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Wednesday 19 July 2017
Port Graham Couple Charged with Crimes Related to False Distress Call and Causing a Hoax Search and Rescue OperationRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that two Port Graham, Alaska, residents have been federally charged related to their causing the United States Coast Guard to attempt to save life and property when no help was needed.
Ryan Riley Meganack, aka: “Unga,” 34, and his girlfriend, Ivy Rose Rodriguez, 25, both of Port Graham, Alaska, were charged with conspiracy and false distress. Meganack was also charged with felon in possession of a firearm. Meganack, a long-time commercial fisherman and a boat captain, was scheduled to plead guilty on Dec. 5, 2016, in a separate case (State of Alaska v. Meganack, 3AN-15-00683CR), and understood that at the time he pled guilty in that matter he would go to prison. To avoid that consequence, Meganack attempted to fake his own death and enlisted the help of his girlfriend, Rodriguez.
In furtherance of the conspiracy, on Nov. 29, 2016, Meganack piloted his fishing vessel to an island near Port Graham and abandoned his skiff in a manner that made it appear that he had gone missing after a boating accident or had otherwise died. Meganack then returned to Port Graham, picked up Rodriguez, and the two traveled in Meganack’s fishing vessel to a tidal lagoon where they secured the vessel, and returned to Port Graham on land. Meganack went to a makeshift campsite near Port Graham, and Rodriguez went to a residence where she was staying. In the early morning hours of Nov. 30, 2016, Rodriguez reported to a member of Meganack’s family that Meganack had left in his skiff, the skiff “wasn’t running right,” and indicated that Meganack had been drinking and had more alcohol with him. The Indictment alleges that Meganack and Rodriguez agreed that Rodriguez would tell Meganack’s family that Meganack was missing, knowing that Meganack’s family would report him missing and that a search for Meganack would commence.
Between Nov. 30, 2016, and Dec. 2, 2016, Meganack and Rodriguez caused a search and rescue operation to be launched for Meganack. The weather conditions during the search were poor, with snow, high winds, and low visibility at times in the Port Graham area. Meganack was, in actuality, safe in a makeshift campsite near Port Graham that he made for carrying out their plan.
Federal, state, and local authorities, as well Port Graham residents, participated in the search for Meganack. Helicopters from United States Coast Guard Air Station Kodiak, Coast Guard Cutter Naushon, and Coast Guard command center personnel participated in the operation. The Coast Guard alone expended approximately $310,897.50 in resources during the search for Meganack.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Phenix City Man Indicted in Alleged $19 Million Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama – A Phenix City man was arrested today after being indicted by a federal grand jury for conspiring to file fraudulent refund claims, mail fraud, wire fraud and aggravated identity theft, announced Acting U.S. Attorney A. Clark Morris for the Middle District of Alabama, and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, between November 2010 and December 2013, William Anthony Gosha III aka Boo Boo, and his co-conspirators used stolen IDs to file over 7,000 tax returns with the Internal Revenue Service (IRS) seeking more than $19 million in fraudulent refunds. The indictment alleges that Gosha obtained IDs of inmates from the Alabama Department of Corrections and that his co-conspirators obtained IDs from multiple sources, including an Alabama state agency. The indictment charges that they used these IDs to file the fraudulent tax returns. Gosha and his co-conspirators also allegedly obtained several Electronic Filing Identification Numbers in the names of sham tax preparation businesses in order to file the fraudulent returns and apply for tax refund-related bank products from financial institutions.
The indictment alleges that Gosha and his co-conspirators directed the IRS to issue the refunds to prepaid debit cards, U.S. Treasury checks and financial institutions. The indictment further alleges that Gosha and his co-conspirators recruited U.S. Postal Service employees to provide addresses on their mail routes to which the fraudulently obtained refund checks could be sent. According to the indictment, Gosha and his co-conspirators cashed the refund checks at several businesses in Alabama and Georgia.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Gosha faces a statutory maximum sentence of 10 years in prison for the conspiracy count, a statutory maximum sentence of 20 years in prison for each count of wire and mail fraud and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft. He also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Acting U.S. Attorney Morris and Deputy Assistant Attorney General Goldberg commended special agents of Internal Revenue Service Criminal Investigation and the U.S. Postal Inspection Service, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division, and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.
Oklahoma City Man Charged with Making a Bomb Threat and Child Sexual ExploitationRead the Press Release
Oklahoma City, Oklahoma – ROBERT SHANE APGAR, 33, of Oklahoma City, has been charged with falsely and maliciously reporting that his estranged ex-wife intended to blow up the Grady County Courthouse and with child exploitation and child pornography crimes, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to the first count of a four-count indictment returned by a federal grand jury yesterday, Apgar used the internet on December 1, 2015, to send false information about an attempt to bomb the Grady County Courthouse. An affidavit filed on May 2, 2017, explains that this threat was made anonymously to the FBI by email and triggered precautions at the Grady County Sheriff’s Office. The email stated that the bombing would be carried out by a person later identified as Apgar’s ex-wife, whom he had threatened before. On December 8, 2015, after further investigation, the FBI executed a search warrant at an Oklahoma City residence where Apgar was living with his mother.
The search yielded pornographic images of prepubescent children from October 2015. According to Count 2 of yesterday’s indictment, Apgar attempted to persuade, induce, and entice a minor to engage in sexually explicit conduct for the purpose of transmitting video images of that conduct. According to Count 3, Apgar used a facility of interstate commerce to send images of a minor engaging in sexually explicit conduct. And according to Count 4, Apgar possessed images of that sort with intent to view them after they had been transported using a means of interstate commerce.
If convicted of making a bomb threat, Apgar could be sentenced to ten years in prison and three years of supervised release. A conviction on Count 2 would carry a minimum of 15 years in prison and a maximum of 30 years in prison. Count 3 would lead to a sentence of five to 20 years in prison, while a conviction on Count 4 would carry a maximum penalty of 10 years in prison.
Reference is made to court records for further information. The public is reminded that Apgar is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the Federal Bureau of Investigation, with the assistance of the Grady County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Brandon Hale.
Ohio Man Sentenced to 40 Years in Federal Prison for Raping Boy at Fort Sill Army PostRead the Press Release
Oklahoma City, Oklahoma – TERRANCE TRENT MOSLEY, 29, of Cleveland, Ohio, was sentenced today to 480 months in prison by the Honorable David L. Russell, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On January 26, 2017, Mosley, a civilian, pled guilty to orally and anally sodomizing a boy who was under the age of 12 at the Fort Sill Army Post in October 2015. Mosley lived with the family of the juvenile victim, who was the dependent of a soldier. At sentencing, Judge Russell noted that Mosley’s abuse of the boy had been forcible, painful, and repeated. The Court also considered Mosley’s threat to kill the boy if he reported the abuse and Mosley’s molestation of two other boys in the past. Judge Russell announced that the 40-year sentence would both punish Mosley and protect the public.
Upon release from prison, Mosley will be on supervised release for the rest of his life. He will also have to register as a sex offender.
This case is the result of an investigation by the Federal Bureau of Investigation and the United States Army Criminal Investigation Command, with assistance from the Oklahoma State Bureau of Investigation. Assistant U.S. Attorneys Brandon Hale and Jessica Cárdenas Jarvis prosecuted the case.
North Carolina Resident Indicted, Detained on Firearms, Drug Trafficking ChargesRead the Press Release
PROVIDENCE – Anthony M. Thompson, 39, of Charlotte, NC, was arraigned and ordered detained in federal custody today on a federal grand jury indictment returned on Tuesday charging him with being a felon in possession of firearms, possession with the intent to distribute methylenedioxymethamphetamine (MDMA, Ecstasy), and possession of a firearm in furtherance of a drug trafficking crime.
Rhode Island State Police arrested Thompson on June 20, 2017, following a traffic stop on Rte. 95 during which it is alleged that a cache of loaded, high-powered firearms, camouflage equipment, night-vision goggles, and more than 400 grams of suspected Ecstasy were seized from Thompson’s vehicle.
At the time of his arrest, it was alleged that Thompson, while being questioned outside of his vehicle by a trooper about information he allegedly provided to the trooper regarding his criminal record, shoved the trooper and took off running in the travel lane, against the traffic. After he allegedly failed to respond to commands to stop, including warnings that he would be Tasered, Thompson was Tasered, halted and arrested.
Thompson appeared today before U.S. District Court Magistrate Judge Lincoln D. Almond. A not guilty plea was entered. Thompson was returned to the ACI where he has been detained on Rhode Island state charges brought in this matter.
Acting United States Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico thank the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rhode Island Department of Attorney General for their assistance with this matter.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Nineteen Black Hawk County Men Charged with Federal Drug Trafficking and Firearms OffensesRead the Press Release
Nineteen Black Hawk County men have been charged with federal drug trafficking and firearms offenses. The charges are contained in five indictments unsealed today in United States District Court in Cedar Rapids.
In one indictment, Naiqondis Maurice Spates, age 32, Devonte Denterrio Jenkins, age 25, and Gary Lind Krueger, age 70, all from Waterloo, Iowa, were charged with conspiracy to distribute cocaine base and other drug trafficking offenses.
In a second indictment, Alston Ray Campbell, Jr., age 34, Alston Ray Campbell, Sr., age 63, William Marcellus Campbell, age 42, Willie Junior Carter, age 44, Alexander Martin, age 49, John Dwayne Phillips, 49, and Darius Fontaine Shears, age 30, all from Waterloo, Iowa, were charged with conspiracy to distribute cocaine base and other drug trafficking offenses. Shears was also charged with possessing a firearm as a felon.
In a third indictment, Keylynn Landon Goldsmith, age 31, Ronald Corey, age 60, Corey Demarcus Jones, age 36, Michael Earl Snow, age 40, Melvin Maurice Grubbs, age 35, Deon Marcell Goldsmith, age 36, all from Waterloo, Iowa, and Gregory Porter Washington, age 38, from Evansdale, Iowa, were charged with conspiracy to distribute cocaine base and other drug trafficking offenses.
In additional indictments, Durius Antwan Davis, age 25, from Waterloo, Iowa, was charged with possessing a firearm and ammunition as a felon, and Johnston Phillips, age 64, from Waterloo, Iowa, was charged with possessing a firearm as a felon and distributing cocaine base.
All defendants face a maximum term of imprisonment of at least twenty years. Some face a maximum term of life imprisonment.
Alston Campbell Jr., Alston Campbell Sr., William Campbell, Carter, Corey, Davis, Deon Goldsmith, Grubbs, Jenkins, Jones, Krueger, Martin, Johnston Phillips, Snow, Spates, and Washington appeared today in federal court in Cedar Rapids and were held in custody pending detention hearings on July 24, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The cases are being prosecuted by Assistant United States Attorneys Ravi T. Narayan and Emily K. Nydle and were investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-CR-2043, 17-CR-2045, 17-CR-2049, 17-CR-2050, and 17-CR-2051.
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Nine Miami-Dade Assisted Living Facility Owners Sentenced to Federal Prison for Receipt of Health Care KickbacksRead the Press Release
Miami-Dade County assisted living facility owners, Marlene Marrero, 60, of Miami, Norma Casanova, 67, of Miami Lakes, Yeny De Erbiti, 51, of Miami, Rene Vega, 57, of Miami, Maribel Galvan, 43, of Miami Lakes, Dianelys Perez, 34, of Miami Gardens, Osniel Vera, 47, of Hialeah, Alicia Almeida, 56, of Miami Lakes, and Jorge Rodriguez, 57, of Hialeah, were sentenced to prison for receiving health care kickbacks. United States District Judge Marcia G. Cooke imposed sentences upon the nine defendants ranging from eight months to one year and one day, in prison. One assisted living facility owner, Blanca Orozco, 69, of Miramar, was sentenced to home confinement. In addition to their federal convictions, all ten defendants were also ordered to serve three years of supervised release, pay restitution and are subject to forfeiture judgments.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Pam Bondi, Florida Attorney General, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
All ten defendants previously pled guilty to receipt of kickbacks in connection with a federal health care program, in violation of Title 42, United States Code, Section 1320a-7b(b)(1)(A). According to court documents, these assisted living facility owners conspired with the former owner of Florida Pharmacy to receive kickbacks and bribes in exchange for referring beneficiaries living in their facilities for prescription medication and durable medical equipment paid for by Medicare and Medicaid. The assisted living facility owners participated in the fraudulent scheme, in violation of their Medicaid provider agreement as well as federal and state anti-kickback rules and regulations.
Mr. Greenberg commended the investigative efforts of the Medicare Fraud Strike Force participating partners, including HHS-OIG, the State of Florida’s Medicaid Fraud Control Unit, and the FBI. The case was prosecution by Special Assistant United States Attorney Hagerenesh Simmons.
The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
In addition, HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Nezar Al-Bataineh, formerly of Colchester, VT, Indicted for Wire Fraud and Tax EvasionRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Nezar Q. Al-Bataineh, age 40, a Jordanian National, has been indicted on wire fraud and tax evasion charges related to his sale of used automobiles. It is believed that Al-Bataineh is currently residing in Jordan. A warrant has been issued for his arrest.
As charged in the indictment, from approximately May 17, 2015 through May 21, 2015, Al-Bataineh devised a scheme to defraud and obtain money by means of false pretenses to a possible vehicle purchaser. It is alleged that Al-Bataineh misrepresented the length of his ownership and service history of a vehicle which he had offered for sale on Craigslist.
The indictment further alleges that Nezar Al-Bataineh willfully evaded income taxes due and owing by him to the Internal Revenue Service, by filing false and fraudulent individual income tax returns, Forms 1040NR-EZ. Counts 2 through 5 of the superseding indictment allege that Nezar Al-Bataineh failed to reported significant net income for the calendar years 2011 through 2014, which he earned as an unlicensed automobile dealer.
The charges against Al-Bataineh are merely accusations and Al-Bataineh is presumed innocent until proven guilty. If convicted, Al-Bataineh’s sentence will be advised by the federal sentencing guidelines.
The case against Al-Bataineh is being investigated by the Internal Revenue Service, Criminal Investigation Division.
The United States is represented in this case by Acting United States Attorney Eugenia A.P. Cowles. Al-Bataineh is represented by Attorney Richard R. Goldsborough.
