prosecuted the case.
Slatington, PA Woman Charged with Bank Fraud and EmbezzlementRead the Press Release
Julie Ann Turk 46, of Slatington, Pennsylvania was charged in an indictment[1] unsealed this week with one count of bank fraud, one count of bank embezzlement, and three counts of money laundering, announced acting United States Attorney Louis D. Lappen. The indictment alleges that between January of 2009 and April of 2016, Turk, an employee of Allentown Federal Credit Union, defrauded the credit union and its customers out of approximately $641,637 and further conducted monetary transactions with the proceeds of the bank fraud and bank embezzlement in amounts greater than $10,000.
If convicted, the defendants face a maximum sentence of 90 years= imprisonment, a five-year term of supervised release, a $2,500,000 fine, and a $500 special assessment.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Retired Boston Police Detective Sentenced for His Role in an Investment Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy Jr. announced today that Daniel Rice, 53, of Stoughton, Massachusetts, who was convicted of wire fraud, was sentenced to three months home confinement, followed by two years supervised release, by U.S. Senior District Judge William M. Skretny.
Assistant U.S. Attorney Scott S. Allen Jr., who handled the case, stated that Rice, a retired City of Boston Police Detective, aided and abetted Michael Wilson, 30, formerly of Hamburg, NY, in defrauding investors by promising large returns on phantom investments through companies known as New Frontier.Rice pleaded guilty for his involvement in a deal brokered in January 2010, in which the defendant induced a Montana broker to wire $100,000 as part of a phony investment with Zodiak Capital, one of Wilson’s fraudulent New Frontier companies. Rice kept $40,000 before passing the remaining $60,000 on to a Wilson account at HSBC Bank in Buffalo.
In July 2010, Rice was involved in a second deal with Zodiak, and failed to tell the Montana broker about Zodiak’s connection to Wilson’s companies. As a result, on July 15 and 19, 2010, a total of $71,875 of a second investor’s money was wired into accounts in the Buffalo area controlled by Wilson. Such money was recovered after the government applied to have the receiving bank accounts frozen. The funds eventually were returned to the second investor, who lives in Utah.
In July of this year, Wilson was convicted of wire fraud for deals entered into by his fraudulent companies between 2008 and 2010. In sum, Wilson attempted to defraud investors out of more than $10,000,000 by creating several phantom investment companies known collectively as New Frontier, which included Zodiak, Carnic LLC, Phantom Holdings and others, all purportedly located at 6553 Boston State Road in Hamburg. Wilson thereafter induced individuals and companies to invest in financial instruments with complex sounding names such as leveraging agreements that promised high-yield earnings and returns in short periods of time.
Rather than investing clients’ money, however, Wilson spent it on a variety of personal items, including $2,500,000 as a down payment for Boston State Road properties, automobiles - including a Hummer, a Corvette, two Land Rovers, and a Mercedes ML 500, artwork, and other items. In January 2009, Wilson paid $1,800 to hire an actor from a talent agency to portray a person using the name of an alias (George Possiodis), which name and persona Wilson used during his scheme. Just prior to his indictment, Wilson fled to Canada and then Vietnam in order to evade law enforcement authorities. He was apprehended there and returned to the Western District of New York to face charges.
Wilson’s sentencing is scheduled for October 25, 2017, at 11 a.m. before Judge Skretny.
Rice’s sentence is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office, and the Boston Police Department Anti-Corruption Division.
Real Estate Investor Pleads Guilty to Bid Rigging in Northern California Public Foreclosure AuctionsRead the Press Release
A real estate investor pleaded guilty for his role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Jim Appenrodt pleaded guilty to two counts of bid rigging in U.S. District Court for the Northern District of California in San Francisco. Appenrodt was charged in an indictment returned by a federal grand jury on October 22, 2014.
According to court documents, Appenrodt participated in a conspiracy to rig bids by agreeing to refrain from bidding against other coconspirators at public real estate foreclosure auctions in San Francisco County and San Mateo County from as early as August 2008 until January 2011.
“The Antitrust Division has prosecuted scores of real estate investors who, for their own benefit and profit, conspired to corrupt the bidding process at foreclosure auctions,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s guilty plea demonstrates the Division’s continued commitment to bringing to justice the individuals who committed these crimes.”
Today’s guilty plea is the result of the Department’s ongoing investigation into bid rigging at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, California. To date, 63 individuals have agreed to plead or have pleaded guilty.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco. Anyone with information concerning bid rigging or fraud related to real-estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Louis Andrew Rabbitt, Jr., age 37, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 26, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Rabbitt was convicted of Sexual Abuse of a Minor in August 2001. As a result of this conviction, he is required to register as a sex offender. It is alleged that between July 24, 2017, and July 31, 2017, Rabbitt, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Rabbitt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.
Rabbitt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.