New York Attorney Charged with Scheme to Fraudulently Register Shell Companies and Secretly Sell StockRead the Press Release
New York attorney was charged with conspiracy to unlawfully sell unregistered securities in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commission (SEC), issue shares in the companies that they and other conspirators secretly controlled, and sell the shares to the investing public at a profit. To date, seven defendants have been charged in connection with the ongoing prosecution of this scheme.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
David Lubin, 52, of West Hempstead, New York, was charged by criminal information with one count of conspiracy to unlawfully sell unregistered securities, in violation of Title 15, United States Code, Sections 77e(a)(1), 77e(a)(2), and 77x, and Title 17, Code of Federal Regulations, Section 230.144, all in violation of in violation of Title 18, United States Code, Section 371. Lubin faces a maximum statutory sentence of five years in prison and a fine up to $250,000 or double the proceeds of the offense. This matter is assigned to U.S. District Judge Marcia G. Cooke in Miami, Case No. 17-20508-CR-MGC.
Previously in related cases, Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, of El Dorado Hills, California, were charged in Case No. 16-20546-CR-RNS; Steven Sanders, 73, of Lake Worth, Florida, and Alvin S. Mirman, 78, of Sarasota, Florida, were charged in Case No. 16-20572-CR-CMA; and, Sheldon Rose, 77, of Sarasota, and Ian Kass, 45, of Ft. Lauderdale, were charged in Case No. 16-20707-CR-JEM. All six of these defendants were convicted and sentenced to prison terms.
According to court documents, from early 2007 through at least 2014, Sanders, McKelvey, Mirman, and Rose would fraudulently create shell companies by filing documents with the SEC indicating that the companies were controlled by a nominee chief executive officer (CEO). The straw CEO would be listed as the owner of the control block of shares but in reality the companies were controlled by the principals. The control block of shares listed in the name of the officer were deemed restricted and could not be sold to the public. The principals would also list in SEC filings the names of various shareholders for each company to make it appear that these shares were owned by persons unaffiliated with the company. These shares would later become “free trading” and secretly sold to shell buyers. Using false and fraudulent documentation describing the companies’ business purpose and share ownership, the principals would then obtain approval for the shares of the companies to be sold publicly over the counter. Thereafter, the principals would sell the companies to shell buyers who would secretly obtain both the control shares and the purported “free trading” shares without disclosure of this common control and simultaneous sale to the SEC or the investing public. This would allow the shell buyers to engage in stock manipulation or pump and dump schemes using the “free trading” shares.
According to the charging information, Lubin was an attorney licensed to practice in New York and acted as a shell buyer, broker, and attorney for various shell companies involved in the scheme. In certain instances, Lubin also provided false and fraudulent opinion letters to make it appear that shares that were actually controlled by the principals were not owned by “affiliates,” and thus could be deemed unrestricted and available for sale to the investing public. In the case of one fraudulent shell entity, Entertainment Art, Inc. (EERT), in early 2009, Lubin participated in the sale of that entity to a co-conspirator, Conspirator A, but executed fraudulent documents to make it appear that only the restricted shares were sold to Conspirator A. Lubin also drafted and filed with the SEC various documents that falsely represented the nature and control of EERT’s shares, as well as the terms of the sale.
Conspirator A was sentenced to federal prison in approximately November 2010 in connection with a separate securities fraud scheme. Lubin, along with Sanders and McKelvey, assisted with the fraudulent re-sale of EERT on behalf of Conspirator A, including by causing false filings with the SEC. In approximately October 2012, EERT was sold to certain criminal actors and the entity name was later changed to Biozoom, Inc. (BIZM). The EERT purchasers and others used the fraudulently created “free trading” shares of BIZM to engaged in a pump and dump stock manipulation scheme, using the EERT shares that had previously been falsely and fraudulently sold by Lubin to Conspirator A and his co-conspirators.
The SEC today announced a parallel civil enforcement action against Lubin.
Mr. Greenberg commended the investigative efforts of the FBI’s Miami Field Office and Washington Field Office. Mr. Greenberg also thanked the SEC’s Washington Home Office and Miami Regional Office for their assistance. The SEC previously filed civil enforcement actions against McKelvey, Sanders, Mirman, Rose, Kass, and Lamson. This matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Alison W. Lehr.
A criminal information merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
New Britain Man Sentenced to 10 Years in Prison for Distributing FentanylRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KYLE PETERSEN, 31, of New Britain, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for distributing fentanyl and other controlled substances.
According to court documents and statements made in court, in late December 2015, the DEA’s Hartford Task Force and New Britain Police Department received information that PETERSEN was selling fentanyl powder, prescription pills and marijuana. DEA Task Force Officers and the New Britain Police Department Special Services Unit initiated an investigation and made multiple controlled purchases of fentanyl from PETERSEN. The investigation, which included court-authorized wiretaps, revealed that John Casadei, of Morris, used the darknet, an internet network that can only be accessed through the use of specific software or authorizations, to purchase large quantities of fentanyl that were shipped from China. Casadei also obtained and distributed various prescription pills, including Xanax and oxycodone. Casadei then supplied fentanyl and various prescription pills to Jared McBriarty, of Bristol, who in turn supplied them to PETERSEN. PETERSEN distributed the drugs to other individuals who sold them throughout central Connecticut.
The investigation revealed that PETERSEN acquired and distributed at least 1.5 kilograms of fentanyl, and attempted to acquire an additional kilogram of fentanyl, which law enforcement seized after it was shipped from China.
PETERSEN, Casadei, McBriarty and other individuals involved in this narcotics distribution ring were arrested on May 19, 2016. On that date, law enforcement a New Britain residence that PETERSEN used as a stash location and seized approximately $740,000 in cash, approximately 3.2 kilograms of MDMA (commonly known as “ecstasy”), and more than 40,000 Xanax pills. A search of PETERSEN’s residence revealed additional quantities of narcotics and more than $11,000 in cash. Law enforcement subsequently seized approximately $80,000 from PETERSEN’s bank account.
PETERSEN has been detained since his arrest. On April 26, 2017, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 400 grams or more of fentanyl.
Casadei and McBriarty have pleaded guilty to related charges and await sentencing.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the U.S. Marshals Service, U.S. Postal Inspection Service, Homeland Security Investigations, New Britain State’s Attorney’s Office and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Middlesex County Man Admits $2 Million Fraud Involving Bogus Small Business Administration LoanRead the Press Release
NEWARK, N.J. – A New Brunswick, New Jersey, man today admitted defrauding a bank by fraudulently using a federally-backed $2 million small business loan on personal expenses, Acting U.S. Attorney William E. Fitzpatrick announced.
John Cheng, 58, of New Brunswick, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with loan application fraud.
According to documents filed in this case and statements made in court:
On Dec. 7, 2007, Cheng submitted a Small Business Administration (SBA) loan application for $1.75 million and a commercial loan application for $2 million, purportedly for financing relating to a restaurant in Skillman, New Jersey.
The loan applications were submitted to an independent lender through the SBA Loan Guaranty Program, which authorizes the SBA to provide financial assistance to eligible small businesses through loan guarantees to participating lenders. Rather than loan money directly to small businesses, the SBA provided a guaranty to the independent lender that the SBA would repay a percentage of a loan in the event that a borrower defaulted.
Cheng’s SBA loan application falsely stated that the loan would be used for construction, acquisition of machinery and equipment, and working capital. After receiving $2,082,229 from the victim bank in March 21, 2008, Cheng used the funds for his own benefit, including paying off gambling debts, sending money to family members, and paying a federal tax bill.
The charge to which Cheng pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Under his plea agreement, Cheng must pay restitution of $2,657,687.15 to the bank he defrauded and forfeit $1,696,506. Sentencing is scheduled for Oct. 25, 2017.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the U.S. Small Business Administration’s Office of Inspector General, Eastern Region, under the direction of Special Agent in Charge Kevin Kupperbusch, and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero, for their assistance.
The government is represented by Assistant U.S. Attorney Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
Defense counsel: Steven D. Altman Esq., New Brunswick, New Jersey
Miami Resident Indicted for Impersonating a Federal OfficerRead the Press Release
Benjamin Greenberg, Acting United States Attorney for the Southern District of Florida; John Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS); and Thomas Robarge, Special Agent in Charge, Coast Guard Investigative Service (CGIS), made the announcement.
George I. Lopez, a/k/a “Ray Lo, Master Lo, and Israel Lo,” 46, of Bay Harbor, was indicted on July 13, 2017, with two counts of impersonation of an officer and employee of the United States, in violation of Title 18, United States Code, Section 912. According to the indictment, Lopez falsely represented himself to be a Master Sergeant in the U.S. Marine Corps and a Lieutenant in the U.S. Coast Guard in order to obtain things of value from a person who thought Lopez was helping her to join the military.
Mr. Greenburg commended the investigative efforts of DCIS and CGIS. The case is being prosecuted by Assistant U.S. Attorney Greg Schiller.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Massachusetts Man Sentenced to Eight Years for Illegal Possession of a FirearmRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Melson Jacques, a/k/a “Mike”, 35, of Braintree, Massachusetts, was sentenced yesterday in U.S. District Court by Judge Jon D. Levy to eight years in prison and three years of supervised release for possession of a firearm by a felon. Jacques pleaded guilty to the charge on March 3, 2016.
Court records reveal that in May 2015, Jacques coerced a drug-addicted Biddeford man to purchase a Glock 9mm handgun for him and a drug trafficking accomplice through a straw purchase in Saco that was surveilled by federal agents. Jacques was prohibited from possessing firearms as the result of multiple felony drug convictions in Massachusetts. At the time Jacques came to Maine in the spring of 2015, he was a fugitive wanted on felony warrants out of Massachusetts where he had absconded from an ongoing drug trafficking trial.
Jacques faced an enhanced sentence for possessing the handgun while engaged in drug trafficking. In imposing the sentence, Judge Levy noted the defendant’s lengthy criminal history and “disregard for the law.”
The investigation was conducted by the Saco Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Marion Man Sentenced for Conducting Investment Fraud SchemeRead the Press Release
COLUMBUS, Ohio – John Richard Blazer, 71, of Marion, Ohio, was sentenced in U.S. District Court to 33 months in prison for orchestrating multiple investment fraud schemes. Blazer pleaded guilty to wire fraud and money laundering in December 2016.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to the Statement of Facts in this case, from approximately January 2011 until August 2013, Blazer owned and operated several businesses in central Ohio, including The Ohio Company and The Ohio Company Loan Fund. He was also a partner in The Ohio Heritage Fund.
Blazer recruited investors by promising them that their money would be invested in one of his businesses, or in a real estate fund to purchase and rehabilitate homes in central Ohio, which would then be leased through a Section 8 housing program with the government, or in a gold mining operation in Africa that had the potential to produce significant amounts of gold and diamonds.
Rather than investing the victims’ funds, Blazer used the money to pay for personal expenses and to partially re-pay other victims.
In total, he received at least $1 million from approximately 21 victims.
As part of his sentence, Blazer was also ordered to pay full restitution to the victims.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Jessica H. Kim, who is representing the United States in this case.
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Man Who Posted Facebook Threat to Kill Supervisor Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – A Washington D.C. man pleaded guilty today to using Facebook to threaten to kill his supervisor.
According to the statement of facts filed with the plea agreement, Romeo B. Twalla, 34, was an armed Protective Service Officer for the Ronald Reagan Building in Washington, D.C. After being placed on leave for absences at work, Twalla began posting threats on his Facebook page to kill his supervisor. In one post, Twalla warned that if he lost his home, his supervisor would lose his life. Twalla also posted that he had “two clips” (referring to ammunition to carry out the threats), and that Federal Protective Services could not protect the victim from Twalla because “those buildings in D.C. coming down!”
Twalla pleaded guilty to two counts of transmitting threats in interstate commerce to injure the person of another, and faces a maximum of 5 years in prison on each count when sentenced on September 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and L. Eric Patterson, Director of the Federal Protective Service, made the announcement after U.S. District Judge Gerald Bruce Lee accepted the plea. Assistant U.S. Attorney Nathaniel Smith III and Special Assistant U.S. Attorney Lilian Timmermann are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-146.
Man Sentenced to Jail Term and Ordered to Pay $613,025 in Restitution for Scheme That Fraudulently Generated Tax RefundsRead the Press Release
WASHINGTON - William S. Wilson, 68, of Temple Hills, Md., was sentenced today to six months in jail, to be followed by six months of home detention, for initiating an identity theft and false tax refund scheme that illegally generated more than $600,000 in refunds.
The sentencing was announced by U.S Attorney Channing D. Phillips, Special Agent in Charge Kimberly Lappin of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office, and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Wilson pled guilty in October 2016, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to defraud the United States with respect to claims. He was sentenced by the Honorable Christopher R. Cooper. Following his jail term, Wilson will be placed on three years of supervised release, which is to include the period of home detention. Judge Cooper also ordered Wilson to pay $613,025 in restitution to the IRS.
According to the government’s evidence, from approximately June 2010 through May 2012, Wilson prepared and electronically filed with the IRS federal income tax returns, in the names of various individuals, claiming tax refunds, knowing that these claims were false, fictitious, and fraudulent. Some of the people for whom Wilson prepared returns brought him lists of names and Social Security numbers, including stolen identifying information. Wilson was paid $50 for each fictitious Form W-2 and $100 for each fraudulent individual income tax return that he prepared by the person for whom he prepared it.
Wilson used bank accounts under his control for the direct deposit of fraudulently obtained tax refunds. He also recruited another individual, Tamika Witherspoon, to permit the use of her bank accounts for the direct deposit of fraudulently obtained tax refunds and to negotiate fraudulently obtained U.S. Treasury refund checks. The two split a portion of the proceeds from the deposit of these tax refunds, each receiving approximately $500 to $1,000 per tax refund, with the remaining proceeds going to other co-conspirators.
Wilson electronically filed approximately 186 individual income tax returns, claiming fraudulent refunds of $613,205. In court documents, the government estimated that Wilson personally received at least $151,050 to $212,050 for his participation in the scheme.
Witherspoon, 31, of Washington, D.C., pled guilty in June 2017 to a charge of conspiracy to defraud the United States with respect to claims. She is to be sentenced on Sept. 11, 2017.
In announcing the sentence, U.S. Attorney Phillips, Special Agent in Charge Lappin, and Assistant Inspector General Phillips commended the work of those who investigated the case. They also expressed appreciation for the assistance provided by the District of Columbia Office of Tax and Revenue and the U.S. Marshals Service. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Jonathan P. Hooks and Paralegal Specialist Jessica Mundi. Finally, they commended the work of Assistant U.S. Attorney Ellen Chubin Epstein, who investigated and prosecuted the case.
MS-13 Gang Members Indicted in New York for Murder of Four Young Men in Park and Killing of Rival at DeliRead the Press Release
17 members and associates of La Mara Salvatrucha, also known as the MS-13, have been charged with racketeering, 12 murders, attempted murders, assaults, obstruction of justice, arson, conspiracy to distribute marijuana, and related firearms and conspiracy charges relating to the gang’s activities on Long Island, New York. The 59-count, third superseding indictment was unsealed on July 13, in federal court in Central Islip, New York, and includes charges relating to the April 11, murder of four young men in a Central Islip, New York park.
Attorney General Jeff Sessions; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Bridget M. Rohde for the Eastern District of New York; Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office; and Commissioner Timothy D. Sini of the Suffolk County Police Department made the announcement.
“MS-13 is one of the most vicious criminal gangs in this country today,” said Attorney General Sessions. “As I said when I visited Long Island after these murders took place in April, MS-13’s motto may be ‘kill, rape and control’, but the Department of Justice’s motto is justice for victims and consequences for criminals. We are committed to bringing violent criminals to justice, and this indictment is the next step in our mission of finding, prosecuting, and eradicating the MS-13 threat.”
“The senseless murders charged in this superseding indictment further demonstrate MS-13’s compulsion to commit horrific acts of violence in communities in our district,” stated Acting U.S. Attorney Rohde. “This Office and the FBI’s Long Island Gang Task Force will continue to work tirelessly to rid communities, including Central Islip, of MS-13, using every law enforcement resource at our disposal.” Ms. Rohde expressed her grateful appreciation to the members of the FBI’s Long Island Gang Task Force, as well as the U.S. Attorney’s Offices for the Eastern District of Virginia, the Western District of Virginia, and the Western District of North Carolina for assistance provided during the investigation.
“MS-13 is our number one priority on Long Island because much of what they do and how they behave boils down to violence for violence sake,” stated Assistant Director in Charge Sweeney. “The idea that human life means nothing to these gang members should shock the conscience, and we cannot allow this type of thinking to take hold in our youth. We need help in addressing the violence, by the community supporting churches, community programs and activists who can provide a positive alternative to the deadly future MS-13 offers.”
“Today’s announcement is the culmination of excellent police work, and true collaboration between the Suffolk County Police Department, and our federal law enforcement partners,” stated Police Commissioner Sini. “The fact that this case was done in approximately three months is nothing short of outstanding, and I want to thank everyone involved for their critical work. This is another huge blow against MS-13. It shows that we will not tolerate violence in our communities. It shows that we will stop at nothing to achieve justice. And it means that we will prevail.”
Among the counts added in the third superseding indictment are charges against: (1) Alexis Hernandez, 20, of Central Islip, New York; Santos Leonel Ortiz-Flores, 19, of Central Islip, New York; and Omar Antonio Villalta, 22, of Central Islip, New York and Charlottesville, Virginia, in connection with the April 11, murders of Justin Llivicura, Michael Lopez, Jorge Tigre and Jefferson Villalobos in Central Islip; (2) Mario Aguilar-Lopez, 18, of Brentwood, New York; Enrique Portillo, 20, of Central Islip, New York; Alexi Saenz, 22, of Brentwood, New York; Jairo Saenz, 20, of Brentwood, New York; and Jose Suarez, 23, of Central Islip, New York, in connection with the January 30, murder of Esteban Alvarado-Bonilla, a suspected rival gang member, and assault of an innocent bystander at El Campesino Deli in Central Islip; and (3) Jeffrey Amador, 21, of Brentwood, New York; and Ronald Catalan, 26, of Brentwood, New York, in connection with the Oct. 21, 2015 attempted murder of two suspected rival gang members.
As detailed in the third superseding indictment and the government’s detention letter filed on July 13, Hernandez, Ortiz-Flores and Villalta have been charged with the April 11, murders of Llivicura, Lopez, Tigre and Villalobos. According to the allegations in the government’s detention letter, on the evening of the murders, two female associates of MS-13 lured five young men, including the four victims, to a community park in Central Islip at the direction of MS-13 members who believed the victims to be members of a rival gang. More than a dozen MS-13 members and associates, including Hernandez, Ortiz-Flores and Villalta, met in a heavily wooded area behind the park where they discussed the plan to kill the victims, distributed weapons and waited for word from the females that they had arrived.
According to the allegations in the government’s detention letter, when the female MS-13 associates arrived at the park, they led the victims to a wooded area and notified MS-13 members of their location by text message. Hernandez, Ortiz-Flores, Villalta and the other MS-13 members approached and surrounded the victims, and attacked and killed Llivicura, Lopez, Tigre and Villalobos using machetes, knives and wooden clubs. The fifth victim escaped. According to the allegations in the detention letter, the MS-13 members and associates dragged the victims’ bodies a short distance to a more secluded spot and fled the scene. The victims’ bodies were discovered the following evening, on April 12.
According to the government’s detention letter, Portillo, Alexi Saenz and Jairo Saenz were previously charged with the Sept. 13, 2016, murders of Nisa Mickens and Kyla Cuevas. In the third superseding indictment, they are also charged, along with Aguilar-Lopez and Suarez, in connection with the January 30, murder of Alvarado-Bonilla, a suspected rival gang member, and the assault of an innocent bystander. The government contends in the detention letter that, on the day of the murder, Portillo, a member of the Sailors Locos Salvatruchas Westside (“Sailors”) clique, saw Alvarado-Bonilla, a suspected rival gang member, inside a deli in Central Islip. Portillo reported this sighting to Alexi Saenz and Jairo Saenz, the leaders of the Sailors clique, who directed Aguilar-Lopez, Suarez and another MS-13 associate to go to the deli and kill Alvarado-Bonilla. The government alleges in the detention letter that, after arriving at the deli, Aguilar-Lopez approached Alvarado-Bonilla from behind and shot him multiple times, killing him, and also striking an employee of the deli.
According to the superseding indictment and the allegations in the detention letter, Amador and Catalan, who was the leader of the Brentwood Locos Salvatruchas (“BLS”) clique of the MS-13, are also charged in connection with the Oct. 21, 2015 attempted murders and assaults of two men that occurred in North Bay Shore, New York. According to the allegations, that evening, MS-13 members had decided to retaliate against suspected members of the rival Latin Kings gang for an assault on an MS-13. Amador, Catalan and other MS-13 members observed a group of people they believed to be Latin Kings, approached the group and fired multiple shots before running back to the car and fleeing the scene. The government contends in the detention letter that two victims were struck but survived their gunshot wounds.
The third superseding indictment also charges members of the Sailors and BLS MS-13 cliques with conspiracy to distribute cocaine and marijuana, the proceeds of which the government contends were used to help finance MS-13’s criminal operations.
This superseding indictment is the latest in a series of federal prosecutions by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Organized Crime and Gang Section targeting members of MS-13, a violent transnational criminal organization. MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” MS-13 is the most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010 alone, the U.S. Attorney’s Office for the Eastern District of New York has obtained indictments charging MS-13 members with carrying out more than 40 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprised of agents and officers of the FBI, Suffolk County Police Department, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, the New York State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 13, Aguilar-Lopez, Amador, Catalan, Hernandez and Ortiz-Flores were arraigned before U.S. District Judge Joseph F. Bianco at the federal courthouse in Central Islip. Villalta was arraigned in the Western District of Virginia that same day. The remaining defendants were arraigned before Judge Bianco on July 17.
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by the Assistant U.S. Attorneys John J. Durham, Raymond A. Tierney and Paul G. Scotti of the Long Island Criminal Division with assistance from Deputy Chief Douglas Crow and Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section.
The Defendants:
EDWIN AMAYA-SANCHEZ (“Strong”)
Age: 30
Brentwood, New York
WILLIAM CASTELLANOS (“Dizzy” and “Satanico”)
Age: 20
Central Islip, New York
JHONNY CONTRERAS (“Reaper”)
Age: 23
Brentwood, New York
REYNALDO LOPEZ-ALVARADO (“Mente”)
Age: 25
Brentwood, New York
ELMER ALEXANDER LOPEZ (“Smiley,” “Little Smiley” and “Alex”)
Age: 19
Brentwood, New York
SELVIN CHAVEZ (“Flash”)
Age: 20
Brentwood, New York
GERMAN CRUZ (“Bad Boy”)
Age: 19
Brentwood, New York
ENRIQUE PORTILLO (“Oso” and “Turkey”)
Age: 20
Central Islip, New York
ALEXI SAENZ (“Blasty” and “Big Homie”)
Age: 22
Brentwood, New York
JAIRO SAENZ (“Funny”)
Age: 20
Brentwood, New York
MARIO AGUILAR-LOPEZ (“Cuchumbo”)
Age: 18
Brentwood, New York
JEFFREY AMADOR (“Cruel”)
Age: 21
Brentwood, New York
RONALD CATALAN (“Stranger”)
Age: 26
Brentwood, New York
ALEXIS HERNANDEZ
Age: 20
Central Islip, New York
SANTOS LEONEL ORTIZ-FLORES
Age: 19
Central Islip, New York
JOSE SUAREZ (“Chompira”)
Age: 23
Central Islip, New York
OMAR ANTONIO VILLALTA (“Anticristo”)
Age: 22
Central Islip, New York and Charlottesville, Virginia
E.D.N.Y. Docket No. 16-403 (S-3)(JFB)
MS-13 Gang Members Indicted in New York for Murder of Four Young Men in Park and Killing of Rival at DeliRead the Press Release
WASHINGTON – 17 members and associates of La Mara Salvatrucha, also known as the MS-13, have been charged with racketeering, 12 murders, attempted murders, assaults, obstruction of justice, arson, conspiracy to distribute marijuana, and related firearms and conspiracy charges relating to the gang’s activities on Long Island, New York. The 59-count, third superseding indictment was unsealed on July 13, 2017, in federal court in Central Islip, New York, and includes charges relating to the Apr. 11, 2017, murder of four young men in a Central Islip, New York park.
Attorney General Jeff Sessions; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Bridget M. Rohde for the Eastern District of New York; Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office; and Commissioner Timothy D. Sini of the Suffolk County Police Department made the announcement.
“MS-13 is one of the most vicious criminal gangs in this country today,” said Attorney General Sessions. “As I said when I visited Long Island after these murders took place in April, MS-13’s motto may be ‘kill, rape and control’, but the Department of Justice’s motto is justice for victims and consequences for criminals. We are committed to bringing violent criminals to justice, and this indictment is the next step in our mission of finding, prosecuting and eradicating the MS-13 threat.”
“The senseless murders charged in this superseding indictment further demonstrate MS-13’s compulsion to commit horrific acts of violence in communities in our district,” stated Acting U.S. Attorney Rohde. “This Office and the FBI’s Long Island Gang Task Force will continue to work tirelessly to rid communities, including Central Islip, of MS-13, using every law enforcement resource at our disposal.” Ms. Rohde expressed her grateful appreciation to the members of the FBI’s Long Island Gang Task Force, as well as the United States Attorney’s Offices for the Eastern District of Virginia, the Western District of Virginia, and the Western District of North Carolina for assistance provided during the investigation.
“MS-13 is our number one priority on Long Island because much of what they do and how they behave boils down to violence for violence sake,” stated Assistant Director-in-Charge Sweeney. “The idea that human life means nothing to these gang members should shock the conscience, and we cannot allow this type of thinking to take hold in our youth. We need help in addressing the violence, by the community supporting churches, community programs and activists who can provide a positive alternative to the deadly future MS-13 offers.”
“Today’s announcement is the culmination of excellent police work, and true collaboration between the Suffolk County Police Department and our federal law enforcement partners,” stated Commissioner Sini. “The fact that this case was done in approximately three months is nothing short of outstanding, and I want to thank everyone involved for their critical work. This is another huge blow against MS-13. It shows that we will not tolerate violence in our communities. It shows that we will stop at nothing to achieve justice. And it means that we will prevail.”
Among the counts added in the third superseding indictment are charges against: (1) Alexis Hernandez, 20, of Central Islip, New York; Santos Leonel Ortiz-Flores, 19, of Central Islip, New York; and Omar Antonio Villalta, 22, of Central Islip, New York and Charlottesville, Virginia, in connection with the Apr. 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre and Jefferson Villalobos in Central Islip; (2) Mario Aguilar-Lopez, 18, of Brentwood, New York; Enrique Portillo, 20, of Central Islip, New York; Alexi Saenz, 22, of Brentwood, New York; Jairo Saenz, 20, of Brentwood, New York; and Jose Suarez, 23, of Central Islip, New York, in connection with the Jan. 30, 2017 murder of Esteban Alvarado-Bonilla, a suspected rival gang member, and assault of an innocent bystander at El Campesino Deli in Central Islip; and (3) Jeffrey Amador, 21, of Brentwood, New York; and Ronald Catalan, 26, of Brentwood, New York, in connection with the Oct. 21, 2015 attempted murder of two suspected rival gang members.
As detailed in the third superseding indictment and the government’s detention letter filed on July 13, Hernandez, Ortiz-Flores and Villalta have been charged with the Apr. 11, 2017 murders of Llivicura, Lopez, Tigre and Villalobos. According to the allegations in the government’s detention letter, on the evening of the murders, two female associates of MS-13 lured five young men, including the four victims, to a community park in Central Islip at the direction of MS-13 members who believed the victims to be members of a rival gang. More than a dozen MS-13 members and associates, including Hernandez, Ortiz-Flores and Villalta, met in a heavily wooded area behind the park where they discussed the plan to kill the victims, distributed weapons and waited for word from the females that they had arrived.
According to the allegations in the government’s detention letter, when the female MS-13 associates arrived at the park, they led the victims to a wooded area and notified MS-13 members of their location by text message. Hernandez, Ortiz-Flores, Villalta and the other MS-13 members approached and surrounded the victims, and attacked and killed Llivicura, Lopez, Tigre and Villalobos using machetes, knives and wooden clubs. The fifth victim escaped. According to the allegations in the detention letter, the MS-13 members and associates dragged the victims’ bodies a short distance to a more secluded spot and fled the scene. The victims’ bodies were discovered the following evening, on April 12.
According to the government’s detention letter, Portillo, Alexi Saenz and Jairo Saenz were previously charged with the Sept. 13, 2016, murders of Nisa Mickens and Kyla Cuevas. In the third superseding indictment, they are also charged, along with Aguilar-Lopez and Suarez, in connection with the Jan. 30, 2017, murder of Alvarado-Bonilla, a suspected rival gang member, and the assault of an innocent bystander. The government contends in the detention letter that, on the day of the murder, Portillo, a member of the Sailors Locos Salvatruchas Westside (“Sailors”) clique, saw Alvarado-Bonilla, a suspected rival gang member, inside a deli in Central Islip. Portillo reported this sighting to Alexi Saenz and Jairo Saenz, the leaders of the Sailors clique, who directed Aguilar-Lopez, Suarez and another MS-13 associate to go to the deli and kill Alvarado-Bonilla. The government alleges in the detention letter that, after arriving at the deli, Aguilar-Lopez approached Alvarado-Bonilla from behind and shot him multiple times, killing him, and also striking an employee of the deli.
According to the superseding indictment and the allegations in the detention letter, Amador and Catalan, who was the leader of the Brentwood Locos Salvatruchas (“BLS”) clique of the MS-13, are also charged in connection with the Oct. 21, 2015 attempted murders and assaults of two men that occurred in North Bay Shore, New York. According to the allegations, that evening, MS-13 members had decided to retaliate against suspected members of the rival Latin Kings gang for an assault on an MS-13. Amador, Catalan and other MS-13 members observed a group of people they believed to be Latin Kings, approached the group and fired multiple shots before running back to the car and fleeing the scene. The government contends in the detention letter that two victims were struck but survived their gunshot wounds.
The third superseding indictment also charges members of the Sailors and BLS MS-13 cliques with conspiracy to distribute cocaine and marijuana, the proceeds of which the government contends were used to help finance MS-13’s criminal operations.
This superseding indictment is the latest in a series of federal prosecutions by the U.S. Attorney’s Office for the Eastern District of New York targeting members of MS-13, a violent transnational criminal organization. MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” MS-13 is the most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010 alone, the U.S. Attorney’s Office for the Eastern District of New York has obtained indictments charging MS-13 members with carrying out more than 40 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprised of agents and officers of the FBI, Suffolk County Police Department, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, Rockville Centre Police Department, the New York State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 13, 2017, Aguilar-Lopez, Amador, Catalan, Hernandez and Ortiz-Flores were arraigned before U.S. District Judge Joseph F. Bianco at the federal courthouse in Central Islip. Villalta was arraigned in the Western District of Virginia that same day. The remaining defendants were arraigned before Judge Bianco on July 17, 2017.
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys John J. Durham, Raymond A. Tierney and Paul G. Scotti of the Office’s Long Island Criminal Division, with assistance provided by Deputy Chief Douglas Crow and Trial Attorney Francesca Liquori of the Justice Department’s Criminal Division’s Organized Crime and Gang Section.
The Defendants:
EDWIN AMAYA-SANCHEZ (“Strong”)
Age: 30
Brentwood, New York
WILLIAM CASTELLANOS (“Dizzy” and “Satanico”)
Age: 20
Central Islip, New York
JHONNY CONTRERAS (“Reaper”)
Age: 23
Brentwood, New York
REYNALDO LOPEZ-ALVARADO (“Mente”)
Age: 25
Brentwood, New York
ELMER ALEXANDER LOPEZ (“Smiley,” “Little Smiley” and “Alex”)
Age: 19
Brentwood, New York
SELVIN CHAVEZ (“Flash”)
Age: 20
Brentwood, New York
GERMAN CRUZ (“Bad Boy”)
Age: 19
Brentwood, New York
ENRIQUE PORTILLO (“Oso” and “Turkey”)
Age: 20
Central Islip, New York
ALEXI SAENZ (“Blasty” and “Big Homie”)
Age: 22
Brentwood, New York
JAIRO SAENZ (“Funny”)
Age: 20
Brentwood, New York
MARIO AGUILAR-LOPEZ (“Cuchumbo”)
Age: 18
Brentwood, New York
JEFFREY AMADOR (“Cruel”)
Age: 21
Brentwood, New York
RONALD CATALAN (“Stranger”)
Age: 26
Brentwood, New York
ALEXIS HERNANDEZ
Age: 20
Central Islip, New York
SANTOS LEONEL ORTIZ-FLORES
Age: 19
Central Islip, New York
JOSE SUAREZ (“Chompira”)
Age: 23
Central Islip, New York
OMAR ANTONIO VILLALTA (“Anticristo”)
Age: 22
Central Islip, New York and Charlottesville, Virginia
E.D.N.Y. Docket No. 16-403 (S-3)(JFB)
MEDIA ADVISORY-- Federal Officials to Hold Press Conference to Discuss Investigation into Ayudando Guardians, Inc., and Court Order Authorizing Federal Control of its Business OperationsRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney will hold a press conference at 1:00 P.M., on THURSDAY, JUNE 20, 2017, to discuss the indictment against Ayudando Guardians, Inc., and its principals, and the court order authorizing the U.S. Marshals Service to take control of its business operations. Acting U.S. Attorney Tierney will be joined by Special Agent in Charge Ismael Nevarez Jr. of the Phoenix Field Office of IRS Criminal Investigation, Assistant Special Agent in Charge Derek A. Fuller of the Albuquerque Division of the FBI, Special Agent in Charge Carl D. Scott of the Criminal Investigation Division of the U.S. Department of Veterans Affairs’ Office of Inspector General, and Resident Agent in Charge Ron Trevino of the Dallas Field Division of the U.S. Social Security Administration’s Office of the Inspector General.
WHO:
Acting U.S. Attorney James D. Tierney
Special Agent in Charge Ismael Nevarez Jr., Phoenix Field Office of IRS Criminal Investigation
Assistant Special Agent in Charge Derek A. Fuller, Albuquerque Division of the FBI
Special Agent in Charge Carl D. Scott, Criminal Investigations Division of the U.S. Department of Veterans Affairs’ Office of Inspector General
Resident Agent in Charge Ron Trevino, Dallas Field Division of the U.S. Social Security Administration’s Office of the Inspector General
WHEN:
THURSDAY, JULY 20, 2017
1:00 P.M.
WHERE:
U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media may begin to arrive at 10:45 a.m. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
Longview Man Indicted for Student Financial Aid Fraud Scheme; Sister Pleads GuiltyRead the Press Release
TYLER, Texas – A 30-year-old Longview, Texas man has been indicted for his role in a student financial aid fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Robert Brisco was indicted by a federal grand jury today and charged with conspiracy to commit wire fraud and mail fraud, multiple counts of mail fraud, and multiple counts of student financial aid fraud.
According to the indictment, from June 2013 to September 2015, Brisco and others are alleged to have conspired to use wire communications and the mail to fraudulently obtain student financial aid funds through the Pell Grant Program and William D. Ford Federal Direct Loan Program. If convicted, Brisco faces up to 20 years in federal prison.
An indictment merely establishes probable cause, and the defendant is presumed innocent unless proven guilty.
Brisco's mother, Gracie Brisco, 54, of Longview, was indicted on Mar. 22, 2017, on multiple counts of student financial aid fraud.
Brisco's sister, Shanitra Frost, 34, of Longview, pleaded guilty today before U.S. Magistrate Judge K. Nicole Mitchell to student financial aid fraud. Frost faces up to 5 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the U.S. Department of Education - Office of Inspector General, U.S. Secret Service, U.S. Postal Inspection Service, the Longview Police Department, and the Kilgore College Police Department. Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting this case.
Illinois Department of Corrections Officer Pleads Guilty to Violating Inmate’s Federal Civil RightsRead the Press Release
Dustin A. Fleming, 30, of DuQuoin, Illinois, who is employed as a correctional officer by the Illinois Department of Corrections, pled guilty today in United States District Court in Benton to an information charging him with depriving an inmate of his federal civil rights, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. The felony information to which Fleming pled guilty alleged that on October 15, 2016, Fleming assaulted and caused bodily injury to a handcuffed inmate at the Pinckneyville Correctional Center by choking, punching, kneeing, and kicking the inmate without any legal justification in violation of the United States Constitution.
Sentencing was set for October 18, 2017, at 10:30 a.m., at the United States District Courthouse in Benton. Fleming faces up to 10 years in prison, a $250,000 fine, and 3 years of supervised release to follow any term of incarceration imposed. Fleming was placed on bond pending sentencing.
Fleming has been on administrative leave from the Illinois Department of Corrections since the assault occurred.
The investigation leading to the charges and guilty plea was conducted by the Illinois States Police with the assistance of the Federal Bureau of Investigation and the Illinois Department of Corrections. The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
INTERPOL Washington Hosts Sport Security Senior Management CourseRead the Press Release
National Center for Spectator Sports Safety and Security (NCS4) group at INTERPOL WashingtonThe National Center for Spectator Sports Safety and Security (NCS4) in partnership with INTERPOL, presented the Sport Security Senior Management Course at a Working Group Meeting at INTERPOL Washington on 17 July. This course is a scenario-based practicum of primary areas within the field of sporting event policing and security management. It is intended to prepare senior law enforcement officials involved in the decision-making process for preparation and response to a large-scale incident during major and international sporting events.
The actual 3-day course is scheduled to be presented at the IPSG in Lyon on 12-14 Sept 2017.
Hamden Man Pleads Guilty to Distributing Oxycodone and Marijuana, Money LaunderingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that WAYNE BRADBURY, 32, of Hamden, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to federal oxycodone and marijuana distribution and money laundering offenses. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on January 3, 2016, a 22-year-old male purchased 30 40-milligram oxycodone pills from Tahir Farid in exchange for $900. He then consumed some of those pills, as well as other substances. On January 5, 2016, the 22-year-old male was found unresponsive at a friend’s residence in Weston. He remains unresponsive and, according to medical personnel, is in a “persistent vegetative state.”
The investigation revealed that, prior to the victim’s overdose, BRADBURY supplied oxycodone pills and marijuana to Ryan Looney who, at the time, was 19 years old. Looney then sold oxycodone pills to Farid, who then distributed a portion of them to the victim.
Typically, BRADBURY supplied Looney with drugs on credit and had Looney repay him by depositing cash into BRADBURY’s back account. BRADBURY then withdrew the cash at ATMs to pay his drug supplier.
BRADBURY pleaded guilty to one count of distributing oxycodone and marijuana to an individual under 21 years of age, an offense that carries a minimum term of imprisonment of one year and a maximum term of imprisonment of 40 years. He also pleaded guilty to one count of money laundering, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on October 11, 2017.
BRADBURY is detained pending sentencing.
Farid and Looney, both of Hamden, each previously pleaded guilty to one count of possession with intent to distribute, and distribution of, oxycodone. On November 30, 2016, Farid was sentenced to six months of imprisonment. Looney awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, U.S. Marshals Service, Weston Police Department and Monroe Police Department.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Guardianship Firm and its Principals Charged with Federal Conspiracy, Fraud, Theft and Money Laundering OffensesRead the Press Release
U.S. Marshals Service Assumes Control of Ayudando Guardians, Inc.,
to Ensure Continuity of Services for Special Needs Clients
ALBUQUERQUE – Federal law enforcement officials today announced the filing of conspiracy, fraud, theft and money laundering charges against Ayudando Alpha, Inc., d/b/a “Ayudando Guardians, Inc.” (Ayudando), and its co-founders, Susan Harris, 70, and Sharon Moore, 62, both residents of Albuquerque, N.M. The charges, which are contained in a 28-count indictment, arise out of an alleged decade-long sophisticated scheme to embezzle funds from client trust accounts managed by Ayudando, a non-profit corporation that provides guardianship, conservatorship and financial management services to hundreds of individuals with special needs.
According to the indictment, Ayudando – which means “helping” in Spanish – receives government benefit payments from the U.S. Department of Veterans Affairs (VA) and U.S. Social Security Administration (SSA) on behalf of many of its clients, and acts as a fiduciary or representative payee for these clients by paying their expenses and maintaining the balances for the benefit of the clients. The indictment alleges that Harris and Moore, the primary owners and operators of Ayudando, have embezzled millions of dollars from their special needs clients to support lavish lifestyles for themselves and their families.
The charges against Ayudando, Harris and Moore are the result of an ongoing multi-agency investigation by the FBI, IRS Criminal Investigation, U.S. Marshals Service (USMS), VA Office of Inspector General and SSA Office of Inspector General. This morning federal law enforcement agents arrested Harris and Moore. Harris and Moore made their initial appearances in federal court in Albuquerque this morning. They are scheduled to return to court at 9:30 a.m. tomorrow, July 20, 2017, to be arraigned on the indictment and for detention hearings.
Federal authorities also enforced a federal court order that authorized the USMS’s Complex Assets Unit to assume control of Ayudando’s business operations. The court order appoints the USMS as the Receiver and Monitor of Ayudando, including all its financial accounts. The order authorizes the USMS to operate the business to ensure that its assets are not improperly spent or removed, and that the interests of Ayudando clients are protected as the prosecution of the criminal case goes forward. The USMS’s operation of Ayudando will ensure continuity of services for Ayudando clients.
The charges against Ayudando, Harris and Moore were announced by Acting U.S. Attorney James D. Tierney, U.S. Marshal Conrad E. Candelaria, Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI, Special Agent in Charge Ismael Nevarez Jr., of the Phoenix Field Office of IRS Criminal Investigation, Special Agent in Charge Carl D. Scott of the Criminal Investigations Division of the VA’s Office of Inspector General, and Special Agent in Charge Robert Feldt of the Dallas Field Division of the SSA’s Office of the Inspector General.
In making the announcement, Acting U.S. Attorney James D. Tierney said, “This case is all about the victims. The victims in this case relied upon Ayudando to manage their finances and meet their needs. If the allegations in the indictment are true, the principals of Ayudando cruelly violated the trust of their clients and looted their benefits. Federal law enforcement has now stepped in to ensure that the looting stops. The U.S. Attorney’s Office and its partners will conduct this prosecution in a manner that provides for the continued receipt of benefits by Ayudando’s clients, while holding the principals of the company accountable for their conduct.”
“This morning the U.S. Marshals Service assumed control of Ayudando’s business operations to ensure that the victims of the crimes charged in the indictment, which include our disabled veterans, and other Ayudando clients will continue to receive the services they deserve and are entitled to,” said U.S. Marshal Conrad E. Candelaria. “The U.S. Marshals Service also will continue to assist its law enforcement partners in the continuing investigation.”
“Many of our most vulnerable Americans, such as those with special needs, trust fiduciaries to handle their government benefits for them. Unfortunately, there are plenty of criminals willing to steal what could be a person’s only source of income, using the money to support a lavish lifestyle,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “The FBI, working with our law enforcement and government partners, is committed to bringing to justice those individuals whose greed destroys the lives and dreams of innocent people.”
“The indictment alleges that, instead of helping people with special needs, the defendants were greedy and helped themselves to their clients’ money,” said Special Agent in Charge Ismael Nevarez Jr., of the Phoenix Field Office of IRS Criminal Investigation. “IRS Criminal Investigation will always investigate individuals who misuse non-profit businesses and cause harm to those whose needs are supposed to be served by those businesses.”
“Professional fiduciaries who defraud vulnerable veterans are reprehensible,” said Special Agent in Charge Carl D. Scott of the Criminal Investigations Division of the VA Office of Inspector General. “The VA OIG will continue to work with other law enforcement agencies to expose those who harm veterans or exploit VA benefits systems and bring them to justice.”
“The SSA OIG is committed to investigating cases of suspected representative payee fraud, which can involve the theft of government funds and harm some of our most vulnerable citizens,” said Special Agent in Charge Robert Feldt of the Dallas Field Division of the SSA Office of the Inspector General. “We will continue to work with our law enforcement partners and the U.S. Attorney's Office on this case.”
The 28-count indictment, which was filed under seal on July 11, 2017 and was unsealed and publicly posted earlier today, includes two conspiracy counts, ten counts of mail fraud, nine counts of aggravated identify theft and six counts of money laundering. According to the indictment, from Nov. 2006, when Harris and Moore founded Ayudando, and continuing until July 2017, Ayudando, Harris and Moore embezzled millions of dollars from Ayudando client accounts to cover their personal expenses and support lavish lifestyles for themselves and their families. The indictment alleges that Harris and Moore perpetuated the embezzlement scheme by:
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Establishing Ayudando as a non-profit corporation in Nov. 2006, to position it as a guardian, conservator, fiduciary and representative payee for individuals needing assistance with their financial affairs;
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Setting up client trust and company bank accounts which only they controlled;
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Transferring funds from client accounts to Ayudando company accounts;
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Using client funds to pay off more than $4 million in charges on a company credit card account used by Harris, Moore and their families for personal purposes;
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Writing checks from Ayudando company accounts to themselves, cash and to cover personal expenses;
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Replenishing depleted client accounts with funds taken from other clients;
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Mailing fraudulent statements and certifications to the VA; and
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Forging and submitting forged bank statements to the VA.
The indictment identifies some of the ways in which Harris and Moore used the money they allegedly stole from Ayudando clients. For example, the indictment alleges that between June 2011 and March 2014, Harris wrote 12 checks in the total amount of $457,883 on the Ayudando client reimbursement account for personal purpose, including a $50,950 check made out to Mercedes Benz of Albuquerque and a $26,444 check made out to Myers RV Center. It also alleges that between Jan. 2013 and Feb. 2017, Harris used an Ayudando company credit card to pay $140,790 to cover luxury vacations for herself and others, including cruises in the Caribbean isles and a “Final Four” basketball junket, while knowing that Moore would pay off the charges using client funds.
The mail fraud charges in the indictment describe some of the fraudulent documents allegedly mailed by Ayudando, Harris and Moore to the VA to perpetuate and conceal their embezzlement scheme. For example, between Jan. 2016 and Nov. 2016, Moore allegedly mailed fraudulent documents to the VA that falsely represented the balances in ten client accounts. According to the indictment, the documents falsely claimed that the ten client accounts had an aggregate balance of $1,906,908, when the actual value of the ten accounts was only $72,281. The ten client accounts identified in the indictment are examples of the fraud allegedly perpetrated by the defendants as part of their embezzlement scheme.
According to the indictment, Ayudando, Harris and Moore also engaged in aggravated identify theft by using their clients’ names, dates of birth, Social Security Numbers and VA file numbers to commit mail fraud offenses. Harris and Moore also allegedly committed money-laundering offenses by using $392,623 from the Ayudando client reimbursement account to pay off balances on a company credit card used by the defendants and their families for personal purposes. The indictment includes forfeiture provisions that seek forfeiture to the United States of any proceeds and property involved in, or derived from, the defendants’ unlawful conduct.
If the defendants are convicted on the crimes charged in the indictment, they face the following maximum statutory penalties:
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Count 1, conspiracy – 30 years of imprisonment and a $250,000 fine;
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Counts 2-11, mail fraud – 30 years of imprisonment and a $250,000 fine;
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Counts 12-21, aggravated identity theft – a mandatory two-years of imprisonment that must be served consecutive to any other sentence imposed on other counts and a $250,000 fine;
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Counts 22-27, money laundering – ten years of imprisonment and a $250,000 fine or twice the amount of the property involved in the crime; and
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Count 28, conspiracy to commit money laundering – ten years of imprisonment and a $250,000 fine or twice the amount of the property involved in the crime.
The Albuquerque offices of the FBI and IRS Criminal Investigation conducted the investigation, which resulted in the charges in the indictment, and are leading the continuing investigation. The Complex Assets Unit and the Albuquerque office of the USMS, the Criminal Investigations Division of the VA Office of Inspector General, and the Dallas Field Division of the SSA Office of Inspector General are assisting in the investigation. Assistant U.S. Attorneys Jeremy Peña and Brandon L. Fyffe are prosecuting the case.
Ayudando clients or family members of Ayudando clients who need to speak with someone about their accounts or expenses should call Ayudando, which is now being operated by the U.S. Marshals Service, at 505-332-4357.
Starting tomorrow, information about the federal investigation into Ayudando, including the indictment and the federal court order, will be available at www.justice.gov/usao-nm/ayudando-guardians. Also starting tomorrow, Ayudando clients can direct their comments or concerns to the U.S. Attorney’s Office at [email protected] or 505-346-6902.
Charges in indictment are merely allegations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ayudando Indictment-
Georgia Man Facing Fraud and Identity Theft ChargesRead the Press Release
PITTSBURGH, PA – A Georgia resident has been indicted by a federal grand jury in Pittsburgh on charges of bank fraud, aggravated identity theft, and access device fraud, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on July 18, named Khambrel Coleman, 31, of Johns Creek, Georgia, as the sole defendant.
According to the Indictment, Coleman used and attempted to use counterfeit credit cards in in-person transactions at bank locations to obtain unauthorized cash advances on credit card accounts of other individuals. The Indictment additionally charges that, on or about January 10, 2017, Coleman unlawfully possessed and used the credit card number of another person to obtain an unauthorized cash advance at a Citizens Bank branch in the Shadyside neighborhood of Pittsburgh.
The law provides for a maximum total sentence of not more than 42 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The United States Secret Service 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.
Fraudsters Sentenced for Operating Nationwide Home Mortgage ScamRead the Press Release
ALEXANDRIA, Va. – Three California residents were sentenced today to a combined 39 years in prison for their roles in a nationwide, multi-year “home mortgage modification” fraud that scammed thousands of vulnerable victims out of at least $11 million.
Sammy Araya, 41, of Santa Ana, was sentenced to 20 years, Michael Henderson, 49, of Costa Mesa, was sentenced to 12 years, and Jen Seko, 36, of Anaheim, was sentenced to 7 years in prison, respectively. All three defendants were convicted by a federal jury on April 21, of multiple counts of mail fraud, wire fraud, and conspiracy to commit mail and wire fraud.
According to court documents, from at least March 2011 through September 2014, Araya and his co-conspirators targeted struggling homeowners and made a series of misrepresentations to induce them to make payments of thousands of dollars each in exchange for supposed “mortgage modification” assistance. The conspirators lured vulnerable victims into the scam through targeted mass mailers sent to homeowners facing foreclosure through Seko’s company, Seko Direct Marketing. In the mailers and in subsequent phone calls, the defendants and their co-conspirators falsely held themselves out as a non-profit organization or as affiliated with a real government program, the Home Affordable Modification Program (HAMP), designed to help homeowners at risk of foreclosure. Henderson and other “customer service representatives” in the scam convinced victims to send “reinstatement fees” and “trial mortgage payments” to the conspiracy, based on the false representations that the funds would be used to modify their mortgages. In reality, however, the defendants did nothing to help modify any mortgages. Instead, they used the victims’ payments for their own personal benefit and to further the fraud scheme. Araya, the ringleader of the scam, used the fraud proceeds to purchase expensive vehicles, a racehorse, and a variety of luxury goods, as well as to fund his personal travel and a reality television show he produced called “Make It Rain.TV.”
This scheme had devastating consequences for the victim homeowners, all of whom were already in a precarious financial position. Many victims suffered substantially greater financial hardship after falling victim to this conspiracy than they were already facing when they entered into the bogus agreements with the conspirators. In many cases, the lenders ultimately foreclosed on the victims’ homes, after the victims had been induced to make their “trial mortgage payments” to the members of the conspiracy rather than to their lenders.
Twelve defendants have been convicted in the Eastern District of Virginia in this case and a related case in connection with this same scam. They include the following individuals:
Name, Age
Hometown
Conviction
Sentence
Sammy Araya, 41
Santa Ana, California
Convicted on Counts 1-11 of superseding indictment on April 2
Sentenced to 20 years today
Michael Henderson, 49
Costa Mesa, California
Convicted on Counts 1-6 and 9-11 of superseding indictment on April 21
Sentenced to 12 years today
Jen Seko, 36
Anaheim, California
Convicted on Counts 1-6 and 9-11 of superseding indictment on April 21
Sentenced to 7 years today
Roscoe Umali, 38
Santa Ana, California
Pleaded guilty March 22, 2016
220 months in prison on Aug. 18, 2016
Joshua Sanchez, 37
Las Vegas, Nevada
Pleaded guilty July 8, 2015
151 months in prison on Oct. 29, 2015
Kristen Ayala, 32
Las Vegas, Nevada
Pleaded guilty August 4, 2015
135 months in prison on Oct. 29, 2015
Isaac Perez, 33
Los Angeles
Pleaded guilty March 30, 2016
130 months in prison on Sept. 1, 2016
Joshua Johnson, 36
Huntington Beach, California
Pleaded guilty March 30, 2016
121 months in prison on July 7, 2016
Jefferson Maniscan, 34
Los Angeles
Pleaded guilty March 29, 2016
120 months in prison on Aug. 18, 2016
Nicholas Estilow, 34
Mission Viejo, California
Pleaded guilty January 18
80 months in prison on June 1
Raymund Dacanay, 47
Newport Beach, California
Pleaded guilty March 29, 2016
60 months in prison on July 21, 2016
Sabrina Rafo, 24
Garden Grove, California
Pleaded guilty January 19
60 months in prison on June 1
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); William Hedrick, Acting Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service; Leslie DeMarco, Special Agent in Charge for the Federal Housing Finance Agency (FHFA-OIG); and James Todak, Special Agent in Charge, U.S. Housing and Urban Development, Office of Inspector General, Los Angeles Field Office, made the announcement after sentencing of Araya and his co-defendants by Senior U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Samantha Bateman and Ryan Faulconer are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-301.
Framingham Man Sentenced for Bank RobberiesRead the Press Release
BOSTON – A Framingham man was sentenced yesterday in federal court in Boston for robbing two banks in Framingham.
Jalonni Tucker a/k/a Jalonni Shabazz, 36, was sentenced by U.S. District Court Judge Leo T. Sorokin to 54 months in prison, three years of supervised release, and ordered to pay restitution of $4,253. In March 2017, Tucker pleaded guilty to two counts of unarmed bank robbery.
On June 21, 2016, an individual robbed the TD Bank in Framingham. The bank’s surveillance cameras captured images of the perpetrator; and surveillance cameras on neighboring businesses captured images of the perpetrator driving away in a white/silver Chrysler SUV with distinctive chrome wheels.
On July 13, 2016, an individual committed a similar robbery at a branch of Citizens Bank in Framingham. Again, the bank’s exterior surveillance cameras captured images of the perpetrator driving away in a white/silver Chrysler SUV with distinctive chrome wheels.
Law enforcement determined the Chrysler SUV belonged to a Framingham resident who was married to Tucker, and Tucker’s identity matched that of the perpetrator on both banks’ surveillance cameras. On July 15, 2016, Tucker was arrested at his Framingham home.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Framingham Police Chief Kenneth Ferguson made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Four Individuals Indicted in July 2017 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the July 2017 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
DECKLYN STARR, age 54, of Fort Smith, Arkansas
a/k/a IRA WOFFORD
Stalking (2 counts)
Interstate Communication Of ThreatThe Indictment alleges that from in or about April 2017 and continuing through June 8, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, DECKLYN STARR, a/k/a Ira Wofford, with the intent to kill, injure, harass and intimidate, used an electronic communication service, an electronic communication system of interstate commerce, and any other facility of interstate commerce, to engage in a course of conduct that placed S.E., a person known to the Grand Jury, in reasonable fear of death or serious bodily injury, and caused, and attempted to cause, and would be reasonably expected to cause, substantial emotional distress, in violation of Title 18, United States Code, Sections 2261A(2)(A), 2261A(2)(B) and 2261(b)(5), punishable by no more than 5 years imprisonment, a fine up to $250,000.00 or both for each count.
The Indictment further alleges that on or about June 8, 2017, in the Eastern District of Oklahoma and elsewhere, the defendant, DECKLYN STARR, a/k/a Ira Wofford, knowingly and willfully did transmit in interstate and foreign commerce from the State of New Mexico to the State of Oklahoma a communication via a telecommunications device, to a person known to the Grand Jury, and the communication contained a threat to injure a person known to the Grand Jury, in violation of Title 18, United States Code, Section 875(c), punishable by no more than 5 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Federal Bureau of Investigation.
Assistant United States Attorney Edward Snow.
JAMES MICHAEL WEST, age 64, of Tahlequah, Oklahoma
Concealment Of A Material Fact
False StatementThe Indictment alleges that on or about July 14, 2005, and continuing through December 31, 2016, in the Eastern District of Oklahoma and elsewhere, defendant JAMES MICHAEL WEST, in a matter within the jurisdiction of Social Security Administration, having knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments, concealed and failed to disclose such event with the intent to fraudulently secure payment when no payment was authorized. Specifically, defendant JAMES MICHAEL WEST intentionally concealed that JAMES MICHAEL WEST secured gainful employment in order to receive and continue to receive Disability Income payments made by the Social Security Administration to him.
By such action, defendant JAMES MICHAEL WEST took approximately $266,982.00 in Social Security Disability Income payments to which he was not entitled, in violation of Title 42, United States Code, Section 408(a)(4), punishable by no more than 5 years imprisonment, a fine up to $250,000.00 or both. The Indictment further alleges that on or about May 3, 2016, in the Eastern District of Oklahoma defendant JAMES MICHAEL WEST, did knowingly make or caused to be made any false statement or representation of a material fact to the Social Security Administration in any application for any payment or for a disability determination, in violation of Title 42, United States Code, Section 408(a)(2), punishable by no more than 5 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the United States Social Security Administrations’ Office of Inspector General.
Assistant United States Attorney Rob Wallace.
TYLER WAYNE JONES, age 24, of Vian, Oklahoma
THOMAS CHARLES BARDRICK, age 20, of Fort Smith, Arkansas
Interstate Transportation Of Stolen PropertyThe Indictment alleges that on or about April 15, 2015, in the Eastern District of Oklahoma, the defendants, TYLER WAYNE JONES and THOMAS CHARLES BARDRICK, did unlawfully transport in interstate commerce stolen goods, wares and merchandise, that is, six (6) zero turn mowers, of the value of $5,000.00 or more knowing the same to have been stolen, in violation of Title 18, United States Code, Sections 2314 and 2, punishable by no more than 10 years imprisonment, a fine up to $250,000.00 or both.
The charge arose from an investigation by the Sallisaw Police Department, the Sequoyah County Sherriff’s Office, and the Oklahoma State Bureau of Investigation.
Assistant United States Attorney Dean Burris
Former Worksource DeKalb Supervisor Charged with BriberyRead the Press Release
ATLANTA - Roderick L. Wyatt, 61, of Stone Mountain, Ga., has been charged with accepting bribe payments in exchange for approving the enrollment of almost 20 students to a local college, through a federal workforce program in DeKalb County. The federal indictment alleges that Wyatt agreed to accept payments from the college president for each student sent to the college through Worksource DeKalb, a federally funded program.
“Wyatt allegedly sold his supervisory position with WorkSource DeKalb for cash. In doing so, he allegedly accepted a “bounty” for each student sent to a specific college,” said U. S. Attorney John A. Horn.
“An important mission of the Office of Inspector General is to investigate allegations of fraud relating to Workforce Innovation and Opportunity Act grants issued by the U.S. Department of Labor. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
Public corruption is the FBI’s top criminal investigative priority because it takes a significant toll on the public’s pocketbooks by siphoning off tax dollars,” said FBI Special Agent in Charge David J. LeValley. “This case is another example of our commitment to combat corruption by investigating public officials who choose to abuse federally funded programs.”
According to United States Attorney Horn, the charges, and other information presented in court: the Workforce Innovation and Opportunity Act is a federal public law designed to improve and modernize America’s workforce development system by providing dislocated and low-income individuals with the skills and education needed to obtain employment and by providing employers with trained and qualified workers to fill employment vacancies.
WorkSource DeKalb (formerly DeKalb Workforce Development) was a DeKalb County department funded exclusively by the federal Workforce Innovation and Opportunity Act. WorkSource DeKalb (“WSD”) served the unemployed and underemployed citizens of DeKalb County by providing work readiness programs, services, and activities necessary to obtain sustainable wages. Using federal funds, WSD paid the cost for unemployed and underemployed individuals to attend pre-screened schools or programs where the individuals gained the technical or vocational skills needed to obtain employment in fields such as nursing, truck driving, or welding. After reviewing the unemployed individuals’ career aspirations and educational interests, WSD staff members recommended the individuals to particular pre-screened schools or programs.
From 2013 to April 2017, Wyatt served as a WSD Employment and Training Supervisor. As a supervisor, Wyatt reviewed and approved the school/program recommendations made by WSD staff members.
In 2014, the president and founder of a pre-screened school that offered its students nursing assistant and medical technician certifications approached Wyatt and offered to pay him for each individual that WSD referred to the College. In 2014 and 2015, Wyatt approved the enrollment of approximately 19 students to the College. The College’s president paid Wyatt $100 for each student approved to attend his school. In total, the College received approximately $82,000 in federal funds under the Workforce Innovation and Opportunity Act. The name of the college has not been identified in the Information or any of the court pleadings.
This case is being investigated by the Department of Labor - Office of the Inspector General and Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Tyler Mann prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former South Florida Postal Worker Pleads Guilty to Theft of MailRead the Press Release
A former United States postal worker has pled guilty to theft of mail she obtained from her delivery route in Hillsboro Beach, Florida.
Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Special Agent in Charge Maximo Eamiguel, United States Postal Service Office of Inspector General (USPS-OIG), Southern Area Field Office, made the announcement.
Charlene Joseph, 24, of Miami Gardens, pled guilty to one count of theft of mail by a postal employee. Sentencing is scheduled for September 26, 2017, before United States District Court Judge Beth Bloom. At sentencing, Joseph faces a statutory maximum of five years in prison.
According to court documents, including the agreed upon factual proffer, Joseph delivered and picked up mail on a route in Hillsboro Beach, beginning in 2015. In December 2015, Joseph stole four envelopes that had been placed in the outgoing mail slot of one of the condominium buildings along her route. The four envelopes contained Christmas cards with Walmart gift cards inside. Joseph unlawfully used three of the four Walmart gift cards at a Walmart store in Miramar. In addition, Joseph admitted to stealing approximately five credit cards from her delivery route to give another individual in exchange for payment. She personally used some of the stolen cards.
Mr. Greenberg commended the investigative efforts of the USPS-OIG in this matter. Assistant U.S. Attorney Jared M. Strauss is prosecuting this case.
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.
Former Russell County Teacher, Sentenced to 60 Months in Prison for Sexual Exploitation of ChildrenRead the Press Release
Criminal activity took place during a two-year period
LOUISVILLE, Ky. – A Russell County, Kentucky, resident and former teacher, convicted of a crime involving the sexual exploitation of a minor, was sentenced in United States District Court yesterday, by District Judge Greg N. Stivers, to serve 60 months in prison, followed by a ten year period of supervised release and register as a sex offender in the Commonwealth of Kentucky, announced United States Attorney John E. Kuhn, Jr. There is no parole in the federal prison system.
“This is a horrific crime that can shake an entire community, especially when the perpetrator is a trusted teacher,” stated U.S. Attorney Kuhn. “Safeguarding our most vulnerable citizens is among the most significant priorities of my Office and the Department of Justice.”
According to the factual basis presented in the case, Jeffrey McGaha, 49, of Russell Springs, Kentucky, admitted to attempting to obtain child pornography between September 23, 2012, and September 5, 2014. McGaha used a cellular telephone and various social media applications to attempt to receive pornographic materials from a minor engaging in sexually explicit conduct. McGaha engaged in this conduct while in Russell County, Kentucky and other places.
Assistant United States Jo E. Lawless prosecuted the case. The Russell Springs Police Department conducted the investigation.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab resources."
Former Postal Employee Pleads Guilty to Stealing Mail MatterRead the Press Release
Roanoke, VIRGINIA – A former employee of the United States Postal Service pled guilty yesterday in federal court here to stealing items from the mail, including cash, Acting United States Attorney Rick A. Mountcastle announced.
Michelle Spinner, 56, of Big Island, Virginia, waived her right to be indicted and pled guilty yesterday to a one count Information charging her with theft of mail matter by an officer or employee of the United States Postal Service.
According to evidence presented at yesterday’s hearing by Assistant United States Attorney Charlene R. Day, Spinner worked as a mail-processing clerk at the Roanoke Processing and Distribution Center. She began working for the USPS in 2005.
In January 2015, The United States Postal Service- Office of the Inspector General began an investigation into the handling of mail at the processing and distribution center after receiving complaints from customers about mail being “rifled.”
During the course of the investigation, video cameras captured Spinner working on a flat sorter on several occasions. While working on the flat sorter, Spinner could be seen pausing on certain pieces of mail and spending an extended period with her hands deep in a container. On occasion, video captured Spinner opening mail, removing cash and placing the cash in her pocket.
In all, Spinner stole a total of $2,603 in cash from mail at the processing center.
The investigation of the case was conducted by the United States Postal Service-Office of the Inspector General. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Former Hershey Medical Center Research Technologist Pleads Guilty to Making False Statements About Cancer TestsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Floyd Benko, age 62, of Palmyra, Pennsylvania, pleaded guilty today before United States District Court Judge Yvette Kane to false statement charges in connection with his performance of flawed genetic diagnostic tests for 124 cancer patients.
According to United States Attorney Bruce D. Brandler, Benko, a former Research Technologist at the Hershey Medical Center in Hershey, Pennsylvania, performed gene mutation tests (known as Epidermal Growth Factor Receptor (EGFR), KRAS gene mutation (KRAS), and BRAF gene mutation (BRAF) assays) for 124 advanced stage cancer patients at the Hershey Medical Center in 2013 and 2014. These genetic tests help physicians diagnose a patient’s particular type of cancer so specifically tailored treatments can be administered to the patient.
Benko failed to perform the assays in the manner called for by Hershey’s standard operating procedures. Subsequent retesting of the patients revealed that 60 of the 124 patients had results discordant with results obtained by two outside laboratories.
Benko admitted to making a false statement to administrators at the Hershey Medical Center on April 11, 2014, about the manner by which he performed the genetic assays. Benko admitted he lied and concealed the fact that he did not follow standard Hershey operating procedures by failing to use a device known as a NanoDrop 2000 photo spectrometer in performing the assays and by failing to preserve the patients’ leftover tissue and DNA samples.
The Hershey Medical Center incurred out of pocket expenses totaling $69,906 for outside laboratory re-testing of all of the affected patients. Under the terms of his plea agreement, Benko agreed to make full restitution to the Medical Center in his amount. No date has yet been scheduled for Benko’s sentencing pending preparation of a pre-sentence report.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Kim Douglas Daniel and Joseph J. Terz.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for False Statements in Health Care Matters is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Fort Stockton Teacher Sentenced to Federal Prison for Receipt and Possession of Child PornographyRead the Press Release
In Alpine today, a federal judge sentenced Javier Carlos Arteta Franco, a 59-year-old Venezuelan National and former elementary school teacher in Fort Stockton, to 160 months in federal prison followed by a lifetime of supervised release for receipt and possession of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
On July 28, 2016, Arteta Franco pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. By pleading guilty, Arteta Franco admitted that from December 2014 to August 2015, he used a file-sharing program to download to his personal computer videos and images of minors engaging in sexually explicit conduct.
On August 19, 2015, HSI agents executed a search warrant at the defendant’s residence and seized his laptop computer. A forensics analysis of the computer revealed the presence of child pornography that had been downloaded from the Internet. Arteta Franco has remained in federal custody since his arrest by HSI agents on August 19, 2015.
“HSI and our law enforcement partners continue to police cyber space searching for predators who exploit the most vulnerable segment of our society — our children,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “This case is especially disturbing because of the perpetrator’s position of public trust and access to children.”
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Alpine with assistance from the Fort Stockton Police Department and the Texas Department of Public Safety Criminal Investigations Division. Assistant U.S. Attorney Sandy Stewart prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
Former El Paso-Based Production Company Employee Sentenced to Federal Prison for Computer IntrusionRead the Press Release
In El Paso today, a federal judge sentenced 42-year-old Joe Vito Venzor to 18 months in federal prison for illegally accessing his former employer’s computer system and shutting it down announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
In addition to the prison term, Senior United States District Judge David Briones ordered that Venzor pay $57,397.76 restitution and be placed on supervised release for a period of three years after completing his prison term.
On March 30, 2017, Venzor pleaded guilty to one count of transmission of a program to cause damage to a computer. By pleading guilty, Venzor admitted that on September 1, 2016, after termination from his position at the company’s help desk, he logged onto the company’s network through an administrator account and shut down the company’s email server and application server while deleting systems files essential to restoring computer operations.
Because of the intrusion, 300 employees in the production and shipping factory were unable to work for nearly three hours before the decision was made to send them home for the rest of the shift. The distribution center was not able to ship any of their products and customers could not place orders online. The IT Managing Director also had to hire a third party IT staff to assist with setting up a new application server for the company. The company continued to suffer direct and indirect losses because of the intrusion into its computer server in the ensuing days and weeks, as they had to reconstruct files, and fulfill production and customer services issues.
“The FBI El Paso Division stands ready to work closely with our public and private sector partners to identify, pursue, and prosecute those who gain unauthorized access to proprietary data and threaten our cyber security,” stated FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
Assistant United States Attorneys Greg McDonald and Rifian Newaz prosecuted this case on behalf of the Government.
Former Credit Suisse Banker Pleads Guilty to Conspiring with U.S. Taxpayers and Other Swiss Bankers to Defraud the United StatesRead the Press Release
A citizen and resident of Switzerland pleaded guilty today to conspiring to defraud the United States in connection with her work as the head of a team of bankers for Credit Suisse AG, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia.
According to the statement of facts and the plea agreement, Susanne D. Rüegg Meier, admitted that from 2002 through 2011, while working as the team head of the Zurich Team of Credit Suisse’s North American desk in Switzerland, she participated in a wide-ranging conspiracy to aid and assist U.S. taxpayers in evading their income taxes by concealing assets and income in secret Swiss bank accounts. Rüegg Meier was responsible for supervising the servicing of accounts involving over 1,000 to 1,500 client relationships. She was also personally responsible for handling the accounts of approximately 140 to 150 clients, about 95 percent of whom were U.S. persons residing primarily in New York, Chicago and Florida, which held assets under management totaling approximately $400 million. Rüegg Meier admitted that the tax loss associated with her criminal conduct was between $3.5 and $9.5 million.
Rüegg Meier assisted many U.S. clients in utilizing their Credit Suisse accounts to evade their U.S. income taxes and to facilitate concealment of their undeclared financial accounts from the U.S. Department of the Treasury and the Internal Revenue Service (IRS). She took the following steps to assist clients in hiding their Swiss accounts: retaining in Switzerland all mail related to the account; structuring withdrawals in the forms of multiple checks each payable in amounts less than $10,000 that were sent by courier to clients in the United States and arranging for U.S. customers to withdraw cash from their Credit Suisse accounts at Credit Suisse locations outside Switzerland, such as the Bahamas. Moreover, Rüegg Meier admitted that approximately 20 to 30 of her U.S. clients concealed their ownership and control of foreign financial accounts by holding those accounts in the names of nominee tax haven entities or other structures that were frequently created in the form of foreign partnerships, trusts, corporations or foundations.
Between 2002 and 2008, Rüegg Meier traveled approximately twice per year to the United States to meet with clients. Among other places, Rüegg Meier met clients in the Credit Suisse New York representative office. To prepare for the trips, Rüegg Meier would obtain “travel” account statements that contained no Credit Suisse logos or customer information, as well as business cards that bore no Credit Suisse logos and had an alternative street address for her office, in order to assist her in concealing the nature and purpose of her business.
After Credit Suisse began closing U.S. customers’ accounts in 2008, Rüegg Meier assisted the clients in keeping their assets concealed. For example, when one U.S. customer was informed that the bank planned to close his account, Rüegg Meier assisted the customer in closing the account by withdrawing approximately $1 million in cash. Rüegg Meier advised the client to find another bank simply by walking along the street in Zurich and locating a bank that would be willing to open an account for the client. The customer placed the cash into a paper bag and exited the bank. Rüegg Meier also recommended that a few U.S. clients open new accounts at other specific banks, such as Bank Frey and Wegelin & Co., and transfer their assets from their Credit Suisse accounts to the new accounts.
Credit Suisse pleaded guilty in May 2014 for conspiring to aid and assist taxpayers in filing false returns, and was sentenced in November 2014 to pay more than $2 billion in fines and restitution.
Sentencing is scheduled for Sept. 8. Rüegg Meier faces a statutory maximum sentence of five years in prison. She also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Boente commended special agents of IRS Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Mark F. Daly and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Mark Lytle of the Eastern District of Virginia, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Corporate General Counsel Sentenced to A Year in Prison for Conspiring to Obstruct Justice in Federal Criminal TrialRead the Press Release
CAMDEN, N.J. – The former general counsel of VO Financial Corp. was sentenced today to 12 months in prison for conspiring to obstruct justice in a federal criminal case tried in 2013, Acting U.S. Attorney William E. Fitzpatrick announced.
Joshua L. Gayl, 37, of Lafayette Hill, Pennsylvania, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of conspiracy to obstruct justice. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this and other cases and statements made in court:
Adam and Ashley Lacerda, Ian Resnick, and several others were charged in April 2012 with conspiracy to commit mail and wire fraud based on their actions at the Vacation Ownership Group, which offered phony consulting services to owners of timeshares. After they were charged, the VO Group became VO Financial, and Gayl was hired as general counsel. The Lacerdas continued to run VO Financial through their July 2013 criminal trial.
Gayl admitted misleading a witness, identified as “Victim 1,” after he learned that Victim 1 had told the FBI about being defrauded by the VO Group.
Gayl contacted Victim 1 intending to obtain statements favoring the defense in the criminal case, but he concealed his true intentions from Victim 1. Instead, he wrote Victim 1 offering assistance if Victim 1 would tell him what Victim 1 told the FBI. Gayl and an accomplice then called Victim 1 and misleadingly said that they were recording the call for quality assurance and training purposes, when in fact they were trying to get Victim 1 on tape making statements favorable to the defense. Victim 1 told Gayl that the VO Group had promised to sell Victim 1’s timeshare, a VO Group misrepresentation alleged in the indictment. Gayl omitted this allegation when he told Victim 1 what was alleged in the criminal case. Although he did not know what the VO Group representative actually told Victim 1, Gayl told Victim 1 that “we do not sell timeshares” and that Victim 1 had some “confusion” in recalling a promise to sell Victim 1’s timeshare.
Gayl ended the call and consulted with Adam Lacerda. Gayl then called Victim 1 back at Lacerda’s request to persuade Victim 1 that Victim 1’s recollection was mistaken – but Gayl did not tell Victim 1 that his purpose was to get recorded statements to help the criminal defense. Gayl told Victim 1 in the second call that it was “likely” and “logical” that Victim 1 had misunderstood that the VO Group sold timeshares.
Gayl also helped the defendants send potential trial witnesses payments intended to influence their testimony. Adam and Ashley Lacerda wanted these refunds paid to help the defense case at trial and make the recipients testify more favorably to the defense, but Gayl did not tell the potential witnesses that these were the purposes of the payments. Gayl wrote a letter urging “Victim 2” to take a refund, knowing that Resnick wanted Victim 2 to take the refund because Victim 2 was a potential trial witness against Resnick. A month before trial, Gayl wrote letters offering refunds to “Victim 3” and “Victim 4,” but failed to tell them that they were being offered refunds because they were potential trial witnesses.
Gayl also lied in responding to a trial subpoena asking VO Financial to produce records. After Adam Lacerda’s criminal lawyer told the U.S. Attorney’s Office and Gayl that he had advised Lacerda not to be involved in the subpoena response, Gayl told Adam Lacerda about one subpoenaed recording harmful to the defense and saw Lacerda access the recording. Lacerda deleted the damaging portion of the recording. When Gayl gave the U.S. Attorney VO Financial’s response to the subpoena, he included the altered recording and a false certification that he did not consult with Lacerda about the subpoena response. Gayl subsequently listened to the recording and realized that Lacerda had altered it.
In addition to the prison sentence, Judge Hillman sentenced Gayl to three years of supervised release and ordered him to pay a $5,000 fine.
Adam Lacerda, Ashley Lacerda, and Ian Resnick were convicted of conspiracy to commit mail and wire fraud and other offenses. Adam Lacerda was sentenced in June 2015 to 27 years in prison. Ian Resnick was sentenced to 18 years in prison in April 2016. Ashley Lacerda was sentenced to six years in prison in June 2016.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
Defense counsel: Ellen C. Brotman, Esq., Philadelphia
Firearms Exporter and Straw Purchasers Head to PrisonRead the Press Release
McALLEN, Texas – A total of six local individuals have been ordered to federal prison for straw purchasing firearms, announced Acting U.S. Attorney Abe Martinez.
Jesus Alberto Murillo, 24, Rene Hernandez, 22, Miguel Cervantes, 22, Mariano Eberth Garcia, 22, and Felix Hernandez, 26, all of McAllen, and Marella Sandoval, 31, of Penitas, all previously pleaded guilty.
Today, U.S. District Judge Micaela Alvarez heard testimony from a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) special agent regarding the roles of the defendants in straw purchasing firearms that were unlawfully exported to Mexico for use by Cartel members. Judge Alvarez sentenced Murillo and Rene Hernandez to 115 months and 72 months in federal custody, respectively. The sentences were enhanced as the court found they were both a leader or supervisor in the offense. Felix Hernandez and Cervantes were sentenced to 60 and 24 months in federal custody, respectively.
At a hearing yesterday, Judge Alvarez sentenced Garcia to 50 months imprisonment.
U.S. District Judge Ricardo Hinojosa sentenced another individual involved in the offense, Carlos Alberto Zamudio, 34, McAllen, to a term of 48 months on April 24, 2017. Sandoval will be sentenced by Judge Alvarez on July 27, 2017.
The defendants sentenced today conducted or recruited others to conduct the straw purchase of firearms from various federal firearms licensees between September and October 2015. The investigation revealed that the defendants combined to purchase more than 100 firearms throughout the Rio Grande Valley. To date, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has learned that at least 14 of the purchased firearms were recovered in Mexico.
Murillo, Sandoval, Garcia, Felix and Rene Hernandez have been and will remain in federal custody. Cervantes was permitted to remain on bond and surrender to authorities at a later date.
The ATF conducted the investigation with the assistance of police departments in McAllen and Corpus Christi. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Financial Secretary Charged with Embezzlement and Theft of Labor Union AssetsRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of embezzlement and theft of labor union assets, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on July 18, named Charles Hill, 51, of Avonmore, Pa., as the sole defendant.
According to the indictment, Charles Hill was the Financial Secretary of Glass Molders, Pottery, Plastics, and Allied Workers (GMP), AFL-CIO Local Union 46. The indictment alleges that from November 3, 2014, to May 10, 2016, Hill embezzled approximately $7,000.00 of union funds for his own use.
The law provides for a maximum total sentence of not more than five years in prison, a fine of not more than $10,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The U.S. Department of Labor, Office of Labor-Management Standards, conducted the investigation leading to the prosecution of Charles Hill.
Fifty-Two and Forty-Seven Year Prison Terms for Hialeah Residents Who Robbed Two Hialeah Jewelry Stores and Attempted to Rob a Third StoreRead the Press Release
A third defendant was sentenced to 4 years in prison
Three Hialeah residents were sentenced to prison terms after having been convicted by a federal jury of robbing two Hialeah jewelry stores and attempting to rob a third store.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Sergio Velasquez, Chief, Hialeah Police Department (HPD), made the announcement.
Anibal Mustelier, 67, Jose Pineda Castro, 28, and Yamile Diaz Bernal, 29, all of Hialeah, were convicted of conspiracy to commit Hobbs Act Robberies. Mustelier and Pineda Castro were also convicted of two counts of Hobbs Act Robbery, one count of attempted Hobbs Act Robbery, and two counts of brandishing a firearm in furtherance of a violent crime. Mustelier, a convicted felon and formerly one of FBI’s most wanted individuals, with prior pending federal indictments from 1996, was also convicted of felon in possession of a firearm and ammunition.
U.S. District Judge Frederico A. Moreno sentenced Mustelier to a total of 624 months’ imprisonment; Castro to a total of 572 month’s imprisonment; and Bernal to a total of 51 months’ imprisonment.
According to the court record, including evidence presented at trial, between May 30, 2015 and August 8, 2016, Mustelier, Pineda Castro and his wife Diaz Bernal conspired to and robbed two jewelry stores in Hialeah, Florida. A third robbery attempt failed when Pineda Castro accidently cut the electricity to the shopping center.
The defendants would monitor the jewelry stores for months, including surveilling the store security features, in order to plan the robberies. Once they were ready to carry out the robbery, they would break into the adjacent business the night before the planned robbery. They would then carve out a hole from the adjacent business wall and prepare to enter the jewelry store once the employees arrived the following morning. At that time, they would bust through the drywall wearing ski masks and wielding guns. They would handcuff the employees and place all of the jewelry in large duffle bags. Just before they left the store with the jewelry, they would take the video recordings and exit through the same adjacent business wall. A confidential informant broke the case by recording Pineda Castro and Diaz Bernal discussing their participation in the prior jewelry store robberies. In these conversations, they implicated Mustelier as Pineda Castro’s mentor in committing robberies.
Law enforcement was able to independently corroborate Pineda Castro and Diaz Bernal’s admissions. In addition, unbeknownst to Pineda Castro, he also led law enforcement to the doorsteps of his mentor, Mustelier. There, law enforcement found, among other things, ski masks, guns, handcuffs and the jewelry belonging to two jewelry stores that had been robbed as part of this ongoing conspiracy.
Mr. Greenberg commended the investigative efforts of ATF and HPD. This case was prosecuted by Assistant U.S. Attorneys Rilwan Adeduntan and Miesha Shonta Darrough.
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 Search Warrants ExecutedRead the Press Release
On Wednesday, July 19, 2017, federal search warrants were executed at the following locations in Iowa, Colorado, Oregon, and Nevada:
• 2 locations on the 600 block of 15th Street, Davenport, Iowa
• 4800 block of West Locust Street, Davenport, Iowa
• 5300 block of Park Place, Asbury, Iowa
• 6500 block of Silverwind Circle, Colorado Springs, Colorado
• 7700 block of Barraport Drive, Colorado Springs, Colorado
• 5200 block of Tomah Drive, Colorado Springs, Colorado
• 400 block of Draper Valley Road, Selma, Oregon
• 12000 block of Southeast Market Street, Portland, Oregon
• 200 block of Union Avenue, Grants Pass, Oregon
• 2 locations on the 1700 block of Clear River Falls, Nevada
The searches at these locations were official law enforcement actions involving officers, agents, and investigators from the Drug Enforcement Administration (DEA); Quad City Metropolitan Enforcement Group (QCMEG); Davenport Police Department (DPD); Dubuque Drug Task Force (DDTF); Division of Narcotics Enforcement (DNE); Scott County Sheriff’s Department (SCSD); Asbury (Iowa) Police Department (APD); Iowa Division of Intelligence (DOI); El Paso County (Colorado) Sheriff’s Office (EPCSHO); Oregon State Patrol (OSP); Las Vegas Metropolitan Police Department (LVMPD); Henderson (Nevada) Police Department (HPD); and the Little Rock (Arkansas) Drug Task Force.
Presently, the following individuals have been charged with conspiracy to manufacture and distribute marijuana and money laundering:
• Jennifer Hoang, 25, of Davenport, Iowa
• Douglas Tran, 57, of Henderson, Nevada
• Randy Wardrip, 23, of Davenport, Iowa
No other information or comments will be released until documents have been filed with the court as part of the public record. The public is reminded that a charge is merely an accusation and individuals are presumed innocent unless and until proven guilty. The United States Attorney’s Office for the Southern District of Iowa is prosecuting this case.
Federal Grand Jury Indicts Dallas Attorney and His Assistant for Running Marriage Fraud SchemeRead the Press Release
DALLAS — A federal grand jury in Dallas returned a one-count indictment last week charging Bilal Ahmed Khaleeq, a Dallas attorney and his assistant, Amna Cheema with conspiracy to commit marriage fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the indictment charges Khaleeq, 47, and Cheema, 37, with one count each of conspiracy to commit marriage fraud. If convicted, the count charged in the indictment carries a maximum statutory penalty of five years in federal prison and a $250,000 fine.
Khaleeq made his initial appearance in federal court yesterday afternoon, before U.S. Magistrate Judge Horan and was released on supervised release. Cheema is scheduled to appear today before U.S. District Judge Godbey for a detention hearing.
“Immigration attorneys risk severe consequences when they choose to illegally profit by breaking U.S. immigration laws rather than building a profession on following those laws,” said Katrina W. Berger, special agent in charge of HSI Dallas. “HSI leads a Dallas-area Document and Benefit Fraud Task Force, and partners daily with many local law enforcement agencies to enforce immigration laws. HSI and our law enforcement partners will not tolerate immigration fraud — especially by immigration attorneys.”
According to the indictment, in May 2015, Khaleeq intentionally solicited Person A, a naturalized U.S. citizen originally from India, to marry Cheema, a Pakistani national, for the purpose of obtaining lawful permanent residence for Cheema. In exchange for entering into a fraudulent marriage and proceeding through the permanent residence process, Person A received a payment of $745.00 with promises of additional monies upon approval of the Application to Register Permanent Residence or Adjust Status application (Form I-485). Cheema and Person A were married in Dallas County on June 15, 2015. Khaleeq arranged the marriage, advised Cheema regarding the filing of the Petition for Alien Relative (Form I-130) and represented the parties at the interview with the United States Citizenship and Immigration Services (USCIS).
After Cheema and Person A had been married, Khaleeq advised the parties on the preparation of the I-130 petition and supporting documents needed to make the marriage appear legitimate, including but not limited to, joint bank accounts, tax returns, bills concerning their joint residence and other fraudulent evidence including photos. On July 10, 2015, the parties filed Forms I-130 and I-485 with USCIS.
The indictment further alleges, from January 26, 2016, through March 7, 2017, Khaleeq, Cheema and Person A had several discussions regarding the immigration process and the documentary evidence needed to represent Cheema and Person A as a bona fide married couple for the purposes of the immigration benefit. In addition, Khaleeq coached Person A how to address the questions that would be posed during the USCIS interview process. Among other advisals, Khaleeq specifically instructed Person A to tell the USCIS Adjudications Officer that he cohabitated with Cheema even though that was a false statement. Khaleeq also advised Person A to leave some articles of clothing in Cheema’s residence to make it appear that he was residing there. Additionally, the parties discussed filing joint tax returns to provide additional evidence and discussed how long Person A and Cheema should remain married in order for her to obtain her lawful permanent residence.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is investigating the case. Special Assistant U.S. Attorney Lynn Javier is in charge of the prosecution.
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East Bay Real Estate Agent Pleads Guilty to Wire Fraud and Money Laundering in Connection with Scheme to Defraud Homeowners and Mortgage HoldersRead the Press Release
SAN FRANCISCO – Robert Jacobsen pleaded guilty today to wire fraud and money laundering charges in connection with a scheme to use sham companies and collusive lawsuits to create the appearance that mortgage liens had been invalidated, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The plea was accepted by the Honorable Maxine M. Chesney, U.S. District Judge.
According to the plea agreement, Jacobsen, 69, formerly of Lafayette, Calif., admitted that from October 2012 through October 2013, he executed a scheme to sell homes to buyers who were duped into believing that the homes had clear title. Jacobsen admitted that he identified homes with mortgage deeds of trust that were recorded for the benefit of an entity called “American Brokers Conduit” (ABC). Jacobsen also admitted that he registered a separate entity in New York called “American Brokers Conduit Corporation” (ABC Corp.). Jacobsen then hired an attorney to file lawsuits against his phony ABC Corp., claiming that mortgages that had been originated by the real ABC were invalid. Controlling both sides of the lawsuits, Jacobsen caused the attorneys to enter into stipulated judgments, agreeing that the mortgage deeds of trust were invalid. The courts then entered judgment based on these fraudulent agreements, which Jacobsen recorded with county recorder’s offices. The result created the impression that the deeds of trust had been legitimately invalidated by federal or state courts.
Jacobsen admitted that two homes that were the subjects of such lawsuits were in Danville, Calif., and San Francisco, Calif. Jacobsen admitted that, after obtaining fraudulent judgments, he sold the Danville home for $540,000 and the San Francisco home for $1.2 million. Jacobsen admitted that in both cases, his representations regarding the fraudulent court judgments had a natural tendency to influence the buyers to purchase the homes.
As part of his plea agreement, Jacobsen further admitted that proceeds from the sale of the Danville and San Francisco homes were used to pay for a 54’ Hylas sailboat that the government seized at a marina in Beaufort, North Carolina on November 18, 2015. Jacobsen agreed that his interest in this sailboat was subject to forfeiture.
On December 5, 2015, a federal grand jury indicted Jacobsen charging him with 13 counts of wire fraud, in violation of 18 U.S.C. § 1343 and 9 counts of engaging in monetary transactions in property derived from specified unlawful activity (money laundering), in violation of 18 U.S.C. § 1957. Pursuant to today’s plea agreement, Jacobsen pleaded guilty to one count of each crime.
Jacobsen’s sentencing is scheduled for November 15, 2017. Jacobsen faces a maximum sentence of 20 years of imprisonment, and a fine of $250,000, plus restitution, for the wire fraud count and a maximum sentence of 10 years of imprisonment, and a fine of $250,000, for the money laundering count. However, any sentence following conviction will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Benjamin Kingsley, Meredith Osborn, and Gregg Lowder are prosecuting the case with the assistance of Beth Margen and Bridget Kilkenny. The prosecution is the result of an investigation by the FBI and IRS-CI.
Elkins Man Sentenced to 56 Months in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that George Hagadone, age 52, of Elkins, was sentenced yesterday to 56 months in federal prison followed by a 10 years of supervised release on one count of Receipt of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, beginning in June 2016, Homeland Security Investigations (H.S.I.) identified a computer uploading videos depicting child pornography. During the course of the investigation the LP address associated with that computer came back to the residence of George Hagadone, located in Elkins, which is located in the Fayetteville Division, Western District of Arkansas.
On January 12, 2017, H.S.I. executed a search warrant of Hagadone's residence where a computer containing child pornography was seized. Special Agents with H.S.I. interviewed Hagadone who admitted to downloading and possessing child pornography.
Hagadone was pled guilty to a one-count Information on March 31, 2017.
This case was investigated by the Department of Homeland Security Investigations. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Drug Traffickers Sentenced to 12 YearsRead the Press Release
RALEIGH - The United States Attorney for the Eastern District of North Carolina John Stuart Bruce announced that in federal court on July 18, 2017, United States District Judge Terrence W. Boyle sentenced ALBERT ABDALLA, 45 years of age from Durham, N.C., and BRIAN KEITH GONZALES, 38 years of age from San Antonio, TX, to 144 months in prison for conspiracy to distribute 5 kilograms or more of cocaine ABDALLA and GONZALES pled guilty to this charge on December 30, 2016, and January 4, 2017, respectively.
An investigation by agents of DEA-Raleigh and DEA-San Antonio identified GONZALES as a Texas-based cocaine source of supply for ABADALLA, a drug trafficker in the Raleigh/Durham area. On September 14, 2016, GONZALES traveled to Raleigh, NC, in order to facilitate a 30-kilogram cocaine delivery to ABDALLA. On September 15, 2016, agents arrested GONZALES when he met with an undercover agent posing as a courier for a cocaine source of supply. Agents seized $210,030 from GONZALES he had received from ABDALLA to use as a down payment for the 30 kilograms of cocaine. Agents arrested ABDALLA shortly thereafter with $4,000. Agents searched ABDALLA’S apartments in Raleigh and Durham, and seized 1 kilogram of cocaine, 500 grams of heroin and $37,472. Further investigation led to the seizures of 8 kilograms of cocaine in Wake County and 1 kilogram of cocaine in Mecklenburg County.
The case was investigated by the Drug Enforcement Administration in Raleigh and San Antonio, TX, the North Carolina State Bureau of Investigation, North Carolina Alcohol Law Enforcement, the Lenoir County Sheriff’s Office, the Greenville Police Department, the Wayne County Sheriff’s Office, the Wilson Police Department, the Rocky Mount Police Department, the Nash County Sheriff’s Office, the Goldsboro Police Department, the Raleigh Police Department, and the Person County Sheriff’s Office. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Document Thief Pleads Guilty to Mail FraudRead 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 Witek, 54, of Buffalo NY, pleaded guilty to mail fraud before U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Michael DiGiacomo and Jonathan P. Cantil, who are handling the case, stated that in the spring of 2013, the defendant was a volunteer at the Buffalo History Museum. While volunteering at the museum, Witek devised a scheme to access and steal certain historical writings addressed to Anson Conger Goodyear that belonged to the museum. The defendant then offered to sell the stolen documents to one autograph dealer in New York City and one in New Jersey.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for November 8, 2017, at 11:00 a.m. before Judge Skretny.
District of Columbia National Guard Head Visits INTERPOL WashingtonRead the Press Release
On July 18, 2017, the Acting Commanding General of the District of Columbia (D.C.) National, Guard Brig. Gen. William J. Walker, visited INTERPOL Washington. General Walker assumed his current duties on January 20, 2017, and is responsible for operational readiness and command and control of the D.C. Army and Air National Guard units with an authorized end strength of 2,700 soldiers and airmen. He previously served as the Commander, Land Component Command, of the D.C. National Guard. In 2014, General Walker retired from civilian federal service as a career special agent of the U.S. Drug Enforcement Administration where he was a member of the Senior Executive Service.
The D.C. National Guard’s mission bridges the gap between Department of Defense and non-Defense institutions in the fight against illicit drugs and transnational threats to the Homeland. The program assists community-based groups to educate their communities; to assist in criminal intelligence gathering and information sharing; and to disrupt the drug market by supporting arrest operations. The counter-drug program conducts aerial reconnaissance, providing support to various District and federal law enforcement agencies and criminal analyst and linguist support to law enforcement agencies. In support of this mission area, in 2013 the D.C. National Guard assigned one detailee, and recently added a second, to INTERPOL Washington’s Drug Division to support criminal analysis and information-sharing activities.
Acting Director of INTERPOL Washington Wayne Salzgaber welcomed the General and his staff members to the agency before turning the session over to a senior advisor to present the orientation briefing. The briefing covered the critical roles of INTERPOL and INTERPOL Washington tools and services in the fight against transnational crime. The briefing placed a special emphasis on the expansion of collaborative efforts between INTERPOL Washington and the Department of Defense in the sharing of biometric and other law enforcement data. Acting Director Salzgaber thanked General Walker for his continued support to the INTERPOL mission. This is particularly significant as the D.C. National Guard is the first and only National Guard unit represented at INTERPOL Washington.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
INTERPOL Washington Acting Director H. Wayne Salzgaber and Acting Commanding General of the D.C. National Guard William J. Walker.Disbarred Attorney William O’Brien Imprisoned for Misusing Client FundsRead the Press Release
The United States Attorney for the District of Vermont announced that William O’Brien, 60, a former attorney who lives in Winooski, was sentenced today in United States District Court in Brattleboro to 14 months of imprisonment following his guilty plea to a charge of mail fraud. U.S. District Judge J. Garvan Murtha also ordered that O’Brien serve a one-year term of supervised release following completion of his prison term and pay restitution totaling $19,699. The court ordered that O’Brien surrender to the Bureau of Prisons on September 5 to begin serving his sentence.
On October 13, 2016, the United States filed a criminal information charging O’Brien with one count of mail fraud, the charge to which O’Brien pled guilty. The information charged O’Brien with defrauding two former law clients. In one case, O’Brien became the trustee of a trust established by the clients. As trustee, O’Brien was to use trust funds to make charitable contributions in the memory of the clients. Between 2008 and 2013, O’Brien did make a number of contributions of trust funds in the total amount of $97,500, but also improperly diverted about $139,000 in trust funds to his law firm account. In another case, O’Brien received in his capacity as attorney more than $247,000 in client funds, which were also meant to be used for charitable purposes. Although O’Brien did make one contribution of $15,000, he again used the remaining funds for his own benefit.
In early 2016, O’Brien did repay about $472,000 to these two clients, but those payments were made only after O’Brien became aware he was under investigation by counsel for the Vermont bar. The Vermont Supreme Court suspended O’Brien’s law license in January 2016 and disbarred him last December.
In addition to defrauding the two clients referred to in the charging information, O’Brien also misappropriated smaller amounts of money from five other clients. The court’s restitution order requires O’Brien to repay those clients in full.
This case was investigated by the Burlington Police Department, the U.S. Postal Inspection Service and the Vermont Judiciary’s Office of Disciplinary Counsel.
O’Brien is represented by Scott McGee of Norwich. The prosecutor is Assistant U.S. Attorney Gregory Waples.
DeRuyter Man Sentenced for Attempting to Entice a 12 year old Girl for SexRead the Press Release
SYRACUSE, NEW YORK – Floyd Wood, 49, of DeRuyter, New York, was sentenced in federal court today following his earlier plea of guilty to Attempted Coercion and Enticement, announced Acting United States Attorney Grant C. Jaquith.
United States District Judge David N. Hurd sentenced Wood to a term of 120 months in federal prison, to be followed by 15 years of supervised release. In addition, Wood will be required to register as a sex offender.
As part of his guilty plea, Wood admitted that in April, 2016 through text messaging with someone he believed was a female acquaintance, he arranged to meet with the acquaintance and her 12 year old daughter at a Syracuse hotel to engage in a sexual encounter with both the mother and child. Instead, Wood was corresponding with law enforcement officers, and was arrested at the Syracuse hotel where he was to meet the child and her mother. Prior to his arrival at this location, Wood was surveilled by law enforcement officers at an adult products store where he purchased items he intended to use in the encounter.
This case was investigated by the Mid-state Child Exploitation Task Force, which includes the Federal Bureau of Investigation (FBI), Syracuse Resident Agency, together with the New York State Police, and was prosecuted by Assistant United States Attorney Lisa Fletcher as a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, and led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Clinton Man Sentenced to 30 Months in Federal Court for Wire FraudRead the Press Release
July 19, 2017
FOR IMMEDIATE RELEASE Contact BAILEY DRUMM
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – John Calvin Baltimore, age 37, of Clinton, Maryland was sentenced to 30 months in prison followed by 3 years of supervised release and restitution of $239,609 by U.S. District Judge Marvin J. Garbis. Baltimore pleaded guilty to wire fraud in a scheme where he defrauded his employer by stealing cash from a large safe under his control.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Christopher Caruso of the United States Secret Service, Baltimore Field Office.
According to court documents, Baltimore was employed as the Controller for Delaware North Companies (DNC), who provide food, beverage and retail services at Oriole Park at Camden Yards. Baltimore was responsible for overseeing financial transactions in the accounting office, which included managing a large cash safe. Baltimore’s thefts were discovered in September 2014, after a DNC employee filed an internal complaint against Baltimore that led to Baltimore’s suspension. As part of DNC’s standard procedures, an audit was conducted of the cash safe, revealing approximately $14,700 in missing cash.
Further investigation revealed that during the three years that Baltimore was the Controller, Baltimore stole over $230,000 in cash from the safe. The thefts initially went undiscovered because Baltimore deposited checks intended for other accounts – such as accounts receivable –into the account that funded the cash safe. The mis-deposited checks were then covered up by improper journal entries that “wrote off” the receivables, all approved by Baltimore. During the course of the scheme, Baltimore mis-deposited 28 checks through 16 separate deposits. The 28 checks totaled $239,609.56 and Baltimore stole the same amount from cash safe.
Acting United States Attorney Stephen M. Schenning commended the United States Secret Service for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul Budlow, who prosecuted the case.